Boones And Klausens

AI-36904© 2012 American Funds Distributors, Inc.

Figures are past results and are not predictive of results in future periods.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

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AI-30131© American Funds Distributors, Inc.

The Boones and the Klausens

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The Boones$200,000 investment on 1/1/92

Chose a long-term U.S. government bond

Interest – 7.27% annually

Income – $14,540

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The Klausens$200,000 investment on 1/1/92

Chose The Investment Company of America

Monthly withdrawals at annual rate of 5% of previous year’s ending account value

Income in 1992 – $10,000

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The Boones want to guarantee the return of their investment dollars

The Klausens strive to maintain their purchasing power

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1992 – 2011

As of 12/31/11.

Cost of living increased

64%

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The Klausens’ income from ICA$200,000 investment, 1/1/92 – 12/31/11, 5% withdrawal rate*

*Monthly withdrawals at an annual rate of 5% of the previous year’s ending account value.Results with all distributions reinvested.

Figures are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com. Fund results are for Class A shares and reflect deduction of the 3.50% sales charge applicable to a $200,000 investment.

$23,215

$18,355

1992 1997 2002 2007 2011

$10,000

$14,083

$20,338

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The Boones and the Klausens$200,000 investment, 1/1/92 – 12/31/11

Fund results with all distributions reinvested.


$490,800Total value

$200,000Value ofinvestment(12/31/11)

$290,800Total interestreceived

Long-termU.S. government bond

$687,560Total value

$342,645Value ofinvestment(12/31/11) $344,915

Totalwithdrawals

The Investment Company of America

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In all 59 of the 20 calendar-year periods in ICA’s lifetime, the Klausens would have done better than the Boones — often much better.

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Margaret and Harry BooneLong-term U.S. government bond, $200,000 investment,1/1/92 – 12/31/11

That’s all they have!

After 20 years

Originalinvestment

$200,000$200,000

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Vivian and Joe KlausenThe Investment Company of America, $200,000 investment, 1/1/92 – 12/31/11

Results with all distributions reinvested.


Originalinvestment

$200,000

After 20 yearsin the fund

$342,645

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American Funds investment resultsAverage annual total returns for periods ended 6/30/12

Results are based on an initial $1,000 investment at the beginning of the stated periods. Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Expense ratios are as of the fund’s most recent fiscal year-end available at time of publication. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit americanfunds.com for more information.

Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com. Fund results are for Class A shares and reflect deduction of the maximum sales charge (5.75%).

The Investment Company of America® – 3.40% – 1.97% 4.48% 0.61%

1 year 5 years 10 years Expense ratio


Long-term U.S. government bond rates (as reported by the Federal Reserve) have been substituted for periods when 20-year Treasury bonds were not sold, as in 1987−1992.


Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

If used after September 30, 2012, this presentation must be accompanied by a current American Funds quarterly statistical update.

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Widely used as a measure of inflation, the CPI is computed by the U.S. Department of Labor, Bureau of Labor Statistics.

Unlike mutual fund shares, investments in U.S. Treasuries are guaranteed by the U.S. government as to the payment of principal and interest.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Bond prices and a bond fund’s share price will generally move in the opposite direction of interest rates.

Unlike fund shares, investments in savings accounts offer a guarantee of principal.

AI-44440

Boones And Klausens

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