gvtcorr.htm
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Funds ®]
The
American Funds Income Series
333 South Hope
Street
Los Angeles,
California 90071
Phone (213)
486-9200
Kimberly
S. Verdick
Secretary
October 27,
2009
Ms. Laura Hatch,
Staff Accountant
U.S. Securities and
Exchange Commission
100 F Street,
NE
Washington, DC
20549
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Re:
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The
American Funds Income Series - U.S. Government Securities
Fund
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|
|
File
Nos. 002-98199 and 811-04318
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Dear Ms.
Hatch:
This letter is in
response to oral comments we received from you on September 30, 2009 to the
fund’s Post-Effective Amendment No. 39 to the Registration Statement under the
Securities Act of 1933 and Amendment No. 38 to the Registration Statement under
the Investment Company Act of 1940. We appreciate your prompt
response to the filing.
Our responses to
your comments are set forth below. We will incorporate any changes to the fund’s
Registration Statement in a filing pursuant to Rule 485(b) to be automatically
effective on November 1, 2009.
1. Fees
and expenses of the fund – page 1 of the fund’s prospectus
Comment: In the
annual fund operating expenses table, please remove the asterisk in the “other
expenses” column for Class F-2 shares.
Response: We
will remove the asterisk.
2. Principal
investment strategies – page 3 of the fund’s prospectus
Comment: The
prospectus states that: “The fund may invest up to 20% of its assets in
nongovernment securities rated AAA or Aaa (or in unrated securities determined
to be of equivalent quality by the fund's investment adviser).” Please confirm
whether the fund may invest in securities rated below AAA/Aaa.
Response: The
fund does not currently invest in securities rated below AAA/Aaa.
3. Principal
risks – page 4 of the fund’s prospectus
Comment: The prospectus
indicates that the fund invests in nongovernment securities rated AAA/Aaa.
Please include additional language regarding the risks of investing in these
types of securities.
Response: The
fund does not currently invest a significant portion of its assets in
nongovernment securities nor does it intend to invest substantially in
nongovernment securities in the next twelve months. Accordingly, we
will remove the language regarding investments in nongovernment securities from
the prospectus and include it in the statement of additional information. We
will also continue to include language regarding the risks of investing in
nongovernment securities in the statement of additional
information.
4. Management
and organization – page 12 of the fund’s prospectus
Comment: The
prospectus states that the fund’s management fee is based on the daily net
assets of the fund and the fund's monthly gross investment income. Please
describe the basis for the calculation of the management fee, including any
breakpoints.
Response: The
basis for the calculation of the management fee, including breakpoints is
described in the statement of additional information in the section titled
“investment advisory and service agreement.” We will include language in the
“management and organization” section of the prospectus stating that further
information on the management fee is available in the statement of additional
information.
The changes
described above will also be made to the fund’s retirement plan prospectus, to
the extent the change applies to that document. Thank you for your consideration
of our response to your comments.
If
you have any questions please do not hesitate to contact me at (213) 486-9345 or
Tim McHale at (213) 615-0404.
/s/ Kimberly S.
Verdick
Kimberly S.
Verdick
Secretary