Unassociated Document
SCHEDULE 14A
INFORMATION
Proxy Statement
Pursuant to Section 14(a) of the Securities Exchange Act of 1934
(Amendment No.
)
Filed by the
Registrant [X]
Filed by a party
other than the Registrant [ ]
Check the
appropriate box:
[ ] Preliminary
Proxy Statement
[ ] Confidential,
for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
[ ] Definitive
Proxy Statement
[X] Definitive
Additional Materials
[ ] Soliciting
Material Pursuant to Section 240.14a-12
AMCAP Fund,
Inc.
American Balanced
Fund, Inc.
The American Funds
Income Series
American Funds
Money Market Fund
American Funds
Short-Term Tax-Exempt Bond Fund
American Funds
Target Date Retirement Series, Inc.
The American Funds
Tax-Exempt Series I
The American Funds
Tax-Exempt Series II
American
High-Income Municipal Bond Fund, Inc.
American
High-Income Trust
American Mutual
Fund, Inc.
The Bond Fund of
America, Inc.
Capital Income
Builder, Inc.
Capital World Bond
Fund, Inc.
Capital World
Growth and Income Fund, Inc.
EuroPacific Growth
Fund
Fundamental
Investors, Inc.
The Growth Fund of
America, Inc.
The Income Fund of
America, Inc.
Intermediate Bond
Fund of America
International
Growth and Income Fund, Inc.
The Investment
Company of America
Limited Term
Tax-Exempt Bond Fund of America
The New Economy
Fund
New Perspective
Fund, Inc.
New World Fund,
Inc.
Short-Term Bond
Fund of America, Inc.
SMALLCAP World
Fund, Inc.
The Tax-Exempt Bond
Fund of America, Inc.
Washington Mutual
Investors Fund, Inc.
______________________________________________
(Name of Registrant
as Specified In Its Charter)
__________________________________________________________
(Name of Person(s)
Filing Proxy Statement, other than the Registrant)
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Article
in the September Flyer
Important
proxy vote for all shareholders
In late August, all American
Funds shareholders will begin receiving proxy materials asking them to vote on
measures designed to reduce expenses for fund shareholders and provide the funds
with more investment flexibility.
Some of the eight
proposals will affect all of the American Funds, and some apply only to certain
funds. The proposals fall into categories that include:
•
fund business, such as electing members to the funds’ boards
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• agreements
between the funds and Capital Research and Management Company,SM
the investment adviser to the
funds
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•
definition of the funds’ investment policies
Please alert your
clients who are invested in the American Funds that they will receive proxy
materials for each account by mail. Encourage them to vote promptly in order to
avoid receiving follow-up phone calls and mailings about these important proxy
measures. You can also direct them to our shareholder website, americanfunds.com/vote, for
more information and access to electronic voting.
Article
in the October Flyer
Important
reminder about proxy votes
All American Funds
shareholders were recently mailed proxy materials asking them to vote on
measures designed to increase investment flexibility and streamline fund
administration, which may reduce some fund expenses.
In
all, shareholders have been asked to consider eight measures including proposals
regarding definitions of fund investment policies; agreements between the funds
and their investment adviser, Capital Research and Management CompanySM; and
fund board elections. Some of the measures would affect all of the American
Funds, and some apply only to certain funds. American Funds Insurance
Series® has
scheduled a similar proxy vote.
Shareholders may
receive more than one set of proxy materials in the mail — one for each separate
account. To vote all shares, they must vote all ballots. Encourage your clients
to vote promptly in order to avoid receiving follow-up phone calls and mailings
about these important proxy measures. You can suggest that they cast their votes
by signing and returning the ballot, or direct them to americanfunds.com/vote for
more information and access to electronic voting.
Article
in the Fall Investor
Vote
on American Funds’ proposals to increase efficiency and investment
flexibility
As
an American Funds shareholder, you were sent proxy statements and ballots to
vote on several important proposals. We encourage you to read the materials you
received in the mail because they contain key information regarding these
proposals. The measures seek primarily to provide the funds with greater
investment flexibility and streamline fund administration.
Some proposals
apply to all the American Funds while others apply only to certain funds. They
include a proposal calling for a uniform set of investment policies across all
funds as well as a measure that would allow the portfolio managers and analysts
of The New Economy Fund to invest in growing, innovative companies beyond those
in
the service and
information industries. Two other proposals seek the election of fund board
members and a reorganization of certain funds into Delaware statutory trusts. We
believe these proposed changes will make the funds more flexible and efficient
and may reduce some fund expenses over time.
You have received
either a complete kit containing the full proxy proposal and ballot or a
shareholder meeting notice outlining the proposals and instructing you to vote
by phone or online. Shareholders with multiple fund accounts have been sent
multiple mailings. You should vote all the ballots you receive. The board of
each fund recommends that you vote in favor of all management-initiated
proposals.
Shareholders in 16
funds submitted a proposal requesting the boards adopt policies to prohibit
investments in certain companies based on human rights considerations. Capital
Research and Management Company and the fund boards recommend a “no” vote on
this proposal. They believe that Capital’s existing policy of considering these
issues on a company-by-company basis as part of the investment management
process is preferable to the shareholder proposal.
If
you have questions about the voting process, want to access electronic voting or
would like to download the proxy statement, go to americanfunds.com/vote.
If you need replacement materials, order a complimentary copy by calling
877/816-5331 or visiting proxy-direct.com/afs. Please note that shareholders who
don’t complete all ballots will receive follow-up phone calls and/or
mailings.
Article
in the Fall Newsline
Vote
on American Funds proposals to increase efficiency and investment
flexibility
By
now, you’ve received proxy materials and ballots that will allow you to cast
your vote on several important proposals for the upcoming American Funds
shareholder meetings. The measures are designed primarily to streamline fund
administration and to provide the funds with more investment
flexibility.
What are these proposals? Some
of the proposals apply to all of the American Funds while others apply only to
certain funds. They range from a uniform set of fundamental investment policies
across all funds to an expansion of the investment universe for The New Economy
Fund. Currently, The New Economy Fund is restricted to investing in companies in
service and information industries — the change would allow the fund’s managers
to invest in growing, innovative companies regardless of industry
classification. Two other proposals seek the election of fund board members and
a reorganization of certain funds into Delaware statutory trusts. Why? We
believe these proposed changes will make the funds more flexible and efficient
and may reduce some fund expenses.
How do I vote? Shareholders
received either a complete kit containing the full proxy proposal and ballot or
a shareholder meeting notice outlining the proposals and asking
shareholders to vote by phone or online. Shareholders with multiple
accounts will receive multiple mailings. The bottom line? Shareholders
should vote all ballots they receive. The board of each fund recommends that
shareholders vote in favor of all management-initiated proposals.
In
addition, shareholders of 16 funds submitted a proposal requesting the boards
adopt policies to prohibit investments in certain companies based on human
rights considerations. Capital Research and Management Company, the funds’
investment adviser, and the fund boards recommend a “no” vote on this proposal.
They believe the adviser’s existing policy of considering human rights issues on
a company-by-company basis as a part of the investment management process is
preferable to the shareholder proposal.
We want to hear from you. As
an American Funds shareholder, your participation in this proxy vote is
key. We encourage you to read the materials you received in the mail because
they contain important information regarding the proposals. Questions about the
voting process? Go to americanfunds.com/vote for more information, access to
electronic voting or to download a copy of the proxy statement. You can also
order a complimentary copy by calling 877/816-5331 or visiting
proxy-direct.com/afs. Please
note that shareholders who don’t complete all ballots will receive follow-up
phone calls and/or mailings.
Article
on the Capital Group Intranet
American
Funds urges shareholders to vote on several key proposals
This month,
American Funds shareholders are being asked to vote by proxy on a number of
significant proposals, which, if adopted, will streamline fund administration
activities and promote greater investment flexibility.
All CGC associates
who own American Funds (outside of the Master Retirement Plan, 401(k) Tax
Advantage Plan or a 529 CollegeAmerica account) are strongly encouraged to
promptly vote their shares, which can be done online. (You will receive specific
voting instructions based on the fund shares you own.)
The proxy vote will
impact all American Funds shareholders, and it’s the broadest vote the funds
have ever undertaken. It covers eight proposals, some of which will affect all
the funds, and others that apply only to certain funds.
Reducing
fund board clusters
One proposal will
reduce the number of fund board clusters. “There are currently nine clusters,
but we’d like to move toward six,” says Mike Downer, senior vice president and
coordinator of Legal and Compliance for Capital Research and Management
Company.
“This will bring
several benefits over time. We’ll be able to focus on fewer independent fund
directors and decrease the number of board-related meetings. This will not only
maximize our ability to be effective, but also will result in cost savings for
the funds and our organization.”
Because law
requires a certain number of fund directors to be elected by shareholders, it
made sense to go out to all shareholders for a vote. In that way, the fund
boards can add new members for a longer period without incurring the expense of
conducting additional shareholder meetings.
Making
the most of the proxy
“When we decided to
implement the vote for board members, we thought about other issues we could
address at the same time,” Mike says. “A lot of thought went into what should be
on the proxy. We concluded it would be most cost effective to get everything we
need done at once.”
Several issues had
been lingering for a long time. One related to the different jurisdictions in
which the funds had been registered. “The funds are organized under four
different forms of corporate organization,” Mike notes. “At one point, this
structure offered certain advantages. But those distinctions have disappeared,
and now it only adds unnecessary complexity.”
As
a result, a proposal was added to organize all funds into a Delaware statutory
trust. This will reduce the number of shareholder meetings required, and help
make operations more efficient, which will reduce expenses. Mike adds, “Working
within one set of rules is simpler, and there’s less opportunity for something
to fall through the cracks.”
Other proposals in
the proxy include:
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Updating
fundamental investment policies
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The funds are still
subject to restrictions from many investment policies imposed by states before
1996, when the U.S. government pre-empted the states’ ability to do that. The
proxy contains a proposal to streamline the fundamental investment policies to
make them as consistent as possible across all funds and provide maximum
flexibility.
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·
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Allowing
for incorporation of CRMC investment
divisions
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Another proposal
calls for the reorganization as corporate entities of the investment divisions
of CRMC (Capital Research Global Investors and Capital World Investors, which
were created through the disaggregation efforts at CRMC several years ago).
Incorporation will help these divisions be recognized as separate investment
entities for purposes of ownership reporting and takeover limits in countries
such as Japan and Germany.
“The U.S.
recognizes these divisions without requiring incorporation,” Mike says. “But
outside the U.S., there are major countries that only recognize incorporated
entities as disaggregated. At the same time, we’ve applied to the Securities and
Exchange Commission for an order to allow us to have one shareholder vote that
enables us to assign management of assets to whatever Capital-affiliated
investment group is best suited to the needs of the funds, without triggering
additional shareholder votes.”
The remaining
proposals pertain to individual funds, such as an expansion of the investment
universe for The New Economy Fund® and its variable annuity counterpart,
American Funds Insurance Series Global Discovery Fund®. They also address some
unique issues, including an “anti-genocide” proposal submitted by shareholders
of certain funds.
“This was submitted
by a group that’s making a similar request of other large fund complexes,” says
Mike. “It’s an advisory vote only, not binding, requesting fund boards to
prevent holdings in companies that contribute to genocide and crimes against
humanity. We believe a better approach is to consider these matters as part of
the investment process, which our organization already does.”
Prompt
voting encouraged
Because of the
nature and scope of the proposals in the proxy, every effort is being made to
get shareholders to vote promptly so the required threshold is met
quickly.
Proxy materials are
being carefully planned to obtain the desired outcome at the lowest cost.
Shareholders with larger holdings will receive a hard-copy packet (printed on
low-cost paper) fully detailing all the proposals, while shareholders with
smaller holdings will receive a letter directing them to a website where they
can read the proxy statement and vote.
The sooner the
required threshold of shareholder votes is met, the better. Capital has hired
two proxy solicitation firms to contact shareholders directly if they haven’t
voted by a certain date—so earlier voting would reduce this expense. The firms
also analyzed all shareholder data to determine which funds require the greater
effort to obtain a vote. “Our goal is to be as cost sensitive as possible,” Mike
says.
AFIS has scheduled
a similar proxy vote.
Shareholders may
vote online, by phone, or by signing, dating and returning the proxy ballot they
receive. Proxy materials will provide instructions detailing how to vote using
these methods. For The Investment Company of America®, voting will end on 27
October, the date of its shareholder meeting. For the other funds, voting will
end on 24 November, the date of their shareholder meeting. If approved, the
proposals are anticipated to take effect in 2010.
Emails
to Retirement Plan Sponsors
Subject: Upcoming American
Funds proxy mailing [PlanPremier® or PlanPremier TPA®]
Dear plan
sponsor:
You will soon be
receiving by mail proxy materials related to the American Funds mutual funds
offered in your retirement plan. The proxy statement asks shareholders to
consider a number of proposals that are designed to provide the funds with more
investment flexibility and streamline fund administration, which may reduce
expenses for fund shareholders. We encourage you to vote in a timely manner to
help the funds avoid the cost of additional mailings.
You may vote online
at www.proxy-direct.com/afs, by calling 800/337-3503 or by signing, dating and
returning the proxy ballot you receive. Voting will end October 27, 2009 (for
The Investment Company of America®), or
November 24, 2009 (for all other funds), the dates of the shareholder
meetings.
You can find more
information about the proposals, including a video, by clicking
here.
Thank you for your
attention to this important matter.
Subject:
Upcoming American Funds proxy mailing
Dear third-party
administrator:
American Funds plan
sponsors will soon be receiving proxy materials that ask them to consider a
number of proposals that are designed to provide the funds with more investment
flexibility and streamline fund administration, which may reduce expenses for
fund shareholders.
The proposals
include the following:
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The election
of fund board members
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The approval
of an Agreement and Plan of Reorganization that provides for the
reorganization of each fund from a Delaware corporation, Maryland
corporation or Massachusetts business trust into a Delaware statutory
trust
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The update of
the funds’ fundamental investment
policies
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The approval
of a policy allowing Capital Research and Management Company (CRMC) to
appoint subsidiary advisers to manage the day-to-day investment activities
of the funds without additional shareholder
approval
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The approval
of amendments to the funds’ Investment Advisory and Service Agreements
with CRMC
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The approval
of changes to the investment objectives of The New Economy Fund®
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The
consideration of a proposal submitted by shareholders of certain funds
that requests the Boards of these funds to “institute procedures to
prevent holding investments in companies that, in the judgment of the
Board, substantially contribute to genocide or crimes against humanity,
the most egregious violations of human
rights.”
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The Board of each
fund recommends that shareholders vote in favor of all management-initiated
proposals and against the shareholder-submitted proposal. Voting will end
October 27, 2009 (for The Investment Company of America®), or
November 24, 2009 (for all other funds), the dates of the shareholder
meetings.
Thank you for your
continued support of American Funds.
Email
responses to requests for more proxy information
Subject Line: Regarding
American Funds - As Requested
As
discussed, we have attached the joint proxy statement and information about the
upcoming American Funds shareholder meeting.
The Board of your
Fund(s) has reviewed the proposals as detailed in the proxy statement and for
the proposals that apply to your fund(s), urges a vote in favor of Proposals 1
through 7 and against Proposal 8 as explained in the joint proxy
statement.
Please take a
moment to review the statement and if you have any questions, or are ready to
cast your vote by telephone, please call toll-free 1-###-###-####. We
are available to answer your questions from 9:00am until 11:00pm Eastern Time
weekdays and from Noon to 6:00pm Eastern Time on Saturday.
If
you would prefer, and have your proxy card(s), you may vote via the internet
(www.proxy-direct.com/afs)
or by touchtone telephone (1-xxx-xxx-xxxx), which are available 24 hours a
day.
Thank you for your
time and your attention to this matter.
Subject Line: Regarding
American Funds - As Requested
As
discussed, we have attached the joint proxy statement and information about the
American Funds shareholder meeting.
We
are trying to avoid any further adjournment of the shareholder meeting for the
Fund(s) which was originally scheduled for <Original Meeting
Date>.
The Board of your
Fund(s) has reviewed the proposals as detailed in the proxy statement and, for
the proposals that apply to your Fund(s), urges a vote in favor of Proposals 1
through 7 and against Proposal 8 as explained in the joint proxy
statement.
Please take a
moment to review the statement and if you have any questions, or are ready to
cast a vote by telephone, please call toll-free 1-###-###-####.
We
are available to answer your questions from 9:00am until 11:00pm Eastern Time
weekdays and from Noon to 6:00pm Eastern Time on Saturday
If
you would prefer, and have your proxy card(s), you may vote via the internet
(www.proxy-direct.com)
or by touchtone telephone (1-xxx-xxx-xxxx), available 24 hours a
day.
Thank you for your
time and your attention to this matter.