Annual Report - American Balanced Fund - American Funds

Financial highlights (continued)Income (loss) frominvestment operations 1Dividends and distributionsNet assetvalue,beginningof periodNetinvestmentincome(loss) 2Net gains(losses) onsecurities(bothrealized andunrealized)Total frominvestmentoperationsDividends(from netinvestmentincome)Distributions(from capitalgains)TotaldividendsanddistributionsNet assetvalue,endof periodTotalreturn 3,4Net assets,end of period(in millions)Ratio ofexpenses toaveragenet assetsRatio ofnet income(loss) toaveragenet assets 2Class 529-C:Year ended 12/31/2014 $24.38 $.19 $1.74 $1.93 $(.17) $(1.44) $(1.61) $24.70 7.90% $ 905 1.46% .76%Year ended 12/31/2013 20.37 .17 4.03 4.20 (.19) — (.19) 24.38 20.68 841 1.48 .76Year ended 12/31/2012 18.19 .21 2.18 2.39 (.21) — (.21) 20.37 13.19 694 1.49 1.08Year ended 12/31/2011 17.90 .20 .33 .53 (.24) — (.24) 18.19 3.00 607 1.48 1.11Year ended 12/31/2010 16.19 .26 1.67 1.93 (.22) — (.22) 17.90 12.03 583 1.48 1.57Class 529-E:Year ended 12/31/2014 24.38 .32 1.75 2.07 (.30) (1.44) (1.74) 24.71 8.50 144 .93 1.28Year ended 12/31/2013 20.37 .29 4.02 4.31 (.30) — (.30) 24.38 21.31 134 .95 1.29Year ended 12/31/2012 18.18 .31 2.19 2.50 (.31) — (.31) 20.37 13.84 112 .97 1.60Year ended 12/31/2011 17.90 .30 .32 .62 (.34) — (.34) 18.18 3.47 98 .97 1.62Year ended 12/31/2010 16.19 .35 1.66 2.01 (.30) — (.30) 17.90 12.59 92 .97 2.07Class 529-F-1:Year ended 12/31/2014 24.37 .44 1.76 2.20 (.42) (1.44) (1.86) 24.71 9.05 111 .46 1.76Year ended 12/31/2013 20.36 .39 4.03 4.42 (.41) — (.41) 24.37 21.88 101 .48 1.76Year ended 12/31/2012 18.18 .41 2.18 2.59 (.41) — (.41) 20.36 14.32 82 .49 2.09Year ended 12/31/2011 17.90 .38 .33 .71 (.43) — (.43) 18.18 3.98 61 .48 2.11Year ended 12/31/2010 16.19 .43 1.67 2.10 (.39) — (.39) 17.90 13.15 57 .47 2.57Class R-1:Year ended 12/31/2014 24.28 .21 1.75 1.96 (.19) (1.44) (1.63) 24.61 8.05 158 1.38 .83Year ended 12/31/2013 20.29 .19 4.01 4.20 (.21) — (.21) 24.28 20.76 151 1.39 .84Year ended 12/31/2012 18.12 .23 2.17 2.40 (.23) — (.23) 20.29 13.28 121 1.40 1.16Year ended 12/31/2011 17.83 .22 .33 .55 (.26) — (.26) 18.12 3.09 126 1.40 1.19Year ended 12/31/2010 16.13 .27 1.66 1.93 (.23) — (.23) 17.83 12.10 135 1.40 1.65Class R-2:Year ended 12/31/2014 24.30 .21 1.74 1.95 (.19) (1.44) (1.63) 24.62 8.03 1,308 1.36 .86Year ended 12/31/2013 20.30 .20 4.02 4.22 (.22) — (.22) 24.30 20.87 1,304 1.34 .90Year ended 12/31/2012 18.13 .23 2.18 2.41 (.24) — (.24) 20.30 13.31 1,158 1.37 1.20Year ended 12/31/2011 17.85 .22 .32 .54 (.26) — (.26) 18.13 3.05 1,079 1.38 1.21Year ended 12/31/2010 16.14 .27 1.67 1.94 (.23) — (.23) 17.85 12.14 1,128 1.40 1.64Class R-2E:Period from 8/29/2014to 12/31/2014 5,6 25.81 .15 .41 .56 (.21) (1.41) (1.62) 24.75 2.17 — 7 .16 4,8 .58 4,8Class R-3:Year ended 12/31/2014 24.32 .32 1.75 2.07 (.30) (1.44) (1.74) 24.65 8.51 3,315 .94 1.28Year ended 12/31/2013 20.32 .29 4.02 4.31 (.31) — (.31) 24.32 21.33 3,212 .94 1.30Year ended 12/31/2012 18.14 .32 2.18 2.50 (.32) — (.32) 20.32 13.83 2,617 .95 1.62Year ended 12/31/2011 17.86 .30 .32 .62 (.34) — (.34) 18.14 3.50 2,331 .95 1.64Year ended 12/31/2010 16.15 .35 1.67 2.02 (.31) — (.31) 17.86 12.64 2,408 .94 2.1028 2 American Balanced Fund