Annual Report - American Balanced Fund - American Funds

Beginningaccount value7/1/2014Endingaccount value12/31/2014Expenses paidduring period*Annualizedexpense ratioClass A - actual return $1,000.00 $1,037.74 $3.03 .59%Class A - assumed 5% return 1,000.00 1,022.23 3.01 .59Class B - actual return 1,000.00 1,034.09 6.82 1.33Class B - assumed 5% return 1,000.00 1,018.50 6.77 1.33Class C - actual return 1,000.00 1,033.82 7.07 1.38Class C - assumed 5% return 1,000.00 1,018.25 7.02 1.38Class F-1 - actual return 1,000.00 1,037.87 3.34 .65Class F-1 - assumed 5% return 1,000.00 1,021.93 3.31 .65Class F-2 - actual return 1,000.00 1,038.86 1.95 .38Class F-2 - assumed 5% return 1,000.00 1,023.29 1.94 .38Class 529-A - actual return 1,000.00 1,037.72 3.49 .68Class 529-A - assumed 5% return 1,000.00 1,021.78 3.47 .68Class 529-B - actual return 1,000.00 1,033.71 7.48 1.46Class 529-B - assumed 5% return 1,000.00 1,017.85 7.43 1.46Class 529-C - actual return 1,000.00 1,033.35 7.43 1.45Class 529-C - assumed 5% return 1,000.00 1,017.90 7.37 1.45Class 529-E - actual return 1,000.00 1,036.46 4.77 .93Class 529-E - assumed 5% return 1,000.00 1,020.52 4.74 .93Class 529-F-1 - actual return 1,000.00 1,038.88 2.31 .45Class 529-F-1 - assumed 5% return 1,000.00 1,022.94 2.29 .45Class R-1 - actual return 1,000.00 1,034.28 7.08 1.38Class R-1 - assumed 5% return 1,000.00 1,018.25 7.02 1.38Class R-2 - actual return 1,000.00 1,033.99 6.87 1.34Class R-2 - assumed 5% return 1,000.00 1,018.45 6.82 1.34Class R-2E - actual return † 1,000.00 1,021.66 1.68 .49Class R-2E - assumed 5% return † 1,000.00 1,022.74 2.50 .49Class R-3 - actual return 1,000.00 1,036.48 4.77 .93Class R-3 - assumed 5% return 1,000.00 1,020.52 4.74 .93Class R-4 - actual return 1,000.00 1,037.92 3.29 .64Class R-4 - assumed 5% return 1,000.00 1,021.98 3.26 .64Class R-5 - actual return 1,000.00 1,039.37 1.75 .34Class R-5 - assumed 5% return 1,000.00 1,023.49 1.73 .34Class R-6 - actual return 1,000.00 1,039.67 1.49 .29Class R-6 - assumed 5% return 1,000.00 1,023.74 1.48 .29*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by thenumber of days in the period, and divided by 365 (to reflect the one-half year period).† The period for the ”annualized expense ratio” and ”actual return” line is based on the number of days since the initial sale of the share class on August 29, 2014.The ”assumed 5% return” line is based on 184 days.Tax informationunauditedWe are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The fundhereby designates the following amounts for the fund’s fiscal year ended December 31, 2014:Long-term capital gains $4,365,643,000Qualified dividend income 100%Corporate dividends received deduction $994,887,000U.S. government income that may be exempt from state taxation $68,054,000Individual shareholders should refer to their Form 1099 or other tax information, which was mailed in January 2015, to determine thecalendar year amounts to be included on their 2014 tax returns. Shareholders should consult their tax advisors.32 American Balanced Fund