Statement of Additional Information - American Funds Mortgage Fund

Additional information about the fund’s policies — The information below is not part of the fund’s fundamental or nonfundamentalpolicies. This information is intended to provide a summary of what is currently required or permitted by the 1940 Act and the rulesand regulations thereunder, or by the interpretive guidance thereof by the SEC or SEC staff, for particular fundamental policies of thefund. Information is also provided regarding the fund’s current intention with respect to certain investment practices permitted by the1940 Act.For purposes of fundamental policy 1a, the fund may borrow money in amounts of up to 33⅓% of its total assets from banks for anypurpose. Additionally, the fund may borrow up to 5% of its total assets from banks or other lenders for temporary purposes (a loan ispresumed to be for temporary purposes if it is repaid within 60 days and is not extended or renewed).For purposes of fundamental policy 1b, a senior security does not include any promissory note or evidence of indebtedness if suchloan is for temporary purposes only and in an amount not exceeding 5% of the value of the total assets of the fund at the time the loanis made (a loan is presumed to be for temporary purposes if it is repaid within 60 days and is not extended or renewed). Further, tothe extent the fund covers its commitments under certain types of agreements and transactions, including reverse repurchaseagreements, mortgage-dollar-roll transactions, sale-buybacks, when-issued, delayed-delivery, or forward commitment transactions,and other similar trading practices, by segregating or earmarking liquid assets equal in value to the amount of the fund’s commitment,such agreement or transaction will not be considered a senior security by the fund.For purposes of fundamental policy 1c, the policy will not apply to the fund to the extent the fund may be deemed an underwriterwithin the meaning of the 1933 Act in connection with the purchase and sale of fund portfolio securities in the ordinary course ofpursuing its investment objectives and strategies.For purposes of fundamental policy 1e, the fund may not lend more than 33⅓% of its total assets, provided that this limitation shall notapply to the fund’s purchase of debt obligations.For purposes of fundamental policy 1f, the fund may not invest 25% or more of its total assets in the securities of issuers in aparticular industry. This policy does not apply to investments in securities of the U.S. Government, its agencies or GovernmentSponsored Enterprises or repurchase agreements with respect thereto.The fund currently does not intend to engage in securities lending, purchase securities on margin, sell securities short or invest inputs, calls, straddles or spreads or combinations thereof.Page 12