Statement of Additional Information - American Funds Mortgage Fund

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Fund shares owned by trustees as of December 31, 2011:Dollar range 1of fundshares ownedAggregatedollar range 1of sharesowned inall fundsin theAmerican Fundsfamily overseenby trusteeDollarrange 1,2 ofindependenttrusteesdeferredcompensation 3allocatedto fundAggregatedollarrange 1,2 ofindependenttrusteesdeferredcompensation 3 allocatedtoall fundswithinAmerican Fundsfamily overseenby trusteeName“Independent” trusteesWilliam H. Baribault $10,001 – $50,000 Over $100,000 4 $1 – $10,000 $1 – $10,000James G. Ellis None Over $100,000 N/A N/ALeonard R. Fuller None Over $100,000 N/A Over $100,000W. Scott Hedrick None Over $100,000 N/A N/AR. Clark Hooper None Over $100,000 N/A Over $100,000Merit E. Janow None Over $100,000 N/A N/ALaurel B. Mitchell None $50,001 – $100,000 N/A N/AFrank M. Sanchez None $10,001 – $50,000 N/A N/AMargaret Spellings None $50,001 – $100,000 5 N/A $10,001 – $50,000 5Steadman Upham None Over $100,000 4 N/A Over $100,000Page 20
Dollar range 1of fundshares ownedAggregatedollar range 1of sharesowned inall fundsin theAmerican Fundsfamily overseenby trusteeName“Interested” trusteesJohn H. Smet Over $100,000 Over $100,0001 Ownership disclosure is made using the following ranges: None; $1 – $10,000; $10,001 – $50,000; $50,001 – $100,000; and Over$100,000. The amounts listed for “interested” trustees include shares owned through The Capital Group Companies, Inc. retirementplan and 401(k) plan.2 N/A indicates that the listed individual, as of December 31, 2011, was not a trustee of a particular fund, did not allocate deferredcompensation to the fund or did not participate in the deferred compensation plan.3 Eligible trustees may defer their compensation under a nonqualified deferred compensation plan. Deferred amounts accumulate atan earnings rate determined by the total return of one or more American Funds as designated by the trustee.4 Information is as of July 31, 2012.5 Information is as of August 20, 2012.Trustee compensation — No compensation is paid by the fund to any officer or trustee who is a director, officer or employee of theinvestment adviser or its affiliates. Except for the independent trustees listed in the “Board of trustees and officers — ‘Independent’trustees” table under the “Management of the fund” section, all other officers and trustees of the fund are directors, officers oremployees of the investment adviser or its affiliates. The boards of funds advised by the investment adviser typically meet eitherindividually or jointly with the boards of one or more other such funds with substantially overlapping board membership (in each casereferred to as a “board cluster”). The fund typically pays each independent trustee an annual fee, which ranges from $39 to $233,based primarily on the total number of board clusters on which that independent trustee serves.In addition, the fund generally pays independent trustees attendance and other fees for meetings of the board and its committees.Board and committee chairs receive additional fees for their services.Independent trustees also receive attendance fees for certain special joint meetings and information sessions with directors andtrustees of other groupings of funds advised by the investment adviser. The fund and the other funds served by each independenttrustee each pay an equal portion of these attendance fees.No pension or retirement benefits are accrued as part of fund expenses. Independent trustees may elect, on a voluntary basis, todefer all or a portion of their fees through a deferred compensation plan in effect for the fund. The fund also reimburses certainexpenses of the independent trustees.Page 21
Page 1 and 2: American Funds Mortgage Fund ®Part
Page 3 and 4: Description of certain securities a
Page 5 and 6: Mortgages underlying most ARMS, how
Page 7 and 8: Certain rights provided to holders
Page 9 and 10: oard of trustees, taking into accou
Page 11 and 12: Fund policiesAll percentage limitat
Page 13 and 14: Management of the fundBoard of trus
Page 15 and 16: Name, age andposition with fund(yea
Page 17 and 18: Name, age andposition with fund(yea
Page 19: Name, age andposition with fund(yea
Page 23 and 24: different transfer agent fees and o
Page 25 and 26: the committee. The nominating and g
Page 27 and 28: First Clearing, LLCCustody AccountS
Page 29 and 30: Investment adviser — Capital Rese
Page 31 and 32: investment adviser may delegate all
Page 33 and 34: During the 2012 fiscal year, admini
Page 35 and 36: Following is a brief description of
Page 37 and 38: Other compensation to dealers — A
Page 39 and 40: Execution of portfolio transactions
Page 41 and 42: among the funds and other accounts
Page 43 and 44: Subject to board policies, the auth
Page 45 and 46: sales, at the last available bid pr
Page 47 and 48: Taxes and distributionsDisclaimer:
Page 49 and 50: countries. The application of the f
Page 51 and 52: Your bank should include the follow
Page 53 and 54: Frequent trading of fund shares —
Page 55 and 56: Sales chargesClass A purchasesPurch
Page 57 and 58: Moving between accounts — Investm
Page 59 and 60: Shareholders purchasing shares at a
Page 61 and 62: life insurance policies that were e
Page 63 and 64: Selling sharesThe methods for selli
Page 65 and 66: Automatic exchanges — For all sha
Page 67 and 68: General informationCustodian of ass
Page 69 and 70: Summary prospectuses, prospectuses,
Page 71 and 72:
Fund numbers — Here are the fund
Page 73 and 74:
Fund numbersFundClass529-AClass529-
Page 75 and 76:
Fund numbersFund Class A ClassR-1Cl
Page 77 and 78:
American Funds Tax-ExemptPreservati
Page 79 and 80:
Standard & Poor’sLong-term issue
Page 81 and 82:
Fitch Ratings, Inc.Long-term credit
Page 83 and 84:
Moody’sCommercial paper ratings (
Page 85 and 86:
Fannie Mae 6.00% 2042 3 4,040 4,453
Page 87 and 88:
Tennessee Valley Authority 1.875% 2
Page 89 and 90:
Federal agency mortgage-backed obli
Page 91 and 92:
Net assets consist of:Capital paid
Page 93 and 94:
charge)Classes B and 529-B* None De
Page 95 and 96:
Thinly traded securities — There
Page 97 and 98:
Share classadministrative services
Page 99 and 100:
(1) Includes exchanges between shar
Page 101:
8/31/2012 10.16 .07 .34 .41 (.16) (
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Statement of Additional Information - American Funds Mortgage Fund

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