Statement of Additional Information - American Funds Mortgage Fund

Portfolio counselor fund holdings and other managed accounts — As described below, portfolio counselors may personally ownshares of the fund. In addition, portfolio counselors may manage portions of other mutual funds or accounts advised by CapitalResearch and Management Company or its affiliates.The following table reflects information as of August 31, 2012:PortfoliocounselorDollar rangeof fundsharesowned 1Numberof otherregisteredinvestmentcompanies (RICs)for whichportfoliocounseloris a manager(assets of RICsin billions) 2Numberof otherpooledinvestmentvehicles (PIVs)for whichportfoliocounseloris a manager(assets of PIVsin billions) 3Numberof otheraccountsfor whichportfoliocounseloris a manager(assets ofother accountsin billions) 4Fergus N. MacDonald $100,001 –3 $11.2 None None$500,000Wesley K.-S. Phoa $100,001 –6 $58.7 2 $0.29 6 $3.35$500,000Kevin Adams None 5 2 $11.1 1 $0.11 3 6 $1.401 Ownership disclosure is made using the following ranges: None; $1 – $10,000; $10,001 – $50,000; $50,001 – $100,000; $100,001– $500,000; $500,001 – $1,000,000; and Over $1,000,000. The amounts listed include shares owned through The Capital GroupCompanies, Inc. retirement plan and 401(k) plan.2 Indicates fund(s) where the portfolio counselor also has significant responsibilities for the day to day management of the fund(s).Assets noted are the total net assets of the registered investment companies and are not the total assets managed by the individual,which is a substantially lower amount. No fund has an advisory fee that is based on the performance of the fund.3 Represents funds advised or sub-advised by Capital Research and Management Company or its affiliates and sold outside theUnited States and/or fixed-income assets in institutional accounts managed by investment adviser subsidiaries of Capital GroupInternational, Inc., an affiliate of Capital Research and Management Company. Assets noted are the total net assets of the funds oraccounts and are not the total assets managed by the individual, which is a substantially lower amount. No fund or account has anadvisory fee that is based on the performance of the fund or account.4 Reflects other professionally managed accounts held at companies affiliated with Capital Research and Management Company.Personal brokerage accounts of portfolio counselors and their families are not reflected.5 Tax considerations for portfolio counselors outside the U.S. may adversely influence the portfolio counselor’s ability to own sharesof the fund.6 The advisory fee of one of these accounts (representing $0.08 billion in total assets) is based partially on its investment results.Investment Advisory and Service Agreement — The Investment Advisory and Service Agreement (the “Agreement”) between thefund and the investment adviser will continue in effect until March 31, 2013, unless sooner terminated, and may be renewed from yearto year thereafter, provided that any such renewal has been specifically approved at least annually by (a) the board of trustees, or bythe vote of a majority (as defined in the 1940 Act) of the outstanding voting securities of the fund, and (b) the vote of a majority oftrustees who are not parties to the Agreement or interested persons (as defined in the 1940 Act) of any such party, cast in person at ameeting called for the purpose of voting on such approval. The Agreement provides that the investment adviser has no liability to thefund for its acts or omissions in the performance of its obligations to the fund not involving willful misconduct, bad faith, grossnegligence or reckless disregard of its obligations under the Agreement. The Agreement also provides that either party has the right toterminate it, without penalty, upon 60 days’ written notice to the other party, and that the Agreement automatically terminates in theevent of its assignment (as defined in the 1940 Act). In addition, the Agreement provides that thePage 30