Collegeamerica

Interests in CollegeAmerica are sold through unaffiliated intermediaries. © 2011 American Funds Distributors, Inc. AI-99974

CollegeAmerica is sponsored by Virginia College Savings Plan.

Figures are past results and are not predictive of results in future periods.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

She wants to be a doctor

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CollegeAmerica®

A 529 college savings plan

• Flexibility• Oversight• Tax advantages• American Funds

© American Funds Distributors, Inc. V1

Agenda

An academic decision

An educated choice

Building your plan

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An academic decision

AI-90005© American Funds Distributors, Inc. V1

529 college savings plans

Flexibility

Tax advantages

Oversight

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An attractive combination of benefits

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This hypothetical example assumes an 8% average annual rate of return (compounded monthly) for both investments. The example also assumes an investor pays 25% in taxes. (The typical mutual fund investor falls into the 25% tax bracket.) Your tax rate may vary. The current minimum tax rates on capital gains and dividends could make the taxable investment return higher, thus reducing the difference between the two ending values in the chart. If you withdraw money from a 529 college savings plan for purposes other than higher education, your earnings will be subject to federal income tax and possibly a 10% federal tax penalty. The results shown here are not intended to represent an investment in a specific fund and, of course, a program of regular investing does not ensure a profit or protect against loss. Your investment experience will differ.

Why tax-free investing?

The tax-free advantage


1110987654321Year 12 13 14 15 16 17 18

$50,000

40,000

30,000

20,000

10,000

0

$48,329

$38,929

Tax-free college savings plan

Taxable account

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An educated choice

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Why CollegeAmerica?

Designed for use with advisers

Competitive operating expenses

Diverse investment options

Experienced investment management

Low start-up amounts


Account value at age 18 if your beneficiary is currently a …

How your monthly investment can grow

Never too early … or late


This hypothetical example assumes an 8% average annual rate of return, compounded monthly. The results shown are not intended to represent an investment in a specific fund. Your investment experience will differ. Regular investing does not ensure a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.

$100 $ 48,329 $ 24,211 $ 9,264

200 96,657 48,422 18,528

300 144,986 72,634 27,792

400 193,315 96,845 37,056

500 241,643 121,056 46,319

Monthly investment Newborn 6-year-old 12-year-old

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Building your plan

© American Funds Distributors, Inc. V1

Invest in a single fund

Select an investment foundation

Build a customized portfolio of funds

With 25 investment choices, investors can:

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Building your plan

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The American Funds difference

Long-term, value-oriented approach

Extensive global research effort

Multiple portfolio counselor system

Experienced investment professionals

Commitment to low management fees


Three foundation choices


Building your plan

ABC FoundationSM

Conservative Equity

FoundationSM

Income FoundationSM

The Bond Fund of

AmericaSM

AmericanHigh-Income

TrustSM

Capital World Bond

Fund®

American Mutual Fund®

American Balanced

Fund®

Capital World Growth and

Income FundSM

The Income Fund of America®

The Bond Fund of

AmericaSM

Capital Income Builder®

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Enrollment is a long way off

This sample asset allocation is for illustrative purposes only. © American Funds Distributors, Inc. AI-70112

Conservative Equity Foundation

Through investments in three equity-oriented funds, Conservative Equity Foundation can give prudent investors an opportunity for growth while also seeking reduced volatility.

American Mutual Fund

American Balanced

Fund

Capital World Growth and Income

Fund

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Shorter horizon or increased stability


Income Foundation

With an emphasis on income and the potential for growth, Income Foundation can help meet the investing objectives of those for whom college is still a few years away.

The Income Fund of America

The Bond Fund of America

Capital Income Builder

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Enrollment is near


ABC Foundation

The combination of three complementary bond funds can make ABC Foundation a solid choice for those nearing enrollment, when income and capital preservation become more important.

The Bond Fund of America

Capital World Bond

Fund

American High-Income

Trust

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Growth funds

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

SMALLCAP World Fund®

Equity-income funds

Capital Income Builder ®

The Income Fund of America®

Growth-and-income funds

American Mutual Fund®

Capital World Growth and Income FundSM

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

Balanced funds

American Balanced Fund®

American Funds Global Balanced FundSM

Equity funds

American Funds in CollegeAmerica

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American Funds in CollegeAmerica


Bond funds

American Funds Mortgage FundSM

American High-Income TrustSM

The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

Money market fund

American Funds Money Market Fund®

Fixed-income and money market funds

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Planning for college

An academic decision– 529 college savings plans

An educated choice– CollegeAmerica

Building your plan – Trust American Funds


Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds and CollegeAmerica. This and other important information is contained in each fund’s prospectus and summary prospectus and the CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing.


Depending on your state of residence, there may be an in-state plan that provides tax and other benefits not available through CollegeAmerica.

You should discuss the tax implications of 529 plans with your legal and/or tax advisers, as features may vary significantly from state to state. You should read the appropriate 529 plan program description before investing. It includes details about the plan’s risks, charges and tax treatment.

Most 529 plans will accept both in-state and out-of-state applicants. While federal tax treatment of 529 plans is identical regardless of the state plan, state tax treatment varies. State tax treatment may also vary for in-state and out-of-state residents.

Each state’s 529 plan must be evaluated based upon its own merits relative to your needs, including the tax effects on the contributor and the beneficiary.

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© American Funds Distributors, Inc.

The return of principal in bond funds, as well as in funds with significant bond holdings, is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund(s). Bond prices and a bond fund’s share price will generally move in the opposite direction of interest rates.

Lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds.

Regular investing neither ensures a profit nor protects against loss in a declining market.

Diversifying investments does not insure against market loss.

Investing outside the United States involves additional risks, such as currency fluctuations, periods of illiquidity and price volatility, as more fully described in the prospectus. These risks may be heightened in connection with investments in developing countries.

Small-company stocks entail additional risks, and they can fluctuate in price more than larger company stocks.

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Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. Although money market funds seek to preserve the value of your investment at $1.00 a share, it is possible to lose money by investing in a money market fund.

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Collegeamerica

Economy & Finance

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