American Funds American Mutual Fund Class R-6 (RMFGX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-00572

American Mutual Fund, Inc.

(Exact Name of Registrant as Specified in Charter)

333 South Hope Street

Los Angeles, California 90071

(Address of Principal Executive Offices)

Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: October 31

Date of reporting period: April 30, 2009

Vincent P. Corti

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

Copies to:

Eric A.S. Richards

O’Melveny & Myers LLP

400 South Hope Street, 10th Floor

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

[logo - - American Funds®]

The right choice for the long term®

American Mutual Fund

[photo of trees - a river running between them - a mountain in the background]

Semi-annual report for the six months ended April 30, 2009

American Mutual Fund® strives for the balanced accomplishment of three objectives — current income, growth of capital and conservation of principal — through investments in companies that participate in the growth of the American economy.

This fund is one of the American Funds. American Funds is one of the nation’s largest mutual fund families. For nearly 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2009 (the most recent calendar quarter-end):

	1 year			5 years			10 years
Class A shares
Reflecting 5.75% maximum sales charge		–34.94	%		–3.66	%		0.61	%

The total annual fund operating expense ratio was 0.62% for Class A shares for the 12 months ended March 31, 2009. Please note that the expense ratio shown above differs from those shown in the Financial Highlights table on pages 22 to 26 and the Expense Example on pages 28 and 29, which are annualized for the six-month period ended April 30, 2009.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 22 to 26 for details.

The fund’s 30-day yield for Class A shares as of May 31, 2009, calculated in accordance with the Securities and Exchange Commission formula, was 2.89%. The fund’s distribution rate for Class A shares as of that date was 3.59%. Both reflect the 5.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

Results for other share classes can be found on page 27.

Fellow shareholders:

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The first six months of fiscal year 2009 witnessed a near collapse of business activity and a continuation of the worldwide credit crisis that erupted last year. The gross domestic product (GDP) declined at an annual rate of 6.3% in the fourth quarter of 2008 and 5.7% in the first quarter of 2009, two of the worst periods since the 1930s. A large part of the decline stemmed from a near-complete curtailment of new orders. Inventories were drawn down dramatically and products were not resupplied.

In March and April, however, the stock market began to revive, and there seemed to be glimmers of hope. Investors looked past historic bankruptcy filings in the U.S. auto industry and the lower-than-anticipated GDP numbers and focused on indications that the deep recession might be lessening. Businesses reported signs of some recovery and a number of major corporations announced better-than-expected earnings. Credit markets began to thaw and financial transactions that appeared impossible a few months earlier were completed. In May, sales of additional shares and bonds by companies increased. In the two months from March 9 through May 8, the unmanaged Standard & Poor’s 500 Composite Index, a broad measure of primarily U.S. stocks, rose 37.8%.

In this turbulent environment, American Mutual Fund posted a negative return of 5.6% for the six months ended April 30, 2009. While disappointing, it was less than the 8.5% decline suffered by the S&P 500.

Over the short and long term, AMF has continued to outpace the S&P 500. For the past 12 months, AMF reported a loss of 28.5%. While significant, this compared favorably to the S&P 500’s 35.3% drop. For the past decade, the fund produced a positive cumulative total return of 12.8% — as compared with a 22.2% loss for the S&P 500. During its nearly 60-year lifetime, AMF has provided an average annual total return of 11.3%, compared with 10.7% for the S&P 500.

Portfolio review

With the exception of U.S. government securities, no segment of the market was spared during the past six months. Only a few of the stocks in the fund’s portfolio overcame the negative tide. They included telecommunication services company Embarq (+21.9%) and IBM (+11.0%). The fund’s counselors committed a large portion of AMF’s cash reserves to equities and investment-grade corporate bonds in recent months. As of April 30, 2009, the fund had 85.1% of its portfolio in common and preferred stocks and convertible securities, with 7.5% in bonds and notes and 7.4% in short-term securities and cash.

In March, the fund decreased its quarterly dividend rate to 15 cents a share from 16 cents. The 6.3% reduction is a result of dividend cuts made by companies in the portfolio. In the first quarter of 2009, companies in the S&P 500 cut their dividends by 16.0%, marking the worst quarterly decline in dividend payments since 1958. Despite this formidable challenge, we will strive to provide a high level of income for shareholders. At the current quarter rate of 15 cents a share as of April 30, the AMF dividend rate was 3.23% — above that of the S&P 500 and well above the rate of short-term government securities.

Economic review

We believe that the most serious part of the stock market decline may be behind us. But it is important to remember that we are still in the midst of the worst recession and credit crisis since the 1930s. Thanks to government action, many critical issues have been addressed. Credit is flowing again in reasonable amounts, though much of it is still guaranteed by the government. That segment of the credit world operating without government guarantees has only partially recovered. Moreover, U.S. government intervention may help but will not protect us from a further drop in business activity or worsening unemployment numbers.

The road ahead

So what will the growth rate be in the future? It may well be muted compared to the increases of the past few years. Credit will be more restricted during the recovery. Regulations will be tighter, and government involvement will be more intrusive. This may constrain corporate profitability and result in a slower rate of growth and profits. In this environment, dividends could take on greater significance. We also believe there will be a strong preference among investors for quality companies. All of this could favor American Mutual Fund, which focuses on the balanced accomplishment of three objectives — current income, preservation of capital and capital appreciation.

We appreciate your support during this challenging period.

Cordially,

/s/ James K. Dunton

James K. Dunton

President

June 17, 2009

For current information about the fund, visit americanfunds.com.

Summary investment portfolio, April 30, 2009

unaudited

The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings.  For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.

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Industry sector diversification (percent of net assets)
Industrials	14.52	%
Information technology	12.76
Health care	10.62
Consumer discretionary	8.70
Energy	8.24
Other industries	28.61
Convertible securities and preferred stocks	1.64
Bonds & notes	7.54
Short-term securities & other assets less liabilities	7.37

[end pie chart]

				Value			Percent of
Common stocks  - 83.45%	Shares				(000	)	net assets
Energy  - 8.24%
Chevron Corp.		1,643,911		$	108,663			.86	%
ConocoPhillips		3,194,500			130,975			1.04
Devon Energy Corp.		2,225,000			115,366			.91
Hess Corp.		1,765,000			96,704			.77
Marathon Oil Corp.		5,353,600			159,002			1.26
Royal Dutch Shell PLC, Class A (ADR)		3,580,000			163,534			1.29
Other securities					267,113			2.11
					1,041,357			8.24
Materials  - 2.94%
Air Products and Chemicals, Inc.		1,535,000			101,156			.80
MeadWestvaco Corp.		5,765,000			90,280			.72
Other securities					179,269			1.42
					370,705			2.94
Industrials  - 14.52%
Avery Dennison Corp.		3,450,000			99,153			.79
Burlington Northern Santa Fe Corp.		1,838,400			124,055			.98
General Electric Co.		8,417,500			106,481			.84
Lockheed Martin Corp.		1,110,000			87,168			.69
Union Pacific Corp.		1,864,600			91,627			.73
United Parcel Service, Inc., Class B		3,550,000			185,807			1.47
United Technologies Corp.		3,700,000			180,708			1.43
Waste Management, Inc.		4,345,000			115,881			.92
Other securities					843,641			6.67
					1,834,521			14.52
Consumer discretionary  - 8.70%
Darden Restaurants, Inc.		3,065,000			113,313			.90
Johnson Controls, Inc.		5,990,000			113,870			.90
Staples, Inc.		1,600,000			32,992			.26
Target Corp.		2,570,000			106,038			.84
Time Warner Inc.		4,002,666			87,378			.69
Other securities					645,207			5.11
					1,098,798			8.70
Consumer staples  - 7.73%
Avon Products, Inc.		4,135,000			94,113			.75
Coca-Cola Co.		1,850,000			79,642			.63
Kimberly-Clark Corp.		2,810,000			138,083			1.09
PepsiCo, Inc.		3,710,000			184,610			1.46
Other securities					480,467			3.80
					976,915			7.73
Health care  - 10.62%
Abbott Laboratories		4,104,600			171,778			1.36
Bristol-Myers Squibb Co.		4,662,500			89,520			.71
Eli Lilly and Co.		2,760,000			90,859			.72
Medtronic, Inc.		3,452,000			110,464			.87
Merck & Co., Inc.		10,185,000			246,884			1.95
Novartis AG (ADR)		4,522,000			171,429			1.36
Pfizer Inc		9,895,000			132,197			1.05
Schering-Plough Corp.		4,800,000			110,496			.88
Other securities					217,708			1.72
					1,341,335			10.62
Financials - 2.35%
Other securities					296,980			2.35
Information technology  - 12.76%
Hewlett-Packard Co.		4,100,000			147,518			1.17
Intel Corp.		9,770,000			154,171			1.22
International Business Machines Corp.		2,953,000			304,779			2.41
Microchip Technology Inc.		5,094,925			117,183			.93
Microsoft Corp.		15,500,998			314,050			2.48
Oracle Corp.		6,115,000			118,264			.94
Other securities					456,062			3.61
					1,612,027			12.76
Telecommunication services  - 6.68%
AT&T Inc.		15,795,597			404,683			3.20
Embarq Corp.		6,104,250			223,171			1.77
Verizon Communications Inc.		6,684,700			202,814			1.61
Other securities					13,304			.10
					843,972			6.68
Utilities  - 7.97%
Ameren Corp.		4,108,680			94,582			.75
Exelon Corp.		3,488,720			160,935			1.27
FirstEnergy Corp.		2,277,900			93,166			.74
PPL Corp.		3,252,000			97,267			.77
Questar Corp.		3,000,000			89,160			.71
Xcel Energy Inc.		4,745,000			87,498			.69
Other securities					384,002			3.04
					1,006,610			7.97
Miscellaneous -  0.94%
Other common stocks in initial period of acquisition					118,190			.94
Total common stocks (cost: $12,276,811,000)					10,541,410			83.45
				Value			Percent of
Preferred stocks  - 0.94%	Shares				(000	)	net assets
Financials  - 0.94%
BAC Capital Trust XIV 5.63% (1)		5,825,000			2,272
Bank of America Corp., Series K, 8.00% noncumulative (1)		39,090,000			22,237
Bank of America Corp., Series M, 8.125% noncumulative (1)		101,465,000			57,751			.65
Other securities					36,909			.29
Total preferred stocks (cost: $171,681,000)					119,169			.94
Convertible securities  - 0.70%
��
Financials - 0.68%
Citigroup Inc., Series D-1, 7.00% noncumulative convertible preferred (2)		1,725,000			64,754			.51
Others securities					21,698			.17
					86,452			.68
Miscellaneous -  0.02%
Other convertible securities in initial period of acquisition					2,094			.02
Total convertible securities (cost: $156,849,000)					88,546			.70
	Principal amount
Bonds & notes  - 7.54%		(000	)
Energy  - 0.16%
Shell International Finance B.V. 4.00% 2014	$	5,000			5,162			.04
Other securities					15,179			.12
					20,341			.16
Consumer discretionary  - 1.73%
AOL Time Warner Inc. 6.75%-6.875% 2011-2012		32,941			34,467
Time Warner Inc. 5.50% 2011		13,875			14,253			.38
Staples, Inc. 7.75% 2011		9,380			9,827
Staples, Inc. 9.75% 2014		93,250			102,427			.89
Other securities					58,027			.46
					219,001			1.73
Health care  - 1.10%
Abbott Laboratories 5.125% 2019		5,000			5,128			.04
Novartis Capital Corp. 4.125% 2014		5,000			5,188			.04
Pfizer Inc. 4.45% 2012		5,000			5,257			.04
Other securities					123,639			.98
					139,212			1.10
Financials  - 2.34%
Bank of America Corp. 4.25%-4.50% 2010		41,800			40,762			.32
Citigroup Funding Inc., Series D, 1.351%-2.291% 2009-2010 (1)		44,400			42,189
Citigroup Inc. 1.262%-4.625% 2009-2010 (1)		42,765			41,052			.66
Other securities					171,964			1.36
					295,967			2.34
Telecommunication services  - 0.23%
AT&T Inc. 4.85% 2014		5,000			5,190			.04
Verizon Communications Inc. 5.55%- 8.50% 2014-2018 (3)		20,000			23,245			.19
					28,435			.23
Mortgage-backed obligations (4) - 0.75%
Fannie Mae 4.00%-5.50% 2021-2024		91,759			94,094			.75
Bonds & notes of U.S. government & government agencies  - 0.32%
Freddie Mac 1.50%-2.50% 2011-2014		20,000			20,069			.16
Other securities					20,018			.16
					40,087			.32
Other - 0.91%
Other securities					115,248			.91
Total bonds & notes (cost: $914,930,000)					952,385			7.54
	Principal amount			Value			Percent of
Short-term securities  - 7.39%		(000	)		(000	)	net assets
Abbott Laboratories 0.20%-0.21% due 6/17-6/18/2009 (3)	$	40,450		$	40,437			.32
Bank of America Corp., FDIC insured, 0.30% due 6/24-6/25/2009		107,400			107,354			.85
Coca-Cola Co. 0.22% due 6/3/2009 (3)		55,200			55,184			.44
Fannie Mae 0.38%-0.60% due 5/18-7/6/2009		67,800			67,780			.53
Federal Home Loan Bank 0.23%-0.44% due 5/22-9/18/2009		154,000			153,917			1.22
Freddie Mac 0.25%-0.60% due 5/26-9/2/2009		247,800			247,695			1.96
General Electric Capital Corp., FDIC insured, 0.50% due 5/28/2009		21,700			21,695
General Electric Co. 0.16% due 5/1/2009		31,900			31,900			.42
Merck & Co. Inc. 0.20% due  5/1/2009		25,000			25,000			.20
Other securities					183,234			1.45
Total short-term securities (cost: $933,934,000)					934,196			7.39
Total investment securities (cost: $14,454,205,000)					12,635,706			100.02
Other assets less liabilities					(2,944	)		(0.02	)
Net assets				$	12,632,762			100.00	%

"Miscellaneous" securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio.

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

(1) Coupon rate may change periodically.

(2) Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in "Other securities," was $66,049,000, which represented .52% of the net assets of the fund.

(3) Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $341,841,000, which represented 2.71% of the net assets of the fund.

(4) Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

Key to abbreviation

ADR = American Depositary Receipts

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities			unaudited
at April 30, 2009	(dollars in thousands)
Assets:
Investment securities, at value (cost: $14,454,205)			$	12,635,706
Cash				84
Receivables for:
Sales of investments		59,840
Sales of fund's shares		15,306
Dividends and interest		40,637		115,783
				12,751,573
Liabilities:
Payables for:
Purchases of investments		94,525
Repurchases of fund's shares		13,545
Investment advisory services		2,846
Services provided by affiliates		6,055
Directors' deferred compensation		1,812
Other		28		118,811
Net assets at April 30, 2009			$	12,632,762
Net assets consist of:
Capital paid in on shares of capital stock			$	15,537,054
Undistributed net investment income				35,429
Accumulated net realized loss				(1,121,222	)
Net unrealized depreciation				(1,818,499	)
Net assets at April 30, 2009			$	12,632,762

(dollars and shares in thousands, except per-share amounts)
Total authorized capital stock - 1,000,000 shares, $.001 par value (680,934 total shares outstanding)
	Net assets		Shares outstanding		Net asset value per share*
Class A	$	10,415,773		560,937	$	18.57
Class B		395,829		21,476		18.43
Class C		521,047		28,329		18.39
Class F-1		332,681		17,965		18.52
Class F-2		29,723		1,601		18.57
Class 529-A		185,146		9,985		18.54
Class 529-B		29,819		1,614		18.48
Class 529-C		52,773		2,856		18.48
Class 529-E		10,216		552		18.49
Class 529-F-1		6,839		368		18.56
Class R-1		12,697		688		18.45
Class R-2		108,574		5,892		18.43
Class R-3		140,786		7,620		18.48
Class R-4		53,752		2,900		18.53
Class R-5		337,107		18,151		18.57
* Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Classes A and 529-A, for which the maximum offering prices per share were $19.70 and $19.67, respectively.
See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended April 30, 2009	(dollars in thousands)
Investment income:
Income:
Dividends (net of non-U.S. taxes of $2,053)	$	213,158
Interest		33,781		$	246,939
Fees and expenses*:
Investment advisory services		16,779
Distribution services		17,909
Transfer agent services		7,494
Administrative services		1,625
Reports to shareholders		691
Registration statement and prospectus		518
Directors' compensation		(329	)
Auditing and legal		27
Custodian		52
State and local taxes		122
Other		590
Total fees and expenses before waiver		45,478
Less investment advisory services waiver		590
Total fees and expenses after waiver					44,888
Net investment income					202,051
Net realized loss and unrealized
appreciation on investments
Net realized loss on investments		(1,116,858	)
Net unrealized appreciation on investments		74,901
Net realized loss and unrealized appreciation on investments					(1,041,957	)
Net decrease in net assets resulting from operations				$	(839,906	)
* Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
Statements of changes in net assets		(dollars in thousands)
	Six months			Year ended
	ended April 30, 2009*			October 31, 2008
Operations:
Net investment income	$	202,051		$	402,269
Net realized (loss) gain on investments		(1,116,858	)		165,743
Net unrealized appreciation (depreciation) on investments		74,901			(6,930,935	)
Net decrease in net assets resulting from operations		(839,906	)		(6,362,923	)
Dividends and distributions paid to shareholders:
Dividends from net investment income		(283,401	)		(427,515	)
Distributions from net realized gain on investments		(37,493	)		(872,259	)
Total dividends and distributions paid to shareholders		(320,894	)		(1,299,774	)
Net capital share transactions		11,945			223,819
Total decrease in net assets		(1,148,855	)		(7,438,878	)
Net assets:
Beginning of period		13,781,617			21,220,495
End of period (including undistributed net investment
income: $35,429 and $116,779, respectively)	$	12,632,762		$	13,781,617
*Unaudited.
See Notes to Financial Statements

Notes to financial statements      

                                                                                   & #160;                           unaudited

1. Organization and significant accounting policies

Organization – American Mutual Fund, Inc. (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund strives for the balanced accomplishment of three objectives – current income, growth of capital and conservation of principal – through investments in companies that participate in the growth of the American economy.

The fund has 15 share classes consisting of five retail share classes, five 529 college savings plan share classes and five retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 5.75%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B onvert to Class A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4 and R-5	None	None	None

*Effective April 21, 2009, Classes B and 529-B shares of the fund are not available for purchase.

On May 1, 2009, the fund made an additional retirement plan share class (Class R-6) available for sale pursuant to an amendment to its registration statement filed with the Securities and Exchange Commission (“SEC”). Refer to the fund’s retirement plan prospectus for more details.

Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds.Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.

Significant accounting policies – The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:

Security valuation – Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type.Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under procedures adopted by authority of the fund's board of directors. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions.

Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations – Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders –Dividends and distributions paid to shareholders are recorded on the ex-dividend date.

2. Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

The prices of, and the income generated by, securities held by the fund may decline in response to certain events, including those directly involving the companies whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and commodity price fluctuations.

The values of, and the income generated by, most debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the values of debt securities in the fund's portfolio generally will decline when interest rates rise and increase when interest rates fall.

3. Taxation and distributions                                                                                     

Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended April 30, 2009, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2004 and by state tax authorities for tax years before 2003.

Non-U.S. taxation – Dividend income is recorded net of non-U.S. taxes paid.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; deferred expenses and cost of investments sold.The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of October 31, 2008, the fund had tax basis undistributed ordinary income of $115,057,000 and undistributed long-term capital gains of $36,983,000.

As of April 30, 2009, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	$	882,746
Gross unrealized depreciation on investment securities		(2,706,751	)
Net unrealized depreciation on investment securities		(1,824,005	)
Cost of investment securities		14,459,711

The tax character of distributions paid to shareholders was as follows (dollars in thousands):

	Six months ended April 30, 2009						Year ended October 31, 2008
Share class	Ordinary  income		Long-term capital gains		Total distributions paid		Ordinary  income		Long-term capital gains		Total distributions paid
Class A	$	239,042	$	31,214	$	270,256	$	369,421	$	730,542	$	1,099,963
Class B		7,806		1,229		9,035		10,304		31,107		41,411
Class C		10,006		1,585		11,591		12,522		38,154		50,676
Class F-1		7,328		954		8,282		11,629		23,835		35,464
Class F-2*		384		31		415		29		-		29
Class 529-A		4,003		521		4,524		5,513		10,805		16,318
Class 529-B		548		87		635		620		1,926		2,546
Class 529-C		938		148		1,086		1,047		3,192		4,239
Class 529-E		205		28		233		266		597		863
Class 529-F-1		145		18		163		184		328		512
Class R1		224		34		258		233		600		833
Class R2		1,897		306		2,203		2,124		6,663		8,787
Class R3		2,887		402		3,289		4,009		9,338		13,347
Class R4		1,154		148		1,302		1,569		2,936		4,505
Class R5		6,834		788		7,622		8,045		12,236		20,281
Total	$	283,401	$	37,493	$	320,894	$	427,515	$	872,259	$	1,299,774
* Class F-2 was offered beginning August 1, 2008.

4. Fees and transactions with related parties

Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company® ("AFS"), the fund’s transfer agent, and American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares.

Investment advisory services - The Investment Advisory and Service Agreement with CRMC providesfor monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.384% on the first $1 billion of month-end net assets and decreasing to 0.225% on such assets in excess of $21 billion. CRMC waived a portion of its investment advisory services fee commencing on September 1, 2004, and terminating on December 31, 2008. During the six months ended April 30, 2009, total investment advisory services fees waived by CRMC were $590,000. As a result, the fee shown on the accompanying financial statements of $16,779,000, which was equivalent to an annualized rate of 0.269%, was reduced to $16,189,000, or 0.259% of average month-end net assets.

Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:

Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2 and R-5. Under the plans, the board of directors approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted below. In some cases, the board of [directors/trustees] has limited the amounts that may be paid to less than the maximum allowed by the plans.All share classes, except Classes F-2 and R-5, may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Classes A and 529-A, the board of directors has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25% is not exceeded. As of April 30, 2009, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.

Share class	Currently approved limits	Plan limits
Class A	0.25%	0.25%
Class 529-A	0.25	0.50
Classes B and 529-B	1.00	1.00
Classes C, 529-C and R-1	1.00	1.00
Class R-2	0.75	1.00
Classes 529-E and R-3	0.50	0.75
Classes F-1, 529-F-1 and R-4	0.25	0.50

Transfer agent services –The fund hasa transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.

Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Classes A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. Each 529 share class is subject to an additional administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan.The quarterly fee is based on a declining series of annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter.Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described above for the six months ended April 30, 2009, were as follows (dollars in thousands):

Share class	Distribution services	Transfer agent services	Administrative services
			CRMC administrative services	Transfer agent services	Commonwealth of Virginia administrative services
Class A	$11,556	$7,194	Not applicable	Not applicable	Not applicable
Class B	1,979	300	Not applicable	Not applicable	Not applicable
Class C	2,566	Included in administrative services	$375	$68	Not applicable
Class F-1	386		178	17	Not applicable
Class F-2	Not applicable		11	1	Not applicable
Class 529-A	181		99	16	$87
Class 529-B	142		16	6	14
Class 529-C	244		28	8	25
Class 529-E	24		5	1	5
Class 529-F-1	-		4	1	3
Class R-1	58		7	4	Not applicable
Class R-2	378		76	229	Not applicable
Class R-3	332		100	57	Not applicable
Class R-4	63		38	3	Not applicable
Class R-5	Not applicable		141	2	Not applicable
Total	$17,909	$7,494	$1,078	$413	$134

Directors’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, directors who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation of $(329,000), shown on the accompanying financial statements, includes $256,000 in current fees (either paid in cash or deferred) and a net decrease of $585,000 in the value of the deferred amounts.

Affiliated officers and directors – Officers and certain directors of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or directors received any compensation directly from the fund.

5. Disclosure of fair value measurements

The fund adopted the Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, on November 1, 2008. FAS 157 requires the fund to classify its assets and liabilities into three levels based on the method used to value the assets or liabilities.Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are generally high-quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.The following table presents the fund’s valuation levels as of April 30, 2009 (dollars in thousands):

Investment securities
Level 1 – Quoted prices	$	10,546,332
Level 2 – Other significant observable inputs		2,024,620
Level 3 – Significant unobservable inputs		64,754
Total	$	12,635,706

The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions during the six months ended April 30, 2009 (dollars in thousands):

Level 3 investment securities
Beginning value at 11/1/2008	$	-
Net purchases		86,250
Net unrealized depreciation*		(21,496	)
Ending value at 4/30/2009	$	64,754

Net unrealized depreciation during the period on Level 3 investment securities held at 4/30/2009* $ (21,496 )

 *Net unrealized depreciation is included in the related amounts on investments in the statement of operations.

6. Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

Share class	Sales*				Reinvestments of dividends and distributions				Repurchases*						Net (decrease)  increase
	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Six months ended April 30, 2009
Class A	$	1,226,491		67,020	$	252,543		14,183	$	(1,589,632	)		(89,581	)	$	(110,598	)		(8,378	)
Class B		29,351		1,633		8,745		493		(58,384	)		(3,323	)		(20,288	)		(1,197	)
Class C		76,892		4,250		11,058		625		(94,866	)		(5,421	)		(6,916	)		(546	)
Class F-1		88,070		4,848		7,208		406		(79,671	)		(4,495	)		15,607			759
Class F-2		26,911		1,473		343		19		(4,251	)		(247	)		23,003			1,245
Class 529-A		20,290		1,126		4,523		255		(13,980	)		(793	)		10,833			588
Class 529-B		2,059		116		635		36		(1,988	)		(112	)		706			40
Class 529-C		7,512		420		1,086		61		(5,410	)		(307	)		3,188			174
Class 529-E		1,218		67		233		13		(669	)		(38	)		782			42
Class 529-F-1		2,030		109		162		9		(759	)		(43	)		1,433			75
Class R-1		3,031		167		255		14		(2,088	)		(118	)		1,198			63
Class R-2		22,526		1,264		2,196		124		(17,483	)		(990	)		7,239			398
Class R-3		22,878		1,280		3,285		185		(22,334	)		(1,261	)		3,829			204
Class R-4		11,076		617		1,300		73		(8,716	)		(497	)		3,660			193
Class R-5		89,589		4,961		7,409		418		(18,729	)		(1,058	)		78,269			4,321
Total net increase
(decrease)	$	1,629,924		89,351	$	300,981		16,914	$	(1,918,960	)		(108,284	)	$	11,945			(2,019	)
Year ended October 31, 2008
Class A	$	1,592,424		62,923	$	1,036,100		37,601	$	(2,530,152	)		(100,436	)	$	98,372			88
Class B		46,912		1,843		39,997		1,451		(124,162	)		(4,942	)		(37,253	)		(1,648	)
Class C		109,819		4,342		48,556		1,764		(174,340	)		(6,962	)		(15,965	)		(856	)
Class F-1		141,671		5,596		31,676		1,151		(198,056	)		(7,886	)		(24,709	)		(1,139	)
Class F-2†		8,786		392		22		1		(805	)		(38	)		8,003			355
Class 529-A		40,303		1,560		16,308		593		(26,376	)		(1,035	)		30,235			1,118
Class 529-B		3,725		144		2,545		92		(3,862	)		(154	)		2,408			82
Class 529-C		12,352		478		4,237		153		(10,984	)		(430	)		5,605			201
Class 529-E		2,328		90		863		31		(1,766	)		(70	)		1,425			51
Class 529-F-1		2,081		80		512		19		(1,423	)		(56	)		1,170			43
Class R-1		7,468		292		822		30		(3,955	)		(155	)		4,335			167
Class R-2		43,021		1,674		8,774		319		(43,645	)		(1,695	)		8,150			298
Class R-3		49,191		1,917		13,326		485		(59,453	)		(2,324	)		3,064			78
Class R-4		29,233		1,118		4,503		164		(21,368	)		(826	)		12,368			456
Class R-5		161,112		6,137		19,437		710		(53,938	)		(2,064	)		126,611			4,783
Total net increase
(decrease)	$	2,250,426		88,586	$	1,227,678		44,564	$	(3,254,285	)		(129,073	)	$	223,819			4,077
* Includes exchanges between share classes of the fund.
† Class F-2 was offered beginning August 1, 2008

7. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $3,017,287,000 and $1,593,208,000, respectively, during the six months ended April 30, 2009.

Financial highlights(1)

				(Loss) income from investment operations(2)								Dividends and distributions
		Net asset value, beginning of period		Net investment income		Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return(3)(4)			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements /waivers			Ratio of expenses to average net assets after reimbursements /waivers(4)			Ratio of net income to average net assets(4)
Class A:	Six months ended 4/30/2009(5)	$	20.20	$	.30	$	(1.45	)	$	(1.15	)	$	(.42	)	$	(.06	)	$	(.48	)	$	18.57		(5.58	)%	$	10,416		.67	(6)		.66	(6)		.3.35	(6)
	Year ended 10/31/2008		31.29		.60		(9.76	)		(9.16	)		(.64	)		(1.29	)		(1.93	)		20.20		(30.85	)		11,499		.60			.57			2.28
	Year ended 10/31/2007		29.14		.64		2.83			3.47			(.61	)		(.71	)		(1.32	)		31.29		12.19			17,809		.58			.56			2.09
	Year ended 10/31/2006		26.52		.63		3.55			4.18			(.55	)		(1.01	)		(1.56	)		29.14		16.40			16,044		.58			.55			2.31
	Year ended 10/31/2005		25.10		.54		1.41			1.95			(.48	)		(.05	)		(.53	)		26.52		7.80			13,850		.58			.56			2.06
	Year ended 10/31/2004		23.17		.48		2.00			2.48			(.46	)		(.09	)		(.55	)		25.10		10.81			12,044		.60			.60			1.97
Class B:	Six months ended 4/30/2009(5)		20.05		.23		(1.44	)		(1.21	)		(.35	)		(.06	)		(.41	)		18.43		(5.95	)		396		1.45	(6)		1.44	(6)		.2.56	(6)
	Year ended 10/31/2008		31.06		.40		(9.69	)		(9.29	)		(.43	)		(1.29	)		(1.72	)		20.05		(31.37	)		455		1.37			1.34			1.52
	Year ended 10/31/2007		28.95		.40		2.80			3.20			(.38	)		(.71	)		(1.09	)		31.06		11.28			756		1.36			1.33			1.32
	Year ended 10/31/2006		26.36		.41		3.53			3.94			(.34	)		(1.01	)		(1.35	)		28.95		15.48			689		1.37			1.34			1.52
	Year ended 10/31/2005		24.94		.33		1.41			1.74			(.27	)		(.05	)		(.32	)		26.36		7.00			595		1.38			1.36			1.26
	Year ended 10/31/2004		23.04		.29		1.98			2.27			(.28	)		(.09	)		(.37	)		24.94		9.92			497		1.39			1.39			1.18
Class C:	Six months ended 4/30/2009(5)		20.01		.23		(1.44	)		(1.21	)		(.35	)		(.06	)		(.41	)		18.39		(5.98	)		521		1.47	(6)		1.46	(6)		2.55	(6)
	Year ended 10/31/2008		31.00		.38		(9.66	)		(9.28	)		(.42	)		(1.29	)		(1.71	)		20.01		(31.40	)		578		1.42			1.39			1.47
	Year ended 10/31/2007		28.89		.38		2.80			3.18			(.36	)		(.71	)		(1.07	)		31.00		11.26			922		1.41			1.38			1.27
	Year ended 10/31/2006		26.31		.39		3.52			3.91			(.32	)		(1.01	)		(1.33	)		28.89		15.41			796		1.42			1.40			1.46
	Year ended 10/31/2005		24.90		.31		1.41			1.72			(.26	)		(.05	)		(.31	)		26.31		6.91			666		1.44			1.42			1.19
	Year ended 10/31/2004		23.01		.27		1.97			2.24			(.26	)		(.09	)		(.35	)		24.90		9.82			500		1.47			1.46			1.09
Class F-1:	Six months ended 4/30/2009(5)		20.14		.30		(1.44	)		(1.14	)		(.42	)		(.06	)		(.48	)		18.52		(5.55	)		332		.66	(6)		.65	(6)		3.35	(6)
	Year ended 10/31/2008		31.21		.59		(9.74	)		(9.15	)		(.63	)		(1.29	)		(1.92	)		20.14		(30.89	)		347		.64			.61			2.25
	Year ended 10/31/2007		29.07		.62		2.83			3.45			(.60	)		(.71	)		(1.31	)		31.21		12.14			573		.63			.60			2.05
	Year ended 10/31/2006		26.46		.62		3.54			4.16			(.54	)		(1.01	)		(1.55	)		29.07		16.36			495		.62			.60			2.26
	Year ended 10/31/2005		25.04		.52		1.41			1.93			(.46	)		(.05	)		(.51	)		26.46		7.71			434		.67			.65			1.97
	Year ended 10/31/2004		23.12		.45		2.00			2.45			(.44	)		(.09	)		(.53	)		25.04		10.70			324		.70			.70			1.86
Class F-2:	Six months ended 4/30/2009(5)		20.20		.31		(1.43	)		(1.12	)		(.45	)		(.06	)		(.51	)		18.57		(5.45	)		30		.43	(6)		.42	(6)		3.48	(6)
	Period from 8/5/2008 to 10/31/2008		25.64		.12		(5.39	)		(5.27	)		(.17	)		-			(.17	)		20.20		(20.69	)		7		.09			.08			.54
Class 529-A:	Six months ended 4/30/2009(5)		20.17		.29		(1.44	)		(1.15	)		(.42	)		(.06	)		(.48	)		18.54		(5.62	)		185		.74	(6)		.73	(6)		3.27	(6)
	Year ended 10/31/2008		31.25		.57		(9.74	)		(9.17	)		(.62	)		(1.29	)		(1.91	)		20.17		(30.93	)		189		.69			.66			2.19
	Year ended 10/31/2007		29.11		.60		2.83			3.43			(.58	)		(.71	)		(1.29	)		31.25		12.07			259		.68			.65			1.99
	Year ended 10/31/2006		26.50		.60		3.55			4.15			(.53	)		(1.01	)		(1.54	)		29.11		16.29			206		.66			.64			2.21
	Year ended 10/31/2005		25.07		.51		1.42			1.93			(.45	)		(.05	)		(.50	)		26.50		7.71			151		.70			.68			1.93
	Year ended 10/31/2004		23.15		.45		2.00			2.45			(.44	)		(.09	)		(.53	)		25.07		10.70			99		.71			.71			1.85
Class 529-B:	Six months ended 4/30/2009(5)		20.10		.22		(1.43	)		(1.21	)		(.35	)		(.06	)		(.41	)		18.48		(5.98	)		30		1.55	(6)		1.54	(6)		2.46	(6)
	Year ended 10/31/2008		31.14		.36		(9.71	)		(9.35	)		(.40	)		(1.29	)		(1.69	)		20.10		(31.47	)		32		1.49			1.46			1.39
	Year ended 10/31/2007		29.01		.36		2.82			3.18			(.34	)		(.71	)		(1.05	)		31.14		11.19			46		1.48			1.46			1.19
	Year ended 10/31/2006		26.42		.37		3.53			3.90			(.30	)		(1.01	)		(1.31	)		29.01		15.29			40		1.50			1.47			1.38
	Year ended 10/31/2005		25.00		.29		1.41			1.70			(.23	)		(.05	)		(.28	)		26.42		6.79			32		1.55			1.53			1.09
	Year ended 10/31/2004		23.09		.24		1.99			2.23			(.23	)		(.09	)		(.32	)		25.00		9.72			24		1.59			1.59			.97
Class 529-C:	Six months ended 4/30/2009(5)		20.10		.22		(1.43	)		(1.21	)		(.35	)		(.06	)		(.41	)		18.48		(5.98	)		53		1.54	(6)		1.53	(6)		2.47	(6)
	Year ended 10/31/2008		31.13		.36		(9.70	)		(9.34	)		(.40	)		(1.29	)		(1.69	)		20.10		(31.45	)		54		1.48			1.46			1.40
	Year ended 10/31/2007		29.01		.36		2.81			3.17			(.34	)		(.71	)		(1.05	)		31.13		11.17			77		1.48			1.45			1.19
	Year ended 10/31/2006		26.42		.38		3.53			3.91			(.31	)		(1.01	)		(1.32	)		29.01		15.31			62		1.49			1.46			1.39
	Year ended 10/31/2005		25.00		.29		1.41			1.70			(.23	)		(.05	)		(.28	)		26.42		6.82			48		1.54			1.52			1.10
	Year ended 10/31/2004		23.09		.24		1.99			2.23			(.23	)		(.09	)		(.32	)		25.00		9.74			33		1.58			1.58			.98
Class 529-E:	Six months ended 4/30/2009(5)		20.12		.27		(1.45	)		(1.18	)		(.39	)		(.06	)		(.45	)		18.49		(5.77	)		10		1.04	(6)		1.03	(6)		2.97	(6)
	Year ended 10/31/2008		31.17		.50		(9.72	)		(9.22	)		(.54	)		(1.29	)		(1.83	)		20.12		(31.11	)		10		.97			.95			1.91
	Year ended 10/31/2007		29.04		.51		2.82			3.33			(.49	)		(.71	)		(1.20	)		31.17		11.74			14		.97			.95			1.70
	Year ended 10/31/2006		26.44		.52		3.54			4.06			(.45	)		(1.01	)		(1.46	)		29.04		15.92			11		.97			.95			1.90
	Year ended 10/31/2005		25.02		.42		1.41			1.83			(.36	)		(.05	)		(.41	)		26.44		7.35			8		1.02			1.00			1.61
	Year ended 10/31/2004		23.10		.37		1.99			2.36			(.35	)		(.09	)		(.44	)		25.02		10.32			6		1.06			1.06			1.50
Class 529-F-1:	Six months ended 4/30/2009(5)	$	20.19	$	.31	$	(1.44	)	$	(1.13	)	$	(.44	)	$	(.06	)	$	(.50	)	$	18.56		(5.51	)%	$	7		.54	%(6)		.53	%(6)		3.47	%(6)
	Year ended 10/31/2008		31.28		.63		(9.76	)		(9.13	)		(.67	)		(1.29	)		(1.96	)		20.19		(30.78	)		6		.47			.45			2.41
	Year ended 10/31/2007		29.13		.66		2.84			3.50			(.64	)		(.71	)		(1.35	)		31.28		12.32			8		.47			.45			2.19
	Year ended 10/31/2006		26.52		.65		3.55			4.20			(.58	)		(1.01	)		(1.59	)		29.13		16.49			5		.47			.44			2.37
	Year ended 10/31/2005		25.08		.52		1.42			1.94			(.45	)		(.05	)		(.50	)		26.52		7.77			3		.64			.62			1.99
	Year ended 10/31/2004		23.16		.43		2.00			2.43			(.42	)		(.09	)		(.51	)		25.08		10.58			2		.81			.80			1.75
Class R-1:	Six months ended 4/30/2009(5)		20.07		.23		(1.44	)		(1.21	)		(.35	)		(.06	)		(.41	)		18.45		(5.95	)		13		1.47	(6)		1.46	(6)		2.57	(6)
	Year ended 10/31/2008		31.10		.38		(9.70	)		(9.32	)		(.42	)		(1.29	)		(1.71	)		20.07		(31.41	)		13		1.41			1.38			1.47
	Year ended 10/31/2007		28.97		.37		2.80			3.17			(.33	)		(.71	)		(1.04	)		31.10		11.18			14		1.45			1.43			1.22
	Year ended 10/31/2006		26.38		.38		3.54			3.92			(.32	)		(1.01	)		(1.33	)		28.97		15.38			15		1.46			1.43			1.42
	Year ended 10/31/2005		24.97		.31		1.40			1.71			(.25	)		(.05	)		(.30	)		26.38		6.86			12		1.48			1.45			1.17
	Year ended 10/31/2004		23.06		.26		1.99			2.25			(.25	)		(.09	)		(.34	)		24.97		9.83			10		1.51			1.49			1.07
Class R-2:	Six months ended 4/30/2009(5)		20.05		.21		(1.43	)		(1.22	)		(.34	)		(.06	)		(.40	)		18.43		(6.03	)		108		1.64	(6)		1.63	(6)		2.36	(6)
	Year ended 10/31/2008		31.06		.36		(9.69	)		(9.33	)		(.39	)		(1.29	)		(1.68	)		20.05		(31.47	)		110		1.51			1.48			1.37
	Year ended 10/31/2007		28.94		.38		2.81			3.19			(.36	)		(.71	)		(1.07	)		31.06		11.24			161		1.49			1.41			1.24
	Year ended 10/31/2006		26.36		.39		3.52			3.91			(.32	)		(1.01	)		(1.33	)		28.94		15.36			133		1.61			1.41			1.43
	Year ended 10/31/2005		24.95		.31		1.41			1.72			(.26	)		(.05	)		(.31	)		26.36		6.90			99		1.65			1.42			1.19
	Year ended 10/31/2004		23.05		.27		1.99			2.26			(.27	)		(.09	)		(.36	)		24.95		9.86			64		1.76			1.45			1.10
Class R-3:	Six months ended 4/30/2009(5)		20.10		.27		(1.44	)		(1.17	)		(.39	)		(.06	)		(.45	)		18.48		(5.73	)		141		1.02	(6)		1.01	(6)		2.99	(6)
	Year ended 10/31/2008		31.14		.50		(9.71	)		(9.21	)		(.54	)		(1.29	)		(1.83	)		20.10		(31.10	)		149		.96			.94			1.92
	Year ended 10/31/2007		29.01		.52		2.81			3.33			(.49	)		(.71	)		(1.20	)		31.14		11.76			228		.97			.95			1.71
	Year ended 10/31/2006		26.41		.52		3.54			4.06			(.45	)		(1.01	)		(1.46	)		29.01		15.94			222		.96			.93			1.92
	Year ended 10/31/2005		25.00		.44		1.40			1.84			(.38	)		(.05	)		(.43	)		26.41		7.37			181		.98			.96			1.65
	Year ended 10/31/2004		23.09		.37		1.99			2.36			(.36	)		(.09	)		(.45	)		25.00		10.32			113		1.05			1.04			1.49
Class R-4:	Six months ended 4/30/2009(5)		20.16		.30		(1.45	)		(1.15	)		(.42	)		(.06	)		(.48	)		18.53		(5.61	)		54		.70	(6)		.70	(6)		3.30	(6)
	Year ended 10/31/2008		31.23		.58		(9.74	)		(9.16	)		(.62	)		(1.29	)		(1.91	)		20.16		(30.90	)		54		.66			.64			2.21
	Year ended 10/31/2007		29.09		.61		2.82			3.43			(.58	)		(.71	)		(1.29	)		31.23		12.08			70		.67			.65			2.00
	Year ended 10/31/2006		26.48		.60		3.54			4.14			(.52	)		(1.01	)		(1.53	)		29.09		16.26			55		.68			.66			2.20
	Year ended 10/31/2005		25.06		.51		1.41			1.92			(.45	)		(.05	)		(.50	)		26.48		7.69			43		.69			.67			1.94
	Year ended 10/31/2004		23.14		.46		1.99			2.45			(.44	)		(.09	)		(.53	)		25.06		10.69			34		.70			.70			1.86
Class R-5:	Six months ended 4/30/2009(5)		20.20		.32		(1.44	)		(1.12	)		(.45	)		(.06	)		(.51	)		18.57		(5.45	)		337		.40	(6)		.39	(6)		3.60	(6)
	Year ended 10/31/2008		31.29		.65		(9.75	)		(9.10	)		(.70	)		(1.29	)		(1.99	)		20.20		(30.69	)		279		.36			.34			2.52
	Year ended 10/31/2007		29.14		.71		2.82			3.53			(.67	)		(.71	)		(1.38	)		31.29		12.42			283		.37			.35			2.32
	Year ended 10/31/2006		26.53		.68		3.54			4.22			(.60	)		(1.01	)		(1.61	)		29.14		16.58			267		.38			.35			2.49
	Year ended 10/31/2005		25.10		.58		1.43			2.01			(.53	)		(.05	)		(.58	)		26.53		8.05			198		.39			.36			2.22
	Year ended 10/31/2004		23.17		.53		2.00			2.53			(.51	)		(.09	)		(.60	)		25.10		11.04			62		.39			.39			2.18

	Six months ended April 30,			Year ended October 31
	2009(5)			2008			2007			2006			2005			2004
Portfolio turnover rate for all classes of shares		15	%		23	%		19	%		19	%		22	%		17	%

(1)Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.

(2)Based on average shares outstanding.

(3)Total returns exclude any applicable sales charges, including contingent deferred sales charges.

(4)This column reflects the impact, if any, of certain reimbursements/waivers from CRMC.  During the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes.

(5)Unaudited.

(6)Annualized.

See Notes to Financial Statements

Other share class results

unaudited

Classes B, C, F and 529

Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

Average annual total returns for periods ended March 31, 2009
(the most recent calendar quarter-end):
	1 year			5 years			Life of class
Class B shares1 — first sold 3/15/00
Reflecting applicable contingent deferred sales
charge (CDSC), maximum of 5%, payable only
if shares are sold within six years of purchase		–34.84	%		–3.60	%		1.54	%
Not reflecting CDSC		–31.53			–3.28			1.54
Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		–32.21			–3.33			–0.39
Not reflecting CDSC		–31.55			–3.33			–0.39
Class F-1 shares2 — first sold 3/15/01
Not reflecting annual asset-based fee charged
by sponsoring firm		–30.99			–2.57			0.37
Class F-2 shares2 — first sold 8/5/08
Not reflecting annual asset-based fee charged
by sponsoring firm		—			—			–30.10	3
Class 529-A shares4 — first sold 2/19/02
Reflecting 5.75% maximum sales charge		–35.03			–3.76			–0.94
Not reflecting maximum sales charge		–31.06			–2.61			–0.12
Class 529-B shares1,4 — first sold 2/19/02
Reflecting applicable CDSC, maximum of 5%,
payable only if shares are sold within six years
of purchase		–34.92			–3.74			–0.97
Not reflecting CDSC		–31.60			–3.42			–0.97
Class 529-C shares4 — first sold 2/20/02
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		–32.26			–3.41			–1.09
Not reflecting CDSC		–31.60			–3.41			–1.09
Class 529-E shares2,4 — first sold 3/7/02		–31.26			–2.92			–1.38
Class 529-F-1 shares2,4 — first sold 9/17/02
Not reflecting annual asset-based fee charged
by sponsoring firm		–30.89			–2.48			1.69

1These shares are no longer available for purchase.

2These shares are sold without any initial or contingent deferred sales charge.

3Results are cumulative total returns; they are not annualized.

4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 22 to 26 for details.

For information regarding the differences among the various share classes, please refer to the fund’s prospectus.

Expense example

unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (November 1, 2008, through April 30, 2009).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 11/1/2008		Ending account value 4/30/2009		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	944.19	$	3.18		.66	%
Class A -- assumed 5% return		1,000.00		1,021.52		3.31		.66
Class B -- actual return		1,000.00		940.48		6.93		1.44
Class B -- assumed 5% return		1,000.00		1,017.65		7.20		1.44
Class C -- actual return		1,000.00		940.17		7.02		1.46
Class C -- assumed 5% return		1,000.00		1,017.55		7.30		1.46
Class F-1 -- actual return		1,000.00		944.54		3.13		.65
Class F-1 -- assumed 5% return		1,000.00		1,021.57		3.26		.65
Class F-2 -- actual return		1,000.00		945.47		2.03		.42
Class F-2 -- assumed 5% return		1,000.00		1,022.71		2.11		.42
Class 529-A -- actual return		1,000.00		943.82		3.52		.73
Class 529-A -- assumed 5% return		1,000.00		1,021.17		3.66		.73
Class 529-B -- actual return		1,000.00		940.21		7.41		1.54
Class 529-B -- assumed 5% return		1,000.00		1,017.16		7.70		1.54
Class 529-C -- actual return		1,000.00		940.24		7.36		1.53
Class 529-C -- assumed 5% return		1,000.00		1,017.21		7.65		1.53
Class 529-E -- actual return		1,000.00		942.27		4.96		1.03
Class 529-E -- assumed 5% return		1,000.00		1,019.69		5.16		1.03
Class 529-F-1 -- actual return		1,000.00		944.87		2.56		.53
Class 529-F-1 -- assumed 5% return		1,000.00		1,022.17		2.66		.53
Class R-1 -- actual return		1,000.00		940.47		7.02		1.46
Class R-1 -- assumed 5% return		1,000.00		1,017.55		7.30		1.46
Class R-2 -- actual return		1,000.00		939.67		7.84		1.63
Class R-2 -- assumed 5% return		1,000.00		1,016.71		8.15		1.63
Class R-3 -- actual return		1,000.00		942.68		4.86		1.01
Class R-3 -- assumed 5% return		1,000.00		1,019.79		5.06		1.01
Class R-4 -- actual return		1,000.00		943.88		3.37		.70
Class R-4 -- assumed 5% return		1,000.00		1,021.32		3.51		.70
Class R-5 -- actual return		1,000.00		945.51		1.88		.39
Class R-5 -- assumed 5% return		1,000.00		1,022.86		1.96		.39

*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period (181), and divided by 365 (to reflect the one-half year period).

Approval of Investment Advisory and Service Agreement

The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through March 31, 2010. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement, and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee considered, among other things, the impact of current market conditions on the fund and CRMC. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund under the agreement and other agreements as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of the fund in light of its three balanced objectives: current income, growth of capital and conservation of principal. They compared the fund’s total returns with those of other relevant funds (including the other funds that are the basis of the Lipper index for the category in which the fund is included) and market data such as relevant market indices, in each case as available at the time of the related meetings. In addition to the information reviewed by the board and the committee, this report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee concluded that although the fund’s net asset value per share had declined during the one-year period ended December 31, 2008, its long-term results have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses remain significantly below those of most other relevant funds. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the advisory fees paid by institutional clients of an affiliate of CRMC with investment mandates similar to those of the fund. They noted that, although the fees paid by those clients generally were lower than those paid by the fund, the differences appropriately reflected the significant investment, operational and regulatory differences between advising mutual funds and institutional clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

4. Ancillary benefits

The board and the committee considered a variety of other benefits received by CRMC and its affiliates as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC’s institutional management affiliates. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments and attract and retain qualified personnel. They noted information previously received regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. The board considered the breakpoint discounts in the fund’s advisory fee structure and the impact of the termination of CRMC’s 10% advisory fee waiver effective December 31, 2008. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

Offices of the fund and of the

investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

6455 Irvine Center Drive

Irvine, CA 92618

Transfer agent for shareholder accounts

American Funds Service Company

(Please write to the address near you.)

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

Counsel

O’Melveny & Myers LLP

400 South Hope Street

Los Angeles, CA 90071-2899

Independent registered public

accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

A complete April 30, 2009, portfolio of American Mutual Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

American Mutual Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available on the American Funds website or by calling AFS.

This report is for the information of shareholders of American Mutual Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after June 30, 2009, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

[logo - - American Funds®]

The right choice for the long term®

What makes American Funds different?

For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•A long-term, value-oriented approach

We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.

•An extensive global research effort

Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.

•The multiple portfolio counselor system

Our unique approach to portfolio management, developed 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

•Experienced investment professionals

American Funds portfolio counselors have an average of 25 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.

•A commitment to low management fees

The American Funds provide exceptional value for shareholders, with management fees that are among the lowest in the mutual fund industry.

American Funds span a range of investment objectives

•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®

•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

•Equity-income funds

Capital Income Builder®

The Income Fund of America®

•Balanced fund

American Balanced Fund®

•Bond funds

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

•Tax-exempt bond funds

American High-Income Municipal Bond Fund®

Limited Term Tax-Exempt Bond Fund of AmericaSM

The Tax-Exempt Bond Fund of America®

State-specific tax-exempt funds

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•Money market funds

American Funds Money Market FundSM

The Cash Management Trust of America®

The Tax-Exempt Money Fund of AmericaSM

The U.S. Treasury Money Fund of AmericaSM

•American Funds Target Date Retirement Series®

The Capital Group Companies

American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust

Lit. No. MFGESR-903-0609P

Litho in USA AGD/L/8079-S16782

Printed on paper containing 10% post-consumer waste

Printed with inks containing soy and/or vegetable oil

ITEM 2 – Code of Ethics

Not applicable for filing of semi-annual reports to shareholders.

ITEM 3 – Audit Committee Financial Expert

Not applicable for filing of semi-annual reports to shareholders.

ITEM 4 – Principal Accountant Fees and Services

Not applicable for filing of semi-annual reports to shareholders.

ITEM 5 – Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

ITEM 6 – Schedule of Investments

[logo – American Funds®]

American Mutual Fund®

Investment portfolio

April 30, 2009

unaudited

Common stocks — 83.45%	Shares			Value (000)
ENERGY — 8.24%
Apache Corp.		123,400		$	8,991
Baker Hughes Inc.		940,000			33,445
BJ Services Co.		4,814,837			66,878
Chevron Corp.		1,643,911			108,663
ConocoPhillips		3,194,500			130,975
Devon Energy Corp.		2,225,000			115,366
EOG Resources, Inc.		175,000			11,109
Halliburton Co.		1,200,000			24,264
Hess Corp.		1,765,000			96,704
Marathon Oil Corp.		5,353,600			159,002
Royal Dutch Shell PLC, Class A (ADR)		3,580,000			163,534
Schlumberger Ltd.		880,400			43,131
Smith International, Inc.		350,000			9,048
Spectra Energy Corp		3,930,500			56,992
Sunoco, Inc.		500,000			13,255
					1,041,357
MATERIALS — 2.94%
Air Products and Chemicals, Inc.		1,535,000			101,156
Dow Chemical Co.		750,000			12,000
International Paper Co.		1,250,000			15,825
MeadWestvaco Corp.		5,765,000			90,280
Monsanto Co.		100,000			8,489
Nucor Corp.		800,000			32,552
Potash Corp. of Saskatchewan Inc.		210,000			18,163
Praxair, Inc.		1,000,000			74,610
Weyerhaeuser Co.		500,000			17,630
					370,705
INDUSTRIALS — 14.52%
3M Co.		1,328,700			76,533
Avery Dennison Corp.		3,450,000			99,153
Boeing Co.		2,027,600			81,205
Burlington Northern Santa Fe Corp.		1,838,400			124,055
Cintas Corp.		1,385,000			35,539
CSX Corp.		2,742,500			81,151
Eaton Corp.		400,000			17,520
Emerson Electric Co.		1,300,000			44,252
General Dynamics Corp.		770,000			39,786
General Electric Co.		8,417,500			106,481
Illinois Tool Works Inc.		850,000			27,880
Ingersoll-Rand Co. Ltd., Class A		1,300,000			28,301
Lockheed Martin Corp.		1,110,000			87,168
Manpower Inc.		740,000			31,887
Northrop Grumman Corp.		1,300,000			62,855
Pentair, Inc.		1,800,000			47,952
Pitney Bowes Inc.		3,050,000			74,847
Precision Castparts Corp.		314,000			23,506
R.R. Donnelley & Sons Co.		6,033,457			70,290
Rockwell Automation		1,250,000			39,488
Southwest Airlines Co.		4,450,000			31,061
Tyco International Ltd.		1,245,300			29,588
Union Pacific Corp.		1,864,600			91,627
United Parcel Service, Inc., Class B		3,550,000			185,807
United Technologies Corp.		3,700,000			180,708
Waste Management, Inc.		4,345,000			115,881
					1,834,521
CONSUMER DISCRETIONARY — 8.70%
Brunswick Corp.		3,907,769			23,369
Carnival Corp., units		1,475,000			39,648
Darden Restaurants, Inc.		3,065,000			113,313
Harley-Davidson, Inc.		1,508,000			33,417
Home Depot, Inc.		750,000			19,740
Honda Motor Co., Ltd. (ADR)		300,000			8,718
Johnson Controls, Inc.		5,990,000			113,870
Leggett & Platt, Inc.		3,753,400			53,899
Lowe’s Companies, Inc.		3,940,400			84,719
Magna International Inc., Class A		2,182,900			74,131
Mattel, Inc.		4,500,000			67,320
News Corp., Class A		3,850,000			31,801
Omnicom Group Inc.		1,500,000			47,205
Staples, Inc.		1,600,000			32,992
Target Corp.		2,570,000			106,038
Time Warner Inc.		4,002,666			87,378
Toyota Motor Corp. (ADR)		190,000			15,040
VF Corp.		1,150,000			68,161
YUM! Brands, Inc.		2,340,000			78,039
					1,098,798
CONSUMER STAPLES — 7.73%
Avon Products, Inc.		4,135,000			94,113
Coca-Cola Co.		1,850,000			79,642
ConAgra Foods, Inc.		3,826,200			67,724
General Mills, Inc.		750,000			38,018
H.J. Heinz Co.		1,703,700			58,641
Kellogg Co.		1,685,600			70,981
Kimberly-Clark Corp.		2,810,000			138,083
Kraft Foods Inc., Class A		1,500,000			35,100
PepsiCo, Inc.		3,710,000			184,610
Procter & Gamble Co.		1,125,000			55,620
Sara Lee Corp.		6,193,800			51,532
Walgreen Co.		1,300,000			40,859
Wal-Mart Stores, Inc.		1,230,000			61,992
					976,915
HEALTH CARE — 10.62%
Abbott Laboratories		4,104,600			171,778
Amgen Inc.1		880,000			42,654
AstraZeneca PLC (ADR)		1,295,000			45,286
Bristol-Myers Squibb Co.		4,662,500			89,520
Cardinal Health, Inc.		2,145,000			72,479
Covidien Ltd.		784,500			25,873
Eli Lilly and Co.		2,760,000			90,859
Johnson & Johnson		600,000			31,416
Medtronic, Inc.		3,452,000			110,464
Merck & Co., Inc.		10,185,000			246,884
Novartis AG (ADR)		4,522,000			171,429
Pfizer Inc		9,895,000			132,197
Schering-Plough Corp.		4,800,000			110,496
					1,341,335
FINANCIALS — 2.35%
Allstate Corp.		1,200,000			27,996
Arthur J. Gallagher & Co.		1,037,331			23,319
Bank of New York Mellon Corp.		2,921,000			74,427
Capital One Financial Corp.		735,000			12,304
JPMorgan Chase & Co.		2,143,000			70,719
Lincoln National Corp.		413,300			4,645
Marsh & McLennan Companies, Inc.		500,000			10,545
Travelers Companies, Inc.		1,000,000			41,140
U.S. Bancorp		1,750,000			31,885
					296,980
INFORMATION TECHNOLOGY — 12.76%
Automatic Data Processing, Inc.		2,037,000			71,703
Cisco Systems, Inc.1		1,950,000			37,674
Google Inc., Class A1		57,000			22,570
Hewlett-Packard Co.		4,100,000			147,518
Intel Corp.		9,770,000			154,171
International Business Machines Corp.		2,953,000			304,779
KLA-Tencor Corp.		1,242,000			34,453
Linear Technology Corp.		3,195,000			69,587
Maxim Integrated Products, Inc.		4,660,000			63,143
Microchip Technology Inc.		5,094,925			117,183
Microsoft Corp.		15,500,998			314,050
Nokia Corp. (ADR)		500,000			7,070
Oracle Corp.		6,115,000			118,264
SAP AG (ADR)		1,031,000			39,271
Texas Instruments Inc.		4,100,000			74,046
Tyco Electronics Ltd.		900,000			15,696
Xilinx, Inc.		1,020,000			20,849
					1,612,027
TELECOMMUNICATION SERVICES — 6.68%
AT&T Inc.		15,795,597			404,683
CenturyTel, Inc.		490,000			13,304
Embarq Corp.		6,104,250			223,171
Verizon Communications Inc.		6,684,700			202,814
					843,972
UTILITIES — 7.97%
Ameren Corp.		4,108,680			94,582
American Electric Power Co., Inc.		1,435,000			37,855
Dominion Resources, Inc.		2,800,000			84,448
DTE Energy Co.		750,000			22,178
Duke Energy Corp.		3,800,000			52,478
Exelon Corp.		3,488,720			160,935
FirstEnergy Corp.		2,277,900			93,166
PPL Corp.		3,252,000			97,267
Progress Energy, Inc.		2,171,900			74,105
Public Service Enterprise Group Inc.		2,575,000			76,838
Questar Corp.		3,000,000			89,160
Southern Co.		1,250,000			36,100
Xcel Energy Inc.		4,745,000			87,498
					1,006,610
MISCELLANEOUS — 0.94%
Other common stocks in initial period of acquisition					118,190
Total common stocks (cost: $12,276,811,000)					10,541,410
Preferred stocks — 0.94%
FINANCIALS — 0.94%
BAC Capital Trust XIV 5.63%2		5,825,000			2,272
Bank of America Corp., Series K, 8.00% noncumulative2		39,090,000			22,237
Bank of America Corp., Series M, 8.125% noncumulative2		101,465,000			57,751
JPMorgan Chase & Co., Series I, 7.90%2		48,400,000			36,909
Total preferred stocks (cost: $171,681,000)					119,169
Convertible securities — 0.70%
FINANCIALS — 0.68%
American International Group, Inc. 8.50% convertible preferred 2011, units		553,450			2,828
Citigroup Inc., Series D-1, 7.00% noncumulative convertible preferred3		1,725,000			64,754
SLM Corp., Series C, 7.25% convertible preferred 2010		61,000			18,870
					86,452
MISCELLANEOUS — 0.02%
Other convertible securities in initial period of acquisition					2,094
Total convertible securities (cost: $156,849,000)					88,546
	Principal amount			Value
Bonds & notes — 7.54%		(000	)		(000	)
ENERGY — 0.16%
Apache Corp. 6.00% 2013	$	5,000			5,404
Chevron Corp. 3.95% 2014		5,000			5,129
Enbridge Energy Partners, LP 5.35% 2014		5,075			4,646
Shell International Finance B.V. 4.00% 2014		5,000			5,162
					20,341
INDUSTRIALS — 0.23%
Honeywell International Inc. 3.875% 2014		3,400			3,424
Lockheed Martin Corp. 4.121% 2013		1,450			1,473
Norfolk Southern Corp. 8.625% 2010		5,000			5,224
Northrop Grumman Corp. 7.75% 2016		4,420			5,021
PACCAR Inc, Series A, 6.375% 2012		5,000			5,163
PACCAR Inc, Series A, 6.875% 2014		5,000			5,239
Union Pacific Corp. 5.125% 2014		3,830			3,862
					29,406
CONSUMER DISCRETIONARY — 1.73%
AOL Time Warner Inc. 6.75% 2011		24,505			25,589
AOL Time Warner Inc. 6.875% 2012		8,436			8,878
Time Warner Inc. 5.50% 2011		13,875			14,253
Black & Decker Corp. 8.95% 2014		18,000			18,972
Comcast Cable Communications, Inc. 6.75% 2011		4,335			4,566
Comcast Corp. 1.439% 20092		7,200			7,195
Comcast Corp. 5.50% 2011		665			688
Home Depot, Inc. 1.445% 20092		20,593			20,394
Johnson Controls, Inc. 5.50% 2016		1,720			1,499
News America Inc. 6.90% 20194		5,000			4,713
Staples, Inc. 7.75% 2011		9,380			9,827
Staples, Inc. 9.75% 2014		93,250			102,427
					219,001
CONSUMER STAPLES — 0.38%
Avon Products, Inc. 5.625% 2014		5,000			5,140
Coca-Cola Enterprises Inc. 3.75% 2012		5,000			5,151
ConAgra Foods, Inc. 5.875% 2014		5,000			5,197
CVS Caremark Corp. 2.793% 20102		21,055			20,903
CVS Caremark Corp. 6.60% 2019		2,665			2,824
Safeway Inc. 6.25% 2014		5,000			5,319
SYSCO Corp. 5.375% 2019		4,000			4,102
					48,636
HEALTH CARE — 1.10%
Abbott Laboratories 5.125% 2019		5,000			5,128
Aetna Inc. 7.875% 2011		435			460
Amgen Inc. 6.90% 2038		20,000			21,519
Cardinal Health, Inc. 1.462% 20092		8,837			8,704
Cardinal Health, Inc. 6.75% 2011		9,988			10,248
Cardinal Health, Inc. 5.65% 2012		2,800			2,774
Eli Lilly and Co. 3.55% 2012		4,250			4,367
Novartis Capital Corp. 4.125% 2014		5,000			5,188
Pfizer Inc 4.45% 2012		5,000			5,257
Roche Holdings Inc. 6.00% 20194		65,000			68,309
UnitedHealth Group Inc. 4.125% 2009		7,196			7,209
UnitedHealth Group Inc. 1.407% 20102		50			49
					139,212
FINANCIALS — 2.34%
Allstate Life Global Funding Trust, Series 2008-4, 5.375% 2013		5,000			4,930
American Express Bank 0.443% 20092		2,861			2,849
American Express Bank 0.48% 20092		400			397
American Express Bank 5.55% 2012		28,250			26,998
American Express Centurion Bank 0.503% 20092		60			59
American Express Centurion Bank 4.375% 2009		3,000			3,001
American Express Centurion Bank 5.55% 2012		18,870			18,034
American Express Co. 6.15% 2017		130			116
American Express Co. 7.00% 2018		2,870			2,726
Bank of America Corp. 4.25% 2010		5,620			5,461
Bank of America Corp. 4.375% 2010		26,740			25,988
Bank of America Corp. 4.50% 2010		9,440			9,313
Capital One Financial Corp. 1.573% 20092		40,354			39,319
Capital One Financial Corp. 5.70% 2011		4,410			4,216
Capital One Financial Corp. 6.25% 2013		1,870			1,668
Capital One Financial Corp. 5.50% 20153		1,554			1,295
Capital One Financial Corp. 6.15% 2016		704			426
Capital One Financial Corp. 6.80% 2017		1,180			998
Citigroup Funding Inc., Series D, 1.351% 20092		10,000			9,763
Citigroup Funding Inc., Series D, 2.291% 20102		34,400			32,426
Citigroup Inc. 1.262% 20092		9,680			9,343
Citigroup Inc. 1.396% 20102		18,280			17,174
Citigroup Inc. 4.125% 2010		11,915			11,725
Citigroup Inc. 4.625% 2010		2,890			2,810
ERP Operating LP 5.50% 2012		1,950			1,806
ERP Operating LP 6.584% 2015		3,500			2,995
ERP Operating LP 5.125% 2016		2,400			1,981
ERP Operating LP 5.375% 2016		13,404			11,112
ERP Operating LP 5.75% 2017		39,855			32,643
ERP Operating LP 7.125% 2017		5,000			4,300
JPMorgan Chase & Co. 4.75% 2013		5,000			4,972
Metropolitan Life Global Funding I, 5.125% 20134		1,665			1,593
PNC Funding Corp. 1.239% 20142		5,000			3,530
					295,967
INFORMATION TECHNOLOGY — 0.09%
KLA-Tencor Corp. 6.90% 2018		13,700			10,771
TELECOMMUNICATION SERVICES — 0.23%
AT&T Inc. 4.85% 2014		5,000			5,190
Verizon Communications Inc. 5.55% 20144		5,000			5,251
Verizon Communications Inc. 8.50% 20184		15,000			17,994
					28,435
UTILITIES — 0.21%
FPL Group Capital, Inc. 7.875% 2015		20,000			22,781
Progress Energy, Inc. 6.05% 2014		3,500			3,654
					26,435
MORTGAGE-BACKED OBLIGATIONS5 — 0.75%
Fannie Mae 5.50% 2021		4,233			4,421
Fannie Mae 4.50% 2023		6,124			6,304
Fannie Mae 4.50% 2023		18,269			18,806
Fannie Mae 5.50% 2023		18,391			19,181
Fannie Mae 4.00% 2024		20,000			20,269
Fannie Mae 4.00% 2024		24,742			25,113
					94,094
BONDS & NOTES OF U.S. GOVERNMENT & GOVERNMENT AGENCIES — 0.32%
Freddie Mac 1.50% 2011		10,000			10,061
Freddie Mac 2.50% 2014		10,000			10,008
U.S. Treasury 0.875% 2011		20,000			20,018
					40,087
Total bonds & notes (cost: $914,930,000)					952,385
Short-term securities — 7.39%
Abbott Laboratories 0.20%–0.21% due 6/17–6/18/20094		40,450			40,437
Bank of America Corp., FDIC insured, 0.30% due 6/24–6/25/2009		107,400			107,354
Coca-Cola Co. 0.22% due 6/3/20094		55,200			55,184
Fannie Mae 0.38%–0.60% due 5/18–7/6/2009		67,800			67,780
Federal Home Loan Bank 0.23%–0.44% due 5/22–9/18/2009		154,000			153,917
Freddie Mac 0.25%–0.60% due 5/26–9/2/2009		247,800			247,695
General Electric Capital Corp., FDIC insured, 0.50% due 5/28/2009		21,700			21,695
General Electric Co. 0.16% due 5/1/2009		31,900			31,900
Johnson & Johnson 0.25% due 7/20–7/21/20094		43,500			43,475
Merck & Co. Inc. 0.20% due 5/1/2009		25,000			25,000
Private Export Funding Corp. 0.35% due 7/23/20094		25,000			24,969
Procter & Gamble International Funding S.C.A. 0.35% due 5/4/20094		25,000			24,999
U.S. Treasury Bills 0.25% due 9/17/2009		24,900			24,886
Wal-Mart Stores Inc. 0.55% due 9/21/20094		55,000			54,916
Yale University 0.50% due 7/1/2009		10,000			9,989
Total short-term securities (cost: $933,934,000)					934,196
Total investment securities (cost: $14,454,205,000)					12,635,706
Other assets less liabilities					(2,944	)
Net assets				$	12,632,762

“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

1Security did not produce income during the last 12 months.

2Coupon rate may change periodically.

3Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities was $66,049,000, which represented .52% of the net assets of the fund.

4Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $341,841,000, which represented 2.71% of the net assets of the fund.

5Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

Key to abbreviation

ADR = American Depositary Receipts

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

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

MFGEFP-903-0609O-S15808

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors since the Registrant last submitted a proxy statement to its shareholders.  The procedures are as follows.  The Registrant has a nominating committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of directors. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating committee.

ITEM 11 – Controls and Procedures

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
(b)	There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12 – Exhibits

(a)(1)	Not applicable for filing of semi-annual reports to shareholders.
(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AMERICAN MUTUAL FUND, INC.

By /s/ James K. Dunton

James K. Dunton, Vice Chairman and

Principal Executive Officer

Date: July 8, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By /s/ James K. Dunton

James K. Dunton, Vice Chairman and

Principal Executive Officer

Date: July 8, 2009

By /s/ Karl C. Grauman

Karl C. Grauman, Treasurer and

Principal Financial Officer

Date: July 8, 2009