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, 2010

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

     

American Mutual Fund

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Semi-annual report for the six months ended April 30, 2010

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 30 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, 2010 (the most recent calendar quarter-end):
Class A shares	1 year			5 years			10 years
Reflecting 5.75% maximum sales charge		33.20	%		1.64	%		4.35	%

The total annual fund operating expense ratio was 0.67% for Class A shares as of the most recent fiscal year-end.

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. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 24 to 29 for details.

The fund’s 30-day yield for Class A shares as of May 31, 2010, calculated in accordance with the Securities and Exchange Commission formula, was 2.52%. The fund’s distribution rate for Class A shares as of that date was 2.80%. 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 36.

Equity investments are subject to market fluctuations. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

Fellow shareholders:

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The U.S. economic recovery continued to gain momentum in the six months ended April 30, 2010. Companies reported stronger earnings than predicted because of serious cost cutting implemented during the recession. Manufacturing activity increased based on the restocking of depleted inventories and on improving orders for industrial and information technology firms. Credit markets thawed, and companies were able to refinance their debt. Inflation and interest rates remained low, providing tailwinds for the economy and the markets. Attractive stock valuations continued to draw investor attention.

American Mutual Fund (AMF) participated in the resurging stock market by posting a total return of 14.0% for the past six months ended April 30, 2010. Even though AMF’s gain was solid, it trailed the 15.7% total return of the unmanaged Standard & Poor’s 500 Composite Index, a broad measure of the U.S. stock market.

Over longer periods, however, AMF has continued to outpace the S&P 500. For the five years, AMF had an average annual total return of 3.6%, compared with 2.6% by the S&P 500. Over the 10 years, the fund has provided an average annual total return of 5.1%, compared with –0.2% by the S&P 500. Over the fund’s more than 60-year lifetime, it has had an average annual total return of 11.7%, compared with 11.1% for the S&P 500. We urge shareholders to measure the fund’s progress by focusing on its long-term results, which is how we look at the fund’s results ourselves.

The fund strives to reduce risk by investing primarily in companies that pay dividends. We are pleased that after suffering a rough patch during the market decline, dividends have recently experienced a comeback. For the first four months of 2010, 104 companies in the S&P 500 have either increased or initiated dividends, compared with only two decreases or suspensions. The fund’s fourth-largest holding, IBM, declared an 18% increase in its dividend on April 27.

Portfolio review

As of April 30, AMF had 89.1% of its portfolio in equities, 5.2% in bonds and notes and 5.7% in cash, short-term securities and other net assets. The fund’s five largest industry sectors were industrials (+15.7%), information technology (+14.2%), energy (+9.6%), health care (+8.8%) and consumer discretionary stocks (+8.6%).

Industrial companies made a large contribution to results. They included Boeing (+51.5%); United Technologies (+22.0%); and three railroad companies: CSX (+32.9%); Union Pacific (+37.2%); and Burlington Northern Santa Fe, which was acquired by Warren Buffett’s Berkshire Hathaway. Utilities and telecommunications stocks and the fund’s 5.7% holding in cash and short-term securities detracted from results.

American Mutual Fund strives for the balanced accomplishment of three objectives — current income, growth of capital and conservation of principal. This conservative approach has served shareholders well over the long term, providing above-average returns with less volatility than the S&P 500, the Lipper Multi-Cap Value Funds Index and the Lipper Growth and Income Funds Index, the fund’s three benchmarks. However, the fund’s returns can lag those of the smaller stocks during market surges such as those of the past six months.

In rapidly recovering stock markets, small and/or more distressed companies, which fell the most during the decline, typically rise faster than the larger blue chip companies that pay dividends. It has often been the case, however, that after a year to 18 months, investors turn to the larger income-oriented companies in the next phase of the market recovery. Should this happen, AMF could benefit.

The road ahead

While we expect the U.S. economy to continue to grow, there may be difficulties ahead. Companies haven’t returned to an enthusiastic hiring stance. Unemployment remains high. Commercial real estate hasn’t yet recovered. State and federal governments are grappling with fiscal crises by laying off employees and cutting wages and benefits. The debt crisis in Greece could spread to other European nations, and that could adversely affect U.S. exports to Europe. Despite all these possible headwinds, the U.S. economy should continue to expand for the next several years, accompanied by rising corporate profits and dividends. Hopefully, the stock market will also respond favorably to this improving environment.

We welcome our new shareholders and thank our long-term investors for their confidence in American Mutual Fund.

Cordially,

/s/ James K. Dunton

James K. Dunton

Vice Chairman

/s/ Joyce E. Gordon

Joyce E. Gordon

President

June 7, 2010

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

Summary investment portfolio, April 30, 2010

unaudited

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

[begin pie chart]

Industry sector diversification	Percent of net assets
Industrials		15.71	%
Information technology		14.21
Energy		9.59
Health care		8.77
Consumer discretionary		8.62
Other industries		29.94
Convertible securities & preferred stocks		2.27
Bonds & notes		5.21
Short-term securities & other assets less liabilities		5.68

[end pie chart]

						Percent
			Value			of net
Common stocks - 86.84%	Shares			(000	)	assets
Energy - 9.59%
Baker Hughes Inc.		2,997,619	$	149,161			.90	%
Chevron Corp.		2,238,911		182,337			1.10
ConocoPhillips		4,777,900		282,804			1.71
Devon Energy Corp.		1,925,000		129,610			.79
Marathon Oil Corp.		5,353,600		172,118			1.04
Royal Dutch Shell PLC, Class A (ADR)		5,076,000		318,519			1.93
Other securities				350,252			2.12
				1,584,801			9.59
Materials - 3.35%
Air Products and Chemicals, Inc.		2,467,300		189,439			1.15
MeadWestvaco Corp.		5,409,864		146,986			.89
Other securities				217,066			1.31
				553,491			3.35
Industrials - 15.71%
3M Co.		2,013,700		178,555			1.08
Boeing Co.		2,585,000		187,232			1.13
CSX Corp.		3,904,500		218,847			1.32
General Electric Co.		8,417,500		158,754			.96
Lockheed Martin Corp.		1,905,000		161,715			.98
R.R. Donnelley & Sons Co.		6,212,657		133,510			.81
Union Pacific Corp.		2,873,400		217,401			1.32
United Parcel Service, Inc., Class B		2,450,000		169,393			1.03
United Technologies Corp.		4,130,000		309,544			1.87
Waste Management, Inc.		4,345,000		150,685			.91
Other securities				710,919			4.30
				2,596,555			15.71
Consumer discretionary - 8.62%
Darden Restaurants, Inc.		3,800,000		170,050			1.03
Home Depot, Inc.		6,090,000		214,673			1.30
Staples, Inc.		2,550,000		60,002			.37
Time Warner Inc.		4,002,666		132,408			.80
Other securities				846,529			5.12
				1,423,662			8.62
Consumer staples - 6.40%
Kimberly-Clark Corp.		2,140,000		131,096			.79
Kraft Foods Inc., Class A		9,235,000		273,356			1.65
PepsiCo, Inc.		2,585,000		168,594			1.02
Other securities				484,585			2.94
				1,057,631			6.40
Health care - 8.77%
Abbott Laboratories		4,179,600		213,828			1.30
Bristol-Myers Squibb Co.		4,662,500		117,915			.71
Eli Lilly and Co.		3,355,000		117,324			.71
Merck & Co., Inc.		14,403,160		504,687			3.05
Pfizer Inc		9,895,000		165,444			1.00
Other securities				330,341			2.00
				1,449,539			8.77
Financials - 3.37%
Bank of New York Mellon Corp.		3,456,000		107,585			.65
JPMorgan Chase & Co.		3,913,000		166,616			1.01
Other securities				282,333			1.71
				556,534			3.37
Information technology - 14.21%
Hewlett-Packard Co.		4,320,000		224,510			1.36
Intel Corp.		9,423,000		215,127			1.30
International Business Machines Corp.		2,810,000		362,490			2.19
Linear Technology Corp.		3,845,000		115,581			.70
Microsoft Corp.		16,849,198		514,574			3.11
Oracle Corp.		6,815,000		176,100			1.07
Other securities				740,154			4.48
				2,348,536			14.21
Telecommunication services - 5.75%
AT&T Inc.		22,452,297		585,107			3.54
CenturyTel, Inc.		8,347,822		284,744			1.72
Other securities				80,892			.49
				950,743			5.75
Utilities - 7.24%
Dominion Resources, Inc.		2,900,000		121,220			.73
Exelon Corp.		3,893,720		169,727			1.03
Questar Corp.		3,000,000		143,850			.87
Other securities				762,336			4.61
				1,197,133			7.24
Miscellaneous - 3.83%
Other common stocks in initial period of acquisition				632,708			3.83
Total common stocks (cost: $12,278,273,000)				14,351,333			86.84
						Percent
			Value			of net
Preferred stocks - 2.00%	Shares			(000	)	assets
Financials - 2.00%
JPMorgan Chase & Co., Series I, 7.90% (1)		107,631,000		113,416			.69
Wachovia Capital Trust III 5.80% (1)		27,846,000		24,365
Wells Fargo & Co., Series K, 7.98% (1)		135,051,000		143,154			1.01
Other securities				49,163			.30
Total preferred stocks (cost: $285,735,000)				330,098			2.00
						Percent
			Value			of net
Convertible securities - 0.27%	Shares			(000	)	assets
Other - 0.27%
Other securities				44,225			.27
Total convertible securities (cost: $29,090,000)				44,225			.27
		Principal				Percent
	amount		Value			of net
Bonds & notes - 5.21%	(000)			(000	)	assets
Energy - 0.12%
Shell International Finance BV 4.00% 2014	$	5,000		5,303			.03
Other securities				15,261			.09
				20,564			.12
Industrials - 0.23%
Union Pacific Corp. 5.125% 2014		3,830		4,147			.03
Other securities				34,111			.20
				38,258			.23
Consumer discretionary - 1.19%
Staples, Inc.:
9.75% 2014		101,450		124,366
7.75% 2011		9,380		9,909			.81
Other securities				62,643			.38
				196,918			1.19
Consumer staples - 0.27%
Kraft Foods Inc. 2.625% 2013		2,555		2,614			.02
Other securities				41,906			.25
				44,520			.27
Health care - 0.10%
Pfizer Inc. 4.45% 2012		5,000		5,297			.03
Other securities				10,700			.07
				15,997			.10
Financials - 1.31%
JPMorgan Chase & Co. 4.75% 2013		5,000		5,343			.03
Other securities				210,701			1.28
				216,044			1.31
Telecommunication services - 0.21%
AT&T Inc. 4.85% 2014		5,000		5,427			.03
Other securities				29,894			.18
				35,321			.21
Mortgage-backed obligations (2) - 0.93%
Fannie Mae 4.00%-5.00% 2023-2039		144,472		148,977			.90
Other securities				4,047			.03
				153,024			.93
Bonds & notes of U.S. government & government agencies - 0.59%
Fannie Mae 2.50% 2014		25,775		26,062			.16
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.625% 2012		10,000		10,286			.06
Other securities				61,748			.37
				98,096			.59
Other - 0.26%
Other securities				42,685			.26
Total bonds & notes (cost: $777,779,000)				861,427			5.21
		Principal				Percent
	amount		Value			of net
Short-term securities - 5.55%	(000)			(000	)	assets
Abbott Laboratories 0.18% due 5/10/2010 (3)		38,300		38,298			.23
Fannie Mae 0.15%-0.25% due 5/10-9/20/2010		114,700		114,655			.70
Federal Home Loan Bank 0.13%-0.19% due 5/3-7/28/2010		240,200		240,135			1.45
Freddie Mac 0.183%-0.33% due 5/4-9/15/2010		123,820		123,773			.75
General Electric Capital Corp. 0.22%-0.25% due 6/16-7/1/2010		93,300		93,268			.57
Hewlett-Packard Co. 0.20% due 5/10/2010 (3)		50,000		49,997			.30
JPMorgan Chase & Co. 0.21% due 5/13/2010		40,000		39,997			.24
U.S. Treasury Bills 0.14%-0.338% due 5/6-8/26/2010		111,100		111,061			.67
Other securities				106,172			.64
Total short-term securities (cost: 917,305,000)				917,356			5.55
Total investment securities (cost: $14,288,182,000)				16,504,439			99.87
Other assets less liabilities				22,178			.13
Net assets			$	16,526,617			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) Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

(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 $225,205,000, which represented 1.36% of the net assets of the fund.

Key to abbreviation

ADR = American Depositary Receipts

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities			unaudited
at April 30, 2010	(dollars in thousands)
Assets:
Investment securities, at value (cost: $14,288,182)			$	16,504,439
Cash				13,040
Receivables for:
Sales of investments	$	31,110
Sales of fund's shares		37,449
Dividends and interest		39,366		107,925
				16,625,404
Liabilities:
Payables for:
Purchases of investments		50,881
Repurchases of fund's shares		35,087
Investment advisory services		3,548
Services provided by affiliates		7,572
Directors' deferred compensation		1,655
Other		44		98,787
Net assets at April 30, 2010			$	16,526,617
Net assets consist of:
Capital paid in on shares of capital stock			$	15,597,776
Distributions in excess of net investment income				(13,929	)
Accumulated net realized loss				(1,273,487	)
Net unrealized appreciation				2,216,257
Net assets at April 30, 2010			$	16,526,617

	(dollars and shares in thousands, except per-share amounts)
Total authorized capital stock - 1,000,000 shares, $.001 par value (683,377 total shares outstanding)
	Net assets		Shares  outstanding		Net asset value  per share*
Class A	$	13,115,881		541,826	$	24.21
Class B		420,480		17,507		24.02
Class C		687,390		28,686		23.96
Class F-1		498,819		20,667		24.14
Class F-2		173,334		7,161		24.21
Class 529-A		278,492		11,522		24.17
Class 529-B		36,465		1,514		24.08
Class 529-C		78,538		3,262		24.07
Class 529-E		14,940		620		24.10
Class 529-F-1		11,716		484		24.20
Class R-1		25,449		1,059		24.04
Class R-2		150,001		6,247		24.01
Class R-3		235,741		9,791		24.08
Class R-4		148,836		6,162		24.15
Class R-5		139,893		5,779		24.21
Class R-6		510,642		21,090		24.21
*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 $25.69 and $25.64, respectively.
See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended April 30, 2010				(dollars in thousands)
Investment income:
Income:
Dividends (net of non-U.S. taxes of $1,416)	$	220,607
Interest		39,105		$	259,712
Fees and expenses*:
Investment advisory services		20,584
Distribution services		22,394
Transfer agent services		7,282
Administrative services		2,163
Reports to shareholders		584
Registration statement and prospectus		942
Directors' compensation		353
Auditing and legal		52
Custodian		52
State and local taxes		130
Other		461			54,997
Net investment income					204,715
Net realized gain and unrealized
appreciation on investments and currency:
Net realized gain on:
Investments		42,322
Currency transactions		47			42,369
Net unrealized appreciation on investments					1,786,393
Net realized gain and
unrealized appreciation
on investments and currency					1,828,762
Net increase in net assets resulting
from operations				$	2,033,477
*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 ended April 30, 2010*			Year ended October 31, 2009
Operations:
Net investment income	$	204,715		$	393,742
Net realized gain (loss) on investments and currency transactions		42,369			(1,311,942	)
Net unrealized appreciation on investments		1,786,393			2,323,264
Net increase in net assets resulting from operations		2,033,477			1,405,064
Dividends and distributions paid to shareholders:
Dividends from net investment income		(245,467	)		(483,060	)
Distributions from net realized gain on investments		-			(37,493	)
Total dividends and distributions paid to shareholders		(245,467	)		(520,553	)
Net capital share transactions		88,730			(16,251	)
Total increase in net assets		1,876,740			868,260
Net assets:
Beginning of period		14,649,877			13,781,617
End of period (including distributions in excess of and undistributed
net investment income: $(13,929) and $26,823, respectively)	$	16,526,617		$	14,649,877
*Unaudited.
See Notes to Financial Statements

Notes to financial statements                                                                                    0;                 

     unaudited

1. 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.

On November 24, 2009, shareholders approved a proposal to reorganize the fund from a Maryland corporation to a Delaware statutory trust. The reorganization may be completed in 2010 or early 2011; however, the fund reserves the right to delay the implementation. Shareholders also approved amendments to the fund’s Investment Advisory and Service Agreement and amendments to and elimination of certain fundamental investment policies of the fund.

The fund has 16 share classes consisting of five retail share classes, five 529 college savings plan share classes and six 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 six retirement plan share classes (R-1, R-2, R-3, R-4, R-5 and R-6) 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 convert to Classes 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, R-5 and R-6	None	None	None

*Class B and 529-B shares of the fund are not available for purchase.

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.

2. 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 fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.

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 recognizedon 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.

Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.

3. Valuation

The fund’s investments are reported at fair value as defined by accounting principles generally accepted in the United States of America. The fund generally determines its net asset value as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs – The fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Equity securities are generally 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 generally valued at prices obtained as of approximately 3:00 p.m. New York time from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive and any of the inputs may be used to value any other class of fixed-income security.

Fixed-income class	Examples of standard inputs
All	Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”)
Corporate bonds & notes; convertible securities	Standard inputs and underlying equity of the issuer
Bonds & notes of governments & government agencies	Standard inputs and interest rate volatilities
Mortgage-backed; asset-backed obligations	Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information

Where the investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (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 generally 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 fair 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 guidelines adopted by authority of the fund's board of directors. Various inputs may be reviewed in order to make a good faith determination of a security’s fair value. These inputs 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. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Classifications - The fund classifies its assets and liabilities into three levels based on the inputs 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 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, 2010 (dollars in thousands):

Investment securities:	Level 1		Level 2		Level 3		Total
Common stocks:
Energy	$	1,584,801	$	-	$	-	$	1,584,801
Materials		553,491		-		-		553,491
Industrials		2,596,555		-		-		2,596,555
Consumer discretionary		1,423,662		-		-		1,423,662
Consumer staples		1,057,631		-		-		1,057,631
Health care		1,449,539		-		-		1,449,539
Financials		556,534		-		-		556,534
Information technology		2,348,536		-		-		2,348,536
Telecommunication services		950,743		-		-		950,743
Utilities		1,197,133		-		-		1,197,133
Miscellaneous		632,708		-		-		632,708
Preferred stocks		-		330,098		-		330,098
Convertible securities		-		44,225		-		44,225
Bonds & notes:
Corporate bonds & notes				567,622				567,622
Mortgage-backed obligations		-		153,024		-		153,024
Bonds & notes of U.S. government & government agencies		-		98,096		-		98,096
Other		-		42,685		-		42,685
Short-term securities		-		917,356		-		917,356
Total	$	14,351,333	$	2,153,106	$	-	$	16,504,439

4. 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, the common stocks and other securities held by the fund may decline in response to certain events taking place around the world, including those directly involving the issuers whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations.

The prices 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 prices of debt securities in the fund's portfolio generally will decline when interest rates rise and increase when interest rates fall.

In addition, falling interest rates may cause an issuer to redeem, "call" or refinance a security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. This is known as prepayment risk.

Debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. In addition, longer maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than shorter maturity debt securities.

5. 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, 2010, 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 2005 and by state tax authorities for tax years before 2004.

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 gainsfor financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; deferred expenses; cost of investments sold; paydowns on fixed-income securities; net capital losses; and income on certain investments.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 components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of October 31, 2009, the components of distributable earnings on a tax basis were as follows:

(dollars in thousands)
Undistributed ordinary income	$	28,346
Capital loss carryforward expiring 2017*		(1,310,988	)
*The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains.

As of April 30, 2010, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	$	2,721,259
Gross unrealized depreciation on investment securities		(540,700	)
Net unrealized appreciation on investment securities		2,180,559
Cost of investment securities		14,323,880

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

	Six months ended April 30, 2010			Year ended October 31, 2009
Share class	Ordinary income	Long-term capital gains	Total  distributions  paid	Ordinary  income	Long-term capital gains	Total distributions paid
Class A	$        201,095	$                  -	$         201,095	$          405,415	$          31,214	$         436,629
Class B	5,250	-	5,250	12,408	1,229	13,637
Class C	7,837	-	7,837	16,302	1,585	17,887
Class F-1	7,092	-	7,092	12,755	954	13,709
Class F-2	2,542	-	2,542	2,130	31	2,161
Class 529-A	3,951	-	3,951	7,009	521	7,530
Class 529-B	422	-	422	889	87	976
Class 529-C	842	-	842	1,575	148	1,723
Class 529-E	192	-	192	354	28	382
Class 529-F-1	173	-	173	268	18	286
Class R-1	257	-	257	384	34	418
Class R-2	1,662	-	1,662	3,153	306	3,459
Class R-3	2,956	-	2,956	5,058	402	5,460
Class R-4	1,727	-	1,727	2,127	148	2,275
Class R-5	1,978	-	1,978	8,585	788	9,373
Class R-6*	7,491	-	7,491	4,648	-	4,648
Total	$        245,467	$                  -	$         245,467	$          483,060	$          37,493	$         520,553
*Class R-6 was offered beginning May 1, 2009.

6. Fees and transactions with related parties

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

Investment advisory services - The Investment Advisory and Service Agreement with CRMC providesfor monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.384% on the first $1 billion of daily net assets and decreasing to 0.225% on such assets in excess of $21 billion. Effective January 1, 2010, the fee basis changed from month-end net assets to daily net assets in accordance with an amended agreement approved by shareholders on November 24, 2009. For the six months ended April 30, 2010, the investment advisory services fee was $20,584,000, which was equivalent to an annualized rate of 0.264% of average 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, R-5 and R-6. 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 on the following page. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans.All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fe es, 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, 2010, 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 as 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 and 0.05% for Class R-6) 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. 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 series of decreasing 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 on the previous page for the six months ended April 30, 2010, 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	$14,317	$7,032	Not applicable	Not applicable	Not applicable
Class B	2,142	250	Not applicable	Not applicable	Not applicable
Class C	3,254	Included in administrative services	$489	$69	Not applicable
Class F-1	557		277	18	Not applicable
Class F-2	Not applicable		88	4	Not applicable
Class 529-A	268		119	19	$127
Class 529-B	180		17	6	18
Class 529-C	356		34	10	36
Class 529-E	34		7	1	7
Class 529-F-1	-		5	1	5
Class R-1	105		13	4	Not applicable
Class R-2	526		105	216	Not applicable
Class R-3	523		155	65	Not applicable
Class R-4	132		76	4	Not applicable
Class R-5	Not applicable		57	2	Not applicable
Class R-6	Not applicable		109	-*	Not applicable
Total	$22,394	$7,282	$1,551	$419	$193

*Amount less than one thousand.

Directors’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, directors who are unaffiliated with CRMCmay 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 $353,000, shown on the accompanying financial statements, includes $225,000 in current fees (either paid in cash or deferred) and a net increase of $128,000 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.

7. 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, 2010
Class A	$	712,907		30,546	$	186,658		7,977	$	(1,084,538	)		(46,596	)	$	(184,973	)		(8,073	)
Class B		8,413		363		5,108		220		(68,228	)		(2,952	)		(54,707	)		(2,369	)
Class C		60,563		2,619		7,220		312		(64,525	)		(2,803	)		3,258			128
Class F-1		90,573		3,890		6,348		272		(51,545	)		(2,223	)		45,376			1,939
Class F-2		43,427		1,860		1,856		79		(18,369	)		(789	)		26,914			1,150
Class 529-A		33,014		1,417		3,949		169		(15,235	)		(655	)		21,728			931
Class 529-B		747		32		421		18		(3,182	)		(137	)		(2,014	)		(87	)
Class 529-C		10,105		435		841		36		(5,677	)		(246	)		5,269			225
Class 529-E		1,596		69		192		8		(821	)		(36	)		967			41
Class 529-F-1		2,398		103		173		8		(1,090	)		(48	)		1,481			63
Class R-1		8,150		353		256		11		(2,192	)		(94	)		6,214			270
Class R-2		22,492		972		1,655		71		(22,393	)		(974	)		1,754			69
Class R-3		65,060		2,815		2,921		125		(35,972	)		(1,564	)		32,009			1,376
Class R-4		77,953		3,336		1,725		74		(17,490	)		(752	)		62,188			2,658
Class R-5		33,910		1,427		1,959		84		(17,311	)		(744	)		18,558			767
Class R-6		107,143		4,602		7,491		320		(9,926	)		(423	)		104,708			4,499
Total net increase
(decrease)	$	1,278,451		54,839	$	228,773		9,784	$	(1,418,494	)		(61,036	)	$	88,730			3,587
Year ended October 31, 2009
Class A	$	1,860,461		97,853	$	407,646		21,693	$	(2,607,917	)		(138,962	)	$	(339,810	)		(19,416	)
Class B		39,546		2,129		13,209		711		(105,762	)		(5,637	)		(53,007	)		(2,797	)
Class C		129,260		6,812		17,037		917		(148,530	)		(8,046	)		(2,233	)		(317	)
Class F-1		158,801		8,295		11,954		636		(139,120	)		(7,409	)		31,635			1,522
Class F-2		122,928		6,248		1,676		84		(13,189	)		(676	)		111,415			5,656
Class 529-A		42,720		2,211		7,528		400		(26,889	)		(1,417	)		23,359			1,194
Class 529-B		3,048		165		975		52		(3,592	)		(190	)		431			27
Class 529-C		15,115		792		1,722		92		(9,981	)		(529	)		6,856			355
Class 529-E		2,458		128		382		20		(1,505	)		(79	)		1,335			69
Class 529-F-1		3,644		187		284		15		(1,388	)		(74	)		2,540			128
Class R-1		7,120		364		413		22		(4,200	)		(222	)		3,333			164
Class R-2		43,114		2,273		3,447		185		(33,534	)		(1,775	)		13,027			683
Class R-3		58,265		3,002		5,443		290		(43,651	)		(2,293	)		20,057			999
Class R-4		33,113		1,697		2,272		120		(19,358	)		(1,020	)		16,027			797
Class R-5		127,217		6,857		9,154		503		(306,801	)		(16,178	)		(170,430	)		(8,818	)
Class R-6†		316,908		16,479		4,648		223		(2,342	)		(111	)		319,214			16,591
Total net increase
(decrease)	$	2,963,718		155,492	$	487,790		25,963	$	(3,467,759	)		(184,618	)	$	(16,251	)		(3,163	)
*Includes exchanges between share classes of the fund.
†Class R-6 was offered beginning May 1, 2009.

8. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $1,844,404,000 and $1,734,765,000, respectively, during the six months ended April 30, 2010.

Financial highlights(1)

				Income (loss) from investment operations(2)								Dividends and distributions
		Net asset value, beginning of period		Net investment income		Net gains (losses) 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 4/30/2010(5)	$	21.57	$	.31	$	2.70		$	3.01		$	(.37	)	$	-		$	(.37	)	$	24.21		14.02	%	$	13,116		.64	%(6)		.64	%(6)		2.68	%(6)
	Year ended 10/31/2009		20.20		.59		1.56			2.15			(.72	)		(.06	)		(.78	)		21.57		11.27			11,862		.67			.66			3.05
	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
Class B:	Six months ended 4/30/2010(5)		21.41		.22		2.67			2.89			(.28	)		-			(.28	)		24.02		13.55			420		1.41	(6)		1.41	(6)		1.93	(6)
	Year ended 10/31/2009		20.05		.44		1.56			2.00			(.58	)		(.06	)		(.64	)		21.41		10.45			426		1.45			1.44			2.29
	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
Class C:	Six months ended 4/30/2010(5)		21.36		.21		2.67			2.88			(.28	)		-			(.28	)		23.96		13.51			687		1.47	(6)		1.47	(6)		1.85	(6)
	Year ended 10/31/2009		20.01		.43		1.55			1.98			(.57	)		(.06	)		(.63	)		21.36		10.39			610		1.48			1.47			2.24
	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
Class F-1:	Six months ended 4/30/2010(5)		21.51		.30		2.70			3.00			(.37	)		-			(.37	)		24.14		14.00			499		.67	(6)		.67	(6)		2.63	(6)
	Year ended 10/31/2009		20.14		.59		1.56			2.15			(.72	)		(.06	)		(.78	)		21.51		11.31			403		.67			.67			3.03
	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
Class F-2:	Six months ended 4/30/2010(5)		21.57		.33		2.71			3.04			(.40	)		-			(.40	)		24.21		14.15			173		.41	(6)		.41	(6)		2.88	(6)
	Year ended 10/31/2009		20.20		.58		1.63			2.21			(.78	)		(.06	)		(.84	)		21.57		11.58			130		.43			.43			2.86
	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 4/30/2010(5)		21.54		.30		2.69			2.99			(.36	)		-			(.36	)		24.17		13.95			279		.72	(6)		.72	(6)		2.59	(6)
	Year ended 10/31/2009		20.17		.57		1.57			2.14			(.71	)		(.06	)		(.77	)		21.54		11.22			228		.74			.74			2.95
	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
Class 529-B:	Six months ended 4/30/2010(5)		21.46		.21		2.68			2.89			(.27	)		-			(.27	)		24.08		13.51			36		1.52	(6)		1.52	(6)		1.81	(6)
	Year ended 10/31/2009		20.10		.42		1.56			1.98			(.56	)		(.06	)		(.62	)		21.46		10.31			34		1.55			1.55			2.16
	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
Class 529-C:	Six months ended 4/30/2010(5)		21.46		.21		2.67			2.88			(.27	)		-			(.27	)		24.07		13.47			79		1.51	(6)		1.51	(6)		1.80	(6)
	Year ended 10/31/2009		20.10		.42		1.56			1.98			(.56	)		(.06	)		(.62	)		21.46		10.33			65		1.54			1.54			2.15
	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
Class 529-E:	Six months ended 4/30/2010(5)	$	21.48	$	.26	$	2.69		$	2.95		$	(.33	)	$	-		$	(.33	)	$	24.10		13.78	%	$	15		1.00	(6)		1.00	(6)		2.30	(6)
	Year ended 10/31/2009		20.12		.51		1.57			2.08			(.66	)		(.06	)		(.72	)		21.48		10.88			12		1.04			1.03			2.66
	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
Class 529-F-1:	Six months ended 4/30/2010(5)		21.56		.32		2.70			3.02			(.38	)		-			(.38	)		24.20		14.10			12		.50	%(6)		.50	%(6)		2.78	%(6)
	Year ended 10/31/2009		20.19		.61		1.57			2.18			(.75	)		(.06	)		(.81	)		21.56		11.44			9		.54			.53			3.14
	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
Class R-1:	Six months ended 4/30/2010(5)		21.43		.21		2.68			2.89			(.28	)		-			(.28	)		24.04		13.54			25		1.46	(6)		1.46	(6)		1.83	(6)
	Year ended 10/31/2009		20.07		.43		1.57			2.00			(.58	)		(.06	)		(.64	)		21.43		10.43			17		1.48			1.47			2.22
	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
Class R-2:	Six months ended 4/30/2010(5)		21.40		.21		2.67			2.88			(.27	)		-			(.27	)		24.01		13.51			150		1.49	(6)		1.49	(6)		1.82	(6)
	Year ended 10/31/2009		20.05		.40		1.56			1.96			(.55	)		(.06	)		(.61	)		21.40		10.22			132		1.62			1.62			2.08
	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
Class R-3:	Six months ended 4/30/2010(5)		21.46		.26		2.69			2.95			(.33	)		-			(.33	)		24.08		13.80			236		1.00	(6)		1.00	(6)		2.30	(6)
	Year ended 10/31/2009		20.10		.51		1.57			2.08			(.66	)		(.06	)		(.72	)		21.46		10.89			181		1.03			1.03			2.66
	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
Class R-4:	Six months ended 4/30/2010(5)		21.53		.29		2.70			2.99			(.37	)		-			(.37	)		24.15		13.94			149		.69	(6)		.69	(6)		2.56	(6)
	Year ended 10/31/2009		20.16		.57		1.58			2.15			(.72	)		(.06	)		(.78	)		21.53		11.26			75		.71			.71			2.96
	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
Class R-5:	Six months ended 4/30/2010(5)		21.57		.34		2.70			3.04			(.40	)		-			(.40	)		24.21		14.15			140		.39	(6)		.39	(6)		2.91	(6)
	Year ended 10/31/2009		20.20		.65		1.55			2.20			(.77	)		(.06	)		(.83	)		21.57		11.55			108		.40			.39			3.47
	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
Class R-6:	Six months ended 4/30/2010(5)		21.58		.34		2.69			3.03			(.40	)		-			(.40	)		24.21		14.13			511		.34	(6)		.34	(6)		2.95	(6)
	Six months ended 10/31/2009		18.74		.31		2.86			3.17			(.33	)		-			(.33	)		21.58		16.99			358		.36	(6)		.36	(6)		3.03	(6)

	Six months ended April 30,			Year ended October 31
	2010(5)			2009			2008			2007			2006			2005
Portfolio turnover rate for all classes of shares		12	%		27	%		23	%		19	%		19	%		22	%

(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 some of 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

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, 2009, through April 30, 2010).

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.

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 11/1/2009		Ending account value 4/30/2010		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,140.22	$	3.40		.64	%
Class A -- assumed 5% return		1,000.00		1,021.62		3.21		.64
Class B -- actual return		1,000.00		1,135.47		7.47		1.41
Class B -- assumed 5% return		1,000.00		1,017.80		7.05		1.41
Class C -- actual return		1,000.00		1,135.08		7.78		1.47
Class C -- assumed 5% return		1,000.00		1,017.50		7.35		1.47
Class F-1 -- actual return		1,000.00		1,139.96		3.55		.67
Class F-1 -- assumed 5% return		1,000.00		1,021.47		3.36		.67
Class F-2 -- actual return		1,000.00		1,141.48		2.18		.41
Class F-2 -- assumed 5% return		1,000.00		1,022.76		2.06		.41
Class 529-A -- actual return		1,000.00		1,139.49		3.82		.72
Class 529-A -- assumed 5% return		1,000.00		1,021.22		3.61		.72
Class 529-B -- actual return		1,000.00		1,135.06		8.05		1.52
Class 529-B -- assumed 5% return		1,000.00		1,017.26		7.60		1.52
Class 529-C -- actual return		1,000.00		1,134.71		7.99		1.51
Class 529-C -- assumed 5% return		1,000.00		1,017.31		7.55		1.51
Class 529-E -- actual return		1,000.00		1,137.79		5.30		1.00
Class 529-E -- assumed 5% return		1,000.00		1,019.84		5.01		1.00
Class 529-F-1 -- actual return		1,000.00		1,140.98		2.65		.50
Class 529-F-1 -- assumed 5% return		1,000.00		1,022.32		2.51		.50
Class R-1 -- actual return		1,000.00		1,135.43		7.73		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		1,135.07		7.89		1.49
Class R-2 -- assumed 5% return		1,000.00		1,017.41		7.45		1.49
Class R-3 -- actual return		1,000.00		1,137.97		5.30		1.00
Class R-3 -- assumed 5% return		1,000.00		1,019.84		5.01		1.00
Class R-4 -- actual return		1,000.00		1,139.40		3.66		.69
Class R-4 -- assumed 5% return		1,000.00		1,021.37		3.46		.69
Class R-5 -- actual return		1,000.00		1,141.50		2.07		.39
Class R-5 -- assumed 5% return		1,000.00		1,022.86		1.96		.39
Class R-6 -- actual return		1,000.00		1,141.26		1.81		.34
Class R-6 -- assumed 5% return		1,000.00		1,023.11		1.71		.34

*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, 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, 2011. 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 fun d 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 board and committee meetings. 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 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 the fund and the other cl ients. 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 mut ual 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. They further considered the breakpoint discounts in the fund’s advisory fee structure and 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.

Results of meeting of shareholders held November 24, 2009

Shares outstanding (all classes) on record date (August 28, 2009):	681,002,261
Total shares voting on November 24, 2009:	471,071,254	(69.2% of shares outstanding)

Election of board members

Director*	Votes for		Percent  of shares voting for			Votes withheld		Percent  of shares withheld
Louise H. Bryson		457,463,504		97.1	%		13,607,750		2.9	%
Mary Anne Dolan		457,536,535		97.1			13,534,719		2.9
James K. Dunton		457,487,512		97.1			13,583,742		2.9
James G. Ellis		457,372,546		97.1			13,698,708		2.9
Leonard R. Fuller		457,322,370		97.1			13,748,884		2.9
Joyce E. Gordon		457,577,709		97.1			13,493,545		2.9
William D. Jones		457,438,014		97.1			13,633,240		2.9
L. Daniel Jorndt		457,424,972		97.1			13,646,282		2.9
William H. Kling		457,281,273		97.1			13,789,981		2.9
John G. McDonald		457,286,123		97.1			13,785,131		2.9
Bailey Morris-Eck		457,448,833		97.1			13,622,421		2.9
Olin C. Robison		457,284,215		97.1			13,787,039		2.9
Steven B. Sample		457,366,668		97.1			13,704,586		2.9

	Votes for		Percent of outstanding shares voting for			Votes against		Percent of outstanding shares voting against			Votes abstaining			Percent of outstanding shares abstaining
To approve an Agreement and Plan of Reorganization		383,349,633		56.3	%		10,200,933		1.5	%		77,520,688	†		11.4	%

	Votes for		Percent of shares voting for			Votes against		Percent of shares voting against			Votes abstaining			Percent of shares abstaining
To update the fund’s fundamental investment policies regarding:
Borrowing		381,847,919		81.0	%		11,581,550		2.5	%		77,641,785	†		16.5	%
Issuance of senior securities		381,711,789		81.0			11,591,359		2.5			77,768,106	†		16.5
Underwriting		382,204,542		81.1			10,711,876		2.3			78,154,836	†		16.6
Investments in real estate or commodities		380,636,272		80.8			12,545,672		2.7			77,889,310	†		16.5
Lending		380,507,637		80.7			12,513,532		2.7			78,050,085	†		16.6
Industry concentration		382,342,333		81.1			10,655,112		2.3			78,073,809	†		16.6
Elimination of certain policies		380,192,445		80.7			11,973,253		2.5			78,905,556	†		16.8

To approve a policy allowing CRMC to appoint subsidiary advisers for the fund’s day-to-day investment management without additional shareholder approval	378,655,040	80.4	14,228,173	3.0	78,188,041	†	16.6
To approve amendments to the fund’s Investment Advisory and Service Agreement with CRMC	379,978,815	80.6	12,050,075	2.6	79,042,364	†	16.8
To approve a form of Subsidiary Agreement and appointment of one or more subsidiary advisers for the fund	378,937,317	80.4	13,519,012	2.9	78,614,925	†	16.7
To consider a shareholder proposal regarding genocide-free investing	43,764,571	10.8	341,346,405	84.3	19,819,784		4.9
(broker non-votes = 66,140,494)

*Martin Fenton and Richard G. Newman did not stand for election at the Meeting of Shareholders because they plan to retire in December 2010.

†Includes broker non-votes.

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, 2010 (the most recent calendar quarter-end):
							10 years1/
	1 year			5 years			Life of class
Class B shares2
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares are
sold within six years of purchase		35.29	%		1.72	%		4.31	%
Not reflecting CDSC		40.29			2.06			4.31
Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase		39.29			2.01			3.45
Not reflecting CDSC		40.29			2.01			3.45
Class F-1 shares3 — first sold 3/15/01
Not reflecting annual asset-based fee charged by
sponsoring firm		41.39			2.82			4.25
Class F-2 shares3 — first sold 8/5/08
Not reflecting annual asset-based fee charged by
sponsoring firm		41.70			—			–0.58
Class 529-A shares4 — first sold 2/19/02
Reflecting 5.75% maximum sales charge		33.23			1.56			3.49
Not reflecting maximum sales charge		41.32			2.77			4.25
Class 529-B shares2,4 — first sold 2/19/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		35.23			1.60			3.39
Not reflecting CDSC		40.23			1.94			3.39
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		39.20			1.94			3.26
Not reflecting CDSC		40.20			1.94			3.26
Class 529-E shares3,4 — first sold 3/7/02		40.91			2.46			3.08
Class 529-F-1 shares3,4 — first sold 9/17/02
Not reflecting annual asset-based fee charged by
sponsoring firm		41.56			2.97			6.25

1Applicable to Class B shares only. All other share classes reflect results for the life of the class.

2These shares are not available for purchase.

3These shares are sold without any initial or contingent deferred sales charge.

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. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 24 to 29 for details that include expense ratios for all share classes.

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

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

(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 summary prospectus and 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, 2010, 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 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 summary prospectus or prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after June 30, 2010, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

     

What makes American Funds different?

For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our 30 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 more than 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 26 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 Funds Short-Term Tax-Exempt Bond FundSM

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 fund

American Funds Money Market FundSM

•American Funds Target Date Retirement Series®

The Capital Group Companies

American FundsCapital Research and ManagementCapital InternationalCapital GuardianCapital Bank and Trust

Lit. No. MFGESR-903-0610P

Litho in USA BBC/ALD/8079-S20692

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

American Mutual Fund®

Investment portfolio

April 30, 2010

unaudited

Common stocks — 86.84%	Shares			Value (000)
ENERGY — 9.59%
Apache Corp.		483,400		$	49,191
Baker Hughes Inc.		2,997,619			149,161
Chevron Corp.		2,238,911			182,337
ConocoPhillips		4,777,900			282,804
Devon Energy Corp.		1,925,000			129,610
EOG Resources, Inc.		588,600			65,994
Halliburton Co.		800,000			24,520
Hess Corp.		622,200			39,541
Marathon Oil Corp.		5,353,600			172,118
Royal Dutch Shell PLC, Class A (ADR)		5,076,000			318,519
Schlumberger Ltd.		880,400			62,878
Spectra Energy Corp		3,930,500			91,738
Sunoco, Inc.		500,000			16,390
					1,584,801
MATERIALS — 3.35%
Air Products and Chemicals, Inc.		2,467,300			189,439
Dow Chemical Co.		1,292,300			39,842
E.I. du Pont de Nemours and Co.		690,000			27,490
International Paper Co.		1,250,000			33,425
MeadWestvaco Corp.		5,409,864			146,986
Monsanto Co.		220,700			13,917
Praxair, Inc.		1,222,300			102,392
					553,491
INDUSTRIALS — 15.71%
3M Co.		2,013,700			178,555
Avery Dennison Corp.		805,000			31,419
Boeing Co.		2,585,000			187,232
CSX Corp.		3,904,500			218,847
Eaton Corp.		400,000			30,864
Emerson Electric Co.		1,300,000			67,899
General Dynamics Corp.		945,000			72,160
General Electric Co.		8,417,500			158,754
Illinois Tool Works Inc.		850,000			43,435
Lockheed Martin Corp.		1,905,000			161,715
Manpower Inc.		220,000			12,342
Norfolk Southern Corp.		1,575,200			93,457
Northrop Grumman Corp.		200,000			13,566
Pentair, Inc.		1,800,000			65,088
Pitney Bowes Inc.		4,166,900			105,839
Precision Castparts Corp.		314,000			40,299
R.R. Donnelley & Sons Co.		6,212,657			133,510
Rockwell Automation		1,250,000			75,900
Southwest Airlines Co.		4,450,000			58,651
Union Pacific Corp.		2,873,400			217,401
United Parcel Service, Inc., Class B		2,450,000			169,393
United Technologies Corp.		4,130,000			309,544
Waste Management, Inc.		4,345,000			150,685
					2,596,555
CONSUMER DISCRETIONARY — 8.62%
Carnival Corp., units		655,000			27,313
Comcast Corp., Class A, special nonvoting shares		1,500,000			28,275
Darden Restaurants, Inc.		3,800,000			170,050
Harley-Davidson, Inc.		2,408,000			81,463
Home Depot, Inc.		6,090,000			214,673
Johnson Controls, Inc.		3,175,000			106,648
Lowe’s Companies, Inc.		2,000,000			54,240
Mattel, Inc.		1,500,000			34,575
McDonald’s Corp.		1,200,000			84,708
News Corp., Class A		3,850,000			59,367
Staples, Inc.		2,550,000			60,002
Target Corp.		1,790,000			101,797
Time Warner Cable Inc.		1,235,509			69,497
Time Warner Inc.		4,002,666			132,408
VF Corp.		1,150,000			99,383
YUM! Brands, Inc.		2,340,000			99,263
					1,423,662
CONSUMER STAPLES — 6.40%
Avon Products, Inc.		2,990,000			96,667
Coca-Cola Co.		850,000			45,432
Colgate-Palmolive Co.		637,500			53,614
ConAgra Foods, Inc.		950,000			23,246
General Mills, Inc.		750,000			53,385
H.J. Heinz Co.		600,000			28,122
Kellogg Co.		1,685,600			92,607
Kimberly-Clark Corp.		2,140,000			131,096
Kraft Foods Inc., Class A		9,235,000			273,356
PepsiCo, Inc.		2,585,000			168,594
Procter & Gamble Co.		310,000			19,270
Sara Lee Corp.		3,873,000			55,074
Wal-Mart Stores, Inc.		320,000			17,168
					1,057,631
HEALTH CARE — 8.77%
Abbott Laboratories		4,179,600			213,828
Amgen Inc.1		630,000			36,137
Bristol-Myers Squibb Co.		4,662,500			117,915
Cardinal Health, Inc.		1,305,000			45,270
Eli Lilly and Co.		3,355,000			117,324
Johnson & Johnson		600,000			38,580
Medtronic, Inc.		2,452,000			107,128
Merck & Co., Inc.		14,403,160			504,687
Novartis AG (ADR)		2,030,000			103,226
Pfizer Inc		9,895,000			165,444
					1,449,539
FINANCIALS — 3.37%
Allstate Corp.		700,000			22,869
Arthur J. Gallagher & Co.		1,887,331			49,580
Bank of America Corp.		3,537,933			63,081
Bank of New York Mellon Corp.		3,456,000			107,585
JPMorgan Chase & Co.		3,913,000			166,616
Lincoln National Corp.		413,300			12,643
Marsh & McLennan Companies, Inc.		1,510,000			36,572
Travelers Companies, Inc.		1,000,000			50,740
U.S. Bancorp		1,750,000			46,848
					556,534
INFORMATION TECHNOLOGY — 14.21%
Analog Devices, Inc.		1,215,000			36,365
Automatic Data Processing, Inc.		2,000,000			86,720
Cisco Systems, Inc.1		1,950,000			52,494
Google Inc., Class A1		161,000			84,596
Hewlett-Packard Co.		4,320,000			224,510
Intel Corp.		9,423,000			215,127
International Business Machines Corp.		2,810,000			362,490
KLA-Tencor Corp.		672,000			22,888
Linear Technology Corp.		3,845,000			115,581
Maxim Integrated Products, Inc.		4,930,000			95,741
Microchip Technology Inc.		3,238,925			94,609
Microsoft Corp.		16,849,198			514,574
Nokia Corp. (ADR)1		1,940,000			23,590
Oracle Corp.		6,815,000			176,100
Paychex, Inc.		1,000,000			30,600
QUALCOMM Inc.		800,000			30,992
SAP AG (ADR)		1,031,000			48,921
Texas Instruments Inc.		4,100,000			106,641
Xilinx, Inc.		1,008,400			25,997
					2,348,536
TELECOMMUNICATION SERVICES — 5.75%
AT&T Inc.		22,452,297			585,107
CenturyTel, Inc.		8,347,822			284,744
Verizon Communications Inc.		2,800,000			80,892
					950,743
UTILITIES — 7.24%
Ameren Corp.		3,598,680			93,422
American Electric Power Co., Inc.		1,435,000			49,220
Dominion Resources, Inc.		2,900,000			121,220
DTE Energy Co.		750,000			36,128
Duke Energy Corp.		3,800,000			63,764
Exelon Corp.		3,893,720			169,727
FirstEnergy Corp.		2,552,900			96,678
PPL Corp.		3,003,900			74,377
Progress Energy, Inc.		2,346,900			93,688
Public Service Enterprise Group Inc.		2,575,000			82,735
Questar Corp.		3,000,000			143,850
Southern Co.		2,000,000			69,120
Xcel Energy Inc.		4,745,000			103,204
					1,197,133
MISCELLANEOUS — 3.83%
Other common stocks in initial period of acquisition					632,708
Total common stocks (cost: $12,278,273,000)					14,351,333
Preferred stocks — 2.00%	Shares
FINANCIALS — 2.00%
JPMorgan Chase & Co., Series I, 7.90%2		107,631,000			113,416
PNC Financial Services Group, Inc., Series K, 8.25%2		10,415,000			11,159
PNC Preferred Funding Trust III 8.70%2,3		35,900,000			38,004
Wachovia Capital Trust III 5.80%2		27,846,000			24,365
Wells Fargo & Co., Series K, 7.98%2		135,051,000			143,154
Total preferred stocks (cost: $285,735,000)					330,098
Convertible securities — 0.27%
CONSUMER DISCRETIONARY — 0.02%
Johnson Controls, Inc. 11.50% convertible preferred 2012, units		22,000			3,721
FINANCIALS — 0.25%
SLM Corp., Series C, 7.25% convertible preferred 2010		61,000			40,504
Total convertible securities (cost: $29,090,000)					44,225
	Principal amount
Bonds & notes — 5.21%		(000	)
ENERGY — 0.12%
Apache Corp. 6.00% 2013	$	5,000			5,617
Enbridge Energy Partners, LP 5.35% 2014		5,075			5,457
Kinder Morgan Energy Partners LP 6.75% 2011		4,000			4,187
Shell International Finance BV 4.00% 2014		5,000			5,303
					20,564
INDUSTRIALS — 0.23%
Burlington Northern Santa Fe Corp. 6.75% 2011		8,442			8,941
Honeywell International Inc. 3.875% 2014		3,400			3,586
Norfolk Southern Corp. 8.625% 2010		5,000			5,011
Northrop Grumman Corp. 7.75% 2016		4,420			5,403
PACCAR Inc, Series A, 6.375% 2012		5,000			5,423
PACCAR Inc, Series A, 6.875% 2014		5,000			5,747
Union Pacific Corp. 5.125% 2014		3,830			4,147
					38,258
CONSUMER DISCRETIONARY — 1.19%
AOL Time Warner Inc. 6.875% 2012		8,436			9,288
Black & Decker Corp. 8.95% 2014		18,000			21,874
Comcast Cable Communications, Inc. 6.75% 2011		4,335			4,516
Hasbro, Inc. 6.125% 2014		3,750			4,167
News America Inc. 6.90% 2019		3,155			3,636
Staples, Inc. 7.75% 2011		9,380			9,909
Staples, Inc. 9.75% 2014		101,450			124,366
Time Warner Cable Inc. 6.20% 2013		3,985			4,444
Time Warner Inc. 5.50% 2011		13,875			14,718
					196,918
CONSUMER STAPLES — 0.27%
Avon Products, Inc. 5.625% 2014		5,000			5,529
ConAgra Foods, Inc. 5.875% 2014		5,000			5,559
CVS Caremark Corp. 1.754% 20102		21,055			21,154
CVS Caremark Corp. 6.60% 2019		2,665			3,046
Kraft Foods Inc. 2.625% 2013		2,555			2,614
Safeway Inc. 6.25% 2014		5,900			6,618
					44,520
HEALTH CARE — 0.10%
Aetna Inc. 5.75% 2011		1,962			2,056
Aetna Inc. 7.875% 2011		435			459
Cardinal Health, Inc. 5.65% 2012		2,800			2,995
Pfizer Inc 4.45% 2012		5,000			5,297
UnitedHealth Group Inc. 0.451% 20102		50			50
WellPoint, Inc. 5.00% 2011		5,000			5,140
					15,997
FINANCIALS — 1.31%
Allstate Life Global Funding Trust, Series 2008-4, 5.375% 2013		5,000			5,494
American Express Bank 5.55% 2012		28,250			30,464
American Express Centurion Bank 5.55% 2012		18,870			20,349
Bank of America Corp. 4.25% 2010		2,540			2,575
Bank of America Corp. 4.375% 2010		24,110			24,595
Bank of America Corp. 4.50% 2010		4,975			5,019
Bank of America Corp. 6.50% 2016		5,000			5,400
Citigroup Inc. 6.125% 2017		5,000			5,203
ERP Operating LP 5.50% 2012		1,950			2,098
ERP Operating LP 6.584% 2015		3,500			3,889
ERP Operating LP 5.125% 2016		2,400			2,501
ERP Operating LP 5.375% 2016		13,404			14,156
ERP Operating LP 5.75% 2017		39,855			42,801
ERP Operating LP 7.125% 2017		5,000			5,541
JPMorgan Chase & Co. 4.75% 2013		5,000			5,343
Kimco Realty Corp., Series C, 4.82% 2014		5,000			5,171
MetLife Global Funding 5.125% 20143		3,000			3,248
Metropolitan Life Global Funding I, 5.125% 20133		1,665			1,793
New York Life Global Funding 2.25% 20123		5,000			5,100
PNC Funding Corp. 0.538% 20142		5,000			4,812
Simon Property Group, LP 6.75% 2014		7,000			7,830
UDR, Inc., Series A, 5.25% 2015		5,000			5,086
Westfield Group 5.75% 20153		7,000			7,576
					216,044
INFORMATION TECHNOLOGY — 0.09%
KLA-Tencor Corp. 6.90% 2018		13,700			15,174
TELECOMMUNICATION SERVICES — 0.21%
AT&T Inc. 4.85% 2014		5,000			5,427
Telecom Italia Capital SA 6.175% 2014		5,000			5,376
Verizon Communications Inc. 5.55% 2014		5,000			5,510
Verizon Communications Inc. 8.50% 2018		15,000			19,008
					35,321
UTILITIES — 0.17%
FirstEnergy Solutions Corp. 4.80% 2015		3,000			3,108
FPL Group Capital, Inc. 7.875% 2015		20,000			24,403
					27,511
MORTGAGE-BACKED OBLIGATIONS4 — 0.93%
DEPFA ACS Bank 4.75% 2010		3,980			4,047
Fannie Mae 4.50% 2023		15,850			16,501
Fannie Mae 4.00% 2024		22,454			22,879
Fannie Mae 4.00% 2024		22,406			22,864
Fannie Mae 4.50% 2024		45,008			46,828
Fannie Mae 4.00% 2025		15,000			15,283
Fannie Mae 5.00% 2039		23,754			24,622
					153,024
BONDS & NOTES OF U.S. GOVERNMENT & GOVERNMENT AGENCIES — 0.59%
Fannie Mae 2.50% 2014		25,775			26,062
Freddie Mac 1.75% 2012		25,240			25,537
U.S. Treasury 1.125% 2011		5,000			5,030
U.S. Treasury 4.25% 2013		10,000			10,851
U.S. Treasury 3.25% 2016		10,000			10,229
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc., Series 1, 1.50% 2011		10,000			10,101
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.625% 2012		10,000			10,286
					98,096
Total bonds & notes (cost: $777,779,000)					861,427
Short-term securities — 5.55%
Abbott Laboratories 0.18% due 5/10/20103		38,300			38,298
Coca-Cola Co. 0.22%–0.24% due 5/10–7/13/20103		64,400			64,391
Fannie Mae 0.15%–0.25% due 5/10–9/20/2010		114,700			114,655
Federal Farm Credit Banks 0.23% due 8/23/2010		25,000			24,983
Federal Home Loan Bank 0.13%–0.19% due 5/3–7/28/2010		240,200			240,135
Freddie Mac 0.183%–0.33% due 5/4–9/15/2010		123,820			123,773
General Electric Capital Corp. 0.22%–0.25% due 6/16–7/1/2010		93,300			93,268
Hewlett-Packard Co. 0.20% due 5/10/20103		50,000			49,997
JPMorgan Chase & Co. 0.21% due 5/13/2010		40,000			39,997
Procter & Gamble International Funding S.C.A. 0.19% due 5/21/20103		16,800			16,798
U.S. Treasury Bills 0.14%–0.338% due 5/6–8/26/2010		111,100			111,061
Total short-term securities (cost: $917,305,000)					917,356
Total investment securities (cost: $14,288,182,000)				$	16,504,439
Other assets less liabilities					22,178
Net assets				$	16,526,617

"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.

3Purchased 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 $225,205,000, which represented 1.36% of the net assets of the fund.

4Principal 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 the fund’s summary prospectus and 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.

MFGEFP-903-0610O-S21497

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 and governance 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 and governance 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 and governance 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: June 30, 2010

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: June 30, 2010

By /s/ Karl C. Grauman

Karl C. Grauman, Treasurer and

Principal Financial Officer

Date: June 30, 2010