SEC File Nos. 002-33371

811-01880



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM N-1A



Registration Statement

Under

the Securities Act Of 1933

Post-Effective Amendment No. 79



and



Registration Statement

Under

the Investment Company Act Of 1940

Amendment No. 60





THE INCOME FUND OF AMERICA

(Exact Name of Registrant as Specified in Charter)



One Market

Steuart Tower, Suite 2000

San Francisco, California 94105-1409

(Address of Principal Executive
Offices) (ZIP Code)



Registrant's Telephone Number, Including Area
Code:

(415) 421-9360





Michael W. Stockton, Secretary

The Income Fund of America

One Market

Steuart Tower, Suite 2000

San Francisco, California 94105-1409



(Name and Address of Agent for Service)



Copies to:



Michael Glazer

Bingham McCutchen LLP

355 South Grand Avenue,
Suite 4400

Los Angeles, CA 90071-3106

(Counsel for the Registrant)





Approximate date of proposed public offering:



It is proposed that this filing will become effective
on October 1, 2014, pursuant to paragraph (b) of Rule 485.



















| | The Income Fund
        of America®
        Prospectus
        October 1, 2014
| | ------------------------------------------------------------------------------










|Class A | B     | C     | F-1   | F-2   | 529-A | 529-B | 529-C | 529-E
|------- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | -----
|AMECX   | IFABX | IFACX | IFAFX | AMEFX | CIMAX | CIMBX | CIMCX | CIMEX
|        |       |       |       |       |       |       |       |      
|529-F-1 | R-1   | R-2   | R-2E  | R-3   | R-4   | R-5   | R-6   |      
|CIMFX   | RIDAX | RIDBX | RIEBX | RIDCX | RIDEX | RIDFX | RIDGX |      





Table of contents

|Investment
    objectives                                         | 1 
|----------------------------------------------------------------- | --
|Fees
    and expenses of the fund                                 | 1 
|Principal
    investment strategies                               | 2 
|Principal
    risks                                               | 3 
|Investment
    results                                            | 5 
|Management                                                        | 6 
|Purchase
    and sale of fund shares                              | 7 
|Tax
    information                                               | 7 
|Payments
    to broker-dealers and other financial intermediaries | 7 
|Investment
    objectives, strategies and risks                   | 8 
|Management
    and organization                                   | 11
|Shareholder
    information                                       | 14
|Purchase,
    exchange and sale of shares                         | 15
|How
    to sell shares                                            | 20
|Distributions
    and taxes                                       | 23
|Choosing
    a share class                                        | 24
|Sales
    charges                                                 | 25
|Sales
    charge reductions and waivers                           | 28
|Rollovers
    from retirement plans to IRAs                       | 31
|Plans
    of distribution                                         | 31
|Other
    compensation to dealers                                 | 32
|Fund
    expenses                                                 | 32
|Financial
    highlights                                          | 34



|The U.S. Securities and Exchange Commission has not approved or disapproved of these securities. Further, it has not determined that this prospectus is accurate or complete. Any representation to the contrary is a criminal offense.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------













Investment objectives

The fund’s investment objectives are to provide you
with current income while secondarily striving for capital growth.

Fees and expenses of the fund

This table describes the fees and expenses that you may
pay if you buy and hold shares of the fund. You may qualify for sales charge discounts if you and your family invest, or agree
to invest in the future, at least $25,000 in American Funds. More information about these and other discounts is available from
your financial professional and in the “Sales charge reductions and waivers” section on page 28 of the prospectus and
on page 63 of the fund’s statement of additional information.

|Shareholder fees
        (fees paid directly from your investment)                  
|------------------------------------------------------------------------------------
|                                                                                    
|                                                                                    
|Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
|Maximum deferred sales charge (load) (as a percentage of the amount redeemed)       
|Maximum sales charge (load) imposed on reinvested dividends                         
|Redemption or exchange fees                                                         
|                                                                                    



|Annual fund operating
        expenses
        (expenses that you pay each year as a percentage
        of the value of your investment)
|----------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                        
|                                                                                                                                        
|Management fees                                                                                                                         
|Distribution and/or service (12b-1) fees                                                                                                
|Other expenses                                                                                                                          
|Total annual fund operating expenses                                                                                                    
|                                                                                                                                        



|                                         | 529-F-1 | R-1   | R-2   | R-2E2 | R-3   | R-4   | R-5   | R-6   | 
|---------------------------------------- | ------- | ----- | ----- | ----- | ----- | ----- | ----- | ----- | 
|Management fees                          | 0.23%   | 0.23% | 0.23% | 0.23% | 0.23% | 0.23% | 0.23% | 0.23% | 
|Distribution and/or service (12b-1) fees | 0.00    | 1.00  | 0.74  | 0.60  | 0.50  | 0.25  | none  | none  | 
|Other expenses                           | 0.21    | 0.16  | 0.40  | 0.27  | 0.21  | 0.16  | 0.11  | 0.06  | 
|Total annual fund operating expenses     | 0.44    | 1.39  | 1.37  | 1.10  | 0.94  | 0.64  | 0.34  | 0.29  | 

| | 1 | A contingent deferred sales charge of 1.00% applies on certain redemptions within one year following purchases of $1 million
or more made without an initial sales charge.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2 | Based on estimated amounts for the current fiscal year.
| | - | -------------------------------------------------------

ExampleThis example is intended to help you compare
the cost of investing in the fund with the cost of investing in other mutual funds.

The example assumes that you invest $10,000 in the fund
for the time periods indicated and then redeem all of your shares at the end of those periods. The

The Income Fund of America / Prospectus  1





example also assumes that your investment has a 5% return
each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based
on these assumptions your costs would be:

|Share
    classes | 1
    year | 3
    years | 5
    years | 10
    years
|----------------- | ---------- | ----------- | ----------- | ------------
|A                 | $630       | $747        | $875        | $1,248      
|B                 | 634        | 818         | 923         | 1,384       
|C                 | 239        | 434         | 750         | 1,646       
|F-1               | 66         | 208         | 362         | 810         
|F-2               | 41         | 128         | 224         | 505         
|529-A             | 640        | 777         | 927         | 1,362       
|529-B             | 648        | 859         | 992         | 1,523       
|529-C             | 247        | 456         | 787         | 1,724       
|529-E             | 93         | 290         | 504         | 1,120       
|529-F-1           | 45         | 141         | 246         | 555         
|R-1               | 142        | 440         | 761         | 1,669       
|R-2               | 139        | 434         | 750         | 1,646       
|R-2E              | 112        | 350         | 606         | 1,340       
|R-3               | 96         | 300         | 520         | 1,155       
|R-4               | 65         | 205         | 357         | 798         
|R-5               | 35         | 109         | 191         | 431         
|R-6               | 30         | 93          | 163         | 368         

For the share classes listed below, you would pay the
following if you did not redeem your shares:

|Share
    classes | 1
    year | 3
    years | 5
    years | 10
    years
|----------------- | ---------- | ----------- | ----------- | ------------
|B                 | $134       | $418        | $723        | $1,384      
|C                 | 139        | 434         | 750         | 1,646       
|529-B             | 148        | 459         | 792         | 1,523       
|529-C             | 147        | 456         | 787         | 1,724       



Portfolio turnover The fund pays transaction
costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held in a taxable account.
These costs, which are not reflected in annual fund operating expenses or in the example, affect the fund’s investment results.
During the most recent fiscal year, the fund’s portfolio turnover rate was 39% of the average value of its portfolio.

Principal investment strategies

Normally the fund invests primarily in income-producing
securities. These include equity securities, such as dividend-paying common stocks, and debt securities, such as interest-paying
bonds.

Generally at least 60% of the fund’s assets will be
invested in common stocks and other equity-type securities. However, the composition of the fund’s investments in equity,
debt and cash or money market instruments may vary substantially depending on various factors, including market conditions. The
fund may also invest up to 25% of its assets in equity securities of issuers domiciled outside the

The Income Fund of America / Prospectus  2





United States, including issuers in developing countries.
In addition, the fund may invest up to 20% of its assets in lower quality, higher yielding nonconvertible debt securities (rated
Ba1 and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s investment adviser
or unrated but determined to be of equivalent quality by the fund’s investment adviser); such securities are sometimes referred
to as “junk bonds.” The fund may also invest up to 10% of its assets in debt securities of issuers domiciled outside
the United States; however, these securities must be denominated in U.S. dollars.

The investment adviser uses a system of multiple portfolio
managers in managing the fund’s assets. Under this approach, the portfolio of the fund is divided into segments managed by
individual managers who decide how their respective segments will be invested.

The fund relies on the professional judgment of its investment
adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser
is to seek to invest in attractively valued companies that, in its opinion, represent good, long-term investment opportunities.
The investment adviser believes that an important way to accomplish this is through fundamental analysis, which may include meeting
with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser
believes that they no longer represent relatively attractive investment opportunities.

Principal risks

This section describes the principal risks associated
with the fund’s principal investment strategies. You may lose money by investing in the fund. The likelihood of loss may
be greater if you invest for a shorter period of time. Investors in the fund should have a long-term perspective and be able to
tolerate potentially sharp declines in value.

Market conditions — The prices of,
and the income generated by, the common stocks and other securities held by the fund may decline – sometimes rapidly or
unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries;
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.

Issuer risks — The values of, and
the income generated by, securities held by the fund may also decline in response to various factors directly related to the issuers
of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic
initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in income-oriented stocks —
Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available for dividend
payments at, the companies in which the fund invests.

Investing in debt instruments —
The prices of, and the income generated by, bonds and other 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.

The Income Fund of America / Prospectus  3





Rising interest rates will generally cause the prices
of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security
before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer
maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than shorter
maturity debt securities.

Bonds and other 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. Lower quality debt securities generally
have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk
is gauged, in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions
of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s
investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and
default risks.

Investing in lower rated bonds — Lower rated
bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price
declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices
of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods
of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Investing outside the United States —
Securities of issuers domiciled outside the United States, or with significant operations outside the United States, may lose
value because of adverse political, social, economic or market developments in the countries or regions in which the issuers operate.
These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies
of other countries. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States.
Investments outside the United States may also be subject to different accounting practices and different regulatory, legal and
reporting standards, and may be more difficult to value, than those in the United States. In addition, the value of investments
outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further,
there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside
the United States may be heightened in connection with investments in emerging markets.

Management — The investment adviser to the
fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses
employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value
or its investment results to lag relevant benchmarks or other funds with similar objectives.

Your investment in the fund is not a bank deposit and is
not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. You
should consider how this fund fits into your overall investment program.

The Income Fund of America / Prospectus  4





Investment results

The following bar chart shows how the fund’s investment
results have varied from year to year, and the following table shows how the fund’s average annual total returns for various
periods compare with different broad measures of market results. This information provides some indication of the risks of investing
in the fund. The Barclays U.S. Aggregate Index is a gauge of the U.S. investment-grade bond market and reflects a portion of the
fixed-income securities in which the fund may invest. The Lipper Income Funds Index includes the fund and other funds that disclose
investment objectives and/or strategies reasonably comparable to those of the fund. Past investment results (before and after taxes)
are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by
visiting americanfunds.com.







The Income Fund of America / Prospectus  5







|Average annual total returns
        For the periods ended December 31, 2013 (with maximum
        sales charge):
|-----------------------------------------------------------------------------------------------------------------
|Share class                                                                                                      
|A − Before taxes                                                                                                 
|− After taxes on distributions                                                                                   
|− After taxes on distributions and sale of fund shares                                                           



|Share classes (before taxes) | Inception date | 1 year | 5 years | 10 years | Lifetime
|---------------------------- | -------------- | ------ | ------- | -------- | --------
|B                            | 3/15/2000      | 12.33% | 13.16%  | 6.63%    | 7.60%   
|C                            | 3/15/2001      | 16.27  | 13.35   | 6.41     | 6.80    
|F-1                          | 3/15/2001      | 18.09  | 14.21   | 7.22     | 7.44    
|F-2                          | 8/1/2008       | 18.41  | 14.49   | N/A      | 8.57    
|529-A                        | 2/15/2002      | 11.32  | 12.83   | 6.55     | 7.13    
|529-B                        | 2/19/2002      | 12.18  | 13.04   | 6.48     | 7.14    
|529-C                        | 2/19/2002      | 16.20  | 13.29   | 6.34     | 6.88    
|529-E                        | 2/25/2002      | 17.81  | 13.87   | 6.88     | 7.33    
|529-F-1                      | 9/17/2002      | 18.38  | 14.43   | 7.37     | 8.92    
|R-1                          | 6/17/2002      | 17.22  | 13.35   | 6.39     | 6.92    
|R-2                          | 5/31/2002      | 17.34  | 13.34   | 6.38     | 6.63    
|R-3                          | 6/4/2002       | 17.76  | 13.86   | 6.87     | 7.24    
|R-4                          | 6/27/2002      | 18.15  | 14.21   | 7.20     | 8.00    
|R-5                          | 5/15/2002      | 18.48  | 14.55   | 7.52     | 7.73    
|R-6                          | 5/1/2009       | 18.53  | N/A     | N/A      | 16.32   



|Indexes                                                                                                                                         | 1
    year | 5
    years | 10
    years | Lifetime(from Class A inception)
|----------------------------------------------------------------------------------------------------------------------------------------------- | ---------- | ----------- | ------------ | --------------------------------
|S&P 500 Index (reflects no deductions for sales charges,
    
    account fees, expenses or U.S. federal income taxes)                          | 32.37%     | 17.93%      | 7.40%        | 11.01%                          
|Barclays U.S. Aggregate Index (reflects no deductions for
    sales charges, account fees, expenses or U.S. federal income taxes)               | –2.02      | 4.44        | 4.55         | N/A                             
|Lipper Income Funds Index (reflects no deductions for sales
    charges, account fees or U.S. federal income taxes)                             | 9.67       | 10.40       | 5.46         | N/A                             
|Class A annualized 30-day yield at July 31, 2014: 2.69%
    (For current yield information, please call American FundsLine® at (800) 325-3590.)



After-tax returns are shown only for Class A shares; after-tax
returns for other share classes will vary. After-tax returns are calculated using the highest individual federal income tax rates
in effect during each year of the periods shown and do not reflect the impact of state and local taxes. Your actual after-tax returns
depend on your individual tax situation and likely will differ from the results shown above. In addition, after-tax returns are
not relevant if you hold your fund shares through a tax-favored arrangement, such as a 401(k) plan, individual retirement account
(IRA) or 529 college savings plan.

Management

Investment adviserCapital Research and Management
CompanySM

Portfolio managersThe individuals primarily responsible
for the portfolio management of the fund are:

The Income Fund of America / Prospectus  6







|Portfolio
    manager/
    Fund title (if applicable) | Portfolio
    manager
    experience in this fund | Primary
    title
    with investment adviser             
|----------------------------------------------------- | ------------------------------------------------- | ----------------------------------------------------------
|Hilda
    L. Applbaum Vice Chairman of the Board      | 17
    years                                      | Senior
    Vice President – Capital World Investors       
|David
    C. Barclay President                        | 18
    years                                      | Senior
    Vice President – Capital Fixed Income Investors
|Dina
    N. Perry Senior Vice President               | 22
    years                                      | Senior
    Vice President – Capital World Investors       
|Andrew
    B. Suzman Senior Vice President            | 15
    years                                      | Senior
    Vice President – Capital World Investors       
|Joanna
    F. Jonsson Vice President                  | 11
    years                                      | Senior
    Vice President – Capital World Investors       
|John
    H. Smet Vice President                       | 22
    years                                      | Senior
    Vice President – Capital Fixed Income Investors
|Steven
    T. Watson Vice President                   | 11
    years                                      | Senior
    Vice President – Capital World Investors       
|David
    A. Daigle                                   | 8
    years                                       | Senior
    Vice President – Capital Fixed Income Investors
|James
    R. Mulally                                  | 8
    years                                       | Senior
    Vice President – Capital Fixed Income Investors



Purchase and sale of fund shares

The minimum amount to establish an account for all share
classes is $250 and the minimum to add to an account is $50. For a payroll deduction retirement plan account, payroll deduction
savings plan account or employer-sponsored 529 account, the minimum is $25 to establish or add to an account.

If you are a retail investor, you may sell (redeem) shares
through your dealer or financial advisor or by writing to American Funds Service Company®at P.O. Box 6007,
Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds
Service Company at (888) 421-4351; or accessing our website at americanfunds.com. Please contact your plan administrator
or recordkeeper to sell (redeem) shares from your retirement plan.

Tax information

Dividends and capital gain distributions you receive from
the fund are subject to federal income taxes and may also be subject to state and local taxes, unless you are tax-exempt or your
account is tax-favored.

Payments to broker-dealers and other financial intermediaries

If you purchase shares of the fund through a broker-dealer
or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary
for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer
or other intermediary and your individual financial advisor to recommend the fund over another investment. Ask your individual
financial advisor or visit your financial intermediary’s website for more information.



The Income Fund of America / Prospectus  7





Investment objectives, strategies
and risks

The fund’s investment objectives are to provide you
with current income while secondarily striving for capital growth. While it has no present intention to do so, the fund’s
board may change the fund’s investment objectives without shareholder approval upon 60 days’ written notice to shareholders.
Normally the fund invests primarily in income-producing securities. These include equity securities, such as dividend-paying common
stocks, and debt securities, such as interest-paying bonds.

Generally at least 60% of the fund’s assets will be
invested in common stocks and other equity-type securities. However, the composition of the fund’s investments in equity,
debt and cash or money market instruments may vary substantially depending on various factors, including market conditions. The
fund may also invest up to 25% of its assets in equity securities of issuers domiciled outside the United States, including issuers
in developing countries. In addition, the fund may invest up to 20% of its assets in lower quality, higher yielding nonconvertible
debt securities (rated Ba1 and BB+ or below by Nationally Recognized Statistical Rating Organizations designated by the fund’s
investment adviser or unrated but determined to be of equivalent quality by the fund’s investment adviser); such securities
are sometimes referred to as “junk bonds.” The fund may also invest up to 10% of its assets in debt securities of issuers
domiciled outside the United States; however, these securities must be denominated in U.S. dollars.

The fund may also hold cash or money market instruments,
including commercial paper and short-term securities issued by the U.S. government, its agencies and instrumentalities. The percentage
of the fund invested in such holdings varies and depends on various factors, including market conditions and purchases and redemptions
of fund shares. For temporary defensive purposes, the fund may invest without limitation in such instruments. The investment adviser
may determine that it is appropriate to invest a substantial portion of the fund’s assets in such instruments in response
to certain circumstances, such as periods of market turmoil. A larger percentage of such holdings could moderate the fund’s
investment results in a period of rising market prices. Alternatively, a larger percentage of such holdings could reduce the magnitude
of the fund’s loss in a period of falling market prices and provide liquidity to make additional investments or to meet
redemptions.

The following are certain risks associated with the
fund’s investment strategies.

Market conditions — The prices of,
and the income generated by, the common stocks and other securities held by the fund may decline – sometimes rapidly or
unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries;
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.

Issuer risks — The values of, and
the income generated by, securities held by the fund may also decline in response to various factors directly related to the issuers
of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic
initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

The Income Fund of America / Prospectus  8





Investing in income-oriented stocks —
Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available for dividend
payments at, the companies in which the fund invests.

Investing in debt instruments —
The prices of, and the income generated by, bonds and other 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.

Rising interest rates will generally cause the prices
of bonds and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security
before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer
maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than shorter
maturity debt securities.

Bonds and other 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. Lower quality debt securities generally
have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk
is gauged, in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions
of the rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s
investment adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and
default risks.

Investing in lower rated bonds —
Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default
or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market
prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly
in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Investing outside the United States —
Securities of issuers domiciled outside the United States, or with significant operations outside the United States, may lose
value because of adverse political, social, economic or market developments in the countries or regions in which the issuers operate.
These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies
of other countries. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States.
Investments outside the United States may also be subject to different accounting practices and different regulatory, legal and
reporting standards, and may be more difficult to value, than those in the United States. In addition, the value of investments
outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further,
there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside
the United States may be heightened in connection with investments in emerging markets.

Investing in emerging markets —
Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the

The Income Fund of America / Prospectus  9





securities markets of developed countries. For instance,
developing countries may have less developed legal and accounting systems than those in developed countries. The governments of
these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions
on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could
adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries
that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and
have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid,
and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Additionally,
there may be increased settlement risks for transactions in local securities.

The fund’s investment adviser attempts to reduce these
risks through diversification of the portfolio and ongoing credit analysis, as well as by monitoring economic and legislative developments,
but there can be no assurance that it will be successful at doing so.

Management — The investment adviser
to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and
analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to
lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

In addition to the investment strategies described above,
the fund has other investment practices that are described in the statement of additional information, which includes a description
of certain risks related to the fund’s investment strategies and other investment practices. The fund’s investment
results will depend on the ability of the fund’s investment adviser to navigate the risks discussed above as well as those
described in the statement of additional information.

Fund comparative indexes The investment results table
in this prospectus shows how the fund’s average annual total returns compare with various broad measures of market results.
The S&P 500 Index is a market capitalization-weighted index based on the average weighted results of 500 widely held common
stocks. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect
of sales charges, commissions, account fees, expenses or U.S. federal income taxes. The Barclays U.S. Aggregate Index represents
the U.S. investment-grade fixed-rate bond market. This index is unmanaged, and its results include reinvested dividends and/or
distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
The Lipper Income Funds Index is an equally weighted index of funds that normally seek a high level of current income through investing
in income-producing stocks, bonds and money market instruments. The results of the underlying funds in the index include the reinvestment
of dividends and capital gain distributions, as well as brokerage commissions paid by the funds for portfolio transactions and
other fund expenses, but do not reflect the effect of sales charges, account fees or U.S. federal income taxes. Neither the Barclays
Index nor the Lipper Index was in existence when Capital Research and Management Company became the fund’s investment adviser;
therefore, lifetime results are not shown.

The Income Fund of America / Prospectus  10





Fund results All fund results in this prospectus
reflect the reinvestment of dividends and capital gain distributions, if any. Unless otherwise noted, fund results reflect any
fee waivers and/or expense reimbursements in effect during the periods presented.

Management and organization

Investment adviserCapital Research and Management
Company, an experienced investment management organization founded in 1931, serves as the investment adviser to the fund and other
funds, including the American Funds. Capital Research and Management Company is a wholly owned subsidiary of The Capital Group
Companies, Inc. and is located at 333 South Hope Street, Los Angeles, California 90071. Capital Research and Management
Company manages the investment portfolio and business affairs of the fund. The total management fee paid by the fund, as a percentage
of average net assets, for the previous fiscal year appears in the Annual Fund Operating Expenses table under “Fees and expenses
of the fund.” As described more fully in the fund’s statement of additional information, the management fee is based
on the daily net assets of the fund and the fund’s monthly gross investment income. A discussion regarding the basis for
approval of the fund’s Investment Advisory and Service Agreement by the fund’s board of trustees is contained in the
fund’s semi-annual report to shareholders for the fiscal period ended January 31, 2014.

Capital Research and Management Company manages equity assets
through three equity investment divisions and fixed-income assets through its fixed-income investment division, Capital Fixed Income
Investors. The three equity investment divisions — Capital World Investors, Capital Research Global Investors and Capital
International Investors — make investment decisions independently of one another.

The equity investment divisions may, in the future, be incorporated
as wholly owned subsidiaries of Capital Research and Management Company. In that event, Capital Research and Management Company
would continue to be the investment adviser, and day-to-day investment management of equity assets would continue to be carried
out through one or more of these subsidiaries. Although not currently contemplated, Capital Research and Management Company could
incorporate its fixed-income investment division in the future and engage it to provide day-to-day investment management of fixed-income
assets. Capital Research and Management Company and each of the funds it advises have received an exemptive order from the U.S.
Securities and Exchange Commission that allows Capital Research and Management Company to use, upon approval of the fund’s
board, its management subsidiaries and affiliates to provide day-to-day investment management services to the fund, including making
changes to the management subsidiaries and affiliates providing such services. The fund’s shareholders have approved this
arrangement; however, there is no assurance that Capital Research and Management Company will incorporate its investment divisions
or exercise any authority granted to it under the exemptive order.

Portfolio holdingsPortfolio holdings information
for the fund is available on the American Funds website at americanfunds.com. A description of the fund’s policies and procedures
regarding disclosure of information about its portfolio holdings is available in the statement of additional information.



The Income Fund of America / Prospectus  11





The Capital SystemSM
Capital Research and Management Company uses a system of multiple portfolio managers in managing mutual fund assets. Under this
approach, the portfolio of a fund is divided into segments managed by individual managers who decide how their respective segments
will be invested. In addition, Capital Research and Management Company’s investment analysts may make investment decisions
with respect to a portion of a fund’s portfolio. Investment decisions are subject to a fund’s objective(s), policies
and restrictions and the oversight of the appropriate investment-related committees of Capital Research and Management Company
and its investment divisions. The table below shows the investment experience and role in management of the fund for each of the
fund’s primary portfolio managers.

|Portfolio
    manager | Investment
    experience                                                                                            | Experience
    in this fund                                                                           | Role
    in
    management
    of the fund    
|--------------------- | -------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ----------------------------------------------
|Hilda
    L. Applbaum | Investment
    professional for 28 years in total;20 years with Capital Research and Management Company or affiliate | 17 years
    (plus 3 years of
    prior experience
    as an
    investment analyst
    for the fund) | Serves
    as an equity portfolio manager     
|David
    C. Barclay  | Investment
    professional for 33 years in total;26 years with Capital Research and Management Company or affiliate | 18 years                                                                                              | Serves
    as a fixed-income portfolio manager
|Dina
    N. Perry     | Investment
    professional for 37 years in total;23 years with Capital Research and Management Company or affiliate | 22 years                                                                                              | Serves
    as an equity portfolio manager     
|Andrew
    B. Suzman  | Investment
    professional for 21 years, all with Capital Research and Management Company or affiliate              | 15 years
    (plus 4 years of
    prior experience
    as an
    investment analyst
    for the fund) | Serves
    as an equity portfolio manager     
|Joanna
    F. Jonsson | Investment
    professional for 25 years in total;24 years with Capital Research and Management Company or affiliate | 11 years
    (plus 9 years of
    prior experience
    as an
    investment analyst
    for the fund) | Serves
    as an equity portfolio manager     

The Income Fund of America / Prospectus  12







|Portfolio
    manager | Investment
    experience                                                                                            | Experience
    in this fund                                                                           | Role
    in
    management
    of the fund    
|--------------------- | -------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------- | ----------------------------------------------
|John
    H. Smet      | Investment
    professional for 32 years in total;31 years with Capital Research and Management Company or affiliate | 22
    years                                                                                          | Serves
    as a fixed-income portfolio manager
|Steven
    T. Watson  | Investment
    professional for 27 years in total;25 years with Capital Research and Management Company or affiliate | 11 years
    (plus 6 years of
    prior experience
    as an
    investment analyst
    for the fund) | Serves
    as an equity portfolio manager     
|David
    A. Daigle   | Investment
    professional for 20 years, all with Capital Research and Management Company or affiliate              | 8 years
    (plus 11 years of
    prior experience
    as an
    investment analyst
    for the fund) | Serves
    as a fixed-income portfolio manager
|James
    R. Mulally  | Investment
    professional for 39 years in total;34 years with Capital Research and Management Company or affiliate | 8 years                                                                                               | Serves
    as a fixed-income portfolio manager

Information regarding the portfolio managers’ compensation,
their ownership of securities in the fund and other accounts they manage is in the statement of additional information.



The Income Fund of America / Prospectus  13





Certain privileges and/or services described on the following
pages of this prospectus and in the statement of additional information may not be available to you, depending on your investment
dealer or retirement plan recordkeeper. Please see your financial advisor, investment dealer or retirement plan recordkeeper for
more information.

Shareholder information

Shareholder servicesAmerican Funds Service Company,
the fund’s transfer agent, offers a wide range of services that you can use to alter your investment program should your
needs or circumstances change. These services may be terminated or modified at any time upon 60 days’ written notice.





A more detailed description of policies and services
is included in the fund’s statement of additional information and the owner’s guide sent to new American Funds shareholders
entitled Welcome. Class 529 shareholders should also refer to the applicable program description for information
on policies and services relating specifically to their account(s).These documents are available by writing to or calling
American Funds Service Company.



The Income Fund of America / Prospectus  14





Unless otherwise noted, references to Class A, B, C or
F-1 shares on the following pages also refer to the corresponding Class 529-A, 529-B, 529-C or 529-F-1 shares. Unless otherwise
noted, references to Class F shares refer to both Class F-1 and F-2 shares and references to Class R shares refer to Class R-1,
R-2, R-2E, R-3, R-4, R-5 and R-6 shares.

Purchase, exchange and sale of shares

The fund’s transfer agent, on behalf of the fund
and American Funds Distributors,®the fund’s distributor, is required by law to obtain certain personal information
from you or any other person(s) acting on your behalf in order to verify your or such person’s identity. If you do not provide
the information, the transfer agent may not be able to open your account. If the transfer agent is unable to verify your identity
or that of any other person(s) authorized to act on your behalf, or believes it has identified potentially criminal activity, the
fund and American Funds Distributors reserve the right to close your account or take such other action they deem reasonable or
required by law.

When purchasing shares, you should designate the fund or
funds in which you wish to invest. Subject to the exception below, if no fund is designated, your money will be held uninvested
(without liability to the transfer agent for loss of income or appreciation pending receipt of proper instructions) until investment
instructions are received, but for no more than three business days. Your investment will be made at the net asset value (plus
any applicable sales charge, in the case of Class A shares) next determined after investment instructions are received and accepted
by the transfer agent. If investment instructions are not received, your money will be invested in Class A shares of American Funds
Money Market Fund® on the third business day after receipt of your investment.

If the amount of your cash investment is $10,000 or less,
no fund is designated, and you made a cash investment (excluding exchanges) within the last 16 months, your money will be invested
in the same proportion and in the same fund or funds and in the same class of shares in which your last cash investment was made.

Different procedures may apply to certain employer-sponsored
arrangements, including, but not limited to, SEPs and SIMPLE IRAs.

Valuing sharesThe net asset value of each share
class of the fund is the value of a single share of that class. The fund calculates the net asset value each day the New York Stock
Exchange is open for trading as of approximately 4 p.m. New York time, the normal close of regular trading. If, for example,
the New York Stock Exchange closes at 1 p.m. New York time, the fund’s net asset value would still be determined as of 4
p.m. New York time. In this example, portfolio securities traded on the New York Stock Exchange would be valued at their closing
prices unless the investment adviser determines that a “fair value” adjustment is appropriate due to subsequent events.
Assets are valued primarily on the basis of market quotations. However, the fund has adopted procedures for making fair value determinations
if market quotations are not readily available or are not considered reliable. For example, if events occur between the close of
markets outside the United States and the close of regular trading on the New York Stock Exchange that, in the opinion of
the investment adviser, materially affect the value of any of the fund’s securities that trade principally in those international
markets, those securities will be valued in accordance with fair value procedures. Use of these procedures is intended to

The Income Fund of America / Prospectus  15





result in more appropriate net asset values. In addition,
such use is intended to reduce potential arbitrage opportunities otherwise available to short-term investors.

Because the fund may hold securities that are listed primarily
on foreign exchanges that trade on weekends or days when the fund does not price its shares, the values of securities held in the
fund may change on days when you will not be able to purchase or redeem fund shares.

Your shares will be purchased at the net asset value (plus
any applicable sales charge, in the case of Class A shares) or sold at the net asset value next determined after American Funds
Service Company receives your request, provided that your request contains all information and legal documentation necessary to
process the transaction. A contingent deferred sales charge may apply at the time you sell certain Class A, B and C shares.

Purchase of Class A and C sharesYou may generally
open an account and purchase Class A and C shares by contacting any financial advisor (who may impose transaction charges in addition
to those described in this prospectus) authorized to sell the fund’s shares. You may purchase additional shares in various
ways, including through your financial advisor and by mail, telephone, the Internet and bank wire.

Class B sharesClass B and 529-B shares may not be
purchased or acquired, except by exchange from Class B or 529-B shares of another fund in the American Funds family. Any other
investment received by the fund that is intended for Class B or 529-B shares will instead be invested in Class A or 529-A
shares and will be subject to any applicable sales charges.

Shareholders with investments in Class B and 529-B shares
may continue to hold such shares until they convert to Class A or 529-A shares. However, no additional investments will be accepted
in Class B or 529-B shares. Dividends and capital gain distributions may continue to be reinvested in Class B or 529-B shares until
their conversion dates. In addition, shareholders invested in Class B or 529-B shares will be able to exchange those shares for
Class B or 529-B shares of other American Funds offering Class B or 529-B shares until they convert.

Automatic conversion of Class B and C sharesClass B
shares automatically convert to Class A shares in the month of the eight-year anniversary of the purchase date. Class C
shares automatically convert to Class F-1 shares in the month of the 10-year anniversary of the purchase date; however, Class 529-C
shares will not convert to Class 529-F-1 shares. The Internal Revenue Service currently takes the position that these automatic
conversions are not taxable. Should its position change, the automatic conversion feature may be suspended. If this were to happen,
you would have the option of converting your Class B, 529-B or C shares to the respective share classes at the anniversary
dates described above. This exchange would be based on the relative net asset values of the two classes in question, without the
imposition of a sales charge or fee, but you might face certain tax consequences as a result.

Purchase of Class F sharesYou may generally open
an account and purchase Class F shares only through fee-based programs of investment dealers that have special agreements
with the fund’s distributor, through certain registered investment advisors and through other intermediaries approved by
the fund’s distributor. These intermediaries typically charge ongoing fees for services they

The Income Fund of America / Prospectus  16





provide. Intermediary fees are not paid by the fund and
normally range from .75% to 1.50% of assets annually, depending on the services offered.

Purchase of Class 529 sharesClass 529 shares may
be purchased only through an account established with a 529 college savings plan managed by the American Funds organization.
You may open this type of account and purchase Class 529 shares by contacting any financial advisor (who may impose transaction
charges in addition to those described in this prospectus) authorized to sell such an account. You may purchase additional shares
in various ways, including through your financial advisor and by mail, telephone, the Internet and bank wire.

Class 529-E shares may be purchased only by employees participating
through an eligible employer plan.

Accounts holding Class 529 shares are subject to a $10 account
setup fee and an annual $10 account maintenance fee. These fees are waived until further notice.

Investors residing in any state may purchase Class 529 shares
through an account established with a 529 college savings plan managed by the American Funds organization. Class 529-A, 529-B,
529-C and 529-F-1 shares are structured similarly to the corresponding Class A, B, C and F-1 shares. For example, the same initial
sales charges apply to Class 529-A shares as to Class A shares.

Purchase of Class R shares Class R shares are generally
available only to retirement plans established under Internal Revenue Code Sections 401(a), 403(b) or 457, and to nonqualified
deferred compensation plans and certain voluntary employee benefit association and post-retirement benefit plans. Class R
shares also are generally available only to retirement plans where plan level or omnibus accounts are held on the books of the
fund. Class R-5 and R-6 shares are generally available only to fee-based programs or through retirement plan intermediaries.
In addition, Class R-5 and R-6 shares are available for investment by other registered investment companies approved by the
fund’s investment adviser or distributor. Class R shares generally are not available to retail nonretirement accounts,
traditional and Roth individual retirement accounts (IRAs), Coverdell Education Savings Accounts, SEPs, SARSEPs, SIMPLE IRAs and
529 college savings plans.

Purchases by employer-sponsored retirement plansEligible
retirement plans generally may open an account and purchase Class A or R shares by contacting any investment dealer (who
may impose transaction charges in addition to those described in this prospectus) authorized to sell these classes of the fund’s
shares. Some or all R share classes may not be available through certain investment dealers. Additional shares may be purchased
through a plan’s administrator or recordkeeper.

Class A shares are generally not available for retirement
plans using the PlanPremier® or Recordkeeper Direct® recordkeeping programs.

Employer-sponsored retirement plans that are eligible to
purchase Class R shares may instead purchase Class A shares and pay the applicable Class A sales charge, provided
that their recordkeepers can properly apply a sales charge on plan investments. These plans are not eligible to make initial purchases
of $1 million or more in Class A shares and thereby invest in Class A shares without a sales charge, nor are they
eligible to establish a statement of intention that qualifies them to

The Income Fund of America / Prospectus  17





purchase Class A shares without a sales charge. More
information about statements of intention can be found under “Sales charge reductions and waivers” in this prospectus.
Plans investing in Class A shares with a sales charge may purchase additional Class A shares in accordance with the sales
charge table in this prospectus.

Employer-sponsored retirement plans that invested in Class
A shares without any sales charge before April 1, 2004, and that continue to meet the eligibility requirements in effect as of
that date for purchasing Class A shares at net asset value, may continue to purchase Class A shares without any initial or contingent
deferred sales charge.

A 403(b) plan may not invest in Class A or C shares unless
it was invested in Class A or C shares before January 1, 2009.

Purchase minimums and maximumsPurchase minimums
described in this prospectus may be waived in certain cases. In addition, the fund reserves the right to redeem the shares of any
shareholder for their then current net asset value per share if the shareholder’s aggregate investment in the fund falls
below the fund’s minimum initial investment amount. See the statement of additional information for details.

For accounts established with an automatic investment plan,
the initial purchase minimum of $250 may be waived if the purchases (including purchases through exchanges from another fund) made
under the plan are sufficient to reach $250 within five months of account establishment.

The effective purchase maximums for Class 529-A, 529-C,
529-E and 529-F-1 shares will reflect the maximum applicable contribution limits under state law. See the applicable program description
for more information.

The purchase maximum for Class C shares is $500,000 per
transaction. In addition, if you have significant American Funds holdings, you may not be eligible to invest in Class C or
529-C shares. Specifically, you may not purchase Class C or 529-C shares if you are eligible to purchase Class A or 529-A
shares at the $1 million or more sales charge discount rate (that is, at net asset value). See “Sales charge reductions
and waivers” in this prospectus and the statement of additional information for more details regarding sales charge discounts.



The Income Fund of America / Prospectus  18





ExchangeGenerally, you may exchange your shares
for shares of the same class of other American Funds without a sales charge. Class A, C or F-1 shares may generally be exchanged
for the corresponding 529 share class without a sales charge. Class B shares may not be exchanged for Class 529-B shares. Exchanges
from Class A, C or F-1 shares to the corresponding 529 share class, particularly in the case of Uniform Gifts to Minors Act or
Uniform Transfers to Minors Act custodial accounts, may result in significant legal and tax consequences, as described in the applicable
program description. Please consult your financial advisor before making such an exchange.

Exchanges of shares from American Funds Money Market Fund
initially purchased without a sales charge generally will be subject to the appropriate sales charge. For purposes of computing
the contingent deferred sales charge on Class B and C shares, the length of time you have owned your shares will be measured from
the first day of the month in which shares were purchased and will not be affected by any permitted exchange.

Exchanges have the same tax consequences as ordinary sales
and purchases. For example, to the extent you exchange shares held in a taxable account that are worth more now than what you paid
for them, the gain will be subject to taxation.

See “Transactions by telephone, fax or the Internet”
in the section “How to sell shares” of this prospectus for information regarding electronic exchanges.

Please see the statement of additional information for details
and limitations on moving investments in certain share classes to different share classes and on moving investments held in certain
accounts to different accounts.



The Income Fund of America / Prospectus  19





How to sell shares

You may sell (redeem) shares in any of the following ways:

Employer-sponsored retirement plans

Shares held in eligible retirement plans may be sold
through the plan’s administrator or recordkeeper.

Through your dealer or financial advisor (certain charges
may apply)

| | · | Shares held for you in your dealer’s name must be sold through the dealer.
| | - | --------------------------------------------------------------------------

| | · | Generally, Class F shares must be sold through intermediaries such as dealers or financial advisors.
| | - | ----------------------------------------------------------------------------------------------------

Writing to American Funds Service Company

| | · | Requests must be signed by the registered shareholder(s).
| | - | ---------------------------------------------------------

| | · | A signature guarantee is required if the redemption is:
| | - | -------------------------------------------------------

| | — | more than $125,000;
| | - | -------------------

| | — | made payable to someone other than the registered shareholder(s); or
| | - | --------------------------------------------------------------------

| | — | sent to an address other than the address of record or to an address of record that has been changed within the previous 10
days.
| | - | ---------------------------------------------------------------------------------------------------------------------------------

| | · | American Funds Service Company reserves the right to require signature guarantee(s) on any redemption.
| | - | ------------------------------------------------------------------------------------------------------

| | · | Additional documentation may be required for redemptions of shares held in corporate, partnership or fiduciary accounts.
| | - | ------------------------------------------------------------------------------------------------------------------------

Telephoning or faxing American Funds Service Company or
using the Internet

| | · | Redemptions by telephone, fax or the Internet (including American FundsLine and americanfunds.com) are limited to $125,000
per American Funds shareholder each day.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Checks must be made payable to the registered shareholder.
| | - | ----------------------------------------------------------

| | · | Checks must be mailed to an address of record that has been used with the account for at least 10 days.
| | - | -------------------------------------------------------------------------------------------------------

If you recently purchased shares and subsequently request
a redemption of those shares, you will receive proceeds from the redemption once a sufficient period of time has passed to reasonably
ensure that checks or drafts, including certified or cashier’s checks, for the shares purchased have cleared (normally 10
business days).

Although payment of redemptions normally will be in cash,
the fund’s declaration of trust permits payment of the redemption price wholly or partly with portfolio securities or other
fund assets under conditions and circumstances determined by the fund’s board of trustees.

Transactions by telephone, fax or the InternetGenerally,
you are automatically eligible to redeem or exchange shares by telephone, fax or the Internet, unless you notify us in writing
that you do not want any or all of these services. You may reinstate these services at any time.

Unless you decide not to have telephone, fax or Internet
services on your account(s), you agree to hold the fund, American Funds Service Company, any of its affiliates or mutual funds
managed by such affiliates, and each of their respective directors, trustees, officers, employees and agents harmless from any
losses,

The Income Fund of America / Prospectus  20





expenses, costs or liabilities (including attorney fees)
that may be incurred in connection with the exercise of these privileges, provided that American Funds Service Company employs
reasonable procedures to confirm that the instructions received from any person with appropriate account information are genuine.
If reasonable procedures are not employed, American Funds Service Company and/or the fund may be liable for losses due to unauthorized
or fraudulent instructions.

Frequent trading of fund sharesThe fund and American
Funds Distributors reserve the right to reject any purchase order for any reason. The fund is not designed to serve as a vehicle
for frequent trading. Frequent trading of fund shares may lead to increased costs to the fund and less efficient management of
the fund’s portfolio, potentially resulting in dilution of the value of the shares held by long-term shareholders. Accordingly,
purchases, including those that are part of exchange activity, that the fund or American Funds Distributors has determined could
involve actual or potential harm to the fund may be rejected.

The fund, through its transfer agent, American Funds Service
Company, maintains surveillance procedures that are designed to detect frequent trading in fund shares. Under these procedures,
various analytics are used to evaluate factors that may be indicative of frequent trading. For example, transactions in fund shares
that exceed certain monetary thresholds may be scrutinized. American Funds Service Company also may review transactions that occur
close in time to other transactions in the same account or in multiple accounts under common ownership or influence. Trading activity
that is identified through these procedures or as a result of any other information available to the fund will be evaluated to
determine whether such activity might constitute frequent trading. These procedures may be modified from time to time as appropriate
to improve the detection of frequent trading, to facilitate monitoring for frequent trading in particular retirement plans or other
accounts and to comply with applicable laws.

In addition to the fund’s broad ability to restrict
potentially harmful trading as described above, the fund’s board of trustees has adopted a “purchase blocking policy”
under which any shareholder redeeming shares having a value of $5,000 or more from a fund will be precluded from investing in that
fund for 30 calendar days after the redemption transaction. This policy also applies to redemptions and purchases that are part
of exchange transactions. Under the fund’s purchase blocking policy, certain purchases will not be prevented and certain
redemptions will not trigger a purchase block, such as:

| | · | purchases and redemptions of shares having a value of less than $5,000;
| | - | -----------------------------------------------------------------------

| | · | transactions in Class 529 shares;
| | - | ---------------------------------

| | · | purchases and redemptions by investment companies managed or sponsored by the fund’s investment adviser or its affiliates,
including reallocations and transactions allowing the investment company to meet its redemptions and purchases;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | retirement plan contributions, loans and distributions (including hardship withdrawals) identified as such on the retirement
plan recordkeeper’s system;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | purchase transactions involving in-kind transfers of shares of the fund, rollovers, Roth IRA conversions and IRA recharacterizations,
where the entity maintaining
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Income Fund of America / Prospectus  21





the shareholder account is able to identify the transaction
as one of these types of transactions; and

| | · | systematic redemptions and purchases, where the entity maintaining the shareholder account is able to identify the transaction
as a systematic redemption or purchase.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

Generally, purchases and redemptions will not be considered
“systematic” unless the transaction is prescheduled for a specific date.

The fund reserves the right to waive the purchase blocking
policy with respect to specific shareholder accounts in those instances where American Funds Service Company determines that its
surveillance procedures are adequate to detect frequent trading in fund shares.

American Funds Service Company will work with certain intermediaries
(such as investment dealers holding shareholder accounts in street name, retirement plan recordkeepers, insurance company separate
accounts and bank trust companies) to apply their own procedures, provided that American Funds Service Company believes the intermediary’s
procedures are reasonably designed to enforce the frequent trading policies of the fund. You should refer to disclosures provided
by the intermediaries with which you have an account to determine the specific trading restrictions that apply to you.

If American Funds Service Company identifies any activity
that may constitute frequent trading, it reserves the right to contact the intermediary and request that the intermediary either
provide information regarding an account owner’s transactions or restrict the account owner’s trading. If American
Funds Service Company is not satisfied that the intermediary has taken appropriate action, American Funds Service Company may terminate
the intermediary’s ability to transact in fund shares.

There is no guarantee that all instances of frequent trading
in fund shares will be prevented.

Notwithstanding the fund’s surveillance procedures
and purchase blocking policy described above, all transactions in fund shares remain subject to the right of the fund, American
Funds Distributors and American Funds Service Company to restrict potentially abusive trading generally, including the types of
transactions described above that will not be prevented or trigger a block under the purchase blocking policy. See the statement
of additional information for more information about how American Funds Service Company may address other potentially abusive trading
activity in the American Funds.



The Income Fund of America / Prospectus  22





Distributions and taxes

Dividends and distributionsThe fund intends to distribute
dividends to you, usually in March, June, September and December.

Capital gains, if any, are usually distributed in December.
When a dividend or capital gain is distributed, the net asset value per share is reduced by the amount of the payment.

You may elect to reinvest dividends and/or capital gain
distributions to purchase additional shares of this fund or other American Funds, or you may elect to receive them in cash. Dividends
and capital gain distributions for 529 share classes and retirement plan shareholders will be reinvested automatically.

Taxes on dividends and distributionsFor federal
tax purposes, dividends and distributions of short-term capital gains are taxable as ordinary income. The fund’s distributions
of net long-term capital gains are taxable as long-term capital gains. Any dividends or capital gain distributions you receive
from the fund will normally be taxable to you when made, regardless of whether you reinvest dividends or capital gain distributions
or receive them in cash.

Dividends and capital gain distributions that are automatically
reinvested in a tax-favored retirement or education savings account do not result in federal or state income tax at the time of
reinvestment.

Taxes on transactionsYour redemptions, including
exchanges, may result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment is the
difference between the cost of your shares, including any sales charges, and the amount you receive when you sell them.

Exchanges within a tax-favored retirement plan account will
not result in a capital gain or loss for federal or state income tax purposes. With limited exceptions, distributions from a retirement
plan account are taxable as ordinary income.

Shareholder feesFees borne directly by the fund
normally have the effect of reducing a shareholder’s taxable income on distributions. By contrast, fees paid directly to
advisors by a fund shareholder for ongoing advice are deductible for income tax purposes only to the extent that they (combined
with certain other qualifying expenses) exceed 2% of such shareholder’s adjusted gross income.

Please see your tax advisor for more information. Holders
of Class 529 shares should refer to the applicable program description for more information regarding the tax consequences of selling
Class 529 shares.



The Income Fund of America / Prospectus  23





Choosing a share class

The fund offers different classes of shares through this
prospectus. The services or share classes available to you may vary depending upon how you wish to purchase shares of the fund.

Each share class represents an investment in the same portfolio
of securities, but each class has its own sales charge and expense structure, allowing you to choose the class that best fits your
situation. When you purchase shares of the fund for an individual-type account, you should choose a share class. If none is
chosen, your investment will be made in Class A shares or, in the case of a 529 plan investment, Class 529-A shares.

Factors you should consider when choosing a class of shares
include:

| | · | how long you expect to own the shares;
| | - | --------------------------------------

| | · | how much you intend to invest;
| | - | ------------------------------

| | · | total expenses associated with owning shares of each class;
| | - | -----------------------------------------------------------

| | · | whether you qualify for any reduction or waiver of sales charges (for example, Class A or 529-A shares may be a less expensive
option over time, particularly if you qualify for a sales charge reduction or waiver);
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | whether you plan to take any distributions in the near future (for example, the contingent deferred sales charge will not be
waived if you sell your Class 529-B or 529-C shares to cover higher education expenses); and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | availability of share classes:
| | - | ------------------------------

| | — | Class B and 529-B shares may not be purchased or acquired except by exchange from Class B or 529-B shares of another fund in
the American Funds family;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | — | Class C shares are not available to retirement plans that do not currently invest in such shares and that are eligible to invest
in Class R shares, including retirement plans established under Internal Revenue Code Sections 401(a) (including 401(k) plans),
403(b) or 457;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | — | Class F and 529-F-1 shares are generally available only to fee-based programs of investment dealers that have special agreements
with the fund’s distributor, to certain registered investment advisors and to other intermediaries approved by the fund’s
distributor; and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | — | Class R shares are generally available only toretirement plans
established under Internal Revenue Code Sections 401(a) (including 401(k) plans), 403(b) or 457, and to nonqualified deferred compensation
plans and certain voluntary employee benefit association and post-retirement benefit plans.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Each investor’s financial considerations are different.
You should speak with your financial advisor to help you decide which share class is best for you.



The Income Fund of America / Prospectus  24





Sales charges

Class A sharesThe initial sales charge you pay each
time you buy Class A shares differs depending upon the amount you invest and may be reduced or eliminated for larger purchases
as indicated below. The “offering price,” the price you pay to buy shares, includes any applicable sales charge, which
will be deducted directly from your investment. Shares acquired through reinvestment of dividends or capital gain distributions
are not subject to an initial sales charge.

|                                                                 | Sales charge as a 
percentage of: |                   
|---------------------------------------------------------------- | --------------------------------- | ------------------
|Investment                                                       | Offering price                    | Net amountinvested
|Less than $25,000                                                | 5.75%                             | 6.10%             
|$25,000 but less than $50,000                                    | 5.00                              | 5.26              
|$50,000 but less than $100,000                                   | 4.50                              | 4.71              
|$100,000 but less than $250,000                                  | 3.50                              | 3.63              
|$250,000 but less than $500,000                                  | 2.50                              | 2.56              
|$500,000 but less than $750,000                                  | 2.00                              | 2.04              
|$750,000 but less than $1 million                                | 1.50                              | 1.52              
|$1 million or more and certain other investments described below | none                              | none              

The sales charge, expressed as a percentage of the offering
price or the net amount invested, may be higher or lower than the percentages described in the table above due to rounding. This
is because the dollar amount of the sales charge is determined by subtracting the net asset value of the shares purchased from
the offering price, which is calculated to two decimal places using standard rounding criteria. The impact of rounding will vary
with the size of the investment and the net asset value of the shares. Similarly, any contingent deferred sales charge paid by
you on investments in Class A shares may be higher or lower than the 1% charge described below due to rounding.



The Income Fund of America / Prospectus  25





Except as provided below, investments in Class A shares
of $1 million or more may be subject to a 1% contingent deferred sales charge if the shares are sold within one year of purchase.
The contingent deferred sales charge is based on the original purchase cost or the current market value of the shares being sold,
whichever is less.

Class A share purchases not subject to sales chargesThe
following investments are not subject to any initial or contingent deferred sales charge if American Funds Service Company is
properly notified of the nature of the investment:

| | · | investments made by accounts that are part of certain qualified fee-based programs and that purchased Class A shares before
the discontinuation of the relevant investment dealer’s load-waived Class A share program with the American Funds; and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | certain rollover investments from retirement plans to IRAs (see “Rollovers from retirement plans to IRAs” in this
prospectus for more information).
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------

The distributor may pay dealers a commission of up to 1%
on investments made in Class A shares with no initial sales charge. The fund may reimburse the distributor for these payments
through its plans of distribution (see “Plans of distribution” in this prospectus).

Transfers from certain 529 plans to plans managed by the
American Funds organization will be made with no sales charge. No commission will be paid to the dealer on such a transfer. Please
see the statement of additional information for more information.

Certain other investors may qualify to purchase shares without
a sales charge, such as employees of investment dealers and registered investment advisors authorized to sell American Funds and
employees of The Capital Group Companies, Inc. and its affiliates. Please see the statement of additional information for further
details.

Class B and C sharesFor Class B shares, a contingent
deferred sales charge may be applied to shares you sell within six years of the date you purchased the Class B shares, as shown
in the table below. The contingent deferred sales charge is eliminated six years after purchase.

|Contingent deferred sales charge on Class B shares
|--------------------------------------------------
|Year of redemption:                               
|Contingent deferred sales charge:                 

Class C shares are sold without any initial sales charge.
American Funds Distributors pays 1% of the amount invested to dealers who sell Class C shares. A contingent deferred sales charge
of 1% applies if Class C shares are sold within one year of purchase. The contingent deferred sales charge is eliminated one year
after purchase.

Any contingent deferred sales charge paid by you on sales
of Class B or C shares, expressed as a percentage of the applicable redemption amount, may be higher or lower than the percentages
described above due to rounding.

Class 529-E and Class F sharesClass 529-E and Class
F shares are sold without any initial or contingent deferred sales charge.

The Income Fund of America / Prospectus  26





Class R sharesClass R shares are sold without any
initial or contingent deferred sales charge. The distributor will pay dealers annually asset-based compensation of up to 1.00%
for sales of Class R-1 shares, up to .75% for Class R-2 shares, up to .60% for Class R-2E shares, up to .50% for Class R-3 shares
and up to .25% for Class R-4 shares. No dealer compensation is paid from fund assets on sales of Class R-5 or R-6 shares. The fund
may reimburse the distributor for these payments through its plans of distribution.

See “Plans of distribution” in this prospectus
for ongoing compensation paid to your dealer or financial advisor for all share classes.

Contingent deferred sales charges Shares acquired
through reinvestment of dividends or capital gain distributions are not subject to a contingent deferred sales charge. In addition,
the contingent deferred sales charge may be waived in certain circumstances. See “Contingent deferred sales charge waivers”
in the section “Sales charge reductions and waivers” of this prospectus. The contingent deferred sales charge is based
on the original purchase cost or the current market value of the shares being sold, whichever is less. For purposes of determining
the contingent deferred sales charge, if you sell only some of your shares, shares that are not subject to any contingent deferred
sales charge will be sold first, followed by shares that you have owned the longest.



The Income Fund of America / Prospectus  27





Sales charge reductions and waivers

To receive a reduction in your Class A initial sales
charge, you must let your financial advisor or American Funds Service Company know at the time you purchase shares that you qualify
for such a reduction. If you do not let your advisor or American Funds Service Company know that you are eligible for a reduction,
you may not receive the sales charge discount to which you are otherwise entitled. In order to determine your eligibility to
receive a sales charge discount, it may be necessary for you to provide your advisor or American Funds Service Company with information
and records (including account statements) of all relevant accounts invested in the American Funds.

In addition to the information in this prospectus, you
may obtain more information about share classes, sales charges and sales charge reductions and waivers through a link on the home
page of the American Funds website at americanfunds.com, from the statement of additional information or from your financial advisor.

Reducing your Class A initial sales chargeConsistent
with the policies described in this prospectus, you and your “immediate family” (your spouse — or equivalent,
if recognized under local law — and your children under the age of 21) may combine all of your American Funds investments
to reduce Class A sales charges. In addition, two or more retirement plans of an employer or an employer’s affiliates
may combine all of their American Funds investments to reduce Class A sales charges. Certain investments in the American Funds
Target Date Retirement Series,® American Funds Portfolio SeriesSMand American Funds College Target Date Series® may also be combined for this purpose. Please see the applicable series’
prospectus for further information. However, for this purpose, investments representing direct purchases of American Funds Money
Market Fund are excluded. Following are different ways that you may qualify for a reduced Class A sales charge:

Aggregating accountsTo receive a reduced Class
A sales charge, investments made by you and your immediate family (see above) may be aggregated if made for your own account(s)
and/or certain other accounts, such as:

| | · | trust accounts established by the above individuals (please see the statement of additional information for details regarding
aggregation of trust accounts where the person(s) who established the trust is/are deceased);
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | solely controlled business accounts; and
| | - | ----------------------------------------

| | · | single-participant retirement plans.
| | - | ------------------------------------

Investments made through employer-sponsored retirement
plan accounts will not be aggregated with individual-type accounts.

Concurrent purchasesYou may combine simultaneous
purchases (including, upon your request, purchases for gifts) of any class of shares of two or more American Funds (excluding American
Funds Money Market Fund) to qualify for a reduced Class A sales charge.

Rights of accumulationYou may take into account
your accumulated holdings in all share classes of the American Funds (excluding American Funds Money Market Fund) to determine
the initial sales charge you pay on each purchase of Class A shares. Subject to your investment dealer’s capabilities, your
accumulated

The Income Fund of America / Prospectus  28





holdings will be calculated as the higher of (a)
the current value of your existing holdings (as of the day prior to your additional American Funds investment) or (b) the
amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals.
Please see the statement of additional information for further details. You should retain any records necessary to substantiate
the historical amounts you have invested.

If you make a gift of shares, upon your request you
may purchase the shares at the sales charge discount allowed under rights of accumulation of all of your American Funds accounts.

Statement of intentionYou may reduce your
Class A sales charge by establishing a statement of intention. A statement of intention allows you to combine all purchases of
all share classes of the American Funds (excluding American Funds Money Market Fund) that you intend to make over a 13-month period
to determine the applicable sales charge; however, purchases made under a right of reinvestment, appreciation of your holdings,
and reinvested dividends and capital gains do not count as purchases made during the statement period. Your accumulated holdings
(as described and calculated under “Rights of accumulation” above) eligible to be aggregated as of the day immediately
before the start of the statement period may be credited toward satisfying the statement. A portion of your account may be held
in escrow to cover additional Class A sales charges that may be due if your total purchases over the statement period do not
qualify you for the applicable sales charge reduction. Employer-sponsored retirement plans may be restricted from establishing
statements of intention. See the discussion regarding employer-sponsored retirement plans under “Purchase, exchange and sale
of shares” in this prospectus for more information.

Right of reinvestmentIf you notify American Funds
Service Company prior to the time of reinvestment, you may reinvest proceeds from a redemption, dividend payment or capital gain
distribution without a sales charge in the same fund or other American Funds, provided that the reinvestment occurs within 90 days
after the date of the redemption, dividend payment or distribution and is made into the same account from which you redeemed the
shares or received the dividend payment or distribution. If the account has been closed, you may reinvest without a sales charge
if the new receiving account has the same registration as the closed account and the reinvestment is made within 90 days after
the date of redemption, dividend payment or distribution.

Proceeds from a Class B share redemption for which
a contingent deferred sales charge was paid will be reinvested in Class A shares without any initial sales charge. If you
redeem Class B shares without paying a contingent deferred sales charge, you may reinvest the proceeds in Class B shares
or purchase Class A shares. If you purchase Class A shares, you are responsible for paying any applicable Class A
sales charges. Proceeds from any other type of redemption and all dividend payments and capital gain distributions will be reinvested
in the same share class from which the original redemption, dividend payment or distribution was made. Any contingent deferred
sales charge on Class A or C shares will be credited to your account. Redemption proceeds of Class A shares representing direct
purchases in American Funds Money Market Fund that are reinvested in other American Funds will be subject to a sales charge.

The Income Fund of America / Prospectus  29





Proceeds will be reinvested at the next calculated net asset
value after your request is received by American Funds Service Company, provided that your request contains all information and
legal documentation necessary to process the transaction. For purposes of this “right of reinvestment policy,” automatic
transactions (including, for example, automatic purchases, withdrawals and payroll deductions) and ongoing retirement plan contributions
are not eligible for investment without a sales charge. You may not reinvest proceeds in the American Funds as described in this
paragraph if such proceeds are subject to a purchase block as described under “Frequent trading of fund shares” in
this prospectus. This paragraph does not apply to certain rollover investments as described under “Rollovers from retirement
plans to IRAs” in this prospectus.

Contingent deferred sales charge waiversThe contingent
deferred sales charge on Class A, B and C shares may be waived in the following cases:

| | · | permitted exchanges of shares, except if shares acquired by exchange are then redeemed within the period during which a contingent
deferred sales charge would apply to the initial shares purchased;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | tax-free returns of excess contributions to IRAs;
| | - | -------------------------------------------------

| | · | redemptions due to death or postpurchase disability of the shareholder (this generally excludes accounts registered in the
names of trusts and other entities);
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | for 529 share classes only, redemptions due to a beneficiary’s death, postpurchase disability or receipt of a scholarship
(to the extent of the scholarship award);
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | redemptions due to the complete termination of a trust upon the death of the trustor/grantor or beneficiary, but only if such
termination is specifically provided for in the trust document; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | the following types of transactions, if together they do not exceed 12% of the value of an account annually (see the statement
of additional information for further details about waivers regarding these types of transactions):
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | — | redemptions due to receiving required minimum distributions from retirement accounts upon reaching age 701⁄2 (required
minimum distributions that continue to be taken by the beneficiary(ies) after the account owner is deceased also qualify for a
waiver); and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | — | if you have established an automatic withdrawal plan, redemptions through such a plan (including any dividends and/or capital
gain distributions taken in cash).
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

To have your Class A, B or C contingent deferred sales charge
waived, you must inform your advisor or American Funds Service Company at the time you redeem shares that you qualify for such
a waiver.



The Income Fund of America / Prospectus  30





Rollovers from retirement plans
to IRAs

Assets from retirement plans may be invested in Class A, C
or F shares through an IRA rollover, subject to the other provisions of this prospectus. Class C shares are not available if the
assets are being rolled over from investments held in the American Funds Recordkeeper Direct and PlanPremier retirement plan recordkeeping
programs.

Rollovers to IRAs from retirement plans that are rolled into
Class A shares will be subject to applicable sales charges. The following rollovers to Class A shares will be made without
a sales charge:

| | · | rollovers to Capital Bank and Trust CompanySM IRAs
if the assets were invested in American Funds at the time of distribution;
| | - | -----------------------------------------------------------------------------------------------------------------------------

| | · | rollovers to IRAs from 403(b) plans with Capital Bank and Trust Company as custodian; and
| | - | -----------------------------------------------------------------------------------------

| | · | rollovers to Capital Bank and Trust Company IRAs from investments held in the American Funds Recordkeeper Direct and PlanPremier
retirement plan recordkeeping programs.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

IRA rollover assets that roll over without a sales charge
as described above will not be subject to a contingent deferred sales charge, and investment dealers will be compensated solely
with an annual service fee that begins to accrue immediately. All other rollovers invested in Class A shares, as well as future
contributions to the IRA, will be subject to sales charges and to the terms and conditions generally applicable to Class A share
investments as described in this prospectus and in the statement of additional information.

Plans of distribution

The fund has plans of distribution, or “12b-1 plans,”
for certain share classes under which it may finance activities intended primarily to sell shares, provided that the categories
of expenses are approved in advance by the fund’s board of trustees. The plans provide for payments, based on annualized
percentages of average daily net assets, of:

|Up to: | Share class(es)                             
|------ | --------------------------------------------
|0.25%  | Class A shares                              
|0.50%  | Class 529-A, F-1, 529-F-1 and R-4 shares    
|0.75%  | Class 529-E and R-3 shares                  
|0.85%  | Class R-2E shares                           
|1.00%  | Class B, 529-B, C, 529-C, R-1 and R-2 shares



For all share classes indicated above, up to .25% may be
used to pay service fees to qualified dealers for providing certain shareholder services. The amount remaining for each share class,
if any, may be used for distribution expenses.

The 12b-1 fees paid by each applicable share class of
the fund, as a percentage of average net assets for the previous fiscal year (or, for Class R-2E shares only, based on estimated
amounts for the current fiscal year), are indicated in the Annual Fund Operating Expenses table on page 1 of this prospectus.
Since these fees are paid out of the fund’s assets or income on an ongoing basis, over time they may cost you more than
paying other types of sales charges or service fees and reduce the return on your investment. The higher fees for Class B and
C shares may cost you more over time than paying the initial sales charge for Class A shares.

The Income Fund of America / Prospectus  31





Other compensation to dealers

American Funds Distributors, at its expense, provides additional
compensation to investment dealers. These payments may be made, at the discretion of American Funds Distributors, to the top 100
dealers (or their affiliates) that have sold shares of the American Funds. A number of factors will be considered in determining
payments, including the qualifying dealer’s sales, assets and redemption rates, and the quality of the dealer’s relationship
with American Funds Distributors. The payment will be determined using a formula applied consistently to dealers based on the relevant
facts and circumstances. The level of payments made to a qualifying firm in any given year will vary and (excluding payments for
meetings as described below) will represent the sum of (a) up to .10% of the previous year’s American Funds sales
by that dealer and (b) up to .02% of American Funds assets attributable to that dealer, with an adjustment made for the
dealer’s relative redemption rate and the quality of the dealer’s relationship with American Funds Distributors. For
calendar year 2013, aggregate payments made by American Funds Distributors to dealers were less than .02% of the average assets
of the American Funds. Aggregate payments made by American Funds Distributors to dealers may also change from year to year. American
Funds Distributors makes these payments to help defray the costs incurred by qualifying dealers in connection with efforts to educate
financial advisors about the American Funds so that they can make recommendations and provide services that are suitable and meet
shareholder needs. American Funds Distributors will, on an annual basis, determine the advisability of continuing these payments.
American Funds Distributors may also pay expenses associated with meetings conducted by selling dealers, advisory platform providers
and other intermediaries to facilitate educating financial advisors and shareholders about the American Funds. If investment advisers,
distributors or other affiliates of mutual funds pay additional compensation or other incentives in differing amounts, dealer firms
and their advisors may have financial incentives for recommending a particular mutual fund over other mutual funds or investments.
You should consult with your financial advisor and review carefully any disclosure by your financial advisor’s firm as to
compensation received.

Fund expenses

Note that references to Class A, B, C and F-1 shares in
this “Fund expenses” section do not include the corresponding Class 529 shares.

In periods of market volatility, assets of the fund may
decline significantly, causing total annual fund operating expenses (as a percentage of the value of your investment) to become
higher than the numbers shown in the Annual Fund Operating Expenses table on page 1 of this prospectus.

For all share classes except Class B shares, “Other
expenses” items in the Annual Fund Operating Expenses table in this prospectus include fees for administrative services provided
by the fund’s investment adviser and its affiliates. Administrative services include, but are not limited to, coordinating,
monitoring, assisting and overseeing third parties that provide services to fund shareholders. The fund’s investment adviser
receives an administrative services fee at the annual rate of .01% of the average daily net assets of the fund attributable to
Class A shares and .05% of the average daily net assets of the fund attributable to Class C, F, R and 529 shares for its provision
of administrative services.

The Income Fund of America / Prospectus  32





The “Other expenses” items in the Annual Fund
Operating Expenses table also include custodial, legal, transfer agent and subtransfer agent/recordkeeping payments and various
other expenses applicable to all share classes.

Retail
investors Subtransfer agent/recordkeeping payments may be made to third parties (including affiliates of the fund’s
investment adviser) that provide subtransfer agent, recordkeeping and/or shareholder services with respect to certain shareholder
accounts in lieu of the transfer agent providing such services. The amount paid for subtransfer agent/recordkeeping services varies
depending on the share class and services provided, and typically ranges from $3 to $19 per account. For Class 529 shares, an expense
of up to a maximum of .10% paid to a state or states for oversight and administrative services is included as an “Other expenses”
item.

Employer-sponsored retirement plan investors The
amount paid for subtransfer agent/ recordkeeping services varies depending on the share class selected and the entity receiving
the payments. The table below shows the maximum payments to entities providing these services to retirement plans.

|           | Payments to affiliated entities                                        | Payments to unaffiliated entities              
|---------- | ---------------------------------------------------------------------- | -----------------------------------------------
|Class A    | 0.05% of assets or$12 per participant position1                        | 0.05% of assets or$12 per participant position1
|Class R-1  | 0.10% of assets                                                        | 0.10% of assets                                
|Class R-2  | 0.15% of assets plus $27 per participant position2 or 0.35% of assets3 | 0.25% of assets                                
|Class R-2E | N/A                                                                    | 0.20% of assets                                
|Class R-3  | 0.10% of assets plus $12 per participant position2 or 0.19% of assets3 | 0.15% of assets                                
|Class R-4  | 0.10% of assets                                                        | 0.10% of assets                                
|Class R-5  | 0.05% of assets                                                        | 0.05% of assets                                
|Class R-6  | none                                                                   | none                                           

1
Payment amount depends on the date services commenced.

2
Payment with respect to Recordkeeper Direct program.

3
Payment with respect to PlanPremier program.



The Income Fund of America / Prospectus  33





Financial highlights

The Financial Highlights table is intended to help you
understand the fund’s results for the past five fiscal years. Certain information reflects financial results for a single
share of a particular class. The total returns in the table represent the rate that an investor would have earned or lost on an
investment in the fund (assuming reinvestment of all dividends and capital gain distributions). The information in the Financial
Highlights table has been audited by Deloitte & Touche LLP, whose current report, along with the fund’s financial statements,
is included in the statement of additional information, which is available upon request.



|                                                                      |                                                | Income
    from investment operations1 |                                                                    |                                          |                                                    |                                          |                   |                                                  
|--------------------------------------------------------------------- | ---------------------------------------------- | -------------------------------------- | ------------------------------------------------------------------ | ---------------------------------------- | -------------------------------------------------- | ---------------------------------------- | ----------------- | -------------------------------------------------
|                                                                      | Net asset
    value,
    beginning
    of year | Net
    investment
    income2         | Net gains
    on securities
    (both
    realized and unrealized) | Total from
    investment
    operations | Dividends
    (from net
    investment
    income) | Net asset
    value,
    end of
    year | Total
    return3 | Net assets,
    end of
    year
    (in millions)
|Class
    A:                                                          |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014                                                  | $19.64                                         | $.78                                   | $1.69                                                              | $2.47                                    | $(.66)                                             | $21.45                                   | 12.78%            | $71,290                                          
|Year ended 7/31/2013                                                  | 17.66                                          | .67                                    | 1.99                                                               | 2.66                                     | (.68)                                              | 19.64                                    | 15.33             | 63,968                                           
|Year ended 7/31/2012                                                  | 16.97                                          | .66                                    | .73                                                                | 1.39                                     | (.70)                                              | 17.66                                    | 8.45              | 56,153                                           
|Year ended 7/31/2011                                                  | 15.48                                          | .71                                    | 1.53                                                               | 2.24                                     | (.75)                                              | 16.97                                    | 14.68             | 52,940                                           
|Year ended 7/31/2010                                                  | 14.04                                          | .73                                    | 1.37                                                               | 2.10                                     | (.66)                                              | 15.48                                    | 15.09             | 48,437                                           
|Class
    B:                                                          |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014                                                  | 19.50                                          | .61                                    | 1.69                                                               | 2.30                                     | (.50)                                              | 21.30                                    | 11.92             | 601                                              
|Year ended 7/31/2013                                                  | 17.53                                          | .53                                    | 1.97                                                               | 2.50                                     | (.53)                                              | 19.50                                    | 14.48             | 818                                              
|Year ended 7/31/2012                                                  | 16.85                                          | .53                                    | .71                                                                | 1.24                                     | (.56)                                              | 17.53                                    | 7.56              | 1,161                                            
|Year ended 7/31/2011                                                  | 15.37                                          | .58                                    | 1.52                                                               | 2.10                                     | (.62)                                              | 16.85                                    | 13.82             | 1,760                                            
|Year ended 7/31/2010                                                  | 13.94                                          | .60                                    | 1.37                                                               | 1.97                                     | (.54)                                              | 15.37                                    | 14.24             | 2,421                                            
|(The Financial Highlights table continues on the following
    page.)

The Income Fund of America / Prospectus  34







|                     |                                                | Income
    from investment operations1 |                                                                    |                                          |                                                    |                                          |                   |                                                  
|-------------------- | ---------------------------------------------- | -------------------------------------- | ------------------------------------------------------------------ | ---------------------------------------- | -------------------------------------------------- | ---------------------------------------- | ----------------- | -------------------------------------------------
|                     | Net asset
    value,
    beginning
    of year | Net
    investment
    income2         | Net gains
    on securities
    (both
    realized and unrealized) | Total from
    investment
    operations | Dividends
    (from net
    investment
    income) | Net asset
    value,
    end of
    year | Total
    return3 | Net assets,
    end of
    year
    (in millions)
|Class
    C:         |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | $19.42                                         | $.60                                   | $1.69                                                              | $2.29                                    | $(.50)                                             | $21.21                                   | 11.91%            | $6,597                                           
|Year ended 7/31/2013 | 17.47                                          | .51                                    | 1.97                                                               | 2.48                                     | (.53)                                              | 19.42                                    | 14.41             | 6,389                                            
|Year ended 7/31/2012 | 16.80                                          | .52                                    | .71                                                                | 1.23                                     | (.56)                                              | 17.47                                    | 7.55              | 6,096                                            
|Year ended 7/31/2011 | 15.33                                          | .57                                    | 1.51                                                               | 2.08                                     | (.61)                                              | 16.80                                    | 13.77             | 6,157                                            
|Year ended 7/31/2010 | 13.91                                          | .60                                    | 1.36                                                               | 1.96                                     | (.54)                                              | 15.33                                    | 14.17             | 5,882                                            
|Class
    F-1:       |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | 19.60                                          | .76                                    | 1.68                                                               | 2.44                                     | (.64)                                              | 21.40                                    | 12.66             | 3,841                                            
|Year ended 7/31/2013 | 17.62                                          | .65                                    | 2.00                                                               | 2.65                                     | (.67)                                              | 19.60                                    | 15.30             | 3,554                                            
|Year ended 7/31/2012 | 16.94                                          | .65                                    | .72                                                                | 1.37                                     | (.69)                                              | 17.62                                    | 8.35              | 2,563                                            
|Year ended 7/31/2011 | 15.46                                          | .70                                    | 1.52                                                               | 2.22                                     | (.74)                                              | 16.94                                    | 14.58             | 2,025                                            
|Year ended 7/31/2010 | 14.02                                          | .73                                    | 1.37                                                               | 2.10                                     | (.66)                                              | 15.46                                    | 15.08             | 1,815                                            
|Class
    F-2:       |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | 19.63                                          | .80                                    | 1.71                                                               | 2.51                                     | (.70)                                              | 21.44                                    | 12.97             | 2,975                                            
|Year ended 7/31/2013 | 17.65                                          | .70                                    | 1.99                                                               | 2.69                                     | (.71)                                              | 19.63                                    | 15.53             | 1,434                                            
|Year ended 7/31/2012 | 16.97                                          | .69                                    | .72                                                                | 1.41                                     | (.73)                                              | 17.65                                    | 8.59              | 1,020                                            
|Year ended 7/31/2011 | 15.48                                          | .74                                    | 1.53                                                               | 2.27                                     | (.78)                                              | 16.97                                    | 14.90             | 747                                              
|Year ended 7/31/2010 | 14.04                                          | .77                                    | 1.36                                                               | 2.13                                     | (.69)                                              | 15.48                                    | 15.31             | 460                                              
|Class
    529-A:     |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | 19.60                                          | .75                                    | 1.70                                                               | 2.45                                     | (.64)                                              | 21.41                                    | 12.69             | 1,463                                            
|Year ended 7/31/2013 | 17.63                                          | .65                                    | 1.98                                                               | 2.63                                     | (.66)                                              | 19.60                                    | 15.19             | 1,298                                            
|Year ended 7/31/2012 | 16.95                                          | .64                                    | .72                                                                | 1.36                                     | (.68)                                              | 17.63                                    | 8.30              | 1,102                                            
|Year ended 7/31/2011 | 15.46                                          | .69                                    | 1.53                                                               | 2.22                                     | (.73)                                              | 16.95                                    | 14.62             | 939                                              
|Year ended 7/31/2010 | 14.03                                          | .73                                    | 1.35                                                               | 2.08                                     | (.65)                                              | 15.46                                    | 14.95             | 753                                              

The Income Fund of America / Prospectus  35







|                                                                      |                                                | Income
    from investment operations1 |                                                                    |                                          |                                                    |                                          |                   |                                                  
|--------------------------------------------------------------------- | ---------------------------------------------- | -------------------------------------- | ------------------------------------------------------------------ | ---------------------------------------- | -------------------------------------------------- | ---------------------------------------- | ----------------- | -------------------------------------------------
|                                                                      | Net asset
    value,
    beginning
    of year | Net
    investment
    income2         | Net gains
    on securities
    (both
    realized and unrealized) | Total from
    investment
    operations | Dividends
    (from net
    investment
    income) | Net asset
    value,
    end of
    year | Total
    return3 | Net assets,
    end of
    year
    (in millions)
|Class
    529-B:                                                      |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014                                                  | $19.55                                         | $.58                                   | $1.70                                                              | $2.28                                    | $(.47)                                             | $21.36                                   | 11.79%            | $  34                                            
|Year ended 7/31/2013                                                  | 17.57                                          | .50                                    | 1.99                                                               | 2.49                                     | (.51)                                              | 19.55                                    | 14.35             | 45                                               
|Year ended 7/31/2012                                                  | 16.89                                          | .51                                    | .71                                                                | 1.22                                     | (.54)                                              | 17.57                                    | 7.41              | 58                                               
|Year ended 7/31/2011                                                  | 15.41                                          | .56                                    | 1.52                                                               | 2.08                                     | (.60)                                              | 16.89                                    | 13.66             | 76                                               
|Year ended 7/31/2010                                                  | 13.98                                          | .59                                    | 1.37                                                               | 1.96                                     | (.53)                                              | 15.41                                    | 14.10             | 92                                               
|Class
    529-C:                                                      |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014                                                  | 19.53                                          | .59                                    | 1.69                                                               | 2.28                                     | (.48)                                              | 21.33                                    | 11.82             | 470                                              
|Year ended 7/31/2013                                                  | 17.56                                          | .50                                    | 1.99                                                               | 2.49                                     | (.52)                                              | 19.53                                    | 14.36             | 420                                              
|Year ended 7/31/2012                                                  | 16.89                                          | .51                                    | .71                                                                | 1.22                                     | (.55)                                              | 17.56                                    | 7.43              | 370                                              
|Year ended 7/31/2011                                                  | 15.41                                          | .56                                    | 1.53                                                               | 2.09                                     | (.61)                                              | 16.89                                    | 13.71             | 331                                              
|Year ended 7/31/2010                                                  | 13.99                                          | .60                                    | 1.35                                                               | 1.95                                     | (.53)                                              | 15.41                                    | 14.04             | 281                                              
|Class
    529-E:                                                      |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014                                                  | 19.55                                          | .70                                    | 1.69                                                               | 2.39                                     | (.59)                                              | 21.35                                    | 12.39             | 65                                               
|Year ended 7/31/2013                                                  | 17.58                                          | .60                                    | 1.99                                                               | 2.59                                     | (.62)                                              | 19.55                                    | 14.95             | 59                                               
|Year ended 7/31/2012                                                  | 16.91                                          | .60                                    | .71                                                                | 1.31                                     | (.64)                                              | 17.58                                    | 7.99              | 52                                               
|Year ended 7/31/2011                                                  | 15.43                                          | .65                                    | 1.52                                                               | 2.17                                     | (.69)                                              | 16.91                                    | 14.27             | 44                                               
|Year ended 7/31/2010                                                  | 14.00                                          | .68                                    | 1.36                                                               | 2.04                                     | (.61)                                              | 15.43                                    | 14.66             | 35                                               
|Class
    529-F-1:                                                    |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014                                                  | 19.60                                          | .80                                    | 1.70                                                               | 2.50                                     | (.69)                                              | 21.41                                    | 12.94             | 52                                               
|Year ended 7/31/2013                                                  | 17.63                                          | .69                                    | 1.98                                                               | 2.67                                     | (.70)                                              | 19.60                                    | 15.44             | 44                                               
|Year ended 7/31/2012                                                  | 16.95                                          | .68                                    | .72                                                                | 1.40                                     | (.72)                                              | 17.63                                    | 8.53              | 36                                               
|Year ended 7/31/2011                                                  | 15.46                                          | .73                                    | 1.53                                                               | 2.26                                     | (.77)                                              | 16.95                                    | 14.87             | 31                                               
|Year ended 7/31/2010                                                  | 14.03                                          | .76                                    | 1.35                                                               | 2.11                                     | (.68)                                              | 15.46                                    | 15.19             | 22                                               
|(The Financial Highlights table continues on the following
    page.)

The Income Fund of America / Prospectus  36







|                     |                                                | Income
    from investment operations1 |                                                                    |                                          |                                                    |                                          |                   |                                                  
|-------------------- | ---------------------------------------------- | -------------------------------------- | ------------------------------------------------------------------ | ---------------------------------------- | -------------------------------------------------- | ---------------------------------------- | ----------------- | -------------------------------------------------
|                     | Net asset
    value,
    beginning
    of year | Net
    investment
    income2         | Net gains
    on securities
    (both
    realized and unrealized) | Total from
    investment
    operations | Dividends
    (from net
    investment
    income) | Net asset
    value,
    end of
    year | Total
    return3 | Net assets,
    end of
    year
    (in millions)
|Class
    R-1:       |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | $19.53                                         | $.60                                   | $1.69                                                              | $2.29                                    | $(.49)                                             | $21.33                                   | 11.88%            | $   133                                          
|Year ended 7/31/2013 | 17.56                                          | .52                                    | 1.98                                                               | 2.50                                     | (.53)                                              | 19.53                                    | 14.43             | 120                                              
|Year ended 7/31/2012 | 16.89                                          | .52                                    | .71                                                                | 1.23                                     | (.56)                                              | 17.56                                    | 7.50              | 122                                              
|Year ended 7/31/2011 | 15.41                                          | .57                                    | 1.52                                                               | 2.09                                     | (.61)                                              | 16.89                                    | 13.76             | 109                                              
|Year ended 7/31/2010 | 13.99                                          | .61                                    | 1.35                                                               | 1.96                                     | (.54)                                              | 15.41                                    | 14.10             | 91                                               
|Class
    R-2:       |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | 19.45                                          | .60                                    | 1.68                                                               | 2.28                                     | (.50)                                              | 21.23                                    | 11.85             | 635                                              
|Year ended 7/31/2013 | 17.49                                          | .52                                    | 1.98                                                               | 2.50                                     | (.54)                                              | 19.45                                    | 14.47             | 609                                              
|Year ended 7/31/2012 | 16.82                                          | .52                                    | .71                                                                | 1.23                                     | (.56)                                              | 17.49                                    | 7.52              | 567                                              
|Year ended 7/31/2011 | 15.35                                          | .57                                    | 1.51                                                               | 2.08                                     | (.61)                                              | 16.82                                    | 13.75             | 552                                              
|Year ended 7/31/2010 | 13.93                                          | .60                                    | 1.35                                                               | 1.95                                     | (.53)                                              | 15.35                                    | 14.10             | 518                                              
|Class
    R-3:       |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | 19.57                                          | .69                                    | 1.69                                                               | 2.38                                     | (.58)                                              | 21.37                                    | 12.35             | 1,357                                            
|Year ended 7/31/2013 | 17.60                                          | .60                                    | 1.98                                                               | 2.58                                     | (.61)                                              | 19.57                                    | 14.91             | 1,323                                            
|Year ended 7/31/2012 | 16.92                                          | .60                                    | .72                                                                | 1.32                                     | (.64)                                              | 17.60                                    | 8.01              | 1,204                                            
|Year ended 7/31/2011 | 15.44                                          | .64                                    | 1.53                                                               | 2.17                                     | (.69)                                              | 16.92                                    | 14.23             | 1,118                                            
|Year ended 7/31/2010 | 14.01                                          | .68                                    | 1.35                                                               | 2.03                                     | (.60)                                              | 15.44                                    | 14.63             | 1,056                                            
|Class
    R-4:       |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | 19.61                                          | .76                                    | 1.70                                                               | 2.46                                     | (.65)                                              | 21.42                                    | 12.71             | 1,192                                            
|Year ended 7/31/2013 | 17.63                                          | .66                                    | 1.99                                                               | 2.65                                     | (.67)                                              | 19.61                                    | 15.29             | 1,045                                            
|Year ended 7/31/2012 | 16.95                                          | .65                                    | .72                                                                | 1.37                                     | (.69)                                              | 17.63                                    | 8.33              | 880                                              
|Year ended 7/31/2011 | 15.46                                          | .70                                    | 1.53                                                               | 2.23                                     | (.74)                                              | 16.95                                    | 14.62             | 809                                              
|Year ended 7/31/2010 | 14.03                                          | .72                                    | 1.36                                                               | 2.08                                     | (.65)                                              | 15.46                                    | 14.95             | 740                                              

The Income Fund of America / Prospectus  37







|                     |                                                | Income
    from investment operations1 |                                                                    |                                          |                                                    |                                          |                   |                                                  
|-------------------- | ---------------------------------------------- | -------------------------------------- | ------------------------------------------------------------------ | ---------------------------------------- | -------------------------------------------------- | ---------------------------------------- | ----------------- | -------------------------------------------------
|                     | Net asset
    value,
    beginning
    of year | Net
    investment
    income2         | Net gains
    on securities
    (both
    realized and unrealized) | Total from
    investment
    operations | Dividends
    (from net
    investment
    income) | Net asset
    value,
    end of
    year | Total
    return3 | Net assets,
    end of
    year
    (in millions)
|Class
    R-5:       |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | $19.64                                         | $.82                                   | $1.70                                                              | $2.52                                    | $(.71)                                             | $21.45                                   | 13.03%            | $   567                                          
|Year ended 7/31/2013 | 17.66                                          | .71                                    | 1.99                                                               | 2.70                                     | (.72)                                              | 19.64                                    | 15.60             | 525                                              
|Year ended 7/31/2012 | 16.97                                          | .70                                    | .73                                                                | 1.43                                     | (.74)                                              | 17.66                                    | 8.70              | 462                                              
|Year ended 7/31/2011 | 15.48                                          | .75                                    | 1.53                                                               | 2.28                                     | (.79)                                              | 16.97                                    | 14.94             | 478                                              
|Year ended 7/31/2010 | 14.04                                          | .77                                    | 1.37                                                               | 2.14                                     | (.70)                                              | 15.48                                    | 15.36             | 447                                              
|Class
    R-6:       |                                                |                                        |                                                                    |                                          |                                                    |                                          |                   |                                                  
|Year ended 7/31/2014 | 19.65                                          | .83                                    | 1.70                                                               | 2.53                                     | (.72)                                              | 21.46                                    | 13.08             | 2,566                                            
|Year ended 7/31/2013 | 17.66                                          | .72                                    | 2.00                                                               | 2.72                                     | (.73)                                              | 19.65                                    | 15.72             | 1,631                                            
|Year ended 7/31/2012 | 16.98                                          | .71                                    | .72                                                                | 1.43                                     | (.75)                                              | 17.66                                    | 8.69              | 1,025                                            
|Year ended 7/31/2011 | 15.49                                          | .76                                    | 1.52                                                               | 2.28                                     | (.79)                                              | 16.98                                    | 14.99             | 758                                              
|Year ended 7/31/2010 | 14.05                                          | .79                                    | 1.35                                                               | 2.14                                     | (.70)                                              | 15.49                                    | 15.40             | 480                                              



|                                                  | Year
    ended July 31
|------------------------------------------------- | ----------------------
|                                                  | 2014                  
|Portfolio
    turnover rate for all share classes | 39%                   

| | 1 | Based on average shares outstanding.
| | - | ------------------------------------

| | 2 | For
                                         the year ended July 31, 2014, this column reflects the impact of a corporate action event
                                         that resulted in a one-time increase to net investment income. If the corporate action
                                         event had not occurred, the Class A net investment income per share and ratio of net
                                         income to average net assets would have been lower by $.11 and .51 percentage points,
                                         respectively. The impact to the other share classes would have been similar.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3 | Total
                                         returns exclude any applicable sales charges, including contingent deferred sales charges.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------

The Income Fund of America / Prospectus  38







| |                                                                                                                                                                                                                                         |                                                                                                                       | 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- | 
| | For shareholder services                                                                                                                                                                                                                | American Funds Service Company
(800) 421-4225                                                                         | 
| | For retirement plan services                                                                                                                                                                                                            | Call your employer or plan administrator                                                                              | 
| | For 529 plans                                                                                                                                                                                                                           | American Funds Service Company
(800) 421-4225, ext. 529                                                               | 
| | For 24-hour information                                                                                                                                                                                                                 | American FundsLine 
(800) 325-3590
americanfunds.com
For Class R share information, visit
AmericanFundsRetirement.com | 
| | Telephone calls you have with American Funds may be monitored or recorded for quality assurance, verification and recordkeeping purposes. By speaking to American Funds on the telephone, you consent to such monitoring and recording. |                                                                                                                      



Multiple
translations This prospectus may be translated into other languages. If there is any inconsistency or ambiguity,
the English text will prevail.

Annual/Semi-annual
report to shareholders The shareholder reports contain additional information about the fund, including financial
statements, investment results, portfolio holdings, a discussion of market conditions and the fund’s investment strategies,
and the independent registered public accounting firm’s report (in the annual report).

Program
description The CollegeAmerica® 529 program description contains additional information about the policies
and services related to 529 plan accounts.

Statement
of additional information (SAI) and codes of ethics The current SAI, as amended from time to time, contains more
detailed information about the fund, including the fund’s financial statements, and is incorporated by reference into this
prospectus. This means that the current SAI, for legal purposes, is part of this prospectus. The codes of ethics describe the personal
investing policies adopted by the fund, the fund’s investment adviser and its affiliated companies.

The codes of ethics and current SAI are on file with the U.S.
Securities and Exchange Commission (SEC). These and other related materials about the fund
are available for review or to be copied at the SEC’s Public Reference Room in Washington, D.C., (202) 551-8090, on
the EDGAR database on the SEC’s website at sec.gov or, after payment of a duplicating fee, via email request to publicinfo@sec.gov
or by writing to the SEC’s Public Reference Section, 100 F Street, NE, Washington, D.C. 20549-1520. The codes of ethics,
current SAI and shareholder reports are also available, free of charge, on our website, americanfunds.com.

E-delivery
and household mailings Each year you are automatically sent an updated summary prospectus and annual and semi-annual
reports for the fund. You may also occasionally receive proxy statements
for the fund. In order to reduce the volume of mail you receive,
when possible, only one copy of these documents will be sent to shareholders who are part of the same family and share the same
household address. You may elect to receive these documents electronically in lieu of paper form by enrolling in e-delivery on
our website, americanfunds.com.

If you would like to opt out of household-based mailings or
receive a complimentary copy of the current SAI, codes of ethics, annual/semi-annual report to shareholders or applicable program
description, please call American Funds Service Company at (800) 421-4225 or write to the secretary of the fund
at One Market, Steuart Tower, Suite 2000, San Francisco, California 94105-1409.

Securities
Investor Protection Corporation (SIPC) Shareholders may obtain information about SIPC® on its website at sipc.org
or by calling (202) 371-8300.











|MFGEPRX-006-1014P
    Litho in USA CGD/CF/8013 | Investment
    Company File No. 811-01880
|---------------------------------------------- | -----------------------------------------



















THE FUND MAKES AVAILABLE A SPANISH TRANSLATION OF THE ABOVE PROSPECTUS
IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE ENGLISH LANGUAGE PROSPECTUS ABOVE IS A FAIR AND ACCURATE REPRESENTATION
OF THE SPANISH EQUIVALENT.



|/s/ | MICHAEL W. STOCKTON
|--- | -------------------
|    | MICHAEL W. STOCKTON
|    | SECRETARY          



















The Income Fund of America®

Part B
Statement of Additional Information

October 1, 2014

This document is not a prospectus
but should be read in conjunction with the current prospectus of The Income Fund of America (the “fund”) dated October
1, 2014. You may obtain a prospectus from your financial advisor, by calling American Funds Service Company® at (800) 421-4225
or by writing to the fund at the following address:

The Income Fund of America
Attention: Secretary

One Market
Steuart Tower, Suite 2000
San Francisco, California 94105

Certain privileges and/or services described
below may not be available to all shareholders (including shareholders who purchase shares at net asset value through eligible
retirement plans) depending on the shareholder’s investment dealer or retirement plan recordkeeper. Please see your financial
advisor, investment dealer, plan recordkeeper or employer for more information.

|Class A   | AMECX | Class 529-A   | CIMAX | Class R-1  | RIDAX
|--------- | ----- | ------------- | ----- | ---------- | -----
|Class B   | IFABX | Class 529-B   | CIMBX | Class R-2  | RIDBX
|Class C   | IFACX | Class 529-C   | CIMCX | Class R-2E | RIEBX
|Class F-1 | IFAFX | Class 529-E   | CIMEX | Class R-3  | RIDCX
|Class F-2 | AMEFX | Class 529-F-1 | CIMFX | Class R-4  | RIDEX
|          |       |               |       | Class R-5  | RIDFX
|          |       |               |       | Class R-6  | RIDGX





Table of Contents



|Item                                                            | Page
    no.
|--------------------------------------------------------------- | ------------
|Certain
    investment limitations and guidelines               | 2           
|Description
    of certain securities and investment techniques | 3           
|Fund
    policies                                               | 15          
|Management
    of the fund                                      | 17          
|Execution
    of portfolio transactions                         | 44          
|Disclosure
    of portfolio holdings                            | 47          
|Price
    of shares                                             | 49          
|Taxes
    and distributions                                     | 52          
|Purchase
    and exchange of shares                             | 55          
|Sales
    charges                                               | 60          
|Sales
    charge reductions and waivers                         | 63          
|Selling
    shares                                              | 67          
|Shareholder
    account services and privileges                 | 68          
|General
    information                                         | 71          
|Appendix                                                        | 79          



Investment portfolio
Financial statements





The Income Fund of America - Page 1







Certain investment limitations and
guidelines

The following limitations and guidelines
are considered at the time of purchase, under normal circumstances, and are based on a percentage of the fund’s net assets
unless otherwise noted. This summary is not intended to reflect all of the fund’s investment limitations.

Income-producing securities

| | · | The fund will invest at least 65% of its assets in income-producing securities.
| | - | -------------------------------------------------------------------------------

Equity securities

| | · | The fund will generally invest at least 60% of its assets in equity securities. However, the composition
of the fund’s investments in equity, debt and cash or money market instruments may vary substantially depending on various
factors, including market conditions. At times the fund may be substantially invested in equity or debt securities (i.e., more
than 60%) or may be solely invested in equity or debt securities (i.e., 100%).
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Debt securities

| | · | The fund may invest up to 20% of its assets in straight debt securities (i.e., debt securities
that do not have equity conversion or purchase rights) rated BB+ or below and Ba1 or below by Nationally Recognized Statistical
Rating Organizations designated by the fund’s investment adviser or unrated but determined to be of equivalent quality by
the fund’s investment adviser. The fund currently intends to look to the ratings from Moody’s Investors Service, Standard
& Poor’s Corporation and Fitch Ratings. If rating agencies differ, securities will be considered to have received the
highest of these ratings, consistent with the fund's investment policies.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Investing outside the U.S.

| | · | The fund may invest up to 25% of its assets in equity securities of issuers domiciled outside the
United States.
| | - | ----------------------------------------------------------------------------------------------------------------

| | · | The fund may invest up to 10% of its assets in debt securities of issuers domiciled outside the
United States (must be U.S. dollar denominated).
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The
                                         fund may invest in securities of issuers in developing countries only to a limited extent.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------

* * * * * *

The fund may experience difficulty liquidating
certain portfolio securities during significant market declines or periods of heavy redemptions.

The Income Fund of America - Page 2







Description of certain securities
and investment techniques

The descriptions below are intended to
supplement the material in the prospectus under “Investment objectives, strategies and risks.”

Equity securities —Equity
securities represent an ownership position in a company. Equity securities held by the fund typically consist of common stocks
and may also include securities with equity conversion or purchase rights. The prices of equity securities fluctuate based on,
among other things, events specific to their issuers and market, economic and other conditions. For example, prices of these securities
can be affected by financial contracts held by the issuer or third parties (such as derivatives) relating to the security or other
assets or indices. Holders of equity securities are not creditors of the issuer. As such, if an issuer liquidates, holders of equity
securities are entitled to their pro rata share of the issuer’s assets, if any, after creditors (including the holders of
fixed income securities and senior equity securities) are paid.

There may be little trading in the secondary
market for particular equity securities, which may adversely affect the fund’s ability to value accurately or dispose of
such equity securities. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease
the value and/or liquidity of equity securities.

Investing in smaller capitalization
stocks — The fund may invest in the stocks of smaller capitalization companies (typically companies with market capitalizations
of $4.0 billion and below at the time of purchase). The investment adviser believes that the issuers of smaller capitalization
stocks often provide attractive investment opportunities. However, investing in smaller capitalization stocks can involve greater
risk than is customarily associated with investing in stocks of larger, more established companies. For example, smaller companies
often have limited product lines, limited operating histories, limited markets or financial resources, may be dependent on one
or a few key persons for management and can be more susceptible to losses. Also, their securities may be thinly traded (and therefore
have to be sold at a discount from current prices or sold in small lots over an extended period of time), may be followed by fewer
investment research analysts and may be subject to wider price swings, thus creating a greater chance of loss than securities of
larger capitalization companies.

Debt securities — Debt securities,
also known as “fixed-income securities,” are used by issuers to borrow money. Bonds, notes, debentures, asset-backed
securities (including those backed by mortgages), and loan participations and assignments are common types of debt securities.
Generally, issuers pay investors periodic interest and repay the amount borrowed either periodically during the life of the security
and/or at maturity. Some debt securities, such as zero coupon bonds, do not pay current interest, but are purchased at a discount
from their face values and their values accrete over time to face value at maturity. Some debt securities bear interest at rates
that are not fixed, but that vary with changes in specified market rates or indices. The market prices of debt securities fluctuate
depending on such factors as interest rates, credit quality and maturity. In general, market prices of debt securities decline
when interest rates rise and increase when interest rates fall. These fluctuations will generally be greater for longer-term debt
securities than for shorter-term debt securities.

Lower rated debt securities, rated Ba1/BB+
or below by Nationally Recognized Statistical Rating Organizations, are described by the rating agencies as speculative and involve
greater risk of default or price changes due to changes in the issuer’s creditworthiness than higher rated debt securities,
or they may already be in default. Such securities are sometimes referred to as “junk bonds” or high yield bonds. The
market prices of these securities may fluctuate more than higher quality securities and may decline significantly in periods of
general economic difficulty. It may be more difficult to dispose of, and to determine the value of, lower rated debt securities.
Investment grade bonds in the ratings categories A or Baa/BBB also may be more susceptible to changes in market or economic conditions
than bonds rated in the highest rating categories.

The Income Fund of America - Page 3





Certain additional risk factors relating
to debt securities are discussed below:

Sensitivity to interest rate
and economic changes — Debt securities may be sensitive to economic changes, political and corporate developments, and
interest rate changes. In addition, during an economic downturn or a period of rising interest rates, issuers that are highly leveraged
may experience increased financial stress that could adversely affect their ability to meet projected business goals, to obtain
additional financing and to service their principal and interest payment obligations. Periods of economic change and uncertainty
also can be expected to result in increased volatility of market prices and yields of certain debt securities and derivative instruments.
For example, during the financial crisis of 2007-2009, the Federal Reserve implemented a number of economic policies that impacted,
and may continue to impact, interest rates and the market. These policies, as well as potential actions by governmental entities
both in and outside of the U.S., may expose fixed-income markets to heightened volatility and may reduce liquidity for certain
investments, which could cause the value of the fund’s portfolio to decline. Prices of debt securities can also be affected
by financial contracts held by the issuer or third parties (such as derivatives) relating to the security or other assets or indices.

Payment expectations —
Debt securities may contain redemption or call provisions. If an issuer exercises these provisions in a lower interest rate market,
the fund would have to replace the security with a lower yielding security, resulting in decreased income to investors. If the
issuer of a debt security defaults on its obligations to pay interest or principal or is the subject of bankruptcy proceedings,
the fund may incur losses or expenses in seeking recovery of amounts owed to it.

Liquidity and valuation —
There may be little trading in the secondary market for particular debt securities, which may affect adversely the fund’s
ability to value accurately or dispose of such debt securities. Adverse publicity and investor perceptions, whether or not based
on fundamental analysis, may decrease the value and/or liquidity of debt securities.

The investment adviser attempts to reduce
the risks described above through diversification of the fund’s portfolio and by credit analysis of each issuer, as well
as by monitoring broad economic trends and corporate and legislative developments, but there can be no assurance that it will be
successful in doing so.

Credit ratings for debt securities provided
by rating agencies reflect an evaluation of the safety of principal and interest payments, not market value risk. The rating of
an issuer is a rating agency’s view of past and future potential developments related to the issuer and may not necessarily
reflect actual outcomes. There can be a lag between the time of developments relating to an issuer and the time a rating is assigned
and updated. The investment adviser considers these ratings of securities as one of many criteria in making its investment decisions.

Bond rating agencies may assign modifiers
(such as +/–) to ratings categories to signify the relative position of a credit within the rating category. Investment policies
that are based on ratings categories should be read to include any security within that category, without giving consideration
to the modifier except where otherwise provided. See the Appendix to this statement of additional information for more information
about credit ratings.

Securities with equity and debt characteristics
— The fund may invest in securities that have a combination of equity and debt characteristics. These securities may
at times behave more like equity than debt or vice versa. Some types of convertible bonds, preferred stocks or other preferred
securities automatically convert into common stocks or other securities at a stated conversion ratio and some may be subject to
redemption at the option of the issuer at a predetermined price. These

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securities ordinarily do not have voting
rights and, prior to conversion, may pay a fixed rate of interest or a dividend. They may have preference over common stocks with
respect to dividends and any residual assets after payment to creditors should the issuer be dissolved. Because convertible securities
have both debt and equity characteristics, their values vary in response to many factors, including the values of the securities
into which they are convertible, general market and economic conditions, and convertible market valuations, as well as changes
in interest rates, credit spreads and the credit quality of the issuer.

These securities may include hybrid securities,
which also have equity and debt characteristics. Such securities are normally at the bottom of an issuer’s debt capital structure.
As such, they may be more sensitive to economic changes than more senior debt securities. These securities may also be viewed as
more equity-like by the market when the issuer or its parent company experience financial problems.

The prices and yields of nonconvertible
preferred securities or preferred stocks generally move with changes in interest rates and the issuer’s credit quality, similar
to the factors affecting debt securities. Nonconvertible preferred securities will be treated as debt for fund investment limit
purposes.

Investing outside the U.S. —Investing outside the United States may involve additional risks caused by, among other things, currency controls and fluctuating
currency values; different accounting, auditing, financial reporting, disclosure, and regulatory and legal standards and practices;
changing local, regional and global economic, political and social conditions; expropriation; changes in tax policy; greater market
volatility; different securities market structures; higher transaction costs; and various administrative difficulties, such as
delays in clearing and settling portfolio transactions or in receiving payment of dividends.

The risks described above may be
heightened in connection with investments in emerging markets. Although there is no universally accepted definition, the investment
adviser generally considers emerging markets to refer to the securities markets of countries in the earlier stages of their industrialization
cycle with a low per capita gross domestic product (“GDP”) and a low market capitalization to GDP ratio relative to
those in the United States and the European Union and would include markets commonly referred to as “frontier markets.”
Historically, emerging markets have been more volatile than the markets of developed countries.

Additional costs could be incurred in
connection with the fund’s investment activities outside the United States. Brokerage commissions may be higher outside the
United States, and the fund will bear certain expenses in connection with its currency transactions. Furthermore, increased custodian
costs may be associated with maintaining assets in certain jurisdictions.

In determining the domicile of an issuer,
the fund’s investment adviser will consider the domicile determination of a leading provider of global indexes, such as Morgan
Stanley Capital International, and may also take into account such factors as where the company’s securities are listed and
where the company is legally organized, maintains principal corporate offices and/or conducts its principal operations.

Currency transactions —
The fund may enter into currency transactions to provide for the purchase or sale of a currency needed to purchase a security denominated
in that currency (often referred to as a spot or cover transaction). The fund may also enter into forward currency contracts to
protect against changes in currency exchange rates. A forward currency contract is an obligation to purchase or sell a specific
currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a
price set at the time of the contract. Although forward contracts entered into by the fund will typically involve the purchase
or sale of a currency against the U.S. dollar, the fund also may cross hedge and purchase or sell one currency against another
currency (other than

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the U.S. dollar). The fund has no current
intention to cross hedge one currency against another currency (other than the U.S. dollar).

Currency exchange rates generally are
determined by forces of supply and demand in the foreign exchange markets and the relative merits of investment in different countries
as viewed from an international perspective. Currency exchange rates can also be affected unpredictably by intervention by U.S.
or foreign governments or central banks or by currency controls or political developments in the United States or abroad.

Generally, the fund will not attempt
to protect against all potential changes in exchange rates and the use of forward contracts does not eliminate the risk of fluctuations
in the prices of the underlying securities. If the value of the underlying securities declines or the amount of the fund’s
commitment increases because of changes in exchange rates, the fund may need to provide additional cash or securities to satisfy
its commitment under the forward contract. The fund is also subject to the risk that it may be delayed or prevented from obtaining
payments owed to it under the forward contract as a result of the insolvency or bankruptcy of the counterparty with which it entered
into the forward contract or the failure of the counterparty to comply with the terms of the contract.

While entering into forward currency
transactions could minimize the risk of loss due to a decline in the value of the hedged currency, it could also limit any potential
gain that may result from an increase in the value of the currency. Entering into forward currency transactions may change the
fund’s exposure to currency exchange rates and could result in losses to the fund if currencies do not perform as expected
by the fund’s investment adviser. For example, if the fund’s investment adviser increases the fund’s exposure
to a foreign currency using forward contracts and that foreign currency’s value declines, the fund may incur a loss. The
fund will segregate liquid assets that will be marked to market daily to meet its forward contract commitments to the extent required
by the U.S. Securities and Exchange Commission.

Forward currency transactions also may
affect the character and timing of income, gain, or loss recognized by the fund for U.S. tax purposes. The use of forward currency
contracts could result in the application of the mark-to-market provisions of the Internal Revenue Code and may cause an increase
(or decrease) in the amount of taxable dividends paid by the fund.

Obligations backed by the “full
faith and credit” of the U.S. government — U.S. government obligations include the following types of securities:

U.S. Treasury securities —
U.S. Treasury securities include direct obligations of the U.S. Treasury, such as Treasury bills, notes and bonds. For these securities,
the payment of principal and interest is unconditionally guaranteed by the U.S. government, and thus they are of high credit quality.
Such securities are subject to variations in market value due to fluctuations in interest rates and in government policies, but,
if held to maturity, are expected to be paid in full (either at maturity or thereafter).

Federal agency securities —
The securities of certain U.S. government agencies and government-sponsored entities are guaranteed as to the timely payment of
principal and interest by the full faith and credit of the U.S. government. Such agencies and entities include The Federal Financing
Bank (“FFB”), the Government National Mortgage Association (“Ginnie Mae”), the Veterans Administration
(“VA”), the Federal Housing Administration (“FHA”), the Export-Import Bank (“Exim Bank”), the
Overseas Private Investment Corporation (“OPIC”), the Commodity Credit Corporation (“CCC”) and the Small
Business Administration (“SBA”).

Other federal agency obligations —
Additional federal agency securities are neither direct obligations of, nor guaranteed by, the U.S. government. These obligations
include securities issued by certain U.S.

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government agencies and government-sponsored
entities. However, they generally involve some form of federal sponsorship: some operate under a government charter; some are backed
by specific types of collateral; some are supported by the issuer’s right to borrow from the Treasury; and others are supported
only by the credit of the issuing government agency or entity. These agencies and entities include, but are not limited to: Federal
Home Loan Bank, Federal Home Loan Mortgage Corporation (“Freddie Mac”), Federal National Mortgage Association (“Fannie
Mae”), Tennessee Valley Authority and Federal Farm Credit Bank System.

On September 7, 2008, Freddie Mac and
Fannie Mae were placed into conservatorship by their new regulator, the Federal Housing Finance Agency (“FHFA”). Simultaneously,
the U.S. Treasury made a commitment of indefinite duration to maintain the positive net worth of both firms. As conservator, the
FHFA has the authority to repudiate any contract either firm has entered into prior to FHFA’s appointment as conservator
(or receiver should either firm go into default) if the FHFA, in its sole discretion determines that performance of the contract
is burdensome and repudiation would promote the orderly administration of Fannie Mae’s or Freddie Mac’s affairs. While
the FHFA has indicated that it does not intend to repudiate the guaranty obligations of either entity, doing so could adversely
affect holders of their mortgage-backed securities. For example, if a contract were repudiated, the liability for any direct compensatory
damages would accrue to the entity’s conservatorship estate and could only be satisfied to the extent the estate had available
assets. As a result, if interest payments on Fannie Mae or Freddie Mac mortgage-backed securities held by the fund were reduced
because underlying borrowers failed to make payments or such payments were not advanced by a loan servicer, the fund’s only
recourse might be against the conservatorship estate, which might not have sufficient assets to offset any shortfalls.

The FHFA, in its capacity as conservator,
has the power to transfer or sell any asset or liability of Fannie Mae or Freddie Mac. The FHFA has indicated it has no current
intention to do this; however, should it do so a holder of a Fannie Mae or Freddie Mac mortgage-backed security would have to rely
on another party for satisfaction of the guaranty obligations and would be exposed to the credit risk of that party.

Certain rights provided to holders of
mortgage-backed securities issued by Fannie Mae or Freddie Mac under their operative documents may not be enforceable against FHFA,
or enforcement may be delayed during the course of the conservatorship or any future receivership. For example, the operative documents
may provide that upon the occurrence of an event of default by Fannie Mae or Freddie Mac, holders of a requisite percentage of
the mortgage-backed security may replace the entity as trustee. However, under the Federal Housing Finance Regulatory Reform Act
of 2008, holders may not enforce this right if the event of default arises solely because a conservator or receiver has been appointed.

Pass-through securities —The fund may invest in various debt obligations backed by pools of mortgages or other assets including, but not limited to,
loans on single family residences, home equity loans, mortgages on commercial buildings, credit card receivables and leases on
airplanes or other equipment. Principal and interest payments made on the underlying asset pools backing these obligations are
typically passed through to investors, net of any fees paid to any insurer or any guarantor of the securities. Pass-through
securities may have either fixed or adjustable coupons. These securities include:

Mortgage-backed securities
— These securities may be issued by U.S. government agencies and government-sponsored entities, such as Ginnie Mae, Fannie
Mae and Freddie Mac, and by private entities. The payment of interest and principal on mortgage-backed obligations issued by U.S.
government agencies may be guaranteed by the full faith and credit of the U.S. government (in the case of Ginnie Mae), or may be
guaranteed by the issuer (in the case of Fannie Mae and Freddie Mac). However, these guarantees do not apply to the market prices
and yields of these securities, which vary with changes in interest rates.

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Mortgage-backed securities issued
by private entities are structured similarly to those issued by U.S. government agencies. However, these securities and the underlying
mortgages are not guaranteed by any government agencies and the underlying mortgages are not subject to the same underwriting requirements.
These securities generally are structured with one or more types of credit enhancements such as insurance or letters of credit
issued by private companies. Borrowers on the underlying mortgages are usually permitted to prepay their underlying mortgages.
Prepayments can alter the effective maturity of these instruments. In addition, delinquencies, losses or defaults by borrowers
can adversely affect the prices and volatility of these securities. Such delinquencies and losses can be exacerbated by declining
or flattening housing and property values. This, along with other outside pressures, such as bankruptcies and financial difficulties
experienced by mortgage loan originators, decreased investor demand for mortgage loans and mortgage-related securities and increased
investor demand for yield, can adversely affect the value and liquidity of mortgage-backed securities.

Collateralized mortgage obligations
(CMOs) — CMOs are also backed by a pool of mortgages or mortgage loans, which are divided into two or more separate bond
issues. CMOs issued by U.S. government agencies are backed by agency mortgages, while privately issued CMOs may be backed by either
government agency mortgages or private mortgages. Payments of principal and interest are passed through to each bond issue at varying
schedules resulting in bonds with different coupons, effective maturities and sensitivities to interest rates. Some CMOs may be
structured in a way that when interest rates change, the impact of changing prepayment rates on the effective maturities of certain
issues of these securities is magnified. CMOs may be less liquid or may exhibit greater price volatility than other types of mortgage
or asset-backed securities.

Commercial mortgage-backed securities
— These securities are backed by mortgages on commercial property, such as hotels, office buildings, retail stores, hospitals
and other commercial buildings. These securities may have a lower prepayment uncertainty than other mortgage-related securities
because commercial mortgage loans generally prohibit or impose penalties on prepayments of principal. In addition, commercial mortgage-related
securities often are structured with some form of credit enhancement to protect against potential losses on the underlying mortgage
loans. Many of the risks of investing in commercial mortgage-backed securities reflect the risks of investing in the real estate
securing the underlying mortgage loans, including the effects of local and other economic conditions on real estate markets, the
ability of tenants to make rental payments and the ability of a property to attract and retain tenants. Commercial mortgage-backed
securities may be less liquid or exhibit greater price volatility than other types of mortgage or asset-backed securities and may
be more difficult to value.

Asset-backed securities —
These securities are backed by other assets such as credit card, automobile or consumer loan receivables, retail installment loans
or participations in pools of leases. Credit support for these securities may be based on the underlying assets and/or provided
through credit enhancements by a third party. The values of these securities are sensitive to changes in the credit quality of
the underlying collateral, the credit strength of the credit enhancement, changes in interest rates and at times the financial
condition of the issuer. Obligors of the underlying assets also may make prepayments that can change effective maturities of the
asset-backed securities. These securities may be less liquid and more difficult to value than other securities.

Equity-linked notes — The fund
may purchase equity-linked notes to enhance the current income of its portfolio. Equity-linked notes are hybrid instruments that
are specially designed to combine the characteristics of one or more reference securities — usually a single stock, a stock
index or a basket of stocks — and a related equity derivative, such as a put or call option, in a single note form. For example,
an equity-linked note that refers to the stock of an issuer may be the economic equivalent of holding a

The Income Fund of America - Page 8





position in that stock and simultaneously selling
a call option on that stock with a strike price greater than the current stock price. The holder of the note would be exposed to
decreases in the price of the equity to the same extent as if it held the equity directly. However, if the stock appreciated in
value, the noteholder would only benefit from stock price increases up to the strike price (i.e., the point at which the holder
of the call option would be expected to exercise its right to buy the underlying stock). Additionally, the terms of an equity-linked
note may provide for periodic interest payments to holders at either a fixed or floating rate.



As described in the example above, the return
on an equity-linked note is generally tied to the performance of the underlying reference security or securities. In addition to
any interest payments made during the term of the note, at maturity, the noteholder usually receives a return of principal based
on the capital appreciation of the linked securities. Depending on the terms of the issuance, the maximum principal amount to be
repaid on the equity-linked note may be capped. For example, in consideration for greater current income or yield, a noteholder
may forego its participation in the capital appreciation of the underlying equity assets above a predetermined price limit. Alternatively,
if the linked securities have depreciated in value, or if their price fluctuates outside of a preset range, the noteholder may
receive only the principal amount of the note, or may lose the principal invested in the equity-linked note entirely.



The price of an equity-linked note is derived
from the value of the underlying linked securities. The level and type of risk involved in the purchase of an equity-linked note
by the fund is similar to the risk involved in the purchase of the underlying linked securities. However, the value of an equity-linked
note is also dependent on the individual credit of the issuer of the note, which, in the case of an unsecured note, will generally
be a major financial institution, and, in the case of a collateralized note, will generally be a trust or other special purpose
vehicle or finance subsidiary established by a major financial institution for the limited purpose of issuing the note. An investment
in an equity-linked note bears the risk that the issuer of the note will default or become bankrupt. In such an event, the fund
may have difficulty being repaid, or may fail to be repaid, the principal amount of, or income from, its investment. Like other
structured products, equity-linked notes are frequently secured by collateral consisting of a combination of debt or related equity
securities to which payments under the notes are linked. If so secured, the fund would look to this underlying collateral for satisfaction
of claims in the event that the issuer of an equity-linked note defaulted under the terms of the note. However, depending on the
law of the jurisdictions in which an issuer is organized and in which the note is issued, in the event of default, the fund may
incur substantial expenses in seeking recovery under an equity-linked note, and may have limited legal recourse in attempting to
do so.



Equity-linked notes are often privately placed
and may not be rated, in which case the fund will be more dependent than would otherwise be the case on the ability of the investment
adviser to evaluate the creditworthiness of the issuer, the underlying security, any collateral features of the note, and the potential
for loss due to market and other factors. Ratings of issuers of equity-linked notes refer only to the creditworthiness of the issuer
and strength of related collateral arrangements or other credit supports, and do not take into account, or attempt to rate, any
potential risks of the underlying equity securities. The fund’s successful use of equity-linked notes will usually depend
on the investment adviser’s ability to accurately forecast movements in the prices of the underlying securities. Should the
prices of the underlying securities move in an unexpected manner, or should the structure of a note respond to market conditions
differently than anticipated, the fund may not achieve the anticipated benefits of the investment in the equity-linked note, and
the fund may realize losses, which could be significant and could include the fund’s entire principal investment in the note.



Equity-linked notes are generally designed for
the over-the-counter institutional investment market, and the secondary market for equity-linked notes may be limited. The lack
of a liquid secondary market may have an adverse effect on the ability of the fund to accurately value and/or sell the equity-linked
notes in its portfolio.



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Real estate investment trusts —The fund may invest in securities issued by real estate investment trusts (“REITs”), which primarily invest in
real estate or real estate-related loans. Equity REITs own real estate properties, while mortgage REITs hold construction, development
and/or long-term mortgage loans. The values of REITs may be affected by changes in the value of the underlying property of the
trusts, the creditworthiness of the issuer, property taxes, interest rates, tax laws and regulatory requirements, such as those
relating to the environment. Both types of REITs are dependent upon management skill and the cash flows generated by their holdings,
the real estate market in general and the possibility of failing to qualify for any applicable pass-through tax treatment or failing
to maintain any applicable exemptive status afforded under relevant laws.

Inflation linked bonds —
The fund may invest in inflation linked bonds issued by governments, their agencies or instrumentalities and corporations.

The principal amount of an inflation linked
bond is adjusted in response to changes in the level of an inflation index, such as the Consumer Price Index for Urban Consumers
(“CPURNSA”). If the index measuring inflation falls, the principal value or coupon of these securities will be adjusted
downward. Consequently, the interest payable on these securities will be reduced. Also, if the principal value of these securities
is adjusted according to the rate of inflation, the adjusted principal value repaid at maturity may be less than the original principal.
In the case of U.S. Treasury Inflation-Protected Securities (“TIPS”), currently the only inflation linked security
that is issued by the U.S Treasury, the principal amounts are adjusted daily based upon changes in the rate of inflation (as currently
represented by the non-seasonally adjusted CPURNSA, calculated with a three-month lag). TIPS may pay interest semi-annually, equal
to a fixed percentage of the inflation-adjusted principal amount. The interest rate on these bonds is fixed at issuance, but over
the life of the bond this interest may be paid on an increasing or decreasing principal amount that has been adjusted for inflation.
The current market value of TIPS is not guaranteed and will fluctuate. However, the U.S. government guarantees that, at maturity,
principal will be repaid at the higher of the original face value of the security (in the event of deflation) or the inflation
adjusted value.



Other non-U.S. sovereign governments also issue
inflation linked securities that are tied to their own local consumer price index and that offer similar deflationary protection.
In certain of these non-U.S. jurisdictions, the repayment of the original bond principal upon the maturity of an inflation linked
bond is not guaranteed, allowing for the amount of the bond repaid at maturity to be less than par. Corporations also periodically
issue inflation linked securities tied to CPURNSA or similar inflationary indexes. While TIPS and non-U.S. sovereign inflation
linked securities are currently the largest part of the inflation linked market, the fund may invest in corporate inflation linked
securities.



The value of inflation protected securities
is expected to change in response to the changes in real interest rates. Real interest rates, in turn, are tied to the relationship
between nominal interest rates and the rate of inflation. If inflation were to rise at a faster rate than nominal interest rates,
real interest rates would decline, leading to an increase in value of the inflation protected securities. In contrast, if nominal
interest rates were to increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value
of inflation protected securities. There can be no assurance, however, that the value of inflation protected securities will be
directly correlated to the changes in interest rates. If interest rates rise due to reasons other than inflation, investors in
these securities may not be protected to the extent that the increase is not reflected in the security’s inflation measure.

The interest rate for inflation linked
bonds is fixed at issuance as a percentage of this adjustable principal. Accordingly, the actual interest income may both rise
and fall as the principal amount of the bonds adjusts in response to movements of the consumer price index. For example, typically
interest income would rise during a period of inflation and fall during a period of deflation.

The market for inflation protected securities
may be less developed or liquid, and more volatile, than certain other securities markets. There is a limited number of inflation
protected securities currently

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available for the fund to purchase, making
the market less liquid and more volatile than the U.S. Treasury and agency markets.

Reinsurance related notes and bonds
—The fund may invest in reinsurance related notes and bonds. These instruments, which are typically issued by special
purpose reinsurance companies, transfer an element of insurance risk to the note or bond holders. For example, such a note or bond
could provide that the reinsurance company would not be required to repay all or a portion of the principal value of the note or
bond if losses due to a catastrophic event under the policy (such as a major hurricane) exceed certain dollar thresholds. Consequently,
the fund may lose the entire amount of its investment in such bonds or notes if such an event occurs and losses exceed certain
dollar thresholds. In this instance, investors would have no recourse against the insurance company. These instruments may be issued
with fixed or variable interest rates and rated in a variety of credit quality categories by the rating agencies.

Cash and cash equivalents —The fund may hold cash or invest in cash equivalents. Cash equivalents include (a) commercial paper (for example,
short-term notes with maturities typically up to 12 months in length issued by corporations, governmental bodies or bank/corporation
sponsored conduits (asset-backed commercial paper)); (b) short-term bank obligations (for example, certificates of deposit,
bankers’ acceptances (time drafts on a commercial bank where the bank accepts an irrevocable obligation to pay at maturity))
or bank notes; (c) savings association and savings bank obligations (for example, bank notes and certificates of deposit
issued by savings banks or savings associations); (d) securities of the U.S. government, its agencies or instrumentalities
that mature, or that may be redeemed, in one year or less; and (e) corporate bonds and notes that mature, or that may
be redeemed, in one year or less.

Restricted or illiquid securities
—The fund may purchase securities subject to restrictions on resale. Restricted securities may only be sold pursuant
to an exemption from registration under the Securities Act of 1933, as amended (the “1933 Act”), or in a registered
public offering. Where registration is required, the holder of a registered security may be obligated to pay all or part of the
registration expense and a considerable period may elapse between the time it decides to seek registration and the time it may
be permitted to sell a security under an effective registration statement. Difficulty in selling such securities may result in
a loss to the fund or cause it to incur additional administrative costs.

Securities (including restricted securities)
not actively traded will be considered illiquid unless they have been specifically determined to be liquid under procedures adopted
by the fund’s board of trustees, taking into account factors such as the frequency and volume of trading, the commitment
of dealers to make markets and the availability of qualified investors, all of which can change from time to time. The fund may
incur certain additional costs in disposing of illiquid securities.

Repurchase agreements —
The fund may enter into repurchase agreements under which the fund buys a security and obtains a simultaneous commitment from the
seller to repurchase the security at a specified time and price. Because the security purchased constitutes collateral for the
repurchase obligation, a repurchase agreement may be considered a loan by the fund that is collateralized by the security purchased.
Repurchase agreements permit the fund to maintain liquidity and earn income over periods of time as short as overnight. The seller
must maintain with the fund’s custodian collateral equal to at least 100% of the repurchase price, including accrued interest,
as monitored daily by the investment adviser. The fund will only enter into repurchase agreements involving securities in which
it could otherwise invest and with selected banks and securities dealers whose financial condition is monitored by the investment
adviser. If the seller under the repurchase agreement defaults, the fund may incur a loss if the value of the collateral securing
the repurchase agreement has declined and may incur disposition costs in connection with liquidating the collateral. If bankruptcy
proceedings are commenced with respect to the seller, realization of the collateral by the fund may be delayed or limited.

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Loan assignments and participations
—The fund may invest in loans or other forms of indebtedness that represent interests in amounts owed by corporations
or other borrowers (collectively “borrowers”). The investment adviser defines debt securities to include investments
in loans, such as loan assignments and participations. Loans may be originated by the borrower in order to address its working
capital needs, as a result of a reorganization of the borrower’s assets and liabilities (recapitalizations), to merge with
or acquire another company (mergers and acquisitions), to take control of another company (leveraged buy-outs), to provide temporary
financing (bridge loans), or for other corporate purposes. Most corporate loans are variable or floating rate obligations.

Some loans may be secured in whole or
in part by assets or other collateral. In other cases, loans may be unsecured or may become undersecured by declines in the value
of assets or other collateral securing such loan. The greater the value of the assets securing the loan the more the lender is
protected against loss in the case of nonpayment of principal or interest. Loans made to highly leveraged borrowers may be especially
vulnerable to adverse changes in economic or market conditions and may involve a greater risk of default.

Some loans may represent revolving credit
facilities or delayed funding loans, in which a lender agrees to make loans up to a maximum amount upon demand by the borrower
during a specified term. These commitments may have the effect of requiring the fund to increase its investment in a company at
a time when it might not otherwise decide to do so (including at a time when the company’s financial condition makes it unlikely
that such amounts will be repaid). To the extent that the fund is committed to advance additional funds, the fund will segregate
assets determined to be liquid in an amount sufficient to meet such commitments.

Some loans may represent debtor-in-possession
financings (commonly known as “DIP financings”). DIP financings are arranged when an entity seeks the protections of
the bankruptcy court under Chapter 11 of the U.S. Bankruptcy Code. These financings allow the entity to continue its business operations
while reorganizing under Chapter 11. Such financings constitute senior liens on unencumbered collateral (i.e., collateral not subject
to other creditors’ claims). There is a risk that the entity will not emerge from Chapter 11 and be forced to liquidate its
assets under Chapter 7 of the U.S. Bankruptcy Code. In the event of liquidation, the fund’s only recourse will be against
the collateral securing the DIP financing.

The investment adviser generally makes
investment decisions based on publicly available information, but may rely on non-public information if necessary. Borrowers may
offer to provide lenders with material, non-public information regarding a specific loan or the borrower in general. The investment
adviser generally chooses not to receive this information. As a result, the investment adviser may be at a disadvantage compared
to other investors that may receive such information. The investment adviser’s decision not to receive material, non-public
information may impact the investment adviser’s ability to assess a borrower’s requests for amendments or waivers of
provisions in the loan agreement. However, the investment adviser may on a case-by-case basis decide to receive such information
when it deems prudent. In these situations the investment adviser may be restricted from trading the loan or buying or selling
other debt and equity securities of the borrower while it is in possession of such material, non-public information, even if such
loan or other security is declining in value.

The fund normally acquires loan obligations
through an assignment from another lender, but also may acquire loan obligations by purchasing participation interests from lenders
or other holders of the interests. When the fund purchases assignments, it acquires direct contractual rights against the borrower
on the loan. The fund acquires the right to receive principal and interest payments directly from the borrower and to enforce its
rights as a lender directly against the borrower. However, because assignments are arranged through private negotiations between
potential assignees and potential assignors, the rights and obligations acquired by a fund as the purchaser of an assignment may
differ from, and be more limited than, those held by the assigning lender. Loan assignments are often administered by a financial
institution that acts as agent for the holders of the loan, and the fund

The Income Fund of America - Page 12





may be required to receive approval from
the agent and/or borrower prior to the purchase of a loan. Risks may also arise due to the inability of the agent to meet its obligations
under the loan agreement.

Loan participations are loans or other
direct debt instruments that are interests in amounts owed by the borrower to another party. They may represent amounts owed to
lenders or lending syndicates, to suppliers of goods or services, or to other parties. The fund will have the right to receive
payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon
receipt by the lender of the payments from the borrower. In connection with purchasing participations, the fund generally will
have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of
set-off against the borrower. In addition, the fund may not directly benefit from any collateral supporting the loan in which it
has purchased the participation and the fund will have to rely on the agent bank or other financial intermediary to apply appropriate
credit remedies. As a result, the fund will be subject to the credit risk of both the borrower and the lender that is selling the
participation. In the event of the insolvency of the lender selling a participation, a fund may be treated as a general creditor
of the lender and may not benefit from any set-off between the lender and the borrower.

Loan assignments and participations are
generally subject to legal or contractual restrictions on resale and are not currently listed on any securities exchange or automatic
quotation system. Risks may arise due to delayed settlements of loan assignments and participations. The investment adviser expects
that most loan assignments and participations purchased for the fund will trade on a secondary market. However, although secondary
markets for investments in loans are growing among institutional investors, there may be a limited number of investors interested
in a specific loan. It is possible that loan participations, in particular, could be sold only to a limited number of institutional
investors. If there is no active secondary market for a particular loan, it may be difficult for the investment adviser to sell
the fund’s interest in such loan at a price that is acceptable to it and to obtain pricing information on such loan.

Investments in loan participations and
assignments present the possibility that the fund could be held liable as a co-lender under emerging legal theories of lender liability.
In addition, if the loan is foreclosed, the fund could be part owner of any collateral and could bear the costs and liabilities
of owning and disposing of the collateral. In addition, some loan participations and assignments may not be rated by major rating
agencies and may not be protected by the securities laws.

Forward commitment, when issued and
delayed delivery transactions — The fund may enter into commitments to purchase or sell securities at a future date.
When the fund agrees to purchase such securities, it assumes the risk of any decline in value of the security from the date of
the agreement. If the other party to such a transaction fails to deliver or pay for the securities, the fund could miss a favorable
price or yield opportunity, or could experience a loss.

The fund will not use these transactions
for the purpose of leveraging and will segregate liquid assets that will be marked to market daily in an amount sufficient to meet
its payment obligations in these transactions. Although these transactions will not be entered into for leveraging purposes, to
the extent the fund’s aggregate commitments in connection with these transactions exceed its segregated assets, the fund
temporarily could be in a leveraged position (because it may have an amount greater than its net assets subject to market risk).
Should market values of the fund’s portfolio securities decline while the fund is in a leveraged position, greater depreciation
of its net assets would likely occur than if it were not in such a position. The fund will not borrow money to settle these transactions
and, therefore, will liquidate other portfolio securities in advance of settlement if necessary to generate additional cash to
meet its obligations. After a transaction is entered into, the fund may still dispose of or renegotiate the transaction. Additionally,
prior to receiving delivery of securities as part of a transaction, the fund may sell such securities.

The Income Fund of America - Page 13





The fund may also enter into “roll”
transactions which involve the sale of mortgage-backed or other securities together with a commitment to purchase similar, but
not identical, securities at a later date. The fund assumes the risk of price and yield fluctuations during the time of the commitment.
The fund will segregate liquid assets which will be marked to market daily in an amount sufficient to meet its payment obligations
in these transactions.

* * * * * *

Portfolio turnover — Portfolio
changes will be made without regard to the length of time particular investments may have been held. Short-term trading profits
are not the fund’s objective, and changes in its investments are generally accomplished gradually, though short-term transactions
may occasionally be made. High portfolio turnover may involve correspondingly greater transaction costs in the form of dealer spreads
or brokerage commissions. It may also result in the realization of net capital gains, which are taxable when distributed to shareholders,
unless the shareholder is exempt from taxation or his or her account is tax-favored.

Fixed-income securities are generally
traded on a net basis and usually neither brokerage commissions nor transfer taxes are involved. Transaction costs are usually
reflected in the spread between the bid and asked price.

The fund’s portfolio turnover
rates for the fiscal years ended July 31, 2014 and 2013 were 39% and 47%, respectively. The portfolio turnover rate would equal
100% if each security in a fund’s portfolio were replaced once per year. See “Financial highlights” in the prospectus
for the fund’s annual portfolio turnover rate for each of the last five fiscal years.

The Income Fund of America - Page 14







Fund policies

All percentage limitations in the following
fund policies are considered at the time securities are purchased and are based on the fund’s net assets unless otherwise
indicated. None of the following policies involving a maximum percentage of assets will be considered violated unless the excess
occurs immediately after, and is caused by, an acquisition by the fund. In managing the fund, the fund’s investment adviser
may apply more restrictive policies than those listed below.

Fundamental policies — The
fund has adopted the following policies, which may not be changed without approval by holders of a majority of its outstanding
shares. Such majority is currently defined in the Investment Company Act of 1940, as amended (the “1940 Act”), as the
vote of the lesser of (a) 67% or more of the voting securities present at a shareholder meeting, if the holders of
more than 50% of the outstanding voting securities are present in person or by proxy, or (b) more than 50% of the outstanding
voting securities.

1.	Except as permitted by (i)
the 1940 Act and the rules and regulations thereunder, or other successor law governing the regulation of registered investment
companies, or interpretations or modifications thereof by the U.S. Securities and Exchange Commission (“SEC”), SEC
staff or other authority of competent jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff
or other authority of competent jurisdiction, the fund may not:

| | a. | Borrow money;
| | -- | -------------

| | b. | Issue senior securities;
| | -- | ------------------------

| | c. | Underwrite the securities of other issuers;
| | -- | -------------------------------------------

| | d. | Purchase or sell real estate or commodities;
| | -- | --------------------------------------------

| | e. | Make loans; or
| | -- | --------------

| | f. | Purchase the securities of any issuer if, as a result of such purchase, the fund’s investments
would be concentrated in any particular industry.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------

2.	The fund may not invest in companies
for the purpose of exercising control or management.

Nonfundamental policies —
The following policy may be changed without shareholder approval:

The fund may not acquire securities of
open-end investment companies or unit investment trusts registered under the 1940 Act in reliance on Sections 12(d)(1)(F) or 12(d)(1)(G)
of the 1940 Act.

The Income Fund of America - Page 15





Additional information about the fund’s
policies — The information below is not part of the fund’s fundamental or nonfundamental policies. This information
is intended to provide a summary of what is currently required or permitted by the 1940 Act and the rules and regulations thereunder,
or by the interpretive guidance thereof by the SEC or SEC staff, for particular fundamental policies of the fund. Information is
also provided regarding the fund’s current intention with respect to certain investment practices permitted by the 1940 Act.

For purposes of fundamental policy 1a,
the fund may borrow money in amounts of up to 33-1/3% of its total assets from banks for any purpose. Additionally, the fund may
borrow up to 5% of its total assets from banks or other lenders for temporary purposes (a loan is presumed to be for temporary
purposes if it is repaid within 60 days and is not extended or renewed).

For purposes of fundamental policy 1b,
a senior security does not include any promissory note or evidence of indebtedness if such loan is for temporary purposes only
and in an amount not exceeding 5% of the value of the total assets of the fund at the time the loan is made (a loan is presumed
to be for temporary purposes if it is repaid within 60 days and is not extended or renewed). Further, to the extent the fund covers
its commitments under certain types of agreements and transactions, including reverse repurchase agreements, mortgage-dollar-roll
transactions, sale-buybacks, when-issued, delayed-delivery, or forward commitment transactions, and other similar trading practices,
by segregating or earmarking liquid assets equal in value to the amount of the fund’s commitment, such agreement or transaction
will not be considered a senior security by the fund.

For purposes of fundamental policy 1c,
the policy will not apply to the fund to the extent the fund may be deemed an underwriter within the meaning of the 1933 Act in
connection with the purchase and sale of fund portfolio securities in the ordinary course of pursuing its investment objectives
and strategies.

For purposes of fundamental policy 1e,
the fund may not lend more than 33-1/3% of its total assets, provided that this limitation shall not apply to the fund’s
purchase of debt obligations.

For purposes of fundamental policy 1f,
the fund may not invest more than 25% of its total assets in the securities of issuers in a particular industry. This policy does
not apply to investments in securities of the U.S. Government, its agencies or Government Sponsored Enterprises or repurchase agreements
with respect thereto.

The fund currently does not intend to
engage in securities lending, purchase securities on margin, sell securities short or invest in puts, calls, straddles or spreads
or combinations thereof.

The Income Fund of America - Page 16







Management of the fund

Board of trustees and officers

“Independent” trustees1

The fund’s nominating and governance
committee and board select independent trustees with a view toward constituting a board that, as a body, possesses the qualifications,
skills, attributes and experience to appropriately oversee the actions of the fund’s service providers, decide upon matters
of general policy and represent the long-term interests of fund shareholders. In doing so, they consider the qualifications, skills,
attributes and experience of the current board members, with a view toward maintaining a board that is diverse in viewpoint, experience,
education and skills.

The fund seeks independent trustees who
have high ethical standards and the highest levels of integrity and commitment, who have inquiring and independent minds, mature
judgment, good communication skills, and other complementary personal qualifications and skills that enable them to function effectively
in the context of the fund’s board and committee structure and who have the ability and willingness to dedicate sufficient
time to effectively fulfill their duties and responsibilities.

Each independent trustee has a significant
record of accomplishments in governance, business, not-for-profit organizations, government service, academia, law, accounting
or other professions. Although no single list could identify all experience upon which the fund’s independent trustees draw
in connection with their service, the following table summarizes key experience for each independent trustee. These references
to the qualifications, attributes and skills of the trustees are pursuant to the disclosure requirements of the SEC, and shall
not be deemed to impose any greater responsibility or liability on any trustee or the board as a whole. Notwithstanding the accomplishments
listed below, none of the independent trustees is considered an “expert” within the meaning of the federal securities
laws with respect to information in the fund’s registration statement.

The Income Fund of America - Page 17







|Name,
    age and
    position with fund
    (year first elected
    as a trustee2) | Principal
    occupation(s)
    during the past five years                                                                                         | Number
    of
    portfolios in fund complex
    overseen
    by
    trustee | Other
    directorships3 held
    by trustee during the past five years                | Other
    Relevant Experience                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|----------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | -------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|William
    H. Baribault, 69
    Trustee (2012)                                     | CEO
    and President, Richard Nixon Foundation; former Chairman of the Board and CEO, Oakwood Enterprises (private investment and
    consulting) | 70                                                                           | Former
    director of Henry Co. (until 2009); Professional Business Bank (until 2009) | · Service as chief executive officer for multiple companies
        · Corporate board experience
        · Service on advisory and trustee boards for charitable, educational and nonprofit organizations                                                                                                                                                                                                                                                                         
|Vanessa
    C. L. Chang, 62
    Trustee (2012)                                      | Director,
    EL & EL Investments (real estate)                                                                                                    | 7                                                                            | Edison
    International;
    Transocean Ltd.                                          | · Service as a chief executive officer, insurance-related (claims/dispute resolution) internet company
        · Senior management experience, investment banking
        · Former partner, public accounting firm
        · Corporate board experience
        · Service on advisory and trustee boards for charitable, educational and nonprofit organizations
        · Former member of the Governing Council of the Independent Directors Council
        · C.P.A. (inactive)

The Income Fund of America - Page 18







|Name,
    age and
    position with fund
    (year first elected
    as a trustee2) | Principal
    occupation(s)
    during the past five years                    | Number
    of
    portfolios in fund complex
    overseen
    by
    trustee | Other
    directorships3 held
    by trustee during the past five years                                                                                                | Other
    Relevant Experience                                                                                                                                                                                                                                                                                                                                                                                                      
|----------------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Linda
    Griego, 66
    Trustee (2012)                                             | President
    and CEO, Griego Enterprises, Inc. (business management company) | 4                                                                            | AECOM Technology Corporation; CBS Corporation
        
        Former director of City National Corporation
        (until 2009); SouthWest Water Company (until 2010) | · Former Deputy Mayor, City of Los Angeles
        · Service in numerous federal, state and city commission appointments focused on, among other areas, economic development
        · Service as president for a television production company focused on programming for the Latino market
        · Corporate board experience
        · Board service for hospitals, and philanthropic, educational and nonprofit organizations
|Leonade
    D. Jones, 66
    Trustee (1993)                                         | Retired                                                                       | 10                                                                           | None                                                                                                                                                                   | · Service as treasurer of a diversified media and education company
        · Founder of e-commerce and educational loan exchange businesses
        · Corporate board and investment advisory committee experience
        · Service on advisory and trustee boards for charitable, educational, public and nonprofit organizations
        · J.D., M.B.A.                                                                        

The Income Fund of America - Page 19







|Name,
    age and
    position with fund
    (year first elected
    as a trustee2) | Principal
    occupation(s)
    during the past five years                                                                                                                                                                                                                 | Number
    of
    portfolios in fund complex
    overseen
    by
    trustee | Other
    directorships3 held
    by trustee during the past five years                          | Other
    Relevant Experience                                                                                                                                                                                                                                                                                              
|----------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|William
    D. Jones, 59
    Trustee (2008)                                         | Real
    estate developer/owner, President and CEO, CityLink Investment Corporation (acquires, develops and manages real estate ventures
    in selected urban communities) and City Scene Management Company (provides commercial asset and property management services) | 8                                                                            | Sempra Energy
        
        Former director of SouthWest Water Company
        (until 2010)   | · Senior investment and management experience, real estate
        · Corporate board experience
        · Service as director, Federal Reserve Boards of San Francisco and Los Angeles
        · Service on advisory and trustee boards for charitable, educational, municipal and nonprofit organizations
        · M.B.A.
|James
    J. Postl, 68
    Trustee (2008)                                           | Retired                                                                                                                                                                                                                                                                    | 4                                                                            | Pulte, Inc.
        Former director of Centex, Inc. (until 2009); Cooper Industries (until 2012) | · Service as chief executive officer for multiple international companies
        · Senior corporate management experience
        · Corporate board experience
        · Service on advisory and trustee boards for charitable, educational and nonprofit organizations                                                   

The Income Fund of America - Page 20







|Name,
    age and
    position with fund
    (year first elected
    as a trustee2)  | Principal
    occupation(s)
    during the past five years                                                                                                                                                                                                                                                                           | Number
    of
    portfolios in fund complex
    overseen
    by
    trustee | Other
    directorships3 held
    by trustee during the past five years | Other
    Relevant Experience                                                                                                                                                                                                                                                                                                                             
|------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------- | ----------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Margaret
    Spellings, 56
    Trustee (2012)                                        | President,
    George W. Bush Foundation; former President and CEO, Margaret Spellings & Company (public policy and strategic consulting);
    former President, U.S. Chamber Foundation and Senior Advisor to the President and CEO, U.S. Chamber of Commerce; former U.S.
    Secretary of Education, U.S. Department of Education | 70                                                                           | Former
    director of Apollo Education Group, Inc. (until 2013)        | · Former Assistant to the President for Domestic Policy, The White House
        · Former senior advisor to the Governor of Texas
        · Service on advisory and trustee boards for charitable and nonprofit organizations                                                                                                                             
|Isaac
    Stein, 67
    Chairman of the Board (Independent and Non-Executive) (2004) | President,
    Waverley Associates (private investment fund); Chairman Emeritus of the Board of Trustees, Stanford University                                                                                                                                                                                                        | 4                                                                            | Alexza
    Pharmaceuticals, Inc.; Maxygen, Inc.                         | · Service as chief executive officer, apparel company
        · Service as chief financial officer and general counsel, international materials science company
        · Former partner, law firm
        · Corporate board experience
        · Service on advisory and trustee boards for charitable and nonprofit organizations
        · J.D., M.B.A.

The Income Fund of America - Page 21







“Interested” trustee(s)4

Interested trustees have similar qualifications,
skills and attributes as the independent trustees. Interested trustees are senior executive officers and/or directors of Capital
Research and Management Company or its affiliates. Such management roles with the fund’s service providers also permit the
interested trustees to make a significant contribution to the fund’s board.

|Name,
    age and
    position with fund
    (year first elected
    as a trustee/officer2) | Principal
    occupation(s)
    during the past five years
    and positions
    held with affiliated entities
    or the Principal Underwriter
    of the fund | Number
    of
    portfolios in fund complex
    overseen
    by
    trustee | Other
    directorships3 held
    by trustee during the past five years
|------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | -----------------------------------------------------------------------
|Hilda
    L. Applbaum, 53
    Vice Chairman of the Board (1998)                             | Senior
    Vice President – Capital World Investors, Capital Research and Management Company                                                                    | 1                                                                            | None                                                                   



Other officers5

|Name,
    age and
    position with fund
    (year first elected
    as an officer2) | Principal
    occupation(s) during the past five years
    and positions held with affiliated entities
    or the Principal Underwriter of the fund                                                                                                                                                                           
|------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|David
    C. Barclay, 57
    President (1998)                                        | Senior
    Vice President – Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research
    and Management Company                                                                                                                                                                    
|Dina
    N. Perry, 68
    Senior Vice President (1994)                               | Senior
    Vice President – Capital World Investors, Capital Research and Management Company; Director, The Capital Group Companies,
    Inc.*                                                                                                                                                                                
|Paul
    F. Roye, 60
    Senior Vice President (2007)                                | Senior
    Vice President – Fund Business Management Group, Capital Research and Management Company; Chief Legal Officer, Capital
    Research and Management Company; Director, American Funds Service Company*                                                                                                              
|Andrew
    B. Suzman, 47
    Senior Vice President (2004)                            | Senior
    Vice President – Capital World Investors, Capital Research and Management Company; Senior Vice President – Capital
    World Investors, Capital Bank and Trust Company*; Director, American Funds Distributors, Inc.*; Director, Capital Strategy
    Research, Inc.*; Director, The Capital Group Companies, Inc.*
|Joanna
    F. Jonsson, 51
    Vice President (2006)                                  | Director,
    Capital Research and Management Company; Senior Vice President – Capital World Investors, Capital Research Company*;
    Director, Capital International Limited*                                                                                                                                               
|Donald
    H. Rolfe, 42
    Vice President (2012)                                    | Chief
    Compliance Officer, Capital Research Company*; Chief Compliance Officer, Capital Research and Management Company; Vice President
    and Senior Counsel – Fund Business Management Group, Capital Research and Management Company                                                                                   
|John
    H. Smet, 58
    Vice President (1994)                                       | Senior
    Vice President – Capital Fixed Income Investors, Capital Research and Management Company; Director, Capital Research
    and Management Company                                                                                                                                                                    

The Income Fund of America - Page 22







|Name,
    age and
    position with fund
    (year first elected
    as an officer2) | Principal
    occupation(s) during the past five years
    and positions held with affiliated entities
    or the Principal Underwriter of the fund                                                         
|------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Steven
    T. Watson, 59
    Vice President (2006)                                   | Director,
    Capital Research Company*; Senior Vice President – Capital World Investors, Capital International, Inc.*; Senior Vice
    President – Capital World Investors, Capital Bank and Trust Company*
|Michael
    W. Stockton, 47
    Secretary (2014)                                     | Vice
    President — Fund Business Management Group, Capital Research and Management Company                                                                                                                
|Jeffrey
    P. Regal, 43
    Treasurer (2011)                                        | Vice
    President – Investment Operations, Capital Research and Management Company                                                                                                                         
|Julie
    E. Lawton, 41
    Assistant Secretary (2009)                               | Assistant
    Vice President – Fund Business Management Group, Capital Research and Management Company                                                                                                      
|Dori
    Laskin, 63
    Assistant Treasurer (2011)                                   | Vice
    President – Investment Operations, Capital Research and Management Company                                                                                                                         
|Ari
    M. Vinocor, 39
    Assistant Treasurer (2012)                                | Vice
    President – Investment Operations, Capital Research and Management Company                                                                                                                         



| | * | Company affiliated with Capital Research and Management Company.
| | - | ----------------------------------------------------------------

| | 1 | The term “independent” trustee refers to a trustee who is not an “interested person” of the fund within
the meaning of the 1940 Act.
| | - | ------------------------------------------------------------------------------------------------------------------------------------

| | 2 | Trustees
                                         and officers of the fund serve until their resignation, removal or retirement.
| | - | --------------------------------------------------------------------------------------------------------------------------------

| | 3 | This includes all directorships/trusteeships (other than those in the American Funds or other funds managed by Capital Research
and Management Company or its affiliates) that are held by each trustee as a director/trustee of a public company or a registered
investment company. Unless otherwise noted, all directorships/trusteeships are current.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4 | The term “interested” trustee refers to a trustee who is an “interested person” of the fund within
the meaning of the 1940 Act, on the basis of his or her affiliation with the fund’s investment adviser, Capital Research
and Management Company, or affiliated entities (including the fund’s principal underwriter).
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5 | All of the officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research
and Management Company serves as investment adviser.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The address for all trustees and
officers of the fund is 333 South Hope Street, 55th Floor, Los Angeles, California 90071, Attention: Secretary.

The Income Fund of America - Page 23







Fund shares owned by trustees as
of December 31, 2013:

|Name                   | Dollar range1
of fund
shares owned | Aggregate
dollar range1
of shares
owned in
all funds
in the
American Funds
family overseen
by trustee | Dollar
range1,2 of
independent 
trustees
deferred compensation3allocated
to fund | Aggregate
dollar
range1,2 of
independent
trustees
deferred
compensation3 allocated to
all funds
within
American Funds
family overseen
by trustee
|---------------------- | ---------------------------------- | ----------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------
|“Independent” trustees
|William H. Baribault   | $1– $10,000                        | Over $100,000                                                                                         | N/A                                                                              | $10,001 – $50,000                                                                                                                               
|Vanessa C. L. Chang    | $50,001 – $100,000                 | Over $100,000                                                                                         | N/A                                                                              | N/A                                                                                                                                             
|Linda Griego           | Over $100,000                      | Over $100,000                                                                                         | N/A                                                                              | N/A                                                                                                                                             
|Leonade D. Jones       | Over $100,000                      | Over $100,000                                                                                         | Over $100,000                                                                    | Over $100,000                                                                                                                                   
|William D. Jones       | Over $100,000                      | Over $100,000                                                                                         | $50,001 – $100,000                                                               | Over $100,000                                                                                                                                   
|James J. Postl         | Over $100,000                      | Over $100,000                                                                                         | Over $100,000                                                                    | Over $100,000                                                                                                                                   
|Margaret Spellings     | None                               | Over $100,000                                                                                         | $10,001 – $50,000                                                                | $50,001 – $100,000                                                                                                                              
|Isaac Stein            | Over $100,000                      | Over $100,000                                                                                         | Over $100,000                                                                    | Over $100,000                                                                                                                                   





|Name                 | Dollar range1
of fund
shares owned | Aggregate
dollar range1
of shares
owned in
all funds
in the
American Funds
family overseen
by trustee
|-------------------- | ---------------------------------- | -----------------------------------------------------------------------------------------------------
|“Interested” trustee
|Hilda L. Applbaum    | Over $100,000                      | Over $100,000                                                                                        

| | 1 | Ownership disclosure is made using the following ranges: None; $1 – $10,000; $10,001 – $50,000; $50,001 –
$100,000; and Over $100,000. The amounts listed for “interested” trustees include shares owned through The Capital
Group Companies, Inc. retirement plan and 401(k) plan.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2 | N/A indicates that the listed individual, as of December 31, 2013, was not a trustee of a particular fund, did not allocate
deferred compensation to the fund or did not participate in the deferred compensation plan.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3 | Eligible trustees may defer their compensation under a nonqualified deferred compensation plan. Amounts deferred by the trustee
accumulate at an earnings rate determined by the total return of one or more American Funds as designated by the trustee.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Income Fund of America - Page 24







Trustee compensation — No
compensation is paid by the fund to any officer or trustee who is a director, officer or employee of the investment adviser or
its affiliates. Except for the independent trustees listed in the “Board of trustees and officers — ‘Independent’
trustees” table under the “Management of the fund” section in this statement of additional information, all other
officers and trustees of the fund are directors, officers or employees of the investment adviser or its affiliates. The boards
of funds advised by the investment adviser typically meet either individually or jointly with the boards of one or more other such
funds with substantially overlapping board membership (in each case referred to as a “board cluster”). The fund typically
pays each independent trustee an annual fee, which ranges from $12,344 to $23,750, based primarily on the total number of board
clusters on which that independent trustee serves.

In addition, the fund generally pays
independent trustees attendance and other fees for meetings of the board and its committees. Board and committee chairs receive
additional fees for their services.

Independent trustees also receive attendance
fees for certain special joint meetings and information sessions with directors and trustees of other groupings of funds advised
by the investment adviser. The fund and the other funds served by each independent trustee each pay an equal portion of these attendance
fees.

No pension or retirement benefits are
accrued as part of fund expenses. Independent trustees may elect, on a voluntary basis, to defer all or a portion of their fees
through a deferred compensation plan in effect for the fund. The fund also reimburses certain expenses of the independent trustees.

The Income Fund of America - Page 25







Trustee compensation earned during
the fiscal year ended July 31, 2014:

|Name                     | Aggregate
    compensation
    (including voluntarily
    deferred compensation1)
    from the fund | Total
    compensation (including
    voluntarily deferred
    compensation1)
    from all funds managed by
    Capital Research and
    Management
    Company or its affiliates
|------------------------ | --------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|William
    H. Baribault | $35,054                                                                                             | $294,541                                                                                                                                                                         
|Vanessa
    C. L. Chang  | 38,329                                                                                              | 230,135                                                                                                                                                                          
|Linda
    Griego         | 46,018                                                                                              | 135,639                                                                                                                                                                          
|Leonade
    D. Jones2    | 36,506                                                                                              | 294,285                                                                                                                                                                          
|William
    D. Jones2    | 37,620                                                                                              | 250,490                                                                                                                                                                          
|James
    J. Postl2      | 52,136                                                                                              | 155,473                                                                                                                                                                          
|Margaret
    Spellings2  | 39,471                                                                                              | 276,106                                                                                                                                                                          
|Isaac
    Stein2         | 63,910                                                                                              | 189,306                                                                                                                                                                          

| | 1 | Amounts
                                         may be deferred by eligible trustees under a nonqualified deferred compensation plan
                                         adopted by the fund in 1993. Deferred amounts accumulate at an earnings rate determined
                                         by the total return of one or more American Funds as designated by the trustees. Compensation
                                         shown in this table for the fiscal year ended July 31, 2014 does not include earnings
                                         on amounts deferred in previous fiscal years. See footnote 3 to this table for more information.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2 | Since
                                         the deferred compensation plan’s adoption, the total amount of deferred compensation
                                         accrued by the fund (plus earnings thereon) through the end of the 2014 fiscal year for
                                         participating trustees is as follows: Leonade D. Jones ($188,799), William D. Jones ($110,357),
                                         James J. Postl ($431,164), Margaret Spellings ($23,289) and Isaac Stein ($313,093). Amounts
                                         deferred and accumulated earnings thereon are not funded and are general unsecured liabilities
                                         of the fund until paid to the trustees.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

As of September 1, 2014, the officers
and trustees of the fund and their families, as a group, owned beneficially or of record less than 1% of the outstanding shares
of the fund.

Fund organization and the board
of trustees — The fund, an open-end, diversified management investment company, was organized as a Delaware corporation
on March 8, 1969, reorganized as a Maryland corporation on December 16, 1983, and reorganized as a Delaware statutory trust on
October 1, 2010. All fund operations are supervised by the fund’s board of trustees which meets periodically and performs
duties required by applicable state and federal laws.

Delaware law charges trustees with the
duty of managing the business affairs of the trust. Trustees are considered to be fiduciaries of the trust and owe duties of care
and loyalty to the trust and its shareholders.

Independent board members are paid certain
fees for services rendered to the fund as described above. They may elect to defer all or a portion of these fees through a deferred
compensation plan in effect for the fund.

The fund has several different classes
of shares. Shares of each class represent an interest in the same investment portfolio. Each class has pro rata rights as to voting,
redemption, dividends and liquidation, except that each class bears different distribution expenses and may bear different transfer
agent fees and other expenses properly attributable to the particular class as approved by the board of trustees and set forth
in the fund’s rule 18f-3 Plan. Each class’ shareholders have exclusive voting rights with respect to the respective
class’ rule 12b-1 plans adopted in connection with the distribution of shares and on other matters in which the interests
of one class are different from interests in another class. Shares of all classes of the fund vote together on matters that affect
all classes in substantially the same manner. Each class votes as a class on matters that affect that class alone. Note that 529
college savings plan account owners invested in Class 529 shares are not shareholders of the fund and,

The Income Fund of America - Page 26





accordingly, do not have the rights
of a shareholder, such as the right to vote proxies relating to fund shares. As the legal owner of the fund’s Class 529
shares, the Virginia College Savings PlanSM (“Virginia529SM”) will vote any proxies relating
to the fund’s Class 529 shares. In addition, the trustees have the authority to establish new series and classes of shares,
and to split or combine outstanding shares into a greater or lesser number, without shareholder approval.

The fund does not hold annual meetings
of shareholders. However, significant matters that require shareholder approval, such as certain elections of board members or
a change in a fundamental investment policy, will be presented to shareholders at a meeting called for such purpose. Shareholders
have one vote per share owned.

The fund’s declaration of trust
and by-laws, as well as separate indemnification agreements with independent trustees, provide in effect that, subject to certain
conditions, the fund will indemnify its officers and trustees against liabilities or expenses actually and reasonably incurred
by them relating to their service to the fund. However, trustees are not protected from liability by reason of their willful misfeasance,
bad faith, gross negligence or reckless disregard of the duties involved in the conduct of their office.

Removal of trustees by shareholders
— At any meeting of shareholders, duly called and at which a quorum is present, shareholders may, by the affirmative
vote of the holders of two-thirds of the votes entitled to be cast, remove any trustee from office and may elect a successor or
successors to fill any resulting vacancies for the unexpired terms of removed trustees. In addition, the trustees of the fund will
promptly call a meeting of shareholders for the purpose of voting upon the removal of any trustees when requested in writing to
do so by the record holders of at least 10% of the outstanding shares.

Leadership structure — The
board’s chair is currently an independent trustee who is not an “interested person” of the fund within the meaning
of the 1940 Act. The board has determined that an independent chair facilitates oversight and enhances the effectiveness of the
board. The independent chair’s duties include, without limitation, generally presiding at meetings of the board, approving
board meeting schedules and agendas, leading meetings of the independent trustees in executive session, facilitating communication
with committee chairs, and serving as the principal independent trustee contact for fund management and counsel to the independent
trustees and the fund.

Risk oversight — Day-to-day
management of the fund, including risk management, is the responsibility of the fund’s contractual service providers, including
the fund’s investment adviser, principal underwriter/distributor and transfer agent. Each of these entities is responsible
for specific portions of the fund’s operations, including the processes and associated risks relating to the fund’s
investments, integrity of cash movements, financial reporting, operations and compliance. The board of trustees oversees the service
providers’ discharge of their responsibilities, including the processes they use to manage relevant risks. In that regard,
the board receives reports regarding the operations of the fund’s service providers, including risks. For example, the board
receives reports from investment professionals regarding risks related to the fund’s investments and trading. The board also
receives compliance reports from the fund’s and the investment adviser’s chief compliance officers addressing certain
areas of risk.

Committees of the fund’s board,
as well as joint committees of independent board members of funds managed by Capital Research and Management Company, also explore
risk management procedures in particular areas and then report back to the full board. For example, the fund’s audit committee
oversees the processes and certain attendant risks relating to financial reporting, valuation of fund assets, and related controls.
Similarly, a joint review and advisory committee oversees certain risk controls relating to the fund’s transfer agency services.

The Income Fund of America - Page 27





Not all risks that may affect the fund
can be identified or processes and controls developed to eliminate or mitigate their effect. Moreover, it is necessary to bear
certain risks (such as investment-related risks) to achieve the fund’s objectives. As a result of the foregoing and other
factors, the ability of the fund’s service providers to eliminate or mitigate risks is subject to limitations.

Committees of the board of trustees
— The fund has an audit committee comprised of William H. Baribault, Vanessa C. L. Chang, Linda
Griego, Leonade D. Jones, James J. Postl and Margaret Spellings, none of whom is an “interested person”
of the fund within the meaning of the 1940 Act. The committee provides oversight regarding the fund’s accounting and financial
reporting policies and practices, its internal controls and the internal controls of the fund’s principal service providers.
The committee acts as a liaison between the fund’s independent registered public accounting firm and the full board of trustees.
The audit committee held five meetings during the 2014 fiscal year.

The fund has a contracts
committee comprised of all of its independent board members, none of whom is an “interested person” of the fund within
the meaning of the 1940 Act. The committee’s principal function is to request, review and consider the information
deemed necessary to evaluate the terms of certain agreements between the fund and its investment adviser or the investment
adviser’s affiliates, such as the Investment Advisory and Service Agreement, Principal Underwriting Agreement,
Administrative Services Agreement and Plans of Distribution adopted pursuant to rule 12b-1 under the 1940 Act, that the fund
may enter into, renew or continue, and to make its recommendations to the full board of trustees on these matters. The
contracts committee held one meeting during the 2014 fiscal year.

The fund has a nominating and governance
committee comprised of Leonade D. Jones, William D. Jones, James J. Postl, Margaret Spellings and Isaac Stein, none
of whom is an “interested person” of the fund within the meaning of the 1940 Act. 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 trustees. The committee also evaluates, selects and nominates independent trustee
candidates to the full board of trustees. While the committee normally is able to identify from its own and other 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 fund,
addressed to the fund’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 committee. The nominating
and governance committee held two meetings during the 2014 fiscal year.

Proxy voting procedures and principles
— The fund’s investment adviser, in consultation with the fund’s board, has adopted Proxy Voting Procedures
and Principles (the “Principles”) with respect to voting proxies of securities held by the fund, other American Funds
and American Funds Insurance Series. The complete text of these principles is available on the American Funds website at americanfunds.com.
Proxies are voted by a committee of the appropriate equity investment division of the investment adviser under authority delegated
by the funds’ boards. Therefore, if more than one fund invests in the same company, they may vote differently on the same
proposal. In addition, the funds’ boards monitor the proxy voting process and generally provide guidance with respect to
the Principles through a joint proxy committee of the American Funds.

The investment adviser seeks to vote
all U.S. proxies; however, in certain circumstances it may be impracticable or impossible to do so. Proxies for companies outside
the U.S. also are voted, provided there is sufficient time and information available. After a proxy statement is received, the
investment adviser prepares a summary of the proposals contained in the proxy statement. A notation of any potential conflicts
of interest also is included in the summary (see below for a description of Capital

The Income Fund of America - Page 28





Research and Management Company’s
special review procedures). For proxies of securities managed by a particular investment division of the investment adviser, the
initial voting recommendation is made by one or more of the division’s investment analysts familiar with the company and
industry. A second recommendation is made by a proxy coordinator (an investment analyst or other individual with experience in
corporate governance and proxy voting matters) within the appropriate investment division, based on knowledge of these Principles
and familiarity with proxy-related issues. The proxy summary and voting recommendations are made available to the appropriate proxy
voting committee for a final voting decision.

The boards of the equity-oriented funds
managed by the investment adviser have established a Joint Proxy Committee (“JPC”) composed of independent board members
from each board. The JPC’s role is to facilitate appropriate oversight of the proxy voting process and provide valuable input
on corporate governance and related matters. Members of the JPC also may be called upon to resolve voting conflicts involving funds
co-managed by the investment adviser’s equity investment divisions and vote proxies when necessary as a result of regulatory
requirements (see below for more information).

From time to time the investment adviser
may vote proxies issued by, or on proposals sponsored or publicly supported by (1) a client with substantial assets
managed by the investment adviser or its affiliates, (2) an entity with a significant business relationship with the
American Funds organization, or (3) a company with a director of an American Fund on its board (each referred to as
an “Interested Party”). Other persons or entities may also be deemed an Interested Party if facts or circumstances
appear to give rise to a potential conflict. The investment adviser analyzes these proxies and proposals on their merits and does
not consider these relationships when casting its vote.

The investment adviser has developed
procedures to identify and address instances where a vote could appear to be influenced by such a relationship. Under the procedures,
prior to a final vote being cast by the investment adviser, the relevant proxy committees’ voting results for proxies issued
by Interested Parties are reviewed by a Special Review Committee (“SRC”) of the investment division voting the proxy
if the vote was in favor of the Interested Party.

If a potential conflict is identified
according to the procedure above, the SRC will be provided with a summary of any relevant communications with the Interested Party,
the rationale for the voting decision, information on the organization’s relationship with the party and any other pertinent
information. The SRC will evaluate the information and determine whether the decision was in the best interest of fund shareholders.
It will then accept or override the voting decision or determine alternative action. The SRC includes senior investment professionals
and legal and compliance professionals.

In cases where a fund is co-managed and
a portfolio company is held by more than one of the investment adviser’s equity investment divisions, voting ties are resolved
by one of the following methods. First, for those funds that have delegated tie-breaking authority to the investment adviser, the
outcome will be determined by the equity investment division with the larger position in the portfolio company as of the record
date for the shareholder meeting. For the remaining funds, members of the JPC representing those funds will determine the outcome
based on a review of the same information provided to the relevant investment analysts, proxy coordinators and proxy committee
members.

The Principles, which have been in effect
in substantially their current form for many years, provide an important framework for analysis and decision-making by all funds.
However, they are not exhaustive and do not address all potential issues. The Principles provide a certain amount of flexibility
so that all relevant facts and circumstances can be considered in connection with every vote. As a result, each proxy received
is voted on a case-by-case basis considering the specific circumstances of each

The Income Fund of America - Page 29





proposal. The voting process reflects
the funds’ understanding of the company’s business, its management and its relationship with shareholders over time.

Information regarding how the fund voted
proxies relating to portfolio securities during the 12-month period ended June 30 of each year will be available on or about
September 1 of each year (a) without charge, upon request by calling American Funds Service Company at (800) 421-4225,
(b) on the American Funds website and (c) on the SEC’s website at sec.gov.

The following summary sets forth the
general positions of the American Funds, American Funds Insurance Series and the investment adviser on various proposals. A copy
of the full Principles is available upon request, free of charge, by calling American Funds Service Company or visiting the American
Funds website.

Director matters —
The election of a company’s slate of nominees for director generally is supported. Votes may be withheld for some or all
of the nominees if this is determined to be in the best interest of shareholders. Separation of the chairman and CEO positions
also may be supported.

Governance provisions —
Typically, proposals to declassify a board (elect all directors annually) are supported based on the belief that this increases
the directors’ sense of accountability to shareholders. Proposals for cumulative voting generally are supported in order
to promote management and board accountability and an opportunity for leadership change. Proposals designed to make director elections
more meaningful, either by requiring a majority vote or by requiring any director receiving more withhold votes than affirmative
votes to tender his or her resignation, generally are supported.

Shareholder rights —
Proposals to repeal an existing poison pill generally are supported. (There may be certain circumstances, however, when a proxy
voting committee of a fund or an investment division of the investment adviser believes that a company needs to maintain anti-takeover
protection.) Proposals to eliminate the right of shareholders to act by written consent or to take away a shareholder’s right
to call a special meeting typically are not supported.

Compensation and benefit plans
— Option plans are complicated, and many factors are considered in evaluating a plan. Each plan is evaluated based on
protecting shareholder interests and a knowledge of the company and its management. Considerations include the pricing (or repricing)
of options awarded under the plan and the impact of dilution on existing shareholders from past and future equity awards. Compensation
packages should be structured to attract, motivate and retain existing employees and qualified directors; however, they should
not be excessive.

Routine matters —
The ratification of auditors, procedural matters relating to the annual meeting and changes to company name are examples of items
considered routine. Such items generally are voted in favor of management’s recommendations unless circumstances indicate
otherwise.

The Income Fund of America - Page 30







Principal fund shareholders — The following table identifies those investors who own of record, or are known by the fund to own beneficially, 5%
or more of any class of its shares as of the opening of business on September 1, 2014. Unless otherwise indicated, the ownership
percentages below represent ownership of record rather than beneficial ownership.

|Name
    and address                                                                | Ownership                 | Ownership
    percentage                                                       
|----------------------------------------------------------------------------------- | ------------------------- | -------------------------------------------------------------------------------
|Edward
    D. Jones & Co.
    Omnibus Account
    Saint Louis, MO                   | Record                    | Class A
        Class B
        Class C
        Class 529-A
        Class 529-B
|First Clearing, LLC
        Custody Account
        Saint Louis, MO                 | Record                    | Class A
        Class B
        Class C
        Class F-1
        Class F-2    
|Pershing, LLC
        Custody Account
        Jersey City, NJ                       | Record                    | Class A
        Class B
        Class C
        Class F-1
        Class F-2    
|National Financial Services, LLC
        Omnibus Account
        Jersey City, NJ    | Record                    | Class B
        Class F-1
        Class F-2                                    
|Merrill Lynch
        Omnibus Account
        Jacksonville, FL                      | Record                    | Class C
        Class F-1
        Class F-2                                    
|Morgan Stanley & Co., Inc.
        Omnibus Account
        Jersey City, NJ          | Record                    | Class C
        Class F-1
        Class F-2                                    
|Raymond James
        Omnibus Account
        St. Petersburg, FL                    | Record                    | Class C
        Class F-1                                                      
|Charles Schwab & Co., Inc.
        Custody Account
        San Francisco, CA        | Record                    | Class F-1
        Class F-2
        Class R-5                                  
|LPL Financial
        Omnibus Account
        San Diego, CA                         | Record                    | Class F-1
        Class F-2                                                    
|UBS WM USA
        Omnibus Account
        Jersey City, NJ                          | Record                    | Class F-1
        Class F-2                                                    
|Hartford Life Insurance Co. Separate Account
        401K Plan
        Hartford, CT | Record
        Beneficial | Class R-1
        Class R-3                                                    
|ING Life Insurance & Annuity
        Hartford, CT                                   | Record                    | Class
    R-3                                                                  
|State Street Bank & Trust Co.
        Omnibus Account
        Harrison, NY          | Record                    | Class R-3
        Class R-4                                                    
|Edward D. Jones & Co.
        Retirement Plan
        Norwood, MA                   | Record
        Beneficial | Class
    R-5                                                                  
|John Hancock Life Insurance Co. USA
        Omnibus Account
        Boston, MA      | Record                    | Class
    R-5                                                                  
|Nationwide Trust Company
        Columbus, OH                                       | Record                    | Class
    R-5                                                                  

The Income Fund of America - Page 31







|Name
    and address                                                               | Ownership                 | Ownership
    percentage
|---------------------------------------------------------------------------------- | ------------------------- | ------------------------
|Delaware Charter Guarantee & Trust
        Retirement Plans
        Des Moines, IA | Record
        Beneficial | Class
    R-5           
|American Funds Income Portfolio
        Irvine, CA                                 | Record                    | Class
    R-6           
|American Funds 2020 Target Date Retirement
        Fund
        Los Angeles, CA    | Record                    | Class
    R-6           
|American Funds 2030 Target Date Retirement
        Fund
        Los Angeles, CA    | Record                    | Class
    R-6           
|American Funds 2025 Target Date Retirement
        Fund
        Los Angeles, CA    | Record                    | Class
    R-6           
|American Funds 2015 Target Date Retirement
        Fund
        Los Angeles, CA    | Record                    | Class
    R-6           
|American Funds 2035 Target Date Retirement
        Fund
        Los Angeles, CA    | Record                    | Class
    R-6           

Unless otherwise noted, references
in this statement of additional information to Class F shares, Class R shares or Class 529 shares refer to both F share classes,
all R share classes or all 529 share classes, respectively.

The Income Fund of America - Page 32







Investment adviser —
Capital Research and Management Company, the fund’s investment adviser, founded in 1931, maintains research facilities in
the United States and abroad (Los Angeles, San Francisco, New York, Washington, D.C., London, Geneva, Hong Kong, Singapore and
Tokyo). These facilities are staffed with experienced investment professionals. The investment adviser is located at 333 South
Hope Street, Los Angeles, CA 90071. It is a wholly owned subsidiary of The Capital Group Companies, Inc., a holding company for
several investment management subsidiaries. Capital Research and Management Company manages equity assets through three equity
investment divisions and fixed-income assets through its fixed-income investment division, Capital Fixed Income Investors. The
three equity investment divisions — Capital World Investors, Capital Research Global Investors and Capital International
Investors — make investment decisions independently of one another. Portfolio managers in Capital International Investors
rely on a research team that also provides investment services to institutional clients and other accounts advised by affiliates
of Capital Research and Management Company. The investment adviser, which is deemed to operate the fund under the Commodity Exchange
Act (the “CEA”), has claimed an exclusion from the definition of the term commodity pool operator under the CEA with
respect to the fund and, therefore, is not subject to registration or regulation as such under the CEA with respect to the fund.

The investment adviser has adopted policies
and procedures that address issues that may arise as a result of an investment professional’s management of the fund and
other funds and accounts. Potential issues could involve allocation of investment opportunities and trades among funds and accounts,
use of information regarding the timing of fund trades, investment professional compensation and voting relating to portfolio securities.
The investment adviser believes that its policies and procedures are reasonably designed to address these issues.

Compensation of investment professionals
— As described in the prospectus, the investment adviser uses a system of multiple portfolio managers in managing fund
assets. In addition, Capital Research and Management Company’s investment analysts may make investment decisions with respect
to a portion of a fund’s portfolio within their research coverage.

Portfolio managers and investment analysts
are paid competitive salaries by Capital Research and Management Company. In addition, they may receive bonuses based on their
individual portfolio results. Investment professionals also may participate in profit-sharing plans. The relative mix of compensation
represented by bonuses, salary and profit-sharing plans will vary depending on the individual’s portfolio results, contributions
to the organization and other factors.

To encourage a long-term focus, bonuses
based on investment results are calculated by comparing pretax total investment returns to relevant benchmarks over the most recent
year, a four-year rolling average and an eight-year rolling average with greater weight placed on the four-year and eight-year
rolling averages. For portfolio managers, benchmarks may include measures of the marketplaces in which the fund invests and measures
of the results of comparable mutual funds. For investment analysts, benchmarks may include relevant market measures and appropriate
industry or sector indexes reflecting their areas of expertise. Capital Research and Management Company makes periodic subjective
assessments of analysts’ contributions to the investment process and this is an element of their overall compensation. The
investment results of each of the fund’s portfolio managers may be measured against one or more benchmarks, depending on
his or her investment focus, such as: Lipper High Current Yield Bond Funds Average; Barclays U.S. Aggregate Index; a custom index
of higher yielding securities from the MSCI World ex-USA Index; a custom index of higher yielding securities from the MSCI USA
Index; Barclays U.S. Corporate High Yield Index 2% Issuer Cap; Lipper Corporate Debt Funds BBB-Rated Average; Barclays Baa Corporate
Index; Lipper Income Funds Index; Lipper Equity Income Funds Index; and Lipper Core Bond Funds Average. From time to time, Capital
Research and Management Company may adjust or customize these benchmarks to better reflect the universe of comparably managed
funds of competitive investment management firms.

The Income Fund of America - Page 33





Portfolio manager fund holdings and
other managed accounts — As described below, portfolio managers may personally own shares of the fund. In addition, portfolio
managers may manage portions of other mutual funds or accounts advised by Capital Research and Management Company or its affiliates.

The following table reflects information
as of July 31, 2014:

|Portfolio
    manager | Dollar
    range
    of fund
    shares
    owned1 | Number
    of other
    registered
    investment
    companies (RICs)
    for which
    portfolio
    manager
    is a manager
    (assets of RICs
    in billions)2 | Number
    of other
    pooled
    investment
    vehicles (PIVs)
    for which
    portfolio
    manager
    is a manager
    (assets of PIVs
    in billions)3 | Number
    of other
    accounts
    for which
    portfolio
    manager
    is a manager
    (assets of
    other accounts
    in billions)4
|--------------------- | -------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------
|Hilda
    L. Applbaum | $500,001
    ‍– $1,000,000                         | 2                                                                                                                                                                     | $74.8                                                                                                                                                            | 1                                                                                                                                            
|David
    C. Barclay  | Over
    $1,000,000                                | 3                                                                                                                                                                     | $32.3                                                                                                                                                            | None                                                                                                                                         
|Dina
    N. Perry     | Over
    $1,000,000                                | 2                                                                                                                                                                     | $143.6                                                                                                                                                           | 1                                                                                                                                            
|Andrew
    B. Suzman  | Over
    $1,000,000                                | 6                                                                                                                                                                     | $173.2                                                                                                                                                           | None                                                                                                                                         
|Joanna
    F. Jonsson | Over
    $1,000,000                                | 2                                                                                                                                                                     | $56.7                                                                                                                                                            | 2                                                                                                                                            
|John
    H. Smet      | $500,001
    ‍– $1,000,000                         | 6                                                                                                                                                                     | $148.4                                                                                                                                                           | None                                                                                                                                         
|Steven
    T. Watson  | Over
    $1,000,000                                | 4                                                                                                                                                                     | $73.1                                                                                                                                                            | None                                                                                                                                         
|David
    A. Daigle   | $100,001
    ‍– $500,000                           | 6                                                                                                                                                                     | $66.9                                                                                                                                                            | 2                                                                                                                                            
|James
    R. Mulally  | $500,001
    ‍– $1,000,000                         | 7                                                                                                                                                                     | $93.3                                                                                                                                                            | 1                                                                                                                                            

| | 1 | Ownership disclosure is made using the following ranges: None; $1 – $10,000; $10,001 – $50,000; $50,001 –
$100,000; $100,001 – $500,000; $500,001 – $1,000,000; and Over $1,000,000. The amounts listed include shares owned
through The Capital Group Companies, Inc. retirement plan and 401(k) plan.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 2 | Indicates RIC(s) for which the portfolio manager also has significant day to day management responsibilities. Assets noted
are the total net assets of the RIC(s) and are not the total assets managed by the individual, which is a substantially lower amount.
No RIC or account has an advisory fee that is based on the performance of the RIC or account.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 3 | Represents funds advised or sub-advised by Capital Research and Management Company or its affiliates and sold outside the United
States and/or fixed-income assets in institutional accounts managed by investment adviser subsidiaries of Capital Group International,
Inc., an affiliate of Capital Research and Management Company. Assets noted are the total net assets of the funds or accounts and
are not the total assets managed by the individual, which is a substantially lower amount. No fund or account has an advisory fee
that is based on the performance of the fund or account.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 4 | Reflects other professionally managed accounts held at companies affiliated with Capital Research and Management Company. Personal
brokerage accounts of portfolio managers and their families are not reflected.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The Income Fund of America - Page 34







Investment Advisory and Service
Agreement — The Investment Advisory and Service Agreement (the “Agreement”) between the fund and
the investment adviser will continue in effect until January 31, 2015, unless sooner terminated, and may be renewed
from year to year thereafter, provided that any such renewal has been specifically approved at least annually by (a) the
board of trustees, or by the vote of a majority (as defined in the 1940 Act) of the outstanding voting securities of the fund,
and (b) the vote of a majority of trustees who are not parties to the Agreement or interested persons (as defined in the
1940 Act) of any such party, cast in person at a meeting called for the purpose of voting on such approval. The Agreement provides
that the investment adviser has no liability to the fund for its acts or omissions in the performance of its obligations to the
fund not involving willful misconduct, bad faith, gross negligence or reckless disregard of its obligations under the Agreement.
The Agreement also provides that either party has the right to terminate it, without penalty, upon 60 days’ written notice
to the other party, and that the Agreement automatically terminates in the event of its assignment (as defined in the 1940 Act).
In addition, the Agreement provides that the investment adviser may delegate all, or a portion of, its investment management responsibilities
to one or more subsidiary advisers approved by the fund’s board, pursuant to an agreement between the investment adviser
and such subsidiary. Any such subsidiary adviser will be paid solely by the investment adviser out of its fees.

In addition to providing investment advisory
services, the investment adviser furnishes the services and pays the compensation and travel expenses of persons to perform the
fund’s executive, administrative, clerical and bookkeeping functions, and provides suitable office space, necessary small
office equipment and utilities, general purpose accounting forms, supplies and postage used at the fund’s offices. The fund
pays all expenses not assumed by the investment adviser, including, but not limited to: custodian, stock transfer and dividend
disbursing fees and expenses; shareholder recordkeeping and administrative expenses; costs of the designing, printing and mailing
of reports, prospectuses, proxy statements and notices to its shareholders; taxes; expenses of the issuance and redemption of fund
shares (including stock certificates, registration and qualification fees and expenses); expenses pursuant to the fund’s
plans of distribution (described below); legal and auditing expenses; compensation, fees and expenses paid to independent trustees;
association dues; costs of stationery and forms prepared exclusively for the fund; and costs of assembling and storing shareholder
account data.

The Income Fund of America - Page 35







The management fee is based upon the
daily net assets of the fund and monthly gross investment income. Gross investment income is determined in accordance with generally
accepted accounting principles and does not include gains or losses from sales of capital assets.

The management fee is based upon
the following annualized rates and daily net asset levels, plus 2.25% of the fund’s gross investment income for the preceding
month:

|Rate             | Net
    asset level          
|---------------- | -----------------------------
|In
    excess of | Up
    to                    
|0.25%            | $                           0
|0.23             | 500,000,000                  
|0.21             | 1,000,000,000                
|0.19             | 1,500,000,000                
|0.17             | 2,500,000,000                
|0.16             | 4,000,000,000                
|0.15             | 6,500,000,000                
|0.144            | 10,500,000,000               
|0.141            | 13,000,000,000               
|0.138            | 17,000,000,000               
|0.135            | 21,000,000,000               
|0.133            | 27,000,000,000               
|0.131            | 34,000,000,000               
|0.129            | 44,000,000,000               
|0.127            | 55,000,000,000               
|0.125            | 71,000,000,000               
|0.123            | 89,000,000,000               



For the fiscal years ended July 31,
2014, 2013 and 2012, the investment adviser received from the fund management fees of $206,680,000, $178,820,000 and $164,171,000,
respectively.

Administrative services —
The investment adviser and its affiliates provide certain administrative services for shareholders of the fund’s Class A,
C, F, R and 529 shares. Services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties
that provide services to fund shareholders.

These services are provided pursuant
to an Administrative Services Agreement (the “Administrative Agreement”) between the fund and the investment adviser
relating to the fund’s Class A, C, F, R and 529 shares. The Administrative Agreement will continue in effect until January
31, 2015, unless sooner renewed or terminated, and may be renewed from year to year thereafter, provided that any such renewal
has been specifically approved at least annually by the vote of a majority of the members of the fund’s board who are not
parties to the Administrative Agreement or interested persons (as defined in the 1940 Act) of any such party, cast in person at
a meeting called for the purpose of voting on such approval. The fund may terminate the Administrative Agreement at any time by
vote of a majority of independent board members. The investment adviser has the right to terminate the Administrative Agreement
upon 60 days’ written notice to the fund. The Administrative Agreement automatically terminates in the event of its assignment
(as defined in the 1940 Act).

Under the Administrative Agreement, the
investment adviser receives an administrative services fee at the annual rate of .01% of the average daily net assets of the fund
attributable to Class A shares and .05% of the average daily net assets of the fund attributable to Class C, F, R and 529 shares
for administrative services. Administrative services fees are paid monthly and accrued daily.

The Income Fund of America - Page 36





During the 2014 fiscal year, administrative
services fees were:

|                  | Administrative
    services fee
|----------------- | -------------------------------
|Class
    A       | $6,801,000                     
|Class
    C       | 3,257,000                      
|Class
    F-1     | 2,049,000                      
|Class
    F-2     | 915,000                        
|Class
    529-A   | 695,000                        
|Class
    529-B   | 20,000                         
|Class
    529-C   | 224,000                        
|Class
    529-E   | 31,000                         
|Class
    529-F-1 | 24,000                         
|Class
    R-1     | 63,000                         
|Class
    R-2     | 310,000                        
|Class
    R-3     | 668,000                        
|Class
    R-4     | 561,000                        
|Class
    R-5     | 277,000                        
|Class
    R-6     | 1,038,000                      



Principal Underwriter and plans of
distribution — American Funds Distributors, Inc. (the “Principal Underwriter”) is the principal underwriter
of the fund’s shares. The Principal Underwriter is located at 333 South Hope Street, Los Angeles, CA 90071; 6455 Irvine Center
Drive, Irvine, CA 92618; 3500 Wiseman Boulevard, San Antonio, TX 78251; and 12811 North Meridian Street, Carmel, IN 46032.

The Principal Underwriter receives revenues
relating to sales of the fund’s shares, as follows:

| | · | For Class A and 529-A shares, the Principal Underwriter receives commission revenue consisting
of the balance of the Class A and 529-A sales charge remaining after the allowances by the Principal Underwriter to investment
dealers.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | For Class B and 529-B shares sold prior to April 21, 2009, the Principal Underwriter sold its rights
to the .75% distribution-related portion of the 12b-1 fees paid by the fund, as well as any contingent deferred sales charges,
to a third party. The Principal Underwriter compensated investment dealers for sales of Class B and 529-B shares out of the proceeds
of this sale and kept any amounts remaining after this compensation was paid.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | For Class C and 529-C shares, the Principal Underwriter receives any contingent deferred sales
charges that apply during the first year after purchase.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------

In addition, the fund reimburses the Principal
Underwriter for advancing immediate service fees to qualified dealers and advisors upon the sale of Class C and 529-C shares. The
fund also reimburses the Principal Underwriter for service fees (and, in the case of Class 529-E shares, commissions) paid on a
quarterly basis to intermediaries, such as qualified dealers or financial advisors, in connection with investments in Class F-1,
529-F-1, 529-E, R-1, R-2, R-2E, R-3 and R-4 shares.

The Income Fund of America - Page 37







Commissions, revenue or service fees
retained by the Principal Underwriter after allowances or compensation to dealers were:

|            | Fiscal
    year | Commissions,
    revenue
    or fees retained | Allowance
    or
    compensation
    to dealers
|----------- | --------------- | --------------------------------------------- | ------------------------------------------------
|Class A     | 2014            | $22,017,000                                   | $94,709,000                                     
|            | 2013            | 21,771,000                                    | 94,989,000                                      
|            | 2012            | 17,119,000                                    | 76,011,000                                      
|Class C     | 2014            | 57,000                                        | 9,289,000                                       
|            | 2013            | —                                             | 7,545,000                                       
|            | 2012            | —                                             | 5,518,000                                       
|Class 529-A | 2014            | 562,000                                       | 2,551,000                                       
|            | 2013            | 623,000                                       | 2,855,000                                       
|            | 2012            | 601,000                                       | 2,772,000                                       
|Class 529-C | 2014            | 23,000                                        | 447,000                                         
|            | 2013            | —                                             | 451,000                                         
|            | 2012            | 2,000                                         | 406,000                                         



Plans of distribution —
The fund has adopted plans of distribution (the “Plans”) pursuant to rule 12b-1 under the 1940 Act. The Plans permit
the fund to expend amounts to finance any activity primarily intended to result in the sale of fund shares, provided the fund’s
board of trustees has approved the category of expenses for which payment is being made.

Each Plan is specific to a particular
share class of the fund. As the fund has not adopted a Plan for Class F-2, Class R-5 or Class R-6, no 12b-1 fees are paid from
Class F-2, Class R-5 or Class R-6 share assets and the following disclosure is not applicable to these share classes.

Payments under the Plans may be made
for service-related and/or distribution-related expenses. Service-related expenses include paying service fees to qualified dealers.
Distribution-related expenses include commissions paid to qualified dealers. The amounts actually paid under the Plans for the
past fiscal year, expressed as a percentage of the fund’s average daily net assets attributable to the applicable share class,
are disclosed in the prospectus under “Fees and expenses of the fund.” Further information regarding the amounts available
under each Plan is in the “Plans of Distribution” section of the prospectus.

The Income Fund of America - Page 38





Following is a brief description of the
Plans:

Class A and 529-A —
For Class A and 529-A shares, up to .25% of the fund’s average daily net assets attributable to such shares is reimbursed
to the Principal Underwriter for paying service-related expenses, and the balance available under the applicable Plan may be paid
to the Principal Underwriter for distribution-related expenses. The fund may annually expend up to .25% for Class A shares and
up to .50% for Class 529-A shares under the applicable Plan.

Distribution-related expenses for
Class A and 529-A shares include dealer commissions and wholesaler compensation paid on sales of shares of $1 million or more purchased
without a sales charge. Commissions on these “no load” purchases (which are described in further detail under the “Sales
Charges” section of this statement of additional information) in excess of the Class A and 529-A Plan limitations and not
reimbursed to the Principal Underwriter during the most recent fiscal quarter are recoverable for 15 months, provided that the
reimbursement of such commissions does not cause the fund to exceed the annual expense limit. After 15 months, these commissions
are not recoverable.

Class B and 529-B —
The Plans for Class B and 529-B shares provide for payments to the Principal Underwriter of up to .25% of the fund’s average
daily net assets attributable to such shares for paying service-related expenses and .75% for distribution-related expenses, which
include the financing of commissions paid to qualified dealers.

Other share classes (Class
C, F-1, 529-C, 529-E, 529-F-1, R-1, R-2, R-2E, R-3 and R-4) — The Plans for each of the other share classes that
have adopted Plans provide for payments to the Principal Underwriter for paying service-related and distribution-related expenses
of up to the following amounts of the fund’s average daily net assets attributable to such shares:

|Share
    class   | Service
    related
    payments1 | Distribution
    related
    payments1 | Total
    allowable
    under
    the Plans2
|----------------- | --------------------------------- | -------------------------------------- | --------------------------------------------
|Class
    C       | 0.25%                             | 0.75%                                  | 1.00%                                       
|Class
    F-1     | 0.25                              | —                                      | 0.50                                        
|Class
    529-C   | 0.25                              | 0.75                                   | 1.00                                        
|Class
    529-E   | 0.25                              | 0.25                                   | 0.75                                        
|Class
    529-F-1 | 0.25                              | —                                      | 0.50                                        
|Class
    R-1     | 0.25                              | 0.75                                   | 1.00                                        
|Class
    R-2     | 0.25                              | 0.50                                   | 1.00                                        
|Class
    R-2E    | 0.25                              | 0.35                                   | 0.85                                        
|Class
    R-3     | 0.25                              | 0.25                                   | 0.75                                        
|Class
    R-4     | 0.25                              | —                                      | 0.50                                        



| | 1 | Amounts in these columns represent the amounts approved by the board of trustees under the applicable Plan.
| | - | -----------------------------------------------------------------------------------------------------------

| | 2 | The fund may annually expend the amounts set forth in this column under the current Plans with the approval of the board of
trustees.
| | - | -------------------------------------------------------------------------------------------------------------------------------------

The Income Fund of America - Page 39





During the 2014 fiscal year, 12b-1
expenses accrued and paid, and if applicable, unpaid, were:

|                  | 12b-1
    expenses | 12b-1
    unpaid liability
    outstanding
|----------------- | ------------------ | ------------------------------------------
|Class
    A       | $163,059,000       | $17,756,000                               
|Class
    B       | 7,053,000          | 594,000                                   
|Class
    C       | 65,062,000         | 7,229,000                                 
|Class
    F-1     | 10,240,000         | 999,000                                   
|Class
    529-A   | 3,107,000          | 398,000                                   
|Class
    529-B   | 392,000            | 38,000                                    
|Class
    529-C   | 4,448,000          | 640,000                                   
|Class
    529-E   | 309,000            | 44,000                                    
|Class
    529-F-1 | —                  | —                                         
|Class
    R-1     | 1,268,000          | 198,000                                   
|Class
    R-2     | 4,612,000          | 760,000                                   
|Class
    R-3     | 6,638,000          | 998,000                                   
|Class
    R-4     | 2,799,000          | 420,000                                   
|                  |                    |                                           



Approval of the Plans —
As required by rule 12b-1 and the 1940 Act, the Plans (together with the Principal Underwriting Agreement) have been approved by
the full board of trustees and separately by a majority of the independent trustees of the fund who have no direct or indirect
financial interest in the operation of the Plans or the Principal Underwriting Agreement. In addition, the selection and nomination
of independent trustees of the fund are committed to the discretion of the independent trustees during the existence of the Plans.

Potential benefits of the Plans to the
fund include quality shareholder services, savings to the fund in transfer agency costs, and benefits to the investment process
from growth or stability of assets. The Plans may not be amended to materially increase the amount spent for distribution without
shareholder approval. Plan expenses are reviewed quarterly by the board of trustees and the Plans must be renewed annually by the
board of trustees.

A portion of the fund’s 12b-1 expense
is paid to financial advisors to compensate them for providing ongoing services. If you have questions regarding your investment
in the fund or need assistance with your account, please contact your financial advisor. If you need a financial advisor, please
call American Funds Distributors at (800) 421-4120 for assistance.

Fee to Virginia529 —
With respect to Class 529 shares, as compensation for its oversight and administration, Virginia529 receives a quarterly fee accrued
daily and calculated at the annual rate of .10% on the first $30 billion of the net assets invested in Class 529 shares of
the American Funds, .07% on net assets between $30 billion and $50 billion, .06% on net assets between $50 billion
and $70 billion and .05% on net assets over $70 billion. The fee for any given calendar quarter is accrued and calculated
on the basis of average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter.

The Income Fund of America - Page 40







Other compensation to dealers —
As of July 2014, the top dealers (or their affiliates) that American Funds Distributors anticipates will receive additional compensation
(as described in the prospectus) include:

AEGON / Transamerica / Diversified

Diversified Capital Corporation

Diversified Resources, LLC

Diversified Securities, Incorporated

Merrill Lynch Life Insurance Company

Merrill Lynch Life Insurance Company
of New York

Transam Securities, Inc.

Transamerica Financial Advisors, Inc.

Transamerica Financial Life Insurance
Company

Transamerica Investors Securities Corporation

AXA Advisors, LLC

Cadaret, Grant & Co., Inc.

Cambridge

Cambridge Investment Research, Inc.

Cetera Financial Group

Cetera Advisor Networks LLC

Cetera Advisors LLC

Cetera Financial Specialists LLC

Cetera Investment Services LLC

CIMAS, LLC

Commonwealth

Commonwealth Financial Network

D.A. Davidson & Co.

Edward Jones

Edward Jones Health Savings Plan

H. Beck, Inc.

Hefren-Tillotson, Inc.

HTK / Janney Montgomery Group

Hornor, Townsend & Kent, Inc.

Janney Montgomery Scott LLC

ING Group

ING Financial Advisers, LLC

ING Financial Partners, Inc.

ING Investment Advisors, LLC

J.J.B. Hilliard Lyons

Hilliard Lyons Trust Company LLC

J. J. B. Hilliard, W. L. Lyons, LLC

J.P. Morgan Chase Banc One

J.P. Morgan Institutional Investments,
Inc.

J.P. Morgan Securities LLC

JP Morgan Chase Bank, N.A.

Ladenburg Thalmann Group

Investacorp, Inc.

Ladenburg, Thalmann & Co., Inc.

Securities America, Inc.

Triad Advisors, Inc.

The Income Fund of America - Page 41





Lincoln Network

Lincoln Capital Corp (RI)

Lincoln Financial Advisors Corporation

Lincoln Financial Distributors, Inc.

Lincoln Financial Securities Corporation

Lincoln Investment Advisors Corporation

Lincoln Management

Lincoln-Legacy

LPL Group

LPL Financial LLC

Mass Mutual / MML

MassMutual Trust Company FSB

Massmutual Trust Company, FSB (The)

MML Investors Services, LLC

Merrill Lynch Banc of America

Bank of America

Merrill Lynch, Pierce, Fenner &
Smith Incorporated

Metlife Enterprises

Metlife Securities Inc.

New England Securities

Tower Square Securities, Inc.

Walnut Street Securities, Inc.

Morgan Stanley Smith Barney

Morgan Stanley Smith Barney LLC

NFP Securities, Inc.

NMIS

Northwestern Mutual Investment Services,
LLC

NPH / Jackson National

Invest Financial Corporation

Investment Centers of America, Inc.

National Planning Corporation

SII Investments, Inc.

Park Avenue Securities LLC

PFS

PFS Investments Inc.

Puplava Securities, Inc.

Raymond James Group

Morgan Keegan & Company, Inc.

Raymond James & Associates, Inc.

Raymond James Financial Services Inc.

RBC Capital Markets Corporation

Robert W. Baird & Co. Incorporated

Stifel, Nicolaus & Company, Incorporated

The Advisor Group

FSC Securities Corporation

Royal Alliance Associates, Inc.

SagePoint Financial, Inc.

Woodbury Financial Services, Inc.

UBS

UBS Financial Services Inc.

UBS Securities, LLC

The Income Fund of America - Page 42





Wells Fargo Network

First Clearing LLC

Wells Fargo

Wells Fargo Advisors Financial Network,
LLC

Wells Fargo Advisors Investment Services
Group

Wells Fargo Advisors Latin American
Channel

Wells Fargo Advisors Private Client
Group

Wells Fargo Bank, N.A.

Wells Fargo Securities, LLC

The Income Fund of America - Page 43







Execution of portfolio transactions

The investment adviser places orders
with broker-dealers for the fund’s portfolio transactions. Purchases and sales of equity securities on a securities exchange
or an over-the-counter market are effected through broker-dealers who receive commissions for their services. Generally, commissions
relating to securities traded on foreign exchanges will be higher than commissions relating to securities traded on U.S. exchanges
and may not be subject to negotiation. Equity securities may also be purchased from underwriters at prices that include underwriting
fees. Purchases and sales of fixed-income securities are generally made with an issuer or a primary market-maker acting as principal
with no stated brokerage commission. The price paid to an underwriter for fixed-income securities includes underwriting fees. Prices
for fixed-income securities in secondary trades usually include undisclosed compensation to the market-maker reflecting the spread
between the bid and ask prices for the securities.

In selecting broker-dealers, the investment
adviser strives to obtain “best execution” (the most favorable total price reasonably attainable under the circumstances)
for the fund’s portfolio transactions, taking into account a variety of factors. These factors include the size and type
of transaction, the nature and character of the markets for the security to be purchased or sold, the cost, quality, likely speed
and reliability of the executions, the broker-dealer’s or execution venue’s ability to offer liquidity and anonymity
and the potential for minimizing market impact. The investment adviser considers these factors, which involve qualitative judgments,
when selecting broker-dealers and execution venues for fund portfolio transactions. The investment adviser views best execution
as a process that should be evaluated over time as part of an overall relationship with particular broker-dealer firms. The fund
does not consider the investment adviser as having an obligation to obtain the lowest commission rate available for a portfolio
transaction to the exclusion of price, service and qualitative considerations.

The investment adviser may execute portfolio
transactions with broker-dealers who provide certain brokerage and/or investment research services to it, but only when in the
investment adviser’s judgment the broker-dealer is capable of providing best execution for that transaction. The receipt
of these services permits the investment adviser to supplement its own research and analysis and makes available the views of,
and information from, individuals and the research staffs of other firms. Such views and information may be provided in the form
of written reports, telephone contacts and meetings with securities analysts. These services may include, among other things, reports
and other communications with respect to individual companies, industries, countries and regions, economic, political and legal
developments, as well as scheduling meetings with corporate executives and seminars and conferences related to relevant subject
matters. The investment adviser considers these services to be supplemental to its own internal research efforts and therefore
the receipt of investment research from broker-dealers does not tend to reduce the expenses involved in the investment adviser’s
research efforts. If broker-dealers were to discontinue providing such services it is unlikely the investment adviser would attempt
to replicate them on its own, in part because they would then no longer provide an independent, supplemental viewpoint. Nonetheless,
if it were to attempt to do so, the investment adviser would incur substantial additional costs. Research services that the investment
adviser receives from broker-dealers may be used by the investment adviser in servicing the fund and other funds and accounts that
it advises; however, not all such services will necessarily benefit the fund.

The investment adviser may pay commissions
in excess of what other broker-dealers might have charged, including on an execution-only basis, for certain portfolio transactions
in recognition of brokerage and/or investment research services provided by a broker-dealer. In this regard, the investment adviser
has adopted a brokerage allocation procedure consistent with the requirements of Section 28(e) of the U.S. Securities Exchange
Act of 1934. Section 28(e) permits an investment adviser to cause an account to pay a higher commission to a broker-dealer that
provides certain brokerage and/or investment research services to the investment adviser, if the investment adviser makes a good

The Income Fund of America - Page 44





faith determination that such commissions
are reasonable in relation to the value of the services provided by such broker-dealer to the investment adviser in terms of that
particular transaction or the investment adviser’s overall responsibility to the fund and other accounts that it advises.
Certain brokerage and/or investment research services may not necessarily benefit all accounts paying commissions to each such
broker-dealer; therefore, the investment adviser assesses the reasonableness of commissions in light of the total brokerage and
investment research services provided by each particular broker-dealer.

In accordance with its internal brokerage
allocation procedure, each equity investment division of the investment adviser periodically assesses the brokerage and investment
research services provided by each broker-dealer from which it receives such services. Using its judgment, each equity investment
division of the investment adviser provides its trading desks with information regarding the relative value of services provided
by particular broker-dealers. Neither the investment adviser nor the fund incurs any obligation to any broker-dealer to pay for
research by generating trading commissions. As part of its ongoing relationships with broker-dealers, the investment adviser routinely
meets with firms, typically at the firm’s request, to discuss the level and quality of the brokerage and research services
provided, as well as the perceived value and cost of such services. In valuing the brokerage and investment research services the
investment adviser receives from broker-dealers in connection with its good faith determination of reasonableness, the investment
adviser does not attribute a dollar value to such services, but rather takes various factors into consideration, including the
quantity, quality and usefulness of the services to the investment adviser.

The investment adviser seeks, on an ongoing
basis, to determine what the reasonable levels of commission rates are in the marketplace. The investment adviser takes various
considerations into account when evaluating such reasonableness, including, (a) rates quoted by broker-dealers, (b)
the size of a particular transaction in terms of the number of shares and dollar amount, (c) the complexity of a particular
transaction, (d) the nature and character of the markets on which a particular trade takes place, (e) the ability
of a broker-dealer to provide anonymity while executing trades, (f) the ability of a broker-dealer to execute large trades
while minimizing market impact, (g) the extent to which a broker-dealer has put its own capital at risk, (h) the
level and type of business done with a particular broker-dealer over a period of time, (i) historical commission rates,
and (j) commission rates that other institutional investors are paying.

When executing portfolio transactions
in the same equity security for the funds and accounts, or portions of funds and accounts, over which the investment adviser, through
its equity investment divisions, has investment discretion, each of the investment divisions normally aggregates its respective
purchases or sales and executes them as part of the same transaction or series of transactions. When executing portfolio transactions
in the same fixed-income security for the fund and the other funds or accounts over which it or one of its affiliated companies
has investment discretion, the investment adviser normally aggregates such purchases or sales and executes them as part of the
same transaction or series of transactions. The objective of aggregating purchases and sales of a security is to allocate executions
in an equitable manner among the funds and other accounts that have concurrently authorized a transaction in such security.

The investment adviser may place orders
for the fund’s portfolio transactions with broker-dealers who have sold shares of the funds managed by the investment adviser
or its affiliated companies; however, it does not consider whether a broker-dealer has sold shares of the funds managed by the
investment adviser or its affiliated companies when placing any such orders for the fund’s portfolio transactions.

Forward currency contracts are traded
directly between currency traders (usually large commercial banks) and their customers. The cost to the fund of engaging in such
contracts varies with factors such as the currency involved, the length of the contract period and the market conditions then prevailing.
Because such contracts are entered into on a principal basis, their prices usually include undisclosed compensation to the market
maker reflecting the spread between the bid and ask prices for the

The Income Fund of America - Page 45





contracts. The fund may incur additional
fees in connection with the purchase or sale of certain contracts.

Brokerage commissions paid on portfolio
transactions for the fiscal years ended July 31, 2014, 2013 and 2012 amounted to $25,240,000, $27,874,000 and $19,250,000, respectively.
The volume of trading activity increased during the 2013 fiscal year compared with the 2014 and 2012 fiscal years, resulting in
an increase in brokerage commissions paid on portfolio transactions for 2013.

The fund is required to disclose information
regarding investments in the securities of its “regular” broker-dealers (or parent companies of its regular broker-dealers)
that derive more than 15% of their revenue from broker-dealer, underwriter or investment adviser activities. A regular broker-dealer
is (a) one of the 10 broker-dealers that received from the fund the largest amount of brokerage commissions by participating,
directly or indirectly, in the fund’s portfolio transactions during the fund’s most recently completed fiscal year;
(b) one of the 10 broker-dealers that engaged as principal in the largest dollar amount of portfolio transactions of the
fund during the fund’s most recently completed fiscal year; or (c) one of the 10 broker-dealers that sold the largest
amount of securities of the fund during the fund’s most recently completed fiscal year.

At the end of the fund’s most
recently completed fiscal year, the fund’s regular broker-dealers included Citigroup Inc., Goldman Sachs Group, Inc. and
Morgan Stanley & Co. LLC. As of the fund’s most recently completed fiscal year, the fund held equity securities of Citigroup
Inc. in the amount of $93,180,000 and Goldman Sachs Group, Inc. in the amount of $28,815,000. The fund held debt securities of
Citigroup Inc. in the amount of $63,788,000, Goldman Sachs Group, Inc. in the amount of $143,191,000 and Morgan Stanley &
Co. LLC in the amount of $51,804,000.

The Income Fund of America - Page 46







Disclosure of portfolio holdings

The fund’s investment adviser,
on behalf of the fund, has adopted policies and procedures with respect to the disclosure of information about fund portfolio securities.
These policies and procedures have been reviewed by the fund’s board of trustees, and compliance will be periodically assessed
by the board in connection with reporting from the fund’s Chief Compliance Officer.

Under these policies and procedures,
the fund’s complete list of portfolio holdings available for public disclosure, dated as of the end of each calendar quarter,
is permitted to be posted on the American Funds website no earlier than the 10th day after such calendar quarter. In practice,
the publicly disclosed portfolio is typically posted on the American Funds website within 30 days after the end of the calendar
quarter. The publicly disclosed portfolio may exclude certain securities when deemed to be in the best interest of the fund as
permitted by applicable regulations. In addition, the fund’s list of top 10 equity portfolio holdings measured by percentage
of net assets, dated as of the end of each calendar month, is permitted to be posted on the American Funds website no earlier than
the 10th day after such month. Such portfolio holdings information may be disclosed to any person pursuant to an ongoing arrangement
to disclose portfolio holdings information to such person no earlier than one day after the day on which the information is posted
on the American Funds website.

The fund’s custodian, outside counsel,
auditor, financial printers, proxy voting service providers, pricing information vendors, consultants or agents operating under
a contract with the investment adviser or its affiliates, co-litigants (such as in connection with a bankruptcy proceeding related
to a fund holding) and certain other third parties described below, each of which requires portfolio holdings information for legitimate
business and fund oversight purposes, may receive fund portfolio holdings information earlier. See the “General information”
section in this statement of additional information for further information about the fund’s custodian, outside counsel and
auditor.

The fund’s portfolio holdings,
dated as of the end of each calendar month, are made available to up to 20 key broker-dealer relationships with research departments
to help them evaluate the fund for eligibility on approved lists or in model portfolios. These firms include certain of those listed
under the “Other compensation to dealers” section of this statement of additional information and certain broker-dealer
firms that offer trading platforms for registered investment advisers. Monthly holdings may be provided to these intermediaries
no earlier than the 10th day after the end of the calendar month. In practice, monthly holdings are provided within 30 days after
the end of the calendar month. Holdings may also be disclosed more frequently to certain statistical and data collection agencies
including Morningstar, Lipper, Inc., Value Line, Vickers Stock Research, Bloomberg, Overlap and Thomson Financial Research.

Affiliated persons of the fund, including
officers of the fund and employees of the investment adviser and its affiliates, who receive portfolio holdings information are
subject to restrictions and limitations on the use and handling of such information pursuant to applicable codes of ethics, including
requirements not to trade in securities based on confidential and proprietary investment information, to maintain the confidentiality
of such information, and to pre-clear securities trades and report securities transactions activity, as applicable. For more information
on these restrictions and limitations, please see the “Code of ethics” section in this statement of additional information
and the Code of Ethics. Third-party service providers of the fund and other entities, as described in this statement of additional
information, receiving such information are subject to confidentiality obligations. When portfolio holdings information is disclosed
other than through the American Funds website to persons not affiliated with the fund, such persons will be bound by agreements
(including confidentiality agreements) or fiduciary or other obligations that restrict and limit their use of the information to
legitimate business uses only. None of the fund, its investment adviser or any of their affiliates receives compensation or other
consideration in connection with the disclosure of information about portfolio securities.

The Income Fund of America - Page 47





Subject to board policies, the authority
to disclose a fund’s portfolio holdings, and to establish policies with respect to such disclosure, resides with the appropriate
investment-related committees of the fund’s investment adviser. In exercising their authority, the committees determine whether
disclosure of information about the fund’s portfolio securities is appropriate and in the best interest of fund shareholders.
The investment adviser has implemented policies and procedures to address conflicts of interest that may arise from the disclosure
of fund holdings. For example, the investment adviser’s code of ethics specifically requires, among other things, the safeguarding
of information about fund holdings and contains prohibitions designed to prevent the personal use of confidential, proprietary
investment information in a way that would conflict with fund transactions. In addition, the investment adviser believes that its
current policy of not selling portfolio holdings information and not disclosing such information to unaffiliated third parties
until such holdings have been made public on the American Funds website (other than to certain fund service providers and other
third parties for legitimate business and fund oversight purposes) helps reduce potential conflicts of interest between fund shareholders
and the investment adviser and its affiliates.

The fund’s investment adviser and
its affiliates provide investment advice to clients other than the fund that have investment objectives that may be substantially
similar to those of the fund. These clients also may have portfolios consisting of holdings substantially similar to those of the
fund and generally have access to current portfolio holdings information for their accounts. These clients do not owe the fund’s
investment adviser or the fund a duty of confidentiality with respect to disclosure of their portfolio holdings.

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Price of shares

Shares are purchased at the offering
price or sold at the net asset value price next determined after the purchase or sell order is received by the fund or the Transfer
Agent provided that your request contains all information and legal documentation necessary to process the transaction. The Transfer
Agent may accept written orders for the sale of fund shares on a future date. These orders are subject to the Transfer Agent’s
policies, which generally allow shareholders to provide a written request to sell shares at the net asset value on a specified
date no more than five business days after receipt of the order by the Transfer Agent. Any request to sell shares on a future date
will be rejected if the request is not in writing, if the requested transaction date is more than five business days after the
Transfer Agent receives the request or if the request does not contain all information and legal documentation necessary to process
the transaction.

The offering or net asset value price
is effective for orders received prior to the time of determination of the net asset value and, in the case of orders placed with
dealers or their authorized designees, accepted by the Principal Underwriter, the Transfer Agent, a dealer or any of their designees.
In the case of orders sent directly to the fund or the Transfer Agent, an investment dealer should be indicated. The dealer is
responsible for promptly transmitting purchase and sell orders to the Principal Underwriter.

Orders received by the investment dealer
or authorized designee, the Transfer Agent or the fund after the time of the determination of the net asset value will be entered
at the next calculated offering price. Note that investment dealers or other intermediaries may have their own rules about share
transactions and may have earlier cut-off times than those of the fund. For more information about how to purchase through your
intermediary, contact your intermediary directly.

Prices that appear in the newspaper do
not always indicate prices at which you will be purchasing and redeeming shares of the fund, since such prices generally reflect
the previous day’s closing price, while purchases and redemptions are made at the next calculated price. The price you pay
for shares, the offering price, is based on the net asset value per share, which is calculated once daily as of approximately 4
p.m. New York time, which is the normal close of trading on the New York Stock Exchange, each day the New York Stock Exchange is
open. If, for example, the New York Stock Exchange closes at 1 p.m. New York time, the fund’s share price would still be
determined as of 4 p.m. New York time. In such example, portfolio securities traded on the New York Stock Exchange would be valued
at their closing prices unless the investment adviser determines that a fair value adjustment is appropriate due to subsequent
events. The New York Stock Exchange is currently closed on weekends and on the following holidays: New Year’s Day; Martin
Luther King, Jr. Day; Presidents’ Day; Good Friday; Memorial Day; Independence Day; Labor Day; Thanksgiving; and Christmas
Day. Each share class of the fund has a separately calculated net asset value (and share price).

All portfolio securities of funds managed
by Capital Research and Management Company (other than American Funds Money Market Fund®) are valued, and the net asset values
per share for each share class are determined, as indicated below. The fund follows standard industry practice by typically reflecting
changes in its holdings of portfolio securities on the first business day following a portfolio trade.

Equity securities, including depositary
receipts, 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 on which the security
trades.

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Fixed-income securities, including short-term
securities, are generally valued at prices obtained from one or more pricing vendors. The pricing vendors base prices on, among
other things, benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, underlying
equity of the issuer, interest rate volatilities, 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, prepayment information, default
rates, delinquency and loss assumptions, financial or collateral characteristics or performance, credit enhancements, liquidation
value calculations, specific deal information and other reference data. The fund’s investment adviser performs certain checks
on vendor prices prior to calculation of the fund’s net asset value. When 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 ask prices that are reasonably and timely available (or bid prices, if ask prices are not
available) or at prices for securities of comparable maturity, quality and type.

Securities with both fixed-income and
equity characteristics (e.g., convertible bonds, preferred stocks, units comprised of more than one type of security, etc.), 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.

Forward currency contracts are valued
at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors.

Assets or liabilities initially expressed
in terms of currencies other than U.S. dollars are translated prior to the next determination of the net asset value of the fund’s
shares into U.S. dollars at the prevailing market rates.

Securities and other assets for which
representative market quotations are not readily available or are considered unreliable by the investment adviser are valued at
fair value as determined in good faith under fair value guidelines adopted by authority of the fund’s board. Subject to board
oversight, the fund’s board has delegated the obligation to make fair valuation determinations to a valuation committee established
by the fund’s investment adviser. The board receives regular reports describing fair-valued securities and the valuation
methods used.

The valuation committee has adopted guidelines
and procedures (consistent with SEC rules and guidance) to consider certain relevant principles and factors when making all fair
value determinations. As a general principle, securities lacking readily available market quotations, or that have quotations that
are considered unreliable by the investment adviser, are valued in good faith by the valuation committee based upon what the fund
might reasonably expect to receive upon their current sale. 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.
The valuation committee considers relevant indications of value that are reasonably and timely available to it in determining the
fair value to be assigned to a particular security, such as 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. The valuation committee employs additional fair value procedures to address
issues related to equity holdings of applicable fund portfolios outside the United States. Securities owned by these funds trade
in markets that open and close at different times, reflecting time zone differences. If significant events occur after the close
of a market (and before these fund’s net asset values are next determined) which affect the value of portfolio securities,
appropriate adjustments from closing market prices may be made to reflect these events. Events of this type could include, for
example, earthquakes and other natural disasters or significant price changes in other markets (e.g., U.S. stock markets).

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Each class of shares represents interests
in the same portfolio of investments and is identical in all respects to each other class, except for differences relating to distribution,
service and other charges and expenses, certain voting rights, differences relating to eligible investors, the designation of each
class of shares, conversion features and exchange privileges. Expenses attributable to the fund, but not to a particular class
of shares, are borne by each class pro rata based on relative aggregate net assets of the classes. Expenses directly attributable
to a class of shares are borne by that class of shares. Liabilities attributable to particular share classes, such as liabilities
for repurchase of fund shares, are deducted from total assets attributable to such share classes.

Net assets so obtained for each share
class are then divided by the total number of shares outstanding of that share class, and the result, rounded to the nearest cent,
is the net asset value per share for that class.

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Taxes and distributions

Disclaimer: Some of the
following information may not apply to certain shareholders, including those holding fund shares in a tax-favored account, such
as a retirement plan or education savings account. Shareholders should consult their tax advisors about the application of federal,
state and local tax law in light of their particular situation.

Taxation as a regulated investment
company — The fund intends to qualify each year as a “regulated investment company” under Subchapter M of
the Internal Revenue Code of 1986, as amended (the “Code”), so that it will not be liable for federal tax on income
and capital gains distributed to shareholders. In order to qualify as a regulated investment company, and avoid being subject to
federal income taxes, the fund intends to distribute substantially all of its net investment income and realized net capital gains
on a fiscal year basis, and intends to comply with other tests applicable to regulated investment companies under Subchapter M.

The Code includes savings provisions
allowing the fund to cure inadvertent failures of certain qualification tests required under Subchapter M. However, should the
fund fail to qualify under Subchapter M, the fund would be subject to federal, and possibly state, corporate taxes on its taxable
income and gains.

Amounts not distributed by the fund on
a timely basis in accordance with a calendar year distribution requirement may be subject to a nondeductible 4% excise tax. Unless
an applicable exception applies, to avoid the tax, the fund must distribute during each calendar year an amount equal to the sum
of (1) at least 98% of its ordinary income (not taking into account any capital gains or losses) for the calendar year, (2) at
least 98.2% of its capital gains in excess of its capital losses for the twelve month period ending on October 31, and (3) all
ordinary income and capital gains for previous years that were not distributed during such years.

Dividends paid by the fund from ordinary
income or from an excess of net short-term capital gain over net long-term capital loss are taxable to shareholders as ordinary
income dividends. For corporate shareholders, a portion of the fund’s ordinary income dividends may be eligible for the 70%
deduction for dividends received by corporations to the extent the fund’s income consists of dividends paid by U.S. corporations.
This deduction does not include dividends received from non-U.S. corporations and dividends on stocks the fund has not held for
more than 45 days during the 90-day period beginning 45 days before the stock became ex-dividend (90 and 180 days for certain preferred
stock). Corporate shareholders can only apply the lower rate to the qualified portion of a fund’s dividends if they have
held the shares in the fund on which the dividends were paid for the applicable 45 day or 90 day holding period surrounding the
ex-dividend date of the fund’s dividends.

The fund may declare a capital gain distribution
consisting of the excess of net realized long-term capital gains over net realized short-term capital losses. Net capital gains
for a fiscal year are computed by taking into account any capital loss carryforward of the fund. For fund fiscal years beginning
on or after December 22, 2010, capital losses may be carried forward indefinitely and retain their character as either short-term
or long-term. Under prior law, net capital losses could be carried forward for eight tax years and were treated as short-term capital
losses. The fund is required to use capital losses arising in fiscal years beginning on or after December 22, 2010 before using
capital losses arising in fiscal years prior to December 22, 2010.

The fund may retain a portion of net
capital gain for reinvestment and may elect to treat such capital gain as having been distributed to shareholders of the fund.
Shareholders may receive a credit for the tax that the fund paid on such undistributed net capital gain and would increase the
basis in their shares of the fund by the difference between the amount of includible gains and the tax deemed paid by the shareholder.

The Income Fund of America - Page 52





Distributions of net capital gain that
the fund properly designates as a capital gain distribution generally will be taxable as long-term capital gain, regardless of
the length of time the shares of the fund have been held by a shareholder. Any loss realized upon the redemption of shares held
at the time of redemption for six months or less from the date of their purchase will be treated as a long-term capital loss to
the extent of any capital gain distributions (including any undistributed amounts treated as distributed capital gains, as described
above) during such six-month period.

Capital gain distributions by the fund
result in a reduction in the net asset value of the fund’s shares. Investors should consider the tax implications of buying
shares just prior to a capital gain distribution. The price of shares purchased at that time includes the amount of the forthcoming
distribution. Those purchasing just prior to a distribution will subsequently receive a partial return of their investment capital
upon payment of the distribution, which will be taxable to them.

Redemptions and exchanges of fund
shares — Redemptions of shares, including exchanges for shares of other American Funds, may result in federal, state
and local tax consequences (gain or loss) to the shareholder.

Any loss realized on a redemption or
exchange of shares of the fund will be disallowed to the extent substantially identical shares are reacquired within the 61-day
period beginning 30 days before and ending 30 days after the shares are disposed of. Any loss disallowed under this rule will be
added to the shareholder’s tax basis in the new shares purchased.

If a shareholder exchanges or otherwise
disposes of shares of the fund within 90 days of having acquired such shares, and if, as a result of having acquired those shares,
the shareholder subsequently pays a reduced or no sales charge for shares of the fund, or of a different fund acquired before January
31st of the year following the year the shareholder exchanged or otherwise disposed of the original fund shares, the
sales charge previously incurred in acquiring the fund’s shares will not be taken into account (to the extent such previous
sales charges do not exceed the reduction in sales charges) for the purposes of determining the amount of gain or loss on the exchange,
but will be treated as having been incurred in the acquisition of such other fund(s).

Tax consequences of investments in
non-U.S. securities — Dividend and interest income received by the fund from sources outside the United States may be
subject to withholding and other taxes imposed by such foreign jurisdictions. Tax conventions between certain countries and the
United States, however, may reduce or eliminate these foreign taxes. Some foreign countries impose taxes on capital gains with
respect to investments by foreign investors.

If more than 50% of the value of the
total assets of the fund at the close of the taxable year consists of securities of foreign corporations, the fund may elect to
pass through to shareholders the foreign taxes paid by the fund. If such an election is made, shareholders may claim a credit or
deduction on their federal income tax returns for, and will be required to treat as part of the amounts distributed to them, their
pro rata portion of qualified taxes paid by the fund to foreign countries. The application of the foreign tax credit depends upon
the particular circumstances of each shareholder.

Foreign currency gains and losses, including
the portion of gain or loss on the sale of debt securities attributable to fluctuations in foreign exchange rates, are generally
taxable as ordinary income or loss. These gains or losses may increase or decrease the amount of dividends payable by the fund
to shareholders. A fund may elect to treat gain and loss on certain foreign currency contracts as capital gain and loss instead
of ordinary income or loss.

If the fund invests in stock of certain
passive foreign investment companies (PFICs), the fund intends to mark-to-market these securities and recognize any gains at the
end of its fiscal and excise tax years. Deductions for losses are allowable only to the extent of any previously recognized gains.
Both gains

The Income Fund of America - Page 53





and losses will be treated as ordinary
income or loss, and the fund is required to distribute any resulting income. If the fund is unable to identify an investment as
a PFIC security and thus does not make a timely mark-to-market election, the fund may be subject to adverse tax consequences.

Other tax considerations —
After the end of each calendar year, individual shareholders holding fund shares in taxable accounts will receive a statement of
the federal income tax status of all distributions. Shareholders of the fund also may be subject to state and local taxes on distributions
received from the fund.

For fund shares acquired on or after
January 1, 2012, the fund is required to report cost basis information for redemptions, including exchanges, to both shareholders
and the IRS.

Shareholders may obtain more information
about cost basis online at americanfunds.com/costbasis.

Under the backup withholding provisions
of the Code, the fund generally will be required to withhold federal income tax on all payments made to a shareholder if the shareholder
either does not furnish the fund with the shareholder’s correct taxpayer identification number or fails to certify that the
shareholder is not subject to backup withholding. Backup withholding also applies if the IRS notifies the shareholder or the fund
that the taxpayer identification number provided by the shareholder is incorrect or that the shareholder has previously failed
to properly report interest or dividend income.

The foregoing discussion of U.S. federal
income tax law relates solely to the application of that law to U.S. persons (i.e., U.S. citizens and legal residents and U.S.
corporations, partnerships, trusts and estates). Each shareholder who is not a U.S. person should consider the U.S. and foreign
tax consequences of ownership of shares of the fund, including the possibility that such a shareholder may be subject to U.S. withholding
taxes.

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Unless otherwise noted, all references
in the following pages to Class A, B, C or F-1 shares also refer to the corresponding Class 529-A, 529-B, 529-C or 529-F-1 shares.
Class 529 shareholders should also refer to the applicable program description for information on policies and services specifically
relating to these accounts. Shareholders holding shares through an eligible retirement plan should contact their plan’s administrator
or recordkeeper for information regarding purchases, sales and exchanges.

Purchase and exchange of shares

Purchases by individuals —
As described in the prospectus, you may generally open an account and purchase fund shares by contacting a financial advisor or
investment dealer authorized to sell the fund’s shares. You may make investments by any of the following means:

Contacting your financial advisor
— Deliver or mail a check to your financial advisor.

By mail — For initial
investments, you may mail a check, made payable to the fund, directly to the address indicated on the account application. Please
indicate an investment dealer on the account application. You may make additional investments by filling out the “Account
Additions” form at the bottom of a recent transaction confirmation and mailing the form, along with a check made payable
to the fund, using the envelope provided with your confirmation.

The amount of time it takes for
us to receive regular U.S. postal mail may vary and there is no assurance that we will receive such mail on the day you expect.
Mailing addresses for regular U.S. postal mail can be found in the prospectus. To send investments or correspondence to us via
overnight mail or courier service, use either of the following addresses:

American Funds

12711 North Meridian Street

Carmel, IN 46032-9181

American Funds

5300 Robin Hood Road

Norfolk, VA 23513-2407

By telephone — Using
the American FundsLine. Please see the “Shareholder account services and privileges” section of this statement of additional
information for more information regarding this service.

By Internet — Using
americanfunds.com. Please see the “Shareholder account services and privileges” section of this statement of additional
information for more information regarding this service.

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By wire — If you are
making a wire transfer, instruct your bank to wire funds to:

Wells Fargo Bank

ABA Routing No. 121000248

Account No. 4600-076178

Your bank should include the following
information when wiring funds:

For credit to the account of:

American Funds Service Company

(fund’s name)

For further credit to:

(shareholder’s fund account number)

(shareholder’s name)

You may contact American Funds
Service Company at (800) 421-4225 if you have questions about making wire transfers.

Other purchase information —Class 529 shares may be purchased only through CollegeAmerica by investors establishing qualified higher education savings
accounts. Class 529-E shares may be purchased only by investors participating in CollegeAmerica through an eligible employer plan.
The American Funds state tax-exempt funds are qualified for sale only in certain jurisdictions, and tax-exempt funds in general
should not serve as retirement plan investments. In addition, the fund and the Principal Underwriter reserve the right to reject
any purchase order.

Class R-5 and R-6 shares may be made
available to certain charitable foundations organized and maintained by The Capital Group Companies, Inc. or its affiliates.

Class R-5 and R-6 shares may also be
made available to Virginia529 for use in the Virginia Education Savings Trust and the Virginia Prepaid Education Program and other
registered investment companies approved by the fund’s investment adviser or distributor. Class R-6 shares are also available
to other post employment benefits plans.

Purchase minimums and maximums —
All investments are subject to the purchase minimums and maximums described in the prospectus. As noted in the prospectus, purchase
minimums may be waived or reduced in certain cases.

In the case of American Funds non-tax-exempt
funds, the initial purchase minimum of $25 may be waived for the following account types:

| | · | Payroll deduction retirement plan accounts (such as, but not limited to, 403(b), 401(k), SIMPLE
IRA, SARSEP and deferred compensation plan accounts); and
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Employer-sponsored CollegeAmerica accounts.
| | - | -------------------------------------------

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The following account types may be established
without meeting the initial purchase minimum:

| | · | Retirement accounts that are funded with employer contributions; and
| | - | --------------------------------------------------------------------

| | · | Accounts that are funded with monies set by court decree.
| | - | ---------------------------------------------------------

The following account types may be established
without meeting the initial purchase minimum, but shareholders wishing to invest in two or more funds must meet the normal initial
purchase minimum of each fund:

| | · | Accounts that are funded with (a) transfers of assets, (b) rollovers from retirement
plans, (c) rollovers from 529 college savings plans or (d) required minimum distribution automatic exchanges; and
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | American Funds Money Market Fund accounts registered in the name of clients of Capital Guardian
Trust Company’s Capital Group Private Client Services division.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

Certain accounts held on the fund’s
books, known as omnibus accounts, contain multiple underlying accounts that are invested in shares of the fund. These underlying
accounts are maintained by entities such as financial intermediaries and are subject to the applicable initial purchase minimums
as described in the prospectus and this statement of additional information. However, in the case where the entity maintaining
these accounts aggregates the accounts’ purchase orders for fund shares, such accounts are not required to meet the fund’s
minimum amount for subsequent purchases.

Exchanges — You may only
exchange shares into other American Funds within the same share class. However, exchanges from Class A shares of American Funds
Money Market Fund may be made to Class C shares of other American Funds for dollar cost averaging purposes. Exchanges are not permitted
from Class A shares of American Funds Money Market Fund to Class C shares of American Funds Short-Term Tax-Exempt Bond Fund, Intermediate
Bond Fund of America, Limited Term Tax-Exempt Bond Fund of America or Short-Term Bond Fund of America. Exchange purchases are subject
to the minimum investment requirements of the fund purchased and no sales charge generally applies. However, exchanges of shares
from American Funds Money Market Fund are subject to applicable sales charges, unless the American Funds Money Market Fund shares
were acquired by an exchange from a fund having a sales charge, or by reinvestment or cross-reinvestment of dividends or capital
gain distributions. Exchanges of Class F shares generally may only be made through fee-based programs of investment firms that
have special agreements with the fund’s distributor and certain registered investment advisors.

You may exchange shares of other classes
by contacting the Transfer Agent, by contacting your investment dealer or financial advisor, by using American FundsLine or americanfunds.com,
or by telephoning (800) 421-4225 toll-free, or faxing (see “American Funds Service Company service areas”
in the prospectus for the appropriate fax numbers) the Transfer Agent. For more information, see “Shareholder account services
and privileges” in this statement of additional information. These transactions have the same tax consequences as ordinary
sales and purchases.

Shares held in employer-sponsored retirement
plans may be exchanged into other American Funds by contacting your plan administrator or recordkeeper. Exchange redemptions and
purchases are processed simultaneously at the share prices next determined after the exchange order is received (see “Price
of shares” in this statement of additional information).

Conversion — Currently,
Class C shares of the fund automatically convert to Class F-1 shares in the month of the 10-year anniversary of the purchase date.
The board of trustees of the fund reserves the right at any time, without shareholder approval, to amend the conversion feature
of the Class C shares, including without limitation, providing for conversion into a different share class or for no conversion.

The Income Fund of America - Page 57





In making its decision, the board of
trustees will consider, among other things, the effect of any such amendment on shareholders.

Frequent trading of fund shares —
As noted in the prospectus, certain redemptions may trigger a purchase block lasting 30 calendar days under the fund’s “purchase
blocking policy.” Under this policy, systematic redemptions will not trigger a purchase block and systematic purchases will
not be prevented if the entity maintaining the shareholder account is able to identify the transaction as a systematic redemption
or purchase. For purposes of this policy, systematic redemptions include, for example, regular periodic automatic redemptions and
statement of intention escrow share redemptions. Systematic purchases include, for example, regular periodic automatic purchases
and automatic reinvestments of dividends and capital gain distributions. Generally, purchases and redemptions will not be considered
“systematic” unless the transaction is prescheduled for a specific date.

Other potentially abusive activity
— In addition to implementing purchase blocks, American Funds Service Company will monitor for other types of activity
that could potentially be harmful to the American Funds — for example, short-term trading activity in multiple funds. When
identified, American Funds Service Company will request that the shareholder discontinue the activity. If the activity continues,
American Funds Service Company will freeze the shareholder account to prevent all activity other than redemptions of fund shares.

Moving between share classes

If you wish to “move”
your investment between share classes (within the same fund or between different funds), we generally will process your request
as an exchange of the shares you currently hold for shares in the new class or fund. Below is more information about how sales
charges are handled for various scenarios.

Exchanging Class B shares for
Class A shares — If you exchange Class B shares for Class A shares during the contingent deferred sales charge period
you are responsible for paying any applicable deferred sales charges attributable to those Class B shares, but you will not be
required to pay a Class A sales charge. If, however, you exchange your Class B shares for Class A shares after the contingent deferred
sales charge period, you are responsible for paying any applicable Class A sales charges.

Exchanging Class C shares for
Class A shares — If you exchange Class C shares for Class A shares, you are still responsible for paying any Class C
contingent deferred sales charges and applicable Class A sales charges.

Exchanging Class C shares for
Class F shares — If you are part of a qualified fee-based program and you wish to exchange your Class C shares for Class
F shares to be held in the program, you are still responsible for paying any applicable Class C contingent deferred sales charges.

Exchanging Class F shares for
Class A shares — You can exchange Class F shares held in a qualified fee-based program for Class A shares without paying
an initial Class A sales charge if you are leaving or have left the fee-based program. You can exchange Class F shares received
in a conversion from Class C shares for Class A shares at any time without paying an initial Class A sales charge if you notify
American Funds Service Company of the conversion when you make your request. If you have already redeemed your Class F shares,
the foregoing requirements apply and you must purchase Class A shares within 90 days after redeeming your Class F shares to receive
the Class A shares without paying an initial Class A sales charge.

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Exchanging Class A shares for
Class F shares — If you are part of a qualified fee-based program and you wish to exchange your Class A shares for Class
F shares to be held in the program, any Class A sales charges (including contingent deferred sales charges) that you paid or are
payable will not be credited back to your account.

Exchanging Class A shares for
Class R shares — Provided it is eligible to invest in Class R shares, a retirement plan currently invested in Class A
shares may exchange its shares for Class R shares. Any Class A sales charges that the retirement plan previously paid will not
be credited back to the plan’s account.

Exchanging Class F-1 shares
for Class F-2 shares — If you are part of a qualified fee-based program that offers Class F-2 shares, you may exchange
your Class F-1 shares for Class F-2 shares to be held in the program.

Moving between other share classes
— If you desire to move your investment between share classes and the particular scenario is not described in this statement
of additional information, please contact American Funds Service Company at (800) 421-4225 for more information.

Non-reportable transactions
— Automatic conversions described in the prospectus will be non-reportable for tax purposes. In addition, an exchange
of shares from one share class of a fund to another share class of the same fund will be treated as a non-reportable exchange for
tax purposes, provided that the exchange request is received in writing by American Funds Service Company and processed as a single
transaction. However, a movement between a 529 share class and a non-529 share class of the same fund will be reportable.

The Income Fund of America - Page 59







Sales charges

Class A purchases

Purchases by certain 403(b)
plans

A 403(b) plan may not invest in
Class A or C shares unless such plan was invested in Class A or C shares before January 1, 2009.

Participant accounts of a 403(b)
plan that were treated as an individual-type plan for sales charge purposes before January 1, 2009, may continue to be treated
as accounts of an individual-type plan for sales charge purposes. Participant accounts of a 403(b) plan that were treated as an
employer-sponsored plan for sales charge purposes before January 1, 2009, may continue to be treated as accounts of an employer-sponsored
plan for sales charge purposes. Participant accounts of a 403(b) plan that is established on or after January 1, 2009, are treated
as accounts of an employer-sponsored plan for sales charge purposes.

Purchases by SEP plans and SIMPLE
IRA plans

Participant accounts in a Simplified
Employee Pension (SEP) plan or a Savings Incentive Match Plan for Employees of Small Employers IRA (SIMPLE IRA) plan will be aggregated
together for Class A sales charge purposes if the SEP plan or SIMPLE IRA plan was established after November 15, 2004, by an employer
adopting a prototype plan produced by American Funds Distributors, Inc. In the case where the employer adopts any other plan (including,
but not limited to, an IRS model agreement), each participant’s account in the plan will be aggregated with the participant’s
own personal investments that qualify under the aggregation policy. A SEP plan or SIMPLE IRA plan with a certain method of aggregating
participant accounts as of November 15, 2004, may continue with that method so long as the employer has not modified the plan document
since that date.

Other purchases

Pursuant to a determination of
eligibility by a vice president or more senior officer of the Capital Research and Management Company Fund Administration Unit,
or by his or her designee, Class A shares of the American Funds stock, stock/bond and bond funds may be sold at net asset value
to:

|(1) | current or retired directors, trustees, officers and advisory board members of, and certain lawyers who provide services to, the funds managed by Capital Research and Management Company, current or retired employees and partners of The Capital Group Companies, Inc. and its affiliated companies, certain family members of the above persons, and trusts or plans primarily for such persons;                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | currently registered representatives and assistants directly employed by such representatives, retired registered representatives with respect to accounts established while active, or full-time employees (collectively, “Eligible Persons”) (and their (a) spouses or equivalents if recognized under local law, (b) parents and children, including parents and children in step and adoptive relationships, sons-in-law and daughters-in-law, and (c) parents-in-law, if the Eligible Persons or the spouses, children or parents of the Eligible Persons are listed in the account registration with the parents-in-law) of dealers who have sales agreements with the Principal Underwriter (or who clear transactions through such dealers), plans for the dealers, and plans that include as participants only the Eligible Persons, their

The Income Fund of America - Page 60







|     | spouses, parents
and/or children (these policies are subject to the dealer’s policies and system capabilities);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3)  | currently registered investment advisors (“RIAs”) and assistants directly employed by such RIAs, retired RIAs with respect to accounts established while active, or full-time employees (collectively, “Eligible RIAs”) (and their (a) spouses or equivalents if recognized under local law, (b) parents and children, including parents and children in step and adoptive relationships, sons-in-law and daughters-in-law and (c) parents-in-law, if the Eligible RIAs or the spouses, children or parents of the Eligible RIAs are listed in the account registration with the parents-in-law) of RIA firms that are authorized to sell shares of the funds, plans for the RIA firms, and plans that include as participants only the Eligible RIAs, their spouses, parents and/or children (these policies are subject to the RIA’s policies and system capabilities);
|(4)  | companies exchanging securities with the fund through a merger, acquisition or exchange offer;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|(5)  | insurance company separate accounts;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(6)  | accounts managed by subsidiaries of The Capital Group Companies, Inc.;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(7)  | The Capital Group Companies, Inc. and its affiliated companies;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(8)  | an individual or entity with a substantial business relationship with The Capital Group Companies, Inc. or its affiliates, or an individual or entity related or relating to such individual or entity;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(9)  | wholesalers and full-time employees directly supporting wholesalers involved in the distribution of insurance company separate accounts whose underlying investments are managed by any affiliate of The Capital Group Companies, Inc.; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(10) | full-time employees of banks that have sales agreements with the Principal Underwriter, who are solely dedicated to directly supporting the sale of mutual funds.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

Shares are offered at net
asset value to these persons and organizations due to anticipated economies in sales effort and expense. Once an account is established
under this net asset value privilege, additional investments can be made at net asset value for the life of the account. These
privileges may not be available if your account is held with an investment dealer or through an employer-sponsored retirement
plan.

Transfers to CollegeAmerica
— A transfer from the Virginia Prepaid Education ProgramSM or the Virginia
Education Savings TrustSM to a CollegeAmerica account will be made with no sales charge.
No commission will be paid to the dealer on such a transfer. Investment dealers will be compensated solely with an annual service
fee that begins to accrue immediately.

Moving between accounts —
Investments in certain account types may be moved to other account types without incurring additional Class A sales charges. These
transactions include, for example:

| | · | redemption proceeds from a non-retirement account (for example, a joint tenant account) used to
purchase fund shares in an IRA or other individual-type retirement account;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | · | required minimum distributions from an IRA or other individual-type retirement account used to
purchase fund shares in a non-retirement account; and
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | · | death distributions paid to a beneficiary’s account that are used by the beneficiary to purchase
fund shares in a different account.
| | - | ------------------------------------------------------------------------------------------------------------------------------------

Loan repayments —
Repayments on loans taken from a retirement plan are not subject to sales charges if American Funds Service Company is notified
of the repayment.

Dealer commissions and compensation
— Commissions (up to 1.00%) are paid to dealers who initiate and are responsible for certain Class A share
purchases not subject to initial sales charges. These purchases consist of a) purchases of $1 million or more, and
b) purchases by employer-sponsored defined contribution-type retirement plans investing $1 million or more or
with 100 or more eligible employees. Commissions on such investments (other than IRA rollover assets that roll over at no sales
charge under the fund’s IRA rollover policy as described in the prospectus) are paid to dealers at the following rates:
1.00% on amounts of less than $10 million, .50% on amounts of at least $10 million but less than $25 million and
..25% on amounts of at least $25 million. Commissions are based on cumulative investments over the life of the account with
no adjustment for redemptions, transfers, or market declines. For example, if a shareholder has accumulated investments in excess
of $10 million (but less than $25 million) and subsequently redeems all or a portion of the account(s), purchases following
the redemption will generate a dealer commission of .50%.

A dealer concession of up to 1% may be
paid by the fund under its Class A plan of distribution to reimburse the Principal Underwriter in connection with dealer and wholesaler
compensation paid by it with respect to investments made with no initial sales charge.

The Income Fund of America - Page 62







Sales charge reductions and waivers

Reducing your Class A sales charge
— As described in the prospectus, there are various ways to reduce your sales charge when purchasing Class A shares.
Additional information about Class A sales charge reductions is provided below.

Statement of intention —
By establishing a statement of intention (the “Statement”), you enter into a nonbinding commitment to purchase shares
of the American Funds (excluding American Funds Money Market Fund) over a 13-month period and receive the same sales charge (expressed
as a percentage of your purchases) as if all shares had been purchased at once, unless the Statement is upgraded as described below.

The Statement period starts on
the date on which your first purchase made toward satisfying the Statement is processed. Your accumulated holdings (as described
in the paragraph below titled “Rights of accumulation”) eligible to be aggregated as of the day immediately before
the start of the Statement period may be credited toward satisfying the Statement.

You may revise the commitment you
have made in your Statement upward at any time during the Statement period. If your prior commitment has not been met by the time
of the revision, the Statement period during which purchases must be made will remain unchanged. Purchases made from the date of
the revision will receive the reduced sales charge, if any, resulting from the revised Statement. If your prior commitment has
been met by the time of the revision, your original Statement will be considered met and a new Statement will be established.

The Statement will be considered
completed if the shareholder dies within the 13-month Statement period. Commissions to dealers will not be adjusted or paid on
the difference between the Statement amount and the amount actually invested before the shareholder’s death.

When a shareholder elects to use
a Statement, shares equal to 5% of the dollar amount specified in the Statement may be held in escrow in the shareholder’s
account out of the initial purchase (or subsequent purchases, if necessary) by the Transfer Agent. All dividends and any capital
gain distributions on shares held in escrow will be credited to the shareholder’s account in shares (or paid in cash, if
requested). If the intended investment is not completed within the specified Statement period the investments made during the statement
period will be adjusted to reflect the difference between the sales charge actually paid and the sales charge which would have
been paid if the total of such purchases had been made at a single time. Any dealers assigned to the shareholder’s account
at the time a purchase was made during the Statement period will receive a corresponding commission adjustment if appropriate.

In addition, if you currently have
individual holdings in American Legacy variable annuity contracts or variable life insurance policies that were established on
or before March 31, 2007, you may continue to apply purchases under such contracts and policies to a Statement.

Shareholders purchasing shares
at a reduced sales charge under a Statement indicate their acceptance of these terms and those in the prospectus with their first
purchase.

Aggregation — Qualifying
investments for aggregation include those made by you and your “immediate family” as defined in the prospectus, if
all parties are purchasing shares for their own accounts and/or:

The Income Fund of America - Page 63





| | · | individual-type employee benefit plans, such as an IRA, single-participant Keogh-type plan, or
a participant account of a 403(b) plan that is treated as an individual-type plan for sales charge purposes (see “Purchases
by certain 403(b) plans” under “Sales charges” in this statement of additional information);
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | SEP plans and SIMPLE IRA plans established after November 15, 2004, by an employer adopting any
plan document other than a prototype plan produced by American Funds Distributors, Inc.;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | business accounts solely controlled by you or your immediate family (for example, you own the entire
business);
| | - | ---------------------------------------------------------------------------------------------------------------

| | · | trust accounts established by you or your immediate family (for trusts with only one primary beneficiary,
upon the trustor’s death the trust account may be aggregated with such beneficiary’s own accounts; for trusts with
multiple primary beneficiaries, upon the trustor’s death the trustees of the trust may instruct American Funds Service Company
to establish separate trust accounts for each primary beneficiary; each primary beneficiary’s separate trust account may
then be aggregated with such beneficiary’s own accounts);
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | endowments or foundations established and controlled by you or your immediate family; or
| | - | ----------------------------------------------------------------------------------------

| | · | 529 accounts, which will be aggregated at the account owner level (Class 529-E accounts may only
be aggregated with an eligible employer plan).
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------

Individual purchases by a trustee(s)
or other fiduciary(ies) may also be aggregated if the investments are:

| | · | for a single trust estate or fiduciary account, including employee benefit plans other than the
individual-type employee benefit plans described above;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | made for two or more employee benefit plans of a single employer or of affiliated employers as
defined in the 1940 Act, excluding the individual-type employee benefit plans described above;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | for a diversified common trust fund or other diversified pooled account not specifically formed
for the purpose of accumulating fund shares;
| | - | --------------------------------------------------------------------------------------------------------------------------------------------

| | · | for nonprofit, charitable or educational organizations, or any endowments or foundations established
and controlled by such organizations, or any employer-sponsored retirement plans established for the benefit of the employees of
such organizations, their endowments, or their foundations;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | for participant accounts of a 403(b) plan that is treated as an employer-sponsored plan for sales
charge purposes (see “Purchases by certain 403(b) plans” under “Sales charges” in this statement of additional
information), or made for participant accounts of two or more such plans, in each case of a single employer or affiliated employers
as defined in the 1940 Act; or
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | for a SEP or SIMPLE IRA plan established after November 15, 2004, by an employer adopting a prototype
plan produced by American Funds Distributors, Inc.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------

Purchases made for nominee or street
name accounts (securities held in the name of an investment dealer or another nominee such as a bank trust department instead of
the customer) may not be aggregated with those made for other accounts and may not be aggregated with other nominee or street name
accounts unless otherwise qualified as described above.

The Income Fund of America - Page 64





Joint accounts may be aggregated
with other accounts belonging to the primary owner and/or his or her immediate family. The primary owner of a joint account is
the individual responsible for taxes on the account.

Concurrent purchases —
As described in the prospectus, you may reduce your Class A sales charge by combining purchases of all classes of shares in the
American Funds, as well as applicable holdings in the American Funds Target Date Retirement Series, American Funds Portfolio Series
and American Funds College Target Date Series. Shares of American Funds Money Market Fund purchased through an exchange, reinvestment
or cross-reinvestment from a fund having a sales charge also qualify. However, direct purchases of American Funds Money Market
Fund are excluded. If you currently have individual holdings in American Legacy variable annuity contracts or variable life insurance
policies that were established on or before March 31, 2007, you may continue to combine purchases made under such contracts and
policies to reduce your Class A sales charge.

Rights of accumulation —
Subject to the limitations described in the aggregation policy, you may take into account your accumulated holdings in all share
classes of the American Funds, as well as applicable holdings in the American Funds Target Date Retirement Series, American Funds
Portfolio Series and American Funds College Target Date Series, to determine your sales charge on investments in accounts eligible
to be aggregated. Direct purchases of American Funds Money Market Fund are excluded. Subject to your investment dealer’s
or recordkeeper’s capabilities, your accumulated holdings will be calculated as the higher of (a) the current value
of your existing holdings (the “market value”) as of the day prior to your American Funds investment or (b)
the amount you invested (including reinvested dividends and capital gains, but excluding capital appreciation) less any withdrawals
(the “cost value”). Depending on the entity on whose books your account is held, the value of your holdings in that
account may not be eligible for calculation at cost value. For example, accounts held in nominee or street name may not be eligible
for calculation at cost value and instead may be calculated at market value for purposes of rights of accumulation.

The value of all of your holdings
in accounts established in calendar year 2005 or earlier will be assigned an initial cost value equal to the market value of those
holdings as of the last business day of 2005. Thereafter, the cost value of such accounts will increase or decrease according to
actual investments or withdrawals. You must contact your financial advisor or American Funds Service Company if you have additional
information that is relevant to the calculation of the value of your holdings.

When determining your American
Funds Class A sales charge, if your investment is not in an employer-sponsored retirement plan, you may also continue to take into
account the market value (as of the day prior to your American Funds investment) of your individual holdings in various American
Legacy variable annuity contracts and variable life insurance policies that were established on or before March 31, 2007. An employer-sponsored
retirement plan may also continue to take into account the market value of its investments in American Legacy Retirement Investment
Plans that were established on or before March 31, 2007.

You may not purchase Class C or
529-C shares if such combined holdings cause you to be eligible to purchase Class A or 529-A shares at the $1 million or more sales
charge discount rate (i.e. at net asset value).

If you make a gift of American
Funds Class A shares, upon your request, you may purchase the shares at the sales charge discount allowed under rights of accumulation
of all of your American Funds and applicable American Legacy accounts.

The Income Fund of America - Page 65





CDSC waivers for Class A, B and C
shares — As noted in the prospectus, a contingent deferred sales charge (“CDSC”) may be waived for redemptions
due to death or post-purchase disability of a shareholder (this generally excludes accounts registered in the names of trusts and
other entities). In the case of joint tenant accounts, if one joint tenant dies, a surviving joint tenant, at the time he or she
notifies the Transfer Agent of the other joint tenant’s death and removes the decedent’s name from the account, may
redeem shares from the account without incurring a CDSC. Redemptions made after the Transfer Agent is notified of the death of
a joint tenant will be subject to a CDSC.

In addition, a CDSC may be waived for
the following types of transactions, if together they do not exceed 12% of the value of an “account” (defined below)
annually (the “12% limit”):

| | · | Required minimum distributions taken from retirement accounts upon the shareholder’s attainment
of age 701⁄2 (required minimum distributions that continue to be taken by the beneficiary(ies) after the account owner is
deceased also qualify for a waiver).
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Redemptions through an automatic withdrawal plan (“AWP”) (see “Automatic withdrawals”
under “Shareholder account services and privileges” in this statement of additional information). For each AWP payment,
assets that are not subject to a CDSC, such as shares acquired through reinvestment of dividends and/or capital gain distributions,
will be redeemed first and will count toward the 12% limit. If there is an insufficient amount of assets not subject to a CDSC
to cover a particular AWP payment, shares subject to the lowest CDSC will be redeemed next until the 12% limit is reached. Any
dividends and/or capital gain distributions taken in cash by a shareholder who receives payments through an AWP will also count
toward the 12% limit. In the case of an AWP, the 12% limit is calculated at the time an automatic redemption is first made, and
is recalculated at the time each additional automatic redemption is made. Shareholders who establish an AWP should be aware that
the amount of a payment not subject to a CDSC may vary over time depending on fluctuations in the value of their accounts. This
privilege may be revised or terminated at any time.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

For purposes of this paragraph, “account”
means your investment in the applicable class of shares of the particular fund from which you are making the redemption.

CDSC waivers are allowed only in
the cases listed here and in the prospectus. For example, CDSC waivers will not be allowed on redemptions of Class 529-B and 529-C
shares due to termination of CollegeAmerica; a determination by the Internal Revenue Service that CollegeAmerica does not qualify
as a qualified tuition program under the Code; proposal or enactment of law that eliminates or limits the tax-favored status of
CollegeAmerica; or elimination of the fund by Virginia529 as an option for additional investment within CollegeAmerica.

The Income Fund of America - Page 66







Selling shares

The methods for selling (redeeming) shares
are described more fully in the prospectus. If you wish to sell your shares by contacting American Funds Service Company directly,
any such request must be signed by the registered shareholders. To contact American Funds Service Company via overnight mail or
courier service, see “Purchase and exchange of shares.”

A signature guarantee may be required
for certain redemptions. In such an event, your signature may be guaranteed by a domestic stock exchange or the Financial Industry
Regulatory Authority, bank, savings association or credit union that is an eligible guarantor institution. The Transfer Agent reserves
the right to require a signature guarantee on any redemptions.

Additional documentation may be required
for sales of shares held in corporate, partnership or fiduciary accounts. You must include with your written request any shares
you wish to sell that are in certificate form.

If you sell Class A, B or C shares and
request a specific dollar amount to be sold, we will sell sufficient shares so that the sale proceeds, after deducting any applicable
CDSC, equals the dollar amount requested.

If you hold multiple American Funds and
a CDSC applies to the shares you are redeeming, the CDSC will be calculated based on the applicable class of shares of the particular
fund from which you are making the redemption.

Redemption proceeds will not be mailed
until sufficient time has passed to provide reasonable assurance that checks or drafts (including certified or cashier’s
checks) for shares purchased have cleared (which may take up to 10 business days from the purchase date). Except for delays relating
to clearance of checks for share purchases or in extraordinary circumstances (and as permissible under the 1940 Act), sale proceeds
will be paid on or before the seventh day following receipt and acceptance of an order. Interest will not accrue or be paid on
amounts that represent uncashed distribution or redemption checks.

You may request that redemption proceeds
of $1,000 or more from American Funds Money Market Fund be wired to your bank by writing American Funds Service Company. A signature
guarantee is required on all requests to wire funds.

The Income Fund of America - Page 67







Shareholder account services and
privileges

The following services and privileges
are generally available to all shareholders. However, certain services and privileges described in the prospectus and this statement
of additional information may not be available for Class 529 shareholders or if your account is held with an investment dealer
or through an employer-sponsored retirement plan.

Automatic investment plan —
An automatic investment plan enables you to make monthly or quarterly investments in the American Funds through automatic debits
from your bank account. To set up a plan, you must fill out an account application and specify the amount that you would like to
invest and the date on which you would like your investments to occur. The plan will begin within 30 days after your account application
is received. Your bank account will be debited on the day or a few days before your investment is made, depending on the bank’s
capabilities. The Transfer Agent will then invest your money into the fund you specified on or around the date you specified. If
the date you specified falls on a weekend or holiday, your money will be invested on the following business day. However, if the
following business day falls in the next month, your money will be invested on the business day immediately preceding the weekend
or holiday. If your bank account cannot be debited due to insufficient funds, a stop-payment or the closing of the account, the
plan may be terminated and the related investment reversed. You may change the amount of the investment or discontinue the plan
at any time by contacting the Transfer Agent.

Automatic reinvestment —
Dividends and capital gain distributions are reinvested in additional shares of the same class and fund at net asset value unless
you indicate otherwise on the account application. You also may elect to have dividends and/or capital gain distributions paid
in cash by informing the fund, the Transfer Agent or your investment dealer. Dividends and capital gain distributions paid to retirement
plan shareholders or shareholders of the 529 share classes will be automatically reinvested.

If you have elected to receive dividends
and/or capital gain distributions in cash, and the postal or other delivery service is unable to deliver checks to your address
of record, or you do not respond to mailings from American Funds Service Company with regard to uncashed distribution checks, your
distribution option may be automatically converted to having all dividends and other distributions reinvested in additional shares.

Cross-reinvestment of dividends and
distributions —For all share classes, except the 529 classes of shares, you may cross-reinvest dividends and capital
gains (distributions) into other American Funds in the same share class at net asset value, subject to the following conditions:

(1)	the aggregate value of your account(s)
in the fund(s) paying distributions equals or exceeds $5,000 (this is waived if the value of the account in the fund receiving
the distributions equals or exceeds that fund’s minimum initial investment requirement);

(2)	if the value of the account of
the fund receiving distributions is below the minimum initial investment requirement, distributions must be automatically reinvested;
and

(3)	if you discontinue the cross-reinvestment
of distributions, the value of the account of the fund receiving distributions must equal or exceed the minimum initial investment
requirement. If you do not meet this requirement within 90 days of notification, the fund has the right to automatically redeem
the account.

Automatic exchanges — For
all share classes, you may automatically exchange shares of the same class in amounts of $50 or more among any of the American
Funds on any day (or preceding business day if the day falls on a nonbusiness day) of each month you designate.

The Income Fund of America - Page 68





Automatic withdrawals —Depending
on the type of account, for all share classes except R shares, you may automatically withdraw shares from any of the American Funds.
You can make automatic withdrawals of $50 or more. You can designate the day of each period for withdrawals and request that checks
be sent to you or someone else. Withdrawals may also be electronically deposited to your bank account. The Transfer Agent will
withdraw your money from the fund you specify on or around the date you specify. If the date you specified falls on a weekend or
holiday, the redemption will take place on the previous business day. However, if the previous business day falls in the preceding
month, the redemption will take place on the following business day after the weekend or holiday. You should consult with your
advisor or intermediary to determine if your account is eligible for automatic withdrawals.

Withdrawal payments are not to be considered
as dividends, yield or income. Generally, automatic investments may not be made into a shareholder account from which there are
automatic withdrawals. Withdrawals of amounts exceeding reinvested dividends and distributions and increases in share value would
reduce the aggregate value of the shareholder’s account. The Transfer Agent arranges for the redemption by the fund of sufficient
shares, deposited by the shareholder with the Transfer Agent, to provide the withdrawal payment specified.

Redemption proceeds from an automatic
withdrawal plan are not eligible for reinvestment without a sales charge.

Account statements — Your
account is opened in accordance with your registration instructions. Transactions in the account, such as additional investments,
will be reflected on regular confirmation statements from the Transfer Agent. Dividend and capital gain reinvestments, purchases
through automatic investment plans and certain retirement plans, as well as automatic exchanges and withdrawals, will be confirmed
at least quarterly.

American FundsLine and americanfunds.com
— You may check your share balance, the price of your shares or your most recent account transaction; redeem shares (up
to $125,000 per American Funds shareholder each day) from nonretirement plan accounts; or exchange shares around the clock with
American FundsLine or using americanfunds.com. To use American FundsLine, call (800) 325-3590 from a TouchToneTM
telephone. Redemptions and exchanges through American FundsLine and americanfunds.com are subject to the conditions noted above
and in “Telephone and Internet purchases, redemptions and exchanges” below. You will need your fund number (see the
list of the American Funds under the “General information — fund numbers” section in this statement of additional
information), personal identification number (generally the last four digits of your Social Security number or other tax identification
number associated with your account) and account number.

Generally, all shareholders are automatically
eligible to use these services. However, if you are not currently authorized to do so, you may complete an American FundsLink Authorization
Form. Once you establish this privilege, you, your financial advisor or any person with your account information may use these
services.

Telephone and Internet purchases,
redemptions and exchanges — By using the telephone (including American FundsLine) or the Internet (including americanfunds.com),
or fax purchase, redemption and/or exchange options, you agree to hold the fund, the Transfer Agent, any of its affiliates or mutual
funds managed by such affiliates, and each of their respective directors, trustees, officers, employees and agents harmless from
any losses, expenses, costs or liabilities (including attorney fees) that may be incurred in connection with the exercise of these
privileges. Generally, all shareholders are automatically eligible to use these services. However, you may elect to opt out of
these services by writing the Transfer Agent (you may also reinstate them at any time by writing the Transfer Agent). If the Transfer
Agent does not employ reasonable procedures to confirm that the instructions received from any person with appropriate account
information are genuine, it and/or the fund may be liable for

The Income Fund of America - Page 69





losses due to unauthorized or fraudulent
instructions. In the event that shareholders are unable to reach the fund by telephone because of technical difficulties, market
conditions or a natural disaster, redemption and exchange requests may be made in writing only.

Checkwriting — You may establish
check writing privileges for Class A shares (but not Class 529-A shares) of American Funds Money Market Fund upon meeting
the fund’s initial purchase minimum of $1,000. This can be done by using an account application. If you request check writing
privileges, you will be provided with checks that you may use to draw against your account. These checks may be made payable to
anyone you designate and must be signed by the authorized number of registered shareholders exactly as indicated on your account
application.

Redemption of shares — The
fund’s declaration of trust permits the fund to direct the Transfer Agent to redeem the shares of any shareholder for their
then current net asset value per share if at such time the shareholder of record owns shares having an aggregate net asset value
of less than the minimum initial investment amount required of new shareholders as set forth in the fund’s current registration
statement under the 1940 Act, and subject to such further terms and conditions as the board of trustees of the fund may from time
to time adopt.

While payment of redemptions normally
will be in cash, the fund’s declaration of trust permits payment of the redemption price wholly or partly with portfolio
securities or other fund assets under conditions and circumstances determined by the fund’s board of trustees. For example,
redemptions could be made in this manner if the board determined that making payments wholly in cash over a particular period would
be unfair and/or harmful to other fund shareholders.

Share certificates — Shares
are credited to your account. The fund does not issue share certificates.

The Income Fund of America - Page 70







General information

Custodian of assets — Securities
and cash owned by the fund, including proceeds from the sale of shares of the fund and of securities in the fund’s portfolio,
are held by JP Morgan Chase Bank N.A., 270 Park Avenue, New York, NY 10017-2070, as custodian. If the fund holds securities of
issuers outside the U.S., the custodian may hold these securities pursuant to subcustodial arrangements in banks outside the U.S.
or branches of U.S. banks outside the U.S.

Transfer agent services —
American Funds Service Company, a wholly owned subsidiary of the investment adviser, maintains the records of shareholder accounts,
processes purchases and redemptions of the fund’s shares, acts as dividend and capital gain distribution disbursing agent,
and performs other related shareholder service functions. The principal office of American Funds Service Company is located at
6455 Irvine Center Drive, Irvine, CA 92618. Transfer agent fees are paid according to a fee schedule, based principally on the
number of accounts serviced, contained in a Shareholder Services Agreement between the fund and American Funds Service Company.

In the case of certain shareholder accounts,
third parties who may be unaffiliated with the investment adviser provide transfer agency and shareholder services in place of
American Funds Service Company. These services are rendered under agreements with American Funds Service Company or its affiliates
and the third parties receive compensation according to such agreements. Compensation for transfer agency and shareholder services,
whether paid to American Funds Service Company or such third parties, is ultimately paid from fund assets and is reflected in the
expenses of the fund as disclosed in the prospectus.

During the 2014 fiscal year, transfer
agent fees, gross of any payments made by American Funds Service Company to third parties, were:

|                  | Transfer
    agent fee
|----------------- | ----------------------
|Class
    A       | $51,201,000           
|Class
    B       | 564,000               
|Class
    C       | 4,956,000             
|Class
    F-1     | 4,413,000             
|Class
    F-2     | 1,981,000             
|Class
    529-A   | 802,000               
|Class
    529-B   | 28,000                
|Class
    529-C   | 285,000               
|Class
    529-E   | 18,000                
|Class
    529-F-1 | 28,000                
|Class
    R-1     | 122,000               
|Class
    R-2     | 2,085,000             
|Class
    R-3     | 2,085,000             
|Class
    R-4     | 1,145,000             
|Class
    R-5     | 280,000               
|Class
    R-6     | 9,000                 



Independent registered public accounting
firm —Deloitte & Touche LLP, 695 Town Center Drive, Costa Mesa, CA 92626, serves as the fund’s independent
registered public accounting firm, providing audit services, preparation of tax returns and review of certain documents to be filed
with the SEC. The financial statements included in this statement of additional information from the annual report have been audited
by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein. Such
financial statements have been so included in reliance upon the report of such firm given upon their authority as experts in accounting
and auditing. The selection of

The Income Fund of America - Page 71





the fund’s independent registered
public accounting firm is reviewed and determined annually by the board of trustees.

Independent legal counsel —Bingham McCutchen LLP, 355 South Grand Avenue, Suite 4400, Los Angeles, CA 90071, serves as independent legal counsel (“counsel”)
for the fund and for independent trustees in their capacities as such. A determination with respect to the independence of the
fund’s counsel will be made at least annually by the independent trustees of the fund, as prescribed by applicable 1940 Act
rules.

Prospectuses, reports to shareholders
and proxy statements —The fund’s fiscal year ends on July 31. Shareholders are provided updated summary prospectuses
annually and at least semi-annually with reports showing the fund’s investment portfolio or summary investment portfolio,
financial statements and other information. Shareholders may request a copy of the fund’s current prospectus at no cost by
calling (800) 421-4225 or by sending an email request to prospectus@americanfunds.com. Shareholders may also access the
fund’s current summary prospectus, prospectus, statement of additional information and shareholder reports at americanfunds.com/prospectus.
The fund’s annual financial statements are audited by the fund’s independent registered public accounting firm, Deloitte
& Touche LLP. In addition, shareholders may also receive proxy statements for the fund. In an effort to reduce the volume of
mail shareholders receive from the fund when a household owns more than one account, the Transfer Agent has taken steps to eliminate
duplicate mailings of summary prospectuses, shareholder reports and proxy statements. To receive additional copies of a summary
prospectus, report or proxy statement, shareholders should contact the Transfer Agent.

Shareholders may also elect to receive
updated summary prospectuses, annual reports and semi-annual reports electronically by signing up for electronic delivery on our
website, americanfunds.com. Upon electing the electronic delivery of updated summary prospectuses and other reports, a shareholder
will no longer automatically receive such documents in paper form by mail. A shareholder who elects electronic delivery is able
to cancel this service at any time and return to receiving updated summary prospectuses and other reports in paper form by mail.

Summary prospectuses, prospectuses, annual
reports and semi-annual reports that are mailed to shareholders by the American Funds organization are printed with ink containing
soy and/or vegetable oil on paper containing recycled fibers.

Codes of ethics — The fund
and Capital Research and Management Company and its affiliated companies, including the fund’s Principal Underwriter, have
adopted codes of ethics that allow for personal investments, including securities in which the fund may invest from time to time.
These codes include a ban on acquisitions of securities pursuant to an initial public offering; restrictions on acquisitions of
private placement securities; preclearance and reporting requirements; review of duplicate confirmation statements; annual recertification
of compliance with codes of ethics; blackout periods on personal investing for certain investment personnel; ban on short-term
trading profits for investment personnel; limitations on service as a director of publicly traded companies; disclosure of personal
securities transactions; and policies regarding political contributions.

The Income Fund of America - Page 72







Determination of net asset value,
redemption price and maximum offering price per share for Class A shares — July 31, 2014

|Net asset value and redemption
    price per share
    (Net assets divided by shares outstanding)                                                       | $21.45
|------------------------------------------------------------------------------------------------------------------------------------------------------- | ------
|Maximum offering price per share
    (100/94.25 of net asset value per share,
    which takes into account the fund’s current maximum
    sales charge) | $22.76

Other information — The
fund reserves the right to modify the privileges described in this statement of additional information at any time.

The fund’s financial statements,
including the investment portfolio and the report of the fund’s independent registered public accounting firm contained in
the annual report, are included in this statement of additional information.

The Income Fund of America - Page 73







Fund numbers — Here are the fund
numbers for use with our automated telephone line, American FundsLine®, or when making share transactions:

|                                                         | Fund numbers
|-------------------------------------------------------- | ------------
|Fund                                                     | Class A     
|Stock and stock/bond funds                               |             
|AMCAP Fund®                                              | 002         
|American Balanced Fund®                                  | 011         
|American Funds Developing World Growth and Income FundSM | 30100       
|American Funds Global Balanced FundSM                    | 037         
|American Mutual Fund®                                    | 003         
|Capital Income Builder®                                  | 012         
|Capital World Growth and Income Fund®                    | 033         
|EuroPacific Growth Fund®                                 | 016         
|Fundamental Investors®                                   | 010         
|The Growth Fund of America®                              | 005         
|The Income Fund of America®                              | 006         
|International Growth and Income FundSM                   | 034         
|The Investment Company of America®                       | 004         
|The New Economy Fund®                                    | 014         
|New Perspective Fund®                                    | 007         
|New World Fund®                                          | 036         
|SMALLCAP World Fund®                                     | 035         
|Washington Mutual Investors FundSM                       | 001         
|Bond funds                                               |             
|American Funds Mortgage Fund®                            | 042         
|American Funds Short-Term Tax-Exempt
Bond Fund®          | 039         
|American Funds Tax-Exempt Fund of
New York®              | 041         
|American High-Income Municipal Bond Fund®                | 040         
|American High-Income Trust®                              | 021         
|The Bond Fund of America®                                | 008         
|Capital World Bond Fund®                                 | 031         
|Intermediate Bond Fund of America®                       | 023         
|Limited Term Tax-Exempt Bond Fund
of America®            | 043         
|Short-Term Bond Fund of America®                         | 048         
|The Tax-Exempt Bond Fund of America®                     | 019         
|The Tax-Exempt Fund of California®                       | 020         
|The Tax-Exempt Fund of Maryland®*                        | 024         
|The Tax-Exempt Fund of Virginia®*                        | 025         
|U.S. Government Securities Fund®                         | 022         
|Money market fund                                        |             
|American Funds Money Market Fund®                        | 059         

___________

*Qualified for sale only in certain
jurisdictions.

The Income Fund of America - Page 74







|                                                           | Fund numbers        
|---------------------------------------------------------- | --------------------
|Fund                                                       | Class
    
    529-A
|Stock
    and stock/bond funds                             |                     
|AMCAP
    Fund                                             | 1002                
|American
    Balanced Fund                                 | 1011                
|American
    Funds Developing World Growth and Income Fund | 10100               
|American
    Funds Global Balanced Fund                    | 1037                
|American
    Mutual Fund                                   | 1003                
|Capital
    Income Builder                                 | 1012                
|Capital
    World Growth and Income Fund                   | 1033                
|EuroPacific
    Growth Fund                                | 1016                
|Fundamental
    Investors                                  | 1010                
|The
    Growth Fund of America                             | 1005                
|The
    Income Fund of America                             | 1006                
|International
    Growth and Income Fund                   | 1034                
|The
    Investment Company of America                      | 1004                
|The
    New Economy Fund                                   | 1014                
|New
    Perspective Fund                                   | 1007                
|New
    World Fund                                         | 1036                
|SMALLCAP
    World Fund                                    | 1035                
|Washington
    Mutual Investors Fund                       | 1001                
|Bond
    funds                                             |                     
|American
    Funds Mortgage Fund                           | 1042                
|American
    High-Income Trust                             | 1021                
|The
    Bond Fund of America                               | 1008                
|Capital
    World Bond Fund                                | 1031                
|Intermediate
    Bond Fund of America                      | 1023                
|Short-Term
    Bond Fund of America                        | 1048                
|U.S.
    Government Securities Fund                        | 1022                
|Money
    market fund                                      |                     
|American
    Funds Money Market Fund                       | 1059                

The Income Fund of America - Page 75







|                                                       | Fund numbers
|------------------------------------------------------ | ------------
|Fund                                                   | Class
R-1   
|Stock and stock/bond funds                             |             
|AMCAP Fund                                             | 2102        
|American Balanced Fund                                 | 2111        
|American Funds Developing World Growth and Income Fund | 21100       
|American Funds Global Balanced Fund                    | 2137        
|American Mutual Fund                                   | 2103        
|Capital Income Builder                                 | 2112        
|Capital World Growth and Income Fund                   | 2133        
|EuroPacific Growth Fund                                | 2116        
|Fundamental Investors                                  | 2110        
|The Growth Fund of America                             | 2105        
|The Income Fund of America                             | 2106        
|International Growth and Income Fund                   | 2134        
|The Investment Company of America                      | 2104        
|The New Economy Fund                                   | 2114        
|New Perspective Fund                                   | 2107        
|New World Fund                                         | 2136        
|SMALLCAP World Fund                                    | 2135        
|Washington Mutual Investors Fund                       | 2101        
|Bond funds                                             |             
|American Funds Mortgage Fund                           | 2142        
|American High-Income Trust                             | 2121        
|The Bond Fund of America                               | 2108        
|Capital World Bond Fund                                | 2131        
|Intermediate Bond Fund of America                      | 2123        
|Short-Term Bond Fund of America                        | 2148        
|U.S. Government Securities Fund                        | 2122        
|Money market fund                                      |             
|American Funds Money Market Fund                       | 2159        

The Income Fund of America - Page 76







|                                                 | Fund numbers
|------------------------------------------------ | ------------
|Fund                                             | Class A     
|American Funds Target Date Retirement Series®    |             
|American Funds 2055 Target Date Retirement Fund® | 082         
|American Funds 2050 Target Date Retirement Fund® | 069         
|American Funds 2045 Target Date Retirement Fund® | 068         
|American Funds 2040 Target Date Retirement Fund® | 067         
|American Funds 2035 Target Date Retirement Fund® | 066         
|American Funds 2030 Target Date Retirement Fund® | 065         
|American Funds 2025 Target Date Retirement Fund® | 064         
|American Funds 2020 Target Date Retirement Fund® | 063         
|American Funds 2015 Target Date Retirement Fund® | 062         
|American Funds 2010 Target Date Retirement Fund® | 061         



|                                                 | Fund numbers
|------------------------------------------------ | ------------
|Fund                                             | Class
R-1   
|American Funds Target Date Retirement Series®    |             
|American Funds 2055 Target Date Retirement Fund® | 2182        
|American Funds 2050 Target Date Retirement Fund® | 2169        
|American Funds 2045 Target Date Retirement Fund® | 2168        
|American Funds 2040 Target Date Retirement Fund® | 2167        
|American Funds 2035 Target Date Retirement Fund® | 2166        
|American Funds 2030 Target Date Retirement Fund® | 2165        
|American Funds 2025 Target Date Retirement Fund® | 2164        
|American Funds 2020 Target Date Retirement Fund® | 2163        
|American Funds 2015 Target Date Retirement Fund® | 2162        
|American Funds 2010 Target Date Retirement Fund® | 2161        



|                                           | Fund numbers
|------------------------------------------ | ------------
|Fund                                       | Class 
529-A
|American Funds College Target Date Series® |             
|American Funds College 2030 Fund®          | 1094        
|American Funds College 2027 Fund®          | 1093        
|American Funds College 2024 Fund®          | 1092        
|American Funds College 2021 Fund®          | 1091        
|American Funds College 2018 Fund®          | 1090        
|American Funds College 2015 Fund®          | 1089        
|American Funds College Enrollment FundSM   | 1088        



The Income Fund of America - Page 77







|                                                   | Fund numbers
|-------------------------------------------------- | ------------
|Fund                                               | Class A     
|American Funds Portfolio SeriesSM                  |             
|American Funds Global Growth PortfolioSM           | 055         
|American Funds Growth PortfolioSM                  | 053         
|American Funds Growth and Income PortfolioSM       | 051         
|American Funds Balanced PortfolioSM                | 050         
|American Funds Income PortfolioSM                  | 047         
|American Funds Tax-Advantaged Income PortfolioSM   | 046         
|American Funds Preservation PortfolioSM            | 045         
|American Funds Tax-Exempt Preservation PortfolioSM | 044         
|                                                   | Class
529-A 
|American Funds Global Growth Portfolio             | 1055        
|American Funds Growth Portfolio                    | 1053        
|American Funds Growth and Income Portfolio         | 1051        
|American Funds Balanced Portfolio                  | 1050        
|American Funds Income Portfolio                    | 1047        
|American Funds Tax-Advantaged Income Portfolio     | N/A         
|American Funds Preservation Portfolio              | 1045        
|American Funds Tax-Exempt Preservation Portfolio   | N/A         
|                                                   |             
|                                                   | Class
R-1   
|American Funds Global Growth Portfolio             | 2155        
|American Funds Growth Portfolio                    | 2153        
|American Funds Growth and Income Portfolio         | 2151        
|American Funds Balanced Portfolio                  | 2150        
|American Funds Income Portfolio                    | 2147        
|American Funds Tax-Advantaged Income Portfolio     | N/A         
|American Funds Preservation Portfolio              | 2145        
|American Funds Tax-Exempt Preservation Portfolio   | N/A         
|                                                   |             



The Income Fund of America - Page 78







Appendix

The following descriptions of debt security
ratings are based on information provided by Moody’s Investors Service, Standard & Poor’s Corporation and Fitch
Ratings, Inc.

Description of bond ratings

Moody’sLong-term rating definitions

Aaa
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.

Aa
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.

A
Obligations rated A are considered upper-medium grade and are subject to low credit risk.

Baa
Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such may possess certain speculative
characteristics.

Ba
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.

B
Obligations rated B are considered speculative and are subject to high credit risk.

Caa
Obligations rated Caa are judged to be speculative and of poor standing and are subject to very high credit risk.

Ca
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal
and interest.

C
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of principal or interest.

Note: Moody’s appends numerical
modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks
in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a
ranking in the lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings
of hybrid securities issued by banks, insurers, finance companies and securities firms.

The Income Fund of America - Page 79







Standard & Poor’sLong-term issue credit ratings

AAA
An obligation rated AAA has the highest rating assigned by Standard & Poor’s. The obligor’s capacity to meet its
financial commitment on the obligation is extremely strong.

AA
An obligation rated AA differs from the highest-rated obligations only to a small degree. The obligor’s capacity to meet
its financial commitment on the obligation is very strong.

A
An obligation rated A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than
obligations in higher-rated categories. However, the obligor’s capacity to meet its financial commitment on the obligation
is still strong.

BBB
An obligation rated BBB exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances
are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

BB, B, CCC, CC, and C

Obligations rated BB, B, CCC, CC, and
C are regarded as having significant speculative characteristics. BB indicates the least degree of speculation and C the highest.
While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties
or major exposures to adverse conditions.

BB
An obligation rated BB is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties
or exposure to adverse business, financial, or economic conditions which could lead to the obligor’s inadequate capacity
to meet its financial commitment on the obligation.

B
An obligation rated B is more vulnerable to nonpayment than obligations rated BB, but the obligor currently has the capacity to
meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor’s
capacity or willingness to meet its financial commitment on the obligation.

CCC
An obligation rated CCC is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic
conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or
economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

CC
An obligation rated CC is currently highly vulnerable to nonpayment. The CC rating is used when a default has not occurred, but
Standard & Poor’s expects default to be a virtual certainty, regardless of the anticipated time to default.

The Income Fund of America - Page 80





C
An obligation rated C is currently highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority
or lower ultimate recovery compared to obligations that are rated higher.

D
An obligation rated D is in default or in breach of an imputed promise. For non-hybrid capital instruments, the D rating category
is used when payments on an obligation are not made on the date due, unless Standard & Poor’s believes that such payments
will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period
or 30 calendar days. The D rating also will be used upon the filing of a bankruptcy petition or the taking of similar action and
where default on an obligation is a virtual certainty, for example due to automatic stay provisions. An obligation’s rating
is lowered to D if it is subject to a distressed exchange offer.

Plus (+) or minus (–)

The ratings from AA to CCC may be modified
by the addition of a plus or minus sign to show relative standing within the major rating categories.

NR

This indicates that no rating has been
requested, that there is insufficient information on which to base a rating, or that Standard & Poor’s does not rate
a particular obligation as a matter of policy.

The Income Fund of America - Page 81







Fitch Ratings, Inc.Long-term credit ratings

AAA
Highest credit quality. AAA ratings denote the lowest expectation of default risk. They are assigned only in case of exceptionally
strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable
events.

AA
Very high credit quality. AA ratings denote expectations of very low default risk. They indicate very strong capacity for payment
of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

A
High credit quality. A ratings denote expectations of low default risk. The capacity for payment of financial commitments is considered
strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case
for higher ratings.

BBB
Good credit quality. BBB ratings indicate that expectations of default risk are low. The capacity for payment of financial commitments
is considered adequate but adverse changes in circumstances and economic conditions are more likely to impair this capacity.

BB
Speculative. BB ratings indicate an elevated vulnerability to default risk, particularly in the event of adverse changes in business
or economic conditions over time; however, business or financial flexibility exists which supports the servicing of financial commitments.

B
Highly speculative. B ratings indicate that material default risk is present, but a limited margin of safety remains. Financial
commitments are currently being met; however, capacity for continued payment is vulnerable to deterioration in the business and
economic environment.

CCC
Substantial credit risk. Default is a real possibility.

CC
Very high levels of credit risk. Default of some kind appears probable.

C
Exceptionally high levels of credit risk. Default is imminent or inevitable, or the issuer is in standstill. Conditions that are
indicative of a C category rating for an issuer include:

| | · | The issuer has entered into a grace or cure period following nonpayment of a material financial
obligation;
| | - | -----------------------------------------------------------------------------------------------------------

| | · | The issuer has entered into a temporary negotiated waiver or standstill agreement following a payment
default on a material financial obligation; or
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Fitch Ratings otherwise believes a condition of RD or D to be imminent or inevitable, including
through the formal announcement of a distressed debt exchange.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------

The Income Fund of America - Page 82





RD
Restricted default. RD ratings indicate an issuer that in Fitch Ratings’ opinion has experienced an uncured payment default
on a bond, loan or other material financial obligation but which has not entered into bankruptcy filings, administration, receivership,
liquidation or other formal winding up procedure, and which has not otherwise ceased operating. This would include:

| | · | The selective payment default on a specific class or currency of debt;
| | - | ----------------------------------------------------------------------

| | · | The uncured expiry of any applicable grace period, cure period or default forbearance period following
a payment default on a bank loan, capital markets security or other material financial obligation;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | The extension of multiple waivers or forbearance periods upon a payment default on one or more
material financial obligations, either in series or in parallel; or
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Execution of a distressed debt exchange on one or more material financial obligations.
| | - | --------------------------------------------------------------------------------------

D
Default. D ratings indicate an issuer that in Fitch Ratings’ opinion has entered into bankruptcy filings, administration,
receivership, liquidation or other formal winding up procedure, or which has otherwise ceased business.

Default ratings are not assigned prospectively
to entities or their obligations; within this context, nonpayment on an instrument that contains a deferral feature or grace period
will generally not be considered a default until after the expiration of the deferral or grace period, unless a default is otherwise
driven by bankruptcy or other similar circumstance, or by a distressed debt exchange.

Imminent default typically refers to
the occasion where a payment default has been intimated by the issuer, and is all but inevitable. This may, for example, be where
an issuer has missed a scheduled payment, but (as is typical) has a grace period during which it may cure the payment default.
Another alternative would be where an issuer has formally announced a distressed debt exchange, but the date of the exchange still
lies several days or weeks in the immediate future.

In all cases, the assignment of a default
rating reflects the agency’s opinion as to the most appropriate rating category consistent with the rest of its universe
of ratings, and may differ from the definition of default under the terms of an issuer’s financial obligations or local commercial
practice.

Note: The modifiers “+”
or “–” may be appended to a rating to denote relative status within major rating categories. Such suffixes are
not added to the AAA long-term rating category, or to categories below B.







The Income Fund of America - Page 83











®
 Common stocks 74.81%Health care 10.49%
    Shares
    Value
(000)Merck & Co., Inc.
    49,692,840
    $2,819,572Bristol-Myers Squibb Co.
    32,912,500
    1,666,031Pfizer Inc.
    56,230,000
    1,613,801AstraZeneca PLC1
    18,841,700
    1,372,720AbbVie Inc.
    8,520,000
    445,937Johnson & Johnson
    3,945,000
    394,855Novartis AG1
    3,762,000
    328,383Novartis AG (ADR)
    500,000
    43,470Eli Lilly and Co.
    6,000,000
    366,360Roche Holding AG1
    1,100,000
    319,576Healthscope Ltd.1,2,3
    101,831,569
    213,868Baxter International Inc.
    2,675,000
    199,796Sonic Healthcare Ltd.1
    3,000,000
    50,221Rotech Healthcare Inc.1,2,3
    543,172
    7,3339,841,923Industrials 9.66%General Electric Co.
    74,980,000
    1,885,747Lockheed Martin Corp.
    7,567,400
    1,263,529Waste Management, Inc.3
    27,982,868
    1,256,151BAE Systems PLC1
    81,823,984
    590,537Iron Mountain Inc.3
    12,457,211
    417,441Hubbell Inc., Class B
    3,430,000
    401,104KONE Oyj, Class B1
    9,136,000
    383,994Masco Corp.
    15,796,751
    328,572Norfolk Southern Corp.
    3,000,000
    304,980Siemens AG1
    2,370,000
    293,201Ryanair Holdings PLC (ADR)2
    4,615,000
    244,549R.R. Donnelley & Sons Co.3
    13,345,400
    231,676PACCAR Inc
    3,382,500
    210,628Delta Air Lines, Inc.
    4,840,000
    181,306Boeing Co.
    1,500,000
    180,720Abertis Infraestructuras, SA, Class A1
    7,842,975
    171,641United Technologies Corp.
    1,500,000
    157,725Honeywell International Inc.
    1,575,000
    144,632Randstad Holding NV1
    2,801,000
    138,501Schneider Electric SE1
    1,407,606
    118,415Geberit AG1
    158,758
    53,172CEVA Group PLC1,2,4
    35,228
    40,513Atlas Copco AB, Class B1
    1,195,000
    32,219Douglas Dynamics, Inc.3
    1,444,000
    24,115Vallourec SA1
    217,491
    9,585Atrium Corp.1,2,4
    1,807
    29,064,655




---

Common stocksFinancials 9.50%
    Shares
    Value
(000)Wells Fargo & Co.
    21,692,000
    $1,104,123JPMorgan Chase & Co.
    15,130,200
    872,559Banco Santander, SA1,2
    76,499,601
    768,815Banco Santander, SA, interim shares, non-registered shares1,2
    1,561,216
    15,690CME Group Inc., Class A
    10,140,400
    749,781Suncorp Group Ltd.1
    51,279,898
    676,599HSBC Holdings PLC (GBP denominated)1
    30,420,722
    325,664HSBC Holdings PLC (HKD denominated)1
    28,586,382
    307,117Digital Realty Trust, Inc.3
    8,346,000
    537,399Weyerhaeuser Co.2
    11,640,213
    364,572Public Storage
    2,090,000
    358,665Equity Residential
    4,225,000
    273,146Prudential PLC1
    11,775,000
    271,142BlackRock, Inc.
    650,000
    198,075McGraw Hill Financial, Inc.
    2,219,400
    178,040Kimco Realty Corp.
    7,835,000
    175,347AXA SA1
    7,595,000
    173,934British Land Co. PLC1
    14,530,431
    171,950Sun Hung Kai Properties Ltd.1
    11,214,234
    169,887HCP, Inc.
    4,014,800
    166,735Cullen/Frost Bankers, Inc.
    1,700,000
    132,549Health Care REIT, Inc.
    1,855,000
    118,034Link Real Estate Investment Trust1
    20,401,812
    115,595Arthur J. Gallagher & Co.
    2,500,000
    112,500Macerich Co.
    1,620,000
    105,316Toronto-Dominion Bank
    1,600,000
    83,672SEGRO PLC1
    13,460,309
    81,099Bank of Nova Scotia
    910,065
    61,773Northwest Bancshares, Inc.3
    4,850,000
    60,140Allianz SE1
    350,000
    58,502New York Community Bancorp, Inc.
    3,065,000
    48,672Redwood Trust, Inc.
    2,479,888
    47,068City Holding Co.
    741,000
    30,863American Tower Corp.
    42,271
    3,990Prime AET&D Holdings No 1 Pty Ltd.1,2
    22,756,141
    —8,919,013Information technology 8.07%Microsoft Corp.
    60,846,100
    2,626,118Cisco Systems, Inc.
    51,980,000
    1,311,455Texas Instruments Inc.
    19,380,000
    896,325Analog Devices, Inc.
    11,650,000
    578,189Taiwan Semiconductor Manufacturing Co. Ltd.1
    127,503,000
    512,262Intel Corp.
    13,000,000
    440,570KLA-Tencor Corp.
    3,250,730
    232,395Quanta Computer Inc.1
    82,811,955
    232,229Maxim Integrated Products, Inc.
    7,796,000
    228,501STMicroelectronics NV1
    24,162,000
    200,578Diebold, Inc.3
    3,925,000
    147,894Paychex, Inc.
    2,884,700
    118,302Fidessa group PLC1
    1,240,000
    43,6887,568,506




---

Common stocksConsumer staples 7.74%
    Shares
    Value
(000)PepsiCo, Inc.
    14,752,588
    $1,299,703Procter & Gamble Co.
    15,173,700
    1,173,230Philip Morris International Inc.
    12,168,200
    997,914Kimberly-Clark Corp.
    6,183,110
    642,240Altria Group, Inc.
    15,102,000
    613,141Nestlé SA1
    6,440,000
    478,080Imperial Tobacco Group PLC1
    10,583,991
    458,401Lorillard, Inc.
    6,140,000
    371,347British American Tobacco PLC1
    6,048,000
    353,956Coca-Cola Co.
    8,995,000
    353,414Kellogg Co.
    3,200,000
    191,456General Mills, Inc.
    3,030,000
    151,954Hershey Co.
    1,500,000
    132,225Kraft Foods Group, Inc.
    816,667
    43,7617,260,822Energy 6.75%ConocoPhillips
    13,565,162
    1,119,126Royal Dutch Shell PLC, Class B (ADR)
    10,431,000
    898,526Royal Dutch Shell PLC, Class B1
    4,499,147
    193,839Spectra Energy Corp
    25,390,500
    1,038,979Chevron Corp.
    5,215,000
    673,987BP PLC1
    64,900,000
    530,145Crescent Point Energy Corp.
    10,905,000
    444,961Occidental Petroleum Corp.
    3,675,000
    359,084Helmerich & Payne, Inc.
    2,500,000
    265,650ONEOK, Inc.
    3,575,000
    230,337Coal India Ltd.1
    16,900,000
    102,310Diamond Offshore Drilling, Inc.
    2,135,200
    99,906Keyera Corp.
    1,332,700
    99,762Transocean Ltd.
    2,200,000
    88,748Kinder Morgan, Inc.
    2,013,395
    72,442TOTAL SA (ADR)
    1,050,000
    67,725Husky Energy Inc.
    1,750,000
    53,238General Maritime Corp.1,2,4
    5,506
    1916,338,956Materials 5.27%E.I. du Pont de Nemours and Co.
    21,261,000
    1,367,295Dow Chemical Co.
    18,772,234
    958,698Potash Corp. of Saskatchewan Inc.
    18,250,000
    647,693Nucor Corp.
    12,890,485
    647,360MeadWestvaco Corp.3
    11,281,000
    471,546Air Products and Chemicals, Inc.
    2,425,000
    319,979BASF SE1
    2,000,000
    207,861Fletcher Building Ltd.1
    17,974,000
    138,428Cliffs Natural Resources Inc.3
    7,354,581
    128,337Israel Chemicals Ltd.1
    5,943,040
    48,487NewPage Holdings Inc.1,5
    73,460
    7,1914,942,875




---

Common stocksTelecommunication services 5.24%
    Shares
    Value
(000)Verizon Communications Inc.
    35,581,336
    $1,794,011Telstra Corp. Ltd.1
    141,451,533
    717,109Deutsche Telekom AG1
    38,600,000
    625,675Orange1
    36,435,000
    570,406HKT Trust and HKT Ltd., units1
    345,019,135
    407,462TalkTalk Telecom Group PLC1,3
    57,242,000
    302,965BT Group PLC1
    26,030,000
    169,745CenturyLink, Inc.
    4,290,000
    168,340MegaFon OJSC (GDR)1,4
    3,194,200
    88,957MegaFon OJSC (GDR)1
    266,800
    7,431AT&T Inc.
    1,910,000
    67,9774,920,078Utilities 4.64%National Grid PLC1
    63,482,420
    914,344Duke Energy Corp.
    8,912,057
    642,827EDP - Energias de Portugal, SA1
    113,440,000
    530,617PG&E Corp.
    11,300,000
    504,771DTE Energy Co.
    5,500,000
    406,010Power Assets Holdings Ltd.1
    44,716,000
    399,547FirstEnergy Corp.
    8,867,983
    276,770Dominion Resources, Inc.
    3,570,000
    241,475Snam SPA1
    30,547,000
    180,007Exelon Corp.
    5,000,000
    155,400NTPC Ltd.1
    27,000,000
    64,209Ratchaburi Electricity Generating Holding PCL1
    24,568,000
    41,4094,357,386Consumer discretionary 4.14%Home Depot, Inc.
    10,430,000
    843,266Carnival Corp., units
    13,368,500
    484,207Time Warner Cable Inc.
    2,442,690
    354,434Time Warner Inc.
    3,780,000
    313,816SJM Holdings Ltd.1
    114,800,000
    307,657SES SA, Class A (FDR)1
    7,800,000
    286,057CBS Outdoor Americas, Inc.3
    7,800,000
    259,662Marks and Spencer Group PLC1
    30,000,000
    216,827Genuine Parts Co.
    2,350,000
    194,627VF Corp.
    2,840,000
    174,007McDonald’s Corp.
    1,250,000
    118,200ProSiebenSat.1 Media AG1
    2,745,000
    115,389Daimler AG1
    880,000
    72,906Wynn Resorts, Ltd.
    286,144
    61,006Cooper-Standard Holdings Inc.2
    586,012
    36,333Nokian Renkaat Oyj1
    674,000
    23,306Wynn Macau, Ltd.1
    4,747,600
    20,171Adelphia Recovery Trust, Series ACC-12
    19,531,478
    39Revel AC, Inc.1,2,5
    529,539
    —3,881,910Miscellaneous 3.31%Other common stocks in initial period of acquisition
    
    3,102,166Total common stocks(cost: $52,802,769,000)
    
    70,198,290




---

Preferred securities 0.52%Financials 0.52%
    Shares
    Value
(000)Citigroup Inc., Series K, depositary shares
    3,458,483
    $93,180Citigroup Inc. 7.875% preferred
    2,637,610
    71,512Vornado Realty Trust, Series I, 6.625%
    3,380,000
    85,210U.S. Bancorp, Series G, noncumulative convertible preferred
    2,270,400
    62,124PNC Financial Services Group, Inc., Series P, noncumulative depositary shares
    2,000,000
    54,685HSBC Holdings PLC, Series 2, 8.00%
    1,825,000
    49,535Wells Fargo & Co., Class A, Series Q, 5.85% depositary shares preferred noncumulative
    1,600,000
    40,960Goldman Sachs Group, Inc., Series J, 5.50% depositary shares
    1,200,000
    28,815Total preferred securities(cost: $463,126,000)
    
    486,021Rights & warrants 0.00%Energy 0.00%General Maritime Corp., warrants, expire 20171,2,4
    8,514
    40Miscellaneous 0.00%Other rights & warrants in initial period of acquisition
    
    2,325Total rights & warrants(cost: $2,171,000)
    
    2,365Convertible stocks 0.33%Energy 0.16%Chesapeake Energy Corporation 5.75% convertible preferred4
    125,700
    150,054Industrials 0.07%CEVA Group PLC, Series A-1, 3.234% convertible preferred1
    29,937
    45,654CEVA Group PLC, Series A-2, 2.234% convertible preferred1,5
    13,633
    15,678Materials 0.05%Cliffs Natural Resources Inc., Series A, 7.00% convertible preferred 20163
    2,925,000
    47,151Consumer staples 0.03%Bunge Ltd. 4.875% convertible preferred
    272,700
    29,097Miscellaneous 0.02%Other convertible stocks in initial period of acquisition
    
    22,070Total convertible stocks(cost: $305,530,000)
    
    309,704Convertible bonds 0.12%Energy 0.07%
    Principal amount
(000)American Energy Utica, LLC 3.50% convertible notes 20214,6,7
    $53,232
    64,145Consumer discretionary 0.03%MGM Resorts International 4.25% convertible notes 2015
    19,845
    29,507




---

Convertible bondsMiscellaneous 0.02%
    Principal amount
(000)
    Value
(000)Other convertible bonds in initial period of acquisition
    
    $22,313Total convertible bonds(cost: $90,268,000)
    
    115,965Bonds, notes & other debt instruments 19.37%Corporate bonds & notes 14.26%
Financials 2.69%ACE INA Holdings Inc. 2.60% 2015
    $7,445
    7,631ACE INA Holdings Inc. 3.35% 2024
    2,500
    2,504Alexandria Real Estate Equities, Inc. 2.75% 2020
    795
    795Alexandria Real Estate Equities, Inc. 3.90% 2023
    2,750
    2,732Alexandria Real Estate Equities, Inc. 4.50% 2029
    1,355
    1,365American Campus Communities, Inc. 3.75% 2023
    3,985
    3,933American Campus Communities, Inc. 4.125% 2024
    10,695
    10,751American Express Co. 6.15% 2017
    12,610
    14,370American International Group, Inc. 2.30% 2019
    9,785
    9,741American International Group, Inc. 3.375% 2020
    13,000
    13,499American International Group, Inc. 4.50% 2044
    3,000
    2,972American Tower Corp. 7.00% 2017
    6,200
    7,176American Tower Corp. 3.40% 2019
    6,400
    6,642American Tower Corp. 7.25% 2019
    15,025
    18,057ANZ National (International) Ltd. 3.125% 20154
    10,000
    10,263AvalonBay Communities, Inc. 3.625% 2020
    1,790
    1,878AXA SA, Series B, junior subordinated 6.379% (undated)4,7
    4,155
    4,519Bank of America Corp., Series L, 3.625% 2016
    7,060
    7,362Bank of America Corp. 3.75% 2016
    9,975
    10,470Bank of America Corp. 1.25% 2017
    8,500
    8,506Bank of America Corp. 5.75% 2017
    8,100
    9,095Bank of America Corp., Series L, 2.65% 2019
    8,500
    8,555Bank of America Corp. 5.625% 2020
    9,000
    10,303Bank of America Corp. 5.00% 2021
    3,500
    3,873Bank of America Corp. 4.00% 2024
    12,925
    13,113Bank of America Corp., Series M, junior subordinated 8.125% noncumulative (undated)7
    30,924
    34,394Bank of New York Mellon Corp., Series G, 2.50% 2016
    10,000
    10,283Bank of Nova Scotia 2.55% 2017
    9,000
    9,308Barclays Bank PLC 2.50% 2019
    10,910
    11,024BB&T Corp. 1.00% 2017
    8,500
    8,437BBVA Bancomer SA 6.50% 20214
    7,200
    8,136Berkshire Hathaway Finance Corp. 4.30% 2043
    3,600
    3,554Berkshire Hathaway Inc. 2.20% 2016
    11,500
    11,843Berkshire Hathaway Inc. 2.90% 2020
    6,000
    6,135Berkshire Hathaway Inc. 4.40% 2042
    2,000
    2,020BNP Paribas 3.60% 2016
    10,000
    10,416BPCE SA group 4.00% 2024
    6,000
    6,091BPCE SA group 5.15% 20244
    11,725
    12,304Brandywine Operating Partnership, LP 5.40% 2014
    6,000
    6,067Brandywine Operating Partnership, LP 5.70% 2017
    20
    22Brandywine Operating Partnership, LP 3.95% 2023
    1,729
    1,730CIT Group Inc., Series C, 4.75% 20154
    56,200
    57,008CIT Group Inc. 5.00% 2017
    43,300
    45,627CIT Group Inc. 4.25% 2017
    14,000
    14,455CIT Group Inc. 5.25% 2018
    2,500
    2,644CIT Group Inc., Series C, 5.50% 20194
    16,150
    17,291CIT Group Inc. 3.875% 2019
    39,200
    39,102




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Financials (continued)
    Principal amount
(000)
    Value
(000)Citigroup Inc. 4.587% 2015
    $10,885
    $11,445Citigroup Inc. 3.953% 2016
    7,115
    7,494Citigroup Inc. 2.50% 2018
    6,000
    6,074Citigroup Inc. 8.50% 2019
    4,894
    6,199Citigroup Inc. 2.50% 2019
    8,400
    8,380Citigroup Inc. 3.75% 2024
    11,000
    10,965Citigroup Inc., Series A, junior subordinated 5.95% (undated)7
    13,295
    13,231CNA Financial Corp. 3.95% 2024
    6,705
    6,872Corporate Office Properties LP 5.25% 2024
    9,150
    9,782Corporate Office Properties Trust 3.60% 2023
    320
    307Crescent Resources 10.25% 20174
    30,160
    33,553DCT Industrial Trust Inc. 4.50% 2023
    15,550
    15,867Developers Diversified Realty Corp. 5.50% 2015
    15,776
    16,310Developers Diversified Realty Corp. 9.625% 2016
    8,395
    9,537Developers Diversified Realty Corp. 7.50% 2017
    38,892
    44,612Developers Diversified Realty Corp. 4.75% 2018
    5,000
    5,413Developers Diversified Realty Corp. 7.875% 2020
    7,795
    9,803Discover Financial Services 4.20% 2023
    5,460
    5,689ERP Operating LP 6.584% 2015
    2,705
    2,816ERP Operating LP 7.125% 2017
    10,000
    11,671Essex Portfolio L.P. 3.25% 2023
    4,400
    4,295Essex Portfolio L.P. 3.875% 20244
    10,950
    11,095Genworth Holdings, Inc. 4.90% 2023
    1,565
    1,660Goldman Sachs Group, Inc. 3.625% 2016
    22,600
    23,508Goldman Sachs Group, Inc. 2.625% 2019
    27,331
    27,479Goldman Sachs Group, Inc. 5.25% 2021
    23,000
    25,686Goldman Sachs Group, Inc. 5.75% 2022
    20,000
    22,980Goldman Sachs Group, Inc. 3.625% 2023
    8,500
    8,455Goldman Sachs Group, Inc. 3.85% 2024
    17,910
    17,868Goldman Sachs Group, Inc., Series L, 5.70% 20497
    16,820
    17,214HBOS PLC 6.75% 20184
    17,300
    19,809Hospitality Properties Trust 5.125% 2015
    2,160
    2,163Hospitality Properties Trust 6.30% 2016
    19,827
    21,143Hospitality Properties Trust 5.625% 2017
    10,169
    11,079Hospitality Properties Trust 6.70% 2018
    12,625
    14,168Hospitality Properties Trust 5.00% 2022
    6,500
    6,868Hospitality Properties Trust 4.50% 2023
    11,060
    11,246Host Hotels & Resorts LP 6.00% 2021
    6,400
    7,375HSBC Holdings PLC 4.25% 2024
    17,070
    17,416HSBK (Europe) BV 7.25% 20174
    30,570
    33,245Icahn Enterprises Finance Corp. 3.50% 2017
    26,550
    26,484Intercontinentalexchange, Inc. 2.50% 2018
    12,000
    12,227International Lease Finance Corp. 4.875% 2015
    51,400
    52,396International Lease Finance Corp. 8.625% 2015
    3,000
    3,199Intesa Sanpaolo SpA 5.017% 20244
    28,110
    27,847iStar Financial Inc., Series B, 9.00% 2017
    37,360
    42,497iStar Financial Inc. 4.00% 2017
    25,500
    25,245iStar Financial Inc. 4.875% 2018
    11,575
    11,517iStar Financial Inc. 5.00% 2019
    14,275
    14,132JPMorgan Chase & Co. 1.35% 2017
    12,240
    12,263JPMorgan Chase & Co. 3.25% 2022
    5,000
    4,979JPMorgan Chase & Co. 3.20% 2023
    8,000
    7,875JPMorgan Chase & Co., Series I, junior subordinated 7.90% (undated)7
    74,825
    82,775JPMorgan Chase & Co., Series-S, junior subordinated, perpetual, 6.75% (undated)7
    36,535
    39,184




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Financials (continued)
    Principal amount
(000)
    Value
(000)JPMorgan Chase & Co., Series-V, junior subordinated, perpetual, 5.00% (undated)7
    $24,000
    $23,779Kimco Realty Corp., Series C, 5.783% 2016
    15,000
    16,158Kimco Realty Corp. 5.70% 2017
    17,250
    19,126Kimco Realty Corp. 4.30% 2018
    1,000
    1,080Kimco Realty Corp. 6.875% 2019
    10,844
    12,999Leucadia National Corp. 5.50% 2023
    13,255
    13,985Liberty Mutual Group Inc. 4.25% 20234
    4,400
    4,530Liberty Mutual Group Inc., Series A, 7.80% 20874,7
    19,415
    23,104Lloyds Banking Group PLC 2.30% 2018
    3,625
    3,658MetLife Capital Trust IV, junior subordinated 7.875% 20674,7
    14,430
    18,326MetLife Capital Trust X, junior subordinated 9.25% 20684,7
    500
    720MetLife Global Funding I 2.50% 20154
    10,000
    10,220MetLife Global Funding I 2.30% 20194
    17,880
    17,970Metlife, Inc. 3.60% 2024
    3,775
    3,833Morgan Stanley 3.80% 2016
    5,125
    5,371Morgan Stanley 2.375% 2019
    28,200
    28,002Morgan Stanley, Series F, 3.875% 2024
    7,500
    7,570Morgan Stanley, Series H, 5.45% (undated)7
    10,875
    10,861Nationwide Mutual Insurance Co. 5.81% 20244,7
    8,150
    8,252New York Life Global Funding 2.10% 20194
    11,000
    11,034Nordea Bank AB 2.375% 20194
    15,000
    15,085Ocwen Financial Corp. 6.625% 20194
    10,200
    10,455Piedmont Operating Partnership LP 3.40% 2023
    1,750
    1,655PNC Financial Services Group, Inc. 2.854% 2022
    8,710
    8,469PNC Financial Services Group, Inc. 3.90% 2024
    14,000
    14,170PNC Financial Services Group, Inc., Series O, junior subordinated 6.75% (undated)7
    10,250
    11,482PNC Preferred Funding Trust I, junior subordinated 1.881% (undated)4,7
    23,800
    23,383Prologis, Inc. 3.35% 2021
    2,750
    2,774Prologis, Inc. 4.25% 2023
    30,260
    31,525Prudential Financial, Inc. 4.50% 2021
    2,400
    2,627Prudential Financial, Inc. 3.50% 2024
    15,000
    14,867Prudential Financial, Inc. 4.60% 2044
    1,200
    1,206Prudential Holdings, LLC, Series C, 8.695% 20234,8
    9,811
    12,406QBE Insurance Group Ltd. 2.40% 20184
    16,910
    16,846Rabobank Nederland 2.25% 2019
    8,000
    8,076Rabobank Nederland 4.625% 2023
    17,280
    18,101RBS Capital Trust II 6.425% noncumulative trust (undated)7
    6,005
    6,422Realogy Corp. 3.375% 20164
    3,000
    3,022Realogy Corp. 4.50% 20194
    42,575
    41,511Realogy Corp., LOC, 4.50% 20167,8,9
    5,219
    5,216Regions Financial Corp. 7.75% 2014
    4,791
    4,882Regions Financial Corp. 5.75% 2015
    14,761
    15,375Royal Bank of Scotland Group PLC, junior subordinated 6.99% (undated)4,7
    12,735
    14,677Ryman Hospitality Properties, Inc. 5.00% 2021
    10,375
    10,349Ryman Hospitality Properties, Inc., Term Loan B, 3.75% 20217,8,9
    4,800
    4,822Santander Issuances, SA Unipersonal 6.50% 20194,7
    7,500
    7,506Simon Property Group, LP 6.10% 2016
    4,250
    4,590Simon Property Group, LP 5.25% 2016
    30,040
    32,700Simon Property Group, LP 5.875% 2017
    15,000
    16,657SMFG Preferred Capital USD 3 Ltd., junior subordinated 9.50% (undated)4,7
    116,330
    145,994Société Générale, junior subordinated 5.922% (undated)4,7
    45,073
    48,284Standard Chartered Bank 6.40% 20174
    25,000
    28,223Synovus Financial Corp. 7.875% 2019
    23,506
    26,738Toronto-Dominion Bank 2.375% 2016
    9,000
    9,295




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Financials (continued)
    Principal amount
(000)
    Value
(000)UDR, Inc., Series A, 5.25% 2015
    $3,000
    $3,062UDR, Inc. 3.70% 2020
    2,320
    2,410Unum Group 7.125% 2016
    6,740
    7,601UnumProvident Finance Co. PLC 6.85% 20154
    14,529
    15,560US Bancorp., Series T, 1.65% 2017
    10,000
    10,118US Bancorp. 3.70% 2024
    10,000
    10,331Wells Fargo & Co. 3.676% 2016
    10,000
    10,524Wells Fargo & Co. 2.125% 2019
    16,000
    15,927Wells Fargo & Co. 4.60% 2021
    45,000
    49,804Wells Fargo & Co. 4.10% 2026
    14,450
    14,587Wells Fargo & Co., Series K, junior subordinated 7.98% (undated)7
    86,566
    98,599Westpac Banking Corp. 3.00% 2015
    9,000
    9,297Zions Bancorporation 6.00% 2015
    1,357
    1,428Zions Bancorporation 5.50% 2015
    3,386
    3,5162,524,120Consumer discretionary 1.92%Boyd Gaming Corp. 9.125% 2018
    88,575
    92,782Boyd Gaming Corp. 9.00% 2020
    5,000
    5,369Burger King Corp 0%/11.00% 20194,10
    23,475
    21,750Burlington Coat Factory Warehouse Corp. 10.00% 2019
    6,700
    7,366Cablevision Systems Corp. 8.00% 2020
    20,000
    22,625Caesars Entertainment Operating Co. 11.25% 2017
    20,000
    17,700Caesars Entertainment,Term Loan B, 7.00% 20207,8,9
    4,975
    4,994Carnival Corp. 3.95% 2020
    16,715
    17,513CBS Corp. 1.95% 2017
    5,000
    5,075CCO Holdings LLC and CCO Holdings Capital Corp. 7.00% 2019
    8,000
    8,360Cedar Fair, LP 5.375% 20244
    11,950
    11,965Cequel Communications Holdings I, LLC and Cequel Capital Corp. 6.375% 20204
    35,425
    36,665Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 7.25% 2017
    19,600
    20,482Cinemark USA, Inc. 5.125% 2022
    9,500
    9,619CityCenter Holdings, Term Loan B, 4.25% 20207,8,9
    2,841
    2,852Clear Channel Worldwide Holdings, Inc. 7.625% 2020
    10,010
    10,561Comcast Corp. 5.90% 2016
    10,000
    10,835Comcast Corp. 5.65% 2035
    7,000
    8,273Comcast Corp. 6.45% 2037
    25,000
    32,046Comcast Corp. 4.75% 2044
    15,000
    15,715Cooper-Standard Holdings Inc., Term Loan B, 4.00% 20217,8,9
    8,250
    8,240Cox Communications, Inc. 5.45% 2014
    1,599
    1,627Cox Communications, Inc. 5.875% 20164
    25,000
    27,514Cox Communications, Inc. 2.95% 20234
    23,875
    22,634Cumulus Media Inc., Term Loan B, 4.25% 20207,8,9
    11,126
    11,163DaimlerChrysler North America Holding Corp. 1.30% 20154
    8,500
    8,561DaimlerChrysler North America Holding Corp. 2.625% 20164
    2,000
    2,063DaimlerChrysler North America Holding Corp. 1.375% 20174
    8,585
    8,570DaimlerChrysler North America Holding Corp. 2.375% 20184
    2,000
    2,034DaimlerChrysler North America Holding Corp. 2.25% 20194
    14,000
    13,955DaimlerChrysler North America Holding Corp. 3.25% 20244
    2,270
    2,252DaimlerChrysler North America Holding Corp. 8.50% 2031
    2,000
    3,021Delta 2 (Formula One), Term Loan B, 4.75% 20217,8,9
    5,675
    5,634Delta 2 (Formula One), Term Loan B, 7.75% 20227,8,9
    3,125
    3,133DISH DBS Corp. 4.625% 2017
    45,105
    47,022DISH DBS Corp. 4.25% 2018
    36,075
    36,706DISH DBS Corp. 7.875% 2019
    1,425
    1,642




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Consumer discretionary (continued)
    Principal amount
(000)
    Value
(000)DISH DBS Corp. 5.125% 2020
    $10,900
    $11,145Dollar General Corp. 3.25% 2023
    40,038
    38,166Dynacast International LLC 9.25% 2019
    5,575
    6,133EchoStar DBS Corp. 7.75% 2015
    7,350
    7,718Federated Department Stores, Inc. 6.90% 2029
    7,925
    9,995Ford Motor Co. 4.75% 2043
    2,650
    2,669Ford Motor Credit Co. 2.50% 2016
    7,000
    7,156Ford Motor Credit Co. 1.70% 2016
    8,500
    8,595Ford Motor Credit Co. 8.00% 2016
    1,500
    1,732Ford Motor Credit Co. 2.375% 2018
    10,905
    11,082Ford Motor Credit Co. 4.375% 2023
    12,850
    13,632Gannett Co., Inc. 5.125% 20194
    7,925
    8,123Gannett Co., Inc. 6.375% 20234
    4,065
    4,299General Motors Financial Co. 3.25% 2018
    24,375
    24,405General Motors Financial Co. 6.75% 2018
    1,720
    1,948General Motors Financial Co. 3.50% 2019
    6,320
    6,304Group 1 Automotive, Inc. 5.00% 20224
    2,940
    2,911Hilton Hotels Corp. 5.625% 20214
    9,400
    9,864Hilton Worldwide, Term Loan B, 3.50% 20207,8,9
    18,634
    18,570Home Depot, Inc. 2.00% 2019
    29,000
    28,898Home Depot, Inc. 5.95% 2041
    25,000
    31,144Home Depot, Inc. 4.40% 2045
    7,475
    7,578J.C. Penney Co., Inc. 5.75% 2018
    9,300
    8,556La Quinta Properties, Inc., First Lien Term Loan B, 4.00% 20217,8,9
    21,931
    21,979Limited Brands, Inc. 5.25% 2014
    1,585
    1,601Limited Brands, Inc. 8.50% 2019
    16,105
    19,487Limited Brands, Inc. 7.00% 2020
    21,271
    24,143Limited Brands, Inc. 6.625% 2021
    23,754
    26,604Mediacom Broadband LLC and Mediacom Broadband Corp. 5.50% 20214
    7,000
    7,096Mediacom LLC and Mediacom Capital Corp. 9.125% 2019
    13,750
    14,426Mediacom LLC and Mediacom Capital Corp. 7.25% 2022
    7,775
    8,397MGM Resorts International 6.625% 2015
    20,725
    21,647MGM Resorts International 7.50% 2016
    8,425
    9,183MGM Resorts International 8.625% 2019
    5,425
    6,334MGM Resorts International 6.75% 2020
    7,350
    7,975MGM Resorts International 7.75% 2022
    17,000
    19,550Michaels Stores, Inc. 7.50% 20184,6,7
    5,000
    5,075Michaels Stores, Inc. 7.75% 2018
    13,000
    13,561Michaels Stores, Inc. 5.875% 20204
    12,925
    12,738Mohegan Tribal Gaming Authority 11.00% 20184,6,7
    13,725
    13,751Myriad International Holdings 6.00% 20204
    40,000
    44,300NBC Universal Enterprise, Inc. 0.919% 20184,7
    8,625
    8,726NBC Universal Enterprise, Inc. 5.25% (undated)4
    37,105
    38,821NBCUniversal Media, LLC 2.875% 2016
    10,000
    10,355NCL Corp. Ltd. 5.00% 2018
    575
    589Needle Merger Sub Corp. 8.125% 20194
    16,220
    16,220Neiman Marcus Group LTD Inc. 8.00% 20214
    48,050
    50,933Neiman Marcus Group LTD Inc. 8.75% 20214,6,7
    16,760
    17,975Neiman Marcus, Term Loan B, 4.25% 20207,8,9
    37,362
    37,239News America Inc. 5.30% 2014
    20,000
    20,359PETCO Animal Supplies, Inc. 9.25% 20184
    21,600
    22,950Pinnacle Entertainment, Inc. 6.375% 2021
    7,475
    7,737Playa Resorts Holding BV 8.00% 20204
    15,795
    16,743Playa Resorts Holding BV, Term Loan B, 4.00% 20197,8,9
    5,456
    5,461




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Consumer discretionary (continued)
    Principal amount
(000)
    Value
(000)President & Fellows of Harvard College 3.619% 2037
    $10,000
    $9,487RCI Banque 3.50% 20184
    12,500
    12,998Royal Caribbean Cruises Ltd. 11.875% 2015
    21,425
    23,621Sally Holdings LLC and Sally Capital Inc. 6.875% 2019
    11,950
    12,787Schaeffler Holding Finance BV 6.875% 20184,6,7
    5,450
    5,750Seminole Tribe of Florida 6.535% 20204,8
    10,000
    11,150Seneca Gaming Corp. 8.25% 20184
    7,925
    8,381Six Flags Entertainment Corp. 5.25% 20214
    6,400
    6,384Stackpole Intl. 7.75% 20214
    28,265
    28,406Thomson Reuters Corp. 1.30% 2017
    1,510
    1,507Thomson Reuters Corp. 4.30% 2023
    1,285
    1,343Thomson Reuters Corp. 5.65% 2043
    1,425
    1,581Time Inc. 5.75% 20224
    7,000
    6,948Time Inc., Term Loan B, 4.25% 20217,8,9
    41,325
    41,273Time Warner Cable Inc. 6.75% 2018
    18,630
    21,841Time Warner Cable Inc. 5.00% 2020
    35,000
    39,012Time Warner Cable Inc. 4.00% 2021
    3,885
    4,124Time Warner Inc. 5.875% 2016
    8,000
    8,854Time Warner Inc. 2.10% 2019
    1,240
    1,227Time Warner Inc. 4.75% 2021
    15,000
    16,582Time Warner Inc. 4.05% 2023
    2,735
    2,806Time Warner Inc. 3.55% 2024
    3,000
    2,954Time Warner Inc. 4.65% 2044
    8,500
    8,301Toyota Motor Credit Corp. 0.875% 2015
    8,500
    8,546Toyota Motor Credit Corp. 2.125% 2019
    1,500
    1,496Toys "R" Us Property Co. II, LLC 8.50% 2017
    12,400
    12,571Toys "R" Us-Delaware, Inc. 7.375% 20164
    9,925
    9,330Toys "R" Us-Delaware, Inc., Term Loan B2, 5.25% 20187,8,9
    15,565
    12,893Univision Communications Inc. 6.875% 20194
    3,200
    3,368Univision Communications Inc., Term Loan C3, 4.00% 20207,8,9
    17,232
    17,146Univision Communications Inc., Term Loan D, 4.00% 20207,8,9
    3,980
    3,960Viacom Inc. 5.85% 2043
    1,750
    1,975Videotron Ltd. 6.375% 2015
    4,905
    4,923Virgin Media Finance PLC 8.375% 20194
    14,150
    14,875Virgin Media Secured Finance PLC 5.375% 20214
    17,600
    17,864Volkswagen International Finance NV 2.875% 20164
    4,000
    4,141Volkswagen International Finance NV 2.375% 20174
    14,500
    14,920Walt Disney Co. 1.10% 2017
    7,575
    7,513Walt Disney Co. 1.85% 2019
    1,800
    1,781Warner Music Group 6.00% 20214
    9,720
    9,987Weather Company, Term Loan, 7.00% 20207,8,9
    2,500
    2,4641,797,966Telecommunication services 1.86%Altice Finco SA 6.50% 20224
    12,000
    12,360Altice Finco SA, First Lien, 7.75% 20224
    21,775
    22,319AT&T Inc. 2.40% 2016
    9,000
    9,278AT&T Inc. 4.80% 2044
    1,500
    1,527Clearwire Communications and Clearwire Finance, Inc. 14.75% 20164
    6,125
    7,871Deutsche Telekom International Finance BV 9.25% 2032
    8,420
    13,345Deutsche Telekom International Finance BV 4.875% 20424
    350
    367France Télécom 2.75% 2016
    9,000
    9,310France Télécom 4.125% 2021
    15,000
    15,956Frontier Communications Corp. 8.125% 2018
    26,547
    30,529




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Telecommunication services (continued)
    Principal amount
(000)
    Value
(000)Frontier Communications Corp. 9.25% 2021
    $20,625
    $24,105Frontier Communications Corp. 8.75% 2022
    6,425
    7,357Frontier Communications Corp. 7.125% 2023
    20,825
    21,658Frontier Communications Corp. 7.625% 2024
    28,125
    29,461Intelsat Jackson Holding Co. 7.25% 2020
    7,750
    8,196Intelsat Jackson Holding Co. 6.625% 2022
    46,700
    47,167Level 3 Communications, Inc. 11.875% 2019
    3,000
    3,307LightSquared, Term Loan B, 12.00% 20146,8,9,11
    96,867
    126,895MetroPCS Wireless, Inc. 6.25% 2021
    52,075
    54,614MetroPCS Wireless, Inc. 6.625% 2023
    64,150
    67,518NII Capital Corp. 10.00% 2016
    52,550
    14,451NII Capital Corp. 7.875% 20194
    52,025
    43,311NII Capital Corp. 11.375% 20194
    61,175
    51,846NII Capital Corp. 8.875% 2019
    45,100
    16,349NII Capital Corp. 7.625% 2021
    202,660
    54,718Numerical Group SA, First Lien, 4.875% 20194
    43,100
    43,369Numerical Group SA, First Lien, 6.00% 20224
    44,100
    44,155Numerical Group SA, First Lien, 6.25% 20244
    4,700
    4,729Orange SA 5.50% 2044
    3,000
    3,295Qwest Capital Funding, Inc. 7.625% 2021
    3,900
    4,344SBC Communications Inc. 5.10% 2014
    19,886
    19,992SoftBank Corp. 4.50% 20204
    16,125
    16,226Sprint Corp. 7.25% 20214
    32,350
    34,574Sprint Corp. 7.875% 20234
    97,075
    104,356Sprint Corp. 7.125% 20244
    14,000
    14,332Sprint Nextel Corp. 9.125% 2017
    39,446
    45,462Sprint Nextel Corp. 8.375% 2017
    29,525
    33,769Sprint Nextel Corp. 9.00% 20184
    5,000
    5,875Sprint Nextel Corp. 7.00% 2020
    66,570
    70,731Sprint Nextel Corp. 11.50% 2021
    20,975
    27,844Telecom Italia Capital SA 6.999% 2018
    26,440
    30,009Telecom Italia Capital SA 7.175% 2019
    9,000
    10,204Telecom Italia Capital SA 7.721% 2038
    1,750
    1,969Telefónica Emisiones, SAU 3.992% 2016
    10,000
    10,439Telefónica Emisiones, SAU 3.192% 2018
    8,500
    8,851Telefónica Emisiones, SAU 5.134% 2020
    7,950
    8,825T-Mobile US, Inc. 6.542% 2020
    54,450
    57,104Trilogy International Partners, LLC 10.25% 20164
    47,050
    48,226Verizon Communications Inc. 3.00% 2016
    17,000
    17,609Verizon Communications Inc. 0.63% 20177
    13,000
    13,031Verizon Communications Inc. 1.35% 2017
    7,225
    7,220Verizon Communications Inc. 3.45% 2021
    5,025
    5,135Verizon Communications Inc. 5.15% 2023
    74,285
    82,256Verizon Communications Inc. 5.05% 2034
    4,975
    5,290Verizon Communications Inc. 6.00% 2041
    28,000
    32,982Verizon Communications Inc. 6.55% 2043
    109,071
    137,253Wind Acquisition SA 4.75% 20204
    45,000
    44,100Wind Acquisition SA 7.375% 20214
    60,825
    63,5621,750,933




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Energy 1.73%
    Principal amount
(000)
    Value
(000)Access Midstream Partners, L.P. 5.875% 2021
    $650
    $687Alpha Natural Resources, Inc. 9.75% 2018
    27,790
    24,386Alpha Natural Resources, Inc. 6.00% 2019
    12,785
    8,694Alpha Natural Resources, Inc. 7.50% 20204
    29,500
    27,287Alpha Natural Resources, Inc. 6.25% 2021
    20,885
    13,680American Energy (Marcellus), Term Loan B, 5.25% 20207,8,9
    10,175
    10,188American Energy (Marcellus), Term Loan A, 8.50% 20217,8,9
    9,050
    9,159American Energy (Permian Basin), 6.741% 20194,7
    10,000
    9,663American Energy (Permian Basin) 7.125% 20204
    22,550
    21,789American Energy (Permian Basin) 7.375% 20214
    13,175
    12,730Anadarko Petroleum Corp. 5.95% 2016
    10,500
    11,564Anadarko Petroleum Corp. 6.375% 2017
    13,500
    15,425Anadarko Petroleum Corp. 8.70% 2019
    32,880
    41,942Anadarko Petroleum Corp. 3.45% 2024
    2,235
    2,219Anadarko Petroleum Corp. 6.45% 2036
    1,095
    1,376Anadarko Petroleum Corp. 6.20% 2040
    500
    617Arch Coal, Inc. 8.00% 20194
    2,550
    2,467Arch Coal, Inc. 7.00% 2019
    33,525
    23,132Arch Coal, Inc. 9.875% 2019
    3,500
    2,695Arch Coal, Inc. 7.25% 2021
    18,675
    12,232BG Energy Capital PLC 2.50% 20154
    7,000
    7,148BG Energy Capital PLC 2.875% 20164
    7,395
    7,674Boardwalk Pipeline Partners 3.375% 2023
    3,000
    2,794Bonanza Creek Energy, Inc. 6.75% 2021
    6,200
    6,479Canadian Natural Resources Ltd. 5.70% 2017
    7,350
    8,192Canadian Natural Resources Ltd. 3.80% 2024
    1,440
    1,473Canadian Natural Resources Ltd. 6.50% 2037
    1,000
    1,258Cenovus Energy Inc. 3.00% 2022
    5,970
    5,841Cenovus Energy Inc. 3.80% 2023
    17,050
    17,569Cenovus Energy Inc. 6.75% 2039
    2,500
    3,214CNOOC Finance (2013) Ltd. 3.00% 2023
    5,150
    4,806CONSOL Energy Inc. 8.25% 2020
    46,251
    49,489CONSOL Energy Inc. 5.875% 20224
    19,650
    19,957Denbury Resources Inc. 4.625% 2023
    22,250
    20,915Devon Energy Corp. 2.25% 2018
    5,850
    5,884Devon Energy Corp. 4.75% 2042
    7,625
    7,839Diamond Offshore Drilling, Inc. 4.875% 2043
    19,030
    19,034Ecopetrol SA 5.875% 2045
    5,035
    5,287El Paso Pipeline Partners Operating Co., LLC 5.00% 2021
    5,000
    5,449El Paso Pipeline Partners Operating Co., LLC 4.70% 2042
    41,015
    38,180Enbridge Energy Partners, LP, Series B, 6.50% 2018
    5,225
    6,033Enbridge Energy Partners, LP 9.875% 2019
    10,500
    13,737Enbridge Energy Partners, LP, Series B, 7.50% 2038
    6,000
    8,132Enbridge Energy Partners, LP 5.50% 2040
    16,200
    17,652Enbridge Inc. 5.60% 2017
    20,067
    22,237Enbridge Inc. 4.00% 2023
    27,650
    28,706EnLink Midstream Partners, LP 2.70% 2019
    1,660
    1,674EnLink Midstream Partners, LP 4.40% 2024
    1,290
    1,350Enterprise Products Operating LLC 5.20% 2020
    5,500
    6,248Enterprise Products Operating LLC 3.35% 2023
    5,000
    4,975Enterprise Products Operating LLC 3.90% 2024
    20,600
    21,128Enterprise Products Operating LLC 4.85% 2044
    2,200
    2,277Exxon Mobil Corp. 0.921% 2017
    8,500
    8,494Exxon Mobil Corp. 1.819% 2019
    11,950
    11,977




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Energy (continued)
    Principal amount
(000)
    Value
(000)Exxon Mobil Corp. 3.176% 2024
    $6,300
    $6,427Halliburton Co. 2.00% 2018
    14,000
    14,160Kinder Morgan Energy Partners, LP 3.50% 2016
    9,750
    10,121Kinder Morgan Energy Partners, LP 2.65% 2019
    1,890
    1,903Kinder Morgan Energy Partners, LP 9.00% 2019
    1,660
    2,110Kinder Morgan Energy Partners, LP 5.00% 20214
    11,150
    11,359Kinder Morgan Energy Partners, LP 3.50% 2021
    2,230
    2,240Kinder Morgan Energy Partners, LP 4.15% 2022
    12,145
    12,484Kinder Morgan Energy Partners, LP 3.45% 2023
    7,500
    7,210Kinder Morgan Energy Partners, LP 3.50% 2023
    4,850
    4,634Kinder Morgan Energy Partners, LP 4.15% 2024
    1,950
    1,952Kinder Morgan Energy Partners, LP 6.95% 2038
    750
    911Kinder Morgan Energy Partners, LP 5.00% 2043
    20,000
    19,297Kinder Morgan Energy Partners, LP 5.50% 2044
    7,206
    7,458Laredo Petroleum, Inc. 9.50% 2019
    34,200
    36,679NGL Energy Partners LP 5.125% 20194
    7,975
    7,965NGPL PipeCo LLC 7.119% 20174
    40,800
    41,310NGPL PipeCo LLC 9.625% 20194
    47,630
    51,798Oasis Petroleum Inc. 6.875% 20224
    8,000
    8,700Odebrecht Drilling Norbe VIII/IX Ltd 6.35% 20214,8
    1,628
    1,729Odebrecht Offshore Drilling Finance Ltd. 6.75% 20224,8
    4,691
    4,937PDC Energy Inc. 7.75% 2022
    28,200
    31,443Peabody Energy Corp. 6.00% 2018
    71,845
    72,025Peabody Energy Corp. 6.25% 2021
    34,150
    32,528Pemex Project Funding Master Trust 4.875% 2015
    2,400
    2,458Petrobras Global Finance Co. 4.375% 2023
    3,320
    3,164Petrobras Global Finance Co. 6.25% 2024
    675
    712Petrobras Global Finance Co. 5.625% 2043
    1,310
    1,193Petrobras International Finance Co. 5.75% 2020
    6,535
    6,973Petrobras International Finance Co. 5.375% 2021
    28,655
    29,660Petrobras International Finance Co. 6.75% 2041
    290
    298Petróleos Mexicanos 3.50% 2018
    14,280
    14,887QGOG Atlantic/Alaskan Rigs Ltd. 5.25% 20194,8
    18,052
    19,068Ras Laffan Liquefied Natural Gas II 5.298% 20204,8
    20,738
    22,630Ras Laffan Liquefied Natural Gas III 5.838% 20274,8
    10,325
    11,512Ras Laffan Liquefied Natural Gas III 5.50% 20144
    2,400
    2,418Ras Laffan Liquefied Natural Gas III 6.75% 2019
    4,000
    4,835Ras Laffan Liquefied Natural Gas III 6.75% 20194
    1,000
    1,209Regency Energy Partners LP and Regency Energy Finance Corp. 6.50% 2021
    14,550
    15,605Regency Energy Partners LP and Regency Energy Finance Corp. 5.875% 2022
    3,950
    4,147Regency Energy Partners LP and Regency Energy Finance Corp. 5.00% 2022
    35
    35Regency Energy Partners LP and Regency Energy Finance Corp. 5.50% 2023
    10,875
    11,038Rice Energy Inc. 6.25% 20224
    11,475
    11,418Sabine Pass Liquefaction, LLC 5.625% 2021
    24,650
    25,636Sabine Pass Liquefaction, LLC 5.625% 2023
    5,000
    5,100Sabine Pass Liquefaction, LLC 5.75% 20244
    20,075
    20,401Samson Investment Co. 10.75% 20204
    55,055
    56,018Samson Investment Co., Term Loan B, 5.00% 20187,8,9
    1,450
    1,448Schlumberger Investment SA 3.65% 2023
    9,585
    9,963Shell International Finance BV 2.00% 2018
    4,990
    5,042Spectra Energy Partners, LP 2.95% 2016
    3,750
    3,883Spectra Energy Partners, LP 4.60% 2021
    15,000
    16,288Spectra Energy Partners, LP 4.75% 2024
    3,250
    3,494Statoil ASA 3.125% 2017
    10,000
    10,528




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Energy (continued)
    Principal amount
(000)
    Value
(000)Statoil ASA 4.25% 2041
    $3,000
    $3,035StatoilHydro ASA 1.80% 2016
    10,000
    10,209StatoilHydro ASA 2.65% 2024
    4,000
    3,845Teekay Corp. 8.50% 2020
    21,405
    24,562Total Capital International 2.125% 2018
    6,500
    6,585Total Capital International 2.10% 2019
    15,400
    15,362Total Capital International 3.70% 2024
    5,000
    5,154Total Capital SA 3.00% 2015
    10,000
    10,243TransCanada PipeLines Ltd. 7.625% 2039
    10,750
    15,558TransCanada PipeLines Ltd., junior subordinated 6.35% 20677
    61,150
    63,871Transocean Inc. 5.05% 2016
    18,395
    19,921Transocean Inc. 2.50% 2017
    6,500
    6,601Transocean Inc. 6.375% 2021
    23,090
    26,353Transocean Inc. 3.80% 2022
    2,635
    2,559Transportadora de Gas Peru SA 4.25% 20284,8
    2,125
    1,997Western Gas Partners LP 2.60% 2018
    1,150
    1,173Williams Partners LP 5.25% 2020
    1,960
    2,194Williams Partners LP 4.00% 2021
    2,900
    3,034Williams Partners LP 4.50% 2023
    6,000
    6,334Williams Partners LP 4.30% 2024
    4,480
    4,648Williams Partners LP 3.90% 2025
    10,500
    10,497Williams Partners LP 5.40% 2044
    760
    811Woodside Finance Ltd. 4.60% 20214
    18,935
    20,7301,622,751Health care 1.52%AbbVie Inc. 4.40% 2042
    17,270
    16,918Aetna Inc. 1.50% 2017
    1,335
    1,334Aetna Inc. 2.20% 2019
    1,195
    1,194Aetna Inc. 4.75% 2044
    1,250
    1,316Amgen Inc. 1.25% 2017
    5,000
    4,986Amgen Inc. 2.20% 2019
    13,250
    13,180Amgen Inc. 3.625% 2024
    750
    753Amgen Inc. 5.375% 2043
    25,000
    27,757Baxter International Inc. 1.85% 2018
    3,180
    3,185Baxter International Inc. 3.20% 2023
    4,446
    4,387Boston Scientific Corp. 6.40% 2016
    21,735
    23,834Boston Scientific Corp. 6.00% 2020
    5,375
    6,230Cardinal Health, Inc. 4.00% 2015
    3,000
    3,090Catalent Pharma Solutions Inc., Term Loan, 6.50% 20177,8,9
    15,430
    15,526Catholic Health Initiatives, Series 2012, 1.60% 2017
    1,000
    999Celgene Corp 3.625% 2024
    19,490
    19,516Celgene Corp 4.625% 2044
    4,250
    4,241Centene Corp. 5.75% 2017
    23,240
    25,041Centene Corp. 4.75% 2022
    16,925
    17,115Community Health Systems, Inc. 5.125% 2018
    2,670
    2,743Coventry Health Care, Inc. 6.30% 2014
    8,370
    8,384DENTSPLY International Inc. 2.75% 2016
    5,620
    5,803DJO Finance LLC 9.75% 2017
    11,653
    12,119DJO Finance LLC 8.75% 2018
    22,175
    23,616DJO Finance LLC 7.75% 2018
    14,025
    14,516DJO Finance LLC 9.875% 2018
    7,285
    7,722Endo Finance LLC & Endo Finco Inc. 7.00% 20194
    2,450
    2,588Endo Finance LLC & Endo Finco Inc. 7.00% 20204
    6,350
    6,723




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Health care (continued)
    Principal amount
(000)
    Value
(000)Endo Pharmaceuticals Holdings Inc. 5.75% 20224
    $4,575
    $4,564Express Scripts Inc. 2.75% 2014
    1,000
    1,007Express Scripts Inc. 3.125% 2016
    13,564
    14,100Express Scripts Inc. 7.25% 2019
    8,985
    10,926Forest Laboratories, Inc. 4.375% 20194
    24,900
    26,730Forest Laboratories, Inc. 5.00% 20214
    32,740
    35,736Gilead Sciences, Inc. 3.05% 2016
    10,265
    10,727Gilead Sciences, Inc. 3.70% 2024
    9,355
    9,603Gilead Sciences, Inc. 4.80% 2044
    12,910
    13,779Grifols Worldwide Operations Ltd. 5.25% 20224
    5,000
    5,031HCA Inc. 6.375% 2015
    7,400
    7,557HCA Inc. 3.75% 2019
    53,950
    53,680HCA Inc. 6.50% 2020
    12,400
    13,500Humana Inc. 4.625% 2042
    30,000
    29,610INC Research LLC 11.50% 20194
    29,160
    32,805inVentiv Health Inc, Term Loan B4, 7.75% 20187,8,9
    19,305
    19,353inVentiv Health Inc. 9.00% 20184
    35,035
    37,050inVentiv Health Inc. 11.00% 20184
    53,835
    48,855inVentiv Health Inc. 11.00% 20184
    23,915
    21,763Johnson & Johnson 4.50% 2043
    5,250
    5,670Kinetic Concepts, Inc. 10.50% 2018
    69,942
    77,636Kinetic Concepts, Inc. 12.50% 2019
    24,950
    28,039McKesson Corp. 0.95% 2015
    1,135
    1,139McKesson Corp. 3.25% 2016
    7,525
    7,798McKesson Corp. 1.40% 2018
    745
    733McKesson Corp. 2.284% 2019
    5,875
    5,862McKesson Corp. 4.75% 2021
    3,475
    3,866McKesson Corp. 3.796% 2024
    14,505
    14,749McKesson Corp. 4.883% 2044
    625
    651Medco Health Solutions, Inc. 2.75% 2015
    6,305
    6,446Medtronic, Inc. 4.625% 2044
    1,200
    1,244Merck & Co., Inc. 1.10% 2018
    6,710
    6,613Merck & Co., Inc. 2.80% 2023
    545
    529Multiplan Inc., Term Loan B, 4.00% 20217,8,9
    63,612
    63,406Novartis Capital Corp. 2.90% 2015
    14,000
    14,269Novartis Capital Corp. 3.40% 2024
    22,105
    22,346Novartis Capital Corp. 4.40% 2044
    2,250
    2,342Ortho-Clinical Diagnostics Inc. 6.625% 20224
    9,940
    9,356Ortho-Clinical Diagnostics Inc., Term Loan B, 4.75% 20217,8,9
    29,575
    29,606Pfizer Inc. 2.10% 2019
    41,500
    41,600Pfizer Inc. 3.40% 2024
    22,000
    22,167Pfizer Inc. 4.40% 2044
    21,000
    21,570PRA Holdings, Inc. 9.50% 20234
    8,235
    9,100Roche Holdings, Inc. 7.00% 20394
    4,000
    5,625Rotech Healthcare Inc., Term Loan A, 5.50% 20183,7,8,9
    12,009
    11,949Rotech Healthcare Inc., Term Loan B, 10.00% 20193,7,8,9
    9,200
    9,154Rotech Healthcare Inc., Term Loan, 13.00% 20203,6,7,8,9
    18,566
    18,474Select Medical Holdings Corp. 6.375% 2021
    9,850
    10,145Symbion Inc. 8.00% 2016
    32,230
    33,680Tenet Healthcare Corp., First Lien, 6.25% 2018
    2,500
    2,716Tenet Healthcare Corp., First Lien, 4.75% 2020
    11,710
    11,681Tenet Healthcare Corp., First Lien, 6.00% 2020
    40,255
    42,368Tenet Healthcare Corp., First Lien, 4.50% 2021
    12,540
    12,242Thermo Fisher Scientific Inc. 1.30% 2017
    8,630
    8,629




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Health care (continued)
    Principal amount
(000)
    Value
(000)Thermo Fisher Scientific Inc. 2.40% 2019
    $8,405
    $8,444Thermo Fisher Scientific Inc. 4.15% 2024
    11,250
    11,685UnitedHealth Group Inc. 6.00% 2017
    12,430
    14,045UnitedHealth Group Inc. 2.75% 2023
    660
    637UnitedHealth Group Inc. 2.875% 2023
    1,500
    1,459VPI Escrow Corp. 6.75% 20184
    32,760
    34,316VPI Escrow Corp. 6.375% 20204
    41,555
    43,061VPI Escrow Corp. 7.50% 20214
    18,785
    20,358VPI Escrow Corp. 5.625% 20214
    4,525
    4,491VWR Funding, Inc. 7.25% 2017
    46,525
    49,316WellPoint, Inc. 2.30% 2018
    1,370
    1,3901,423,794Industrials 1.49%AAF Holdings LLC 12.75% 20194,6,7,8
    7,525
    7,684ABB Finance (USA) Inc. 1.625% 2017
    1,000
    1,009ABB Finance (USA) Inc. 2.875% 2022
    1,000
    989ADS Waste Escrow 8.25% 2020
    4,675
    5,002ADT Corp. 4.125% 2019
    19,225
    19,033AerCap Holdings NV 2.75% 20174
    19,325
    19,108Allegiant Travel Co. 5.50% 2019
    4,050
    4,116Altegrity, Inc. 9.50% 20194
    49,900
    49,962American Airlines, Inc., Series 2013-2, Class A, 4.95% 20248
    8,826
    9,565Associated Materials, LLC and AMH New Finance, Inc. 9.125% 2017
    79,655
    79,555Atlas Copco AB 5.60% 20174
    7,405
    8,194BakerCorp International, Inc. 8.25% 2019
    2,000
    2,030BE Aerospace, Inc. 5.25% 2022
    63,715
    69,370Builders Firstsource 7.625% 20214
    7,094
    7,431Burlington Northern Santa Fe LLC 3.00% 2023
    4,580
    4,495Burlington Northern Santa Fe LLC 3.75% 2024
    2,270
    2,338Burlington Northern Santa Fe LLC 4.90% 2044
    20,240
    21,554Canadian National Railway Co. 1.45% 2016
    5,010
    5,063CEVA Group PLC 7.00% 20214
    2,250
    2,306CEVA Group PLC 9.00% 20214
    1,050
    1,076CEVA Group PLC, LOC, 6.50% 20217,8,9
    4,870
    4,776CEVA Group PLC, Term Loan B, 6.50% 20217,8,9
    7,066
    6,930CEVA Group PLC, Term Loan, 6.50% 20217,8,9
    5,123
    5,023CEVA Group PLC, Term Loan, 6.50% 20217,8,9
    883
    866CNH Capital LLC 3.25% 2017
    6,500
    6,532Continental Airlines, Inc., Series 1997-1, Class A, 7.461% 20168
    229
    238Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20178
    2,194
    2,347Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20188
    48
    51Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20188
    435
    470Continental Airlines, Inc., Series 1998-1, Class A, 6.648% 20198
    3,841
    4,107Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20198
    1,762
    1,890Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20198
    194
    213Continental Airlines, Inc., Series 1999-1, Class B, 6.795% 20208
    193
    203Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20208
    10,803
    12,109Continental Airlines, Inc., Series 1999-2, Class A-1, 7.256% 20218
    419
    476Continental Airlines, Inc., Series 1999-2, Class B, 7.566% 20218
    454
    492Continental Airlines, Inc., Series 2007-1, Class B, 6.903% 20228
    10,390
    11,228Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20228
    4,626
    5,343Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20228
    176
    185Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20228
    2,669
    3,051




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Industrials (continued)
    Principal amount
(000)
    Value
(000)Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20228
    $3,548
    $3,930CSX Corp. 6.25% 2015
    3,460
    3,589CSX Corp. 3.40% 2024
    14,405
    14,407DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B-1, 5.00% 20187,8,9
    33,143
    33,339DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B-2, 5.00% 20187,8,9
    14,697
    14,785Delta Air Lines, Inc., Series 2002-1, Class G-1, MBIA insured, 6.718% 20248
    4,869
    5,746ERAC USA Finance Co. 5.25% 20204
    5,000
    5,662Esterline Technologies Corp. 7.00% 2020
    18,065
    19,284Euramax International, Inc. 9.50% 2016
    31,755
    31,279European Aeronautic Defence and Space Company 2.70% 20234
    6,000
    5,800Gardner Denver, Inc. Term Loan B, 4.25% 20207,8,9
    38,094
    37,966Gates Global LLC 6.00% 20224
    9,575
    9,383Gates Global LLC, Term Loan B, 4.25% 20217,8,9
    11,100
    11,043General Electric Capital Corp., Series A, 2.25% 2015
    12,000
    12,265General Electric Capital Corp. 2.95% 2016
    4,650
    4,836General Electric Capital Corp. 2.45% 2017
    13,000
    13,412General Electric Capital Corp., Series A, 6.00% 2019
    9,000
    10,586General Electric Capital Corp. 3.45% 2024
    9,000
    9,001General Electric Capital Corp., Series A, junior subordinated 7.125% (undated)7
    112,300
    131,594General Electric Capital Corp., Series B, junior subordinated 6.25% (undated)7
    50,000
    55,591General Electric Co. 0.85% 2015
    10,000
    10,047General Electric Co. 2.70% 2022
    7,750
    7,578General Electric Co. 4.125% 2042
    11,000
    10,939Hardwoods Acquisition Inc 7.50% 20214
    11,250
    11,475Hawker Beechcraft Acquisition Co., LLC, LOC, 0.009% 20151,7,8,9
    2,488
    2,363HD Supply, Inc. 11.50% 2020
    31,980
    37,337HDTFS Inc. 5.875% 2020
    3,000
    3,075Iron Mountain Inc. 6.00% 20233
    950
    995Iron Mountain Inc. 5.75% 20243
    2,175
    2,186Jeld-Wen Escrow Corp. 12.25% 20174
    45,670
    48,867LMI Aerospace Inc. 7.375% 20194
    15,600
    15,853Navios Maritime Acquisition Corp. and Navios Acquisition Finance (US) Inc. 8.125% 20214
    19,500
    19,841Navios Maritime Holdings Inc. 7.375% 20224
    29,140
    29,723Navios Maritime Holdings Inc. and Navios Maritime Finance II (US) Inc. 8.125% 2019
    15,510
    15,937Nielsen Finance LLC and Nielsen Finance Co. 4.50% 2020
    22,500
    22,387Nielsen Finance LLC and Nielsen Finance Co. 5.50% 20214
    18,900
    19,325Nielsen Finance LLC and Nielsen Finance Co. 5.00% 20224
    24,500
    24,255Norfolk Southern Corp. 5.75% 2016
    6,710
    7,181Norfolk Southern Corp. 5.75% 2018
    2,000
    2,270Nortek Inc. 10.00% 2018
    22,255
    23,702Nortek Inc. 8.50% 2021
    33,565
    36,586Northwest Airlines, Inc., Term Loan A, 1.99% 20187,8,9
    13,918
    13,431Ply Gem Industries, Inc. 6.50% 20224
    17,050
    16,006R.R. Donnelley & Sons Co. 7.25% 20183
    7,234
    8,229R.R. Donnelley & Sons Co. 7.875% 20213
    3,050
    3,462R.R. Donnelley & Sons Co. 7.00% 20223
    16,735
    18,325R.R. Donnelley & Sons Co. 6.50% 20233
    11,125
    11,487Safway Group Holding 7.00% 20184
    5,500
    5,789Silver II Borrower S.C.A./Silver II U.S. Holdings, LLC 7.75% 20204
    17,375
    18,287TRAC Intermodal 11.00% 2019
    15,425
    17,199TransDigm Inc. 5.50% 2020
    22,000
    21,890Union Pacific Corp. 3.646% 2024
    1,610
    1,665United Air Lines, Inc., Series 1996-A2, 7.87% 20191,8,11
    2,421
    —United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20214,8
    4,042
    4,447




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Industrials (continued)
    Principal amount
(000)
    Value
(000)United Air Lines, Inc., Series 2007-1, Class A, 6.636% 20248
    $6,434
    $7,110United Technologies Corp. 4.50% 2042
    5,965
    6,198US Investigations Services, Inc. 13.00% 20204,6
    49,578
    42,542US Investigations Services, Inc. 14.00% 20204,6
    3,585
    3,077US Investigations Services, Inc. 15.00% 20214,6
    9,970
    6,394Volvo Treasury AB 5.95% 20154
    8,835
    9,140Watco Companies 6.375% 20234
    10,670
    10,8831,397,391Information technology 0.87%Alcatel-Lucent USA Inc. 4.625% 20174
    38,200
    38,678Alcatel-Lucent USA Inc. 8.875% 20204
    20,225
    22,551Alcatel-Lucent USA Inc. 6.75% 20204
    16,600
    17,056Avago Technologies Ltd., Term Loan B, 3.75% 20217,8,9
    73,575
    73,517Ceridian LLC / Comdata Inc. 8.125% 20174
    7,200
    7,200Compucom Systems Inc., 7.00% 20214
    3,425
    3,378First Data Corp. 7.375% 20194
    18,225
    19,227First Data Holdings, Inc. 14.50% 20194,6
    15,001
    16,271First Data Corp. 6.75% 20204
    12,350
    13,091First Data Corp. 8.25% 20214
    25,825
    27,762First Data Corp. 12.625% 2021
    23,539
    28,261First Data Corp. 11.75% 2021
    33,186
    38,911First Data Corp. 8.75% 20224,6,7
    36,640
    39,388Freescale Semiconductor, Inc. 5.00% 20214
    56,240
    56,240Freescale Semiconductor, Inc. 6.00% 20224
    19,075
    19,695Freescale Semiconductor, Inc., Term Loan B4, 4.25% 20207,8,9
    7,960
    7,994Hughes Satellite Systems Corp. 6.50% 2019
    9,550
    10,589International Business Machines Corp. 2.00% 2016
    10,000
    10,214International Business Machines Corp. 1.95% 2016
    10,000
    10,243Jabil Circuit, Inc. 8.25% 2018
    20,925
    24,744Jabil Circuit, Inc. 5.625% 2020
    10,650
    11,555Lawson Software, Inc. 9.375% 2019
    25,800
    28,283NXP BV and NXP Funding LLC 3.75% 20184
    34,825
    34,651Oracle Corp. 2.25% 2019
    19,000
    18,939Oracle Corp. 2.80% 2021
    8,500
    8,453Oracle Corp. 3.40% 2024
    7,500
    7,479Oracle Corp. 4.50% 2044
    2,500
    2,529Samsung Electronics America, Inc. 1.75% 20174
    3,500
    3,515Serena Software, Inc. Term Loan B 7.50% 20207,8,9
    23,575
    23,801SRA International, Inc. 11.00% 2019
    59,195
    63,043SRA International, Inc., Term Loan B, 6.50% 20187,8,9
    67,768
    68,106SunGard Data Systems Inc. 7.375% 2018
    15,722
    16,439SunGard Data Systems Inc. 7.625% 2020
    29,540
    31,386Xerox Corp. 6.40% 2016
    768
    835Xerox Corp. 6.75% 2017
    360
    406Xerox Corp. 2.95% 2017
    7,940
    8,262812,692




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Materials 0.85%
    Principal amount
(000)
    Value
(000)Arbermarle Corp. 5.10% 2015
    $2,570
    $2,625ArcelorMittal 4.25% 20157
    4,000
    4,085ArcelorMittal 5.00% 20177
    15,680
    16,190ArcelorMittal 6.00% 20217
    15,470
    16,108ArcelorMittal 6.75% 20227
    25,110
    27,307ArcelorMittal 7.25% 20417
    50,000
    51,250Ball Corp. 5.75% 2021
    4,615
    4,834Ball Corp. 5.00% 2022
    3,625
    3,634Cliffs Natural Resources Inc. 4.875% 20213
    4,945
    4,848Dow Chemical Co. 5.25% 2041
    4,000
    4,347Ecolab Inc. 3.00% 2016
    7,455
    7,785Ecolab Inc. 4.35% 2021
    1,000
    1,088Ecolab Inc. 5.50% 2041
    750
    878First Quantum Minerals Ltd. 6.75% 20204
    54,163
    55,517First Quantum Minerals Ltd. 7.00% 20214
    54,762
    56,679First Quantum Minerals Ltd. 7.25% 20224
    2,850
    2,914FMG Resources 6.00% 20174
    59,280
    60,503FMG Resources 6.875% 20184
    37,385
    38,880FMG Resources 8.25% 20194
    12,700
    13,700Georgia Gulf Corp. 4.625% 2021
    14,625
    14,351Georgia Gulf Corp. 4.875% 2023
    2,400
    2,349Glencore Xstrata LLC 2.50% 20194
    10,000
    9,926Glencore Xstrata LLC 4.625% 20244
    7,000
    7,176Graphic Packaging International, Inc. 4.75% 2021
    3,550
    3,568Holcim Ltd. 6.00% 20194
    1,607
    1,856Holcim Ltd. 5.15% 20234
    12,595
    13,804International Paper Co. 7.30% 2039
    5,615
    7,497JMC Steel Group Inc. 8.25% 20184
    46,658
    46,366LSB Industries, Inc. 7.75% 2019
    16,800
    18,102Monsanto Co. 2.75% 2021
    5,195
    5,156Monsanto Co. 4.40% 2044
    13,215
    13,218Mosaic Co. 4.25% 2023
    800
    840Newcrest Finance Pty Ltd. 4.45% 20214
    7,000
    6,906OMNOVA Solutions Inc. 7.875% 2018
    8,500
    8,883PQ Corp. 8.75% 20184
    7,700
    8,258Rayonier Advanced Materials Inc. 5.50% 20244
    17,132
    16,918Reynolds Group Inc. 7.125% 2019
    8,000
    8,320Reynolds Group Inc. 7.875% 2019
    1,555
    1,662Reynolds Group Inc. 5.75% 2020
    67,800
    69,326Rio Tinto Finance (USA) Ltd. 1.375% 2016
    3,000
    3,031Rio Tinto Finance (USA) Ltd. 2.25% 2016
    9,000
    9,243Rio Tinto Finance (USA) Ltd. 1.625% 2017
    8,500
    8,574Rio Tinto Finance (USA) Ltd. 2.25% 2018
    8,995
    9,097Rio Tinto Finance (USA) Ltd. 9.00% 2019
    3,000
    3,903Ryerson Inc. 9.00% 2017
    18,800
    19,952Ryerson Inc. 11.25% 2018
    13,975
    15,512Smurfit Capital Funding PLC 7.50% 2025
    7,125
    8,158Solenis, Term Loan, 7.75% 20227,8,9
    17,945
    17,930Taminco Global Chemical Corp. 9.75% 20204
    4,940
    5,446U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV) 7.375% 20214
    7,310
    7,803U.S. Coatings Acquisition Inc. (Flash Dutch 2 BV), Term Loan B, 4.00% 20207,8,9
    12,103
    12,057Walter Energy, Inc. 9.50% 20194
    27,600
    27,497Walter Energy, Inc. 9.875% 2020
    4,150
    2,179




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Materials (continued)
    Principal amount
(000)
    Value
(000)Xstrata Canada Financial Corp. 3.60% 20174
    $5,000
    $5,237Xstrata Canada Financial Corp. 4.95% 20214
    6,000
    6,479799,752Utilities 0.68%Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 2017
    10,000
    11,397Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 20174
    2,000
    2,279AES Corp. 7.75% 2015
    10,000
    10,700AES Corp. 8.00% 2017
    487
    560AES Corp. 8.00% 2020
    7,000
    8,295AES Corp. 7.375% 2021
    10,125
    11,593AES Panamá, SA 6.35% 20164
    7,627
    8,076American Electric Power Co. 2.95% 2022
    12,065
    11,786Calpine Corp. 5.375% 2023
    18,000
    17,618Calpine Corp. 7.875% 20234
    3,000
    3,278CenterPoint Energy Resources Corp. 4.50% 2021
    13,130
    14,431CEZ, a s 4.25% 20224
    2,820
    2,969CMS Energy Corp. 5.05% 2018
    325
    359CMS Energy Corp. 8.75% 2019
    11,000
    14,142CMS Energy Corp. 6.25% 2020
    20,282
    23,993CMS Energy Corp. 3.875% 2024
    15,085
    15,618CMS Energy Corp. 4.70% 2043
    586
    602CMS Energy Corp. 4.875% 2044
    8,310
    8,763Colbun SA 6.00% 20204
    2,000
    2,226Colbun SA 4.50% 20244
    1,500
    1,496Comision Federal de Electricidad 4.875% 20244
    2,000
    2,132Consumers Energy Co., First Mortgage Bonds, 6.125% 2019
    2,500
    2,931Consumers Energy Co., First Mortgage Bonds, 6.70% 2019
    14,106
    17,043Duke Energy Corp. 3.95% 2023
    6,098
    6,347Duke Energy Corp. 3.75% 2024
    11,310
    11,607Duke Energy Indiana, Inc. 4.90% 2043
    17,000
    18,866E.ON International Finance BV 5.80% 20184
    17,000
    19,285EDP Finance BV 5.25% 20214
    22,500
    23,485Electricité de France SA 1.15% 20174
    3,500
    3,500Electricité de France SA 6.95% 20394
    8,000
    10,604Electricité de France SA 4.875% 20444
    1,850
    1,982Electricité de France SA 5.25% (undated)4,7
    25,505
    25,980Empresa Nacional de Electricidad SA 4.25% 2024
    900
    904Enel Finance International SA 6.00% 20394
    3,000
    3,427Enel Società per Azioni 8.75% 20734,7
    12,000
    14,160Entergy Corp. 4.70% 2017
    8,000
    8,611Eskom Holdings Ltd. 5.75% 20214
    6,820
    7,026Eskom Holdings SOC Ltd. 6.75% 20234
    5,000
    5,407FirstEnergy Corp., Series B, 4.25% 2023
    31,465
    31,266Iberdrola Finance Ireland 5.00% 20194
    1,060
    1,185Israel Electric Corp. Ltd. 8.10% 20964
    4,905
    5,346MidAmerican Energy Co. 5.95% 2017
    10,625
    12,023MidAmerican Energy Co. 2.40% 2019
    9,000
    9,163MidAmerican Energy Holdings Co. 5.75% 2018
    10,000
    11,366MidAmerican Energy Holdings Co. 3.75% 2023
    11,640
    11,944Midwest Generation, LLC, Series B, 8.56% 20168,11
    2,419
    2,510National Grid PLC 6.30% 2016
    4,000
    4,414National Rural Utilities Cooperative Finance Corp. 1.00% 2015
    8,250
    8,280Nevada Power Co., General and Refunding Mortgage Notes, Series V, 7.125% 2019
    5,000
    6,070




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Utilities (continued)
    Principal amount
(000)
    Value
(000)Northern States Power Co., First Mortgage Bonds, 2.60% 2023
    $8,703
    $8,378Northern States Power Co. 4.125% 2044
    11,000
    11,031NRG Energy, Inc. 8.25% 2020
    3,850
    4,158NRG Energy, Inc. 6.625% 2023
    7,700
    7,969NV Energy, Inc 6.25% 2020
    20,420
    24,221Pacific Gas and Electric Co. 3.85% 2023
    14,365
    15,029Pacific Gas and Electric Co. 3.75% 2024
    6,875
    7,068Pacific Gas and Electric Co. 6.05% 2034
    3,288
    4,060PacifiCorp., First Mortgage Bonds, 5.65% 2018
    5,500
    6,290PacifiCorp., First Mortgage Bonds, 5.50% 2019
    4,940
    5,637PacifiCorp., First Mortgage Bonds, 7.70% 2031
    153
    222PacifiCorp., First Mortgage Bonds, 5.25% 2035
    1,047
    1,208PG&E Corp. 2.40% 2019
    1,470
    1,477Progress Energy, Inc. 7.75% 2031
    3,182
    4,474Public Service Co. of Colorado 3.20% 2020
    237
    243Puget Sound Energy, Inc., First Lien, 6.50% 2020
    6,234
    7,426Puget Sound Energy, Inc., First Lien, 6.00% 2021
    3,945
    4,622Puget Sound Energy, Inc., First Lien, 5.625% 2022
    7,321
    8,436Puget Sound Energy Inc. 6.724% 2036
    1,314
    1,793Tampa Electric Co. 2.60% 2022
    2,675
    2,584Tampa Electric Co. 4.35% 2044
    11,515
    11,770Teco Finance, Inc. 4.00% 2016
    3,031
    3,181Teco Finance, Inc. 5.15% 2020
    5,731
    6,427TXU, Term Loan, 3.737% 20147,8,9,11
    3,000
    2,317TXU, Term Loan, 4.646% 20177,8,9,11
    26,204
    19,981Veolia Environnement 6.00% 2018
    625
    708Veolia Environnement 6.75% 2038
    500
    607Virginia Electric and Power Co., Series B, 5.95% 2017
    4,500
    5,137Virginia Electric and Power Co. 3.45% 2024
    3,220
    3,273Xcel Energy Inc. 4.70% 2020
    5,796
    6,436643,208Consumer staples 0.65%Altria Group, Inc. 9.70% 2018
    6,081
    7,891Altria Group, Inc. 9.25% 2019
    18,542
    24,336Altria Group, Inc. 4.00% 2024
    1,500
    1,531Altria Group, Inc. 9.95% 2038
    23,500
    38,747Altria Group, Inc. 4.25% 2042
    20,000
    18,291Altria Group, Inc. 4.50% 2043
    16,000
    15,211Altria Group, Inc. 5.375% 2044
    1,700
    1,827Anheuser-Busch InBev NV 4.125% 2015
    10,000
    10,167Anheuser-Busch InBev NV 3.625% 2015
    21,000
    21,487Anheuser-Busch InBev NV 1.375% 2017
    7,500
    7,530Anheuser-Busch InBev NV 7.75% 2019
    25,000
    30,770Brasil Foods SA 5.875% 20224
    3,250
    3,502Brasil Foods SA 5.875% 2022
    1,500
    1,616British American Tobacco International Finance PLC 9.50% 20184
    8,705
    11,254C&S Group Enterprises LLC 5.375% 20224
    24,700
    24,391Coca-Cola Co. 1.50% 2015
    10,590
    10,722Coca-Cola Co. 1.80% 2016
    10,000
    10,224Coca-Cola Co. 3.20% 2023
    8,980
    9,139ConAgra Foods, Inc. 1.90% 2018
    3,750
    3,752ConAgra Foods, Inc. 3.20% 2023
    6,900
    6,728Constellation Brands, Inc. 8.375% 2014
    2,175
    2,210




---

Bonds, notes & other debt instrumentsCorporate bonds & notes (continued)
Consumer staples (continued)
    Principal amount
(000)
    Value
(000)Constellation Brands, Inc. 7.25% 2017
    $16,425
    $18,509Constellation Brands, Inc. 3.75% 2021
    1,750
    1,711Constellation Brands, Inc. 6.00% 2022
    2,825
    3,118Constellation Brands, Inc. 4.25% 2023
    8,250
    8,106CVS Caremark Corp. 2.25% 2018
    2,750
    2,775CVS Caremark Corp. 4.00% 2023
    3,000
    3,138Del Monte Corp. 7.625% 2019
    4,240
    4,378Imperial Tobacco Finance PLC 2.05% 20184
    5,000
    4,987Imperial Tobacco Finance PLC 3.50% 20234
    12,500
    12,240Ingles Markets, Inc. 5.75% 2023
    14,450
    14,522Kimberly-Clark Corp. 7.50% 2018
    9,000
    11,017Kraft Foods Inc. 2.25% 2017
    3,500
    3,583Kraft Foods Inc. 5.375% 2020
    4,712
    5,329Kraft Foods Inc. 5.00% 2042
    33,700
    36,032Kroger Co. 3.85% 2023
    825
    845Kroger Co. 4.00% 2024
    2,110
    2,178Kroger Co. 5.00% 2042
    2,750
    2,903Mondelez International, Inc. 4.00% 2024
    10,500
    10,922Pernod Ricard SA 2.95% 20174
    20,000
    20,706Pernod Ricard SA 4.45% 20224
    8,500
    9,020Philip Morris International Inc. 3.60% 2023
    10,565
    10,775Philip Morris International Inc. 4.875% 2043
    5,500
    5,863Procter & Gamble Co. 3.50% 2015
    17,250
    17,541Reynolds American Inc. 3.25% 2022
    8,650
    8,335Reynolds American Inc. 6.15% 2043
    1,000
    1,144Rite Aid Corp. 10.25% 2019
    10,090
    10,771Rite Aid Corp. 8.00% 2020
    8,000
    8,710SABMiller Holdings Inc. 2.20% 20184
    1,100
    1,107SABMiller Holdings Inc. 4.95% 20424
    7,000
    7,565Smithfield Foods, Inc. 7.75% 2017
    2,000
    2,270Smithfield Foods, Inc. 5.25% 20184
    1,500
    1,541Smithfield Foods, Inc. 5.875% 20214
    3,250
    3,421Smithfield Foods, Inc. 6.625% 2022
    4,900
    5,329Stater Bros. Holdings Inc., Term Loan B, 4.75% 20217,8,9
    7,500
    7,547Tyson Foods, Inc. 6.60% 20167
    11,500
    12,530Wal-Mart Stores, Inc. 2.875% 2015
    10,000
    10,174Wal-Mart Stores, Inc. 2.80% 2016
    10,000
    10,384Wal-Mart Stores, Inc. 2.55% 2023
    3,250
    3,113Wal-Mart Stores, Inc. 3.30% 2024
    10,755
    10,804Wal-Mart Stores, Inc. 4.00% 2043
    2,750
    2,646Wal-Mart Stores, Inc. 4.30% 2044
    5,950
    5,981WM. Wrigley Jr. Co 2.40% 20184
    1,200
    1,216WM. Wrigley Jr. Co 3.375% 20204
    22,500
    23,153609,265Total corporate bonds & notes
    
    13,381,872




---

Bonds, notes & other debt instrumentsU.S. Treasury bonds & notes 2.58%
U.S. Treasury 2.15%
    Principal amount
(000)
    Value
(000)U.S. Treasury 0.50% 2014
    $274,265
    $274,523U.S. Treasury 0.25% 2014
    120,000
    120,074U.S. Treasury 0.25% 2015
    75,000
    75,082U.S. Treasury 1.75% 2016
    95,000
    97,152U.S. Treasury 1.50% 201612
    80,500
    81,943U.S. Treasury 0.625% 2018
    80,000
    77,734U.S. Treasury 1.50% 2019
    257,655
    254,756U.S. Treasury 1.625% 2019
    143,150
    142,284U.S. Treasury 2.50% 2023
    72,450
    72,519U.S. Treasury 6.25% 2023
    53,000
    69,453U.S. Treasury 2.75% 2024
    20,000
    20,365U.S. Treasury 2.50% 2024
    102,225
    101,658U.S. Treasury 5.50% 2028
    52,000
    67,795U.S. Treasury 5.375% 2031
    8,475
    11,108U.S. Treasury 4.50% 2036
    87,935
    106,896U.S. Treasury 4.625% 2040
    15,150
    18,862U.S. Treasury 3.75% 2041
    65,350
    71,129U.S. Treasury 3.00% 2042
    56,175
    53,107U.S. Treasury 2.75% 2042
    6,950
    6,233U.S. Treasury 2.75% 2042
    7,325
    6,558U.S. Treasury 3.125% 2043
    46,825
    45,197U.S. Treasury 3.625% 2043
    25,300
    26,794U.S. Treasury 3.625% 2044
    53,625
    56,759U.S. Treasury 3.375% 2044
    153,500
    155,0532,013,034U.S. Treasury inflation-protected securities 0.43%U.S. Treasury Inflation-Protected Security 1.875% 201513
    46,472
    48,006U.S. Treasury Inflation-Protected Security 0.125% 201713
    45,846
    47,063U.S. Treasury Inflation-Protected Security 0.125% 201913
    35,531
    36,293U.S. Treasury Inflation-Protected Security 0.375% 202313
    997
    1,012U.S. Treasury Inflation-Protected Security 0.625% 202413
    136,354
    140,699U.S. Treasury Inflation-Protected Security 0.75% 204213
    50,267
    47,691U.S. Treasury Inflation-Protected Security 0.625% 204313
    7,242
    6,633U.S. Treasury Inflation-Protected Security 1.375% 204413
    72,722
    80,582407,979Total U.S. Treasury bonds & notes
    
    2,421,013Mortgage-backed obligations 1.84%Aventura Mall Trust, Series A, 3.743% 20324,7,8
    12,250
    12,951Banc of America Commercial Mortgage Inc., Series 2005-5, Class A-4, 5.115% 20457,8
    2,879
    2,978Banc of America Commercial Mortgage Inc., Series 2007-3, Class A-4, 5.565% 20497,8
    5,000
    5,473Bank of Montreal 2.85% 20154,8
    10,000
    10,212Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A-4, 5.226% 20447,8
    5,250
    5,438Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A-5, 5.617% 20488
    12,945
    13,821Commonwealth Bank of Australia 0.75% 20174,8
    7,000
    7,012Countrywide Alternative Loan Trust, Series 2005-54CB, Class 2-A-5, 5.50% 20358
    7,768
    7,018Countrywide Alternative Loan Trust, Series 2007-HY4, Class 3-A-1, 2.762% 20477,8
    4,706
    3,895CS First Boston Mortgage Securities Corp., Series 2014-ICE, Class A, 1.05% 20274,7,8
    2,720
    2,727CS First Boston Mortgage Securities Corp., Series 2004-5, Class IV-A-1, 6.00% 20348
    1,598
    1,647CS First Boston Mortgage Securities Corp., Series 2006-C5, Class A-M, 5.343% 20398
    8,000
    8,640CS First Boston Mortgage Securities Corp., Series 2007-C5, Class A4, 5.695% 20407,8
    13,000
    14,283CS First Boston Mortgage Securities Corp., Series 2007-C2, Class A-M, 5.605% 20497,8
    10,000
    10,954




---

Bonds, notes & other debt instrumentsMortgage-backed obligations (continued)
    Principal amount
(000)
    Value
(000)DBUBS Mortgage Trust, Series 2011-LC2A, Class A-2, 3.386% 20444,8
    $4,380
    $4,550DBUBS Mortgage Trust, Series 2011-LC1A, Class A1, 3.742% 20464,8
    7,052
    7,326EQTY 2014-INNS Mortgage Trust Commercial Mortgage Pass-Through Certificates,
Series 2014-A, 1.004% 20314,7,8
    6,685
    6,701EQTY 2014-INNS Mortgage Trust Commercial Mortgage Pass-Through Certificates,
Series 2014-B, 1.354% 20314,7,8
    6,025
    6,040Fannie Mae 5.50% 20188
    47
    50Fannie Mae 6.00% 20218
    213
    233Fannie Mae 5.50% 20248
    269
    297Fannie Mae 4.50% 20248
    2,553
    2,724Fannie Mae 4.50% 20258
    1,613
    1,721Fannie Mae, Series 2001-4, Class GA, 9.459% 20257,8
    136
    155Fannie Mae 4.50% 20258
    2,551
    2,721Fannie Mae 4.50% 20258
    1,656
    1,766Fannie Mae 4.50% 20258
    1,489
    1,588Fannie Mae, Series 2001-4, Class NA, 10.30% 20257,8
    3
    4Fannie Mae 6.00% 20268
    4,236
    4,747Fannie Mae 7.00% 20268
    628
    712Fannie Mae 2.50% 20278
    647
    652Fannie Mae 2.50% 20278
    1,340
    1,353Fannie Mae 2.50% 20278
    1,076
    1,086Fannie Mae 2.50% 20278
    543
    547Fannie Mae 2.50% 20278
    547
    552Fannie Mae 2.50% 20278
    1,778
    1,795Fannie Mae 2.50% 20278
    1,177
    1,189Fannie Mae 2.50% 20288
    42,825
    43,142Fannie Mae 2.50% 20288
    14,448
    14,586Fannie Mae 7.00% 20288
    1,628
    1,846Fannie Mae 7.00% 20288
    277
    314Fannie Mae 2.50% 20288
    115
    117Fannie Mae 6.00% 20288
    4,535
    5,092Fannie Mae 2.50% 20288
    1,805
    1,822Fannie Mae 2.50% 20288
    1,326
    1,338Fannie Mae 2.50% 20288
    591
    597Fannie Mae 2.50% 20288
    1,503
    1,517Fannie Mae 2.50% 20288
    601
    606Fannie Mae 2.50% 20288
    1,973
    1,992Fannie Mae 2.50% 20288
    1,916
    1,933Fannie Mae 2.50% 20288
    960
    969Fannie Mae 2.50% 20288
    479
    484Fannie Mae 2.50% 20288
    1,860
    1,873Fannie Mae 2.50% 20288
    1,218
    1,229Fannie Mae 2.50% 20288
    656
    662Fannie Mae 2.50% 20288
    639
    644Fannie Mae 2.50% 20288
    526
    531Fannie Mae 2.50% 20288
    489
    493Fannie Mae 2.50% 20288
    484
    489Fannie Mae 2.50% 20288
    346
    349Fannie Mae 2.50% 20288
    66
    66Fannie Mae 2.50% 20288
    953
    962Fannie Mae 2.50% 20288
    942
    950Fannie Mae 2.50% 20288
    521
    525Fannie Mae 2.50% 20288
    489
    493Fannie Mae 2.50% 20288
    479
    483Fannie Mae, Series 2001-20, Class E, 9.56% 20317,8
    147
    164




---

Bonds, notes & other debt instrumentsMortgage-backed obligations (continued)
    Principal amount
(000)
    Value
(000)Fannie Mae 5.50% 20338
    $671
    $747Fannie Mae 4.50% 20348
    19,406
    20,951Fannie Mae 5.50% 20358
    645
    718Fannie Mae 6.00% 20368
    1,954
    2,204Fannie Mae 6.00% 20368
    1,011
    1,141Fannie Mae, Series 2006-43, Class PX, 6.00% 20368
    1,880
    2,104Fannie Mae 6.00% 20368
    1,353
    1,527Fannie Mae 5.50% 20368
    4,492
    4,990Fannie Mae 6.50% 20378
    789
    848Fannie Mae, Series 2007-24, Class P, 6.00% 20378
    3,921
    4,341Fannie Mae 6.00% 20378
    217
    242Fannie Mae 7.50% 20378
    86
    99Fannie Mae 8.00% 20378
    106
    122Fannie Mae, Series 2007-33, Class HE, 5.50% 20378
    6,846
    7,523Fannie Mae 7.00% 20378
    527
    594Fannie Mae 6.00% 20378
    3,818
    4,289Fannie Mae 6.50% 20378
    1,084
    1,219Fannie Mae 7.00% 20378
    817
    922Fannie Mae 7.50% 20378
    329
    378Fannie Mae 7.50% 20378
    112
    129Fannie Mae 6.50% 20378
    317
    355Fannie Mae 6.00% 20378
    20,462
    22,985Fannie Mae 6.00% 20378
    3,147
    3,535Fannie Mae 6.50% 20378
    1,285
    1,439Fannie Mae 6.00% 20388
    3,866
    4,343Fannie Mae 6.00% 20388
    4,983
    5,606Fannie Mae 5.50% 20388
    1,043
    1,156Fannie Mae 6.00% 20388
    2,158
    2,426Fannie Mae 6.00% 20398
    2,629
    2,952Fannie Mae 6.50% 20398
    963
    1,082Fannie Mae 4.50% 20398
    31,863
    34,664Fannie Mae 5.00% 20408
    11,243
    12,442Fannie Mae 4.00% 20408
    9,073
    9,548Fannie Mae 4.19% 20407,8
    1,118
    1,185Fannie Mae 4.00% 20408
    9,591
    10,096Fannie Mae 4.50% 20408
    93
    101Fannie Mae 4.00% 20408
    15,234
    16,063Fannie Mae 4.00% 20408
    544
    575Fannie Mae 4.50% 20408
    104
    112Fannie Mae 4.50% 20418
    335
    362Fannie Mae 5.00% 20418
    506
    562Fannie Mae 5.00% 20418
    416
    461Fannie Mae 5.00% 20418
    627
    694Fannie Mae 5.00% 20418
    670
    741Fannie Mae 4.00% 20418
    9,441
    9,958Fannie Mae 4.00% 20418
    297
    314Fannie Mae, Series 2001-50, Class BA, 7.00% 20418
    506
    566Fannie Mae 4.00% 20418
    443
    468Fannie Mae, Series 2002-W3, Class A-5, 7.50% 20418
    278
    324Fannie Mae 4.00% 20418
    12,332
    13,008Fannie Mae 4.00% 20418
    910
    961Fannie Mae 4.00% 20418
    526
    556Fannie Mae, Series 2001-T10, Class A-1, 7.00% 20418
    419
    485Fannie Mae 4.00% 20428
    1,503
    1,587Fannie Mae, Series 2002-W1, Class 2A, 6.566% 20427,8
    775
    902




---

Bonds, notes & other debt instrumentsMortgage-backed obligations (continued)
    Principal amount
(000)
    Value
(000)Fannie Mae 4.00% 20428
    $10,782
    $11,373Fannie Mae 4.00% 20428
    4,577
    4,832Fannie Mae 3.50% 20428
    35,555
    36,252Fannie Mae 3.50% 20428
    26,996
    27,525Fannie Mae 3.50% 20428
    10,124
    10,349Fannie Mae 4.00% 20428
    30,670
    32,355Fannie Mae 4.00% 20438
    11,112
    11,745Fannie Mae 4.00% 20438
    10,667
    11,275Fannie Mae 3.00% 20438
    17,836
    17,492Fannie Mae 4.00% 20438
    3,535
    3,737Fannie Mae 4.00% 20438
    942
    991Fannie Mae 4.00% 20438
    4,167
    4,405Fannie Mae 4.00% 20438
    3,905
    4,128Fannie Mae 4.00% 20438
    3,865
    4,090Fannie Mae 4.00% 20438
    3,148
    3,331Fannie Mae 4.00% 20438
    2,901
    3,063Fannie Mae 3.50% 20448,14
    49,967
    50,894Fannie Mae 4.00% 20448,14
    41,640
    43,774Fannie Mae 4.50% 20448,14
    63,035
    67,865Fannie Mae 3.50% 20448,14
    92,145
    93,589Fannie Mae 4.00% 20448,14
    24,110
    25,275Fannie Mae 4.50% 20448,14
    106,465
    114,359Fannie Mae 6.50% 20478
    375
    418Fannie Mae 6.50% 20478
    1,066
    1,186Fannie Mae 6.50% 20478
    793
    883Fannie Mae 6.50% 20478
    125
    140Fannie Mae 6.50% 20478
    418
    465Fannie Mae 6.50% 20478
    387
    431Fannie Mae 7.00% 20478
    649
    732Fannie Mae 7.00% 20478
    321
    363Fannie Mae 7.00% 20478
    294
    332Fannie Mae 7.00% 20478
    258
    291Financial Asset Securitization, Inc., Series 1997-NAM1, Class B-1, 7.75% 20278
    86
    87Freddie Mac, Series 2890, Class KT, 4.50% 20198
    24,288
    25,781Freddie Mac, Series 2289, Class NB, 9.613% 20227,8
    15
    17Freddie Mac 5.00% 20238
    1,089
    1,175Freddie Mac 5.00% 20238
    3,100
    3,347Freddie Mac 5.00% 20238
    3,031
    3,272Freddie Mac 5.00% 20238
    3,414
    3,684Freddie Mac, Series 2013-DN1, Class M-1, 3.555% 20237,8
    4,204
    4,391Freddie Mac, Series 2013-DN2, Class M-1, 1.605% 20237,8
    3,616
    3,626Freddie Mac 6.00% 20268
    645
    724Freddie Mac 6.00% 20278
    1,091
    1,224Freddie Mac, Series 3061, Class PN, 5.50% 20358
    1,161
    1,291Freddie Mac 4.50% 20358
    20,608
    22,261Freddie Mac, Series 3257, Class PA, 5.50% 20368
    7,279
    8,078Freddie Mac, Series 3286, Class JN, 5.50% 20378
    6,284
    6,912Freddie Mac, Series 3271, Class OA, 6.00% 20378
    6,635
    7,271Freddie Mac, Series 3312, Class PA, 5.50% 20378
    6,298
    6,928Freddie Mac, Series 3318, Class JT, 5.50% 20378
    3,510
    3,861Freddie Mac 5.50% 20378
    1,130
    1,248Freddie Mac 5.50% 20388
    2,732
    3,016Freddie Mac 6.50% 20388
    2,985
    3,366Freddie Mac 5.50% 20398
    1,378
    1,521Freddie Mac 4.50% 20398
    1,758
    1,892




---

Bonds, notes & other debt instrumentsMortgage-backed obligations (continued)
    Principal amount
(000)
    Value
(000)Freddie Mac 5.00% 20398
    $4,330
    $4,801Freddie Mac 5.00% 20398
    2,430
    2,699Freddie Mac 5.00% 20398
    1,783
    1,959Freddie Mac 4.50% 20408
    43,649
    46,952Freddie Mac 5.00% 20418
    257
    284Freddie Mac 4.00% 20418
    2,498
    2,624Freddie Mac 4.50% 20418
    4,331
    4,660Freddie Mac 4.50% 20418
    4,207
    4,524Freddie Mac 4.50% 20418
    3,598
    3,871Freddie Mac 4.50% 20428
    4,342
    4,669Freddie Mac 4.50% 20428
    6,857
    7,377Freddie Mac 4.00% 20438
    3,292
    3,467Freddie Mac 4.00% 20438
    7,703
    8,114Freddie Mac 4.00% 20438
    6,941
    7,316Freddie Mac 4.00% 20438
    5,637
    5,951Freddie Mac 4.00% 20438
    4,456
    4,698Freddie Mac 4.00% 20438
    3,547
    3,748GE Commercial Mortgage Corp., Series 2006-C1, Class A-4, 5.279% 20447,8
    12,629
    13,276GE Commercial Mortgage Corp., Series 2005-C4, Class A-3A, 5.312% 20457,8
    9,046
    9,075Government National Mortgage Assn. 10.00% 20218
    311
    360Government National Mortgage Assn. 10.00% 20258
    286
    324Government National Mortgage Assn. 4.50% 20418
    2,132
    2,325Government National Mortgage Assn. 4.00% 20438
    61,137
    64,869Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 5.819% 20387,8
    6,788
    7,272Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 20398
    10,000
    10,853Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A-M, 5.867% 20497,8
    7,879
    8,702GS Mortgage Securities Corp. II, Series 2011-GC3, Class A-2, 3.645% 20444,8
    1,700
    1,761GSR Mortgage Loan Trust, Series 2004-2F, Class VIIA-1, 4.50% 20198
    1,323
    1,330Hilton USA Trust, Series 2013-HLF-AFX, 2.662% 20304,8
    6,555
    6,602IndyMac INDX Mortgage Loan Trust, Series 2006-AR5, Class 2-A-1, 4.378% 20367,8
    7,556
    6,621J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A-4, 5.866% 20457,8
    14,700
    15,732J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C3A, Class A-2, 3.673% 20464,8
    17,072
    17,776J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C4, Class A-2, 3.341% 20464,8
    7,500
    7,772J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.703% 20497,8
    15,450
    16,945J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-1-A, 5.703% 20497,8
    14,066
    15,527J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-C1, Class A-4, 5.716% 20518
    5,000
    5,473J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD12, Class A-M, 6.022% 20517,8
    20,950
    23,310J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP6, Class A-4, 5.475% 20437,8
    19,446
    20,544J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP9, Class A-M, 5.372% 20478
    12,000
    12,608L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 20264,8
    6,728
    7,530LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A-4, 5.197% 20307,8
    11,422
    11,734LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-3, 5.43% 20408
    9,832
    10,726LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A-M, 5.493% 20407,8
    15,000
    16,125LB-UBS Commercial Mortgage Trust, Series 2007-C6, Class A-M, 6.114% 20407,8
    10,035
    11,101Merrill Lynch Mortgage Trust, Series 2007-C1, Class A-4, 5.839% 20507,8
    3,460
    3,841ML-CFC Commercial Mortgage Trust, Series 2007-8, Class A-3, 5.883% 20497,8
    11,290
    12,460ML-CFC Commercial Mortgage Trust, Series 2006-4, Class A-3, 5.172% 20498
    27,410
    29,425Morgan Stanley Capital I Trust, Series 2014-CPT, Class A, 3.35% 20214,7,8
    8,745
    8,959Morgan Stanley Capital I Trust, Series 2011-C3, Class A-2, 3.224% 20498
    5,624
    5,849National Australia Bank 1.25% 20184,8
    5,000
    4,930National Credit Union Administration, Series 2011-M1, Class A2, 1.40% 20158
    709
    716Structured Adjustable Rate Mortgage Loan Trust, Series 2006-4, Class 6-A, 5.025% 20367,8
    5,351
    4,465Wachovia Bank Commercial Mortgage Trust, Series 2007-C30, Class A-5, 5.342% 20438
    8,000
    8,694Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A-M, 5.591% 20477,8
    19,050
    20,814




---

Bonds, notes & other debt instrumentsMortgage-backed obligations (continued)
    Principal amount
(000)
    Value
(000)Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A-3, 5.745% 20497,8
    $8,500
    $9,275Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class A-M, 5.941% 20517,8
    8,500
    9,4511,725,307Federal agency bonds & notes 0.35%CoBank, ACB 7.875% 20184
    10,000
    11,827CoBank, ACB 0.831% 20224,7
    8,315
    7,733Fannie Mae, Series 2012-M5, Class A2, multifamily 2.715% 20228
    7,000
    6,993Fannie Mae, Series 2012-M9, Class A2, multifamily 2.482% 20228
    12,231
    12,025Fannie Mae, Series 2012-M14, Class A2, multifamily 2.301% 20227,8
    4,285
    4,135Fannie Mae, Series 2012-M17, Class A2, multifamily 2.184% 20228
    8,000
    7,658Fannie Mae, Series 2014-M1, multifamily 3.387% 20237,8
    450
    465Fannie Mae, Series 2013-M14, Class A2, multifamily 3.329% 20237,8
    9,141
    9,446Fannie Mae, Series 2014-M2, Class A2, multifamily 3.513% 20237,8
    17,665
    18,514Fannie Mae, Series 2014-M3, Class A2, multifamily 3.477% 20247,8
    16,925
    17,689Fannie Mae 6.25% 2029
    32,000
    42,959Fannie Mae 7.125% 2030
    1,500
    2,193Federal Home Loan Bank 5.50% 2036
    100
    129Freddie Mac 2.50% 2016
    22,500
    23,283Freddie Mac 0.75% 2018
    66,300
    65,077Freddie Mac, Series K710, Class A2, multifamily 1.883% 20198
    6,906
    6,866Freddie Mac, Series K711, Class A2, multifamily 1.73% 20198
    11,000
    10,849Freddie Mac, Series K714, Class A2, multifamily 3.034% 20207,8
    4,095
    4,247Freddie Mac, Series K019, Class A2, multifamily 2.272% 20228
    8,000
    7,823Freddie Mac, Series K021, Class A2, multifamily 2.396% 20228
    8,280
    8,115Freddie Mac, Series K023, Class A2, multifamily 2.307% 20228
    8,995
    8,718Freddie Mac, Series K025, Class A2, multifamily 2.682% 20228
    7,000
    6,955Freddie Mac, Series K028, Class A2, multifamily 3.111% 20238
    9,800
    10,007Freddie Mac, Series K036, Class A1, multifamily 2.777% 20238
    12,796
    13,112Freddie Mac, Series K036, Class A2, multifamily 3.527% 20237,8
    9,465
    9,912Freddie Mac, Series K038, Class A2, multifamily 3.389% 20248
    170
    176Private Export Funding Corp. 3.55% 2024
    545
    572Tennessee Valley Authority, Series A, 3.875% 2021
    850
    929Tennessee Valley Authority 1.875% 2022
    850
    807Tennessee Valley Authority, Series B, 3.50% 2042
    500
    462Tennessee Valley Authority, Series 2008, Class A, 4.875% 2048
    700
    794United States Agency for International Development, Republic of Egypt 4.45% 2015
    10,000
    10,450330,920Asset-backed obligations 0.14%AEP Texas Central Transitioning Funding II LLC, Secured Transition Bonds, Series A, Class A-3, 5.09% 20178
    2,677
    2,731Aesop Funding LLC, Series 2014-2A, Class A, 2.50% 20214,8
    10,500
    10,512Ally Auto Receivables Trust, Series 2014-1, Class A3, 0.97% 20188
    6,990
    6,978CarMaxAuto Owner Trust, Series 2014-1, Class A-2, 0.47% 20178
    5,365
    5,367CarMaxAuto Owner Trust, Series 2014-1, Class A-3, 0.79% 20188
    6,105
    6,102Chesapeake Funding LLC, Series 2014-1-A, Class A, 0.576% 20264,7,8
    5,000
    5,002Conseco Finance Home Loan Trust, Series 1999-G, Class B-2, 10.96% 20298
    13,630
    1,955Countryplace Manufactured Housing Contract, Series 2005-1, Class A-3, AMBAC insured, 4.80% 20354,8
    1,636
    1,667Countryplace Manufactured Housing Contract, Series 2005-1, Class A-4, AMBAC insured, 5.20% 20354,7,8
    1,145
    1,195CWHEQ Revolving Home Equity Loan Trust, Series 2006-I, Class 2-A, FSA insured, 0.292% 20377,8
    2,016
    1,888CWHEQ Revolving Home Equity Loan Trust, Series 2007-B, Class A, FSA insured, 0.302% 20377,8
    3,549
    3,216Discover Card Execution Note Trust, Series 2014-A4, Class A4, 2.12% 20198
    7,175
    7,175Enterprise Fleet Financing LLC, Series 2014-1, Class A2, 0.87% 20194,8
    2,820
    2,818Ford Credit Auto Lease Trust, Series 2014-B, Class A3, 0.89% 20178
    4,750
    4,749Ford Credit Auto Owner Trust, Series 2014-B-A3, 0.90% 20188
    13,990
    13,985




---

Bonds, notes & other debt instrumentsAsset-backed obligations (continued)
    Principal amount
(000)
    Value
(000)Ford Credit Auto Owner Trust, Series 2014-1-A, 2.26% 20254,8
    $2,405
    $2,416Hertz Fleet Lease Funding LP, Series 2014-1-A, 0.553% 20284,7,8
    3,000
    3,001Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2013-1A, Class A-1, 1.12% 20174,8
    8,500
    8,517Home Equity Mortgage Trust, Series 2006-6, Class 2A-1, 0.355% 20377,8
    13,771
    3,278Honda Auto Receivables Owner Trust, Series 2014-1, Class A-3, 0.67% 20178
    5,265
    5,253Hyundai Auto Receivables Trust, Series 2014-A, Class A2, 0.46% 20178
    2,760
    2,761Hyundai Auto Receivables Trust, Series 2013-B, Class A4, 1.01% 20198
    7,000
    7,000IndyMac Home Equity Mortgage Loan Asset-backed Trust, Series 2007-H1, Class A-1,
FSA insured, 0.315% 20377,8
    2,005
    1,801Mercedes-Benz Auto Receivables Trust, Series 2014-1, Class A3, 0.87% 20188
    7,000
    6,979RAMP Trust, Series 2003-RZ4, Class A-7, 4.79% 20337,8
    641
    677Santander Drive Auto Receivables Trust, Series 2014-3, Class A3, 0.81% 20188
    6,000
    5,995Toyota Auto Receivables Owner Trust, Series 2014-B, Class A3, 0.76% 20188
    11,750
    11,727134,745Bonds & notes of governments & government agencies outside the U.S. 0.12%Colombia (Republic of) Global 5.625% 2044
    10,000
    11,208Croatian Government 6.75% 2019
    4,800
    5,370Croatian Government 6.375% 2021
    5,000
    5,500Croatian Government 5.50% 20234
    625
    650France Government Agency-Guaranteed, Société Finance 2.875% 20144
    10,000
    10,034Hungarian Government 6.25% 2020
    3,410
    3,854Israeli Government 5.125% 2019
    3,000
    3,391Israeli Government 4.00% 2022
    2,700
    2,885Israeli Government 4.50% 2043
    1,795
    1,759Latvia (Republic of) 2.75% 2020
    4,250
    4,176Polish Government 6.375% 2019
    3,860
    4,574Polish Government 5.00% 2022
    3,000
    3,349Polish Government 4.00% 2024
    3,000
    3,124Portuguese Government 5.125% 20244
    14,500
    14,521Spanish Government 4.00% 20184
    25,600
    27,249Turkey (Republic of) 4.557% 20184
    1,200
    1,259Turkey (Republic of) 5.625% 2021
    5,400
    5,939United Mexican States Government Global 5.55% 2045
    7,000
    7,907116,749Municipals 0.07%State of California, Various Purpose G.O. Bonds, 6.20% 2019
    24,675
    29,127State of Florida, Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2013-A, 2.107% 2018
    6,600
    6,662State of Florida, Hurricane Catastrophe Fund Fin. Corp., Rev. Bonds, Series 2013-A, 2.995% 2020
    8,500
    8,562State of New Jersey, Econ. Dev. Auth., Energy Fac. Rev. Bonds (ACR Energy Partners, LLC Project), Series 2011-B, 12.00% 20304
    1,875
    1,382State of New Jersey, Transportation Trust Fund Auth., Transportation System Rev. Ref. Bonds,
Series 2013-B, 1.758% 2018
    8,500
    8,353State of Washington, Energy Northwest, Columbia Generating Station Electric Rev. Bonds, Series 2012-E, 2.197% 2019
    6,500
    6,52560,611Miscellaneous 0.01%Other bonds & notes in initial period of acquisition
    
    8,291Total bonds, notes & other debt instruments(cost: $17,531,247,000)
    
    18,179,508




---

Short-term securities 4.79%
    Principal amount
(000)
    Value
(000)3M Co. 0.10% due 9/22/20144
    $50,000
    $49,990Abbott Laboratories 0.10% due 10/14/20144
    25,000
    24,995Apple Inc. 0.08% due 8/6/20144
    23,000
    23,000Bank of New York Mellon Corp. 0.05% due 8/1/20144
    16,600
    16,600Chariot Funding, LLC 0.26%—0.28% due 12/9/2014—12/22/20144
    41,200
    66,157Chevron Corp. 0.08% due 8/20/2014—9/3/20144
    13,600
    62,394Coca-Cola Co. 0.12%—0.20% due 11/5/2014—1/14/20154
    50,000
    74,961Emerson Electric Co. 0.10% due 8/7/20144
    9,700
    9,700Fannie Mae 0.08%—0.15% due 8/1/2014—7/1/2015
    34,000
    409,456Federal Farm Credit Banks 0.10%—0.15% due 8/8/2014—7/2/2015
    50,000
    473,905Federal Home Loan Bank 0.05%—0.17% due 8/4/2014—7/10/2015
    50,000
    1,450,793Freddie Mac 0.05%—0.16% due 8/1/2014—6/10/2015
    55,000
    1,148,484General Electric Capital Corp. 0.12%—0.19% due 8/20/2014—1/14/2015
    35,000
    109,945IBM Corp. 0.09%—0.10% due 8/4/2014—9/10/20144
    34,800
    138,196Jupiter Securitization Co., LLC 0.25%—0.28% due 10/14/2014—3/3/20154
    25,000
    49,952Microsoft Corp. 0.09% due 8/27/20144
    35,100
    35,099National Rural Utilities Cooperative Finance Corp. 0.09% due 8/14/2014—8/18/2014
    25,000
    49,998Paccar Financial Corp. 0.11% due 9/11/2014
    25,200
    25,196Private Export Funding Corp. 0.20%—0.26% due 8/15/2014—2/13/20154
    12,300
    108,422Procter & Gamble Co. 0.09%—0.15% due 9/5/2014—1/7/20154
    35,000
    149,283Regents of the University of California 0.15% due 8/11/2014
    14,500
    14,500Total short-term securities(cost: $4,490,612,000)
    
    4,491,026Total investment securities99.94% (cost: $75,685,723,000)
    
    93,782,879Other assets less liabilities0.06%
    
    55,183Net assets100.00%
    
    $93,838,062
  1
    Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in "Miscellaneous," was
$17,800,699,000, which represented 18.97% of the net assets of the fund. This amount includes $17,040,369,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of
significant market movements following the close of local trading.2
    Security did not produce income during the last 12 months.3
    Represents an affiliated company as defined under the Investment Company Act of 1940.4
    Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of 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 $5,375,119,000, which represented 5.73% of the net assets of the fund.5
    Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on
resale. Further details on these holding(s) appear below.6
    Payment in kind; the issuer has the option of paying additional securities in lieu of cash.7
    Coupon rate may change periodically.8
    Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.9
    Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $885,970,000, which
represented .94% of the net assets of the fund.10
    Step bond; coupon rate will increase at a later date.11
    Scheduled interest and/or principal payment was not received.12
    A portion of this security was pledged as collateral. The total value of pledged collateral was $1,124,000, which represented less than .01% of the net assets of
the fund.13
    Index-linked bond whose principal amount moves with a government price index.14
    A portion or all of this security purchased on a TBA basis.
 Private placement securities
    Acquisition
date(s)
    Cost
(000)
    Value
(000)
    Percent
of net
assetsCEVA Group PLC, Series A-2, convertible preferred
    5/2/2013
    $13,171
    $15,678
    .01%NewPage Holdings Inc.
    6/23/2011-9/9/2011
    12,253
    7,191
    .01Revel AC, Inc.
    2/14/2011-10/25/2012
    56,224
    -
    .00Total restricted securities
    
    $ 81,648
    $ 22,869
    .02%




---

Key to abbreviationsADR = American Depositary ReceiptsFDR = Fiduciary Depositary ReceiptsGDR = Global Depositary ReceiptsTBA = To be announcedAuth. = AuthorityDev. = DevelopmentEcon. = EconomicFac. = FacilityFin. = FinanceG.O. = General ObligationLOC = Letter of CreditRef. = RefundingRev. = Revenue
 MFGEFPX-012-0313O-S32842
    The Income Fund of America — Page 32 of 32
















Summary investment portfolioJuly 31, 2014



|Common stocks 74.81%                                          |  | Shares |             |  | Value  (000) |  
|------------------------------------------------------------- |  | ------ | ----------- |  | ------------ | -
|Health care 10.49%                                            |  |        |             |  |              |  
|Merck & Co., Inc.                                             |  |        | 49,692,840  |  |              | $
|Bristol-Myers Squibb Co.                                      |  |        | 32,912,500  |  |              |  
|Pfizer Inc.                                                   |  |        | 56,230,000  |  |              |  
|AstraZeneca PLC1                                              |  |        | 18,841,700  |  |              |  
|AbbVie Inc.                                                   |  |        | 8,520,000   |  |              |  
|Other securities                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|Industrials 9.66%                                             |  |        |             |  |              |  
|General Electric Co.                                          |  |        | 74,980,000  |  |              |  
|Lockheed Martin Corp.                                         |  |        | 7,567,400   |  |              |  
|Waste Management, Inc.2                                       |  |        | 27,982,868  |  |              |  
|BAE Systems PLC1                                              |  |        | 81,823,984  |  |              |  
|Other securities                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|Financials 9.50%                                              |  |        |             |  |              |  
|Wells Fargo & Co.                                             |  |        | 21,692,000  |  |              |  
|JPMorgan Chase & Co.                                          |  |        | 15,130,200  |  |              |  
|Banco Santander, SA1,3                                        |  |        | 76,499,601  |  |              |  
|Banco Santander, SA, interim shares, non-registered shares1,3 |  |        | 1,561,216   |  |              |  
|CME Group Inc., Class A                                       |  |        | 10,140,400  |  |              |  
|Suncorp Group Ltd.1                                           |  |        | 51,279,898  |  |              |  
|HSBC Holdings PLC (GBP denominated)1                          |  |        | 30,420,722  |  |              |  
|HSBC Holdings PLC (HKD denominated)1                          |  |        | 28,586,382  |  |              |  
|Digital Realty Trust, Inc.2                                   |  |        | 8,346,000   |  |              |  
|Other securities                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|Information technology 8.07%                                  |  |        |             |  |              |  
|Microsoft Corp.                                               |  |        | 60,846,100  |  |              |  
|Cisco Systems, Inc.                                           |  |        | 51,980,000  |  |              |  
|Texas Instruments Inc.                                        |  |        | 19,380,000  |  |              |  
|Analog Devices, Inc.                                          |  |        | 11,650,000  |  |              |  
|Taiwan Semiconductor Manufacturing Co. Ltd.1                  |  |        | 127,503,000 |  |              |  
|Other securities                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|Consumer staples 7.74%                                        |  |        |             |  |              |  
|PepsiCo, Inc.                                                 |  |        | 14,752,588  |  |              |  
|Procter & Gamble Co.                                          |  |        | 15,173,700  |  |              |  
|Philip Morris International Inc.                              |  |        | 12,168,200  |  |              |  
|Kimberly-Clark Corp.                                          |  |        | 6,183,110   |  |              |  
|Altria Group, Inc.                                            |  |        | 15,102,000  |  |              |  
|Nestlé SA1                                                    |  |        | 6,440,000   |  |              |  
|Imperial Tobacco Group PLC1                                   |  |        | 10,583,991  |  |              |  
|Other securities                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  
|Energy 6.75%                                                  |  |        |             |  |              |  
|ConocoPhillips                                                |  |        | 13,565,162  |  |              |  
|Royal Dutch Shell PLC, Class B (ADR)                          |  |        | 10,431,000  |  |              |  
|Royal Dutch Shell PLC, Class B1                               |  |        | 4,499,147   |  |              |  
|Spectra Energy Corp                                           |  |        | 25,390,500  |  |              |  
|Chevron Corp.                                                 |  |        | 5,215,000   |  |              |  
|BP PLC1                                                       |  |        | 64,900,000  |  |              |  
|Crescent Point Energy Corp.                                   |  |        | 10,905,000  |  |              |  
|Other securities                                              |  |        |             |  |              |  
|                                                              |  |        |             |  |              |  



|The Income Fund of America | 13
|-------------------------- | --







|Common stocks(continued)                                                              |  | Shares |             |  | Value (000) |  
|------------------------------------------------------------------------------------- |  | ------ | ----------- |  | ----------- | -
|Materials 5.27%                                                                       |  |        |             |  |             |  
|E.I. du Pont de Nemours and Co.                                                       |  |        | 21,261,000  |  |             | $
|Dow Chemical Co.                                                                      |  |        | 18,772,234  |  |             |  
|Potash Corp. of Saskatchewan Inc.                                                     |  |        | 18,250,000  |  |             |  
|Nucor Corp.                                                                           |  |        | 12,890,485  |  |             |  
|MeadWestvaco Corp.2                                                                   |  |        | 11,281,000  |  |             |  
|Other securities                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Telecommunication services 5.24%                                                      |  |        |             |  |             |  
|Verizon Communications Inc.                                                           |  |        | 35,581,336  |  |             |  
|Telstra Corp. Ltd.1                                                                   |  |        | 141,451,533 |  |             |  
|Deutsche Telekom AG1                                                                  |  |        | 38,600,000  |  |             |  
|Orange1                                                                               |  |        | 36,435,000  |  |             |  
|Other securities                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Utilities 4.64%                                                                       |  |        |             |  |             |  
|National Grid PLC1                                                                    |  |        | 63,482,420  |  |             |  
|Duke Energy Corp.                                                                     |  |        | 8,912,057   |  |             |  
|EDP - Energias de Portugal, SA1                                                       |  |        | 113,440,000 |  |             |  
|PG&E Corp.                                                                            |  |        | 11,300,000  |  |             |  
|Other securities                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Consumer discretionary 4.14%                                                          |  |        |             |  |             |  
|Home Depot, Inc.                                                                      |  |        | 10,430,000  |  |             |  
|Carnival Corp., units                                                                 |  |        | 13,368,500  |  |             |  
|Other securities                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Miscellaneous 3.31%                                                                   |  |        |             |  |             |  
|Other common stocks in initial period of acquisition                                  |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Total common stocks (cost: $52,802,769,000)                                           |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Preferred securities 0.52%                                                            |  |        |             |  |             |  
|Financials 0.52%                                                                      |  |        |             |  |             |  
|Wells Fargo & Co., Class A, Series Q, 5.85% depositary shares preferred noncumulative |  |        | 1,600,000   |  |             |  
|Other securities                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Total preferred securities (cost: $463,126,000)                                       |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Rights & warrants 0.00%                                                               |  |        |             |  |             |  
|Energy 0.00%                                                                          |  |        |             |  |             |  
|Other securities                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Miscellaneous 0.00%                                                                   |  |        |             |  |             |  
|Other rights & warrants in initial period of acquisition                              |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Total rights & warrants (cost: $2,171,000)                                            |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Convertible stocks 0.33%                                                              |  |        |             |  |             |  
|Other 0.31%                                                                           |  |        |             |  |             |  
|Other securities                                                                      |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Miscellaneous 0.02%                                                                   |  |        |             |  |             |  
|Other convertible stocks in initial period of acquisition                             |  |        |             |  |             |  
|                                                                                      |  |        |             |  |             |  
|Total convertible stocks (cost: $305,530,000)                                         |  |        |             |  |             |  



|14 | The Income Fund of America
|-- | --------------------------







|Convertible bonds 0.12%                                                    |  | Principal amount(000) |         |  | Value  (000) |  
|-------------------------------------------------------------------------- |  | --------------------- | ------- |  | ------------ | -
|Other 0.10%                                                                |  |                       |         |  |              |  
|Other securities                                                           |  |                       |         |  |              | $
|                                                                           |  |                       |         |  |              |  
|Miscellaneous 0.02%                                                        |  |                       |         |  |              |  
|Other convertible bonds in initial period of acquisition                   |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Total convertible bonds (cost: $90,268,000)                                |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Bonds, notes & other debt instruments 19.37%                               |  |                       |         |  |              |  
|Corporate bonds & notes 14.26%                                             |  |                       |         |  |              |  
|Financials 2.69%                                                           |  |                       |         |  |              |  
|JPMorgan Chase & Co. 1.35%-3.25% 2017-2023                                 |  | $                     | 25,240  |  |              |  
|JPMorgan Chase & Co., junior subordinated 5.00%-7.90% (undated)4           |  |                       | 135,360 |  |              |  
|Wells Fargo & Co., Series K, junior subordinated 7.98% (undated)4          |  |                       | 86,566  |  |              |  
|Wells Fargo & Co. 2.13%-4.60% 2016-2026                                    |  |                       | 85,450  |  |              |  
|Other securities                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Telecommunication services 1.86%                                           |  |                       |         |  |              |  
|Verizon Communications Inc. 0.63%-6.55% 2016-20434                         |  |                       | 258,581 |  |              |  
|Other securities                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Energy 1.73%                                                               |  |                       |         |  |              |  
|Shell International Finance BV 2.00% 2018                                  |  |                       | 4,990   |  |              |  
|Spectra Energy Partners, LP 2.95%-4.75% 2016-2024                          |  |                       | 22,000  |  |              |  
|Other securities                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Health care 1.52%                                                          |  |                       |         |  |              |  
|Merck & Co., Inc. 1.10%-2.80% 2018-2023                                    |  |                       | 7,255   |  |              |  
|Pfizer Inc. 2.10%-4.40% 2019-2044                                          |  |                       | 84,500  |  |              |  
|Other securities                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Industrials 1.49%                                                          |  |                       |         |  |              |  
|General Electric Co. 0.85%-4.13% 2015-2042                                 |  |                       | 28,750  |  |              |  
|General Electric Capital Corp., junior subordinated 6.25%-7.13% (undated)4 |  |                       | 162,300 |  |              |  
|General Electric Capital Corp. 2.25%-6.00% 2015-2024                       |  |                       | 47,650  |  |              |  
|Other securities                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Materials 0.85%                                                            |  |                       |         |  |              |  
|Dow Chemical Co. 5.25% 2041                                                |  |                       | 4,000   |  |              |  
|Other securities                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Consumer staples 0.65%                                                     |  |                       |         |  |              |  
|Philip Morris International Inc. 3.60%-4.88% 2023-2043                     |  |                       | 16,065  |  |              |  
|Procter & Gamble Co. 3.50% 2015                                            |  |                       | 17,250  |  |              |  
|Other securities                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Other 3.47%                                                                |  |                       |         |  |              |  
|Other securities                                                           |  |                       |         |  |              |  
|                                                                           |  |                       |         |  |              |  
|Total corporate bonds & notes                                              |  |                       |         |  |              |  



|The Income Fund of America | 15
|-------------------------- | --







|Bonds, notes & other debt instruments(continued)                     |  | Principal amount(000) |           |  | Value(000) |  
|-------------------------------------------------------------------- |  | --------------------- | --------- |  | ---------- | -
|U.S. Treasury bonds & notes 2.58%                                    |  |                       |           |  |            |  
|U.S. Treasury 2.15%                                                  |  |                       |           |  |            |  
|U.S. Treasury 0.25%-6.25% 2014-20445                                 |  | $                     | 1,951,855 |  |            | $
|                                                                     |  |                       |           |  |            |  
|U.S. Treasury inflation-protected securities 0.43%                   |  |                       |           |  |            |  
|U.S. Treasury Inflation-Protected Security 0.13%-1.88% 2015-20446    |  |                       | 395,431   |  |            |  
|                                                                     |  |                       |           |  |            |  
|Total U.S. Treasury bonds & notes                                    |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|Mortgage-backed obligations 1.84%                                    |  |                       |           |  |            |  
|Fannie Mae 2.50%-10.30% 2018-20474,7,8                               |  |                       | 869,896   |  |            |  
|Freddie Mac 1.61%-9.61% 2019-20434,7                                 |  |                       | 216,111   |  |            |  
|Other securities                                                     |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|Federal agency bonds & notes 0.35%                                   |  |                       |           |  |            |  
|Fannie Mae 2.18%-7.13% 2022-20304,7                                  |  |                       | 109,197   |  |            |  
|Federal Home Loan Bank 5.50% 2036                                    |  |                       | 100       |  |            |  
|Freddie Mac 0.75%-3.53% 2016-20244,7                                 |  |                       | 175,307   |  |            |  
|Other securities                                                     |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|Other 0.33%                                                          |  |                       |           |  |            |  
|Other securities                                                     |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|Miscellaneous 0.01%                                                  |  |                       |           |  |            |  
|Other bonds & notes in initial period of acquisition                 |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|Total bonds, notes & other debt instruments (cost: $17,531,247,000)  |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|Short-term securities 4.79%                                          |  |                       |           |  |            |  
|Chariot Funding, LLC 0.26%-0.28% due 12/9/2014-12/22/20149           |  |                       | 66,200    |  |            |  
|Fannie Mae 0.08%-0.15% due 8/1/2014-7/1/2015                         |  |                       | 409,600   |  |            |  
|Federal Farm Credit Banks 0.10%-0.15% due 8/8/2014-7/2/2015          |  |                       | 474,100   |  |            |  
|Federal Home Loan Bank 0.05%-0.17% due 8/4/2014-7/10/2015            |  |                       | 1,451,034 |  |            |  
|Freddie Mac 0.05%-0.16% due 8/1/2014-6/10/2015                       |  |                       | 1,148,800 |  |            |  
|General Electric Capital Corp. 0.12%-0.19% due 8/20/2014-1/14/2015   |  |                       | 110,000   |  |            |  
|Jupiter Securitization Co., LLC 0.25%-0.28% due 10/14/2014-3/3/20159 |  |                       | 50,000    |  |            |  
|Microsoft Corp. 0.09% due 8/27/20149                                 |  |                       | 35,100    |  |            |  
|Procter & Gamble Co. 0.09%-0.15% due 9/5/2014-1/7/20159              |  |                       | 149,300   |  |            |  
|Other securities                                                     |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|Total short-term securities (cost: $4,490,612,000)                   |  |                       |           |  |            |  
|Total investment securities 99.94% (cost: $75,685,723,000)           |  |                       |           |  |            |  
|Other assets less liabilities 0.06%                                  |  |                       |           |  |            |  
|                                                                     |  |                       |           |  |            |  
|Net assets 100.00%                                                   |  |                       |           |  |            | $



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



As permitted by U.S. Securities and Exchange Commission regulations,
“Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly
disclosed.



“Other securities” includes all issues that are not
disclosed separately in the summary investment portfolio, including loan participations and assignments which may be subject to
legal or contractual restrictions on resale. The total value of all such loans was $885,970,000, which represented .94% of the
net assets of the fund. Some securities in “Other securities” (with an aggregate value of $22,869,000, an aggregate cost
of $81,648,000, and which represented .02% of the net assets of the fund) were acquired from 2/14/2011 to 5/2/2013 through private
placement transactions exempt from registration under the Securities Act of 1933, which may subject them to legal or contractual
restrictions on resale.



|16 | The Income Fund of America
|-- | --------------------------







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 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $17,800,699,000, which represented 18.97% of the net assets of the fund. This amount includes $17,040,369,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2 | Represents an affiliated company as defined under the Investment
Company Act of 1940.                                                                                                                                                                                                                                                                                                                                                                                     
|3 | Security did not produce income during the last 12 months.                                                                                                                                                                                                                                                                                                                                                                                                                
|4 | Coupon rate may change periodically.                                                                                                                                                                                                                                                                                                                                                                                                                                      
|5 | A portion of this security was pledged as collateral. The total value of pledged collateral was $1,124,000, which represented less than .01% of the net assets of the fund.                                                                                                                                                                                                                                                                                               
|6 | Index-linked bond whose principal amount moves with a government price index.                                                                                                                                                                                                                                                                                                                                                                                             
|7 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.                                                                                                                                                                                                                                                                                                                                         
|8 | A portion or all of this security purchased on a TBA basis.                                                                                                                                                                                                                                                                                                                                                                                                               
|9 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of 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 $5,375,119,000, which represented 5.73% of the net assets of the fund.                                                                               



Forward currency contracts

The fund has entered into forward currency contracts to sell
currencies as shown in the following table. The average notional amount of open forward currency contracts was $349,947,000 over
the prior 12-month period.



|                   |  |                 |  |                       |  |                 |  |              |  | Unrealized   |       
|------------------ |  | --------------- |  | --------------------- |  | --------------- |  | ------------ |  | ------------ | ------
|                   |  |                 |  |                       |  | Contract amount |  | appreciation | 
|                   |  |                 |  |                       |  | Receive         |  | Deliver      |  | at 7/31/2014 |       
|                   |  | Settlement date |  | Counterparty          |  | (000)           |  | (000)        |  | (000)        |       
|Sales:             |  |                 |  |                       |  |                 |  |              |  |              |       
|Australian dollars |  | 8/11/2014       |  | JPMorgan Chase        |  | $152,886        |  | A$163,200    |  |              | $1,341
|Australian dollars |  | 8/15/2014       |  | UBS AG                |  | $71,144         |  | A$76,000     |  |              | 591   
|Australian dollars |  | 8/15/2014       |  | Barclays Bank PLC     |  | $25,556         |  | A$27,300     |  |              | 213   
|Australian dollars |  | 8/19/2014       |  | Bank of America, N.A. |  | $10,031         |  | A$10,700     |  |              | 101   
|Australian dollars |  | 8/29/2014       |  | Citibank              |  | $79,891         |  | A$85,075     |  |              | 995   
|Australian dollars |  | 9/11/2014       |  | Bank of America, N.A. |  | $56,153         |  | A$60,700     |  |              | 25    
|                   |  |                 |  |                       |  |                 |  |              |  |              | $3,266



Investments in affiliates



A company is an affiliate of the fund under the Investment Company
Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the
fund’s affiliated-company holdings is either shown in the summary investment portfolio or included in the value of “Other
securities” under the respective industry sectors. Further details on such holdings and related transactions during the year
ended July 31, 2014, appear below.



|                                                                          |  | Beginning |            |  |           |   |             |            |  |   | Ending     |  |  | Dividend    |             |  | Value of      |  
|------------------------------------------------------------------------- |  | --------- | ---------- |  | --------- | - | ----------- | ---------- |  | - | ---------- |  |  | ----------- | ----------- |  | ------------- | -
|                                                                          |  | shares or |            |  |           |   |             |            |  |   | shares or  |  |  | or interest |             |  | affiliates at |  
|                                                                          |  | principal |            |  |           |   |             |            |  |   | principal  |  |  | income      |             |  | 7/31/2014     |  
|                                                                          |  | amount    |            |  | Additions |   |             | Reductions |  |   | amount     |  |  | (000)       |             |  | (000)         |  
|Waste Management, Inc.                                                    |  |           | 22,572,153 |  |           |   | 5,541,200   |            |  |   | 130,485    |  |  |             | 27,982,868  |  |               | $
|Digital Realty Trust, Inc.                                                |  |           | 7,950,000  |  |           |   | 396,000     |            |  |   | —          |  |  |             | 8,346,000   |  |               |  
|MeadWestvaco Corp.                                                        |  |           | 11,281,000 |  |           |   | —           |            |  |   | —          |  |  |             | 11,281,000  |  |               |  
|Iron Mountain Inc.                                                        |  |           | 12,457,211 |  |           |   | —           |            |  |   | —          |  |  |             | 12,457,211  |  |               |  
|Iron Mountain Inc. 5.75% 2024                                             |  |           | —          |  |           | $ | 2,175,000   |            |  |   | —          |  |  | $           | 2,175,000   |  |               |  
|Iron Mountain Inc. 6.00% 2023                                             |  |           | —          |  |           | $ | 950,000     |            |  |   | —          |  |  | $           | 950,000     |  |               |  
|TalkTalk Telecom Group PLC1                                               |  |           | 57,242,000 |  |           |   | —           |            |  |   | —          |  |  |             | 57,242,000  |  |               |  
|R.R. Donnelley & Sons Co.                                                 |  |           | 13,345,400 |  |           |   | —           |            |  |   | —          |  |  |             | 13,345,400  |  |               |  
|R.R. Donnelley & Sons Co. 7.00% 2022                                      |  |           | —          |  |           | $ | 16,735,000  |            |  |   | —          |  |  | $           | 16,735,000  |  |               |  
|R.R. Donnelley & Sons Co. 6.50% 2023                                      |  |           | —          |  |           | $ | 11,125,000  |            |  |   | —          |  |  | $           | 11,125,000  |  |               |  
|R.R. Donnelley & Sons Co. 7.25% 2018                                      |  | $         | 11,400,000 |  |           |   | —           |            |  | $ | 4,166,000  |  |  | $           | 7,234,000   |  |               |  
|R.R. Donnelley & Sons Co. 7.875% 2021                                     |  | $         | 5,000,000  |  |           | $ | 3,050,000   |            |  | $ | 5,000,000  |  |  | $           | 3,050,000   |  |               |  
|CBS Outdoor Americas, Inc.                                                |  |           | —          |  |           |   | 7,800,000   |            |  |   | —          |  |  |             | 7,800,000   |  |               |  
|Healthscope Ltd.1,2                                                       |  |           | —          |  |           |   | 101,831,569 |            |  |   | —          |  |  |             | 101,831,569 |  |               |  
|Cliffs Natural Resources Inc.                                             |  |           | 7,354,581  |  |           |   | —           |            |  |   | —          |  |  |             | 7,354,581   |  |               |  
|Cliffs Natural Resources Inc., Series A, 7.00% convertible preferred 2016 |  |           | 2,925,000  |  |           |   | —           |            |  |   | —          |  |  |             | 2,925,000   |  |               |  
|Cliffs Natural Resources Inc. 4.875% 2021                                 |  | $         | 30,242,000 |  |           |   | —           |            |  | $ | 25,297,000 |  |  | $           | 4,945,000   |  |               |  
|Cliffs Natural Resources Inc. 3.95% 2018                                  |  | $         | 3,250,000  |  |           |   | —           |            |  | $ | 3,250,000  |  |  |             | —           |  |               |  
|Cliffs Natural Resources Inc. 6.25% 2040                                  |  | $         | 1,000,000  |  |           |   | —           |            |  | $ | 1,000,000  |  |  |             | —           |  |               |  
|Diebold, Inc.                                                             |  |           | —          |  |           |   | 3,925,000   |            |  |   | —          |  |  |             | 3,925,000   |  |               |  



|The Income Fund of America | 17
|-------------------------- | --







|                                                      |  | Beginning |            |  |           |   |            |            |  |   | Ending     |  |  | Dividend    |            |  | Value of      |  
|----------------------------------------------------- |  | --------- | ---------- |  | --------- | - | ---------- | ---------- |  | - | ---------- |  |  | ----------- | ---------- |  | ------------- | -
|                                                      |  | shares or |            |  |           |   |            |            |  |   | shares or  |  |  | or interest |            |  | affiliates at |  
|                                                      |  | principal |            |  |           |   |            |            |  |   | principal  |  |  | income      |            |  | 7/31/2014     |  
|                                                      |  | amount    |            |  | Additions |   |            | Reductions |  |   | amount     |  |  | (000)       |            |  | (000)         |  
|Northwest Bancshares, Inc.                            |  |           | 4,850,000  |  |           |   | —          |            |  |   | —          |  |  |             | 4,850,000  |  |               | $
|Rotech Healthcare Inc., Term Loan, 13.00% 20203,4,5,6 |  |           | —          |  |           | $ | 18,566,454 |            |  |   | —          |  |  | $           | 18,566,454 |  |               |  
|Rotech Healthcare Inc., Term Loan A, 5.50% 20183,4,6  |  |           | —          |  |           | $ | 12,100,000 |            |  | $ | 90,750     |  |  | $           | 12,009,250 |  |               |  
|Rotech Healthcare Inc., Term Loan B, 10.00% 20193,4,6 |  |           | —          |  |           | $ | 9,200,000  |            |  |   | —          |  |  | $           | 9,200,000  |  |               |  
|Rotech Healthcare Inc.1,2                             |  |           | —          |  |           |   | 543,172    |            |  |   | —          |  |  |             | 543,172    |  |               |  
|Rotech Healthcare Inc. 10.50% 2018                    |  | $         | 19,690,000 |  |           |   | —          |            |  | $ | 19,690,000 |  |  |             | —          |  |               |  
|Douglas Dynamics, Inc.                                |  |           | 1,350,000  |  |           |   | 94,000     |            |  |   | —          |  |  |             | 1,444,000  |  |               |  
|Hospitality Properties Trust7                         |  |           | 9,073,335  |  |           |   | 535,000    |            |  |   | 9,608,335  |  |  |             | —          |  |               |  
|Hospitality Properties Trust 4.50% 20237              |  | $         | 11,060,000 |  |           |   | —          |            |  |   | —          |  |  | $           | 11,060,000 |  |               |  
|Hospitality Properties Trust 5.00% 20227              |  | $         | 6,500,000  |  |           |   | —          |            |  |   | —          |  |  | $           | 6,500,000  |  |               |  
|Hospitality Properties Trust 5.125% 20157             |  | $         | 2,160,000  |  |           |   | —          |            |  |   | —          |  |  | $           | 2,160,000  |  |               |  
|Hospitality Properties Trust 5.625% 20177             |  | $         | 10,169,000 |  |           |   | —          |            |  |   | —          |  |  | $           | 10,169,000 |  |               |  
|Hospitality Properties Trust 6.30% 20167              |  | $         | 19,827,000 |  |           |   | —          |            |  |   | —          |  |  | $           | 19,827,000 |  |               |  
|Hospitality Properties Trust 6.70% 20187              |  | $         | 12,625,000 |  |           |   | —          |            |  |   | —          |  |  | $           | 12,625,000 |  |               |  
|Macerich Co.7                                         |  |           | 7,505,000  |  |           |   | —          |            |  |   | 5,885,000  |  |  |             | 1,620,000  |  |               |  
|Maxim Integrated Products, Inc.7                      |  |           | 14,156,000 |  |           |   | —          |            |  |   | 6,360,000  |  |  |             | 7,796,000  |  |               |  
|Nucor Corp.7                                          |  |           | 16,280,000 |  |           |   | 1,150,000  |            |  |   | 4,539,515  |  |  |             | 12,890,485 |  |               |  
|Revel AC, Inc.2,7,8                                   |  |           | 529,539    |  |           |   | —          |            |  |   | —          |  |  |             | 529,539    |  |               |  
|                                                      |  |           |            |  |           |   |            |            |  |   |            |  |  |             |            |  |               | $



|1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities including those in “Miscellaneous” and “Other securities,” was $17,800,699,000, which represented 18.97% of the net assets of the fund. This amount includes $17,040,369,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2 | Security did not produce income during the last 12 months.                                                                                                                                                                                                                                                                                                                                                                                                               
|3 | Coupon rate may change periodically.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|4 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $885,970,000, which represented .94% of the net assets of the fund.                                                                                                                                                                                                                                                            
|5 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash.                                                                                                                                                                                                                                                                                                                                                                              
|6 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.                                                                                                                                                                                                                                                                                                                                        
|7 | Unaffiliated issuer at 7/31/2014.                                                                                                                                                                                                                                                                                                                                                                                                                                        
|8 | Acquired in a transaction exempt from registration under Rule 144A or Section 4(2) of 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 $5,375,119,000, which represented 5.73% of the net assets of the fund.                                                                             



Key to abbreviations

ADR = American Depositary Receipts

TBA = To be announced

A$ = Australian dollars

GBP = British pounds

HKD = Hong Kong dollars



See Notes to Financial Statements



|18 | The Income Fund of America
|-- | --------------------------







Financial statements



|Statement of assets and liabilities                                    |  |   |                        |  |  |   |            |  
|---------------------------------------------------------------------- |  | - | ---------------------- |  |  | - | ---------- | -
|at July 31, 2014                                                       |  |   | (dollars in thousands) | 
|                                                                       |  |   |                        | 
|Assets:                                                                |  |   |                        |  |  |   |            |  
|Investment securities, at value:                                       |  |   |                        |  |  |   |            |  
|Unaffiliated issuers (cost: $72,052,919)                               |  | $ | 89,588,093             |  |  |   |            |  
|Affiliated issuers (cost: $3,632,804)                                  |  |   | 4,194,786              |  |  | $ | 93,782,879 |  
|Cash denominated in currencies other than U.S. dollars (cost: $10,041) |  |   |                        |  |  |   | 10,041     |  
|Cash                                                                   |  |   |                        |  |  |   | 18,415     |  
|Unrealized appreciation on open forward currency contracts             |  |   |                        |  |  |   | 3,266      |  
|Receivables for:                                                       |  |   |                        |  |  |   |            |  
|Sales of investments                                                   |  |   | 843,183                |  |  |   |            |  
|Sales of fund’s shares                                                 |  |   | 96,260                 |  |  |   |            |  
|Dividends and interest                                                 |  |   | 430,438                |  |  |   | 1,369,881  |  
|                                                                       |  |   |                        |  |  |   | 95,184,482 |  
|Liabilities:                                                           |  |   |                        |  |  |   |            |  
|Payables for:                                                          |  |   |                        |  |  |   |            |  
|Purchases of investments                                               |  |   | 1,204,270              |  |  |   |            |  
|Repurchases of fund’s shares                                           |  |   | 81,971                 |  |  |   |            |  
|Closed forward currency contracts                                      |  |   | 110                    |  |  |   |            |  
|Investment advisory services                                           |  |   | 16,695                 |  |  |   |            |  
|Services provided by related parties                                   |  |   | 37,926                 |  |  |   |            |  
|Trustees’ deferred compensation                                        |  |   | 5,066                  |  |  |   |            |  
|Other                                                                  |  |   | 382                    |  |  |   | 1,346,420  |  
|Net assets at July 31, 2014                                            |  |   |                        |  |  | $ | 93,838,062 |  
|                                                                       |  |   |                        |  |  |   |            |  
|Net assets consist of:                                                 |  |   |                        |  |  |   |            |  
|Capital paid in on shares of beneficial interest                       |  |   |                        |  |  | $ | 76,959,631 |  
|Undistributed net investment income                                    |  |   |                        |  |  |   | 904,906    |  
|Accumulated net realized loss                                          |  |   |                        |  |  |   | (2,126,892 | )
|Net unrealized appreciation                                            |  |   |                        |  |  |   | 18,100,417 |  
|Net assets at July 31, 2014                                            |  |   |                        |  |  | $ | 93,838,062 |  



|(dollars
    and shares in thousands, except per-share amounts)                                                                                | 
|---------------------------------------------------------------------------------------------------------------------------------------------- | 
|                                                                                                                                               | 
|Shares of beneficial interest issued and outstanding (no stated par value) — 
unlimited shares authorized (4,379,785 total shares outstanding) | 
|                                                                                                                                               | 
|                                                                                                                                               | 
|Class A                                                                                                                                        | 
|Class B                                                                                                                                        | 
|Class C                                                                                                                                        | 
|Class F-1                                                                                                                                      | 
|Class F-2                                                                                                                                      | 
|Class 529-A                                                                                                                                    | 
|Class 529-B                                                                                                                                    | 
|Class 529-C                                                                                                                                    | 
|Class 529-E                                                                                                                                    | 
|Class 529-F-1                                                                                                                                  | 
|Class R-1                                                                                                                                      | 
|Class R-2                                                                                                                                      | 
|Class R-3                                                                                                                                      | 
|Class R-4                                                                                                                                      | 
|Class R-5                                                                                                                                      | 
|Class R-6                                                                                                                                      | 



See Notes to Financial Statements



|The Income Fund of America | 19
|-------------------------- | --







|Statement of operations                                                                                    |  |   |                        |   |  |   |            | 
|---------------------------------------------------------------------------------------------------------- |  | - | ---------------------- | - |  | - | ---------- | 
|for the year ended July 31, 2014                                                                           |  |   | (dollars in thousands) |  
|                                                                                                           |  |   |                        |  
|Investment income:                                                                                         |  |   |                        |   |  |   |            | 
|Income:                                                                                                    |  |   |                        |   |  |   |            | 
|Dividends (net of non-U.S. taxes of $60,864;
    also includes $187,065 from affiliates)                   |  | $ | 2,893,460              |   |  |   |            | 
|Interest (includes $10,767 from affiliates)                                                                |  |   | 953,375                |   |  | $ | 3,846,835  | 
|Fees and expenses*:                                                                                        |  |   |                        |   |  |   |            | 
|Investment advisory services                                                                               |  |   | 206,680                |   |  |   |            | 
|Distribution services                                                                                      |  |   | 268,987                |   |  |   |            | 
|Transfer agent services                                                                                    |  |   | 70,002                 |   |  |   |            | 
|Administrative services                                                                                    |  |   | 16,933                 |   |  |   |            | 
|Reports to shareholders                                                                                    |  |   | 2,651                  |   |  |   |            | 
|Registration statement and prospectus                                                                      |  |   | 1,011                  |   |  |   |            | 
|Trustees’ compensation                                                                                     |  |   | 1,126                  |   |  |   |            | 
|Auditing and legal                                                                                         |  |   | 198                    |   |  |   |            | 
|Custodian                                                                                                  |  |   | 2,601                  |   |  |   |            | 
|Other                                                                                                      |  |   | 2,202                  |   |  |   | 572,391    | 
|Net investment income                                                                                      |  |   |                        |   |  |   | 3,274,444  | 
|                                                                                                           |  |   |                        |   |  |   |            | 
|Net realized gain and unrealized appreciation on investments,
    forward currency contracts and currency: |  |   |                        |   |  |   |            | 
|Net realized gain (loss) on:                                                                               |  |   |                        |   |  |   |            | 
|Investments (includes $2,501 net gain from affiliates)                                                     |  |   | 2,878,943              |   |  |   |            | 
|Forward currency contracts                                                                                 |  |   | (15,000                | ) |  |   |            | 
|Currency transactions                                                                                      |  |   | 3,586                  |   |  |   | 2,867,529  | 
|Net unrealized appreciation (depreciation) on:                                                             |  |   |                        |   |  |   |            | 
|Investments                                                                                                |  |   | 4,430,216              |   |  |   |            | 
|Forward currency contracts                                                                                 |  |   | 3,266                  |   |  |   |            | 
|Currency translations                                                                                      |  |   | (70                    | ) |  |   | 4,433,412  | 
|Net realized gain and unrealized
    appreciation on investments, forward currency contracts and currency  |  |   |                        |   |  |   | 7,300,941  | 
|                                                                                                           |  |   |                        |   |  |   |            | 
|Net increase in net assets resulting
    from operations                                                   |  |   |                        |   |  | $ | 10,575,385 | 



*Additional information related to class-specific fees and expenses
is included in the Notes to Financial Statements.



|Statements of changes in net assets                                                              |  |                    |                                                                    |   |      |   |            |  
|------------------------------------------------------------------------------------------------ |  | ------------------ | ------------------------------------------------------------------ | - | ---- | - | ---------- | -
|                                                                                                 |  |                    | (dollars
                                            in thousands) |  
|                                                                                                 |  |                    |                                                                    |   |      |   |            |  
|                                                                                                 |  | Year ended July 31 |                                                                   
|                                                                                                 |  | 2014               |                                                                    |   | 2013 |  
|Operations:                                                                                      |  |                    |                                                                    |   |      |   |            |  
|Net investment income                                                                            |  | $                  | 3,274,444                                                          |   |      | $ | 2,716,517  |  
|Net realized gain on investments, forward currency contracts and currency transactions           |  |                    | 2,867,529                                                          |   |      |   | 1,481,660  |  
|Net unrealized appreciation on investments, forward currency contracts and currency translations |  |                    | 4,433,412                                                          |   |      |   | 6,793,524  |  
|Net increase in net assets resulting from operations                                             |  |                    | 10,575,385                                                         |   |      |   | 10,991,701 |  
|                                                                                                 |  |                    |                                                                    |   |      |   |            |  
|Dividends paid to shareholders from net investment income                                        |  |                    | (2,769,274                                                         | ) |      |   | (2,756,869 | )
|                                                                                                 |  |                    |                                                                    |   |      |   |            |  
|Net capital share transactions                                                                   |  |                    | 2,749,667                                                          |   |      |   | 2,176,097  |  
|                                                                                                 |  |                    |                                                                    |   |      |   |            |  
|Total increase in net assets                                                                     |  |                    | 10,555,778                                                         |   |      |   | 10,410,929 |  
|                                                                                                 |  |                    |                                                                    |   |      |   |            |  
|Net assets:                                                                                      |  |                    |                                                                    |   |      |   |            |  
|Beginning of year                                                                                |  |                    | 83,282,284                                                         |   |      |   | 72,871,355 |  
|End of year (including undistributed net investment income: $904,906 and $392,405, respectively) |  | $                  | 93,838,062                                                         |   |      | $ | 83,282,284 |  



See Notes to Financial Statements



|20 | The Income Fund of America
|-- | --------------------------







Notes to financial statements



1. Organization



The Income Fund of America (the “fund”) is registered
under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks current income
while secondarily striving for capital growth through investments in stocks and fixed-income securities.



The fund has 16 share classes consisting of five retail share
classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes
529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, R-5 and R-6). The 529
college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered
only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following
table:



|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 the
assets, dividends and liquidation proceeds held. 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, transfer agent and administrative 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 share class.



2. Significant accounting policies



The fund is an investment company that applies the accounting
and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have
been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the
fund’s investment adviser 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 in this section, 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 recognized on an accrual basis. Market discounts, premiums and original
issue discounts on fixed-income securities are amortized daily over the expected life of the security.



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



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



|The Income Fund of America | 21
|-------------------------- | --







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
supplied by one or more pricing vendors 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. 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
in the fund’s statement of operations. 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



Capital Research and Management Company (“CRMC”),
the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. The net asset value
of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock
Exchange is open.



Methods and inputs — The fund’s investment
adviser uses the following methods and inputs to establish the fair value of the fund’s 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 on which the security trades.



Fixed-income securities, including short-term securities, are
generally valued at prices obtained 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                                                                                                                                                                                                                     
|Municipal securities                               | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts                                                                                                                                                                               



When the fund’s investment adviser deems it appropriate
to do so (such as when vendor prices are unavailable or deemed to be not representative), fixed-income securities will be valued
in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask 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 for either equity
or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Forward
currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one
or more pricing vendors.



Securities and other assets for which representative market quotations
are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in
good faith under fair valuation guidelines adopted by authority of the fund’s board of trustees as further described. The
investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance,
to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications
of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security,
such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or



|22 | The Income Fund of America
|-- | --------------------------







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. In addition, the closing prices of equity securities
that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local
trading but before the net asset value of each share class of the fund is determined. 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.



Processes and structure— The fund’s board
of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board
oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”)
to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee
regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s
valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed
appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues.
The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information
to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations
and methods.



The fund’s investment adviser has also established a Fixed-Income
Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors.
This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security
valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the
investment adviser’s compliance group.



Classifications— The fund’s investment adviser
classifies the fund’s 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. Certain securities trading outside
the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following
the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’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 tables present the fund’s valuation levels as of July 31, 2014 (dollars in thousands):



|                                       |  | Investment securities
|-------------------------------------- |  | ---------------------
|                                       |  | Level 1              
|Assets:                                |  |                      
|Common stocks:                         |  |                      
|Health care                            |  | $                    
|Industrials                            |  |                      
|Financials                             |  |                      
|Information technology                 |  |                      
|Consumer staples                       |  |                      
|Energy                                 |  |                      
|Materials                              |  |                      
|Telecommunication services             |  |                      
|Utilities                              |  |                      
|Consumer discretionary                 |  |                      
|Miscellaneous                          |  |                      
|Preferred securities                   |  |                      
|Rights & warrants                      |  |                      
|Convertible stocks                     |  |                      
|Convertible bonds                      |  |                      
|Bonds, notes & other debt instruments: |  |                      
|Corporate bonds & notes                |  |                      
|U.S. Treasury bonds & notes            |  |                      
|Other                                  |  |                      
|Miscellaneous                          |  |                      
|Short-term securities                  |  |                      
|Total                                  |  | $                    



See the following page for footnotes.



|The Income Fund of America | 23
|-------------------------- | --







|                                                           |  | Other investments†
|---------------------------------------------------------- |  | ------------------
|                                                           |  | Level 1           
|Assets:                                                    |  |                   
|Unrealized appreciation on open forward currency contracts |  | $                 



|* | Securities with a value of $13,303,172,000, which represented 14.18% of the net assets of the fund, transferred from Level 1 to Level 2 since the prior fiscal year-end, primarily due to significant market movements following the close of local trading.
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|† | Forward currency contracts are not included in the investment portfolio.                                                                                                                                                                                    



4. Risk factors



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



Market conditions — The prices of, and the income
generated by, the common stocks and other securities held by the fund may decline –sometimes rapidly or unpredictably –
due to various factors, including events or conditions affecting the general economy or particular industries; 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.



Issuer risks — The values of, and the income generated
by, securities held by the fund may also decline in response to various factors directly related to the issuers of such securities,
including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as
mergers, acquisitions or dispositions and the market response to any such initiative.



Investing in income-oriented stocks— Income provided
by the fund may be reduced by changes in the dividend policies of, and the capital resources available for dividend payments at,
the companies in which the fund invests.



Investing in debt instruments — The prices of, and
the income generated by, bonds and other 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.



Rising interest rates will generally cause the prices of bonds
and other debt securities to fall. Falling interest rates may cause an issuer to redeem, call or refinance a debt security before
its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity
debt securities generally have higher rates of interest and may be subject to greater price fluctuations than shorter maturity
debt securities.



Bonds and other 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. Lower quality debt securities generally have higher
rates of interest and may be subject to greater price fluctuations than higher quality debt securities. Credit risk is gauged,
in part, by the credit ratings of the debt securities in which the fund invests. However, ratings are only the opinions of the
rating agencies issuing them and are not guarantees as to credit quality or an evaluation of market risk. The fund’s investment
adviser relies on its own credit analysts to research issuers and issues in seeking to mitigate various credit and default risks.



Investing in lower rated bonds — Lower rated bonds
and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines
due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these
securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general
economic difficulty. These risks may be increased with respect to investments in junk bonds.



Investing outside the U.S.— Securities of issuers
domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of adverse political, social,
economic or market developments in the countries or regions in which the issuers operate. These securities may also lose value
due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Securities markets
in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject
to different accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value,
than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign
withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased
or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.



|24 | The Income Fund of America
|-- | --------------------------







Management— The investment adviser to the fund
actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed
by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment
results to lag relevant benchmarks or other funds with similar objectives.



5. Certain investment techniques



Loan transactions — The fund has entered into loan
transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation
interest in another holder’s portion of a loan. The loan is often administered by a financial institution that acts as agent for
the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the
investment. The loan’s interest rate and maturity date may change based on the terms of the loan, including potential early payments
of principal.



Forward currency contracts— The fund has entered
into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates.
The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange
rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of
their contracts and from possible movements in exchange rates.



On a daily basis, the fund’s investment adviser values
forward currency contracts and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s
statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed
or offset by another contract with the same broker for the same settlement date and currency.



Closed forward currency contracts that have not reached their
settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s
statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation
or depreciation from open forward currency contracts are recorded in the fund’s statement of operations.



The following tables present the financial statement impacts
resulting from the fund’s use of forward currency contracts as of July 31, 2014 (dollars in thousands):



|                 |  | Assets                                                     |  |       | Liabilities                 |  
|---------------- |  | ---------------------------------------------------------- |  | ----- | --------------------------- | -
|Contract         |  | Location on statement of assets 
and liabilities           |  | Value |                             |  
|Forward currency |  | Unrealized appreciation on open forward currency contracts |  | $     | 3,266                       |  
|                 |  |                                                            |  |       |                             |  
|                 |  | Net realized loss                                          |  |       | Net unrealized appreciation |  
|Contract         |  | Location on statement of
 operations                       |  | Value |                             |  
|Forward currency |  | Net realized loss on forward currency contracts            |  | $     | (15,000                     | )



Collateral— The fund participates in a collateral
program due to its use of forward currency contracts. The program calls for the fund to either receive or pledge collateral based
on the net gain or loss on unsettled forward currency contracts by counterparty. The purpose of the collateral is to cover potential
losses that could occur in the event that either party cannot meet its contractual obligations.



6. 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 July 31, 2014, 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 Income Fund of America | 25
|-------------------------- | --







The fund is not subject to examination by U.S. federal tax authorities
for tax years before 2010 and by state tax authorities for tax years before 2009.



Non-U.S. taxation— Dividend and interest income
are recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject
to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon
the sale of these securities.



Distributions— Distributions paid to shareholders
are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income
and net realized gains for financial reporting purposes. These differences are due primarily to 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; unrealized appreciation of certain investments in securities outside the U.S.; cost of investments sold; paydowns
on fixed-income securities; and net capital losses. 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.



During the year ended July 31, 2014, the fund reclassified $45,000
from undistributed net investment income to capital paid in on shares of beneficial interest and $7,376,000 from accumulated net
realized loss to undistributed net investment income to align financial reporting with tax reporting.



Under the Regulated Investment Company Modernization Act of 2010
(the “Act”), net capital losses recognized after July 31, 2011, may be carried forward indefinitely, and their character
is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated
as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment
net capital losses.



As of July 31, 2014, the tax-basis components of distributable
earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):



|Undistributed ordinary income                          |  | $ | 915,712    |  
|------------------------------------------------------ |  | - | ---------- | -
|Capital loss carryforward expiring 2018*               |  |   | (1,962,845 | )
|Post-October capital loss deferral†                    |  |   | (38,646    | )
|Gross unrealized appreciation on investment securities |  |   | 18,888,294 |  
|Gross unrealized depreciation on investment securities |  |   | (929,687   | )
|Net unrealized appreciation on investment securities   |  |   | 17,958,607 |  
|Cost of investment securities                          |  |   | 75,824,272 |  



|* | Reflects the utilization of capital loss carryforward of $2,896,009,000. The capital loss carryforward will be used to offset any capital gains realized by the fund in future years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains.
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|† | This deferral is considered incurred in the subsequent year.                                                                                                                                                                                                                                                        



Tax-basis distributions paid to shareholders from ordinary income
were as follows (dollars in thousands):



|              |  | Year ended July 31
|------------- |  | ------------------
|Share class   |  | 2014              
|Class A       |  | $                 
|Class B       |  |                   
|Class C       |  |                   
|Class F-1     |  |                   
|Class F-2     |  |                   
|Class 529-A   |  |                   
|Class 529-B   |  |                   
|Class 529-C   |  |                   
|Class 529-E   |  |                   
|Class 529-F-1 |  |                   
|Class R-1     |  |                   
|Class R-2     |  |                   
|Class R-3     |  |                   
|Class R-4     |  |                   
|Class R-5     |  |                   
|Class R-6     |  |                   
|Total         |  | $                 



|26 | The Income Fund of America
|-- | --------------------------







7. Fees and transactions with related parties



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. CRMC, AFD and AFS are
considered related parties to the fund.



Investment advisory services— The fund has an investment
advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing
annual rates beginning with 0.250% on the first $500 million of daily net assets and decreasing to 0.123% on such assets in excess
of $89 billion. The agreement also provides for monthly fees, accrued daily, of 2.25% of the fund’s monthly gross income.
For the year ended July 31, 2014, the investment advisory services fee was $206,680,000, which was equivalent to an annualized
rate of 0.232% of average daily 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 further described below:



Distribution services— The fund has plans of distribution
for all share classes, except Class F-2, R-5 and R-6 shares. Under the plans, the board of trustees 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 in this
section. In some cases, the board of trustees 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 fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining
amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.



For Class A and 529-A shares, distribution-related expenses include
the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share
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 July 31, 2014, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A
shares.



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



Transfer agent services— The fund has a shareholder
services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s
share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund
reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.



Administrative services  —
The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing
administrative services to Class A, C, F, 529 and R shares. These services include, but are not limited to, coordinating,
monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, Class A
shares pay an annual fee of 0.01% and Class C, F, 529 and R shares pay an annual fee of 0.05% of their respective average
daily net assets.



529 plan services — Each 529 share class is subject
to service fees to compensate the Virginia College Savings Plan (Virginia529) for its oversight and administration of the 529 college
savings plan. During the period August 1, 2013, to March 31, 2014, the quarterly fee was 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. Effective April 1, 2014, the quarterly fee was amended to provide
for reduced annual rates of 0.07%, 0.06% and 0.05% over $30 billion, $50 billion and $70 billion, respectively, of the net assets
invested in Class 529 shares of the American Funds. 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. The fee is
included in other expenses in the fund’s statement of operations. The Virginia College Savings Plan (Virginia529) is not considered
a related party to the fund.



|The Income Fund of America | 27
|-------------------------- | --







For the year ended July 31, 2014, class-specific expenses under
the agreements were as follows (dollars in thousands):



| | Share class                   |  | Distribution services |                | Transfer agent services |  | Administrative services |         | 529 plan services
| | ----------------------------- |  | --------------------- | -------------- | ----------------------- |  | ----------------------- | ------- | -----------------
| | Class A                       |  |                       | $163,059       |                         |  |                         | $51,201 |                  
| | Class B                       |  |                       | 7,053          |                         |  |                         | 564     |                  
| | Class C                       |  |                       | 65,062         |                         |  |                         | 4,956   |                  
| | Class F-1                     |  |                       | 10,240         |                         |  |                         | 4,413   |                  
| | Class F-2                     |  |                       | Not applicable |                         |  |                         | 1,981   |                  
| | Class 529-A                   |  |                       | 3,107          |                         |  |                         | 802     |                  
| | Class 529-B                   |  |                       | 392            |                         |  |                         | 28      |                  
| | Class 529-C                   |  |                       | 4,448          |                         |  |                         | 285     |                  
| | Class 529-E                   |  |                       | 309            |                         |  |                         | 18      |                  
| | Class 529-F-1                 |  |                       | —              |                         |  |                         | 28      |                  
| | Class R-1                     |  |                       | 1,268          |                         |  |                         | 122     |                  
| | Class R-2                     |  |                       | 4,612          |                         |  |                         | 2,085   |                  
| | Class R-3                     |  |                       | 6,638          |                         |  |                         | 2,085   |                  
| | Class R-4                     |  |                       | 2,799          |                         |  |                         | 1,145   |                  
| | Class R-5                     |  |                       | Not applicable |                         |  |                         | 280     |                  
| | Class R-6                     |  |                       | Not applicable |                         |  |                         | 9       |                  
| | Total class-specific expenses |  |                       | $268,987       |                         |  |                         | $70,002 |                  



Trustees’ deferred compensation— Trustees who are
unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which
remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent
general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation
of $1,126,000 in the fund’s statement of operations includes $377,000 in current fees (either paid in cash or deferred) and
a net increase of $749,000 in the value of the deferred amounts.



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



8. Capital share transactions



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



|                                  |  | Sales* |            |  | Reinvestments of dividends |  |         | Repurchases* |  |   | Net increase (decrease) | 
|--------------------------------- |  | ------ | ---------- |  | -------------------------- |  | ------- | ------------ |  | - | ----------------------- | 
|Share class                       |  | Amount |            |  | Shares                     |  |         | Amount       |  |   | Shares                  | 
|                                  |  |        |            |  |                            |  |         |              |  |   |                         | 
|Year ended July 31, 2014          |  |        |            |  |                            |  |         |              |  |   |                         | 
|                                  |  |        |            |  |                            |  |         |              |  |   |                         | 
|Class A                           |  | $      | 6,420,156  |  |                            |  | 311,526 |              |  | $ | 2,090,820               | 
|Class B                           |  |        | 15,848     |  |                            |  | 780     |              |  |   | 16,702                  | 
|Class C                           |  |        | 1,051,634  |  |                            |  | 51,585  |              |  |   | 150,122                 | 
|Class F-1                         |  |        | 1,447,794  |  |                            |  | 70,525  |              |  |   | 124,418                 | 
|Class F-2                         |  |        | 1,663,283  |  |                            |  | 78,324  |              |  |   | 53,497                  | 
|Class 529-A                       |  |        | 179,862    |  |                            |  | 8,743   |              |  |   | 42,926                  | 
|Class 529-B                       |  |        | 1,516      |  |                            |  | 74      |              |  |   | 894                     | 
|Class 529-C                       |  |        | 67,037     |  |                            |  | 3,269   |              |  |   | 10,457                  | 
|Class 529-E                       |  |        | 8,763      |  |                            |  | 427     |              |  |   | 1,762                   | 
|Class 529-F-1                     |  |        | 12,490     |  |                            |  | 608     |              |  |   | 1,616                   | 
|Class R-1                         |  |        | 25,667     |  |                            |  | 1,253   |              |  |   | 3,020                   | 
|Class R-2                         |  |        | 126,996    |  |                            |  | 6,209   |              |  |   | 15,050                  | 
|Class R-3                         |  |        | 263,971    |  |                            |  | 12,837  |              |  |   | 37,671                  | 
|Class R-4                         |  |        | 309,321    |  |                            |  | 15,045  |              |  |   | 34,994                  | 
|Class R-5                         |  |        | 187,464    |  |                            |  | 8,951   |              |  |   | 18,802                  | 
|Class R-6                         |  |        | 809,454    |  |                            |  | 39,104  |              |  |   | 71,525                  | 
|                                 
|Total net increase
    (decrease) |  | $      | 12,591,256 |  |                            |  | 609,260 |              |  | $ | 2,674,276               | 



|28 | The Income Fund of America
|-- | --------------------------







|                                  |  | Sales* |            |  | Reinvestments of dividends |  |         | Repurchases* |  |   | Net increase (decrease) | 
|--------------------------------- |  | ------ | ---------- |  | -------------------------- |  | ------- | ------------ |  | - | ----------------------- | 
|Share class                       |  | Amount |            |  | Shares                     |  |         | Amount       |  |   | Shares                  | 
|                                 
|Year ended July 31, 2013          |  |        |            |  |                            |  |         |              |  |   |                         | 
|                                  |  |        |            |  |                            |  |         |              |  |   |                         | 
|Class A                           |  | $      | 6,799,757  |  |                            |  | 364,100 |              |  | $ | 2,086,314               | 
|Class B                           |  |        | 26,969     |  |                            |  | 1,464   |              |  |   | 27,089                  | 
|Class C                           |  |        | 916,082    |  |                            |  | 49,436  |              |  |   | 168,957                 | 
|Class F-1                         |  |        | 1,181,426  |  |                            |  | 63,117  |              |  |   | 104,438                 | 
|Class F-2                         |  |        | 472,751    |  |                            |  | 25,296  |              |  |   | 40,087                  | 
|Class 529-A                       |  |        | 199,233    |  |                            |  | 10,735  |              |  |   | 42,425                  | 
|Class 529-B                       |  |        | 2,397      |  |                            |  | 130     |              |  |   | 1,392                   | 
|Class 529-C                       |  |        | 68,835     |  |                            |  | 3,713   |              |  |   | 10,950                  | 
|Class 529-E                       |  |        | 8,507      |  |                            |  | 460     |              |  |   | 1,814                   | 
|Class 529-F-1                     |  |        | 10,094     |  |                            |  | 542     |              |  |   | 1,496                   | 
|Class R-1                         |  |        | 23,012     |  |                            |  | 1,239   |              |  |   | 3,404                   | 
|Class R-2                         |  |        | 152,857    |  |                            |  | 8,296   |              |  |   | 17,014                  | 
|Class R-3                         |  |        | 292,660    |  |                            |  | 15,756  |              |  |   | 41,436                  | 
|Class R-4                         |  |        | 301,902    |  |                            |  | 16,195  |              |  |   | 33,823                  | 
|Class R-5                         |  |        | 146,132    |  |                            |  | 7,769   |              |  |   | 18,918                  | 
|Class R-6                         |  |        | 549,910    |  |                            |  | 29,473  |              |  |   | 51,849                  | 
|Total net increase
    (decrease) |  | $      | 11,152,524 |  |                            |  | 597,721 |              |  | $ | 2,651,406               | 



*Includes exchanges between share classes of the fund.



9. Investment transactions



The fund made purchases and sales of investment securities, excluding
short-term securities and U.S. government obligations, if any, of $31,851,035,000 and $29,654,828,000, respectively, during the
year ended July 31, 2014.



|The Income Fund of America | 29
|-------------------------- | --







Financial highlights



|                     |  |                                    |       |  | Income (loss) from investment operations1 |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|-------------------- |  | ---------------------------------- | ----- |  | ----------------------------------------- | - | --- | --------------------------------------------------------------- |  | - | -------------------------------- |  |  | --------------------------------------- | ---- |  | ---------------------------- | - | ---- | ------------ |  | - | ------------------------------------- | 
|                     |  | Net asset value, beginning of year |       |  | Netinvestmentincome2                      |   |     | Net gains (losses) on securities (both realized and unrealized) |  |   | Total from investment operations |  |  | Dividends (from net investment  income) |      |  | Net asset value, end of year |   |      | Totalreturn3 |  |   | Net assets, end of year (in millions) | 
|Class A:             |  |                                    |       |  |                                           |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|Year ended 7/31/2014 |  | $                                  | 19.64 |  |                                           | $ | .78 |                                                                 |  | $ | 1.69                             |  |  | $                                       | 2.47 |  |                              | $ | (.66 | )            |  | $ | 21.45                                 | 
|Year ended 7/31/2013 |  |                                    | 17.66 |  |                                           |   | .67 |                                                                 |  |   | 1.99                             |  |  |                                         | 2.66 |  |                              |   | (.68 | )            |  |   | 19.64                                 | 
|Year ended 7/31/2012 |  |                                    | 16.97 |  |                                           |   | .66 |                                                                 |  |   | .73                              |  |  |                                         | 1.39 |  |                              |   | (.70 | )            |  |   | 17.66                                 | 
|Year ended 7/31/2011 |  |                                    | 15.48 |  |                                           |   | .71 |                                                                 |  |   | 1.53                             |  |  |                                         | 2.24 |  |                              |   | (.75 | )            |  |   | 16.97                                 | 
|Year ended 7/31/2010 |  |                                    | 14.04 |  |                                           |   | .73 |                                                                 |  |   | 1.37                             |  |  |                                         | 2.10 |  |                              |   | (.66 | )            |  |   | 15.48                                 | 
|Class B:             |  |                                    |       |  |                                           |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|Year ended 7/31/2014 |  |                                    | 19.50 |  |                                           |   | .61 |                                                                 |  |   | 1.69                             |  |  |                                         | 2.30 |  |                              |   | (.50 | )            |  |   | 21.30                                 | 
|Year ended 7/31/2013 |  |                                    | 17.53 |  |                                           |   | .53 |                                                                 |  |   | 1.97                             |  |  |                                         | 2.50 |  |                              |   | (.53 | )            |  |   | 19.50                                 | 
|Year ended 7/31/2012 |  |                                    | 16.85 |  |                                           |   | .53 |                                                                 |  |   | .71                              |  |  |                                         | 1.24 |  |                              |   | (.56 | )            |  |   | 17.53                                 | 
|Year ended 7/31/2011 |  |                                    | 15.37 |  |                                           |   | .58 |                                                                 |  |   | 1.52                             |  |  |                                         | 2.10 |  |                              |   | (.62 | )            |  |   | 16.85                                 | 
|Year ended 7/31/2010 |  |                                    | 13.94 |  |                                           |   | .60 |                                                                 |  |   | 1.37                             |  |  |                                         | 1.97 |  |                              |   | (.54 | )            |  |   | 15.37                                 | 
|Class C:             |  |                                    |       |  |                                           |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|Year ended 7/31/2014 |  |                                    | 19.42 |  |                                           |   | .60 |                                                                 |  |   | 1.69                             |  |  |                                         | 2.29 |  |                              |   | (.50 | )            |  |   | 21.21                                 | 
|Year ended 7/31/2013 |  |                                    | 17.47 |  |                                           |   | .51 |                                                                 |  |   | 1.97                             |  |  |                                         | 2.48 |  |                              |   | (.53 | )            |  |   | 19.42                                 | 
|Year ended 7/31/2012 |  |                                    | 16.80 |  |                                           |   | .52 |                                                                 |  |   | .71                              |  |  |                                         | 1.23 |  |                              |   | (.56 | )            |  |   | 17.47                                 | 
|Year ended 7/31/2011 |  |                                    | 15.33 |  |                                           |   | .57 |                                                                 |  |   | 1.51                             |  |  |                                         | 2.08 |  |                              |   | (.61 | )            |  |   | 16.80                                 | 
|Year ended 7/31/2010 |  |                                    | 13.91 |  |                                           |   | .60 |                                                                 |  |   | 1.36                             |  |  |                                         | 1.96 |  |                              |   | (.54 | )            |  |   | 15.33                                 | 
|Class F-1:           |  |                                    |       |  |                                           |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|Year ended 7/31/2014 |  |                                    | 19.60 |  |                                           |   | .76 |                                                                 |  |   | 1.68                             |  |  |                                         | 2.44 |  |                              |   | (.64 | )            |  |   | 21.40                                 | 
|Year ended 7/31/2013 |  |                                    | 17.62 |  |                                           |   | .65 |                                                                 |  |   | 2.00                             |  |  |                                         | 2.65 |  |                              |   | (.67 | )            |  |   | 19.60                                 | 
|Year ended 7/31/2012 |  |                                    | 16.94 |  |                                           |   | .65 |                                                                 |  |   | .72                              |  |  |                                         | 1.37 |  |                              |   | (.69 | )            |  |   | 17.62                                 | 
|Year ended 7/31/2011 |  |                                    | 15.46 |  |                                           |   | .70 |                                                                 |  |   | 1.52                             |  |  |                                         | 2.22 |  |                              |   | (.74 | )            |  |   | 16.94                                 | 
|Year ended 7/31/2010 |  |                                    | 14.02 |  |                                           |   | .73 |                                                                 |  |   | 1.37                             |  |  |                                         | 2.10 |  |                              |   | (.66 | )            |  |   | 15.46                                 | 
|Class F-2:           |  |                                    |       |  |                                           |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|Year ended 7/31/2014 |  |                                    | 19.63 |  |                                           |   | .80 |                                                                 |  |   | 1.71                             |  |  |                                         | 2.51 |  |                              |   | (.70 | )            |  |   | 21.44                                 | 
|Year ended 7/31/2013 |  |                                    | 17.65 |  |                                           |   | .70 |                                                                 |  |   | 1.99                             |  |  |                                         | 2.69 |  |                              |   | (.71 | )            |  |   | 19.63                                 | 
|Year ended 7/31/2012 |  |                                    | 16.97 |  |                                           |   | .69 |                                                                 |  |   | .72                              |  |  |                                         | 1.41 |  |                              |   | (.73 | )            |  |   | 17.65                                 | 
|Year ended 7/31/2011 |  |                                    | 15.48 |  |                                           |   | .74 |                                                                 |  |   | 1.53                             |  |  |                                         | 2.27 |  |                              |   | (.78 | )            |  |   | 16.97                                 | 
|Year ended 7/31/2010 |  |                                    | 14.04 |  |                                           |   | .77 |                                                                 |  |   | 1.36                             |  |  |                                         | 2.13 |  |                              |   | (.69 | )            |  |   | 15.48                                 | 
|Class 529-A:         |  |                                    |       |  |                                           |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|Year ended 7/31/2014 |  |                                    | 19.60 |  |                                           |   | .75 |                                                                 |  |   | 1.70                             |  |  |                                         | 2.45 |  |                              |   | (.64 | )            |  |   | 21.41                                 | 
|Year ended 7/31/2013 |  |                                    | 17.63 |  |                                           |   | .65 |                                                                 |  |   | 1.98                             |  |  |                                         | 2.63 |  |                              |   | (.66 | )            |  |   | 19.60                                 | 
|Year ended 7/31/2012 |  |                                    | 16.95 |  |                                           |   | .64 |                                                                 |  |   | .72                              |  |  |                                         | 1.36 |  |                              |   | (.68 | )            |  |   | 17.63                                 | 
|Year ended 7/31/2011 |  |                                    | 15.46 |  |                                           |   | .69 |                                                                 |  |   | 1.53                             |  |  |                                         | 2.22 |  |                              |   | (.73 | )            |  |   | 16.95                                 | 
|Year ended 7/31/2010 |  |                                    | 14.03 |  |                                           |   | .73 |                                                                 |  |   | 1.35                             |  |  |                                         | 2.08 |  |                              |   | (.65 | )            |  |   | 15.46                                 | 
|Class 529-B:         |  |                                    |       |  |                                           |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|Year ended 7/31/2014 |  |                                    | 19.55 |  |                                           |   | .58 |                                                                 |  |   | 1.70                             |  |  |                                         | 2.28 |  |                              |   | (.47 | )            |  |   | 21.36                                 | 
|Year ended 7/31/2013 |  |                                    | 17.57 |  |                                           |   | .50 |                                                                 |  |   | 1.99                             |  |  |                                         | 2.49 |  |                              |   | (.51 | )            |  |   | 19.55                                 | 
|Year ended 7/31/2012 |  |                                    | 16.89 |  |                                           |   | .51 |                                                                 |  |   | .71                              |  |  |                                         | 1.22 |  |                              |   | (.54 | )            |  |   | 17.57                                 | 
|Year ended 7/31/2011 |  |                                    | 15.41 |  |                                           |   | .56 |                                                                 |  |   | 1.52                             |  |  |                                         | 2.08 |  |                              |   | (.60 | )            |  |   | 16.89                                 | 
|Year ended 7/31/2010 |  |                                    | 13.98 |  |                                           |   | .59 |                                                                 |  |   | 1.37                             |  |  |                                         | 1.96 |  |                              |   | (.53 | )            |  |   | 15.41                                 | 
|Class 529-C:         |  |                                    |       |  |                                           |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|Year ended 7/31/2014 |  |                                    | 19.53 |  |                                           |   | .59 |                                                                 |  |   | 1.69                             |  |  |                                         | 2.28 |  |                              |   | (.48 | )            |  |   | 21.33                                 | 
|Year ended 7/31/2013 |  |                                    | 17.56 |  |                                           |   | .50 |                                                                 |  |   | 1.99                             |  |  |                                         | 2.49 |  |                              |   | (.52 | )            |  |   | 19.53                                 | 
|Year ended 7/31/2012 |  |                                    | 16.89 |  |                                           |   | .51 |                                                                 |  |   | .71                              |  |  |                                         | 1.22 |  |                              |   | (.55 | )            |  |   | 17.56                                 | 
|Year ended 7/31/2011 |  |                                    | 15.41 |  |                                           |   | .56 |                                                                 |  |   | 1.53                             |  |  |                                         | 2.09 |  |                              |   | (.61 | )            |  |   | 16.89                                 | 
|Year ended 7/31/2010 |  |                                    | 13.99 |  |                                           |   | .60 |                                                                 |  |   | 1.35                             |  |  |                                         | 1.95 |  |                              |   | (.53 | )            |  |   | 15.41                                 | 
|Class 529-E:         |  |                                    |       |  |                                           |   |     |                                                                 |  |   |                                  |  |  |                                         |      |  |                              |   |      |              |  |   |                                       | 
|Year ended 7/31/2014 |  |                                    | 19.55 |  |                                           |   | .70 |                                                                 |  |   | 1.69                             |  |  |                                         | 2.39 |  |                              |   | (.59 | )            |  |   | 21.35                                 | 
|Year ended 7/31/2013 |  |                                    | 17.58 |  |                                           |   | .60 |                                                                 |  |   | 1.99                             |  |  |                                         | 2.59 |  |                              |   | (.62 | )            |  |   | 19.55                                 | 
|Year ended 7/31/2012 |  |                                    | 16.91 |  |                                           |   | .60 |                                                                 |  |   | .71                              |  |  |                                         | 1.31 |  |                              |   | (.64 | )            |  |   | 17.58                                 | 
|Year ended 7/31/2011 |  |                                    | 15.43 |  |                                           |   | .65 |                                                                 |  |   | 1.52                             |  |  |                                         | 2.17 |  |                              |   | (.69 | )            |  |   | 16.91                                 | 
|Year ended 7/31/2010 |  |                                    | 14.00 |  |                                           |   | .68 |                                                                 |  |   | 1.36                             |  |  |                                         | 2.04 |  |                              |   | (.61 | )            |  |   | 15.43                                 | 



|30 | The Income Fund of America
|-- | --------------------------









|                     |  |                                        |       |  | Income (loss) from investment operations1 |   |     |                                                                     |  |   |                                      |  |  |                                             |      |  |                                  |   |      |              |  |   |                                           | 
|-------------------- |  | -------------------------------------- | ----- |  | ----------------------------------------- | - | --- | ------------------------------------------------------------------- |  | - | ------------------------------------ |  |  | ------------------------------------------- | ---- |  | -------------------------------- | - | ---- | ------------ |  | - | ----------------------------------------- | 
|                     |  | Net asset value, beginning
    of year |       |  | Netinvestmentincome2                      |   |     | Net gains (losses) on
    securities (both realized and unrealized) |  |   | Total from investment
    operations |  |  | Dividends (from net
    investment  income) |      |  | Net asset value, end
    of year |   |      | Totalreturn3 |  |   | Net assets, end of year
    (in millions) | 
|Class 529-F-1:       |  |                                        |       |  |                                           |   |     |                                                                     |  |   |                                      |  |  |                                             |      |  |                                  |   |      |              |  |   |                                           | 
|Year ended 7/31/2014 |  | $                                      | 19.60 |  |                                           | $ | .80 |                                                                     |  | $ | 1.70                                 |  |  | $                                           | 2.50 |  |                                  | $ | (.69 | )            |  | $ | 21.41                                     | 
|Year ended 7/31/2013 |  |                                        | 17.63 |  |                                           |   | .69 |                                                                     |  |   | 1.98                                 |  |  |                                             | 2.67 |  |                                  |   | (.70 | )            |  |   | 19.60                                     | 
|Year ended 7/31/2012 |  |                                        | 16.95 |  |                                           |   | .68 |                                                                     |  |   | .72                                  |  |  |                                             | 1.40 |  |                                  |   | (.72 | )            |  |   | 17.63                                     | 
|Year ended 7/31/2011 |  |                                        | 15.46 |  |                                           |   | .73 |                                                                     |  |   | 1.53                                 |  |  |                                             | 2.26 |  |                                  |   | (.77 | )            |  |   | 16.95                                     | 
|Year ended 7/31/2010 |  |                                        | 14.03 |  |                                           |   | .76 |                                                                     |  |   | 1.35                                 |  |  |                                             | 2.11 |  |                                  |   | (.68 | )            |  |   | 15.46                                     | 
|Class R-1:           |  |                                        |       |  |                                           |   |     |                                                                     |  |   |                                      |  |  |                                             |      |  |                                  |   |      |              |  |   |                                           | 
|Year ended 7/31/2014 |  |                                        | 19.53 |  |                                           |   | .60 |                                                                     |  |   | 1.69                                 |  |  |                                             | 2.29 |  |                                  |   | (.49 | )            |  |   | 21.33                                     | 
|Year ended 7/31/2013 |  |                                        | 17.56 |  |                                           |   | .52 |                                                                     |  |   | 1.98                                 |  |  |                                             | 2.50 |  |                                  |   | (.53 | )            |  |   | 19.53                                     | 
|Year ended 7/31/2012 |  |                                        | 16.89 |  |                                           |   | .52 |                                                                     |  |   | .71                                  |  |  |                                             | 1.23 |  |                                  |   | (.56 | )            |  |   | 17.56                                     | 
|Year ended 7/31/2011 |  |                                        | 15.41 |  |                                           |   | .57 |                                                                     |  |   | 1.52                                 |  |  |                                             | 2.09 |  |                                  |   | (.61 | )            |  |   | 16.89                                     | 
|Year ended 7/31/2010 |  |                                        | 13.99 |  |                                           |   | .61 |                                                                     |  |   | 1.35                                 |  |  |                                             | 1.96 |  |                                  |   | (.54 | )            |  |   | 15.41                                     | 
|Class R-2:           |  |                                        |       |  |                                           |   |     |                                                                     |  |   |                                      |  |  |                                             |      |  |                                  |   |      |              |  |   |                                           | 
|Year ended 7/31/2014 |  |                                        | 19.45 |  |                                           |   | .60 |                                                                     |  |   | 1.68                                 |  |  |                                             | 2.28 |  |                                  |   | (.50 | )            |  |   | 21.23                                     | 
|Year ended 7/31/2013 |  |                                        | 17.49 |  |                                           |   | .52 |                                                                     |  |   | 1.98                                 |  |  |                                             | 2.50 |  |                                  |   | (.54 | )            |  |   | 19.45                                     | 
|Year ended 7/31/2012 |  |                                        | 16.82 |  |                                           |   | .52 |                                                                     |  |   | .71                                  |  |  |                                             | 1.23 |  |                                  |   | (.56 | )            |  |   | 17.49                                     | 
|Year ended 7/31/2011 |  |                                        | 15.35 |  |                                           |   | .57 |                                                                     |  |   | 1.51                                 |  |  |                                             | 2.08 |  |                                  |   | (.61 | )            |  |   | 16.82                                     | 
|Year ended 7/31/2010 |  |                                        | 13.93 |  |                                           |   | .60 |                                                                     |  |   | 1.35                                 |  |  |                                             | 1.95 |  |                                  |   | (.53 | )            |  |   | 15.35                                     | 
|Class R-3:           |  |                                        |       |  |                                           |   |     |                                                                     |  |   |                                      |  |  |                                             |      |  |                                  |   |      |              |  |   |                                           | 
|Year ended 7/31/2014 |  |                                        | 19.57 |  |                                           |   | .69 |                                                                     |  |   | 1.69                                 |  |  |                                             | 2.38 |  |                                  |   | (.58 | )            |  |   | 21.37                                     | 
|Year ended 7/31/2013 |  |                                        | 17.60 |  |                                           |   | .60 |                                                                     |  |   | 1.98                                 |  |  |                                             | 2.58 |  |                                  |   | (.61 | )            |  |   | 19.57                                     | 
|Year ended 7/31/2012 |  |                                        | 16.92 |  |                                           |   | .60 |                                                                     |  |   | .72                                  |  |  |                                             | 1.32 |  |                                  |   | (.64 | )            |  |   | 17.60                                     | 
|Year ended 7/31/2011 |  |                                        | 15.44 |  |                                           |   | .64 |                                                                     |  |   | 1.53                                 |  |  |                                             | 2.17 |  |                                  |   | (.69 | )            |  |   | 16.92                                     | 
|Year ended 7/31/2010 |  |                                        | 14.01 |  |                                           |   | .68 |                                                                     |  |   | 1.35                                 |  |  |                                             | 2.03 |  |                                  |   | (.60 | )            |  |   | 15.44                                     | 
|Class R-4:           |  |                                        |       |  |                                           |   |     |                                                                     |  |   |                                      |  |  |                                             |      |  |                                  |   |      |              |  |   |                                           | 
|Year ended 7/31/2014 |  |                                        | 19.61 |  |                                           |   | .76 |                                                                     |  |   | 1.70                                 |  |  |                                             | 2.46 |  |                                  |   | (.65 | )            |  |   | 21.42                                     | 
|Year ended 7/31/2013 |  |                                        | 17.63 |  |                                           |   | .66 |                                                                     |  |   | 1.99                                 |  |  |                                             | 2.65 |  |                                  |   | (.67 | )            |  |   | 19.61                                     | 
|Year ended 7/31/2012 |  |                                        | 16.95 |  |                                           |   | .65 |                                                                     |  |   | .72                                  |  |  |                                             | 1.37 |  |                                  |   | (.69 | )            |  |   | 17.63                                     | 
|Year ended 7/31/2011 |  |                                        | 15.46 |  |                                           |   | .70 |                                                                     |  |   | 1.53                                 |  |  |                                             | 2.23 |  |                                  |   | (.74 | )            |  |   | 16.95                                     | 
|Year ended 7/31/2010 |  |                                        | 14.03 |  |                                           |   | .72 |                                                                     |  |   | 1.36                                 |  |  |                                             | 2.08 |  |                                  |   | (.65 | )            |  |   | 15.46                                     | 
|Class R-5:           |  |                                        |       |  |                                           |   |     |                                                                     |  |   |                                      |  |  |                                             |      |  |                                  |   |      |              |  |   |                                           | 
|Year ended 7/31/2014 |  |                                        | 19.64 |  |                                           |   | .82 |                                                                     |  |   | 1.70                                 |  |  |                                             | 2.52 |  |                                  |   | (.71 | )            |  |   | 21.45                                     | 
|Year ended 7/31/2013 |  |                                        | 17.66 |  |                                           |   | .71 |                                                                     |  |   | 1.99                                 |  |  |                                             | 2.70 |  |                                  |   | (.72 | )            |  |   | 19.64                                     | 
|Year ended 7/31/2012 |  |                                        | 16.97 |  |                                           |   | .70 |                                                                     |  |   | .73                                  |  |  |                                             | 1.43 |  |                                  |   | (.74 | )            |  |   | 17.66                                     | 
|Year ended 7/31/2011 |  |                                        | 15.48 |  |                                           |   | .75 |                                                                     |  |   | 1.53                                 |  |  |                                             | 2.28 |  |                                  |   | (.79 | )            |  |   | 16.97                                     | 
|Year ended 7/31/2010 |  |                                        | 14.04 |  |                                           |   | .77 |                                                                     |  |   | 1.37                                 |  |  |                                             | 2.14 |  |                                  |   | (.70 | )            |  |   | 15.48                                     | 
|Class R-6:           |  |                                        |       |  |                                           |   |     |                                                                     |  |   |                                      |  |  |                                             |      |  |                                  |   |      |              |  |   |                                           | 
|Year ended 7/31/2014 |  |                                        | 19.65 |  |                                           |   | .83 |                                                                     |  |   | 1.70                                 |  |  |                                             | 2.53 |  |                                  |   | (.72 | )            |  |   | 21.46                                     | 
|Year ended 7/31/2013 |  |                                        | 17.66 |  |                                           |   | .72 |                                                                     |  |   | 2.00                                 |  |  |                                             | 2.72 |  |                                  |   | (.73 | )            |  |   | 19.65                                     | 
|Year ended 7/31/2012 |  |                                        | 16.98 |  |                                           |   | .71 |                                                                     |  |   | .72                                  |  |  |                                             | 1.43 |  |                                  |   | (.75 | )            |  |   | 17.66                                     | 
|Year ended 7/31/2011 |  |                                        | 15.49 |  |                                           |   | .76 |                                                                     |  |   | 1.52                                 |  |  |                                             | 2.28 |  |                                  |   | (.79 | )            |  |   | 16.98                                     | 
|Year ended 7/31/2010 |  |                                        | 14.05 |  |                                           |   | .79 |                                                                     |  |   | 1.35                                 |  |  |                                             | 2.14 |  |                                  |   | (.70 | )            |  |   | 15.49                                     | 



|1 | Based on average shares outstanding.                                                                                                                                                                                                                                                                                                                                                                                                        
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2 | For the year ended July 31, 2014, this column reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class A net investment income per share and ratio of net income to average net assets would have been lower by $.11 and .51 percentage points, respectively. The impact to the other share classes would have been similar.
|3 | Total returns exclude any applicable sales charges, including contingent deferred sales charges.                                                                                                                                                                                                                                                                                                                                            



|                                              |  | Year ended July 31
|--------------------------------------------- |  | ------------------
|                                              |  | 2014              
|Portfolio turnover rate for all share classes |  |                   



See Notes to Financial Statements



|The Income Fund of America | 31
|-------------------------- | --







Report of Independent Registered Public Accounting Firm





To the Shareholders
and Board of Trustees of The Income Fund of America:



We have audited
the accompanying statement of assets and liabilities of The Income Fund of America (the “Fund”), including the investment
portfolio and the summary investment portfolio, as of July 31, 2014, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights
for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.



We conducted
our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a
basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. Our procedures included confirmation of securities owned as of July 31, 2014 correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide
a reasonable basis for our opinion.



In our opinion,
such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position
of The Income Fund of America as of July 31, 2014, the results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in
conformity with accounting principles generally accepted in the United States of America.



DELOITTE &
TOUCHE LLP

Costa Mesa,
California

September
10, 2014



















The Income Fund of America



Part C

Other Information





Item 28.	Exhibits for Registration Statement(1940
Act No. 811-01880 and 1933 Act. No. 002-33371)



| | (a) | Articles of Incorporation – Certificate of Trust dated 8/20/09 – previously
filed (see P/E Amendment No. 70 filed 9/30/10); Amended and Restated Agreement and Declaration of Trust dated 12/6/12 – previously
filed (see P/E Amendment No. 75 filed 9/30/13); and Certificate of Establishment and Designation of Class R-2E Shares – previously
filed (see P/E Amendment No. 77 filed 8/28/14)
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | By-laws – By-laws – previously filed (see P/E Amendment No. 70 filed 9/30/10)
| | --- | -----------------------------------------------------------------------------



| | (c) | Instruments Defining Rights of Security Holders – Form of Share Certificate –
previously filed (see P/E Amendment No. 55 filed 3/8/01)
| | --- | --------------------------------------------------------------------------------------------------------------------------------------



| | (d) | Investment Advisory Contracts– Investment Advisory and Service Agreement dated 10/1/10
– previously filed (see P/E Amendment No. 70 filed 9/30/10)
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------



| | (e) | Underwriting Contracts– Form of Amended and Restated Principal Underwriting Agreement
effective 8/29/14 – previously filed (see P/E Amendment No. 77 filed 8/28/14); Form of Selling Group Agreement – previously
filed (see P/E Amendment No. 77 filed 8/28/14); Form of Bank/Trust Company Selling Group Agreement – previously filed (see
P/E Amendment No. 77 filed 8/28/14); Form of Class F Share Participation Agreement – previously filed (see P/E Amendment
No. 77 filed 8/28/14); and Form of Bank/Trust Company Participation Agreement for Class F Shares – previously filed (see
P/E Amendment No. 77 filed 8/28/14)
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (f) | Bonus or Profit Sharing Contracts – Deferred Compensation Plan effective 3/21/13 –
previously filed (see P/E Amendment No. 75 filed 9/30/13)
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------



| | (g) | Custodian Agreements – Form of Global Custody Agreement dated 12/21/06 – previously
filed (see P/E Amendment No. 64 filed 9/28/07)
| | --- | ----------------------------------------------------------------------------------------------------------------------------------



| | (h) | Other Material Contracts – Form of Indemnification Agreement – previously filed
(see P/E Amendment No. 70 filed 9/30/10); Form of Agreement and Plan of Reorganization dated 8/24/09 – previously filed (see
P/E Amendment No. 70 filed 9/30/10); Form of Amended and Restated Shareholder Services Agreement dated 8/29/14 – previously
filed (see P/E Amendment No. 77 filed 8/28/14); and Form of Amended and Restated Administrative Services Agreement dated 8/29/14
– previously filed (see P/E Amendment No. 77 filed 8/28/14)
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i) | Legal Opinion – Legal Opinion – previously filed (see P/E Amendment No.
                                                           70 filed 9/30/10; P/E Amendment No. 77 filed 8/28/14)
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (j) | Other Opinions– Consent of Independent Registered Public Accounting Firm
| | --- | ------------------------------------------------------------------------



(k)	Omitted financial statements -
none



| | (l) | Initial capital agreements - not applicable to this filing
| | --- | ----------------------------------------------------------









| | (m) | Rule 12b-1 Plan – Forms of Plans of Distribution for Class A, B, C, F-1, 529-A, 529-B,
529-C, 529-E, 529-F-1, R-1, R-2, R-3 and R-4 shares dated 10/1/10 – previously filed (see P/E Amendment No. 70 filed 9/30/10);
and Form of Plan of Distribution for Class shares R-2E dated 8/29/14 – previously filed (see P/E Amendment No. 77 filed 8/28/14)
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (n) | Rule 18f-3 Plan – Form of Amended and Restated Multiple Class Plan dated 8/29/14 –
previously filed (see P/E Amendment No. 77 filed 8/28/14)
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------



(o)	       Reserved



| | (p) | Code of Ethics – Code of Ethics for The Capital Group Companies dated June 2014; and
Code of Ethics for Registrant
| | --- | ------------------------------------------------------------------------------------------------------------------





Item 29.	Persons Controlled by or under
Common Control with the Fund



None





Item 30.	Indemnification



The Registrant is a joint-insured
under Investment Adviser/Mutual Fund Errors and Omissions Policies, which insure its officers and trustees against certain liabilities.
However, in no event will Registrant maintain insurance to indemnify any such person for any act for which Registrant itself is
not permitted to indemnify the individual.



Article 8 of the Registrant’s
Declaration of Trust as well as the indemnification agreements that the Registrant has entered into with each of its trustees who
is not an “interested person” of the Registrant (as defined under the Investment Company Act of 1940, as amended),
provide in effect that the Registrant will indemnify its officers and trustees against any liability or expenses actually and reasonably
incurred by such person in any proceeding arising out of or in connection with his or her service to the Registrant, to the fullest
extent permitted by applicable law, subject to certain conditions. In accordance with Section 17(h) and 17(i) of the Investment
Company Act of 1940, as amended, and their respective terms, these provisions do not protect any person against any liability to
the Registrant or its shareholders to which such person would otherwise be subject by reason of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties involved in the conduct of his or her office.



Insofar as indemnification
for liability arising under the Securities Act of 1933 may be permitted to trustees, officers and controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the U.S. Securities
and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a trustee, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding)
is asserted by such trustee, officer or controlling person in connection with the securities being registered, the Registrant will,
unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final
adjudication of such issue.









Registrant will comply with
the indemnification requirements contained in the Investment Company Act of 1940, as amended, and Release Nos. 7221 (June 9, 1972)
and 11330 (September 4, 1980).





Item 31.	Business and Other Connections
of the Investment Adviser



None





Item 32.	Principal Underwriters



(a) 	American Funds Distributors,
Inc. is the Principal Underwriter of shares of: AMCAP Fund, American Balanced Fund, American Funds College Target Date Series,
American Funds Corporate Bond Fund, American Funds Developing World Growth and Income Fund, American Funds Fundamental Investors,
American Funds Global Balanced Fund, American Funds Global High-Income Opportunities Fund, The American Funds Income Series, American
Funds Inflation Linked Bond Fund; American Funds Money Market Fund, American Funds Mortgage Fund, American Funds Portfolio Series,
American Funds Short-Term Tax-Exempt Bond Fund, American Funds Target Date Retirement Series, American Funds Tax-Exempt Fund of
New York, The American Funds Tax-Exempt Series I, The American Funds Tax-Exempt Series II, American High-Income Municipal
Bond Fund, American High-Income Trust, American Mutual Fund, The Bond Fund of America, Capital Group Emerging Markets Total Opportunities
Fund, Capital Income Builder, Capital Group Private Client Services Funds, Capital World Bond Fund, Capital World Growth and Income
Fund, Emerging Markets Growth Fund, Inc., EuroPacific Growth Fund, The Growth Fund of America, The Income Fund of America, Intermediate
Bond Fund of America, International Growth and Income Fund, The Investment Company of America, Limited Term Tax-Exempt Bond
Fund of America, The New Economy Fund, New Perspective Fund, New World Fund, Inc., Short-Term Bond Fund of America, SMALLCAP World
Fund, Inc., The Tax-Exempt Bond Fund of America and Washington Mutual Investors Fund



(b)



|    | (1)
        Name and Principal
        Business Address | (2)
        Positions and Offices
        with Underwriter                      | (3)
        Positions and Offices
        with Registrant
|--- | ------------------------------------------------------- | ------------------------------------------------------------------------------- | ---------------------------------------------------------
|LAO | Raymond Ahn                                             | Vice President                                                                  | None                                                     
|IRV | Laurie M. Allen                                         | Director and Senior Vice President                                              | None                                                     
|LAO | William C. Anderson                                     | Director, Senior Vice President and Director of Investment Services             | None                                                     
|LAO | Dion T. Angelopoulos                                    | Assistant Vice President                                                        | None                                                     
|LAO | Curtis A. Baker                                         | Senior Vice President, Capital Group Institutional Investment Services Division | None                                                     









|LAO | T. Patrick Bardsley     | Vice President                                                                  | None
|--- | ----------------------- | ------------------------------------------------------------------------------- | ----
|LAO | Shakeel A. Barkat       | Senior Vice President                                                           | None
|LAO | Brad A. Barrett         | Director                                                                        | None
|IRV | Carl R. Bauer           | Vice President                                                                  | None
|LAO | Brett A. Beach          | Assistant Vice President                                                        | None
|LAO | Jerry R. Berg           | Regional Vice President                                                         | None
|LAO | Joseph W. Best, Jr.     | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Roger J. Bianco, Jr.    | Vice President                                                                  | None
|LAO | Ryan M. Bickle          | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | John A. Blanchard       | Senior Vice President                                                           | None
|LAO | Marek Blaskovic         | Regional Vice President                                                         | None
|LAO | Gerard M. Bockstie, Jr. | Director and Senior Vice President                                              | None
|LAO | Jill M. Boudreau        | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Andre W. Bouvier        | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Michael A. Bowman       | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Bill Brady              | Director and Senior Vice President                                              | None
|IRV | Jason E. Brady          | Regional Vice President                                                         | None
|LAO | Mick L. Brethower       | Senior Vice President                                                           | None
|LAO | C. Alan Brown           | Vice President                                                                  | None









|LAO | E. Chapman Brown, Jr. | Regional Vice President                                                         | None
|--- | --------------------- | ------------------------------------------------------------------------------- | ----
|LAO | Toni L. Brown         | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Gary D. Bryce         | Regional Vice President                                                         | None
|LAO | Sheryl M. Burford     | Assistant Vice President                                                        | None
|LAO | Ronan J. Burke        | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Steven Calabria       | Vice President                                                                  | None
|LAO | Thomas E. Callahan    | Vice President                                                                  | None
|LAO | Anthony J. Camilleri  | Regional Vice President                                                         | None
|SNO | Susan H. Campbell     | Vice President                                                                  | None
|LAO | Damian F. Carroll     | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | James D. Carter       | Vice President                                                                  | None
|LAO | Stephen L. Caruthers  | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Brian C. Casey        | Senior Vice President                                                           | None
|LAO | Christopher J. Cassin | Senior Vice President                                                           | None
|LAO | Craig L. Castner      | Regional Vice President                                                         | None
|LAO | Christopher M. Cefalo | Regional Vice President                                                         | None
|LAO | David D. Charlton     | Director, Senior Vice President and Director of Marketing                       | None
|LAO | Thomas M. Charon      | Senior Vice President                                                           | None
|LAO | Wellington Choi       | Senior Vice President, Capital Group Institutional Investment Services Division | None









|LAO | Paul A. Cieslik           | Vice President                                                                                                                 | None
|--- | ------------------------- | ------------------------------------------------------------------------------------------------------------------------------ | ----
|LAO | Andrew R. Claeson         | Regional Vice President                                                                                                        | None
|LAO | Kevin G. Clifford         | Director, Chairman, President and Chief Executive Officer; President, Capital Group Institutional Investment Services Division | None
|LAO | Ruth M. Collier           | Senior Vice President                                                                                                          | None
|IND | Timothy J. Colvin         | Regional Vice President                                                                                                        | None
|LAO | Christopher M. Conwell    | Vice President                                                                                                                 | None
|LAO | C. Jeffrey Cook           | Senior Vice President, Capital Group Institutional Investment Services Division                                                | None
|LAO | Charles H. Cote           | Vice President                                                                                                                 | None
|LAO | Joseph G. Cronin          | Vice President                                                                                                                 | None
|LAO | D. Erick Crowdus          | Vice President                                                                                                                 | None
|LAO | Katherine Randall Danella | Vice President                                                                                                                 | None
|LAO | Brian M. Daniels          | Vice President                                                                                                                 | None
|LAO | William F. Daugherty      | Senior Vice President                                                                                                          | None
|LAO | Shane L. Davis            | Regional Vice President                                                                                                        | None
|LAO | Peter J. Deavan           | Vice President                                                                                                                 | None
|LAO | Guy E. Decker             | Senior Vice President                                                                                                          | None
|LAO | Renee A. Degner           | Regional Vice President                                                                                                        | None
|LAO | Daniel J. Delianedis      | Senior Vice President                                                                                                          | None
|LAO | Stephen Deschenes         | Senior Vice President, Capital Group Institutional Investment Services Division                                                | None
|LAO | Mario P. DiVito           | Vice President, Capital Group Institutional Investment Services Division                                                       | None









|LAO | Joanne H. Dodd      | Senior Vice President, Capital Group Institutional Investment Services Division | None
|--- | ------------------- | ------------------------------------------------------------------------------- | ----
|LAO | Kevin F. Dolan      | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Michael J. Downer   | Director                                                                        | None
|LAO | John J. Doyle       | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Ryan T. Doyle       | Regional Vice President                                                         | None
|LAO | Craig Duglin        | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Alan J. Dumas       | Regional Vice President                                                         | None
|LAO | Bryan K. Dunham     | Regional Vice President                                                         | None
|LAO | John E. Dwyer IV    | Senior Vice President, Capital Group Institutional Investment Services Division | None
|IND | Karyn B. Dzurisin   | Regional Vice President                                                         | None
|LAO | Kevin C. Easley     | Regional Vice President                                                         | None
|LAO | Damian Eckstein     | Regional Vice President                                                         | None
|LAO | Timothy L. Ellis    | Senior Vice President                                                           | None
|LAO | John M. Fabiano     | Regional Vice President                                                         | None
|LAO | E. Luke Farrell     | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Mark A. Ferraro     | Regional Vice President                                                         | None
|LAO | Lorna Fitzgerald    | Vice President                                                                  | None
|LAO | William F. Flannery | Senior Vice President                                                           | None
|LAO | David R. Ford       | Regional Vice President                                                         | None









|SFO | Cheryl E. Frank        | Director                                                                        | None
|--- | ---------------------- | ------------------------------------------------------------------------------- | ----
|LAO | Charles L. Freadhoff   | Vice President                                                                  | None
|LAO | Daniel B. Frick        | Senior Vice President                                                           | None
|SNO | Arturo V. Garcia, Jr.  | Assistant Vice President                                                        | None
|LAO | J. Gregory Garrett     | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Brian K. Geiger        | Regional Vice President                                                         | None
|LAO | Jacob M. Gerber        | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | J. Christopher Gies    | Senior Vice President                                                           | None
|LAO | Pamela A. Gillett      | Regional Vice President                                                         | None
|LAO | Robert E. Greeley, Jr. | Regional Vice President                                                         | None
|LAO | Jeffrey J. Greiner     | Senior Vice President                                                           | None
|LAO | Eric M. Grey           | Senior Vice President                                                           | None
|LAO | E. Renee Grimm         | Regional Vice President                                                         | None
|IRV | Steven Guida           | Director and Senior Vice President                                              | None
|IRV | DeAnn C. Haley         | Assistant Vice President                                                        | None
|IND | Thomas P. Halloran     | Regional Vice President                                                         | None
|LAO | Dale K. Hanks          | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | David R. Hanna         | Regional Vice President                                                         | None
|LAO | Derek S. Hansen        | Vice President                                                                  | None
|LAO | John R. Harley         | Senior Vice President                                                           | None









|LAO | Calvin L. Harrelson III | Senior Vice President, Capital Group Institutional Investment Services Division | None
|--- | ----------------------- | ------------------------------------------------------------------------------- | ----
|LAO | Robert J. Hartig, Jr.   | Senior Vice President                                                           | None
|LAO | Craig W. Hartigan       | Vice President                                                                  | None
|LAO | David F. Holstein       | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Heidi Horwitz-Marcus    | Director and Senior Vice President                                              | None
|LAO | Frederic J. Huber       | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | David K. Hummelberg     | Director, Senior Vice President, Treasurer and Controller                       | None
|LAO | Jeffrey K. Hunkins      | Regional Vice President                                                         | None
|LAO | Marc Ialeggio           | Vice President                                                                  | None
|IND | David K. Jacocks        | Assistant Vice President                                                        | None
|LAO | W. Chris Jenkins        | Vice President                                                                  | None
|LAO | Daniel J. Jess II       | Regional Vice President                                                         | None
|IND | Jameel S. Jiwani        | Regional Vice President                                                         | None
|LAO | Brendan M. Jonland      | Regional Vice President                                                         | None
|LAO | David G. Jordt          | Regional Vice President                                                         | None
|LAO | Stephen T. Joyce        | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Marc J. Kaplan          | Vice President                                                                  | None
|LAO | John P. Keating         | Senior Vice President                                                           | None
|LAO | Brian G. Kelly          | Senior Vice President                                                           | None









|LAO | Christopher J. Kennedy    | Regional Vice President                                                         | None
|--- | ------------------------- | ------------------------------------------------------------------------------- | ----
|LAO | Ryan C. Kidwell           | Vice President                                                                  | None
|LAO | Christopher W. Kilroy     | Senior Vice President                                                           | None
|LAO | Charles A. King           | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Mark Kistler              | Vice President                                                                  | None
|NYO | Dorothy Klock             | Senior Vice President                                                           | None
|LAO | Stephen J. Knutson        | Assistant Vice President                                                        | None
|IRV | Elizabeth K. Koster       | Vice President                                                                  | None
|SNO | David D. Kuncho           | Assistant Vice President                                                        | None
|LAO | Richard M. Lang           | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Christopher F. Lanzafame  | Vice President                                                                  | None
|IRV | Laura Lavery              | Vice President                                                                  | None
|LAO | R. Andrew LeBlanc         | Senior Vice President                                                           | None
|LAO | Matthew N. Leeper         | Regional Vice President                                                         | None
|LAO | Clay M. Leveritt          | Regional Vice President                                                         | None
|LAO | Lorin E. Liesy            | Vice President                                                                  | None
|LAO | Louis K. Linquata         | Senior Vice President                                                           | None
|LAO | Donald S. MacQuattie, Jr. | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | James M. Maher            | Regional Vice President                                                         | None
|LAO | Brendan T. Mahoney        | Senior Vice President                                                           | None
|LAO | Nathan G. Mains           | Vice President                                                                  | None
|LAO | Mark A. Marinella         | Senior Vice President                                                           | None









|LAO | Dana C. McCollum        | Vice President                                                                  | None
|--- | ----------------------- | ------------------------------------------------------------------------------- | ----
|LAO | Joseph A. McCreesh, III | Vice President                                                                  | None
|LAO | Ross M. McDonald        | Regional Vice President                                                         | None
|LAO | Timothy W. McHale       | Secretary                                                                       | None
|LAO | Max J. McQuiston        | Regional Vice President                                                         | None
|LAO | Scott M. Meade          | Senior Vice President                                                           | None
|LAO | David A. Merrill        | Assistant Vice President                                                        | None
|LAO | William C. Miller, Jr.  | Senior Vice President                                                           | None
|LAO | William T. Mills        | Vice President                                                                  | None
|LAO | Sean C. Minor           | Regional Vice President                                                         | None
|LAO | James R. Mitchell III   | Vice President                                                                  | None
|LAO | Charles L. Mitsakos     | Senior Vice President                                                           | None
|LAO | Ryan D. Moore           | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Steven A. Moreno        | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | David H. Morrison       | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Andrew J. Moscardini    | Senior Vice President, Capital Group Institutional Investment Services Division | None
|NYO | Timothy J. Murphy       | Vice President                                                                  | None
|LAO | Jon Christian Nicolazzo | Vice President                                                                  | None
|LAO | Earnest M. Niemi        | Regional Vice President                                                         | None
|LAO | William E. Noe          | Senior Vice President                                                           | None









|LAO | Matthew P. O’Connor     | Director and Executive Vice President; Senior Vice President, Capital Group Institutional Investment Services Division | None
|--- | ----------------------- | ---------------------------------------------------------------------------------------------------------------------- | ----
|LAO | Jonathan H. O’Flynn     | Vice President                                                                                                         | None
|LAO | Peter A. Olsen          | Regional Vice President                                                                                                | None
|LAO | Jeffrey A. Olson        | Vice President                                                                                                         | None
|LAO | Thomas A. O’Neil        | Vice President                                                                                                         | None
|LAO | Gregory H. Ortman       | Vice President, Capital Group Institutional Investment Services Division                                               | None
|LAO | Shawn M. O’Sullivan     | Vice President                                                                                                         | None
|IND | Lance T. Owens          | Regional Vice President                                                                                                | None
|LAO | Rodney Dean Parker II   | Regional Vice President                                                                                                | None
|LAO | Lynn M. Patrick         | Vice President, Capital Group Institutional Investment Services Division                                               | None
|LAO | W. Burke Patterson, Jr. | Senior Vice President                                                                                                  | None
|LAO | Gary A. Peace           | Senior Vice President                                                                                                  | None
|LAO | Robert J. Peche         | Vice President, Capital Group Institutional Investment Services Division                                               | None
|LAO | David K. Petzke         | Senior Vice President                                                                                                  | None
|IRV | John H. Phelan, Jr.     | Director                                                                                                               | None
|IND | Mary E. Phillips        | Assistant Vice President                                                                                               | None
|LAO | Joseph M. Piccolo       | Regional Vice President                                                                                                | None
|LAO | Keith A. Piken          | Vice President                                                                                                         | None
|LAO | John Pinto              | Vice President, Capital Group Institutional Investment Services Division                                               | None









|LAO | Carl S. Platou       | Senior Vice President                                                           | None
|--- | -------------------- | ------------------------------------------------------------------------------- | ----
|LAO | David T. Polak       | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Charles R. Porcher   | Vice President                                                                  | None
|SNO | Richard P. Prior     | Senior Vice President                                                           | None
|LAO | Steven J. Quagrello  | Vice President                                                                  | None
|LAO | Mike Quinn           | Senior Vice President                                                           | None
|LAO | James R. Raker       | Vice President, Capital Group Institutional Investment Services Division        | None
|SNO | John P. Raney        | Vice President                                                                  | None
|LAO | James P. Rayburn     | Vice President                                                                  | None
|LAO | Rene M. Reincke      | Vice President                                                                  | None
|LAO | Jeffrey Robinson     | Vice President                                                                  | None
|LAO | Matthew M. Robinson  | Regional Vice President                                                         | None
|LAO | Thomas W. Rose       | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Suzette M. Rothberg  | Senior Vice President                                                           | None
|LAO | James F. Rothenberg  | Director                                                                        | None
|LAO | Romolo D. Rottura    | Senior Vice President                                                           | None
|LAO | Shane A. Russell     | Regional Vice President                                                         | None
|LAO | William M. Ryan      | Vice President                                                                  | None
|LAO | Christopher M. Ryder | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Dean B. Rydquist     | Director, Senior Vice President and Chief Compliance Officer                    | None









|IND | Brenda S. Rynski      | Regional Vice President                                                         | None                 
|--- | --------------------- | ------------------------------------------------------------------------------- | ---------------------
|LAO | Richard A. Sabec, Jr. | Senior Vice President                                                           | None                 
|LAO | Paul V. Santoro       | Senior Vice President                                                           | None                 
|LAO | Keith A. Saunders     | Regional Vice President                                                         | None                 
|LAO | Joseph D. Scarpitti   | Senior Vice President                                                           | None                 
|IRV | MaryAnn Scarsone      | Assistant Vice President                                                        | None                 
|LAO | Mark A. Seaman        | Senior Vice President, Capital Group Institutional Investment Services Division | None                 
|LAO | James J. Sewell III   | Senior Vice President                                                           | None                 
|LAO | Arthur M. Sgroi       | Senior Vice President                                                           | None                 
|LAO | Brad Short            | Vice President                                                                  | None                 
|LAO | Nathan W. Simmons     | Vice President                                                                  | None                 
|LAO | Connie F. Sjursen     | Vice President                                                                  | None                 
|LAO | Jerry L. Slater       | Senior Vice President                                                           | None                 
|LAO | Melissa A. Sloane     | Regional Vice President                                                         | None                 
|LAO | Matthew Smith         | Assistant Vice President                                                        | None                 
|SNO | Stacy D. Smolka       | Vice President                                                                  | None                 
|LAO | J. Eric Snively       | Vice President                                                                  | None                 
|LAO | Therese L. Soullier   | Vice President                                                                  | None                 
|LAO | Kristen J. Spazafumo  | Vice President                                                                  | None                 
|LAO | Mark D. Steburg       | Senior Vice President                                                           | None                 
|LAO | Michael P. Stern      | Senior Vice President                                                           | None                 
|LAO | Andrew J. Strandquist | Regional Vice President                                                         | None                 
|NYO | Andrew B. Suzman      | Director                                                                        | Senior Vice President
|LAO | Gary J. Thoma         | Senior Vice President                                                           | None                 









|LAO | John B. Thomas          | Vice President                                                                  | None
|--- | ----------------------- | ------------------------------------------------------------------------------- | ----
|LAO | Cynrthia M. Thompson    | Senior Vice President, Capital Group Institutional Investment Services Division | None
|HRO | Stephen B. Thompson     | Regional Vice President                                                         | None
|LAO | Mark R. Threlfall       | Vice President                                                                  | None
|IND | James P. Toomey         | Vice President                                                                  | None
|LAO | Luke N. Trammell        | Vice President                                                                  | None
|IND | Christopher E. Trede    | Vice President                                                                  | None
|LAO | Jordan A. Trevino       | Regional Vice President                                                         | None
|LAO | Shaun C. Tucker         | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | David E. Unanue         | Senior Vice President                                                           | None
|LAO | Scott W. Ursin-Smith    | Senior Vice President                                                           | None
|LAO | Patrick D. Vance        | Regional Vice President                                                         | None
|SNO | Cindy Vaquiax           | Vice President                                                                  | None
|LAO | Srinkanth Vemuri        | Vice President                                                                  | None
|LAO | Spilios Venetsanopoulos | Regional Vice President                                                         | None
|LAO | J. David Viale          | Senior Vice President                                                           | None
|LAO | Robert D. Vigneaux III  | Vice President, Capital Group Institutional Investment Services Division        | None
|DCO | Bradley J. Vogt         | Director                                                                        | None
|LAO | Todd R. Wagner          | Senior Vice President, Capital Group Institutional Investment Services Division | None









|LAO | Jon N. Wainman      | Regional Vice President                                                         | None
|--- | ------------------- | ------------------------------------------------------------------------------- | ----
|LAO | Sherrie S. Walling  | Assistant Vice President                                                        | None
|SNO | Chris L. Wammack    | Vice President                                                                  | None
|LAO | Matthew W. Ward     | Regional Vice President                                                         | None
|LAO | Thomas E. Warren    | Senior Vice President                                                           | None
|LAO | George J. Wenzel    | Senior Vice President                                                           | None
|LAO | Jason M. Weybrecht  | Vice President, Capital Group Institutional Investment Services Division        | None
|LAO | Adam B. Whitehead   | Regional Vice President                                                         | None
|LAO | N. Dexter Williams  | Senior Vice President, Capital Group Institutional Investment Services Division | None
|LAO | Steven C. Wilson    | Vice President                                                                  | None
|LAO | Steven Wilson       | Vice President                                                                  | None
|LAO | Kurt A. Wuestenberg | Senior Vice President                                                           | None
|LAO | Jason P. Young      | Senior Vice President                                                           | None
|LAO | Jonathan A. Young   | Senior Vice President                                                           | None
|LAO | Raul Zarco, Jr.     | Vice President, Capital Group Institutional Investment Services Division        | None



__________

|DCO   | Business Address, 3000 K Street N.W., Suite 230, Washington, DC 20007-5140      
|----- | --------------------------------------------------------------------------------
|GVO-1 | Business Address, 3 Place des Bergues, 1201 Geneva, Switzerland                 
|HRO   | Business Address, 5300 Robin Hood Road, Norfolk, VA 23513                       
|IND   | Business Address, 12811 North Meridian Street, Carmel, IN 46032                 
|IRV   | Business Address, 6455 Irvine Center Drive, Irvine, CA 92618                    
|LAO   | Business Address, 333 South Hope Street, Los Angeles, CA  90071                 
|LAO-W | Business Address, 11100 Santa Monica Blvd., 15th Floor, Los Angeles, CA  90025  
|NYO   | Business Address, 630 Fifth Avenue, 36th Floor, New York, NY 10111              
|SFO   | Business Address, One Market, Steuart Tower, Suite 2000, San Francisco, CA 94105
|SNO   | Business Address, 3500 Wiseman Boulevard, San Antonio, TX  78251                



(c)	None







Item 33.	Location of Accounts and Records



Accounts, books and other
records required by Rules 31a-1 and 31a-2 under the Investment Company Act of 1940, as amended, are maintained and kept in the
offices of the Registrant’s investment adviser, Capital Research and Management Company, 333 South Hope Street,
Los Angeles, California 90071; 6455 Irvine Center Drive, Irvine, California 92618; and/or 5300 Robin Hood Road, Norfolk,
Virginia 23513.



Registrant’s records
covering shareholder accounts are maintained and kept by its transfer agent, American Funds Service Company,
6455 Irvine Center Drive, Irvine, California 92618;12811 North Meridian Street, Carmel, Indiana 46032; 14636 North Scottsdale
Road, Scottsdale, Arizona 85254; 3500 Wiseman Boulevard, San Antonio, Texas 78251; and 5300 Robin Hood Road, Norfolk, VA 23513.



Registrant’s records
covering portfolio transactions are maintained and kept by its custodian, JPMorgan Chase Bank, N.A., 270 Park Avenue, New York,
New York 10017-2070.





Item 34.	Management Services



None





Item 35.	Undertakings



None











SIGNATURES



Pursuant to the requirements
of the Securities Act of 1933 and the Investment Company Act of 1940 the Registrant certifies that it meets all of the requirements
for effectiveness of this Registration Statement under Rule 485(b) under the Securities Act of 1933 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, duly authorized, in the City and County of San Francisco, and State of
California on the 29th day of September, 2014.





THE INCOME FUND OF AMERICA



By: /s/ Michael W. Stockton

(Michael W. Stockton, Secretary)



Pursuant to the requirements
of the Securities Act of 1933, this Registration Statement has been signed below on September 29, 2014, by the following persons
in the capacities indicated.



|    | Signature                                                             | Title                                                
|--- | --------------------------------------------------------------------- | -----------------------------------------------------
|(1) | Principal Executive Officer:                                          |                                                      
|    | /s/ Hilda L. Applbaum                                                 | Vice Chairman of the Board                           
|    | (Hilda L. Applbaum)                                                   |                                                      
|    |                                                                       |                                                      
|(2) | Principal Financial Officer and Principal Accounting Officer:         |                                                      
|    | /s/ Jeffrey P. Regal                                                  | Treasurer                                            
|    | (Jeffrey P. Regal)                                                    |                                                      
|    |                                                                       |                                                      
|(3) | Trustees:                                                             |                                                      
|    |                                                                       |                                                      
|    | /s/ Hilda L. Applbaum                                                 | Vice Chairman of the Board                           
|    | (Hilda L. Applbaum)                                                   |                                                      
|    |                                                                       |                                                      
|    | William H. Baribault*                                                 | Trustee                                              
|    | Vanessa C. L. Chang*                                                  | Trustee                                              
|    | Linda Griego*                                                         | Trustee                                              
|    | Leonade D. Jones*                                                     | Trustee                                              
|    | William D. Jones*                                                     | Trustee                                              
|    | James J. Postl*                                                       | Trustee                                              
|    | Margaret Spellings*                                                   | Trustee                                              
|    | Isaac Stein*                                                          | Chairman of the Board (Independent and Non-Executive)
|    | *By:/s/ Michael W. Stockton                                           |                                                      
|    | (Michael W. Stockton, pursuant to a power of attorney filed herewith)
|    |                                                                       |                                                      



Counsel represents that the
amendment does not contain disclosures that would make the amendment ineligible for effectiveness under the provisions of Rule
485(b).



/s/ Rachel V. Nass

(Rachel V. Nass, Counsel)









POWER OF ATTORNEY



I, William H. Baribault, the undersigned Board
member of the following registered investment companies (collectively, the “Funds”):



| | - | American Balanced Fund (File No. 002-10758, File No. 811-00066)
| | - | ---------------------------------------------------------------

| | - | American Funds College Target Date Series (File No. 333-180729, File No. 811-22692)
| | - | -----------------------------------------------------------------------------------

| | - | American Funds Corporate Bond Fund (File No. 333-183929, File No. 811-22744)
| | - | ----------------------------------------------------------------------------

| | - | American Funds Developing World Growth and Income Fund (File No. 333-190913, File No. 811-22881)
| | - | ------------------------------------------------------------------------------------------------

| | - | American Funds Global High-Income Opportunities Fund (File No. 333-183930, File No. 811-22745)
| | - | ----------------------------------------------------------------------------------------------

| | - | The American Funds Income Series – U.S. Government Securities Fund (File No. 002-98199, File No. 811-04318)
| | - | -----------------------------------------------------------------------------------------------------------

| | - | American Funds Inflation Linked Bond Fund (File No. 333-183931, File No. 811-22746)
| | - | -----------------------------------------------------------------------------------

| | - | American Funds Insurance Series (File No. 002-86838, File No. 811-03857)
| | - | ------------------------------------------------------------------------

| | - | American Funds Money Market Fund (File No. 333-157162, File No. 811-22277)
| | - | --------------------------------------------------------------------------

| | - | American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
| | - | ----------------------------------------------------------------------

| | - | American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
| | - | -------------------------------------------------------------------------

| | - | American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
| | - | ---------------------------------------------------------------------------------------

| | - | American Funds Target Date Retirement Series (File No. 333-138648, File No. 811-21981)
| | - | --------------------------------------------------------------------------------------

| | - | American Funds Tax-Exempt Fund of New York (File No. 333-168594, File No. 811-22448)
| | - | ------------------------------------------------------------------------------------

| | - | The American Funds Tax-Exempt Series II – The Tax-Exempt Fund of California (File No. 033-06180, File No. 811-04694)
| | - | --------------------------------------------------------------------------------------------------------------------

| | - | American High-Income Municipal Bond Fund (File No. 033-80630, File No. 811-08576)
| | - | ---------------------------------------------------------------------------------

| | - | American High-Income Trust (File No. 033-17917, File No. 811-05364)
| | - | -------------------------------------------------------------------

| | - | The Bond Fund of America (File No. 002-50700, File No. 811-02444)
| | - | -----------------------------------------------------------------

| | - | Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
| | - | ----------------------------------------------------------------

| | - | The Income Fund of America (File No. 002-33371, File No. 811-01880)
| | - | -------------------------------------------------------------------

| | - | Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
| | - | --------------------------------------------------------------------------

| | - | International Growth and Income Fund (File No. 333-152323, File No. 811-22215)
| | - | ------------------------------------------------------------------------------

| | - | Limited Term Tax-Exempt Bond Fund of America (File No. 033-66214, File No. 811-07888)
| | - | -------------------------------------------------------------------------------------

| | - | Short-Term Bond Fund of America (File No. 333-135770, File No. 811-21928)
| | - | -------------------------------------------------------------------------

| | - | The Tax-Exempt Bond Fund of America (File No. 002-49291, File No. 811-02421)
| | - | ----------------------------------------------------------------------------



hereby revoke all previous powers of attorney
I have signed and otherwise act in my name and behalf in matters involving the Funds and do hereby constitute and appoint



|Vincent P. Corti
        Steven I. Koszalka
        Patrick F. Quan
        Michael W. Stockton
        Courtney R. Taylor
        Jennifer L. Butler
        Julie E. Lawton
        Raymond F. Sullivan, Jr. | Karl C. Grauman
        Brian C. Janssen
        Dori Laskin
        Gregory F. Niland
        Jeffrey P. Regal
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------



each of them singularly, my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate
capacities, all Registration Statements of the Funds on Form N-1A, any and all subsequent Amendments, or Post-Effective Amendments
to said Registration Statement on Form N-1A or any successor thereto, and any supplements or other instruments in connection
therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary
or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact
or their substitutes may do or cause to be done by virtue hereof.



EXECUTED at Irvine, CA, this 9th day of September, 2013.

(City, State)



/s/ William H. Baribault

William H. Baribault, Board member







POWER OF ATTORNEY



I, Vanessa C. L. Chang, the undersigned Board member
of the following registered investment companies (collectively, the “Funds”):



| | - | American Balanced Fund (File No. 002-10758, File No. 811-00066)
| | - | ---------------------------------------------------------------

| | - | American Funds Developing World Growth and Income Fund (File No. 333-190913, File No. 811-22881)
| | - | ------------------------------------------------------------------------------------------------

| | - | EuroPacific Growth Fund (File No. 002-83847, File No. 811-03734)
| | - | ----------------------------------------------------------------

| | - | EuroPacific Growth Fund
| | - | -----------------------

| | - | The Income Fund of America (File No. 002-33371, File No. 811-01880)
| | - | -------------------------------------------------------------------

| | - | International Growth and Income Fund (File No. 333-152323, File No. 811-22215)
| | - | ------------------------------------------------------------------------------

| | - | New Perspective Fund (File No. 002-47749, File No. 811-02333)
| | - | -------------------------------------------------------------

| | - | New World Fund, Inc. (File No. 333-67455, File No. 811-09105)
| | - | -------------------------------------------------------------

| | - | American Funds New World Fund
| | - | -----------------------------



hereby revoke all previous powers of attorney
I have signed and otherwise act in my name and behalf in matters involving the Funds and do hereby constitute and appoint



|Vincent P. Corti
        Steven I. Koszalka
        Patrick F. Quan
        Michael W. Stockton
        Courtney R. Taylor
        Jennifer L. Butler
        Julie E. Lawton
        Raymond F. Sullivan, Jr. | Brian C. Janssen
        Jeffrey P. Regal
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -----------------------------------------



each of them singularly, my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate
capacities, all Registration Statements of the Funds on Form N-1A, any and all subsequent Amendments, or Post-Effective Amendments
to said Registration Statement on Form N-1A or any successor thereto, and any supplements or other instruments in connection
therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary
or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact
or their substitutes may do or cause to be done by virtue hereof.



EXECUTED at Irvine, CA, this 9th day of September, 2013.

(City, State)





/s/ Vanessa C. L. Chang

Vanessa C. L. Chang, Board member







POWER OF ATTORNEY



I, Linda Griego, the undersigned Board member of
the following registered investment companies (collectively, the “Funds”):



| | - | American Balanced Fund (File No. 002-10758, File No. 811-00066)
| | - | ---------------------------------------------------------------

| | - | American Funds Developing World Growth and Income Fund (File No. 333-190913, File No. 811-22881)
| | - | ------------------------------------------------------------------------------------------------

| | - | The Income Fund of America (File No. 002-33371, File No. 811-01880)
| | - | -------------------------------------------------------------------

| | - | International Growth and Income Fund (File No. 333-152323, File No. 811-22215)
| | - | ------------------------------------------------------------------------------



hereby revoke all previous powers of attorney
I have signed and otherwise act in my name and behalf in matters involving the Funds and do hereby constitute and appoint



|Vincent P. Corti
        Steven I. Koszalka
        Patrick F. Quan
        Michael W. Stockton
        Courtney R. Taylor
        Jennifer L. Butler
        Julie E. Lawton
        Raymond F. Sullivan, Jr. | Jeffrey P. Regal
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------



each of them singularly, my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate
capacities, all Registration Statements of the Funds on Form N-1A, any and all subsequent Amendments, or Post-Effective Amendments
to said Registration Statement on Form N-1A or any successor thereto, and any supplements or other instruments in connection
therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary
or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact
or their substitutes may do or cause to be done by virtue hereof.



EXECUTED at Irvine, CA, this 9th day of September, 2013.

(City, State)





/s/ Linda Griego

Linda Griego, Board member







POWER OF ATTORNEY



I, Leonade D. Jones, the undersigned Board member
of the following registered investment companies (collectively, the “Funds”):



| | - | American Balanced Fund (File No. 002-10758, File No. 811-00066)
| | - | ---------------------------------------------------------------

| | - | American Funds Developing World Growth and Income Fund (File No. 333-190913, File No. 811-22881)
| | - | ------------------------------------------------------------------------------------------------

| | - | American Funds Fundamental Investors (File No. 002-10760, File No. 811-00032)
| | - | -----------------------------------------------------------------------------

| | - | Capital Income Builder (File No. 033-12967, File No. 811-05085)
| | - | ---------------------------------------------------------------

| | - | Capital World Growth and Income Fund (File No. 033-54444, File No. 811-07338)
| | - | -----------------------------------------------------------------------------

| | - | The Growth Fund of America (File No. 002-14728, File No. 811-00862)
| | - | -------------------------------------------------------------------

| | - | The Income Fund of America (File No. 002-33371, File No. 811-01880)
| | - | -------------------------------------------------------------------

| | - | International Growth and Income Fund (File No. 333-152323, File No. 811-22215)
| | - | ------------------------------------------------------------------------------

| | - | The New Economy Fund (File No. 002-83848, File No. 811-03735)
| | - | -------------------------------------------------------------

| | - | The New Economy Fund
| | - | --------------------

| | - | SMALLCAP World Fund, Inc. (File No. 033-32785, File No. 811-05888)
| | - | ------------------------------------------------------------------

| | - | SMALLCAP World Fund
| | - | -------------------



hereby revoke all previous powers of attorney
I have signed and otherwise act in my name and behalf in matters involving the Funds and do hereby constitute and appoint



|Vincent P. Corti
        Steven I. Koszalka
        Patrick F. Quan
        Michael W. Stockton
        Courtney R. Taylor
        Jennifer L. Butler
        Julie E. Lawton
        Raymond F. Sullivan, Jr. | Jeffrey P. Regal
        Neal F. Wellons
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------



each of them singularly, my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate
capacities, all Registration Statements of the Funds on Form N-1A, any and all subsequent Amendments, or Post-Effective Amendments
to said Registration Statement on Form N-1A or any successor thereto, and any supplements or other instruments in connection
therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary
or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact
or their substitutes may do or cause to be done by virtue hereof.



EXECUTED at Irvine, CA, this 9th day of September, 2013.

(City, State)





/s/ Leonade D. Jones

Leonade D. Jones, Board member







POWER OF ATTORNEY



I, William D. Jones, the undersigned Board member
of the following registered investment companies (collectively, the “Funds”):



| | - | AMCAP Fund (File No. 002-26516, File No. 811-01435)
| | - | ---------------------------------------------------

| | - | American Balanced Fund (File No. 002-10758, File No. 811-00066)
| | - | ---------------------------------------------------------------

| | - | American Funds Developing World Growth and Income Fund (File No. 333-190913, File No. 811-22881)
| | - | ------------------------------------------------------------------------------------------------

| | - | American Funds Global Balanced Fund (File No. 333-170605, File No. 811-22496)
| | - | -----------------------------------------------------------------------------

| | - | American Mutual Fund (File No. 002-10607, File No. 811-00572)
| | - | -------------------------------------------------------------

| | - | The Income Fund of America (File No. 002-33371, File No. 811-01880)
| | - | -------------------------------------------------------------------

| | - | International Growth and Income Fund (File No. 333-152323, File No. 811-22215)
| | - | ------------------------------------------------------------------------------

| | - | The Investment Company of America (File No. 002-10811, File No. 811-00116)
| | - | --------------------------------------------------------------------------



hereby revoke all previous powers of attorney
I have signed and otherwise act in my name and behalf in matters involving the Funds and do hereby constitute and appoint



|Vincent P. Corti
        Steven I. Koszalka
        Patrick F. Quan
        Michael W. Stockton
        Courtney R. Taylor
        Jennifer L. Butler
        Julie E. Lawton
        Raymond F. Sullivan, Jr. | Brian D. Bullard
        Jeffrey P. Regal
        Ari M. Vinocor
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------



each of them singularly, my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate
capacities, all Registration Statements of the Funds on Form N-1A, any and all subsequent Amendments, or Post-Effective Amendments
to said Registration Statement on Form N-1A or any successor thereto, and any supplements or other instruments in connection
therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary
or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact
or their substitutes may do or cause to be done by virtue hereof.



EXECUTED at Irvine, CA, this 9th day of September, 2013.

(City, State)





/s/ William D. Jones

William D. Jones, Board member







POWER OF ATTORNEY



I, James J. Postl, the undersigned Board member
of the following registered investment companies (collectively, the “Funds”):



| | - | American Balanced Fund (File No. 002-10758, File No. 811-00066)
| | - | ---------------------------------------------------------------

| | - | American Funds Developing World Growth and Income Fund (File No. 333-190913, File No. 811-22881)
| | - | ------------------------------------------------------------------------------------------------

| | - | The Income Fund of America (File No. 002-33371, File No. 811-01880)
| | - | -------------------------------------------------------------------

| | - | International Growth and Income Fund (File No. 333-152323, File No. 811-22215)
| | - | ------------------------------------------------------------------------------



hereby revoke all previous powers of attorney
I have signed and otherwise act in my name and behalf in matters involving the Funds and do hereby constitute and appoint



|Vincent P. Corti
        Steven I. Koszalka
        Patrick F. Quan
        Michael W. Stockton
        Courtney R. Taylor
        Jennifer L. Butler
        Julie E. Lawton
        Raymond F. Sullivan, Jr. | Jeffrey P. Regal
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------



each of them singularly, my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate
capacities, all Registration Statements of the Funds on Form N-1A, any and all subsequent Amendments, or Post-Effective Amendments
to said Registration Statement on Form N-1A or any successor thereto, and any supplements or other instruments in connection
therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary
or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact
or their substitutes may do or cause to be done by virtue hereof.



EXECUTED at Irvine, CA, this 9th day of September, 2013.

(City, State)





/s/ James J. Postl

James J. Postl, Board member







POWER OF ATTORNEY



I, Margaret Spellings, the undersigned Board member
of the following registered investment companies (collectively, the “Funds”):



| | - | American Balanced Fund (File No. 002-10758, File No. 811-00066)
| | - | ---------------------------------------------------------------

| | - | American Funds College Target Date Series (File No. 333-180729, File No. 811-22692)
| | - | -----------------------------------------------------------------------------------

| | - | American Funds Corporate Bond Fund (File No. 333-183929, File No. 811-22744)
| | - | ----------------------------------------------------------------------------

| | - | American Funds Developing World Growth and Income Fund (File No. 333-190913, File No. 811-22881)
| | - | ------------------------------------------------------------------------------------------------

| | - | American Funds Global High-Income Opportunities Fund (File No. 333-183930, File No. 811-22745)
| | - | ----------------------------------------------------------------------------------------------

| | - | The American Funds Income Series – U.S. Government Securities Fund (File No. 002-98199, File No. 811-04318)
| | - | -----------------------------------------------------------------------------------------------------------

| | - | American Funds Inflation Linked Bond Fund (File No. 333-183931, File No. 811-22746)
| | - | -----------------------------------------------------------------------------------

| | - | American Funds Insurance Series (File No. 002-86838, File No. 811-03857)
| | - | ------------------------------------------------------------------------

| | - | American Funds Money Market Fund (File No. 333-157162, File No. 811-22277)
| | - | --------------------------------------------------------------------------

| | - | American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
| | - | ----------------------------------------------------------------------

| | - | American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
| | - | -------------------------------------------------------------------------

| | - | American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
| | - | ---------------------------------------------------------------------------------------

| | - | American Funds Target Date Retirement Series (File No. 333-138648, File No. 811-21981)
| | - | --------------------------------------------------------------------------------------

| | - | American Funds Tax-Exempt Fund of New York (File No. 333-168594, File No. 811-22448)
| | - | ------------------------------------------------------------------------------------

| | - | The American Funds Tax-Exempt Series II – The Tax-Exempt Fund of California (File No. 033-06180, File No. 811-04694)
| | - | --------------------------------------------------------------------------------------------------------------------

| | - | American High-Income Municipal Bond Fund (File No. 033-80630, File No. 811-08576)
| | - | ---------------------------------------------------------------------------------

| | - | American High-Income Trust (File No. 033-17917, File No. 811-05364)
| | - | -------------------------------------------------------------------

| | - | The Bond Fund of America (File No. 002-50700, File No. 811-02444)
| | - | -----------------------------------------------------------------

| | - | Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
| | - | ----------------------------------------------------------------

| | - | The Income Fund of America (File No. 002-33371, File No. 811-01880)
| | - | -------------------------------------------------------------------

| | - | Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
| | - | --------------------------------------------------------------------------

| | - | International Growth and Income Fund (File No. 333-152323, File No. 811-22215)
| | - | ------------------------------------------------------------------------------

| | - | Limited Term Tax-Exempt Bond Fund of America (File No. 033-66214, File No. 811-07888)
| | - | -------------------------------------------------------------------------------------

| | - | Short-Term Bond Fund of America (File No. 333-135770, File No. 811-21928)
| | - | -------------------------------------------------------------------------

| | - | The Tax-Exempt Bond Fund of America (File No. 002-49291, File No. 811-02421)
| | - | ----------------------------------------------------------------------------



hereby revoke all previous powers of attorney
I have signed and otherwise act in my name and behalf in matters involving the Funds and do hereby constitute and appoint



|Vincent P. Corti
        Steven I. Koszalka
        Patrick F. Quan
        Michael W. Stockton
        Courtney R. Taylor
        Jennifer L. Butler
        Julie E. Lawton
        Raymond F. Sullivan, Jr. | Karl C. Grauman
        Brian C. Janssen
        Dori Laskin
        Gregory F. Niland
        Jeffrey P. Regal
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------



each of them singularly, my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate
capacities, all Registration Statements of the Funds on Form N-1A, any and all subsequent Amendments, or Post-Effective Amendments
to said Registration Statement on Form N-1A or any successor thereto, and any supplements or other instruments in connection
therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary
or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact
or their substitutes may do or cause to be done by virtue hereof.



EXECUTED at Irvine, CA, this 9th day of September, 2013.

(City, State)



/s/ Margaret Spellings

Margaret Spellings, Board member







POWER OF ATTORNEY



I, Isaac Stein, the undersigned Board member of
the following registered investment companies (collectively, the “Funds”):



| | - | American Balanced Fund (File No. 002-10758, File No. 811-00066)
| | - | ---------------------------------------------------------------

| | - | American Funds Developing World Growth and Income Fund (File No. 333-190913, File No. 811-22881)
| | - | ------------------------------------------------------------------------------------------------

| | - | The Income Fund of America (File No. 002-33371, File No. 811-01880)
| | - | -------------------------------------------------------------------

| | - | International Growth and Income Fund (File No. 333-152323, File No. 811-22215)
| | - | ------------------------------------------------------------------------------



hereby revoke all previous powers of attorney
I have signed and otherwise act in my name and behalf in matters involving the Funds and do hereby constitute and appoint



|Vincent P. Corti
        Steven I. Koszalka
        Patrick F. Quan
        Michael W. Stockton
        Courtney R. Taylor
        Jennifer L. Butler
        Julie E. Lawton
        Raymond F. Sullivan, Jr. | Jeffrey P. Regal
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------



each of them singularly, my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate
capacities, all Registration Statements of the Funds on Form N-1A, any and all subsequent Amendments, or Post-Effective Amendments
to said Registration Statement on Form N-1A or any successor thereto, and any supplements or other instruments in connection
therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary
or appropriate, to comply with the provisions of the Securities Act of 1933 and the Investment Company Act of 1940 as amended,
and all related requirements of the U. S. Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact
or their substitutes may do or cause to be done by virtue hereof.



EXECUTED at Irvine, CA, this 9th day of September, 2013.

(City, State)





/s/ Isaac Stein

Isaac Stein, Board member