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***References        to "fund" below should be construed in the plural as applicable in the case        of        multi-fund prospectuses.***

**1.**
** **
**Beginning        February 1, 2007, the "Rollovers from retirement plans to IRAs" section of        the        Prospectus and Retirement Plan Prospectus is amended in its entirety to read        as        follows:**

*Prospectus        for        tax-exempt funds adds:*
**The        fund        reserves the right not to make its shares available to tax-deferred retirement        plans and accounts.**

*Retirement        Plan        Prospectus adds:*

**2.**
** **
**Beginning        February 1, 2007, the discussion under "Frequent trading of fund shares"        in the        "Purchase and exchange of shares" section of the Prospectus and in the        "Purchase, exchange and sale of shares" section of the Retirement Plan        Prospectus is amended in its entirety to read as follows:**

**Frequent        trading of fund shares**

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**Notwithstanding        the fund’s purchase blocking policy, all transactions in fund shares remain        subject to the fund’s and American Funds Distributors’ right to restrict        potentially abusive trading generally (including the types of transactions        described above that will not be prevented or trigger a purchase block under        the        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.**

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**3.**
** **
**Beginning        February 1, 2007, the discussion under "Purchases and exchanges" in the        "Purchase, exchange and sale of shares" section of the Retirement Plan        Prospectus is amended in its entirety to read as follows:**

**Purchases        and exchanges**

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```
THE FUND PROVIDES SPANISH TRANSLATION IN CONNECTION WITH THE
PUBLIC OFFERING AND SALE OF ITS SHARES. THE FOLLOWING IS A FAIR
AND ACCURATE ENGLISH TRANSLATION OF A SPANISH LANGUAGE PROSPECTUS
SUPPLEMENT FOR THE FUND.

/s/ PATRICK F. QUAN
    PATRICK F. QUAN
    SECRETARY
```

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***References        to "fund" below should be construed in the plural as applicable in the case        of        multi-fund prospectuses.***

**1.**
** **
**Beginning        February 1, 2007, the "Rollovers from retirement plans to IRAs" section of        the        Prospectus and Retirement Plan Prospectus is amended in its entirety to read        as        follows:**

*Prospectus        for        tax-exempt funds adds:*
**The        fund        reserves the right not to make its shares available to tax-deferred retirement        plans and accounts.**

*Retirement        Plan        Prospectus adds:*

**2.**
** **
**Beginning        February 1, 2007, the discussion under "Frequent trading of fund shares"        in the        "Purchase and exchange of shares" section of the Prospectus and in the        "Purchase, exchange and sale of shares" section of the Retirement Plan        Prospectus is amended in its entirety to read as follows:**

**Frequent        trading of fund shares**

----

**Notwithstanding        the fund’s purchase blocking policy, all transactions in fund shares remain        subject to the fund’s and American Funds Distributors’ right to restrict        potentially abusive trading generally (including the types of transactions        described above that will not be prevented or trigger a purchase block under        the        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.**

----

**3.**
** **
**Beginning        February 1, 2007, the discussion under "Purchases and exchanges" in the        "Purchase, exchange and sale of shares" section of the Retirement Plan        Prospectus is amended in its entirety to read as follows:**

**Purchases        and exchanges**