(PUB) Investing 2015

June 2015

Morningstar FundInvestor

5

Data through May 31, 2015 American Funds New World A

Ticker

Status Yield Total Assets

Mstar Category

NEWFX Open

0.8% $24,189 mil

Diversified Emerging Mkts

Morningstar Analyst Rating 05-29-15

Investment Style Equity Stock %

Historical Profile Return Risk Rating Average Low Highest

76% 76% 79% 80% 82% 80% 78% 77% 78%

Œ

Manager Change Partial Manager Change

14.0 18.0 22.0 26.0

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Positive Positive

Investment Values of Fund Investment Values of MSCI WexUS

People Parent Price

10.0

NAV Total Return % +/-MSCI WexUS +/-MSCI Emg Mkt Income Return % Capital Return % Total Rtn % Rank Cat Performance Quartile (within Category) History

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 05-15

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

32.27 20.79 -0.12

38.70 22.20

48.44 33.42

59.44

31.39

47.20 52.21 10.76

54.59

46.12

54.49 19.71

58.75 10.01 -5.28 12.61

53.50 -3.66 0.21 -1.47 0.83 -4.49

55.78 4.26 -2.76 -1.43 0.00 4.26

-46.32 32.85

-14.13 17.32

5.58

6.77 1.28 2.36

16.20 -6.57

-0.79

6.17 -1.56 1.64

-0.42 4.29 1.39

2.88 1.49 1.55

-11.80 -4.76

-26.30 7.01

2.01

2.26

2.44

0.85

1.81

1.04 8.97 0.57 0.61 1.06 1.20 10

18.78

19.94

31.06

-47.17 30.41

50.40

-15.52 15.68

18.16

65

88

37

71

5

91

67

10

38

56

46

Pillar Spectrum Positive

0.55 0.00 1.22 1.68

0.73 0.00 1.12 2.00

0.91 2.23 1.00 2.19

1.18 3.79 0.96 1.92

0.51 0.00 0.95 2.10

0.57 0.00 1.17 2.11

0.78 0.00 1.04 1.60

0.76 0.00 1.02 1.33

0.71 0.00 1.07 1.47

0.49 2.63 1.03 1.28

0.00 0.00

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

. . .

Performance 05-31-15 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

20

26

30

31

35

36

20

25

25

36

32

2011 2012 2013 2014 2015

0.92 0.96 -19.42 4.59 -14.13 12.34 -5.66 7.00 5.57 19.71 1.43 -3.06 7.56 4.01 10.01 0.49 4.88 -5.17 -3.61 -3.66 2.86 . . . .

2,606

4,919

13,762 8,729

12,834 12,443 13,371 12,180 11,021 13,861 11,201 6,983

Portfolio Analysis 03-31-15 Share change since 12-14 Total Stocks:293 Sector

Rating and Risk Time Load-Adj

Country

% Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

Naspers Ltd Class N

Technology South Africa Comm Svs France Technology China Hlth care U.K. Hlth care Denmark Hlth care Switzerland

1.78 1.42 1.42 1.40 1.33 1.17 1.14 1.13 1.08 1.01 1.01 0.97 0.97 0.92 0.90 0.90 0.89 0.85 0.81 0.78

1 Yr 3 Yr 5 Yr

-9.03 6.94 5.70 8.10 7.92

Trailing

Total +/- MSCI

+/- MSCI

%Rank Growth of

Altice SA

Return% WexUS Emg Mkt

Cat

$10,000

Avg

Low Low Low

Baidu Inc ADR

3 Mo 6 Mo 1 Yr

0.43 -1.31 -0.47 -3.63 -3.48 -2.58 9.07 -3.54 6.96 -1.13 8.74 2.70 8.37 4.10

-1.48 -1.29 -3.47 3.11 2.88 -0.02 0.08

60 10,043 43 9,953 59 9,652 13 12,975 8 13,999 27 23,115 44 33,392

+Avg

Hikma Pharmaceuticals PL Novo Nordisk A/S B

10 Yr Incept

Avg

Novartis AG

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

International Container

Industrl

Philippines

Other Measures

Standard Index Best Fit Index MSCI WexUSMSCI AC World exUSA Gr ND

AIA Group Ltd

Finan Svs Hong Kong

Power Grid Corp Of India

Utilities

India

Alpha

-1.4 0.84

-2.7 0.94

HDFC Bank Ltd SOFTBANK Corp Murata Mfg Co Ltd

Finan Svs India Comm Svs Japan Technology Japan

Beta

R-Squared

89

92

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 6.01 34 0.86 75 4.99 23 0.67 65 7.24 38 0.80 27 Potential Capital Gain Exposure: 17% of assets Morningstar’s Take by Alec Lucas 05-29-15 American Funds New World’s unique profile sometimes masks its long-term appeal. Its 2014 showing is a case in point: It lost 3.7%, underperforming the MSCI Emerging Markets Index by 1.5 percentage points and landing in the diversified emerging-markets Morningstar Category’s bottom half. That marks the first calendar year since its 1999 inception that it fared worse than both the index and its typical peer when emerging-markets stocks lost money--falling markets are usually when this fund shines. Arguably, however, last year was no exception. True, it made some mistakes: A modest position in the now failed Banco Espirito Santo hurt, as did small stakes in Russian Internet stocks, which fell amid ongoing political and economic turmoil. The fund’s primary problem, though, was its near category-leading 35% average stake in foreign developed-markets stocks, like Japan’s SOFTBANK, a top-10 holding that shed 21.2%. While these stocks generally hurt for the year as a whole (the MSCI EAFE Index dropped 4.9%),

Cummins Inc

Industrl

United States

Standard Deviation

9.42 9.07 0.96

Taiwan Semiconductor Man

Technology Taiwan

Mean

Nestle SA

Cnsmr Def

Switzerland

Sharpe Ratio

Alexion Pharmaceuticals AAC Technologies Holding

Hlth care United States

Technology China Finan Svs U.K. Finan Svs India Cnsmr Cyc Japan

Prudential PLC ICICI Bank Ltd

they helped the fund during the early September to mid-December emerging-markets correction. The fund’s 10.2% loss in that stretch beat the MSCI Emerging Markets Index by 5.7 percentage points. Treading heavily in foreign developed names is nothing new here. As long as a company gets at least 20% of its revenue from the developing world, it’s fair game--provided that at least 35% of the fund’s assets are invested directly in emerging-markets securities. At year-end 2014, 55% of the equity portfolio’s revenues came from developing economies, but only emerging-markets investing has yielded strong long-term results. Its 8.4% annualized gain from its June 1999 start date through April 2015 is in line with the index and bests its typical category peer but does so with one fifth less volatility, as measured by standard deviation. With a flexible and effective process, the fund 42.8% of the equity portfolio was in emerging-markets-domiciled stocks. The fund’s conservative approach to

Toyota Motor Corp

Current Investment Style

Sector Weightings

% of Stocks

Rel MSCI

3 Year Low

WexUS High

Market Cap % Giant 44.3 Large 38.6 Mid 14.5 Small 2.4 Micro 0.1 Avg $mil: 21,526

Value Blnd Growth

Cyclical 36.94 BasicMat 4.56 CnsmrCyc13.82 FinanSvs 16.60 Real Est 1.96 Sensitive 36.80 CommSrvs 6.37 Energy 4.72 Technlgy 16.28 Defensive26.26 CnsmrDef10.53 Hlthcare 12.50 Utilities 3.23 Industrl 9.43

. .

h r t y u j i o p a k s d f

Large Mid Small

7 4

. 16 13 . 17 12

2 1

. . .

8 5

. 10 5 . 12 9 . 19 10

Growth Measures Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Price/Cash Flow Dividend Yield % Value Measures Price/Earnings Price/Book Price/Sales

Rel Category

12.52 -0.51 3.02 -1.30 7.36 17.74 2.18 1.74 5.52 1.88

0.94 NMF 0.64 NMF 1.06 1.53 1.27 1.64 1.03 0.61

.

. 14 11 . 13 9

4 3

.

% Rel Category

Country Exposure United States 13 India 12 China 11 UK/W. Europe 28 Japan 5 Asia X Japan 40 Regional Exposure

% Stock

N. America 14 Latn America 5 Other 8

Address:

New World Fund Inc Los Angeles, CA 90071-1447 800-421-4225 www.americanfunds.com

Minimum Purchase: Min Auto Inv Plan:

$250 $250

Add: $50 IRA: $25

Add: $50

Sales Fees:

5.75%L,

Composition - Net

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

0.85% mx./0.49% mn., 0.01%A Mgt:0.55% Dist:0.23%

% Stock

Cash

6.1

Bonds Other

10.0

06-17-99

Actual Fees:

U.K.

8 5

Capital Research and Management Company

Expense Projections: Income Distribution:

3Yr:$884 Annually

5Yr:$1111 10Yr:$1762

Stocks

78.1

5.9

None

France

Foreign

86.5

(% of Stock)

Federated Tr NTF

Mutual Funds ß ®

© 2015Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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