Telephone and Data Systems Inchares (NYSE:TDS) Sellers Reduced Their Shorts By 12.94% As Of Dec 31, 2018 – ZTribune


Telephone and Data Systems, Inc. (NYSE:TDS) Corporate Logo

Big Money Sentiment increased to 1.23 in 2018 Q3. It has change of 0.12, from 2018Q2’s 1.11. The ratio increased due to Telephone and Data Systems, Inc. positioning: 14 sold and 77 reduced. 35 funds bought holdings and 77 increased holdings. Investors holded 88.33 million in 2018Q2 but now own 89.97 million shares or 1.85% more.
Ing Groep Nv holds 0.01% of its capital in Telephone and Data Systems, Inc. (NYSE:TDS) for 14,076 shs. Bnp Paribas Arbitrage stated it has 160,556 shs or 0% of all its holdings. Guggenheim Capital Limited Com reported 231,989 shs. New York State Teachers Retirement Systems reported 0.01% stake. Gabelli Funds Ltd Co has invested 0.48% in Telephone and Data Systems, Inc. (NYSE:TDS). Commonwealth Retail Bank Of has invested 0.01% in Telephone and Data Systems, Inc. (NYSE:TDS). Vanguard owns 9.89 million shs. Menta Capital Ltd Liability Corp invested in 0.14% or 12,783 shs. Mutual Of America Capital Management Limited Liability Company accumulated 0.03% or 79,027 shs. Tower Ltd Company (Trc) holds 0.02% in Telephone and Data Systems, Inc. (NYSE:TDS) or 10,987 shs. Wellington Mngmt Gp Llp has 385,572 shs for 0% of their capital. Retail Bank Of Mellon Corporation, New York-based fund reported 1.48M shs. Century Companies stated it has 34,021 shs or 0% of all its holdings. Automobile Association has invested 0% in Telephone and Data Systems, Inc. (NYSE:TDS). Comml Bank Of America De reported 465,877 shs stake.

Telephone and Data Systems, Inc. registered $12.57 million net activity with 0 insider purchases and 12 insider sales since August 16, 2018. Another trade for 16,455 shs valued at $564,822 was sold by Chambers Douglas W. On Friday, August 17 $387,679 worth of Telephone and Data Systems, Inc. (NYSE:TDS) was sold by McCahon Jane W. On Thursday, November 15 the insider Davis Clarence A sold $10,407. $1.67 million worth of stock was sold by Hanley Joseph R on Tuesday, August 21. THAUS KURT B had sold 129,656 shs worth $4.58M.

Telephone and Data Systems Inchares (NYSE:TDS) had a decrease of its short interest by 12.94%. It was announced in December by FINRA the 2.07M short interest on TDS. That’s 12.94% down from 2.38M shares. Previous TDS’s position will need 2 days to recover. It has 1.41 million average volume. Telephone and Data Systems Inchares float short is 2.14%.

TDS hit $32.31 during the last trading session after $0.09 change.Currently Telephone and Data Systems, Inc. is uptrending after 29.93% change in last December 31, 2017. TDS has 612,506 shares volume. The stock outperformed the S&P500 by 29.93%.

Telephone and Data Systems, Inc., a telecommunications company, provides wireless, wireline, cable, and hosted and managed services in the United States.The company has $3.65 billion market cap. The firm offers cellular services, such as postpaid national plans and prepaid service plans with voice, messaging, and data usage options; shared data plans that include unlimited voice and unlimited messaging; and business rate plans.9.06 is the P/E ratio. It also offers wireless devices comprising handsets, tablets, mobile hotspots, home phones, and routers; and including accessories, including wireless basics, such as cases, screen protectors, chargers, and memory cards, as well as an assortment of consumer electronics comprising headphones, speakers, and hands-free devices.

Telephone and Data Systems, Inc. (NYSE:TDS) Ratings Coverage

Total analysts of 3 have positions in Telephone and Data (NYSE:TDS) as follows: 2 rated it a “Buy”, 1 with “Sell” and 0 with “Hold”. The positive are 67%. The firm has $39 highest while $36 is the lowest target price. The average target $36.33 is 12.44% above the last ($32.31) price. Since July 11, 2018 according to StockzIntelligence Inc Telephone and Data has 3 analyst reports. On Wednesday, August 8 Citigroup maintained Telephone and Data Systems, Inc. (NYSE:TDS) with “Buy” rating. The company rating was downgraded by JP Morgan on Wednesday, July 11. On Tuesday, November 6 the stock of Telephone and Data Systems, Inc. (NYSE:TDS) earned “Outperform” rating by Raymond James.

A couple more Telephone and Data Systems, Inc. (NYSE:TDS) news were published by: Zacks.com which released on December 02, 2018 “TDS (TDS) Up 19.3% Since Last Earnings Report: Can It Continue? – Zacks.com”, also Seekingalpha.com on November 02, 2018 published “Telephone and Data Systems, Inc. (TDS) CEO Ken Meyers on Q3 2018Results – Earnings Call Transcript – Seeking Alpha”, the next Seekingalpha.com is “U.S. Cellular, TDS tumble as JPMorgan bears up – Seeking Alpha” on July 11, 2018. Seekingalpha.com has article titled “Wireless big four deny being the telecom in Super Micro hack story – Seeking Alpha”.

Telephone and Data Systems, Inc. (NYSE:TDS) Institutional Investors Chart

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Sprint (S) Focuses on Network Expansion, Customer Experience


On Dec 31, we issued an updated research report on Sprint CorporationS .

The U.S. communications service provider’s strategy of balancing growth and profitability while increasing network investments and adding digital capabilities should drive its financial performance in the coming quarters. It has enhanced its SD-WAN services reach to enable enterprises to more simply and efficiently manage global IT resources and applications across networks throughout Asia-Pacific, Latin America, North America and Europe. Also, the company’s multi-year plan to improve cost structure and its “Unlimited for All” plan designed for customers bode well.

The company is coming up with new ideas and solutions to better serve its customers and help business enterprises improve their relationship with employees. In November 2018, Sprint announced that it has joined forces with HTC to bring a powerful 5G mobile smart hub to customers. This will enable customers to experience Sprint 5G on multiple devices for content sharing, mobile gaming and entertainment among others with incredibly fast connectivity. The company continues to build a solid 5G device portfolio so that its users can be among the first to experience Sprint 5G next year.

Massive MIMO technology is integral to Sprint’s 5G strategy and network build. The technology augments the capacity of the company’s LTE Advanced network and is software upgradable to 5G. With this, Sprint is likely to meet customers’ need for unlimited data and high-bandwidth applications. The company intends to launch its mobile 5G network in nine of the largest cities across the country – Atlanta, Chicago, Dallas, Houston, Kansas City, Los Angeles, New York City, Phoenix and Washington, DC – during the first half of 2019 with additional markets to be announced later.

For fiscal 2018, Sprint has raised its adjusted EBITDA guidance to the range of $12.4 billion to $12.7 billion from the previous projection of $12-$12.5 billion, owing to strong year-to-date performance. The Zacks Rank #2 (Buy) stock has gained 7.6% against a decline of 0.7% of the industry in the past six months.

Other Stocks to Consider

A few other stocks in the broader industry worth considering are Arista Networks, Inc. ANET , ARRIS International plc ARRS and Harmonic Inc. HLIT . While Arista sports a Zacks Rank #1 (Strong Buy), ARRIS and Harmonic carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here .               

Arista has a long-term earnings growth expectation of 21.7%.

ARRIS has a long-term earnings growth expectation of 6.5%.

Harmonic has a long-term earnings growth expectation of 8.8%.

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Zacks Investment Research


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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Maxis one prime unlimited



The plans are costly and this is the main reason why I won't MaxisONE Prime now offers unlimited data for both mobile and home #44182719200801 …



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Form N-CSR AMERICAN MUTUAL FUND For: Oct 31



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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

 

Investment Company Act File Number: 811-00572

 

American Mutual Fund

(Exact Name of Registrant as Specified
in Charter)

 

333 South Hope Street

Los Angeles, California 90071

(Address of Principal Executive Offices)

 

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

 

Date of fiscal year end: October 31

 

Date of reporting period: October 31,
2018

 

Laurie D. Neat

American Mutual Fund

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

 

ITEM 1 – Reports to Stockholders

 

American Mutual Fund®

 

Annual report
for the year ended
October 31, 2018

 

 

 

We invest in
companies with
strong balance sheets
and a history of
paying dividends.

 

Beginning January 1, 2021, as permitted by regulations adopted
by the Securities and Exchange Commission, we intend to no longer mail paper copies of the funds’ shareholder reports, unless
specifically requested from American Funds or your financial intermediary, such as a broker-dealer or bank. Instead, the reports
will be made available on the American Funds website (americanfunds.com); you will be notified by mail and provided with a website
link to access the report each time a report is posted. If you have already elected to receive shareholder reports electronically,
you will not be affected by this change and do not need to take any action. If you prefer to receive shareholder reports and other
communications electronically, you may update your mailing preferences with your financial intermediary, or enroll in e-delivery
at americanfunds.com (for accounts held directly with the fund).

 

You may elect to receive paper copies of all future reports
free of charge. If you invest through a financial intermediary, you may contact your financial intermediary to request that you
continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you may inform American Funds
that you wish to continue receiving paper copies of your shareholder reports by contacting us at (800) 421-4225. Your election
to receive reports in paper will apply to all funds held with American Funds or through your financial intermediary.

 

American Mutual Fund strives for the balanced accomplishment
of three objectives: current income, growth of capital and conservation of principal.

 

This fund is one of more than 40 offered by Capital Group, home
of American Funds, one of the nation’s largest mutual fund families. For more than 85 years, Capital Group has invested with
a long-term focus based on thorough research and attention to risk.

 

Fund results shown in this report, unless
otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results
would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results
may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods
makes losses more likely. For current information and month-end results, visit americanfunds.com.

 

Here are the average annual total returns
on a $1,000 investment with all distributions reinvested for periods ended September 30, 2018 (the most recent calendar quarter-end):

 

Class A shares 1 year 5 years 10 years
       
Reflecting 5.75% maximum sales charge 5.43% 9.88% 9.93%

 

For other share class results, visit americanfunds.com
and americanfundsretirement.com.

 

The total annual fund operating expense
ratio is 0.57% for Class A shares as of the prospectus dated January 1, 2019 (unaudited).

 

Investment results assume all distributions
are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which
results would have been lower. Visit americanfunds.com for more information.

 

The fund’s 30-day yield for Class
A shares as of November 30, 2018, calculated in accordance with the U.S. Securities and Exchange Commission (SEC) formula, was
2.03%. The fund’s 12-month distribution rate for Class A shares as of that date was 1.77%. Both reflect the 5.75% maximum
sales charge.
The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while
the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and
distribution rate may differ.

 

Refer to the fund prospectus and the Risk
Factors section of this report for more information on risks associated with investing in the fund.

 

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

 

Fellow investors:

 

The U.S. stock market advanced for the fiscal year ended October
31, 2018. While geopolitical concerns continued to add to market volatility, economic data in the U.S. was generally positive and
company earnings were better than expected. Stocks also rose amid expectations for lower corporate tax rates, which came to pass,
and reduced business regulations under the current administration. The Federal Reserve proceeded cautiously on interest rates,
raising them three times each in 2017 and thus far in 2018; under new leadership, the Fed has signaled a similar path for the near
future.

 

With the stock market rising during the period, American Mutual
Fund (AMF) posted a total return of 6.11%. This result trailed the 7.35% return of the unmanaged Standard & Poor’s 500
Composite Index*, a market-capitalization-weighted index based on the results of approximately 500 widely held common stocks. It
is not uncommon for AMF to lag the S&P 500 in a market environment of strong rising returns. The fund is managed conservatively
and historically has done better in declining markets because strongly capitalized dividend-paying companies are typically less
volatile than the overall market and have offered better downside protection.

 

Over longer periods of time, AMF’s returns have been comparable
to those of the S&P 500, but with less volatility. For the past 10 years, the fund had an average annual total return of 11.79%,
lagging the index’s 13.24% return. For its 68-year lifetime, the fund has had an average annual total return of 11.56%, exceeding
the 11.26% return for the S&P 500. The index is unmanaged and, therefore, has no expenses; investors cannot invest directly
in an index.

 

Portfolio review

Verizon Communications, which is the fund’s largest holding,
rebounded from concerns about price competition. The telecommunication services company has been offering an unlimited data plan
for mobile users in an effort to defend against market share losses to Sprint and T-Mobile US. However, the pricing environment
is expected to stabilize with the announced

 

*Source: S&P Dow Jones Indices LLC

 

Dividends paid in calendar year 2018

 

For tax purposes, here are the quarterly income dividends Class
A shareholders received in calendar year 2018.

 

Income dividends per share: $0.190 paid 3/16/18
  $0.195 paid 6/15/18
  $0.195 paid 9/14/18
  $0.200* to be paid on 12/19/18

 

The fund will also pay a special dividend from accumulated undistributed
net income and a capital gain distribution on 12/19/18.

 

*Estimated as of 10/31/2018 (unaudited).

 

Form 1099-DIV, which provides the information you will need to
prepare your federal income tax return for 2018, will be mailed to you with your American Funds Tax Guide in late January 2019.

 

The New Geography of Investing®

 

Where a company does business can be more important than where
it’s located. Here’s a look at American Mutual Fund’s portfolio in terms of where its equity holdings earn their
revenue. The charts below show the countries and regions in which the fund’s equity investments are located, and where the
revenue comes from.

 

Equity portion breakdown by domicile (%)

 

 

 

  Country/Region     Fund       Index  
United States     90 %     100 %
Canada     6        
Europe     3        
Japan            
Asia-Pacific ex. Japan            
Emerging markets     1        
  Total     100 %     100 %

 

Equity portion breakdown by revenue (%)

 

 

 

  Country/Region     Fund       Index  
United States     62 %     62 %
Canada     5       2  
Europe     11       12  
Japan     2       3  
Asia-Pacific ex. Japan     2       1  
Emerging markets     18       20  
  Total     100 %     100 %

 

Compared with the S&P 500 as a percentage of net assets.
All figures include convertible securities.

 

Source: Capital Group (as of October 31, 2018).

 

merger between these two smaller rivals, and Verizon is now moving
forward with plans to upgrade its network to 5G. We believe the company has demonstrated strong leadership and remains a stable,
long-term investment with a sustainable dividend that is growing.

 

Holdings in the industrials sector also contributed to the fund’s
returns. These gains were largely driven by aerospace company Boeing, which has benefited from an increase in U.S. defense spending
under the current administration. This trend should continue over a multiyear period, as should more foreign military spending
from countries in Asia and the Middle East. In addition, Boeing’s commercial aircraft division continues to benefit from
the substantial growth in global air travel, especially in China. However, shares have pulled back recently amid concerns that
the company could be negatively affected by the ongoing trade war.

 

In the consumer staples sector, shares of Costco rose as
it continued to see strong same-store sales growth and as the operator of a membership warehouse club remains focused on
creating an exceptional customer experience. The discount retailer is also increasing efficiency in its distribution system
— for example, by building its own meat-processing plants to directly supply its stores. We also are encouraged by
Costco’s plans to expand outside of the U.S., where its business model is novel and returns are higher. While the
company’s overseas business is not especially large right now, we expect that it will grow significantly over the next
decade.

 

Shares of health care companies were mixed, with Abbott Laboratories
rising while AbbVie declined. The market reacted positively to several new

 

product releases by Abbott, including the FreeStyle Libre glucose
monitoring system, which works through skin contact rather than a finger prick. Meanwhile, AbbVie, a biopharmaceutical company
spun out of Abbott Labs, struggled amid concerns about the company’s reliance on its leading drug Humira and disappointing
trial results from the lead product of a recently acquired company. However, we think Humira concerns are overstated, especially
given AbbVie’s strong drug pipeline and its settlement with Amgen that extends patent protection for Humira, the top-selling
treatment for rheumatoid arthritis, until 2023.

 

Among the fund’s energy and utilities holdings, shares
of TransCanada, Enbridge and PG&E were the largest decliners. TransCanada and Enbridge were just two of the energy companies
in Canada that retreated amid worries over export pipeline capacity and regulatory uncertainty. Meanwhile, shares of utility company
PG&E fell after wind-driven wildfires in California resulted in substantial loss of life and property and left around 100,000
of its customers without electricity and about 30,000 customers without gas. Lawsuits were filed against PG&E, which cut dividend
payments, as regulators investigated whether power lines maintained by the company had played a part in starting the fires. As
a result, we eliminated the holding from the fund, as it does not appear the company will reinstate its dividend.

 

Looking ahead

The U.S. economy continues to do well: the unemployment
rate is low, real wages are gradually increasing and consumer spending is slowly on the rise. While interest rates may
continue to increase, we are below the level that historically has caused major pressure on economic growth. However,
volatility is likely to remain elevated amid the contraction of the global money supply and the multiple geopolitical risks
around the world, from the U.S. trade war with China to the Brexit negotiations in Europe to the unpredictable situation with
North Korea.

 

While the market doesn’t like uncertainty, we believe that
our consistent approach of investing in quality companies with strong balance sheets will serve our investors well in an uncertain
environment. The fund is well diversified for many macroeconomic outcomes, and the portfolio managers consider its capital preservation
objective to be very important in security selection and portfolio construction. We have become slightly more defensive in our
investments and believe AMF is well positioned to hold up better than the stock market in a downturn — which will inevitably
occur — while also participating in market rallies. For example, during the recent market decline in October, the fund lost
just 4.41% versus a 6.84% monthly decline for the S&P 500.

 

When investing for income, the fund’s managers are mindful
to limit investments in those companies with high dividend yields and little earnings growth, which tend not to do as well when
rates are rising. Companies with dividend growth tend to do better in such an environment. Dividend growth also sends a positive
message about a company’s earnings and management’s willingness to share profits with investors instead of spending
capital on acquisitions or share repurchases, which have a less impressive track record of benefiting shareholders.

 

Investors should keep in mind the fund’s three
objectives: current income, growth of capital and conservation of principal, the last of which is especially important during
a period of rising interest rates and higher valuations. We are pleased to report that the number of shareholder accounts in
AMF has grown by 5.8% from a year ago. We would like to welcome our new shareholders and thank our long-term investors for
their continued support.

 

Cordially,

 

 

Joyce E. Gordon
Co-President

 

 

William L. Robbins

Co-President

 

December 6, 2018

 

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

 

The value of a long-term perspective

 

Fund results shown are for Class A shares and reflect deduction
of the maximum sales charge of 5.75% on the $10,000 investment.
1 Thus, the net amount invested was $9,425.2
Results are for past periods and are not predictive of results for future periods. Current and future results may be
lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and
month-end results, visit americanfunds.com.

 

The results shown are before taxes on fund distributions and
sale of fund shares.

 

1 As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $25,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.
2 The maximum initial sales charge was 8.5% prior to July 1, 1988.
3 Includes reinvested capital gain distributions totaling $510,446 in the years 1968–2018 and reinvested dividends.
4 Source: S&P Dow Jones Indices LLC. The S&P 500 is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
5 Includes reinvested capital gain distributions taken in shares totaling $117,448 but does not reflect income dividends taken in cash.
6 Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics. It would take $71,639 to buy today what $10,000 bought 50 years ago.

 

 

How a $10,000 investment has grown

A meaningful way to compare the fund’s results with the
return on other investments is through its total return. Total return is a combination of income return and capital return. This
chart illustrates an assumed $10,000 investment in American Mutual Fund from October 31, 1968, through October 31, 2018. The table
beneath the chart shows the fund’s total return in each of the past 50 fiscal years, broken down into its income and capital
components.

 

 

Summary
investment portfolio
October 31, 2018

 

Industry sector diversification Percent of net assets

 

 

Common stocks 87.26%   Shares     Value
(000)
 
Energy 8.58%            
Chevron Corp.     3,744,700     $ 418,096  
ConocoPhillips     6,519,500       455,713  
Enbridge Inc.     12,627,530       392,842  
Enbridge Inc. (CAD denominated)     223,900       6,977  
Enbridge Inc. (CAD denominated)1     1,645,344       51,268  
EOG Resources, Inc.     3,398,900       358,040  
Exxon Mobil Corp.     7,978,000       635,687  
Royal Dutch Shell PLC, Class A (ADR)     4,458,523       281,734  
Royal Dutch Shell PLC, Class B (ADR)     3,664,100       240,768  
Suncor Energy Inc.     11,405,910       382,609  
Other securities             1,097,015  
              4,320,749  
                 
Materials 2.52%                
Linde PLC     3,688,524       610,340  
Other securities             656,787  
              1,267,127  
                 
Industrials 9.68%                
Boeing Co.     1,563,000       554,646  
CSX Corp.     7,240,193       498,560  
General Dynamics Corp.     2,309,675       398,604  
Lockheed Martin Corp.     2,081,560       611,666  
Norfolk Southern Corp.     2,058,100       345,411  
Union Pacific Corp.     2,248,471       328,771  
United Technologies Corp.     3,222,574       400,276  
Other securities             1,737,800  
              4,875,734  
                 
Consumer discretionary 5.56%                
Home Depot, Inc.     3,671,250       645,699  
McDonald’s Corp.     3,404,000       602,168  
Other securities             1,552,549  
              2,800,416  

 

    Shares     Value
(000)
 
Consumer staples 9.75%                
Coca-Cola Co.     19,036,100     $ 911,448  
Costco Wholesale Corp.     3,350,700       766,071  
Hormel Foods Corp.     7,526,400       328,452  
Kellogg Co.     6,337,423       414,974  
Procter & Gamble Co.     7,781,978       690,106  
Other securities             1,802,118  
              4,913,169  
                 
Health care 15.85%                
Abbott Laboratories     11,917,000       821,558  
AbbVie Inc.     16,288,800       1,268,083  
Amgen Inc.     5,714,378       1,101,675  
Eli Lilly and Co.     3,869,700       419,630  
Gilead Sciences, Inc.     9,744,800       664,400  
Merck & Co., Inc.     7,673,385       564,838  
Pfizer Inc.     10,978,400       472,730  
Thermo Fisher Scientific Inc.     1,434,000       335,054  
UnitedHealth Group Inc.     2,648,500       692,186  
Other securities             1,641,996  
              7,982,150  
                 
Financials 11.74%                
Bank of New York Mellon Corp.     8,372,500       396,270  
CME Group Inc., Class A     2,911,700       533,540  
JPMorgan Chase & Co.     6,270,697       683,631  
Marsh & McLennan Companies, Inc.     4,546,094       385,281  
Toronto-Dominion Bank     4,958,400       274,993  
Toronto-Dominion Bank (CAD denominated)     2,500,000       138,687  
Wells Fargo & Co.     13,684,200       728,410  
Other securities             2,771,750  
              5,912,562  
                 
Information technology 10.95%                
Accenture PLC, Class A     3,292,700       518,995  
Apple Inc.     2,447,600       535,682  
Intel Corp.     17,452,200       818,159  
Microsoft Corp.     13,539,707       1,446,176  
QUALCOMM Inc.     6,360,107       399,987  
Texas Instruments Inc.     6,493,695       602,810  
Other securities             1,192,795  
              5,514,604  
                 
Communication services 5.46%                
Comcast Corp., Class A     10,824,600       412,850  
Verizon Communications Inc.     33,626,014       1,919,709  
Other securities             419,949  
              2,752,508  
                 
Utilities 4.61%                
American Electric Power Co., Inc.     10,059,000       737,928  
Sempra Energy     4,485,753       493,971  
Other securities             1,088,805  
              2,320,704  
                 
Real estate 1.92%                
Simon Property Group, Inc. REIT     2,021,000       370,894  
Other securities             595,176  
              966,070  
                 
Miscellaneous 0.64%                
Other common stocks in initial period of acquisition             323,474  
                 
Total common stocks (cost: $30,576,995,000)             43,949,267  

 

Preferred securities 0.02%   Shares     Value
(000)
 
Financials 0.02%                
Other securities           $ 10,453  
                 
Total preferred securities (cost: $10,004,000)             10,453  
                 
Convertible stocks 0.30%                
Utilities 0.30%                
Other securities             150,728  
                 
Total convertible stocks (cost: $141,212,000)             150,728  
                 
Bonds, notes & other debt instruments 1.30% Principal amount
(000)
         
U.S. Treasury bonds & notes 1.07%                
U.S. Treasury 1.375% 2021   $ 563,210       541,847  
                 
Corporate bonds & notes 0.23%                
Financials 0.23%                
JPMorgan Chase & Co., Series I, junior subordinated 5.99% (undated) (3-month USD-LIBOR + 3.47% on 1/30/2019)2     27,015       27,150  
Wells Fargo & Co., Series K, junior subordinated 6.104% (undated) (3-month USD-LIBOR + 3.77% on 3/15/2019)2     87,493       88,259  
              115,409  
                 
Total bonds, notes & other debt instruments (cost: $672,713,000)             657,256  
                 
Short-term securities 11.10%                
Apple Inc. 2.20%–2.21% due 11/15/2018–12/7/20181     83,000       82,867  
Coca-Cola Co. 2.13%–2.30% due 11/20/2018–12/20/20181     80,000       79,798  
Federal Home Loan Bank 1.99%–2.34% due 11/2/2018–3/15/2019     2,730,800       2,724,489  
Merck & Co. Inc. 2.33%–2.39% due 1/15/2019–2/5/20191     138,700       137,921  
Pfizer Inc. 2.30% due 1/23/20191     100,000       99,450  
Procter & Gamble Co. 2.33% due 1/22/20191     38,200       37,993  
U.S. Treasury Bills 1.98%–2.40% due 11/1/2018–4/18/2019     1,716,200       1,710,045  
Other securities             719,364  
                 
Total short-term securities (cost: $5,592,206,000)             5,591,927  
Total investment securities 99.98% (cost: $36,993,130,000)             50,359,631  
Other assets less liabilities 0.02%             7,809  
                 
Net assets 100.00%           $ 50,367,440  

 

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.

 

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 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 $959,011,000, which represented
1.90% of the net assets of the fund.
2 Step bond; coupon rate may change at a later date.

 

Key to abbreviations and symbol

ADR = American Depositary Receipts
CAD = Canadian
dollars
LIBOR = London Interbank Offered Rate
USD/$ = U.S. dollars

 

See notes to financial statements

 

Financial statements

 

Statement of assets and liabilities  
at October 31, 2018 (dollars in thousands)

 

Assets:                
Investment securities in unaffiliated issuers, at value (cost: $36,993,130)           $ 50,359,631  
Cash             18,606  
Cash denominated in currencies other than U.S. dollars (cost: $6,825)             6,825  
Receivables for:                
Sales of investments   $ 5,437          
Sales of fund’s shares     49,504          
Dividends and interest     86,461       141,402  
              50,526,464  
Liabilities:                
Payables for:                
Purchases of investments     99,122          
Repurchases of fund’s shares     35,164          
Investment advisory services     10,295          
Services provided by related parties     10,116          
Trustees’ deferred compensation     3,671          
Other     656       159,024  
Net assets at October 31, 2018           $ 50,367,440  
                 
Net assets consist of:                
Capital paid in on shares of beneficial interest           $ 34,606,006  
Total distributable earnings             15,761,434  
Net assets at October 31, 2018           $ 50,367,440  

 

(dollars and shares in thousands, except
per-share amounts)

 

Shares of beneficial interest issued and
outstanding (no stated par value) —
unlimited shares authorized (1,230,810 total shares outstanding)

 

    Net assets     Shares
outstanding
    Net asset value
per share
 
Class A   $ 25,509,136       622,949     $ 40.95  
Class C     1,136,706       28,178       40.34  
Class T     11       *     40.96  
Class F-1     1,199,340       29,421       40.77  
Class F-2     5,777,965       141,142       40.94  
Class F-3     1,577,152       38,524       40.94  
Class 529-A     928,369       22,727       40.85  
Class 529-C     139,419       3,432       40.63  
Class 529-E     40,781       1,003       40.68  
Class 529-T     12       *     40.95  
Class 529-F-1     78,143       1,910       40.92  
Class R-1     57,715       1,425       40.50  
Class R-2     236,445       5,846       40.45  
Class R-2E     15,381       377       40.79  
Class R-3     535,336       13,181       40.62  
Class R-4     615,862       15,092       40.81  
Class R-5E     5,172       127       40.92  
Class R-5     324,251       7,917       40.96  
Class R-6     12,190,244       297,559       40.97  

 

* Amount less than one thousand.

 

See notes to financial statements

 

Statement of operations
for the year
ended October 31, 2018
(dollars in thousands)

 

 

Investment income:            
Income:                
Dividends (net of non-U.S. taxes of $25,361)   $ 1,199,941          
Interest     98,213     $ 1,298,154  
Fees and expenses*:                
Investment advisory services     117,935          
Distribution services     89,885          
Transfer agent services     31,212          
Administrative services     14,493          
Reports to shareholders     1,121          
Registration statement and prospectus     1,302          
Trustees’ compensation     751          
Auditing and legal     59          
Custodian     638          
Other     1,012       258,408  
Net investment income             1,039,746  
                 
Net realized gain and unrealized depreciation:                
Net realized gain (loss) on:                
Investments in unaffiliated issuers     2,146,150          
Currency transactions     (1,764 )     2,144,386  
Net unrealized (depreciation) appreciation on:                
Investments in unaffiliated issuers     (287,543 )        
Currency translations     67       (287,476 )
Net realized gain and unrealized depreciation             1,856,910  
Net increase in net assets resulting from operations           $ 2,896,656  

 

* 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 October 31  
    2018     2017  
Operations:                
Net investment income   $ 1,039,746     $ 937,704  
Net realized gain     2,144,386       2,144,010  
Net unrealized (depreciation) appreciation     (287,476 )     4,401,824  
Net increase in net assets resulting from operations     2,896,656       7,483,538  
Distributions paid to shareholders     (2,930,324 )     (1,984,387 )*
                 
Net capital share transactions     3,409,047       2,709,961  
                 
Total increase in net assets     3,375,379       8,209,112  
                 
Net assets:                
Beginning of year     46,992,061       38,782,949  
End of year   $ 50,367,440     $ 46,992,061  

 

* Prior year comparative amounts have been adjusted to reflect current presentation under new accounting
standards. Prior year distributions were $894,807 from net investment income and $1,089,580 from net realized gain on investments.

 

See notes to financial statements

 

Notes to financial statements

 

1. Organization

 

American Mutual Fund (the “fund”) is registered under
the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund strives for the balanced
accomplishment of three objectives: current income, growth of capital and conservation of principal.

 

The fund has 19 share classes consisting of six retail share classes
(Classes A, C, T, F-1, F-2 and F-3), five 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T and 529-F-1)
and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, 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 18 months of purchase without an initial sales charge)   None
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   Class 529-C converts to Class 529-A after 10 years*
Class 529-E   None   None   None
Classes T and 529-T   Up to 2.50%   None   None
Classes F-1, F-2, F-3 and 529-F-1   None   None   None
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6   None   None   None
* Effective December 1, 2017.
Class T and 529-T shares are not available for purchase.

 

Holders of all share classes have equal pro rata rights to the assets,
dividends and liquidation proceeds of the fund. 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. Subsequent events, if any, have been evaluated through the date of issuance in the preparation
of the financial statements. The fund follows the significant accounting policies described in this section, as well as the valuation
policies described in the next section on valuation.

 

Cash — Cash may include amounts held in an interest
bearing deposit facility.

 

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.

 

Distributions paid to shareholders — Income dividends
and capital gain distributions are recorded on the ex-dividend date.

 

Currency translation — Assets and liabilities, including
investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates
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

 

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.

 

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 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. 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 table presents the fund’s valuation levels as of October 31, 2018 (dollars in thousands):

 

    Investment securities  
    Level 1     Level 2     Level 3     Total  
Assets:                                
Common stocks:                                
Energy   $ 4,320,749     $     $     $ 4,320,749  
Materials     1,267,127                   1,267,127  
Industrials     4,875,734                   4,875,734  
Consumer discretionary     2,800,416                   2,800,416  
Consumer staples     4,913,169                   4,913,169  
Health care     7,982,150                   7,982,150  
Financials     5,912,562                   5,912,562  
Information technology     5,514,604                   5,514,604  
Communication services     2,752,508                   2,752,508  
Utilities     2,320,704                   2,320,704  
Real estate     966,070                   966,070  
Miscellaneous     323,474                   323,474  
Preferred securities     10,453                   10,453  
Convertible stocks     150,728                   150,728  
Bonds, notes & other debt instruments           657,256             657,256  
Short-term securities           5,591,927             5,591,927  
Total   $ 44,110,448     $ 6,249,183     $     $ 50,359,631  

 

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, governmental
agency

 

or central bank responses to economic conditions; and currency exchange
rate, interest rate and commodity price fluctuations. These risks may be heightened in the case of smaller capitalization stocks.

 

Issuer risks — The prices of, and the income generated
by, securities held by the fund may 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, major litigation against the issuer,
changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers,
acquisitions or dispositions and the market response to any such initiatives.

 

Investing in growth-oriented stocks — Growth-oriented
common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may
involve larger price swings and greater potential for loss than other types of investments.

 

Investing in income-oriented stocks — The value of the
fund’s securities and 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. A general rise in interest rates may cause investors to sell debt securities on a large scale, which
could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the
fund. 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 failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower
yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates 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 or guarantor will weaken or be perceived to be weaker, 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. A downgrade
or default affecting any of the fund’s securities could cause the value of the fund’s shares to decrease. 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 assess
credit and default risks.

 

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, including models,
tools and data, employed by the investment adviser in this process may be flawed or incorrect and 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. 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 October 31, 2018, 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 significant interest
or penalties.

 

The fund’s tax returns are not subject to examination by federal,
state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which
is generally three years after the date of filing but can be extended in certain jurisdictions.

 

Non-U.S. taxation — Dividend and interest income are
recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of
amounts previously withheld. As a result of rulings from European courts, the fund filed for additional reclaims related to prior
years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains
realized by the fund on the sale of securities in certain countries, if any, may be subject to non-U.S.

 

taxes. If applicable, the fund records an estimated deferred tax
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 and income on certain investments. The fiscal year in which amounts are distributed may differ from the year
in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may
also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

 

During the year ended October 31, 2018, the fund reclassified $130,496,000
from total distributable earnings to capital paid in on shares of beneficial interest to align financial reporting with tax reporting.

 

As of October 31, 2018, the tax basis components of distributable
earnings, unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):

 

Undistributed ordinary income   $ 168,874  
Undistributed long-term capital gains     2,022,599  
Gross unrealized appreciation on investments     14,435,966  
Gross unrealized depreciation on investments     (862,974 )
Net unrealized appreciation on investments     13,572,992  
Cost of investments     36,786,639  

 

Distributions paid were characterized for tax purposes as follows
(dollars in thousands):

 

    Year ended October 31, 2018     Year ended October 31, 2017  
Share class   Ordinary
income
    Long-term
capital gains
    Total
distributions
paid
    Ordinary
income
    Long-term
capital gains
    Total
distributions
paid
 
Class A   $ 515,546     $ 1,033,063     $ 1,548,609     $ 499,121     $ 638,080     $ 1,137,201  
Class B1                             35       324       359  
Class C     14,364       48,796       63,160       15,205       32,474       47,679  
Class T2     3     1       1       3           3
Class F-1     25,370       55,767       81,137       27,834       39,040       66,874  
Class F-2     107,499       178,333       285,832       85,908       91,620       177,528  
Class F-34     30,686       46,683       77,369       7,139             7,139  
Class 529-A     18,052       37,314       55,366       16,177       21,029       37,206  
Class 529-B1                             3       31       34  
Class 529-C     1,601       6,131       7,732       2,297       4,964       7,261  
Class 529-E     704       1,679       2,383       681       1,013       1,694  
Class 529-T2     3     1       1       3           3
Class 529-F-1     1,555       2,868       4,423       1,432       1,665       3,097  
Class R-1     750       2,735       3,485       841       1,873       2,714  
Class R-2     3,001       10,260       13,261       3,187       6,857       10,044  
Class R-2E     198       529       727       145       196       341  
Class R-3     9,799       26,223       36,022       10,833       17,055       27,888  
Class R-4     12,132       25,537       37,669       13,402       18,229       31,631  
Class R-5E     54       25       79       1       1       2  
Class R-5     7,603       14,196       21,799       7,222       8,088       15,310  
Class R-6     264,558       426,711       691,269       203,344       207,041       410,385  
Total   $ 1,013,472     $ 1,916,852     $ 2,930,324     $ 894,807     $ 1,089,580     $ 1,984,387  

 

1 Class B and 529-B shares were fully liquidated on May 5, 2017.
2 Class T and 529-T shares began investment operations on April 7, 2017.
3 Amount less than one thousand.
4 Class F-3 shares began investment operations on January 27, 2017.

 

6. 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 0.384% on the first $1 billion of average daily net assets and decreasing to 0.223% on such assets
in excess of $34 billion. For the year ended October 31, 2018, the investment advisory services fee was $117,935,000, which was
equivalent to an annualized rate of 0.237% 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, F-3, R-5E, 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.

 

Share class   Currently approved limits   Plan limits
Class A     0.25 %     0.25 %
Class 529-A     0.25       0.50  
Classes C, 529-C and R-1     1.00       1.00  
Class R-2     0.75       1.00  
Class R-2E     0.60       0.85  
Classes 529-E and R-3     0.50       0.75  
Classes T, F-1, 529-T, 529-F-1 and R-4     0.25       0.50  

 

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 limits
are not exceeded. As of October 31, 2018, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.

 

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, T, F, 529
and R shares. Administrative services are provided by CRMC to help assist third parties providing non-distribution services to
fund shareholders. These services include providing in depth information on the fund and market developments that impact fund investments.
Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide
services to fund shareholders. The agreement between the fund and the investment adviser provides the fund the ability to charge
an administrative services fee of 0.05% of average daily net assets for all share classes. Currently Class A shares pay an annual
fee of 0.01% of average daily net assets (which could be increased as noted above) and Class C, T, 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 CollegeAmerica 529 college savings plan. The fee is based on the combined net assets invested in Class 529 and ABLE shares
of the American Funds. Class ABLE shares are offered on other American Funds by Virginia529 through ABLEAmerica, a tax-advantaged
savings program for individuals with disabilities. The quarterly fee is based on a series of decreasing annual rates beginning
with 0.10% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets
in excess of $100 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets
of Class 529 and ABLE 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. Virginia529 is not considered a related party to the fund.

 

For the year ended October 31, 2018, 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     $63,708       $19,615       $2,602     Not applicable  
Class C     11,808       893       591     Not applicable  
Class T           *     *   Not applicable  
Class F-1     3,285       1,603       662     Not applicable  
Class F-2     Not applicable       5,403       2,503     Not applicable  
Class F-3     Not applicable       147       682     Not applicable  
Class 529-A     2,188       625       471     $621  
Class 529-C     1,525       108       77     102  
Class 529-E     209       16       21     28  
Class 529-T           *     *   *
Class 529-F-1           49       37     49  
Class R-1     650       80       33     Not applicable  
Class R-2     1,862       868       125     Not applicable  
Class R-2E     82       29       7     Not applicable  
Class R-3     2,975       931       298     Not applicable  
Class R-4     1,593       659       319     Not applicable  
Class R-5E     Not applicable       4       2     Not applicable  
Class R-5     Not applicable       177       171     Not applicable  
Class R-6     Not applicable       5       5,892     Not applicable  
Total class-specific expenses     $89,885       $31,212       $14,493     $800  

 

* Amount less than one thousand.

 

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 $751,000 in the fund’s statement of operations reflects $406,000 in current fees (either paid in cash or deferred) and
a net increase of $345,000 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.

 

Security transactions with related funds — The fund
may purchase from, or sell securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures
adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having
a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions
occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in
accordance with Rule 17a-7 of the 1940 Act.

 

Interfund lending — Pursuant to an exemptive order issued
by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in
an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for
temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or
borrow cash through the interfund lending program at any time during the year ended October 31, 2018.

 

7. Capital share transactions

 

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

 

    Sales1     Reinvestments of
distributions
    Repurchases1     Net (decrease)
increase
 
Share class   Amount     Shares     Amount     Shares     Amount     Shares     Amount     Shares  
                                       
Year ended October 31, 2018                                      
                                       
Class A   $ 1,689,362       40,805     $ 1,512,529       36,894     $ (3,255,941 )     (78,826 )   $ (54,050 )     (1,127 )
Class C     144,976       3,550       62,630       1,551       (270,925 )     (6,655 )     (63,319 )     (1,554 )
Class T                                                
Class F-1     259,869       6,310       80,192       1,966       (525,164 )     (12,789 )     (185,103 )     (4,513 )
Class F-2     2,326,879       56,238       278,523       6,790       (1,107,035 )     (26,795 )     1,498,367       36,233  
Class F-3     726,556       17,562       75,597       1,842       (261,180 )     (6,307 )     540,973       13,097  
Class 529-A     148,891       3,577       55,340       1,353       (144,994 )     (3,510 )     59,237       1,420  
Class 529-C     17,312       422       7,718       190       (84,254 )     (2,024 )     (59,224 )     (1,412 )
Class 529-E     4,099       100       2,382       59       (7,432 )     (180 )     (951 )     (21 )
Class 529-T                 1       2                 1       2
Class 529-F-1     20,878       505       4,423       108       (17,322 )     (421 )     7,979       192  
Class R-1     7,996       196       3,481       86       (23,175 )     (568 )     (11,698 )     (286 )
Class R-2     54,316       1,329       13,248       327       (82,286 )     (2,017 )     (14,722 )     (361 )
Class R-2E     6,636       160       727       18       (4,401 )     (106 )     2,962       72  
Class R-3     105,780       2,583       35,998       886       (251,511 )     (6,195 )     (109,733 )     (2,726 )
Class R-4     125,524       3,050       37,625       921       (221,972 )     (5,386 )     (58,823 )     (1,415 )
Class R-5E     5,828       141       78       2       (726 )     (17 )     5,180       126  
Class R-5     47,077       1,137       21,712       529       (98,177 )     (2,381 )     (29,388 )     (715 )
Class R-6     2,013,975       48,970       691,142       16,843       (823,758 )     (19,744 )     1,881,359       46,069  
Total net increase (decrease)   $ 7,705,954       186,635     $ 2,883,346       70,365     $ (7,180,253 )     (173,921 )   $ 3,409,047       83,079  
                                                                 
Year ended October 31, 2017
 
Class A   $ 2,061,131       53,822     $ 1,108,662       29,387     $ (3,640,162 )     (94,391 )   $ (470,369 )     (11,182 )
Class B3     105       2       357       10       (18,705 )     (497 )     (18,243 )     (485 )
Class C     172,550       4,573       47,169       1,274       (326,804 )     (8,583 )     (107,085 )     (2,736 )
Class T4     10       2                             10       2
Class F-1     327,589       8,563       65,839       1,755       (573,648 )     (14,908 )     (180,220 )     (4,590 )
Class F-2     2,170,158       56,387       172,562       4,562       (1,612,038 )     (41,546 )     730,682       19,403  
Class F-35     1,081,131       27,566       6,672       168       (91,737 )     (2,307 )     996,066       25,427  
Class 529-A     94,749       2,478       37,197       988       (113,977 )     (2,949 )     17,969       517  
Class 529-B3     30       1       34       1       (2,104 )     (56 )     (2,040 )     (54 )
Class 529-C     22,812       599       7,259       195       (32,995 )     (859 )     (2,924 )     (65 )
Class 529-E     5,072       133       1,693       45       (6,287 )     (165 )     478       13  
Class 529-T4     10       2     2     2                 10       2
Class 529-F-1     13,778       359       3,096       82       (14,693 )     (382 )     2,181       59  
Class R-1     11,477       302       2,704       73       (21,677 )     (568 )     (7,496 )     (193 )
Class R-2     67,923       1,788       10,028       270       (102,076 )     (2,678 )     (24,125 )     (620 )
Class R-2E     6,430       167       341       9       (2,032 )     (53 )     4,739       123  
Class R-3     171,153       4,487       27,878       746       (234,874 )     (6,117 )     (35,843 )     (884 )
Class R-4     167,054       4,360       31,628       842       (263,720 )     (6,863 )     (65,038 )     (1,661 )
Class R-5E     8       2     1       2     (12 )     2     (3 )     2
Class R-5     108,948       2,832       15,245       403       (95,350 )     (2,479 )     28,843       756  
Class R-6     2,220,639       57,544       410,305       10,836       (788,575 )     (20,352 )     1,842,369       48,028  
Total net increase (decrease)   $ 8,702,757       225,963     $ 1,948,670       51,646     $ (7,941,466 )     (205,753 )   $ 2,709,961       71,856  

 

1 Includes exchanges between share classes of the fund.
2 Amount less than one thousand.
3 Class B and 529-B shares were fully liquidated on May 5, 2017.
4 Class T and 529-T shares began investment operations on April 7, 2017.
5 Class F-3 shares began investment operations on January 27, 2017.

 

8. Investment transactions

 

The fund made purchases and sales of investment securities, excluding
short-term securities and U.S. government obligations, if any, of $7,260,061,000 and $8,361,782,000, respectively, during the year
ended October 31, 2018.

 

Financial highlights

 

          Income from
investment operations1
    Dividends and distributions                                      
Period ended   Net asset
value,
beginning
of period
    Net
investment
income
    Net gains
(losses) on
securities
(both
realized and
unrealized)
    Total from
investment
operations
    Dividends
(from net
investment
income)
    Distributions
(from capital
gains)
    Total
dividends
and
distributions
    Net asset
value,
end
of period
    Total
return2,3
    Net assets,
end of period
(in millions)
    Ratio of
expenses to
average net
assets before
reimbursements
    Ratio of
expenses to
average net
assets after
reimbursements3
    Ratio of
net income
to average
net assets3
 
Class A:                                                                                                        
10/31/2018   $ 40.97     $ .84     $ 1.64     $ 2.48     $ (.83 )   $ (1.67 )   $ (2.50 )   $ 40.95       6.11 %   $ 25,509       .58 %     .58 %     2.03 %
10/31/2017     36.08       .82       5.87       6.69       (.79 )     (1.01 )     (1.80 )     40.97       19.02       25,571       .58       .58       2.12  
10/31/2016     36.18       .76       1.35       2.11       (.76 )     (1.45 )     (2.21 )     36.08       6.33       22,919       .59       .59       2.16  
10/31/2015     37.85       .79       (.41 )     .38       (.77 )     (1.28 )     (2.05 )     36.18       .96       22,282       .58       .58       2.13  
10/31/2014     34.27       .72       4.28       5.00       (.71 )     (.71 )     (1.42 )     37.85       14.99       22,280       .59       .59       2.02  
Class C:                                                                                                        
10/31/2018     40.40       .51       1.60       2.11       (.50 )     (1.67 )     (2.17 )     40.34       5.26       1,137       1.37       1.37       1.24  
10/31/2017     35.60       .51       5.78       6.29       (.48 )     (1.01 )     (1.49 )     40.40       18.09       1,201       1.38       1.38       1.33  
10/31/2016     35.72       .48       1.33       1.81       (.48 )     (1.45 )     (1.93 )     35.60       5.52       1,156       1.39       1.39       1.36  
10/31/2015     37.39       .49       (.40 )     .09       (.48 )     (1.28 )     (1.76 )     35.72       .15       1,135       1.38       1.38       1.33  
10/31/2014     33.88       .43       4.22       4.65       (.43 )     (.71 )     (1.14 )     37.39       14.03       1,170       1.40       1.40       1.22  
Class T:                                                                                                        
10/31/2018     40.98       .93       1.63       2.56       (.91 )     (1.67 )     (2.58 )     40.96       6.34 4     5     .36 4     .36 4     2.25 4
10/31/20176,7     38.30       .48       2.62       3.10       (.42 )           (.42 )     40.98       8.13 4,8     5     .38 4,9     .38 4,9     2.15 4,9
Class F-1:                                                                                                        
10/31/2018     40.80       .80       1.63       2.43       (.79 )     (1.67 )     (2.46 )     40.77       6.02       1,199       .66       .66       1.95  
10/31/2017     35.93       .78       5.85       6.63       (.75 )     (1.01 )     (1.76 )     40.80       18.93       1,385       .67       .67       2.04  
10/31/2016     36.04       .73       1.34       2.07       (.73 )     (1.45 )     (2.18 )     35.93       6.25       1,384       .67       .67       2.08  
10/31/2015     37.71       .75       (.40 )     .35       (.74 )     (1.28 )     (2.02 )     36.04       .88       1,374       .66       .66       2.05  
10/31/2014     34.15       .69       4.26       4.95       (.68 )     (.71 )     (1.39 )     37.71       14.88       1,309       .67       .67       1.95  
Class F-2:                                                                                                        
10/31/2018     40.97       .91       1.63       2.54       (.90 )     (1.67 )     (2.57 )     40.94       6.28       5,778       .40       .40       2.20  
10/31/2017     36.07       .88       5.88       6.76       (.85 )     (1.01 )     (1.86 )     40.97       19.26       4,297       .41       .41       2.27  
10/31/2016     36.17       .82       1.35       2.17       (.82 )     (1.45 )     (2.27 )     36.07       6.53       3,084       .42       .42       2.32  
10/31/2015     37.84       .85       (.40 )     .45       (.84 )     (1.28 )     (2.12 )     36.17       1.13       2,272       .41       .41       2.31  
10/31/2014     34.27       .78       4.27       5.05       (.77 )     (.71 )     (1.48 )     37.84       15.15       2,121       .42       .42       2.18  
Class F-3:                                                                                                        
10/31/2018     40.97       .95       1.63       2.58       (.94 )     (1.67 )     (2.61 )     40.94       6.38       1,577       .31       .31       2.29  
10/31/20176,10     37.54       .69       3.40       4.09       (.66 )           (.66 )     40.97       10.96 8     1,042       .30 9     .30 9     2.29 9
Class 529-A:                                                                                                        
10/31/2018     40.88       .80       1.63       2.43       (.79 )     (1.67 )     (2.46 )     40.85       6.01       928       .66       .66       1.95  
10/31/2017     36.00       .79       5.86       6.65       (.76 )     (1.01 )     (1.77 )     40.88       18.94       871       .66       .66       2.04  
10/31/2016     36.10       .73       1.34       2.07       (.72 )     (1.45 )     (2.17 )     36.00       6.25       749       .69       .69       2.06  
10/31/2015     37.77       .75       (.41 )     .34       (.73 )     (1.28 )     (2.01 )     36.10       .86       709       .68       .68       2.03  
10/31/2014     34.21       .68       4.26       4.94       (.67 )     (.71 )     (1.38 )     37.77       14.83       698       .69       .69       1.92  

 

          Income from
investment operations1
    Dividends and distributions                                      
Period ended   Net asset
value, 
beginning
of period
    Net
investment
income
    Net gains
(losses) on
securities
(both
realized and
unrealized)
    Total from
investment
operations
    Dividends
(from net
investment
income)
    Distributions
(from capital
gains)
    Total
dividends
and
distributions
    Net asset 
value,
end
of period
    Total
return2,3
    Net assets,
end of period
(in millions)
    Ratio of
expenses to
average net
assets before
reimbursements
    Ratio of
expenses to
average net
assets after
reimbursements3
    Ratio of
net income
to average
net assets3
 
Class 529-C:                                                                                                        
10/31/2018   $ 40.64     $ .49     $ 1.61     $ 2.10     $ (.44 )   $ (1.67 )   $ (2.11 )   $ 40.63       5.22 %   $ 140       1.42 %     1.42 %     1.20 %
10/31/2017     35.80       .49       5.82       6.31       (.46 )     (1.01 )     (1.47 )     40.64       18.04       197       1.43       1.43       1.27  
10/31/2016     35.91       .46       1.33       1.79       (.45 )     (1.45 )     (1.90 )     35.80       5.43       176       1.46       1.46       1.30  
10/31/2015     37.58       .46       (.40 )     .06       (.45 )     (1.28 )     (1.73 )     35.91       .08       176       1.46       1.46       1.26  
10/31/2014     34.04       .40       4.25       4.65       (.40 )     (.71 )     (1.11 )     37.58       13.97       179       1.47       1.47       1.14  
Class 529-E:                                                                                                        
10/31/2018     40.72       .70       1.62       2.32       (.69 )     (1.67 )     (2.36 )     40.68       5.77       41       .89       .89       1.71  
10/31/2017     35.87       .69       5.83       6.52       (.66 )     (1.01 )     (1.67 )     40.72       18.65       42       .90       .90       1.80  
10/31/2016     35.97       .64       1.35       1.99       (.64 )     (1.45 )     (2.09 )     35.87       6.02       36       .93       .93       1.83  
10/31/2015     37.64       .66       (.41 )     .25       (.64 )     (1.28 )     (1.92 )     35.97       .61       36       .93       .93       1.79  
10/31/2014     34.09       .59       4.26       4.85       (.59 )     (.71 )     (1.30 )     37.64       14.58       36       .94       .94       1.67  
Class 529-T:                                                                                                        
10/31/2018     40.98       .91       1.62       2.53       (.89 )     (1.67 )     (2.56 )     40.95       6.25 4     5     .42 4     .42 4     2.19 4
10/31/20176,7     38.30       .47       2.62       3.09       (.41 )           (.41 )     40.98       8.11 4,8     5     .43 4,9     .43 4,9     2.10 4,9
Class 529-F-1:                                                                                                    
10/31/2018     40.94       .90       1.64       2.54       (.89 )     (1.67 )     (2.56 )     40.92       6.27       78       .43       .43       2.17  
10/31/2017     36.05       .87       5.87       6.74       (.84 )     (1.01 )     (1.85 )     40.94       19.20       70       .44       .44       2.26  
10/31/2016     36.15       .81       1.34       2.15       (.80 )     (1.45 )     (2.25 )     36.05       6.48       60       .46       .46       2.29  
10/31/2015     37.82       .83       (.40 )     .43       (.82 )     (1.28 )     (2.10 )     36.15       1.09       54       .46       .46       2.26  
10/31/2014     34.25       .76       4.27       5.03       (.75 )     (.71 )     (1.46 )     37.82       15.10       54       .47       .47       2.14  
Class R-1:                                                                                                        
10/31/2018     40.54       .49       1.61       2.10       (.47 )     (1.67 )     (2.14 )     40.50       5.23       58       1.42       1.42       1.20  
10/31/2017     35.71       .49       5.81       6.30       (.46 )     (1.01 )     (1.47 )     40.54       18.06       69       1.41       1.41       1.29  
10/31/2016     35.83       .47       1.33       1.80       (.47 )     (1.45 )     (1.92 )     35.71       5.46       68       1.43       1.43       1.33  
10/31/2015     37.51       .48       (.41 )     .07       (.47 )     (1.28 )     (1.75 )     35.83       .11       72       1.41       1.41       1.31  
10/31/2014     33.98       .42       4.24       4.66       (.42 )     (.71 )     (1.13 )     37.51       14.02       72       1.42       1.42       1.19  
Class R-2:                                                                                                        
10/31/2018     40.50       .50       1.61       2.11       (.49 )     (1.67 )     (2.16 )     40.45       5.26       237       1.39       1.39       1.22  
10/31/2017     35.68       .50       5.81       6.31       (.48 )     (1.01 )     (1.49 )     40.50       18.09       251       1.39       1.39       1.32  
10/31/2016     35.81       .47       1.32       1.79       (.47 )     (1.45 )     (1.92 )     35.68       5.45       244       1.41       1.41       1.34  
10/31/2015     37.48       .49       (.40 )     .09       (.48 )     (1.28 )     (1.76 )     35.81       .17       243       1.37       1.37       1.35  
10/31/2014     33.95       .42       4.24       4.66       (.42 )     (.71 )     (1.13 )     37.48       14.05       253       1.41       1.41       1.20  
Class R-2E:                                                                                                        
10/31/2018     40.83       .62       1.62       2.24       (.61 )     (1.67 )     (2.28 )     40.79       5.53       15       1.11       1.11       1.50  
10/31/2017     35.97       .61       5.86       6.47       (.60 )     (1.01 )     (1.61 )     40.83       18.42       12       1.10       1.10       1.58  
10/31/2016     36.13       .56       1.38       1.94       (.65 )     (1.45 )     (2.10 )     35.97       5.86       7       1.09       1.09       1.59  
10/31/2015     37.83       .61       (.35 )     .26       (.68 )     (1.28 )     (1.96 )     36.13       .63 4     5     .99 4     .99 4     1.68 4
10/31/20146,11     37.19       .12       .73       .85       (.21 )           (.21 )     37.83       2.28 4,8     5     .08 4,8     .08 4,8     .32 4,8

 

See end of table for footnotes.

 

Financial highlights
(continued)

 

          Income from
investment operations1
    Dividends and distributions                                      
Period ended   Net asset
value, 
beginning
of period
    Net
investment
income
    Net gains
(losses) on
securities
(both
realized and
unrealized)
    Total from
investment
operations
    Dividends
(from net
investment
income)
    Distributions
(from capital
gains)
    Total
dividends
and
distributions
    Net asset 
value,
end
of period
    Total
return2,3
    Net assets,
end of period
(in millions)
    Ratio of
expenses to
average net
assets before
reimbursements
    Ratio of
expenses to
average net
assets after
reimbursements3
    Ratio of
net income
to average
net assets3
 
Class R-3:                                                                                                        
10/31/2018   $ 40.66     $ .68     $ 1.62     $ 2.30     $ (.67 )   $ (1.67 )   $ (2.34 )   $ 40.62       5.71 %   $ 535       .95 %     .95 %     1.66 %
10/31/2017     35.81       .67       5.84       6.51       (.65 )     (1.01 )     (1.66 )     40.66       18.62       647       .95       .95       1.76  
10/31/2016     35.93       .63       1.33       1.96       (.63 )     (1.45 )     (2.08 )     35.81       5.93       601       .97       .97       1.78  
10/31/2015     37.60       .65       (.41 )     .24       (.63 )     (1.28 )     (1.91 )     35.93       .59       611       .95       .95       1.78  
10/31/2014     34.05       .58       4.26       4.84       (.58 )     (.71 )     (1.29 )     37.60       14.58       716       .96       .96       1.66  
Class R-4:                                                                                                        
10/31/2018     40.84       .81       1.62       2.43       (.79 )     (1.67 )     (2.46 )     40.81       6.03       616       .65       .65       1.96  
10/31/2017     35.96       .80       5.85       6.65       (.76 )     (1.01 )     (1.77 )     40.84       18.98       674       .64       .64       2.07  
10/31/2016     36.07       .74       1.34       2.08       (.74 )     (1.45 )     (2.19 )     35.96       6.26       653       .67       .67       2.10  
10/31/2015     37.74       .76       (.40 )     .36       (.75 )     (1.28 )     (2.03 )     36.07       .90       757       .64       .64       2.07  
10/31/2014     34.18       .69       4.27       4.96       (.69 )     (.71 )     (1.40 )     37.74       14.89       824       .66       .66       1.96  
Class R-5E:                                                                                                        
10/31/2018     40.96       .89       1.64       2.53       (.90 )     (1.67 )     (2.57 )     40.92       6.26       5       .44       .44       2.15  
10/31/2017     36.07       .86       5.87       6.73       (.83 )     (1.01 )     (1.84 )     40.96       19.15       5     .55       .48       2.22  
10/31/20166,12     36.41       .72       1.19       1.91       (.80 )     (1.45 )     (2.25 )     36.07       5.76 8     5     .52 9     .52 9     2.18 9
Class R-5:                                                                                                        
10/31/2018     40.98       .94       1.63       2.57       (.92 )     (1.67 )     (2.59 )     40.96       6.36       324       .35       .35       2.26  
10/31/2017     36.08       .91       5.88       6.79       (.88 )     (1.01 )     (1.89 )     40.98       19.33       354       .35       .35       2.35  
10/31/2016     36.18       .85       1.35       2.20       (.85 )     (1.45 )     (2.30 )     36.08       6.59       284       .36       .36       2.39  
10/31/2015     37.85       .88       (.41 )     .47       (.86 )     (1.28 )     (2.14 )     36.18       1.20       250       .34       .34       2.38  
10/31/2014     34.27       .80       4.28       5.08       (.79 )     (.71 )     (1.50 )     37.85       15.24       346       .36       .36       2.26  
Class R-6:                                                                                                        
10/31/2018     40.99       .96       1.63       2.59       (.94 )     (1.67 )     (2.61 )     40.97       6.41       12,190       .30       .30       2.31  
10/31/2017     36.09       .93       5.87       6.80       (.89 )     (1.01 )     (1.90 )     40.99       19.38       10,309       .30       .30       2.39  
10/31/2016     36.19       .86       1.35       2.21       (.86 )     (1.45 )     (2.31 )     36.09       6.65       7,343       .30       .30       2.43  
10/31/2015     37.86       .89       (.40 )     .49       (.88 )     (1.28 )     (2.16 )     36.19       1.25       5,609       .30       .30       2.41  
10/31/2014     34.28       .82       4.28       5.10       (.81 )     (.71 )     (1.52 )     37.86       15.31       4,932       .30       .30       2.31  

 

    Year ended October
31
    2018   2017   2016   2015   2014
Portfolio turnover rate for all share
classes
  16%   20%   18%   27%   16%

 

1 Based
on average shares outstanding.
2 Total returns exclude
any applicable sales charges, including contingent deferred sales charges.
3 This column reflects
the impact, if any, of certain reimbursements from CRMC. During one of the periods shown, CRMC paid a portion of the fund’s
transfer agent fees for certain retirement plan share classes.
4 All or a significant
portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services
are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses
would have been higher and net income and total return would have been lower.
5 Amount less than
$1 million.
6 Based on operations
for a period that is less than a full year.
7 Class T and 529-T
shares began investment operations on April 7, 2017.
8 Not annualized.
9 Annualized.
10 Class F-3 shares
began investment operations on January 27, 2017.
11 Class R-2E shares
began investment operations on August 29, 2014.
12 Class R-5E shares
began investment operations on November 20, 2015.

 

See notes to financial statements

 

Report of Independent Registered Public Accounting Firm

 

To the Shareholders and Board of Trustees of American Mutual Fund:

 

Opinion on the Financial Statements and Financial Highlights

 

We have audited the accompanying statement of assets and liabilities
of American Mutual Fund (the “Fund”), including the summary investment portfolio, as of October 31, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion,
the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund
as of October 31, 2018, and 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 five years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements and financial highlights are the responsibility
of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial
highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United
States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws
and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB.
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, whether due to error or fraud. The Fund is not required to have, nor
were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to
obtain an understanding of internal control over financial reporting 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.

 

Our audits included performing procedures to assess the risks of
material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights.
Our procedures included confirmation of securities owned as of October 31, 2018, by correspondence with the custodian and brokers;
when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable
basis for our opinion.

 

Deloitte & Touche LLP

 

Costa Mesa, California

December 6, 2018

 

We have served as the auditor of one or more American Funds investment
companies since 1956.

 

Expense example unaudited

 

As a fund shareholder, you incur two types of costs: (1) transaction
costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2)
ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to
help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs
of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and
held for the entire six-month period (May 1, 2018, through October 31, 2018).

 

Actual expenses:

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

 

Hypothetical example for comparison purposes:

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

 

Notes:

Retirement plan participants may be subject to certain fees charged
by the plan sponsor, and Class F-1, F-2, F-3 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries,
typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees
by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above.
In addition, your ending account value would be lower by the amount of these fees.

 

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

 

    Beginning
account value
    Ending
account value
    Expenses paid     Annualized  
    5/1/2018     10/31/2018     during period*     expense ratio  
Class A – actual return   $ 1,000.00     $ 1,033.58     $ 2.92       .57 %
Class A – assumed 5% return     1,000.00       1,022.33       2.91       .57  
Class C – actual return     1,000.00       1,029.52       6.96       1.36  
Class C – assumed 5% return     1,000.00       1,018.35       6.92       1.36  
Class T – actual return     1,000.00       1,034.94       1.85       .36  
Class T – assumed 5% return     1,000.00       1,023.39       1.84       .36  
Class F-1 – actual return     1,000.00       1,033.27       3.38       .66  
Class F-1 – assumed 5% return     1,000.00       1,021.88       3.36       .66  
Class F-2 – actual return     1,000.00       1,034.55       2.05       .40  
Class F-2 – assumed 5% return     1,000.00       1,023.19       2.04       .40  
Class F-3 – actual return     1,000.00       1,035.00       1.54       .30  
Class F-3 – assumed 5% return     1,000.00       1,023.69       1.53       .30  
Class 529-A – actual return     1,000.00       1,033.22       3.38       .66  
Class 529-A – assumed 5% return     1,000.00       1,021.88       3.36       .66  
Class 529-C – actual return     1,000.00       1,029.24       7.21       1.41  
Class 529-C – assumed 5% return     1,000.00       1,018.10       7.17       1.41  
Class 529-E – actual return     1,000.00       1,032.17       4.56       .89  
Class 529-E – assumed 5% return     1,000.00       1,020.72       4.53       .89  
Class 529-T – actual return     1,000.00       1,034.32       2.15       .42  
Class 529-T – assumed 5% return     1,000.00       1,023.09       2.14       .42  
Class 529-F-1 – actual return     1,000.00       1,034.58       2.15       .42  
Class 529-F-1 – assumed 5% return     1,000.00       1,023.09       2.14       .42  
Class R-1 – actual return     1,000.00       1,029.31       7.26       1.42  
Class R-1 – assumed 5% return     1,000.00       1,018.05       7.22       1.42  
Class R-2 – actual return     1,000.00       1,029.61       7.06       1.38  
Class R-2 – assumed 5% return     1,000.00       1,018.25       7.02       1.38  
Class R-2E – actual return     1,000.00       1,030.84       5.63       1.10  
Class R-2E – assumed 5% return     1,000.00       1,019.66       5.60       1.10  
Class R-3 – actual return     1,000.00       1,031.71       4.81       .94  
Class R-3 – assumed 5% return     1,000.00       1,020.47       4.79       .94  
Class R-4 – actual return     1,000.00       1,033.35       3.28       .64  
Class R-4 – assumed 5% return     1,000.00       1,021.98       3.26       .64  
Class R-5E – actual return     1,000.00       1,034.38       2.26       .44  
Class R-5E – assumed 5% return     1,000.00       1,022.99       2.24       .44  
Class R-5 – actual return     1,000.00       1,035.02       1.74       .34  
Class R-5 – assumed 5% return     1,000.00       1,023.49       1.73       .34  
Class R-6 – actual return     1,000.00       1,035.23       1.49       .29  
Class R-6 – assumed 5% return     1,000.00       1,023.74       1.48       .29  

 

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

 

Tax information unaudited

 

We are required to advise you of the federal tax status of certain
distributions received by shareholders during the fiscal year. The fund hereby designates the following amounts for the fund’s
fiscal year ended October 31, 2018:

 

Long-term capital gains $2,047,248,000
Qualified dividend income 100%
Corporate dividends received deduction 100%
U.S. government income that may be exempt from state taxation $45,372,000

 

Individual shareholders should refer to their Form 1099 or
other tax information, which will be mailed in January 2019, to determine the calendar year amounts to be included on
their 2018 tax returns. Shareholders should consult their tax advisors.

 

Board of trustees and other officers

 

Independent trustees1

 

Name and year of birth   Year first
elected
a trustee
of the fund 2
  Principal occupation(s) during past five years   Number of
portfolios in fund
complex overseen
by trustee
  Other directorships3
held by trustee
Louise H. Bryson, 1944   2010   Chair Emerita of the Board of Trustees, J. Paul Getty Trust; former President, Distribution, Lifetime Entertainment Network
(retired 2008); former Executive Vice President and General Manager, Lifetime Movie Network (retired 2008)
  7   None
Mary Anne Dolan, 1947   1993   Founder and President, MAD Ink (communications
company) former Editor-in-Chief, The Los Angeles Herald Examiner (retired 1989)
  10   None
James G. Ellis, 1947   2010   Dean and Professor of Marketing, Marshall School of Business, University of Southern California   81   Mercury General Corporation
Leonard R. Fuller, 1946   2010   Private investor; former President and CEO, Fuller Consulting (financial management consulting)   81   None
Pablo R. González Guajardo, 1967   2015   CEO, Kimberly-Clark de México, S.A.B. de C.V.   7   América Móvil, S.A.B. de C.V.; Grupo Lala, S.A.B. de C.V.; Grupo Sanborns, S.A.B. de C.V.; Kimberly-Clark
de México, S.A.B. de C.V.
William D. Jones, 1955
Chairman of the Board
(Independent and Non-Executive)
  2006   Real estate developer/owner, President and CEO, CityLink Investment Corporation (acquires, develops and manages real estate
ventures in urban communities) and City Scene Management Company (provides commercial asset management services)
  8   Sempra Energy
John C. Mazziotta, MD, PhD, 1949   2011   Physician; Professor of Neurology, University of California, Los Angeles; Vice Chancellor, UCLA Health Sciences; CEO,
UCLA Health System; former Dean, David Geffen School of Medicine at UCLA; former Chair, Department of Neurology, UCLA; former
Associate Director, Semel Institute, UCLA; former Director, Brain Mapping Center, UCLA
  4   None
William R. McLaughlin, 1956   2015   President and CEO, The Orvis Company   4   None

 

William H. Kling, a trustee of the fund since
2006, and Bailey Morris-Eck, a trustee of the fund since 1999, have retired from the board. Leonard R. Fuller, a trustee of the
fund since 2010, will retire from the board on December 31, 2018. The trustees thank Mr. Fuller, Mr. Kling and Ms. Morris-Eck for
their dedication and service to the fund and its shareholders.

 

Interested trustees4,5

 

Name, year of birth and
position with fund
  Year first
elected
a trustee
or officer
of the fund2
  Principal occupation(s) during 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
Joyce E. Gordon, 1956
Co-President
  1996–2001
2005
  Partner — Capital Research Global Investors, Capital Research and Management Company; Director, Capital Research
and Management Company
  2   None
William L. Robbins, 1968
Co-President
  2004   Partner — Capital International Investors, Capital Research and Management Company   1   None

 

Other officers5

 

Name, year of birth and
position with fund
  Year first
elected
an officer
of the fund2
  Principal occupation(s) during past five years and positions held with affiliated
entities
or the principal underwriter of the fund
Herbert Y. Poon, 1973
Executive Vice President
  2012   Senior Vice President and Senior Counsel — Fund Business Management Group,
Capital Research and Management Company
James B. Lovelace, 1956
Senior Vice President
  2006   Partner — Capital Research Global Investors, Capital Research and Management Company;
Director, Capital Research and Management Company
James Terrile, 1965
Senior Vice President
  2007   Partner — Capital Research Global Investors, Capital Research and Management Company;
Director, The Capital Group Companies, Inc.;6
Director, Capital Strategy Research, Inc.6
Dylan Yolles, 1969
Senior Vice President
  2015   Partner — Capital International Investors, Capital Research and Management Company
Cheryl Frank, 1975
Vice President
  2018   Partner — Capital International Investors, Capital Research and Management Company;
Director, The Capital Group Companies, Inc.6
Joseph D. Matt, 1976
Vice President
  2015   Partner — Capital Research Global Investors, Capital Research and Management Company
Laurie D. Neat, 1971
Secretary
  2016   Vice President — Fund Business Management Group, Capital Research and Management Company;
Vice President, Capital Guardian Trust Company;6
Vice President and Trust Officer, Capital Bank and Trust Company;6
Vice President, Capital International, Inc.6
Brian D. Bullard, 1969
Treasurer
  2015   Senior Vice President — Investment Operations, Capital Research and Management Company
Dori Laskin, 1951
Assistant Treasurer
  2011   Vice President — Investment Operations, Capital Research and Management Company
Hong T. Le, 1978
Assistant Treasurer
  2016   Assistant Vice President — Investment Operations, Capital Research and Management Company;
Assistant Vice President, Capital Bank and Trust Company6

 

The fund’s statement of additional information includes
further details about fund trustees and is available without charge upon request by calling American Funds Service Company at (800)
421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the fund
is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

 

1 The term independent trustee refers to a trustee
who is not an “interested person” of the fund within the meaning of the Investment Company Act of 1940.
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 trustee or director of a public company or a registered investment company.
4 The term interested trustee refers to a trustee who is an “interested
person” within the meaning of the Investment Company Act of 1940, on the basis of their 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 trustees and/or officers listed, with the exception
of Cheryl Frank and Joseph D. Matt, 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.
6 Company affiliated with Capital Research and Management Company.

 

Board of trustees and other officers
(continued)

 

Results of special meeting of shareholders

 

held November 28, 2018

 

Shares outstanding on August 31, 2018 (record date)

1,220,162,608

 

Total shares voting on November 28, 2018

1,038,037,352 (85.1% of shares outstanding)

 

The Proposal: To elect board members:

 

    Votes for     Percent
of shares
voting for
  Votes withheld     Percent
of shares
voting withheld
Louise H. Bryson     1,015,969,830       97.9 %     22,067,522       2.1 %
Mary Anne Dolan     1,015,885,539       97.9       22,151,813       2.1  
James G. Ellis     1,014,101,443       97.7       23,935,909       2.3  
Pablo R. González Guajardo     941,270,995       90.7       96,766,357       9.3  
William D. Jones     1,015,418,653       97.8       22,618,699       2.2  
John C. Mazziotta     1,014,996,705       97.8       23,040,648       2.2  
William R. McLaughlin     1,016,355,560       97.9       21,681,793       2.1  
William L. Robbins     1,016,005,727       97.9       22,031,625       2.1  
Kenneth M. Simril     1,016,053,786       97.9       21,983,566       2.1  
James R. Terrile     1,015,952,560       97.9       22,084,792       2.1  
Kathy J. Williams     1,016,556,537       97.9       21,480,815       2.1  

 

Offices of the fund and of the investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

 

6455 Irvine Center Drive Irvine, CA 92618-4518

 

Transfer agent for shareholder accounts

American Funds Service Company

(Write to the address near you.)

 

P.O. Box 6007

Indianapolis, IN 46206-6007

 

P.O. Box 2280

Norfolk, VA 23501-2280

 

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

 

Counsel

O’Melveny & Myers LLP

400 South Hope Street

Los Angeles, CA 90071-2899

 

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

 

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

 

Investors should carefully consider investment objectives, risks,
charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can
be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service
Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American
Funds Distributors, Inc.

 

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

 

A complete October 31, 2018, portfolio of American Mutual Fund’s
investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

 

American Mutual Fund files a complete list of its portfolio holdings
with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC
website. Additionally, the list of portfolio holdings is available by calling AFS.

 

This report is for the information of shareholders of American Mutual
Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus,
which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material
after December 31, 2018, this report must be accompanied by an American Funds statistical update for the most recently completed
calendar quarter.

 

The Standard & Poor’s 500 Composite Index (“Index”)
is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright ©
2018 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or
reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.

The Capital Advantage®

 

Since 1931, American Funds by Capital Group has helped investors
pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM
has resulted in a superior long-term track record.

 

Aligned with investor success

We base our decisions on a long-term perspective, which we believe
aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including
22 years at our company, reflecting a career commitment to our long-term approach.1

 

The Capital System

The Capital System combines individual accountability with teamwork.
Funds using The Capital System are divided into portions that are managed independently by investment professionals with diverse
backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

 

American Funds’ superior long-term track record

Equity funds have beaten their Lipper peer indexes in 92% of 10-year
periods and 99% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 77% of 10-year periods and 80% of 20-year
periods.2 Fund management fees have been among the lowest in the industry.3

 

1 Portfolio manager experience as of December 31, 2017.
2 Based on Class F-2 share results for rolling periods through December 31, 2017. Periods covered are the shorter of the
fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World
Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. Class F-2 shares
were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class
A share results without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception
date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’
date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates
of first sale.
3 On average, our management fees were in the lowest quintile 71% of the time, based on the 20-year period ended December
31, 2017, versus comparable Lipper categories, excluding funds of funds.

 

All Capital Group trademarks referenced are registered trademarks
owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks
or registered trademarks of their respective companies.

 


 

 

ITEM 2 – Code of Ethics

 

The Registrant has adopted a Code of
Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to
any person without charge, upon request, a copy of the Code of Ethics. Such request can be made by calling 800/421-4225 or to the
Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071.

 

ITEM 3 – Audit Committee Financial
Expert

 

The Registrant’s board has determined
that James G. Ellis, a member of the Registrant’s audit committee, is an “audit committee financial expert” and
“independent,” as such terms are defined in this Item. This designation will not increase the designee’s duties,
obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of
the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through
education or experience, would qualify as “audit committee financial experts” if the board had designated them as such.
Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of
the Registrant’s financial statements and condition.

 

ITEM 4 – Principal Accountant
Fees and Services

 

Registrant:
  a)  Audit Fees:
    2017 $96,000
    2018 $8,000
     
  b)  Audit-Related Fees:
    2017 $12,000
    2018 $6,000
     
  c)  Tax Fees:
    2017 $8,000
    2018 $8,000
    The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.
     
  d)  All Other Fees:
    2017 None
    2018 None
     
    Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
  a)  Audit Fees:
    Not Applicable
     
  b)  Audit-Related Fees:
    2017 $1,194,000
    2018 $1,325,000
    The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants.
     
  c)  Tax Fees:
    2017 None
    2018 None
    The tax fees consist of consulting services relating to the Registrant’s investments.
       
       
  d)  All Other Fees:
    2017 None
    2018 $80,000
    The other fees consist of subscription services related to an accounting research tool.
     
       
    All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee.  The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services.  Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates.
       
    Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $1,401,000 for fiscal year 2017 and $1,420,000 for fiscal year 2018. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.

 

ITEM 5 – Audit Committee of Listed
Registrants

 

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

 

ITEM 6 – Schedule of Investments

 

American Mutual Fund®

Investment portfolio

October 31, 2018

Common stocks 87.26%
Energy 8.58%
Shares Value
(000)
Baker Hughes, a GE Co., Class A 1,943,000 $51,859
Canadian Natural Resources, Ltd. (CAD denominated) 4,908,000 134,663
Chevron Corp. 3,744,700 418,096
ConocoPhillips 6,519,500 455,713
Enbridge Inc. 12,627,530 392,842
Enbridge Inc. (CAD denominated) 223,900 6,977
Enbridge Inc. (CAD denominated)1 1,645,344 51,268
EOG Resources, Inc. 3,398,900 358,040
Exxon Mobil Corp. 7,978,000 635,687
Halliburton Co. 525,900 18,238
Helmerich & Payne, Inc. 1,120,000 69,765
Inter Pipeline Ltd. 5,302,100 85,989
Occidental Petroleum Corp. 1,629,600 109,297
Royal Dutch Shell PLC, Class A (ADR) 4,458,523 281,734
Royal Dutch Shell PLC, Class B (ADR) 3,664,100 240,768
Schlumberger Ltd. 6,287,200 322,596
Suncor Energy Inc. 11,405,910 382,609
TransCanada Corp. 8,078,200 304,608
    4,320,749
Materials 2.52%    
Barrick Gold Corp. 1,200,000 15,060
DowDuPont Inc. 2,715,717 146,432
Linde PLC 3,688,524 610,340
Mosaic Co. 2,400,500 74,272
Nucor Corp. 1,099,600 65,008
Nutrien Ltd. 5,884,320 311,457
PPG Industries, Inc. 424,000 44,558
    1,267,127
Industrials 9.68%    
BAE Systems PLC (ADR) 1,306,300 35,205
Boeing Co. 1,563,000 554,646
C.H. Robinson Worldwide, Inc. 1,775,315 158,056
CSX Corp. 7,240,193 498,560
Cummins Inc. 802,000 109,625
Deere & Co. 2,182,100 295,544
Emerson Electric Co. 681,850 46,284
General Dynamics Corp. 2,309,675 398,604
General Electric Co. 11,711,800 118,289
Illinois Tool Works Inc. 2,050,000 261,519
Lockheed Martin Corp. 2,081,560 611,666
Masco Corp. 1,300,000 39,000
Norfolk Southern Corp. 2,058,100 345,411
Northrop Grumman Corp. 1,081,700 283,351
RELX PLC (ADR) 1,044,900 20,543
Republic Services, Inc. 801,600 58,260

American Mutual Fund — Page 1 of 6


Common stocks
Industrials (continued)
Shares Value
(000)
Union Pacific Corp. 2,248,471 $328,771
United Technologies Corp. 3,222,574 400,276
Waste Connections, Inc. 2,521,500 192,744
Waste Management, Inc. 1,334,300 119,380
    4,875,734
Consumer discretionary 5.56%    
Carnival Corp., units 1,538,200 86,201
Hasbro, Inc. 3,058,388 280,485
Home Depot, Inc. 3,671,250 645,699
Lowe’s Companies, Inc. 1,800,000 171,396
Marriott International, Inc., Class A 683,500 79,894
McDonald’s Corp. 3,404,000 602,168
Newell Brands Inc. 2,963,519 47,061
NIKE, Inc., Class B 2,754,200 206,675
Ross Stores, Inc. 1,052,700 104,217
Starbucks Corp. 3,760,000 219,095
Target Corp. 2,500,000 209,075
Williams-Sonoma, Inc. 2,500,000 148,450
    2,800,416
Consumer staples 9.75%    
Church & Dwight Co., Inc. 961,100 57,061
Coca-Cola Co. 19,036,100 911,448
Colgate-Palmolive Co. 994,200 59,205
Costco Wholesale Corp. 3,350,700 766,071
Hormel Foods Corp. 7,526,400 328,452
Kellogg Co. 6,337,423 414,974
Kimberly-Clark Corp. 3,000,000 312,900
Kraft Heinz Co. 2,292,000 125,991
Kroger Co. 6,900,000 205,344
Mondelez International, Inc. 7,518,400 315,622
Nestlé SA 1,600,000 135,225
Nestlé SA (ADR) 1,238,500 104,381
PepsiCo, Inc. 1,235,769 138,876
Procter & Gamble Co. 7,781,978 690,106
Unilever PLC (ADR) 981,000 51,973
Walgreens Boots Alliance, Inc. 3,704,900 295,540
    4,913,169
Health care 15.85%    
Abbott Laboratories 11,917,000 821,558
AbbVie Inc. 16,288,800 1,268,083
Amgen Inc. 5,714,378 1,101,675
AstraZeneca PLC (ADR) 4,527,099 175,561
Cardinal Health, Inc. 795,500 40,252
CVS Health Corp. 2,200,000 159,258
Danaher Corp. 1,500,000 149,100
Eli Lilly and Co. 3,869,700 419,630
Gilead Sciences, Inc. 9,744,800 664,400
Johnson & Johnson 2,264,611 317,023
Medtronic PLC 2,451,500 220,194
Merck & Co., Inc. 7,673,385 564,838
Novartis AG (ADR) 3,014,000 263,604
Pfizer Inc. 10,978,400 472,730

American Mutual Fund — Page 2 of 6


Common stocks
Health care (continued)
Shares Value
(000)
Roche Holding AG (ADR) 2,715,200 $82,434
Stryker Corp. 1,446,000 234,570
Thermo Fisher Scientific Inc. 1,434,000 335,054
UnitedHealth Group Inc. 2,648,500 692,186
    7,982,150
Financials 11.74%    
Aon PLC, Class A 2,036,700 318,092
Bank of Montreal 528,736 39,533
Bank of New York Mellon Corp. 8,372,500 396,270
BB&T Corp. 1,615,000 79,393
Berkshire Hathaway Inc., Class B2 835,000 171,409
Chubb Ltd. 1,915,400 239,253
CME Group Inc., Class A 2,911,700 533,540
Huntington Bancshares Inc. 14,374,000 205,979
Intercontinental Exchange, Inc. 3,108,965 239,515
Invesco Ltd. 4,157,800 90,266
JPMorgan Chase & Co. 6,270,697 683,631
Marsh & McLennan Companies, Inc. 4,546,094 385,281
Nasdaq, Inc. 1,614,400 139,985
PNC Financial Services Group, Inc. 1,069,600 137,433
Principal Financial Group, Inc. 3,900,000 183,573
Progressive Corp. 2,000,000 139,400
Royal Bank of Canada 2,883,000 210,063
State Street Corp. 4,056,300 278,871
Toronto-Dominion Bank 4,958,400 274,993
Toronto-Dominion Bank (CAD denominated) 2,500,000 138,687
U.S. Bancorp 4,000,000 209,080
Wells Fargo & Co. 13,684,200 728,410
Willis Towers Watson PLC 628,000 89,905
    5,912,562
Information technology 10.95%    
Accenture PLC, Class A 3,292,700 518,995
Amphenol Corp., Class A 270,000 24,165
Analog Devices, Inc. 2,920,800 244,500
Apple Inc. 2,447,600 535,682
Applied Materials, Inc. 200,000 6,576
Cisco Systems, Inc. 6,576,000 300,852
HP Inc. 1,180,500 28,497
Intel Corp. 17,452,200 818,159
Maxim Integrated Products, Inc. 1,500,000 75,030
Microsoft Corp. 13,539,707 1,446,176
NetApp, Inc. 1,485,800 116,621
QUALCOMM Inc. 6,360,107 399,987
Samsung Electronics Co., Ltd. (GDR) 17,000 15,861
Samsung Electronics Co., Ltd., preferred (GDR) 21,017 16,435
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) 6,000,000 228,600
Texas Instruments Inc. 6,493,695 602,810
Visa Inc., Class A 984,100 135,658
    5,514,604

American Mutual Fund — Page 3 of 6


Common stocks
Communication services 5.46%
Shares Value
(000)
Activision Blizzard, Inc. 1,467,600 $101,338
AT&T Inc. 2,325,002 71,331
BCE Inc. 1,000,000 38,880
Comcast Corp., Class A 10,824,600 412,850
TELUS Corp. 4,040,000 138,344
Verizon Communications Inc. 33,626,014 1,919,709
Viacom Inc., Class B 2,190,600 70,056
    2,752,508
Utilities 4.61%    
American Electric Power Co., Inc. 10,059,000 737,928
CMS Energy Corp. 2,693,800 133,397
Dominion Energy, Inc. 3,695,000 263,897
Duke Energy Corp. 1,147,857 94,847
Edison International 931,200 64,616
Exelon Corp. 5,435,320 238,121
NiSource Inc. 2,636,479 66,861
PPL Corp. 2,044,300 62,147
Sempra Energy 4,485,753 493,971
Xcel Energy Inc. 3,365,000 164,919
    2,320,704
Real estate 1.92%    
Crown Castle International Corp. REIT 2,160,000 234,878
Digital Realty Trust, Inc. REIT 1,446,800 149,397
Public Storage REIT 120,000 24,656
Simon Property Group, Inc. REIT 2,021,000 370,894
Ventas, Inc. REIT 3,208,900 186,245
    966,070
Miscellaneous 0.64%    
Other common stocks in initial period of acquisition   323,474
Total common stocks (cost: $30,576,995,000)   43,949,267
Preferred securities 0.02%
Financials 0.02%
   
U.S. Bancorp, Series F, 6.50% noncumulative depositary shares 387,000 10,453
Total preferred securities (cost: $10,004,000)   10,453
Convertible stocks 0.30%
Utilities 0.30%
   
Dominion Energy, Inc., Series A units, 6.75% convertible preferred 2019 1,450,000 69,528
NextEra Energy, Inc., units, 6.123% convertible preferred 2019 1,400,000 81,200
Total convertible stocks (cost: $141,212,000)   150,728
Bonds, notes & other debt instruments 1.30%
U.S. Treasury bonds & notes 1.07%
U.S. Treasury 1.07%
Principal amount
(000)
 
U.S. Treasury 1.375% 2021 $563,210 541,847

American Mutual Fund — Page 4 of 6


Bonds, notes & other debt instruments
Corporate bonds & notes 0.23%
Financials 0.23%
Principal amount
(000)
Value
(000)
JPMorgan Chase & Co., Series I, junior subordinated 5.99% (undated)
(3-month USD-LIBOR + 3.47% on 1/30/2019)3
$27,015 $27,150
Wells Fargo & Co., Series K, junior subordinated 6.104% (undated)
(3-month USD-LIBOR + 3.77% on 3/15/2019)3
87,493 88,259
    115,409
Total bonds, notes & other debt instruments (cost: $672,713,000)   657,256
Short-term securities 11.10%    
Apple Inc. 2.20%–2.21% due 11/15/2018–12/7/20181 83,000 82,867
CAFCO, LLC 2.52% due 1/24/20191 40,000 39,759
Chariot Funding, LLC 2.25% due 11/1/20181 60,000 59,996
CHARTA, LLC 2.25% due 11/7/2018–11/15/20181 100,000 99,930
Chevron Corp. 2.20%–2.24% due 11/6/2018–12/3/20181 84,800 84,727
Coca-Cola Co. 2.13%–2.30% due 11/20/2018–12/20/20181 80,000 79,798
CRC Funding, LLC 2.15% due 11/13/20181 40,000 39,967
Emerson Electric Co. 2.22% due 11/27/20181 25,000 24,957
Estée Lauder Companies Inc. 2.22% due 11/16/20181 20,000 19,980
Federal Home Loan Bank 1.99%–2.34% due 11/2/2018–3/15/2019 2,730,800 2,724,489
Freddie Mac 1.98%–2.27% due 11/2/2018–1/22/2019 250,000 249,650
General Dynamics Corp. 2.25% due 11/27/20181 35,000 34,940
Honeywell International Inc. 2.20% due 11/7/20181 30,000 29,987
Merck & Co. Inc. 2.33%–2.39% due 1/15/2019–2/5/20191 138,700 137,921
Pfizer Inc. 2.30% due 1/23/20191 100,000 99,450
Procter & Gamble Co. 2.33% due 1/22/20191 38,200 37,993
Simon Property Group, LP 2.20% due 11/13/20181 35,500 35,471
U.S. Treasury Bills 1.98%–2.40% due 11/1/2018–4/18/2019 1,716,200 1,710,045
Total short-term securities (cost: $5,592,206,000)   5,591,927
Total investment securities 99.98% (cost: $36,993,130,000)   50,359,631
Other assets less liabilities 0.02%   7,809
Net assets 100.00%   $50,367,440

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.

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 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 $959,011,000, which represented 1.90% of the net assets of the fund.
2 Security did not produce income during the last 12 months.
3 Step bond; coupon rate may change at a later date.

    

Key to abbreviations and symbol
ADR = American Depositary Receipts
CAD = Canadian dollars
GDR = Global Depositary Receipts
LIBOR = London Interbank Offered Rate
USD/$ = U.S. dollars

American Mutual Fund — Page 5 of 6


Additional financial disclosures
are included in the fund’s current shareholder report and should be read in conjunction with this report.

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

Investors should carefully consider
investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be
read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds
Distributors, Inc.

All Capital Group trademarks
referenced are registered trademarks owned by The Capital Group Companies, Inc. or an affiliated company. All other company and product names mentioned are the trademarks or registered trademarks of their respective
companies.

©2018 Capital Group. All rights
reserved.

MFGEFPX-003-1218O-S66107 American Mutual Fund — Page 6 of 6

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INVESTMENT
PORTFOLIO

 

To the Shareholders and Board of Trustees of American Mutual Fund:

 

Opinion on the Investment Portfolio

 

We have audited the accompanying investment portfolio of American
Mutual Fund (the “Fund”), as of October 31, 2018, and the related notes (“investment portfolio”) (included
in Item 6 of this Form N-CSR). In our opinion, the investment portfolio presents fairly, in all material respects, the investments
in securities of the Fund as of October 31, 2018, in conformity with accounting principles generally accepted in the United States
of America.

 

Basis for Opinion

 

The investment portfolio is the responsibility of the Fund’s
management. Our responsibility is to express an opinion on the investment portfolio based on our audit. We are a public accounting
firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with
respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.

 

We conducted our audit in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the investment portfolio
is free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform,
an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal
control over financial reporting 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.

 

Our audit included performing procedures to assess the risks of
material misstatement of the investment portfolio, whether due to error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the investment portfolio.
Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the investment portfolio. We believe that our audit provides a reasonable basis for our opinion.

 

 

Costa Mesa, California

 

December 6, 2018

 

 

We have served as the auditor of one or more American Funds investment
companies since 1956.

 

 

 

 

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

 

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

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

 

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

 

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

 

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

 

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

 

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

 

ITEM 11 – Controls and Procedures

 

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
   
(b) Effective May 28, 2018, the American Mutual Fund’s investment adviser implemented a new fixed income order management, trading, and compliance system.  In connection with introducing this new system, additional automated and manual controls were implemented and some existing controls were modified.  None of these changes were in response to any identified deficiency or weakness in the American Mutual Fund’s internal control over financial reporting.

 

ITEM 12 – Exhibits

 

(a)(1) The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.
   
(a)(2) The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

 

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

 

  AMERICAN MUTUAL FUND
   
  By /s/ Herbert Y. Poon
 

Herbert Y. Poon, Executive Vice President
and

Principal Executive Officer

   
  Date: December 31, 2018

 

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

 

 

 

By /s/ Herbert Y. Poon

Herbert Y. Poon, Executive Vice President
and

Principal Executive Officer