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Morningstar Analyst Rating 08-26-13

Morningstar Pillars
Process
Performance
People
Parent
Price
Positive
Positive
Positive
Positive
Positive
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst RatingSpectrum

Pillar Spectrum
Positive Negative Neutral
NAV 36.70 30.16 27.09 28.16 25.95 20.96 32.95 33.51 31.36 30.75 28.84 23.48
Total Return % 32.43 15.60 -1.76 10.86 27.18 -34.73 5.94 15.94 6.87 9.78 26.31 -14.47
+/-S&P 500 0.04 -0.40 -3.87 -4.20 0.72 2.27 0.45 0.15 1.96 -1.10 -2.37 7.63
+/-Russ 1000 -0.68 -0.82 -3.26 -5.24 -1.25 2.87 0.17 0.48 0.60 -1.62 -3.58 7.18
Income Return % 2.10 2.68 2.08 2.18 2.75 2.08 1.98 2.38 2.23 1.82 2.23 1.84
Capital Return % 30.33 12.92 -3.84 8.68 24.43 -36.81 3.96 13.56 4.64 7.96 24.08 -16.31
Total Rtn % Rank Cat 41 43 59 85 49 30 19 77 35 83 64 18
Income $ 0.63 0.72 0.58 0.56 0.57 0.68 0.66 0.74 0.68 0.52 0.52 0.52
Capital Gains $ 2.51 0.42 0.00 0.00 0.00 0.00 1.86 2.06 0.81 0.36 0.21 0.46
Expense Ratio %
.
0.62 0.61 0.61 0.66 0.57 0.54 0.54 0.55 0.57 0.59 0.59
Income Ratio %
.
2.02 2.05 2.12 2.32 2.25 2.05 2.16 2.06 2.06 2.14 1.89
Turnover Rate %
.
21 28 23 28 31 22 20 19
. .
27
Net Assets $mil 55,032 44,501 42,643 48,789 49,144 43,244 73,471 74,181 66,959 64,880 58,353 46,129
Performance 12-31-13
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2009
2010
2011
2012
2013
-8.38 15.30 12.97 6.57 27.18
3.25 -11.58 11.70 8.71 10.86
4.30 -0.39 -14.41 10.49 -1.76
11.08 -2.42 5.76 0.85 15.60
9.26 2.95 6.63 10.42 32.43
Trailing Total +/- +/- Russ %Rank Growth of
Return% S&P 500 1000 Cat $10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
10.42 -0.09 0.19 34 11,042
17.74 1.43 0.88 24 11,774
32.43 0.04 -0.68 41 13,243
14.57 -1.61 -1.73 55 15,039
16.22 -1.72 -2.37 66 21,203
7.15 -0.26 -0.63 40 19,949
6.26 1.58 1.18 20 24,863
Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
10.97 82 1.21 78
13.63 87 1.06 85
5.32 76 1.12 82
Potential Capital Gain Exposure: 38% of assets
Rating and Risk
Time Load-Adj Morningstar Morningstar Morningstar
Period Return % Rtn vs Cat Risk vs Cat Risk-Adj Rating
1 Yr 24.81
3 Yr 12.33 -Avg -Avg
5 Yr 14.85 -Avg -Avg
10 Yr 6.51 -Avg -Avg
Incept 12.15
Other Measures Standard Index Best Fit Index
S&P 500 Russ 1000
Alpha -0.8 -0.6
Beta 0.96 0.94
R-Squared 97 98
Standard Deviation 11.77
Mean 14.57
Sharpe Ratio 1.21
Morningstars Take by Flynn Murphy 08-26-13
American Funds Investment Company of America might
not excite, but its advantages add up over time.
A large, seasoned management team provides
stability and consistency. Six managers run separate
sleeves in addition to more than 30 analysts who
contribute to a research portfolio sleeve. The
multimanager setup leads to smoother transitions
when managers join or leave the fund. For example,
long-tenured manager Michael Shanahan retired in
2011 and manager Will Robbins moved off the fund as
part of an organizational restructuring in early 2013.
But the funds remaining managers have an average of
more than two decades of investment experience,
including more than 13 years at this offering.
The managers run their sleeves independently,
though they each emphasize dividend-paying firms.
That includes hefty weightings in industries that have
traditionally offered fat yields, including telecom stocks
such as Verizon Communications VZ and tobacco
stocks such as Altria Group MO. The funds trailing
12-month yield has been higher than the S&P 500
benchmarks in more than two thirds of the monthly
periods during the past decade through July 2013.
This isnt a purely dividend-focused offering,
though. The managers balance the funds stake in
dividend-paying stocks with a smaller slug of
growth-oriented firms they believe offer opportunities
for capital appreciation, such as top-20 holdings
Gilead Sciences GILD and Google GOOG.
Its focus on holding established firms with enduring
brands and a general emphasis on dividend-payers has
helped it weather downturns better than the
benchmark and large-blend category peers over time.
It rarely leads the way in rising markets--in fact, it
often lags peers and the benchmark. But by protecting
on the downside it has outpaced the category and the
bogy since its longest-tenured managers (James
Lovelace and Don ONeal) started here in 1992.
The bargain expense ratio gives it a head start over
nearly all actively managed peers. Run by experienced
managers, it is built to deliver consistent results over
the long haul.
Address: THE INVESTMENT COMPANY OF AMERICA
Los Angeles, CA 90071-1406
800-421-4225
Web Address: www.americanfunds.com
Inception: 01-02-34
Advisor: Capital Research and Management Company
Subadvisor: None
NTF Plans: Federated Tr NTF
Minimum Purchase: $250 Add: $50 IRA: $250
Min Auto Inv Plan: $0 Add: $50
Sales Fees: 5.75%L,
Management Fee: 0.39% mx./0.22% mn., 0.01%A
Actual Fees: Mgt:0.24% Dist:0.23%
Expense Projections: 3Yr:$762 5Yr:$901 10Yr:$1305
Income Distribution: Quarterly
Data through December 31, 2013
American Funds Invmt Co of Amer A
Ticker Status Yield Total Assets Mstar Category
AIVSX Open 1.6% $69,921 mil Large Blend
84% 84% 83% 84% 90% 93% 91% 89% 88%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 12-13
Historical Profile
Return
Risk
Rating
Below Avg
Below Avg
Below Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
S&P 500
Performance Quartile
(within Category)
History
10.0
7.0
12.5
15.0
18.0
20.5
Portfolio Analysis 09-30-13
Share change since 06-13 Total Stocks:118 Sector PE Tot Ret% % Assets
Gilead Sciences Inc Hlth care 41.5 104.49 3.59
Philip Morris Internatio Cnsmr Def 16.4 8.45 3.25
Amgen Inc Hlth care 18.1 34.52 3.20
Microsoft Corporation Technology 14.0 43.69 2.64
Oracle Corporation Technology 16.3 15.55 2.55
General Dynamics Industrl
.
40.36 2.15
Dow Chemical Co Basic Mat 20.2 41.30 2.14
Verizon Communications I Comm Svs 64.1 18.36 2.10
AbbVie Inc Hlth care 18.6 59.28 1.93
Altria Group Inc. Cnsmr Def 14.9 27.96 1.90
Google, Inc. Class A Technology 31.3 58.43 1.73
Texas Instruments, Inc. Technology 25.6 45.61 1.68
General Motors Co Cnsmr Cyc 12.4 41.76 1.59
BP PLC Energy 6.3 22.07 1.56
Schlumberger NV Energy 18.0 31.84 1.53
ConocoPhillips Energy 10.5 26.49 1.52
Hewlett-Packard Co Technology 10.7 100.33 1.50
CSX Corp Industrl 15.5 48.81 1.49
Home Depot, Inc. Cnsmr Cyc 22.3 35.65 1.46
Johnson Controls Inc Cnsmr Cyc 30.0 69.84 1.41
Current Investment Style
Market Cap %
Giant 56.8
Large 38.4
Mid 4.6
Small 0.2
Micro 0.0
Avg $mil:
65,129
Value Blnd Growth
L
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e
M
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d
S
m
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Value Measures Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
15.34
2.43
1.22
7.95
2.57
1.07
1.19
0.97
1.12
1.18
Growth Measures % Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
10.66
4.54
4.45
6.46
-5.26
1.03
0.85
1.53
0.95
NMF
Profitability % Rel Category
Return on Equity
Return on Assets
Net Margin
20.60
8.25
12.25
1.07
1.07
0.96
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 19.61 0.68
BasicMat 4.09 1.34 6 1
CnsmrCyc11.56 1.35 12 9
FinanSvs 3.96 0.25 10 3
Real Est 0.00 0.00
. .
Sensitive 49.53 1.14
CommSrvs 9.41 2.35 10 8
Energy 10.72 1.00 16 11
Industrl 11.72 1.03 16 11
Technlgy 17.68 1.01 22 15
Defensive30.88 1.12
CnsmrDef11.35 0.93 14 11
Hlthcare 16.05 1.36 16 7
Utilities 3.48 0.96 4 3
h
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p
a
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d
f
Composition - Net
(% of Stock)
Cash 4.5
Stocks 88.0
Bonds 0.5
Other 7.0
Foreign 7.4
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timely. Past performance is no guarantee of future results. Access updated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.
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