(PUB) Investing 2015

Morningstar FundInvestor

June

2015

Morningstar Analyst Rating

05-29-15

Morningstar Pillars

Process

Performance

People

Parent

Price

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 Rating Spectrum

Œ „ ´ˇ ¨

Pillar Spectrum

Positive

Negative

Neutral

NAV

55.78

53.50

58.75

54.49

46.12

54.59

47.20

31.39

59.44

48.44

38.70

32.27

Total Return %

4.26

-3.66

10.01

19.71

-14.13

17.32

52.21

-46.32

32.85

33.42

22.20

20.79

+/-MSCI WexUS

-2.76

0.21

-5.28

2.88

-0.42

6.17

10.76

-0.79

16.20

6.77

5.58

-0.12

+/-MSCI Emg Mkt

-1.43

-1.47

12.61

1.49

4.29

-1.56

-26.30

7.01

-6.57

1.28

-11.80

-4.76

Income Return %

0.00

0.83

1.04

1.55

1.39

1.64

1.81

0.85

2.44

2.36

2.26

2.01

Capital Return %

4.26

-4.49

8.97

18.16

-15.52

15.68

50.40

-47.17

30.41

31.06

19.94

18.78

Total Rtn % Rank Cat

Income $

0.00

0.49

0.57

0.71

0.76

0.78

0.57

0.51

1.18

0.91

0.73

0.55

Capital Gains $

0.00

2.63

0.61

0.00

3.79

2.23

0.00

Expense Ratio %

1.03

1.06

1.07

1.02

1.04

1.17

0.95

0.96

1.00

1.12

1.22

Income Ratio %

1.28

1.20

1.47

1.33

1.60

2.11

2.10

1.92

2.19

2.00

1.68

Turnover Rate %

Net Assets $mil

12,834

12,443

13,371

12,180

11,021

13,861

11,201

6,983

13,762

8,729

4,919

2,606

Performance

05-31-15

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Total

2011

2012

2013

2014

2015

0.92 0.96 -19.42 4.59 -14.13

12.34 -5.66

7.00 5.57 19.71

1.43 -3.06

7.56 4.01 10.01

0.49 4.88

-5.17 -3.61 -3.66

2.86

. . . .

Trailing

Total +/- MSCI

+/- MSCI

%Rank Growth of

Return% WexUS Emg Mkt

Cat

$10,000

3 Mo

6 Mo

1 Yr

3 Yr Avg

5 Yr Avg

10 Yr Avg

15 Yr Avg

0.43 -1.31

-1.48

60 10,043

-0.47 -3.63

-1.29

43 9,953

-3.48 -2.58

-3.47

59 9,652

9.07 -3.54

3.11

13 12,975

6.96 -1.13

2.88

8 13,999

8.74 2.70

-0.02

27 23,115

8.37 4.10

0.08

44 33,392

Tax Analysis

Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

3 Yr (estimated)

5 Yr (estimated)

10 Yr (estimated)

6.01

0.86

4.99

0.67

7.24

0.80

Potential Capital Gain Exposure: 17% of assets

Rating and Risk

Time Load-Adj

Morningstar

Period Return % Rtn vs Cat

Risk vs Cat

Risk-Adj Rating

1 Yr

-9.03

3 Yr

6.94

Avg

Low

5 Yr

5.70

+Avg

Low

10 Yr

8.10

Avg

Low

Incept

7.92

Other Measures

Standard Index

Best Fit Index

MSCI WexUSMSCI AC World exUSA Gr ND

Alpha

-1.4

-2.7

Beta

0.84

0.94

R-Squared

Standard Deviation

9.42

Mean

9.07

Sharpe Ratio

0.96

Morningstar’s Take

by Alec Lucas 05-29-15

American Funds New World’s unique profile

sometimes masks its long-term appeal. Its 2014

showing is a case in point: It lost 3.7%,

underperforming the MSCI Emerging Markets Index by

1.5 percentage points and landing in the diversified

emerging-markets Morningstar Category’s bottom half.

That marks the first calendar year since its 1999

inception that it fared worse than both the index and

its typical peer when emerging-markets stocks lost

money--falling markets are usually when this fund

shines.

Arguably, however, last year was no exception.

True, it made some mistakes: A modest position in the

now failed Banco Espirito Santo hurt, as did small

stakes in Russian Internet stocks, which fell amid

ongoing political and economic turmoil. The fund’s

primary problem, though, was its near category-leading

35% average stake in foreign developed-markets

stocks, like Japan’s SOFTBANK, a top-10 holding that

shed 21.2%. While these stocks generally hurt for the

year as a whole (the MSCI EAFE Index dropped 4.9%),

they helped the fund during the early September to

mid-December emerging-markets correction. The

fund’s 10.2% loss in that stretch beat the MSCI

Emerging Markets Index by 5.7 percentage points.

Treading heavily in foreign developed names is

nothing new here. As long as a company gets at least

20% of its revenue from the developing world, it’s fair

game--provided that at least 35% of the fund’s assets

are invested directly in emerging-markets securities.

At year-end 2014, 55% of the equity portfolio’s

revenues came from developing economies, but only

42.8% of the equity portfolio was in

emerging-markets-domiciled stocks.

The fund’s conservative approach to

emerging-markets investing has yielded strong

long-term results. Its 8.4% annualized gain from its

June 1999 start date through April 2015 is in line with

the index and bests its typical category peer but does

so with one fifth less volatility, as measured by

standard deviation.

With a flexible and effective process, the fund

Address:

New World Fund Inc

Los Angeles, CA 90071-1447

800-421-4225

Web Address:

www.americanfunds.com

Inception:

06-17-99

Advisor:

Capital Research and Management Company

Subadvisor:

None

NTF Plans:

Federated Tr NTF

Minimum Purchase:

$250

Add: $50 IRA: $25

Min Auto Inv Plan:

$250

Add: $50

Sales Fees:

5.75%L,

Management Fee:

0.85% mx./0.49% mn., 0.01%A

Actual Fees:

Mgt:0.55% Dist:0.23%

Expense Projections:

3Yr:$884

5Yr:$1111 10Yr:$1762

Income Distribution:

Annually

Data through May 31, 2015

American Funds New World A

Ticker

Status Yield Total Assets

Mstar Category

NEWFX Open

0.8% $24,189 mil

Diversified Emerging Mkts

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

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

Historical Profile

Return

Risk

Rating

Average

Low

Highest

Investment Style

Equity

Stock %

Manager Change

Partial Manager Change

Growth of $10,000

Investment Values of

Fund

Investment Values of

MSCI WexUS

Performance Quartile

(within Category)

History

10.0

14.0

18.0

22.0

26.0

Portfolio Analysis

03-31-15

Share change since 12-14 Total Stocks:293 Sector

Country

% Assets

Naspers Ltd Class N

Technology South Africa

1.78

Altice SA

Comm Svs France

1.42

Baidu Inc ADR

Technology China

1.42

Hikma Pharmaceuticals PL

Hlth care U.K.

1.40

Novo Nordisk A/S B

Hlth care Denmark

1.33

Novartis AG

Hlth care Switzerland

1.17

International Container

Industrl

Philippines

1.14

AIA Group Ltd

Finan Svs Hong Kong

1.13

Power Grid Corp Of India

Utilities

India

1.08

HDFC Bank Ltd

Finan Svs India

1.01

SOFTBANK Corp

Comm Svs Japan

1.01

Murata Mfg Co Ltd

Technology Japan

0.97

Cummins Inc

Industrl

United States

0.97

Taiwan Semiconductor Man

Technology Taiwan

0.92

Nestle SA

Cnsmr Def

Switzerland

0.90

Alexion Pharmaceuticals

Hlth care United States

0.90

AAC Technologies Holding

Technology China

0.89

Prudential PLC

Finan Svs U.K.

0.85

ICICI Bank Ltd

Finan Svs India

0.81

Toyota Motor Corp

Cnsmr Cyc Japan

0.78

Current Investment Style

Market Cap %

Giant

44.3

Large

38.6

Mid

14.5

Small

2.4

Micro

0.1

Avg $mil:

21,526

Value Blnd Growth

Large Mid Small

Country Exposure

% Stock

United States 13

India

China

U.K.

France

Regional Exposure

% Stock

UK/W. Europe 28

Japan

Asia X Japan 40

N. America 14

Latn America 5

Other

Sector

Weightings

% of

Stocks

Rel MSCI

WexUS High

3 Year

Low

Cyclical 36.94

BasicMat 4.56

7 4

CnsmrCyc13.82

16 13

FinanSvs 16.60

17 12

Real Est 1.96

2 1

Sensitive 36.80

CommSrvs 6.37

8 5

Energy 4.72

10 5

Industrl

9.43

12 9

Technlgy 16.28

19 10

Defensive26.26

CnsmrDef10.53

14 11

Hlthcare 12.50

13 9

Utilities 3.23

4 3

Composition - Net

(% of Stock)

Cash

6.1

Stocks

78.1

Bonds

10.0

Other

5.9

Foreign

86.5

Growth Measures

% Rel Category

Long-Term Erngs

Book Value

Sales

Cash Flow

Historical Erngs

12.52

-0.51

3.02

-1.30

7.36

0.94

NMF

0.64

NMF

1.06

Value Measures

Rel Category

Price/Earnings

Price/Book

Price/Sales

Price/Cash Flow

Dividend Yield %

17.74

2.18

1.74

5.52

1.88

1.53

1.27

1.64

1.03

0.61

timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at

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Mutual Funds