Calendar Year 2018 Soft Dollar Disclosure Supplement Capital Research and Management Company
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CALENDAR YEAR 2018 SOFT DOLLAR DISCLOSURE SUPPLEMENT CAPITAL RESEARCH AND MANAGEMENT COMPANY This disclosure supplement provides information regarding “soft dollars” received by Capital Research and Management Company (“CRMC”) in 2018 relating to the investment by your retirement plan in the American Funds, managed by CRMC. This information may be used for purposes of completing Schedule C (Service Provider Information) to Form 5500. Further information can be found in the prospectuses and statements of additional information for each one of the American Funds (available at AmericanFundsRetirement.com) under the heading “Fund Information.” CRMC places orders with broker-dealers for the American Funds portfolio transactions. In selecting broker-dealers, CRMC seeks to obtain “best execution” (the most favorable total price reasonably attainable under the circumstances) for the funds’ portfolio transactions, taking into account a variety of factors. Subject to best execution, CRMC may consider investment research and/or brokerage services provided to CRMC in placing orders for the funds’ portfolio transactions. See the attached Best Execution Policy that was in effect during 2018 for additional information. CRMC assesses the reasonableness of commissions in light of the total brokerage and investment research services provided by each particular broker-dealer. In valuing the brokerage and investment research services that CRMC receives from broker-dealers in connection with its good faith determination of reasonableness, CRMC takes various factors into consideration, including the quantity, quality and usefulness of the services provided to it. In 2018, approximately 11% of commissions on equity trades paid by the American Funds to broker-dealers were attributable to brokerage and/or investment research services. These commissions were either paid directly to the broker-dealer or to another third- party research provider through a commission sharing arrangement. Please note that, depending on various factors, a higher percentage of the commissions on equity trades paid by an individual fund may be attributable to brokerage and/or investment research services. In 2018, CRMC may have received investment research services from the broker-dealers listed below. To the extent CRMC received investment research services from broker-dealers not listed below, such research was not deemed to be of material value. 7Park Data Ambit Group Axis Capital 86 Research Andrew Hunt Economics B&K Securities Ltd. (Batlivala & Karani) A.B.N. Amro Bank NV Arctic Securities ASA B. Riley & Co., LLC ABG Sundal Collier Arete Research Banca d'Intermediazione Mobilare Imi S.P.A. Absolute Strategy Research Arthur W. Wood Company Banco BTG Pactual SA Agency Partners Asianomics Banco Santander SA Alantra Equities Auerbach Grayson Bank of America Merrill Lynch Alembic Global Advisors Autonomous Research LLP Bank of China International Allen and Company Incorporated Avior Research Bank Vontobel AG 1 of 7 Barclays Bank PLC Consumer Edge Research FBN Capital Barclays Capital Cornerstone Analytics FBN Securities Barrington Research Associates, Inc Cornerstone Macro LP Fig Partners, LLC BCA Research Publications Cowen Finadium Bell Financial Group Limited Craig-Hallum Capital Group LLC First Analysis Securities Corp Benchmark Company Craigs Investment Partners Forsyth Barr Limited Berenberg Credicorp Capital Fundstrat Global Advisors Berman Capital Management Credit Suisse Furey Research Partners Beverage Marketing Credit Suisse Group AG Gabelli and Company, Inc. Bluefin Research Cross Current Research Gartner Invest Blueshift Research Cross Research GFK Research BMO Capital Markets Corp. CrossBorder Capital Global Equities Research BNP Paribas D.A. Davidson & Company Global Macro Investor Bradesco Securities, Inc Daiwa Securities Group, Inc GMP Capital Corp. Brasil Plural Securities, LLC Danske Bank GMT Research BTIG Davy Stockbrokers Goldman Sachs & Co. Bucephalus Research Decker & Co Goodbody StockBrokers Buckingham Research Group Incorporated Deep Dive Research Gordon, Haskett and Co. (The) Butcher Financial Desjardins Securities Gossamer Consulting C.I.B.C. Mellon Global Securities Services Co Detwiler Fenton & Co. US Great Lakes Review C.L. King & Associates Inc. Deutsche Bank AG Griffin Securities Cabot Research Development Bank Of Singapore Guangfa Securities Canaccord Financial Inc. Discern Guggenheim Securities, LLC Cantor Fitzgerald & Co Dougherty & Company LLC Guidepoint Global Capital Alpha Partners Dowling and Partners Securities LLC Guotai Junan Securities Capital Economics Economics From Washington Haitong International Securities Group Ltd. Capital One Securities Inc. Edelweiss Capital Ltd. Handelsbanken Capstone EFG Hermes Hauck & Aufhaeuser Capvision Emkay Global Financial Serviced Ltd Hedgeye Carnegie Investment Bank AB Empirical Research Partners LLC Height Analytics CEBM China Research Energy Aspects Heik Energy CFRA Enodo Economics Heldman Simpson Partners Chardan Capital Markets Enterprise Technology Research Helvea (Baader Bank Group) Charter Equity Research Equinet Hillside Partners China International Capital Corporation Ltd Equirus Securites Pvt LTD Howard Weil China Renaissance Group Equita S.I.M. S.p.A. HSBC Holdings PLC CIMB Group ERA Forest Products Research Huatai Securities Citic Securities Co. Eurasia Group Huber Research Partners Citigroup Global Markets Inc. Eurizon SLJ Capital ICBC Standard Bank PLC Cleveland Research Euroxx Securities Ichiyoshi Securities CLSA B.V. Evans & Partners Pty ltd ICICI Bank Coburn Ventures Evercore-ISI IDFC Securities Codrington Japan Exane IHS Herold Coleman Research Excellence Nessuah Investment House Imperial Capital Commerzbank AG Exotix Limited Independent Strategy Compass Point Research & Trading LLC Farragut Square Group India Infoline Ltd. 2 of 7 ING Groep NV Meridian Research PT. NH Korindo Securities Indonesia inSpectrum Minack Advisors Quilty Analytics Instinet Mirabaud Securities LLP Quo Vadis Capital Institut Montaigne Mirae Asset Daewoo Co., Ltd R.S. Platou Securities Investec Bank Mitsubishi UFJ Financial Group, Inc. Ransom Research ITAU Securities, Inc. Mizuho Raymond James Financial, Inc. J Capital Mizuho Securities Co., Ltd. RBC Capital Markets LLC J.P. Morgan Securities LLC MKM Partners RBN Energy Janney Montgomery Scott LLC MoffettNathanson Redburn Partners LLP Jefferies & Company Inc. Monness, Crespi, Hardt & Co., Inc. RedTech Advisors Jiguang Morgan Stanley & Co. LLC Renaissance Capital Limited JM Financial Inst Securities Morningstar Renaissance Macro Research LLC JMP Securities, LLC Motilal Oswal Securities Ltd Research Greece JNK Securities MRB Partners Rhodium Group Johnson Rice & Co. L.L.C. Natixis (Groupe BPCE) Robert W. Baird & Co., Incorporated Kailash Concepts Nau Securities Rosenblatt Securities, Inc. Keefe, Bruyette and Woods, Inc. Ned Davis Research, Inc. Roth Capital Partners, LLC Kempen and Co Needham and Company, Inc. Safra Securities KeplerCheuvreux Nephron Research Samsung Securities Co. Ltd. Kessler Energy New Street Research Sandler O'Neill & Partners L.P. KeyBanc Capital Markets Inc. Nordea Securities AB Sanford C. Bernstein & Co., LLC Kochbank NorthCoast Research Sberbank Korea Investment Holdings Co., Ltd. Northern Trust Scotiabank Kotak Securities Northland Capital Markets Seaport Global Securities, LLC Ladenburg Thalmann & Co. Inc. NPD Group Sector & Sovereign Research Lake Street Capital Markets, LLC Numis Securities Ltd. Shapiro Research Larrain Vial S.A. Corredora de Bolsa Observatory Group Shenwan Hongyuan Securities Lazard Capital Markets LLC Oddo et CIE Sidoti & Company, L.L.C. Leerink Swann LLC Okasan International (America) Inc. Signal Investment Research Lek Securities O'Neil (William) & Co Inc Silver Point Advisors Liberum Capital Ltd Oppenheimer & Co. Skandinaviska Enskilda Banken LionTree Advisors LLC OTR Global LLC Smartkarma Lolop Media Pacific Square Research SMBC Nikko Securities Longbow Securities LLC Pantelakis Securities S.A. Societe Generale Loop Capital Markets, LLC Pareto Securities SOM Macro Strategies M Science Peel Hunt LLP Spark Capital Advisors (India) M.M. Warburg U. Co Kommanditgesellschaft Pelham Smithers Associates Stephens Inc. Auf Aktie Macquarie Bank Limited Peters and Co. Ltd. Stifel, Nicolaus & Company, Inc. Macroeconomic Advisers Phatra Securities Storm Research Mainfirst Bank AG Philippine Equity Partners Strategas Research Partners LLC Marwood Group Piper Jaffray & Co. Stray Reflections Maxim Group, LLC Pivotal Research Group Summit Redstone Partners Maybank Securities PKO Bank Polski SunTrust Investment Services, Inc. mBank Political Forum Susquehanna International Group, LLP Medley Global Advisors Pramod Krishna Talking Heads Macro Limited 3 of 7 TD Bank Financial Group UBS AG Whitman Howard Telsey Advisory Group LLC Union Gaming Research William Blair and Company, L.L.C. The Leuthold Group US Capital Advisors Wolfe Research Securities LLC Thompson Research Group Variant Perception Wood & Company TIS Group Veda Partners Wunderlich Securities, Inc. Trans-National Research Vertical Research Partners XP Investimentos CCTVM S/A Trend Macro VTB Capital Yipit Data Trusted Sources Washington Analysis Yuanta Securities, Taiwan TS Lombard Washington Exchange Zelman & Associates Tudor Pickering Holt & Co Wedbush Securities, Inc. Zion Research Group Tuohy Brothers Investment Research Wells Fargo Securities, LLC CAPITAL RESEARCH AND MANAGEMENT COMPANY EQUITY BEST EXECUTION POLICY When executing portfolio transactions on