Form 497K American Funds U.S. Gove
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American
Funds Summary
prospectus |
| Class A | B | C | F-1 | F-2 | 529-A | 529-B | 529-C | 529-E |
| AFAXX | AFBXX | AFCXX | AFFXX | AFGXX | AAFXX | BAFXX | CCFXX | EAFXX |
| 529-F-1 | R-1 | R-2 | R-2E | R-3 | R-4 | R-5E | R-5 | R-6 |
| FARXX | RAAXX | RABXX | RBEXX | RACXX | RADXX | RAGXX | RAEXX | RAFXX |
| Before you invest, you may want to review the fund’s prospectus and statement of additional information, which contain more information about the fund and its risks. You can find the fund’s prospectus, statement of additional information and other information about the fund online at americanfunds.com/prospectus. You can also get this information at no cost by calling (800) 421-4225 or by sending an email request to [email protected]. The current prospectus and statement of additional information, each dated April 1, 2016 (and in each case, as supplemented to date), are incorporated by reference into this summary prospectus. |
Investment objective
The investment objective of the fund is to provide you with a way to earn income on your cash reserves while preserving capital and maintaining liquidity. The fund is a government money market fund that seeks to preserve the value of your investment at $1.00 per share.
Fees and expenses of the fund
This table describes the fees and expenses that you may pay if you buy and hold shares of the fund.
Shareholder fees (fees paid directly from your investment) | |||||||
| Share classes | |||||||
| A
and 529-A |
B
and 529-B |
C
and 529-C |
529-E | F-1,
F-2 and 529-F-1 |
All
R share classes | ||
| Maximum sales charge (load) imposed on purchases (as a percentage of offering price) | none | none | none | none | none | none | |
| Maximum deferred sales charge (load) (as a percentage of the amount redeemed) | none | 5.00% | 1.00% | none | none | none | |
| Maximum sales charge (load) imposed on reinvested dividends | none | none | none | none | none | none | |
| Redemption or exchange fees | none | none | none | none | none | none | |
Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||||||
| Share classes | ||||||||||
| A | B | C | F-1 | F-2 | 529-A | 529-B | 529-C | 529-E | ||
| Management fees | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | |
| Distribution and/or service (12b-1) fees | 0.00 | 0.75 | 0.00 | 0.25 | none | 0.00 | 0.75 | 0.00 | 0.00 | |
| Other expenses | 0.11 | 0.10 | 0.15 | 0.18 | 0.17 | 0.23 | 0.24 | 0.23 | 0.22 | |
| Total annual fund operating expenses | 0.38 | 1.12 | 0.42 | 0.70 | 0.44 | 0.50 | 1.26 | 0.50 | 0.49 | |
| 529-F-1 | R-1 | R-2 | R-2E | R-3 | R-4 | R-5E | R-5 | R-6 | |
| Management fees | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% |
| Distribution and/or service (12b-1) fees | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | none | none | none |
| Other expenses | 0.23 | 0.18 | 0.421 | 0.30 | 0.221 | 0.16 | 0.222 | 0.11 | 0.07 |
| Total annual fund operating expenses | 0.50 | 0.45 | 0.69 | 0.57 | 0.49 | 0.43 | 0.49 | 0.38 | 0.34 |
1 Restated to reflect current fees.
2 Based on estimated amounts for the current fiscal year.
1 American Funds U.S. Government Money Market Fund / Summary prospectus
Example This example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
| Share classes | 1 year | 3 years | 5 years | 10 years |
| A | $ 39 | $122 | $213 | $ 480 |
| B | 614 | 756 | 817 | 1,155 |
| C | 143 | 135 | 235 | 530 |
| F-1 | 72 | 224 | 390 | 871 |
| F-2 | 45 | 141 | 246 | 555 |
| 529-A | 51 | 160 | 280 | 628 |
| 529-B | 628 | 800 | 892 | 1,312 |
| 529-C | 151 | 160 | 280 | 628 |
| 529-E | 50 | 157 | 274 | 616 |
| 529-F-1 | 51 | 160 | 280 | 628 |
| R-1 | 46 | 144 | 252 | 567 |
| R-2 | 70 | 221 | 384 | 859 |
| R-2E | 58 | 183 | 318 | 714 |
| R-3 | 50 | 157 | 274 | 616 |
| R-4 | 44 | 138 | 241 | 542 |
| R-5E | 50 | 157 | 274 | 616 |
| R-5 | 39 | 122 | 213 | 480 |
| R-6 | 35 | 109 | 191 | 431 |
For the share classes listed below, you would pay the following if you did not redeem your shares:
| Share classes | 1 year | 3 years | 5 years | 10 years |
| B | $114 | $356 | $617 | $1,155 |
| C | 43 | 135 | 235 | 530 |
| 529-B | 128 | 400 | 692 | 1,312 |
| 529-C | 51 | 160 | 280 | 628 |
American Funds U.S. Government Money Market Fund / Summary prospectus 2
Principal investment strategies
The fund will invest at least 99.5% of its total assets in cash, U.S. Treasury securities and other government securities guaranteed or issued by an agency or instrumentality of the U.S. government, and repurchase agreements that are fully collateralized by cash or government securities. Additionally, at least 80% of the fund’s assets will normally be invested in securities that are guaranteed or sponsored by the U.S. government, its agencies and instrumentalities, and repurchase agreements that are fully collateralized by government securities.
Repurchase agreements are agreements under which the fund purchases a security from a bank or broker-dealer and obtains a simultaneous commitment from the seller to repurchase the security at a specified time and price. Because the security purchased by the fund constitutes collateral for the seller’s repurchase obligation, a repurchase agreement is effectively a loan by the fund that is collateralized by the security purchased. The fund will only enter into repurchase agreements involving securities of the type (excluding any maturity limitations) in which it could otherwise invest. In practice, the fund is expected to enter only into repurchase agreements that are fully collateralized by cash or U.S. government securities.
The fund relies on the professional judgment of its investment adviser to make decisions about the fund’s portfolio investments. The basic investment philosophy of the investment adviser is to seek to provide current income while preserving capital and maintaining liquidity. The investment adviser believes that an important way to accomplish this is by analyzing various factors, including the credit strength of the issuer, prices of similar securities issued by comparable issuers, current and anticipated changes in interest rates, general market conditions and other factors pertinent to the particular security being evaluated.
3 American Funds U.S. Government Money Market Fund / Summary prospectus
Principal risks
This section describes the principal risks associated with the fund’s principal investment strategies. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Market conditions — The prices of, and the income generated by, the 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 or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.
Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates. Securities issued by government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and credit of the U.S. government are neither issued nor guaranteed by the U.S. government.
Interest rate risk — The values and liquidity of the securities held by the fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. 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. The fund may invest in variable and floating rate securities. Although such securities are generally less sensitive to interest rate changes, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as general interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the fund may not be able to maintain a positive yield and, given the historically low interest rate environment, risks associated with rising rates are currently heightened.
Investing in repurchase agreements — Upon entering into a repurchase agreement, the fund purchases a security from a bank or broker-dealer, which simultaneously commits to repurchase the security within a specified time at the fund’s cost with interest. The security purchased by the fund constitutes collateral for the seller’s repurchase obligation. If the party agreeing to repurchase should default, the fund may seek to sell the security it holds as collateral. The fund may incur a loss if the value of the collateral securing the repurchase obligation has fallen below the repurchase price. The fund may also incur disposition costs and encounter procedural delays in connection with liquidating the collateral.
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 employed by the investment adviser in this process may not produce the desired results.
American Funds U.S. Government Money Market Fund / Summary prospectus 4
You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, entity or person. The fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time. You should consider how this fund fits into your overall investment program.
Investment results
The following bar chart shows how the fund’s investment results have varied from year to year, and the following table shows how the fund’s average annual total returns for various periods compare with different broad measures of market results. This information provides some indication of the risks of investing in the fund. The Lipper U.S. Government Money Market Funds Average includes the fund and other funds that disclose investment objectives and/or strategies reasonably comparable to those of the fund. Prior to April 1, 2016, the fund operated as a prime money market fund and may have invested in certain types of securities that the fund is no longer permitted to hold. Consequently, the results information below may have been different if the current investment limitations had been in effect during the period prior to the fund’s conversion to a government money market fund. Past investment results are not predictive of future investment results. Updated information on the fund’s investment results can be obtained by visiting americanfunds.com.
5 American Funds U.S. Government Money Market Fund / Summary prospectus
Average annual total returns For the periods ended December 31, 2015 (with maximum sales charge): | ||||
| Share classes (before taxes) | Inception date | 1 year | 5 years | Lifetime |
| A | 5/1/2009 | 0.00% | 0.00% | 0.00% |
| B | 5/1/2009 | –5.00 | –0.40 | 0.00 |
| C | 5/1/2009 | –1.00 | 0.00 | 0.00 |
| F-1 | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| F-2 | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| 529-A | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| 529-B | 5/1/2009 | –5.00 | –0.40 | 0.00 |
| 529-C | 5/1/2009 | –1.00 | 0.00 | 0.00 |
| 529-E | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| 529-F-1 | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| R-1 | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| R-2 | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| R-2E | 8/29/2014 | 0.00 | N/A | 0.00 |
| R-3 | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| R-4 | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| R-5 | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| R-6 | 5/1/2009 | 0.00 | 0.00 | 0.00 |
| Indexes | 1 year | 5 years | Lifetime (from Class A inception) |
| USTREAS T-Bill Auction Ave 3 Mon (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) | 0.05% | 0.06% | 0.08% |
| Lipper U.S. Government Money Market Funds Average (reflects no deductions for sales charges, account fees or U.S. federal income taxes) | 0.01 | 0.01 | 0.01 |
| For current 7-day yield information, please call American FundsLine® at (800) 325-3590. | |||
American Funds U.S. Government Money Market Fund / Summary prospectus 6
Management
Investment adviser Capital Research and Management CompanySM
Purchase and sale of fund shares
The minimum amount to establish an account for all share classes is $1,000 and the minimum to add to an account is $50. For a payroll deduction retirement plan account, payroll deduction savings plan account or employer-sponsored 529 account, the minimum is $25 to establish or add to an account.
If you are a retail investor, you may sell (redeem) shares on any business day through your dealer or financial advisor or by writing to American Funds Service Company® at P.O. Box 6007, Indianapolis, Indiana 46206-6007; telephoning American Funds Service Company at (800) 421-4225; faxing American Funds Service Company at (888) 421-4351; or accessing our website at americanfunds.com. Please contact your plan administrator or recordkeeper to sell (redeem) shares from your retirement plan.
Tax information
Dividends you receive from the fund are subject to federal income taxes and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-favored. Generally, redemptions, including exchanges, will not result in a capital gain or loss for federal or state income tax purposes.
Payments to broker-dealers and other financial intermediaries
If you purchase shares of the fund through a broker-dealer or other financial intermediary (such as a bank), the fund and the fund’s distributor or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your individual financial advisor to recommend the fund over another investment. Ask your individual financial advisor or visit your financial intermediary’s website for more information.
 | |
| MFGEIPX-059-0516P Litho in USA CGD/RRD/10044 | Investment Company File No. 811-22277 |
THE FUND PROVIDES A SPANISH TRANSLATION OF THE ABOVE SUMMARY PROSPECTUS IN CONNECTION WITH THE PUBLIC OFFERING AND SALE OF ITS SHARES. THE ENGLISH LANGUAGE SUMMARY PROSPECTUS ABOVE IS A FAIR AND ACCURATE REPRESENTATION OF THE SPANISH EQUIVALENT.
| /s/ | STEVEN I. KOSZALKA |
| STEVEN I. KOSZALKA | |
| SECRETARY |
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