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A Review of U.S. Presidential Elections
Elections Come and Go. Results Last a Lifetime.
Set Your Sights on the Long Term Investor doubts may seem especially prevalent during presidential election years when campaigns spotlight the country’s challenges. Yet even with election year rhetoric amplifying the negative, it’s important to focus on your vision for the future. To help you stay the course, consider the following:
• Successful long-term investors stay the course and rely on time rather than timing.
• Investment success has depended more on the strength and resilience of the American economy than on which candidate or party holds office.
• The experience and time-tested process of your investment manager can be an important contributor to your long-term investment success.
“ The only limit to
our realization of
tomorrow will be our
doubts of today.”
— Franklin D. Roosevelt
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
RepublicanDemocrat
1936 1940 1944 1948 1952 1956 1960 1964 1968 1972
Franklin D. Roosevelt
vs. Alf Landon
Franklin D. Roosevelt
vs. Wendell Willkie
Franklin D. Roosevelt
vs. Thomas Dewey
Harry Truman vs.
Thomas Dewey
Dwight Eisenhower
vs. Adlai Stevenson
Dwight Eisenhower
vs. Adlai Stevenson
John F. Kennedy vs.
Richard Nixon
Lyndon Johnson vs.
Barry Goldwater
Richard Nixon vs.
Hubert Humphrey
Richard Nixon vs.
George McGovern
U.S. remains in grip of
Depression
Nazi rise troubles Europe
Isolationism vs. engagement
hotly debated
Germany menaces Europe;
France falls
FDR’s health in question
Potential Post-War impact of
New Deal debated
Civil rights tension boils over at convention
Berlin blockade accelerates Cold War
U.S. detonates first hydrogen
bomb
Attempts at Korean War
truce fail
Mideast trouble as Egypt seizes
Suez Canal
Soviets invade Hungary
Cuba nationalizes U.S. assets
American U-2 spy plane shot down in Soviet
airspace
Civil Rights Act passes after
lengthy filibuster
Gulf of Tonkin signals Vietnam
involvement
Vietnam protests and civil rights
issues roil conventions
RFK and Martin Luther King Jr. assassinated
Watergate scandal surfaces
Vietnam War drags on
There have always been tumultuous events
The current economic and political challenges may seem unprecedented, but a look back shows
that controversy and uncertainty have surrounded every race.
CLOSED
Labor market struggles
Market declines and recessions
CLOSED
Businesses going bankrupt
CLOSED
Weather-related calamities
CLOSED
Overseas conflict and war
CLOSED
Civil unrest and protest
1976 1980 1984 1988 1992 1996 2000 2004 2008 2012
Jimmy Carter vs.
Gerald Ford
Ronald Reagan vs.
Jimmy Carter
Ronald Reagan vs.
Walter Mondale
George H.W. Bush
vs. Michael Dukakis
Bill Clinton vs.
George H.W. Bush
Bill Clinton vs.
Bob Dole
George W. Bush vs.
Al Gore
George W. Bush vs.
John Kerry
Barack Obama vs.
John McCain
Barack Obama vs.
Mitt Romney
New York City threatens
bankruptcy
Economy mired in recession
Iran hostage crisis drags on
Olympic boycott underscores
Cold War divide
Budget deficits rising rapidly
Stock market slides over 30%
in less than four months
Savings and loan crisis
reaches apex
Iran-Contra indictments
Los Angeles riots highlight racial
tension
Pending NAFTA ratification
creates anxiety
19 American servicemen
killed in Saudi Arabia bombing
UN arms inspec-tors repeatedly thwarted in Iraq
Tech bubble bursts; stock
markets plummet
Attack on USS Cole heightens
terrorism concerns
Oil prices soar
Ongoing wars in Iraq and
Afghanistan
Subprime mortgage crisis
Lehman Brothers collapse; world
markets fall
High-stakes negotiations lead to a deal to avert the “fiscal cliff”
Superstorm Sandy kills 268 people, and causes $68
billion in damage
Value added by reinvestmentof dividends
Rec
ord
-set
ting
m
arke
t dec
line
Dep
ress
ion
Civ
il w
ar in
Sp
ain
Rec
essi
on
Eco
nom
y st
ill s
trug
glin
g
War
clo
uds
gat
her
War
in E
uro
pe
Fran
ce fa
lls
Pear
l Har
bo
r
War
tim
e p
rice
co
ntro
ls
Ind
ustr
y m
ob
ilize
s
Co
nsum
er g
oo
ds
sho
rtag
es
Post
-war
rec
essi
on
pre
dic
ted
Do
w to
ps
20
0 —
mar
ket “
too
hig
h”
Co
ld W
ar b
egin
s
Ber
lin b
lock
ade
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ets
det
ona
te A
-bo
mb
Ko
rean
War
Exc
ess
pro
fits
tax
U.S
. sei
zes
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l mill
s
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ets
det
ona
te H
-bo
mb
Do
w to
ps
30
0 —
mar
ket “
too
hig
h”
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enho
wer
illn
ess
Suez
Cri
sis
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ets
laun
ch S
put
nik
Rec
essi
on
Cas
tro
sei
zes
po
wer
in C
uba
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ets
do
wn
U-2
pla
ne
Ber
lin W
all i
s er
ecte
d
Cub
an M
issi
le C
risi
s
Ken
ned
y as
sass
inat
ion
Gul
f o
f To
nkin
Civ
il ri
ght
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arch
es
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ark
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ts
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tnam
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alat
es
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rth
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rea
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s U
SS P
ueb
lo
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ney
tig
hten
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t fal
ls
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e-p
rice
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ze
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erg
ate
Oil
emb
arg
o
Nix
on
resi
gns
U.S
. wit
hdra
ws
fro
m V
ietn
am
New
Yo
rk C
ity
thre
aten
s b
ankr
uptc
y
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rgy
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is
Mas
sacr
es in
Cam
bo
dia
Thre
e M
ile Is
land
nucl
ear
acci
den
t
U.S
. inv
ades
Cam
bo
dia
Ab
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sca
ndal
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s C
ong
ress
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rst r
eces
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ets
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ot d
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Iran
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ar
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n
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. bo
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k fa
ilure
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eak
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ait
Rec
essi
on
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.S.;
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et U
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n d
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Ang
eles
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ts
Mid
wes
tern
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. flo
od
s
Fed
rai
ses
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x ti
mes
Pro
ble
ms
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h ju
nk b
ond
s
Tech
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gy
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cks
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ble
Cha
os
in A
sian
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kets
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bal
eco
nom
ic tu
rmo
il
Fear
s o
f Y2
K
com
put
er p
rob
lem
s
Rea
gan
and
the
po
pe
are
sho
t
Inte
rnet
bub
ble
bur
sts
Terr
ori
st a
ttac
ks in
U.S
.
Co
rpo
rate
acc
oun
ting
sc
and
als
U.S
. inv
ades
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Hur
rica
nes
dev
asta
teso
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rn U
.S.
Do
w J
one
s to
ps
12
00
0 fo
r fir
st ti
me
Sub
pri
me
cred
it c
risi
s
U.S
. rec
essi
on
U.S
. une
mp
loym
ent t
op
s 1
0%
Gul
f o
f M
exic
o o
il sp
ill
Eur
op
ean
sove
reig
n d
ebt c
risi
s
U.S
. fac
es “
fisca
l clif
f”
U.S
. dra
wn
into
Syr
ian
confl
ict
Gre
ek d
ebt c
risi
s;
Chi
na g
row
th s
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s
Year
five
of
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eral
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vern
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uant
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ive
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ng p
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y
Oil
pri
ces
soar
Do
w to
ps
40
00
, the
n 5
00
0 —
mar
ket “
too
hig
h”
Value added by reinvestmentof dividends
Rec
ord
-set
ting
m
arke
t dec
line
Dep
ress
ion
Civ
il w
ar in
Sp
ain
Rec
essi
on
Eco
nom
y st
ill s
trug
glin
g
War
clo
uds
gat
her
War
in E
uro
pe
Fran
ce fa
lls
Pear
l Har
bo
r
War
tim
e p
rice
co
ntro
ls
Ind
ustr
y m
ob
ilize
s
Co
nsum
er g
oo
ds
sho
rtag
es
Post
-war
rec
essi
on
pre
dic
ted
Do
w to
ps
20
0 —
mar
ket “
too
hig
h”
Co
ld W
ar b
egin
s
Ber
lin b
lock
ade
Sovi
ets
det
ona
te A
-bo
mb
Ko
rean
War
Exc
ess
pro
fits
tax
U.S
. sei
zes
stee
l mill
s
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ets
det
ona
te H
-bo
mb
Do
w to
ps
30
0 —
mar
ket “
too
hig
h”
Eis
enho
wer
illn
ess
Suez
Cri
sis
Sovi
ets
laun
ch S
put
nik
Rec
essi
on
Cas
tro
sei
zes
po
wer
in C
uba
Sovi
ets
do
wn
U-2
pla
ne
Ber
lin W
all i
s er
ecte
d
Cub
an M
issi
le C
risi
s
Ken
ned
y as
sass
inat
ion
Gul
f o
f To
nkin
Civ
il ri
ght
s m
arch
es
New
ark
rio
ts
Vie
tnam
War
esc
alat
es
No
rth
Ko
rea
cap
ture
s U
SS P
ueb
lo
Mo
ney
tig
hten
s;m
arke
t fal
ls
Wag
e-p
rice
free
ze
Wat
erg
ate
Oil
emb
arg
o
Nix
on
resi
gns
U.S
. wit
hdra
ws
fro
m V
ietn
am
New
Yo
rk C
ity
thre
aten
s b
ankr
uptc
y
Ene
rgy
cris
is
Mas
sacr
es in
Cam
bo
dia
Thre
e M
ile Is
land
nucl
ear
acci
den
t
U.S
. inv
ades
Cam
bo
dia
Ab
scam
sca
ndal
rock
s C
ong
ress
Wo
rst r
eces
sio
nin
40
yea
rs
Sovi
ets
sho
ot d
ow
n K
ore
an a
irlin
er
Iran
-Ira
q w
ar
esca
late
s
U.S
. bec
om
es a
d
ebto
r na
tio
n
U.S
. bo
mb
s Li
bya
Ban
k fa
ilure
s p
eak
Iraq
inva
des
Kuw
ait
Rec
essi
on
in U
.S.;
Sovi
et U
nio
n d
isso
lves
Los
Ang
eles
rio
ts
Mid
wes
tern
U.S
. flo
od
s
Fed
rai
ses
inte
rest
rat
essi
x ti
mes
Pro
ble
ms
wit
h ju
nk b
ond
s
Tech
nolo
gy
sto
cks
stum
ble
Cha
os
in A
sian
mar
kets
Glo
bal
eco
nom
ic tu
rmo
il
Fear
s o
f Y2
K
com
put
er p
rob
lem
s
Rea
gan
and
the
po
pe
are
sho
t
Inte
rnet
bub
ble
bur
sts
Terr
ori
st a
ttac
ks in
U.S
.
Co
rpo
rate
acc
oun
ting
sc
and
als
U.S
. inv
ades
Iraq
Hur
rica
nes
dev
asta
teso
uthe
rn U
.S.
Do
w J
one
s to
ps
12
00
0 fo
r fir
st ti
me
Sub
pri
me
cred
it c
risi
s
U.S
. rec
essi
on
U.S
. une
mp
loym
ent t
op
s 1
0%
Gul
f o
f M
exic
o o
il sp
ill
Eur
op
ean
sove
reig
n d
ebt c
risi
s
U.S
. fac
es “
fisca
l clif
f”
U.S
. dra
wn
into
Syr
ian
confl
ict
Gre
ek d
ebt c
risi
s;
Chi
na g
row
th s
low
s
Year
five
of
fed
eral
go
vern
men
t’sq
uant
itat
ive
easi
ng p
olic
y
Oil
pri
ces
soar
Do
w to
ps
40
00
, the
n 5
00
0 —
mar
ket “
too
hig
h”
Averageannual totalreturn for 82 years:
+12.0%
Original investment$10,000
ICA with dividends excluded$9,787,1003
Average annualreturn: 8.8%
ICA with dividendsreinvested$107,719,5522
Average annualreturn: 12.0%
Stock market with dividends excluded$2,023,703Average annualreturn: 6.7%
Consumer Price Index (Inflation)$179,186Average annualreturn: 3.6%
Stock market with dividends reinvested$44,324,528Average annualreturn: 10.8%
Total return
Year ended Dec. 31
Capital value ($ in 000)
Dividends excluded:Value at year-end:
Total value ($ in 000)
Dividends reinvested:Value at year-end:
–38.5 –2.4 –7.4 –2.4 –11.9 –13.2 –10.7 –16.8 –17.9 –2.6+83.1 +45.8 +27.6 +0.8 +16.8 +32.8 +23.3 +36.8 +0.9 +0.4 +9.4 +19.8 +17.8 +12.2 +0.4 +56.1 +25.4 +10.8 +44.8 +14.2 +4.5 +23.1 +22.9 +16.3 +26.9 +1.0 +28.9 +17.0 +2.6 +17.0 +15.9 +35.4 +29.6 +14.7 +19.2 +21.2 +0.9 +33.8 +20.2 +6.7 +33.4 +21.7 +5.4 +13.3 +29.4 +0.7 +26.5 +27.2+7.0 +11.6 +0.2 +30.6 +19.3 +29.8 +16.6+22.9 +3.8 –4.6 +5.9+18.2% –34.7 +10.9 –1.8 +15.6 +32.4 +12.1 –1.4–14.5 +26.3 +9.8 +6.9 +15.9
357.8
14,092.3
320.4
13,171.9
406.3
10,409.0
370.8
10,338.6
318.7
7,989.3
203.8
6,685.7
174.9
5,491.9
160.4
4,117.2
147.2
3,859.7
146.1
3,212.0
115.9
2,401.1
91.3
2,380.2
70.0
1,963.3
56.0
1,647.5
49.8
1,436.4
46.4
1,474.4
52.2
840.3
49.8
1,137.7
29.9
1,231.1
28.6
1,062.7
27.3
908.0
33.4
1,024.1
25.3
884.8
22.6
990.6
18.4
846.9
15.5
657.1
12.1
650.7
10.7
512.6
9.6
440.9
9.1
358.8
8.4
413.6
8.1
336.0
7.0
321.4
6.5
281.5
6.2
194.4
5.6
220.6
5.1
199.2
4.1
158.9
3.9
101.7
3.5
101.3
3.4
90.3
3.2
76.6
2.7
63.9
2.7
58.4
2.4
58.2
1.8
57.7
1.2
59.1
1.2
43.2
1.1
35.0
1.2
26.4
1.3
22.6
.9
24.4
.5
25.0
.2
24.8
1.0
19.4
$.4
31.6
—
21.6
—
$11.8
267.5
7,049.2
374.4
15,729.4
407.2
15,753.9
450.1
20,578.7
480.1
24,560.6
510.3
31,881.2
651.8
45,682.2
584.1
39,193.5
743.4
47,435.2
804.1
45,258.6
1,319.3
70,456.8
1,466.7
45,983.8
1,264.7
58,481.1
1,272.4
64,830.6
1,345.5
63,692.5
1,707.1
73,628.5
1,548.6
97,503.5
1,939.3
109,291.9
833.3
38,709.1
864.3
48,891.6
887.4
53,674.5
1,196.3
57,361.4
1,364.6
66,504.4
53.0
2,052.2
48.7
1,969.9
64.1
1,598.8
60.7
1,652.8
54.4
1,327.4
37.3
1,200.5
33.2
1,017.9
31.7
792.0
30.3
774.5
31.6
670.6
26.4
530.9
21.7
552.2
17.3
475.7
14.4
414.4
13.3
374.3
12.8
398.1
15.9
245.5
14.3
317.7
9.7
394.7
9.6
349.7
9.4
307.4
10.6
317.9
9.0
309.6
8.3
356.6
6.9
312.5
5.9
248.0
4.7
251.6
4.3
202.3
3.9
177.8
3.8
148.2
3.6
175.4
3.6
145.6
3.2
142.9
3.0
128.0
3.0
90.9
2.7
106.3
2.6
98.5
2.1
80.8
2.1
53.4
2.0
55.3
2.0
51.2
1.9
45.2
1.7
39.4
1.8
37.7
1.7
39.3
1.3
40.7
.9
42.9
.9
32.1
.9
26.9
1.0
20.9
1.1
18.8
.8
21.5
.5
22.9
.2
23.2
1.0
18.3
$.4
31.0
—
21.6
—
$11.8
47.5
1,220.9
54.0
2,234.2
57.3
2,180.6
61.7
2,779.7
64.3
3,247.9
67.0
4,142.7
82.8
5,748.5
93.0
5,875.5
99.0
5,507.5
75.4
5,008.2
144.0
7,601.9
156.9
4,835.7
131.5
5,986.9
129.2
6,496.8
133.8
6,249.9
166.1
7,055.0
147.4
9,179.2
181.3
10,102.3
100.7
4,616.9
102.2
5,713.5
103.0
6,163.0
136.3
6,446.5
152.1
7,313.2
2007 2008 2009 2010 2011 2012 2013 2014
1,849.1
107,719.6
169.8
9,787.1
20151935 1936 1937 1938 1939 1940 1941 1942 19431934 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1999 20001998 200620052004200320022001
8,000
10,000
20,000
40,000
60,000
80,000
100,000
200,000
400,000
600,000
800,000
1,000,000
2,000,000
4,000,000
6,000,000
30,000,000
40,000,000
50,000,000
70,000,000
100,000,000
$200,000,000
10,000,000
20,000,000
8,000,000
Average annual return:
9.9%
19361
Franklin Roosevelt
Average annual return:
9.2%
19401
Franklin Roosevelt
Average annual return:
10.6%
19441
Franklin Roosevelt
Average annual return:
12.1%
19481
HarryTruman
$10,000 investment 10 years later
Dividends reinvested during period
Average annual return:
15.8%
$43,238
19521
DwightEisenhower
Average annual return:
11.9%
$30,768
19561
DwightEisenhower
Average annual return:
10.0%
$25,951
19601
John F.Kennedy
Average annual return:
8.2%
$21,901
19641
LyndonJohnson
Average annual return:
4.8%
$15,994
19681
RichardNixon
Average annual return:
7.9%
$21,301
19721
RichardNixon
Average annual return:
16.4%
$45,486
19761
JimmyCarter
Average annual return:
17.4%
$49,623
19801
RonaldReagan
Average annual return:
14.4%
$38,400
19841
RonaldReagan
Average annual return:
15.6%
$42,624
19881
George H.W.Bush
Average annual return:
12.5%
$32,378
19921
BillClinton
Average annual return:
10.1%
$26,270
19961
BillClinton
Average annual return:
1.9%
$12,066
20001
George W.Bush
$6,128
$6,540$7,002
$6,176
$31,461$27,432
$24,145
$25,740
$3,918
$4,786$4,103
$3,947
$4,068$5,276
$8,763
$9,584 $7,214 $5,343 $3,837 $3,460 $2,217
Average annual return:
6.5%
$18,796
20041
George W.Bush
$2,578
Results reflect payment of the maximum 5.75% sales charge for Class A shares on a hypothetical $10,000 investment. Thus the net amount invested was $9,425. The maximum initial sales charge was 8.5% prior to July 1, 1988. As outlined in the prospectus, the sales charge is reduced for larger investments. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares. The results shown are before taxes on fund distributions and sale of fund shares. Past results are not predictive of results in future periods. Results for other share classes may differ.
The Investment Company of America® 20 elections and countingAs you can see in the mountain chart below, a hypothetical $10,000 investment in The Investment Company of America has grown steadily and significantly over the fund’s 82-year history.
Additionally, a hypothetical $10,000 investment in ICA made at the beginning of an election year was always larger 10 years down the road.
Value added by reinvestmentof dividends
Rec
ord
-set
ting
m
arke
t dec
line
Dep
ress
ion
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il w
ar in
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Averageannual totalreturn for 82 years:
+12.0%
Original investment$10,000
ICA with dividends excluded$9,787,1003
Average annualreturn: 8.8%
ICA with dividendsreinvested$107,719,5522
Average annualreturn: 12.0%
Stock market with dividends excluded$2,023,703Average annualreturn: 6.7%
Consumer Price Index (Inflation)$179,186Average annualreturn: 3.6%
Stock market with dividends reinvested$44,324,528Average annualreturn: 10.8%
Total return
Year ended Dec. 31
Capital value ($ in 000)
Dividends excluded:Value at year-end:
Total value ($ in 000)
Dividends reinvested:Value at year-end:
–38.5 –2.4 –7.4 –2.4 –11.9 –13.2 –10.7 –16.8 –17.9 –2.6+83.1 +45.8 +27.6 +0.8 +16.8 +32.8 +23.3 +36.8 +0.9 +0.4 +9.4 +19.8 +17.8 +12.2 +0.4 +56.1 +25.4 +10.8 +44.8 +14.2 +4.5 +23.1 +22.9 +16.3 +26.9 +1.0 +28.9 +17.0 +2.6 +17.0 +15.9 +35.4 +29.6 +14.7 +19.2 +21.2 +0.9 +33.8 +20.2 +6.7 +33.4 +21.7 +5.4 +13.3 +29.4 +0.7 +26.5 +27.2+7.0 +11.6 +0.2 +30.6 +19.3 +29.8 +16.6+22.9 +3.8 –4.6 +5.9+18.2% –34.7 +10.9 –1.8 +15.6 +32.4 +12.1 –1.4–14.5 +26.3 +9.8 +6.9 +15.9
357.8
14,092.3
320.4
13,171.9
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7,989.3
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6,685.7
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5,491.9
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3,859.7
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3,212.0
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2,401.1
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2,380.2
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—
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—
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—
$11.8
47.5
1,220.9
54.0
2,234.2
57.3
2,180.6
61.7
2,779.7
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3,247.9
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4,142.7
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5,748.5
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5,875.5
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144.0
7,601.9
156.9
4,835.7
131.5
5,986.9
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6,496.8
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6,249.9
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7,055.0
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4,616.9
102.2
5,713.5
103.0
6,163.0
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6,446.5
152.1
7,313.2
2007 2008 2009 2010 2011 2012 2013 2014
1,849.1
107,719.6
169.8
9,787.1
20151935 1936 1937 1938 1939 1940 1941 1942 19431934 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1999 20001998 200620052004200320022001
8,000
10,000
20,000
40,000
60,000
80,000
100,000
200,000
400,000
600,000
800,000
1,000,000
2,000,000
4,000,000
6,000,000
30,000,000
40,000,000
50,000,000
70,000,000
100,000,000
$200,000,000
10,000,000
20,000,000
8,000,000
Average annual return:
9.9%
19361
Franklin Roosevelt
Average annual return:
9.2%
19401
Franklin Roosevelt
Average annual return:
10.6%
19441
Franklin Roosevelt
Average annual return:
12.1%
19481
HarryTruman
$10,000 investment 10 years later
Dividends reinvested during period
Average annual return:
15.8%
$43,238
19521
DwightEisenhower
Average annual return:
11.9%
$30,768
19561
DwightEisenhower
Average annual return:
10.0%
$25,951
19601
John F.Kennedy
Average annual return:
8.2%
$21,901
19641
LyndonJohnson
Average annual return:
4.8%
$15,994
19681
RichardNixon
Average annual return:
7.9%
$21,301
19721
RichardNixon
Average annual return:
16.4%
$45,486
19761
JimmyCarter
Average annual return:
17.4%
$49,623
19801
RonaldReagan
Average annual return:
14.4%
$38,400
19841
RonaldReagan
Average annual return:
15.6%
$42,624
19881
George H.W.Bush
Average annual return:
12.5%
$32,378
19921
BillClinton
Average annual return:
10.1%
$26,270
19961
BillClinton
Average annual return:
1.9%
$12,066
20001
George W.Bush
$6,128
$6,540$7,002
$6,176
$31,461$27,432
$24,145
$25,740
$3,918
$4,786$4,103
$3,947
$4,068$5,276
$8,763
$9,584 $7,214 $5,343 $3,837 $3,460 $2,217
Average annual return:
6.5%
$18,796
20041
George W.Bush
$2,578
Expense ratio was 0.59% as of the fund’s prospectus available at the time of publication.
Here are ICA’s average annual total returns on a $1,000 investment with all distributions reinvested for periods ended December 31, 2015: 1 year 5 years 10 yearsClass A shares –7.10% 9.38% 5.88%
Value added by reinvestmentof dividends
Rec
ord
-set
ting
m
arke
t dec
line
Dep
ress
ion
Civ
il w
ar in
Sp
ain
Rec
essi
on
Eco
nom
y st
ill s
trug
glin
g
War
clo
uds
gat
her
War
in E
uro
pe
Fran
ce fa
lls
Pear
l Har
bo
r
War
tim
e p
rice
co
ntro
ls
Ind
ustr
y m
ob
ilize
s
Co
nsum
er g
oo
ds
sho
rtag
es
Post
-war
rec
essi
on
pre
dic
ted
Do
w to
ps
20
0 —
mar
ket “
too
hig
h”
Co
ld W
ar b
egin
s
Ber
lin b
lock
ade
Sovi
ets
det
ona
te A
-bo
mb
Ko
rean
War
Exc
ess
pro
fits
tax
U.S
. sei
zes
stee
l mill
s
Sovi
ets
det
ona
te H
-bo
mb
Do
w to
ps
30
0 —
mar
ket “
too
hig
h”
Eis
enho
wer
illn
ess
Suez
Cri
sis
Sovi
ets
laun
ch S
put
nik
Rec
essi
on
Cas
tro
sei
zes
po
wer
in C
uba
Sovi
ets
do
wn
U-2
pla
ne
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lin W
all i
s er
ecte
d
Cub
an M
issi
le C
risi
s
Ken
ned
y as
sass
inat
ion
Gul
f o
f To
nkin
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il ri
ght
s m
arch
es
New
ark
rio
ts
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tnam
War
esc
alat
es
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rth
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rea
cap
ture
s U
SS P
ueb
lo
Mo
ney
tig
hten
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arke
t fal
ls
Wag
e-p
rice
free
ze
Wat
erg
ate
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Value added by reinvestmentof dividends
Rec
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-set
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ian
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Averageannual totalreturn for 82 years:
+12.0%
Original investment$10,000
ICA with dividends excluded$9,787,1003
Average annualreturn: 8.8%
ICA with dividendsreinvested$107,719,5522
Average annualreturn: 12.0%
Stock market with dividends excluded$2,023,703Average annualreturn: 6.7%
Consumer Price Index (Inflation)$179,186Average annualreturn: 3.6%
Stock market with dividends reinvested$44,324,528Average annualreturn: 10.8%
Total return
Year ended Dec. 31
Capital value ($ in 000)
Dividends excluded:Value at year-end:
Total value ($ in 000)
Dividends reinvested:Value at year-end:
–38.5 –2.4 –7.4 –2.4 –11.9 –13.2 –10.7 –16.8 –17.9 –2.6+83.1 +45.8 +27.6 +0.8 +16.8 +32.8 +23.3 +36.8 +0.9 +0.4 +9.4 +19.8 +17.8 +12.2 +0.4 +56.1 +25.4 +10.8 +44.8 +14.2 +4.5 +23.1 +22.9 +16.3 +26.9 +1.0 +28.9 +17.0 +2.6 +17.0 +15.9 +35.4 +29.6 +14.7 +19.2 +21.2 +0.9 +33.8 +20.2 +6.7 +33.4 +21.7 +5.4 +13.3 +29.4 +0.7 +26.5 +27.2+7.0 +11.6 +0.2 +30.6 +19.3 +29.8 +16.6+22.9 +3.8 –4.6 +5.9+18.2% –34.7 +10.9 –1.8 +15.6 +32.4 +12.1 –1.4–14.5 +26.3 +9.8 +6.9 +15.9
357.8
14,092.3
320.4
13,171.9
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7,989.3
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6,685.7
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5,491.9
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4,117.2
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2,401.1
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1,963.3
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1,647.5
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1,436.4
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49.8
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1,062.7
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33.4
1,024.1
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—
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—
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—
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1,220.9
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2,234.2
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2,180.6
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2,779.7
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3,247.9
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4,142.7
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5,748.5
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5,875.5
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5,507.5
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5,008.2
144.0
7,601.9
156.9
4,835.7
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5,986.9
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6,249.9
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7,055.0
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4,616.9
102.2
5,713.5
103.0
6,163.0
136.3
6,446.5
152.1
7,313.2
2007 2008 2009 2010 2011 2012 2013 2014
1,849.1
107,719.6
169.8
9,787.1
20151935 1936 1937 1938 1939 1940 1941 1942 19431934 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1999 20001998 200620052004200320022001
8,000
10,000
20,000
40,000
60,000
80,000
100,000
200,000
400,000
600,000
800,000
1,000,000
2,000,000
4,000,000
6,000,000
30,000,000
40,000,000
50,000,000
70,000,000
100,000,000
$200,000,000
10,000,000
20,000,000
8,000,000
Average annual return:
9.9%
19361
Franklin Roosevelt
Average annual return:
9.2%
19401
Franklin Roosevelt
Average annual return:
10.6%
19441
Franklin Roosevelt
Average annual return:
12.1%
19481
HarryTruman
$10,000 investment 10 years later
Dividends reinvested during period
Average annual return:
15.8%
$43,238
19521
DwightEisenhower
Average annual return:
11.9%
$30,768
19561
DwightEisenhower
Average annual return:
10.0%
$25,951
19601
John F.Kennedy
Average annual return:
8.2%
$21,901
19641
LyndonJohnson
Average annual return:
4.8%
$15,994
19681
RichardNixon
Average annual return:
7.9%
$21,301
19721
RichardNixon
Average annual return:
16.4%
$45,486
19761
JimmyCarter
Average annual return:
17.4%
$49,623
19801
RonaldReagan
Average annual return:
14.4%
$38,400
19841
RonaldReagan
Average annual return:
15.6%
$42,624
19881
George H.W.Bush
Average annual return:
12.5%
$32,378
19921
BillClinton
Average annual return:
10.1%
$26,270
19961
BillClinton
Average annual return:
1.9%
$12,066
20001
George W.Bush
$6,128
$6,540$7,002
$6,176
$31,461$27,432
$24,145
$25,740
$3,918
$4,786$4,103
$3,947
$4,068$5,276
$8,763
$9,584 $7,214 $5,343 $3,837 $3,460 $2,217
Average annual return:
6.5%
$18,796
20041
George W.Bush
$2,578
Figures shown are past results for Class A shares and are not predictive of results in 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. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. Results shown are at the 5.75% maximum sales charge for Class A shares with all distributions reinvested. For current information and month-end results, visit americanfunds.com.
The stock market is represented by Standard & Poor’s 500 Composite Index, a widely used measure of stocks issued by relatively large U.S. companies. The S&P 500 is unmanaged and, therefore, has no expenses.
1 Investment results shown are for 10-year periods beginning on January 1 of the year shown.
Value added by reinvestmentof dividends
Rec
ord
-set
ting
m
arke
t dec
line
Dep
ress
ion
Civ
il w
ar in
Sp
ain
Rec
essi
on
Eco
nom
y st
ill s
trug
glin
g
War
clo
uds
gat
her
War
in E
uro
pe
Fran
ce fa
lls
Pear
l Har
bo
r
War
tim
e p
rice
co
ntro
ls
Ind
ustr
y m
ob
ilize
s
Co
nsum
er g
oo
ds
sho
rtag
es
Post
-war
rec
essi
on
pre
dic
ted
Do
w to
ps
20
0 —
mar
ket “
too
hig
h”
Co
ld W
ar b
egin
s
Ber
lin b
lock
ade
Sovi
ets
det
ona
te A
-bo
mb
Ko
rean
War
Exc
ess
pro
fits
tax
U.S
. sei
zes
stee
l mill
s
Sovi
ets
det
ona
te H
-bo
mb
Do
w to
ps
30
0 —
mar
ket “
too
hig
h”
Eis
enho
wer
illn
ess
Suez
Cri
sis
Sovi
ets
laun
ch S
put
nik
Rec
essi
on
Cas
tro
sei
zes
po
wer
in C
uba
Sovi
ets
do
wn
U-2
pla
ne
Ber
lin W
all i
s er
ecte
d
Cub
an M
issi
le C
risi
s
Ken
ned
y as
sass
inat
ion
Gul
f o
f To
nkin
Civ
il ri
ght
s m
arch
es
New
ark
rio
ts
Vie
tnam
War
esc
alat
es
No
rth
Ko
rea
cap
ture
s U
SS P
ueb
lo
Mo
ney
tig
hten
s;m
arke
t fal
ls
Wag
e-p
rice
free
ze
Wat
erg
ate
Oil
emb
arg
o
Nix
on
resi
gns
U.S
. wit
hdra
ws
fro
m V
ietn
am
New
Yo
rk C
ity
thre
aten
s b
ankr
uptc
y
Ene
rgy
cris
is
Mas
sacr
es in
Cam
bo
dia
Thre
e M
ile Is
land
nucl
ear
acci
den
t
U.S
. inv
ades
Cam
bo
dia
Ab
scam
sca
ndal
rock
s C
ong
ress
Wo
rst r
eces
sio
nin
40
yea
rs
Sovi
ets
sho
ot d
ow
n K
ore
an a
irlin
er
Iran
-Ira
q w
ar
esca
late
s
U.S
. bec
om
es a
d
ebto
r na
tio
n
U.S
. bo
mb
s Li
bya
Ban
k fa
ilure
s p
eak
Iraq
inva
des
Kuw
ait
Rec
essi
on
in U
.S.;
Sovi
et U
nio
n d
isso
lves
Los
Ang
eles
rio
ts
Mid
wes
tern
U.S
. flo
od
s
Fed
rai
ses
inte
rest
rat
essi
x ti
mes
Pro
ble
ms
wit
h ju
nk b
ond
s
Tech
nolo
gy
sto
cks
stum
ble
Cha
os
in A
sian
mar
kets
Glo
bal
eco
nom
ic tu
rmo
il
Fear
s o
f Y2
K
com
put
er p
rob
lem
s
Rea
gan
and
the
po
pe
are
sho
t
Inte
rnet
bub
ble
bur
sts
Terr
ori
st a
ttac
ks in
U.S
.
Co
rpo
rate
acc
oun
ting
sc
and
als
U.S
. inv
ades
Iraq
Hur
rica
nes
dev
asta
teso
uthe
rn U
.S.
Do
w J
one
s to
ps
12
00
0 fo
r fir
st ti
me
Sub
pri
me
cred
it c
risi
s
U.S
. rec
essi
on
U.S
. une
mp
loym
ent t
op
s 1
0%
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Averageannual totalreturn for 82 years:
+12.0%
Original investment$10,000
ICA with dividends excluded$9,787,1003
Average annualreturn: 8.8%
ICA with dividendsreinvested$107,719,5522
Average annualreturn: 12.0%
Stock market with dividends excluded$2,023,703Average annualreturn: 6.7%
Consumer Price Index (Inflation)$179,186Average annualreturn: 3.6%
Stock market with dividends reinvested$44,324,528Average annualreturn: 10.8%
Total return
Year ended Dec. 31
Capital value ($ in 000)
Dividends excluded:Value at year-end:
Total value ($ in 000)
Dividends reinvested:Value at year-end:
–38.5 –2.4 –7.4 –2.4 –11.9 –13.2 –10.7 –16.8 –17.9 –2.6+83.1 +45.8 +27.6 +0.8 +16.8 +32.8 +23.3 +36.8 +0.9 +0.4 +9.4 +19.8 +17.8 +12.2 +0.4 +56.1 +25.4 +10.8 +44.8 +14.2 +4.5 +23.1 +22.9 +16.3 +26.9 +1.0 +28.9 +17.0 +2.6 +17.0 +15.9 +35.4 +29.6 +14.7 +19.2 +21.2 +0.9 +33.8 +20.2 +6.7 +33.4 +21.7 +5.4 +13.3 +29.4 +0.7 +26.5 +27.2+7.0 +11.6 +0.2 +30.6 +19.3 +29.8 +16.6+22.9 +3.8 –4.6 +5.9+18.2% –34.7 +10.9 –1.8 +15.6 +32.4 +12.1 –1.4–14.5 +26.3 +9.8 +6.9 +15.9
357.8
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2007 2008 2009 2010 2011 2012 2013 2014
1,849.1
107,719.6
169.8
9,787.1
20151935 1936 1937 1938 1939 1940 1941 1942 19431934 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1999 20001998 200620052004200320022001
8,000
10,000
20,000
40,000
60,000
80,000
100,000
200,000
400,000
600,000
800,000
1,000,000
2,000,000
4,000,000
6,000,000
30,000,000
40,000,000
50,000,000
70,000,000
100,000,000
$200,000,000
10,000,000
20,000,000
8,000,000
Average annual return:
9.9%
19361
Franklin Roosevelt
Average annual return:
9.2%
19401
Franklin Roosevelt
Average annual return:
10.6%
19441
Franklin Roosevelt
Average annual return:
12.1%
19481
HarryTruman
$10,000 investment 10 years later
Dividends reinvested during period
Average annual return:
15.8%
$43,238
19521
DwightEisenhower
Average annual return:
11.9%
$30,768
19561
DwightEisenhower
Average annual return:
10.0%
$25,951
19601
John F.Kennedy
Average annual return:
8.2%
$21,901
19641
LyndonJohnson
Average annual return:
4.8%
$15,994
19681
RichardNixon
Average annual return:
7.9%
$21,301
19721
RichardNixon
Average annual return:
16.4%
$45,486
19761
JimmyCarter
Average annual return:
17.4%
$49,623
19801
RonaldReagan
Average annual return:
14.4%
$38,400
19841
RonaldReagan
Average annual return:
15.6%
$42,624
19881
George H.W.Bush
Average annual return:
12.5%
$32,378
19921
BillClinton
Average annual return:
10.1%
$26,270
19961
BillClinton
Average annual return:
1.9%
$12,066
20001
George W.Bush
$6,128
$6,540$7,002
$6,176
$31,461$27,432
$24,145
$25,740
$3,918
$4,786$4,103
$3,947
$4,068$5,276
$8,763
$9,584 $7,214 $5,343 $3,837 $3,460 $2,217
Average annual return:
6.5%
$18,796
20041
George W.Bush
$2,578
2 Includes dividends of $27,595,819, and capital gain distributions of $55,802,079, reinvested in the years 1936-2015.
3 Includes reinvested capital gains of $6,525,803, but does not reflect income dividends of $3,369,476 taken in cash.
Printed on recycled paperLit. No. MFCPBR-021-0316P Litho in USA CGD/CG/10204-S52707 © 2016 American Funds Distributors, Inc.
Red, Blue and You
Beliefs about which political party is best for the markets might discourage you from investing. But as you can see from the chart below, whether the GOP or the Democrats claim the presidency historically has not been the deciding factor in how a $10,000 investment made at the beginning of an election year looked 10 years down the road.
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 a financial professional and should be read carefully before investing. If used after March 31, 2016, this brochure must be accompanied by a current American Funds quarterly statistical update.
Standard & Poor’s 500 Composite Index is a market capitalization-weighted index based on the results of 500 widely held common stocks. The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Please see americanfunds.com for more information.
Source for ICA and S&P 500 10-year returns: Thomson InvestmentView
Each 10-year period begins on January 1 of the first year shown and ends on December 31 of the final year shown. For example, the first period listed (1936–1945) covers 1/1/36 through 12/31/45.
All results for ICA shown on this page reflect payment of the maximum 5.75% sales charge for Class A shares on a hypothetical $10,000 investment. Thus, the net amount invested in each period was $9,425. The S&P 500 is unmanaged and, therefore, has no expenses. There have been periods when the fund has lagged the index.
Growth of a Hypothetical $10,000 Investment Made at the Beginning of an Election Year
’96–’05 ’00–’09’92–’01’88–’97’84–’93’80–’89’76–’85’72–’81’68–’77’64–’73’60–’69’56–’65’52–’61’48–’57’44–’53’40–’49’36–’45
$25,
740
$22,
418
$24,
145
$23,
992
$27,
432
$38,
016
$31,
461
$45,
702
$43,
238
$45,
741
$30,
768
$28,
561
$25,
951
$21,
228
$21,
901
$17,
908
$15,
994
$14,
240 $2
1,30
1$1
8,76
1
$45,
486
$38,
193
$49,
623
$50,
324
$38,
400
$40,
141
$42,
624
$52,
448
$32,
378
$33,
727
$26,
270
$23,
830
$12,
066
$9,0
90’04–’13
$18,
796
$20,
421
ICA total ending value 10 years after the start of a Republican presidency
ICA total ending value 10 years after the start of a Democratic presidency
S&P 500 total ending value