PLAN OF DISTRIBUTION
OF
THE NEW ECONOMY FUND
WHEREAS, The New Economy Fund (the "Fund") is a Massachusetts business
trust which offers shares of beneficial interest;
WHEREAS, American Funds Distributors, Inc. ("AFD") will serve as
distributor of the shares of beneficial interest of the Fund, and the Fund and
AFD are parties to a Principal Underwriting Agreement (the "Agreement");
WHEREAS, the purpose of this Plan of Distribution (the "Plan") is to
authorize the Fund to bear expenses of distribution of its shares, including
reimbursement of AFD for its expenses in the promotion of the sale of shares of
the Fund, pursuant to the Agreement;
WHEREAS, the Board of Trustees of the Fund has determined that there is a
reasonable likelihood that this Plan will benefit the Fund and its
shareholders:
NOW, THEREFORE, the Fund adopts this Plan as follows:
1. The Fund may expend pursuant to this Plan amounts not to exceed .25 of
1% of the average daily net assets of the Fund per annum.
2. Subject to the limit in paragraph 1, the Fund shall pay, or reimburse
AFD for, amounts to finance any activity which is primarily intended to result
in the sale of shares of the Fund including, but not limited to, commissions or
other payments to dealers, and salaries and other expenses of AFD relating to
selling or servicing efforts; provided, (i) that the Board of Trustees of the
Fund shall have approved categories of expenses for which payment or
reimbursement shall be made pursuant to this paragraph 2 and (ii) that
reimbursement shall be made in accordance with the terms of the Agreement.
3. This Plan shall not take effect until it has been approved by vote of
a majority of the outstanding voting securities of the Fund (as defined in the
Investment Company Act of 1940 (the "1940 Act")) and by the Board of Trustees
as provided in paragraph 4.
4. This Plan shall not take effect until it has been approved, together
with any related agreement, by votes of the majority of both (i) the Board of
Trustees of the Fund and (ii) those Trustees of the Fund who are not
"interested persons" of the Fund (as defined in the 1940 Act) and have no
direct or indirect financial interest in the operation of this Plan or any
agreement related to it (the "Independent Trustees"), cast in person at a
meeting called for the purpose of voting on this Plan and/or such agreement.
5. At least quarterly, the Board of Trustees shall be provided by any
person authorized to direct the disposition of monies paid or payable by the
Fund pursuant to this Plan or any related agreement, and the Board shall
review, a written report of the amounts expended pursuant to the Plan and the
purposes for which such expenditures were made.
6. This Plan may be terminated as to the Fund at any time by vote of a
majority of the Independent Trustees, or by vote of a majority of the
outstanding voting securities (as defined in the 1940 Act) of the Fund. Unless
sooner terminated in accordance with this provision, this Plan shall continue
in effect until November 30, 1989. It may thereafter be renewed from year to
year in the manner provided for in paragraph 4 hereof.
7. Any agreement related to this Plan shall be in writing, and shall
provide:
A. that such agreement may be terminated as to the Fund at any time,
without payment of any penalty, by vote of a majority of the Independent
Trustees or by a vote of a majority of the outstanding voting securities (as
defined in the 1940 Act) of the Fund, on not more than sixty (60) days' written
notice to any other party to the agreement; and
B. that such agreement shall terminate automatically in the event of
its assignment.
8. This Plan may not be amended to increase materially the maximum amount
of fee or other distribution expenses provided for in paragraph 1 hereof unless
such amendment is approved by the outstanding voting securities in the manner
provided in paragraph 3 hereof, and no material amendment to this Plan shall be
made unless approved in the manner provided for in paragraph 4 hereof.
9. While this Plan is in effect, the selection and nomination of Trustees
of the Fund who are not "interested persons" of the Fund (as defined in the
1940 Act) shall be committed to the discretion of the Trustees who are not
interested persons.
10. The Fund shall preserve copies of this Plan and any related agreement
and all reports made pursuant to paragraph 5 hereof for a period of not less
than six (6) years from the date of this Plan, or such agreement or reports, as
the case may be, the first two (2) years of which such records shall be stored
in an easily accessible place.
IN WITNESS WHEREOF, the Fund has caused this Plan to be executed by its
officers thereunto duly authorized, as of August 19, 1989.
THE NEW ECONOMY FUND
By
Xxxxxx X. Xxxxxxxx
Chairman of the Board
By
Xxxxxxx X. Xxxxx
Secretary
IN WITNESS WHEREOF, the Fund has caused this Plan to be executed by its
officers thereunto duly authorized, as of August 19, 1989.
THE NEW ECONOMY FUND
By /s/ Xxxxxx X. Xxxxxxxx
Xxxxxx X. Xxxxxxxx
Chairman of the Board
By /s/ Xxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxx
Secretary
