UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
Certified Shareholder Report of
Registered Management Investment Companies
Investment Company Act File Number: 811-22215
International Growth and Income Fund
(Exact Name of Registrant as Specified in Charter)
P.O. Box 7650, One Market, Steuart Tower
San Francisco, California 94120
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (415) 421-9360
Date of fiscal year end: June 30
Date of reporting period: December 31, 2012
Patrick F. Quan
International Growth and Income Fund
P.O. Box 7650, One Market, Steuart Tower
San Francisco, California 94120
(Name and Address of Agent for Service)
Copies to:
Michael Glazer
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 – Reports to Stockholders
The right choice for the long term®
International Growth
and Income Fund
SM
Semi-annual report for the six months ended December 31, 2012
International Growth and Income Fund seeks to provide long-term growth of capital with current income by investing primarily in the stocks of larger, well-established companies outside the U.S.
This fund is one of more than 40 offered by American Funds, which is one of the nation’s largest mutual fund families. For more than 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.
Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for 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, so they may lose value. For current information and month-end results, visit americanfunds.com.
Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended December 31, 2012:
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Class A shares |
| 1 year |
| 5 years |
| Lifetime |
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Reflecting 5.75% maximum sales charge |
| 12.02% |
| — |
| 8.20% |
The total annual fund operating expense ratio was 0.93% for Class A shares as of the prospectus dated September 1, 2012.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit americanfunds.com for more information.
The fund’s 30-day yield for Class A shares as of January 31, 2013, reflecting the 5.75% maximum sales charge and calculated in accordance with the U.S. Securities and Exchange Commission formula, was 2.34%.
Results for other share classes can be found on page 6.
Investing outside the United States may be subject to risks such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Refer to the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
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Fellow investors: |
Global stock markets overcame uncertainty and generally uneasy investor sentiment to produce strong gains in the first half of the fiscal year. Aggressive steps by European leaders to stem the region’s fiscal crisis, liquidity-boosting measures by central banks around the world, and signs of resurgent economic growth in China all supported the broad rally.
International Growth and Income Fund advanced 15.2% for the six months ended December 31, 2012. This result includes quarterly dividends totaling about 32 cents a share paid during the period.
The fund’s total return outpaced the 13.7% gain of its primary benchmark, the MSCI ACWI (All Country World Index) ex USA. The index, which measures a broad range of developed- and developing-country stock markets, is unmanaged and its returns do not include expenses. The fund’s result also exceeded the 14.2% gain of its peer group, as measured by the Lipper International Funds Index.
As you can see in the chart below, the fund has generally outpaced both benchmarks over longer time frames.
The market environment
Equity returns were generally positive throughout the first six months of the fiscal year. In Europe, the central bank indicated that it would take any measures necessary to preserve
Results at a glance
For periods ended December 31, 2012, with all distributions reinvested
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| Total returns |
| Average annual |
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| 6 months |
| 1 year |
| 3 years |
| Lifetime |
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International Growth and Income Fund (Class A shares) |
| 15.20 | % |
| 18.87 | % |
| 6.10 | % |
| 9.72 | % |
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MSCI ACWI (All Country World Index) ex USA* |
| 13.68 |
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| 16.83 |
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| 3.87 |
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| 4.84 |
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Lipper International Funds Index |
| 14.19 |
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| 19.70 |
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| 4.36 |
|
| 4.68 |
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*The market index is unmanaged and, therefore, has no expenses. Results reflect dividends net of withholding taxes.
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International Growth and Income Fund | 1 |
the euro, the currency shared by 17 European countries, and approved plans for an unlimited bond buying program to help lower borrowing costs for troubled nations. Later in the period, European leaders agreed to pursue additional fiscal reforms. Although the European Union (EU) fell into recession during the six months, stocks registered solid gains. The unmanaged MSCI EU Index rose 16.4%* and stock market returns for every individual EU country were positive.
Elsewhere, central banks in the United States, China, Japan and other countries also took steps to boost liquidity. Japan’s central bank expanded the size of its asset purchase program and extended it through the end of 2013. The Japanese market rallied in the latter months of the period as new elections were called and signs of a weakening yen boosted prospects for Japanese exporters.
China’s stock market surged 18.1% on signs that the economy had started to regain momentum. Manufacturing, retail sales and industrial production all showed improvement in the closing months of 2012. In addition, a number of Chinese banks reported strong profits during the period.
Each of the 10 sectors that comprise the MSCI ACWI (All Country World Index) ex USA registered positive results during the first half of the fiscal year. More economically sensitive areas of the market, such as financials, materials and industrials companies, posted some of the strongest gains. The telecommunication services and utilities sectors trailed the broader
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*Country returns are based on MSCI indexes, expressed in U.S. dollars, net of withholding taxes, and assume the reinvestment of dividends. | |
Largest equity holdings
(as of December 31, 2012)
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Company |
| Country |
| Percent of |
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Royal Dutch Shell |
| United Kingdom |
| 2.8 | % |
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TOTAL |
| France |
| 2.5 |
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Taiwan Semiconductor Manufacturing |
| Taiwan |
| 2.5 |
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National Grid |
| United Kingdom |
| 2.3 |
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AXA |
| France |
| 2.1 |
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Novartis |
| Switzerland |
| 2.1 |
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Power Assets Holdings |
| Hong Kong |
| 1.9 |
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Prudential |
| United Kingdom |
| 1.8 |
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GDF SUEZ |
| France |
| 1.7 |
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British American Tobacco |
| United Kingdom |
| 1.6 |
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2 | International Growth and Income Fund |
Where the fund’s assets were invested
Percent of net assets by country as of December 31, 2012
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| International Growth |
| MSCI ACWI |
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n | Europe |
| 51.4 | % |
| 46.9 | % |
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| Euro zone† |
| 28.4 |
|
| 19.6 |
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| United Kingdom |
| 15.1 |
|
| 15.4 |
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| Switzerland |
| 6.5 |
|
| 5.9 |
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| Sweden |
| 1.0 |
|
| 2.1 |
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| Denmark |
| .4 |
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| .8 |
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| Other Europe |
| — |
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| 3.1 |
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n | Asia/Pacific |
| 29.3 |
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| 37.8 |
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| Japan |
| 6.0 |
|
| 13.6 |
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| Hong Kong |
| 5.8 |
|
| 2.1 |
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| Australia |
| 4.9 |
|
| 6.1 |
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| Taiwan |
| 4.4 |
|
| 2.6 |
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| China |
| 2.3 |
|
| 4.4 |
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| New Zealand |
| 1.2 |
|
| .1 |
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| Thailand |
| 1.1 |
|
| .6 |
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| South Korea |
| .7 |
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| 3.7 |
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| Other Asia/Pacific |
| 2.9 |
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| 4.6 |
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n | The Americas |
| 7.6 |
|
| 12.9 |
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| Canada |
| 4.6 |
|
| 7.8 |
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| Mexico |
| 1.4 |
|
| 1.3 |
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| United States |
| 1.2 |
|
| — |
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| Brazil |
| .3 |
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| 3.0 |
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| Other Americas |
| .1 |
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| .8 |
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n | Other |
| 4.1 |
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| 2.4 |
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| South Africa |
| 4.1 |
|
| 1.9 |
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| Other countries |
| — |
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| .5 |
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n | Bonds & notes, short-term securities & other assets less liabilities |
| 7.6 |
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| — |
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| Total |
| 100.0 | % |
| 100.0 | % |
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| *The MSCI ACWI (All Country World Index) ex USA is weighted by market capitalization. | |
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| †Countries using the euro as a common currency: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. |
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International Growth and Income Fund | 3 |
market. In particular, European utilities and telecoms were hurt by the weak regional economy and an unfavorable regulatory environment.
Our broad-based approach
Rather than focusing on particular countries or market sectors, the investment professionals who manage International Growth and Income Fund rely on a research-driven, company-by-company approach to portfolio construction. The fund’s strong results were the result of favorable stock selection across a variety of sectors and industries.
Among the strongest contributors were Greek-domiciled Hellenic Telecommunications Organization (166.4%), cable television operator Virgin Media (50.7%), construction products maker Fletcher Building (47.9%) and Taiwan Semiconductor (22.3%), the fund’s third-largest holding. Other top-20 holdings that registered strong gains were European insurers AXA (35.1%) and Prudential (20.4%), Schneider Electric (33.9%) and engineering and manufacturing company Siemens (29.3%).
In pursuit of the fund’s dual objective of capital appreciation and current income, its portfolio counselors often focus on well-established companies with global operations. While they place a strong emphasis on companies that reward investors through dividends, they have the flexibility to invest in lower yielding companies that they believe are well managed and have strong prospects for growth over the long term. A number of the fund’s lower yielding holdings supported its strong return. These included Australian biotech company CSL (39.3%), Swiss-based product inspector SGS (18.6%) and South African social media provider Naspers (20.2%).
Investments that lost ground included European telecommunication services providers KPN (–48.4%) and France Télécom (–14.9%), GDF SUEZ (–13.6%), a global electric utility company based in France, and British American Tobacco (–0.5%), the fund’s 10th-largest holding.
Looking forward
We are encouraged by a number of developments in recent months. European leaders made some progress toward solving the region’s fiscal woes, and China’s leaders have demonstrated a commitment to renewed growth. China’s expansion may not return to historical rates, but its leaders are seeking to promote growth that is more consumer-driven and more balanced. We believe China can continue to be a key driver of overall global economic activity and provide opportunity for multinational companies based all around the world.
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4 | International Growth and Income Fund |
That said, we recognize that significant challenges remain, and heightened volatility in the coming months is possible. However, our long-term outlook is positive. Despite the strong stock market gains in recent months, we believe valuations in a number of areas remain compelling. Through deep fundamental research, we are continuing to find what we believe are exciting investment opportunities that can reward patient investors over the long term.
We appreciate the confidence you have placed in us and look forward to reporting back to you at the end of the fiscal year.
Cordially,
Steven T. Watson
Vice Chairman of the Board
Carl M. Kawaja
President
February 13, 2013
For current information about the fund, visit americanfunds.com.
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International Growth and Income Fund | 5 |
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Other share class results | unaudited |
Classes B, C, F and 529
Fund results shown are for past periods and are not predictive of results for 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. For current information and month-end results, visit americanfunds.com.
Average annual total returns for periods ended December 31, 2012:
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| 1 year |
| 5 years |
| Life |
| |||
Class B shares1 — first sold 10/1/08 |
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Reflecting applicable contingent deferred sales charge (CDSC), maximum of 5%, payable only if shares are sold within six years of purchase |
|
| 12.96 | % |
| — |
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| 8.53 | % |
Not reflecting CDSC |
|
| 17.96 |
|
| — |
|
| 8.89 |
|
Class C shares — first sold 10/1/08 |
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Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase |
|
| 16.92 |
|
| — |
|
| 8.85 |
|
Not reflecting CDSC |
|
| 17.92 |
|
| — |
|
| 8.85 |
|
Class F-1 shares2 — first sold 10/1/08 |
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Not reflecting annual asset-based fee charged by sponsoring firm |
|
| 18.84 |
|
| — |
|
| 9.70 |
|
Class F-2 shares2 — first sold 10/1/08 |
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Not reflecting annual asset-based fee charged by sponsoring firm |
|
| 19.17 |
|
| — |
|
| 9.97 |
|
Class 529-A shares3 — first sold 10/1/08 |
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Reflecting 5.75% maximum sales charge |
|
| 12.00 |
|
| — |
|
| 8.12 |
|
Not reflecting maximum sales charge |
|
| 18.81 |
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| — |
|
| 9.65 |
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Class 529-B shares1,3 — first sold 10/1/08 |
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Reflecting applicable CDSC, maximum of 5%, payable only if shares are sold within six years of purchase |
|
| 12.82 |
|
| — |
|
| 8.40 |
|
Not reflecting CDSC |
|
| 17.82 |
|
| — |
|
| 8.76 |
|
Class 529-C shares3 — first sold 10/1/08 |
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Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase |
|
| 16.81 |
|
| — |
|
| 8.77 |
|
Not reflecting CDSC |
|
| 17.81 |
|
| — |
|
| 8.77 |
|
Class 529-E shares2,3 — first sold 10/1/08 |
|
| 18.47 |
|
| — |
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| 9.34 |
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Class 529-F-1 shares2,3 — first sold 10/1/08 |
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Not reflecting annual asset-based fee charged by sponsoring firm |
|
| 19.06 |
|
| — |
|
| 9.88 |
|
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. Visit americanfunds.com for more information.
For information regarding the differences among the various share classes, refer to the fund prospectus.
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6 | International Growth and Income Fund |
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Summary investment portfolio December 31, 2012 | unaudited |
The following summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
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Industry sector diversification | (percent of net assets) |
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Country diversification |
| (percent of net assets | ) | |
Euro zone* |
|
| 28.4 | % |
United Kingdom |
|
| 15.1 |
|
Switzerland |
|
| 6.5 |
|
Japan |
|
| 6.0 |
|
Hong Kong |
|
| 5.8 |
|
Australia |
|
| 4.9 |
|
Canada |
|
| 4.6 |
|
Taiwan |
|
| 4.4 |
|
South Africa |
|
| 4.1 |
|
China |
|
| 2.3 |
|
Other countries |
|
| 10.3 |
|
Bonds & notes, short-term securities & other assets less liabilities |
|
| 7.6 |
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*Countries using the euro as a common currency; those represented in the fund’s portfolio are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal and Spain. |
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International Growth and Income Fund | 7 |
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Common stocks —92.14% |
| Shares |
| Value |
| Percent |
| |||
Financials — 20.11% |
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AXA SA1 |
|
| 6,451,800 |
| $ | 116,700 |
|
| 2.11 | % |
Prudential PLC1 |
|
| 7,208,148 |
|
| 100,577 |
|
| 1.81 |
|
HSBC Holdings PLC (United Kingdom)1 |
|
| 3,608,896 |
|
| 38,171 |
|
| 1.09 |
|
HSBC Holdings PLC (Hong Kong)1 |
|
| 2,098,196 |
|
| 22,274 |
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| |
BNP Paribas SA1 |
|
| 1,037,530 |
|
| 58,483 |
|
| 1.06 |
|
Toronto-Dominion Bank |
|
| 675,600 |
|
| 56,883 |
|
| 1.03 |
|
Agricultural Bank of China, Class H1 |
|
| 109,367,000 |
|
| 54,997 |
|
| .99 |
|
Grupo Financiero Santander México, SAB de CV, Class B (ADR)2 |
|
| 3,360,000 |
|
| 54,365 |
|
| .98 |
|
Link Real Estate Investment Trust1 |
|
| 8,740,000 |
|
| 43,712 |
|
| .79 |
|
Sumitomo Mitsui Financial Group, Inc.1 |
|
| 1,165,000 |
|
| 42,323 |
|
| .76 |
|
Sampo Oyj, Class A1 |
|
| 1,235,000 |
|
| 39,935 |
|
| .72 |
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SEGRO PLC1 |
|
| 9,585,000 |
|
| 39,302 |
|
| .71 |
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Mizuho Financial Group, Inc.1 |
|
| 21,220,000 |
|
| 38,825 |
|
| .70 |
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Other securities |
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|
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| 407,738 |
|
| 7.36 |
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| 1,114,285 |
|
| 20.11 |
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Consumer discretionary — 11.32% |
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Virgin Media Inc. |
|
| 1,815,000 |
|
| 66,701 |
|
| 1.20 |
|
Bayerische Motoren Werke AG1 |
|
| 583,000 |
|
| 56,226 |
|
| 1.01 |
|
Toyota Motor Corp.1 |
|
| 1,090,000 |
|
| 50,877 |
|
| .92 |
|
Wolters Kluwer NV1 |
|
| 2,455,135 |
|
| 50,767 |
|
| .92 |
|
ProSiebenSAT.1 Media AG, nonvoting preferred1 |
|
| 1,675,000 |
|
| 47,133 |
|
| .85 |
|
SJM Holdings Ltd.1 |
|
| 19,700,000 |
|
| 46,359 |
|
| .84 |
|
Other securities |
|
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|
|
| 309,267 |
|
| 5.58 |
|
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| |||||
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| 627,330 |
|
| 11.32 |
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Industrials — 10.87% |
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Schneider Electric SA1 |
|
| 1,103,032 |
|
| 82,268 |
|
| 1.49 |
|
Siemens AG1 |
|
| 698,500 |
|
| 75,920 |
|
| 1.37 |
|
SGS SA1 |
|
| 23,000 |
|
| 51,093 |
|
| .92 |
|
Wolseley PLC1 |
|
| 1,073,409 |
|
| 51,020 |
|
| .92 |
|
Andritz AG1 |
|
| 726,000 |
|
| 46,644 |
|
| .84 |
|
Marubeni Corp.1 |
|
| 6,210,000 |
|
| 44,501 |
|
| .80 |
|
Qantas Airways Ltd.1,2 |
|
| 27,030,000 |
|
| 42,500 |
|
| .77 |
|
Other securities |
|
|
|
|
| 208,403 |
|
| 3.76 |
|
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|
| |||||
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|
| 602,349 |
|
| 10.87 |
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Energy — 8.63% |
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Royal Dutch Shell PLC, Class B1 |
|
| 4,378,000 |
|
| 154,948 |
|
| 2.80 |
|
TOTAL SA1 |
|
| 2,632,600 |
|
| 136,257 |
|
| 2.46 |
|
Enbridge Inc. |
|
| 1,456,670 |
|
| 63,000 |
|
| 1.14 |
|
Crescent Point Energy Corp. |
|
| 1,291,300 |
|
| 48,837 |
|
| .88 |
|
Other securities |
|
|
|
|
| 75,126 |
|
| 1.35 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| 478,168 |
|
| 8.63 |
|
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8 | International Growth and Income Fund |
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Common stocks |
| Shares |
| Value |
| Percent |
| |||
Consumer staples — 8.36% |
|
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|
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|
|
British American Tobacco PLC1 |
|
| 1,727,000 |
| $ | 87,507 |
|
| 1.58 | % |
Unilever NV, depository receipts1 |
|
| 2,048,500 |
|
| 77,298 |
|
| 1.39 |
|
Shoprite Holdings Ltd.1 |
|
| 2,614,000 |
|
| 63,532 |
|
| 1.15 |
|
Nestlé SA1 |
|
| 775,000 |
|
| 50,510 |
|
| .91 |
|
Other securities |
|
|
|
|
| 184,585 |
|
| 3.33 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| 463,432 |
|
| 8.36 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Utilities — 7.70% |
|
|
|
|
|
|
|
|
|
|
National Grid PLC1 |
|
| 10,988,270 |
|
| 125,865 |
|
| 2.27 |
|
Power Assets Holdings Ltd.1 |
|
| 12,028,000 |
|
| 103,081 |
|
| 1.86 |
|
GDF SUEZ1 |
|
| 4,559,249 |
|
| 93,938 |
|
| 1.70 |
|
Snam SpA1 |
|
| 13,375,000 |
|
| 62,195 |
|
| 1.12 |
|
Other securities |
|
|
|
|
| 41,505 |
|
| .75 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| 426,584 |
|
| 7.70 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Health care — 6.92% |
|
|
|
|
|
|
|
|
|
|
Novartis AG1 |
|
| 1,808,200 |
|
| 114,480 |
|
| 2.07 |
|
Sanofi1 |
|
| 650,683 |
|
| 61,708 |
|
| 1.11 |
|
Other securities |
|
|
|
|
| 207,509 |
|
| 3.74 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| 383,697 |
|
| 6.92 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Materials — 6.40% |
|
|
|
|
|
|
|
|
|
|
Fletcher Building Ltd.1 |
|
| 9,597,000 |
|
| 67,154 |
|
| 1.21 |
|
L’Air Liquide SA, bonus shares1 |
|
| 495,511 |
|
| 62,096 |
|
| 1.12 |
|
Amcor Ltd.1 |
|
| 5,125,000 |
|
| 43,336 |
|
| .79 |
|
Other securities |
|
|
|
|
| 181,809 |
|
| 3.28 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| 354,395 |
|
| 6.40 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Information technology — 5.99% |
|
|
|
|
|
|
|
|
|
|
Taiwan Semiconductor Manufacturing Co. Ltd.1 |
|
| 40,641,506 |
|
| 136,024 |
|
| 2.45 |
|
Quanta Computer Inc.1 |
|
| 24,263,835 |
|
| 57,361 |
|
| 1.04 |
|
Nintendo Co., Ltd.1 |
|
| 373,400 |
|
| 39,842 |
|
| .72 |
|
Other securities |
|
|
|
|
| 98,902 |
|
| 1.78 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| 332,129 |
|
| 5.99 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Telecommunication services — 5.32% |
|
|
|
|
|
|
|
|
|
|
MTN Group Ltd.1 |
|
| 2,533,000 |
|
| 53,240 |
|
| .96 |
|
Taiwan Mobile Co., Ltd.1 |
|
| 13,277,000 |
|
| 49,056 |
|
| .89 |
|
Hellenic Telecommunications Organization SA1,2 |
|
| 2,970,200 |
|
| 20,175 |
|
| .36 |
|
Other securities |
|
|
|
|
| 172,433 |
|
| 3.11 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| 294,904 |
|
| 5.32 |
|
|
|
|
|
|
|
|
|
International Growth and Income Fund | 9 |
|
|
|
|
|
|
|
|
Common stocks |
| Value |
| Percent |
| ||
Miscellaneous — 0.52% |
|
|
|
|
|
|
|
Other common stocks in initial period of acquisition |
| $ | 28,879 |
|
| .52 | % |
|
|
| |||||
|
|
|
|
|
|
|
|
Total common stocks (cost: $4,195,178,000) |
|
| 5,106,152 |
|
| 92.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stocks — 0.24% |
| Shares |
|
|
|
|
| |||
Financials — 0.24% |
|
|
|
|
|
|
|
|
|
|
HSBC Holdings PLC, Series 2, 8.00% |
|
| 472,795 |
|
| 13,074 |
|
| .24 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Total preferred stocks (cost: $12,000,000) |
|
|
|
|
| 13,074 |
|
| .24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible securities — 0.54% |
| Principal |
|
|
|
|
| |||
Consumer staples — 0.54% |
|
|
|
|
|
|
|
|
|
|
Shoprite Holdings Ltd. 6.50% convertible notes 2017 |
|
| ZAR196,952 |
|
| 30,216 |
|
| .54 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Total convertible securities (cost: $26,974,000) |
|
|
|
|
| 30,216 |
|
| .54 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Bonds & notes — 2.00% |
|
|
|
|
|
|
|
|
|
|
Telecommunication services — 1.02% |
|
|
|
|
|
|
|
|
|
|
Hellenic Telecommunications Organization SA 4.625% 2016 |
|
| €46,200 |
|
| 54,176 |
|
| .98 |
|
Other securities |
|
|
|
|
| 2,175 |
|
| .04 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| 56,351 |
|
| 1.02 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Financials — 0.66% |
|
|
|
|
|
|
|
|
|
|
SMFG Preferred Capital USD 3 Ltd., junior subordinated 9.50% (undated)3,4 |
| $ | 5,410 |
|
| 6,911 |
|
| .13 |
|
Other securities |
|
|
|
|
| 29,537 |
|
| .53 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
| 36,448 |
|
| .66 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Consumer staples — 0.28% |
|
|
|
|
|
|
|
|
|
|
British American Tobacco International Finance PLC 8.125%–9.50% 2013–20183 |
|
| 14,159 |
|
| 15,684 |
|
| .28 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Consumer discretionary — 0.04% |
|
|
|
|
|
|
|
|
|
|
Other securities |
|
|
|
|
| 2,089 |
|
| .04 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Total bonds & notes (cost: $89,514,000) |
|
|
|
|
| 110,572 |
|
| 2.00 |
|
|
|
|
|
|
|
|
|
10 | International Growth and Income Fund |
|
|
|
|
|
|
|
|
|
|
|
Short-term securities — 4.89% |
|
| Principal |
|
| Value |
|
| Percent |
|
International Bank for Reconstruction and Development |
| $ | 44,200 |
| $ | 44,196 |
|
| .80 | % |
Federal Home Loan Bank |
|
| 42,600 |
|
| 42,589 |
|
| .77 |
|
Toronto-Dominion Holdings USA Inc. |
|
| 30,000 |
|
| 29,991 |
|
| .54 |
|
Toyota Credit Canada Inc. 0.14% due 2/4–2/6/2013 |
|
| 27,900 |
|
| 27,896 |
|
| .50 |
|
Sumitomo Mitsui Banking Corp. 0.19% due 2/26/20133 |
|
| 20,500 |
|
| 20,494 |
|
| .37 |
|
Other securities |
|
|
|
|
| 105,876 |
|
| 1.91 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Total short-term securities (cost: $271,026,000) |
|
|
|
|
| 271,042 |
|
| 4.89 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Total investment securities (cost: $4,594,692,000) |
|
|
|
|
| 5,531,056 |
|
| 99.81 |
|
|
|
|
|
|
|
|
|
|
|
|
Other assets less liabilities |
|
|
|
|
| 10,736 |
|
| .19 |
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
| $ | 5,541,792 |
|
| 100.00 | % |
|
|
|
|
|
|
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
|
|
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $4,668,690,000, which represented 84.25% of the net assets of the fund. This amount includes $4,606,594,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
|
|
2 | Security did not produce income during the last 12 months. |
|
|
3 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $129,197,000, which represented 2.33% of the net assets of the fund. |
|
|
4 | Coupon rate may change periodically. |
Key to abbreviations and symbol
ADR = American Depositary Receipts
€ = Euros
ZAR = South African rand
See Notes to Financial Statements
|
|
International Growth and Income Fund | 11 |
Financial statements
|
|
|
|
|
|
|
|
Statement of assets and liabilities |
| unaudited |
| ||||
at December 31, 2012 |
| (dollars in thousands) |
| ||||
|
|
|
| ||||
Assets: |
|
|
|
|
|
|
|
Investment securities, at value (cost: $4,594,692) |
|
|
|
| $ | 5,531,056 |
|
Cash denominated in currencies other than U.S. dollars (cost: $2,338) |
|
|
|
|
| 2,338 |
|
Cash |
|
|
|
|
| 80 |
|
Receivables for: |
|
|
|
|
|
|
|
Sales of investments |
| $ | 3 |
|
|
|
|
Sales of fund’s shares |
|
| 16,303 |
|
|
|
|
Dividends and interest |
|
| 10,151 |
|
| 26,457 |
|
|
|
|
| ||||
|
|
|
|
|
| 5,559,931 |
|
Liabilities: |
|
|
|
|
|
|
|
Payables for: |
|
|
|
|
|
|
|
Repurchases of fund’s shares |
|
| 12,416 |
|
|
|
|
Investment advisory services |
|
| 2,387 |
|
|
|
|
Services provided by related parties |
|
| 1,622 |
|
|
|
|
Trustees’ deferred compensation |
|
| 1,015 |
|
|
|
|
Non-U.S. taxes |
|
| 590 |
|
|
|
|
Other |
|
| 109 |
|
| 18,139 |
|
|
|
|
| ||||
Net assets at December 31, 2012 |
|
|
|
| $ | 5,541,792 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
Capital paid in on shares of beneficial interest |
|
|
|
| $ | 4,624,830 |
|
Distributions in excess of net investment income |
|
|
|
|
| (11,545 | ) |
Accumulated net realized loss |
|
|
|
|
| (7,421 | ) |
Net unrealized appreciation |
|
|
|
|
| 935,928 |
|
|
|
|
|
|
| ||
Net assets at December 31, 2012 |
|
|
|
| $ | 5,541,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars and shares in thousands, except per-share amounts) |
| |||||||||
|
| |||||||||
Shares of beneficial interest issued and outstanding (no stated par value) — |
| |||||||||
|
|
|
|
|
|
|
| |||
|
| Net assets |
| Shares |
| Net asset value |
| |||
Class A |
| $ | 3,486,011 |
|
| 109,964 |
| $ | 31.70 |
|
Class B |
|
| 19,045 |
|
| 601 |
|
| 31.67 |
|
Class C |
|
| 211,491 |
|
| 6,685 |
|
| 31.64 |
|
Class F-1 |
|
| 505,525 |
|
| 15,947 |
|
| 31.70 |
|
Class F-2 |
|
| 607,089 |
|
| 19,145 |
|
| 31.71 |
|
Class 529-A |
|
| 84,215 |
|
| 2,659 |
|
| 31.67 |
|
Class 529-B |
|
| 938 |
|
| 29 |
|
| 31.64 |
|
Class 529-C |
|
| 20,339 |
|
| 645 |
|
| 31.55 |
|
Class 529-E |
|
| 2,799 |
|
| 88 |
|
| 31.67 |
|
Class 529-F-1 |
|
| 5,292 |
|
| 167 |
|
| 31.71 |
|
Class R-1 |
|
| 4,171 |
|
| 132 |
|
| 31.66 |
|
Class R-2 |
|
| 35,554 |
|
| 1,126 |
|
| 31.58 |
|
Class R-3 |
|
| 26,849 |
|
| 848 |
|
| 31.67 |
|
Class R-4 |
|
| 20,385 |
|
| 643 |
|
| 31.69 |
|
Class R-5 |
|
| 37,637 |
|
| 1,183 |
|
| 31.82 |
|
Class R-6 |
|
| 474,452 |
|
| 14,967 |
|
| 31.70 |
|
See Notes to Financial Statements
|
|
12 | International Growth and Income Fund |
|
|
|
|
|
|
|
|
Statement of operations |
| unaudited |
| ||||
for the six months ended December 31, 2012 |
| (dollars in thousands) |
| ||||
|
|
|
| ||||
Investment income: |
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
Dividends (net of non-U.S. taxes of $6,103) |
| $ | 67,432 |
|
|
|
|
Interest |
|
| 4,336 |
| $ | 71,768 |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
Fees and expenses*: |
|
|
|
|
|
|
|
Investment advisory services |
|
| 13,521 |
|
|
|
|
Distribution services |
|
| 5,906 |
|
|
|
|
Transfer agent services |
|
| 3,046 |
|
|
|
|
Administrative services |
|
| 638 |
|
|
|
|
Reports to shareholders |
|
| 222 |
|
|
|
|
Registration statement and prospectus |
|
| 239 |
|
|
|
|
Trustees’ compensation |
|
| 342 |
|
|
|
|
Auditing and legal |
|
| 14 |
|
|
|
|
Custodian |
|
| 445 |
|
|
|
|
Other |
|
| 66 |
|
| 24,439 |
|
|
|
|
| ||||
Net investment income |
|
|
|
|
| 47,329 |
|
|
|
|
|
|
| ||
Net realized gain and unrealized appreciation on investments and currency: |
|
|
|
|
|
|
|
Net realized gain on: |
|
|
|
|
|
|
|
Investments |
|
| 37,914 |
|
|
|
|
Currency transactions |
|
| 213 |
|
| 38,127 |
|
|
|
|
| ||||
Net unrealized appreciation on: |
|
|
|
|
|
|
|
Investments (net of non-U.S. taxes of $590) |
|
| 651,476 |
|
|
|
|
Currency translations |
|
| 41 |
|
| 651,517 |
|
|
|
|
| ||||
Net realized gain and unrealized appreciation on investments and currency |
|
|
|
|
| 689,644 |
|
|
|
|
|
|
| ||
Net increase in net assets resulting from operations |
|
|
|
| $ | 736,973 |
|
|
|
|
|
|
|
* Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
|
|
International Growth and Income Fund | 13 |
|
|
Statements of changes in net assets |
|
| (dollars in thousands) |
|
|
|
|
|
|
|
|
|
| Six months ended |
| Year ended |
| ||
|
|
| |||||
Operations: |
|
|
|
|
|
|
|
Net investment income |
| $ | 47,329 |
| $ | 136,564 |
|
Net realized gain (loss) on investments and currency transactions |
|
| 38,127 |
|
| (46,366 | ) |
Net unrealized appreciation (depreciation) on investments and currency translations |
|
| 651,517 |
|
| (613,572 | ) |
|
|
|
| ||||
Net increase (decrease) in net assets resulting from operations |
|
| 736,973 |
|
| (523,374 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Dividends and distributions paid to shareholders: |
|
|
|
|
|
|
|
Dividends from net investment income |
|
| (56,558 | ) |
| (143,441 | ) |
Distributions from net realized gain on investments |
|
| — |
|
| (82,547 | ) |
|
|
|
| ||||
Total dividends and distributions paid to shareholders |
|
| (56,558 | ) |
| (225,988 | ) |
|
|
|
| ||||
|
|
|
|
|
|
|
|
Net capital share transactions |
|
| (29,502 | ) |
| 512,428 |
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
Total increase (decrease) in net assets |
|
| 650,913 |
|
| (236,934 | ) |
|
|
|
|
|
|
|
|
Net assets: |
|
|
|
|
|
|
|
Beginning of period |
|
| 4,890,879 |
|
| 5,127,813 |
|
|
|
|
| ||||
End of period (including distributions in excess of net investment income: $(11,545) and $(2,316), respectively) |
| $ | 5,541,792 |
| $ | 4,890,879 |
|
|
|
|
|
*Unaudited.
See Notes to Financial Statements
|
|
14 | International Growth and Income Fund |
|
|
Notes to financial statements | unaudited |
1. Organization
International Growth and Income Fund (the “fund”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks to provide long-term growth of capital with current income by investing primarily in stocks of larger, well-established companies domiciled outside the U.S.
The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are further described below:
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Share class |
| Initial sales |
| Contingent deferred sales |
| Conversion feature |
Classes A and 529-A |
| Up to 5.75% |
| None (except 1% for certain redemptions within one year of purchase without an initial sales charge) |
| None |
Classes B and 529-B* |
| None |
| Declines from 5% to 0% for redemptions within six years of purchase |
| Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years |
Class C |
| None |
| 1% for redemptions within one year of purchase |
| Class C converts to Class F-1 after 10 years |
Class 529-C |
| None |
| 1% for redemptions within one year of purchase |
| None |
Class 529-E |
| None |
| None |
| None |
Classes F-1, F-2 and 529-F-1 |
| None |
| None |
| None |
Classes R-1, R-2, R-3, R-4, R-5 and R-6 |
| None |
| None |
| None |
*Class B and 529-B shares of the fund are not available for purchase.
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International Growth and Income Fund | 15 |
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses (“class-specific fees and expenses”), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
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2. Significant accounting policies |
The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income — Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations — Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.
Dividends and distributions to shareholders — Dividends and distributions paid to shareholders are recorded on the ex-dividend date.
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16 | International Growth and Income Fund |
Currency translation — Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
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3. Valuation |
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the table on the following page. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
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International Growth and Income Fund | 17 |
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Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
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When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund’s board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related
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18 | International Growth and Income Fund |
securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination
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International Growth and Income Fund | 19 |
of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of December 31, 2012 (dollars in thousands):
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| Investment securities |
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| Level 1 |
| Level 2* |
| Level 3 |
| Total |
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Assets: |
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Common stocks: |
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Financials |
| $ | 179,180 |
| $ | 935,105 |
| $ | — |
| $ | 1,114,285 |
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Consumer discretionary |
|
| 66,701 |
|
| 560,629 |
|
| — |
|
| 627,330 |
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Industrials |
|
| 12,341 |
|
| 590,008 |
|
| — |
|
| 602,349 |
|
Energy |
|
| 156,537 |
|
| 321,631 |
|
| — |
|
| 478,168 |
|
Consumer staples |
|
| 16,594 |
|
| 446,838 |
|
| — |
|
| 463,432 |
|
Utilities |
|
| — |
|
| 426,584 |
|
| — |
|
| 426,584 |
|
Health care |
|
| — |
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| 383,697 |
|
| — |
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| 383,697 |
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Materials |
|
| — |
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| 354,395 |
|
| — |
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| 354,395 |
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Information technology |
|
| — |
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| 332,129 |
|
| — |
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| 332,129 |
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Telecommunication services |
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| 6,109 |
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| 288,795 |
|
| — |
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| 294,904 |
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Miscellaneous |
|
| — |
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| 28,879 |
|
| — |
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| 28,879 |
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Preferred stocks |
|
| — |
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| 13,074 |
|
| — |
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| 13,074 |
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Convertible securities |
|
| — |
|
| 30,216 |
|
| — |
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| 30,216 |
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Bonds & notes |
|
| — |
|
| 110,572 |
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| — |
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| 110,572 |
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Short-term securities |
|
| — |
|
| 271,042 |
|
| — |
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| 271,042 |
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Total |
| $ | 437,462 |
| $ | 5,093,594 |
| $ | — |
| $ | 5,531,056 |
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*Securities with a market value of $4,606,594,000, which represented 83.12% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading.
4. Risk factors
Investing in the fund may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of political, social, economic or market developments or instability in the countries or regions in which the issuer operates. These securities may also lose value due to changes in foreign currency
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20 | International Growth and Income Fund |
exchange rates against the U.S. dollar and/or currencies of other countries. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the U.S. The risks of investing outside the U.S. may be heightened in connection with investments in emerging and developing countries.
Investing in emerging and developing countries — Investing in countries with emerging or developing economies and/or markets may involve risks in addition to and greater than those generally associated with investing in developed countries. For instance, emerging and developing countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/ or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Additionally, there may be increased settlement risks for transactions in local securities.
Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.
Investing in income-oriented stocks — Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests.
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. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
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International Growth and Income Fund | 21 |
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5. Taxation and distributions |
Federal income taxation — The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended December 31, 2012, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.
The fund is not subject to examination by U.S. federal and state tax authorities for tax years before 2008, the year the fund commenced operations, and by tax authorities outside the U.S. for tax years before 2011.
Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
Distributions — Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; deferred expenses; net capital losses; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.
The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of June 30, 2012, the fund had a capital loss carryforward of $44,731,000. The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years. The fund will not make distributions from capital gains while a capital loss carryforward remains.
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22 | International Growth and Income Fund |
As of December 31, 2012, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):
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Gross unrealized appreciation on investment securities |
| $ | 1,100,734 |
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Gross unrealized depreciation on investment securities |
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| (177,157 | ) |
Net unrealized appreciation on investment securities |
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| 923,577 |
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Cost of investment securities |
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| 4,607,479 |
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The tax character of distributions paid to shareholders was as follows (dollars in thousands):
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| Six months ended December 31, 2012 |
| Year ended June 30, 2012 |
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Share class |
| Ordinary |
| Long-term |
| Total |
| Ordinary |
| Long-term |
| Total |
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Class A |
| $ | 35,796 |
| $ | — |
| $ | 35,796 |
| $ | 95,414 |
| $ | 56,512 |
| $ | 151,926 |
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Class B |
|
| 131 |
|
| — |
|
| 131 |
|
| 486 |
|
| 425 |
|
| 911 |
|
Class C |
|
| 1,356 |
|
| — |
|
| 1,356 |
|
| 4,380 |
|
| 3,538 |
|
| 7,918 |
|
Class F-1 |
|
| 5,032 |
|
| — |
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| 5,032 |
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| 12,543 |
|
| 7,180 |
|
| 19,723 |
|
Class F-2 |
|
| 6,680 |
|
| — |
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| 6,680 |
|
| 13,265 |
|
| 5,505 |
|
| 18,770 |
|
Class 529-A |
|
| 813 |
|
| — |
|
| 813 |
|
| 1,992 |
|
| 1,179 |
|
| 3,171 |
|
Class 529-B |
|
| 6 |
|
| — |
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| 6 |
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| 23 |
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| 21 |
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| 44 |
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Class 529-C |
|
| 122 |
|
| — |
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| 122 |
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| 359 |
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| 289 |
|
| 648 |
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Class 529-E |
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| 23 |
|
| — |
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| 23 |
|
| 60 |
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| 38 |
|
| 98 |
|
Class 529-F-1 |
|
| 48 |
|
| — |
|
| 48 |
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| 105 |
|
| 54 |
|
| 159 |
|
Class R-1 |
|
| 43 |
|
| — |
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| 43 |
|
| 102 |
|
| 73 |
|
| 175 |
|
Class R-2 |
|
| 228 |
|
| — |
|
| 228 |
|
| 605 |
|
| 452 |
|
| 1,057 |
|
Class R-3 |
|
| 231 |
|
| — |
|
| 231 |
|
| 585 |
|
| 380 |
|
| 965 |
|
Class R-4 |
|
| 199 |
|
| — |
|
| 199 |
|
| 393 |
|
| 209 |
|
| 602 |
|
Class R-5 |
|
| 429 |
|
| — |
|
| 429 |
|
| 1,036 |
|
| 534 |
|
| 1,570 |
|
Class R-6 |
|
| 5,421 |
|
| — |
|
| 5,421 |
|
| 12,093 |
|
| 6,158 |
|
| 18,251 |
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Total |
| $ | 56,558 |
| $ | — |
| $ | 56,558 |
| $ | 143,441 |
| $ | 82,547 |
| $ | 225,988 |
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6. Fees and transactions with related parties |
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. (“AFD”), the principal underwriter of the fund’s shares, and American Funds Service Company® ( “ AFS”), the fund’s transfer agent.
Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.690% on the first $500 million of daily net assets and decreasing to 0.460% on such assets in excess of $6.5 billion. For the six months ended December 31, 2012, the investment advisory services fee was $13,521,000, which was equivalent to an annualized rate of 0.517% of average daily net assets.
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International Growth and Income Fund | 23 |
Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:
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| Distribution services — The fund has plans of distribution for all share classes, except Class F-2, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities. |
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| For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of December 31, 2012, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares. |
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| Share class |
| Currently |
| Plan |
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| Class A |
| 0.30 | % |
| 0.30 | % |
|
| Class 529-A |
| 0.30 |
|
| 0.50 |
|
|
| Classes B and 529-B |
| 1.00 |
|
| 1.00 |
|
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| Classes C, 529-C and R-1 |
| 1.00 |
|
| 1.00 |
|
|
| Class R-2 |
| 0.75 |
|
| 1.00 |
|
|
| Classes 529-E and R-3 |
| 0.50 |
|
| 0.75 |
|
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| Classes F-1, 529-F-1 and R-4 |
| 0.25 |
|
| 0.50 |
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| Transfer agent services — The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders. |
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24 | International Growth and Income Fund |
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| Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, F, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, Class A shares pay an annual fee of 0.01% and Class C, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets. |
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| 529 plan services — Each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party. |
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| Class-specific expenses under the agreements described above for the six months ended December 31, 2012, were as follows (dollars in thousands): |
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Share class |
| Distribution |
| Transfer agent |
| Administrative |
| 529 plan |
| ||||
Class A |
|
| $3,831 |
|
| $2,136 |
|
| $166 |
| Not applicable |
| |
Class B |
|
| 98 |
|
| 13 |
| Not applicable |
| Not applicable |
| ||
Class C |
|
| 1,012 |
|
| 138 |
|
| 51 |
| Not applicable |
| |
Class F-1 |
|
| 587 |
|
| 251 |
|
| 117 |
| Not applicable |
| |
Class F-2 |
| Not applicable |
|
| 339 |
|
| 141 |
| Not applicable |
| ||
Class 529-A |
|
| 72 |
|
| 40 |
|
| 19 |
|
| $38 |
|
Class 529-B |
|
| 5 |
|
| 1 |
|
| 1 |
|
| 1 |
|
Class 529-C |
|
| 94 |
|
| 11 |
|
| 5 |
|
| 9 |
|
Class 529-E |
|
| 6 |
|
| 1 |
|
| 1 |
|
| 1 |
|
Class 529-F-1 |
|
| — |
|
| 2 |
|
| 1 |
|
| 2 |
|
Class R-1 |
|
| 10 |
|
| 2 |
|
| 1 |
| Not applicable |
| |
Class R-2 |
|
| 114 |
|
| 70 |
|
| 8 |
| Not applicable |
| |
Class R-3 |
|
| 57 |
|
| 25 |
|
| 6 |
| Not applicable |
| |
Class R-4 |
|
| 20 |
|
| 8 |
|
| 4 |
| Not applicable |
| |
Class R-5 |
| Not applicable |
|
| 8 |
|
| 9 |
| Not applicable |
| ||
Class R-6 |
| Not applicable |
|
| 1 |
|
| 108 |
| Not applicable |
| ||
|
|
|
|
|
|
|
|
|
| ||||
Total class-specific expenses |
|
| $5,906 |
|
| $3,046 |
|
| $638 |
|
| $51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
International Growth and Income Fund | 25 |
Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $342,000, shown on the accompanying financial statements, includes $202,000 in current fees (either paid in cash or deferred) and a net increase of $140,000 in the value of the deferred amounts.
Affiliated officers and trustees — Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or trustees received any compensation directly from the fund.
7. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales* |
| Reinvestments |
| Repurchases* |
| Net (decrease) |
| ||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Share class |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| ||||||||
Six months ended December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Class A |
| $ | 194,218 |
|
| 6,491 |
| $ | 34,830 |
|
| 1,142 |
| $ | (310,366 | ) |
| (10,428 | ) | $ | (81,318 | ) |
| (2,795 | ) |
Class B |
|
| 619 |
|
| 21 |
|
| 130 |
|
| 4 |
|
| (4,244 | ) |
| (144 | ) |
| (3,495 | ) |
| (119 | ) |
Class C |
|
| 14,601 |
|
| 489 |
|
| 1,330 |
|
| 44 |
|
| (25,562 | ) |
| (866 | ) |
| (9,631 | ) |
| (333 | ) |
Class F-1 |
|
| 57,279 |
|
| 1,923 |
|
| 4,941 |
|
| 162 |
|
| (55,416 | ) |
| (1,869 | ) |
| 6,804 |
|
| 216 |
|
Class F-2 |
|
| 64,508 |
|
| 2,160 |
|
| 6,371 |
|
| 209 |
|
| (49,460 | ) |
| (1,643 | ) |
| 21,419 |
|
| 726 |
|
Class 529-A |
|
| 9,475 |
|
| 315 |
|
| 812 |
|
| 27 |
|
| (6,696 | ) |
| (224 | ) |
| 3,591 |
|
| 118 |
|
Class 529-B |
|
| 56 |
|
| 2 |
|
| 6 |
|
| — | † |
| (290 | ) |
| (10 | ) |
| (228 | ) |
| (8 | ) |
Class 529-C |
|
| 2,323 |
|
| 78 |
|
| 122 |
|
| 4 |
|
| (2,106 | ) |
| (71 | ) |
| 339 |
|
| 11 |
|
Class 529-E |
|
| 313 |
|
| 10 |
|
| 23 |
|
| 1 |
|
| (149 | ) |
| (5 | ) |
| 187 |
|
| 6 |
|
Class 529-F-1 |
|
| 1,320 |
|
| 42 |
|
| 47 |
|
| 2 |
|
| (398 | ) |
| (13 | ) |
| 969 |
|
| 31 |
|
Class R-1 |
|
| 234 |
|
| 8 |
|
| 31 |
|
| 1 |
|
| (791 | ) |
| (26 | ) |
| (526 | ) |
| (17 | ) |
Class R-2 |
|
| 5,913 |
|
| 200 |
|
| 219 |
|
| 7 |
|
| (4,015 | ) |
| (135 | ) |
| 2,117 |
|
| 72 |
|
Class R-3 |
|
| 4,280 |
|
| 145 |
|
| 220 |
|
| 7 |
|
| (3,350 | ) |
| (113 | ) |
| 1,150 |
|
| 39 |
|
Class R-4 |
|
| 5,705 |
|
| 192 |
|
| 185 |
|
| 6 |
|
| (2,729 | ) |
| (92 | ) |
| 3,161 |
|
| 106 |
|
Class R-5 |
|
| 5,553 |
|
| 192 |
|
| 429 |
|
| 14 |
|
| (5,801 | ) |
| (196 | ) |
| 181 |
|
| 10 |
|
Class R-6 |
|
| 40,259 |
|
| 1,348 |
|
| 5,421 |
|
| 178 |
|
| (19,902 | ) |
| (660 | ) |
| 25,778 |
|
| 866 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total net increase (decrease) |
| $ | 406,656 |
|
| 13,616 |
| $ | 55,117 |
|
| 1,808 |
| $ | (491,275 | ) |
| (16,495 | ) | $ | (29,502 | ) |
| (1,071 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
26 | International Growth and Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales* |
| Reinvestments |
| Repurchases* |
| Net increase |
| ||||||||||||||||
|
|
|
|
|
| ||||||||||||||||||||
Share class |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| Amount |
| Shares |
| ||||||||
Year ended June 30, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Class A |
| $ | 588,644 |
|
| 20,553 |
| $ | 147,415 |
|
| 5,362 |
| $ | (693,180 | ) |
| (24,314 | ) | $ | 42,879 |
|
| 1,601 |
|
Class B |
|
| 4,109 |
|
| 143 |
|
| 902 |
|
| 33 |
|
| (11,305 | ) |
| (397 | ) |
| (6,294 | ) |
| (221 | ) |
Class C |
|
| 45,871 |
|
| 1,608 |
|
| 7,755 |
|
| 283 |
|
| (56,072 | ) |
| (1,974 | ) |
| (2,446 | ) |
| (83 | ) |
Class F-1 |
|
| 206,182 |
|
| 7,249 |
|
| 19,474 |
|
| 709 |
|
| (146,810 | ) |
| (5,170 | ) |
| 78,846 |
|
| 2,788 |
|
Class F-2 |
|
| 321,492 |
|
| 11,178 |
|
| 17,750 |
|
| 646 |
|
| (84,305 | ) |
| (2,978 | ) |
| 254,937 |
|
| 8,846 |
|
Class 529-A |
|
| 20,617 |
|
| 723 |
|
| 3,170 |
|
| 115 |
|
| (10,653 | ) |
| (373 | ) |
| 13,134 |
|
| 465 |
|
Class 529-B |
|
| 207 |
|
| 7 |
|
| 44 |
|
| 1 |
|
| (766 | ) |
| (27 | ) |
| (515 | ) |
| (19 | ) |
Class 529-C |
|
| 6,196 |
|
| 217 |
|
| 647 |
|
| 24 |
|
| (3,197 | ) |
| (112 | ) |
| 3,646 |
|
| 129 |
|
Class 529-E |
|
| 946 |
|
| 33 |
|
| 97 |
|
| 3 |
|
| (708 | ) |
| (25 | ) |
| 335 |
|
| 11 |
|
Class 529-F-1 |
|
| 1,991 |
|
| 70 |
|
| 159 |
|
| 5 |
|
| (511 | ) |
| (18 | ) |
| 1,639 |
|
| 57 |
|
Class R-1 |
|
| 890 |
|
| 31 |
|
| 126 |
|
| 5 |
|
| (1,006 | ) |
| (35 | ) |
| 10 |
|
| 1 |
|
Class R-2 |
|
| 14,319 |
|
| 501 |
|
| 1,010 |
|
| 37 |
|
| (7,029 | ) |
| (247 | ) |
| 8,300 |
|
| 291 |
|
Class R-3 |
|
| 9,324 |
|
| 323 |
|
| 916 |
|
| 33 |
|
| (7,873 | ) |
| (273 | ) |
| 2,367 |
|
| 83 |
|
Class R-4 |
|
| 7,621 |
|
| 267 |
|
| 546 |
|
| 20 |
|
| (3,027 | ) |
| (107 | ) |
| 5,140 |
|
| 180 |
|
Class R-5 |
|
| 13,591 |
|
| 454 |
|
| 1,560 |
|
| 56 |
|
| (6,081 | ) |
| (210 | ) |
| 9,070 |
|
| 300 |
|
Class R-6 |
|
| 93,065 |
|
| 3,295 |
|
| 18,251 |
|
| 664 |
|
| (9,936 | ) |
| (360 | ) |
| 101,380 |
|
| 3,599 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total net increase (decrease) |
| $ | 1,335,065 |
|
| 46,652 |
| $ | 219,822 |
|
| 7,996 |
| $ | (1,042,459 | ) |
| (36,620 | ) | $ | 512,428 |
|
| 18,028 |
|
|
|
|
|
|
|
|
|
|
|
* Includes exchanges between share classes of the fund.
† Amount less than one thousand.
8. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $876,661,000 and $855,230,000, respectively, during the six months ended December 31, 2012.
|
|
International Growth and Income Fund | 27 |
Financial highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from investment operations1 |
|
| Dividends and distributions | ||||||||||||||
|
|
|
|
|
|
|
| ||||||||||||||||
|
|
|
| Net asset |
|
| Net |
|
| Net gains |
|
| Total from |
|
| Dividends |
|
| Distributions |
|
| Total |
|
Class A: | Six months ended 12/31/20124,5 |
| $ | 27.81 |
| $ | .27 |
| $ | 3.94 |
| $ | 4.21 |
| $ | (.32 | ) | $ | — |
| $ | (.32 | ) |
| Year ended 6/30/2012 |
|
| 32.48 |
|
| .82 |
|
| (4.12 | ) |
| (3.30 | ) |
| (.86 | ) |
| (.51 | ) |
| (1.37 | ) |
| Year ended 6/30/2011 |
|
| 25.86 |
|
| 1.06 |
|
| 6.80 |
|
| 7.86 |
|
| (1.06 | ) |
| (.18 | ) |
| (1.24 | ) |
| Year ended 6/30/2010 |
|
| 24.78 |
|
| .80 |
|
| 1.39 |
|
| 2.19 |
|
| (.74 | ) |
| (.37 | ) |
| (1.11 | ) |
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .62 |
|
| (.39 | ) |
| .23 |
|
| (.45 | ) |
| — |
|
| (.45 | ) |
Class B: | Six months ended 12/31/20124,5 |
|
| 27.78 |
|
| .16 |
|
| 3.94 |
|
| 4.10 |
|
| (.21 | ) |
| — |
|
| (.21 | ) |
| Year ended 6/30/2012 |
|
| 32.44 |
|
| .57 |
|
| (4.09 | ) |
| (3.52 | ) |
| (.63 | ) |
| (.51 | ) |
| (1.14 | ) |
| Year ended 6/30/2011 |
|
| 25.82 |
|
| .79 |
|
| 6.82 |
|
| 7.61 |
|
| (.81 | ) |
| (.18 | ) |
| (.99 | ) |
| Year ended 6/30/2010 |
|
| 24.75 |
|
| .56 |
|
| 1.40 |
|
| 1.96 |
|
| (.52 | ) |
| (.37 | ) |
| (.89 | ) |
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .53 |
|
| (.42 | ) |
| .11 |
|
| (.36 | ) |
| — |
|
| (.36 | ) |
Class C: | Six months ended 12/31/20124,5 |
|
| 27.76 |
|
| .15 |
|
| 3.93 |
|
| 4.08 |
|
| (.20 | ) |
| — |
|
| (.20 | ) |
| Year ended 6/30/2012 |
|
| 32.42 |
|
| .58 |
|
| (4.10 | ) |
| (3.52 | ) |
| (.63 | ) |
| (.51 | ) |
| (1.14 | ) |
| Year ended 6/30/2011 |
|
| 25.81 |
|
| .80 |
|
| 6.79 |
|
| 7.59 |
|
| (.80 | ) |
| (.18 | ) |
| (.98 | ) |
| Year ended 6/30/2010 |
|
| 24.75 |
|
| .57 |
|
| 1.38 |
|
| 1.95 |
|
| (.52 | ) |
| (.37 | ) |
| (.89 | ) |
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .51 |
|
| (.41 | ) |
| .10 |
|
| (.35 | ) |
| — |
|
| (.35 | ) |
Class F-1: | Six months ended 12/31/20124,5 |
|
| 27.81 |
|
| .26 |
|
| 3.95 |
|
| 4.21 |
|
| (.32 | ) |
| — |
|
| (.32 | ) |
| Year ended 6/30/2012 |
|
| 32.49 |
|
| .84 |
|
| (4.16 | ) |
| (3.32 | ) |
| (.85 | ) |
| (.51 | ) |
| (1.36 | ) |
| Year ended 6/30/2011 |
|
| 25.86 |
|
| 1.06 |
|
| 6.79 |
|
| 7.85 |
|
| (1.04 | ) |
| (.18 | ) |
| (1.22 | ) |
| Year ended 6/30/2010 |
|
| 24.78 |
|
| .79 |
|
| 1.39 |
|
| 2.18 |
|
| (.73 | ) |
| (.37 | ) |
| (1.10 | ) |
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .63 |
|
| (.39 | ) |
| .24 |
|
| (.46 | ) |
| — |
|
| (.46 | ) |
Class F-2: | Six months ended 12/31/20124,5 |
|
| 27.81 |
|
| .30 |
|
| 3.95 |
|
| 4.25 |
|
| (.35 | ) |
| — |
|
| (.35 | ) |
| Year ended 6/30/2012 |
|
| 32.50 |
|
| .97 |
|
| (4.23 | ) |
| (3.26 | ) |
| (.92 | ) |
| (.51 | ) |
| (1.43 | ) |
| Year ended 6/30/2011 |
|
| 25.87 |
|
| 1.13 |
|
| 6.79 |
|
| 7.92 |
|
| (1.11 | ) |
| (.18 | ) |
| (1.29 | ) |
| Year ended 6/30/2010 |
|
| 24.79 |
|
| .86 |
|
| 1.39 |
|
| 2.25 |
|
| (.80 | ) |
| (.37 | ) |
| (1.17 | ) |
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .60 |
|
| (.31 | ) |
| .29 |
|
| (.50 | ) |
| — |
|
| (.50 | ) |
Class 529-A: | Six months ended 12/31/20124,5 |
|
| 27.78 |
|
| .26 |
|
| 3.94 |
|
| 4.20 |
|
| (.31 | ) |
| — |
|
| (.31 | ) |
| Year ended 6/30/2012 |
|
| 32.46 |
|
| .81 |
|
| (4.14 | ) |
| (3.33 | ) |
| (.84 | ) |
| (.51 | ) |
| (1.35 | ) |
| Year ended 6/30/2011 |
|
| 25.85 |
|
| 1.09 |
|
| 6.75 |
|
| 7.84 |
|
| (1.05 | ) |
| (.18 | ) |
| (1.23 | ) |
| Year ended 6/30/2010 |
|
| 24.77 |
|
| .82 |
|
| 1.35 |
|
| 2.17 |
|
| (.72 | ) |
| (.37 | ) |
| (1.09 | ) |
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .70 |
|
| (.49 | ) |
| .21 |
|
| (.44 | ) |
| — |
|
| (.44 | ) |
Class 529-B: | Six months ended 12/31/20124,5 |
|
| 27.75 |
|
| .14 |
|
| 3.93 |
|
| 4.07 |
|
| (.18 | ) |
| — |
|
| (.18 | ) |
| Year ended 6/30/2012 |
|
| 32.39 |
|
| .52 |
|
| (4.07 | ) |
| (3.55 | ) |
| (.58 | ) |
| (.51 | ) |
| (1.09 | ) |
| Year ended 6/30/2011 |
|
| 25.80 |
|
| .78 |
|
| 6.78 |
|
| 7.56 |
|
| (.79 | ) |
| (.18 | ) |
| (.97 | ) |
| Year ended 6/30/2010 |
|
| 24.74 |
|
| .55 |
|
| 1.38 |
|
| 1.93 |
|
| (.50 | ) |
| (.37 | ) |
| (.87 | ) |
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .50 |
|
| (.41 | ) |
| .09 |
|
| (.35 | ) |
| — |
|
| (.35 | ) |
Class 529-C: | Six months ended 12/31/20124,5 |
|
| 27.68 |
|
| .14 |
|
| 3.92 |
|
| 4.06 |
|
| (.19 | ) |
| — |
|
| (.19 | ) |
| Year ended 6/30/2012 |
|
| 32.35 |
|
| .58 |
|
| (4.13 | ) |
| (3.55 | ) |
| (.61 | ) |
| (.51 | ) |
| (1.12 | ) |
| Year ended 6/30/2011 |
|
| 25.77 |
|
| .83 |
|
| 6.73 |
|
| 7.56 |
|
| (.80 | ) |
| (.18 | ) |
| (.98 | ) |
| Year ended 6/30/2010 |
|
| 24.72 |
|
| .59 |
|
| 1.35 |
|
| 1.94 |
|
| (.52 | ) |
| (.37 | ) |
| (.89 | ) |
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .65 |
|
| (.57 | ) |
| .08 |
|
| (.36 | ) |
| — |
|
| (.36 | ) |
Class 529-E: | Six months ended 12/31/20124,5 |
|
| 27.79 |
|
| .22 |
|
| 3.93 |
|
| 4.15 |
|
| (.27 | ) |
| — |
|
| (.27 | ) |
| Year ended 6/30/2012 |
|
| 32.46 |
|
| .73 |
|
| (4.13 | ) |
| (3.40 | ) |
| (.76 | ) |
| (.51 | ) |
| (1.27 | ) |
| Year ended 6/30/2011 |
|
| 25.85 |
|
| .97 |
|
| 6.76 |
|
| 7.73 |
|
| (.94 | ) |
| (.18 | ) |
| (1.12 | ) |
| Year ended 6/30/2010 |
|
| 24.78 |
|
| .75 |
|
| 1.33 |
|
| 2.08 |
|
| (.64 | ) |
| (.37 | ) |
| (1.01 | ) |
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .74 |
|
| (.56 | ) |
| .18 |
|
| (.40 | ) |
| — |
|
| (.40 | ) |
See page 31 for footnotes.
|
|
28 | International Growth and Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net asset |
|
| Total |
|
| Net assets, |
|
| Ratio of |
|
| Ratio of |
|
| Ratio of |
|
Class A: | Six months ended 12/31/20124,5 |
| $ | 31.70 |
|
| 15.20 | % | $ | 3,486 |
|
| .94 | %6 |
| .94 | %6 |
| 1.81 | %6 |
| Year ended 6/30/2012 |
|
| 27.81 |
|
| (10.03 | ) |
| 3,136 |
|
| .93 |
|
| .93 |
|
| 2.85 |
|
| Year ended 6/30/2011 |
|
| 32.48 |
|
| 30.64 |
|
| 3,611 |
|
| .89 |
|
| .89 |
|
| 3.43 |
|
| Year ended 6/30/2010 |
|
| 25.86 |
|
| 8.44 |
|
| 2,515 |
|
| .94 |
|
| .93 |
|
| 2.79 |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.78 |
|
| 1.04 |
|
| 1,424 |
|
| 1.11 | 6 |
| 1.06 | 6 |
| 3.73 | 6 |
Class B: | Six months ended 12/31/20124,5 |
|
| 31.67 |
|
| 14.77 |
|
| 19 |
|
| 1.70 | 6 |
| 1.70 | 6 |
| 1.07 | 6 |
| Year ended 6/30/2012 |
|
| 27.78 |
|
| (10.75 | ) |
| 20 |
|
| 1.70 |
|
| 1.70 |
|
| 1.98 |
|
| Year ended 6/30/2011 |
|
| 32.44 |
|
| 29.62 |
|
| 31 |
|
| 1.68 |
|
| 1.68 |
|
| 2.56 |
|
| Year ended 6/30/2010 |
|
| 25.82 |
|
| 7.60 |
|
| 28 |
|
| 1.72 |
|
| 1.71 |
|
| 1.96 |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.75 |
|
| .49 |
|
| 18 |
|
| 1.81 | 6 |
| 1.77 | 6 |
| 3.16 | 6 |
Class C: | Six months ended 12/31/20124,5 |
|
| 31.64 |
|
| 14.73 |
|
| 211 |
|
| 1.75 | 6 |
| 1.75 | 6 |
| 1.00 | 6 |
| Year ended 6/30/2012 |
|
| 27.76 |
|
| (10.75 | ) |
| 195 |
|
| 1.73 |
|
| 1.73 |
|
| 2.05 |
|
| Year ended 6/30/2011 |
|
| 32.42 |
|
| 29.57 |
|
| 230 |
|
| 1.73 |
|
| 1.73 |
|
| 2.58 |
|
| Year ended 6/30/2010 |
|
| 25.81 |
|
| 7.55 |
|
| 167 |
|
| 1.75 |
|
| 1.74 |
|
| 2.00 |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.75 |
|
| .48 |
|
| 87 |
|
| 1.84 | 6 |
| 1.80 | 6 |
| 3.07 | 6 |
Class F-1: | Six months ended 12/31/20124,5 |
|
| 31.70 |
|
| 15.18 |
|
| 506 |
|
| .97 | 6 |
| .97 | 6 |
| 1.77 | 6 |
| Year ended 6/30/2012 |
|
| 27.81 |
|
| (10.05 | ) |
| 437 |
|
| .94 |
|
| .94 |
|
| 2.92 |
|
| Year ended 6/30/2011 |
|
| 32.49 |
|
| 30.58 |
|
| 420 |
|
| .94 |
|
| .94 |
|
| 3.40 |
|
| Year ended 6/30/2010 |
|
| 25.86 |
|
| 8.41 |
|
| 274 |
|
| .97 |
|
| .96 |
|
| 2.76 |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.78 |
|
| 1.06 |
|
| 164 |
|
| 1.07 | 6 |
| 1.03 | 6 |
| 3.76 | 6 |
Class F-2: | Six months ended 12/31/20124,5 |
|
| 31.71 |
|
| 15.31 |
|
| 607 |
|
| .74 | 6 |
| .74 | 6 |
| 2.01 | 6 |
| Year ended 6/30/2012 |
|
| 27.81 |
|
| (9.82 | ) |
| 512 |
|
| .70 |
|
| .70 |
|
| 3.40 |
|
| Year ended 6/30/2011 |
|
| 32.50 |
|
| 30.87 |
|
| 311 |
|
| .71 |
|
| .71 |
|
| 3.65 |
|
| Year ended 6/30/2010 |
|
| 25.87 |
|
| 8.69 |
|
| 199 |
|
| .71 |
|
| .70 |
|
| 3.02 |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.79 |
|
| 1.28 |
|
| 119 |
|
| .82 | 6 |
| .76 | 6 |
| 3.57 | 6 |
Class 529-A: | Six months ended 12/31/20124,5 |
|
| 31.67 |
|
| 15.18 |
|
| 84 |
|
| 1.01 | 6 |
| 1.01 | 6 |
| 1.73 | 6 |
| Year ended 6/30/2012 |
|
| 27.78 |
|
| (10.13 | ) |
| 71 |
|
| 1.00 |
|
| 1.00 |
|
| 2.84 |
|
| Year ended 6/30/2011 |
|
| 32.46 |
|
| 30.62 |
|
| 67 |
|
| .94 |
|
| .94 |
|
| 3.50 |
|
| Year ended 6/30/2010 |
|
| 25.85 |
|
| 8.33 |
|
| 35 |
|
| .99 |
|
| .98 |
|
| 2.87 |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.77 |
|
| .96 |
|
| 9 |
|
| 1.20 | 6 |
| 1.16 | 6 |
| 4.16 | 6 |
Class 529-B: | Six months ended 12/31/20124,5 |
|
| 31.64 |
|
| 14.70 |
|
| 1 |
|
| 1.84 | 6 |
| 1.84 | 6 |
| .94 | 6 |
| Year ended 6/30/2012 |
|
| 27.75 |
|
| (10.86 | ) |
| 1 |
|
| 1.83 |
|
| 1.83 |
|
| 1.81 |
|
| Year ended 6/30/2011 |
|
| 32.39 |
|
| 29.47 |
|
| 2 |
|
| 1.79 |
|
| 1.79 |
|
| 2.51 |
|
| Year ended 6/30/2010 |
|
| 25.80 |
|
| 7.49 |
|
| 1 |
|
| 1.82 |
|
| 1.81 |
|
| 1.94 |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.74 |
|
| .43 |
|
| — | 8 |
| 1.93 | 6 |
| 1.88 | 6 |
| 3.00 | 6 |
Class 529-C: | Six months ended 12/31/20124,5 |
|
| 31.55 |
|
| 14.70 |
|
| 20 |
|
| 1.83 | 6 |
| 1.83 | 6 |
| .91 | 6 |
| Year ended 6/30/2012 |
|
| 27.68 |
|
| (10.85 | ) |
| 18 |
|
| 1.82 |
|
| 1.82 |
|
| 2.02 |
|
| Year ended 6/30/2011 |
|
| 32.35 |
|
| 29.45 |
|
| 16 |
|
| 1.78 |
|
| 1.78 |
|
| 2.68 |
|
| Year ended 6/30/2010 |
|
| 25.77 |
|
| 7.53 |
|
| 8 |
|
| 1.81 |
|
| 1.80 |
|
| 2.08 |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.72 |
|
| .41 |
|
| 2 |
|
| 1.91 | 6 |
| 1.88 | 6 |
| 3.81 | 6 |
Class 529-E: | Six months ended 12/31/20124,5 |
|
| 31.67 |
|
| 14.99 |
|
| 3 |
|
| 1.28 | 6 |
| 1.28 | 6 |
| 1.46 | 6 |
| Year ended 6/30/2012 |
|
| 27.79 |
|
| (10.34 | ) |
| 2 |
|
| 1.27 |
|
| 1.27 |
|
| 2.56 |
|
| Year ended 6/30/2011 |
|
| 32.46 |
|
| 30.18 |
|
| 2 |
|
| 1.27 |
|
| 1.27 |
|
| 3.12 |
|
| Year ended 6/30/2010 |
|
| 25.85 |
|
| 8.01 |
|
| 1 |
|
| 1.30 |
|
| 1.29 |
|
| 2.64 |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.78 |
|
| .82 |
|
| — | 8 |
| 1.39 | 6 |
| 1.35 | 6 |
| 4.36 | 6 |
|
|
International Growth and Income Fund | 29 |
Financial highlights (continued)
|
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| Income (loss) from investment operations1 |
| Dividends and distributions |
| |||||||||||||||
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|
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|
|
|
| |||||||||||||||||
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|
|
| Net asset |
| Net |
| Net gains |
| Total from |
| Dividends |
| Distributions |
| Total |
| |||||||
Class 529-F-1: |
| Six months ended 12/31/20124,5 |
| $ | 27.81 |
| $ | .29 |
| $ | 3.95 |
| $ | 4.24 |
| $ | (.34 | ) | $ | — |
| $ | (.34 | ) |
|
| Year ended 6/30/2012 |
|
| 32.50 |
|
| .89 |
|
| (4.17 | ) |
| (3.28 | ) |
| (.90 | ) |
| (.51 | ) |
| (1.41 | ) |
|
| Year ended 6/30/2011 |
|
| 25.87 |
|
| 1.25 |
|
| 6.66 |
|
| 7.91 |
|
| (1.10 | ) |
| (.18 | ) |
| (1.28 | ) |
|
| Year ended 6/30/2010 |
|
| 24.79 |
|
| .91 |
|
| 1.32 |
|
| 2.23 |
|
| (.78 | ) |
| (.37 | ) |
| (1.15 | ) |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .76 |
|
| (.49 | ) |
| .27 |
|
| (.48 | ) |
| — |
|
| (.48 | ) |
Class R-1: |
| Six months ended 12/31/20124,5 |
|
| 27.78 |
|
| .24 |
|
| 3.95 |
|
| 4.19 |
|
| (.31 | ) |
| — |
|
| (.31 | ) |
|
| Year ended 6/30/2012 |
|
| 32.43 |
|
| .69 |
|
| (4.12 | ) |
| (3.43 | ) |
| (.71 | ) |
| (.51 | ) |
| (1.22 | ) |
|
| Year ended 6/30/2011 |
|
| 25.82 |
|
| .87 |
|
| 6.78 |
|
| 7.65 |
|
| (.86 | ) |
| (.18 | ) |
| (1.04 | ) |
|
| Year ended 6/30/2010 |
|
| 24.76 |
|
| .59 |
|
| 1.37 |
|
| 1.96 |
|
| (.53 | ) |
| (.37 | ) |
| (.90 | ) |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .45 |
|
| (.34 | ) |
| .11 |
|
| (.35 | ) |
| — |
|
| (.35 | ) |
Class R-2: |
| Six months ended 12/31/20124,5 |
|
| 27.71 |
|
| .15 |
|
| 3.93 |
|
| 4.08 |
|
| (.21 | ) |
| — |
|
| (.21 | ) |
|
| Year ended 6/30/2012 |
|
| 32.38 |
|
| .60 |
|
| (4.13 | ) |
| (3.53 | ) |
| (.63 | ) |
| (.51 | ) |
| (1.14 | ) |
|
| Year ended 6/30/2011 |
|
| 25.79 |
|
| .85 |
|
| 6.74 |
|
| 7.59 |
|
| (.82 | ) |
| (.18 | ) |
| (1.00 | ) |
|
| Year ended 6/30/2010 |
|
| 24.74 |
|
| .61 |
|
| 1.34 |
|
| 1.95 |
|
| (.53 | ) |
| (.37 | ) |
| (.90 | ) |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .54 |
|
| (.44 | ) |
| .10 |
|
| (.36 | ) |
| — |
|
| (.36 | ) |
Class R-3: |
| Six months ended 12/31/20124,5 |
|
| 27.78 |
|
| .22 |
|
| 3.95 |
|
| 4.17 |
|
| (.28 | ) |
| — |
|
| (.28 | ) |
|
| Year ended 6/30/2012 |
|
| 32.45 |
|
| .72 |
|
| (4.13 | ) |
| (3.41 | ) |
| (.75 | ) |
| (.51 | ) |
| (1.26 | ) |
|
| Year ended 6/30/2011 |
|
| 25.84 |
|
| 1.01 |
|
| 6.73 |
|
| 7.74 |
|
| (.95 | ) |
| (.18 | ) |
| (1.13 | ) |
|
| Year ended 6/30/2010 |
|
| 24.78 |
|
| .75 |
|
| 1.33 |
|
| 2.08 |
|
| (.65 | ) |
| (.37 | ) |
| (1.02 | ) |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .61 |
|
| (.42 | ) |
| .19 |
|
| (.41 | ) |
| — |
|
| (.41 | ) |
Class R-4: |
| Six months ended 12/31/20124,5 |
|
| 27.80 |
|
| .27 |
|
| 3.95 |
|
| 4.22 |
|
| (.33 | ) |
| — |
|
| (.33 | ) |
|
| Year ended 6/30/2012 |
|
| 32.48 |
|
| .85 |
|
| (4.16 | ) |
| (3.31 | ) |
| (.86 | ) |
| (.51 | ) |
| (1.37 | ) |
|
| Year ended 6/30/2011 |
|
| 25.86 |
|
| 1.15 |
|
| 6.70 |
|
| 7.85 |
|
| (1.05 | ) |
| (.18 | ) |
| (1.23 | ) |
|
| Year ended 6/30/2010 |
|
| 24.79 |
|
| .84 |
|
| 1.33 |
|
| 2.17 |
|
| (.73 | ) |
| (.37 | ) |
| (1.10 | ) |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .61 |
|
| (.37 | ) |
| .24 |
|
| (.45 | ) |
| — |
|
| (.45 | ) |
Class R-5: |
| Six months ended 12/31/20124,5 |
|
| 27.91 |
|
| .31 |
|
| 3.97 |
|
| 4.28 |
|
| (.37 | ) |
| — |
|
| (.37 | ) |
|
| Year ended 6/30/2012 |
|
| 32.60 |
|
| .91 |
|
| (4.15 | ) |
| (3.24 | ) |
| (.94 | ) |
| (.51 | ) |
| (1.45 | ) |
|
| Year ended 6/30/2011 |
|
| 25.95 |
|
| 1.15 |
|
| 6.81 |
|
| 7.96 |
|
| (1.13 | ) |
| (.18 | ) |
| (1.31 | ) |
|
| Year ended 6/30/2010 |
|
| 24.86 |
|
| .85 |
|
| 1.41 |
|
| 2.26 |
|
| (.80 | ) |
| (.37 | ) |
| (1.17 | ) |
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 25.00 |
|
| .76 |
|
| (.47 | ) |
| .29 |
|
| (.43 | ) |
| — |
|
| (.43 | ) |
Class R-6: |
| Six months ended 12/31/20124,5 |
|
| 27.80 |
|
| .32 |
|
| 3.95 |
|
| 4.27 |
|
| (.37 | ) |
| — |
|
| (.37 | ) |
|
| Year ended 6/30/2012 |
|
| 32.48 |
|
| .93 |
|
| (4.15 | ) |
| (3.22 | ) |
| (.95 | ) |
| (.51 | ) |
| (1.46 | ) |
|
| Year ended 6/30/2011 |
|
| 25.86 |
|
| 1.17 |
|
| 6.77 |
|
| 7.94 |
|
| (1.14 | ) |
| (.18 | ) |
| (1.32 | ) |
|
| Year ended 6/30/2010 |
|
| 24.78 |
|
| .90 |
|
| 1.37 |
|
| 2.27 |
|
| (.82 | ) |
| (.37 | ) |
| (1.19 | ) |
|
| Period from 5/1/2009 to 6/30/20094 |
|
| 22.97 |
|
| .25 |
|
| 1.90 |
|
| 2.15 |
|
| (.34 | ) |
| — |
|
| (.34 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year ended June 30 |
|
|
| ||||||||
|
| Six months ended |
|
|
| For the period |
| |||||||||
|
|
|
| 2012 |
|
| 2011 |
|
| 2010 |
|
| ||||
Portfolio turnover rate for all share classes |
|
| 17% |
|
| 24 | % |
| 31 | % |
| 16 | % |
| 33% |
|
|
|
30 | International Growth and Income Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| ||||||
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| ||||||
|
|
|
| Net asset |
| Total |
| Net assets, |
| Ratio of |
| Ratio of |
| Ratio of |
| ||||||
Class 529-F-1: |
| Six months ended 12/31/20124,5 |
| $ | 31.71 |
|
| 15.31 | % | $ | 5 |
|
| .82 | %6 |
| .82 | %6 |
| 1.91 | %6 |
|
| Year ended 6/30/2012 |
|
| 27.81 |
|
| (9.94 | ) |
| 4 |
|
| .81 |
|
| .81 |
|
| 3.11 |
|
|
| Year ended 6/30/2011 |
|
| 32.50 |
|
| 30.80 |
|
| 3 |
|
| .77 |
|
| .77 |
|
| 3.99 |
|
|
| Year ended 6/30/2010 |
|
| 25.87 |
|
| 8.60 |
|
| 1 |
|
| .79 |
|
| .78 |
|
| 3.18 |
|
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.79 |
|
| 1.18 |
|
| — | 8 |
| .90 | 6 |
| .86 | 6 |
| 4.48 | 6 |
Class R-1: |
| Six months ended 12/31/20124,5 |
|
| 31.66 |
|
| 15.12 |
|
| 4 |
|
| 1.16 | 6 |
| 1.16 | 6 |
| 1.60 | 6 |
|
| Year ended 6/30/2012 |
|
| 27.78 |
|
| (10.47 | ) |
| 4 |
|
| 1.39 |
|
| 1.39 |
|
| 2.40 |
|
|
| Year ended 6/30/2011 |
|
| 32.43 |
|
| 29.81 |
|
| 5 |
|
| 1.54 |
|
| 1.54 |
|
| 2.80 |
|
|
| Year ended 6/30/2010 |
|
| 25.82 |
|
| 7.58 |
|
| 3 |
|
| 1.71 |
|
| 1.70 |
|
| 2.06 |
|
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.76 |
|
| .52 |
|
| 2 |
|
| 1.82 | 6 |
| 1.77 | 6 |
| 2.68 | 6 |
Class R-2: |
| Six months ended 12/31/20124,5 |
|
| 31.58 |
|
| 14.74 |
|
| 36 |
|
| 1.74 | 6 |
| 1.74 | 6 |
| 1.00 | 6 |
|
| Year ended 6/30/2012 |
|
| 27.71 |
|
| (10.80 | ) |
| 29 |
|
| 1.78 |
|
| 1.76 |
|
| 2.12 |
|
|
| Year ended 6/30/2011 |
|
| 32.38 |
|
| 29.60 |
|
| 25 |
|
| 1.77 |
|
| 1.70 |
|
| 2.74 |
|
|
| Year ended 6/30/2010 |
|
| 25.79 |
|
| 7.57 |
|
| 13 |
|
| 1.81 |
|
| 1.73 |
|
| 2.15 |
|
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.74 |
|
| .48 |
|
| 3 |
|
| 1.88 | 6 |
| 1.78 | 6 |
| 3.22 | 6 |
Class R-3: |
| Six months ended 12/31/20124,5 |
|
| 31.67 |
|
| 15.04 |
|
| 27 |
|
| 1.27 | 6 |
| 1.27 | 6 |
| 1.46 | 6 |
|
| Year ended 6/30/2012 |
|
| 27.78 |
|
| (10.37 | ) |
| 22 |
|
| 1.29 |
|
| 1.29 |
|
| 2.53 |
|
|
| Year ended 6/30/2011 |
|
| 32.45 |
|
| 30.16 |
|
| 24 |
|
| 1.27 |
|
| 1.27 |
|
| 3.24 |
|
|
| Year ended 6/30/2010 |
|
| 25.84 |
|
| 8.02 |
|
| 10 |
|
| 1.30 |
|
| 1.29 |
|
| 2.65 |
|
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.78 |
|
| .85 |
|
| 3 |
|
| 1.38 | 6 |
| 1.33 | 6 |
| 3.64 | 6 |
Class R-4: |
| Six months ended 12/31/20124,5 |
|
| 31.69 |
|
| 15.22 |
|
| 20 |
|
| .93 | 6 |
| .93 | 6 |
| 1.79 | 6 |
|
| Year ended 6/30/2012 |
|
| 27.80 |
|
| (10.06 | ) |
| 15 |
|
| .94 |
|
| .94 |
|
| 2.98 |
|
|
| Year ended 6/30/2011 |
|
| 32.48 |
|
| 30.60 |
|
| 12 |
|
| .93 |
|
| .93 |
|
| 3.69 |
|
|
| Year ended 6/30/2010 |
|
| 25.86 |
|
| 8.38 |
|
| 5 |
|
| .98 |
|
| .96 |
|
| 2.93 |
|
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.79 |
|
| 1.09 |
|
| 2 |
|
| 1.07 | 6 |
| 1.02 | 6 |
| 3.63 | 6 |
Class R-5: |
| Six months ended 12/31/20124,5 |
|
| 31.82 |
|
| 15.37 |
|
| 38 |
|
| .66 | 6 |
| .66 | 6 |
| 2.10 | 6 |
|
| Year ended 6/30/2012 |
|
| 27.91 |
|
| (9.81 | ) |
| 33 |
|
| .66 |
|
| .66 |
|
| 3.19 |
|
|
| Year ended 6/30/2011 |
|
| 32.60 |
|
| 30.94 |
|
| 28 |
|
| .67 |
|
| .67 |
|
| 3.71 |
|
|
| Year ended 6/30/2010 |
|
| 25.95 |
|
| 8.69 |
|
| 14 |
|
| .72 |
|
| .70 |
|
| 2.96 |
|
|
| Period from 10/1/20087 to 6/30/20094 |
|
| 24.86 |
|
| 1.28 |
|
| 6 |
|
| .81 | 6 |
| .78 | 6 |
| 4.65 | 6 |
Class R-6: |
| Six months ended 12/31/20124,5 |
|
| 31.70 |
|
| 15.43 |
|
| 475 |
|
| .62 | 6 |
| .62 | 6 |
| 2.12 | 6 |
|
| Year ended 6/30/2012 |
|
| 27.80 |
|
| (9.78 | ) |
| 392 |
|
| .61 |
|
| .61 |
|
| 3.26 |
|
|
| Year ended 6/30/2011 |
|
| 32.48 |
|
| 30.99 |
|
| 341 |
|
| .62 |
|
| .62 |
|
| 3.77 |
|
|
| Year ended 6/30/2010 |
|
| 25.86 |
|
| 8.74 |
|
| 206 |
|
| .66 |
|
| .65 |
|
| 3.16 |
|
|
| Period from 5/1/2009 to 6/30/20094 |
|
| 24.78 |
|
| 9.38 |
|
| 64 |
|
| .12 |
|
| .12 |
|
| 1.01 |
|
|
|
1 Based on average shares outstanding. | |
2 Total returns exclude any applicable sales charges, including contingent deferred sales charges. | |
3 This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund’s transfer agent fees for certain retirement plan share classes. | |
4 Based on operations for the period shown and, accordingly, is not representative of a full year. | |
5 Unaudited. | |
6 Annualized. | |
7 Commencement of operations. | |
8 Amount less than $1 million. |
See Notes to Financial Statements
|
|
International Growth and Income Fund | 31 |
|
|
Expense example | unaudited |
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (July 1, 2012, through December 31, 2012).
|
|
32 | International Growth and Income Fund |
Note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning |
| Ending |
| Expenses |
| Annualized |
| ||||
Class A — actual return |
| $ | 1,000.00 |
| $ | 1,152.01 |
| $ | 5.10 |
|
| .94 | % |
Class A — assumed 5% return |
|
| 1,000.00 |
|
| 1,020.47 |
|
| 4.79 |
|
| .94 |
|
Class B — actual return |
|
| 1,000.00 |
|
| 1,147.72 |
|
| 9.20 |
|
| 1.70 |
|
Class B — assumed 5% return |
|
| 1,000.00 |
|
| 1,016.64 |
|
| 8.64 |
|
| 1.70 |
|
Class C — actual return |
|
| 1,000.00 |
|
| 1,147.33 |
|
| 9.47 |
|
| 1.75 |
|
Class C — assumed 5% return |
|
| 1,000.00 |
|
| 1,016.38 |
|
| 8.89 |
|
| 1.75 |
|
Class F-1 — actual return |
|
| 1,000.00 |
|
| 1,151.82 |
|
| 5.26 |
|
| .97 |
|
Class F-1 — assumed 5% return |
|
| 1,000.00 |
|
| 1,020.32 |
|
| 4.94 |
|
| .97 |
|
Class F-2 — actual return |
|
| 1,000.00 |
|
| 1,153.07 |
|
| 4.02 |
|
| .74 |
|
Class F-2 — assumed 5% return |
|
| 1,000.00 |
|
| 1,021.48 |
|
| 3.77 |
|
| .74 |
|
Class 529-A — actual return |
|
| 1,000.00 |
|
| 1,151.81 |
|
| 5.48 |
|
| 1.01 |
|
Class 529-A — assumed 5% return |
|
| 1,000.00 |
|
| 1,020.11 |
|
| 5.14 |
|
| 1.01 |
|
Class 529-B — actual return |
|
| 1,000.00 |
|
| 1,146.95 |
|
| 9.96 |
|
| 1.84 |
|
Class 529-B — assumed 5% return |
|
| 1,000.00 |
|
| 1,015.93 |
|
| 9.35 |
|
| 1.84 |
|
Class 529-C — actual return |
|
| 1,000.00 |
|
| 1,147.03 |
|
| 9.90 |
|
| 1.83 |
|
Class 529-C — assumed 5% return |
|
| 1,000.00 |
|
| 1,015.98 |
|
| 9.30 |
|
| 1.83 |
|
Class 529-E — actual return |
|
| 1,000.00 |
|
| 1,149.87 |
|
| 6.94 |
|
| 1.28 |
|
Class 529-E — assumed 5% return |
|
| 1,000.00 |
|
| 1,018.75 |
|
| 6.51 |
|
| 1.28 |
|
Class 529-F-1 — actual return |
|
| 1,000.00 |
|
| 1,153.07 |
|
| 4.45 |
|
| .82 |
|
Class 529-F-1 — assumed 5% return |
|
| 1,000.00 |
|
| 1,021.07 |
|
| 4.18 |
|
| .82 |
|
Class R-1 — actual return |
|
| 1,000.00 |
|
| 1,151.16 |
|
| 6.29 |
|
| 1.16 |
|
Class R-1 — assumed 5% return |
|
| 1,000.00 |
|
| 1,019.36 |
|
| 5.90 |
|
| 1.16 |
|
Class R-2 — actual return |
|
| 1,000.00 |
|
| 1,147.40 |
|
| 9.42 |
|
| 1.74 |
|
Class R-2 — assumed 5% return |
|
| 1,000.00 |
|
| 1,016.43 |
|
| 8.84 |
|
| 1.74 |
|
Class R-3 — actual return |
|
| 1,000.00 |
|
| 1,150.38 |
|
| 6.88 |
|
| 1.27 |
|
Class R-3 — assumed 5% return |
|
| 1,000.00 |
|
| 1,018.80 |
|
| 6.46 |
|
| 1.27 |
|
Class R-4 — actual return |
|
| 1,000.00 |
|
| 1,152.19 |
|
| 5.04 |
|
| .93 |
|
Class R-4 — assumed 5% return |
|
| 1,000.00 |
|
| 1,020.52 |
|
| 4.74 |
|
| .93 |
|
Class R-5 — actual return |
|
| 1,000.00 |
|
| 1,153.73 |
|
| 3.58 |
|
| .66 |
|
Class R-5 — assumed 5% return |
|
| 1,000.00 |
|
| 1,021.88 |
|
| 3.36 |
|
| .66 |
|
Class R-6 — actual return |
|
| 1,000.00 |
|
| 1,154.26 |
|
| 3.37 |
|
| .62 |
|
Class R-6 — assumed 5% return |
|
| 1,000.00 |
|
| 1,022.08 |
|
| 3.16 |
|
| .62 |
|
*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).
|
|
International Growth and Income Fund | 33 |
Approval of Investment Advisory and Service Agreement
The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through December 31, 2013. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.
In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement, and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor.
|
|
1. Nature, extent and quality of services |
|
|
2. Investment results |
|
|
34 | International Growth and Income Fund |
|
|
3. Advisory fees and total expenses |
|
|
4. Ancillary benefits |
|
|
5. Adviser financial information |
|
|
International Growth and Income Fund | 35 |
Office of the fund
One Market
Steuart Tower, Suite 2000
Mailing address: P.O. Box 7650
San Francisco, CA 94120-7650
Investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
6455 Irvine Center Drive
Irvine, CA 92618
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address near you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Counsel
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, CA 90071-3106
Independent registered public accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
|
|
36 | International Growth and Income Fund |
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 your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
A complete December 31, 2012, portfolio of International Growth and Income Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).
International Growth and Income Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.
This report is for the information of shareholders of International Growth and Income Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after March 31, 2013, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
|
|
The right choice for the long term® |
The American Funds difference
Since 1931, American Funds has helped investors pursue long-term investment success. Our consistent approach — in combination with a proven system — has resulted in a superior long-term track record.
|
|
|
Consistent approach | ||
We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. Our portfolio counselors average 25 years of investment experience, including 20 years at our company, reflecting a career commitment to our long-term approach.1 | ||
|
|
|
Proven system | ||
Our system combines individual accountability with teamwork. Each fund is divided into portions that are managed by investment professionals with varied backgrounds, ages and investment styles. An extensive global research effort is the backbone of our system. | ||
|
|
|
Superior long-term track record | ||
Our equity funds have beaten their Lipper peer indexes in 90% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 63% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3 | ||
|
|
|
| 1 | As of 12/31/12. |
| 2 | Based on Class A share results for periods through 12/31/12. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date. |
| 3 | Based on management fees for the 20-year period ended 12/31/12 versus comparable Lipper categories, excluding funds of funds. |
|
|
| American Funds span a range of investment objectives |
| |
n | Growth funds |
| AMCAP Fund® |
| EuroPacific Growth Fund® |
| The Growth Fund of America® |
| The New Economy Fund® |
| New Perspective Fund® |
| New World Fund® |
| SMALLCAP World Fund® |
| |
n | Growth-and-income funds |
| American Mutual Fund® |
| Capital World Growth and Income Fund® |
| Fundamental InvestorsSM |
| International Growth and Income FundSM |
| The Investment Company of America® |
| Washington Mutual Investors FundSM |
| |
n | Equity-income funds |
| Capital Income Builder® |
| The Income Fund of America® |
| |
n | Balanced funds |
| American Balanced Fund® |
| American Funds Global Balanced FundSM |
| |
n | Bond funds |
| American Funds Mortgage Fund® |
| American High-Income Trust® |
| The Bond Fund of America® |
| Capital World Bond Fund® |
| Intermediate Bond Fund of America® |
| Short-Term Bond Fund of America® |
| U.S. Government Securities Fund® |
| |
n | Tax-exempt bond funds |
| American Funds Short-Term Tax-Exempt Bond Fund® |
| American High-Income Municipal Bond Fund® |
| Limited Term Tax-Exempt Bond Fund of America® |
| The Tax-Exempt Bond Fund of America® |
| State-specific tax-exempt funds |
| American Funds Tax-Exempt Fund of New York® |
| The Tax-Exempt Fund of California® |
| The Tax-Exempt Fund of Maryland® |
| The Tax-Exempt Fund of Virginia® |
| |
n | Money market fund |
| American Funds Money Market Fund® |
| |
n | American Funds Portfolio SeriesSM |
| American Funds Global Growth PortfolioSM |
| American Funds Growth PortfolioSM |
| American Funds Growth and Income PortfolioSM |
| American Funds Balanced PortfolioSM |
| American Funds Income PortfolioSM |
| American Funds Tax-Advantaged Income PortfolioSM |
| American Funds Preservation PortfolioSM |
| American Funds Tax-Exempt Preservation PortfolioSM |
| |
n | American Funds Target Date Retirement Series® |
| |
n | American Funds College Target Date SeriesSM |
|
|
|
|
|
The Capital Group Companies | ||||
American Funds | Capital Research and Management | Capital International | Capital Guardian | Capital Bank and Trust |
ITEM 2 – Code of Ethics
Not applicable for filing of semi-annual reports to shareholders.
ITEM 3 – Audit Committee Financial Expert
Not applicable for filing of semi-annual reports to shareholders.
ITEM 4 – Principal Accountant Fees and Services
Not applicable for filing of semi-annual reports to shareholders.
ITEM 5 – Audit Committee of Listed Registrants
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6 – Schedule of Investments
International Growth and Income Fund®
Investment portfolio
December 31, 2012 unaudited
Common stocks — 92.14% | Shares | Value (000) |
FINANCIALS — 20.11% | ||
AXA SA1 | 6,451,800 | $ 116,700 |
Prudential PLC1 | 7,208,148 | 100,577 |
HSBC Holdings PLC (United Kingdom)1 | 3,608,896 | 38,171 |
HSBC Holdings PLC (Hong Kong)1 | 2,098,196 | 22,274 |
BNP Paribas SA1 | 1,037,530 | 58,483 |
Toronto-Dominion Bank | 675,600 | 56,883 |
Agricultural Bank of China, Class H1 | 109,367,000 | 54,997 |
Grupo Financiero Santander México, SAB de CV, Class B (ADR)2 | 3,360,000 | 54,365 |
Link Real Estate Investment Trust1 | 8,740,000 | 43,712 |
Sumitomo Mitsui Financial Group, Inc.1 | 1,165,000 | 42,323 |
Sampo Oyj, Class A1 | 1,235,000 | 39,935 |
SEGRO PLC1 | 9,585,000 | 39,302 |
Mizuho Financial Group, Inc.1 | 21,220,000 | 38,825 |
Allianz SE1 | 257,150 | 35,625 |
Industrial and Commercial Bank of China Ltd., Class H1 | 46,744,500 | 33,711 |
ICICI Bank Ltd.1 | 1,385,000 | 29,173 |
Westfield Group1 | 2,565,000 | 28,303 |
Haitong Securities Co., Ltd., Class H1,2 | 15,000,000 | 26,067 |
Fairfax Financial Holdings Ltd. | 70,000 | 25,270 |
Bank of Nova Scotia | 429,000 | 24,782 |
Sun Hung Kai Properties Ltd.1 | 1,532,131 | 23,125 |
Suncorp Group Ltd.1 | 2,130,000 | 22,646 |
Sanlam Ltd.1 | 4,210,000 | 22,522 |
FirstRand Ltd.1 | 5,815,000 | 21,502 |
Bank of the Philippine Islands1 | 8,000,000 | 18,551 |
Itaú Unibanco Holding SA, preferred nominative | 1,096,400 | 17,880 |
ING Groep NV, depository receipts1,2 | 1,730,000 | 16,543 |
United Overseas Bank Ltd.1 | 948,550 | 15,536 |
Credit Suisse Group AG1 | 580,000 | 14,553 |
China Life Insurance Co. Ltd., Class H1 | 3,800,000 | 12,533 |
AIA Group Ltd.1 | 2,837,600 | 11,309 |
Banco Bilbao Vizcaya Argentaria, SA1 | 883,076 | 8,107 |
1,114,285 | ||
CONSUMER DISCRETIONARY — 11.32% | ||
Virgin Media Inc. | 1,815,000 | 66,701 |
Bayerische Motoren Werke AG1 | 583,000 | 56,226 |
Toyota Motor Corp.1 | 1,090,000 | 50,877 |
Wolters Kluwer NV1 | 2,455,135 | 50,767 |
ProSiebenSAT.1 Media AG, nonvoting preferred1 | 1,675,000 | 47,133 |
SJM Holdings Ltd.1 | 19,700,000 | 46,359 |
Honda Motor Co., Ltd.1 | 885,000 | 32,620 |
SES SA, Class A (FDR)1 | 1,075,000 | 31,098 |
Naspers Ltd., Class N1 | 455,000 | 29,235 |
Intercontinental Hotels Group PLC1 | 1,025,733 | 28,845 |
H & M Hennes & Mauritz AB, Class B1 | 735,000 | 25,541 |
Wynn Macau, Ltd.1,2 | 8,558,000 | 23,585 |
OPAP SA1 | 3,024,200 | 21,663 |
Volkswagen AG, nonvoting preferred1 | 87,000 | 19,793 |
HUGO BOSS AG1 | 170,300 | 18,058 |
Industria de Diseño Textil, SA1 | 127,000 | 17,792 |
Daimler AG1 | 266,000 | 14,536 |
MGM China Holdings Ltd.1 | 7,723,200 | 14,194 |
Cie. Financière Richemont SA, Class A, non-registered shares1 | 147,000 | 11,755 |
Christian Dior SA1 | 61,000 | 10,546 |
Mediaset SpA1 | 4,580,000 | 9,535 |
Tata Motors Ltd., Class A (DVR)1 | 146,245 | 471 |
627,330 | ||
INDUSTRIALS — 10.87% | ||
Schneider Electric SA1 | 1,103,032 | 82,268 |
Siemens AG1 | 698,500 | 75,920 |
SGS SA1 | 23,000 | 51,093 |
Wolseley PLC1 | 1,073,409 | 51,020 |
Andritz AG1 | 726,000 | 46,644 |
Marubeni Corp.1 | 6,210,000 | 44,501 |
Qantas Airways Ltd.1,2 | 27,030,000 | 42,500 |
Vallourec SA1 | 700,000 | 36,530 |
Singapore Technologies Engineering Ltd1 | 11,350,000 | 35,827 |
Meggitt PLC1 | 4,956,000 | 30,895 |
Kubota Corp.1 | 2,680,000 | 30,781 |
ASSA ABLOY AB, Class B1 | 783,500 | 29,503 |
Geberit AG1 | 118,000 | 26,123 |
Ryanair Holdings PLC (ADR) | 360,000 | 12,341 |
Mitsubishi Corp.1 | 333,100 | 6,403 |
602,349 | ||
ENERGY — 8.63% | ||
Royal Dutch Shell PLC, Class B1 | 4,378,000 | 154,948 |
TOTAL SA1 | 2,632,600 | 136,257 |
Enbridge Inc. | 1,456,670 | 63,000 |
Crescent Point Energy Corp. | 1,291,300 | 48,837 |
Coal India Ltd.1 | 4,700,000 | 30,426 |
Paramount Resources Ltd.2 | 700,000 | 22,519 |
Keyera Corp. | 310,000 | 15,343 |
YPF Sociedad Anónima, Class D (ADR) | 470,000 | 6,838 |
478,168 | ||
CONSUMER STAPLES — 8.36% | ||
British American Tobacco PLC1 | 1,727,000 | 87,507 |
Unilever NV, depository receipts1 | 2,048,500 | 77,298 |
Shoprite Holdings Ltd.1 | 2,614,000 | 63,532 |
Nestlé SA1 | 775,000 | 50,510 |
Casino, Guichard-Perrachon SA1 | 341,000 | 32,802 |
Anheuser-Busch InBev NV1 | 338,000 | 29,537 |
Coca-Cola Amatil Ltd.1 | 1,703,988 | 23,957 |
Coca-Cola Hellenic Bottling Co. SA1 | 934,000 | 22,096 |
Imperial Tobacco Group PLC1 | 537,000 | 20,736 |
Wesfarmers Ltd.1 | 500,000 | 19,294 |
Kimberly-Clark de México, SAB de CV, Class A | 6,507,900 | 16,594 |
ITC Ltd.1 | 2,475,000 | 12,975 |
AMOREPACIFIC Corp.1 | 5,800 | 6,594 |
463,432 | ||
UTILITIES — 7.70% | ||
National Grid PLC1 | 10,988,270 | 125,865 |
Power Assets Holdings Ltd.1 | 12,028,000 | 103,081 |
GDF SUEZ1 | 4,559,249 | 93,938 |
Snam SpA1 | 13,375,000 | 62,195 |
Glow Energy PCL1 | 9,200,000 | 23,368 |
CLP Holdings Ltd.1 | 1,550,000 | 13,016 |
E.ON SE1 | 275,000 | 5,121 |
426,584 | ||
HEALTH CARE — 6.92% | ||
Novartis AG1 | 1,808,200 | 114,480 |
Sanofi1 | 650,683 | 61,708 |
AstraZeneca PLC (United Kingdom)1 | 810,000 | 38,293 |
CSL Ltd.1 | 610,000 | 34,460 |
Sonic Healthcare Ltd.1 | 2,303,603 | 32,167 |
GlaxoSmithKline PLC1 | 1,350,000 | 29,311 |
Roche Holding AG1 | 119,300 | 24,304 |
Novo Nordisk A/S, Class B1 | 130,000 | 21,232 |
Smith & Nephew PLC1 | 1,520,000 | 16,821 |
Bayer AG1 | 115,000 | 10,921 |
383,697 | ||
MATERIALS — 6.40% | ||
Fletcher Building Ltd.1 | 9,597,000 | 67,154 |
L’Air Liquide SA, bonus shares1 | 495,511 | 62,096 |
Amcor Ltd.1 | 5,125,000 | 43,336 |
Impala Platinum Holdings Ltd.1 | 1,846,352 | 37,281 |
Syngenta AG1 | 80,800 | 32,593 |
BASF SE1 | 340,000 | 31,957 |
Orica Ltd.1 | 880,000 | 23,141 |
PT Semen Gresik (Persero) Tbk1 | 12,680,000 | 20,888 |
Linde AG1 | 107,046 | 18,668 |
Givaudan SA1 | 16,300 | 17,281 |
354,395 | ||
INFORMATION TECHNOLOGY — 5.99% | ||
Taiwan Semiconductor Manufacturing Co. Ltd.1 | 40,641,506 | 136,024 |
Quanta Computer Inc.1 | 24,263,835 | 57,361 |
Nintendo Co., Ltd.1 | 373,400 | 39,842 |
Samsung Electronics Co. Ltd.1 | 24,000 | 34,349 |
ASM Pacific Technology Ltd.1 | 2,386,000 | 29,288 |
Canon, Inc.1 | 569,000 | 22,317 |
ASML Holding NV1 | 200,000 | 12,948 |
332,129 | ||
TELECOMMUNICATION SERVICES — 5.32% | ||
MTN Group Ltd.1 | 2,533,000 | 53,240 |
Taiwan Mobile Co., Ltd.1 | 13,277,000 | 49,056 |
SOFTBANK CORP.1 | 656,400 | 24,019 |
Vodafone Group PLC1 | 8,762,052 | 22,035 |
Advanced Info Service PCL1 | 3,170,500 | 21,809 |
Hellenic Telecommunications Organization SA1,2 | 2,970,200 | 20,175 |
BT Group PLC1 | 4,594,000 | 17,317 |
France Télécom SA1 | 1,525,800 | 17,087 |
Swisscom AG1 | 37,000 | 15,958 |
Total Access Communication PCL1 | 5,233,800 | 15,163 |
HKT Trust, units1 | 11,845,000 | 11,623 |
Portugal Telecom, SGPS, SA1 | 2,304,700 | 11,529 |
Koninklijke KPN NV1 | 1,978,528 | 9,784 |
América Móvil, SAB de CV, Series L (ADR) | 264,000 | 6,109 |
294,904 | ||
MISCELLANEOUS — 0.52% | ||
Other common stocks in initial period of acquisition | 28,879 | |
Total common stocks (cost: $4,195,178,000) | 5,106,152 | |
Preferred stocks — 0.24% | ||
FINANCIALS — 0.24% | ||
HSBC Holdings PLC, Series 2, 8.00% | 472,795 | 13,074 |
Total preferred stocks (cost: $12,000,000) | 13,074 | |
Principal amount | ||
Convertible securities — 0.54% | (000) | |
CONSUMER STAPLES — 0.54% | ||
Shoprite Holdings Ltd. 6.50% convertible notes 2017 | ZAR196,952 | 30,216 |
Total convertible securities (cost: $26,974,000) | 30,216 | |
Bonds & notes — 2.00% | ||
TELECOMMUNICATION SERVICES — 1.02% | ||
Hellenic Telecommunications Organization SA 4.625% 2016 | €46,200 | 54,176 |
Digicel Group Ltd. 12.00% 20143 | $2,000 | 2,175 |
56,351 | ||
FINANCIALS — 0.66% | ||
Oversea-Chinese Banking Corp., junior subordinated 4.00% (undated) | S$19,000 | 15,705 |
Société Générale, junior subordinated 6.999% (undated)4 | €6,200 | 8,183 |
SMFG Preferred Capital USD 3 Ltd., junior subordinated 9.50% (undated)3,4 | $ 5,410 | 6,911 |
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 5.125% 20143 | 430 | 461 |
Westfield Group 5.70% 20163 | 4,540 | 5,188 |
36,448 | ||
CONSUMER STAPLES — 0.28% | ||
British American Tobacco International Finance PLC 8.125% 20133 | 12,159 | 12,900 |
British American Tobacco International Finance PLC 9.50% 20183 | 2,000 | 2,784 |
15,684 | ||
CONSUMER DISCRETIONARY — 0.04% | ||
DaimlerChrysler North America Holding Corp. 6.50% 2013 | 1,990 | 2,089 |
Total bonds & notes (cost: $89,514,000) | 110,572 | |
Principal amount | Value | |
Short-term securities — 4.89% | (000) | (000) |
International Bank for Reconstruction and Development 0.08%–0.15% due 1/9–2/5/2013 | $44,200 | $ 44,196 |
Federal Home Loan Bank 0.125%–0.155% due 3/1–6/7/2013 | 42,600 | 42,589 |
National Australia Funding (Delaware) Inc. 0.185% due 2/8/20133 | 30,000 | 29,994 |
Toronto-Dominion Holdings USA Inc. 0.20% due 2/19/20133 | 30,000 | 29,991 |
Toyota Credit Canada Inc. 0.14% due 2/4–2/6/2013 | 27,900 | 27,896 |
Sumitomo Mitsui Banking Corp. 0.19% due 2/26/20133 | 20,500 | 20,494 |
Freddie Mac 0.10%–0.14% due 1/29–4/9/2013 | 20,200 | 20,197 |
Gotham Funding Corp. 0.18% due 1/17/20133 | 18,300 | 18,299 |
Fannie Mae 0.18% due 7/1/2013 | 16,400 | 16,390 |
Bank of Nova Scotia 0.02% due 1/2/2013 | 13,200 | 13,200 |
Federal Farm Credit Banks 0.17% due 6/25/2013 | 7,800 | 7,796 |
Total short-term securities (cost: $271,026,000) | 271,042 | |
Total investment securities (cost: $4,594,692,000) | 5,531,056 | |
Other assets less liabilities | 10,736 | |
Net assets | $5,541,792 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,” was $4,668,690,000, which represented 84.25% of the net assets of the fund. This amount includes $4,606,594,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $129,197,000, which represented 2.33% of the net assets of the fund. |
4 | Coupon rate may change periodically. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
DVR = Differential Voting Rights
FDR = Fiduciary Depositary Receipts
€ = Euros
S$ = Singapore dollars
ZAR = South African rand
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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 your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.
MFGEFPX-034-0213O-S32795
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 10 – Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
ITEM 11 – Controls and Procedures
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
(b) | There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12 – Exhibits
(a)(1) | Not applicable for filing of semi-annual reports to shareholders. |
(a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
INTERNATIONAL GROWTH AND INCOME FUND | |
By /s/ Paul F. Roye | |
Paul F. Roye, Executive Vice President and Principal Executive Officer | |
Date: February 28, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By /s/ Paul F. Roye |
Paul F. Roye, Executive Vice President and Principal Executive Officer |
Date: February 28, 2013 |
By /s/ Jeffrey P. Regal |
Jeffrey P. Regal, Treasurer and Principal Financial Officer |
Date: February 28, 2013 |