Fundamental Investors®
Investment portfolio
September 30, 2023
Investment portfolio
September 30, 2023
unaudited
Common stocks 97.14% Information technology 22.14% | Shares | Value (000) | |
Broadcom, Inc. | 7,277,224 | $6,044,317 | |
Microsoft Corp. | 19,120,073 | 6,037,163 | |
Applied Materials, Inc. | 14,077,847 | 1,949,078 | |
Apple, Inc. | 7,024,465 | 1,202,659 | |
Salesforce, Inc.1 | 5,900,426 | 1,196,488 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 6,175,535 | 536,654 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | 33,039,000 | 536,160 | |
Micron Technology, Inc. | 14,520,835 | 987,852 | |
Arista Networks, Inc.1 | 4,733,384 | 870,611 | |
TE Connectivity, Ltd. | 6,383,706 | 788,579 | |
ASML Holding NV | 1,144,822 | 672,284 | |
ASML Holding NV (ADR) | 34,262 | 20,169 | |
Motorola Solutions, Inc. | 2,099,026 | 571,439 | |
SK hynix, Inc. | 6,537,375 | 555,268 | |
NVIDIA Corp. | 1,149,108 | 499,851 | |
KLA Corp. | 881,001 | 404,080 | |
STMicroelectronics NV | 5,799,314 | 249,860 | |
ServiceNow, Inc.1 | 401,806 | 224,593 | |
Wolfspeed, Inc.1 | 5,854,097 | 223,041 | |
Shopify, Inc., Class A, subordinate voting shares1 | 3,716,243 | 202,795 | |
SAP SE | 1,412,393 | 183,337 | |
Advanced Micro Devices, Inc.1 | 1,671,689 | 171,883 | |
MicroStrategy, Inc., Class A1,2 | 509,755 | 167,342 | |
NetApp, Inc. | 1,656,831 | 125,720 | |
QUALCOMM, Inc. | 896,648 | 99,582 | |
CDW Corp. | 449,723 | 90,736 | |
Keyence Corp. | 194,300 | 72,216 | |
Intel Corp. | 1,793,127 | 63,746 | |
DocuSign, Inc.1 | 1,365,325 | 57,344 | |
Samsung Electronics Co., Ltd. | 332,847 | 16,864 | |
Crane NXT, Co. | 165,157 | 9,178 | |
24,830,889 | |||
Health care 13.38% | |||
UnitedHealth Group, Inc. | 4,049,548 | 2,041,742 | |
Novo Nordisk AS, Class B | 17,716,726 | 1,611,617 | |
Eli Lilly and Co. | 2,865,866 | 1,539,343 | |
Centene Corp.1 | 18,353,655 | 1,264,200 | |
Thermo Fisher Scientific, Inc. | 2,089,983 | 1,057,887 | |
AstraZeneca PLC | 7,031,716 | 946,306 | |
AstraZeneca PLC (ADR) | 154,697 | 10,476 | |
Molina Healthcare, Inc.1 | 1,921,470 | 630,031 | |
Pfizer, Inc. | 15,637,505 | 518,696 | |
Abbott Laboratories | 4,857,216 | 470,421 | |
Regeneron Pharmaceuticals, Inc.1 | 554,170 | 456,060 | |
Alnylam Pharmaceuticals, Inc.1 | 2,568,720 | 454,920 |
Fundamental Investors — Page 1 of 10
unaudited
Common stocks (continued) Health care (continued) | Shares | Value (000) | |
Gilead Sciences, Inc. | 5,705,683 | $427,584 | |
Vertex Pharmaceuticals, Inc.1 | 1,153,789 | 401,219 | |
Bristol-Myers Squibb Co. | 5,213,736 | 302,605 | |
Danaher Corp. | 1,165,144 | 289,072 | |
Edwards Lifesciences Corp.1 | 3,427,114 | 237,430 | |
CVS Health Corp. | 3,393,251 | 236,917 | |
agilon health, Inc.1,2 | 13,019,980 | 231,235 | |
Cigna Group (The) | 799,508 | 228,715 | |
Humana, Inc. | 469,211 | 228,280 | |
Johnson & Johnson | 1,429,333 | 222,619 | |
Cooper Companies, Inc. | 655,596 | 208,486 | |
Zoetis, Inc., Class A | 1,113,864 | 193,790 | |
Exact Sciences Corp.1 | 2,498,461 | 170,445 | |
Elevance Health, Inc. | 311,371 | 135,577 | |
Mettler-Toledo International, Inc.1 | 116,932 | 129,569 | |
Rede D’Or Sao Luiz SA | 23,367,000 | 118,124 | |
AbbVie, Inc. | 666,385 | 99,331 | |
Teva Pharmaceutical Industries, Ltd. (ADR)1 | 6,727,432 | 68,620 | |
Sarepta Therapeutics, Inc.1 | 357,935 | 43,389 | |
Karuna Therapeutics, Inc.1 | 178,689 | 30,214 | |
15,004,920 | |||
Industrials 11.82% | |||
TransDigm Group, Inc.1 | 2,321,819 | 1,957,595 | |
Carrier Global Corp. | 25,649,570 | 1,415,856 | |
Caterpillar, Inc. | 3,028,905 | 826,891 | |
Boeing Co.1 | 3,885,429 | 744,759 | |
CSX Corp. | 22,271,949 | 684,863 | |
Regal Rexnord Corp.3 | 3,968,556 | 567,027 | |
United Rentals, Inc. | 1,264,291 | 562,066 | |
ITT, Inc.3 | 5,560,575 | 544,436 | |
RTX Corp. | 7,166,213 | 515,752 | |
Airbus SE, non-registered shares | 3,382,959 | 452,581 | |
Quanta Services, Inc. | 2,330,500 | 435,967 | |
Ceridian HCM Holding, Inc.1 | 6,024,101 | 408,735 | |
General Electric Co. | 3,367,254 | 372,250 | |
Northrop Grumman Corp. | 765,929 | 337,154 | |
TFI International, Inc. (CAD denominated) | 2,544,976 | 326,851 | |
Equifax, Inc. | 1,681,536 | 308,024 | |
Schneider Electric SE | 1,675,154 | 276,171 | |
Waste Connections, Inc. | 1,833,104 | 246,186 | |
Rockwell Automation | 792,893 | 226,664 | |
Deere & Co. | 499,692 | 188,574 | |
United Airlines Holdings, Inc.1 | 4,281,286 | 181,098 | |
Huntington Ingalls Industries, Inc. | 668,688 | 136,800 | |
FedEx Corp. | 485,163 | 128,529 | |
Union Pacific Corp. | 593,400 | 120,834 | |
ABB, Ltd. | 3,242,466 | 115,874 | |
Safran SA | 714,208 | 111,669 | |
Sandvik AB | 5,996,307 | 109,937 | |
Dun & Bradstreet Holdings, Inc. | 9,611,930 | 96,023 | |
LIXIL Corp.2 | 8,162,300 | 95,014 | |
Lockheed Martin Corp. | 224,861 | 91,959 | |
AMETEK, Inc. | 601,582 | 88,890 | |
Paychex, Inc. | 747,662 | 86,228 |
Fundamental Investors — Page 2 of 10
unaudited
Common stocks (continued) Industrials (continued) | Shares | Value (000) | |
United Parcel Service, Inc., Class B | 530,271 | $82,653 | |
Lifco AB, Class B | 4,555,842 | 79,695 | |
DSV A/S | 399,754 | 74,527 | |
Honeywell International, Inc. | 394,746 | 72,925 | |
IMCD NV | 399,754 | 50,530 | |
Lincoln Electric Holdings, Inc. | 261,568 | 47,551 | |
Ingersoll-Rand, Inc. | 594,215 | 37,863 | |
SS&C Technologies Holdings, Inc. | 502,690 | 26,411 | |
Concentrix Corp. | 136,610 | 10,944 | |
Crane Co. | 97,442 | 8,657 | |
13,253,013 | |||
Financials 11.04% | |||
Visa, Inc., Class A | 5,766,158 | 1,326,274 | |
Apollo Asset Management, Inc. | 10,744,978 | 964,469 | |
Mastercard, Inc., Class A | 2,248,996 | 890,400 | |
JPMorgan Chase & Co. | 5,880,326 | 852,765 | |
Aon PLC, Class A | 2,232,419 | 723,795 | |
Blackstone, Inc. | 6,186,203 | 662,790 | |
Fiserv, Inc.1 | 4,635,145 | 523,586 | |
KKR & Co., Inc. | 7,625,528 | 469,732 | |
Marsh & McLennan Companies, Inc. | 2,463,258 | 468,758 | |
HDFC Bank, Ltd. | 23,807,000 | 435,969 | |
Discover Financial Services | 3,897,599 | 337,649 | |
S&P Global, Inc. | 882,225 | 322,374 | |
Wells Fargo & Co. | 7,719,422 | 315,416 | |
Goldman Sachs Group, Inc. | 929,941 | 300,901 | |
Blue Owl Capital, Inc., Class A | 22,020,438 | 285,385 | |
OneMain Holdings, Inc.3 | 6,912,984 | 277,142 | |
Arthur J. Gallagher & Co. | 1,190,748 | 271,407 | |
Arch Capital Group, Ltd.1 | 2,998,153 | 238,983 | |
Chubb, Ltd. | 1,083,956 | 225,658 | |
Progressive Corp. | 1,579,580 | 220,035 | |
Synchrony Financial | 6,675,735 | 204,077 | |
Ares Management Corp., Class A | 1,714,097 | 176,329 | |
Citizens Financial Group, Inc. | 6,501,656 | 174,244 | |
Intercontinental Exchange, Inc. | 1,488,827 | 163,801 | |
Fidelity National Information Services, Inc. | 2,786,415 | 154,005 | |
CME Group, Inc., Class A | 742,543 | 148,672 | |
RenaissanceRe Holdings, Ltd. | 743,742 | 147,201 | |
BlackRock, Inc. | 212,319 | 137,262 | |
Edenred SA | 2,189,615 | 136,808 | |
Kotak Mahindra Bank, Ltd. | 6,087,000 | 127,248 | |
Capital One Financial Corp. | 1,209,440 | 117,376 | |
London Stock Exchange Group PLC | 1,110,092 | 111,439 | |
Brookfield Corp., Class A | 3,403,123 | 106,416 | |
China Merchants Bank Co., Ltd., Class H | 21,122,000 | 87,635 | |
Block, Inc., Class A1 | 1,853,858 | 82,052 | |
Brown & Brown, Inc. | 931,248 | 65,038 | |
Moody’s Corp. | 197,486 | 62,439 | |
Charles Schwab Corp. (The) | 899,136 | 49,363 | |
Checkout Payments Group, Ltd., Class B1,4,5 | 159,760 | 11,525 |
Fundamental Investors — Page 3 of 10
unaudited
Common stocks (continued) Financials (continued) | Shares | Value (000) | |
Morgan Stanley | 98,439 | $8,039 | |
Brookfield Asset Management, Ltd., Class A | 127,200 | 4,241 | |
12,388,698 | |||
Consumer discretionary 9.35% | |||
Amazon.com, Inc.1 | 10,826,914 | 1,376,317 | |
Booking Holdings, Inc.1 | 315,706 | 973,622 | |
Restaurant Brands International, Inc. | 13,027,650 | 867,902 | |
Home Depot, Inc. | 2,634,157 | 795,937 | |
Coupang, Inc., Class A1 | 37,250,451 | 633,258 | |
Evolution AB | 5,871,583 | 591,667 | |
YUM! Brands, Inc. | 3,710,046 | 463,533 | |
D.R. Horton, Inc. | 4,093,000 | 439,875 | |
MercadoLibre, Inc.1 | 255,604 | 324,075 | |
Five Below, Inc.1 | 1,886,092 | 303,472 | |
adidas AG | 1,540,234 | 271,180 | |
Industria de Diseño Textil, SA | 7,073,268 | 263,262 | |
LVMH Moët Hennessy-Louis Vuitton SE | 319,703 | 241,193 | |
Flutter Entertainment PLC1 | 1,441,125 | 235,225 | |
Chipotle Mexican Grill, Inc.1 | 123,524 | 226,275 | |
B&M European Value Retail SA | 29,728,147 | 212,374 | |
NIKE, Inc., Class B | 2,217,600 | 212,047 | |
Galaxy Entertainment Group, Ltd. | 34,433,000 | 205,965 | |
Tractor Supply Co. | 961,918 | 195,317 | |
Hilton Worldwide Holdings, Inc. | 1,246,890 | 187,258 | |
Kering SA | 394,368 | 179,304 | |
Darden Restaurants, Inc. | 1,048,439 | 150,157 | |
Toll Brothers, Inc. | 2,023,855 | 149,684 | |
Amadeus IT Group SA, Class A, non-registered shares | 2,357,558 | 142,075 | |
Norwegian Cruise Line Holdings, Ltd.1,2 | 6,895,753 | 113,642 | |
Trainline PLC1,3 | 31,224,767 | 105,763 | |
Lennar Corp., Class A | 890,243 | 99,912 | |
Caesars Entertainment, Inc.1 | 2,083,016 | 96,548 | |
Airbnb, Inc., Class A1 | 700,000 | 96,047 | |
Burlington Stores, Inc.1 | 593,591 | 80,313 | |
Royal Caribbean Cruises, Ltd.1 | 783,882 | 72,227 | |
Floor & Decor Holdings, Inc., Class A1 | 796,364 | 72,071 | |
Domino’s Pizza, Inc. | 139,914 | 52,998 | |
General Motors Co. | 933,923 | 30,791 | |
Mattel, Inc.1 | 641,609 | 14,135 | |
Churchill Downs, Inc. | 76,947 | 8,929 | |
Lear Corp. | 58,155 | 7,804 | |
10,492,154 | |||
Consumer staples 8.94% | |||
Philip Morris International, Inc. | 30,642,537 | 2,836,886 | |
British American Tobacco PLC | 31,858,676 | 1,000,109 | |
British American Tobacco PLC (ADR) | 523,496 | 16,443 | |
Dollar Tree Stores, Inc.1 | 8,320,861 | 885,756 | |
Altria Group, Inc. | 14,911,882 | 627,045 | |
Keurig Dr Pepper, Inc. | 19,253,641 | 607,837 | |
Dollar General Corp. | 5,609,831 | 593,520 | |
Performance Food Group Co.1,3 | 10,058,726 | 592,057 | |
Nestlé SA | 5,223,296 | 589,822 | |
Bunge, Ltd. | 4,147,399 | 448,956 |
Fundamental Investors — Page 4 of 10
unaudited
Common stocks (continued) Consumer staples (continued) | Shares | Value (000) | |
Mondelez International, Inc. | 4,996,922 | $346,786 | |
Constellation Brands, Inc., Class A | 1,278,863 | 321,417 | |
Monster Beverage Corp.1 | 5,436,505 | 287,863 | |
Church & Dwight Co., Inc. | 1,858,633 | 170,307 | |
Procter & Gamble Co. | 1,088,259 | 158,733 | |
Anheuser-Busch InBev SA/NV | 2,377,500 | 130,924 | |
Target Corp. | 1,117,311 | 123,541 | |
Imperial Brands PLC | 5,480,713 | 111,296 | |
Kraft Heinz Co. | 1,809,063 | 60,857 | |
Reckitt Benckiser Group PLC (ADR) | 4,311,841 | 60,323 | |
General Mills, Inc. | 922,741 | 59,046 | |
10,029,524 | |||
Communication services 7.88% | |||
Alphabet, Inc., Class C1 | 24,207,747 | 3,191,791 | |
Alphabet, Inc., Class A1 | 4,203,132 | 550,022 | |
Meta Platforms, Inc., Class A1 | 8,774,108 | 2,634,075 | |
Netflix, Inc.1 | 2,127,369 | 803,295 | |
Comcast Corp., Class A | 15,779,142 | 699,647 | |
Publicis Groupe SA | 5,824,202 | 439,824 | |
Charter Communications, Inc., Class A1 | 544,810 | 239,618 | |
Take-Two Interactive Software, Inc.1 | 1,258,165 | 176,634 | |
Warner Music Group Corp., Class A | 2,946,039 | 92,506 | |
Vodafone Group PLC (ADR) | 892,350 | 8,459 | |
8,835,871 | |||
Materials 4.57% | |||
Linde PLC | 1,805,242 | 672,182 | |
Mosaic Co.3 | 17,353,793 | 617,795 | |
Grupo México, SAB de CV, Series B | 106,300,000 | 503,152 | |
Wheaton Precious Metals Corp. | 11,490,922 | 465,957 | |
Corteva, Inc. | 8,599,968 | 439,974 | |
First Quantum Minerals, Ltd. | 18,018,901 | 425,714 | |
Vale SA, ordinary nominative shares | 23,717,000 | 318,866 | |
Vale SA (ADR), ordinary nominative shares | 4,156,279 | 55,694 | |
Celanese Corp. | 1,893,513 | 237,674 | |
Rio Tinto PLC | 3,555,054 | 223,318 | |
Freeport-McMoRan, Inc. | 5,496,614 | 204,969 | |
Glencore PLC | 34,163,957 | 195,377 | |
Royal Gold, Inc. | 1,806,500 | 192,085 | |
Olin Corp. | 3,368,937 | 168,380 | |
Crown Holdings, Inc. | 1,459,000 | 129,092 | |
Lundin Mining Corp. | 11,743,092 | 87,582 | |
Westlake Corp. | 630,858 | 78,649 | |
Barrick Gold Corp. | 4,597,168 | 66,889 | |
Sherwin-Williams Co. | 149,488 | 38,127 | |
5,121,476 | |||
Energy 4.52% | |||
Canadian Natural Resources, Ltd. (CAD denominated) | 21,977,414 | 1,421,311 | |
Exxon Mobil Corp. | 4,754,725 | 559,061 | |
ConocoPhillips | 4,498,796 | 538,956 | |
Schlumberger NV | 6,690,179 | 390,037 | |
Cenovus Energy, Inc. (CAD denominated) | 17,155,433 | 357,192 | |
Baker Hughes Co., Class A | 9,993,844 | 352,983 |
Fundamental Investors — Page 5 of 10
unaudited
Common stocks (continued) Energy (continued) | Shares | Value (000) | |
HF Sinclair Corp. | 6,178,500 | $351,742 | |
EOG Resources, Inc. | 2,373,460 | 300,860 | |
Halliburton Co. | 5,312,728 | 215,165 | |
EQT Corp. | 4,743,500 | 192,491 | |
TC Energy Corp. (CAD denominated)2 | 5,121,034 | 176,112 | |
Equitrans Midstream Corp. | 12,197,775 | 114,293 | |
Chevron Corp. | 437,035 | 73,693 | |
TotalEnergies SE | 400,112 | 26,330 | |
5,070,226 | |||
Utilities 2.30% | |||
Constellation Energy Corp. | 6,766,576 | 738,098 | |
FirstEnergy Corp. | 16,158,175 | 552,286 | |
PG&E Corp.1 | 24,135,105 | 389,299 | |
AES Corp. | 21,763,624 | 330,807 | |
CMS Energy Corp. | 3,406,583 | 180,924 | |
CenterPoint Energy, Inc. | 5,874,423 | 157,728 | |
Edison International | 2,096,913 | 132,714 | |
Brookfield Infrastructure Partners, LP | 3,247,999 | 95,318 | |
2,577,174 | |||
Real estate 1.20% | |||
Welltower, Inc. REIT | 4,036,821 | 330,696 | |
VICI Properties, Inc. REIT | 11,278,588 | 328,207 | |
Equinix, Inc. REIT | 449,897 | 326,742 | |
Extra Space Storage, Inc. REIT | 2,414,560 | 293,562 | |
Crown Castle, Inc. REIT | 790,377 | 72,739 | |
1,351,946 | |||
Total common stocks (cost: $70,463,404,000) | 108,955,891 | ||
Convertible stocks 0.03% Utilities 0.03% | |||
AES Corp., convertible preferred units, 6.875% 2/15/2024 | 640,048 | 39,043 | |
Total convertible stocks (cost: $64,005,000) | 39,043 | ||
Short-term securities 2.77% Money market investments 2.57% | |||
Capital Group Central Cash Fund 5.44%3,6 | 28,812,812 | 2,880,993 | |
Money market investments purchased with collateral from securities on loan 0.20% | |||
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, Institutional Class 5.27%6,7 | 125,120,012 | 125,120 | |
State Street Institutional U.S. Government Money Market Fund, Institutional Class 5.26%6,7 | 41,226,339 | 41,226 | |
Capital Group Central Cash Fund 5.44%3,6,7 | 328,707 | 32,868 |
Fundamental Investors — Page 6 of 10
unaudited
Short-term securities (continued) Money market investments purchased with collateral from securities on loan (continued) | Shares | Value (000) | |
Invesco Short-Term Investments Trust – Government & Agency Portfolio, Institutional Class 5.26%6,7 | 29,883,384 | $29,883 | |
Goldman Sachs Financial Square Government Fund, Institutional Shares 5.24%6,7 | 406,410 | 407 | |
229,504 | |||
Total short-term securities (cost: $3,110,596,000) | 3,110,497 | ||
Total investment securities 99.94% (cost: $73,638,005,000) | 112,105,431 | ||
Other assets less liabilities 0.06% | 62,197 | ||
Net assets 100.00% | $112,167,628 |
Investments in affiliates3
Value of affiliates at 1/1/2023 (000) | Additions (000) | Reductions (000) | Net realized (loss) gain (000) | Net unrealized (depreciation) appreciation (000) | Value of affiliates at 9/30/2023 (000) | Dividend income (000) | |
Common stocks 2.41% | |||||||
Information technology 0.00% | |||||||
Wolfspeed, Inc.1,8 | $432,695 | $82,870 | $73,174 | $(72,702 ) | $(146,648 ) | $— | $— |
Industrials 0.99% | |||||||
Regal Rexnord Corp. | 438,453 | 41,741 | 390 | 226 | 86,997 | 567,027 | 4,169 |
ITT, Inc. | 451,240 | — | 347 | 58 | 93,485 | 544,436 | 4,840 |
1,111,463 | |||||||
Financials 0.25% | |||||||
OneMain Holdings, Inc. | 229,061 | 1,880 | 190 | (6 ) | 46,397 | 277,142 | 20,666 |
Consumer discretionary 0.09% | |||||||
Trainline PLC1 | 100,746 | 3,240 | 59 | (4 ) | 1,840 | 105,763 | — |
Adient PLC9 | 168,855 | — | 203,706 | (4,447 ) | 39,298 | — | — |
105,763 | |||||||
Consumer staples 0.53% | |||||||
Performance Food Group Co.1 | 264,075 | 330,900 | 371 | 39 | (2,586 ) | 592,057 | — |
Materials 0.55% | |||||||
Mosaic Co. | 688,847 | 236,472 | 115,997 | (56,584 ) | (134,943 ) | 617,795 | 17,043 |
Utilities 0.00% | |||||||
AES Corp.8 | 1,024,783 | 30,163 | 328,146 | (40,117 ) | (355,876 ) | — | 14,684 |
Total common stocks | 2,704,220 | ||||||
Convertible stocks 0.00% | |||||||
Utilities 0.00% | |||||||
AES Corp., convertible preferred units, 6.875% 2/15/ 20248 | 65,331 | — | 31 | (8 ) | (26,249 ) | — | 3,302 |
Short-term securities 2.60% | |||||||
Money market investments 2.57% | |||||||
Capital Group Central Cash Fund 5.44%6 | 4,506,752 | 7,833,201 | 9,459,123 | 838 | (675 ) | 2,880,993 | 128,818 |
Money market investments purchased with collateral from securities on loan 0.03% | |||||||
Capital Group Central Cash Fund 5.44%6,7 | 35,156 | 2,288 10 | 32,868 | — 11 | |||
Total short-term securities | 2,913,861 | ||||||
Total 5.01% | $(172,707 ) | $(398,960 ) | $5,618,081 | $193,522 |
Fundamental Investors — Page 7 of 10
unaudited
Restricted security5
Acquisition date | Cost (000) | Value (000) | Percent of net assets | |
Checkout Payments Group, Ltd., Class B1,4 | 1/11/2022 | $49,613 | $11,525 | .01 % |
1 | Security did not produce income during the last 12 months. |
2 | All or a portion of this security was on loan. The total value of all such securities was $248,587,000, which represented .22% of the net assets of the fund. |
3 | Affiliate of the fund or part of the same “group of investment companies“ as the fund, as defined under the Investment Company Act of 1940, as amended. |
4 | Value determined using significant unobservable inputs. |
5 | Restricted security, other than Rule 144A securities or commercial paper issued pursuant to Section 4(a)(2) of the Securities Act of 1933. The total value of all such restricted securities was $11,525,000, which represented .01% of the net assets of the fund. |
6 | Rate represents the seven-day yield at 9/30/2023. |
7 | Security purchased with cash collateral from securities on loan. |
8 | Affiliated issuer during the reporting period but no longer an affiliate at 9/30/2023. Refer to the investment portfolio for the security value at 9/30/2023. |
9 | Affiliated issuer during the reporting period but no longer held at 9/30/2023. |
10 | Represents net activity. |
11 | Dividend income is included with securities lending income and is not shown in this table. |
Valuation disclosures
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 per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers. 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.
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, including depositary receipts, 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, are generally valued at evaluated prices obtained from third-party pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. 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.
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 & loans; 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 |
Fundamental Investors — Page 8 of 10
unaudited
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds“), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.
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 valuation guidelines adopted by the fund’s investment adviser and approved by the board of trustees as further described. 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 securities, dealer or broker quotes, 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 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 designated 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 “Committee”) to administer, implement and oversee the fair valuation process and to make fair value decisions. The Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation team. The Committee reviews changes in fair value measurements from period to period, pricing vendor information and market data, and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews facilitated by the investment adviser’s global risk management group. The Committee reports changes to the fair valuation guidelines to the board of trustees. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
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 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 September 30, 2023 (dollars in thousands):
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Common stocks: | ||||
Information technology | $22,544,900 | $2,285,989 | $— | $24,830,889 |
Health care | 12,446,997 | 2,557,923 | — | 15,004,920 |
Industrials | 11,887,015 | 1,365,998 | — | 13,253,013 |
Financials | 11,478,074 | 899,099 | 11,525 | 12,388,698 |
Consumer discretionary | 8,044,146 | 2,448,008 | — | 10,492,154 |
Consumer staples | 8,197,373 | 1,832,151 | — | 10,029,524 |
Communication services | 8,396,047 | 439,824 | — | 8,835,871 |
Materials | 4,702,781 | 418,695 | — | 5,121,476 |
Energy | 5,043,896 | 26,330 | — | 5,070,226 |
Utilities | 2,577,174 | — | — | 2,577,174 |
Real estate | 1,351,946 | — | — | 1,351,946 |
Convertible stocks | 39,043 | — | — | 39,043 |
Short-term securities | 3,110,497 | — | — | 3,110,497 |
Total | $99,819,889 | $12,274,017 | $11,525 | $112,105,431 |
Fundamental Investors — Page 9 of 10
unaudited
Key to abbreviations |
ADR = American Depositary Receipts |
CAD = Canadian dollars |
REIT = Real Estate Investment Trust |
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 Capital Group website at capitalgroup.com.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
American Funds Distributors, Inc., member FINRA.
© 2023 Capital Group. All rights reserved.
MFGEFP3-010-1123O-S96437
Fundamental Investors — Page 10 of 10