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Amcap Fund (CAFBX)

Filed: 7 Nov 07, 7:00pm

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: 811-01435



AMCAP Fund, Inc.
(Exact name of registrant as specified in charter)

333 South Hope Street
Los Angeles, California 90071
(Address of principal executive offices)




Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: February 28 or 29

Date of reporting period: August 31, 2007





Vincent P. Corti
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(Name and address of agent for service)


Copies to:
Eric A.S. Richards
O’Melveny & Myers LLP
400 South Hope Street, 10th Floor
Los Angeles, California 90071
(Counsel for the registrant)




ITEM 1 – Reports to Stockholders


[logo - American Funds®]

The right choice for the long term®

AMCAP Fund
 
[photo - leaf growing on a shoot off of a tree trunk]
 
Semi-annual report for the six months ended August 31, 2007

AMCAP Fund® seeks long-term growth of capital by investing primarily in U.S. companies with a record of above-average growth.

This fund is one of the 30 American Funds. For 75 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. For current information and month-end results, visit americanfunds.com.

Here are returns on a $1,000 investment with all distributions reinvested for periods ended September 30, 2007 (the most recent calendar quarter-end):

Class A shares
 
1 year
  
5 years
  
10 years
 
          
Reflecting 5.75% maximum sales charge
         
          
Average annual total return
     +13.23%  +9.04%
Cumulative total return
  +10.41%  +86.13%  +137.54%

The total annual fund operating expense ratio for Class A shares as of the most recent fiscal year-end was 0.68%. This figure does not reflect a fee waiver currently in effect; therefore, the actual expense ratio is lower.

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect actual expenses, with the waiver applied. Fund results would have been lower without the waiver. Please see the Financial Highlights table on pages 18 to 21 for details.

Results for other share classes can be found on page 22.
 
 
Fellow shareholders:
 
[photo - dew on a leaf]
 
Fueled by a continuation of the global expansion, U.S. and world stock markets gained ground during the six months ended August 31, 2007. For the four weeks from mid-July to mid-August, equities were negatively affected by worries about turmoil in the credit markets. On September 18, the Federal Reserve cut federal funds and discount rates, which served to allay investors’ fears; however, the possibility of a credit crunch still exists.

In this environment, AMCAP produced a total return of 7.0% for the six months, compared with 5.7% for the unmanaged Standard & Poor’s 500 Composite Index, a broad measure of primarily large U.S. stocks. The Lipper Growth Funds Index, which tracks the largest growth funds, had a total return of 6.2%, and the Lipper Multi-Cap Core Funds Index, which measures mutual funds that invest in companies of different sizes and growth rates, provided a total return of 5.2%.

Over the longer term (five years or more), AMCAP’s results generally surpassed the S&P 500 and these Lipper indexes. AMCAP’s average annual total return over the 10 years ended August 31, 2007, was 9.9%, compared with 6.7% by the S&P 500, 5.3% by the Lipper Growth Funds Index and 7.0% by the Lipper Multi-Cap Core Funds Index. Viewed on a cumulative basis, total returns are shown in the table below.

What helped the fund

Information technology and oil service companies were among those that helped results. The major contributors included Schlumberger (+53.7%), Precision Castparts (+43.3%), Intel (+29.7%), Oracle (+23.4%), Cisco Systems (+23.0%) and Google (+14.6%). Other large holdings that have done well over the six-month period include Fannie Mae (+15.6%) and Target (+7.2%).

[Begin Sidebar]
Class A share cumulative total returns
         
          
For periods ended August 31, 2007
 1 year  5 years  10 years 
          
AMCAP Fund
  +16.6%  +76.8%  +157.2%
Standard & Poor’s 500 Composite Index*  +15.1   +76.2   +92.1 
Lipper Multi-Cap Core Funds Index
  +16.3   +86.7   +95.9 
Lipper Growth Funds Index
  +15.8   +70.0   +67.1 
             
*The S&P 500 is unmanaged and its results do not reflect the effect of sales charges, commissions or expenses.            
Results for the Lipper indexes do not include the effect of sales charges.
            
[End Sidebar]

What detracted from results

Financial and health care companies held the fund back. Investors became concerned about the potential impact of loan quality and liquidity problems on profits and balance sheets of financial companies. While any exposure to this group was detrimental to results in recent months, AMCAP held a relatively small position in financials (8.4% of the total portfolio compared to 21% for the S&P 500 as of August 31). Among the fund’s financial holdings were Capital One (–16.1%) and Freddie Mac (–4.0%).

Health care companies such as UnitedHealth Group (–4.2%) were hurt by the potential impact on pharmaceuticals of possible new regulations and changes in the health care delivery system proposed by the new Congress and presidential candidates.

Looking ahead

Our annual report last spring noted that “large inflows into alternative asset classes, derivatives and certain hedge funds have injected a level of complexity and leverage into the world’s financial system that is worrisome.” Over the summer, more subprime mortgage defaults, hedge fund losses and short-term liquidity issues in commercial paper surfaced both in the U.S. and in Europe. One positive aspect of these developments is that the Federal Reserve and the banking industry here and abroad are paying more attention to the issue. This does not necessarily mean the problem will go away anytime soon, but it is an important step.

At AMCAP, we continue to search for high-quality growth companies in which we can invest at attractive valuations and hold for the long term. While a weak economy would be a test of any company’s ability to grow in the short term, our focus on quality should hold us in good stead for the long term. We look for companies with a history of growth, a sustainable competitive edge and good future prospects along with strong management. As volatility increases in the stock market — and when prices dip — we hope to take advantage of situations in which we can invest in promising growth companies at reasonable valuations.

As always, we recommend that you take a long-term perspective toward your mutual fund investment.

Cordially,
 
/s/ R. Michael Shanahan
R. Michael Shanahan
Vice Chairman of the Board
 
 
/s/ Claudia P. Huntington
Claudia P. Huntington
President
 
October 12, 2007

For current information about the fund, visit americanfunds.com.
 
 
 
Summary investment portfolio, August 31, 2007


The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings.  For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.

[begin pie chart]
 
Industry sector diversification
 
Percent of net assets
 
    
Information technology  21.00%
Consumer discretionary  17.54 
Health care  14.67 
Financials  8.36 
Energy  7.07 
Other industries  16.41 
Short-term securities & other assets less liabilities  14.95 
[end pie chart]

  
Shares
  
Market value (000)
  
Percent of
net assets
 
          
Common stocks  - 85.05%
         
          
Information technology  - 21.00%
         
Cisco Systems, Inc. (1)  24,604,300  $785,369   2.85%
Oracle Corp. (1)  33,956,991   688,648   2.50 
Google Inc., Class A (1)  1,055,000   543,589   1.97 
Intel Corp.  20,567,000   529,600   1.92 
Microsoft Corp.  15,895,000   456,663   1.66 
Texas Instruments Inc.  12,250,000   419,440   1.52 
eBay Inc. (1)  5,650,000   192,665   .70 
Other securities      2,175,250   7.88 
       5,791,224   21.00 
             
Consumer discretionary  - 17.54%
            
Lowe's Companies, Inc.  22,380,000   695,123   2.52 
Target Corp.  7,766,000   512,012   1.86 
Carnival Corp., units  8,525,200   388,664   1.41 
Johnson Controls, Inc.  3,390,000   383,409   1.39 
Best Buy Co., Inc.  8,650,000   380,168   1.38 
YUM! Brands, Inc.  7,476,000   244,615   .89 
O'Reilly Automotive, Inc. (1)  (2)  6,240,000   221,770   .80 
Time Warner Inc.  11,061,500   209,947   .76 
Williams-Sonoma, Inc.  (2)  6,000,000   199,980   .72 
Ross Stores, Inc.  6,463,800   179,888   .65 
Other securities      1,422,164   5.16 
       4,837,740   17.54 
             
Health care  - 14.67%
            
UnitedHealth Group Inc.  12,680,000   634,127   2.30 
WellPoint, Inc. (1)  6,950,000   560,101   2.03 
Amgen Inc. (1)  6,965,000   349,016   1.27 
Medtronic, Inc.  5,200,000   274,768   1.00 
Medco Health Solutions, Inc. (1)  2,710,000   231,569   .84 
Roche Holding AG  1,262,000   219,424   .79 
St. Jude Medical, Inc. (1)  4,929,200   214,765   .78 
Other securities      1,563,871   5.66 
       4,047,641   14.67 
             
Financials  - 8.36%
            
Fannie Mae  8,640,000   566,870   2.06 
Capital One Financial Corp.  6,151,200   397,737   1.44 
American International Group, Inc.  4,365,000   288,090   1.04 
Hudson City Bancorp, Inc.  19,100,000   271,602   .98 
Wachovia Corp.  5,507,008   269,733   .98 
Freddie Mac  2,550,000   157,106   .57 
Other securities      355,169   1.29 
       2,306,307   8.36 
             
Energy  - 7.07%
            
Schlumberger Ltd.  6,068,700   585,630   2.12 
Devon Energy Corp.  3,020,000   227,436   .82 
FMC Technologies, Inc. (1)  2,285,000   216,389   .78 
Other securities      922,182   3.35 
       1,951,637   7.07 
             
Consumer staples  - 5.81%
            
PepsiCo, Inc.  5,000,000   340,150   1.23 
L'Oréal SA  2,300,000   269,479   .98 
Altria Group, Inc.  2,500,000   173,525   .63 
Other securities      820,122   2.97 
       1,603,276   5.81 
             
Industrials  - 5.68%
            
Precision Castparts Corp.  3,440,000   448,266   1.63 
General Electric Co.  6,400,000   248,768   .90 
United Parcel Service, Inc., Class B  3,200,000   242,752   .88 
Robert Half International Inc.  6,800,000   217,192   .79 
Other securities      409,960   1.48 
       1,566,938   5.68 
             
Telecommunication services  - 2.24%
            
Sprint Nextel Corp., Series 1  15,970,000   302,153   1.10 
Other securities      316,519   1.14 
       618,672   2.24 
             
Other - 0.32%
            
Other securities      87,304   .32 
    ��        
             
Miscellaneous  -  2.36%
            
Other common stocks in initial period of acquisition      650,030   2.36 
             
             
Total common stocks (cost: $16,745,171,000)
      23,460,769   85.05 
             
             
             
   
Principal amount
 (000)
         
Short-term securities  - 14.88%
            
             
Federal Home Loan Bank 4.75%-5.14% due 9/5-12/17/2007
 $456,500   453,128   1.64 
Ciesco LLC 5.245%-5.26% due 9/12-10/5/2007 (3)
  125,000   124,546     
Citigroup Funding Inc. 5.245% due 10/22-10/26/2007
  125,000   124,014     
CAFCO, LLC 6.00% due 10/1/2007 (3)
  25,000   24,871   .99 
Edison Asset Securitization LLC 5.23%-6.00% due 9/4-10/9/2007 (3)
  226,700   225,905     
General Electric Co. 5.26% due 11/14/2007
  35,000   34,600   .94 
Freddie Mac 4.80%-5.145% due  9/17-11/26/2007
  258,312   256,501   .93 
Coca-Cola Co. 5.19%-5.23% due  9/14-11/6/2007 (3)
  257,000   255,536   .93 
Procter & Gamble International Funding S.C.A. 5.22%-5.24% due  9/13-10/31/2007 (3)
  252,650   251,068   .91 
Fannie Mae 4.75%-5.15% due  9/5-11/6/2007
  240,200   239,200   .87 
JPMorgan Chase & Co. 5.20%-5.22% due 9/24-10/19/2007
  125,000   124,298     
Park Avenue Receivables Co., LLC 5.24% due 9/7-10/12/2007 (3)
  109,637   109,159   .85 
Bank of America Corp. 5.225%-5.40% due  9/7-11/2/2007
  210,800   210,040   .76 
Variable Funding Capital Corp. 5.24%-5.97% due  9/6-10/17/2007 (3)
  195,300   194,573   .71 
Wal-Mart Stores Inc. 5.19%-5.20% due  9/11-10/30/2007 (3)
  185,200   184,006   .67 
International Lease Finance Corp. 5.20%-5.27% due 9/20-10/31/2007
  149,900   148,947     
AIG Funding, Inc. 5.20% due 9/10/2007
  25,000   24,964   .63 
Lowe's Co.s, Inc. 5.27% due 9/12/2007
  20,000   19,965   .07 
Other securities      1,098,936   3.98 
             
             
Total short-term securities (cost: $4,103,779,000)
      4,104,257   14.88 
             
             
Total investment securities (cost: $20,848,950,000)
      27,565,026   99.93 
Other assets less liabilities
      18,796   .07 
             
Net assets
     $27,583,822   100.00%
 
 "Miscellaneous" securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.
 "Other securities" includes all issues that are not disclosed separately in the summary investment portfolio.
 
Investments in affiliates
 
A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares of that company.  The fund's affiliated holdings listed below are either shown in the preceding summary investment portfolio or included in the market value of "Other securities" under their respective industry sectors. Further details on these holdings and related transactions during the six months ended August 31, 2007, appear below.
 

Company
 
Beginning shares
  
Purchases
  
Sales
  
Ending shares
  
Dividend income (000)
  
Market value of affiliates at 8/31/2007 (000)
 
                   
                   
O'Reilly Automotive, Inc. (1)  -   6,240,000   -   6,240,000  $-  $221,770 
Williams-Sonoma, Inc.  6,000,000   -   -   6,000,000   1,380   199,980 
Tractor Supply Co. (1)  2,525,000   -   -   2,525,000   -   121,604 
Medicis Pharmaceutical Corp., Class A  3,625,000   -   -   3,625,000   218   110,707 
Mine Safety Appliances Co.  1,942,750   -   91,400   1,851,350   855   88,717 
Talbots, Inc.  -   3,057,725   -   3,057,725   1,193   65,068 
P.F. Chang's China Bistro, Inc. (1)  1,650,000   -   -   1,650,000   -   55,655 
                  $3,646  $863,501 
 
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) Security did not produce income during the last 12 months.
(2) Represents an affiliated company as defined under the Investment Company Act of 1940.
(3) Restricted security that can be resold only to institutional investors. In practice, this security is typically as liquid as unrestricted securities in the portfolio. The total value of all such restricted securities, including those in "Other securities" in the summary investment portfolio, was $2,196,266,000, which represented 7.96% of the net assets of the fund.
 
See Notes to Financial Statements
 
 

Financial statements

Statement of assets and liabilities
    unaudited 
at August 31, 2007 (dollars and shares in thousands, except per-share amounts) 
       
Assets:
      
 Investment securities at market:      
  Unaffiliated issuers (cost: $20,011,400) $26,701,525    
  Affiliated issuers (cost: $837,550)  863,501  $27,565,026 
 Cash      117 
 Receivables for:        
  Sales of investments  35,955     
  Sales of fund's shares  34,902     
  Dividends and interest  26,985   97,842 
       27,662,985 
Liabilities:
        
 Payables for:        
  Purchases of investments  21,580     
  Repurchases of fund's shares  28,262     
  Investment advisory services  6,564     
  Services provided by affiliates  20,177     
  Deferred directors' compensation  2,237     
  Other  343   79,163 
Net assets at August 31, 2007
     $27,583,822 
         
Net assets consist of:
        
 Capital paid in on shares of capital stock     $19,970,347 
 Undistributed net investment income      172,628 
 Undistributed net realized gain      724,767 
 Net unrealized appreciation      6,716,080 
Net assets at August 31, 2007
     $27,583,822 
 

Total authorized capital stock - 2,000,000 shares, $1.00 par value (1,286,978 total shares outstanding)
 
  
Net assets
  
Shares outstanding
  
Net asset value per share*
 
         * 
Class A $18,446,453   855,231  $21.57 
Class B  1,198,807   57,741  $20.76 
Class C  1,749,893   84,861  $20.62 
Class F  2,824,808   131,585  $21.47 
Class 529-A  488,714   22,717  $21.51 
Class 529-B  92,157   4,427  $20.82 
Class 529-C  153,732   7,379  $20.83 
Class 529-E  28,381   1,332  $21.30 
Class 529-F  17,443   810  $21.54 
Class R-1  44,831   2,137  $20.98 
Class R-2  467,428   22,293  $20.97 
Class R-3  805,324   37,784  $21.31 
Class R-4  615,991   28,666  $21.49 
Class R-5  649,860   30,015  $21.65 
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Class A and 529-A, for which the maximum offering prices per share were $22.89 and $22.82, respectively. 
             
See Notes to Financial Statements            
 

 
Statement of operations
    unaudited 
for the six months ended August 31, 2007 (dollars in thousands) 
       
Investment income:
      
 Income:      
       
       
  Dividends (net of non-U.S. taxes of $2,131; also includes $3,646 from affiliates) $167,715    
  Interest  112,051  $279,766 
         
 Fees and expenses(*):        
  Investment advisory services  43,108     
  Distribution services  45,814     
  Transfer agent services  10,572     
  Administrative services  6,215     
  Reports to shareholders  529     
  Registration statement and prospectus  756     
  Postage, stationery and supplies  1,448     
  Directors' compensation  378     
  Auditing and legal  91     
  Custodian  169     
  State and local taxes  1     
  Other  10     
  Total fees and expenses before reimbursements/waivers  109,091     
 Less reimbursements/waivers of fees and expenses:        
  Investment advisory services  4,311     
  Administrative services  100     
  Total fees and expenses after reimbursements/waivers      104,680 
 Net investment income      175,086 
         
Net realized gain and unrealized appreciation on investments and non-U.S. currency
     
 Net realized gain (loss) on:        
  Investments (including $732 net gain from affiliates)  727,562     
  Non-U.S. currency transactions  (211)  727,351 
 Net unrealized appreciation (depreciation) on:        
  Investments  875,185     
  Non-U.S. currency translations  (20)  875,165 
Net realized gain and unrealized appreciation on investments and non-U.S. currency   1,602,516 
Net increase in net assets resulting from operations
     $1,777,602 
         
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. 
         
See Notes to Financial Statements        
         
         
         
Statements of changes in net assets
 (dollars in thousands) 
         
  
Six months ended August 31, 2007*
  
Year ended February 28, 2007
 
         
         
Operations:
        
 Net investment income $175,086  $189,175 
 Net realized gain on investments and non-U.S. currency transactions  727,351   706,008 
 Net unrealized appreciation on investments and non-U.S. currency translations  875,165   969,475 
  Net increase in net assets resulting from operations  1,777,602   1,864,658 
         
Dividends and distributions paid to shareholders from net investment income:
        
 Dividends from net investment income and non-U.S. currency gain  (49,185)  (161,301)
 Distributions from net realized gain on investments  (120,088)  (713,424)
   Total dividends and distributions paid to shareholders  (169,273)  (874,725)
         
Net capital share transactions
  321,966   1,323,416 
         
Total increase in net assets
  1,930,295   2,313,349 
         
Net assets:
        
 Beginning of period  25,653,527   23,340,178 
 End of period (including undistributed net investment income:        
  $172,628 and $46,727, respectively) $27,583,822  $25,653,527 
         
*Unaudited.
        
         
See Notes to Financial Statements        
 

Notes to financial statements   
                                                                                                                  unaudited

1.  
Organization and significant accounting policies

Organization– AMCAP Fund, Inc. (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks long-term growth of capital by investing primarily in U.S. companies with a record of above-average growth.

The fund offers 14 share classes consisting of four retail share classes, five 529 college savings plan share classes and five retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) can be utilized to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The fund’s share classes are described below:

Share class
Initial sales charge
Contingent deferred sales charge upon redemption
Conversion feature
Class A and 529-AUp to 5.75%None (except 1% for certain redemptions within one year of purchase without an initial sales charge)None
Class B and 529-BNoneDeclines from 5% to 0% for redemptions within six years of purchaseClass B and 529-B convert to Class A and 529-A, respectively, after eight years
Class CNone1% for redemptions within one year of purchaseClass C converts to Class F after 10 years
Class 529-CNone1% for redemptions within one year of purchaseNone
Class 529-ENoneNoneNone
Class F and 529-FNoneNoneNone
Class R-1, R-2, R-3, R-4 and R-5NoneNone
None
 

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.

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 following is a summary of the significant accounting policies followed by the fund:

Security valuation– Equity securities are 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 in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked 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 valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market 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 or less remaining to maturity. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under procedures adopted by authority of the fund's board of directors. Market quotations may be considered unreliable if events occur that materially affect the value of securities (particularly non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange.  Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, 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; 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.

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.

Non-U.S. currency translation– Assets and liabilities, including investment securities, denominated in non-U.S. currencies are translated into U.S. dollars at the exchange rates in effect 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 non-U.S. 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 non-U.S. currencies are disclosed separately.

2. Federal income taxation and distributions

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. 

The fund adopted the provisions of Financial Accounting Standards Board Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes, on June 29, 2007. The implementation of FIN 48 resulted in no material liability for unrecognized tax benefits and no material change to the beginning net asset value of the fund.

As of and during the period ended August 31, 2007, 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 tax authorities for tax years before 2003 and by state tax authorities for tax years before 2002.

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 differing treatment for items such as short-term capital gains and losses and capital losses related to sales of certain securities within 30 days of purchase. 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 February 28, 2007, the fund had tax basis undistributed ordinary income of $48,723,000 and undistributed long-term capital gain of $119,036,000.

As of August 31, 2007, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

Communications: insert TaxFootnoteTableAMCAP092007.xls

  (dollars in thousands) 
Gross unrealized appreciation on investment securities $6,989,621 
Gross unrealized depreciation on investment securities  (273,630)
Net unrealized appreciation on investment securities  6,715,991 
Cost of investment securities  20,849,035 

The tax character of distributions paid to shareholders was as follows (dollars in thousands):
 
  
Six months ended August 31, 2007
  
Year ended February 28, 2007   
 
  
Ordinary income
  
Long-term capital gains
  
Total distributions paid
  
Ordinary income
  
Long-term capital gains
  
Total distributions paid
 
Share class                  
Class A $35,799  $80,122  $115,921  $138,143  $474,443  $612,586 
Class B  1,074   5,487   6,561   665   33,768   34,433 
Class C  1,419   7,986   9,405   945   48,247   49,192 
Class F  5,487   12,050   17,537   19,657   66,410   86,067 
Class 529-A  883   2,081   2,964   3,126   11,205   14,331 
Class 529-B  72   410   482   44   2,354   2,398 
Class 529-C  127   680   807   67   3,667   3,734 
Class 529-E  40   121   161   109   663   772 
Class 529-F  35   69   104   120   341   461 
Class R-1  35   200   235   21   1,177   1,198 
Class R-2  407   2,081   2,488   215   11,654   11,869 
Class R-3  1,198   3,609   4,807   3,213   20,676   23,889 
Class R-4  1,210   2,614   3,824   3,285   12,219   15,504 
Class R-5  1,399   2,578   3,977   5,167   13,124   18,291 
Total $49,185  $120,088  $169,273  $174,777  $699,948  $874,725 

3. Fees and transactions with related parties

Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company SM ("AFS"), the fund’s transfer agent, and American Funds Distributors, SM Inc. ("AFD"), the principal underwriter of the fund’s shares.

Investment advisory services– The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.485% on the first $1 billion of daily net assets and decreasing to 0.290% on such assets in excess of $27 billion.  CRMC is currently waiving 10% of investment advisory services fees. During the six months ended August 31, 2007, total investment advisory services fees waived by CRMC were $4,311,000. As a result, the fee shown on the accompanying financial statements of $43,108,000, which was equivalent to an annualized rate of 0.317%, was reduced to $38,797,000, or 0.285% of average daily net assets.

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:

Distribution services – The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the board of directors 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 0.25% to 1.00% as noted below. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans.  All share classes 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.

For Class A and 529-A, the board of directors has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25% is not exceeded. As of August 31, 2007, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A.

Share class
Currently approved limits
Plan limits
Class A0.25%0.25%
Class 529-A0.250.50
Class B and 529-B1.001.00
Class C, 529-C and R-11.001.00
Class R-20.751.00
Class 529-E and R-30.500.75
Class F, 529-F and R-40.250.50

Transfer agent services The fund has a transfer agent agreement with AFS for Class A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.

Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Class A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. For the six months ended August 31, 2007, the total administrative services fees paid by CRMC were $100,000 for Class R-2. Administrative services fees are presented gross of any payments made by CRMC. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described above for the six months ended August 31, 2007, were as follows (dollars in thousands):

Share class
Distribution services
Transfer agent services
Administrative services
CRMC administrative services
Transfer agent services
Commonwealth of Virginia administrative services
Class A$21,253$9,922Not applicableNot applicableNot applicable
Class B6,031 650Not applicableNot applicableNot applicable
Class C 8,711
 
 
 
Included
in
administrative services
$1,243$175Not applicable
Class F 3,401 1,206 117Not applicable
Class 529-A 472 254 36$ 235
Class 529-B 451 49 13 45
Class 529-C 744 80 18 74
Class 529-E 68 152 14
Class 529-F- 81 8
Class R-1 22430 10Not applicable
Class R-2 1,719 327 712Not applicable
Class R-3 1,998 556 262Not applicable
Class R-4 742 428 12Not applicable
Class R-5Not applicable 279 6Not applicable
Total$45,814$10,572$4,475$1,364$376

Deferred directors’ compensation– Since the adoption of the deferred compensation plan in 1993, directors 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. Directors’ compensation of $378,000, shown on the accompanying financial statements, includes $252,000 in current fees (either paid in cash or deferred) and a net increase of $126,000 in the value of the deferred amounts.

Affiliated officers and directors – Officers and certain directors of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or directors received any compensation directly from the fund.

4. Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

 
Share class
 
Sales(*)   
  
Reinvestments of dividends and distributions
  
Repurchases(*)   
  
Net increase (decrease)
 
  
Amount
  
Shares
  
Amount
  
Shares
  
Amount
  
Shares
  
Amount
  
Shares
 
Six months ended August 31, 2007
                      
Class A $1,181,812   55,860  $110,442   5,075  $(1,278,300)  (60,267) $13,954   668 
Class B  42,673   2,096   6,286   300   (82,628)  (4,041)  (33,669)  (1,645)
Class C  130,649   6,454   8,925   428   (155,022)  (7,646)  (15,448)  (764)
Class F  412,016   19,577   15,748   727   (270,359)  (12,805)  157,405   7,499 
Class 529-A  44,983   2,132   2,964   137   (18,468)  (872)  29,479   1,397 
Class 529-B  4,905   240   482   23   (2,682)  (131)  2,705   132 
Class 529-C  16,113   787   807   38   (7,670)  (372)  9,250   453 
Class 529-E  2,584   123   161   8   (963)  (46)  1,782   85 
Class 529-F  3,811   179   104   5   (813)  (38)  3,102   146 
Class R-1  7,018   340   234   11   (8,357)  (403)  (1,105)  (52)
Class R-2  75,196   3,652   2,479   117   (63,171)  (3,056)  14,504   713 
Class R-3  132,976   6,364   4,802   224   (126,283)  (5,992)  11,495   596 
Class R-4  93,741   4,436   3,823   175   (71,015)  (3,364)  26,549   1,247 
Class R-5  163,344   7,663   3,946   181   (65,327)  (3,067)  101,963   4,777 
Total net increase                                
   (decrease) $2,311,821   109,903  $161,203   7,449  $(2,151,058)  (102,100) $321,966   15,252 
                                 
Year ended February 28, 2007
                             
Class A $2,452,797   124,436  $584,816   29,600  $(2,466,827)  (125,268) $570,786   28,768 
Class B  106,571   5,614   33,035   1,734   (160,492)  (8,454)  (20,886)  (1,106)
Class C  271,113   14,343   46,681   2,465   (320,656)  (17,014)  (2,862)  (206)
Class F  757,923   38,524   77,095   3,918   (553,473)  (28,268)  281,545   14,174 
Class 529-A  93,121   4,721   14,329   726   (30,939)  (1,573)  76,511   3,874 
Class 529-B  11,842   620   2,398   126   (6,334)  (332)  7,906   414 
Class 529-C  31,635   1,651   3,733   194   (13,915)  (729)  21,453   1,116 
Class 529-E  5,470   280   772   39   (2,230)  (114)  4,012   205 
Class 529-F  4,701   239   459   23   (1,812)  (92)  3,348   170 
Class R-1  18,747   973   1,192   62   (12,866)  (667)  7,073   368 
Class R-2  142,090   7,398   11,863   615   (100,614)  (5,226)  53,339   2,787 
Class R-3  243,454   12,483   23,865   1,221   (212,286)  (10,855)  55,033   2,849 
Class R-4  261,251   13,135   15,462   786   (146,292)  (7,369)  130,421   6,552 
Class R-5  207,095   10,475   18,095   912   (89,453)  (4,511)  135,737   6,876 
Total net increase                                
   (decrease) $4,607,810   234,892  $833,795   42,421  $(4,118,189)  (210,472) $1,323,416   66,841 
                                 
(*) Includes exchanges between share classes of the fund.                     
 
5. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities, of $2,613,806,000 and $2,700,872,000, respectively, during the six months ended August 31, 2007.
 
 
Financial highlights (1)
 

 
    
Income (loss) from investment operations(2)   
Dividends and distributions               
                              
  Net asset  value, beginning of periodNet investment income (loss)Net gains (losses on securities (both realized and unrealized)Total from investment operationsDividends (from net investment income)Distributions (from capital gains)Total dividends and distributionsNet asset value, end of periodTotal return (3) (4)Net assets, end of period (in millions)Ratio of expenses to average net assets before reimbursements/ waiversRatio of expenses to average net assets after reimbursements/ waivers (4)Ratio of net income (loss) to average net assets  (4)
                              
Class A:
                             
 Six months ended 8/31/2007(5)$20.29 $.15  $1.26  $1.41 $(.04) $(.09) $(.13) $21.57 6.97% $18,447 .69%(6).65%(6)1.41%(6)
 Year ended 2/28/2007  19.48 .18  1.37  1.55 (.16) (.58) (.74) 20.29 8.07 17,341 .68 .65 .91 
 Year ended 2/28/2006  18.02 .12  1.82  1.94 (.09) (.39) (.48) 19.48 10.87 16,091 .68 .65 .66 
 Year ended 2/28/2005  17.50 .06  .63  .69 (.04) (.13) (.17) 18.02 3.94 13,350 .69 .68 .36 
 Year ended 2/29/2004  12.78 .02  4.70  4.72  -(7) -  -(7)17.50 36.96 11,086 .73 .73 .11 
 Year ended 2/28/2003  15.29 .03  (2.42)  (2.39) (.02) (.10) (.12) 12.78 (15.70) 6,641 .77 .77 .25 
Class B:
                             
 Six months ended 8/31/2007(5) 19.59 .07  1.21  1.28 (.02) (.09) (.11) 20.76 6.54 1,199 1.45(6)1.42(6).64(6)
 Year ended 2/28/2007  18.83 .02  1.32  1.34  - (.58) (.58) 19.59 7.23 1,163 1.46 1.42 .13 
 Year ended 2/28/2006  17.48 (.02)  1.76  1.74  - (.39) (.39) 18.83 10.04 1,139 1.47 1.44 (.13) 
 Year ended 2/28/2005  17.07 (.07)  .61  .54  - (.13) (.13) 17.48 3.13 984 1.48 1.47 (.41) 
 Year ended 2/29/2004  12.56 (.10)  4.61  4.51  -  -  - 17.07 35.91 740 1.50 1.50 (.66) 
 Year ended 2/28/2003  15.12 (.07)  (2.39)  (2.46)  - (.10) (.10) 12.56 (16.36) 299 1.55 1.55 (.52) 
Class C:
                             
 Six months ended 8/31/2007(5) 19.46 .06  1.21  1.27 (.02) (.09) (.11) 20.62 6.52 1,750 1.51(6)1.47(6).59(6)
 Year ended 2/28/2007  18.72 .01  1.31  1.32  - (.58) (.58) 19.46 7.16 1,667 1.51 1.48 .07 
 Year ended 2/28/2006  17.39 (.03)  1.75  1.72  - (.39) (.39) 18.72 9.98 1,607 1.52 1.49 (.18) 
 Year ended 2/28/2005  16.99 (.08)  .61  .53  - (.13) (.13) 17.39 3.09 1,262 1.54 1.53 (.47) 
 Year ended 2/29/2004  12.51 (.11)  4.59  4.48  -  -  - 16.99 35.81 849 1.56 1.56 (.73) 
 Year ended 2/28/2003  15.07 (.07)  (2.39)  (2.46)  - (.10) (.10) 12.51 (16.42) 274 1.59 1.59 (.55) 
Class F:
                             
 Six months ended 8/31/2007(5) 20.20 .15  1.25  1.40 (.04) (.09) (.13) 21.47 6.96 2,825 .68(6).65(6)1.41(6)
 Year ended 2/28/2007  19.40 .18  1.36  1.54 (.16) (.58) (.74) 20.20 8.06 2,506 .68 .65 .90 
 Year ended 2/28/2006  17.94 .12  1.82  1.94 (.09) (.39) (.48) 19.40 10.90 2,132 .71 .68 .63 
 Year ended 2/28/2005  17.41 .06  .62  .68 (.02) (.13) (.15) 17.94 3.88 1,513 .76 .75 .31 
 Year ended 2/29/2004  12.73 .01  4.67  4.68  -(7) -  -(7)17.41 36.81 978 .78 .78 .05 
 Year ended 2/28/2003  15.25 .03  (2.41)  (2.38) (.04) (.10) (.14) 12.73 (15.74) 289 .82 .82 .22 
Class 529-A:
                             
 Six months ended 8/31/2007(5) 20.25 .14  1.25  1.39 (.04) (.09) (.13) 21.51 6.88 489 .77(6).74(6)1.32(6)
 Year ended 2/28/2007  19.45 .17  1.36  1.53 (.15) (.58) (.73) 20.25 7.99 432 .74 .71 .84 
 Year ended 2/28/2006  17.99 .11  1.82  1.93 (.08) (.39) (.47) 19.45 10.85 339 .75 .72 .60 
 Year ended 2/28/2005  17.46 .06  .62  .68 (.02) (.13) (.15) 17.99 3.86 224 .77 .76 .31 
 Year ended 2/29/2004  12.76 .01  4.70  4.71 (.01)  - (.01) 17.46 36.90 128 .77 .77 .06 
 Year ended 2/28/2003  15.29 .04  (2.43)  (2.39) (.04) (.10) (.14) 12.76 (15.73) 39 .78 .78 .28 
Class 529-B:
                             
 Six months ended 8/31/2007(5) 19.65 .05  1.23  1.28 (.02) (.09) (.11) 20.82 6.51 92 1.58(6)1.55(6).51(6)
 Year ended 2/28/2007  18.91  -(7) 1.32  1.32  - (.58) (.58) 19.65 7.09 84 1.57 1.54 .01 
 Year ended 2/28/2006  17.58 (.05)  1.77  1.72  - (.39) (.39) 18.91 9.87 73 1.61 1.58 (.27) 
 Year ended 2/28/2005  17.20 (.10)  .61  .51  - (.13) (.13) 17.58 2.94 56 1.66 1.65 (.59) 
 Year ended 2/29/2004  12.68 (.13)  4.65  4.52  -  -  - 17.20 35.65 37 1.68 1.68 (.85) 
 Year ended 2/28/2003  15.28 (.08)  (2.42)  (2.50)  - (.10) (.10) 12.68 (16.45) 12 1.71 1.71 (.65) 
Class 529-C:
                             
 Six months ended 8/31/2007(5) 19.67 .05  1.22  1.27 (.02) (.09) (.11) 20.83 6.46 154 1.58(6)1.54(6).51(6)
 Year ended 2/28/2007  18.93  -(7) 1.32  1.32  - (.58) (.58) 19.67 7.08 136 1.56 1.53 .02 
 Year ended 2/28/2006  17.59 (.05)  1.78  1.73  - (.39) (.39) 18.93 9.92 110 1.59 1.56 (.25) 
 Year ended 2/28/2005  17.21 (.10)  .61  .51  - (.13) (.13) 17.59 2.93 76 1.65 1.64 (.58) 
 Year ended 2/29/2004  12.68 (.13)  4.66  4.53  -  -  - 17.21 35.72 46 1.67 1.67 (.84) 
 Year ended 2/28/2003  15.28 (.08)  (2.42)  (2.50)  - (.10) (.10) 12.68 (16.45) 14 1.69 1.69 (.63) 
Class 529-E:
                             
 Six months ended 8/31/2007(5) 20.07 .11  1.24  1.35 (.03) (.09) (.12) 21.30 6.75 28 1.07(6)1.04(6)1.02(6)
 Year ended 2/28/2007  19.28 .10  1.35  1.45 (.08) (.58) (.66) 20.07 7.66 25 1.05 1.02 .54 
 Year ended 2/28/2006  17.85 .05  1.80  1.85 (.03) (.39) (.42) 19.28 10.46 20 1.08 1.05 .27 
 Year ended 2/28/2005  17.37 (.01)  .62  .61  - (.13) (.13) 17.85 3.48 14 1.13 1.12 (.05) 
 Year ended 2/29/2004  12.73 (.05)  4.69  4.64  -  -  - 17.37 36.45 8 1.14 1.14 (.31) 
 Period from 3/7/2002 to 2/28/2003 16.08 (.01)  (3.22)  (3.23) (.02) (.10) (.12) 12.73 (20.18) 3 1.16(6)1.16(6)(.09)(6)
Class 529-F:
                             
 Six months ended 8/31/2007(5)$20.26 $.16  $1.26  $1.42 $(.05) $(.09) $(.14) $21.54 7.01% $17 .57%(6).53%(6)1.51%(6)
 Year ended 2/28/2007  19.46 .20  1.37  1.57 (.19) (.58) (.77) 20.26 8.20 14 .55 .52 1.04 
 Year ended 2/28/2006  17.99 .14  1.82  1.96 (.10) (.39) (.49) 19.46 10.99 10 .62 .59 .73 
 Year ended 2/28/2005  17.46 .04  .62  .66  - (.13) (.13) 17.99 3.75 6 .88 .87 .20 
 Year ended 2/29/2004  12.78 (.01)  4.69  4.68  -(7) -  -(7)17.46 36.66 3 .89 .89 (.07) 
 Period from 9/17/2002 to 2/28/2003 12.80 .01   -(7) .01 (.03)  - (.03) 12.78 .05  -(8).40 .40 .07 
Class R-1:
                             
 Six months ended 8/31/2007(5) 19.80 .06  1.23  1.29 (.02) (.09) (.11) 20.98 6.51 45 1.51(6)1.48(6).59(6)
 Year ended 2/28/2007  19.04 .02  1.32  1.34  - (.58) (.58) 19.80 7.14 43 1.50 1.47 .09 
 Year ended 2/28/2006  17.69 (.03)  1.77  1.74  - (.39) (.39) 19.04 9.92 35 1.55 1.51 (.19) 
 Year ended 2/28/2005  17.28 (.08)  .62  .54  - (.13) (.13) 17.69 3.09 23 1.57 1.54 (.47) 
 Year ended 2/29/2004  12.73 (.12)  4.68  4.56 (.01)  - (.01) 17.28 35.81 12 1.60 1.57 (.75) 
 Period from 6/26/2002 to 2/28/2003 13.96 (.04)  (1.19)  (1.23)  -  -  - 12.73 (8.81) 1 3.01(6)1.58(6)(.49)(6)
Class R-2:
                             
 Six months ended 8/31/2007(5) 19.79 .06  1.23  1.29 (.02) (.09) (.11) 20.97 6.53 467 1.54(6)1.46(6).59(6)
 Year ended 2/28/2007  19.03 .02  1.32  1.34  - (.58) (.58) 19.79 7.15 427 1.59 1.46 .09 
 Year ended 2/28/2006  17.66 (.03)  1.79  1.76  - (.39) (.39) 19.03 10.05 358 1.66 1.48 (.17) 
 Year ended 2/28/2005  17.26 (.07)  .60  .53  - (.13) (.13) 17.66 3.04 245 1.73 1.51 (.43) 
 Year ended 2/29/2004  12.71 (.11)  4.66  4.55  -(7) -  -(7)17.26 35.80 130 1.91 1.53 (.70) 
 Period from 5/21/2002 to 2/28/2003 15.51 (.05)  (2.63)  (2.68) (.02) (.10) (.12) 12.71 (17.37) 25 2.21(6)1.54(6)(.46)(6)
Class R-3:
                             
 Six months ended 8/31/2007(5) 20.08 .11  1.24  1.35 (.03) (.09) (.12) 21.31 6.74 805 1.04(6)1.01(6)1.05(6)
 Year ended 2/28/2007  19.28 .11  1.35  1.46 (.08) (.58) (.66) 20.08 7.68 747 1.04 1.01 .55 
 Year ended 2/28/2006  17.86 .05  1.80  1.85 (.04) (.39) (.43) 19.28 10.45 662 1.06 1.02 .29 
 Year ended 2/28/2005  17.37  -(7) .62  .62  - (.13) (.13) 17.86 3.54 421 1.08 1.07 .01 
 Year ended 2/29/2004  12.75 (.05)  4.67  4.62  -(7) -  -(7)17.37 36.27 189 1.16 1.15 (.32) 
 Period from 6/4/2002 to 2/28/2003 15.06 (.01)  (2.17)  (2.18) (.03) (.10) (.13) 12.75 (14.58) 24 1.29(6)1.16(6)(.09)(6)
Class R-4:
                             
 Six months ended 8/31/2007(5) 20.22 .14  1.26  1.40 (.04) (.09) (.13) 21.49 6.95 616 .74(6).70(6)1.36(6)
 Year ended 2/28/2007  19.42 .17  1.35  1.52 (.14) (.58) (.72) 20.22 7.97 555 .73 .70 .85 
 Year ended 2/28/2006  17.99 .11  1.81  1.92 (.10) (.39) (.49) 19.42 10.79 405 .75 .71 .61 
 Year ended 2/28/2005  17.45 .06  .62  .68 (.01) (.13) (.14) 17.99 3.85 168 .76 .75 .35 
 Year ended 2/29/2004  12.76 .01  4.69  4.70 (.01)  - (.01) 17.45 36.84 60 .78 .78 .05 
 Period from 5/20/2002 to 2/28/2003 15.67 .02  (2.78)  (2.76) (.05) (.10) (.15) 12.76 (17.74) 3 .95(6).81(6).24(6)
Class R-5:
                             
 Six months ended 8/31/2007(5) 20.35 .18  1.26  1.44 (.05) (.09) (.14) 21.65 7.10 650 .43(6).40(6)1.65(6)
 Year ended 2/28/2007  19.55 .23  1.36  1.59 (.21) (.58) (.79) 20.35 8.29 514 .43 .40 1.15 
 Year ended 2/28/2006  18.07 .17  1.83  2.00 (.13) (.39) (.52) 19.55 11.19 359 .44 .41 .90 
 Year ended 2/28/2005  17.54 .11  .63  .74 (.08) (.13) (.21) 18.07 4.20 274 .45 .44 .62 
 Year ended 2/29/2004  12.78 .06  4.71  4.77 (.01)  - (.01) 17.54 37.32 127 .47 .47 .37 
 Period from 5/15/2002 to 2/28/2003 15.72 .06  (2.85)  (2.79) (.05) (.10) (.15) 12.78 (17.83) 53 .48(6).48(6).58(6)


  
Six months ended
               
  
August 31,
 
Year ended February 28 or 29         
 
  
2007(5)
 
2007
  
2006
  
2005
  
2004
  
2003
 
                    
Portfolio turnover rate for all classes of shares  12%   20%  20%  16%  17%  18%
 

(1) Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.
(2) Based on average shares outstanding.
(3) Total returns exclude all sales charges, including contingent deferred sales charges.
(4) 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 for all share classes. 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.
(5) Unaudited.
(6) Annualized.
(7) Amount less than $.01.
(8) Amount less than $1 million.
 
 
 
See Notes to Financial Statements
 

Other share class results
unaudited

Class B, Class C, Class F and Class 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         
September 30, 2007 (the most recent calendar quarter-end):
 
1 year
  
5 years
  
of class
 
          
Class B shares— first sold 3/15/00
         
Reflecting applicable contingent deferred sales
         
charge (CDSC), maximum of 5%, payable only
         
if shares are sold within six years of purchase
  +11.22%  +13.46%  +4.75%
Not reflecting CDSC
  +16.22%  +13.70%  +4.75%
             
Class C shares— first sold 3/15/01
            
Reflecting CDSC, maximum of 1%, payable only
            
if shares are sold within one year of purchase
  +15.16%  +13.64%  +5.71%
Not reflecting CDSC
  +16.16%  +13.64%  +5.71%
             
Class F shares*— first sold 3/16/01
            
Not reflecting annual asset-based fee charged
            
by sponsoring firm
  +17.06%  +14.54%  +6.83%
             
Class 529-A shares— first sold 2/15/02
            
Reflecting 5.75% maximum sales charge
  +10.29%  +13.17%  +7.01%
Not reflecting maximum sales charge
  +17.02%  +14.52%  +8.14%
             
Class 529-B shares— first sold 2/19/02
            
Reflecting applicable CDSC, maximum of 5%,
            
payable only if shares are sold within six years
            
of purchase
  +11.04%  +13.27%  +7.42%
Not reflecting CDSC
  +16.04%  +13.52%  +7.55%
             
Class 529-C shares— first sold 2/19/02
            
Reflecting CDSC, maximum of 1%, payable only
            
if shares are sold within one year of purchase
  +15.09%  +13.54%  +7.57%
Not reflecting CDSC
  +16.09%  +13.54%  +7.57%
             
Class 529-E shares*— first sold 3/7/02
  +16.66%  +14.13%  +7.13%
             
Class 529-F shares*— first sold 9/17/02
            
Not reflecting annual asset-based fee charged
            
by sponsoring firm
  +17.24%  +14.56%  +13.23%
             
*These shares are sold without any initial or contingent deferred sales charge.            
Results shown do not reflect the $10 initial account setup fee and an annual $10 account maintenance fee.
            

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 18 to 21 for details.

For information regarding the differences among the various share classes, please refer to the fund’s prospectus.
 


 
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 period (March 1, 2007, through August 31, 2007).
 
Actual expenses:
 
The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.
 
Hypothetical example for comparison purposes:
 
The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
 
Notes:
 
There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.
 
Please 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 account value 3/1/2007  Ending account value 8/31/2007  
Expenses paid during period*
  Annualized expense ratio 
             
Class A -- actual return $1,000.00  $1,069.72  $3.39   .65%
Class A -- assumed 5% return  1,000.00   1,021.93   3.31   .65 
Class B -- actual return  1,000.00   1,065.40   7.39   1.42 
Class B -- assumed 5% return  1,000.00   1,018.05   7.22   1.42 
Class C -- actual return  1,000.00   1,065.23   7.65   1.47 
Class C -- assumed 5% return  1,000.00   1,017.80   7.48   1.47 
Class F -- actual return  1,000.00   1,069.59   3.39   .65 
Class F -- assumed 5% return  1,000.00   1,021.93   3.31   .65 
Class 529-A -- actual return  1,000.00   1,068.79   3.86   .74 
Class 529-A -- assumed 5% return  1,000.00   1,021.48   3.77   .74 
Class 529-B -- actual return  1,000.00   1,065.11   8.07   1.55 
Class 529-B -- assumed 5% return  1,000.00   1,017.39   7.88   1.55 
Class 529-C -- actual return  1,000.00   1,064.58   8.01   1.54 
Class 529-C -- assumed 5% return  1,000.00   1,017.44   7.83   1.54 
Class 529-E -- actual return  1,000.00   1,067.49   5.42   1.04 
Class 529-E -- assumed 5% return  1,000.00   1,019.96   5.30   1.04 
Class 529-F -- actual return  1,000.00   1,070.09   2.77   .53 
Class 529-F -- assumed 5% return  1,000.00   1,022.53   2.70   .53 
Class R-1 -- actual return  1,000.00   1,065.11   7.70   1.48 
Class R-1 -- assumed 5% return  1,000.00   1,017.74   7.53   1.48 
Class R-2 -- actual return  1,000.00   1,065.26   7.60   1.46 
Class R-2 -- assumed 5% return  1,000.00   1,017.85   7.43   1.46 
Class R-3 -- actual return  1,000.00   1,067.44   5.26   1.01 
Class R-3 -- assumed 5% return  1,000.00   1,020.11   5.14   1.01 
Class R-4 -- actual return  1,000.00   1,069.54   3.65   .70 
Class R-4 -- assumed 5% return  1,000.00   1,021.68   3.57   .70 
Class R-5 -- actual return  1,000.00   1,070.96   2.09   .40 
Class R-5 -- assumed 5% return  1,000.00   1,023.19   2.04   .40 
 
*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 (184), and divided by 366 (to reflect the one-half year period).
 

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 March 31, 2008. 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 based on advice of 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

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund under the agreement and other agreements as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of the fund in light of its objective of providing long-term growth of capital. They compared the fund’s total returns with those of other relevant funds (including the other funds that are the basis of the Lipper index for the category in which the fund is included) and market data such as relevant market indices. This report, including the letter to shareholders and related disclosures, contains certain information about each fund’s investment results. The board and the committee concluded that the fund’s short- and long-term results have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses remain significantly below those of most other relevant funds. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase and the 10% advisory fee waiver in effect since April 2005. In addition, they reviewed information regarding the advisory fees paid by institutional clients of an affiliate of CRMC with investment mandates similar to those of the fund. They noted that, although the fees paid by those clients generally were lower than those paid by the fund, the differences appropriately reflected the significant investment, operational and regulatory differences between advising mutual funds and institutional clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

4. Ancillary benefits

The board and the committee considered a variety of other benefits received by CRMC and its affiliates as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC’s institutional management affiliates. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments and attract and retain qualified personnel. They noted information previously received regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure and the impact of CRMC’s current 10% advisory fee waiver. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

Offices of the fund and of the
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
(Please write to the address nearest you.)

P.O. Box 25065
Santa Ana, CA 92799-5065

P.O. Box 659522
San Antonio, TX 78265-9522

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
O’Melveny & Myers LLP
400 South Hope Street
Los Angeles, CA 90071-2899

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

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s prospectus, which can be obtained from your financial adviser and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.

“American Funds Proxy Voting Guidelines” — which describes how we vote proxies relating to portfolio securities — is available free of charge on the U.S. Securities and Exchange Commission (SEC) website at sec.gov, on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the SEC for the 12 months ended June 30 by August 31. The report also is available on the SEC and American Funds websites.

A complete August 31, 2007, portfolio of AMCAP Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

AMCAP 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. (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS.

This report is for the information of shareholders of AMCAP Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2007, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
 
 
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What makes American Funds different?

For 75 years, we have followed a consistent philosophy to benefit our investors. Our 30 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 40 million shareholder accounts.

Our unique combination of strengths includes these five factors:

 
•A long-term, value-oriented approach
 
We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.

 
•An extensive global research effort
 
Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.

 
•The multiple portfolio counselor system
 
Our unique method of portfolio management, developed nearly 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

 
•Experienced investment professionals
 
American Funds portfolio counselors have an average of 24 years of investment experience, providing a wealth of knowledge and experience that few organizations have.

 
•A commitment to low operating expenses
 
The American Funds provide exceptional value for shareholders, with operating expenses that are among the lowest in the mutual fund industry.
 
 
American Funds span a range of investment objectives

 
•Growth funds
>
AMCAP Fund®
 
EuroPacific Growth Fund®
 
The Growth Fund of America®
 
The New Economy Fund®
 
New Perspective Fund®
 
New World FundSM
 
SMALLCAP World Fund®

 
•Growth-and-income funds
 
American Mutual Fund®
 
Capital World Growth and Income FundSM
 
Fundamental InvestorsSM
 
The Investment Company of America®
 
Washington Mutual Investors FundSM

 
•Equity-income funds
 
Capital Income Builder®
The Income Fund of America®

 
•Balanced fund
 
American Balanced Fund®

 
•Bond funds
 
American High-Income TrustSM
 
The Bond Fund of AmericaSM
 
Capital World Bond Fund®
 
Intermediate Bond Fund of America®
Short-Term Bond Fund of AmericaSM
 
U.S. Government Securities FundSM

 
•Tax-exempt bond funds
 
American High-Income Municipal Bond Fund®
 
Limited Term Tax-Exempt Bond Fund of AmericaSM
 
The Tax-Exempt Bond Fund of America®
 
State-specific tax-exempt funds
 
The Tax-Exempt Fund of California®
 
The Tax-Exempt Fund of Maryland®
 
The Tax-Exempt Fund of Virginia®

 
•Money market funds
 
The Cash Management Trust of America®
 
The Tax-Exempt Money Fund of AmericaSM
 
The U.S. Treasury Money Fund of AmericaSM

 
•American Funds Target Date Retirement Series®

  
 
The Capital Group Companies
 
American Funds  Capital Research and Management  Capital International     Capital Guardian   Capital Bank and Trust
 

 
Lit. No. MFGESR-902-1007P

Litho in USA AGD/L/8078-S10056

Printed on recycled paper

 
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


 
[logo – American Funds®]
 

AMCAP Fund
Investment portfolio

August 31, 2007
 
 unaudited

 
Common stocks — 85.05% Shares  
Market value
(000)
 
       
INFORMATION TECHNOLOGY — 21.00%
      
Cisco Systems, Inc.1
  24,604,300  $785,369 
Oracle Corp.1
  33,956,991   688,648 
Google Inc., Class A1
  1,055,000   543,589 
Intel Corp.  20,567,000   529,600 
Microsoft Corp.  15,895,000   456,663 
Texas Instruments Inc.  12,250,000   419,440 
eBay Inc.1
  5,650,000   192,665 
Yahoo! Inc.1
  7,275,000   165,361 
Automatic Data Processing, Inc.  3,500,000   160,090 
Apple Inc.1
  1,100,000   152,328 
NAVTEQ Corp.1
  2,353,500   148,271 
Hon Hai Precision Industry Co., Ltd.  18,000,000   133,677 
Altera Corp.  5,250,000   125,003 
SAP AG  2,300,000   123,895 
EMC Corp.1
  5,950,000   116,977 
Accenture Ltd, Class A  2,710,000   111,679 
Linear Technology Corp.  3,200,000   108,768 
Microchip Technology Inc.  2,500,000   96,300 
Maxim Integrated Products, Inc.  3,045,000   91,380 
KLA-Tencor Corp.  1,585,000   91,090 
Western Union Co.  4,631,800   87,217 
Dell Inc.1
  2,550,000   72,038 
Paychex, Inc.  1,600,000   71,088 
Analog Devices, Inc.  1,750,000   64,540 
Xilinx, Inc.  2,500,000   63,925 
Applied Materials, Inc.  2,700,000   57,672 
Delta Electronics, Inc.  12,075,000   45,020 
Rogers Corp.1
  750,000   30,892 
Jabil Circuit, Inc.  1,087,000   24,131 
Cadence Design Systems, Inc.1
  796,400   17,298 
First Data Corp.  500,000   16,610 
       
5,791,224
 
         
         
CONSUMER DISCRETIONARY — 17.54%
        
Lowe’s Companies, Inc.  22,380,000   695,123 
Target Corp.  7,766,000   512,012 
Carnival Corp., units  8,525,200   388,664 
Johnson Controls, Inc.  3,390,000   383,409 
Best Buy Co., Inc.  8,650,000   380,168 
YUM! Brands, Inc.  7,476,000   244,615 
O’Reilly Automotive, Inc.1,2
  6,240,000   221,770 
Time Warner Inc.  11,061,500   209,947 
Williams-Sonoma, Inc.2
  6,000,000   199,980 
Ross Stores, Inc.  6,463,800   179,888 
Harley-Davidson, Inc.  2,896,900   155,824 
Brinker International, Inc.  4,687,500   135,187 
Walt Disney Co.  4,000,000   134,400 
E. W. Scripps Co., Class A  3,126,100   128,483 
Tractor Supply Co.1,2
  2,525,000   121,604 
Expedia, Inc.1
  4,000,000   119,400 
Gentex Corp.  5,130,000   102,805 
Harman International Industries, Inc.  900,506   102,108 
Comcast Corp., Class A, special nonvoting stock1
  3,750,000   96,975 
Kohl’s Corp.1
  1,275,000   75,607 
Talbots, Inc.2
  3,057,725   65,068 
P.F. Chang’s China Bistro, Inc.1,2
  1,650,000   55,655 
Life Time Fitness, Inc.1
  900,000   50,013 
Fossil, Inc.1
  1,315,000   44,066 
Liberty Media Holding Corp., Liberty Interactive, Series A1
  1,750,000   33,198 
Applebee’s International, Inc.  71,400   1,771 
       
4,837,740
 
         
         
HEALTH CARE — 14.67%
        
UnitedHealth Group Inc.  12,680,000   634,127 
WellPoint, Inc.1
  6,950,000   560,101 
Amgen Inc.1
  6,965,000   349,016 
Medtronic, Inc.  5,200,000   274,768 
Medco Health Solutions, Inc.1
  2,710,000   231,569 
Roche Holding AG  1,262,000   219,424 
St. Jude Medical, Inc.1
  4,929,200   214,765 
Beckman Coulter, Inc.  2,132,700   153,448 
Biogen Idec Inc.1
  2,380,000   151,892 
Cephalon, Inc.1
  1,700,000   127,585 
Bristol-Myers Squibb Co.  4,225,000   123,159 
Express Scripts, Inc.1
  2,160,000   118,260 
Genentech, Inc.1
  1,510,000   112,963 
Forest Laboratories, Inc.1
  2,945,000   110,820 
Medicis Pharmaceutical Corp., Class A2
  3,625,000   110,707 
Becton, Dickinson and Co.  1,200,000   92,328 
Abbott Laboratories  1,400,000   72,674 
McKesson Corp.  1,100,000   62,931 
Haemonetics Corp.1
  1,190,000   59,072 
Gilead Sciences, Inc.1
  1,000,000   36,370 
Lincare Holdings Inc.1
  1,000,000   35,990 
Boston Scientific Corp.1
  2,547,890   32,689 
Johnson & Johnson  500,000   30,895 
Henry Schein, Inc.1
  500,000   29,095 
ResMed Inc.1
  690,000   28,055 
Kyphon Inc.1
  354,504   23,706 
Alcon, Inc.  174,252   23,569 
Mentor Corp.  477,900   21,310 
AstraZeneca PLC (Sweden)  129,300   6,353 
       
4,047,641
 
         
         
FINANCIALS — 8.36%
        
Fannie Mae  8,640,000   566,870 
Capital One Financial Corp.  6,151,200   397,737 
American International Group, Inc.  4,365,000   288,090 
Hudson City Bancorp, Inc.  19,100,000   271,602 
Wachovia Corp.  5,507,008   269,733 
Freddie Mac  2,550,000   157,106 
Wells Fargo & Co.  3,440,000   125,698 
Commerce Bancorp, Inc.  3,000,000   110,190 
M&T Bank Corp.  959,230   101,563 
Arthur J. Gallagher & Co.  600,000   17,718 
       
2,306,307
 
         
         
ENERGY — 7.07%
        
Schlumberger Ltd.  6,068,700   585,630 
Devon Energy Corp.  3,020,000   227,436 
FMC Technologies, Inc.1
  2,285,000   216,389 
Apache Corp.  2,150,000   166,367 
Newfield Exploration Co.1
  3,795,000   165,045 
EOG Resources, Inc.  2,122,900   142,998 
Smith International, Inc.  2,130,000   142,731 
Murphy Oil Corp.  2,200,000   134,068 
Noble Corp.  2,400,000   117,744 
ConocoPhillips  650,000   53,229 
       
1,951,637
 
         
         
CONSUMER STAPLES — 5.81%
        
PepsiCo, Inc.  5,000,000   340,150 
L’Oréal SA  2,300,000   269,479 
Altria Group, Inc.  2,500,000   173,525 
Walgreen Co.  3,100,000   139,717 
Avon Products, Inc.  4,000,000   137,400 
CVS/Caremark Corp.  3,505,000   132,559 
Wm. Wrigley Jr. Co.  1,870,000   108,928 
Costco Wholesale Corp.  1,600,000   98,800 
Dean Foods Co.1
  2,500,000   67,150 
Whole Foods Market, Inc.  1,200,000   53,112 
Wal-Mart Stores, Inc.  1,000,000   43,630 
Kraft Foods Inc., Class A  1,211,042   38,826 
       
1,603,276
 
         
         
INDUSTRIALS — 5.68%
        
Precision Castparts Corp.  3,440,000   448,266 
General Electric Co.  6,400,000   248,768 
United Parcel Service, Inc., Class B  3,200,000   242,752 
Robert Half International Inc.  6,800,000   217,192 
Avery Dennison Corp.  1,744,200   104,286 
Mine Safety Appliances Co.2
  1,851,350   88,717 
FedEx Corp.  790,000   86,647 
United Technologies Corp.  1,000,000   74,630 
Southwest Airlines Co.  3,685,000   55,680 
       
1,566,938
 
         
         
         
TELECOMMUNICATION SERVICES — 2.24%
        
Sprint Nextel Corp., Series 1  15,970,000   302,153 
Telephone and Data Systems, Inc., Special Common Shares  2,000,900   123,055 
Telephone and Data Systems, Inc.  1,575,000   101,981 
United States Cellular Corp.1
  501,600   48,781 
CenturyTel, Inc.  890,000   42,702 
       
618,672
 
         
         
MATERIALS — 0.23%
        
Sealed Air Corp.  2,400,000   
63,480
 
         
         
         
UTILITIES — 0.09%
        
Duke Energy Corp.  1,299,000   
23,824
 
         
         
         
MISCELLANEOUS — 2.36%
        
Other common stocks in initial period of acquisition      
650,030
 
         
         
         
Total common stocks (cost: $16,745,171,000)
      
23,460,769
 
         
         
  Principal amount     
Short-term securities — 14.88%  (000)    
         
Federal Home Loan Bank 4.75%–5.14% due 9/5–12/17/2007 $456,500   453,128 
Ciesco LLC 5.245%–5.26% due 9/12–10/5/20073
  125,000   124,546 
Citigroup Funding Inc. 5.245% due 10/22–10/26/2007  125,000   124,014 
CAFCO, LLC 6.00% due 10/1/20073
  25,000   24,871 
Edison Asset Securitization LLC 5.23%–6.00% due 9/4–10/9/20073
  226,700   225,905 
General Electric Co. 5.26% due 11/14/2007  35,000   34,600 
Freddie Mac 4.80%–5.145% due 9/17–11/26/2007  258,312   256,501 
Coca-Cola Co. 5.19%–5.23% due 9/14–11/6/20073
  257,000   255,536 
Procter & Gamble International Funding S.C.A. 5.22%–5.24% due 9/13–10/31/20073
  252,650   251,068 
Fannie Mae 4.75%–5.15% due 9/5–11/6/2007  240,200   239,200 
JPMorgan Chase & Co. 5.20%–5.22% due 9/24–10/19/2007  125,000   124,298 
Park Avenue Receivables Co., LLC 5.24% due 9/7–10/12/20073
  109,637   109,159 
Bank of America Corp. 5.225%–5.40% due 9/7–11/2/2007  210,800   210,040 
Variable Funding Capital Corp. 5.24%–5.97% due 9/6–10/17/20073
  195,300   194,573 
Wal-Mart Stores Inc. 5.19%–5.20% due 9/11–10/30/20073
  185,200   184,006 
International Lease Finance Corp. 5.20%–5.27% due 9/20–10/31/2007  149,900   148,947 
AIG Funding, Inc. 5.20% due 9/10/2007  25,000   24,964 
IBM International Group Capital LLC 5.20%–5.22% due 10/30/20073
  80,000   79,292 
IBM Corp. 5.205% due 9/5/20073
  31,900   31,878 
IBM Capital Inc. 5.19% due 9/10/20073
  29,100   29,058 
E.I. duPont de Nemours and Co. 5.23%–5.32% due 9/18–9/19/20073
  90,000   89,757 
Private Export Funding Corp. 5.21% due 10/23–10/24/20073
  81,000   80,368 
FCAR Owner Trust I 5.25%–5.27% due 9/19–10/15/2007  75,000   74,584 
Honeywell International Inc. 5.17%–5.26% due 9/10–11/7/20073
  71,700   71,316 
Clipper Receivables Co., LLC 5.25% due 9/6/20073
  69,400   69,339 
Paccar Financial Corp. 5.20%–5.22% due 9/18–10/4/2007  68,500   68,257 
John Deere Capital Corp. 5.22%–5.29% due 10/4–10/31/20073
  67,400   66,941 
Abbott Laboratories 5.20%–5.22% due 10/2–10/24/20073
  56,600   56,276 
Johnson & Johnson 5.19%–5.20% due 9/4–9/7/20073
  51,100   51,064 
CIT Group, Inc. 5.28% due 9/12/20073
  40,000   39,929 
Federal Farm Credit Banks 5.11% due 10/9/2007  38,200   37,988 
AT&T Inc. 5.22%–5.25% due 9/12–9/27/20073
  36,800   36,665 
Caterpillar Financial Services Corp. 5.23% due 9/17–9/24/2007  35,900   35,799 
NetJets Inc. 5.23% due 10/31/20073
  35,800   35,468 
Prudential Funding, LLC 5.21% due 9/17/2007  27,300   27,233 
United Parcel Service Inc. 5.18% due 9/28/20073
  25,000   24,903 
Kimberly-Clark Worldwide Inc. 5.25% due 10/9/20073
  25,000   24,856 
HSBC Finance Corp. 5.21% due 9/5/2007  23,700   23,683 
Lowe’s Co.s, Inc. 5.27% due 9/12/2007  20,000   19,965 
Three Pillars Funding, LLC 5.26% due 10/15/20073
  17,501   17,378 
Hewlett-Packard Co. 5.26% due 9/27/20073
  15,000   14,941 
Harley-Davidson Funding Corp. 5.24% due 9/27/20073
  7,200   7,173 
International Bank for Reconstruction and Development 5.14% due 9/14/2007  4,800   4,790 
         
         
Total short-term securities (cost: $4,103,779,000)
      
4,104,257
 
         
Total investment securities (cost: $20,848,950,000)
      
27,565,026
 
Other assets less liabilities
      
18,796
 
         
Net assets
     $
27,583,822
 

“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

1Security did not produce income during the last 12 months.
2Represents an affiliated company as defined under the Investment Company Act of 1940.
3Restricted security that can be resold only to institutional investors. In practice, this security is typically as liquid as unrestricted securities
 in the portfolio. The total value of all such restricted securities was $2,196,266,000, which represented 7.96% of the net assets of the fund.


 


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information
is contained in each fund’s prospectus, which can be obtained from a financial adviser and should be read carefully before investing.

 
 
 
MFGEFP-902-1007O-S10929

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 directors since the Registrant last submitted a proxy statement to its shareholders.  The procedures are as follows.  The Registrant has a nominating 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 directors. 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 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 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, as amended, 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.

 AMCAP FUND, INC.
  
 
By /s/ Claudia P. Huntington
 
Claudia P. Huntington, President and
Principal Executive Officer
  
 Date: November 8, 2007



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/ Claudia P. Huntington
Claudia P. Huntington, President and
Principal Executive Officer
 
Date: November 8, 2007



By /s/ Karl C. Grauman
Karl C. Grauman, Treasurer and
Principal Financial Officer
 
Date: November 8, 2007