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Amcap Fund (CAFBX)

Filed: 31 Oct 12, 12:00am
 
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
(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, 2012





Vincent P. Corti
AMCAP Fund
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
 
 
 
 
 

AMCAP Fund®
 
 
[photo of young corn plant in the rain]
 
Semi-annual report for the six months ended August 31, 2012
 
 
AMCAP Fund seeks long-term growth of capital by investing primarily in U.S. companies that have solid long-term growth records and the potential for good future growth.

This fund is one of more than 40 offered by American Funds, which is one of the nation’s largest mutual fund families. For more than 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.

Here are total returns on a $1,000 investment with all distributions reinvested for periods ended September 30, 2012 (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     0.60%  7.36%
Cumulative total return  18.18%  3.03%  103.48%

The total annual fund operating expense ratio was 0.73% for Class A shares as of the prospectus dated May 1, 2012.
 
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

Results for other share classes can be found on page 31.

Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
 
 
Fellow investors:
 
[photo of young corn plant in the rain]
Over the six months ended August 31, 2012, the U.S. stock market was volatile amid concerns about the fallout from Europe’s fiscal problems, mixed signals from the domestic economy, and a slowdown in corporate profit growth. However, stocks finished the period higher, in part due to investors’ expectations for a third round of stimulus by the Federal Reserve.

Against this backdrop, AMCAP Fund had a total return of 0.9%, compared with 4.1% for the unmanaged Standard & Poor’s 500 Composite Index — a broad measure of mostly large U.S. stocks — and 1.9% for the Lipper Growth Funds Index, as shown in the chart below.

For the 12 months ended August 31, 2012, AMCAP posted a total return of 13.6%, matching the Lipper Growth Funds Index, while the S&P 500 advanced 18.0%. Over longer periods, the fund exceeded both indexes. For the past five years, AMCAP had an average annual total return of 1.8%, compared with 1.3% for the S&P 500 and 0.4% for the Lipper index. Over its 45-year lifetime, the fund had an average annual total return of 11.1%, compared with 9.5% for the S&P 500 and 8.5% for the Lipper index.

Investment results analysis

Information technology has historically been an important sector for AMCAP and remains so, but in the recent period the health care sector rose to 18.2% of the fund, compared to information technology at 16.3%. The reason for this had to do with a strong showing from several of our health care holdings as well as additional purchases in the sector. Most holdings in the health care sector continue to do well, especially those in the biotechnology industry. Top 10 holdings Gilead Sciences (now the fund’s largest holding), Biogen Idec and Amgen remain solid growth companies coming out with promising new drugs that have either already been approved by the Food and Drug Administration or are expected to be soon.

[Begin Sidebar]
Results at a glance               
For periods ended August 31, 2012, with all distributions reinvested               
                
  Total returns   Average annual total returns 
  6 months  1 year  5 years  10 years  Lifetime 
              (since 5/1/67) 
AMCAP (Class A shares)  0.9%  13.6%  1.8%  6.8%  11.1%
                     
Standard & Poor’s 500                    
    Composite Index*
  4.1   18.0   1.3   6.5   9.5 
                     
Lipper Growth Funds Index  1.9   13.6   0.4   5.6   8.5 
                     
*The S&P 500 is unmanaged and, therefore, has no expenses.                    

[End Sidebar]

The information technology sector had mixed results. For instance, Apple and Oracle, which are among the fund’s 10 largest holdings, had positive returns, with the former benefiting from continuing growth in its base business as well as rising expectations for the latest version of its iPhone. However, shares of Texas Instruments and Adobe Systems declined.

Elsewhere, the energy and materials sectors (which together account for 13.5% of the fund) detracted from returns as the price of oil and other commodities declined amid a slowdown in global demand while supplies remain high. Among the largest detractors were oil and gas producer Apache in the energy sector and specialty chemicals company Celanese in the materials sector.

The fund’s cash position, which increased from 11.5% to 14.8% (including other short-term securities), held back returns as the broader market advanced. However, given the risk of continued volatility in the market, we believe that there is some value to having this “dry powder” in the fund in the event that better market opportunities present themselves. Among the risks that remain are uncertainty about the outcome of the debt crisis in Europe as well as the debt and spending issues here in the U.S.

In periods like this, our long-term focus on companies and their inherent worth is critical to helping us identify and invest in those that represent a good value over the long run. We thank you for taking a long-term perspective, which is particularly important at this time in order to separate short-term price fluctuations from fundamental growth opportunities. We appreciate your support of these efforts in AMCAP Fund.

Cordially,

/s/ Claudia P. Huntington

Claudia P. Huntington
Vice Chairman of the Board


/s/ Timothy D. Armour

Timothy D. Armour
President


October 15, 2012

For current information about the fund, visit americanfunds.com.
 
 
 
Summary investment portfolio   August 31, 2012
unaudited
 
The following summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings.  See page 35 for details on how to obtain a complete schedule of portfolio holdings.
 
[begin pie chart]
Industry sector diversification 
Percent of net assets
 
    
Health Care  18.21%
Information Technology  16.33 
Consumer Discretionary  13.60 
Energy  9.27 
Industrials  8.67 
Other industries  19.00 
Bonds & notes  0.15 
Short-term securities & other assets less liabilities  14.77 
[end pie chart]
 
 
        Percent 
     Value  of net 
Common stocks  - 85.08% Shares   (000) assets 
           
Health care  - 18.21%          
Gilead Sciences, Inc. (1)  11,624,600  $670,623   2.72%
Biogen Idec Inc. (1)  3,351,400   491,282   1.99 
Amgen Inc.  4,405,000   369,668   1.50 
St. Jude Medical, Inc.  7,480,000   282,445   1.15 
Hologic, Inc. (1)  12,374,100   242,904   .99 
Endo Health Solutions Inc. (1)  (2)  7,600,000   241,832   .98 
Forest Laboratories, Inc. (1)  6,630,000   229,995   .93 
Alexion Pharmaceuticals, Inc. (1)  2,125,000   227,821   .92 
McKesson Corp.  2,250,000   195,997   .80 
BioMarin Pharmaceutical Inc. (1)  4,683,370   174,877   .71 
Edwards Lifesciences Corp. (1)  1,676,600   171,198   .70 
Other securities      1,188,446   4.82 
       4,487,088   18.21 
             
Information technology  - 16.33%            
Microsoft Corp.  20,510,000   632,118   2.56 
Apple Inc.  761,200   506,381   2.05 
Oracle Corp.  13,165,000   416,672   1.69 
Adobe Systems Inc. (1)  8,641,200   270,210   1.10 
Texas Instruments Inc.  8,811,500   255,886   1.04 
Accenture PLC, Class A  3,250,000   200,200   .81 
Avago Technologies Ltd.  5,168,500   189,012   .77 
Other securities      1,554,536   6.31 
       4,025,015   16.33 
             
Consumer discretionary  - 13.60%            
DIRECTV (1)  10,575,000   550,852   2.24 
Comcast Corp., Class A  12,013,900   402,826   1.63 
Garmin Ltd.  5,199,000   209,780   .85 
Johnson Controls, Inc.  7,052,494   191,898   .78 
Time Warner Cable Inc.  2,095,613   186,132   .75 
Time Warner Inc.  4,433,333   184,205   .75 
Tractor Supply Co.  1,900,000   181,412   .74 
Netflix, Inc. (1)  (2)  3,028,300   180,850   .73 
YUM! Brands, Inc.  2,785,000   177,460   .72 
News Corp., Class A  7,059,500   165,122   .67 
Other securities      921,896   3.74 
       3,352,433   13.60 
             
Energy  - 9.27%            
Schlumberger Ltd.  6,556,940   474,591   1.93 
EOG Resources, Inc.  4,110,100   445,124   1.81 
Baker Hughes Inc.  6,159,401   280,869   1.14 
Apache Corp.  2,973,000   254,935   1.03 
FMC Technologies, Inc. (1)  5,000,000   234,200   .95 
Other securities      594,825   2.41 
       2,284,544   9.27 
             
Industrials  - 8.67%            
Precision Castparts Corp.  1,695,000   273,031   1.11 
Union Pacific Corp.  1,728,350   209,891   .85 
United Parcel Service, Inc., Class B  2,630,000   194,120   .79 
Verisk Analytics, Inc., Class A (1)  3,570,000   173,216   .70 
Other securities      1,286,768   5.22 
       2,137,026   8.67 
             
Financials  - 6.24%            
Capital One Financial Corp.  4,245,700   240,009   .97 
JPMorgan Chase & Co.  6,400,000   237,696   .96 
PNC Financial Services Group, Inc.  2,595,000   161,305   .66 
Wells Fargo & Co.  3,500,000   119,105   .48 
Other securities      780,361   3.17 
       1,538,476   6.24 
             
Materials  - 4.20%            
Celanese Corp., Series A  7,273,108   278,269   1.13 
AptarGroup, Inc.  (2)  4,326,000   219,112   .89 
Other securities      536,911   2.18 
       1,034,292   4.20 
             
Consumer staples  - 4.03%            
CVS/Caremark Corp.  6,750,000   307,462   1.25 
Philip Morris International Inc.  2,500,000   223,250   .91 
Other securities      461,747   1.87 
       992,459   4.03 
             
Telecommunication services  - 2.11%            
Crown Castle International Corp. (1)  3,237,600   205,458   .83 
MetroPCS Communications, Inc. (1)  16,814,500   163,605   .67 
Other securities      149,583   .61 
       518,646   2.11 
             
Miscellaneous  -  2.42%            
Other common stocks in initial period of acquisition      596,698   2.42 
             
             
Total common stocks (cost: $15,512,856,000)      20,966,677   85.08 
             
             
             
          Percent 
      Value  of net 
Bonds & notes  - 0.15%      (000) assets 
             
Financials - 0.15%            
Other securities      36,208   .15 
             
             
Total bonds & notes (cost: $31,220,000)      36,208   .15 
             
             
             
  Principal      Percent 
  amount  Value  of net 
Short-term securities  - 14.82%  (000)  (000) assets 
             
             
Freddie Mac 0.10%-0.19% due 10/1/2012-6/3/2013 $859,208   858,790   3.48 
U.S. Treasury Bills 0.111%-0.194% due 9/13/2012-6/27/2013  585,250   585,043   2.37 
Federal Home Loan Bank 0.115%-0.22% due 9/12/2012-7/17/2013  439,000   438,791   1.78 
Fannie Mae 0.10%-0.18% due 9/26/2012-7/1/2013  394,000   393,801   1.60 
Federal Farm Credit Banks 0.13%-0.22% due 10/29/2012-7/18/2013  317,100   316,814   1.29 
Procter & Gamble Co. 0.14% due 10/30-11/13/2012 (3)  167,200   167,155   .68 
Wells Fargo & Co. 0.16%-0.18% due 9/18-11/16/2012  75,000   74,975     
Variable Funding Capital Company LLC 0.15%-0.20% due 9/7-11/16/2012 (3)  67,200   67,189   .58 
Chariot Funding, LLC 0.21% due 9/25/2012 (3)  17,300   17,298     
Jupiter Securitization Co., LLC 0.18% due 9/5/2012 (3)  15,000   15,000   .13 
Other securities      718,471   2.91 
             
             
Total short-term securities (cost: $3,653,142,000)      3,653,327   14.82 
             
             
Total investment securities (cost: $19,197,218,000)      24,656,212   100.05 
Other assets less liabilities      (11,114)  (.05)
             
Net assets     $24,645,098   100.00%
 
As permitted by U.S. Securities and Exchange Commission regulations, "Miscellaneous" securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
    
"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio. 
 
 
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. The value of the fund's affiliated-company holdings is either shown in the summary investment portfolio or included in the value of "Other securities" under the respective industry sectors. Further details on such holdings and related transactions during the six months ended August 31, 2012, appear below.
 
  
Beginning
shares
  Additions  Reductions  
Ending
shares
  
Dividend
income
(000)
  
Value of
affiliates at 8/31/2012 (000)
 
Endo Health Solutions Inc. (1)  7,300,000   300,000   -   7,600,000  $-  $241,832 
AptarGroup, Inc.  2,757,056   1,568,944   -   4,326,000   1,777   219,112 
Netflix, Inc. (1)  -   3,028,300   -   3,028,300   -   180,850 
MITIE Group PLC  22,902,000   -   -   22,902,000   1,874   103,967 
Logitech International SA (1)  11,000,000   -   -   11,000,000   -   101,530 
Rovi Corp. (1)  4,431,500   2,008,500   -   6,440,000   -   98,790 
Polypore International, Inc. (1) (4)  1,592,211   1,427,789   -   3,020,000   -   97,908 
Texas Roadhouse, Inc.  4,557,200   -   -   4,557,200   820   78,247 
Hologic, Inc. (1) (5)  13,774,100   -   1,400,000   12,374,100   -   - 
                  $4,471  $1,122,236 
 
 
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) Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $704,917,000, which represented 2.86% of the net assets of the fund.
(4) This security was an unaffiliated issuer in its initial period of acquisition at 2/29/2012; it was not publicly disclosed. 
(5) Unaffiliated issuer at 8/31/2012.   
    
    
See Notes to Financial Statements   
 
 
Financial statements
 
Statement of assets and liabilities    unaudited 
at August 31, 2012  (dollars in thousands) 
       
Assets:      
 Investment securities, at value:      
  Unaffiliated issuers (cost: $18,073,856) $23,533,976    
  Affiliated issuers (cost: $1,123,362)  1,122,236  $24,656,212 
 Cash      83 
 Receivables for:        
  Sales of investments  10,994     
  Sales of fund's shares  38,508     
  Dividends and interest  22,860   72,362 
       24,728,657 
Liabilities:        
 Payables for:        
  Purchases of investments  14,594     
  Repurchases of fund's shares  46,111     
  Investment advisory services  6,687     
  Services provided by related parties  13,966     
  Trustees' deferred compensation  1,999     
  Other  202   83,559 
Net assets at August 31, 2012     $24,645,098 
         
Net assets consist of:        
 Capital paid in on shares of beneficial interest     $19,376,381 
 Undistributed net investment income      43,731 
 Accumulated net realized loss      (234,010)
 Net unrealized appreciation      5,458,996 
Net assets at August 31, 2012     $24,645,098 
 
 
 (dollars and shares in thousands, except per-share amounts) 
          
Shares of beneficial interest issued and outstanding (no stated par value) -       
unlimited shares authorized (1,186,735 total shares outstanding)         
  Net assets  Shares outstanding  
Net asset
value per share
 
Class A $15,170,725   726,686  $20.88 
Class B  283,032   14,248   19.86 
Class C  1,098,182   55,757   19.70 
Class F-1  1,784,506   85,867   20.78 
Class F-2  1,093,741   52,328   20.90 
Class 529-A  771,449   37,140   20.77 
Class 529-B  41,177   2,078   19.82 
Class 529-C  198,236   9,998   19.83 
Class 529-E  41,181   2,006   20.52 
Class 529-F-1  43,180   2,076   20.80 
Class R-1  60,300   3,008   20.04 
Class R-2  414,177   20,688   20.02 
Class R-3  706,371   34,295   20.60 
Class R-4  564,147   27,161   20.77 
Class R-5  891,973   42,541   20.97 
Class R-6  1,482,721   70,858   20.93 
             
             
See Notes to Financial Statements            
 
 
Statement of operations    unaudited 
for the six months ended August 31, 2012  (dollars in thousands) 
       
Investment income:      
 Income:      
  Dividends (net of non-U.S. taxes of $998;      
   also includes $4,471 from affiliates) $136,769    
  Interest  3,775  $140,544 
         
 Fees and expenses*:        
  Investment advisory services  38,918     
  Distribution services  32,964     
  Transfer agent services  17,403     
  Administrative services  2,979     
  Reports to shareholders  881     
  Registration statement and prospectus  465     
  Trustees' compensation  250     
  Auditing and legal  16     
  Custodian  83     
  State and local taxes  146     
  Other  561   94,666 
 Net investment income      45,878 
         
Net realized gain and unrealized depreciation        
 on investments and currency:        
 Net realized gain (loss) on:        
  Investments (includes $2,599 net loss from affiliates)  638,533     
  Currency transactions  (45)  638,488 
 Net unrealized depreciation on investments      (468,357)
  Net realized gain and unrealized depreciation        
   on investments and currency      170,131 
Net increase in net assets resulting        
 from operations     $216,009 
         
(*) 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, 2012*  Year ended February 29, 2012 
Operations:        
 Net investment income $45,878  $98,686 
 Net realized gain on investments and currency transactions  638,488   1,662,333 
 Net unrealized depreciation on investments and currency translations  (468,357)  (551,997)
  Net increase in net assets resulting from operations  216,009   1,209,022 
         
Dividends paid to shareholders from net investment income  (97,673)  (82,103)
         
Net capital share transactions  350,907   (151,811)
         
Total increase in net assets  469,243   975,108 
         
Net assets:        
 Beginning of period  24,175,855   23,200,747 
 End of period (including undistributed        
  net investment income: $43,731 and $95,526, respectively) $24,645,098  $24,175,855 
         
*Unaudited.        
         
See Notes to Financial Statements        
 
 
 
Notes to financial statements                                                                                                    
       unaudited

1.  Organization

AMCAP Fund (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 that have solid long-term growth records and the potential for good future growth.

The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are further described below:

Share classInitial sales chargeContingent deferred sales charge upon redemptionConversion feature
Classes A and 529-AUp to 5.75%None (except 1% for certain redemptions within one year of purchase without an initial sales charge)None
Classes B and 529-B*NoneDeclines from 5% to 0% for redemptions within six years of purchaseClasses B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class CNone1% for redemptions within one year of purchaseClass C converts to Class F-1 after 10 years
Class 529-CNone1% for redemptions within one year of purchaseNone
Class 529-ENoneNoneNone
Classes F-1, F-2 and 529-F-1NoneNoneNone
Classes R-1, R-2, R-3, R-4, R-5 and R-6NoneNone
None
 
*Class B and 529-B shares of the fund are not available for purchase.

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.

2.  Significant accounting policies

The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below as well as the valuation policies described in the next section on valuation.

Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations – Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders Dividends and distributions paid to shareholders are recorded on the ex-dividend date.

Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.

3.  Valuation

Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.


Methods and inputs –The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.

Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the 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 classExamples of standard inputs
AllBenchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”)
Corporate bonds & notes; convertible securitiesStandard inputs and underlying equity of the issuer
Bonds & notes of governments & government agenciesStandard inputs and interest rate volatilities

When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.

Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by fund’s investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund’s board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Processes and structure– The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.

The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications – The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination 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 August 31, 2012 (dollars in thousands):
 
  Investment securities 
  Level 1(*)  Level 2  Level 3  Total 
Assets:            
Common stocks:            
Health care $4,487,088  $-  $-  $4,487,088 
Information technology  4,025,015   -   -   4,025,015 
Consumer discretionary  3,352,433   -   -   3,352,433 
Energy  2,284,544   -   -   2,284,544 
Industrials  2,137,026   -   -   2,137,026 
Financials  1,538,476   -   -   1,538,476 
Materials  1,034,292   -   -   1,034,292 
Consumer staples  992,459   -   -   992,459 
Telecommunication services  518,646   -   -   518,646 
Miscellaneous  596,698   -   -   596,698 
Bonds & notes  -   36,208   -   36,208 
Short-term securities  -   3,653,327   -   3,653,327 
Total $20,966,677  $3,689,535  $-  $24,656,212 
                 
                 
* Securities with a market value of $629,185,000, which represented 2.55% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading.
 
4.  Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.

Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
 
5.  Taxation and distributions
 
Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended August 31, 2012, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.
 
The fund is not subject to examination by U.S. federal tax authorities for tax years before 2008 and by state tax authorities for tax years before 2007.

Non-U.S. taxation – Dividend income is recorded net of non-U.S. taxes paid.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; deferred expenses; and net capital losses. 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 29, 2012, the components of distributable earnings on a tax basis were as follows:

 (dollars in thousands) 
Undistributed ordinary income $97,454 
Capital loss carryforward expiring 2018*  (872,498)
     
*The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after February 28, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses

As of August 31, 2012, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

  (dollars in thousands) 
Gross unrealized appreciation on investment securities  6,172,699 
Gross unrealized depreciation on investment securities  (713,705)
Net unrealized appreciation on investment securities  5,458,994 
Cost of investment securities  19,197,218 


Tax-basis distributions paid to shareholders from ordinary income were as follows (dollars in thousands):
 
Share class Six months ended August 31, 2012  
Year ended
February 29, 2012
 
Class A $61,089  $53,808 
Class B  -   - 
Class C  -   - 
Class F-1  7,357   6,172 
Class F-2  6,626   5,015 
Class 529-A  2,923   2,302 
Class 529-B  -   - 
Class 529-C  -   - 
Class 529-E  64   44 
Class 529-F-1  243   191 
Class R-1  -   - 
Class R-2  -   - 
Class R-3  1,114   660 
Class R-4  2,137   1,951 
Class R-5  5,966   5,700 
Class R-6  10,154   6,260 
Total $97,673  $82,103 
 
6.  Fees and transactions with related parties
 
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares, and American Funds Service Company® ("AFS"), the fund’s transfer agent.

Investment advisory services – The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.485% on the first $1 billion of daily net assets and decreasing to 0.290% on such assets in excess of $27 billion. For the six months ended August 31, 2012, the investment advisory services fee was $38,918,000, which was equivalent to an annualized rate of 0.320% 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 plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25% is not exceeded. As of August 31, 2012, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.

Share classCurrently approved limitsPlan limits
Class A0.25%0.25%
Class 529-A0.250.50
Classes B and 529-B1.001.00
Classes C, 529-C and R-11.001.00
Class R-20.751.00
Classes 529-E and R-30.500.75
Classes F-1, 529-F-1 and R-40.250.50


Transfer agent services The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.

Administrative services – The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, F, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, Class A shares pay an annual fee of 0.01% and Class C, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets.

529 plan services – Each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.

Class-specific expenses under the agreements described above for the six months ended August 31, 2012, were as follows (dollars in thousands):
 
Share class Distribution services  Transfer agent services  Administrative services  
529 plan
services
 
Class A $17,321  $12,291  $754  Not applicable 
Class B  1,616   266  Not applicable  Not applicable 
Class C  5,562   892   279  Not applicable 
Class F-1  2,181   829   438  Not applicable 
Class F-2 Not applicable   548   254  Not applicable 
Class 529-A  790   481   188  $374 
Class 529-B  224   32   11   23 
Class 529-C  960   133   48   96 
Class 529-E  101   18   10   20 
Class 529-F-1  -   27   11   21 
Class R-1  303   34   15  Not applicable 
Class R-2  1,544   768   104  Not applicable 
Class R-3  1,702   586   171  Not applicable 
Class R-4  660   272   133  Not applicable 
Class R-5 Not applicable   222   220  Not applicable 
Class R-6 Not applicable   4   343  Not applicable 
Total class-specific expenses $32,964  $17,403  $2,979  $534 

Trustees’ deferred compensation –Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $250,000, shown on the accompanying financial statements, includes $183,000 in current fees (either paid in cash or deferred) and a net increase of $67,000 in the value of the deferred amounts.

Affiliated officers and trustees – Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or trustees received any compensation directly from the fund.
 
7.  Capital share transactions
 
Capital share transactions in the fund were as follows (dollars and shares in thousands):
 
  
Sales(*)
  
Reinvestments of
dividends
  
Repurchases(*)
  
Net increase
(decrease)
 
Share class Amount  Shares  Amount  Shares  Amount  Shares  Amount  Shares 
Six months ended August 31, 2012                      
Class A $1,024,397   49,842  $59,400   2,974  $(1,058,086)  (51,436) $25,711   1,380 
Class B  7,027   359   -   -   (102,207)  (5,256)  (95,180)  (4,897)
Class C  82,025   4,223   -   -   (126,355)  (6,535)  (44,330)  (2,312)
Class F-1  259,928   12,740   7,194   362   (221,774)  (10,871)  45,348   2,231 
Class F-2  198,833   9,699   6,425   322   (85,998)  (4,178)  119,260   5,843 
Class 529-A  71,900   3,515   2,923   147   (39,345)  (1,924)  35,478   1,738 
Class 529-B  845   43   -   -   (9,660)  (497)  (8,815)  (454)
Class 529-C  20,096   1,027   -   -   (11,757)  (602)  8,339   425 
Class 529-E  3,152   156   64   3   (1,961)  (97)  1,255   62 
Class 529-F-1  4,347   210   242   12   (2,931)  (143)  1,658   79 
Class R-1  12,433   628   -   -   (8,751)  (448)  3,682   180 
Class R-2  55,921   2,832   -   -   (62,343)  (3,165)  (6,422)  (333)
Class R-3  134,332   6,660   1,113   57   (99,987)  (4,937)  35,458   1,780 
Class R-4  125,257   6,111   2,135   107   (100,587)  (4,868)  26,805   1,350 
Class R-5  119,197   5,773   5,919   295   (107,297)  (5,241)  17,819   827 
Class R-6  277,606   13,487   10,154   508   (102,919)  (4,961)  184,841   9,034 
Total net increase                                
   (decrease) $2,397,296   117,305  $95,569   4,787  $(2,141,958)  (105,159) $350,907   16,933 
                                 
                                 
Year ended February 29, 2012                             
Class A $2,007,599   104,478  $51,984   2,725  $(2,582,400)  (134,805) $(522,817)  (27,602)
Class B  18,713   1,016   -   -   (212,019)  (11,627)  (193,306)  (10,611)
Class C  158,817   8,708   -   -   (263,625)  (14,537)  (104,808)  (5,829)
Class F-1  474,596   24,844   5,821   306   (473,482)  (24,817)  6,935   333 
Class F-2  430,886   22,318   4,647   244   (175,088)  (9,216)  260,445   13,346 
Class 529-A  137,121   7,176   2,301   121   (69,903)  (3,661)  69,519   3,636 
Class 529-B  2,559   138   -   -   (21,743)  (1,196)  (19,184)  (1,058)
Class 529-C  35,806   1,951   -   -   (23,278)  (1,271)  12,528   680 
Class 529-E  6,531   345   44   2   (3,908)  (206)  2,667   141 
Class 529-F-1  13,997   724   191   10   (5,469)  (287)  8,719   447 
Class R-1  18,458   993   -   -   (15,548)  (834)  2,910   159 
Class R-2  106,946   5,788   -   -   (137,269)  (7,430)  (30,323)  (1,642)
Class R-3  201,128   10,608   659   35   (197,832)  (10,456)  3,955   187 
Class R-4  199,452   10,378   1,949   103   (182,503)  (9,619)  18,898   862 
Class R-5  293,705   15,105   5,657   295   (329,800)  (17,445)  (30,438)  (2,045)
Class R-6  463,837   24,210   6,260   327   (107,608)  (5,596)  362,489   18,941 
Total net increase                                
   (decrease) $4,570,151   238,780  $79,513   4,168  $(4,801,475)  (253,003) $(151,811)  (10,055)
                                 
                                 
* Includes exchanges between share classes of the fund.
                     
 
8.  Investment transactions
 
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $2,361,766,000 and $2,932,907,000, respectively, during the six months ended August 31, 2012.


Financial highlights
 
 
      
Income (loss) from investment operations(1)
  Dividends and distributions                   
   Net asset value, beginning of period  Net investment income (loss)  Net gains (losses) on securities (both realized and unrealized)  Total from investment operations  Dividends (from net investment income)  Distributions (from capital gains)  Total dividends and distributions  Net asset value, end of period  
Total
return(2)(3)
  Net assets, end of period (in millions)  
Ratio of expenses to average net assets before reimbursements/
waivers
  
Ratio of expenses to average net assets after reimbursements/
waivers(3)
  
Ratio of net income (loss) to average net assets(3)
 
                                         
Class A:
Six months ended 8/31/2012(4)(5)
 $20.78  $.04  $.14  $.18  $(.08) $-  $(.08) $20.88   .90% $15,171   .74%(6)  .74%(6)  .42%(6)
 Year ended 2/29/2012  19.78   .10   .97   1.07   (.07)  -   (.07)  20.78   5.45   15,072   .73   .73   .50 
 Year ended 2/28/2011  16.55   .08   3.23   3.31   (.08)  -   (.08)  19.78   20.09   14,891   .73   .73   .48 
 Year ended 2/28/2010  10.44   .08   6.19   6.27   (.16)  -   (.16)  16.55   60.46   12,973   .78   .78   .57 
 Year ended 2/28/2009  18.41   .16   (7.43)  (7.27)  -   (.70)  (.70)  10.44   (40.97)  8,687   .74   .71   1.03 
 Year ended 2/29/2008  20.29   .25   (.77)  (.52)  (.24)  (1.12)  (1.36)  18.41   (3.14)  16,387   .68   .65   1.21 
                                                      
Class B:
Six months ended 8/31/2012(4)(5)
  19.77   (.03)  .12   .09   -   -   -   19.86   .46   283   1.50(6)  1.50(6)  (.35)(6)
 Year ended 2/29/2012  18.89   (.05)  .93   .88   -   -   -   19.77   4.66   379   1.50   1.50   (.27)
 Year ended 2/28/2011  15.85   (.05)  3.09   3.04   -   -   -   18.89   19.18   562   1.50   1.50   (.29)
 Year ended 2/28/2010  9.98   (.03)  5.93   5.90   (.03)  -   (.03)  15.85   59.16   632   1.55   1.55   (.20)
 Year ended 2/28/2009  17.75   .04   (7.11)  (7.07)  -   (.70)  (.70)  9.98   (41.38)  499   1.50   1.48   .26 
 Year ended 2/29/2008  19.59   .09   (.76)  (.67)  (.05)  (1.12)  (1.17)  17.75   (3.92)  1,031   1.45   1.42   .44 
                                                      
Class C:
Six months ended 8/31/2012(4)(5)
  19.60   (.04)  .14   .10   -   -   -   19.70   .51   1,098   1.54(6)  1.54(6)  (.39)(6)
 Year ended 2/29/2012  18.74   (.05)  .91   .86   -   -   -   19.60   4.59   1,138   1.52   1.52   (.30)
 Year ended 2/28/2011  15.72   (.05)  3.07   3.02   -   -   -   18.74   19.21   1,197   1.52   1.52   (.31)
 Year ended 2/28/2010  9.90   (.03)  5.88   5.85   (.03)  -   (.03)  15.72   59.18   1,065   1.56   1.56   (.21)
 Year ended 2/28/2009  17.63   .03   (7.06)  (7.03)  -   (.70)  (.70)  9.90   (41.44)  736   1.52   1.49   .24 
 Year ended 2/29/2008  19.46   .08   (.74)  (.66)  (.05)  (1.12)  (1.17)  17.63   (3.93)  1,519   1.50   1.47   .39 
                                                      
Class F-1:
Six months ended 8/31/2012(4)(5)
  20.69   .04   .14   .18   (.09)  -   (.09)  20.78   .88   1,785   .73(6)  .73(6)  .43(6)
 Year ended 2/29/2012  19.69   .10   .97   1.07   (.07)  -   (.07)  20.69   5.49   1,730   .73   .73   .50 
 Year ended 2/28/2011  16.48   .08   3.22   3.30   (.09)  -   (.09)  19.69   20.10   1,641   .72   .72   .48 
 Year ended 2/28/2010  10.39   .09   6.16   6.25   (.16)  -   (.16)  16.48   60.46   1,421   .74   .74   .61 
 Year ended 2/28/2009  18.31   .16   (7.38)  (7.22)  -   (.70)  (.70)  10.39   (40.92)  1,077   .70   .67   1.06 
 Year ended 2/29/2008  20.20   .25   (.78)  (.53)  (.24)  (1.12)  (1.36)  18.31   (3.19)  2,492   .68   .65   1.20 
                                                      
Class F-2:
Six months ended 8/31/2012(4)(5)
  20.83   .07   .14   .21   (.14)  -   (.14)  20.90   1.02   1,094   .49(6)  .49(6)  .66(6)
 Year ended 2/29/2012  19.83   .14   .98   1.12   (.12)  -   (.12)  20.83   5.73   968   .49   .49   .74 
 Year ended 2/28/2011  16.60   .12   3.24   3.36   (.13)  -   (.13)  19.83   20.38   657   .49   .49   .71 
 Year ended 2/28/2010  10.46   .12   6.20   6.32   (.18)  -   (.18)  16.60   60.82   367   .52   .52   .79 
 
Period from 8/1/2008 to 2/28/2009(4)
  16.52   .10   (6.16)  (6.06)  -   -   -   10.46   (36.68)  87   .50(6)  .48(6)  1.50(6)
                                                      
Class 529-A:
Six months ended 8/31/2012(4)(5)
  20.68   .03   .14   .17   (.08)  -   (.08)  20.77   .84   772   .82(6)  .82(6)  .33(6)
 Year ended 2/29/2012  19.70   .08   .97   1.05   (.07)  -   (.07)  20.68   5.36   732   .80   .80   .42 
 Year ended 2/28/2011  16.49   .07   3.22   3.29   (.08)  -   (.08)  19.70   20.03   626   .79   .79   .41 
 Year ended 2/28/2010  10.41   .08   6.17   6.25   (.17)  -   (.17)  16.49   60.35   474   .83   .83   .51 
 Year ended 2/28/2009  18.36   .15   (7.40)  (7.25)  -   (.70)  (.70)  10.41   (40.97)  287   .79   .76   .98 
 Year ended 2/29/2008  20.25   .23   (.78)  (.55)  (.22)  (1.12)  (1.34)  18.36   (3.26)  467   .76   .73   1.12 
                                                      
Class 529-B:
Six months ended 8/31/2012(4)(5)
  19.73   (.05)  .14   .09   -   -   -   19.82   .46   41   1.62(6)  1.62(6)  (.47)(6)
 Year ended 2/29/2012  18.87   (.07)  .93   .86   -   -   -   19.73   4.56   50   1.61   1.61   (.38)
 Year ended 2/28/2011  15.85   (.06)  3.08   3.02   -   -   -   18.87   19.05   68   1.59   1.59   (.38)
 Year ended 2/28/2010  10.00   (.04)  5.93   5.89   (.04)  -   (.04)  15.85   59.02   72   1.64   1.64   (.29)
 Year ended 2/28/2009  17.81   .02   (7.13)  (7.11)  -   (.70)  (.70)  10.00   (41.47)  48   1.60   1.57   .17 
 Year ended 2/29/2008  19.65   .06   (.74)  (.68)  (.04)  (1.12)  (1.16)  17.81   (3.99)  84   1.57   1.54   .31 
                                                      
Class 529-C:
Six months ended 8/31/2012(4)(5)
  19.74   (.05)  .14   .09   -   -   -   19.83   .46   198   1.62(6)  1.62(6)  (.46)(6)
 Year ended 2/29/2012  18.88   (.07)  .93   .86   -   -   -   19.74   4.55   189   1.60   1.60   (.37)
 Year ended 2/28/2011  15.86   (.06)  3.08   3.02   -   -   -   18.88   19.04   168   1.58   1.58   (.38)
 Year ended 2/28/2010  10.00   (.04)  5.95   5.91   (.05)  -   (.05)  15.86   59.02   134   1.63   1.63   (.28)
 Year ended 2/28/2009  17.82   .03   (7.15)  (7.12)  -   (.70)  (.70)  10.00   (41.44)  83   1.59   1.57   .17 
 Year ended 2/29/2008  19.67   .06   (.74)  (.68)  (.05)  (1.12)  (1.17)  17.82   (4.00)  144   1.57   1.54   .31 
                                                      
Class 529-E:
Six months ended 8/31/2012(4)(5)
 $20.41  $.01  $.13  $.14  $(.03) $-  $(.03) $20.52   .70% $41   1.07%(6)  1.07%(6)  .08%(6)
 Year ended 2/29/2012  19.44   .03   .96   .99   (.02)  -   (.02)  20.41   5.12   40   1.07   1.07   .16 
 Year ended 2/28/2011  16.28   .02   3.18   3.20   (.04)  -   (.04)  19.44   19.68   35   1.08   1.08   .13 
 Year ended 2/28/2010  10.28   .03   6.10   6.13   (.13)  -   (.13)  16.28   59.86   27   1.13   1.13   .22 
 Year ended 2/28/2009  18.20   .10   (7.32)  (7.22)  -   (.70)  (.70)  10.28   (41.17)  17   1.09   1.06   .69 
 Year ended 2/29/2008  20.07   .17   (.76)  (.59)  (.16)  (1.12)  (1.28)  18.20   (3.50)  27   1.06   1.03   .82 
                                                      
Class 529-F-1:
Six months ended 8/31/2012(4)(5)
  20.73   .06   .13   .19   (.12)  -   (.12)  20.80   .93   43   .61(6)  .61(6)  .54(6)
 Year ended 2/29/2012  19.74   .12   .98   1.10   (.11)  -   (.11)  20.73   5.63   41   .59   .59   .63 
 Year ended 2/28/2011  16.52   .11   3.22   3.33   (.11)  -   (.11)  19.74   20.27   31   .58   .58   .62 
 Year ended 2/28/2010  10.43   .11   6.18   6.29   (.20)  -   (.20)  16.52   60.70   20   .63   .63   .72 
 Year ended 2/28/2009  18.36   .18   (7.41)  (7.23)  -   (.70)  (.70)  10.43   (40.86)  12   .59   .56   1.18 
 Year ended 2/29/2008  20.26   .27   (.77)  (.50)  (.28)  (1.12)  (1.40)  18.36   (3.07)  18   .56   .53   1.30 
                                                      
Class R-1:
Six months ended 8/31/2012(4)(5)
  19.94   (.03)  .13   .10   -   -   -   20.04   .50   60   1.50(6)  1.50(6)  (.34)(6)
 Year ended 2/29/2012  19.06   (.05)  .93   .88   -   -   -   19.94   4.62   56   1.50   1.50   (.27)
 Year ended 2/28/2011  15.99   (.05)  3.12   3.07   -   -   -   19.06   19.20   51   1.50   1.50   (.29)
 Year ended 2/28/2010  10.09   (.03)  6.00   5.97   (.07)  -   (.07)  15.99   59.14   40   1.53   1.53   (.19)
 Year ended 2/28/2009  17.95   .04   (7.20)  (7.16)  -   (.70)  (.70)  10.09   (41.36)  24   1.48   1.45   .29 
 Year ended 2/29/2008  19.80   .08   (.76)  (.68)  (.05)  (1.12)  (1.17)  17.95   (3.93)  40   1.50   1.47   .39 
                                                      
Class R-2:
Six months ended 8/31/2012(4)(5)
  19.92   (.03)  .13   .10   -   -   -   20.02   .50   414   1.49(6)  1.49(6)  (.34)(6)
 Year ended 2/29/2012  19.03   (.05)  .94   .89   -   -   -   19.92   4.68   419   1.49   1.49   (.27)
 Year ended 2/28/2011  15.97   (.05)  3.11   3.06   -   -   -   19.03   19.16   431   1.50   1.50   (.30)
 Year ended 2/28/2010  10.08   (.04)  5.98   5.94   (.05)  -   (.05)  15.97   59.02   383   1.60   1.60   (.25)
 Year ended 2/28/2009  17.94   .03   (7.19)  (7.16)  -   (.70)  (.70)  10.08   (41.44)  238   1.59   1.57   .17 
 Year ended 2/29/2008  19.79   .08   (.76)  (.68)  (.05)  (1.12)  (1.17)  17.94   (3.95)  415   1.53   1.47   .38 
                                                      
Class R-3:
Six months ended 8/31/2012(4)(5)
  20.48   .01   .14   .15   (.03)  -   (.03)  20.60   .75   706   1.05(6)  1.05(6)  .10(6)
 Year ended 2/29/2012  19.50   .03   .97   1.00   (.02)  -   (.02)  20.48   5.14   666   1.04   1.04   .18 
 Year ended 2/28/2011  16.33   .03   3.17   3.20   (.03)  -   (.03)  19.50   19.66   631   1.05   1.05   .16 
 Year ended 2/28/2010  10.29   .04   6.11   6.15   (.11)  -   (.11)  16.33   60.02   541   1.08   1.08   .27 
 Year ended 2/28/2009  18.21   .11   (7.33)  (7.22)  -   (.70)  (.70)  10.29   (41.15)  349   1.05   1.02   .70 
 Year ended 2/29/2008  20.08   .18   (.78)  (.60)  (.15)  (1.12)  (1.27)  18.21   (3.51)  724   1.04   1.01   .85 
                                                      
Class R-4:
Six months ended 8/31/2012(4)(5)
  20.67   .04   .14   .18   (.08)  -   (.08)  20.77   .86   564   .74(6)  .74(6)  .42(6)
 Year ended 2/29/2012  19.68   .09   .98   1.07   (.08)  -   (.08)  20.67   5.50   534   .73   .73   .49 
 Year ended 2/28/2011  16.47   .08   3.21   3.29   (.08)  -   (.08)  19.68   20.07   491   .74   .74   .46 
 Year ended 2/28/2010  10.40   .08   6.16   6.24   (.17)  -   (.17)  16.47   60.42   378   .77   .77   .57 
 Year ended 2/28/2009  18.33   .16   (7.39)  (7.23)  -   (.70)  (.70)  10.40   (40.93)  252   .73   .70   1.04 
 Year ended 2/29/2008  20.22   .24   (.78)  (.54)  (.23)  (1.12)  (1.35)  18.33   (3.22)  528   .73   .70   1.16 
                                                      
Class R-5:
Six months ended 8/31/2012(4)(5)
  20.90   .07   .14   .21   (.14)  -   (.14)  20.97   1.04   892   .44(6)  .44(6)  .72(6)
 Year ended 2/29/2012  19.89   .15   .98   1.13   (.12)  -   (.12)  20.90   5.76   872   .43   .43   .79 
 Year ended 2/28/2011  16.64   .13   3.25   3.38   (.13)  -   (.13)  19.89   20.45   870   .44   .44   .77 
 Year ended 2/28/2010  10.50   .13   6.22   6.35   (.21)  -   (.21)  16.64   60.97   741   .47   .47   .89 
 Year ended 2/28/2009  18.45   .20   (7.45)  (7.25)  -   (.70)  (.70)  10.50   (40.77)  619   .43   .40   1.35 
 Year ended 2/29/2008  20.35   .30   (.77)  (.47)  (.31)  (1.12)  (1.43)  18.45   (2.93)  787   .43   .40   1.43 
                                                      
Class R-6:
Six months ended 8/31/2012(4)(5)
  20.86   .08   .14   .22   (.15)  -   (.15)  20.93   1.10   1,483   .39(6)  .39(6)  .77(6)
 Year ended 2/29/2012  19.85   .16   .99   1.15   (.14)  -   (.14)  20.86   5.84   1,290   .39   .39   .83 
 Year ended 2/28/2011  16.60   .14   3.24   3.38   (.13)  -   (.13)  19.85   20.50   851   .39   .39   .80 
 
Period from 5/1/2009 to 2/28/2010(4)
  13.04   .11   3.61   3.72   (.16)  -   (.16)  16.60   28.85   380   .42(6)  .42(6)  .90(6)
 
 
  
Six months ended
August 31,
  Year ended February 28 or 29 
  
2012(4)(5)
  2012  2011  2010  2009  2008 
                   
Portfolio turnover rate for all share classes  11%  31%  28%  29%  37%  29%
 
 
(1)Based on average shares outstanding.
            
(2)Total returns exclude any applicable sales charges, including contingent deferred sales charges.
     
(3)This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes.
(4)Based on operations for the period shown and, accordingly, is not representative of a full year.
         
(5)Unaudited.
            
(6)Annualized.
            
              
              
See Notes to Financial Statements            
 
 
 
Expense example                                                                                                                                              
   ��   unaudited
 
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (March 1, 2012, through August 31, 2012).
 
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-1, F-2 and 529-F-1 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 be lower by the amount of these fees.
 
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 3/1/2012  Ending account value 8/31/2012  Expenses paid during period*  
Annualized
expense ratio
 
             
Class A -- actual return $1,000.00  $1,009.03  $3.74   .74%
Class A -- assumed 5% return  1,000.00   1,021.42   3.76   .74 
Class B -- actual return  1,000.00   1,004.56   7.56   1.50 
Class B -- assumed 5% return  1,000.00   1,017.60   7.61   1.50 
Class C -- actual return  1,000.00   1,005.09   7.76   1.54 
Class C -- assumed 5% return  1,000.00   1,017.39   7.81   1.54 
Class F-1 -- actual return  1,000.00   1,008.77   3.69   .73 
Class F-1 -- assumed 5% return  1,000.00   1,021.47   3.71   .73 
Class F-2 -- actual return  1,000.00   1,010.16   2.48   .49 
Class F-2 -- assumed 5% return  1,000.00   1,022.67   2.49   .49 
Class 529-A -- actual return  1,000.00   1,008.36   4.14   .82 
Class 529-A -- assumed 5% return  1,000.00   1,021.01   4.17   .82 
Class 529-B -- actual return  1,000.00   1,004.56   8.16   1.62 
Class 529-B -- assumed 5% return  1,000.00   1,016.99   8.21   1.62 
Class 529-C -- actual return  1,000.00   1,004.57   8.16   1.62 
Class 529-C -- assumed 5% return  1,000.00   1,016.99   8.21   1.62 
Class 529-E -- actual return  1,000.00   1,007.02   5.40   1.07 
Class 529-E -- assumed 5% return  1,000.00   1,019.76   5.43   1.07 
Class 529-F-1 -- actual return  1,000.00   1,009.30   3.08   .61 
Class 529-F-1 -- assumed 5% return  1,000.00   1,022.07   3.10   .61 
Class R-1 -- actual return  1,000.00   1,005.01   7.56   1.50 
Class R-1 -- assumed 5% return  1,000.00   1,017.60   7.61   1.50 
Class R-2 -- actual return  1,000.00   1,005.02   7.51   1.49 
Class R-2 -- assumed 5% return  1,000.00   1,017.65   7.56   1.49 
Class R-3 -- actual return  1,000.00   1,007.53   5.30   1.05 
Class R-3 -- assumed 5% return  1,000.00   1,019.86   5.33   1.05 
Class R-4 -- actual return  1,000.00   1,008.59   3.74   .74 
Class R-4 -- assumed 5% return  1,000.00   1,021.42   3.76   .74 
Class R-5 -- actual return  1,000.00   1,010.42   2.22   .44 
Class R-5 -- assumed 5% return  1,000.00   1,022.92   2.24   .44 
Class R-6 -- actual return  1,000.00   1,011.02   1.97   .39 
Class R-6 -- assumed 5% return  1,000.00   1,023.18   1.98   .39 
                 
*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).
 
 
 
Other share class results
unaudited
 
Classes B, C, F and 529

Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

Average annual total returns for periods ended       10 years/ 
September 30, 2012 (the most recent calendar quarter-end): 1 year  5 years  
Life of class1
 
          
Class B shares2
         
Reflecting applicable contingent deferred sales charge         
(CDSC), maximum of 5%, payable only if shares         
are sold within six years of purchase  19.37%  0.65%  7.34%
Not reflecting CDSC  24.37   1.02   7.34 
             
Class C shares            
Reflecting CDSC, maximum of 1%, payable only            
if shares are sold within one year of purchase  23.32   1.00   7.13 
Not reflecting CDSC  24.32   1.00   7.13 
             
Class F-1 shares3
            
Not reflecting annual asset-based fee charged            
by sponsoring firm  25.31   1.82   7.99 
             
Class F-2 shares3 — first sold 8/1/08
            
Not reflecting annual asset-based fee charged            
by sponsoring firm  25.64      7.28 
             
Class 529-A shares4
            
Reflecting 5.75% maximum sales charge  18.00   0.53   7.30 
Not reflecting maximum sales charge  25.21   1.74   7.94 
             
Class 529-B shares2,4
            
Reflecting applicable CDSC, maximum of 5%, payable            
only if shares are sold within six years of purchase  19.22   0.55   7.21 
Not reflecting CDSC  24.22   0.92   7.21 
             
Class 529-C shares4
            
Reflecting CDSC, maximum of 1%, payable only            
if shares are sold within one year of purchase  23.20   0.92   7.04 
Not reflecting CDSC  24.20   0.92   7.04 
             
Class 529-E shares3,4
  24.92   1.45   7.60 
             
Class 529-F-1 shares3,4
            
Not reflecting annual asset-based fee charged            
by sponsoring firm  25.48   1.94   8.07 

 
1Applicable to Class F-2 shares only. All other share classes reflect 10-year results.
 
2These shares are not available for purchase.
 
3These shares are sold without any initial or contingent deferred sales charge.
 
4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.

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

 
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, 2013. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor.

1. Nature, extent and quality of services

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, in each case as available at the time of the related board and committee meetings.

This report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee concluded that the fund’s 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. In addition, they reviewed information regarding the advisory fees paid by clients of an affiliate of CRMC. They noted that, to the extent there were differences between the advisory fees paid by the fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational and regulatory differences between advising the fund and the other 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.


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
(Write to the address near you.)

P.O. Box 6007
Indianapolis, IN 46206-6007

P.O. Box 2280
Norfolk, VA 23501-2280

Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070

Counsel
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 investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.
 
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

A complete August 31, 2012, 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. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of shareholders of AMCAP Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2012, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

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The American Funds difference

Since 1931, American Funds has helped investors pursue long-term investment success. Our consistent approach — in combination with a proven system — has resulted in a superior long-term track record.

Consistent approach

We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. Our portfolio counselors average 25 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1

Proven system

Our system combines individual accountability with teamwork. Each fund is divided into portions that are managed by investment professionals with varied backgrounds, ages and investment styles. An extensive global research effort is the backbone of our system.

Superior long-term track record

Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 60% of 10-year periods and 67% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3

 
1As of 12/31/11.
 
2Based on Class A share results for periods through 12/31/11. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date.
 
3Based on management fees for the 20-year period ended 12/31/11 versus comparable Lipper categories, excluding funds of funds.


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 Fund®
 
SMALLCAP World Fund®

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

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

 •Balanced funds
 
American Balanced Fund®
 
American Funds Global Balanced FundSM

 •Bond funds
 
American Funds Mortgage Fund®
 
American High-Income Trust®
 
The Bond Fund of America®
 
Capital World Bond Fund®
 
Intermediate Bond Fund of America®
 
Short-Term Bond Fund of America®
 
U.S. Government Securities Fund®

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

 •Money market fund
 
American Funds Money Market Fund®

 
•American Funds Portfolio SeriesSM
 
American Funds Global Growth PortfolioSM
 
American Funds Growth PortfolioSM
 
American Funds Growth and Income PortfolioSM
 
American Funds Balanced PortfolioSM
 
American Funds Income PortfolioSM
 
American Funds Tax-Advantaged Income PortfolioSM
 
American Funds Preservation PortfolioSM
 
American Funds Tax-Exempt Preservation PortfolioSM

 
•American Funds Target Date Retirement Series®

 
•American Funds College Target Date SeriesSM



The Capital Group Companies

American Funds   Capital Research and Management   Capital International   Capital Guardian   Capital Bank and Trust



Lit. No. MFGESR-902-1012P
 
Litho in USA AGD/RRD/8078-S33506
 
Printed on paper containing 10% post-consumer waste
 
Printed with inks containing soy and/or vegetable oil
 
 
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
 
 

 
AMCAP Fund® 
Investment portfolio
 
August 31, 2012
unaudited
 
Common stocks — 85.08% Shares  
Value
(000)
 
       
HEALTH CARE — 18.21%      
Gilead Sciences, Inc.1
  11,624,600  $670,623 
Biogen Idec Inc.1
  3,351,400   491,282 
Amgen Inc.  4,405,000   369,668 
St. Jude Medical, Inc.  7,480,000   282,445 
Hologic, Inc.1
  12,374,100   242,904 
Endo Health Solutions Inc.1,2
  7,600,000   241,832 
Forest Laboratories, Inc.1
  6,630,000   229,995 
Alexion Pharmaceuticals, Inc.1
  2,125,000   227,821 
McKesson Corp.  2,250,000   195,997 
BioMarin Pharmaceutical Inc.1
  4,683,370   174,877 
Edwards Lifesciences Corp.1
  1,676,600   171,198 
Abbott Laboratories  2,450,000   160,573 
Stryker Corp.  2,917,000   155,359 
Zimmer Holdings, Inc.  1,919,000   118,556 
Medtronic, Inc.  2,900,000   117,914 
Thermo Fisher Scientific Inc.  2,048,900   117,504 
Illumina, Inc.1
  2,705,143   113,832 
Express Scripts Holding Co.1
  1,620,000   101,444 
Life Technologies Corp.1
  1,903,600   90,821 
Allergan, Inc.  1,044,600   89,971 
athenahealth, Inc.1
  645,000   56,999 
VCA Antech, Inc.1
  1,882,984   36,417 
Boston Scientific Corp.1
  2,547,890   13,759 
Alere Inc.1
  562,000   10,554 
NuVasive, Inc.1
  225,000   4,743 
       4,487,088 
         
INFORMATION TECHNOLOGY — 16.33%        
Microsoft Corp.  20,510,000   632,118 
Apple Inc.  761,200   506,381 
Oracle Corp.  13,165,000   416,672 
Adobe Systems Inc.1
  8,641,200   270,210 
Texas Instruments Inc.  8,811,500   255,886 
Accenture PLC, Class A  3,250,000   200,200 
Avago Technologies Ltd.  5,168,500   189,012 
FactSet Research Systems, Inc.  1,596,000   147,263 
Yahoo! Inc.1
  8,514,000   124,730 
Automatic Data Processing, Inc.  2,100,000   121,968 
eBay Inc.1
  2,500,000   118,675 
Trimble Navigation Ltd.1
  2,390,000   117,229 
EMC Corp.1
  4,000,000   105,160 
Logitech International SA1,2
  11,000,000   101,530 
Rovi Corp.1,2
  6,440,000   98,790 
Autodesk, Inc.1
  3,000,000   93,150 
Google Inc., Class A1
  133,700   91,597 
Hewlett-Packard Co.  4,000,000   67,520 
Samsung Electronics Co. Ltd.  57,300   62,268 
Corning Inc.  5,000,000   59,950 
Maxim Integrated Products, Inc.  1,375,000   37,317 
Linear Technology Corp.  1,050,000   34,676 
MediaTek Inc.  2,750,000   29,381 
QUALCOMM Inc.  475,000   29,194 
NetApp, Inc.1
  750,000   25,890 
Visa Inc., Class A  200,000   25,650 
KLA-Tencor Corp.  383,000   19,652 
Cisco Systems, Inc.  985,300   18,800 
Xilinx, Inc.  496,900   16,850 
DTS, Inc.1
  325,000   7,296 
       4,025,015 
         
CONSUMER DISCRETIONARY — 13.60%        
DIRECTV1
  10,575,000   550,852 
Comcast Corp., Class A  12,013,900   402,826 
Garmin Ltd.  5,199,000   209,780 
Johnson Controls, Inc.  7,052,494   191,898 
Time Warner Cable Inc.  2,095,613   186,132 
Time Warner Inc.  4,433,333   184,205 
Tractor Supply Co.  1,900,000   181,412 
Netflix, Inc.1,2
  3,028,300   180,850 
YUM! Brands, Inc.  2,785,000   177,460 
News Corp., Class A  7,059,500   165,122 
NIKE, Inc., Class B  1,625,000   158,210 
Harley-Davidson, Inc.  3,565,000   149,587 
Kohl’s Corp.  2,400,000   125,280 
Amazon.com, Inc.1
  499,000   123,867 
JCDecaux SA  3,900,000   88,984 
Texas Roadhouse, Inc.2
  4,557,200   78,247 
Lowe’s Companies, Inc.  2,000,000   56,960 
DreamWorks Animation SKG, Inc., Class A1
  3,300,000   56,001 
Weight Watchers International, Inc.  1,135,000   54,219 
WPP PLC  2,360,000   30,541 
       3,352,433 
         
ENERGY — 9.27%        
Schlumberger Ltd.  6,556,940   474,591 
EOG Resources, Inc.  4,110,100   445,124 
Baker Hughes Inc.  6,159,401   280,869 
Apache Corp.  2,973,000   254,935 
FMC Technologies, Inc.1
  5,000,000   234,200 
Southwestern Energy Co.1
  4,650,000   144,754 
Devon Energy Corp.  2,442,000   141,221 
Chevron Corp.  1,098,000   123,152 
Ultra Petroleum Corp.1
  4,875,000   100,230 
Transocean Ltd.  1,005,000   49,275 
BG Group PLC  1,180,000   24,133 
Range Resources Corp.  185,000   12,060 
       2,284,544 
         
INDUSTRIALS — 8.67%        
Precision Castparts Corp.  1,695,000   273,031 
Union Pacific Corp.  1,728,350   209,891 
United Parcel Service, Inc., Class B  2,630,000   194,120 
Verisk Analytics, Inc., Class A1
  3,570,000   173,216 
CSX Corp.  6,790,700   152,519 
United Technologies Corp.  1,769,000   141,255 
Serco Group PLC  15,018,700   134,142 
Dover Corp.  1,989,000   114,984 
Southwest Airlines Co.  11,885,000   106,252 
MITIE Group PLC2
  22,902,000   103,967 
Polypore International, Inc.1,2
  3,020,000   97,908 
Moog Inc., Class A1
  2,328,535   85,294 
General Dynamics Corp.  1,155,000   75,664 
Landstar System, Inc.  1,350,000   63,815 
Norfolk Southern Corp.  627,000   45,432 
Danaher Corp.  729,900   39,101 
FedEx Corp.  402,700   35,289 
Rockwell Collins, Inc.  703,907   34,400 
Iron Mountain Inc.  734,344   24,087 
Robert Half International Inc.  854,301   22,468 
Mine Safety Appliances Co.  292,266   10,191 
       2,137,026 
         
FINANCIALS — 6.24%        
Capital One Financial Corp.  4,245,700   240,009 
JPMorgan Chase & Co.  6,400,000   237,696 
PNC Financial Services Group, Inc.  2,595,000   161,305 
Arthur J. Gallagher & Co.  3,525,000   125,913 
American Express Co.  2,100,000   122,430 
Wells Fargo & Co.  3,500,000   119,105 
BB&T Corp.  3,500,000   110,390 
State Street Corp.  2,500,266   104,011 
Aon PLC, Class A  1,662,000   86,358 
Cullen/Frost Bankers, Inc.  1,250,000   69,500 
Torchmark Corp.  1,200,000   61,416 
Zions Bancorporation  3,000,000   57,750 
U.S. Bancorp  1,045,000   34,914 
East West Bancorp, Inc.  350,000   7,679 
       1,538,476 
         
MATERIALS — 4.20%        
Celanese Corp., Series A  7,273,108   278,269 
AptarGroup, Inc.2
  4,326,000   219,112 
Praxair, Inc.  1,254,531   132,353 
Monsanto Co.  1,400,000   121,954 
Valspar Corp.  2,089,185   111,437 
Freeport-McMoRan Copper & Gold Inc.  2,500,000   90,275 
Barrick Gold Corp.  2,100,000   80,892 
       1,034,292 
         
CONSUMER STAPLES — 4.03%        
CVS/Caremark Corp.  6,750,000   307,462 
Philip Morris International Inc.  2,500,000   223,250 
Whole Foods Market, Inc.  1,132,000   109,521 
L’Oréal SA, non-registered shares  850,000   104,497 
Costco Wholesale Corp.  760,000   74,381 
Ralcorp Holdings, Inc.1
  903,700   64,127 
Altria Group, Inc.  1,750,000   59,430 
Colgate-Palmolive Co.  250,000   26,577 
PepsiCo, Inc.  320,500   23,214 
       992,459 
         
         
TELECOMMUNICATION SERVICES — 2.11%        
Crown Castle International Corp.1
  3,237,600   205,458 
MetroPCS Communications, Inc.1
  16,814,500   163,605 
tw telecom inc.1
  3,800,000   95,570 
United States Cellular Corp.1
  734,300   27,867 
Telephone and Data Systems, Inc.  1,066,300   26,146 
       518,646 
         
MISCELLANEOUS — 2.42%        
Other common stocks in initial period of acquisition      596,698 
         
         
Total common stocks (cost: $15,512,856,000)      20,966,677 
         
         
         
Bonds & notes — 0.15% 
Principal amount
(000)
     
         
FINANCIALS — 0.15%        
First Niagara Financial Group, Inc. 7.25% 2021 $31,220   36,208 
         
         
Total bonds & notes (cost: $31,220,000)      36,208 
         
         
         
Short-term securities — 14.82%        
         
Freddie Mac 0.10%–0.19% due 10/1/2012–6/3/2013  859,208   858,790 
U.S. Treasury Bills 0.111%–0.194% due 9/13/2012–6/27/2013  585,250   585,043 
Federal Home Loan Bank 0.115%–0.22% due 9/12/2012–7/17/2013  439,000   438,791 
Fannie Mae 0.10%–0.18% due 9/26/2012–7/1/2013  394,000   393,801 
Federal Farm Credit Banks 0.13%–0.22% due 10/29/2012–7/18/2013  317,100   316,814 
Procter & Gamble Co. 0.14% due 10/30–11/13/20123
  167,200   167,155 
Wells Fargo & Co. 0.16%–0.18% due 9/18–11/16/2012  75,000   74,975 
Variable Funding Capital Company LLC 0.15%–0.20% due 9/7–10/15/20123
  67,200   67,189 
Coca-Cola Co. 0.17%–0.26% due 11/16/2012–1/11/20133
  114,350   114,276 
Paccar Financial Corp. 0.17%–0.18% due 11/1–11/15/2012  99,600   99,538 
Regents of the University of California 0.15%–0.17% due 9/11–10/9/2012  90,004   89,993 
Straight-A Funding LLC 0.18% due 10/22–11/6/20123
  68,354   68,331 
John Deere Credit Ltd. 0.13%–0.16% due 9/13–10/9/20123
  50,800   50,795 
Merck & Co. Inc. 0.13% due 9/10/20123
  44,200   44,198 
eBay Inc. 0.16% due 9/12/20123
  36,800   36,798 
United Technologies Corp. 0.18% due 9/21–9/25/20123
  35,700   35,693 
Chariot Funding, LLC 0.21% due 9/25/20123
  17,300   17,298 
Jupiter Securitization Co., LLC 0.18% due 9/5/20123
  15,000   15,000 
Harvard University 0.15% due 9/19/2012  30,070   30,068 
Google Inc. 0.14% due 11/1/20123
  28,400   28,390 
National Rural Utilities Cooperative Finance Corp. 0.14% due 9/14/2012  25,000   24,999 
Estée Lauder Companies Inc. 0.13% due 9/4/20123
  22,000   22,000 
Becton, Dickinson and Co. 0.12% due 9/26/2012  21,600   21,598 
E.I. duPont de Nemours and Co. 0.13% due 9/27/20123
  20,000   19,998 
General Electric Co. 0.13% due 9/4/2012  14,000   14,000 
Abbott Laboratories 0.17% due 9/17/20123
  12,600   12,599 
Private Export Funding Corp. 0.24% due 11/19/20123
  5,200   5,197 
         
Total short-term securities (cost: $3,653,142,000)      3,653,327 
         
         
Total investment securities (cost: $19,197,218,000)     $24,656,212 
Other assets less liabilities      (11,114)
         
Net assets     $24,645,098 


As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.

1Security did not produce income during the last 12 months.
2Represents an affiliated company as defined under the Investment Company Act of 1940.
3Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $704,917,000, which represented 2.86% 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 they may lose value.
 
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.
 
 
 
 
MFGEFP-902-1012O-S32859
 
 
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.


ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.


ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.


ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders.  The procedures are as follows.  The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.


ITEM 11 – Controls and Procedures

(a)The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
  
(b)There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.


ITEM 12 – Exhibits

(a)(1)Not applicable for filing of semi-annual reports to shareholders.
  
(a)(2)The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.
 
 
 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 AMCAP FUND
  
 
By /s/ Claudia P. Huntington
 
Claudia P. Huntington, Vice Chairman and
Principal Executive Officer
  
 Date: October 31, 2012



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, Vice Chairman and
Principal Executive Officer
 
Date: October 31, 2012



By /s/ Ari M. Vinocor
Ari M. Vinocor, Treasurer and
Principal Financial Officer
 
Date: October 31, 2012