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: February 28, 2013
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
The right choice for the long-term®
AMCAP Fund®
Special feature
Looking ahead: finding
long-term growth
companies
► See page 6
Annual report for the year ended February 28, 2013
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. 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 March 31, 2013 (the most recent calendar quarter-end):
Class A shares
Reflecting 5.75% maximum sales charge | 1 year | 5 years | 10 years | ||||||
Average annual total return | — | 5.82 | % | 7.91 | % | ||||
Cumulative total return | 6.66 | % | 32.72 | % | 114.17 | % |
The total annual fund operating expense ratio is 0.74% for Class A shares as of the prospectus dated May 1, 2013 (unaudited).
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 34.
Refer to the fund prospectus and the Risk Factors section of this report for more information on risks associated with investing in the fund.
The U.S. stock market posted strong gains for the fiscal year as investors were heartened by the domestic economy’s continued improvement, a partial resolution to the fiscal cliff negotiations, continuing monetary easement and generally strong growth in corporate earnings. The Dow Jones Industrial Average broke its record set in October 2007 — prior to the financial crisis —in early March, just after the close of the fund’s fiscal year. Despite the market reaching new heights, concerns remain about fundamentals, including the resiliency of U.S. economic growth, the high unemployment rate, and large debt and deficits at federal, state and local levels.
Over the 12 months ended February 28, 2013, AMCAP Fund had a total return of 11.4%, compared with 13.4% for the unmanaged Standard & Poor’s 500 Composite Index, a broad measure of the U.S. stock market. The fund outpaced the 11.1% return of the Lipper Growth Funds Index, which is a peer group measure.
Over its nearly 46-year lifetime, AMCAP provided an average annual total return of 11.3%, compared with 9.6% for the S&P 500 and 8.6% for the Lipper index. For the past 10 years, the fund posted an average annual total return of 8.2%, compared with 8.2% for the S&P 500 and 7.3% for the Lipper index.
Investment results analysis
The health care sector, which comprises 21.3% of the portfolio, supplanted information technology as the fund’s largest area of investment. Many of the fund’s health care holdings have done well for the year, especially those in the biotechnology industry. Gilead Sciences (now the fund’s largest holding) and Biogen Idec (also among the 10 largest holdings) continue to have good fundamental growth in existing drugs; each company also has several new drugs in development that are likely to become viable products.
Consumer-related companies also made notable contributions. Shares of Netflix
In this report
Special feature | |
6 | Looking ahead: finding long-term growth companies |
Contents | |
1 | Letter to investors |
4 | The value of a long-term perspective |
12 | Summary investment portfolio |
17 | Financial statements |
35 | Board of trustees and other officers |
AMCAP Fund | 1 |
(the fund’s fourth largest holding), gained 70% as the company recovered from concerns regarding its marketing strategy. Demand for its online video services continued to expand with the addition of new movies and original programming. Cable and internet provider Comcast advanced nearly 40% as the company delivered consistent earnings growth, driven by strong demand for its broadband internet services. However, Garmin fell roughly 25% as the company’s GPS navigation devices faced stiffer-than-expected competition from smartphones, even as it continued its expansion into broader markets, such as aviation.
Elsewhere, the energy and materials sectors (which together account for about 15% of the fund) lagged the broader market as the price of oil fluctuated along with several other commodities amid unsteady global demand. A number of holdings in these sectors detracted from fund returns, including oil and gas producer Apache and specialty chemicals company Celanese. Oil services firms such as FMC Technologies (the fund’s third largest holding) and Schlumberger (also among the top 10) trailed as well, due in part to what we believe is a short-term oversupply of natural gas in the U.S.
The fund’s cash position of 12.7% at year-end (including other short-term securities) detracted from results in the strong up market. However, given the fact that the market is at an all-time high, many of the fund’s portfolio counselors believe patience will give them the opportunity to invest the cash in quality companies at more attractive valuation levels.
Looking ahead
While the U.S. stock market has risen sharply, the underlying economy is still experiencing only modest growth. GDP has slowed and unemployment — though down from its peak — still remains high relative to prior economic cycles. Growth in consumer spending has been slow but fairly steady, and consumer
AMCAP’s returns with all distributions reinvested (for periods ended February 28, 2013)
Cumulative total return | Average annual total return | |||||||||||||||||||
1 year | 5 years | 10 years | 5 years | 10 years | ||||||||||||||||
AMCAP (Class A shares) | 11.4 | % | 33.7 | % | 120.8 | % | 6.0 | % | 8.2 | % | ||||||||||
Standard & Poor’s 500 Composite Index* | 13.4 | 27.3 | 120.6 | 4.9 | 8.2 | |||||||||||||||
Lipper Growth Funds Index | 11.1 | 21.6 | 102.6 | 4.0 | 7.3 |
*The index is unmanaged and, therefore, has no expenses.
2 | AMCAP Fund |
debt levels are in reasonable shape by historical standards. However, continuing uncertainty around public policy changes has made corporations generally cautious in their plans to spend for the long term. Politicians have made some progress addressing fiscal reform, but real work has yet to be done with regard to trimming both the deficit and excessive spending. While the Federal Reserve has indicated that it will not raise the federal funds rate any time soon, its position on the matter bears close monitoring.
Markets and economies rarely send perfectly clear signals about the future. Fundamental research helps deepen our understanding at both the micro and macro level. Our extensive research efforts and the conviction behind each of our investment choices can truly make a difference for shareholders. AMCAP invests in companies that have a solid track record of growth and characteristics that have the potential to support above-average growth in the future. Our focus on these fundamentals and the inherent worth of companies is critical to helping us identify investments that we believe represent the best value over the long term. For more details on how the fund’s portfolio counselors and analysts find long-term growth companies, see the related feature article beginning on page 6.
We thank our long-term investors and warmly welcome those who are new to the fund.
Cordially,
Claudia P. Huntington
Vice Chairman of the Board
Timothy D. Armour
President
April 8, 2013
For current information about the fund, visit americanfunds.com.
AMCAP’s lifetime results with all distributions reinvested (5/1/1967–2/28/2013)
Cumulative total return | Average annual total return | |||||||
AMCAP (Class A shares) | 13,211.2 | % | 11.3 | % | ||||
Standard & Poor’s 500 Composite Index* | 6,581.2 | 9.6 | ||||||
Lipper Growth Funds Index | 4,233.3 | 8.6 | ||||||
Consumer Price Index (inflation)† | 601.4 | 4.3 |
*The index is unmanaged and, therefore, has no expenses.
…Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics.
AMCAP Fund | 3 |
The value of a long-term perspective
How a $10,000 investment has grown
Fund results shown are for Class A shares and reflect deduction of the maximum sales charge of 5.75% on the $10,000 investment.1 Thus, the net amount invested was $9,425.2 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. For current information and month-end results, visit americanfunds.com.
Average annual total returns based on a $1,000 investment
(for periods ended February 28, 2013)*
1 year | 5 years | 10 years | |||||||
Class A shares | 5.02 | % | 4.73 | % | 7.60 | % |
* | Assumes reinvestment of all distributions and payment of the maximum 5.75% sales charge. |
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.
Year ended | 19683 | 1969 | 1970 | 1971 | 1972 | 1973 | 1974 | 1975 | 1976 | 1977 | 1978 | 1979 | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | 1987 | 1988 | 1989 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
February | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total value | (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends reinvested | — | $ | .1 | .2 | .2 | .2 | .2 | .2 | .3 | .3 | .2 | .3 | .3 | .4 | .7 | 2.6 | 1.2 | 1.6 | 1.9 | 1.5 | 1.6 | 3.0 | 3.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value at fiscal year-end1 | $ | 10.1 | 12.2 | 11.8 | 12.6 | 14.9 | 14.0 | 11.0 | 9.9 | 13.9 | 14.2 | 16.6 | 22.7 | 33.5 | 40.5 | 42.6 | 61.5 | 62.1 | 72.2 | 88.7 | 115.7 | 112.0 | 122.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
AMCAP total return | 0.6 | % | 21.4 | (3.1 | ) | 6.8 | 17.9 | (6.2 | ) | (21.0 | ) | (10.3 | ) | 40.2 | 2.1 | 17.2 | 36.9 | 47.5 | 20.9 | 5.2 | 44.1 | 1.1 | 16.2 | 23.0 | 30.3 | (3.1 | ) | 9.6 |
1 | As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $25,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares. | |
2 | The maximum initial sales charge was 8.5% prior to July 1, 1988. | |
3 | For the period May 1, 1967 (when the fund began operations), through February 29, 1968. |
4 | AMCAP Fund |
The chart and accompanying table illustrate how a $10,000 investment in AMCAP grew between May 1, 1967 —when the fund began operations — and February 28, 2013.
As you can see, that $10,000 grew to $1,253,419 with all distributions reinvested. Over the same period, $10,000 would have grown to $668,115 in the unmanaged Standard & Poor’s 500 Composite Index. The chart also records the fund’s progress relative to the rate of inflation as measured by the Consumer Price Index.
The fund’s year-by-year results appear in the table under the chart. You can use this table to estimate how much the value of your own holdings has grown.
Let’s say, for example, that you have been reinvesting all your dividends and capital gain distributions since February 28, 1998. Over the last 15 years, the value of the investment shown here more than doubled, from $475,003 to $1,253,419. Thus, in the same period, the value of your 1998 investment — regardless of size — has also more than doubled.
1990 | 1991 | 1992 | 1993 | 1994 | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | |||||||||||||||||||||||
3.2 | 3.3 | 2.2 | 2.3 | 1.9 | 2.4 | 3.4 | 2.6 | 2.5 | 3.7 | 3.3 | 4.1 | 3.7 | 1.1 | .1 | 2.0 | 4.1 | 7.2 | 11.4 | — | 8.7 | 4.3 | 3.9 | 4.5 | |||||||||||||||||||||||
140.0 | 163.5 | 196.9 | 208.6 | 232.1 | 240.0 | 310.3 | 346.8 | 475.0 | 575.1 | 703.4 | 724.6 | 673.3 | 567.6 | 777.4 | 808.0 | 895.9 | 968.1 | 937.7 | 553.5 | 888.1 | 1,066.6 | 1,124.8 | 1,253.4 | |||||||||||||||||||||||
14.0 | 16.8 | 20.4 | 5.9 | 11.3 | 3.4 | 29.3 | 11.7 | 37.0 | 21.1 | 22.3 | 3.0 | (7.1) | (15.7) | 37.0 | 3.9 | 10.9 | 8.1 | (3.1) | (41.0) | 60.5 | 20.1 | 5.5 | 11.4 |
4 | Includes reinvested dividends of $106,221 and reinvested capital gain distributions of $633,757. | |
5 | The S&P 500 is unmanaged and, therefore, has no expenses. | |
6 | Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics. |
The results shown are before taxes on fund distributions and sale of fund shares.
AMCAP Fund | 5 |
Looking ahead
6 | AMCAP Fund |
We care more about how companies plan to sustain growth over the long term than about what sort of results they posted last quarter. Effective CEOs will have that same focus.
— Claudia Huntington
Finding long-term growth companies
A rising tide lifts all boats. This phrase describes the idea that an improving economy will generally benefit all of its participants. Over the past few years, as the U.S. economy and stock market have rebounded from the 2008–2009 financial crisis, that has generally been the case as many companies have seen improvement in both their revenues and earnings.
However, with the economic recovery moderating and the consistent gains seen in certain sectors of the market beginning to level off, it has become increasingly important to identify companies that can continue to show long-term growth even if there is not a strong tailwind at their backs. AMCAP’s portfolio counselors and analysts have always focused on companies’ fundamentals. With a tried-and-true process from which to work and the resources of an extensive research network on which to draw, they are well-positioned to focus on growth opportunities.
Finding such companies involves a number of factors. First and foremost, the portfolio counselors examine the nature and quality of a company’s growth history, in part by looking at the source of that growth — did it derive primarily from acquisitions or was the growth organic? Of course, history isn’t the only guide to the future; further work is required to determine the company’s long-term growth potential, and what price is appropriate to pay for that growth.
Identifying quality companies
The search for long-term growth companies should always include an in-depth evaluation of management. “There are CEOs who can turn a growth company into a value trap or who try to grow a company more quickly than it can sustain itself,” says Claudia Huntington, a portfolio counselor and vice chairman of AMCAP. “Evaluating management’s strengths and weaknesses is crucial to determining if the CEO and his or her team can effectively grow the business, such as through product line expansion, increased distribution, market share gains, fundamental industry growth, or other avenues.”
Claudia believes you can tell the most about a CEO by examining their overall track record. What kind of manager are they? How effective are they at attracting and keeping an excellent team in place?
Do they set up incentives that support the kind of long-term growth we are looking for? Before meeting with management, she does a great deal of analysis on her own. “A lot of it is formulating an opinion about how the company should evolve over a five- to 10-year period,” she continues.
She also tries to determine if management’s interests are aligned with shareholders’ expectations. “It can be a solid growth company with an aggressive CEO, but if they put themselves first and shareholders second, that is not the best model to follow,” she notes. Finally, Claudia likes to get input from a company’s suppliers, customers and competitors when evaluating management. “It helps that I can draw on the resources of our network of analysts before making a final decision about whether or not to invest.”
If she does choose to invest, Claudia continues to monitor a company to make sure her thesis remains valid and management acts as expected. She generally measures her holding periods in multiple years rather than months. “A conversation with a CEO that focuses on the company’s long-term strategy,
AMCAP Fund | 7 |
Broadly speaking, the luxury of investing for AMCAP is that we look at growth with a longer time horizon than others, and because of our insights we can afford to be a bit more patient with regard to future developments.
— Eric Richter
opportunities and weaknesses is a much deeper and richer conversation than one that focuses on short-term issues,” she adds. “We care more about how companies plan to sustain growth over the long term than about what sort of results they posted last quarter. Effective CEOs will have that same focus.”
In addition to strong management, Claudia also values innovation. She looks for companies that develop a culture of creativity, whether in health care, industrials, information technology or some other sector. “These are companies that put a priority on growing through an emphasis on new products, via healthy research and development,” she continues. “Companies like this place a lot of importance on people, both in terms of attracting the best and brightest employees, and in developing a culture that keeps them motivated and productive.”
Health care is one area in which portfolio counselor Eric Richter has found appealing investment opportunities. Despite some economic and regulatory headwinds in recent years, many companies have discovered new treatments by emphasizing research and development, especially in the field of biotechnology. “It’s not just about the current product portfolio or growth rate, but the research and development and drug pipeline,” states Eric, citing companies like Biogen Idec and Gilead Sciences. “Broadly speaking, the luxury of investing for AMCAP is that we look at growth with a longer time horizon than others, and because of our insights we can afford to be a bit more patient with regard to future developments.”
Analyst Jessica Spaly, who covers the retail sector, looks for companies with competitive advantages that are difficult to replicate, such as those that own individual brands or have a unique distribution network. “If you think about retail, there are a number of formats that succeed but offer a very low barrier to entry, so it’s fairly easy for competitors to copy what’s working,” explains Jessica, noting the industry’s evolution of large retailers like Wal-Mart and Target in the 1970s, “category killers” such as Best Buy and Staples in the 1980s and 1990s, and e-commerce giants Amazon and eBay in the past decade. “Today’s business leaders differ significantly from those of the past, so the challenge is to find a new model or concept with the potential to capture market share and become tomorrow’s leader.”
While it might be possible to replicate a company like Amazon, Jessica feels that its unique supply chain and distribution network would make it extremely difficult and time-intensive to do so. Likewise, Costco, with its warehouse system and low margins, has a very defensible business model that would require huge scale to duplicate. Another company with a strong competitive advantage, thanks to its global brand appeal, is Nike. The athletic footwear and apparel firm is constantly innovating and introducing new products, growing the market rather than just gaining share. Adds Jessica, “Technology and fashion help create and drive demand for their products — and when they’re able to combine those two elements, demand increases even more.”
Less obvious signs of growth
Sometimes growth potential isn’t as obvious — it goes unnoticed because it’s happening in a small segment of a much larger company or in a small company that has yet to establish itself. Either situation can lead to attractive investment opportunities for AMCAP. Several portfolio counselors look for so-called “nuggets” of growth within larger companies that may take off and propel growth on the whole. They also will invest in small- to mid-size firms that have a longer runway for growth, which can benefit the fund.
“These companies may not knock your socks off in terms of overall growth potential, but there may be a piece of the business that is interesting, fast-growing, well-managed and — most importantly — not yet obvious to most investors who may have a shorter time horizon than we do,” explains Claudia. “That’s the kind of investment that is exciting to find. With a long-term horizon, we have the luxury of waiting for these so-called ‘nuggets’ to get bigger and bigger.”
Fund analyst Keiko McKibben, who covers industrials, came across such a situation at one company she follows. The firm makes many products, including hearing aids; its proprietary technology in this
8 | AMCAP Fund |
A wealth of experience
Portfolio counselors | Years of investment experience | |
Claudia P. Huntington | 40 | |
Eric S. Richter | 21 | |
C. Ross Sappenfield | 21 | |
Barry S. Crosthwaite | 17 |
Claudia Huntington | Eric Richter |
Ross Sappenfield | Barry Crosthwaite |
Investment analysts | Years of investment experience | |
S. Keiko McKibben | 22 | |
Jessica C. Spaly | 15 |
Keiko Mckibben | Jessica Spaly |
Years of experience as of February 28, 2013.
AMCAP Fund | 9 |
For me it’s a matter of finding companies when their valuation is attractive, meaning that there’s less likelihood that market sentiment will shift and drive the price down. In other words, the valuation is at a fairly conservative level relative to future growth prospects.
— Ross Sappenfield
field afforded the opportunity to expand into telecommunications by producing microphones for use in smartphones. “This is a rapidly growing market, and people want better quality microphones for their smartphones,” says Keiko. “The proprietary technology that the company developed for hearing aids has brought it huge market share in a new industry, and this in turn has helped raise the company’s overall growth rate.”
Keiko admits that it can be difficult to find these pockets of growth in the industrials sector. She looks for companies with the potential to increase market share due to a competitive advantage, such as proprietary technology or vertical integration. Precision Castparts, for example, is a producer of aerospace components that recently acquired a titanium company in an effort to become more vertically integrated. “With this purchase, it now has the ability to produce everything from the raw materials to the finished product,” she notes. “It no longer needs to outsource part of the process like their competition still does.”
AMCAP’s portfolio counselors have the freedom to invest in companies of all sizes, including smaller ones that can have excellent long-term growth prospects. For her part, Claudia prefers mid-cap companies. “They may be less diversified, but they also may have more focus,” she states. “This allows a strong CEO to be extremely effective and make things happen at a faster clip.”
Eric will invest in certain small-cap companies if the right situation presents itself. One of his larger holdings is a firm that manufactures gas, electric and water meters. It introduced new technologies in a sleepy industry and, as a result, its products are spreading globally. “It seems mundane, but this company brought technology to an area that had none before,” he explains. Though he looks for investment opportunities across the market-cap spectrum, Eric admits that smaller firms are more interesting and provide a better runway for growth. “I don’t think they necessarily present greater risk. You have to be aware of risk and volatility across the spectrum.”
Pursuing growth at a discount
Finding attractive growth companies is one thing, but deciding when to invest in them is another. “It’s not just a matter of finding a great business, but finding one at an attractive price,” says AMCAP portfolio counselor Ross Sappenfield. “For me it’s a matter of finding companies when their valuation is attractive, meaning that there’s less likelihood that market sentiment will shift and drive the price down. In other words, the valuation is at a fairly conservative level relative to future growth prospects.”
Most of the fund’s portfolio counselors say they are attracted to companies that are not well known or appreciated by the investment community. It might be one whose stock has fallen out of favor because of difficult economic or product cycles, regulatory pressure in a particular industry, or a transition in company management. The market might take a negative stance in such circumstances, but robust research and thorough analysis could reveal some underlying strength that leads to an attractive long-term investment opportunity.
“I like buying things on sale — both in life and in the stock market,” Ross admits. “I’m attracted to the ‘controversy’ that will sometimes occur when the market is overly pessimistic, triggering cheap valuations on what are ostensibly good companies. That’s when I become interested. But these opportunities are not very common; seldom will you find a high quality business at a low valuation.”
Ross closely followed drugstore chain CVS’s acquisition of pharmacy benefits manager Caremark back in 2007. The deal was not going well, and the market was rightfully concerned that it would slow
10 | AMCAP Fund |
I like to utilize the research provided by our analysts in an effort to understand why there’s uncertainty about a company or particular industry. If I find we have a strong differential view of what might happen in the market, I’m likely to go ahead and invest.
— Barry Crosthwaite
growth, depressing the stock’s value. At first he too was skeptical, but he gradually began to rethink his position when CVS brought in new management. It became apparent that they would be able to turn things around and get the company’s growth back on track. CVS is now reaping the rewards of the Caremark purchase. Adds Ross, “The company benefits not just from an aging U.S. population and increasing demand for pharmaceuticals, but from generic drugs that can be sold at higher profit margins as brand patents expire.”
Portfolio counselor Barry Crosthwaite also finds appeal in what appear to be difficult circumstances at companies. “I’m in my comfort zone when seeking out those challenging situations,” Barry says. “I like to utilize the research provided by our analysts in an effort to understand why there’s uncertainty about a company or particular industry. If I find we have a strong differential view of what might happen in the market, I’m likely to go ahead and invest. These situations can be positive and, as a result, lead to some really exciting investment ideas.”
Barry particularly likes to invest in what he calls “growth cyclicals.” These are companies whose stocks will often fall out of favor during economic downturns, but will rebound and continue to grow over the long term. Examples can be found in the auto and semiconductor industries — which can be volatile with the economy, but tend to do well in the long run as advancements are made in areas such as fuel efficiency and chip technology.
The energy sector can also be very cyclical, tracking the price of oil as it rises and falls. Dips will sometimes present opportunities to invest in companies with bright long-term growth prospects. FMC Technologies, a specialty oil services firm with a dominant position in the area of subsea facilities, is one such company, despite near-term headwinds. Barry’s background as an oil services analyst made the choice to invest that much easier, even in such a volatile environment. “It created a buying opportunity for me to make a long-term investment decision,” he says. “If you have conviction that long-term fundamentals will work out favorably, that’s not only the right time to invest but often when you’ll get the best returns.” ■
AMCAP Fund | 11 |
Summary investment portfolio February 28, 2013
The following summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
Industry sector diversification (percent of net assets)
Common stocks — 87.32% | Shares | Value (000) | Percent of net assets | |||||||||
Health care — 21.27% | ||||||||||||
Gilead Sciences, Inc.1 | 26,522,142 | $ | 1,132,761 | 4.12 | % | |||||||
Develops drugs to treat infectious diseases and cancer. | ||||||||||||
Biogen Idec Inc.1 | 3,141,400 | 522,540 | 1.90 | |||||||||
A leader in developing therapies to treat multiple sclerosis and cancer. | ||||||||||||
Amgen Inc. | 3,870,000 | 353,757 | 1.28 | |||||||||
The world’s largest biotechnology company. | ||||||||||||
St. Jude Medical, Inc. | 8,526,465 | 349,585 | 1.27 | |||||||||
Manufactures mechanical heart valves, pacemakers and other devices to treat cardiovascular diseases. | ||||||||||||
UnitedHealth Group Inc. | 6,208,800 | 331,860 | 1.21 | |||||||||
Provides managed health care services across the U.S. | ||||||||||||
Edwards Lifesciences Corp.1 | 3,493,900 | 300,231 | 1.09 | |||||||||
Manufacturer of tissue heart valves and related repair products for the treatment of advanced cardiovascular disease. | ||||||||||||
BioMarin Pharmaceutical Inc.1 | 4,927,793 | 285,664 | 1.04 | |||||||||
Biotechnology company engaged in the treatment of serious diseases and medical conditions. | ||||||||||||
Alexion Pharmaceuticals, Inc.1 | 3,151,346 | 273,348 | .99 | |||||||||
Develops drug treatments for cardiovascular, autoimmune and neurologic diseases. | ||||||||||||
Hologic, Inc.1 | 12,374,100 | 270,127 | .98 | |||||||||
Manufacturer of various medical technologies relating to women’s health care. | ||||||||||||
Forest Laboratories, Inc.1 | 6,885,301 | 253,379 | .92 | |||||||||
Develops, manufactures and sells branded forms of ethical drug products, most of which require a physician’s prescription. | ||||||||||||
Express Scripts Holding Co.1 | 4,000,000 | 227,640 | .83 | |||||||||
Operates a network of pharmacies and mail-order prescription services. Its customers include HMOs, health insurers and union benefits plans. | ||||||||||||
Allergan, Inc. | 1,804,600 | 195,655 | .71 | |||||||||
Produces eye care, skin care and specialty pharmaceutical products, including Botox. | ||||||||||||
Stryker Corp. | 2,960,100 | 189,091 | .69 | |||||||||
A global leader in the medical technology industry, particularly in the orthopaedic market. | ||||||||||||
Other securities | 1,167,871 | 4.24 | ||||||||||
5,853,509 | 21.27 |
12 | AMCAP Fund |
Shares | Value (000) | Percent of net assets | ||||||||||
Information technology — 16.20% | ||||||||||||
Microsoft Corp. | 20,910,000 | $ | 581,298 | 2.11 | % | |||||||
A world leader in software and Internet technologies. Its products include the Windows operating system and Office software. | ||||||||||||
Oracle Corp. | 14,915,000 | 510,988 | 1.86 | |||||||||
Major supplier of database management software. Also develops business applications and provides consulting and support. | ||||||||||||
Texas Instruments Inc. | 11,220,000 | 385,631 | 1.40 | |||||||||
Global maker of semiconductors and a leading producer of digital signal processors. | ||||||||||||
Avago Technologies Ltd. | 8,600,000 | 294,292 | 1.07 | |||||||||
Manufacturer of analog interface components and subsystems for communications, industrial and consumer applications. | ||||||||||||
Adobe Systems Inc.1 | 7,225,000 | 283,942 | 1.03 | |||||||||
Computer software manufacturer of multimedia and creativity products. | ||||||||||||
Google Inc., Class A1 | 346,700 | 277,776 | 1.01 | |||||||||
One of the most frequently used website search engines in the world. | ||||||||||||
Accenture PLC, Class A | 3,250,000 | 241,670 | .88 | |||||||||
Management consulting, technology services and outsourcing company. | ||||||||||||
Intuit Inc. | 3,245,000 | 209,238 | .76 | |||||||||
Produces user-friendly financial software, including Quicken and TurboTax, and offers services to home and small-business users. | ||||||||||||
FactSet Research Systems, Inc. | 1,896,000 | 184,462 | .67 | |||||||||
Provides financial and economic data for the investment community. | ||||||||||||
Yahoo! Inc.1 | 8,514,000 | 181,433 | .66 | |||||||||
One of the three largest Internet portals, offering online media, commerce and communications services to consumers and businesses worldwide. | ||||||||||||
Other securities | 1,308,808 | 4.75 | ||||||||||
4,459,538 | 16.20 | |||||||||||
Consumer discretionary — 13.09% | ||||||||||||
Netflix, Inc.1,2 | 2,828,300 | 531,947 | 1.93 | |||||||||
Internet subscription service for watching TV shows and movies. | ||||||||||||
DIRECTV1 | 8,966,500 | 431,916 | 1.57 | |||||||||
Digital television services provider in the United States, Latin America and the Caribbean. | ||||||||||||
Comcast Corp., Class A | 10,013,900 | 398,453 | 1.45 | |||||||||
A global media and technology company with two primary businesses. | ||||||||||||
Johnson Controls, Inc. | 7,052,494 | 221,942 | .81 | |||||||||
A leading manufacturer of components for automotive systems and building controls. | ||||||||||||
NIKE, Inc., Class B | 3,630,000 | 197,690 | .72 | |||||||||
The world’s leading athletic shoe company. Also operates shoe and sportswear stores. | ||||||||||||
Harley-Davidson, Inc. | 3,565,000 | 187,626 | .68 | |||||||||
The world’s leading producer of heavyweight motorcycles. | ||||||||||||
YUM! Brands, Inc. | 2,785,000 | 182,362 | .66 | |||||||||
Quick-service restaurant company whose brands include Taco Bell, KFC and Pizza Hut. | ||||||||||||
Tractor Supply Co. | 1,700,000 | 176,783 | .64 | |||||||||
Operator of retail farm and ranch stores throughout the U.S. | ||||||||||||
Other securities | 1,274,119 | 4.63 | ||||||||||
3,602,838 | 13.09 | |||||||||||
Energy — 10.52% | ||||||||||||
FMC Technologies, Inc.1 | 10,301,800 | 534,766 | 1.94 | |||||||||
Engaged in offshore energy production, food processing and airplane loading systems. | ||||||||||||
Schlumberger Ltd. | 6,691,940 | 520,968 | 1.89 | |||||||||
A leading provider of services and technology to the petroleum industry. |
AMCAP Fund | 13 |
Common stocks | Shares | Value (000) | Percent of net assets | |||||||||
Energy (continued) | ||||||||||||
EOG Resources, Inc. | 4,110,100 | $ | 516,681 | 1.88 | % | |||||||
An oil and gas exploration and production company with global operations. | ||||||||||||
Baker Hughes Inc. | 8,118,297 | 363,862 | 1.32 | |||||||||
A leading provider of drilling services and products to oil, gas and mining industries around the world. | ||||||||||||
Apache Corp. | 3,883,000 | 288,390 | 1.05 | |||||||||
An independent oil and gas exploration and development company with onshore and offshore operations worldwide. | ||||||||||||
Other securities | 671,028 | 2.44 | ||||||||||
2,895,695 | 10.52 | |||||||||||
Industrials — 8.57% | ||||||||||||
Union Pacific Corp. | 1,728,350 | 236,974 | .86 | |||||||||
Operates the largest railroad in the U.S.; also delivers freight to Canada and Mexico. | ||||||||||||
Precision Castparts Corp. | 1,225,000 | 228,573 | .83 | |||||||||
Manufactures jet engine parts, valves and industrial tools. | ||||||||||||
United Parcel Service, Inc., Class B | 2,630,000 | 217,370 | .79 | |||||||||
The world’s largest package delivery company and express carrier. | ||||||||||||
Dover Corp. | 2,795,000 | 205,013 | .74 | |||||||||
A widely diversified capital equipment manufacturer serving a variety of industrial market niches. | ||||||||||||
Verisk Analytics, Inc., Class A1 | 3,229,100 | 188,967 | .69 | |||||||||
Risk assessment services provider operating mainly in the property/casualty insurance industry. | ||||||||||||
Other securities | 1,282,581 | 4.66 | ||||||||||
2,359,478 | 8.57 | |||||||||||
Consumer staples — 4.78% | ||||||||||||
Green Mountain Coffee Roasters, Inc.1 | 7,433,800 | 355,038 | 1.29 | |||||||||
Engaged in the specialty coffee and coffeemaker businesses in the U.S. and Canada. | ||||||||||||
CVS/Caremark Corp. | 6,250,000 | 319,500 | 1.16 | |||||||||
A major U.S. drugstore chain. | ||||||||||||
Philip Morris International Inc. | 2,500,000 | 229,375 | .83 | |||||||||
One of the world’s largest international tobacco companies. | ||||||||||||
Other securities | 412,625 | 1.50 | ||||||||||
1,316,538 | 4.78 | |||||||||||
Financials — 4.63% | ||||||||||||
Capital One Financial Corp. | 4,100,000 | 209,223 | .76 | |||||||||
One of the largest U.S. credit card issuers. | ||||||||||||
Other securities | 1,064,080 | 3.87 | ||||||||||
1,273,303 | 4.63 | |||||||||||
Materials — 4.46% | ||||||||||||
Celanese Corp., Series A2 | 8,335,522 | 390,519 | 1.42 | |||||||||
Producer of industrial chemicals, acetyl products and engineered polymers. | ||||||||||||
AptarGroup, Inc.2 | 4,326,000 | 233,344 | .85 | |||||||||
Manufacturer of dispensing systems for fragrances, pharmaceuticals and personal care products. | ||||||||||||
Other securities | 603,852 | 2.19 | ||||||||||
1,227,715 | 4.46 |
14 | AMCAP Fund |
Value (000 | ) | Percent of net assets | ||||||
Telecommunication services — 1.17% | ||||||||
Other securities | $ | 322,102 | 1.17 | % | ||||
Miscellaneous — 2.63% | ||||||||
Other common stocks in initial period of acquisition | 724,341 | 2.63 | ||||||
Total common stocks (cost: $16,880,093,000) | 24,035,057 | 87.32 |
Short-term securities — 12.56% | Principal amount (000) | |||||||||||
Freddie Mac 0.09%–0.19% due 3/11–10/22/2013 | $ | 981,600 | 981,259 | 3.57 | ||||||||
Fannie Mae 0.10%–0.18% due 3/1–10/1/2013 | 490,100 | 489,890 | 1.78 | |||||||||
Federal Home Loan Bank 0.105%–0.22% due 3/13–7/17/2013 | 457,500 | 457,363 | 1.66 | |||||||||
U.S. Treasury Bills 0.08%–0.194% due 3/21–8/15/2013 | 454,300 | 454,212 | 1.65 | |||||||||
Federal Farm Credit Banks 0.13%–0.22% due 3/11–9/25/2013 | 275,800 | 275,690 | 1.00 | |||||||||
Google Inc. 0.11%–0.12% due 4/9–5/14/20133 | 58,100 | 58,088 | .21 | |||||||||
Other securities | 740,281 | 2.69 | ||||||||||
Total short-term securities (cost: $3,456,709,000) | 3,456,783 | 12.56 | ||||||||||
Total investment securities (cost: $20,336,802,000) | 27,491,840 | 99.88 | ||||||||||
Other assets less liabilities | 33,925 | .12 | ||||||||||
Net assets | $ | 27,525,765 | 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, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $6,733,000, which represented .02% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
The descriptions of the companies shown in the summary investment portfolio, which were obtained from published reports and other sources believed to be reliable, are supplemental and are not covered by the Report of Independent Registered Public Accounting Firm.
AMCAP Fund | 15 |
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 year ended February 28, 2013, appear below.
Beginning shares | Additions | Reductions | Ending shares | Dividend income (000) | Value of affiliates at 2/28/2013 (000) | |||||||||||||||||||
Netflix, Inc.1 | — | 3,028,300 | 200,000 | 2,828,300 | $ | — | $ | 531,947 | ||||||||||||||||
Celanese Corp., Series A | 6,665,522 | 1,670,000 | — | 8,335,522 | 2,090 | 390,519 | ||||||||||||||||||
AptarGroup, Inc. | 2,757,056 | 1,568,944 | — | 4,326,000 | 3,810 | 233,344 | ||||||||||||||||||
Polypore International, Inc.1 | 1,592,211 | 1,427,789 | — | 3,020,000 | — | 115,606 | ||||||||||||||||||
Itron, Inc.1 | — | 2,548,314 | — | 2,548,314 | — | 107,208 | ||||||||||||||||||
MITIE Group PLC | 22,902,000 | 1,119,000 | — | 24,021,000 | 3,571 | 104,549 | ||||||||||||||||||
Big Lots, Inc.1 | — | 2,986,200 | — | 2,986,200 | — | 99,440 | ||||||||||||||||||
Texas Roadhouse, Inc. | 4,557,200 | 30,000 | — | 4,587,200 | 2,096 | 88,716 | ||||||||||||||||||
Logitech International SA | 11,000,000 | — | — | 11,000,000 | 9,266 | 74,360 | ||||||||||||||||||
Endo Health Solutions Inc.1,4 | 7,300,000 | 300,000 | 3,000,000 | 4,600,000 | — | — | ||||||||||||||||||
Green Mountain Coffee Roasters, Inc.1,4,5 | 3,008,600 | 4,425,200 | — | 7,433,800 | — | — | ||||||||||||||||||
Hologic, Inc.1,4 | 13,774,100 | — | 1,400,000 | 12,374,100 | — | — | ||||||||||||||||||
Rovi Corp.1,4 | 4,431,500 | 2,008,500 | 4,019,801 | 2,420,199 | — | — | ||||||||||||||||||
$ | 20,833 | $ | 1,745,689 |
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 $728,383,000, which represented 2.65% of the net assets of the fund. |
4 | Unaffiliated issuer at 2/28/2013. |
5 | This security was an unaffiliated issuer in its initial period of acquisition at 2/29/2012; it was not publicly disclosed. |
See Notes to Financial Statements
16 | AMCAP Fund |
Statement of assets and liabilities at February 28, 2013 | (dollars in thousands) |
Assets: | ||||||||
Investment securities, at value: | ||||||||
Unaffiliated issuers (cost: $19,033,796) | $ | 25,746,151 | ||||||
Affiliated issuers (cost: $1,303,006) | 1,745,689 | $ | 27,491,840 | |||||
Cash | 98 | |||||||
Receivables for: | ||||||||
Sales of investments | 81,967 | |||||||
Sales of fund’s shares | 34,841 | |||||||
Dividends | 24,678 | 141,486 | ||||||
27,633,424 | ||||||||
Liabilities: | ||||||||
Payables for: | ||||||||
Purchases of investments | 51,638 | |||||||
Repurchases of fund’s shares | 32,787 | |||||||
Investment advisory services | 6,687 | |||||||
Services provided by related parties | 14,112 | |||||||
Trustees’ deferred compensation | 2,224 | |||||||
Other | 211 | 107,659 | ||||||
Net assets at February 28, 2013 | $ | 27,525,765 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of beneficial interest | $ | 19,716,667 | ||||||
Undistributed net investment income | 88,021 | |||||||
Undistributed net realized gain | 566,045 | |||||||
Net unrealized appreciation | 7,155,032 | |||||||
Net assets at February 28, 2013 | $ | 27,525,765 |
(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (1,199,732 total shares outstanding)
Net assets | Shares outstanding | Net asset value per share | ||||||||||
Class A | $ | 16,416,472 | 712,035 | $ | 23.06 | |||||||
Class B | 241,127 | 11,033 | 21.86 | |||||||||
Class C | 1,138,601 | 52,556 | 21.66 | |||||||||
Class F-1 | 1,972,859 | 85,965 | 22.95 | |||||||||
Class F-2 | 1,299,624 | 56,236 | 23.11 | |||||||||
Class 529-A | 861,041 | 37,551 | 22.93 | |||||||||
Class 529-B | 36,370 | 1,669 | 21.79 | |||||||||
Class 529-C | 217,480 | 9,975 | 21.80 | |||||||||
Class 529-E | 45,377 | 2,005 | 22.63 | |||||||||
Class 529-F-1 | 49,400 | 2,149 | 22.98 | |||||||||
Class R-1 | 58,419 | 2,649 | 22.05 | |||||||||
Class R-2 | 436,025 | 19,792 | 22.03 | |||||||||
Class R-3 | 752,120 | 33,114 | 22.71 | |||||||||
Class R-4 | 627,801 | 27,368 | 22.94 | |||||||||
Class R-5 | 930,638 | 40,130 | 23.19 | |||||||||
Class R-6 | 2,442,411 | 105,505 | 23.15 |
See Notes to Financial Statements
AMCAP Fund | 17 |
Statement of operations for the year ended February 28, 2013 | (dollars in thousands) |
Investment income: | ||||||||
Income: | ||||||||
Dividends (net of non-U.S. taxes of $1,249; also includes $20,833 from affiliates) | $ | 295,538 | ||||||
Interest | 7,077 | $ | 302,615 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 79,508 | |||||||
Distribution services | 66,299 | |||||||
Transfer agent services | 35,481 | |||||||
Administrative services | 6,185 | |||||||
Reports to shareholders | 1,374 | |||||||
Registration statement and prospectus | 612 | |||||||
Trustees’ compensation | 696 | |||||||
Auditing and legal | 127 | |||||||
Custodian | 168 | |||||||
State and local taxes | 146 | |||||||
Other | 1,228 | 191,824 | ||||||
Net investment income | 110,791 | |||||||
Net realized gain and unrealized appreciation on investments and currency: | ||||||||
Net realized gain (loss) on: | ||||||||
Investments (includes $41,683 net loss from affiliates) | 1,438,543 | |||||||
Currency transactions | (77 | ) | 1,438,466 | |||||
Net unrealized appreciation (depreciation) on: | ||||||||
Investments | 1,227,687 | |||||||
Currency translations | (8 | ) | 1,227,679 | |||||
Net realized gain and unrealized appreciation on investments and currency | 2,666,145 | |||||||
Net increase in net assets resulting from operations | $ | 2,776,936 |
*Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
18 | AMCAP Fund |
Statements of changes in net assets | (dollars in thousands) |
Year ended | Year ended | |||||||
February 28, 2013 | February 29, 2012 | |||||||
Operations: | ||||||||
Net investment income | $ | 110,791 | $ | 98,686 | ||||
Net realized gain on investments and currency transactions | 1,438,466 | 1,662,333 | ||||||
Net unrealized appreciation (depreciation) on investments and currency translations | 1,227,679 | (551,997 | ) | |||||
Net increase in net assets resulting from operations | 2,776,936 | 1,209,022 | ||||||
Dividends paid to shareholders from net investment income | (97,672 | ) | (82,103 | ) | ||||
Net capital share transactions | 670,646 | (151,811 | ) | |||||
Total increase in net assets | 3,349,910 | 975,108 | ||||||
Net assets: | ||||||||
Beginning of year | 24,175,855 | 23,200,747 | ||||||
End of year (including undistributed net investment income: $88,021 and $95,526, respectively) | $ | 27,525,765 | $ | 24,175,855 |
See Notes to Financial Statements
AMCAP Fund | 19 |
Notes to financial statements
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 class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature | |||
Classes A and 529-A | Up to 5.75% | None (except 1% for certain redemptions within one year of purchase without an initial sales charge) | None | |||
Classes B and 529-B* | None | Declines from 5% to 0% for redemptions within six years of purchase | Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years | |||
Class C | None | 1% for redemptions within one year of purchase | Class C converts to Class F-1 after 10 years | |||
Class 529-C | None | 1% for redemptions within one year of purchase | None | |||
Class 529-E | None | None | None | |||
Classes F-1, F-2 and 529-F-1 | None | None | None | |||
Classes R-1, R-2, R-3, R-4, R-5 and R-6 | None | None | None |
*Class B and 529-B shares of the fund are not available for purchase.
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 to shareholders are recorded on the ex-dividend date.
20 | AMCAP Fund |
Currency translation — Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
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 class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund’s board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the
AMCAP Fund | 21 |
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 February 28, 2013 (dollars in thousands):
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 5,853,509 | $ | — | $ | — | $ | 5,853,509 | ||||||||
Information technology | 4,452,805 | 6,733 | — | 4,459,538 | ||||||||||||
Consumer discretionary | 3,602,838 | — | — | 3,602,838 | ||||||||||||
Energy | 2,895,695 | — | — | 2,895,695 | ||||||||||||
Industrials | 2,359,478 | — | — | 2,359,478 | ||||||||||||
Consumer staples | 1,316,538 | — | — | 1,316,538 | ||||||||||||
Financials | 1,273,303 | — | — | 1,273,303 | ||||||||||||
Materials | 1,227,715 | — | — | 1,227,715 | ||||||||||||
Telecommunication services | 322,102 | — | — | 322,102 | ||||||||||||
Miscellaneous | 724,341 | — | — | 724,341 | ||||||||||||
Short-term securities | — | 3,456,783 | — | 3,456,783 | ||||||||||||
Total | $ | 24,028,324 | $ | 3,463,516 | $ | — | $ | 27,491,840 |
* | Securities with a market value of $682,636,000, which represented 2.48% 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. |
22 | AMCAP Fund |
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 February 28, 2013, 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 2009 and by state tax authorities for tax years before 2008.
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; 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 fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
During the year ended February 28, 2013, the fund reclassified $77,000 from undistributed net investment income to undistributed net realized gain and $20,547,000 from undistributed net investment income to capital paid in on shares of beneficial interest to align financial reporting with tax reporting. The fund also utilized capital loss carryforward of $872,498,000.
As of February 28, 2013, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):
Undistributed ordinary income | $ | 90,244 | ||
Undistributed long-term capital gain | 566,045 | |||
Gross unrealized appreciation on investment securities | 7,523,838 | |||
Gross unrealized depreciation on investment securities | (368,800 | ) | ||
Net unrealized appreciation on investment securities | 7,155,038 | |||
Cost of investment securities | 20,336,802 |
AMCAP Fund | 23 |
Tax-basis distributions paid to shareholders from ordinary income were as follows (dollars in thousands):
Year ended February 28 or 29 | ||||||||
Share class | 2013 | 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 | 2,136 | 1,951 | ||||||
Class R-5 | 5,966 | 5,700 | ||||||
Class R-6 | 10,154 | 6,260 | ||||||
Total | $ | 97,672 | $ | 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. CRMC, AFD and AFS are considered related parties to the fund.
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 year ended February 28, 2013, the investment advisory services fee was $79,508,000, 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 Class F-2, R-5 and R-6 shares. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted on the following page. 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 February 28, 2013, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.
24 | AMCAP Fund |
Share class | Currently approved limits | Plan limits | ||||||
Class A | 0.25 | % | 0.25 | % | ||||
Class 529-A | 0.25 | 0.50 | ||||||
Classes B and 529-B | 1.00 | 1.00 | ||||||
Classes C, 529-C and R-1 | 1.00 | 1.00 | ||||||
Class R-2 | 0.75 | 1.00 | ||||||
Classes 529-E and R-3 | 0.50 | 0.75 | ||||||
Classes F-1, 529-F-1 and R-4 | 0.25 | 0.50 |
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 year ended February 28, 2013, were as follows (dollars in thousands):
Distribution | Transfer agent | Administrative | 529 plan | |||||||||||
Share class | services | services | services | services | ||||||||||
Class A | $35,089 | $24,913 | $1,528 | Not applicable | ||||||||||
Class B | 2,894 | 483 | Not applicable | Not applicable | ||||||||||
Class C | 11,042 | 1,793 | 553 | Not applicable | ||||||||||
Class F-1 | 4,473 | 1,937 | 897 | Not applicable | ||||||||||
Class F-2 | Not applicable | 1,260 | 552 | Not applicable | ||||||||||
Class 529-A | 1,650 | 978 | 389 | $771 | ||||||||||
Class 529-B | 413 | 59 | 21 | 41 | ||||||||||
Class 529-C | 1,977 | 269 | 100 | 197 | ||||||||||
Class 529-E | 207 | 35 | 21 | 41 | ||||||||||
Class 529-F-1 | — | 55 | 22 | 43 | ||||||||||
Class R-1 | 595 | 67 | 30 | Not applicable | ||||||||||
Class R-2 | 3,087 | 1,469 | 208 | Not applicable | ||||||||||
Class R-3 | 3,476 | 1,148 | 349 | Not applicable | ||||||||||
Class R-4 | 1,396 | 565 | 280 | Not applicable | ||||||||||
Class R-5 | Not applicable | 441 | 445 | Not applicable | ||||||||||
Class R-6 | Not applicable | 9 | 790 | Not applicable | ||||||||||
Total class-specific expenses | $66,299 | $35,481 | $6,185 | $1,093 |
AMCAP Fund | 25 |
Trustees’ deferred compensation — Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $696,000, shown on the accompanying financial statements, includes $408,000 in current fees (either paid in cash or deferred) and a net increase of $288,000 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, AFD and AFS. 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 (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended February 28, 2013 | ||||||||||||||||||||||||||||||||
Class A | $ | 1,999,597 | 94,426 | $ | 59,399 | 2,974 | $ | (2,343,057 | ) | (110,671 | ) | $ | (284,061 | ) | (13,271 | ) | ||||||||||||||||
Class B | 11,022 | 552 | — | — | (172,352 | ) | (8,664 | ) | (161,330 | ) | (8,112 | ) | ||||||||||||||||||||
Class C | 149,033 | 7,474 | — | — | (258,325 | ) | (12,987 | ) | (109,292 | ) | (5,513 | ) | ||||||||||||||||||||
Class F-1 | 478,661 | 22,762 | 7,194 | 362 | (437,291 | ) | (20,795 | ) | 48,564 | 2,329 | ||||||||||||||||||||||
Class F-2 | 486,292 | 22,853 | 6,425 | 322 | (289,593 | ) | (13,424 | ) | 203,124 | 9,751 | ||||||||||||||||||||||
Class 529-A | 138,261 | 6,571 | 2,923 | 147 | (96,730 | ) | (4,569 | ) | 44,454 | 2,149 | ||||||||||||||||||||||
Class 529-B | 1,312 | 66 | — | — | (18,525 | ) | (929 | ) | (17,213 | ) | (863 | ) | ||||||||||||||||||||
Class 529-C | 35,720 | 1,783 | — | — | (27,895 | ) | (1,381 | ) | 7,825 | 402 | ||||||||||||||||||||||
Class 529-E | 6,314 | 303 | 64 | 4 | (5,134 | ) | (246 | ) | 1,244 | 61 | ||||||||||||||||||||||
Class 529-F-1 | 10,117 | 473 | 242 | 12 | (7,040 | ) | (333 | ) | 3,319 | 152 | ||||||||||||||||||||||
Class R-1 | 18,067 | 897 | — | — | (21,886 | ) | (1,076 | ) | (3,819 | ) | (179 | ) | ||||||||||||||||||||
Class R-2 | 113,259 | 5,570 | — | — | (137,995 | ) | (6,799 | ) | (24,736 | ) | (1,229 | ) | ||||||||||||||||||||
Class R-3 | 241,266 | 11,625 | 1,113 | 56 | (231,020 | ) | (11,082 | ) | 11,359 | 599 | ||||||||||||||||||||||
Class R-4 | 216,714 | 10,334 | 2,135 | 107 | (187,840 | ) | (8,884 | ) | 31,009 | 1,557 | ||||||||||||||||||||||
Class R-5 | 197,534 | 9,333 | 5,920 | 295 | (238,791 | ) | (11,212 | ) | (35,337 | ) | (1,584 | ) | ||||||||||||||||||||
Class R-6 | 1,140,401 | 52,352 | 10,154 | 508 | (195,019 | ) | (9,179 | ) | 955,536 | 43,681 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 5,243,570 | 247,374 | $ | 95,569 | 4,787 | $ | (4,668,493 | ) | (222,231 | ) | $ | 670,646 | 29,930 |
26 | AMCAP Fund |
Sales* | Reinvestments of dividends | Repurchases* | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
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 $5,835,675,000 and $5,865,883,000, respectively, during the year ended February 28, 2013.
AMCAP Fund | 27 |
Financial highlights
Income (loss) from investment operations1 | 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 return2,3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before waivers | Ratio of expenses to average net assets after waivers3 | Ratio of net income (loss) to average net assets3 | ||||||||||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | $ | 20.78 | $ | .10 | $ | 2.26 | $ | 2.36 | $ | (.08 | ) | $ | — | $ | (.08 | ) | $ | 23.06 | 11.44 | % | $ | 16,417 | .74 | % | .74 | % | .48 | % | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.77 | (.06 | ) | 2.15 | 2.09 | — | — | — | 21.86 | 10.52 | 241 | 1.50 | 1.50 | (.29 | ) | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.60 | (.07 | ) | 2.13 | 2.06 | — | — | — | 21.66 | 10.51 | 1,139 | 1.54 | 1.54 | (.33 | ) | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.69 | .10 | 2.25 | 2.35 | (.09 | ) | — | (.09 | ) | 22.95 | 11.41 | 1,973 | .74 | .74 | .48 | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.83 | .15 | 2.27 | 2.42 | (.14 | ) | — | (.14 | ) | 23.11 | 11.70 | 1,300 | .50 | .50 | .72 | |||||||||||||||||||||||||||||||||||||
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 2/28/20094 | 16.52 | .10 | (6.16 | ) | (6.06 | ) | — | — | — | 10.46 | (36.68 | ) | 87 | .50 | 5 | .48 | 5 | 1.50 | 5 | |||||||||||||||||||||||||||||||||
Class 529-A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.68 | .08 | 2.25 | 2.33 | (.08 | ) | — | (.08 | ) | 22.93 | 11.32 | 861 | .82 | .82 | .40 | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class 529-B: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.73 | (.08 | ) | 2.14 | 2.06 | — | — | — | 21.79 | 10.44 | 36 | 1.62 | 1.62 | (.41 | ) | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class 529-C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.74 | (.08 | ) | 2.14 | 2.06 | — | — | — | 21.80 | 10.44 | 218 | 1.61 | 1.61 | (.39 | ) | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class 529-E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.41 | .03 | 2.22 | 2.25 | (.03 | ) | — | (.03 | ) | 22.63 | 11.06 | 45 | 1.06 | 1.06 | .15 | |||||||||||||||||||||||||||||||||||||
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 |
28 | AMCAP Fund |
Income (loss) from investment operations1 | 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 return3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before waivers | Ratio of expenses to average net assets after waivers3 | Ratio of net income (loss) to average net assets3 | ||||||||||||||||||||||||||||||||||||||||
Class 529-F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | $ | 20.73 | $ | .13 | $ | 2.24 | $ | 2.37 | $ | (.12 | ) | $ | — | $ | (.12 | ) | $ | 22.98 | 11.51 | % | $ | 49 | .61 | % | .61 | % | .61 | % | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class R-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.94 | (.06 | ) | 2.17 | 2.11 | — | — | — | 22.05 | 10.58 | 58 | 1.49 | 1.49 | (.28 | ) | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class R-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.92 | (.05 | ) | 2.16 | 2.11 | — | — | — | 22.03 | 10.59 | 436 | 1.48 | 1.48 | (.26 | ) | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class R-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.48 | .04 | 2.22 | 2.26 | (.03 | ) | — | (.03 | ) | 22.71 | 11.07 | 752 | 1.04 | 1.04 | .17 | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class R-4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.67 | .10 | 2.25 | 2.35 | (.08 | ) | — | (.08 | ) | 22.94 | 11.40 | 628 | .73 | .73 | .49 | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class R-5: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.90 | .17 | 2.26 | 2.43 | (.14 | ) | — | (.14 | ) | 23.19 | 11.74 | 931 | .43 | .43 | .78 | |||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||
Class R-6: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.86 | .18 | 2.26 | 2.44 | (.15 | ) | — | (.15 | ) | 23.15 | 11.83 | 2,442 | .38 | .38 | .83 | |||||||||||||||||||||||||||||||||||||
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 2/28/20104 | 13.04 | .11 | 3.61 | 3.72 | (.16 | ) | — | (.16 | ) | 16.60 | 28.85 | 380 | .42 | 5 | .42 | 5 | .90 | 5 |
Year ended February 28 or 29 | ||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | ||||||
Portfolio turnover rate for all share classes | 27% | 31% | 28% | 29% | 37% |
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 waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. |
4 | Based on operations for the period shown and, accordingly, is not representative of a full year. |
5 | Annualized. |
See Notes to Financial Statements
AMCAP Fund | 29 |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of AMCAP Fund:
We have audited the accompanying statement of assets and liabilities of AMCAP Fund (the “Fund”), including the summary investment portfolio, as of February 28, 2013, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of February 28, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of AMCAP Fund as of February 28, 2013, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
Deloitte & Touche LLP
Costa Mesa, California
April 8, 2013
30 | AMCAP Fund |
Tax information | unaudited |
We are required to advise you of the federal tax status of certain distributions received by shareholders during the fiscal year. The fund hereby designates the following amounts for the fund’s fiscal year ended February 28, 2013:
Qualified dividend income | 100 | % | ||
Corporate dividends received deduction | 100 | % | ||
U.S. government income that may be exempt from state taxation | $ | 727,000 |
Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2014, to determine the calendar year amounts to be included on their 2013 tax returns. Shareholders should consult their tax advisers.
AMCAP Fund | 31 |
Expense example | unaudited |
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (September 1, 2012, through February 28, 2013).
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.
32 | AMCAP Fund |
Beginning account value 9/1/2012 | Ending account value 2/28/2013 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A — actual return | $ | 1,000.00 | $ | 1,104.41 | $ | 3.81 | .73 | % | ||||||||
Class A — assumed 5% return | 1,000.00 | 1,021.17 | 3.66 | .73 | ||||||||||||
Class B — actual return | 1,000.00 | 1,100.19 | 7.81 | 1.50 | ||||||||||||
Class B — assumed 5% return | 1,000.00 | 1,017.36 | 7.50 | 1.50 | ||||||||||||
Class C — actual return | 1,000.00 | 1,099.48 | 8.02 | 1.54 | ||||||||||||
Class C — assumed 5% return | 1,000.00 | 1,017.16 | 7.70 | 1.54 | ||||||||||||
Class F-1 — actual return | 1,000.00 | 1,104.42 | 3.91 | .75 | ||||||||||||
Class F-1 — assumed 5% return | 1,000.00 | 1,021.08 | 3.76 | .75 | ||||||||||||
Class F-2 — actual return | 1,000.00 | 1,105.74 | 2.61 | .50 | ||||||||||||
Class F-2 — assumed 5% return | 1,000.00 | 1,022.32 | 2.51 | .50 | ||||||||||||
Class 529-A — actual return | 1,000.00 | 1,103.99 | 4.28 | .82 | ||||||||||||
Class 529-A — assumed 5% return | 1,000.00 | 1,020.73 | 4.11 | .82 | ||||||||||||
Class 529-B — actual return | 1,000.00 | 1,099.39 | 8.38 | 1.61 | ||||||||||||
Class 529-B — assumed 5% return | 1,000.00 | 1,016.81 | 8.05 | 1.61 | ||||||||||||
Class 529-C — actual return | 1,000.00 | 1,099.35 | 8.33 | 1.60 | ||||||||||||
Class 529-C — assumed 5% return | 1,000.00 | 1,016.86 | 8.00 | 1.60 | ||||||||||||
Class 529-E — actual return | 1,000.00 | 1,102.83 | 5.53 | 1.06 | ||||||||||||
Class 529-E — assumed 5% return | 1,000.00 | 1,019.54 | 5.31 | 1.06 | ||||||||||||
Class 529-F-1 — actual return | 1,000.00 | 1,104.81 | 3.13 | .60 | ||||||||||||
Class 529-F-1 — assumed 5% return | 1,000.00 | 1,021.82 | 3.01 | .60 | ||||||||||||
Class R-1 — actual return | 1,000.00 | 1,100.30 | 7.76 | 1.49 | ||||||||||||
Class R-1 — assumed 5% return | 1,000.00 | 1,017.41 | 7.45 | 1.49 | ||||||||||||
Class R-2 — actual return | 1,000.00 | 1,100.40 | 7.60 | 1.46 | ||||||||||||
Class R-2 — assumed 5% return | 1,000.00 | 1,017.55 | 7.30 | 1.46 | ||||||||||||
Class R-3 — actual return | 1,000.00 | 1,102.43 | 5.42 | 1.04 | ||||||||||||
Class R-3 — assumed 5% return | 1,000.00 | 1,019.64 | 5.21 | 1.04 | ||||||||||||
Class R-4 — actual return | 1,000.00 | 1,104.47 | 3.81 | .73 | ||||||||||||
Class R-4 — assumed 5% return | 1,000.00 | 1,021.17 | 3.66 | .73 | ||||||||||||
Class R-5 — actual return | 1,000.00 | 1,105.86 | 2.25 | .43 | ||||||||||||
Class R-5 — assumed 5% return | 1,000.00 | 1,022.66 | 2.16 | .43 | ||||||||||||
Class R-6 — actual return | 1,000.00 | 1,106.06 | 1.98 | .38 | ||||||||||||
Class R-6 — assumed 5% return | 1,000.00 | 1,022.91 | 1.91 | .38 |
* | 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). |
AMCAP Fund | 33 |
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 March 31, 2013 (the most recent calendar quarter-end):
1 year | 5 years | 10 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 | 7.33 | % | 5.95 | % | 7.89 | % | ||||||
Not reflecting CDSC | 12.33 | 6.26 | 7.89 | |||||||||
Class C shares | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase | 11.29 | 6.25 | 7.68 | |||||||||
Not reflecting CDSC | 12.29 | 6.25 | 7.68 | |||||||||
Class F-1 shares3 | ||||||||||||
Not reflecting annual asset-based fee charged by sponsoring firm | 13.16 | 7.10 | 8.55 | |||||||||
Class F-2 shares3 — first sold 8/1/08 | ||||||||||||
Not reflecting annual asset-based fee charged by sponsoring firm | 13.44 | — | 9.14 | |||||||||
Class 529-A shares4 | ||||||||||||
Reflecting 5.75% maximum sales charge | 6.58 | 5.76 | 7.84 | |||||||||
Not reflecting maximum sales charge | 13.08 | 7.02 | 8.49 | |||||||||
Class 529-B shares2,4 | ||||||||||||
Reflecting applicable CDSC, maximum of 5%, payable only if shares are sold within six years of purchase | 7.21 | 5.84 | 7.76 | |||||||||
Not reflecting CDSC | 12.21 | 6.16 | 7.76 | |||||||||
Class 529-C shares4 | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only if shares are sold within one year of purchase | 11.25 | 6.17 | 7.60 | |||||||||
Not reflecting CDSC | 12.25 | 6.17 | 7.60 | |||||||||
Class 529-E shares3,4 | 12.79 | 6.72 | 8.16 | |||||||||
Class 529-F-1 shares3,4 | ||||||||||||
Not reflecting annual asset-based fee charged by sponsoring firm | 13.31 | 7.24 | 8.63 |
1 | Applicable to Class F-2 shares only. All other share classes reflect 10-year results. |
2 | These shares are not available for purchase. |
3 | These shares are sold without any initial or contingent deferred sales charge. |
4 | Results 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.
34 | AMCAP Fund |
Board of trustees and other officers
“Independent” trustees1
Name and age | Year first elected a trustee of the fund2 | Principal occupation(s) during past five years | Number of portfolios in fund complex3 overseen by trustee | Other directorships4 held by trustee | ||||
Louise H. Bryson, 69 | 2010 | Chair Emerita of the Board of Trustees, J. Paul Getty Trust; former President, Distribution, Lifetime Entertainment Network; former Executive Vice President and General Manager, Lifetime Movie Network | 7 | None | ||||
Mary Anne Dolan, 66 Chairman of the Board (Independent and Non-Executive) | 1998 | Founder and President, MAD Ink (communications company) | 10 | None | ||||
James G. Ellis, 66 | 2010 | Dean and Professor of Marketing, Marshall School of Business, University of Southern California | 65 | Quiksilver, Inc. | ||||
Leonard R. Fuller, 66 | 2010 | President and CEO, Fuller Consulting (financial management consulting firm) | 65 | None | ||||
William D. Jones, 57 | 2006 | Real estate developer/owner, President and CEO, CityLink Investment Corporation (acquires, develops and manages real estate ventures in selected urban communities) and City Scene Management Company (provides commercial asset and property management services) | 7 | Sempra Energy | ||||
L. Daniel Jorndt, 71 | 2010 | Retired | 4 | None | ||||
William H. Kling, 71 | 2006 | President Emeritus, American Public Media | 10 | None | ||||
John C. Mazziotta, M.D., Ph.D., 63 | 2011 | Physician; Chair, Department of Neurology, University of California at Los Angeles; Associate Director, Semel Institute, UCLA; Director, Brain Mapping Center, UCLA | 4 | None | ||||
Bailey Morris-Eck, 68 | 1999 | Director and Programming Chair, WYPR Baltimore/Washington (public radio station); Senior Adviser, Financial News (London); Senior Fellow, Institute for International Economics | 4 | None | ||||
Steven B. Sample, Ph.D., 72 | 1999 | President Emeritus, University of Southern California | 4 | Intermec, Inc. |
John G. McDonald, a trustee of the fund since 2010, has retired from the board. The trustees thank Prof. McDonald for his dedication and service to the fund.
“Interested” trustees5,6
Name, age and position with fund | Year first elected a trustee or officer of the fund2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund | Number of portfolios in fund complex3 overseen by trustee | Other directorships4 held by trustee | ||||
Claudia P. Huntington, 61 Vice Chairman of the Board | 1992–1994 1996 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company; Director, Capital Research and Management Company | 2 | None | ||||
Timothy D. Armour, 52 President | 1996 | President and Director, Capital Research and Management Company; Senior Vice President — Capital Research Global Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.7 | 2 | None |
The fund’s statement of additional information includes further details about fund trustees and is available without charge upon request by calling American Funds Service Company at 800/421-4225 or by visiting the American Funds website at americanfunds.com. The address for all trustees and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.
See page 36 for footnotes.
AMCAP Fund | 35 |
Other officers6
Name, age and position with fund | Year first elected an officer of the fund2 | Principal occupation(s) during past five years and positions held with affiliated entities or the principal underwriter of the fund | ||
Barry S. Crosthwaite, 54 Senior Vice President | 2006 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company; Director, American Funds Service Company7 | ||
Eric S. Richter, 52 Senior Vice President | 2008 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company | ||
Paul F. Roye, 59 Senior Vice President | 2007 | Senior Vice President — Fund Business Management Group, Capital Research and Management Company; Director, American Funds Service Company7 | ||
Herbert Y. Poon, 40 Vice President | 2012 | Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company | ||
C. Ross Sappenfield, 47 Vice President | 1999 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company | ||
James Terrile, 47 Vice President | 2006 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company; Director, Capital Strategy Research, Inc.7 | ||
Vincent P. Corti, 56 Secretary | 1998 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Ari M. Vinocor, 38 Treasurer | 2010 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Raymond F. Sullivan, Jr., 55 Assistant Secretary | 2011 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Dori Laskin, 61 Assistant Treasurer | 2011 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Jeffrey P. Regal, 41 Assistant Treasurer | 2012 | Vice President — Fund Business Management Group, Capital Research and Management Company |
1 | The term “independent” trustee refers to a trustee who is not an “interested person” of the fund within the meaning of the Investment Company Act of 1940. |
2 | Trustees and officers of the fund serve until their resignation, removal or retirement. |
3 | Capital Research and Management Company manages the American Funds. Capital Research and Management Company also manages American Funds Insurance Series,® which is composed of 19 funds and serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series,® which is composed of 10 funds and is available through tax-deferred retirement plans and IRAs; American Funds Portfolio Series,SM which is composed of eight funds; and American Funds College Target Date Series,SM which is composed of seven funds. |
4 | This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company) that are held by each trustee as a trustee or director of a public company or a registered investment company. |
5 | ”Interested persons” within the meaning of the Investment Company Act of 1940, on the basis of their affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter). |
6 | All of the officers listed are officers and/or directors/trustees of one or more of the other funds for which Capital Research and Management Company serves as investment adviser. |
7 | Company affiliated with Capital Research and Management Company. |
36 | AMCAP 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
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
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
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 February 28, 2013, 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 June 30, 2013, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
The right choice for the long term® |
The American Funds difference
Since 1931, American Funds has helped investors pursue long-term investment success. Our consistent approach — in combination with a proven system — has resulted in a superior long-term track record.
Consistent approach We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. Our portfolio counselors average 25 years of investment experience, including 20 years at our company, reflecting a career commitment to our long-term approach.1 | |
Proven system Our system combines individual accountability with teamwork. Each fund is divided into portions that are managed by investment professionals with varied backgrounds, ages and investment styles. An extensive global research effort is the backbone of our system. | |
Superior long-term track record Our equity funds have beaten their Lipper peer indexes in 90% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 63% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3 |
1 | As of 12/31/12. | |
2 | Based on Class A share results for rolling periods through 12/31/12. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date. | |
3 | Based on management fees for the 20-year period ended 12/31/12 versus comparable Lipper categories, excluding funds of funds. |
American Funds span a range of investment objectives | |
¢ | 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 |
ITEM 2 – Code of Ethics
The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made to American Funds Service Company at 800/421-0180 or to the Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071.
ITEM 3 – Audit Committee Financial Expert
The Registrant’s board has determined that James G. Ellis, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such. Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.
ITEM 4 – Principal Accountant Fees and Services
Registrant: | ||||
a) Audit Fees: | ||||
2012 | $77,000 | |||
2013 | $81,000 | |||
b) Audit-Related Fees: | ||||
2012 | $9,000 | |||
2013 | $8,000 | |||
The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants. | ||||
c) Tax Fees: | ||||
2012 | $7,000 | |||
2013 | $7,000 | |||
The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns including returns relating to the Registrant’s investments in non-U.S. jurisdictions. | ||||
d) All Other Fees: |
2012 | None | |||
2013 | None | |||
Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below): | ||||
a) Audit Fees: | ||||
Not Applicable | ||||
b) Audit-Related Fees: | ||||
2012 | $915,000 | |||
2013 | $1,240,000 | |||
The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 16 issued by the American Institute of Certified Public Accountants. | ||||
c) Tax Fees: | ||||
2012 | $40,000 | |||
2013 | $29,000 | |||
The tax fees consist of consulting services relating to the Registrant’s investments. | ||||
d) All Other Fees: | ||||
2012 | $2,000 | |||
2013 | $2,000 | |||
The other fees consist of subscription services related to an accounting research tool. |
All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates.
Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $1,560,000 for fiscal year 2012 and $1,884,000 for fiscal year 2013. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.
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
February 28, 2013
Common stocks — 87.32% | Shares | Value (000) |
HEALTH CARE — 21.27% | ||
Gilead Sciences, Inc.1 | 26,522,142 | $1,132,761 |
Biogen Idec Inc.1 | 3,141,400 | 522,540 |
Amgen Inc. | 3,870,000 | 353,757 |
St. Jude Medical, Inc. | 8,526,465 | 349,585 |
UnitedHealth Group Inc. | 6,208,800 | 331,860 |
Edwards Lifesciences Corp.1 | 3,493,900 | 300,231 |
BioMarin Pharmaceutical Inc.1 | 4,927,793 | 285,664 |
Alexion Pharmaceuticals, Inc.1 | 3,151,346 | 273,348 |
Hologic, Inc.1 | 12,374,100 | 270,127 |
Forest Laboratories, Inc.1 | 6,885,301 | 253,379 |
Express Scripts Holding Co.1 | 4,000,000 | 227,640 |
Allergan, Inc. | 1,804,600 | 195,655 |
Stryker Corp. | 2,960,100 | 189,091 |
Zimmer Holdings, Inc. | 2,222,000 | 166,561 |
Thermo Fisher Scientific Inc. | 2,251,100 | 166,131 |
Endo Health Solutions Inc.1 | 4,600,000 | 142,600 |
Illumina, Inc.1 | 2,705,143 | 135,609 |
Medtronic, Inc. | 2,400,000 | 107,904 |
Humana Inc. | 1,486,600 | 101,475 |
Aetna Inc. | 2,110,000 | 99,571 |
McKesson Corp. | 900,000 | 95,517 |
athenahealth, Inc.1 | 820,400 | 76,945 |
ArthroCare Corp.1 | 621,403 | 21,699 |
VCA Antech, Inc.1 | 987,399 | 21,683 |
Boston Scientific Corp.1 | 2,547,890 | 18,829 |
Abbott Laboratories | 395,000 | 13,347 |
5,853,509 | ||
INFORMATION TECHNOLOGY — 16.20% | ||
Microsoft Corp. | 20,910,000 | 581,298 |
Oracle Corp. | 14,915,000 | 510,988 |
Texas Instruments Inc. | 11,220,000 | 385,631 |
Avago Technologies Ltd. | 8,600,000 | 294,292 |
Adobe Systems Inc.1 | 7,225,000 | 283,942 |
Google Inc., Class A1 | 346,700 | 277,776 |
Accenture PLC, Class A | 3,250,000 | 241,670 |
Intuit Inc. | 3,245,000 | 209,238 |
FactSet Research Systems, Inc. | 1,896,000 | 184,462 |
Yahoo! Inc.1 | 8,514,000 | 181,433 |
Apple Inc. | 350,000 | 154,490 |
Trimble Navigation Ltd.1 | 2,190,000 | 130,152 |
Automatic Data Processing, Inc. | 2,100,000 | 128,856 |
Baidu, Inc., Class A (ADR)1 | 1,283,000 | 116,445 |
Autodesk, Inc.1 | 3,000,000 | 110,160 |
eBay Inc.1 | 2,000,000 | 109,360 |
Itron, Inc.1,2 | 2,548,314 | 107,208 |
EMC Corp.1 | 4,000,000 | 92,040 |
Samsung Electronics Co. Ltd. | 57,300 | 81,704 |
Logitech International SA2 | 11,000,000 | 74,360 |
Rovi Corp.1 | 2,420,199 | 43,055 |
Maxim Integrated Products, Inc. | 1,375,000 | 42,873 |
Linear Technology Corp. | 1,050,000 | 40,152 |
Visa Inc., Class A | 200,000 | 31,728 |
KLA-Tencor Corp. | 383,000 | 20,973 |
Xilinx, Inc. | 496,900 | 18,519 |
MediaTek Inc.3 | 598,000 | 6,733 |
4,459,538 | ||
CONSUMER DISCRETIONARY — 13.09% | ||
Netflix, Inc.1,2 | 2,828,300 | 531,947 |
DIRECTV1 | 8,966,500 | 431,916 |
Comcast Corp., Class A | 10,013,900 | 398,453 |
Johnson Controls, Inc. | 7,052,494 | 221,942 |
NIKE, Inc., Class B | 3,630,000 | 197,690 |
Harley-Davidson, Inc. | 3,565,000 | 187,626 |
YUM! Brands, Inc. | 2,785,000 | 182,362 |
Tractor Supply Co. | 1,700,000 | 176,783 |
Time Warner Cable Inc. | 2,006,293 | 173,324 |
Time Warner Inc. | 2,800,000 | 148,876 |
Amazon.com, Inc.1 | 499,000 | 131,871 |
JCDecaux SA | 4,400,000 | 119,484 |
Garmin Ltd. | 2,900,000 | 99,586 |
Big Lots, Inc.1,2 | 2,986,200 | 99,440 |
Weight Watchers International, Inc. | 2,191,000 | 93,862 |
Kohl’s Corp. | 2,013,300 | 92,813 |
Texas Roadhouse, Inc.2 | 4,587,200 | 88,716 |
News Corp., Class A | 2,550,000 | 73,440 |
DreamWorks Animation SKG, Inc., Class A1 | 3,300,000 | 54,780 |
British Sky Broadcasting Group PLC | 3,085,000 | 39,804 |
WPP PLC | 2,360,000 | 37,736 |
Nordstrom, Inc. | 376,000 | 20,387 |
3,602,838 | ||
ENERGY — 10.52% | ||
FMC Technologies, Inc.1 | 10,301,800 | 534,766 |
Schlumberger Ltd. | 6,691,940 | 520,968 |
EOG Resources, Inc. | 4,110,100 | 516,681 |
Baker Hughes Inc. | 8,118,297 | 363,862 |
Apache Corp. | 3,883,000 | 288,390 |
Southwestern Energy Co.1 | 4,650,000 | 159,355 |
Devon Energy Corp. | 2,692,000 | 146,068 |
Chevron Corp. | 1,165,500 | 136,538 |
Transocean Ltd.1 | 1,710,000 | 89,433 |
Ultra Petroleum Corp.1 | 4,875,000 | 83,168 |
BG Group PLC | 2,390,000 | 42,258 |
Range Resources Corp. | 185,000 | 14,208 |
2,895,695 | ||
INDUSTRIALS — 8.57% | ||
Union Pacific Corp. | 1,728,350 | 236,974 |
Precision Castparts Corp. | 1,225,000 | 228,573 |
United Parcel Service, Inc., Class B | 2,630,000 | 217,370 |
Dover Corp. | 2,795,000 | 205,013 |
Verisk Analytics, Inc., Class A1 | 3,229,100 | 188,967 |
CSX Corp. | 6,790,700 | 155,779 |
Serco Group PLC | 15,018,700 | 129,983 |
United Technologies Corp. | 1,344,000 | 121,699 |
Polypore International, Inc.1,2 | 3,020,000 | 115,606 |
Southwest Airlines Co. | 9,385,000 | 109,805 |
Moog Inc., Class A1 | 2,328,535 | 104,691 |
MITIE Group PLC2 | 24,021,000 | 104,549 |
Chart Industries, Inc.1 | 1,399,102 | 101,519 |
General Dynamics Corp. | 1,250,000 | 84,962 |
Landstar System, Inc. | 1,350,000 | 75,991 |
Norfolk Southern Corp. | 627,000 | 45,802 |
Danaher Corp. | 729,900 | 44,962 |
FedEx Corp. | 402,700 | 42,457 |
Robert Half International Inc. | 600,000 | 21,330 |
Waste Connections, Inc. | 623,301 | 21,323 |
Mine Safety Appliances Co. | 45,313 | 2,123 |
2,359,478 | ||
CONSUMER STAPLES — 4.78% | ||
Green Mountain Coffee Roasters, Inc.1 | 7,433,800 | 355,038 |
CVS/Caremark Corp. | 6,250,000 | 319,500 |
Philip Morris International Inc. | 2,500,000 | 229,375 |
L’Oréal SA, non-registered shares | 850,000 | 127,118 |
Whole Foods Market, Inc. | 1,132,000 | 96,922 |
Costco Wholesale Corp. | 760,000 | 76,980 |
Altria Group, Inc. | 1,750,000 | 58,713 |
Colgate-Palmolive Co. | 250,000 | 28,608 |
PepsiCo, Inc. | 320,500 | 24,284 |
1,316,538 | ||
FINANCIALS — 4.63% | ||
Capital One Financial Corp. | 4,100,000 | 209,223 |
JPMorgan Chase & Co. | 3,400,000 | 166,328 |
PNC Financial Services Group, Inc. | 2,595,000 | 161,902 |
State Street Corp. | 2,438,692 | 138,006 |
Wells Fargo & Co. | 3,500,000 | 122,780 |
BB&T Corp. | 3,500,000 | 106,260 |
American Express Co. | 1,500,000 | 93,225 |
Aon PLC, Class A | 1,242,000 | 75,874 |
Arch Capital Group Ltd.1 | 1,500,000 | 73,680 |
Torchmark Corp. | 1,200,000 | 67,428 |
U.S. Bancorp | 1,045,000 | 35,509 |
Arthur J. Gallagher & Co. | 600,000 | 23,088 |
1,273,303 | ||
MATERIALS — 4.46% | ||
Celanese Corp., Series A2 | 8,335,522 | 390,519 |
AptarGroup, Inc.2 | 4,326,000 | 233,344 |
Praxair, Inc. | 1,351,531 | 152,791 |
Valspar Corp. | 2,089,185 | 128,715 |
Monsanto Co. | 1,260,000 | 127,298 |
Barrick Gold Corp. | 3,600,000 | 108,864 |
Freeport-McMoRan Copper & Gold Inc. | 2,700,000 | 86,184 |
1,227,715 | ||
TELECOMMUNICATION SERVICES — 1.17% | ||
Crown Castle International Corp.1 | 2,341,000 | 163,402 |
tw telecom inc.1 | 3,800,000 | 96,216 |
United States Cellular Corp.1 | 734,300 | 27,015 |
Telephone and Data Systems, Inc. | 970,950 | 22,225 |
MetroPCS Communications, Inc.1 | 1,351,500 | 13,244 |
322,102 | ||
MISCELLANEOUS — 2.63% | ||
Other common stocks in initial period of acquisition | 724,341 | |
Total common stocks (cost: $16,880,093,000) | 24,035,057 | |
Principal amount | ||
Short-term securities — 12.56% | (000) | |
Freddie Mac 0.09%–0.19% due 3/11–10/22/2013 | $981,600 | 981,259 |
Fannie Mae 0.10%–0.18% due 3/1–10/1/2013 | 490,100 | 489,890 |
Federal Home Loan Bank 0.105%–0.22% due 3/13–7/17/2013 | 457,500 | 457,363 |
U.S. Treasury Bills 0.08%–0.194% due 3/21–8/15/2013 | 454,300 | 454,212 |
Federal Farm Credit Banks 0.13%–0.22% due 3/11–9/25/2013 | 275,800 | 275,690 |
Procter & Gamble Co. 0.10%–0.15% due 3/4–5/28/20134 | 126,900 | 126,880 |
Coca-Cola Co. 0.11%–0.15% due 4/9–5/21/20134 | 106,600 | 106,576 |
Jupiter Securitization Co., LLC 0.18%–0.21% due 3/21–5/6/20134 | 71,000 | 70,985 |
Chariot Funding, LLC 0.19% due 4/24/20134 | 15,000 | 14,997 |
Variable Funding Capital Company LLC 0.15%–0.17% due 3/8–4/25/20134 | 78,900 | 78,888 |
John Deere Capital Corp. 0.09% due 3/12/20134 | 35,000 | 34,999 |
John Deere Credit Ltd. 0.10%–0.11% due 3/15–3/27/20134 | 42,300 | 42,298 |
Regents of the University of California 0.13%–0.14% due 4/8–4/23/2013 | 70,000 | 69,986 |
Google Inc. 0.11%–0.12% due 4/9–5/14/20134 | 58,100 | 58,088 |
Walt Disney Co. 0.16% due 3/5/20134 | 55,000 | 54,999 |
Abbott Laboratories 0.12% due 4/2–4/22/20134 | 48,000 | 47,994 |
Medtronic Inc. 0.17% due 5/9/20134 | 30,000 | 29,990 |
Private Export Funding Corp. 0.27% due 5/2/20134 | 25,000 | 24,993 |
E.I. duPont de Nemours and Co. 0.10% due 3/12/20134 | 21,500 | 21,499 |
Emerson Electric Co. 0.13% due 4/24/20134 | 15,200 | 15,197 |
Total short-term securities (cost: $3,456,709,000) | 3,456,783 | |
Total investment securities (cost: $20,336,802,000) | 27,491,840 | |
Other assets less liabilities | 33,925 | |
Net assets | $27,525,765 |
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.
3Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $6,733,000, which represented
..02% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of
significant market movement following the close of local trading.
4Acquired 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 $728,383,000, which represented 2.65% of the net assets of
the fund.
Key to abbreviation
ADR = American Depositary Receipts
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.
MFGEFPX-002-0413O-S32813
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INVESTMENT PORTFOLIO
To the Shareholders and Board of Trustees of
AMCAP Fund:
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the financial statements of AMCAP Fund (the “Fund”) as of February 28, 2013, and for the year then ended and have issued our report thereon dated April 8, 2013, which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR. Our audit also included the Fund’s investment portfolio (the “Schedule”) as of February 28, 2013, appearing in Item 6 of this Form N-CSR. This Schedule is the responsibility of the Fund’s management. Our responsibility is to express an opinion based on our audit. In our opinion, the Schedule referred to above, when considered in relation to the basic financial statements taken as a whole of the Fund referred to above, presents fairly, in all material respects, the information set forth therein.
DELOITTE & TOUCHE LLP
Costa Mesa, California
April 8, 2013
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) | The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto. |
(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: April 30, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By /s/ Claudia P. Huntington |
Claudia P. Huntington, Vice Chairman and Principal Executive Officer |
Date: April 30, 2013 |
By /s/ Ari M. Vinocor |
Ari M. Vinocor, Treasurer and Principal Financial Officer |
Date: April 30, 2013 |