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, 2014
Michael W. Stockton
AMCAP Fund
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
Copies to:
Eric A. S. Richards
O’Melveny & Myers LLP
400 South Hope Street, 10th Floor
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 – Reports to Stockholders
AMCAP Fund® Annual report for the year ended February 28, 2014 |
We invest in U.S. growth
companies whose
opportunities range from
local to global.
Special feature page 6
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 one of the nation’s largest mutual fund families. For more than 80 years, Capital 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, 2014 (the most recent calendar quarter-end):
Class A shares | 1 year | 5 years | 10 years | |||||||||
Reflecting 5.75% maximum sales charge | ||||||||||||
Average annual total return | — | 20.84% | 7.39% | |||||||||
Cumulative total return | 20.33 | % | 157.69% | 103.91% |
For other share class results, visit americanfunds.com and americanfundsretirement.com.
The total annual fund operating expense ratio is 0.70% for Class A shares as of the prospectus dated May 1, 2014 (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.
Refer to the fund prospectus and the Risk Factors section of this report for more information on risks associated with investing in the fund.
Special feature
6 | Going for growth: investing in U.S. companies whose opportunities range from local to global. |
Contents
1 | Letter to investors |
4 | The value of a long-term perspective |
12 | Summary investment portfolio |
17 | Financial statements |
31 | Board of trustees and other officers |
U.S. equities posted strong gains for the fiscal year, supported not only by solid fundamental growth in underlying corporate earnings but also by rising investor optimism about improvements in the European economy as well as continued gradual economic expansion at home. Several market indexes touched a succession of all-time highs, including the Standard & Poor’s 500 Composite Index and the Dow Jones Industrial Average. While there has been much investor focus on the Federal Reserve this fiscal year, ranging from concern over the slowing of quantitative easing to worries about inflation and deflation, markets seem to be adapting to the gradual slowdown of central bank stimulus.
During the 12 months ended February 28, 2014, AMCAP Fund provided investors with a 34.4% total return, which compares to a 25.4% total return for the unmanaged S&P 500 — a broad measure of mostly large U.S. stocks — and a total return of 31.2% for the Lipper Growth Funds Index, a peer group measure, as shown in the chart below.
Over the long term, AMCAP’s returns also have exceeded those of the S&P 500 and the Lipper Growth Funds Index. For the past 10 years, the fund posted an
Results at a glance
For periods ended February 28, 2014, with all distributions reinvested
Total return | Average annual total returns | |||||||||||||||
1 year | 5 years | 10 years | Lifetime (since 5/1/67) | |||||||||||||
AMCAP Fund (Class A shares) | 34.4 | % | 24.9 | % | 8.0 | % | 11.7 | % | ||||||||
Standard & Poor’s 500 Composite Index* | 25.4 | 23.0 | 7.2 | 9.9 | ||||||||||||
Lipper Growth Funds Index | 31.2 | 23.7 | 6.9 | 9.0 |
* | The index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. |
AMCAP Fund | 1 |
average annual total return of 8.0%, compared with 7.2% for the S&P 500 and 6.9% for the Lipper index. Over its nearly 47-year lifetime, AMCAP has an average annual total return of 11.7%, compared with 9.9% for the S&P 500 and 9.0% for the Lipper index.
Investment results analysis
Investments in health care, the fund’s largest sector, were among the biggest contributors to results for the fiscal year. Biotechnology companies Gilead Sciences, Biogen Idec and Alexion Pharmaceuticals were up 94%, 105% and 104%, respectively, and were all in the fund’s top 10 holdings at fiscal year-end. Health care equipment companies St. Jude Medical and Illumina, which makes genetic analysis tools, also registered hefty gains. However, Edwards Lifesciences was one of largest detractors in the fund.
Consumer-related companies further contributed to the fund’s returns. Shares of Netflix (the fourth-largest holding) more than doubled as the company continued to see strong demand for its online video services with the addition of new movies and original programming. Satellite television provider DirecTV also made a notable contribution to the fund as its shares gained more than 60%. Elsewhere, coffee company Keurig Green Mountain, as it’s now known, jumped 130%; on the disappointing side, athletic clothing retailer lululemon athletica fell almost 25%.
Among information technology firms, the fund’s second-largest holding, Google, was one of the strongest contributors to results. Many other Internet and media holdings helped results, as these companies have seen strong growth domestically while also increasing their exposure to growth outside the U.S.
In fact, companies in many global industries, from aerospace to biotechnology, have done well not
2 | AMCAP Fund |
only as a result of an improving U.S. economy, but also because of their success beyond our borders. For more on how AMCAP’s investment professionals are finding U.S. companies with strong growth potential at home and abroad, see the feature article starting on page 6.
Looking ahead
As the U.S. economy continues to show signs of improvement, the Fed has indicated that it will continue to reduce its asset-purchase program. Given these circumstances, we expect rates to gradually rise over time; however, the exact timing of any increase is uncertain. In normal recoveries, interest rates typically rise as the economy rebounds, and we would expect this pattern to recur as the Fed becomes less active in the market. With this in mind, we remain sensitive to valuation levels.
We recognize that the market is near all-time highs and that the growth sectors that AMCAP naturally focuses on have done particularly well in this type of environment. The fund’s sector and stock selection further contributed to the strong results for the year amid a confluence of positive events. Looking ahead, while fundamental growth in the U.S. may continue, a good deal of investor optimism is already factored into the valuations of many companies. Our focus remains on the importance of understanding the fundamental growth drivers of our investments, and taking advantage of opportunities when they arise. To this end, the fund’s cash position is 12.5% (including other short-term securities), as some portfolio managers believe there will be future opportunities to invest that cash in companies at more attractive valuations.
AMCAP Fund continues to focus on U.S. companies that have a solid track record of growth and characteristics that are likely to support above-average growth in the future. Our focus on fundamental growth drivers and the inherent worth of companies is critical to helping us identify investments that we believe represent the best value over the long term. We thank you for your continued support of these efforts.
Cordially,
Claudia P. Huntington
Vice Chairman of the Board
Timothy D. Armour
President
April 8, 2014
For current information about the fund, visit americanfunds.com.
AMCAP Fund | 3 |
The value of a long-term perspective
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.
The results shown are before taxes on fund distributions and sale of fund shares.
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 | Includes reinvested dividends of $109,873 and reinvested capital gain distributions of $753,326. |
5 | The S&P 500 is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. |
6 | Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics. |
4 | AMCAP Fund |
How a $10,000 investment has grown
This chart shows how a hypothetical $10,000 investment in AMCAP grew between May 1, 1967 — when the fund began operations — and February 28, 2014. As you can see, that $10,000 grew to $1,684,355 with all distributions reinvested. Over the same period, $10,000 would have grown to $837,516 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, 1999. Over the last 15 years, the value of the investment shown here nearly tripled, from $575,089 to $1,684,355. Thus, in the same period, the value of your 1999 investment — regardless of size — has also nearly tripled.
AMCAP Fund | 5 |
Going for growth: investing in U.S. companies whose opportunities range from local to global.
6 | AMCAP Fund |
Claudia Huntington
Portfolio manager
In global industries, it is crucial for U.S. companies to take advantage of the expanded market opportunity while also understanding and dealing with potential competition from abroad.
Growth can come from a number of places when investing in companies. Some develop new products and technologies; some enter newer and faster growing markets; while others have strong execution in existing markets. Regardless of where that growth may come from, it is important to pay particular attention to companies’ long-term growth goals and make sure they are indeed achievable.
Portfolio managers are doing just that in AMCAP Fund, which primarily invests in U.S. companies. However, an increasing number of companies based in the U.S. have grown by expanding into new markets beyond the country’s borders. This has served not only as a source of fundamental growth for a number of AMCAP’s investments but also as a means of diversification for them. While some industries don’t lend themselves very easily to expansion outside the U.S., many do, including transportation, pharmaceuticals, biotechnology, Internet and media.
“As the world has evolved, new markets and competition have opened up that affect companies based in the U.S. In global industries, it is crucial for U.S. companies to take advantage of the expanded market opportunity while also understanding and dealing with potential competition from abroad,” says Claudia Huntington, a portfolio manager and vice chairman of AMCAP. “The fund’s portfolio managers and analysts are able to take full advantage of the global reach of our organization to better analyze the potential for our investments in U.S. growth companies. At the end of the day, we’re investing in U.S. companies with a superior record of growth in the past — and that we feel have the best potential for growth in the future, wherever that may be.”
Tapping into the rising middle class
While there are plenty of sources for growth in the U.S., a number of domestic companies have sought to take advantage of faster growing markets around the world, particularly where the rising middle class in some countries has expanded discretionary purchasing power. “International growth can help a company that has reached the saturation point in a more mature market and carry it beyond that, allowing it to be a growth company for many years to come,” says portfolio manager Barry Crosthwaite. “Even if it’s not a key driver of growth, you have to consider the global picture and where competition is coming from abroad.”
For example, one of the primary sources of global economic growth over the past decade has been China, which has accounted for nearly half of the world’s GDP growth as the country’s rising middle class seeks to buy the latest products and begins to travel more. “The Chinese have been the dominant growth driver for a wide range of consumer markets, from luxury goods to autos to air travel,” notes Barry, adding that other developing markets are also experiencing a rising middle class, including India, Turkey and Brazil.
To seek to capitalize on this trend, Barry is investing in companies that
AMCAP Fund | 7 |
Barry Crosthwaite
Portfolio manager
International growth can help a company that has reached the saturation point in a more mature market and carry it beyond that, allowing it to be a growth company for many years to come.
offer goods and services sought by this rising middle class, including an athletic clothing retailer and a fast-food restaurant operator. The first company, lululemon athletica, continues to grow in the U.S., with the potential to have 500 stores here, but it is targeting another 500 potential stores overseas. “Lululemon could have 1,000 stores around the world compared to just 250 today, which are mostly in North America; it’s the international expansion that really gives the company the potential for 10 years of good growth,” notes Barry. The second company, Yum Brands (0.57% of the fund’s holdings at fiscal year end), operates Pizza Hut and KFC, the most popular fast-food chain in China, and it plans to expand further into India. “Yum’s growth in the U.S. is stagnant, so the key driver of its growth is the emerging markets consumer,” he says. “Pizza and chicken are loved around the world, but part of the company’s success has come from localizing its menus.”
Higher oil impacts planes, trains and automobiles
Many transportation-related companies are finding new ways to be more fuel efficient and use alternative sources of energy amid the global phenomenon of higher oil prices. Barry believes this trend is a structural driver of growth that is unlikely to change in the near future, especially with the unstable geopolitical situation in the oil-producing regions of the Middle East, Africa and more recently Russia. A number of U.S.-based companies are helping fill the need for greater fuel efficiency and alternative fuel sources around the world in order to extend their growth.
For instance, in the aerospace industry, Precision Castparts is benefiting from greater demand for its lightweight titanium components as companies like Boeing are making more fuel-efficient planes. Airline operators around the world continue to order these new planes, such as Boeing’s 787 Dreamliner, to meet growing demand for air travel. “As a direct result of higher oil prices, titanium components from companies like Precision Castparts are being used more widely in these new fuel-efficient planes,” he notes.
Other modes of transportation impacted by the global increase in oil prices include trains, as well as long-haul trucks and even tanker ships, many of which are now starting to use liquefied natural gas (LNG) instead of diesel fuel. Special tanks are required to keep the LNG cold, making the fuel denser and therefore more efficient to transport. Chart Industries (0.34% of the fund’s holdings at fiscal year end) is one of the leading producers of cryogenic tanks and is making them for transport companies around the world, from the U.S. to China. “Some companies already have made the switch, such as United Parcel Service,” Barry says. “Now China is becoming more active in this area as it tries to tackle the country’s pollution problem. Natural gas burns a lot cleaner than diesel so the government doesn’t tax LNG as heavily, making it more cost effective. This is likely to drive global growth for Chart Industries over the next decade.”
The automotive industry also is highly global: U.S.-based companies have plants overseas and foreign automakers have plants in the U.S. In addition to being affected by global markets, the auto industry also is impacted by global oil prices. Several automakers are redesigning the internal combustion engines in their cars for better fuel efficiency, using lighter materials and new equipment from parts suppliers such as BorgWarner (0.30% of the fund’s holdings at fiscal year end). “The company is one of the leading makers of turbochargers, which were previously used only in high-end sports cars,” explains Barry. “Now we’re starting to see them in standard cars because turbochargers help burn fuel more efficiently, allowing for smaller, lighter engines, giving drivers better mileage per gallon without losing power.”
BorgWarner’s customers are spread around the world, from the U.S. and Europe to China and Japan. “It is a truly global supplier of auto parts to most major
8 | AMCAP Fund |
James Terrile
Portfolio manager
BorgWarner’s competitive advantage is the company’s technical know-how in creating highly sophisticated engine systems. It is a truly global supplier of auto parts to most major car companies.
car companies,” says portfolio manager James Terrile, noting that its revenues have grown three times as fast as the auto industry over the past two decades, in part due to increasing international demand for its products. “BorgWarner’s competitive advantage is the company’s technical know-how in creating highly sophisticated engine systems.”
Drug makers go it alone in foreign markets
U.S. companies in some of the world’s most cutting-edge industries are benefiting from increased global demand. Pharmaceutical and biotechnology companies are experiencing strong growth as they develop new drugs to treat diseases around the world. Analyst Craig Gordon says they are taking the initiative to sell these drugs in attractive new markets overseas. “The biotech industry has seen a resurgence of innovation, greater global pricing power and lower political pressure in the developed world,” says Craig. “It seems like society has become more willing to pay for innovation.”
One reason many U.S. biotechnology companies are becoming more global is because investors demand it. While many firms have traditionally licensed out their drugs in other countries, it’s more lucrative for them to enter new markets on their own, even if it means raising
AMCAP Fund | 9 |
Craig Gordon Investment analyst | Brad Barrett Investment analyst |
capital to do so. “Too much money is left on the table when they partner so U.S. companies are being more aggressive by going it alone, benefiting from growth abroad in places like Europe, Japan and even some emerging markets,” explains Craig, noting that many foreign governments are offering attractive pricing and faster regulatory approval for innovative new drugs.
Many of AMCAP’s largest holdings in the health care sector are seeking to take advantage of these global opportunities, including Gilead Sciences, Allergan and Amgen. Gilead has been mostly known for its HIV drugs in the U.S. and Europe, but more recently its global strategy has been focused on treatments for hepatitis C and cancer, two of the biggest areas for potential growth. “Gilead Sciences has been a great company for the fund, with its HIV business driving much of the growth in the U.S.,” says James. “Now Gilead’s international business is becoming bigger, especially within the growing hepatitis C market.”
Internet and media create a global platform
Another cutting-edge area that has seen strong growth is technology-focused consumer companies, especially those that tap the power of the Internet and provide users with seemingly unlimited information and endless entertainment options
10 | AMCAP Fund |
Eric Richter
Portfolio manager
There are a growing number of industries in which it is becoming more difficult or even impossible to be a leading company in the U.S. without being a global leader as well.
on a global scale. Internet and media companies such as Google and Netflix are connecting users around the world, allowing them to access the latest content regardless of where they are physically. Both are large holdings in AMCAP; while our analysts remain optimistic about their domestic growth, they are also excited by their potential overseas.
“Both companies began by growing their businesses in the U.S., but now they have evolved to doing business on a global scale,” notes Claudia, who says the fund typically looks for companies with long-term growth strategies either by product or market. “In AMCAP, our primary focus is on U.S.-based growth companies, but for those companies in global industries we pay particular attention to their ability to take advantage of that global growth opportunity.”
Internet and media analyst Brad Barrett, who covers Google and Netflix, expects well over half of their revenues to eventually come from abroad. “Most Internet users are located outside the U.S., and it’s relatively inexpensive for these companies to roll out their products and services globally,” says Brad. “The internet industry is not all that idiosyncratic so you tend to have the same leaders globally. Because of their scale, it’s difficult for foreign competitors to go up against U.S. companies that are spending billions of dollars around the world.”
While Google is already a truly global company, Netflix is still in the process of rolling out its streaming online video service to other parts of the world, including much of Europe, Latin America and eventually parts of Asia. But its U.S. business continues to grow and is a good indicator of the company’s potential success abroad. “There is still a lot of growth potential in the U.S., which is likely to remain the company’s largest single market, so it very much matters how well Netflix does here,” Brad says.
Similarly, satellite television provider DirecTV has a healthy U.S. business, but also a bright future in Latin America. “The company continues to take market share in the U.S. and generate more revenue per subscriber here,” notes Brad. He says DirecTV is able to use the same satellite technology it has in the U.S. in Latin America, which is the main source of the company’s profit growth. Portfolio manager Eric Richter adds: “While it has a very profitable business here in the U.S., what makes DirecTV attractive is its rapidly growing operation in Latin America.”
As these examples show, in many industries U.S. companies choose to go after growth wherever they can find it, even if it takes them to other parts of the world. AMCAP’s primary focus is on investing in U.S.-based companies that have a proven history of growth and that are expected to have strong growth in the future. This focus sometimes requires global analysis and the fund’s investment professionals to take full advantage of our organization’s global research capabilities to understand a company’s growth potential beyond the borders of the U.S.
“There are a growing number of industries in which it is becoming more difficult or even impossible to be a leading company in the U.S. without being a global leader as well,” says Eric. “These companies may find more growth opportunities outside the U.S., whether by bringing industrial products to rapidly modernizing economies, taking novel technologies to countries whose regulatory regimes facilitate quicker adoption, or by transplanting successful but mature U.S. consumer business models to countries with an expanding middle class. Whatever the case may be, we need to be aware of these factors to make sure we’re investing in the most attractive U.S.-based companies that can grow over the long term, whether at home or abroad.” ■
AMCAP Fund | 11 |
Summary investment portfolio February 28, 2014
Investment sector diversification | Percent of net assets |
Common stocks 87.49% | Shares | Value (000) | Percent of net assets | |||||||||
Health care 23.42% | ||||||||||||
Gilead Sciences, Inc.1 | 19,127,226 | $ | 1,583,543 | 4.05 | % | |||||||
Develops drugs to treat infectious diseases and cancer. | ||||||||||||
Biogen Idec Inc.1 | 2,633,400 | 897,147 | 2.29 | |||||||||
A leader in developing therapies to treat multiple sclerosis and cancer. | ||||||||||||
Alexion Pharmaceuticals, Inc.1 | 4,212,800 | 744,823 | 1.90 | |||||||||
Biopharmaceutical company focused on treating severe and ultra-rare disorders. | ||||||||||||
Amgen Inc. | 5,814,700 | 721,139 | 1.84 | |||||||||
The world’s largest biotechnology company. | ||||||||||||
UnitedHealth Group Inc. | 6,501,700 | 502,386 | 1.28 | |||||||||
Provides managed health care services across the U.S. | ||||||||||||
Allergan, Inc. | 3,560,000 | 452,120 | 1.16 | |||||||||
Produces eye care, skin care and specialty pharmaceutical products, including Botox. | ||||||||||||
BioMarin Pharmaceutical Inc.1 | 5,252,661 | 425,466 | 1.09 | |||||||||
Biotechnology company engaged in the treatment of serious diseases and medical conditions. | ||||||||||||
Aetna Inc. | 5,850,000 | 425,353 | 1.09 | |||||||||
A leading provider of health, dental, group life, disability and long-term care insurance. | ||||||||||||
Stryker Corp. | 5,092,040 | 408,585 | 1.04 | |||||||||
A global leader in the medical technology industry, particularly in the orthopaedic market. | ||||||||||||
Express Scripts Holding Co.1 | 5,250,000 | 395,377 | 1.01 | |||||||||
Operates a network of pharmacies and mail-order prescription services. | ||||||||||||
St. Jude Medical, Inc. | 5,626,465 | 378,774 | .97 | |||||||||
Manufactures mechanical heart valves, pacemakers and other devices to treat cardiovascular diseases. | ||||||||||||
Edwards Lifesciences Corp.1 | 4,953,900 | 345,584 | .88 | |||||||||
Manufacturer of tissue heart valves and related repair products for the treatment of advanced cardiovascular disease. | ||||||||||||
Hologic, Inc.1 | 12,624,100 | 274,953 | .70 | |||||||||
Manufacturer of various medical technologies relating to women’s health care. | ||||||||||||
Endo Health Solutions Inc.1 | 2,916,500 | 232,795 | .59 | |||||||||
Provides specialty health care solutions. | ||||||||||||
Other securities | 1,382,272 | 3.53 | ||||||||||
9,170,317 | 23.42 |
12 | AMCAP Fund |
Shares | Value (000) | Percent of net assets | ||||||||||
Information technology 18.79% | ||||||||||||
Google Inc., Class A1 | 870,210 | $ | 1,057,871 | 2.70 | % | |||||||
One of the most frequently used website search engines in the world. | ||||||||||||
Oracle Corp. | 20,835,000 | 814,857 | 2.08 | |||||||||
Major supplier of database management software. Also develops business applications and provides consulting and support. | ||||||||||||
Accenture PLC, Class A | 6,984,600 | 582,166 | 1.49 | |||||||||
Management consulting, technology services and outsourcing company. | ||||||||||||
Texas Instruments Inc. | 12,370,000 | 556,155 | 1.42 | |||||||||
Global designer and producer of semiconductors. | ||||||||||||
Avago Technologies Ltd. | 8,600,000 | 530,620 | 1.36 | |||||||||
Manufacturer of analog interface components and subsystems for communications, industrial and consumer applications. | ||||||||||||
ASML Holding NV | 3,800,000 | 330,706 | .84 | |||||||||
A leading supplier of lithography equipment used in manufacturing semiconductors. | ||||||||||||
Adobe Systems Inc.1 | 4,725,000 | 324,182 | .83 | |||||||||
Computer software manufacturer of multimedia and creativity products. | ||||||||||||
Microsoft Corp. | 8,425,000 | 322,762 | .82 | |||||||||
A world leader in software and Internet technologies. Its products include the Windows operating system and Office software. | ||||||||||||
Intuit Inc. | 4,063,000 | 317,524 | .81 | |||||||||
Produces user-friendly financial software, including Quicken and TurboTax, and offers services to home and small-business users. | ||||||||||||
Cognizant Technology Solutions Corp., Class A1 | 2,950,000 | 306,977 | .78 | |||||||||
Develops custom software and provides integration and outsourcing services. | ||||||||||||
Yahoo! Inc.1 | 6,669,000 | 257,890 | .66 | |||||||||
One of the three largest Internet portals, offering online media, commerce and communications services to consumers and businesses worldwide. | ||||||||||||
Other securities | 1,956,122 | 5.00 | ||||||||||
7,357,832 | 18.79 | |||||||||||
Consumer discretionary 11.23% | ||||||||||||
Netflix, Inc.1 | 1,952,000 | 869,870 | 2.22 | |||||||||
Internet subscription service for watching TV shows and movies. | ||||||||||||
DIRECTV1 | 7,900,000 | 613,040 | 1.57 | |||||||||
Digital television services provider in the United States, Latin America and the Caribbean. | ||||||||||||
Johnson Controls, Inc. | 8,619,094 | 425,783 | 1.08 | |||||||||
A leading manufacturer of components for automotive systems and building controls. | ||||||||||||
lululemon athletica inc.1 | 5,977,000 | 300,703 | .77 | |||||||||
Manufacturer and retailer of yoga-inspired athletic apparel. | ||||||||||||
Amazon.com, Inc.1 | 764,000 | 276,644 | .71 | |||||||||
Major online retailer of books, CDs, DVDs, toys, apparel, home furnishings and other products. | ||||||||||||
NIKE, Inc., Class B | 3,155,000 | 247,036 | .63 | |||||||||
The world’s leading athletic shoe company. Also operates shoe and sportswear stores. | ||||||||||||
Other securities | 1,663,821 | 4.25 | ||||||||||
4,396,897 | 11.23 |
AMCAP Fund | 13 |
Common stocks (continued) | Shares | Value (000) | Percent of net assets | |||||||||
Industrials 9.19% | ||||||||||||
Nielsen Holdings NV | 10,091,161 | $ | 477,716 | 1.22 | % | |||||||
Marketing and advertisement measurement company. | ||||||||||||
Precision Castparts Corp. | 1,425,000 | 367,479 | .94 | |||||||||
Manufactures jet engine parts, valves and industrial tools. | ||||||||||||
General Dynamics Corp. | 3,100,000 | 339,574 | .87 | |||||||||
This major defense contractor manufactures warships, submarines and information systems. | ||||||||||||
Union Pacific Corp. | 1,728,350 | 311,760 | .80 | |||||||||
Operates the largest railroad in the U.S.; also delivers freight to Canada and Mexico. | ||||||||||||
United Parcel Service, Inc., Class B | 2,630,000 | 251,875 | .64 | |||||||||
The world’s largest package delivery company and express carrier. | ||||||||||||
Other securities | 1,848,745 | 4.72 | ||||||||||
3,597,149 | 9.19 | |||||||||||
Energy 7.97% | ||||||||||||
Schlumberger Ltd. | 6,728,900 | 625,788 | 1.60 | |||||||||
A leading provider of services and technology to the petroleum industry. | ||||||||||||
Baker Hughes Inc. | 7,490,500 | 473,999 | 1.21 | |||||||||
A leading provider of drilling services and products to oil, gas and mining industries around the world. | ||||||||||||
EOG Resources, Inc. | 2,177,700 | 412,500 | 1.05 | |||||||||
An oil and gas exploration and production company with global operations. | ||||||||||||
Southwestern Energy Co.1 | 9,254,683 | 382,588 | .98 | |||||||||
Energy company engaged in the exploration, development and production of natural gas and crude oil. | ||||||||||||
FMC Technologies, Inc.1 | 6,966,122 | 349,978 | .89 | |||||||||
Engaged in offshore energy production, food processing and airplane loading systems. | ||||||||||||
Apache Corp. | 2,958,900 | 234,611 | .60 | |||||||||
Oil and gas exploration and development company with onshore and offshore operations worldwide. | ||||||||||||
Other securities | 641,215 | 1.64 | ||||||||||
3,120,679 | 7.97 | |||||||||||
Financials 4.06% | ||||||||||||
Progressive Corp. | 18,313,162 | 448,489 | 1.15 | |||||||||
Offers auto insurance through independent agents, by telephone and on the Internet. | ||||||||||||
Capital One Financial Corp. | 3,750,000 | 275,362 | .70 | |||||||||
One of the largest U.S. credit card issuers. | ||||||||||||
Other securities | 863,657 | 2.21 | ||||||||||
1,587,508 | 4.06 |
14 | AMCAP Fund |
Shares | Value (000) | Percent of net assets | ||||||||||
Consumer staples 3.75% | ||||||||||||
CVS/Caremark Corp. | 5,250,000 | $ | 383,985 | .98 | % | |||||||
A major U.S. drugstore chain. | ||||||||||||
Green Mountain Coffee Roasters, Inc. | 2,206,882 | 242,272 | .62 | |||||||||
Engages in the specialty coffee and coffeemaker businesses in the U.S. and Canada. | ||||||||||||
Other securities | 840,832 | 2.15 | ||||||||||
1,467,089 | 3.75 | |||||||||||
Materials 3.52% | ||||||||||||
Celanese Corp., Series A2 | 8,496,922 | 453,651 | 1.16 | |||||||||
Producer of industrial chemicals, acetyl products and engineered polymers. | ||||||||||||
AptarGroup, Inc.2 | 4,326,000 | 286,251 | .73 | |||||||||
Manufacturer of dispensing systems for fragrances, pharmaceuticals and personal care products. | ||||||||||||
Praxair, Inc. | 1,760,531 | 229,520 | .59 | |||||||||
A major supplier of industrial gases in North and South America. | ||||||||||||
Other securities | 408,921 | 1.04 | ||||||||||
1,378,343 | 3.52 | |||||||||||
Other 0.88% | ||||||||||||
Other securities | 345,493 | .88 | ||||||||||
Miscellaneous 4.68% | ||||||||||||
Other common stocks in initial period of acquisition | 1,833,105 | 4.68 | ||||||||||
Total common stocks (cost: $20,940,246,000) | 34,254,412 | 87.49 | ||||||||||
Short-term securities 12.19% | Principal amount (000) | |||||||||||
Freddie Mac 0.07%–0.17% due 3/12/2014–1/6/2015 | $ | 1,492,600 | 1,492,177 | 3.81 | ||||||||
Federal Home Loan Bank 0.55%–0.19% due 3/7–12/23/2014 | 1,167,700 | 1,167,507 | 2.98 | |||||||||
Fannie Mae 0.12%–0.18% due 5/1–9/22/2014 | 526,200 | 526,094 | 1.34 | |||||||||
Other securities | 1,587,594 | 4.06 | ||||||||||
Total short-term securities (cost: $4,772,873,000) | 4,773,372 | 12.19 | ||||||||||
Total investment securities (cost: $25,713,119,000) | 39,027,784 | 99.68 | ||||||||||
Other assets less liabilities | 124,112 | .32 | ||||||||||
Net assets | $ | 39,151,896 | 100.00 | % |
This 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.
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.
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. Some of these securities (with an aggregate value of $1,102,744,000, which represented 2.82% of the net assets of the fund) were acquired in transactions exempt from registration under section 4(2) of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
AMCAP Fund | 15 |
Investments in affiliates
A company is 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, 2014, appear below.
Beginning shares | Additions | Reductions | Ending shares | Dividend income (000) | Value of affiliates at 2/28/2014 (000) | |||||||||||||||||||
Celanese Corp., Series A | 8,335,522 | 161,400 | — | 8,496,922 | $ | 5,309 | $ | 453,651 | ||||||||||||||||
AptarGroup, Inc. | 4,326,000 | — | — | 4,326,000 | 4,326 | 286,251 | ||||||||||||||||||
MITIE Group PLC | 24,021,000 | — | — | 24,021,000 | 4,027 | 139,016 | ||||||||||||||||||
Chart Industries, Inc.1 | 1,399,102 | 1,079,800 | 899,102 | 1,579,800 | — | 132,008 | ||||||||||||||||||
Texas Roadhouse, Inc. | 4,587,200 | — | — | 4,587,200 | 2,202 | 121,331 | ||||||||||||||||||
Polypore International, Inc.1 | 3,020,000 | — | — | 3,020,000 | — | 104,522 | ||||||||||||||||||
C&J Energy Services, Inc.1 | — | 3,540,729 | — | 3,540,729 | — | 91,528 | ||||||||||||||||||
Itron, Inc.1 | 2,548,314 | — | 529,439 | 2,018,875 | — | 70,661 | ||||||||||||||||||
Big Lots, Inc.1,3 | 2,986,200 | 808,600 | 1,325,000 | 2,469,800 | — | — | ||||||||||||||||||
Logitech International SA3 | 11,000,000 | — | 11,000,000 | — | — | — | ||||||||||||||||||
Netflix, Inc.1,3 | 2,828,300 | — | 876,300 | 1,952,000 | — | — | ||||||||||||||||||
$ | 15,864 | $ | 1,398,968 |
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 | Unaffiliated issuer at 2/28/2014. |
See Notes to Financial Statements |
16 | AMCAP Fund |
Statement of assets and liabilities
at February 28, 2014
(dollars in thousands)
Assets: | ||||||||
Investment securities, at value: | ||||||||
Unaffiliated issuers (cost: $24,622,737) | $ | 37,628,816 | ||||||
Affiliated issuers (cost: $1,090,382) | 1,398,968 | $ | 39,027,784 | |||||
Cash | 59 | |||||||
Receivables for: | ||||||||
Sales of investments | 158,305 | |||||||
Sales of fund’s shares | 101,761 | |||||||
Dividends | 23,266 | 283,332 | ||||||
39,311,175 | ||||||||
Liabilities: | ||||||||
Payables for: | ||||||||
Purchases of investments | 62,873 | |||||||
Repurchases of fund’s shares | 68,580 | |||||||
Investment advisory services | 8,997 | |||||||
Services provided by related parties | 15,831 | |||||||
Trustees’ deferred compensation | 2,643 | |||||||
Other | 355 | 159,279 | ||||||
Net assets at February 28, 2014 | $ | 39,151,896 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of beneficial interest | $ | 24,538,135 | ||||||
Undistributed net investment income | 24,254 | |||||||
Undistributed net realized gain | 1,274,825 | |||||||
Net unrealized appreciation | 13,314,682 | |||||||
Net assets at February 28, 2014 | $ | 39,151,896 |
(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (1,379,247 total shares outstanding)
Net assets | Shares outstanding | Net asset value per share | ||||||||||
Class A | $ | 22,566,889 | 790,971 | $ | 28.53 | |||||||
Class B | 195,212 | 7,289 | 26.78 | |||||||||
Class C | 1,450,977 | 54,719 | 26.52 | |||||||||
Class F-1 | 3,035,852 | 107,051 | 28.36 | |||||||||
Class F-2 | 1,983,471 | 69,336 | 28.61 | |||||||||
Class 529-A | 1,192,883 | 42,075 | 28.35 | |||||||||
Class 529-B | 31,190 | 1,170 | 26.66 | |||||||||
Class 529-C | 298,449 | 11,186 | 26.68 | |||||||||
Class 529-E | 61,896 | 2,215 | 27.94 | |||||||||
Class 529-F-1 | 71,726 | 2,522 | 28.43 | |||||||||
Class R-1 | 89,764 | 3,319 | 27.05 | |||||||||
Class R-2 | 556,878 | 20,606 | 27.02 | |||||||||
Class R-3 | 1,017,731 | 36,279 | 28.05 | |||||||||
Class R-4 | 919,132 | 32,406 | 28.36 | |||||||||
Class R-5 | 1,228,553 | 42,778 | 28.72 | |||||||||
Class R-6 | 4,451,293 | 155,325 | 28.66 |
See Notes to Financial Statements
AMCAP Fund | 17 |
Statement of operations
for the year ended February 28, 2014 | (dollars in thousands) |
Investment income: | ||||||||
Income: | ||||||||
Dividends (net of non-U.S. taxes of $2,565; also includes $15,864 from affiliates) | $ | 341,159 | ||||||
Interest | 5,002 | $ | 346,161 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 103,219 | |||||||
Distribution services | 82,028 | |||||||
Transfer agent services | 39,316 | |||||||
Administrative services | 8,706 | |||||||
Reports to shareholders | 1,406 | |||||||
Registration statement and prospectus | 547 | |||||||
Trustees’ compensation | 811 | |||||||
Auditing and legal | 135 | |||||||
Custodian | 244 | |||||||
State and local taxes | 79 | |||||||
Other | 1,528 | |||||||
Total fees and expenses before waiver | 238,019 | |||||||
Less investment advisory services waiver | 37 | |||||||
Total fees and expenses after waiver | 237,982 | |||||||
Net investment income | 108,179 | |||||||
Net realized gain and unrealized appreciation on investments and currency: | ||||||||
Net realized gain (loss) on: Investments (includes $131,506 net gain from affiliates) | 3,533,382 | |||||||
Currency transactions | (475 | ) | 3,532,907 | |||||
Net unrealized appreciation on: | ||||||||
Investments | 6,159,627 | |||||||
Currency translations | 23 | 6,159,650 | ||||||
Net realized gain and unrealized appreciation on investments and currency | 9,692,557 | |||||||
Net increase in net assets resulting from operations | $ | 9,800,736 |
*Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
Statements of changes in net assets
(dollars in thousands)
Year ended February 28 | ||||||||
2014 | 2013 | |||||||
Operations: | ||||||||
Net investment income | $ | 108,179 | $ | 110,791 | ||||
Net realized gain on investments and currency transactions | 3,532,907 | 1,438,466 | ||||||
Net unrealized appreciation on investments and currency translations | 6,159,650 | 1,227,679 | ||||||
Net increase in net assets resulting from operations | 9,800,736 | 2,776,936 | ||||||
Dividends and distributions paid to shareholders: | ||||||||
Dividends from net investment income | (90,333 | ) | (97,672 | ) | ||||
Distributions from net realized gain on investments | (2,759,331 | ) | — | |||||
Total dividends and distributions paid to shareholders | (2,849,664 | ) | (97,672 | ) | ||||
Net capital share transactions | 4,675,059 | 670,646 | ||||||
Total increase in net assets | 11,626,131 | 3,349,910 | ||||||
Net assets: | ||||||||
Beginning of year | 27,525,765 | 24,175,855 | ||||||
End of year (including undistributed net investment income: $24,254 and $88,021, respectively) | $ | 39,151,896 | $ | 27,525,765 |
See Notes to Financial Statements
18 | AMCAP Fund |
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 described further in the following table:
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, | None | None | None | |||
R-4, R-5 and R-6 |
*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 share 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 in this section, 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. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. 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.
AMCAP Fund | 19 |
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. 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 in the fund’s statement of operations. 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 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 valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; 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
20 | AMCAP Fund |
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, 2014 (dollars in thousands):
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Health care | $ | 9,170,317 | $ | — | $ | — | $ | 9,170,317 | ||||||||
Information technology | 7,357,832 | — | — | 7,357,832 | ||||||||||||
Consumer discretionary | 4,396,897 | — | — | 4,396,897 | ||||||||||||
Industrials | 3,597,149 | — | — | 3,597,149 | ||||||||||||
Energy | 3,120,679 | — | — | 3,120,679 | ||||||||||||
Financials | 1,587,508 | — | — | 1,587,508 | ||||||||||||
Consumer staples | 1,467,089 | — | — | 1,467,089 | ||||||||||||
Materials | 1,378,343 | — | — | 1,378,343 | ||||||||||||
Other | 345,493 | — | — | 345,493 | ||||||||||||
Miscellaneous | 1,833,105 | — | — | 1,833,105 | ||||||||||||
Short-term securities | — | 4,773,372 | — | 4,773,372 | ||||||||||||
Total | $ | 34,254,412 | $ | 4,773,372 | $ | — | $ | 39,027,784 |
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 — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations.
AMCAP Fund | 21 |
Issuer risks — The values of, and the income generated by, securities held by the fund may also decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiative.
Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.
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, 2014, 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 2010 and by state tax authorities for tax years before 2009.
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 deferred expenses. 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, 2014, the fund reclassified $474,000 from undistributed net investment income to undistributed net realized gain, $81,139,000 from undistributed net investment income to capital paid in on shares of beneficial interest, and $65,270,000 from undistributed net realized gain to capital paid in on shares of beneficial interest to align financial reporting with tax reporting.
As of February 28, 2014, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):
Undistributed ordinary income | $ | 26,897 | ||
Undistributed long-term capital gain | 1,274,827 | |||
Gross unrealized appreciation on investment securities | 13,760,415 | |||
Gross unrealized depreciation on investment securities | (445,751 | ) | ||
Net unrealized appreciation on investment securities | 13,314,664 | |||
Cost of investment securities | 25,713,120 |
22 | AMCAP Fund |
The tax character of distributions paid to shareholders was as follows (dollars in thousands):
Year ended February 28, 2014 | Year ended February 28, 2013 | |||||||||||||||||||||||
Share class | Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||||||
Class A | $ | 48,052 | $ | 1,592,857 | $ | 1,640,909 | $ | 61,089 | $ | — | $ | 61,089 | ||||||||||||
Class B | — | 17,000 | 17,000 | — | — | — | ||||||||||||||||||
Class C | — | 111,537 | 111,537 | — | — | — | ||||||||||||||||||
Class F-1 | 8,355 | 217,398 | 225,753 | 7,357 | — | 7,357 | ||||||||||||||||||
Class F-2 | 5,788 | 131,654 | 137,442 | 6,626 | — | 6,626 | ||||||||||||||||||
Class 529-A | 2,020 | 84,225 | 86,245 | 2,923 | — | 2,923 | ||||||||||||||||||
Class 529-B | — | 2,715 | 2,715 | — | — | — | ||||||||||||||||||
Class 529-C | — | 22,316 | 22,316 | — | — | — | ||||||||||||||||||
Class 529-E | 6 | 4,441 | 4,447 | 64 | — | 64 | ||||||||||||||||||
Class 529-F-1 | 219 | 5,063 | 5,282 | 243 | — | 243 | ||||||||||||||||||
Class R-1 | — | 6,429 | 6,429 | — | — | — | ||||||||||||||||||
Class R-2 | — | 42,043 | 42,043 | — | — | — | ||||||||||||||||||
Class R-3 | 93 | 73,367 | 73,460 | 1,114 | — | 1,114 | ||||||||||||||||||
Class R-4 | 1,993 | 63,754 | 65,747 | 2,136 | — | 2,136 | ||||||||||||||||||
Class R-5 | 4,991 | 88,208 | 93,199 | 5,966 | — | 5,966 | ||||||||||||||||||
Class R-6 | 18,816 | 296,324 | 315,140 | 10,154 | — | 10,154 | ||||||||||||||||||
Total | $ | 90,333 | $ | 2,759,331 | $ | 2,849,664 | $ | 97,672 | $ | — | $ | 97,672 |
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, 2014, the investment advisory services fee was $103,219,000, which was equivalent to an annualized rate of 0.313% of average daily net assets. During the year ended February 28, 2014, CRMC voluntarily reduced the investment advisory services fee to a proposed annualized rate of 0.286% on such assets in excess of $34 billion. Investment advisory services fees are presented in the fund’s statement of operations gross of the waiver from CRMC. For the year ended February 28, 2014, total investment advisory services fees waived by CRMC were $37,000.
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 in this section. 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, 2014, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.
AMCAP Fund | 23 |
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 in the fund’s statement of operations. The Commonwealth of Virginia is not considered a related party.
For the year ended February 28, 2014, class-specific expenses under the agreements were as follows (dollars in thousands):
Share class | Distribution services | Transfer agent services | Administrative services | 529 plan services | |||||||||||
Class A | $44,637 | $26,503 | $1,925 | Not applicable | |||||||||||
Class B | 2,139 | 314 | Not applicable | Not applicable | |||||||||||
Class C | 12,798 | 1,780 | 642 | Not applicable | |||||||||||
Class F-1 | 6,534 | 3,130 | 1,307 | Not applicable | |||||||||||
Class F-2 | Not applicable | 1,711 | 736 | Not applicable | |||||||||||
Class 529-A | 2,166 | 1,115 | 506 | $987 | |||||||||||
Class 529-B | 336 | 43 | 17 | 33 | |||||||||||
Class 529-C | 2,528 | 299 | 127 | 248 | |||||||||||
Class 529-E | 264 | 36 | 26 | 52 | |||||||||||
Class 529-F-1 | — | 66 | 30 | 59 | |||||||||||
Class R-1 | 716 | 75 | 36 | Not applicable | |||||||||||
Class R-2 | 3,650 | 1,591 | 245 | Not applicable | |||||||||||
Class R-3 | 4,373 | 1,371 | 437 | Not applicable | |||||||||||
Class R-4 | 1,887 | 755 | 378 | Not applicable | |||||||||||
Class R-5 | Not applicable | 514 | 529 | Not applicable | |||||||||||
Class R-6 | Not applicable | 13 | 1,765 | Not applicable | |||||||||||
Total class-specific expenses | $82,028 | $39,316 | $8,706 | $1,379 |
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 $811,000 in the fund’s statement of operations includes $390,000 in current fees (either paid in cash or deferred) and a net increase of $421,000 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.
24 | AMCAP Fund |
7. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Sales* | Reinvestments of dividends and distributions | Repurchases* | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended February 28, 2014 | ||||||||||||||||||||||||||||||||
Class A | $ | 2,716,872 | 104,512 | $ | 1,612,046 | 61,251 | $ | (2,257,785 | ) | (86,827 | ) | $ | 2,071,133 | 78,936 | ||||||||||||||||||
Class B | 10,004 | 409 | 16,899 | 683 | (117,816 | ) | (4,836 | ) | (90,913 | ) | (3,744 | ) | ||||||||||||||||||||
Class C | 253,346 | 10,373 | 109,792 | 4,464 | (309,659 | ) | (12,674 | ) | 53,479 | 2,163 | ||||||||||||||||||||||
Class F-1 | 1,089,344 | 42,550 | 222,772 | 8,527 | (788,605 | ) | (29,991 | ) | 523,511 | 21,086 | ||||||||||||||||||||||
Class F-2 | 751,179 | 28,376 | 133,720 | 5,060 | (509,035 | ) | (20,336 | ) | 375,864 | 13,100 | ||||||||||||||||||||||
Class 529-A | 141,619 | 5,470 | 86,217 | 3,294 | (109,589 | ) | (4,240 | ) | 118,247 | 4,524 | ||||||||||||||||||||||
Class 529-B | 1,132 | 46 | 2,714 | 110 | (16,040 | ) | (655 | ) | (12,194 | ) | (499 | ) | ||||||||||||||||||||
Class 529-C | 40,384 | 1,647 | 22,311 | 901 | (32,787 | ) | (1,337 | ) | 29,908 | 1,211 | ||||||||||||||||||||||
Class 529-E | 7,620 | 297 | 4,445 | 172 | (6,627 | ) | (259 | ) | 5,438 | 210 | ||||||||||||||||||||||
Class 529-F-1 | 15,060 | 579 | 5,278 | 201 | (10,667 | ) | (407 | ) | 9,671 | 373 | ||||||||||||||||||||||
Class R-1 | 26,467 | 1,056 | 6,419 | 255 | (15,935 | ) | (641 | ) | 16,951 | 670 | ||||||||||||||||||||||
Class R-2 | 120,232 | 4,870 | 41,910 | 1,673 | (141,104 | ) | (5,729 | ) | 21,038 | 814 | ||||||||||||||||||||||
Class R-3 | 252,703 | 9,847 | 73,403 | 2,827 | (243,968 | ) | (9,509 | ) | 82,138 | 3,165 | ||||||||||||||||||||||
Class R-4 | 286,267 | 10,903 | 65,628 | 2,506 | (219,859 | ) | (8,371 | ) | 132,036 | 5,038 | ||||||||||||||||||||||
Class R-5 | 269,153 | 10,168 | 92,492 | 3,499 | (288,929 | ) | (11,019 | ) | 72,716 | 2,648 | ||||||||||||||||||||||
Class R-6 | 1,386,792 | 54,438 | 314,984 | 11,948 | (435,740 | ) | (16,566 | ) | 1,266,036 | 49,820 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 7,368,174 | 285,541 | $ | 2,811,030 | 107,371 | $ | (5,504,145 | ) | (213,397 | ) | $ | 4,675,059 | 179,515 | ||||||||||||||||||
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 |
* 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 $9,002,236,000 and $8,474,621,000, respectively, during the year ended February 28, 2014.
9. Subsequent events
On March 13, 2014, the fund’s board of trustees approved an amended investment advisory services agreement effective April 1, 2014, decreasing the annual rate of net assets in excess of $34 billion from a rate of 0.290% to a rate of 0.286%. CRMC voluntarily reduced investment advisory services fees based on the decreased rate until the amended investment advisory services agreement became effective.
AMCAP Fund | 25 |
Financial highlights
Income from | ||||||||||||||||||||||||||||||||||||||||||||||||
investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Net gains on | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||
Net asset | securities | Dividends | Total | Ratio of | net income | |||||||||||||||||||||||||||||||||||||||||||
value, | Net | (both | Total from | (from net | Distributions | dividends | Net asset | Net assets, | expenses | (loss) to | ||||||||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | (from capital | and | value, end | Total | end of period | to average | average | |||||||||||||||||||||||||||||||||||||
of period | income (loss) | unrealized) | operations | income) | gains) | distributions | of period | return2 | (in millions) | net assets | net assets | |||||||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | $ | 23.06 | $ | .09 | $ | 7.61 | $ | 7.70 | $ | (.07 | ) | $ | (2.16 | ) | $ | (2.23 | ) | $ | 28.53 | 34.38 | % | $ | 22,567 | .70 | % | .35 | % | |||||||||||||||||||||
Year ended 2/28/2013 | 20.78 | .10 | 2.26 | 2.36 | (.08 | ) | — | (.08 | ) | 23.06 | 11.44 | 16,417 | .74 | .48 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.78 | .10 | .97 | 1.07 | (.07 | ) | — | (.07 | ) | 20.78 | 5.45 | 15,072 | .73 | .50 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.55 | .08 | 3.23 | 3.31 | (.08 | ) | — | (.08 | ) | 19.78 | 20.09 | 14,891 | .73 | .48 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.44 | .08 | 6.19 | 6.27 | (.16 | ) | — | (.16 | ) | 16.55 | 60.46 | 12,973 | .78 | .57 | ||||||||||||||||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 21.86 | (.10 | ) | 7.18 | 7.08 | — | (2.16 | ) | (2.16 | ) | 26.78 | 33.40 | 195 | 1.47 | (.42 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.77 | (.06 | ) | 2.15 | 2.09 | — | — | — | 21.86 | 10.52 | 241 | 1.50 | (.29 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 18.89 | (.05 | ) | .93 | .88 | — | — | — | 19.77 | 4.66 | 379 | 1.50 | (.27 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 15.85 | (.05 | ) | 3.09 | 3.04 | — | — | — | 18.89 | 19.18 | 562 | 1.50 | (.29 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 9.98 | (.03 | ) | 5.93 | 5.90 | (.03 | ) | — | (.03 | ) | 15.85 | 59.16 | 632 | 1.55 | (.20 | ) | ||||||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 21.66 | (.11 | ) | 7.13 | 7.02 | — | (2.16 | ) | (2.16 | ) | 26.52 | 33.37 | 1,451 | 1.51 | (.46 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.60 | (.07 | ) | 2.13 | 2.06 | — | — | — | 21.66 | 10.51 | 1,139 | 1.54 | (.33 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 18.74 | (.05 | ) | .91 | .86 | — | — | — | 19.60 | 4.59 | 1,138 | 1.52 | (.30 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 15.72 | (.05 | ) | 3.07 | 3.02 | — | — | — | 18.74 | 19.21 | 1,197 | 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 | (.21 | ) | ||||||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.95 | .08 | 7.57 | 7.65 | (.08 | ) | (2.16 | ) | (2.24 | ) | 28.36 | 34.36 | 3,036 | .74 | .31 | |||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.69 | .10 | 2.25 | 2.35 | (.09 | ) | — | (.09 | ) | 22.95 | 11.41 | 1,973 | .74 | .48 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.69 | .10 | .97 | 1.07 | (.07 | ) | — | (.07 | ) | 20.69 | 5.49 | 1,730 | .73 | .50 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.48 | .08 | 3.22 | 3.30 | (.09 | ) | — | (.09 | ) | 19.69 | 20.10 | 1,641 | .72 | .48 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.39 | .09 | 6.16 | 6.25 | (.16 | ) | — | (.16 | ) | 16.48 | 60.46 | 1,421 | .74 | .61 | ||||||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 23.11 | .15 | 7.63 | 7.78 | (.12 | ) | (2.16 | ) | (2.28 | ) | 28.61 | 34.71 | 1,983 | .49 | .56 | |||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.83 | .15 | 2.27 | 2.42 | (.14 | ) | — | (.14 | ) | 23.11 | 11.70 | 1,300 | .50 | .72 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.83 | .14 | .98 | 1.12 | (.12 | ) | — | (.12 | ) | 20.83 | 5.73 | 968 | .49 | .74 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.60 | .12 | 3.24 | 3.36 | (.13 | ) | — | (.13 | ) | 19.83 | 20.38 | 657 | .49 | .71 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.46 | .12 | 6.20 | 6.32 | (.18 | ) | — | (.18 | ) | 16.60 | 60.82 | 367 | .52 | .79 | ||||||||||||||||||||||||||||||||||
Class 529-A: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.93 | .07 | 7.56 | 7.63 | (.05 | ) | (2.16 | ) | (2.21 | ) | 28.35 | 34.28 | 1,193 | .79 | .25 | |||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.68 | .08 | 2.25 | 2.33 | (.08 | ) | — | (.08 | ) | 22.93 | 11.32 | 861 | .82 | .40 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.70 | .08 | .97 | 1.05 | (.07 | ) | — | (.07 | ) | 20.68 | 5.36 | 732 | .80 | .42 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.49 | .07 | 3.22 | 3.29 | (.08 | ) | — | (.08 | ) | 19.70 | 20.03 | 626 | .79 | .41 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.41 | .08 | 6.17 | 6.25 | (.17 | ) | — | (.17 | ) | 16.49 | 60.35 | 474 | .83 | .51 | ||||||||||||||||||||||||||||||||||
Class 529-B: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 21.79 | (.13 | ) | 7.16 | 7.03 | — | (2.16 | ) | (2.16 | ) | 26.66 | 33.22 | 31 | 1.59 | (.55 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.73 | (.08 | ) | 2.14 | 2.06 | — | — | — | 21.79 | 10.44 | 36 | 1.62 | (.41 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 18.87 | (.07 | ) | .93 | .86 | — | — | — | 19.73 | 4.56 | 50 | 1.61 | (.38 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 15.85 | (.06 | ) | 3.08 | 3.02 | — | — | — | 18.87 | 19.05 | 68 | 1.59 | (.38 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.00 | (.04 | ) | 5.93 | 5.89 | (.04 | ) | — | (.04 | ) | 15.85 | 59.02 | 72 | 1.64 | (.29 | ) | ||||||||||||||||||||||||||||||||
Class 529-C: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 21.80 | (.13 | ) | 7.17 | 7.04 | — | (2.16 | ) | (2.16 | ) | 26.68 | 33.25 | 298 | 1.58 | (.53 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.74 | (.08 | ) | 2.14 | 2.06 | — | — | — | 21.80 | 10.44 | 218 | 1.61 | (.39 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 18.88 | (.07 | ) | .93 | .86 | — | — | — | 19.74 | 4.55 | 189 | 1.60 | (.37 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 15.86 | (.06 | ) | 3.08 | 3.02 | — | — | — | 18.88 | 19.04 | 168 | 1.58 | (.38 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.00 | (.04 | ) | 5.95 | 5.91 | (.05 | ) | — | (.05 | ) | 15.86 | 59.02 | 134 | 1.63 | (.28 | ) | ||||||||||||||||||||||||||||||||
Class 529-E: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.63 | — | 3 | 7.47 | 7.47 | — | 3 | (2.16 | ) | (2.16 | ) | 27.94 | 33.96 | 62 | 1.04 | .01 | ||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.41 | .03 | 2.22 | 2.25 | (.03 | ) | — | (.03 | ) | 22.63 | 11.06 | 45 | 1.06 | .15 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.44 | .03 | .96 | .99 | (.02 | ) | — | (.02 | ) | 20.41 | 5.12 | 40 | 1.07 | .16 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.28 | .02 | 3.18 | 3.20 | (.04 | ) | — | (.04 | ) | 19.44 | 19.68 | 35 | 1.08 | .13 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.28 | .03 | 6.10 | 6.13 | (.13 | ) | — | (.13 | ) | 16.28 | 59.86 | 27 | 1.13 | .22 |
26 | AMCAP Fund |
Income from | ||||||||||||||||||||||||||||||||||||||||||||||||
investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||
Net gains on | Ratio of | |||||||||||||||||||||||||||||||||||||||||||||||
Net asset | securities | Dividends | Total | Ratio of | net income | |||||||||||||||||||||||||||||||||||||||||||
value, | Net | (both | Total from | (from net | Distributions | dividends | Net asset | Net assets, | expenses | (loss) to | ||||||||||||||||||||||||||||||||||||||
beginning | investment | realized and | investment | investment | (from capital | and | value, end | Total | end of period | to average | average | |||||||||||||||||||||||||||||||||||||
of period | income (loss) | unrealized) | operations | income) | gains) | distributions | of period | return2 | (in millions) | net assets | net assets | |||||||||||||||||||||||||||||||||||||
Class 529-F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | $ | 22.98 | $ | .12 | $ | 7.59 | $ | 7.71 | $ | (.10 | ) | $ | (2.16 | ) | $ | (2.26 | ) | $ | 28.43 | 34.59 | % | $ | 72 | .58 | % | .47 | % | |||||||||||||||||||||
Year ended 2/28/2013 | 20.73 | .13 | 2.24 | 2.37 | (.12 | ) | — | (.12 | ) | 22.98 | 11.51 | 49 | .61 | .61 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.74 | .12 | .98 | 1.10 | (.11 | ) | — | (.11 | ) | 20.73 | 5.63 | 41 | .59 | .63 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.52 | .11 | 3.22 | 3.33 | (.11 | ) | — | (.11 | ) | 19.74 | 20.27 | 31 | .58 | .62 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.43 | .11 | 6.18 | 6.29 | (.20 | ) | — | (.20 | ) | 16.52 | 60.70 | 20 | .63 | .72 | ||||||||||||||||||||||||||||||||||
Class R-1: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.05 | (.11 | ) | 7.27 | 7.16 | — | (2.16 | ) | (2.16 | ) | 27.05 | 33.42 | 90 | 1.47 | (.42 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.94 | (.06 | ) | 2.17 | 2.11 | — | — | — | 22.05 | 10.58 | 58 | 1.49 | (.28 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.06 | (.05 | ) | .93 | .88 | — | — | — | 19.94 | 4.62 | 56 | 1.50 | (.27 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 15.99 | (.05 | ) | 3.12 | 3.07 | — | — | — | 19.06 | 19.20 | 51 | 1.50 | (.29 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.09 | (.03 | ) | 6.00 | 5.97 | (.07 | ) | — | (.07 | ) | 15.99 | 59.14 | 40 | 1.53 | (.19 | ) | ||||||||||||||||||||||||||||||||
Class R-2: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.03 | (.10 | ) | 7.25 | 7.15 | — | (2.16 | ) | (2.16 | ) | 27.02 | 33.45 | 557 | 1.44 | (.39 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.92 | (.05 | ) | 2.16 | 2.11 | — | — | — | 22.03 | 10.59 | 436 | 1.48 | (.26 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.03 | (.05 | ) | .94 | .89 | — | — | — | 19.92 | 4.68 | 419 | 1.49 | (.27 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 15.97 | (.05 | ) | 3.11 | 3.06 | — | — | — | 19.03 | 19.16 | 431 | 1.50 | (.30 | ) | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.08 | (.04 | ) | 5.98 | 5.94 | (.05 | ) | — | (.05 | ) | 15.97 | 59.02 | 383 | 1.60 | (.25 | ) | ||||||||||||||||||||||||||||||||
Class R-3: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.71 | — | 3 | 7.50 | 7.50 | — | 3 | (2.16 | ) | (2.16 | ) | 28.05 | 33.97 | 1,018 | 1.03 | .02 | ||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.48 | .04 | 2.22 | 2.26 | (.03 | ) | — | (.03 | ) | 22.71 | 11.07 | 752 | 1.04 | .17 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.50 | .03 | .97 | 1.00 | (.02 | ) | — | (.02 | ) | 20.48 | 5.14 | 666 | 1.04 | .18 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.33 | .03 | 3.17 | 3.20 | (.03 | ) | — | (.03 | ) | 19.50 | 19.66 | 631 | 1.05 | .16 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.29 | .04 | 6.11 | 6.15 | (.11 | ) | — | (.11 | ) | 16.33 | 60.02 | 541 | 1.08 | .27 | ||||||||||||||||||||||||||||||||||
Class R-4: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.94 | .08 | 7.57 | 7.65 | (.07 | ) | (2.16 | ) | (2.23 | ) | 28.36 | 34.37 | 919 | .72 | .33 | |||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.67 | .10 | 2.25 | 2.35 | (.08 | ) | — | (.08 | ) | 22.94 | 11.40 | 628 | .73 | .49 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.68 | .09 | .98 | 1.07 | (.08 | ) | — | (.08 | ) | 20.67 | 5.50 | 534 | .73 | .49 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.47 | .08 | 3.21 | 3.29 | (.08 | ) | — | (.08 | ) | 19.68 | 20.07 | 491 | .74 | .46 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.40 | .08 | 6.16 | 6.24 | (.17 | ) | — | (.17 | ) | 16.47 | 60.42 | 378 | .77 | .57 | ||||||||||||||||||||||||||||||||||
Class R-5: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 23.19 | .16 | 7.66 | 7.82 | (.13 | ) | (2.16 | ) | (2.29 | ) | 28.72 | 34.79 | 1,229 | .42 | .63 | |||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.90 | .17 | 2.26 | 2.43 | (.14 | ) | — | (.14 | ) | 23.19 | 11.74 | 931 | .43 | .78 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.89 | .15 | .98 | 1.13 | (.12 | ) | — | (.12 | ) | 20.90 | 5.76 | 872 | .43 | .79 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.64 | .13 | 3.25 | 3.38 | (.13 | ) | — | (.13 | ) | 19.89 | 20.45 | 870 | .44 | .77 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2010 | 10.50 | .13 | 6.22 | 6.35 | (.21 | ) | — | (.21 | ) | 16.64 | 60.97 | 741 | .47 | .89 | ||||||||||||||||||||||||||||||||||
Class R-6: | ||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 23.15 | .18 | 7.64 | 7.82 | (.15 | ) | (2.16 | ) | (2.31 | ) | 28.66 | 34.86 | 4,451 | .37 | .68 | |||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.86 | .18 | 2.26 | 2.44 | (.15 | ) | — | (.15 | ) | 23.15 | 11.83 | 2,442 | .38 | .83 | ||||||||||||||||||||||||||||||||||
Year ended 2/29/2012 | 19.85 | .16 | .99 | 1.15 | (.14 | ) | — | (.14 | ) | 20.86 | 5.84 | 1,290 | .39 | .83 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2011 | 16.60 | .14 | 3.24 | 3.38 | (.13 | ) | — | (.13 | ) | 19.85 | 20.50 | 851 | .39 | .80 | ||||||||||||||||||||||||||||||||||
Period from 5/1/2009 to 2/28/20104,5 | 13.04 | .11 | 3.61 | 3.72 | (.16 | ) | — | (.16 | ) | 16.60 | 28.85 | 380 | .42 | 6 | .90 | 6 |
Year ended February 28 or 29 | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Portfolio turnover rate for all share classes | 29 | % | 27 | % | 31 | % | 28 | % | 29 | % |
1 | Based on average shares outstanding. |
2 | Total returns exclude any applicable sales charges, including contingent deferred sales charges. |
3 | Amount less than $.01. |
4 | Based on operations for the period shown and, accordingly, is not representative of a full year. |
5 | Class R-6 shares were offered beginning May 1, 2009. |
6 | Annualized. |
See Notes to Financial Statements
AMCAP Fund | 27 |
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, 2014, 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, 2014, 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, 2014, 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, 2014
28 | AMCAP Fund |
Expense example | unaudited |
As a fund shareholder, 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, 2013, through February 28, 2014).
Actual expenses:
The first line of each share class in the table on the following 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 following 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 on the following page 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.
AMCAP Fund | 29 |
Beginning account value 9/1/2013 | Ending account value 2/28/2014 | Expenses paid during period* | Annualized expense ratio | ||||||||||
Class A — actual return | $ | 1,000.00 | $ | 1,195.15 | $ | 3.76 | .69 | % | |||||
Class A — assumed 5% return | 1,000.00 | 1,021.37 | 3.46 | .69 | |||||||||
Class B — actual return | 1,000.00 | 1,190.32 | 7.87 | 1.45 | |||||||||
Class B — assumed 5% return | 1,000.00 | 1,017.60 | 7.25 | 1.45 | |||||||||
Class C — actual return | 1,000.00 | 1,190.40 | 8.09 | 1.49 | |||||||||
Class C — assumed 5% return | 1,000.00 | 1,017.41 | 7.45 | 1.49 | |||||||||
Class F-1 — actual return | 1,000.00 | 1,194.58 | 4.03 | .74 | |||||||||
Class F-1 — assumed 5% return | 1,000.00 | 1,021.12 | 3.71 | .74 | |||||||||
Class F-2 — actual return | 1,000.00 | 1,196.44 | 2.67 | .49 | |||||||||
Class F-2 — assumed 5% return | 1,000.00 | 1,022.36 | 2.46 | .49 | |||||||||
Class 529-A — actual return | 1,000.00 | 1,194.16 | 4.24 | .78 | |||||||||
Class 529-A — assumed 5% return | 1,000.00 | 1,020.93 | 3.91 | .78 | |||||||||
Class 529-B — actual return | 1,000.00 | 1,189.78 | 8.58 | 1.58 | |||||||||
Class 529-B — assumed 5% return | 1,000.00 | 1,016.96 | 7.90 | 1.58 | |||||||||
Class 529-C — actual return | 1,000.00 | 1,189.61 | 8.52 | 1.57 | |||||||||
Class 529-C — assumed 5% return | 1,000.00 | 1,017.01 | 7.85 | 1.57 | |||||||||
Class 529-E — actual return | 1,000.00 | 1,193.01 | 5.60 | 1.03 | |||||||||
Class 529-E — assumed 5% return | 1,000.00 | 1,019.69 | 5.16 | 1.03 | |||||||||
Class 529-F-1 — actual return | 1,000.00 | 1,195.45 | 3.10 | .57 | |||||||||
Class 529-F-1 — assumed 5% return | 1,000.00 | 1,021.97 | 2.86 | .57 | |||||||||
Class R-1 — actual return | 1,000.00 | 1,190.69 | 7.98 | 1.47 | |||||||||
Class R-1 — assumed 5% return | 1,000.00 | 1,017.50 | 7.35 | 1.47 | |||||||||
Class R-2 — actual return | 1,000.00 | 1,190.83 | 7.82 | 1.44 | |||||||||
Class R-2 — assumed 5% return | 1,000.00 | 1,017.65 | 7.20 | 1.44 | |||||||||
Class R-3 — actual return | 1,000.00 | 1,192.63 | 5.60 | 1.03 | |||||||||
Class R-3 — assumed 5% return | 1,000.00 | 1,019.69 | 5.16 | 1.03 | |||||||||
Class R-4 — actual return | 1,000.00 | 1,194.58 | 3.92 | .72 | |||||||||
Class R-4 — assumed 5% return | 1,000.00 | 1,021.22 | 3.61 | .72 | |||||||||
Class R-5 — actual return | 1,000.00 | 1,196.53 | 2.29 | .42 | |||||||||
Class R-5 — assumed 5% return | 1,000.00 | 1,022.71 | 2.11 | .42 | |||||||||
Class R-6 — actual return | 1,000.00 | 1,197.01 | 2.02 | .37 | |||||||||
Class R-6 — assumed 5% return | 1,000.00 | 1,022.96 | 1.86 | .37 |
* | 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). |
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, 2014:
Qualified dividend income | 100 | % | ||
Corporate dividends received deduction | 100 | % | ||
U.S. government income that may be exempt from state taxation | $ | 371,000 | ||
Long-term capital gains | $ | 2,759,331,000 |
Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2015, to determine the calendar year amounts to be included on their 2014 tax returns. Shareholders should consult their tax advisors.
30 | 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 complex overseen by trustee | Other directorships3 held by trustee | ||||
Louise H. Bryson, 70 | 2010 | Chair Emerita of the Board of Trustees, J. Paul Getty Trust; former President, Distribution, Lifetime Entertainment Network (retired 2008); former Executive Vice President and General Manager, Lifetime Movie Network (retired 2008) | 7 | None | ||||
Mary Anne Dolan, 67 Chairman of the Board (Independent and Non-Executive) | 1998 | Founder and President, MAD Ink (communications company) | 10 | None | ||||
James G. Ellis, 67 | 2010 | Dean and Professor of Marketing, Marshall School of Business, University of Southern California | 69 | Quiksilver, Inc. | ||||
Leonard R. Fuller, 67 | 2010 | President and CEO, Fuller Consulting (financial management consulting firm) | 69 | None | ||||
William D. Jones, 58 | 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) | 8 | Sempra Energy | ||||
L. Daniel Jorndt, 72 | 2010 | Retired | 4 | None | ||||
William H. Kling, 72 | 2006 | President Emeritus and former CEO, American Public Media | 10 | None | ||||
John C. Mazziotta, M.D., Ph.D., 64
| 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, 69 | 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., a trustee of the fund since 1999, retired from the board on December 31, 2013. The trustees thank Dr. Sample for his dedication and service to the fund.
“Interested” trustees4,5
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 complex overseen by trustee | Other directorships3 held by trustee | ||||
Claudia P. Huntington, 62 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, 53 President | 1996 | Chairman of the Board, Capital Research and Management Company; Senior Vice President — Capital Research Global Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.6 | 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 32 for footnotes.
AMCAP Fund | 31 |
Other officers5
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, 55 Senior Vice President | 2006 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company; Director, American Funds Service Company6 | ||
Eric S. Richter, 53 Senior Vice President | 2008 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company | ||
Paul F. Roye, 60 Senior Vice President | 2007 | Senior Vice President — Fund Business Management Group, Capital Research and Management Company; Chief Legal Officer, Capital Research and Management Company; Director, American Funds Service Company6 | ||
Herbert Y. Poon, 41 Vice President | 2012 | Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company | ||
C. Ross Sappenfield, 48 Vice President | 1999 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company | ||
James Terrile, 48 Vice President | 2006 | Senior Vice President — Capital Research Global Investors, Capital Research and Management Company; Director, Capital Strategy Research, Inc.6 | ||
Michael W. Stockton, 47 Secretary | 2013 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Ari M. Vinocor, 39 Treasurer | 2010 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Raymond F. Sullivan, Jr., 56 Assistant Secretary | 2011 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Dori Laskin, 62 Assistant Treasurer | 2011 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Jeffrey P. Regal, 42 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 | This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company or its affiliates) that are held by each trustee as a trustee or director of a public company or a registered investment company. |
4 | “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). |
5 | 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. |
6 | Company affiliated with Capital Research and Management Company. |
32 | 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 92618-4518
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address near you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Counsel
O’Melveny & Myers LLP
400 South Hope Street
Los Angeles, CA 90071-2899
Independent registered public accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
A complete February 28, 2014, 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, 2014, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
The American Funds Advantage
Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — has resulted in a superior long-term track record.
Aligned with investor success | |
We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 25 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1 | |
The Capital SystemSM | |
Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. 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 56% of 10-year periods and 57% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3 |
1 | Portfolio manager experience as of December 31, 2013. | |
2 | Based on Class A share results for rolling periods through December 31, 2013. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except SMALLCAP World Fund, for which the Lipper average was used). | |
3 | Based on management fees for the 20-year period ended December 31, 2013, versus comparable Lipper categories, excluding funds of funds. |
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 800/421-9225 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: | ||||
2013 | $81,000 | |||
2014 | $83,000 | |||
b) Audit-Related Fees: | ||||
2013 | $8,000 | |||
2014 | $10,000 | |||
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: | ||||
2013 | $7,000 | |||
2014 | None | |||
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: | ||||
2013 | None | |||
2014 | 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: | ||||
2013 | $1,240,000 | |||
2014 | $937,000 | |||
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: | ||||
2013 | $29,000 | |||
2014 | $43,000 | |||
The tax fees consist of consulting services relating to the Registrant’s investments. | ||||
d) All Other Fees: | ||||
2013 | $2,000 | |||
2014 | $3,000 | |||
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 $1,884,000 for fiscal year 2013 and $1,397,000 for fiscal year 2014. 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, 2014 |
Common stocks 87.49% | ||
Value | ||
Health care 23.42% | Shares | (000) |
Gilead Sciences, Inc.1 | 19,127,226 | $ 1,583,543 |
Biogen Idec Inc.1 | 2,633,400 | 897,147 |
Alexion Pharmaceuticals, Inc.1 | 4,212,800 | 744,823 |
Amgen Inc. | 5,814,700 | 721,139 |
UnitedHealth Group Inc. | 6,501,700 | 502,386 |
Allergan, Inc. | 3,560,000 | 452,120 |
BioMarin Pharmaceutical Inc.1 | 5,252,661 | 425,466 |
Aetna Inc. | 5,850,000 | 425,353 |
Stryker Corp. | 5,092,040 | 408,585 |
Express Scripts Holding Co.1 | 5,250,000 | 395,377 |
St. Jude Medical, Inc. | 5,626,465 | 378,774 |
Edwards Lifesciences Corp.1 | 4,953,900 | 345,584 |
Hologic, Inc.1 | 12,624,100 | 274,953 |
Endo Health Solutions Inc.1 | 2,916,500 | 232,795 |
Humana Inc. | 2,039,500 | 229,362 |
Illumina, Inc.1 | 1,325,510 | 227,312 |
Boston Scientific Corp.1 | 16,862,394 | 220,898 |
Zimmer Holdings, Inc. | 2,350,600 | 220,580 |
Thermo Fisher Scientific Inc. | 1,666,100 | 207,496 |
athenahealth, Inc.1 | 820,400 | 159,051 |
AbbVie Inc. | 745,000 | 37,928 |
ArthroCare Corp.1 | 720,000 | 34,740 |
Centene Corp.1 | 470,198 | 29,942 |
ResMed Inc. | 339,900 | 14,963 |
9,170,317 | ||
Information technology 18.79% | ||
Google Inc., Class A1 | 870,210 | 1,057,871 |
Oracle Corp. | 20,835,000 | 814,857 |
Accenture PLC, Class A | 6,984,600 | 582,166 |
Texas Instruments Inc. | 12,370,000 | 556,155 |
Avago Technologies Ltd. | 8,600,000 | 530,620 |
ASML Holding NV | 3,800,000 | 330,706 |
Adobe Systems Inc.1 | 4,725,000 | 324,182 |
Microsoft Corp. | 8,425,000 | 322,762 |
Intuit Inc. | 4,063,000 | 317,524 |
Cognizant Technology Solutions Corp., Class A1 | 2,950,000 | 306,977 |
Yahoo! Inc.1 | 6,669,000 | 257,890 |
Samsung Electronics Co. Ltd. | 179,000 | 226,202 |
Trimble Navigation Ltd.1 | 5,766,200 | 219,981 |
Apple Inc. | 401,700 | 211,391 |
Baidu, Inc., Class A (ADR)1 | 1,143,000 | 195,373 |
SAP AG | 2,000,000 | 161,550 |
Autodesk, Inc.1 | 3,000,000 | 157,380 |
EMC Corp. | 5,825,000 | 153,605 |
Common stocks | ||
Value | ||
Information technology (continued) | Shares | (000) |
Automatic Data Processing, Inc. | 1,750,000 | $ 136,115 |
VMware, Inc., Class A1 | 925,000 | 88,846 |
Rackspace Hosting, Inc.1 | 2,005,000 | 73,724 |
Itron, Inc.1,2 | 2,018,875 | 70,661 |
OpenTable, Inc.1 | 800,000 | 63,752 |
Linear Technology Corp. | 1,050,000 | 49,182 |
Visa Inc., Class A | 200,000 | 45,188 |
FactSet Research Systems, Inc. | 401,000 | 42,221 |
Gemalto NV | 320,000 | 35,998 |
KLA-Tencor Corp. | 383,000 | 24,953 |
7,357,832 | ||
Consumer discretionary 11.23% | ||
Netflix, Inc.1 | 1,952,000 | 869,870 |
DIRECTV1 | 7,900,000 | 613,040 |
Johnson Controls, Inc. | 8,619,094 | 425,783 |
lululemon athletica inc.1 | 5,977,000 | 300,703 |
Amazon.com, Inc.1 | 764,000 | 276,644 |
NIKE, Inc., Class B | 3,155,000 | 247,036 |
YUM! Brands, Inc. | 3,035,499 | 224,870 |
Comcast Corp., Class A | 4,208,900 | 217,558 |
JCDecaux SA | 4,000,000 | 176,623 |
Garmin Ltd. | 3,200,000 | 171,712 |
Time Warner Inc. | 2,500,000 | 167,825 |
Harley-Davidson, Inc. | 2,511,000 | 165,877 |
Texas Roadhouse, Inc.2 | 4,587,200 | 121,331 |
BorgWarner Inc. | 1,880,200 | 115,538 |
Big Lots, Inc.1 | 2,469,800 | 72,983 |
Tiffany & Co. | 500,000 | 46,625 |
Twenty-First Century Fox, Inc., Class A | 1,275,000 | 42,763 |
WPP PLC | 1,770,000 | 38,769 |
Weight Watchers International, Inc. | 1,705,000 | 36,248 |
Nordstrom, Inc. | 566,000 | 34,798 |
British Sky Broadcasting Group PLC | 1,925,000 | 30,301 |
4,396,897 | ||
Industrials 9.19% | ||
Nielsen Holdings NV | 10,091,161 | 477,716 |
Precision Castparts Corp. | 1,425,000 | 367,479 |
General Dynamics Corp. | 3,100,000 | 339,574 |
Union Pacific Corp. | 1,728,350 | 311,760 |
United Parcel Service, Inc., Class B | 2,630,000 | 251,875 |
Verisk Analytics, Inc., Class A1 | 2,976,300 | 189,635 |
Sensata Technologies Holding NV1 | 4,350,000 | 176,784 |
MITIE Group PLC2 | 24,021,000 | 139,016 |
Chart Industries, Inc.1,2 | 1,579,800 | 132,008 |
Southwest Airlines Co. | 5,700,000 | 127,908 |
Moog Inc., Class A1 | 2,018,100 | 124,981 |
Dover Corp. | 1,320,000 | 124,476 |
Jacobs Engineering Group Inc.1 | 2,000,000 | 121,300 |
Nordson Corp. | 1,637,500 | 119,799 |
Landstar System, Inc. | 1,820,000 | 105,032 |
Common stocks | ||
Value | ||
Industrials (continued) | Shares | (000) |
Polypore International, Inc.1,2 | 3,020,000 | $ 104,522 |
Towers Watson & Co., Class A | 800,000 | 87,280 |
CSX Corp. | 2,564,500 | 71,062 |
Danaher Corp. | 804,900 | 61,567 |
Serco Group PLC | 7,540,700 | 58,149 |
FedEx Corp. | 402,700 | 53,692 |
Waste Connections, Inc. | 623,301 | 26,970 |
Robert Half International Inc. | 600,000 | 24,564 |
3,597,149 | ||
Energy 7.97% | ||
Schlumberger Ltd. | 6,728,900 | 625,788 |
Baker Hughes Inc. | 7,490,500 | 473,999 |
EOG Resources, Inc. | 2,177,700 | 412,500 |
Southwestern Energy Co.1 | 9,254,683 | 382,588 |
FMC Technologies, Inc.1 | 6,966,122 | 349,978 |
Apache Corp. | 2,958,900 | 234,611 |
Devon Energy Corp. | 2,692,000 | 173,419 |
Chevron Corp. | 1,165,500 | 134,417 |
Ultra Petroleum Corp.1 | 4,875,000 | 122,655 |
BG Group PLC | 5,666,000 | 103,277 |
C&J Energy Services, Inc.1,2 | 3,540,729 | 91,528 |
Range Resources Corp. | 185,000 | 15,919 |
3,120,679 | ||
Financials 4.06% | ||
Progressive Corp. | 18,313,162 | 448,489 |
Capital One Financial Corp. | 3,750,000 | 275,362 |
PNC Financial Services Group, Inc. | 2,185,000 | 178,689 |
BB&T Corp. | 3,500,000 | 132,300 |
State Street Corp. | 2,000,000 | 131,340 |
JPMorgan Chase & Co. | 2,270,000 | 128,981 |
Torchmark Corp. | 1,200,000 | 93,012 |
Arch Capital Group Ltd.1 | 1,500,000 | 84,180 |
Charles Schwab Corp. | 1,750,000 | 46,393 |
U.S. Bancorp | 1,045,000 | 42,991 |
Altisource Portfolio Solutions SA1 | 139,000 | 13,675 |
Altisource Asset Management Corp.1 | 13,900 | 10,772 |
Altisource Residential Corp. | 46,333 | 1,324 |
1,587,508 | ||
Consumer staples 3.75% | ||
CVS/Caremark Corp. | 5,250,000 | 383,985 |
Green Mountain Coffee Roasters, Inc. | 2,206,882 | 242,272 |
Whole Foods Market, Inc. | 3,310,000 | 178,906 |
Mead Johnson Nutrition Co. | 1,929,068 | 157,315 |
Costco Wholesale Corp. | 1,285,000 | 150,088 |
L’Oréal SA, non-registered shares | 800,000 | 135,545 |
Philip Morris International Inc. | 1,605,000 | 129,861 |
Altria Group, Inc. | 1,750,000 | 63,455 |
PepsiCo, Inc. | 320,500 | 25,662 |
1,467,089 | ||
Common stocks | ||
Value | ||
Materials 3.52% | Shares | (000) |
Celanese Corp., Series A2 | 8,496,922 | $ 453,651 |
AptarGroup, Inc.2 | 4,326,000 | 286,251 |
Praxair, Inc. | 1,760,531 | 229,520 |
Valspar Corp. | 2,089,185 | 156,167 |
Barrick Gold Corp. | 6,800,000 | 138,584 |
Freeport-McMoRan Copper & Gold Inc. | 3,500,000 | 114,170 |
1,378,343 | ||
Telecommunication services 0.63% | ||
Crown Castle International Corp.1 | 1,935,700 | 146,920 |
tw telecom inc.1 | 1,650,000 | 50,507 |
United States Cellular Corp. | 734,300 | 26,501 |
SBA Communications Corp., Class A1 | 250,000 | 23,792 |
247,720 | ||
Utilities 0.25% | ||
NRG Energy, Inc. | 3,363,369 | 97,773 |
Miscellaneous 4.68% | ||
Other common stocks in initial period of acquisition | 1,833,105 | |
Total common stocks (cost: $20,940,246,000) | 34,254,412 | |
Principal amount | ||
Short-term securities 12.19% | (000) | |
Freddie Mac 0.07%–0.17% due 3/12/2014–1/6/2015 | $1,492,600 | 1,492,177 |
Federal Home Loan Bank 0.055%–0.19% due 3/7–12/23/2014 | 1,167,700 | 1,167,507 |
Fannie Mae 0.12%–0.18% due 5/1–9/22/2014 | 526,200 | 526,094 |
Federal Farm Credit Banks 0.11%–0.14% due 4/10–8/6/2014 | 199,700 | 199,656 |
Chevron Corp. 0.07% due 3/24–4/29/20143 | 180,200 | 180,168 |
Coca-Cola Co. 0.10%–0.14% due 3/6–5/20/20143 | 168,965 | 168,952 |
Procter & Gamble Co. 0.10%–0.14% due 5/12–6/19/20143 | 128,500 | 128,472 |
Abbott Laboratories 0.10% due 4/4–5/28/20143 | 88,300 | 88,290 |
U.S. Treasury Bills 0.05%–0.101% due 4/17–6/5/2014 | 87,900 | 87,892 |
Emerson Electric Co. 0.10%–0.12% due 5/19–5/22/20143 | 81,700 | 81,683 |
Regents of the University of California 0.06%–0.13% due 3/13–6/18/2014 | 81,423 | 81,408 |
Jupiter Securitization Co., LLC 0.26%–0.28% due 11/18–11/19/20143 | 50,000 | 49,898 |
Chariot Funding, LLC 0.27% due 11/18/20143 | 25,000 | 24,960 |
Wal-Mart Stores, Inc. 0.05% due 3/18–3/24/20143 | 70,000 | 69,998 |
John Deere Financial Ltd. 0.07%–0.08% due 3/3–3/13/20143 | 60,100 | 60,099 |
General Electric Capital Corp. 0.18% due 4/1/2014 | 50,000 | 49,997 |
General Electric Co. 0.05% due 3/3/2014 | 10,000 | 10,000 |
Parker-Hannifin Corp. 0.07% due 3/31–4/2/20143 | 55,000 | 54,997 |
Private Export Funding Corp. 0.20%–0.24% due 4/3–8/18/20143 | 49,970 | 49,937 |
Cisco Systems, Inc. 0.07% due 3/20–3/26/20143 | 49,100 | 49,095 |
ExxonMobil Corp. 0.07% due 3/18/2014 | 47,600 | 47,597 |
Army and Air Force Exchange Service 0.11%–0.13% due 3/17–3/25/20143 | 38,000 | 37,997 |
Walt Disney Co. 0.10% due 3/25/20143 | 25,000 | 24,999 |
PepsiCo Inc. 0.05% due 4/14/20143 | 17,200 | 17,199 |
NetJets Inc. 0.04% due 3/17/20143 | 16,000 | 16,000 |
Paccar Financial Corp. 0.06% due 3/13/2014 | 8,300 | 8,300 |
Total short-term securities (cost: $4,772,873,000) | 4,773,372 | |
Total investment securities (cost: $25,713,119,000) | $39,027,784 | |
Other assets less liabilities | 124,112 | |
Net assets | $39,151,896 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1 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 was $1,102,744,000, which represented 2.82% 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-002-0414O-S37655
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, 2014, and for the year then ended and have issued our report thereon dated April 8, 2014, 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, 2014, 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, 2014
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, 2014 |
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, 2014 |
By /s/ Ari M. Vinocor |
Ari M. Vinocor, Treasurer and Principal Financial Officer |
Date: April 30, 2014 |