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, 2017
Laurie D. Neat
AMCAP Fund
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
ITEM 1 – Reports to Stockholders
We have provided our
investors with superior
long-term growth for
50 years.
Special feature page 6 | ||
AMCAP Fund®
Annual report |
AMCAP Fund seeks to provide you with long-term growth of capital.
This fund is one of more than 40 offered by one of the nation’s largest mutual fund families. For more than 85 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 the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2017 (the most recent calendar quarter-end):
Class A shares | 1 year | 5 years | 10 years | |||
Reflecting 5.75% maximum sales charge | 8.38% | 11.54% | 7.37% |
For other share class results, visit americanfunds.com and americanfundsretirement.com.
The total annual fund operating expense ratio is 0.68% for Class A shares as of the prospectus dated May 1, 2017 (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.
The U.S. stock market advanced during the fiscal year ended February 28, 2017, recovering from losses in early 2016. While concerns about global growth continued to weigh on investor sentiment, economic data in the U.S. was generally positive and company earnings were slightly better than expected. Stocks also rose in response to the new U.S. presidential administration, which has pledged to lower corporate tax rates, reduce business regulations and increase spending on infrastructure and the military. The Federal Reserve has said it would proceed cautiously on interest rates; the Fed raised rates this past December following an increase in December 2015, the first since 2006 (it raised rates again in March, after the fiscal year ended).
During the 12-month period, AMCAP Fund had a total return of 22.38% versus a 24.98% total return for the unmanaged Standard & Poor’s 500 Composite Index — a market capitalization-weighted index based on the results of 500 widely held common stocks — and a total return of 25.00% for the Lipper Growth Funds Index, a peer group measure, as shown in the chart below.
Over the long term, AMCAP’s returns have exceeded those of the S&P 500 and the Lipper Growth Funds Index. For the past 10 years, AMCAP had an average annual total return of 8.07%, compared with 7.62% for the S&P 500 and 6.93% for the Lipper index. Over its nearly 50-year lifetime, the fund had an average annual total return of 11.47%, compared with 9.97% for the S&P 500 and 8.95% for the Lipper index.
Results at a glance
For periods ended February 28, 2017, 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) | 22.38 | % | 13.34 | % | 8.07 | % | 11.47 | % | ||||
Standard & Poor’s 500 Composite Index* | 24.98 | 14.01 | 7.62 | 9.97 | ||||||||
Lipper Growth Funds Index† | 25.00 | 12.96 | 6.93 | 8.95 |
* | Source: S&P Dow Jones Indices LLC. The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. |
† | Source: Thomson Reuters Lipper. Lipper indexes track the largest mutual funds (no more than 30), represented by one share class per fund, in the corresponding Lipper category. |
AMCAP Fund | 1 |
Investment results analysis
Portfolio managers added to energy holdings after the price of oil fell considerably. The subsequent rebound in oil prices, combined with improved supply and demand balances in the oil market, enhanced the value of those holdings, which helped the fund’s results. Among the fund’s largest investments in the sector are EOG Resources (the ninth-largest holding in the fund) and Canadian Natural Resources, both of which have very competitive production cost positions. Shares of Concho Resources and Halliburton, an oil services firm, also gained during the period. Likewise, higher commodity prices helped the fund’s materials holdings, including Albemarle and Celanese.
The fund’s largest sector, information technology, had strong results, with semiconductor companies Broadcom (the third-largest holding) and Texas Instruments leading the way. Avago Technologies acquired Broadcom last year and took its name; since then, the company has continued to report solid financial results and its shares have risen. Likewise, Texas Instruments has reported better results amid growing demand from the auto industry. Shares of Netflix (the fund’s largest holding) rose as the consumer discretionary company beat earnings expectations and provided strong guidance, backed by robust subscriber growth for its video-streaming content and services.
In the health care sector, concerns about high drug prices affected investments in biopharmaceutical and generic companies, such as Endo International, Alexion Pharmaceuticals and BioMarin Pharmaceutical. Drug pricing in the U.S. is evolving, creating both risks and opportunities in the health care sector. Over the longer term, however, we remain optimistic about the fund’s biotechnology holdings, including Amgen (the fund’s second-largest holding). We continue to focus on those companies that we believe offer adequately priced drugs and the most innovation, which is often measured by improved patient outcomes.
The fund’s cash position, which held back returns during the strong market, rose slightly to 13.9% from 13.5% (including other short-term securities) at the beginning of the period. While portfolio managers continue to find select investment opportunities, valuations appear stretched on a fundamental basis. The amount of cash reflects a cautious approach to the market environment by some of the portfolio managers, who anticipate being able to invest in these companies at better valuations in the future.
Looking ahead
The fundamentals of the U.S. economy remain strong, although some areas could be stronger. The unemployment rate is low, real wages are gradually increasing, consumer spending is slowly on the rise and inflation remains muted. While historically low interest rates may increase over time, we are well below the level that historically has caused pressure on economic growth.
Outside the U.S., there is a mix of recovering economies, including parts of the euro zone, and economies struggling to get back to their prior growth rates, such as China and Brazil. From the transition of power in the U.S. to the Brexit negotiations in Europe, geopolitical risk is also on the rise around the world; as a result, market volatility is likely to remain high. Despite this period of heightened risk, we continue with our consistent approach to growth investing, just as we have for the past 50 years (see the special feature about the fund’s anniversary starting on page 6, with a related video link on page 11).
AMCAP evaluates and invests in companies that have demonstrated solid
2 | AMCAP Fund |
historical growth and characteristics that we believe are likely to support above-average growth in the future. Our focus on the 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 | |
James Terrile President |
April 10, 2017
For current information about the fund, visit americanfunds.com.
The New Geography of Investing®
While most of the companies that AMCAP invests in are based in the U.S., many of them do business on a global basis. For example, 92% of the fund’s holdings are based in the U.S., but these companies only generate 58% of their revenues domestically, with Europe and emerging markets serving as important sources of growth. Understanding the sources of a company’s growth opportunities — and the risks of failure — is the reason it’s important to have investment management supported by a global research operation when investing in today’s markets.
Equity portion breakdown by domicile (%)
Equity portion breakdown by revenue (%)
Source: Capital Group (as of February 28, 2017).
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 $118,824 and reinvested capital gain distributions of $1,126,752. |
5 | Source: S&P Dow Jones Indices LLC. The S&P 500 is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. |
6 | Source: Thomson Reuters Lipper. Results of the Lipper Growth Funds Index do not reflect any sales charges. Lipper indexes track the largest mutual funds (no more than 30), represented by one share class per fund, in the corresponding Lipper category. |
7 | 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, 2017. As you can see, that $10,000 grew to $2,103,638 with all distributions reinvested. Over the same period, $10,000 would have grown to $1,137,462 in the unmanaged Standard & Poor’s 500 Composite Index, and $717,396 in the Lipper Growth Funds Index. The chart also records the fund’s progress relative to the inflation rate, 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, 2002. Over the last 15 years, the value of the investment shown here more than tripled, from $673,327 to $2,103,638. Thus, in the same period, the value of your 2002 investment — regardless of size — has also more than tripled.
AMCAP Fund | 5 |
We have provided our investors with superior long-term growth for 50 years.
In 1983, three investors each made a decision that has had a positive impact on their lives. That decision was to invest in AMCAP Fund, which launched in 1967 and this year marks its 50th anniversary.
Less than a decade after AMCAP launched, a young analyst named Claudia Huntington began supporting the investment group and by 1981 had officially joined the fund. About 15 years later, she became a full portfolio manager and later principal investment officer of the fund, two roles she still holds.
Recently, Claudia visited with these three long-time investors: Blaine Wiley of Poland, Ohio, Jo Ann Butaud of Shawnee, Kansas, and Dwayne Daussin of Onalaska, Texas. She met each of them at their homes and talked with them and their families about what investing in AMCAP has meant for them. At the same time, Claudia shared what managing their money in the fund has meant to her, and how she and the other portfolio managers have always put investors first.
“I’ve been a part of AMCAP for nearly 40 years and my family and I have been invested personally in the fund for a long time, as have the other portfolio managers,” says Claudia. “What better way to celebrate the 50th anniversary than by meeting some of the people who have been long-time investors in the fund.”
Three generations of investors
Blaine Wiley, 86, is a retired engineer who lives with his daughter and her husband in Poland, Ohio, a suburb of Youngstown, a once-thriving center of the steel industry. Blaine had worked as an engineer in Bowling Green, just south of Toledo, where he and his wife of 60-plus years, Joan, raised three children. After his wife passed away in 2015, Blaine moved in with his daughter Kathleen in Poland. She and her two brothers Chris and Peter, who live in Michigan and Massachusetts, joined their father for a lively discussion with Claudia about the value of investing in a fund like AMCAP and how that lesson has been passed down over the years.
Below are excerpts from Claudia’s conversation with Blaine and his family.
Claudia: What a great opportunity to be here with the whole family. Are you all invested in AMCAP or American Funds, in one way or another?
Blaine: Yes, it was the first investment I made in my Individual Retirement Account (IRA). My advisor made the recommendation and stressed to me the strength of the fund’s management. Before that, I primarily had been investing in growth stocks in the early 1980s. I had a lot of worries about interest rates, the political climate and market volatility; it got to the point where I was not sleeping well at night. I talked with my financial advisor and he suggested I put the money into AMCAP and hold it for the long term. He said there could be dips in the fund here and there but over time it should do well. I wasn’t trying to get rich but wanted stable growth and a strong management team so I didn’t have to think about it.
Claudia: That’s great to hear. One of the most important criteria for me when I’m investing in companies is the management team. Part of our job in conducting good fundamental research is to analyze the leaders and assess where their strengths and weaknesses are. We invest on that basis, so we try to manage ourselves the same way — to have a finely tuned system that allows our portfolio managers to be the best they can be by developing their own style and their own way to invest. We all think about the best ideas we have, analyze them thoroughly, and then each make our own individual investment decisions within the parameters of the fund. We believe this is key to any good investment process.
Blaine: When I was investing in individual stocks, before putting my money in AMCAP, I was getting calls from my broker in the afternoon asking me to make buy and sell decisions. I really didn’t know the market that well and felt like I should not be making those kinds of decisions. I didn’t have much interest in the stock market — still don’t to this day. I much prefer to watch a ballgame than read the business section or watch the financial news. That’s why I decided to make the switch and invest my money in AMCAP, with the help of a new advisor whose wife was friends with my wife. We also became friends and he said, “I’ve got this fund you might like.”
Claudia: Well, thank you. Some people naturally watch their investments like a hawk, whether they are investing directly or they’re doing it through an advisor. If the market goes down 2%, it’s like white-knuckle time. Others really don’t want to look at it on a daily, weekly or even monthly basis. It just depends on the individual, but that’s why we’re here, so you don’t have to do that.
Blaine: I am so reassured to hear that and meeting you has only fortified my belief about the fund’s management —that’s what you’re buying when you
6 | AMCAP Fund |
Blaine Wiley AMCAP was the first investment for Blaine’s Individual Retirement Account and helped take the worry out of his investment decisions.
Claudia and Blaine Claudia Huntington, portfolio manager and vice chairman for AMCAP, spoke with Blaine at his daughter’s home in Poland, Ohio, outside of Youngstown.
AMCAP Fund | 7 |
invest in AMCAP. I never lost my level of confidence in the fund, even through the ups and downs in the market.
Claudia: Well, we try our best and work hard for our investors. Speaking of which, tell me about the rest of you and how you wound up invested with AMCAP and American Funds?
Kathleen: I’m an art major, so the stock market is like a foreign language to me. But we had some extra money and hadn’t really started saving much. I called my father and said, “What should I do?” He said, “Put it in America Funds.” So that’s what I did. My husband was the only one working at the time and we had to put our three kids through college. It paid for most of their education. You don’t really think about it and then all of the sudden it hits you: “How am I going to do what I need to do for them?”
Chris: My dad taught me the importance of saving and investing when he helped me on my senior math project in high school. When I made my first $2,000 that I wanted to invest, I called my dad and said, “I want to get an IRA,” which I had seen on a commercial. He put me in touch with his advisor, who told me the story of AMCAP, and I decided to invest. Ever since then, I haven’t looked back. We had a huge dip in the stock market in 1987, shortly before my dad’s mother died. “This is the time to buy,” she said. “Just hold it and forget about it.” That has always stuck with me —if you can buy quality you don’t have to think about it.
Claudia: AMCAP really does focus on quality. We believe that most of the time that is going to be a good investment, but there are times when the market will not treat it as a quality company. Nobody bats a thousand but I think quality matters; people that run companies matter.
Chris: To take it a step further, my son made his first investment four years ago, when he was just 22, by putting $5,000 into AMCAP. When he got his first job he had the income to be able to have a Roth IRA and he asked me, “Dad, what should I do?” I think you know what I told him.
Claudia: That’s great, so you’ve got three generations of AMCAP investors. I tell my kids the same thing: Start saving as early as you can and be consistent with it. I think all of us at American Funds take our obligation to invest on behalf of shareholders that way. Culturally, our objective is to do our best by the shareholders. If they do well, we will do well, and our organization will do well —but it’s shareholders first. We have had that culture forever and it’s never changed. The portfolio managers and analysts just do their job; they don’t typically go on the road for sales meetings. Even as our organization has grown, how we behave toward each other and how we put
Jo Ann Butaud Investing “to make as much money as I could for as long as I could,” Jo Ann has been an AMCAP shareholder since 1983.
8 | AMCAP Fund |
Family affair Blaine Wiley shares a meal in the sunroom with his daughter, Kathleen; his two sons, Peter and Chris; and his daughter-in-law, Anne.
shareholders first haven’t changed. When I retire, I have great confidence that my children and my children’s children are going to be taken care of. If our culture hasn’t changed in 40-plus years, I don’t think it’s going to change in the next 40-plus years, because it’s so strong.
Blaine: It sounds to me like you have stayed the course and tried to remain humble through it all.
Claudia: Yes, we have. But the success of AMCAP is not just one portfolio manager. It’s the success of myself and my colleagues that invest for the fund and our combined efforts that will hopefully continue to work well for AMCAP. If one of us retires, someone else is there in a smaller role and will step up to manage more money. We have this system that says: “We don’t strive for recognition, just to do what we do really well.”
Comfortable in her own skin
Jo Ann Butaud, 74, is a partner at a law firm in Shawnee, Kansas, just across the border from Kansas City, Missouri. She lives there with her partner, Jay, and is very involved in the community with the Down Syndrome Guild of Greater Kansas City and with her alma mater, the University of Kansas, where she has endowed a scholarship at the law school. She was born in Texas, but moved to Kansas in 1975 with her first husband. Jo Ann has two children and enjoys taking trips with them and her grandchildren. She shared some of her experiences with Claudia, discussing how investing in AMCAP and other American Funds has allowed her to live comfortably and travel the world.
Below are excerpts from Claudia’s conversation with Jo Ann.
Claudia: It’s really nice to meet another shareholder in AMCAP. Tell me more about how you got into investing in the first place? Was it a desire to save more or just see what happens?
Jo Ann: We first invested in the fund in 1983 and have been invested in it and most of the other American Funds since then. My first husband and I sold part of our ranch in Texas to a coal-fired power generating company. We ended up with $120,000 from the sale that we wanted to invest and decided to put it into AMCAP. I graduated from law school in 1981 and so I was fortunate enough to be able to live on my husband’s income and save most of mine, and so that’s what we used to invest. For five years, I commuted 45 miles to the University of Kansas in Lawrence. I had two children at home and a house to take care of because my husband traveled, so it was all on me. It was very tough, but I’m a pretty strong woman. It’s was a man’s world at the time I graduated and there
AMCAP Fund | 9 |
Dwayne Daussin At his frame shop, Dwayne spoke with Claudia about how AMCAP has helped give him a nest egg for retirement and lead the healthy lifestyle he enjoys.
were very few women in my law school class and very few female lawyers. I was able to get a job with a small law firm and they made me partner after three years. I’ve stayed with that same firm for 36 years and am still quite active and attend court regularly.
Claudia: When you think about investing in AMCAP and other American Funds that you own, what has that allowed you to do that you couldn’t have done if you didn’t make that decision to invest?
Jo Ann: For one, it has allowed us to save for college — I now have 529 plans with American Funds for all five of my grandchildren. There are only two left who go to college; the other three have graduated. I love to travel, so investing in the funds has allowed us to take our grandchildren around the world, which has been amazing. I’ve always told them if I leave any legacy, I want to leave them the love of travel. I also do quite a bit of charitable work for two organizations that are near and dear to my heart; two of my grandchildren have disabilities — juvenile diabetes and Down syndrome. I use money from my investments to make charitable contributions every year to the Juvenile Diabetes Research Foundation and the Down Syndrome Guild, where I also serve on the board and volunteer on a regular basis.
Claudia: Those are great causes and I’m happy to hear that we’ve been able to help you make some wonderful memories with your family. We’ve always strived for long-term growth in the fund and that seems to align with your goals. Are you a pretty aggressive investor by nature?
Jo Ann: Well, I haven’t typically put my money in conservative investments — it’s mostly been in growth companies. I wanted to make as much as I could for as long as I could. I’m still working full-time so until I retire, I don’t have any reason to do anything differently.
Claudia: You and me both. I’ve been involved with AMCAP for almost 40 years, first as an analyst and then as a portfolio manager. Since it started 50 years ago, the fund has had 22 different portfolio managers and seven of them have been in that role for 15 years or more. We’ve always had between three and six portfolio managers in AMCAP at any given time. I’ve seen the evolution of managers in the fund over the years and it still does what it did when it started — invests in different sized companies with a unique way of growing that focuses on the quality of the company and the growth it can provide. Over the fund’s 50-year history, we’ve never changed its objective or how we manage it. We’ve adapted as the fund has grown without any real hiccups — it’s had some great years and some difficult years. We’re conscious of wanting to do well in good markets but also working hard to avoid too much pain in down markets.
Jo Ann: I’m in it for the long haul and I always have been. The fund’s results over time have been great, and as a result I’ve done pretty well. As you can tell, I don’t like change very much. I’ve lived in the same house for 45 years and I’m not going to move unless I have to. Likewise, in the market, there have been times when it was appropriate to move money from one fund to another, but that doesn’t happen a lot. I came from a very modest family and was an only child. My mom graduated from high school but my father didn’t. I was blessed with intelligence and knew that I could do something different if I tried and worked really hard. Nobody ever gave me anything; I’ve always had to work for it. That’s just who I am — you dig in and do what you have to do. I’m very comfortable in my own skin.
Claudia: I feel lucky and privileged to be part of helping you and other shareholders achieve your goals — that’s what we’re here for. It’s an honor to be able to meet people like you because it really does bring home the point of why we do what we do. It’s a reminder of the impact we can have on helping people achieve their dreams.
Financial and personal health
Dwayne Daussin, 57, owns a custom framing shop in Onalaska, Texas, about an hour north of Houston, on Lake Livingston. He moved there from the city in the 1990s to lead a slower pace of life, after years in the corporate world. Dwayne now enjoys working out of his home for himself, framing everything from collector baseball cards to original artwork — he even makes his own frames. In his free time, he enjoys mountain biking through the woods, rowing in his scull boat on the lake, and playing with his two British labs, Jake and Beaux. Claudia, a dog owner herself, met with Dwayne in his frame shop and down by the lake to speak about how AMCAP has helped give him a nest egg for retirement and lead the healthy lifestyle he enjoys.
Below are excerpts from Claudia’s conversation with Dwayne.
Claudia: So you began investing in AMCAP in the early 1980s — had you been invested in a mutual funds before that or was it mainly individual stocks?
Dwayne: I had mostly been investing in individual stocks at that time, although I had a few mutual funds. I had invested in some energy companies, which were big in Houston, but that industry went through some ups and downs. I was getting tired of the volatility so I met with a financial advisor through my father. Both of us decided to invest in AMCAP and that decision has certainly helped me to worry less.
Claudia: When you think back on those discussions about what to invest in, were you mainly thinking about retirement or did you have some extra cash you wanted to invest to make money?
10 | AMCAP Fund |
Dwayne: It was a long-term investment decision I made. I had some money I wanted to invest from working as a production coordinator for a reprographics firm, which makes blueprints for architects and engineers. Once I invested the money in AMCAP, I didn’t touch it. I retired from that firm in 1995 and was looking to go into business in Houston, but my father approached me about coming to Onalaska to open a framing shop. Having AMCAP made it much easier for me to decide to finally make that move in 1999.
Claudia: That’s great to hear. We try our best to help all of our investors. I personally try to find companies that have strong management, which matters to me enormously. My favorite thing in this job is going to see the people that run the companies in which I’m considering an investment. I believe that the potential for growth is so much greater if you can find the really good managers, because they will steer the company through the best and worst of times, and by doing so, provide a good return to shareholders.
Dwayne: One of the things that’s been great about investing is that it has allowed me to live the type of slow lifestyle that I want, where I can relax and enjoy myself. Wealth has a lot to do with health, which is something I take very seriously. If you’re wealthy and you’ve got a lot of health problems, then you can’t really enjoy that wealth. I have friends in the corporate world who are doing great financially, but they’re having health issues because their jobs dictate their lifestyles. For me, it’s all about personal health and contentment — a healthy lifestyle is as important to me as a wealthy lifestyle.
Claudia: Well, we are so happy that we can help you lead that lifestyle. This is really one of the reasons I wanted to meet you, Dwayne. You’re a perfect example of why we do what we do.
Dwayne: I’m at the age where I’m still earning income and I’ve got my investment in AMCAP, which is a significant amount that I can add to if needed. It’s a good feeling, a good place to be. n
To see highlights from portfolio manager Claudia Huntington’s visit with these three long-term AMCAP investors, we invite you to watch a short video at www.americanfunds.com/amcapvideo.
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Summary investment portfolio February 28, 2017 | |
Industry sector diversification | Percent of net assets |
Common stocks 86.10% | Shares | Value (000) | ||||||
Information technology 23.20% | ||||||||
Broadcom Ltd. | 6,553,245 | $ | 1,382,276 | |||||
Oracle Corp. | 28,582,000 | 1,217,307 | ||||||
Alphabet Inc., Class C1 | 817,379 | 672,874 | ||||||
Alphabet Inc., Class A1 | 616,910 | 521,246 | ||||||
Accenture PLC, Class A | 7,008,300 | 858,517 | ||||||
Skyworks Solutions, Inc. | 8,284,622 | 785,465 | ||||||
ASML Holding NV | 5,636,640 | 683,433 | ||||||
Texas Instruments Inc. | 8,100,414 | 620,654 | ||||||
Tencent Holdings Ltd. | 20,086,918 | 535,624 | ||||||
Samsung Electronics Co., Ltd. | 281,400 | 478,312 | ||||||
Juniper Networks, Inc. | 16,962,167 | 474,941 | ||||||
Trimble Inc.1 | 12,300,511 | 381,685 | ||||||
MasterCard Inc., Class A | 3,208,957 | 354,461 | ||||||
Akamai Technologies, Inc.1 | 5,347,205 | 334,735 | ||||||
Arista Networks, Inc.1 | 2,628,166 | 312,725 | ||||||
Other securities | 2,806,770 | |||||||
12,421,025 | ||||||||
Health care 16.32% | ||||||||
Amgen Inc. | 8,086,581 | 1,427,524 | ||||||
UnitedHealth Group Inc. | 6,019,906 | 995,572 | ||||||
Stryker Corp. | 7,233,552 | 929,945 | ||||||
BioMarin Pharmaceutical Inc.1 | 8,625,200 | 810,165 | ||||||
AbbVie Inc. | 10,548,000 | 652,288 | ||||||
Thermo Fisher Scientific Inc. | 3,852,100 | 607,399 | ||||||
Medtronic PLC | 6,960,999 | 563,214 | ||||||
Illumina, Inc.1 | 2,233,249 | 373,846 | ||||||
Gilead Sciences, Inc. | 4,576,960 | 322,584 | ||||||
Other securities | 2,056,381 | |||||||
8,738,918 | ||||||||
Consumer discretionary 11.38% | ||||||||
Netflix, Inc.1 | 11,914,700 | 1,693,436 | ||||||
Amazon.com, Inc.1 | 988,300 | 835,153 | ||||||
Priceline Group Inc.1 | 397,400 | 685,169 | ||||||
Twenty-First Century Fox, Inc., Class A | 15,325,000 | 458,524 | ||||||
Wyndham Worldwide Corp. | 4,054,800 | 337,522 | ||||||
Other securities | 2,081,930 | |||||||
6,091,734 | ||||||||
Industrials 10.14% | ||||||||
Union Pacific Corp. | 6,865,366 | 741,048 | ||||||
General Dynamics Corp. | 2,830,000 | 537,162 | ||||||
Textron Inc. | 10,756,576 | 508,786 | ||||||
Nordson Corp.2 | 3,420,000 | 410,537 | ||||||
Nielsen Holdings PLC | 9,240,665 | 409,916 |
12 | AMCAP Fund |
Shares | Value (000) | |||||||
Boeing Co. | 1,900,000 | $ | 342,437 | |||||
C.H. Robinson Worldwide, Inc. | 4,023,715 | 323,386 | ||||||
Other securities | 2,152,326 | |||||||
5,425,598 | ||||||||
Energy 8.06% | ||||||||
EOG Resources, Inc. | 8,661,300 | 840,059 | ||||||
Concho Resources Inc.1 | 5,355,743 | 709,368 | ||||||
Halliburton Co. | 11,677,900 | 624,301 | ||||||
Canadian Natural Resources, Ltd. | 17,411,000 | 499,311 | ||||||
Pioneer Natural Resources Co. | 2,434,000 | 452,651 | ||||||
Noble Energy, Inc. | 10,272,404 | 374,018 | ||||||
Other securities | 815,752 | |||||||
4,315,460 | ||||||||
Financials 5.54% | ||||||||
PNC Financial Services Group, Inc. | 3,806,549 | 484,307 | ||||||
Markel Corp.1 | 340,000 | 333,108 | ||||||
Other securities | 2,147,691 | |||||||
2,965,106 | ||||||||
Consumer staples 3.94% | ||||||||
Kroger Co. | 18,708,600 | 594,933 | ||||||
Costco Wholesale Corp. | 2,215,300 | 392,507 | ||||||
Other securities | 1,124,163 | |||||||
2,111,603 | ||||||||
Materials 1.61% | ||||||||
Celanese Corp., Series A | 6,392,000 | 569,975 | ||||||
Other securities | 289,430 | |||||||
859,405 | ||||||||
Telecommunication services 0.73% | ||||||||
Verizon Communications Inc. | 6,300,000 | 312,669 | ||||||
Other securities | 77,228 | |||||||
389,897 | ||||||||
Real estate 0.34% | ||||||||
Other securities | 182,657 | |||||||
Miscellaneous 4.84% | ||||||||
Other common stocks in initial period of acquisition | 2,592,240 | |||||||
Total common stocks (cost: $31,896,413,000) | 46,093,643 |
Bonds, notes & other debt instruments 0.01% | Principal amount (000) | |||||||
U.S. Treasury bonds & notes 0.01% | ||||||||
U.S. Treasury 0.01% | ||||||||
U.S. Treasury 0.875% 2017 | $ | 4,650 | 4,653 | |||||
Total bonds, notes & other debt instruments (cost: $4,652,000) | 4,653 | |||||||
Short-term securities 13.75% | ||||||||
Federal Home Loan Bank 0.48%–0.64% due 3/1/2017–8/2/2017 | 3,457,130 | 3,454,541 | ||||||
U.S. Treasury Bills 0.49%–0.62% due 3/9/2017–7/27/2017 | 1,163,800 | 1,162,909 | ||||||
Other securities | 2,742,254 | |||||||
Total short-term securities (cost: $7,359,417,000) | 7,359,704 | |||||||
Total investment securities 99.86% (cost: $39,260,482,000) | 53,458,000 | |||||||
Other assets less liabilities 0.14% | 77,599 | |||||||
Net assets 100.00% | $ | 53,535,599 |
AMCAP Fund | 13 |
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.
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. “Other securities” includes securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of securities which were valued under fair value procedures was $186,226,000, which represented .35% of the net assets of the fund. “Other securities” also includes securities (with an aggregate value of $1,860,789,000, which represented 3.48% of the net assets of the fund) which 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.
Forward currency contracts
The fund has entered into a forward currency contract as shown in the following table. The average month-end notional amount of open forward currency contracts while held was $59,803,000.
Contract amount | Unrealized appreciation | ||||||||||||||
Settlement date | Counterparty | Receive (000) | Deliver (000) | at 2/28/2017 (000) | |||||||||||
Sales: | |||||||||||||||
Euros | 3/10/2017 | Barclays Bank PLC | $47,970 | €44,817 | $471 |
14 | AMCAP Fund |
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, 2017, appear below.
Beginning shares | Additions | Reductions | Ending shares | Dividend income (000) | Value of affiliates at 2/28/2017 (000) | |||||||||||
Nordson Corp. | 3,992,500 | — | 572,500 | 3,420,000 | $ | 3,728 | $ | 410,537 | ||||||||
Zebra Technologies Corp., Class A1 | 3,007,622 | 269,100 | — | 3,276,722 | — | 297,231 | ||||||||||
Herbalife Ltd.1 | 2,628,790 | 4,245,386 | 1,978,849 | 4,895,327 | — | 276,537 | ||||||||||
Finisar Corp.1 | 6,928,379 | — | — | 6,928,379 | — | 231,962 | ||||||||||
ITT Inc. | 4,854,000 | 453,000 | — | 5,307,000 | 2,576 | 217,428 | ||||||||||
Texas Roadhouse, Inc. | 4,587,200 | — | — | 4,587,200 | 3,486 | 194,039 | ||||||||||
Endo International PLC1 | 3,155,798 | 8,327,502 | — | 11,483,300 | — | 156,747 | ||||||||||
Generac Holdings Inc.1 | 4,494,826 | — | 600,756 | 3,894,070 | — | 152,024 | ||||||||||
Lumentum Holdings Inc.1 | 3,051,214 | — | — | 3,051,214 | — | 140,051 | ||||||||||
Carrizo Oil & Gas, Inc.1 | 2,726,240 | 852,000 | — | 3,578,240 | — | 116,472 | ||||||||||
Denbury Resources Inc.1 | 22,428,635 | — | — | 22,428,635 | — | 60,782 | ||||||||||
Albemarle Corp.3 | 7,293,120 | — | 5,666,000 | 1,627,120 | 3,713 | — | ||||||||||
Celanese Corp., Series A3 | 7,802,922 | — | 1,410,922 | 6,392,000 | 10,418 | — | ||||||||||
Flex Ltd.1,3 | 36,821,000 | — | 19,411,600 | 17,409,400 | — | — | ||||||||||
Mattress Firm Holding Corp.3 | 2,409,442 | — | 2,409,442 | — | — | — | ||||||||||
Oshkosh Corp.3 | 5,079,000 | — | 4,654,000 | 425,000 | 1,447 | — | ||||||||||
PerkinElmer, Inc.3 | 6,508,524 | — | 2,151,024 | 4,357,500 | 1,220 | — | ||||||||||
Sensata Technologies Holding NV1,3 | 9,050,000 | 2,036,000 | 4,982,879 | 6,103,121 | — | — | ||||||||||
SM Energy Co.3 | 4,416,000 | — | — | 4,416,000 | 442 | — | ||||||||||
Sprouts Farmers Market, Inc.1,3 | 8,285,000 | — | 7,472,100 | 812,900 | — | — | ||||||||||
Texas Capital Bancshares, Inc.1,3 | 2,664,457 | — | 2,664,457 | — | — | — | ||||||||||
Trimble Inc.1,3 | 16,470,362 | — | 4,169,851 | 12,300,511 | — | — | ||||||||||
Viavi Solutions Inc.1,3 | 15,256,074 | — | 13,100,000 | 2,156,074 | — | — | ||||||||||
$ | 27,030 | $ | 2,253,810 |
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 2/28/2017. |
Key to symbol
€ = Euros
See Notes to Financial Statements
AMCAP Fund | 15 |
Statement of assets and liabilities | ||||||||
at February 28, 2017 | (dollars in thousands) | |||||||
Assets: | ||||||||
Investment securities, at value: | ||||||||
Unaffiliated issuers (cost: $37,094,962) | $ | 51,204,190 | ||||||
Affiliated issuers (cost: $2,165,520) | 2,253,810 | $ | 53,458,000 | |||||
Cash | 201,122 | |||||||
Unrealized appreciation on open forward currency contracts | 471 | |||||||
Receivables for: | ||||||||
Sales of investments | 21,076 | |||||||
Sales of fund’s shares | 102,159 | |||||||
Dividends and interest | 46,183 | |||||||
Other | 525 | 169,943 | ||||||
53,829,536 | ||||||||
Liabilities: | ||||||||
Payables for: | ||||||||
Purchases of investments | 191,117 | |||||||
Repurchases of fund’s shares | 71,576 | |||||||
Investment advisory services | 12,301 | |||||||
Services provided by related parties | 14,998 | |||||||
Trustees’ deferred compensation | 2,821 | |||||||
Other | 1,124 | 293,937 | ||||||
Net assets at February 28, 2017 | $ | 53,535,599 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of beneficial interest | $ | 38,539,493 | ||||||
Distributions in excess of net investment income | (2,821 | ) | ||||||
Undistributed net realized gain | 800,868 | |||||||
Net unrealized appreciation | 14,198,059 | |||||||
Net assets at February 28, 2017 | $ | 53,535,599 |
(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (1,865,294 total shares outstanding)
Shares | Net asset value | |||||||||||
Net assets | outstanding | per share | ||||||||||
Class A | $ | 27,268,739 | 946,051 | $ | 28.82 | |||||||
Class B | 8,633 | 331 | 26.10 | |||||||||
Class C | 1,502,528 | 58,367 | 25.74 | |||||||||
Class F-1 | 2,303,117 | 80,572 | 28.58 | |||||||||
Class F-2 | 6,250,789 | 215,718 | 28.98 | |||||||||
Class F-3 | 3,050 | 106 | 28.83 | |||||||||
Class 529-A | 1,528,323 | 53,546 | 28.54 | |||||||||
Class 529-B | 1,265 | 49 | 25.85 | |||||||||
Class 529-C | 344,824 | 13,319 | 25.89 | |||||||||
Class 529-E | 72,590 | 2,604 | 27.87 | |||||||||
Class 529-F-1 | 93,816 | 3,265 | 28.74 | |||||||||
Class R-1 | 103,344 | 3,914 | 26.41 | |||||||||
Class R-2 | 589,767 | 22,343 | 26.40 | |||||||||
Class R-2E | 22,064 | 771 | 28.61 | |||||||||
Class R-3 | 1,232,155 | 43,988 | 28.01 | |||||||||
Class R-4 | 1,238,372 | 43,323 | 28.58 | |||||||||
Class R-5E | 10 | — | * | 28.85 | ||||||||
Class R-5 | 1,338,785 | 45,914 | 29.16 | |||||||||
Class R-6 | 9,633,428 | 331,113 | 29.09 |
* | Amount less than one thousand. |
See Notes to Financial Statements
16 | AMCAP Fund |
Statement of operations | ||||||||
for the year ended February 28, 2017 | (dollars in thousands) | |||||||
Investment income: | ||||||||
Income: | ||||||||
Dividends (net of non-U.S. taxes of $4,790; also includes $27,030 from affiliates) | $ | 587,551 | ||||||
Interest | 36,291 | $ | 623,842 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 149,102 | |||||||
Distribution services | 101,673 | |||||||
Transfer agent services | 51,128 | |||||||
Administrative services | 14,136 | |||||||
Reports to shareholders | 1,854 | |||||||
Registration statement and prospectus | 1,723 | |||||||
Trustees’ compensation | 819 | |||||||
Auditing and legal | 157 | |||||||
Custodian | 547 | |||||||
Other | 1,568 | |||||||
Total fees and expenses before reimbursement | 322,707 | |||||||
Less transfer agent services reimbursement | — | † | ||||||
Total fees and expenses after reimbursement | 322,707 | |||||||
Net investment income | 301,135 | |||||||
Net realized gain and unrealized appreciation: | ||||||||
Net realized gain (loss) on: | ||||||||
Investments (includes $43,323 net gain from affiliates) | 1,548,632 | |||||||
Forward currency contracts | 5,547 | |||||||
Currency transactions | (500 | ) | 1,553,679 | |||||
Net unrealized appreciation on: | ||||||||
Investments (net of non-U.S. taxes of $456) | 7,975,219 | |||||||
Forward currency contracts | 471 | |||||||
Currency translations | 882 | 7,976,572 | ||||||
Net realized gain and unrealized appreciation | 9,530,251 | |||||||
Net increase in net assets resulting from operations | $ | 9,831,386 |
* | Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. |
† | Amount less than one thousand. |
See Notes to Financial Statements
AMCAP Fund | 17 |
Statements of changes in net assets
(dollars in thousands)
Year ended | Year ended | |||||||
February 28, | February 29, | |||||||
2017 | 2016 | |||||||
Operations: | ||||||||
Net investment income | $ | 301,135 | $ | 177,468 | ||||
Net realized gain | 1,553,679 | 3,231,810 | ||||||
Net unrealized appreciation (depreciation) | 7,976,572 | (7,385,922 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 9,831,386 | (3,976,644 | ) | |||||
Dividends and distributions paid to shareholders: | ||||||||
Dividends from net investment income | (242,147 | ) | — | |||||
Distributions from net realized gain on investments | (1,661,606 | ) | (3,871,537 | ) | ||||
Total dividends and distributions paid to shareholders | (1,903,753 | ) | (3,871,537 | ) | ||||
Net capital share transactions | 1,618,302 | 5,277,869 | ||||||
Total increase (decrease) in net assets | 9,545,935 | (2,570,312 | ) | |||||
Net assets: | ||||||||
Beginning of year | 43,989,664 | 46,559,976 | ||||||
End of year (including distributions in excess of net investment income and accumulated net investment loss: $(2,821) and $(2,375), respectively) | $ | 53,535,599 | $ | 43,989,664 |
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 to provide long-term growth of capital.
The fund has 19 share classes consisting of six retail share classes (Classes A, B and C, as well as three F share classes, F-1, F-2 and F-3), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, 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, F-3 and 529-F-1 | None | None | None | |||
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 | None | None | None |
* | Class B and 529-B shares of the fund are not available for purchase. |
On January 27, 2017, the fund made an additional retail share class (Class F-3) available for sale pursuant to an amendment to its registration statement filed with the U.S. Securities and Exchange Commission. Refer to the fund’s prospectus for more details.
Holders of all share classes have equal pro rata rights to the assets, dividends and liquidation proceeds of the fund. 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, transfer agent and administrative 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 fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The fund follows the significant accounting policies described in this section, as well as the valuation policies described in the next section on valuation.
Cash — Cash includes amounts held in an interest bearing deposit facility.
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.
AMCAP Fund | 19 |
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, transfer agent and administrative 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.
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 U.S. GAAP. 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, 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 deemed to be not 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. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors.
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
20 | AMCAP Fund |
business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of February 28, 2017 (dollars in thousands):
Investment securities | ||||||||||||||||
Level 1* | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Information technology | $ | 12,421,025 | $ | — | $ | — | $ | 12,421,025 | ||||||||
Health care | 8,738,918 | — | — | 8,738,918 | ||||||||||||
Consumer discretionary | 6,091,734 | — | — | 6,091,734 | ||||||||||||
Industrials | 5,425,598 | — | — | 5,425,598 | ||||||||||||
Energy | 4,315,460 | — | — | 4,315,460 | ||||||||||||
Financials | 2,927,662 | 37,444 | — | 2,965,106 | ||||||||||||
Consumer staples | 1,962,821 | 148,782 | — | 2,111,603 | ||||||||||||
Materials | 859,405 | — | — | 859,405 | ||||||||||||
Telecommunication services | 389,897 | — | — | 389,897 | ||||||||||||
Real estate | 182,657 | — | — | 182,657 | ||||||||||||
Miscellaneous | 2,592,240 | — | — | 2,592,240 | ||||||||||||
Bonds, notes & other debt instruments | — | 4,653 | — | 4,653 | ||||||||||||
Short-term securities | — | 7,359,704 | — | 7,359,704 | ||||||||||||
Total | $ | 45,907,417 | $ | 7,550,583 | $ | — | $ | 53,458,000 | ||||||||
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 471 | $ | — | $ | 471 |
* | Securities with a value of $1,905,369,000, which represented 3.56% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
AMCAP Fund | 21 |
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 exchange rate, interest rate and commodity price fluctuations.
Issuer risks — The prices of, and the income generated by, securities held by the fund may 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 initiatives.
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.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as the imposition of price controls or punitive taxes, that could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
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. Certain investment techniques
Forward currency contracts — The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.
On a daily basis, the fund’s investment adviser values forward currency contracts and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed or offset by another contract with the same broker for the same settlement date and currency.
Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the fund’s statement of operations.
22 | AMCAP Fund |
The following tables present the financial statement impacts resulting from the fund’s use of forward currency contracts as of, or for the year ended, February 28, 2017 (dollars in thousands):
Assets | Liabilities | |||||||||||||
Location on statement of | Location on statement of | |||||||||||||
Contract | Risk type | assets and liabilities | Value | assets and liabilities | Value | |||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | $ | 471 | Unrealized depreciation on open forward currency contracts | $ | — | |||||||
Net realized gain | Net unrealized appreciation | |||||||||||||
Location on statement of | Location on statement of | |||||||||||||
Contract | Risk type | operations | Value | operations | Value | |||||||||
Forward currency | Currency | Net realized gain on forward currency contracts | $ | 5,547 | Net unrealized appreciation on forward currency contracts | $ | 471 | |||||||
Collateral — The fund participates in a collateral program due to its use of forward currency contracts. The program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligations.
Rights of offset — The fund has entered into enforceable master netting agreements with certain counterparties for forward currency contracts, where on any date amounts payable by each party to the other (in the same currency with respect to the same transaction) may be closed or offset by each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statement of assets and liabilities.
The following table presents the fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the fund’s statement of assets and liabilities. The net amount column shows the impact of offsetting on the fund’s statement of assets and liabilities as of February 28, 2017, if close-out netting was exercised (dollars in thousands):
Gross amounts not offset in the | |||||||||
Gross amounts | statement of assets and liabilities and | ||||||||
recognized in the | subject to a master netting agreement | ||||||||
statement of assets | Available | Non-cash | Cash | Net | |||||
Counterparty | and liabilities | to offset | collateral* | collateral | amount | ||||
Assets: | |||||||||
Barclays Bank PLC | $ 471 | $ — | $ (471 | ) | $ — | $ — | |||
* | Non-cash collateral is shown on a settlement basis. |
6. 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, 2017, 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 2013, by state tax authorities for tax years before 2012 and by tax authorities outside the U.S. for tax years before 2015.
Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the fund filed for additional reclaims related to prior years. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The
AMCAP Fund | 23 |
fund records an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
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 and short-term capital gains and losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.
During the year ended February 28, 2017, the fund reclassified $218,000 from distributions in excess of net investment income to undistributed net realized gain, $59,216,000 from distributions in excess of net investment income to capital paid in on shares of beneficial interest and $33,366,000 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, 2017, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):
Undistributed long-term capital gains | $ | 801,340 | |
Gross unrealized appreciation on investment securities | 15,581,568 | ||
Gross unrealized depreciation on investment securities | (1,384,050 | ) | |
Net unrealized appreciation on investment securities | 14,197,518 | ||
Cost of investment securities | 39,260,482 |
The tax character of distributions paid to shareholders was as follows (dollars in thousands):
Year ended February 28, 2017 | Year ended February 29, 2016 | |||||||||||||||||||||||
Total | ||||||||||||||||||||||||
dividends and | Total | |||||||||||||||||||||||
Ordinary | Long-term | distributions | Ordinary | Long-term | distributions | |||||||||||||||||||
Share class | income | capital gains | paid | income | capital gains | paid | ||||||||||||||||||
Class A | $ | 113,184 | $ | 877,055 | $ | 990,239 | $ | — | $ | 2,101,219 | $ | 2,101,219 | ||||||||||||
Class B | — | 1,051 | 1,051 | — | 7,206 | 7,206 | ||||||||||||||||||
Class C | — | 55,024 | 55,024 | — | 138,515 | 138,515 | ||||||||||||||||||
Class F-1 | 7,982 | 76,902 | 84,884 | — | 222,362 | 222,362 | ||||||||||||||||||
Class F-2 | 35,661 | 163,745 | 199,406 | — | 308,519 | 308,519 | ||||||||||||||||||
Class F-31 | — | — | — | |||||||||||||||||||||
Class 529-A | 5,260 | 47,855 | 53,115 | — | 112,367 | 112,367 | ||||||||||||||||||
Class 529-B | — | 194 | 194 | — | 1,215 | 1,215 | ||||||||||||||||||
Class 529-C | — | 12,174 | 12,174 | — | 29,251 | 29,251 | ||||||||||||||||||
Class 529-E | 110 | 2,368 | 2,478 | — | 5,682 | 5,682 | ||||||||||||||||||
Class 529-F-1 | 502 | 2,878 | 3,380 | — | 6,773 | 6,773 | ||||||||||||||||||
Class R-1 | — | 3,867 | 3,867 | — | 9,847 | 9,847 | ||||||||||||||||||
Class R-2 | — | 20,420 | 20,420 | — | 50,061 | 50,061 | ||||||||||||||||||
Class R-2E | 50 | 345 | 395 | — | 24 | 24 | ||||||||||||||||||
Class R-3 | 1,479 | 40,807 | 42,286 | — | 102,537 | 102,537 | ||||||||||||||||||
Class R-4 | 4,896 | 39,376 | 44,272 | — | 95,123 | 95,123 | ||||||||||||||||||
Class R-5E2 | — | 3 | — | 3 | — | 3 | — | — | 3 | — | 3 | |||||||||||||
Class R-5 | 8,838 | 43,781 | 52,619 | — | 110,179 | 110,179 | ||||||||||||||||||
Class R-6 | 64,185 | 273,764 | 337,949 | — | 570,657 | 570,657 | ||||||||||||||||||
Total | $ | 242,147 | $ | 1,661,606 | $ | 1,903,753 | $ | — | $ | 3,871,537 | $ | 3,871,537 |
1 | Class F-3 shares were offered beginning January 27, 2017. |
2 | Class R-5E shares were offered beginning November 20, 2015. |
3 | Amount less than one thousand. |
24 | AMCAP Fund |
7. 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 0.283% on such assets in excess of $44 billion. For the year ended February 28, 2017, the investment advisory services fee was $149,102,000, which was equivalent to an annualized rate of 0.304% of average daily net assets.
Class-specific fees and expenses — Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are further described below:
Distribution services — The fund has plans of distribution for all share classes, except Class F-2, F-3, R-5E, 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, 2017, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.
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 | ||||
Class R-2E | 0.60 | 0.85 | ||||
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 Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the 529 college savings plan. From March 1, 2016 to June 30, 2016, the quarterly fee was 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 0.05% on such assets in excess of $70 billion. Effective July 1, 2016, the quarterly fee was amended to annual rates of 0.10% on the first $20 billion of the net assets invested in the Class 529 shares of the American Funds, 0.05% on such assets between $20 billion and $100 billion, and 0.03% on such assets over $100 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. Virginia529 is not considered a related party to the fund.
AMCAP Fund | 25 |
For the year ended ended February 28, 2017, class-specific expenses under the agreements were as follows (dollars in thousands):
Distribution | Transfer agent | Administrative | 529 plan | |||||||||
Share class | services | services | services | services | ||||||||
Class A | $60,380 | $32,955 | $2,600 | Not applicable | ||||||||
Class B | 302 | 48 | Not applicable | Not applicable | ||||||||
Class C | 14,629 | 1,867 | 734 | Not applicable | ||||||||
Class F-1 | 5,712 | 3,024 | 1,147 | Not applicable | ||||||||
Class F-2 | Not applicable | 5,398 | 2,430 | Not applicable | ||||||||
Class F-3* | Not applicable | — | † | — | † | Not applicable | ||||||
Class 529-A | 3,050 | 1,528 | 702 | $1,062 | ||||||||
Class 529-B | 53 | 8 | 3 | 4 | ||||||||
Class 529-C | 3,208 | 373 | 162 | 246 | ||||||||
Class 529-E | 336 | 38 | 34 | 52 | ||||||||
Class 529-F-1 | — | 93 | 43 | 64 | ||||||||
Class R-1 | 1,049 | 110 | 52 | Not applicable | ||||||||
Class R-2 | 4,135 | 1,985 | 278 | Not applicable | ||||||||
Class R-2E | 64 | 21 | 5 | Not applicable | ||||||||
Class R-3 | 5,865 | 1,818 | 588 | Not applicable | ||||||||
Class R-4 | 2,890 | 1,171 | 578 | Not applicable | ||||||||
Class R-5E | Not applicable | — | † | — | † | Not applicable | ||||||
Class R-5 | Not applicable | 645 | 646 | Not applicable | ||||||||
Class R-6 | Not applicable | 46 | 4,134 | Not applicable | ||||||||
Total class-specific expenses | $101,673 | $51,128 | $14,136 | $1,428 |
* | Class F-3 shares were offered beginning January 27, 2017. | |
† | Amount less than one thousand. |
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 $819,000 in the fund’s statement of operations reflects $407,000 in current fees (either paid in cash or deferred) and a net increase of $412,000 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.
Security transactions with related funds — The fund may purchase from, or sell securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.
26 | AMCAP Fund |
8. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Reinvestments of | Net (decrease) | |||||||||||||||||||||||||||||||
Sales1 | dividends and distributions | Repurchases1 | increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended February 28, 2017 | ||||||||||||||||||||||||||||||||
Class A | $ | 2,552,516 | 94,572 | $ | 973,901 | 36,405 | $ | (4,251,652 | ) | (157,002 | ) | $ | (725,235 | ) | (26,025 | ) | ||||||||||||||||
Class B | 646 | 27 | 1,047 | 44 | (53,047 | ) | (2,179 | ) | (51,354 | ) | (2,108 | ) | ||||||||||||||||||||
Class C | 249,478 | 10,324 | 54,391 | 2,279 | (415,407 | ) | (17,191 | ) | (111,538 | ) | (4,588 | ) | ||||||||||||||||||||
Class F-1 | 436,680 | 16,351 | 83,227 | 3,140 | (1,054,933 | ) | (39,787 | ) | (535,026 | ) | (20,296 | ) | ||||||||||||||||||||
Class F-2 | 2,914,773 | 107,067 | 194,669 | 7,210 | (1,213,297 | ) | (44,639 | ) | 1,896,145 | 69,638 | ||||||||||||||||||||||
Class F-32 | 3,034 | 106 | — | — | (1 | ) | — | 3 | 3,033 | 106 | ||||||||||||||||||||||
Class 529-A | 164,114 | 6,116 | 53,105 | 2,005 | (179,197 | ) | (6,696 | ) | 38,022 | 1,425 | ||||||||||||||||||||||
Class 529-B | 149 | 7 | 194 | 8 | (9,112 | ) | (376 | ) | (8,769 | ) | (361 | ) | ||||||||||||||||||||
Class 529-C | 40,242 | 1,653 | 12,169 | 507 | (58,433 | ) | (2,404 | ) | (6,022 | ) | (244 | ) | ||||||||||||||||||||
Class 529-E | 7,098 | 271 | 2,477 | 96 | (10,120 | ) | (388 | ) | (545 | ) | (21 | ) | ||||||||||||||||||||
Class 529-F-1 | 16,786 | 621 | 3,379 | 126 | (15,865 | ) | (586 | ) | 4,300 | 161 | ||||||||||||||||||||||
Class R-1 | 15,067 | 610 | 3,860 | 158 | (34,108 | ) | (1,379 | ) | (15,181 | ) | (611 | ) | ||||||||||||||||||||
Class R-2 | 148,507 | 5,975 | 20,403 | 834 | (182,938 | ) | (7,389 | ) | (14,028 | ) | (580 | ) | ||||||||||||||||||||
Class R-2E | 18,742 | 696 | 395 | 15 | (1,426 | ) | (53 | ) | 17,711 | 658 | ||||||||||||||||||||||
Class R-3 | 268,819 | 10,220 | 42,265 | 1,630 | (361,790 | ) | (13,781 | ) | (50,706 | ) | (1,931 | ) | ||||||||||||||||||||
Class R-4 | 297,085 | 11,076 | 44,258 | 1,668 | (338,471 | ) | (12,638 | ) | 2,872 | 106 | ||||||||||||||||||||||
Class R-5E | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class R-5 | 237,432 | 8,747 | 52,434 | 1,935 | (372,774 | ) | (13,824 | ) | (82,908 | ) | (3,142 | ) | ||||||||||||||||||||
Class R-6 | 1,912,882 | 70,196 | 337,742 | 12,466 | (993,093 | ) | (36,453 | ) | 1,257,531 | 46,209 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 9,284,050 | 344,635 | $ | 1,879,916 | 70,526 | $ | (9,545,664 | ) | (356,765 | ) | $ | 1,618,302 | 58,396 | ||||||||||||||||||
Year ended February 29, 2016 | ||||||||||||||||||||||||||||||||
Class A | $ | 3,158,602 | 115,303 | $ | 2,068,058 | 77,166 | $ | (2,909,905 | ) | (107,072 | ) | $ | 2,316,755 | 85,397 | ||||||||||||||||||
Class B | 2,747 | 107 | 7,171 | 289 | (67,732 | ) | (2,666 | ) | (57,814 | ) | (2,270 | ) | ||||||||||||||||||||
Class C | 320,353 | 12,829 | 137,071 | 5,649 | (393,062 | ) | (15,861 | ) | 64,362 | 2,617 | ||||||||||||||||||||||
Class F-1 | 623,956 | 22,842 | 219,225 | 8,244 | (666,072 | ) | (24,662 | ) | 177,109 | 6,424 | ||||||||||||||||||||||
Class F-2 | 1,193,198 | 43,743 | 299,943 | 11,154 | (887,479 | ) | (32,780 | ) | 605,662 | 22,117 | ||||||||||||||||||||||
Class 529-A | 158,365 | 5,834 | 112,345 | 4,228 | (148,506 | ) | (5,479 | ) | 122,204 | 4,583 | ||||||||||||||||||||||
Class 529-B | 406 | 16 | 1,214 | 49 | (10,306 | ) | (411 | ) | (8,686 | ) | (346 | ) | ||||||||||||||||||||
Class 529-C | 41,066 | 1,644 | 29,244 | 1,198 | (44,146 | ) | (1,767 | ) | 26,164 | 1,075 | ||||||||||||||||||||||
Class 529-E | 7,691 | 288 | 5,681 | 218 | (8,184 | ) | (306 | ) | 5,188 | 200 | ||||||||||||||||||||||
Class 529-F-1 | 16,859 | 621 | 6,773 | 253 | (18,407 | ) | (677 | ) | 5,225 | 197 | ||||||||||||||||||||||
Class R-1 | 26,125 | 1,025 | 9,838 | 397 | (25,085 | ) | (993 | ) | 10,878 | 429 | ||||||||||||||||||||||
Class R-2 | 140,923 | 5,574 | 50,029 | 2,014 | (167,228 | ) | (6,594 | ) | 23,724 | 994 | ||||||||||||||||||||||
Class R-2E | 2,884 | 113 | 23 | 1 | (33 | ) | (2 | ) | 2,874 | 112 | ||||||||||||||||||||||
Class R-3 | 342,031 | 12,716 | 102,463 | 3,920 | (384,439 | ) | (14,458 | ) | 60,055 | 2,178 | ||||||||||||||||||||||
Class R-4 | 348,003 | 12,808 | 95,098 | 3,580 | (344,065 | ) | (12,700 | ) | 99,036 | 3,688 | ||||||||||||||||||||||
Class R-5E4 | 10 | — | 3 | — | — | — | — | 10 | — | 3 | ||||||||||||||||||||||
Class R-5 | 306,680 | 10,956 | 109,434 | 4,037 | (383,375 | ) | (13,801 | ) | 32,739 | 1,192 | ||||||||||||||||||||||
Class R-6 | 1,917,606 | 69,927 | 570,231 | 21,172 | (695,453 | ) | (25,307 | ) | 1,792,384 | 65,792 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 8,607,505 | 316,346 | $ | 3,823,841 | 143,569 | $ | (7,153,477 | ) | (265,536 | ) | $ | 5,277,869 | 194,379 |
1 | Includes exchanges between share classes of the fund. |
2 | Class F-3 shares were offered beginning January 27, 2017. |
3 | Amount less than one thousand. |
4 | Class R-5E shares were offered beginning November 20, 2015. |
9. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $10,518,051,000 and $12,009,350,000, respectively, during the year ended February 28, 2017.
AMCAP Fund | 27 |
Financial highlights
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return2,3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements | Ratio of expenses to average net assets after reimbursements3 | Ratio of net income (loss) to average net assets3 | ||||||||||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | $ | 24.47 | $ | .16 | $ | 5.23 | $ | 5.39 | $ | (.12 | ) | $ | (.92 | ) | $ | (1.04 | ) | $ | 28.82 | 22.38 | % | $ | 27,269 | .68 | % | .68 | % | .59 | % | |||||||||||||||||||||||
Year ended 2/29/2016 | 29.03 | .10 | (2.36 | ) | (2.26 | ) | — | (2.30 | ) | (2.30 | ) | 24.47 | (8.34 | ) | 23,786 | .67 | .67 | .38 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 28.53 | .08 | 3.04 | 3.12 | (.01 | ) | (2.61 | ) | (2.62 | ) | 29.03 | 11.33 | 25,740 | .68 | .68 | .27 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 23.06 | .09 | 7.61 | 7.70 | (.07 | ) | (2.16 | ) | (2.23 | ) | 28.53 | 34.38 | 22,567 | .70 | .70 | .35 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.78 | .10 | 2.26 | 2.36 | (.08 | ) | — | (.08 | ) | 23.06 | 11.44 | 16,417 | .74 | .74 | .48 | |||||||||||||||||||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 22.31 | (.04 | ) | 4.75 | 4.71 | — | (.92 | ) | (.92 | ) | 26.10 | 21.46 | 9 | 1.46 | 1.46 | (.18 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 26.87 | (.10 | ) | (2.16 | ) | (2.26 | ) | — | (2.30 | ) | (2.30 | ) | 22.31 | (9.03 | ) | 54 | 1.43 | 1.43 | (.39 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 26.78 | (.13 | ) | 2.83 | 2.70 | — | (2.61 | ) | (2.61 | ) | 26.87 | 10.48 | 127 | 1.44 | 1.44 | (.48 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 21.86 | (.10 | ) | 7.18 | 7.08 | — | (2.16 | ) | (2.16 | ) | 26.78 | 33.40 | 195 | 1.47 | 1.47 | (.42 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.77 | (.06 | ) | 2.15 | 2.09 | — | — | — | 21.86 | 10.52 | 241 | 1.50 | 1.50 | (.29 | ) | |||||||||||||||||||||||||||||||||||||
Class C: | �� | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 22.02 | (.05 | ) | 4.69 | 4.64 | — | (.92 | ) | (.92 | ) | 25.74 | 21.42 | 1,503 | 1.49 | 1.49 | (.22 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 26.57 | (.11 | ) | (2.14 | ) | (2.25 | ) | — | (2.30 | ) | (2.30 | ) | 22.02 | (9.10 | ) | 1,386 | 1.48 | 1.48 | (.44 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 26.52 | (.14 | ) | 2.80 | 2.66 | — | (2.61 | ) | (2.61 | ) | 26.57 | 10.44 | 1,603 | 1.49 | 1.49 | (.53 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 21.66 | (.11 | ) | 7.13 | 7.02 | — | (2.16 | ) | (2.16 | ) | 26.52 | 33.37 | 1,451 | 1.51 | 1.51 | (.46 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.60 | (.07 | ) | 2.13 | 2.06 | — | — | — | 21.66 | 10.51 | 1,139 | 1.54 | 1.54 | (.33 | ) | |||||||||||||||||||||||||||||||||||||
Class F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 24.27 | .14 | 5.19 | 5.33 | (.10 | ) | (.92 | ) | (1.02 | ) | 28.58 | 22.31 | 2,303 | .75 | .75 | .53 | ||||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 28.83 | .09 | (2.35 | ) | (2.26 | ) | — | (2.30 | ) | (2.30 | ) | 24.27 | (8.40 | ) | 2,448 | .73 | .73 | .31 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 28.36 | .06 | 3.02 | 3.08 | — | (2.61 | ) | (2.61 | ) | 28.83 | 11.27 | 2,723 | .74 | .74 | .22 | |||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.95 | .08 | 7.57 | 7.65 | (.08 | ) | (2.16 | ) | (2.24 | ) | 28.36 | 34.36 | 3,036 | .74 | .74 | .31 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.69 | .10 | 2.25 | 2.35 | (.09 | ) | — | (.09 | ) | 22.95 | 11.41 | 1,973 | .74 | .74 | .48 | |||||||||||||||||||||||||||||||||||||
Class F-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 24.60 | .22 | 5.26 | 5.48 | (.18 | ) | (.92 | ) | (1.10 | ) | 28.98 | 22.66 | 6,251 | .48 | .48 | .79 | ||||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 29.11 | .16 | (2.37 | ) | (2.21 | ) | — | (2.30 | ) | (2.30 | ) | 24.60 | (8.14 | ) | 3,593 | .47 | .47 | .57 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 28.61 | .14 | 3.04 | 3.18 | (.07 | ) | (2.61 | ) | (2.68 | ) | 29.11 | 11.53 | 3,609 | .47 | .47 | .49 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 23.11 | .15 | 7.63 | 7.78 | (.12 | ) | (2.16 | ) | (2.28 | ) | 28.61 | 34.71 | 1,983 | .49 | .49 | .56 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.83 | .15 | 2.27 | 2.42 | (.14 | ) | — | (.14 | ) | 23.11 | 11.70 | 1,300 | .50 | .50 | .72 | |||||||||||||||||||||||||||||||||||||
Class F-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Period from 1/27/2017 to 2/28/20174,5 | 28.36 | .02 | .45 | .47 | — | — | — | 28.83 | 1.66 | 6 | 3 | .03 | 6 | .03 | 6 | .09 | 6 | |||||||||||||||||||||||||||||||||||
Class 529-A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 24.24 | .13 | 5.19 | 5.32 | (.10 | ) | (.92 | ) | (1.02 | ) | 28.54 | 22.31 | 1,528 | .77 | .77 | .50 | ||||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 28.81 | .08 | (2.35 | ) | (2.27 | ) | — | (2.30 | ) | (2.30 | ) | 24.24 | (8.44 | ) | 1,264 | .77 | .77 | .28 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 28.35 | .05 | 3.02 | 3.07 | — | (2.61 | ) | (2.61 | ) | 28.81 | 11.24 | 1,370 | .77 | .77 | .18 | |||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.93 | .07 | 7.56 | 7.63 | (.05 | ) | (2.16 | ) | (2.21 | ) | 28.35 | 34.28 | 1,193 | .79 | .79 | .25 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.68 | .08 | 2.25 | 2.33 | (.08 | ) | — | (.08 | ) | 22.93 | 11.32 | 861 | .82 | .82 | .40 |
28 | AMCAP Fund |
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return2,3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements | Ratio of expenses to average net assets after reimbursements3 | Ratio of net income (loss) to average net assets3 | ||||||||||||||||||||||||||||||||||||||||
Class 529-B: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | $ | 22.13 | $ | (.07 | ) | $ | 4.71 | $ | 4.64 | $ | — | $ | (.92 | ) | $ | (.92 | ) | $ | 25.85 | 21.32 | % | $ | 1 | 1.56 | % | 1.56 | % | (.28 | )% | |||||||||||||||||||||||
Year ended 2/29/2016 | 26.70 | (.13 | ) | (2.14 | ) | (2.27 | ) | — | (2.30 | ) | (2.30 | ) | 22.13 | (9.13 | ) | 9 | 1.55 | 1.55 | (.52 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 26.66 | (.16 | ) | 2.81 | 2.65 | — | (2.61 | ) | (2.61 | ) | 26.70 | 10.34 | 20 | 1.56 | 1.56 | (.61 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 21.79 | (.13 | ) | 7.16 | 7.03 | — | (2.16 | ) | (2.16 | ) | 26.66 | 33.22 | 31 | 1.59 | 1.59 | (.55 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.73 | (.08 | ) | 2.14 | 2.06 | — | — | — | 21.79 | 10.44 | 36 | 1.62 | 1.62 | (.41 | ) | |||||||||||||||||||||||||||||||||||||
Class 529-C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 22.15 | (.07 | ) | 4.73 | 4.66 | — | (.92 | ) | (.92 | ) | 25.89 | 21.39 | 345 | 1.54 | 1.54 | (.27 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 26.73 | (.13 | ) | (2.15 | ) | (2.28 | ) | — | (2.30 | ) | (2.30 | ) | 22.15 | (9.16 | ) | 301 | 1.55 | 1.55 | (.50 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 26.68 | (.16 | ) | 2.82 | 2.66 | — | (2.61 | ) | (2.61 | ) | 26.73 | 10.37 | 334 | 1.56 | 1.56 | (.60 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 21.80 | (.13 | ) | 7.17 | 7.04 | — | (2.16 | ) | (2.16 | ) | 26.68 | 33.25 | 298 | 1.58 | 1.58 | (.53 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.74 | (.08 | ) | 2.14 | 2.06 | — | — | — | 21.80 | 10.44 | 218 | 1.61 | 1.61 | (.39 | ) | |||||||||||||||||||||||||||||||||||||
Class 529-E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 23.70 | .07 | 5.06 | 5.13 | (.04 | ) | (.92 | ) | (.96 | ) | 27.87 | 22.01 | 73 | .99 | .99 | .28 | ||||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 28.28 | .01 | (2.29 | ) | (2.28 | ) | — | (2.30 | ) | (2.30 | ) | 23.70 | (8.64 | ) | 62 | 1.00 | 1.00 | .04 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 27.94 | (.02 | ) | 2.97 | 2.95 | — | (2.61 | ) | (2.61 | ) | 28.28 | 10.97 | 69 | 1.01 | 1.01 | (.06 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.63 | — | 7 | 7.47 | 7.47 | — | 7 | (2.16 | ) | (2.16 | ) | 27.94 | 33.96 | 62 | 1.04 | 1.04 | .01 | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.41 | .03 | 2.22 | 2.25 | (.03 | ) | — | (.03 | ) | 22.63 | 11.06 | 45 | 1.06 | 1.06 | .15 | |||||||||||||||||||||||||||||||||||||
Class 529-F-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 24.40 | .19 | 5.23 | 5.42 | (.16 | ) | (.92 | ) | (1.08 | ) | 28.74 | 22.54 | 94 | .55 | .55 | .72 | ||||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 28.92 | .13 | (2.35 | ) | (2.22 | ) | — | (2.30 | ) | (2.30 | ) | 24.40 | (8.23 | ) | 76 | .56 | .56 | .49 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 28.43 | .11 | 3.03 | 3.14 | (.04 | ) | (2.61 | ) | (2.65 | ) | 28.92 | 11.46 | 83 | .56 | .56 | .40 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.98 | .12 | 7.59 | 7.71 | (.10 | ) | (2.16 | ) | (2.26 | ) | 28.43 | 34.59 | 72 | .58 | .58 | .47 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.73 | .13 | 2.24 | 2.37 | (.12 | ) | — | (.12 | ) | 22.98 | 11.51 | 49 | .61 | .61 | .61 | |||||||||||||||||||||||||||||||||||||
Class R-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 22.56 | (.05 | ) | 4.82 | 4.77 | — | (.92 | ) | (.92 | ) | 26.41 | 21.49 | 103 | 1.47 | 1.47 | (.20 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 27.16 | (.11 | ) | (2.19 | ) | (2.30 | ) | — | (2.30 | ) | (2.30 | ) | 22.56 | (9.08 | ) | 102 | 1.47 | 1.47 | (.42 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 27.05 | (.14 | ) | 2.86 | 2.72 | — | (2.61 | ) | (2.61 | ) | 27.16 | 10.46 | 111 | 1.46 | 1.46 | (.50 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.05 | (.11 | ) | 7.27 | 7.16 | — | (2.16 | ) | (2.16 | ) | 27.05 | 33.42 | 90 | 1.47 | 1.47 | (.42 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.94 | (.06 | ) | 2.17 | 2.11 | — | — | — | 22.05 | 10.58 | 58 | 1.49 | 1.49 | (.28 | ) | |||||||||||||||||||||||||||||||||||||
Class R-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 22.56 | (.05 | ) | 4.81 | 4.76 | — | (.92 | ) | (.92 | ) | 26.40 | 21.45 | 590 | 1.46 | 1.46 | (.19 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 27.14 | (.10 | ) | (2.18 | ) | (2.28 | ) | — | (2.30 | ) | (2.30 | ) | 22.56 | (9.02 | ) | 517 | 1.44 | 1.44 | (.39 | ) | ||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 27.02 | (.13 | ) | 2.86 | 2.73 | — | (2.61 | ) | (2.61 | ) | 27.14 | 10.47 | 595 | 1.43 | 1.43 | (.48 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.03 | (.10 | ) | 7.25 | 7.15 | — | (2.16 | ) | (2.16 | ) | 27.02 | 33.45 | 557 | 1.44 | 1.44 | (.39 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 19.92 | (.05 | ) | 2.16 | 2.11 | — | — | — | 22.03 | 10.59 | 436 | 1.48 | 1.48 | (.26 | ) | |||||||||||||||||||||||||||||||||||||
Class R-2E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 24.38 | .03 | 5.21 | 5.24 | (.09 | ) | (.92 | ) | (1.01 | ) | 28.61 | 21.86 | 22 | 1.16 | 1.16 | .11 | ||||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 29.04 | .06 | (2.42 | ) | (2.36 | ) | — | (2.30 | ) | (2.30 | ) | 24.38 | (8.69 | ) | 3 | 1.04 | 1.04 | .24 | ||||||||||||||||||||||||||||||||||
Period from 8/29/2014 to 2/28/20154,8 | 29.38 | .04 | 1.32 | 1.36 | — | (1.70 | ) | (1.70 | ) | 29.04 | 4.77 | 6,9 | — | 10 | .67 | 9,11 | .67 | 9,11 | .29 | 9,11 |
See page 30 for footnotes.
AMCAP Fund | 29 |
Financial highlights (continued)
Income (loss) from investment operations1 | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss) | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return2,3 | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements | Ratio of expenses to average net assets after reimbursements3 | Ratio of net income (loss) to average net assets3 | ||||||||||||||||||||||||||||||||||||||||
Class R-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | $ | 23.81 | $ | .07 | $ | 5.08 | $ | 5.15 | $ | (.03 | ) | $ | (.92 | ) | $ | (.95 | ) | $ | 28.01 | 21.99 | % | $ | 1,232 | 1.02 | % | 1.02 | % | .25 | % | |||||||||||||||||||||||
Year ended 2/29/2016 | 28.40 | .01 | (2.30 | ) | (2.29 | ) | — | (2.30 | ) | (2.30 | ) | 23.81 | (8.64 | ) | 1,093 | 1.02 | 1.02 | .03 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 28.05 | (.02 | ) | 2.98 | 2.96 | — | (2.61 | ) | (2.61 | ) | 28.40 | 10.96 | 1,242 | 1.01 | 1.01 | (.06 | ) | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.71 | — | 7 | 7.50 | 7.50 | — | 7 | (2.16 | ) | (2.16 | ) | 28.05 | 33.97 | 1,018 | 1.03 | 1.03 | .02 | |||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.48 | .04 | 2.22 | 2.26 | (.03 | ) | — | (.03 | ) | 22.71 | 11.07 | 752 | 1.04 | 1.04 | .17 | |||||||||||||||||||||||||||||||||||||
Class R-4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 24.28 | .15 | 5.18 | 5.33 | (.11 | ) | (.92 | ) | (1.03 | ) | 28.58 | 22.33 | 1,238 | .72 | .72 | .55 | ||||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 28.83 | .09 | (2.34 | ) | (2.25 | ) | — | (2.30 | ) | (2.30 | ) | 24.28 | (8.36 | ) | 1,049 | .71 | .71 | .33 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 28.36 | .07 | 3.02 | 3.09 | (.01 | ) | (2.61 | ) | (2.62 | ) | 28.83 | 11.31 | 1,140 | .71 | .71 | .24 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 22.94 | .08 | 7.57 | 7.65 | (.07 | ) | (2.16 | ) | (2.23 | ) | 28.36 | 34.37 | 919 | .72 | .72 | .33 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.67 | .10 | 2.25 | 2.35 | (.08 | ) | — | (.08 | ) | 22.94 | 11.40 | 628 | .73 | .73 | .49 | |||||||||||||||||||||||||||||||||||||
Class R-5E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 24.48 | .20 | 5.24 | 5.44 | (.15 | ) | (.92 | ) | (1.07 | ) | 28.85 | 22.54 | — | 10 | .60 | .51 | .76 | |||||||||||||||||||||||||||||||||||
Period from 11/20/2015 to 2/29/20164,12 | 27.89 | .04 | (2.11 | ) | (2.07 | ) | — | (1.34 | ) | (1.34 | ) | 24.48 | (7.62 | )6 | — | 10 | .15 | 6 | .15 | 6 | .17 | 6 | ||||||||||||||||||||||||||||||
Class R-5: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 24.74 | .23 | 5.30 | 5.53 | (.19 | ) | (.92 | ) | (1.11 | ) | 29.16 | 22.74 | 1,339 | .41 | .41 | .86 | ||||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 29.25 | .18 | (2.39 | ) | (2.21 | ) | — | (2.30 | ) | (2.30 | ) | 24.74 | (8.10 | ) | 1,214 | .42 | .42 | .63 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 28.72 | .16 | 3.05 | 3.21 | (.07 | ) | (2.61 | ) | (2.68 | ) | 29.25 | 11.62 | 1,400 | .41 | .41 | .54 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 23.19 | .16 | 7.66 | 7.82 | (.13 | ) | (2.16 | ) | (2.29 | ) | 28.72 | 34.79 | 1,229 | .42 | .42 | .63 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.90 | .17 | 2.26 | 2.43 | (.14 | ) | — | (.14 | ) | 23.19 | 11.74 | 931 | .43 | .43 | .78 | |||||||||||||||||||||||||||||||||||||
Class R-6: | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Year ended 2/28/2017 | 24.69 | .25 | 5.28 | 5.53 | (.21 | ) | (.92 | ) | (1.13 | ) | 29.09 | 22.76 | 9,633 | .36 | .36 | .90 | ||||||||||||||||||||||||||||||||||||
Year ended 2/29/2016 | 29.18 | .19 | (2.38 | ) | (2.19 | ) | — | (2.30 | ) | (2.30 | ) | 24.69 | (8.05 | ) | 7,033 | .37 | .37 | .68 | ||||||||||||||||||||||||||||||||||
Year ended 2/28/2015 | 28.66 | .17 | 3.05 | 3.22 | (.09 | ) | (2.61 | ) | (2.70 | ) | 29.18 | 11.67 | 6,394 | .37 | .37 | .59 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2014 | 23.15 | .18 | 7.64 | 7.82 | (.15 | ) | (2.16 | ) | (2.31 | ) | 28.66 | 34.86 | 4,451 | .37 | .37 | .68 | ||||||||||||||||||||||||||||||||||||
Year ended 2/28/2013 | 20.86 | .18 | 2.26 | 2.44 | (.15 | ) | — | (.15 | ) | 23.15 | 11.83 | 2,442 | .38 | .38 | .83 |
Year ended February 28 or 29 | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Portfolio turnover rate for all share classes | 25 | % | 31 | % | 33 | % | 29 | % | 27 | % |
1 | Based on average shares outstanding. |
2 | Total returns exclude any applicable sales charges, including contingent deferred sales charges. |
3 | This column reflects the impact, if any, of certain reimbursements from CRMC. During one of the periods shown, CRMC paid a portion of the fund’s transfer agent fees for certain retirement plan share classes. |
4 | Based on operations for the period shown and, accordingly, is not representative of a full year. |
5 | Class F-3 shares were offered beginning January 27, 2017. |
6 | Not annualized. |
7 | Amount less than $.01. |
8 | Class R-2E shares were offered beginning August 29, 2014. |
9 | All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower. |
10 | Amount less than $1 million. |
11 | Annualized. |
12 | Class R-5E shares were offered beginning November 20, 2015. |
See Notes to Financial Statements
30 | AMCAP Fund |
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, 2017, 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, 2017, 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, 2017, 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 10, 2017
AMCAP Fund | 31 |
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, 2016, through February 28, 2017).
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 titled “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:
Retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2, F-3 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.
32 | AMCAP Fund |
Beginning account value 9/1/2016 | Ending account value 2/28/2017 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A - actual return | $ | 1,000.00 | $ | 1,081.99 | $ | 3.51 | .68 | % | ||||||||
Class A - assumed 5% return | 1,000.00 | 1,021.42 | 3.41 | .68 | ||||||||||||
Class B - actual return | 1,000.00 | 1,077.96 | 7.47 | 1.45 | ||||||||||||
Class B - assumed 5% return | 1,000.00 | 1,017.60 | 7.25 | 1.45 | ||||||||||||
Class C - actual return | 1,000.00 | 1,077.79 | 7.62 | 1.48 | ||||||||||||
Class C - assumed 5% return | 1,000.00 | 1,017.46 | 7.40 | 1.48 | ||||||||||||
Class F-1 - actual return | 1,000.00 | 1,081.84 | 3.82 | .74 | ||||||||||||
Class F-1 - assumed 5% return | 1,000.00 | 1,021.12 | 3.71 | .74 | ||||||||||||
Class F-2 - actual return | 1,000.00 | 1,083.53 | 2.43 | .47 | ||||||||||||
Class F-2 - assumed 5% return | 1,000.00 | 1,022.46 | 2.36 | .47 | ||||||||||||
Class F-3 - actual return† | 1,000.00 | 1,016.57 | .34 | .39 | ||||||||||||
Class F-3 - assumed 5% return† | 1,000.00 | 1,022.86 | 1.96 | .39 | ||||||||||||
Class 529-A - actual return | 1,000.00 | 1,081.64 | 3.92 | .76 | ||||||||||||
Class 529-A - assumed 5% return | 1,000.00 | 1,021.03 | 3.81 | .76 | ||||||||||||
Class 529-B - actual return | 1,000.00 | 1,077.45 | 7.98 | 1.55 | ||||||||||||
Class 529-B - assumed 5% return | 1,000.00 | 1,017.11 | 7.75 | 1.55 | ||||||||||||
Class 529-C - actual return | 1,000.00 | 1,077.77 | 7.88 | 1.53 | ||||||||||||
Class 529-C - assumed 5% return | 1,000.00 | 1,017.21 | 7.65 | 1.53 | ||||||||||||
Class 529-E - actual return | 1,000.00 | 1,080.60 | 5.06 | .98 | ||||||||||||
Class 529-E - assumed 5% return | 1,000.00 | 1,019.93 | 4.91 | .98 | ||||||||||||
Class 529-F-1 - actual return | 1,000.00 | 1,082.92 | 2.79 | .54 | ||||||||||||
Class 529-F-1 - assumed 5% return | 1,000.00 | 1,022.12 | 2.71 | .54 | ||||||||||||
Class R-1 - actual return | 1,000.00 | 1,078.32 | 7.58 | 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 | 1,078.33 | 7.58 | 1.47 | ||||||||||||
Class R-2 - assumed 5% return | 1,000.00 | 1,017.50 | 7.35 | 1.47 | ||||||||||||
Class R-2E - actual return | 1,000.00 | 1,079.57 | 5.98 | 1.16 | ||||||||||||
Class R-2E - assumed 5% return | 1,000.00 | 1,019.04 | 5.81 | 1.16 | ||||||||||||
Class R-3 - actual return | 1,000.00 | 1,080.23 | 5.21 | 1.01 | ||||||||||||
Class R-3 - assumed 5% return | 1,000.00 | 1,019.79 | 5.06 | 1.01 | ||||||||||||
Class R-4 - actual return | 1,000.00 | 1,081.67 | 3.66 | .71 | ||||||||||||
Class R-4 - assumed 5% return | 1,000.00 | 1,021.27 | 3.56 | .71 | ||||||||||||
Class R-5E - actual return | 1,000.00 | 1,083.03 | 2.22 | .43 | ||||||||||||
Class R-5E - assumed 5% return | 1,000.00 | 1,022.66 | 2.16 | .43 | ||||||||||||
Class R-5 - actual return | 1,000.00 | 1,083.73 | 2.12 | .41 | ||||||||||||
Class R-5 - assumed 5% return | 1,000.00 | 1,022.76 | 2.06 | .41 | ||||||||||||
Class R-6 - actual return | 1,000.00 | 1,083.69 | 1.86 | .36 | ||||||||||||
Class R-6 - assumed 5% return | 1,000.00 | 1,023.01 | 1.81 | .36 |
* | 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). |
† | The period for the “annualized expense ratio” and “actual return” line is based on the number of days since the initial sale of the share class on January 27, 2017. The “assumed 5% return” line is based on 181 days. |
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, 2017:
Long-term capital gains | $ | 1,686,928,000 | ||
Qualified dividend income | 100 | % | ||
Corporate dividends received deduction | 100 | % | ||
U.S. government income that may be exempt from state taxation | $ | 9,892,000 |
Individual shareholders should refer to their Form 1099 or other tax information, which was mailed in January 2017, to determine the calendar year amounts to be included on their 2017 tax returns. Shareholders should consult their tax advisors.
AMCAP Fund | 33 |
Board of trustees and other officers
Independent trustees1
Name and year of birth | 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, 1944 | 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, 1947 | 1998 | Founder and President, MAD Ink (communications company) ; former Editor-in-Chief, The Los Angeles Herald Examiner (retired 1989) | 10 | None | ||||
James G. Ellis, 1947 | 2010 | Dean and Professor of Marketing, Marshall School of Business, University of Southern California | 80 | Mercury General Corporation | ||||
Leonard R. Fuller, 1946 | 2010 | Private investor; former President and CEO, Fuller Consulting (financial management consulting) | 80 | None | ||||
Pablo R. González Guajardo, 1967 | 2015 | CEO, Kimberly-Clark de México, S.A.B. de C.V. | 7 | América Móvil, S.A.B. de C.V.; Grupo Lala, S.A.B. de C.V.; Grupo Sanborns, S.A.B. de C.V.; Kimberly-Clark de México, S.A.B. de C.V. | ||||
William D. Jones, 1955 Chairman of the Board (Independent and Non-Executive) | 2006 | Real estate developer/owner, President and CEO, CityLink Investment Corporation (acquires, develops and manages real estate ventures in urban communities) and City Scene Management Company (provides commercial asset management services) | 8 | Sempra Energy | ||||
William H. Kling, 1942 | 2006 | President Emeritus and former CEO, American Public Media | 10 | None | ||||
John C. Mazziotta, MD, 1949 | 2011 | Physician; Professor of Neurology, University of California, Los Angeles; Vice Chancellor, UCLA Health Sciences; CEO, UCLA Health System; former Dean, David Geffen School of Medicine at UCLA; former Chair, Department of Neurology, UCLA; former Associate Director, Semel Institute, UCLA; former Director, Brain Mapping Center, UCLA | 4 | None | ||||
William R. McLaughlin, 1956 | 2015 | President, The Orvis Company; former President and CEO, Select Comfort | 4 | None | ||||
Bailey Morris-Eck, 1944 | 1999 | Director and Programming Chair, WYPR Baltimore/Washington (public radio station) | 4 | None |
Interested trustees4,5
Name, year of birth 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, 1952 Vice Chairman of the Board | 1992–1994 1996 | Partner — Capital Research Global Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.6 | 2 | None | ||||
James Terrile, 1965 President | 2006 | Partner — Capital Research Global Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.;6 Director, Capital Strategy Research, Inc.6 | 1 | 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.
34 | AMCAP Fund |
Other officers5
Name, year of birth 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, 1958 Senior Vice President | 2006 | Partner — Capital Research Global Investors, Capital Research and Management Company | ||
Eric S. Richter, 1960 Senior Vice President | 2008 | Partner — Capital Research Global Investors, Capital Research and Management Company | ||
Herbert Y. Poon, 1973 Vice President | 2012 | Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company | ||
Jessica Chase Spaly, 1977 Vice President | 2015 | Partner — Capital Research Global Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.6 | ||
Laurie D. Neat, 1971 Secretary | 2016 | Vice President — Fund Business Management Group, Capital Research and Management Company Vice President, Capital Guardian Trust Company;6 Assistant Vice President and Trust Officer, Capital Bank and Trust Company;6 Assistant Vice President, Capital International, Inc.6 | ||
Brian D. Bullard, 1969 Treasurer | 2016 | Senior Vice President — Investment Operations, Capital Research and Management Company | ||
Raymond F. Sullivan, Jr., 1957 Assistant Secretary | 2011 | Vice President — Fund Business Management Group, Capital Research and Management Company | ||
Hong T. Le, 1978 Assistant Treasurer | 2016 | Assistant Vice President — Investment Operations, Capital Research and Management Company; Assistant Vice President — Capital Bank and Trust Company6 | ||
Dori Laskin, 1951 Assistant Treasurer | 2011 | Vice President — Investment Operations, 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/trusteeships (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 | The term interested trustee refers to a trustee who is an “interested person” 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 trustees and/or 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. |
AMCAP Fund | 35 |
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
36 | AMCAP Fund |
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, 2017, 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, 2017, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
Standard & Poor’s 500 Composite Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2017 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.
American Funds from Capital Group
The Capital AdvantageSM
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 27 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1 | |
The Capital SystemSM | |
The Capital System combines individual accountability with teamwork. Funds using The Capital System are 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. | |
American Funds’ superior long-term track record | |
Equity funds have beaten their Lipper peer indexes in 93% of 10-year periods and 98% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 80% of 10-year periods and 80% of 20-year periods.2 Fund management fees have been among the lowest in the industry.3 | |
1 | Portfolio manager experience as of December 31, 2016. | |
2 | Based on Class F-2 share results for rolling periods through December 31, 2016. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except Capital Income Builder and SMALLCAP World Fund, for which the Lipper average was used). Expenses differ for each share class, so results will vary. Class F-2 shares were first offered on August 1, 2008. Class F-2 share results prior to the date of first sale are hypothetical based on Class A share results without a sales charge, adjusted for typical estimated expenses. Results for certain funds with an inception date after August 1, 2008, also include hypothetical returns because those funds’ Class F-2 shares sold after the funds’ date of first offering. Please see americanfunds.com for more information on specific expense adjustments and the actual dates of first sale. | |
3 | On average, our management fees were in the lowest quintile 73% of the time, based on the 20-year period ended December 31, 2016, 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: | ||
2016 | $106,000 | |
2017 | $110,000 | |
b) Audit-Related Fees: | ||
2016 | $8,000 | |
2017 | $14,000 | |
c) Tax Fees: | ||
2016 | $9,000 | |
2017 | $8,000 | |
The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns. | ||
d) All Other Fees: |
2016 | None | |
2017 | 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: | ||
2016 | $889,000 | |
2017 | $1,321,000 | |
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: | ||
2016 | None | |
2017 | None | |
The tax fees consist of consulting services relating to the Registrant’s investments. | ||
d) All Other Fees: | ||
2016 | $3,000 | |
2017 | None | |
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 $1,071,000 for fiscal year 2016 and $1,485,000 for fiscal year 2017. 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
Common stocks 86.10% Information technology 23.20% | Shares | Value (000) |
Broadcom Ltd. | 6,553,245 | $1,382,276 |
Oracle Corp. | 28,582,000 | 1,217,307 |
Alphabet Inc., Class C1 | 817,379 | 672,874 |
Alphabet Inc., Class A1 | 616,910 | 521,246 |
Accenture PLC, Class A | 7,008,300 | 858,517 |
Skyworks Solutions, Inc. | 8,284,622 | 785,465 |
ASML Holding NV | 5,636,640 | 683,433 |
Texas Instruments Inc. | 8,100,414 | 620,654 |
Tencent Holdings Ltd. | 20,086,918 | 535,624 |
Samsung Electronics Co., Ltd. | 281,400 | 478,312 |
Juniper Networks, Inc. | 16,962,167 | 474,941 |
Trimble Inc.1 | 12,300,511 | 381,685 |
MasterCard Inc., Class A | 3,208,957 | 354,461 |
Akamai Technologies, Inc.1 | 5,347,205 | 334,735 |
Arista Networks, Inc.1 | 2,628,166 | 312,725 |
Zebra Technologies Corp., Class A1,2 | 3,276,722 | 297,231 |
Flex Ltd.1 | 17,409,400 | 287,081 |
Alibaba Group Holding Ltd. (ADR)1 | 2,444,866 | 251,577 |
Intel Corp. | 6,600,000 | 238,920 |
Finisar Corp.1,2 | 6,928,379 | 231,962 |
Autodesk, Inc.1 | 2,650,000 | 228,695 |
International Business Machines Corp. | 1,000,000 | 179,820 |
Qorvo, Inc.1 | 2,679,980 | 177,147 |
salesforce.com, inc.1 | 2,068,000 | 168,232 |
Visa Inc., Class A | 1,798,000 | 158,116 |
Lumentum Holdings Inc.1,2 | 3,051,214 | 140,051 |
Applied Materials, Inc. | 3,380,000 | 122,424 |
Intuit Inc. | 797,000 | 99,976 |
Kakaku.com, Inc. | 6,031,000 | 87,074 |
Tata Consultancy Services Ltd. | 985,000 | 36,410 |
Syntel, Inc. | 1,968,000 | 34,814 |
Amphenol Corp., Class A | 407,000 | 28,168 |
Viavi Solutions Inc.1 | 2,156,074 | 21,604 |
Palo Alto Networks, Inc.1 | 115,000 | 17,468 |
12,421,025 | ||
Health care 16.32% | ||
Amgen Inc. | 8,086,581 | 1,427,524 |
UnitedHealth Group Inc. | 6,019,906 | 995,572 |
Stryker Corp. | 7,233,552 | 929,945 |
BioMarin Pharmaceutical Inc.1 | 8,625,200 | 810,165 |
AbbVie Inc. | 10,548,000 | 652,288 |
Thermo Fisher Scientific Inc. | 3,852,100 | 607,399 |
Medtronic PLC | 6,960,999 | 563,214 |
Illumina, Inc.1 | 2,233,249 | 373,846 |
Gilead Sciences, Inc. | 4,576,960 | 322,584 |
Express Scripts Holding Co.1 | 3,931,000 | 277,725 |
Common stocks Health care (continued) | Shares | Value (000) |
PerkinElmer, Inc. | 4,357,500 | $236,438 |
Humana Inc. | 982,000 | 207,448 |
Boston Scientific Corp.1 | 8,018,700 | 196,859 |
Abbott Laboratories | 4,242,126 | 191,235 |
Johnson & Johnson | 1,500,000 | 183,315 |
Hologic, Inc.1 | 4,182,600 | 169,730 |
Endo International PLC1,2 | 11,483,300 | 156,747 |
Hypermarcas SA, ordinary nominative | 16,560,300 | 144,204 |
Edwards Lifesciences Corp.1 | 935,001 | 87,928 |
athenahealth, Inc.1 | 620,054 | 73,123 |
Danaher Corp. | 850,000 | 72,718 |
McKesson Corp. | 392,400 | 58,911 |
8,738,918 | ||
Consumer discretionary 11.38% | ||
Netflix, Inc.1 | 11,914,700 | 1,693,436 |
Amazon.com, Inc.1 | 988,300 | 835,153 |
Priceline Group Inc.1 | 397,400 | 685,169 |
Twenty-First Century Fox, Inc., Class A | 15,325,000 | 458,524 |
Wyndham Worldwide Corp. | 4,054,800 | 337,522 |
lululemon athletica inc.1 | 3,940,000 | 257,124 |
NIKE, Inc., Class B | 4,418,643 | 252,570 |
Panera Bread Co., Class A1 | 1,000,000 | 230,800 |
Viacom Inc., Class B | 5,065,000 | 220,074 |
Texas Roadhouse, Inc.2 | 4,587,200 | 194,039 |
Williams-Sonoma, Inc. | 3,678,000 | 178,714 |
BorgWarner Inc. | 3,678,000 | 155,175 |
JCDecaux SA | 4,662,515 | 148,925 |
Comcast Corp., Class A | 3,657,800 | 136,875 |
Kering SA | 509,000 | 123,889 |
Marriott International, Inc., Class A | 1,300,613 | 113,140 |
TJX Companies, Inc. | 900,000 | 70,605 |
6,091,734 | ||
Industrials 10.14% | ||
Union Pacific Corp. | 6,865,366 | 741,048 |
General Dynamics Corp. | 2,830,000 | 537,162 |
Textron Inc. | 10,756,576 | 508,786 |
Nordson Corp.2 | 3,420,000 | 410,537 |
Nielsen Holdings PLC | 9,240,665 | 409,916 |
Boeing Co. | 1,900,000 | 342,437 |
C.H. Robinson Worldwide, Inc. | 4,023,715 | 323,386 |
Old Dominion Freight Line, Inc.1 | 3,390,000 | 311,066 |
Sensata Technologies Holding NV1 | 6,103,121 | 250,533 |
CSX Corp. | 4,954,500 | 240,591 |
ITT Inc. 2 | 5,307,000 | 217,428 |
Generac Holdings Inc.1,2 | 3,894,070 | 152,024 |
Landstar System, Inc. | 1,640,000 | 142,352 |
Capita PLC | 18,915,633 | 132,262 |
Caterpillar Inc. | 1,235,000 | 119,375 |
Norfolk Southern Corp. | 925,000 | 111,953 |
J.B. Hunt Transport Services, Inc. | 988,907 | 97,081 |
Valmont Industries, Inc. | 590,000 | 92,777 |
PARK24 Co., Ltd. | 2,800,000 | 78,633 |
Carlisle Companies Inc. | 519,000 | 53,613 |
Common stocks Industrials (continued) | Shares | Value (000) |
Moog Inc., Class A1 | 518,100 | $35,013 |
Fortive Corp. | 552,450 | 31,849 |
Cummins Inc. | 198,000 | 29,401 |
Oshkosh Corp. | 425,000 | 28,853 |
PayPoint PLC | 2,274,900 | 27,522 |
5,425,598 | ||
Energy 8.06% | ||
EOG Resources, Inc. | 8,661,300 | 840,059 |
Concho Resources Inc.1 | 5,355,743 | 709,368 |
Halliburton Co. | 11,677,900 | 624,301 |
Canadian Natural Resources, Ltd. | 17,411,000 | 499,311 |
Pioneer Natural Resources Co. | 2,434,000 | 452,651 |
Noble Energy, Inc. | 10,272,404 | 374,018 |
Schlumberger Ltd. | 2,905,000 | 233,446 |
Southwestern Energy Co.1 | 15,743,799 | 118,236 |
Carrizo Oil & Gas, Inc.1,2 | 3,578,240 | 116,472 |
SM Energy Co. | 4,416,000 | 108,854 |
Denbury Resources Inc.1,2 | 22,428,635 | 60,782 |
Cabot Oil & Gas Corp. | 2,500,000 | 54,750 |
Tullow Oil PLC | 15,493,000 | 51,598 |
Apache Corp. | 764,100 | 40,184 |
Cimarex Energy Co. | 250,000 | 31,430 |
4,315,460 | ||
Financials 5.54% | ||
PNC Financial Services Group, Inc. | 3,806,549 | 484,307 |
Markel Corp.1 | 340,000 | 333,108 |
East West Bancorp, Inc. | 5,609,000 | 303,559 |
Goldman Sachs Group, Inc. | 1,219,500 | 302,509 |
Progressive Corp. | 7,000,000 | 274,260 |
JPMorgan Chase & Co. | 2,907,000 | 263,433 |
U.S. Bancorp | 4,300,600 | 236,533 |
State Street Corp. | 2,800,000 | 223,188 |
Charles Schwab Corp. | 4,721,000 | 190,776 |
BB&T Corp. | 3,500,000 | 168,770 |
Signature Bank1 | 749,789 | 118,099 |
HDFC Bank Ltd.3 | 1,732,607 | 37,444 |
Wells Fargo & Co. | 503,100 | 29,120 |
2,965,106 | ||
Consumer staples 3.94% | ||
Kroger Co. | 18,708,600 | 594,933 |
Costco Wholesale Corp. | 2,215,300 | 392,507 |
Herbalife Ltd.1,2 | 4,895,327 | 276,537 |
Mead Johnson Nutrition Co. | 2,489,755 | 218,576 |
Whole Foods Market, Inc. | 4,898,000 | 150,222 |
L’Oreal SA3 | 800,000 | 148,782 |
Altria Group, Inc. | 1,750,000 | 131,110 |
Philip Morris International Inc. | 1,150,000 | 125,753 |
Blue Buffalo Pet Products, Inc.1 | 2,380,410 | 58,177 |
Sprouts Farmers Market, Inc.1 | 812,900 | 15,006 |
2,111,603 |
Common stocks Materials 1.61% | Shares | Value (000) |
Celanese Corp., Series A | 6,392,000 | $569,975 |
Albemarle Corp. | 1,627,120 | 165,169 |
Monsanto Co. | 586,500 | 66,761 |
Valspar Corp. | 300,000 | 33,366 |
International Flavors & Fragrances Inc. | 192,000 | 24,134 |
859,405 | ||
Telecommunication services 0.73% | ||
Verizon Communications Inc. | 6,300,000 | 312,669 |
AT&T Inc. | 1,848,012 | 77,228 |
389,897 | ||
Real estate 0.34% | ||
Crown Castle International Corp. REIT | 996,717 | 93,223 |
Simon Property Group, Inc. REIT | 485,000 | 89,434 |
182,657 | ||
Miscellaneous 4.84% | ||
Other common stocks in initial period of acquisition | 2,592,240 | |
Total common stocks (cost: $31,896,413,000) | 46,093,643 | |
Bonds, notes & other debt instruments 0.01% U.S. Treasury bonds & notes 0.01% U.S. Treasury 0.01% | Principal amount (000) | |
U.S. Treasury 0.875% 2017 | $4,650 | 4,653 |
Total bonds, notes & other debt instruments (cost: $4,652,000) | 4,653 | |
Short-term securities 13.75% | ||
3M Co. 0.62% due 3/28/20174 | 25,000 | 24,987 |
Apple Inc. 0.81%–0.88% due 4/24/2017–6/2/20174 | 266,700 | 266,308 |
Bank of New York Mellon Corp. 0.90% due 4/11/2017 | 60,000 | 59,951 |
CAFCO, LLC 1.06%–1.10% due 4/4/2017–5/8/20174 | 106,100 | 105,966 |
Chariot Funding, LLC 0.70% due 3/9/20174 | 15,000 | 14,997 |
Chevron Corp. 0.70%–0.88% due 3/2/2017–6/6/20174 | 220,000 | 219,645 |
Cisco Systems, Inc. 0.65% due 3/29/20174 | 30,000 | 29,984 |
Coca-Cola Co. 0.76%–0.93% due 3/15/2017–6/12/20174 | 190,000 | 189,771 |
Danaher Corp. 0.85% due 3/7/2017 | 20,000 | 19,997 |
ExxonMobil Corp. 0.71% due 5/23/2017 | 50,000 | 49,916 |
Fannie Mae 0.49%–0.52% due 3/14/2017–4/26/2017 | 125,000 | 124,936 |
Federal Farm Credit Banks 0.49%–0.73% due 4/11/2017–9/19/2017 | 225,000 | 224,634 |
Federal Home Loan Bank 0.48%–0.64% due 3/1/2017–8/2/2017 | 3,457,130 | 3,454,541 |
Freddie Mac 0.53% due 6/16/2017 | 100,000 | 99,820 |
GE Capital Treasury Services (U.S.) LLC 0.83%–0.85% due 5/24/2017–6/1/2017 | 100,000 | 99,800 |
General Electric Co. 0.57%–0.78% due 3/1/2017–3/28/2017 | 52,450 | 52,426 |
John Deere Canada ULC 0.69%–0.71% due 3/20/2017–3/21/20174 | 59,750 | 59,728 |
John Deere Financial Inc. 0.70% due 3/28/20174 | 46,000 | 45,975 |
Merck & Co. Inc. 0.57%–0.58% due 3/10/2017–3/14/20174 | 50,000 | 49,990 |
Microsoft Corp. 0.87% due 3/14/20174 | 50,000 | 49,988 |
PepsiCo Inc. 0.64%–0.65% due 4/6/2017–4/11/20174 | 135,800 | 135,700 |
Pfizer Inc. 0.84%–0.92% due 5/15/2017–6/15/20174 | 147,000 | 146,696 |
Private Export Funding Corp. 0.89% due 4/6/20174 | 50,000 | 49,964 |
Short-term securities | Principal amount (000) | Value (000) |
Procter & Gamble Co. 0.62% due 3/10/20174 | $50,000 | $49,992 |
Qualcomm Inc. 0.80%–0.82% due 4/4/2017–5/9/20174 | 125,400 | 125,277 |
Regents of the University of California 0.75% due 4/10/2017 | 25,000 | 24,980 |
U.S. Treasury Bills 0.49%–0.62% due 3/9/2017–7/27/2017 | 1,163,800 | 1,162,909 |
United Parcel Service Inc. 0.66% due 4/4/20174 | 50,000 | 49,968 |
Wal-Mart Stores, Inc. 0.61% due 3/22/20174 | 100,000 | 99,962 |
Walt Disney Co. 0.80% due 3/31/2017–4/17/20174 | 146,000 | 145,891 |
Wells Fargo Bank, N.A. 0.90%–0.95% due 3/1/2017–3/8/2017 | 125,000 | 125,005 |
Total short-term securities (cost: $7,359,417,000) | 7,359,704 | |
Total investment securities 99.86% (cost: $39,260,482,000) | 53,458,000 | |
Other assets less liabilities 0.14% | 77,599 | |
Net assets 100.00% | $53,535,599 |
Settlement date | Counterparty | Contract amount | Unrealized appreciation at 2/28/2017 (000) | ||
Receive (000) | Deliver (000) | ||||
Sales: | |||||
Euros | 3/10/2017 | Barclays Bank PLC | $47,970 | €44,817 | $471 |
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 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $186,226,000, which represented .35% of the net assets of the fund. |
4 | 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 $1,860,789,000, which represented 3.48% of the net assets of the fund. |
Key to abbreviation and symbol |
ADR = American Depositary Receipts |
€ = Euros |
MFGEFPX-002-0417O-S54127 | AMCAP Fund — Page 6 of 6 |
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 schedule of investments, as of February 28, 2017, and the related statements 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 (collectively, the “financial statements”), the financial highlights for each of the five years in the period then ended (the financial statements and financial highlights are included in Item 1 of this Form N-CSR), and the schedule of investments in securities as of February 28, 2017 (included in Item 6 of this Form N-CSR). These financial statements, financial highlights, and schedule of investments in securities are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements, financial highlights, and schedule of investments in securities 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, financial highlights, and schedule of investments in securities are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and schedule of investments in securities, 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, 2017, 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, the financial statements, financial highlights, and schedule of investments in securities referred to above present fairly, in all material respects, the financial position of AMCAP Fund as of February 28, 2017, and 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 five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Costa Mesa, California
April 10, 2017
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 28, 2017 |
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 28, 2017 |
By /s/ Brian D. Bullard |
Brian D. Bullard, Treasurer and Principal Financial Officer |
Date: April 28, 2017 |