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CAFBX Amcap Fund

Filed: 24 May 19, 1:01pm

 

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, 2018

 

 

 

 

 

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

 

 

AMCAP Fund®

 

Annual report
for the year ended
February 28, 2018

 

We take a disciplined,
long-term approach
to investing in growth
companies.

 

 

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. 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, 2018 (the most recent calendar quarter-end):

 

Class A shares1 year5 years10 years
    
Reflecting 5.75% maximum sales charge12.16%12.66%9.84%

 

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, 2018 (unaudited). The expense ratio is restated to reflect current fees.

 

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.

 

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

 

Contents

1Letter to investors
  
4The value of a long-term perspective
  
6Summary investment portfolio
  
10Financial statements
  
34Board of trustees and other officers

 

 

Fellow investors:

 

The U.S. stock market provided strong returns during the fiscal year ended February 28, 2018. While geopolitical concerns continue to add to market volatility, economic data in the U.S. was generally positive and company earnings were better than expected. Stocks also rose amid expectations for lower corporate tax rates, which came to pass in December, and reduced business regulations under the new administration. The Federal Reserve proceeded cautiously on interest rates, raising them three times last year. Under new leadership, the Fed signaled a similar path for this year.

 

During the 12-month period, AMCAP Fund had a total return of 21.10% versus a 17.10% total return for the unmanaged Standard & Poor’s 500 Composite Index —a market capitalization-weighted index based on the results of approximately 500 widely held common stocks — and a total return of 24.70% 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 10.51%, compared with 9.73% for the S&P 500 and 9.64% for the Lipper index. Over its 51-year lifetime, the fund had an average annual total return of 11.65%, compared with 10.10% for the S&P 500 and 9.24% for the Lipper index.

 

Investment results analysis

The fund’s largest sector, information technology, had strong results, led by e-commerce company Alibaba Group and Tencent, which operates the popular WeChat messaging app. While AMCAP restricts its investments in non-U.S. companies to no more than 10% of the fund’s assets, both of these companies did particularly well. They continued to benefit from the rising trend of online

 

Results at a glance

 

For periods ended February 28, 2018, 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)  21.10%  15.24%  10.51%  11.65%
Standard & Poor’s 500 Composite Index*  17.10   14.73   9.73   10.10 
Lipper Growth Funds Index  24.70   15.60   9.64   9.24 

 

*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 Fund1
 

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, 93% 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. AMCAP leverages Capital Group’s global research operations to understand the sources of companies’ growth opportunities, as well as their inherent risks.

 

Equity portion breakdown by domicile (%)

 

 

 

 Country/Region  Fund  Index
United States  93%  100%
Canada  1    
Europe  3    
Japan  *   
Asia-Pacific ex. Japan  *   
Emerging markets  3    
 Total  100%  100%

 

Equity portion breakdown by revenue (%)

 

 

 

 Country/Region  Fund  Index
United States  58%  62%
Canada  2   2 
Europe  13   12 
Japan  3   3 
Asia-Pacific ex. Japan  1   1 
Emerging markets  23   20 
 Total  100%  100%

 

*Amount less than 1%

 

Compared with the S&P 500 as a percent of net assets. All figures include convertible securities.

 

Source: Capital Group (as of February 28, 2018).

 

shopping and gaming by Chinese consumers. Tencent also successfully spun off its online books unit in a $1.1 billion initial public offering and took a 12% stake in U.S. social media platform Snap. Shares of computer networking company Arista Networks and ASML Holding, a supplier of lithography tools used in semiconductor manufacturing, also contributed to returns.

 

In the consumer discretionary sector, shares of Netflix (the fund’s largest holding) rose strongly on the back of record subscriber growth for its video streaming content and services. Much of the subscriber growth was attributed to the growing popularity of Netflix’s various original series. In addition, the company announced it had agreed to a licensing deal with Chinese online video provider iQiyi, a subsidiary of Baidu. It is the first time Netflix has been able to offer its services in China, albeit indirectly, as iQiyi will receive access to the U.S. company’s content.

 

Shares of health care companies were mixed, with AbbVie (the fund’s second-largest holding) among the strongest contributors to fund returns and BioMarin Pharmaceutical one of the largest detractors. AbbVie prevailed in a patent challenge brought by Coherus BioSciences over its leading drug Humira, which has a range of applications, including as an arthritis treatment; it also reached a settlement with Amgen that extends Humira’s patent protection to 2023. AbbVie was additionally boosted by strong clinical trial results from its eczema treatment, with most patients in the study reporting

 

2AMCAP Fund
 

improvements. Meanwhile, BioMarin Pharmaceutical shares declined amid ongoing concerns about high drug prices.

 

Some of the fund’s energy holdings impacted returns, including oilfield services company Halliburton and oil-and-gas producer Noble Energy. Shares of Halliburton fell on concerns over higher costs, with the company releasing mixed quarterly earnings; however, the stock recouped some of its losses amid the ongoing recovery in oil prices. Noble Energy also declined as the company lowered its production guidance, although it too regained some lost ground as oil prices rebounded.

 

The fund’s cash position declined to 12.5% from 13.9% (including other short-term securities) at the beginning of the period. While portfolio managers continue to find select investment opportunities, valuations overall 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 are generally positive: 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 continue to increase, we are well below the level that historically has caused major pressure on economic growth.

 

Outside the U.S., the euro zone continues to recover. Many emerging markets were particularly strong last year as fundamentals strengthened. China’s economy continues to grow, albeit with increasing levels of debt leverage. After a deep recession and widespread political scandals, Brazil’s economy appears to be stabilizing. But the unpredictable situation with North Korea, long-term uncertainty related to Brexit, and other geopolitical risks may portend ongoing market volatility. Against this backdrop, we continue with our consistent and diligent approach to growth investing, just as we have for the past 50-plus years.

 

AMCAP evaluates and invests in companies that have demonstrated solid 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 11, 2018

 

For current information about the fund, visit americanfunds.com.

 

Why your annual report has a different look

 

You have probably noticed that this annual report doesn’t look like the glossier reports of the past. After surveying a large representative sample of our investors, we have decided to make a few key changes to these documents and have adjusted the look and feel of our reports (e.g., paper stock and design standards) to reflect the prevailing industry norm. These changes will reduce costs, saving shareholders money, as well as the amount of paper we consume.

 

You also told us that we should be considering ways to deliver the valuable perspective of our investment professionals to you digitally. We are in the process of building our digital investor education content on our website, which will provide a platform for investment professionals to communicate with investors using the channels that you access more often.

 

If you have not already done so, you can elect to receive your annual reports electronically. Once you do, you will receive an email notification as soon as the documents are available. To learn more, visitamericanfunds.com/gopaperless.■

 

AMCAP Fund3
 

The value of a long-term perspective

 

How a $10,000 investment has grown

 

 

The results shown are before taxes on fund distributions and sale of fund shares.

 

1As 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.
2The maximum initial sales charge was 8.5% prior to July 1, 1988.
3Includes reinvested dividends of $120,227 and reinvested capital gain distributions of $1,163,193.
4Source: S&P Dow Jones Indices LLC. The S&P 500 is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.
5Source: 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.
6Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics.

 

4AMCAP Fund
 

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 $9,425.2Results 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.

 

 

AMCAP Fund5
 

Summary investment portfolioFebruary 28, 2018

 

Industry sector diversificationPercent of net assets

 

 

 

Common stocks 87.45% Shares  Value
(000)
 
Information technology 22.94%        
Alphabet Inc., Class C1  833,879  $921,211 
Alphabet Inc., Class A1  658,210   726,611 
Microsoft Corp.  12,187,000   1,142,775 
Accenture PLC, Class A  6,828,700   1,099,489 
Tencent Holdings Ltd.2  14,995,918   822,433 
Skyworks Solutions, Inc.  7,087,375   774,296 
ASML Holding NV2  3,580,100   699,385 
Broadcom Ltd.  2,831,848   697,937 
Texas Instruments Inc.  6,262,200   678,509 
Intel Corp.  12,349,000   608,682 
MasterCard Inc., Class A  3,374,957   593,182 
Trimble Inc.1  12,300,511   466,558 
Autodesk, Inc.1  3,956,199   464,735 
Arista Networks, Inc.1  1,451,975   391,656 
Alibaba Group Holding Ltd. (ADR)1  2,023,866   376,722 
Other securities      4,109,111 
       14,573,292 
         
Health care 19.77%        
AbbVie Inc.  17,891,000   2,072,315 
Amgen Inc.  6,662,652   1,224,396 
UnitedHealth Group Inc.  5,179,906   1,171,488 
Thermo Fisher Scientific Inc.  5,448,500   1,136,448 
Stryker Corp.  6,966,696   1,129,719 
Abbott Laboratories  16,787,854   1,012,811 
BioMarin Pharmaceutical Inc.1,3  10,345,500   839,744 
Gilead Sciences, Inc.  8,698,760   684,853 
Illumina, Inc.1  2,196,455   500,836 
PerkinElmer, Inc.3  5,922,900   452,154 
Other securities      2,335,336 
       12,560,100 
         
Consumer discretionary 15.37%        
Netflix, Inc.1  9,601,000   2,797,539 
Amazon.com, Inc.1  870,300   1,316,285 
Twenty-First Century Fox, Inc., Class A  26,324,000   969,250 
Booking Holdings Inc.1  454,875   925,234 
NIKE, Inc., Class B  9,778,813   655,474 
Harley-Davidson, Inc.  8,353,938   379,102 
Other securities      2,718,605 
       9,761,489 
         
Industrials 10.31%        
CSX Corp.  13,881,359   745,707 
General Dynamics Corp.  3,087,000   686,703 
Textron Inc.  11,325,281   677,818 
Nielsen Holdings PLC  15,387,665   502,099 

 

6AMCAP Fund
 
  Shares  Value
(000)
 
Old Dominion Freight Line, Inc.  3,598,000  $499,834 
AMETEK, Inc.  6,271,000   474,966 
Equifax Inc.  2,933,728   331,511 
Other securities      2,629,173 
       6,547,811 
         
Financials 7.10%        
PNC Financial Services Group, Inc.  3,004,400   473,674 
Charles Schwab Corp.  8,606,000   456,290 
Wells Fargo & Co.  7,413,000   432,993 
Progressive Corp.  7,000,000   403,060 
JPMorgan Chase & Co.  3,218,000   371,679 
Other securities      2,373,139 
      ��4,510,835 
         
Energy 5.95%        
EOG Resources, Inc.  10,144,300   1,028,835 
Concho Resources Inc.1  4,704,743   709,475 
Halliburton Co.  15,229,000   706,930 
Canadian Natural Resources, Ltd.  13,427,300   415,941 
Other securities      918,068 
       3,779,249 
         
Consumer staples 2.69%        
Costco Wholesale Corp.  2,276,300   434,546 
Herbalife Ltd.1,3  4,648,809   428,155 
Other securities      849,189 
       1,711,890 
         
Materials 1.64%        
Celanese Corp., Series A  5,699,624   574,864 
Other securities      468,123 
       1,042,987 
         
Other 0.68%        
Other securities      434,656 
         
Miscellaneous 1.00%        
Other common stocks in initial period of acquisition      631,988 
         
Total common stocks (cost: $34,286,720,000)      55,554,297 

 

Bonds, notes & other debt instruments 0.08%Principal amount
(000)
    
U.S. Treasury bonds & notes 0.08%        
U.S. Treasury 0.08%        
U.S. Treasury 1.00% 2018 $50,000   49,809 
         
Total bonds, notes & other debt instruments (cost: $49,929,000)      49,809 
         
Short-term securities 12.22%        
Federal Home Loan Bank 1.13%–1.63% due 3/2/2018–6/20/2018  2,912,800   2,907,263 
Intel Corp. 1.50%–1.51% due 3/5/2018–3/6/2018  28,600   28,594 
U.S. Treasury Bills 1.05%–1.79% due 3/1/2018–8/23/2018  2,309,200   2,300,304 
Other securities      2,528,890 
         
Total short-term securities (cost: $7,766,747,000)      7,765,051 
Total investment securities 99.75% (cost: $42,103,396,000)      63,369,157 
Other assets less liabilities 0.25%      161,070 
         
Net assets 100.00%     $63,530,227 

 

AMCAP Fund7
 

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” also includes securities (with an aggregate value of $1,721,786,000, which represented 2.71% 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.

 

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, 2018, appear below.

 

  Beginning
shares
 Additions Reductions Ending
shares
 Net
realized
(loss) gain
(000)
  Net
unrealized
(depreciation)
appreciation
(000)
  Dividend
income
(000)
  Value of
affiliates at
2/28/2018
(000)
 
Common stocks 4.82%                        
Information technology 0.33%                        
Finisar Corp.1 6,928,379 294,000 425,379 6,797,000 $(427) $(106,906) $  $122,346 
Acacia Communications, Inc.1  2,226,600  2,226,600     (28,325)     86,169 
Lumentum Holdings Inc.1,4 3,051,214  84,923 2,966,291  2,934   43,104       
Zebra Technologies Corp., Class A1,4 3,276,722  1,100,000 2,176,722  29,099   88,700       
                       208,515 
                         
Health care 2.41%                        
BioMarin Pharmaceutical Inc.1 8,625,200 1,720,300  10,345,500     (116,187)     839,744 
PerkinElmer, Inc. 4,357,500 1,565,400  5,922,900     99,425   1,267   452,154 
Integra LifeSciences Holdings Corp.1  4,555,967  4,555,967     17,502      240,236 
Endo International PLC1,4 11,483,300  11,483,300   (413,643)  364,705       
                       1,532,134 
                         
Consumer discretionary 0.68%                        
Texas Roadhouse, Inc. 4,587,200   4,587,200     59,450   3,853   253,489 
Signet Jewelers Ltd. 2,324,100 1,175,900  3,500,000     (48,333)  4,030   175,980 
                       429,469 
                         
Industrials 0.27%                        
Generac Holdings Inc.1 3,894,070   3,894,070     21,184      173,208 
ITT Inc.4 5,307,000  5,307,000   20,978   9,675   2,038    
Nordson Corp.4 3,420,000  3,420,000   149,659   (151,979)  551    
                       173,208 
                         
Energy 0.08%                        
Denbury Resources Inc.1 22,428,635   22,428,635     (11,663)     49,119 
Carrizo Oil & Gas, Inc.1,4 3,578,240  2,190,640 1,387,600  (16,232)  (26,214)      
                       49,119 
                         
Consumer staples 0.67%                        
Herbalife Ltd.1 4,895,327 40,958 287,476 4,648,809  2,268   168,590      428,155 
                         
Materials 0.38%                        
Valvoline Inc.  10,638,000  10,638,000     (4,862)  1,316   243,717 
Total 4.82%         $(225,364) $377,866  $13,055  $3,064,317 

 

8AMCAP Fund
 
1Security did not produce income during the last 12 months.
2Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Other securities,” was $2,883,894,000, which represented 4.54% of the net assets of the fund. This amount includes $2,621,621,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
3Represents an affiliated company as defined under the Investment Company Act of 1940.
4Unaffiliated issuer at 2/28/2018.

 

Key to abbreviation

ADR = American Depositary Receipts

 

See Notes to Financial Statements

 

AMCAP Fund9
 

Financial statements

 

 

Statement of assets and liabilities
at February 28, 2018
(dollars in thousands)
         
Assets:        
Investment securities, at value:        
Unaffiliated issuers (cost: $39,554,414) $60,304,840     
Affiliated issuers (cost: $2,548,982)  3,064,317  $63,369,157 
Cash      300,065 
Receivables for:        
Sales of investments  235,657     
Sales of fund’s shares  56,449     
Dividends and interest  55,593     
Other  2,609   350,308 
       64,019,530 
Liabilities:        
Payables for:        
Purchases of investments  366,600     
Repurchases of fund’s shares  81,351     
Investment advisory services  14,489     
Services provided by related parties  16,517     
Trustees’ deferred compensation  3,540     
Other  6,806   489,303 
Net assets at February 28, 2018     $63,530,227 
         
Net assets consist of:        
Capital paid in on shares of beneficial interest     $40,632,414 
Distributions in excess of net investment income      (3,540)
Undistributed net realized gain      1,640,591 
Net unrealized appreciation      21,260,762 
Net assets at February 28, 2018     $63,530,227 

 

(dollars and shares in thousands, except per-share amounts)

 

Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (1,927,848 total shares outstanding)

 

     Shares  Net asset value 
  Net assets  outstanding  per share 
Class A $30,196,222   913,235  $33.07 
Class C  1,526,061   52,215   29.23 
Class T  11   *  33.07 
Class F-1  2,162,078   65,964   32.78 
Class F-2  6,107,073   183,582   33.27 
Class F-3  3,120,726   94,310   33.09 
Class 529-A  1,863,094   56,957   32.71 
Class 529-C  276,819   9,419   29.39 
Class 529-E  83,366   2,614   31.89 
Class 529-T  12   *  33.06 
Class 529-F-1  115,532   3,505   32.96 
Class R-1  108,270   3,606   30.03 
Class R-2  635,764   21,181   30.02 
Class R-2E  46,412   1,418   32.73 
Class R-3  1,321,377   41,222   32.06 
Class R-4  1,409,062   42,997   32.77 
Class R-5E  6,552   198   33.11 
Class R-5  1,353,286   40,410   33.49 
Class R-6  13,198,510   395,015   33.41 

 

*Amount less than one thousand.

 

See Notes to Financial Statements

 

10AMCAP Fund
 

 

 

 

Statement of operations
for the year ended February 28, 2018
(dollars in thousands)
         
Investment income:        
Income:        
Dividends (net of non-U.S. taxes of $6,866; also includes $13,055 from affiliates) $631,505     
Interest  91,676  $723,181 
Fees and expenses*:        
Investment advisory services  173,779     
Distribution services  110,522     
Transfer agent services  50,235     
Administrative services  17,608     
Reports to shareholders  1,853     
Registration statement and prospectus  2,078     
Trustees’ compensation  1,126     
Auditing and legal  167     
Custodian  813     
Other  1,578     
Total fees and expenses before waivers/reimbursements  359,759     
Less waivers/reimbursements of fees and expenses:        
Investment advisory services waiver  92     
Transfer agent services reimbursement      
Total fees and expenses after waivers/reimbursements      359,667 
Net investment income      363,514 
         
Net realized gain and unrealized appreciation:        
Net realized gain (loss) on:        
Investments (net of non-U.S. taxes of $1,492):        
Unaffiliated issuers  4,062,544     
Affiliated issuers  (225,364)    
Forward currency contracts  (755)    
Currency transactions  (922)  3,835,503 
Net unrealized appreciation (depreciation) on:        
Investments (net of non-U.S. taxes of $5,484):        
Unaffiliated issuers  6,685,349     
Affiliated issuers  377,866     
Forward currency contracts  (471)    
Currency translations  (41)  7,062,703 
Net realized gain and unrealized appreciation      10,898,206 
         
Net increase in net assets resulting from operations     $11,261,720 

 

*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 Fund11
 

Statements of changes in net assets

(dollars in thousands)

 

  Year ended February 28 
  2018  2017 
Operations:        
Net investment income $363,514  $301,135 
Net realized gain  3,835,503   1,553,679 
Net unrealized appreciation  7,062,703   7,976,572 
Net increase in net assets resulting from operations  11,261,720   9,831,386 
         
Dividends and distributions paid to shareholders:        
Dividends from net investment income  (274,012)  (242,147)
Distributions from net realized gain on investments  (2,926,278)  (1,661,606)
Total dividends and distributions paid to shareholders  (3,200,290)  (1,903,753)
         
Net capital share transactions  1,933,198   1,618,302 
         
Total increase in net assets  9,994,628   9,545,935 
         
Net assets:        
Beginning of year  53,535,599   43,989,664 
End of year (including distributions in excess of net investment income: $(3,540) and $(2,821), respectively) $63,530,227  $53,535,599 

 

See Notes to Financial Statements

 

12AMCAP 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, C, T, F-1, F-2 and F-3), five 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T 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 classInitial sales chargeContingent deferred sales
charge upon redemption
Conversion feature
Classes A and 529-AUp to 5.75%None (except 1% for certain redemptions within one year of purchase without an initial sales charge1)None
Class CNone1% for redemptions within one year of purchaseClass C converts to Class F-1 after 10 years
Class 529-CNone1% for redemptions within one year of purchaseClass 529-C converts to Class 529-A after 10 years2
Class 529-ENoneNoneNone
Classes T and 529-T3Up to 2.50%NoneNone
Classes F-1, F-2, F-3 and 529-F-1NoneNoneNone
Classes R-1, R-2, R-2E, R-3, R-4,
R-5E, R-5 and R-6
NoneNoneNone

 

118 months for shares purchased on or after August 14, 2017.
2Effective December 1, 2017.
3Class T and 529-T shares are not available for purchase.

 

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 may include 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.

 

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.

 

AMCAP Fund13
 

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 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

 

14AMCAP Fund
 

valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

 

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

 

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

 

Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of February 28, 2018 (dollars in thousands):

 

  Investment securities
   Level 1   Level 2*   Level 3   Total 
Assets:                
Common stocks:                
Information technology $12,738,520  $1,834,772  $  $14,573,292 
Health care  12,560,100         12,560,100 
Consumer discretionary  9,205,579   555,910      9,761,489 
Industrials  6,477,155   70,656      6,547,811 
Financials  4,299,355   211,480      4,510,835 
Energy  3,740,594   38,655      3,779,249 
Consumer staples  1,539,469   172,421      1,711,890 
Materials  1,042,987         1,042,987 
Other  434,656         434,656 
Miscellaneous  631,988         631,988 
Bonds, notes & other debt instruments     49,809      49,809 
Short-term securities     7,765,051      7,765,051 
Total $52,670,403  $10,698,754  $  $63,369,157 

 

*Securities with a value of $2,125,100,000, which represented 3.35% of the net assets of the fund, transferred from Level 1 to Level 2 since the prior fiscal year-end, primarily due to significant market movements following the close of local trading.

 

4. Risk factors

 

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

 

Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline —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.

 

AMCAP Fund15
 

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. As of February 28, 2018, the fund did not have any open forward currency contracts. The average month-end notional amount of open forward currency contracts while held was $47,341,000.

 

The following table presents the financial statement impacts resulting from the fund’s use of forward currency contracts as of, or for the year ended, February 28, 2018 (dollars in thousands):

 

    Net realized loss Net unrealized depreciation
Contracts Risk type Location on statement of
operations
 Value Location on statement of
operations
 Value
Forward currency Currency Net realized loss on forward currency contracts $(755) Net unrealized depreciation on forward currency contracts $(471)

 

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.

 

16AMCAP Fund
 

As of and during the period ended February 28, 2018, 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 significant interest or penalties.

 

The fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.

 

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, if any, may be subject to non-U.S. taxes. If applicable, the 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; short-term capital gains and losses; deferred expenses and non-U.S. taxes on capital gains. 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, 2018, the fund reclassified $2,275,000 from distributions in excess of net investment income to undistributed net realized gain, $87,946,000 from distributions in excess of net investment income to capital paid in on shares of beneficial interest and $71,777,000 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, 2018, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):

 

Undistributed long-term capital gains $1,640,591 
Gross unrealized appreciation on investments  22,777,884 
Gross unrealized depreciation on investments  (1,512,123)
Net unrealized appreciation on investments  21,265,761 
Cost of investments  42,103,396 

 

AMCAP Fund17
 

Distributions paid were characterized for tax purposes as follows (dollars in thousands):

 

  Year ended February 28, 2018 Year ended February 28, 2017 
Share class Ordinary
income
 Long-term
capital gains
 Total
dividends and
distributions
paid
 Ordinary
income
 Long-term
capital gains
 Total
dividends and
distributions
paid
 
Class A $115,384  $1,411,432  $1,526,816  $113,184  $877,055  $990,239 
Class B1              1,051   1,051 
Class C     82,421   82,421      55,024   55,024 
Class T2  3  1   1             
Class F-1  7,069   108,176   115,245   7,982   76,902   84,884 
Class F-2  31,706   279,311   311,017   35,661   163,745   199,406 
Class F-34  18,246   121,562   139,808          
Class 529-A  6,563   85,688   92,251   5,260   47,855   53,115 
Class 529-B1              194   194 
Class 529-C     16,234   16,234      12,174   12,174 
Class 529-E  149   4,006   4,155   110   2,368   2,478 
Class 529-T2  3  1   1             
Class 529-F-1  576   5,253   5,829   502   2,878   3,380 
Class R-1     5,722   5,722      3,867   3,867 
Class R-2     33,185   33,185      20,420   20,420 
Class R-2E  53   1,894   1,947   50   345   395 
Class R-3  1,854   65,049   66,903   1,479   40,807   42,286 
Class R-4  5,075   67,219   72,294   4,896   39,376   44,272 
Class R-5E  3   31   34   3  3  3
Class R-5  8,073   66,235   74,308   8,838   43,781   52,619 
Class R-6  79,261   572,858   652,119   64,185   273,764   337,949 
Total $274,012  $2,926,278  $3,200,290  $242,147  $1,661,606  $1,903,753 

 

1Class B and 529-B shares were fully liquidated on May 5, 2017.
2Class T and 529-T shares began investment operations on April 7, 2017.
3Amount less than one thousand.
4Class F-3 shares began investment operations on January 27, 2017.

 

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. During the year ended February 28, 2018, CRMC voluntarily reduced the investment advisory services fee to a proposed annualized rate of 0.280% on such assets in excess of $55 billion. For the year ended February 28, 2018, total investment advisory services fees waived by CRMC were $92,000. As a result, the fee of $173,779,000 shown on the statement of operations, which was equivalent to an annualized rate of 0.301% of average daily net assets, was reduced to $173,687,000, which was equivalent to an annualized rate of 0.300% 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

 

18AMCAP Fund
 

certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

 

Share class Currently approved limits Plan limits
Class A  0.25%  0.25%
Class 529-A  0.25   0.50 
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 T, F-1, 529-T, 529-F-1 and R-4  0.25   0.50 

 

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 limits are not exceeded. As of February 28, 2018, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.

 

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, T, F, 529 and R shares. Administrative services are provided by CRMC to help assist third parties providing non-distribution services to fund shareholders. These services include providing in depth information on the fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement between the fund and the investment adviser provides the fund the ability to charge an administrative services fee of 0.05% of average daily net assets for all share classes. Currently Class A shares pay an annual fee of 0.01% of average daily net assets (which could be increased as noted above) and Class C, T, 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. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $20 billion of the net assets invested in the Class 529 shares of the American Funds and decreasing to 0.03% on such assets in excess of $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 Fund19
 

For the year ended February 28, 2018, class-specific expenses under the agreements were as follows (dollars in thousands):

 

Share class  Distribution
services
 Transfer agent
services
 Administrative
services
 529 plan
services
 
Class A  $67,444  $30,784  $2,826  Not applicable 
Class B1  5  1  Not applicable  Not applicable 
Class C  14,859  1,631  744  Not applicable 
Class T2    3 3 Not applicable 
Class F-1  5,480  2,788  1,097  Not applicable 
Class F-2  Not applicable  6,572  2,926  Not applicable 
Class F-3  Not applicable  114  944  Not applicable 
Class 529-A  3,581  1,556  822  $1,106 
Class 529-B1  3 3 3 3
Class 529-C  3,315  346  168  227 
Class 529-E  380  38  39  52 
Class 529-T2    3 3 3
Class 529-F-1    98  51  69 
Class R-1  1,052  108  53  Not applicable 
Class R-2  4,510  2,126  302  Not applicable 
Class R-2E  213  71  18  Not applicable 
Class R-3  6,342  1,927  634  Not applicable 
Class R-4  3,341  1,333  668  Not applicable 
Class R-5E  Not applicable  2  1  Not applicable 
Class R-5  Not applicable  686  671  Not applicable 
Class R-6  Not applicable  54  5,644  Not applicable 
Total class-specific expenses  $110,522  $50,235  $17,608  $1,454 

 

1Class B and 529-B shares were fully liquidated on May 5, 2017.
2Class T and 529-T shares began investment operations on April 7, 2017.
3Amount 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 $1,126,000 in the fund’s statement of operations reflects $437,000 in current fees (either paid in cash or deferred) and a net increase of $689,000 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.

 

Interfund lending — Pursuant to an exemptive order issued by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or borrow cash through the interfund lending program at any time during the year ended February 28, 2018.

 

20AMCAP Fund
 

8. Capital share transactions

 

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

 

  Sales1  Reinvestments of
dividends and distributions
  Repurchases1  Net (decrease)
increase
 
Share class Amount  Shares  Amount  Shares  Amount  Shares  Amount  Shares 
                         
Year ended February 28, 2018                   
Class A $2,046,204   67,073  $1,500,991   48,631  $(4,546,040)  (148,520) $(998,845)  (32,816)
Class B2  28   1         (8,668)  (332)  (8,640)  (331)
Class C  180,339   6,662   81,700   2,993   (428,325)  (15,807)  (166,286)  (6,152)
Class T3  10   4              10   4
Class F-1  327,237   10,864   112,791   3,692   (881,915)  (29,164)  (441,887)  (14,608)
Class F-2  2,350,802   77,094   302,440   9,734   (3,609,896)  (118,964)  (956,654)  (32,136)
Class F-3  3,092,551   102,454   138,611   4,461   (399,688)  (12,711)  2,831,474   94,204 
Class 529-A  252,362   8,119   92,205   3,017   (235,902)  (7,725)  108,665   3,411 
Class 529-B2  4  4        (1,267)  (49)  (1,267)  (49)
Class 529-C  31,767   1,161   16,224   593   (159,990)  (5,654)  (111,999)  (3,900)
Class 529-E  8,385   284   4,157   139   (12,260)  (413)  282   10 
Class 529-T3  10   4  1   4        11   4
Class 529-F-1  22,092   716   5,825   189   (20,467)  (665)  7,450   240 
Class R-1  12,865   460   5,715   204   (27,295)  (972)  (8,715)  (308)
Class R-2  162,497   5,827   33,138   1,181   (227,542)  (8,170)  (31,907)  (1,162)
Class R-2E  25,559   851   1,948   64   (8,320)  (268)  19,187   647 
Class R-3  307,202   10,376   66,862   2,235   (457,747)  (15,377)  (83,683)  (2,766)
Class R-4  372,560   12,396   72,256   2,363   (460,434)  (15,085)  (15,618)  (326)
Class R-5E  6,851   214   34   1   (551)  (17)  6,334   198 
Class R-5  208,096   6,754   74,253   2,377   (453,174)  (14,635)  (170,825)  (5,504)
Class R-6  2,923,945   95,623   651,794   20,851   (1,619,628)  (52,572)  1,956,111   63,902 
Total net increase (decrease) $12,331,362   406,929  $3,160,945   102,725  $(13,559,109)  (447,100) $1,933,198   62,554 
                                 
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-35  3,034   106         (1)  4  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 

 

1Includes exchanges between share classes of the fund.
2Class B and 529-B shares were fully liquidated on May 5, 2017.
3Class T and 529-T shares began investment operations on April 7, 2017.
4Amount less than one thousand.
5Class F-3 shares began investment operations on January 27, 2017.

 

AMCAP Fund21
 

9. Investment transactions

 

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $13,327,224,000 and $17,524,152,000, respectively, during the year ended February 28, 2018.

 

22AMCAP Fund
 

Financial highlights

 

      Income (loss) from
investment operations1
 Dividends and distributions                        
Period ended Net asset
value,
beginning
of period
 Net
investment
income
(loss)
 Net gains
(losses) on
securities
(both
realized and
unrealized)
 Total from
investment
operations
 Dividends
(from net
investment
income)
 Distributions
(from capital
gains)
 Total
dividends
and
distributions
 Net asset
value,
end
of period
 Total
return2,3
 Net assets,
end of
period
(in millions)
 Ratio of
expenses to
average net
assets before
waivers/
reimbursements
 Ratio of
expenses to
average net
assets after
waivers/
reimbursements3
 Ratio of
net income
(loss)
to average
net assets3
                           
Class A:                                                    
2/28/2018 $28.82  $  .18  $  5.76  $  5.94  $(.13) $(1.56) $(1.69) $33.07   21.10% $30,196   .67%  .67%  .58%
2/28/2017  24.47   .16   5.23   5.39   (.12)  (.92)  (1.04)  28.82   22.38   27,269   .68   .68   .59 
2/29/2016  29.03   .10   (2.36)  (2.26)     (2.30)  (2.30)  24.47   (8.34)  23,786   .67   .67   .38 
2/28/2015  28.53   .08   3.04   3.12   (.01)  (2.61)  (2.62)  29.03   11.33   25,740   .68   .68   .27 
2/28/2014  23.06   .09   7.61   7.70   (.07)  (2.16)  (2.23)  28.53   34.38   22,567   .70   .70   .35 
Class C:                                                    
2/28/2018  25.74   (.06)  5.11   5.05      (1.56)  (1.56)  29.23   20.13   1,526   1.47   1.47   (.22)
2/28/2017  22.02   (.05)  4.69   4.64      (.92)  (.92)  25.74   21.42   1,503   1.49   1.49   (.22)
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)
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)
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)
Class T:                                                    
2/28/20184,5  28.79   .23   5.80   6.03   (.19)  (1.56)  (1.75)  33.07   21.466,7  8  .457,9  .457,9  .817,9
Class F-1:                                                    
2/28/2018  28.58   .16   5.71   5.87   (.11)  (1.56)  (1.67)  32.78   21.02   2,162   .74   .74   .52 
2/28/2017  24.27   .14   5.19   5.33   (.10)  (.92)  (1.02)  28.58   22.31   2,303   .75   .75   .53 
2/29/2016  28.83   .09   (2.35)  (2.26)     (2.30)  (2.30)  24.27   (8.40)  2,448   .73   .73   .31 
2/28/2015  28.36   .06   3.02   3.08      (2.61)  (2.61)  28.83   11.27   2,723   .74   .74   .22 
2/28/2014  22.95   .08   7.57   7.65   (.08)  (2.16)  (2.24)  28.36   34.36   3,036   .74   .74   .31 
Class F-2:                                                    
2/28/2018  28.98   .24   5.79   6.03   (.18)  (1.56)  (1.74)  33.27   21.31   6,107   .47   .47   .79 
2/28/2017  24.60   .22   5.26   5.48   (.18)  (.92)  (1.10)  28.98   22.66   6,251   .48   .48   .79 
2/29/2016  29.11   .16   (2.37)  (2.21)     (2.30)  (2.30)  24.60   (8.14)  3,593   .47   .47   .57 
2/28/2015  28.61   .14   3.04   3.18   (.07)  (2.61)  (2.68)  29.11   11.53   3,609   .47   .47   .49 
2/28/2014  23.11   .15   7.63   7.78   (.12)  (2.16)  (2.28)  28.61   34.71   1,983   .49   .49   .56 
Class F-3:                                                    
2/28/2018  28.83   .27   5.76   6.03   (.21)  (1.56)  (1.77)  33.09   21.44   3,121   .37   .37   .85 
2/28/20174,10  28.36   .02   .45   .47            28.83   1.666  3   .036  .036  .096
Class 529-A:                                               
2/28/2018  28.54   .15   5.70   5.85   (.12)  (1.56)  (1.68)  32.71   20.99   1,863   .74   .74   .51 
2/28/2017  24.24   .13   5.19   5.32   (.10)  (.92)  (1.02)  28.54   22.31   1,528   .77   .77   .50 
2/29/2016  28.81   .08   (2.35)  (2.27)     (2.30)  (2.30)  24.24   (8.44)  1,264   .77   .77   .28 
2/28/2015  28.35   .05   3.02   3.07      (2.61)  (2.61)  28.81   11.24   1,370   .77   .77   .18 
2/28/2014  22.93   .07   7.56   7.63   (.05)  (2.16)  (2.21)  28.35   34.28   1,193   .79   .79   .25 

 

See end of table for footnotes.

 

AMCAP Fund23
 

Financial highlights(continued)

 

    Income (loss) from
investment operations1
 Dividends and distributions            
Period ended Net asset
value,
beginning
of period
 Net
investment
income
(loss)
 Net gains
(losses) on
securities
(both
realized and
unrealized)
 Total from
investment
operations
 Dividends
(from net
investment
income)
 Distributions
(from capital
gains)
 Total
dividends
and
distributions
 Net asset
value,
end
of period
 Total
return2,3
 Net assets,
end of
period
(in millions) 
 Ratio of
expenses to
average net
assets before
waivers/
reimbursements
 Ratio of
expenses to
average net
assets after
waivers/
reimbursements3
 Ratio of
net income
(loss)
to average
net assets3
                           
Class 529-C:                                                    
2/28/2018 $25.89  $(.07) $5.13  $5.06  $  $(1.56) $(1.56) $29.39   20.05% $277   1.52%  1.52%  (.26)%
2/28/2017  22.15   (.07)  4.73   4.66      (.92)  (.92)  25.89   21.39   345   1.54   1.54   (.27)
2/29/2016  26.73   (.13)  (2.15)  (2.28)     (2.30)  (2.30)  22.15   (9.16)  301   1.55   1.55   (.50)
2/28/2015  26.68   (.16)  2.82   2.66      (2.61)  (2.61)  26.73   10.37   334   1.56   1.56   (.60)
2/28/2014  21.80   (.13)  7.17   7.04      (2.16)  (2.16)  26.68   33.25   298   1.58   1.58   (.53)
Class 529-E:                                                    
2/28/2018  27.87   .08   5.56   5.64   (.06)  (1.56)  (1.62)  31.89   20.73   83   .97   .97   .28 
2/28/2017  23.70   .07   5.06   5.13   (.04)  (.92)  (.96)  27.87   22.01   73   .99   .99   .28 
2/29/2016  28.28   .01   (2.29)  (2.28)     (2.30)  (2.30)  23.70   (8.64)  62   1.00   1.00   .04 
2/28/2015  27.94   (.02)  2.97   2.95      (2.61)  (2.61)  28.28   10.97   69   1.01   1.01   (.06)
2/28/2014  22.63   11  7.47   7.47   11  (2.16)  (2.16)  27.94   33.96   62   1.04   1.04   .01 
Class 529-T:                                                    
2/28/20184,5  28.79   .21   5.80   6.01   (.18)  (1.56)  (1.74)  33.06   21.366,7  8  .527,9  .527,9  .747,9
Class 529-F-1:                                               
2/28/2018  28.74   .22   5.73   5.95   (.17)  (1.56)  (1.73)  32.96   21.25   116   .52   .52   .73 
2/28/2017  24.40   .19   5.23   5.42   (.16)  (.92)  (1.08)  28.74   22.54   94   .55   .55   .72 
2/29/2016  28.92   .13   (2.35)  (2.22)     (2.30)  (2.30)  24.40   (8.23)  76   .56   .56   .49 
2/28/2015  28.43   .11   3.03   3.14   (.04)  (2.61)  (2.65)  28.92   11.46   83   .56   .56   .40 
2/28/2014  22.98   .12   7.59   7.71   (.10)  (2.16)  (2.26)  28.43   34.59   72   .58   .58   .47 
Class R-1:                                                    
2/28/2018  26.41   (.06)  5.24   5.18      (1.56)  (1.56)  30.03   20.11   108   1.46   1.46   (.21)
2/28/2017  22.56   (.05)  4.82   4.77      (.92)  (.92)  26.41   21.49   103   1.47   1.47   (.20)
2/29/2016  27.16   (.11)  (2.19)  (2.30)     (2.30)  (2.30)  22.56   (9.08)  102   1.47   1.47   (.42)
2/28/2015  27.05   (.14)  2.86   2.72      (2.61)  (2.61)  27.16   10.46   111   1.46   1.46   (.50)
2/28/2014  22.05   (.11)  7.27   7.16      (2.16)  (2.16)  27.05   33.42   90   1.47   1.47   (.42)
Class R-2:                                                    
2/28/2018  26.40   (.06)  5.24   5.18      (1.56)  (1.56)  30.02   20.12   636   1.46   1.46   (.21)
2/28/2017  22.56   (.05)  4.81   4.76      (.92)  (.92)  26.40   21.45   590   1.46   1.46   (.19)
2/29/2016  27.14   (.10)  (2.18)  (2.28)     (2.30)  (2.30)  22.56   (9.02)  517   1.44   1.44   (.39)
2/28/2015  27.02   (.13)  2.86   2.73      (2.61)  (2.61)  27.14   10.47   595   1.43   1.43   (.48)
2/28/2014  22.03   (.10)  7.25   7.15      (2.16)  (2.16)  27.02   33.45   557   1.44   1.44   (.39)
Class R-2E:                                                    
2/28/2018  28.61   .03   5.69   5.72   (.04)  (1.56)  (1.60)  32.73   20.47   46   1.16   1.16   .08 
2/28/2017  24.38   .03   5.21   5.24   (.09)  (.92)  (1.01)  28.61   21.86   22   1.16   1.16   .11 
2/29/2016  29.04   .06   (2.42)  (2.36)     (2.30)  (2.30)  24.38   (8.69)  3   1.04   1.04   .24 
2/28/20154,12  29.38   .04   1.32   1.36      (1.70)  (1.70)  29.04   4.776,7  8  .677,9  .677,9  .297,9

 

24AMCAP Fund
 
    Income (loss) from
investment operations1
 Dividends and distributions            
Period ended Net asset
value,
beginning
of period
 Net
investment
income
(loss)
 Net gains
(losses) on
securities
(both
realized and
unrealized)
 Total from
investment
operations
 Dividends
(from net
investment
income)
 Distributions
(from capital
gains)
 Total
dividends
and
distributions
 Net asset
value,
end
of period
 Total
return2,3
 Net assets,
end of
period
(in millions)
 Ratio of
expenses to
average net
assets before
waivers/
reimbursements
 Ratio of
expenses to
average net
assets after
waivers/
reimbursements3
 Ratio of
net income
(loss)
to average
net assets3
                                                     
Class R-3:                                                    
2/28/2018 $28.01  $.07  $5.59  $ 5.66  $(.05) $(1.56) $(1.61) $32.06   20.67% $1,321   1.01%  1.01%  .24%
2/28/2017  23.81   .07   5.08   5.15   (.03)  (.92)  (.95)  28.01   21.99   1,232   1.02   1.02   .25 
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 
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)
2/28/2014  22.71   11  7.50   7.50   11  (2.16)  (2.16)  28.05   33.97   1,018   1.03   1.03   .02 
Class R-4:                                                    
2/28/2018  28.58   .16   5.71   5.87   (.12)  (1.56)  (1.68)  32.77   21.03   1,409   .71   .71   .54 
2/28/2017  24.28   .15   5.18   5.33   (.11)  (.92)  (1.03)  28.58   22.33   1,238   .72   .72   .55 
2/29/2016  28.83   .09   (2.34)  (2.25)     (2.30)  (2.30)  24.28   (8.36)  1,049   .71   .71   .33 
2/28/2015  28.36   .07   3.02   3.09   (.01)  (2.61)  (2.62)  28.83   11.31   1,140   .71   .71   .24 
2/28/2014  22.94   .08   7.57   7.65   (.07)  (2.16)  (2.23)  28.36   34.37   919   .72   .72   .33 
Class R-5E:                                                    
2/28/2018  28.85   .25   5.74   5.99   (.17)  (1.56)  (1.73)  33.11   21.31   7   .47   .47   .78 
2/28/2017  24.48   .20   5.24   5.44   (.15)  (.92)  (1.07)  28.85   22.54   8  .60   .51   .76 
2/29/20164,13  27.89   .04   (2.11)  (2.07)     (1.34)  (1.34)  24.48   (7.62)6  8  .156  .156  .176
Class R-5:                                                    
2/28/2018  29.16   .26   5.83   6.09   (.20)  (1.56)  (1.76)  33.49   21.38   1,353   .41   .41   .84 
2/28/2017  24.74   .23   5.30   5.53   (.19)  (.92)  (1.11)  29.16   22.74   1,339   .41   .41   .86 
2/29/2016  29.25   .18   (2.39)  (2.21)     (2.30)  (2.30)  24.74   (8.10)  1,214   .42   .42   .63 
2/28/2015  28.72   .16   3.05   3.21   (.07)  (2.61)  (2.68)  29.25   11.62   1,400   .41   .41   .54 
2/28/2014  23.19   .16   7.66   7.82   (.13)  (2.16)  (2.29)  28.72   34.79   1,229   .42   .42   .63 
Class R-6:                                                    
2/28/2018  29.09   .28   5.81   6.09   (.21)  (1.56)  (1.77)  33.41   21.45   13,199   .36   .36   .89 
2/28/2017  24.69   .25   5.28   5.53   (.21)  (.92)  (1.13)  29.09   22.76   9,633   .36   .36   .90 
2/29/2016  29.18   .19   (2.38)  (2.19)     (2.30)  (2.30)  24.69   (8.05)  7,033   .37   .37   .68 
2/28/2015  28.66   .17   3.05   3.22   (.09)  (2.61)  (2.70)  29.18   11.67   6,394   .37   .37   .59 
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 February 28 or 29
 20182017201620152014 
Portfolio turnover rate for all share classes27%25%31%33%29% 

 

1Based on average shares outstanding.
2Total returns exclude any applicable sales charges, including contingent deferred sales charges.
3This column reflects the impact, if any, of certain waivers/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.
4Based on operations for a period that is less than a full year.
5Class T and 529-T shares began investment operations on April 7, 2017.
6Not annualized.
7All 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.
8Amount less than $1 million.
 9Annualized.
10Class F-3 shares began investment operations on January 27, 2017.
11Amount less than $.01.
12Class R-2E shares began investment operations on August 29, 2014.
13Class R-5E shares began investment operations on November 20, 2015.

 

See Notes to Financial Statements

 

AMCAP Fund25
 

Report of Independent Registered Public Accounting Firm

 

To the Shareholders and Board of Trustees of AMCAP Fund:

 

Opinion on the Financial Statements and Financial Highlights

 

We have audited the accompanying statement of assets and liabilities of AMCAP Fund (the “Fund”), including the summary investment portfolio, as of February 28, 2018, 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, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of February 28, 2018, 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.

 

Basis for Opinion

 

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of February 28, 2018, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

 

Deloitte & Touche LLP

 

Costa Mesa, California
April 11, 2018

 

We have served as the auditor of one or more American Funds investment companies since 1956.

 

26AMCAP Fund
 
Expense exampleunaudited

 

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, 2017, through February 28, 2018).

 

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.

 

AMCAP Fund27
 
  Beginning
account value
9/1/2017
  Ending
account value
2/28/2018
  Expenses paid
during period*
  Annualized
expense ratio
 
Class A – actual return $1,000.00  $1,149.18  $3.52   .66%
Class A – assumed 5% return  1,000.00   1,021.52   3.31   .66 
Class C – actual return  1,000.00   1,144.41   7.76   1.46 
Class C – assumed 5% return  1,000.00   1,017.55   7.30   1.46 
Class T – actual return  1,000.00   1,150.27   2.40   .45 
Class T – assumed 5% return  1,000.00   1,022.56   2.26   .45 
Class F-1 – actual return  1,000.00   1,148.64   3.89   .73 
Class F-1 – assumed 5% return  1,000.00   1,021.17   3.66   .73 
Class F-2 – actual return  1,000.00   1,149.94   2.51   .47 
Class F-2 – assumed 5% return  1,000.00   1,022.46   2.36   .47 
Class F-3 – actual return  1,000.00   1,150.57   1.92   .36 
Class F-3 – assumed 5% return  1,000.00   1,023.01   1.81   .36 
Class 529-A – actual return  1,000.00   1,148.35   3.89   .73 
Class 529-A – assumed 5% return  1,000.00   1,021.17   3.66   .73 
Class 529-C – actual return  1,000.00   1,143.95   8.03   1.51 
Class 529-C – assumed 5% return  1,000.00   1,017.31   7.55   1.51 
Class 529-E – actual return  1,000.00   1,147.18   5.16   .97 
Class 529-E – assumed 5% return  1,000.00   1,019.98   4.86   .97 
Class 529-T – actual return  1,000.00   1,149.36   2.77   .52 
Class 529-T – assumed 5% return  1,000.00   1,022.22   2.61   .52 
Class 529-F-1 – actual return  1,000.00   1,149.64   2.77   .52 
Class 529-F-1 – assumed 5% return  1,000.00   1,022.22   2.61   .52 
Class R-1 – actual return  1,000.00   1,144.38   7.76   1.46 
Class R-1 – assumed 5% return  1,000.00   1,017.55   7.30   1.46 
Class R-2 – actual return  1,000.00   1,144.39   7.76   1.46 
Class R-2 – assumed 5% return  1,000.00   1,017.55   7.30   1.46 
Class R-2E – actual return  1,000.00   1,145.78   6.22   1.17 
Class R-2E – assumed 5% return  1,000.00   1,018.99   5.86   1.17 
Class R-3 – actual return  1,000.00   1,146.98   5.38   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   1,148.42   3.78   .71 
Class R-4 – assumed 5% return  1,000.00   1,021.27   3.56   .71 
Class R-5E – actual return  1,000.00   1,149.68   2.51   .47 
Class R-5E – assumed 5% return  1,000.00   1,022.46   2.36   .47 
Class R-5 – actual return  1,000.00   1,150.25   2.19   .41 
Class R-5 – assumed 5% return  1,000.00   1,022.76   2.06   .41 
Class R-6 – actual return  1,000.00   1,150.37   1.92   .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).

 

Tax informationunaudited

 

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, 2018:

 

Long-term capital gains  $2,998,054,000
Qualified dividend income  100%
Corporate dividends received deduction  100%
U.S. government income that may be exempt from state taxation  $28,565,000

 

Individual shareholders should refer to their Form 1099 or other tax information, which was mailed in January 2018, to determine thecalendar yearamounts to be included on their 2018 tax returns. Shareholders should consult their tax advisors.

 

28AMCAP Fund
 

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AMCAP Fund29
 

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30AMCAP Fund
 

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AMCAP Fund31
 

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32AMCAP Fund
 

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AMCAP Fund33
 

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 81 Mercury General Corporation
Leonard R. Fuller, 1946 2010 Private investor; former President and CEO, Fuller  Consulting (financial management consulting) 81 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
John C. Mazziotta, MD, PhD, 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 and CEO, The Orvis Company 4 None
Bailey Morris-Eck, 1944 1999 Director and Programming Chair, WYPR Baltimore/Washington (public radio station) 4 None

 

William H. Kling retired from the fund on December 31, 2017. The trustees thank Mr. Kling for his wise counsel, outstanding service and dedication to the fund.

 

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.

 

34AMCAP 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
Jessica Chase Spaly, 1977
Senior Vice President
 2015 Partner — Capital Research Global Investors, Capital Research and Management Company;
Director, The Capital Group Companies, Inc.6
Aidan W. O’Connell, 1968
Vice President
 2015 Partner — Capital Research Global Investors, Capital Research and Management Company
Herbert Y. Poon, 1973
Vice President
 2012 Senior Vice President and Senior Counsel — Fund Business Management Group, Capital Research and Management Company
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
Dori Laskin, 1951
Assistant Treasurer
 2011 Vice President — Investment Operations, 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

 

1The 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.
2Trustees and officers of the fund serve until their resignation, removal or retirement.
3This 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.
4The 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).
5All 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.
6Company affiliated with Capital Research and Management Company.

 

AMCAP Fund35
 

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

 

36AMCAP 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. Fund shares offered through American Funds Distributors, Inc.

 

“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, 2018, 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, 2018, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

 

The 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 © 2018 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 is prohibited without written permission of S&P Dow Jones Indices LLC.

 

American Funds from Capital Group

 

The Capital Advantage®

 

Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM— has resulted in a superior long-term track record.

 

 Aligned with investor success
 We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.1
  
 The Capital System
 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 92% of 10-year periods and 99% of 20-year periods. Fixed income funds have beaten their Lipper indexes in 77% of 10-year periods and 80% of 20-year periods.2Fund management fees have been among the lowest in the industry.3
  
 1Portfolio manager experience as of December 31, 2017.
   
 2Based on Class F-2 share results for rolling periods through December 31, 2017. 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.
   
 3On average, our management fees were in the lowest quintile 71% of the time, based on the 20-year period ended December 31, 2017, 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:
Audit2017                                                               110,000
 2018                                                                 98,000
  
b)  Audit-Related Fees:
 2017                                                                 14,000
 2018                                                                 14,000
  
c)  Tax Fees:
 2017                                                                   8,000
 2018                                                                 14,000
 The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.
  
d)  All Other Fees:
 2017None
 2018None
  
 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:
 2017                                                           1,321,000

 2018                                                               940,000
 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:
 2017 None
 2018 None
 The tax fees consist of consulting services relating to the Registrant’s investments.
   
   
d)  All Other Fees:
 2017 None
 2018 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 $1,485,000 for fiscal year 2017 and $1,024,000 for fiscal year 2018. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.

 

 

ITEM 5 – Audit Committee of Listed Registrants

 

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

 

 

ITEM 6 – Schedule of Investments

 

  

 

AMCAP Fund®

Investment portfolio

February 28, 2018

Common stocks 87.45%
Information technology 22.94%
SharesValue
(000)
Alphabet Inc., Class C1833,879$921,211
Alphabet Inc., Class A1658,210726,611
Microsoft Corp.12,187,0001,142,775
Accenture PLC, Class A6,828,7001,099,489
Tencent Holdings Ltd.214,995,918822,433
Skyworks Solutions, Inc.7,087,375774,296
ASML Holding NV23,580,100699,385
Broadcom Ltd.2,831,848697,937
Texas Instruments Inc.6,262,200678,509
Intel Corp.12,349,000608,682
MasterCard Inc., Class A3,374,957593,182
Trimble Inc.112,300,511466,558
Autodesk, Inc.13,956,199464,735
Arista Networks, Inc.11,451,975391,656
Alibaba Group Holding Ltd. (ADR)12,023,866376,722
Qorvo, Inc.13,982,142321,399
Worldpay, Inc., Class A13,784,000307,564
Zebra Technologies Corp., Class A12,176,722300,692
FleetCor Technologies, Inc.11,495,000298,895
CommScope Holding Co., Inc.17,721,000298,880
QUALCOMM Inc.4,110,000267,150
Samsung Electronics Co., Ltd.2114,701248,594
ServiceNow, Inc.11,485,000239,100
Lam Research Corp.1,130,000216,802
Flex Ltd.110,581,438191,524
Lumentum Holdings Inc.12,966,291180,944
International Business Machines Corp.1,000,000155,830
Visa Inc., Class A1,248,000153,429
Applied Materials, Inc.2,535,000145,991
Finisar Corp.1,36,797,000122,346
Apple Inc.606,849108,092
Adobe Systems Inc.1464,90097,225
Akamai Technologies, Inc.11,390,00093,769
Acacia Communications, Inc.1,32,226,60086,169
Micron Technology, Inc.11,660,00081,025
Kakaku.com, Inc.23,816,30064,360
salesforce.com, inc.1510,00059,288
Amphenol Corp., Class A407,00037,196
Viavi Solutions Inc.12,156,07420,741
IAC/InterActiveCorp181,30012,106
  14,573,292
Health care 19.77%  
AbbVie Inc.17,891,0002,072,315
Amgen Inc.6,662,6521,224,396
UnitedHealth Group Inc.5,179,9061,171,488
Thermo Fisher Scientific Inc.5,448,5001,136,448

 

AMCAP Fund — Page 1 of 5

 


 

 

 

Common stocks
Health care (continued)
SharesValue
(000)
Stryker Corp.6,966,696$1,129,719
Abbott Laboratories16,787,8541,012,811
BioMarin Pharmaceutical Inc.1,310,345,500839,744
Gilead Sciences, Inc.8,698,760684,853
Illumina, Inc.12,196,455500,836
PerkinElmer, Inc.35,922,900452,154
Express Scripts Holding Co.13,931,000296,594
Medtronic PLC3,632,400290,192
Hologic, Inc.16,890,600267,562
Humana Inc.982,000266,927
PRA Health Sciences, Inc.12,931,531246,249
Integra LifeSciences Holdings Corp.1,34,555,967240,236
Boston Scientific Corp.18,018,700218,590
Johnson & Johnson1,500,000194,820
Hypera SA, ordinary nominative13,894,300147,720
Molina Healthcare, Inc.12,033,000146,986
Teleflex Inc.77,89319,460
  12,560,100
Consumer discretionary 15.37%  
Netflix, Inc.19,601,0002,797,539
Amazon.com, Inc.1870,3001,316,285
Twenty-First Century Fox, Inc., Class A26,324,000969,250
Booking Holdings Inc.1454,875925,234
NIKE, Inc., Class B9,778,813655,474
Harley-Davidson, Inc.8,353,938379,102
LKQ Corp.17,002,000276,439
Polaris Industries Inc.2,300,000262,177
Texas Roadhouse, Inc.34,587,200253,489
ITV PLC2110,800,524242,811
Marriott International, Inc., Class A1,700,613240,144
JCDecaux SA24,662,515181,017
Signet Jewelers Ltd.33,500,000175,980
Viacom Inc., Class B5,065,000168,867
Williams-Sonoma, Inc.3,100,000160,456
BorgWarner Inc.3,095,200151,912
Wyndham Worldwide Corp.1,237,913143,326
Comcast Corp., Class A3,657,800132,449
Galaxy Entertainment Group Ltd.215,233,000132,082
Aramark2,950,000123,044
TJX Companies, Inc.900,00074,412
  9,761,489
Industrials 10.31%  
CSX Corp.13,881,359745,707
General Dynamics Corp.3,087,000686,703
Textron Inc.11,325,281677,818
Nielsen Holdings PLC15,387,665502,099
Old Dominion Freight Line, Inc.3,598,000499,834
AMETEK, Inc.6,271,000474,966
Equifax Inc.2,933,728331,511
Boeing Co.900,000325,989
TransDigm Group Inc.1,072,638309,252
Union Pacific Corp.2,016,366262,632
J.B. Hunt Transport Services, Inc.2,167,815257,038

 

AMCAP Fund — Page 2 of 5

 


 

 

 

Common stocks
Industrials (continued)
SharesValue
(000)
Harris Corp.1,600,000$249,840
Middleby Corp.12,052,775246,846
C.H. Robinson Worldwide, Inc.2,500,000233,400
Landstar System, Inc.1,640,000178,432
Generac Holdings Inc.1,33,894,070173,208
Caterpillar Inc.1,056,000163,289
United Technologies Corp.615,00082,865
Capita PLC218,915,63345,597
Fortive Corp.552,45042,428
Cummins Inc.198,00033,298
PayPoint PLC22,274,90025,059
  6,547,811
Financials 7.10%  
PNC Financial Services Group, Inc.3,004,400473,674
Charles Schwab Corp.8,606,000456,290
Wells Fargo & Co.7,413,000432,993
Progressive Corp.7,000,000403,060
JPMorgan Chase & Co.3,218,000371,679
Markel Corp.1280,000311,360
M&T Bank Corp.1,614,152306,431
Zions Bancorporation5,546,000304,864
East West Bancorp, Inc.4,000,000262,200
Willis Towers Watson PLC1,450,000228,955
Berkshire Hathaway Inc., Class B11,000,000207,200
Arch Capital Group Ltd.11,855,000163,685
Kotak Mahindra Bank Ltd.27,330,769121,628
Signature Bank1821,840120,145
Goldman Sachs Group, Inc.350,00092,025
HDFC Bank Ltd.23,089,93689,852
Prudential Financial, Inc.800,60085,120
SVB Financial Group1320,00079,674
  4,510,835
Energy 5.95%  
EOG Resources, Inc.10,144,3001,028,835
Concho Resources Inc.14,704,743709,475
Halliburton Co.15,229,000706,930
Canadian Natural Resources, Ltd.13,427,300415,941
Noble Energy, Inc.8,272,404246,766
Schlumberger Ltd.2,946,000193,375
Exxon Mobil Corp.1,846,000139,816
SM Energy Co.4,416,00080,989
Pioneer Natural Resources Co.409,00069,624
Southwestern Energy Co.115,743,79956,205
Denbury Resources Inc.1,322,428,63549,119
Tullow Oil PLC1,215,493,00038,655
Cimarex Energy Co.250,00024,023
Carrizo Oil & Gas, Inc.11,387,60019,496
  3,779,249
Consumer staples 2.69%  
Costco Wholesale Corp.2,276,300434,546
Herbalife Ltd.1,34,648,809428,155
Walgreens Boots Alliance, Inc.2,950,000203,225

 

AMCAP Fund — Page 3 of 5

 


 

 

 

Common stocks
Consumer staples (continued)
SharesValue
(000)
L’Oreal SA2800,000$172,421
Kroger Co.6,100,000165,432
Philip Morris International Inc.1,150,000119,082
Altria Group, Inc.1,750,000110,163
Constellation Brands, Inc., Class A366,00078,866
  1,711,890
Materials 1.64%  
Celanese Corp., Series A5,699,624574,864
Valvoline Inc.310,638,000243,717
CCL Industries Inc., Class B, nonvoting2,936,000146,136
Ecolab Inc.600,00078,270
  1,042,987
Telecommunication services 0.47%  
Verizon Communications Inc.6,300,000300,762
Real estate 0.21%  
Simon Property Group, Inc. REIT485,00074,452
Alexandria Real Estate Equities, Inc. REIT490,00059,442
  133,894
Miscellaneous 1.00%  
Other common stocks in initial period of acquisition 631,988
Total common stocks(cost: $34,286,720,000) 55,554,297
Bonds, notes & other debt instruments 0.08%
U.S. Treasury bonds & notes 0.08%
U.S. Treasury 0.08%
Principal amount
(000)
 
U.S. Treasury 1.00% 2018$50,00049,809
Total U.S. Treasury bonds & notes 49,809
Total bonds, notes & other debt instruments(cost: $49,929,000) 49,809
Short-term securities 12.22%  
3M Co. 1.55%due 3/19/2018436,10036,071
Apple Inc. 1.56%–1.61%due 4/6/2018–4/17/20184157,300157,001
Army and Air Force Exchange Service 1.45%due 3/5/201842,6002,599
CAFCO, LLC 1.77%–1.80%due 5/10/2018–6/18/2018452,40052,135
Chevron Corp. 1.50%–1.66%due 3/15/2018–4/24/20184152,800152,552
Ciesco LLC 1.70%due 6/4/2018450,00049,727
Coca-Cola Co. 1.43%due 4/24/2018450,00049,871
ExxonMobil Corp. 1.54%due 3/23/201870,00069,932
Fannie Mae 1.30%due 3/5/2018–3/26/201887,70087,650
Federal Farm Credit Banks 1.17%–1.33%due 5/2/2018–7/9/2018158,000157,355
Federal Home Loan Bank 1.13%–1.63%due 3/2/2018–6/20/20182,912,8002,907,263
Freddie Mac 1.08%–1.30%due 3/1/2018–5/4/2018283,200282,894
Hershey Co. 1.55%due 3/6/2018–3/19/2018494,20094,134
IBM Corp. 1.64%due 3/29/2018436,10036,053
IBM Credit LLC 1.64%due 4/10/2018–4/11/20184150,000149,713
Intel Corp. 1.50%–1.51%due 3/5/2018–3/6/201828,60028,594

 

AMCAP Fund — Page 4 of 5

 


 

 

 

Short-term securitiesPrincipal amount
(000)
Value
(000)
John Deere Canada ULC 1.59%due 3/12/20184$32,900$32,884
John Deere Capital Corp. 1.55%due 3/20/2018480,00079,931
John Deere Financial Inc. 1.58%due 3/26/2018450,00049,942
Kimberly-Clark Corp. 1.51%due 3/6/2018455,40055,386
National Rural Utilities Cooperative Finance Corp. 1.57%due 3/9/20189,3009,297
PepsiCo Inc. 1.48%due 3/8/20184100,00099,967
Pfizer Inc. 1.56%due 3/26/2018475,00074,914
Private Export Funding Corp. 1.30%due 3/20/2018420,10020,082
Procter & Gamble Co. 1.61%–1.66%due 5/2/2018–5/4/2018490,75090,478
Qualcomm Inc. 1.52%due 3/13/20184100,00099,945
U.S. Bank, N.A. 1.41%–1.70%due 4/24/2018–6/4/2018150,000149,971
U.S. Treasury Bills 1.05%–1.79%due 3/1/2018–8/23/20182,309,2002,300,304
United Parcel Service Inc. 1.50%–1.53%due 3/2/2018–3/19/20184100,00099,955
Wal-Mart Stores, Inc. 1.50%–1.54%due 3/5/2018–3/12/20184170,100170,037
Walt Disney Co. 1.50%–1.66%due 3/26/2018–5/24/2018468,60068,409
Wells Fargo Bank, N.A. 1.75%due 3/27/201850,00050,005
Total short-term securities(cost: $7,766,747,000) 7,765,051
Total investment securities 99.75%(cost: $42,103,396,000) 63,369,157
Other assets less liabilities 0.25% 161,070
Net assets 100.00% $63,530,227

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.

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

 

1Security did not produce income during the last 12 months.
2Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $2,883,894,000, which represented 4.54% of the net assets of the fund. This amount includes $2,621,621,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
3Represents an affiliated company as defined under the Investment Company Act of 1940.
4Acquired in a transaction exempt from registration under Section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,721,786,000, which represented 2.71% of the net assets of the fund.

    

 

Key to abbreviation
ADR = American Depositary Receipts

Additional financial disclosures are included in the fund’s current shareholder report and should be read in conjunction with this report.

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

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com. Fund shares offered through American Funds Distributors, Inc.

 

 

MFGEFPX-002-0418O-S60660AMCAP Fund — Page 5 of 5

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INVESTMENT PORTFOLIO

 

To the Shareholders and Board of Trustees of AMCAP Fund:

 

Opinion on the Investment Portfolio

 

We have audited the accompanying investment portfolio of AMCAP Fund (the “Fund”), as of February 28, 2018, and the related notes (“investment portfolio”) (included in Item 6 of this Form N-CSR). In our opinion, the investment portfolio presents fairly, in all material respects, the investments in securities of the Fund as of February 28, 2018, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

The investment portfolio is the responsibility of the Fund’s management. Our responsibility is to express an opinion on the investment portfolio based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the investment portfolio is free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting 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.

 

Our audit included performing procedures to assess the risks of material misstatement of the investment portfolio, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the investment portfolio. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the investment portfolio. We believe that our audit provides a reasonable basis for our opinion.

 

 

Costa Mesa, California

 

April 11, 2018

 

We have served as the auditor of one or more American Funds investment companies since 1956.

 

 

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

 

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

 

 

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

 

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

 

 

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

 

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

 

 

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

 

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

 

 

ITEM 11 – Controls and Procedures

 

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

 

 

ITEM 12 – Exhibits

 

(a)(1)The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.
  
(a)(2)The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

 

 
 

 

SIGNATURES

 

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

 

 AMCAP FUND
  
 By/s/ Claudia P. Huntington
 

Claudia P. Huntington, Vice Chairman and

Principal Executive Officer

  
 Date: April 30, 2018

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

 

By/s/ Claudia P. Huntington

Claudia P. Huntington, Vice Chairman and

Principal Executive Officer

 
Date: April 30, 2018

 

 

 

By/s/ Brian D. Bullard

Brian D. Bullard, Treasurer and

Principal Financial Officer

 
Date: April 30, 2018