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Amcap Fund (CAFBX)

Filed: 30 Apr 20, 12:44pm

 

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: (949) 975-5000

 

Date of fiscal year end: February 28 or 29

 

Date of reporting period: February 29, 2020

 

Brian D. Bullard

AMCAP Fund

6455 Irvine Center Drive

Irvine, California 92618

(Name and Address of Agent for Service)

 
 

 

ITEM 1 – Reports to Stockholders

 

 

AMCAP Fund® 
 
Annual report
for the year ended
February 29, 2020

 

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

 

Beginning January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, we intend to no longer mail paper copies of the fund’s shareholder reports, unless specifically requested from American Funds or your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Capital Group website (capitalgroup.com); you will be notified by mail and provided with a website link to access the report each time a report is posted. If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. If you prefer to receive shareholder reports and other communications electronically, you may update your mailing preferences with your financial intermediary, or enroll in e-delivery at capitalgroup.com (for accounts held directly with the fund).

 

You may elect to receive paper copies of all future reports free of charge. If you invest through a financial intermediary, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you may inform American Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at (800) 421-4225. Your election to receive paper reports will apply to all funds held with American Funds or through your financial intermediary.

 

 

AMCAP Fund seeks to provide you with long-term growth of capital.

  

This fund is one of more than 40 offered by Capital Group, home of American Funds, one of the nation’s largest mutual fund families. For nearly 90 years, Capital Group 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. 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 capitalgroup.com.

 

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2020 (the most recent calendar quarter-end):

 

Class A shares  1 year   5 years   10 years 
             
Reflecting 5.75% maximum sales charge  –12.61%   4.82%   9.55% 

 

For other share class results, visit capitalgroup.com and americanfundsretirement.com.

 

The total annual fund operating expense ratio is 0.69% for Class A shares as of the prospectus dated May 1, 2020 (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 capitalgroup.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
  
9Financial statements
  
26Board of trustees and other officers

 

Fellow investors:

 

The U.S. stock market advanced during the fiscal year ended February 29, 2020, even as geopolitical concerns continued to add to market volatility. Heightened political risk also weighed on sentiment and led to increased volatility. After raising interest rates in 2018, the Federal Reserve held steady in 2019 before finally cutting rates last summer for the first time since 2008. Since then, the Fed has made four additional rate cuts, including two emergency cuts totaling 1.5 points in the wake of the coronavirus impact to the market and economy.

 

During the 12-month period, AMCAP Fund had a total return of 7.03% versus a 8.19% 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.

 

Over its 53-year lifetime, AMCAP has had an average annual total return of 11.40%, exceeding the 9.96% return for the S&P 500. For the past 10 years, the fund has had an average annual total return of 12.24%, slightly lagging the 12.65% return for the S&P 500.

 

Investment results analysis

The fund’s investments in the industrials sector contributed to returns, including aerospace companies such as TransDigm Group. Shares of the company, which provides aircraft components for commercial and military aircraft, gained 28.50% amid robust sales in both its commercial and defense divisions. TransDigm Group continues to benefit from strong pricing power in the aerospace industry and the company is especially well-positioned to benefit from the long-term structural changes taking

 

Results at a glance

 

For periods ended February 29, 2020, with all distributions reinvested

 

  Cumulative
total returns
 Average annual total returns
  1 year 5 years 10 years Lifetime
(since 5/1/67)
                 
AMCAP Fund (Class A shares)  7.03%  8.49%  12.24%  11.40%
Standard & Poor’s 500 Composite Index*  8.19   9.23   12.65   9.96 

 

*Source: S&P Dow Jones Indices LLC. The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

 

AMCAP Fund1
 

place in the industry, including rising global air travel and improving fuel efficiency. Elsewhere, we added to shares of Old Dominion Freight Line, which gained 28.54%, as the small-freight trucking company continues to expand its industry market share.

 

Several information technology companies also contributed to returns, led by financial technology group Fidelity National Information Services (FIS). Shares rose 35.45% after payments processor Worldpay agreed to a cash-and-stock takeover by the company, valuing Worldpay at around $43 billion. The payments space continues to experience strong growth, and companies such as FIS that are positioned to take advantage of technological innovations in the sector should benefit from consolidation. Mastercard, another holding in the payments space, rose 29.13% amid market share gains as one of the major firms enabling transactions all over the world.

 

Investments in the health care sector were mixed, with AbbVie gaining 8.17% after the drug company agreed to acquire Botox-maker Allergan in a $63 billion deal and continued to launch new products. But shares of BioMarin Pharmaceutical fell 3.10% amid pipeline uncertainty and increasing scrutiny around drug pricing as we enter the presidential election cycle. Illumina was hampered by short-term execution problems and declined 15.06%, but we believe the company is well-positioned in the growing field of gene sequencing and that it is expanding that field through its own innovation. For example, Illumina has been working with Chinese officials to develop a treatment for the coronavirus disease (COVID-19).

 

The fund’s energy holdings detracted from returns as oil prices pulled back due to concerns about slowing global growth, overshadowing geopolitical tensions in the Middle East. Shares of EOG Resources fell 32.70% and those of Concho Resources declined 38.16%. While we continue to believe that both companies are well placed in the oil-and-gas sector, the entire industry continues to be pressured by oversupply and increasing macro concerns.

 

The fund’s cash position held back returns during the strong market. Cash declined to 8.2% from 9.6% (including other short-term securities) at the beginning of the period as some portfolio managers added to positions. In this environment of market volatility, some portfolio managers are finding pockets of investment opportunity; however, overall cash levels continue to reflect a more cautious approach.

 

Looking ahead

The fundamentals of the U.S. economy were generally stable over the past year: the unemployment rate was low, real wages were gradually increasing and consumer spending was slowly on the rise. However, the spread of the coronavirus outside of China to a broad swath of countries in Asia, Europe and the Americas is fueling a broad re-examination of global economic growth assumptions. Even with the emergency measures taken by the Fed, we believe the global economy is headed for a significant slowdown at least in the first half of the year.

 

The depth and severity of any downturn will depend on how officials in the U.S. and other major economies respond, both to the spread of the virus and its economic ramifications. Among the world’s largest economies, we believe the U.S. remains the most resilient. The economy had been growing above trend with a solid labor market and industrial sector activity was

 

2AMCAP Fund
 

starting to pick up as the U.S. reached a détente in the trade war with China.

 

But news of the continued spread of the coronavirus — and the recent plunge in oil prices — has sent stocks into bear market territory, and bond yields have reached unprecedented lows. While the coronavirus represents a new challenge, there is nothing new about market volatility. Markets have survived viral outbreaks in the past and we believe that looking past the current environment and staying the course can benefit our shareholders over the long term.

 

As such, we continue with our consistent and diligent approach to growth investing, just as we have for the past 50-plus years. While the market doesn’t like uncertainty, we believe our bottom-up approach of focusing on fundamentals and investing in quality companies with sustainable competitive advantages will serve our investors well in a volatile environment, just as it has during previous periods of uncertainty and volatility.

 

AMCAP invests primarily in U.S. 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,

 

 

Barry Crosthwaite
Co-President

 

 

James Terrile
Co-President

 

April 9, 2020

 

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

 

AMCAP Fund3
 

The value of a long-term perspective

 

 

Fund results shown are for Class A shares and reflect deduction of the maximum sales charge of 5.75% on the $10,000 investment.¹Thus, 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. 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 capitalgroup.com.

 

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.
3Source: S&P Dow Jones Indices LLC. The S&P 500 is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index.

 

4AMCAP Fund
 

How a $10,000 investment has grown

This chart shows how a hypothetical $10,000 investment in AMCAP Fund grew over the past 50 years from February 28, 1970, to February 29, 2020. As you can see, the investment grew to $2,244,526 with all distributions reinvested.

 

 

AMCAP Fund5
 

Summary investment portfolio February 29, 2020

 

Industry sector diversificationPercent of net assets

 

 

Common stocks 91.82% Shares  Value
(000)
 
Health care 21.47%        
Abbott Laboratories  24,691,154  $1,901,960 
UnitedHealth Group Inc.  6,822,054   1,739,351 
Thermo Fisher Scientific Inc.  3,637,852   1,057,887 
BioMarin Pharmaceutical Inc.1,2  10,624,447   960,131 
Gilead Sciences, Inc.  12,760,813   885,090 
Amgen Inc.  4,241,750   847,205 
Humana Inc.  2,557,067   817,443 
PerkinElmer, Inc.1  6,466,234   558,941 
IQVIA Holdings Inc.2  3,451,078   481,391 
Centene Corp.2  8,521,163   451,792 
Edwards Lifesciences Corp.2  2,129,418   436,190 
Eli Lilly and Co.  3,412,545   430,424 
AbbVie Inc.  4,899,358   419,924 
Stryker Corp.  1,890,251   360,263 
Other securities      2,567,520 
       13,915,512 
         
Information technology 21.09%        
Microsoft Corp.  12,581,114   2,038,266 
Broadcom Inc.  4,791,980   1,306,390 
Mastercard Inc., Class A  3,631,190   1,053,953 
ASML Holding NV3  3,296,851   913,105 
Autodesk, Inc.2  4,292,953   819,439 
FleetCor Technologies, Inc.2  2,793,169   742,396 
Intel Corp.  8,426,542   467,842 
Fidelity National Information Services, Inc.  3,254,374   454,701 
Micron Technology, Inc.2  8,188,959   430,412 
Ceridian HCM Holding Inc.2  6,038,497   427,103 
Adobe Inc.2  1,175,686   405,753 
Accenture PLC, Class A  2,096,961   378,690 
Other securities      4,232,203 
       13,670,253 
         
Communication services 13.81%        
Netflix, Inc.2  6,435,588   2,374,925 
Alphabet Inc., Class C2  732,783   981,438 
Alphabet Inc., Class A2  684,097   916,177 
Facebook, Inc., Class A2  9,808,238   1,887,792 
Activision Blizzard, Inc.  15,207,128   883,990 
Tencent Holdings Ltd.3  13,977,318   689,437 
Charter Communications, Inc., Class A2  1,035,623   510,738 
Other securities      708,577 
       8,953,074 

 

6AMCAP Fund
 
  Shares  Value
(000)
 
Industrials 10.83%        
TransDigm Group Inc.  2,017,556  $1,125,413 
Old Dominion Freight Line, Inc.1  4,905,717   950,728 
CSX Corp.  10,578,673   745,268 
General Dynamics Corp.  4,319,845   689,836 
Northrop Grumman Corp.  1,486,303   488,756 
Equifax Inc.  2,540,905   360,910 
Other securities      2,658,821 
       7,019,732 
         
Consumer discretionary 8.61%        
Amazon.com, Inc.2  664,602   1,251,944 
Alibaba Group Holding Ltd. (ADR)2  3,251,231   676,256 
Alibaba Group Holding Ltd.2,3  1,014,200   26,391 
Marriott International, Inc., Class A  4,835,959   599,659 
NIKE, Inc., Class B  5,224,119   466,932 
Booking Holdings Inc.2  245,707   416,636 
Hilton Worldwide Holdings Inc.  3,984,017   387,246 
Other securities      1,757,668 
       5,582,732 
         
Financials 4.81%        
First Republic Bank  5,244,689   527,458 
Aon PLC, Class A  2,201,612   457,935 
S&P Global Inc.  1,490,140   396,243 
Other securities      1,739,451 
       3,121,087 
         
Energy 4.52%        
EOG Resources, Inc.  19,344,356   1,223,724 
Concho Resources Inc.1  10,180,111   692,451 
Diamondback Energy, Inc.  6,333,781   392,695 
Other securities      620,719 
       2,929,589 
         
Consumer staples 3.86%        
Costco Wholesale Corp.  2,270,958   638,457 
Constellation Brands, Inc., Class A  3,100,384   534,444 
Other securities      1,330,997 
       2,503,898 
         
Real estate 1.53%        
American Tower Corp. REIT  1,741,028   394,865 
Other securities      599,119 
       993,984 
         
Other 1.29%        
Other securities      838,514 
         
Total common stocks (cost: $40,658,562,000)      59,528,375 
         
Short-term securities 8.01%        
Money market investments 8.01%        
Capital Group Central Cash Fund 1.63%1,4  51,911,222   5,191,122 
         
Total short-term securities (cost: $5,184,280,000)      5,191,122 
Total investment securities 99.83% (cost: $45,842,842,000)      64,719,497 
Other assets less liabilities 0.17%      108,744 
         
Net assets 100.00%     $64,828,241 

 

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.

 

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

 

AMCAP Fund7
 

Investments in affiliates

 

A company is an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings represent 5% or more of the outstanding voting shares of that company. 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 these holdings and related transactions during the year ended February 29, 2020, appear below.

 

  Beginning
shares
  Additions  Reductions  Ending
shares
  Net
realized
(loss) gain
(000)
  Net
unrealized
appreciation
(depreciation)
(000)
  Dividend
income
(000)
  Value of
affiliates at
2/29/2020
(000)
 
Common stocks 5.32%                                
Health care 2.79%                                
BioMarin Pharmaceutical Inc.2  10,177,000   2,346,500   1,899,053   10,624,447  $(12,713) $4,815  $  $960,131 
PerkinElmer, Inc.  7,191,234   555,705   1,280,705   6,466,234   17,652   (70,126)  1,789   558,941 
Integra LifeSciences Holdings Corp.2  5,995,967      441,485   5,554,482   (6,214)  (13,804)     289,389 
                               1,808,461 
Information technology 0.00%                                
Trimble Inc.2,5  14,536,673   1,184,532   12,914,224   2,806,981   189,917   (191,030)      
Industrials 1.46%                                
Old Dominion Freight Line, Inc.  3,954,714   1,166,726   215,723   4,905,717   7,124   197,180   3,031   950,728 
Middleby Corp.2,5  2,905,507   500,000   1,840,206   1,565,301   (30,574)  (14,832)      
                               950,728 
Consumer discretionary 0.00%                                
Texas Roadhouse, Inc.5  3,875,000      3,875,000      170,945   (203,499)  3,525    
Williams-Sonoma, Inc.5  5,036,664      1,509,987   3,526,677   25,026   4,855   7,934    
                                
Energy 1.07%                                
Concho Resources Inc.  7,862,000   2,790,832   472,721   10,180,111   (31,152)  (359,187)  5,583   692,451 
Materials 0.00%                                
Valvoline Inc.5  15,053,100      10,273,378   4,779,722   (27,144)  53,294   5,268    
Short-term securities 8.01%                                
Money market investments 8.01%                                
Capital Group Central Cash Fund 1.63%4     131,484,874   79,573,652   51,911,222   (9,801)  6,842   120,219   5,191,122 
Total 13.33%                 $293,066  $(585,492) $147,349  $8,642,762 

 

1Represents an affiliated company as defined under the Investment Company Act of 1940.
2Security did not produce income during the last 12 months.
3Valued 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 $3,364,647,000, which represented 5.19% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
4Rate represents the seven-day yield at 2/29/2020.
5Unaffiliated issuer at 2/29/2020.

 

Key to abbreviation

ADR = American Depositary Receipts

 

See notes to financial statements.

 

8AMCAP Fund
 

Financial statements

 

Statement of assets and liabilities 
at February 29, 2020(dollars in thousands)

 

Assets:        
Investment securities, at value:        
Unaffiliated issuers (cost: $37,810,885) $56,076,735     
Affiliated issuers (cost: $8,031,957)  8,642,762  $64,719,497 
Cash      975 
Receivables for:        
Sales of investments  439,398     
Sales of fund’s shares  84,529     
Dividends  54,765     
Other  1,176   579,868 
       65,300,340 
Liabilities:        
Payables for:        
Purchases of investments  257,159     
Repurchases of fund’s shares  173,934     
Investment advisory services  16,714     
Services provided by related parties  13,012     
Trustees’ deferred compensation  1,831     
Other  9,449   472,099 
Net assets at February 29, 2020     $64,828,241 
         
Net assets consist of:        
Capital paid in on shares of beneficial interest     $44,805,835 
Total distributable earnings      20,022,406 
Net assets at February 29, 2020     $64,828,241 

 

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

 

Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (2,064,461 total shares outstanding)

 

  Net assets  Shares
outstanding
  Net asset value
per share
 
Class A $30,634,790   973,336  $31.47 
Class C  1,299,278   47,854   27.15 
Class T  11   *  31.50 
Class F-1  1,331,514   42,703   31.18 
Class F-2  7,553,701   238,182   31.71 
Class F-3  3,966,921   125,812   31.53 
Class 529-A  1,891,416   60,862   31.08 
Class 529-C  219,826   8,050   27.31 
Class 529-E  78,478   2,604   30.14 
Class 529-T  13   *  31.49 
Class 529-F-1  151,129   4,818   31.37 
Class R-1  68,461   2,444   28.01 
Class R-2  605,379   21,616   28.01 
Class R-2E  67,035   2,160   31.04 
Class R-3  990,227   32,627   30.35 
Class R-4  906,436   29,078   31.17 
Class R-5E  76,642   2,432   31.52 
Class R-5  571,651   17,875   31.98 
Class R-6  14,415,333   452,008   31.89 

 

*Amount less than one thousand.

 

See notes to financial statements.

 

AMCAP Fund9
 
Statement of operations 
for the year ended February 29, 2020(dollars in thousands)

 

Investment income:        
Income:        
Dividends (net of non-U.S. taxes of $6,558; also includes $147,349 from affiliates) $914,680     
Interest  7,082  $921,762 
Fees and expenses*:        
Investment advisory services  201,000     
Distribution services  118,137     
Transfer agent services  51,184     
Administrative services  20,587     
Reports to shareholders  1,896     
Registration statement and prospectus  1,593     
Trustees’ compensation  900     
Auditing and legal  148     
Custodian  715     
Other  1,678   397,838 
Net investment income      523,924 
         
Net realized gain and unrealized appreciation:        
Net realized gain (loss) on:        
Investments (net of non-U.S. taxes of $1,629):        
Unaffiliated issuers  3,600,269     
Affiliated issuers  293,066     
Currency transactions  (1,368)  3,891,967 
Net unrealized appreciation (depreciation) on:        
Investments (net of non-U.S. taxes of $8,925):        
Unaffiliated issuers  895,787     
Affiliated issuers  (585,492)    
Currency translations  127   310,422 
Net realized gain and unrealized appreciation      4,202,389 
Net increase in net assets resulting from operations     $4,726,313 

 

*Additional information related to class-specific fees and expenses is included in the notes to financial statements.

 

Statements of changes in net assets

 

(dollars in thousands)

 

  Year ended
February 29,
2020
  Year ended
February 28,
2019
 
Operations:        
Net investment income $523,924  $459,342 
Net realized gain  3,891,967   4,415,955 
Net unrealized appreciation (depreciation)  310,422   (2,702,279)
Net increase in net assets resulting from operations  4,726,313   2,173,018 
         
Distributions paid to shareholders  (3,402,053)  (5,948,794)
         
Net capital share transactions  (1,275,135)  5,024,665 
         
Total increase in net assets  49,125   1,248,889 
         
Net assets:        
Beginning of year  64,779,116   63,530,227 
End of year $64,828,241  $64,779,116 

 

See notes to financial statements.

 

10AMCAP 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 class Initial sales charge Contingent deferred sales
charge upon redemption
 Conversion feature 
Classes A and 529-A Up to 5.75% None (except 1% for certain redemptions within 18 months of purchase without an initial sales charge) None 
Class C None 1% for redemptions within one year of purchase Class C converts to Class F-1 after 10 years 
Class 529-C None 1% for redemptions within one year of purchase Class 529-C converts to Class 529-A after 10 years 
Class 529-E None None None 
Classes T and 529-T* Up to 2.50% None None 
Classes F-1, F-2, F-3 and 529-F-1 None None None 
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 None None None 
*Class 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.

 

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.

 

Distributions paid to shareholders— Income dividends and capital gain distributions are recorded on the ex-dividend date.

 

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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. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds”), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.

 

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

 

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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. 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 29, 2020 (dollars in thousands):

 

  Investment securities 
  Level 1  Level 2  Level 3  Total 
Assets:                
Common stocks:                
Health care $13,835,631  $79,881  $  $13,915,512 
Information technology  12,386,177   1,284,076      13,670,253 
Communication services  8,189,369   763,705      8,953,074 
Industrials  6,750,987   268,745      7,019,732 
Consumer discretionary  5,323,323   259,409      5,582,732 
Financials  2,584,789   536,298      3,121,087 
Energy  2,929,589         2,929,589 
Consumer staples  2,331,365   172,533      2,503,898 
Real estate  993,984         993,984 
Other  838,514         838,514 
Short-term securities  5,191,122         5,191,122 
Total $61,354,850  $3,364,647  $  $64,719,497 

 

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, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

 

Issuer risks— The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

 

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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 nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which 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, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

 

5. Taxation and distributions

 

Federal income taxation— The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

 

As of and during the year ended February 29, 2020, 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; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold; non-U.S. taxes on capital gains and income on certain investments. 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 29, 2020, the fund reclassified $198,163,000 from total distributable earnings to capital paid in on shares of beneficial interest to align financial reporting with tax reporting.

 

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As of February 29, 2020, 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 $1,187,555 
Gross unrealized appreciation on investments  20,912,171 
Gross unrealized depreciation on investments  (2,067,739)
Net unrealized appreciation on investments  18,844,432 
Cost of investments  45,875,065 

 

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

 

  Year ended February 29, 2020  Year ended February 28, 2019 
Share class Ordinary
income
  Long-term
capital gains
  Total
distributions
paid
  Ordinary
income
  Long-term
capital gains
  Total
distributions
paid
 
Class A $167,748  $1,394,275  $1,562,023  $163,712  $2,605,159  $2,768,871 
Class C     70,449   70,449      145,517   145,517 
Class T  *  *  *  *  1   1 
Class F-1  6,587   64,814   71,401   7,425   156,214   163,639 
Class F-2  55,745   345,782   401,527   51,409   601,056   652,465 
Class F-3  32,635   179,285   211,920   27,490   295,296   322,786 
Class 529-A  9,661   87,108   96,769   8,940   163,115   172,055 
Class 529-C     11,851   11,851      25,498   25,498 
Class 529-E  276   3,767   4,043   258   7,404   7,662 
Class 529-T  *  1   1   *  1   1 
Class 529-F-1  1,057   6,804   7,861   965   11,700   12,665 
Class R-1     3,837   3,837      9,036   9,036 
Class R-2     31,411   31,411      60,653   60,653 
Class R-2E  112   3,078   3,190   121   5,037   5,158 
Class R-3  2,661   48,758   51,419   2,895   109,882   112,777 
Class R-4  4,849   45,775   50,624   5,685   108,829   114,514 
Class R-5E  436   2,544   2,980   138   1,405   1,543 
Class R-5  5,516   34,247   39,763   7,879   93,892   101,771 
Class R-6  120,128   660,856   780,984   107,084   1,165,098   1,272,182 
Total $407,411  $2,994,642  $3,402,053  $384,001  $5,564,793  $5,948,794 

 

*Amount less than one thousand.

 

6. Fees and transactions with related parties

 

CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors®, Inc. (“AFD”), the principal underwriter of the fund’s shares, and American Funds Service Company® (“AFS”), the fund’s transfer agent. CRMC, AFD and AFS are considered related parties to the fund.

 

Investment advisory services— The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. At the beginning of the year, these fees were based on a series of decreasing annual rates beginning with 0.485% on the first $1 billion of daily net assets and decreasing to 0.280% on such assets in excess of $55 billion. On March 7, 2019, the fund’s board of trustees approved an amended investment advisory and service agreement effective May 1, 2019, decreasing the annual rate to 0.277% on daily net assets in excess of $71 billion. For the year ended February 29, 2020, the investment advisory services fee was $201,000,000, which was equivalent to an annualized rate of 0.297% 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

 

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to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

 

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 29, 2020, unreimbursed expenses subject to reimbursement totaled $1,467,000 for Class A shares. There were no unreimbursed expenses subject to reimbursement for Class 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 all share classes. Administrative services are provided by CRMC and its affiliates 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 provides the fund the ability to charge an administrative services fee at the annual rate of 0.05% of the daily net assets attributable to each share class of the fund. Prior to July 1, 2019, Class A shares paid CRMC an administrative services fee at the annual rate of 0.01% of daily net assets and all other share classes paid a fee at the annual rate of 0.05% of their respective daily net assets. The fund’s board of trustees authorized the fund to pay CRMC effective July 1, 2019, an administrative services fee at the annual rate of 0.03% of the average daily net assets attributable to each share class of the fund (which could increase as noted above) for CRMC’s provision of administrative services.

 

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 CollegeAmerica 529 college savings plan. The fee is based on the combined net assets invested in Class 529 and ABLE shares of the American Funds. Class ABLE shares are offered on other American Funds by Virginia529 through ABLEAmerica, a tax-advantaged savings program for individuals with disabilities. Prior to January 1, 2020, the quarterly fee was based on a series of decreasing annual rates beginning with 0.10% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. Effective January 1, 2020, the quarterly fee was amended to a series of decreasing annual rates beginning with 0.09% on the first $20 billion of the combined net assets invested in 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 and ABLE 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.

 

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For the year ended February 29, 2020, class-specific expenses under the agreements were as follows (dollars in thousands):

 

  Distribution  Transfer agent  Administrative  529 plan 
Share class services  services  services  services 
Class A  $78,639   $30,840   $  7,387  Not applicable 
Class C  14,125   1,396   524  Not applicable 
Class T     *  * Not applicable 
Class F-1  3,837   1,980   572  Not applicable 
Class F-2  Not applicable   8,724   2,841  Not applicable 
Class F-3  Not applicable   246   1,439  Not applicable 
Class 529-A  4,477   1,713   711  $1,260 
Class 529-C  2,338   215   89  156 
Class 529-E  404   37   30  53 
Class 529-T     *  * *
Class 529-F-1     133   55  99 
Class R-1  827   88   31  Not applicable 
Class R-2  4,773   2,241   233  Not applicable 
Class R-2E  408   140   25  Not applicable 
Class R-3  5,555   1,723   410  Not applicable 
Class R-4  2,754   1,125   407  Not applicable 
Class R-5E  Not applicable   74   18  Not applicable 
Class R-5  Not applicable   445   325  Not applicable 
Class R-6  Not applicable   64   5,490  Not applicable 
Total class-specific expenses  $118,137   $51,184   $20,587  $1,568 

 

*Amount less than one thousand.

 

Trustees’ deferred compensation— Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $900,000 in the fund’s statement of operations reflects $425,000 in current fees (either paid in cash or deferred) and a net increase of $475,000 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.

 

Investment in CCF— The fund holds shares of CCF, an institutional prime money market fund managed by CRMC. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for the fund’s short-term investments. CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC or its affiliates, and are not available to the public. CRMC does not receive an investment advisory services fee from CCF.

 

Security transactions with related funds— The fund purchased securities from, and sold 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. Each transaction was executed at the current market price of the security and no brokerage commissions or fees were paid in accordance with Rule 17a-7 of the 1940 Act. During the year ended February 29, 2020, the fund engaged in such purchase and sale transactions with related funds in the amounts of $584,669,000 and $1,091,754,000, respectively, which generated $56,044,000 of net realized gains from such sales.

 

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 29, 2020.

 

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7. Capital share transactions

 

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

 

  Sales*  Reinvestments of
distributions
  Repurchases*  Net (decrease)
increase
 
Share class Amount  Shares  Amount  Shares  Amount  Shares  Amount  Shares 
                                 
Year ended February 29, 2020                         
                                 
Class A $2,237,044   69,093  $1,537,266   46,377  $(3,944,952)  (121,405) $(170,642)  (5,935)
Class C  147,881   5,279   69,907   2,443   (389,037)  (13,892)  (171,249)  (6,170)
Class T                        
Class F-1  150,135   4,712   69,754   2,127   (557,741)  (17,422)  (337,852)  (10,583)
Class F-2  1,763,949   54,151   388,528   11,633   (2,172,332)  (66,291)  (19,855)  (507)
Class F-3  1,088,897   33,590   209,842   6,318   (911,177)  (27,889)  387,562   12,019 
Class 529-A  192,418   5,998   96,740   2,956   (308,256)  (9,600)  (19,098)  (646)
Class 529-C  25,203   891   11,848   411   (69,560)  (2,457)  (32,509)  (1,155)
Class 529-E  7,645   247   4,041   127   (14,774)  (475)  (3,088)  (101)
Class 529-T        1           1   
Class 529-F-1  25,023   770   7,861   238   (28,304)  (871)  4,580   137 
Class R-1  8,723   303   3,827   130   (35,382)  (1,220)  (22,832)  (787)
Class R-2  134,489   4,640   31,384   1,063   (191,650)  (6,611)  (25,777)  (908)
Class R-2E  19,847   620   3,190   98   (17,805)  (560)  5,232   158 
Class R-3  201,185   6,408   51,337   1,607   (443,318)  (14,173)  (190,796)  (6,158)
Class R-4  161,212   5,029   50,586   1,542   (470,201)  (14,450)  (258,403)  (7,879)
Class R-5E  60,248   1,850   2,979   90   (17,071)  (523)  46,156   1,417 
Class R-5  82,824   2,542   39,750   1,183   (622,676)  (18,796)  (500,102)  (15,071)
Class R-6  2,075,266   63,926   780,668   23,249   (2,822,397)  (85,014)  33,537   2,161 
Total net increase (decrease) $8,381,989   260,049  $3,359,509   101,592  $(13,016,633)  (401,649) $(1,275,135)  (40,008)
                                 
Year ended February 28, 2019                         
                                 
Class A $2,970,961   91,991  $2,725,877   94,378  $(3,864,791)  (120,333) $1,832,047   66,036 
Class C  247,487   8,669   144,207   5,693   (355,415)  (12,553)  36,279   1,809 
Class T                        
Class F-1  262,694   8,097   159,936   5,537   (854,851)  (26,312)  (432,221)  (12,678)
Class F-2  2,843,286   87,046   632,680   21,888   (1,719,420)  (53,827)  1,756,546   55,107 
Class F-3  990,751   30,529   320,102   11,112   (709,605)  (22,158)  601,248   19,483 
Class 529-A  217,154   6,794   171,904   6,016   (264,328)  (8,259)  124,730   4,551 
Class 529-C  33,924   1,185   25,406   996   (68,417)  (2,395)  (9,087)  (214)
Class 529-E  11,204   360   7,637   275   (16,830)  (544)  2,011   91 
Class 529-T        1           1   
Class 529-F-1  47,237   1,449   12,635   442   (22,808)  (715)  37,064   1,176 
Class R-1  11,988   407   8,984   343   (33,287)  (1,125)  (12,315)  (375)
Class R-2  157,911   5,389   60,569   2,322   (184,505)  (6,368)  33,975   1,343 
Class R-2E  21,736   675   5,158   181   (8,481)  (272)  18,413   584 
Class R-3  268,849   8,575   112,674   4,014   (467,935)  (15,026)  (86,412)  (2,437)
Class R-4  227,986   7,064   114,469   3,977   (548,753)  (17,081)  (206,298)  (6,040)
Class R-5E  28,174   905   1,541   55   (4,612)  (143)  25,103   817 
Class R-5  157,759   4,764   101,720   3,464   (511,736)  (15,692)  (252,257)  (7,464)
Class R-6  2,540,357   78,062   1,271,006   43,558   (2,255,525)  (66,788)  1,555,838   54,832 
Total net increase (decrease) $11,039,458   341,961  $5,876,506   204,251  $(11,891,299)  (369,591) $5,024,665   176,621 

 

*Includes exchanges between share classes of the fund.
Amount less than one thousand.

 

8. Investment transactions

 

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $16,471,141,000 and $19,753,287,000, respectively, during the year ended February 29, 2020.

 

18AMCAP 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/
reimbursements4
  Ratio of
expenses to
average net
assets after
waivers/
reimbursements3,4
  Ratio of
net income
(loss)
to average
net assets3
 
Class A:                                       
2/29/2020 $30.87  $.22  $2.03  $2.25  $(.18) $(1.47) $(1.65) $31.47   7.03% $30,635   .68%  .68%  .69%
2/28/2019  33.07   .21   .63   .84   (.18)  (2.86)  (3.04)  30.87   3.35   30,234   .66   .66   .65 
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 
Class C:                                                    
2/29/2020  26.88   (.02)  1.76   1.74      (1.47)  (1.47)  27.15   6.21   1,299   1.43   1.43   (.07)
2/28/2019  29.23   (.04)  .55   .51      (2.86)  (2.86)  26.88   2.56   1,452   1.45   1.45   (.14)
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)
Class T:                                                    
2/29/2020  30.88   .30   2.03   2.33   (.24)  (1.47)  (1.71)  31.50   7.295  6  .445  .445  .925
2/28/2019  33.07   .28   .63   .91   (.24)  (2.86)  (3.10)  30.88   3.595  6  .455  .455  .865
2/28/20187,8  28.79   .23   5.80   6.03   (.19)  (1.56)  (1.75)  33.07   21.465,9   6  .455,10   .455,10   .815,10 
Class F-1:                                                    
2/29/2020  30.59   .21   2.00   2.21   (.15)  (1.47)  (1.62)  31.18   6.98   1,332   .72   .72   .65 
2/28/2019  32.78   .19   .62   .81   (.14)  (2.86)  (3.00)  30.59   3.29   1,630   .73   .73   .58 
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 
Class F-2:                                                    
2/29/2020  31.08   .30   2.04   2.34   (.24)  (1.47)  (1.71)  31.71   7.26   7,554   .45   .45   .91 
2/28/2019  33.27   .28   .63   .91   (.24)  (2.86)  (3.10)  31.08   3.56   7,419   .47   .47   .85 
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 
Class F-3:                                                    
2/29/2020  30.90   .33   2.04   2.37   (.27)  (1.47)  (1.74)  31.53   7.39   3,967   .35   .35   1.01 
2/28/2019  33.09   .31   .62   .93   (.26)  (2.86)  (3.12)  30.90   3.68   3,517   .36   .36   .95 
2/28/2018  28.83   .27   5.76   6.03   (.21)  (1.56)  (1.77)  33.09   21.44   3,121   .37   .37   .85 
2/28/20177,11  28.36   .02   .45   .47            28.83   1.669  3   .039  .039  .099
Class 529-A:                                                    
2/29/2020  30.51   .20   2.00   2.20   (.16)  (1.47)  (1.63)  31.08   6.97   1,891   .72   .72   .64 
2/28/2019  32.71   .18   .64   .82   (.16)  (2.86)  (3.02)  30.51   3.31   1,876   .74   .74   .57 
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 

 

See end of table for footnotes.

 

AMCAP Fund19
 

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/
reimbursements4
  Ratio of
expenses to
average net
assets after
waivers/
reimbursements3,4
  Ratio of
net income
(loss)
to average
net assets3
 
Class 529-C:                                       
2/29/2020 $27.03  $(.03) $1.78  $1.75  $  $(1.47) $(1.47) $27.31   6.21% $220   1.47%  1.47%  (.10)%
2/28/2019  29.39   (.05)  .55   .50      (2.86)  (2.86)  27.03   2.51   249   1.49   1.49   (.17)
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)
Class 529-E:                                                    
2/29/2020  29.65   .13   1.94   2.07   (.11)  (1.47)  (1.58)  30.14   6.72   79   .95   .95   .42 
2/28/2019  31.89   .11   .61   .72   (.10)  (2.86)  (2.96)  29.65   3.06   80   .97   .97   .35 
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 
Class 529-T:                                                    
2/29/2020  30.88   .29   2.02   2.31   (.23)  (1.47)  (1.70)  31.49   7.225  6  .485  .485  .885
2/28/2019  33.06   .26   .64   .90   (.22)  (2.86)  (3.08)  30.88   3.575  6  .505  .505  .815
2/28/20187,8  28.79   .21   5.80   6.01   (.18)  (1.56)  (1.74)  33.06   21.365,9   6  .525,10   .525,10   .745,10 
Class 529-F-1:                                                 
2/29/2020  30.76   .28   2.03   2.31   (.23)  (1.47)  (1.70)  31.37   7.24   151   .49   .49   .87 
2/28/2019  32.96   .26   .63   .89   (.23)  (2.86)  (3.09)  30.76   3.53   144   .51   .51   .80 
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 
Class R-1:                                                    
2/29/2020  27.69   (.02)  1.81   1.79      (1.47)  (1.47)  28.01   6.21   68   1.45   1.45   (.08)
2/28/2019  30.03   (.04)  .56   .52      (2.86)  (2.86)  27.69   2.52   90   1.46   1.46   (.14)
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)
Class R-2:                                                    
2/29/2020  27.69   (.02)  1.81   1.79      (1.47)  (1.47)  28.01   6.21   605   1.44   1.44   (.08)
2/28/2019  30.02   (.04)  .57   .53      (2.86)  (2.86)  27.69   2.56   624   1.45   1.45   (.14)
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)
Class R-2E:                                                    
2/29/2020  30.50   .07   1.99   2.06   (.05)  (1.47)  (1.52)  31.04   6.53   67   1.15   1.15   .22 
2/28/2019  32.73   .05   .65   .70   (.07)  (2.86)  (2.93)  30.50   2.89   61   1.16   1.16   .16 
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 

 

20AMCAP 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/
reimbursements4
  Ratio of
expenses to
average net
assets after
waivers/
reimbursements3,4
  Ratio of
net income
(loss)
to average
net assets3
 
Class R-3:                                       
2/29/2020 $29.83  $.12  $1.95  $2.07  $(.08) $(1.47) $(1.55) $30.35   6.69% $990   1.00%  1.00%  .37%
2/28/2019  32.06   .10   .61   .71   (.08)  (2.86)  (2.94)  29.83   2.99   1,157   1.01   1.01   .30 
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 
Class R-4:                                                    
2/29/2020  30.58   .22   2.00   2.22   (.16)  (1.47)  (1.63)  31.17   7.00   906   .69   .69   .67 
2/28/2019  32.77   .20   .62   .82   (.15)  (2.86)  (3.01)  30.58   3.33   1,130   .71   .71   .61 
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 
Class R-5E:                                                    
2/29/2020  30.91   .27   2.05   2.32   (.24)  (1.47)  (1.71)  31.52   7.25   77   .48   .48   .84 
2/28/2019  33.11   .27   .63   .90   (.24)  (2.86)  (3.10)  30.91   3.56   31   .50   .50   .83 
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   6  .60   .51   .76 
2/29/20167,12  27.89   .04   (2.11)  (2.07)     (1.34)  (1.34)  24.48   (7.62)9   6  .159  .159  .179
Class R-5:                                                    
2/29/2020  31.32   .32   2.06   2.38   (.25)  (1.47)  (1.72)  31.98   7.33   572   .39   .39   .98 
2/28/2019  33.49   .30   .64   .94   (.25)  (2.86)  (3.11)  31.32   3.64   1,032   .41   .41   .91 
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 
Class R-6:                                                    
2/29/2020  31.24   .34   2.05   2.39   (.27)  (1.47)  (1.74)  31.89   7.38   14,415   .34   .34   1.02 
2/28/2019  33.41   .32   .63   .95   (.26)  (2.86)  (3.12)  31.24   3.70   14,053   .36   .36   .96 
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 

 

  Year ended February 28 or 29,
  2020  2019  2018  2017  2016 
Portfolio turnover rate for all share classes13  27%  32%  27%  25%  31%

 

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 reimbursed a portion of the fund’s transfer agent services fees for certain share classes.
4Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds.
5All 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.
6Amount less than $1 million.
7Based on operations for a period that is less than a full year.
8Class T and 529-T shares began investment operations on April 7, 2017.
9Not annualized.
10Annualized.
11Class F-3 shares began investment operations on January 27, 2017.
12Class R-5E shares began investment operations on November 20, 2015.
13Rates do not include the fund’s portfolio activity with respect to any Central Funds.

 

See notes to financial statements.

 

AMCAP Fund21
 

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 29, 2020, 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 29, 2020, 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 29, 2020, 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 9, 2020

 

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

 

22AMCAP 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, 2019, through February 29, 2020).

 

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 Fund23
 
  Beginning
account value
9/1/2019
  Ending
account value
2/29/2020
  Expenses paid
during period*
  Annualized
expense ratio
 
Class A – actual return $1,000.00  $1,038.67  $3.45   .68%
Class A – assumed 5% return  1,000.00   1,021.48   3.42   .68 
Class C – actual return  1,000.00   1,034.80   7.18   1.42 
Class C – assumed 5% return  1,000.00   1,017.80   7.12   1.42 
Class T – actual return  1,000.00   1,040.26   2.18   .43 
Class T – assumed 5% return  1,000.00   1,022.73   2.16   .43 
Class F-1 – actual return  1,000.00   1,038.61   3.60   .71 
Class F-1 – assumed 5% return  1,000.00   1,021.33   3.57   .71 
Class F-2 – actual return  1,000.00   1,039.83   2.28   .45 
Class F-2 – assumed 5% return  1,000.00   1,022.63   2.26   .45 
Class F-3 – actual return  1,000.00   1,040.62   1.73   .34 
Class F-3 – assumed 5% return  1,000.00   1,023.17   1.71   .34 
Class 529-A – actual return  1,000.00   1,038.72   3.65   .72 
Class 529-A – assumed 5% return  1,000.00   1,021.28   3.62   .72 
Class 529-C – actual return  1,000.00   1,034.97   7.34   1.45 
Class 529-C – assumed 5% return  1,000.00   1,017.65   7.27   1.45 
Class 529-E – actual return  1,000.00   1,037.51   4.76   .94 
Class 529-E – assumed 5% return  1,000.00   1,020.19   4.72   .94 
Class 529-T – actual return  1,000.00   1,039.93   2.38   .47 
Class 529-T – assumed 5% return  1,000.00   1,022.53   2.36   .47 
Class 529-F-1 – actual return  1,000.00   1,039.95   2.43   .48 
Class 529-F-1 – assumed 5% return  1,000.00   1,022.48   2.41   .48 
Class R-1 – actual return  1,000.00   1,034.86   7.29   1.44 
Class R-1 – assumed 5% return  1,000.00   1,017.70   7.22   1.44 
Class R-2 – actual return  1,000.00   1,034.86   7.34   1.45 
Class R-2 – assumed 5% return  1,000.00   1,017.65   7.27   1.45 
Class R-2E – actual return  1,000.00   1,036.74   5.77   1.14 
Class R-2E – assumed 5% return  1,000.00   1,019.19   5.72   1.14 
Class R-3 – actual return  1,000.00   1,037.09   5.01   .99 
Class R-3 – assumed 5% return  1,000.00   1,019.94   4.97   .99 
Class R-4 – actual return  1,000.00   1,038.77   3.50   .69 
Class R-4 – assumed 5% return  1,000.00   1,021.43   3.47   .69 
Class R-5E – actual return  1,000.00   1,039.88   2.43   .48 
Class R-5E – assumed 5% return  1,000.00   1,022.48   2.41   .48 
Class R-5 – actual return  1,000.00   1,040.47   1.93   .38 
Class R-5 – assumed 5% return  1,000.00   1,022.97   1.91   .38 
Class R-6 – actual return  1,000.00   1,040.54   1.67   .33 
Class R-6 – assumed 5% return  1,000.00   1,023.22   1.66   .33 

 

*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 366 (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 29, 2020:

 

Long-term capital gains$3,072,300,511
Qualified dividend income100%
Corporate dividends received deduction100%
U.S. government income that may be exempt from state taxation$37,791,000

 

Individual shareholders should refer to their Form 1099 or other tax information, which was mailed in January 2020, to determine thecalendar yearamounts to be included on their 2020 tax returns. Shareholders should consult their tax advisors.

 

24AMCAP Fund
 

Liquidity Risk Management Program

 

The fund has adopted a liquidity risk management program (the “program”). The fund’s board has designated Capital Research and Management Company (“CRMC”) as the administrator of the program. Personnel of CRMC or its affiliates conduct the day-to-day operation of the program pursuant to policies and procedures administered by the Capital Group Liquidity Risk Management Committee.

 

Under the program, CRMC manages the fund’s liquidity risk, which is the risk that the fund could not meet shareholder redemption requests without significant dilution of remaining shareholders’ interests in the fund. This risk is managed by monitoring the degree of liquidity of the fund’s investments, limiting the amount of the fund’s illiquid investments, and utilizing various risk management tools and facilities available to the fund for meeting shareholder redemptions, among other means. CRMC’s process of determining the degree of liquidity of the fund’s investments is supported by one or more third-party liquidity assessment vendors.

 

The fund’s board reviewed a report prepared by CRMC regarding the operation and effectiveness of the program for the period December 1, 2018, through September 30, 2019. No significant liquidity events impacting the fund were noted in the report. In addition, CRMC provided its assessment that the program had been effective in managing the fund’s liquidity risk.

 

AMCAP Fund25
 

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
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 Professor of Marketing and former Dean, Marshall School of Business, University of Southern California 99 Mercury General Corporation
Pablo R. González Guajardo,1967 2015 CEO, Kimberly-Clark de México, SAB de CV 17 América Móvil, SAB de CV; Grupo Lala, SAB de CV; Grupo Sanborns, SAB de CV; Kimberly- Clark de México, SAB de CV
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 for the former City Scene Management Company (provided commercial asset management services) 18 Sempra Energy
John C. Mazziotta, MD, PhD,1949 2011 Physician; Professor of Neurology, University of California at 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 (outdoor equipment retailer) 4 None
Kenneth M. Simril,1965 2019 President and CEO, SCI Ingredients Holdings, Inc. (food manufacturing) 7 None
Kathy J. Williams,1955 2019 Former Commissioner, Marin County Human Rights Commission; Commissioner, Juvenile Justice Delinquency Prevention Commission; Board Member, Aspen Public Radio 4 None

 

Interested trustees4,5

 

Name, year of birth and
position with fund
 Year first
elected
a trustee
or officer
of the fund2
 Principal occupation(s) during past five years
and positions held with affiliated entities or
the principal underwriter of the fund
 Number of
portfolios in fund
complex overseen
by trustee
 Other directorships3
held by trustee
James Terrile,1965
Co-President
 2006 Partner – Capital Research Global Investors, Capital Research and Management Company 4 None
William L. Robbins,1968 2019 Partner – Capital International Investors, Capital Research and Management Company; Partner – Capital International Investors, Capital Bank and Trust Company 4 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 Capital Group website at capitalgroup.com. The address for all trustees and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

 

26AMCAP 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
Co-President
 2006 Partner – Capital International Investors, Capital Research and Management Company
Herbert Y. Poon,1973
Executive Vice President
 2012 Senior Vice President and Senior Counsel – Fund Business Management Group, Capital Research and Management Company; Chief Compliance Officer, Capital Research and Management Company; Chief Compliance Officer, Capital Research Company6
Claudia P. Huntington,1952
Senior Vice President
 1992-1994;
1996
 Partner – Capital Research Global Investors, Capital Research and Management Company;
Partner – Capital Research Global Investors, Capital Bank and Trust Company;
Director, The Capital Group Companies, Inc.6
Aidan O’Connell,1968
Senior Vice President
 2017 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
Lawrence R. Solomon,1962
Senior Vice President
 2019 Partner – Capital Research Global Investors, Capital Research and Management Company; Chairman of the Board, President and Director, Capital Management Services, Inc.
Jessica C. Spaly,1977
Senior Vice President
 2015 Partner – Capital Research Global Investors, Capital Research and Management Company
Eric H. Stern,1964
Senior Vice President
 2019 Partner – Capital International Investors, Capital Research and Management Company;
Partner – Capital International Investors, Capital Bank and Trust Company
Michael W. Stockton,1967
Secretary
 2013-2016;
2019
 Senior Vice President – Fund Business Management Group, Capital Research and Management Company
Brian Bullard,1969
Treasurer
 2015 Senior Vice President – Investment Operations, Capital Research and Management Company
Sandra Chuon,1972
Assistant Treasurer
 2019 Assistant Vice President – Investment Operations, Capital Research and Management Company
Hong T. Le,1978
Assistant Treasurer
 2016 Vice President – Investment Operations, Capital Research and Management Company

 

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 Fund27
 

Office of the fund

333 South Hope Street
Los Angeles, CA 90071-1406

 

Investment adviser

Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406

 

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 1000
Costa Mesa, CA 92626-7188

 

Principal underwriter

American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406

 

28AMCAP 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 Capital Group website at capitalgroup.com.

 

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the Capital Group 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 Capital Group website.

 

A complete February 29, 2020, 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 NPORT-P. This filing is available free of charge on the SEC website. 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, 2020, 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 © 2020 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 Distributors, Inc., member FINRA.

 

The Capital Advantage®

 

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

 

 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 28 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 outcomes
 Equity funds have beaten their Lipper peer indexes in 92% of 10-year periods and 99% of 20-year periods.2Fixed income funds have helped investors achieve diversification through attention to correlation between bonds and equities.3Fund management fees have been among the lowest in the industry.4

 

 1Portfolio manager experience as of December 31, 2019.
 2Based on Class F-2 share results for rolling periods through December 31, 2019. 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. Visitcapitalgroup.comfor more information on specific expense adjustments and the actual dates of first sale.
 3Based on Class F-2 share results as of December 31, 2019. Fifteen of the 17 fixed income American Funds that have been in existence for the three-year period showed a three-year correlation below 0.2. Standard & Poor’s 500 Composite Index was used as an equity market proxy. Correlation based on monthly total returns. Correlation is a statistical measure of how two securities move in relation to each other. A correlation ranges from –1 to 1. A positive correlation close to 1 implies that as one security moves, either up or down, the other security will move in “lockstep,” in the same direction. A negative correlation close to –1 indicates that the securities have moved in the opposite direction.
 4On average, our management fees were in the lowest quintile 65% of the time, based on the 20-year period ended December 31, 2019, versus comparable Lipper categories, excluding funds of funds.

 

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 the results of the original share class of the fund 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. Visitcapitalgroup.comfor more information on specific expense adjustments and the actual dates of first sale.

 

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

 

 

 

 

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 by calling 800/421-4225 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

 AMCAP
   
Registrant:  

a)  Audit Fees:  
Audit2019            94,000
 2020            94,000
   
b)  Audit-Related Fees:  
 2019            12,000
 2020            14,000
   
c)  Tax Fees:  
 2019              8,000
 2020            12,000
 The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns. 
   
d)  All Other Fees:  
 2019 None
 2020 None
   
 Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below): 
a)  Audit Fees:  
 Not Applicable 
   
b)  Audit-Related Fees:  
 2019       1,145,000
 2020       2,068,000
 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 18 issued by the American Institute of Certified Public Accountants. 
   
c)  Tax Fees:  

 2019              8,000
 2020            46,000
 The tax fees consist of consulting services relating to the Registrant’s investments. 
   
   
d)  All Other Fees:  
 2019 None
 2020              2,000
 The other fees consist of subscription services related to an accounting research tool. 
   
   
 All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee.  The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services.  Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates. 
   
 

Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant, were $1,227,000 for fiscal year 2019 and $2,142,000 for fiscal year 2020. 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 29, 2020

 

 

 

 

Common stocks 91.82%
Health care 21.47%
SharesValue
(000)
Abbott Laboratories24,691,154$1,901,960
UnitedHealth Group Inc.6,822,0541,739,351
Thermo Fisher Scientific Inc.3,637,8521,057,887
BioMarin Pharmaceutical Inc.1,210,624,447960,131
Gilead Sciences, Inc.12,760,813885,090
Amgen Inc.4,241,750847,205
Humana Inc.2,557,067817,443
PerkinElmer, Inc.16,466,234558,941
IQVIA Holdings Inc.23,451,078481,391
Centene Corp.28,521,163451,792
Edwards Lifesciences Corp.22,129,418436,190
Eli Lilly and Co.3,412,545430,424
AbbVie Inc.4,899,358419,924
Stryker Corp.1,890,251360,263
Illumina, Inc.21,224,058325,196
Insulet Corp.21,671,467317,529
Integra LifeSciences Holdings Corp.1,25,554,482289,389
West Pharmaceutical Services, Inc.1,393,360209,784
Zimmer Biomet Holdings, Inc.1,410,097191,985
Vertex Pharmaceuticals Inc.2760,694170,418
Anthem, Inc.564,149145,037
Cigna Corp.699,149127,902
Johnson & Johnson849,773114,278
Boston Scientific Corp.22,999,198112,140
Danaher Corp.746,301107,900
PRA Health Sciences, Inc.21,127,000106,163
LivaNova PLC21,399,62697,582
Zoetis Inc., Class A726,00096,725
AstraZeneca PLC3912,55679,881
Merck & Co., Inc.600,83946,000
Molina Healthcare, Inc.2241,62429,611
  13,915,512
Information technology 21.09%  
Microsoft Corp.12,581,1142,038,266
Broadcom Inc.4,791,9801,306,390
Mastercard Inc., Class A3,631,1901,053,953
ASML Holding NV33,296,851913,105
Autodesk, Inc.24,292,953819,439
FleetCor Technologies, Inc.22,793,169742,396
Intel Corp.8,426,542467,842
Fidelity National Information Services, Inc.3,254,374454,701
Micron Technology, Inc.28,188,959430,412
Ceridian HCM Holding Inc.26,038,497427,103
Adobe Inc.21,175,686405,753
Accenture PLC, Class A2,096,961378,690
ServiceNow, Inc.2995,328324,566

 

AMCAP Fund — Page 1 of 5

 


 

 

 

Common stocks (continued)
Information technology (continued)
SharesValue
(000)
Visa Inc., Class A1,718,841$312,417
PayPal Holdings, Inc.22,748,306296,790
Applied Materials, Inc.4,677,049271,830
Qorvo, Inc.22,355,488236,915
DocuSign, Inc.22,618,981226,044
Fiserv, Inc.21,882,987205,923
Amphenol Corp., Class A2,128,381195,130
NetApp, Inc.3,751,104175,252
Kingdee International Software Group Co. Ltd.3119,446,000154,167
Skyworks Solutions, Inc.1,309,250131,161
Atlassian Corp. PLC, Class A2835,777121,154
Apple Inc.431,242117,884
Samsung Electronics Co., Ltd.32,589,817117,163
Fair Isaac Corp.2297,421111,839
Global Payments Inc.606,138111,511
Trimble Inc.22,806,981110,820
Texas Instruments Inc.931,136106,280
SVMK Inc.25,788,753105,529
Taiwan Semiconductor Manufacturing Co., Ltd.39,718,00099,641
salesforce.com, inc.2578,00098,491
MongoDB, Inc., Class A2630,55996,160
TE Connectivity Ltd.1,114,39392,350
SS&C Technologies Holdings, Inc.1,299,65372,131
Lam Research Corp.236,04569,263
Zoom Video Communications, Inc., Class A2500,58552,561
CDK Global, Inc.1,099,73350,610
PTC, Inc.2550,75341,609
Workday, Inc., Class A2217,30037,647
RealPage, Inc.2503,86532,298
Intuit Inc.109,97129,236
QUALCOMM Inc.288,72322,607
HubSpot, Inc.229,1145,224
  13,670,253
Communication services 13.81%  
Netflix, Inc.26,435,5882,374,925
Alphabet Inc., Class C2732,783981,438
Alphabet Inc., Class A2684,097916,177
Facebook, Inc., Class A29,808,2381,887,792
Activision Blizzard, Inc.15,207,128883,990
Tencent Holdings Ltd.313,977,318689,437
Charter Communications, Inc., Class A21,035,623510,738
Comcast Corp., Class A3,704,210149,761
Electronic Arts Inc.21,433,797145,344
Cable One, Inc.84,178132,414
ViacomCBS Inc., Class B3,486,06885,792
New York Times Co., Class A1,999,46674,900
JCDecaux SA33,199,14574,268
Fox Corp., Class A1,499,59946,098
  8,953,074
Industrials 10.83%  
TransDigm Group Inc.2,017,5561,125,413
Old Dominion Freight Line, Inc.14,905,717950,728
CSX Corp.10,578,673745,268

 

AMCAP Fund — Page 2 of 5

 


 

 

 

Common stocks (continued)
Industrials (continued)
SharesValue
(000)
General Dynamics Corp.4,319,845$689,836
Northrop Grumman Corp.1,486,303488,756
Equifax Inc.2,540,905360,910
Woodward, Inc2,605,600268,898
Fortive Corp.3,554,767245,848
L3Harris Technologies, Inc.1,038,822205,406
Stanley Black & Decker, Inc.1,350,639194,087
Waste Management, Inc.1,749,532193,866
Middleby Corp.21,565,301175,016
Air Lease Corp., Class A3,936,948151,021
Masco Corp.3,599,038148,712
Airbus SE, non-registered shares31,216,331148,665
Caterpillar Inc.1,008,524125,299
Boeing Co.390,234107,357
Safran SA3771,147107,132
Textron Inc.2,299,38693,355
Union Pacific Corp.564,84990,269
Waste Connections, Inc.792,38876,458
AMETEK, Inc.850,00073,100
Armstrong World Industries, Inc.601,24260,214
Westinghouse Air Brake Technologies Corp.754,69851,848
United Technologies Corp.376,89949,219
Boyd Group Services Inc.210,51232,935
Verisk Analytics, Inc.169,45526,284
Deere & Co.133,46420,884
NIBE Industrier AB, Class B3800,00012,948
  7,019,732
Consumer discretionary 8.61%  
Amazon.com, Inc.2664,6021,251,944
Alibaba Group Holding Ltd. (ADR)23,251,231676,256
Alibaba Group Holding Ltd.2,31,014,20026,391
Marriott International, Inc., Class A4,835,959599,659
NIKE, Inc., Class B5,224,119466,932
Booking Holdings Inc.2245,707416,636
Hilton Worldwide Holdings Inc.3,984,017387,246
Ross Stores, Inc.2,822,346307,015
Williams-Sonoma, Inc.3,526,677220,029
Galaxy Entertainment Group Ltd.322,880,000152,795
Wynn Resorts, Ltd.1,281,657138,393
NVR, Inc.234,591126,851
Thor Industries, Inc.1,649,755124,408
Home Depot, Inc.519,861113,247
TJX Co., Inc.1,799,519107,611
CarMax, Inc.2849,77374,194
TopBuild Corp.2661,06966,768
Helen of Troy Ltd.2399,89365,822
MGM Resorts International2,599,35963,840
Signet Jewelers Ltd.2,499,33258,284
EssilorLuxottica3417,77557,583
Chipotle Mexican Grill, Inc.249,78738,514
Industria de Diseño Textil, SA3727,40622,640
Las Vegas Sands Corp.337,41019,674
  5,582,732

 

AMCAP Fund — Page 3 of 5

 


 

 

 

Common stocks (continued)
Financials 4.81%
SharesValue
(000)
First Republic Bank5,244,689$527,458
Aon PLC, Class A2,201,612457,935
S&P Global Inc.1,490,140396,243
JPMorgan Chase & Co.2,353,844273,305
Arch Capital Group Ltd.25,269,661213,052
Kotak Mahindra Bank Ltd.39,330,769211,554
CME Group Inc., Class A804,724159,995
SVB Financial Group2718,579149,580
Berkshire Hathaway Inc., Class B2679,418140,191
London Stock Exchange Group PLC31,334,180130,503
Essent Group Ltd.2,865,234125,039
AIA Group Ltd.312,151,600117,524
HDFC Bank Ltd.34,664,55876,717
MSCI Inc.201,25859,460
The Blackstone Group Inc., Class A650,72635,035
Intercontinental Exchange, Inc.308,21827,499
Everest Re Group, Ltd.80,67019,997
  3,121,087
Energy 4.52%  
EOG Resources, Inc.19,344,3561,223,724
Concho Resources Inc.110,180,111692,451
Diamondback Energy, Inc.6,333,781392,695
Canadian Natural Resources, Ltd. (CAD denominated)10,483,498269,849
Halliburton Co.7,627,961129,370
Noble Energy, Inc.7,270,461115,091
Schlumberger Ltd.2,945,21379,786
SM Energy Co.2,799,25218,391
Southwestern Energy Co.25,797,1518,232
  2,929,589
Consumer staples 3.86%  
Costco Wholesale Corp.2,270,958638,457
Constellation Brands, Inc., Class A3,100,384534,444
Philip Morris International Inc.4,338,240355,172
Lamb Weston Holdings, Inc.3,377,097293,436
Herbalife Nutrition Ltd.27,148,758231,334
Estée Lauder Co. Inc., Class A727,085133,493
L’Oréal SA, non-registered shares3349,90694,105
Walgreens Boots Alliance, Inc.1,759,53080,516
Reckitt Benckiser Group PLC3831,97861,412
Altria Group, Inc.866,36834,975
Church & Dwight Co., Inc.424,88629,538
Chocoladefabriken Lindt & Sprüngli AG319617,016
  2,503,898
Real estate 1.53%  
American Tower Corp. REIT1,741,028394,865
Equinix, Inc. REIT522,115299,068
SBA Communications Corp. REIT758,350201,031
Alexandria Real Estate Equities, Inc. REIT465,40070,685
Crown Castle International Corp. REIT197,74728,335
  993,984

 

AMCAP Fund — Page 4 of 5

 


 

 

 

Common stocks (continued)
Materials 0.74%
SharesValue
(000)
Linde PLC1,117,571$213,467
Valvoline Inc.4,779,72293,204
Celanese Corp.870,19081,572
Air Products and Chemicals, Inc.275,92660,596
Sherwin-Williams Co.59,28430,635
  479,474
Utilities 0.55%  
NextEra Energy, Inc.1,420,477359,040
Total common stocks(cost: $40,658,562,000) 59,528,375
Short-term securities 8.01%
Money market investments 8.01%
  
Capital Group Central Cash Fund 1.63%1,451,911,2225,191,122
Total short-term securities(cost: $5,184,280,000) 5,191,122
Total investment securities 99.83%(cost: $45,842,842,000) 64,719,497
Other assets less liabilities 0.17% 108,744
Net assets 100.00% $64,828,241

 

1Represents an affiliated company as defined under the Investment Company Act of 1940.
2Security did not produce income during the last 12 months.
3Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $3,364,647,000, which represented 5.19% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.
4Rate represents the seven-day yield at 2/29/2020.

 

Key to abbreviations
ADR = American Depositary Receipts
CAD = Canadian dollars

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 Capital Group website at capitalgroup.com.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

American Funds Distributors, Inc., member FINRA.

© 2020 Capital Group. All rights reserved.

 

 

MFGEFPX-002-0420O-S73148AMCAP 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 29, 2020, 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 29, 2020, 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 9, 2020

 

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 semi-annual 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)TheCode 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 Sections302 and906 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/ Herbert Y. Poon________________
 

Herbert Y. Poon, Executive Vice President and

Principal Executive Officer

  
 Date: April 30, 2020

 

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/ Herbert Y. Poon_____________

Herbert Y. Poon, Executive Vice President and

Principal Executive Officer

 
Date: April 30, 2020

 

 

 

By___/s/ Brian D. Bullard__________________

Brian D. Bullard, Treasurer and

Principal Financial Officer

 
Date: April 30, 2020