The Investment Company of America®
Investment portfolio
September 30, 2021
unaudited
Common stocks 94.84% Energy 4.37% | Shares | Value (000) | |
Baker Hughes Co., Class A | 45,914,721 | $1,135,471 | |
Canadian Natural Resources, Ltd. (CAD denominated) | 14,276,928 | 521,999 | |
Chevron Corp. | 11,320,824 | 1,148,498 | |
ConocoPhillips | 13,731,721 | 930,599 | |
EOG Resources, Inc. | 9,330,554 | 748,964 | |
Exxon Mobil Corp. | 2,664,829 | 156,745 | |
Pioneer Natural Resources Company | 850,207 | 141,568 | |
Schlumberger, Ltd. | 1,841,594 | 54,585 | |
TC Energy Corp. (CAD denominated)1 | 5,781,213 | 278,243 | |
5,116,672 | |||
Materials 4.15% | |||
Air Products and Chemicals, Inc. | 428,186 | 109,663 | |
BHP Group PLC2 | 13,460,918 | 335,490 | |
Celanese Corp. | 1,036,663 | 156,163 | |
Dow, Inc. | 5,970,334 | 343,652 | |
Freeport-McMoRan, Inc. | 16,375,821 | 532,706 | |
International Flavors & Fragrances, Inc. | 2,485,636 | 332,379 | |
Linde PLC | 5,497,054 | 1,612,726 | |
LyondellBasell Industries NV | 2,284,810 | 214,429 | |
PPG Industries, Inc. | 380,415 | 54,403 | |
Rio Tinto PLC2 | 8,127,275 | 536,613 | |
Sherwin-Williams Company | 572,481 | 160,140 | |
Vale SA, ordinary nominative shares (ADR) | 34,244,222 | 477,707 | |
4,866,071 | |||
Industrials 9.92% | |||
Carrier Global Corp. | 31,256,608 | 1,617,842 | |
Caterpillar, Inc. | 308,677 | 59,257 | |
CSX Corp. | 26,139,489 | 777,388 | |
Cummins, Inc. | 449,001 | 100,828 | |
General Dynamics Corp. | 5,555,958 | 1,089,134 | |
General Electric Co. | 16,010,302 | 1,649,541 | |
Honeywell International, Inc. | 1,099,021 | 233,300 | |
Illinois Tool Works, Inc. | 2,470,377 | 510,454 | |
L3Harris Technologies, Inc. | 2,808,107 | 618,458 | |
Lockheed Martin Corp. | 886,274 | 305,853 | |
Norfolk Southern Corp. | 435,395 | 104,168 | |
Northrop Grumman Corp. | 1,486,515 | 535,368 | |
Otis Worldwide Corp. | 3,056,585 | 251,496 | |
Raytheon Technologies Corp. | 20,558,356 | 1,767,196 | |
Rolls-Royce Holdings PLC2,3 | 225,937,640 | 425,065 | |
Safran SA1,2 | 944,340 | 118,401 | |
Stanley Black & Decker, Inc. | 2,107,065 | 369,390 | |
TFI International, Inc. | 4,437,468 | 453,421 | |
United Rentals, Inc.3 | 847,000 | 297,238 |
The Investment Company of America — Page 1 of 9
unaudited
Common stocks (continued) Industrials (continued) | Shares | Value (000) | |
Waste Connections, Inc. | 358,079 | $45,093 | |
Waste Management, Inc. | 1,908,244 | 285,015 | |
11,613,906 | |||
Consumer discretionary 9.59% | |||
Amazon.com, Inc.3 | 1,204,299 | 3,956,170 | |
Aptiv PLC3 | 1,519,697 | 226,389 | |
D.R. Horton, Inc. | 348,922 | 29,299 | |
Darden Restaurants, Inc. | 966,822 | 146,445 | |
Dollar General Corp. | 335,355 | 71,142 | |
DoorDash, Inc., Class A3 | 225,000 | 46,346 | |
General Motors Company3 | 25,965,652 | 1,368,650 | |
Hasbro, Inc. | 6,468,812 | 577,147 | |
Hilton Worldwide Holdings, Inc.3 | 162,757 | 21,502 | |
Home Depot, Inc. | 8,104,174 | 2,660,276 | |
Kering SA2 | 36,740 | 26,130 | |
Lowe’s Companies, Inc. | 237,414 | 48,162 | |
McDonald’s Corp. | 2,584,192 | 623,075 | |
NIKE, Inc., Class B | 1,453,985 | 211,162 | |
NVR, Inc.3 | 10,384 | 49,782 | |
Royal Caribbean Cruises, Ltd.1,3 | 10,128,795 | 900,956 | |
Starbucks Corp. | 812,531 | 89,630 | |
TJX Companies, Inc. | 633,216 | 41,780 | |
VF Corp. | 1,138,142 | 76,244 | |
YUM! Brands, Inc. | 482,529 | 59,018 | |
11,229,305 | |||
Consumer staples 6.24% | |||
Altria Group, Inc. | 7,415,239 | 337,542 | |
Anheuser-Busch InBev SA/NV2 | 372,720 | 21,050 | |
British American Tobacco PLC2 | 42,733,146 | 1,490,933 | |
Constellation Brands, Inc., Class A | 130,209 | 27,434 | |
Danone SA2 | 1,500,000 | 102,382 | |
General Mills, Inc. | 5,838,794 | 349,277 | |
Keurig Dr Pepper, Inc. | 19,550,490 | 667,845 | |
Kraft Heinz Company | 733,467 | 27,006 | |
Lamb Weston Holdings, Inc. | 1,830,551 | 112,341 | |
Mondelez International, Inc. | 1,381,171 | 80,357 | |
Nestlé SA2 | 4,519,100 | 543,733 | |
PepsiCo, Inc. | 3,580,799 | 538,588 | |
Pernod Ricard SA2 | 955,217 | 208,894 | |
Philip Morris International, Inc. | 27,816,936 | 2,636,767 | |
Procter & Gamble Company | 289,069 | 40,412 | |
Reckitt Benckiser Group PLC2 | 1,586,446 | 124,170 | |
7,308,731 | |||
Health care 10.99% | |||
Abbott Laboratories | 25,229,175 | 2,980,322 | |
AbbVie, Inc. | 5,754,150 | 620,700 | |
AmerisourceBergen Corp. | 2,375,595 | 283,765 | |
Amgen, Inc. | 4,583,867 | 974,759 | |
Anthem, Inc. | 519,868 | 193,807 | |
AstraZeneca PLC2 | 611,433 | 73,607 | |
AstraZeneca PLC (ADR) | 474,784 | 28,516 | |
Daiichi Sankyo Company, Ltd.2 | 21,623,000 | 576,854 |
The Investment Company of America — Page 2 of 9
unaudited
Common stocks (continued) Health care (continued) | Shares | Value (000) | |
Danaher Corp. | 1,309,350 | $398,619 | |
DexCom, Inc.3 | 233,169 | 127,511 | |
Edwards Lifesciences Corp.3 | 1,787,845 | 202,402 | |
Eli Lilly and Company | 555,470 | 128,341 | |
Gilead Sciences, Inc. | 15,955,135 | 1,114,466 | |
GlaxoSmithKline PLC2 | 16,840,830 | 317,879 | |
Humana, Inc. | 489,862 | 190,630 | |
Medtronic PLC | 2,871,619 | 359,957 | |
Merck & Co., Inc. | 3,125,013 | 234,720 | |
Novo Nordisk A/S, Class B2 | 1,946,419 | 187,216 | |
Organon & Co.3 | 113,810 | 3,732 | |
Roche Holding AG, nonvoting non-registered shares2 | 581,262 | 212,105 | |
Stryker Corp. | 604,429 | 159,400 | |
Teva Pharmaceutical Industries, Ltd. (ADR)3 | 29,702,043 | 289,298 | |
Thermo Fisher Scientific, Inc. | 2,050,329 | 1,171,414 | |
UnitedHealth Group, Inc. | 5,031,416 | 1,965,976 | |
Zimmer Biomet Holdings, Inc. | 477,637 | 69,907 | |
12,865,903 | |||
Financials 8.91% | |||
AIA Group, Ltd.2 | 31,155,800 | 358,732 | |
American International Group, Inc. | 19,989,384 | 1,097,217 | |
Aon PLC, Class A | 988,555 | 282,499 | |
Arthur J. Gallagher & Co. | 1,726,324 | 256,618 | |
Bank of America Corp. | 2,216,381 | 94,085 | |
BlackRock, Inc. | 318,552 | 267,157 | |
Blackstone, Inc. | 839,046 | 97,615 | |
Chubb, Ltd. | 3,252,788 | 564,294 | |
Citigroup, Inc. | 16,967,715 | 1,190,794 | |
Citizens Financial Group, Inc. | 976,093 | 45,857 | |
CME Group, Inc., Class A | 919,492 | 177,811 | |
Discover Financial Services | 2,842,192 | 349,163 | |
Great-West Lifeco, Inc. (CAD denominated) | 9,365,347 | 284,968 | |
ING Groep NV1,2 | 17,308,182 | 251,214 | |
JPMorgan Chase & Co. | 12,100,698 | 1,980,763 | |
KeyCorp | 1,851,663 | 40,033 | |
KKR & Co., Inc. | 1,390,122 | 84,631 | |
Marsh & McLennan Companies, Inc. | 498,600 | 75,503 | |
Morgan Stanley | 2,890,836 | 281,307 | |
PNC Financial Services Group, Inc. | 7,754,102 | 1,517,013 | |
S&P Global, Inc. | 1,701,044 | 722,757 | |
Toronto-Dominion Bank (CAD denominated) | 843,000 | 55,807 | |
Travelers Companies, Inc. | 1,609,655 | 244,684 | |
Truist Financial Corp. | 1,836,020 | 107,683 | |
10,428,205 | |||
Information technology 18.97% | |||
Accenture PLC, Class A | 2,446,249 | 782,604 | |
Adobe, Inc.3 | 818,072 | 470,980 | |
Amphenol Corp., Class A | 9,127,984 | 668,442 | |
Analog Devices, Inc. | 1,238,770 | 207,469 | |
Apple, Inc. | 12,729,820 | 1,801,270 | |
Applied Materials, Inc. | 1,748,700 | 225,110 | |
ASML Holding NV2 | 1,077,559 | 794,885 | |
Autodesk, Inc.3 | 145,000 | 41,350 |
The Investment Company of America — Page 3 of 9
unaudited
Common stocks (continued) Information technology (continued) | Shares | Value (000) | |
Broadcom, Inc. | 8,667,069 | $4,202,922 | |
Cognizant Technology Solutions Corp., Class A | 2,200,116 | 163,271 | |
Fidelity National Information Services, Inc. | 1,062,986 | 129,344 | |
GoDaddy, Inc., Class A3 | 651,228 | 45,391 | |
Intel Corp. | 3,008,578 | 160,297 | |
KLA Corp. | 649,747 | 217,347 | |
Mastercard, Inc., Class A | 3,323,631 | 1,155,560 | |
Micron Technology, Inc. | 392,000 | 27,824 | |
Microsoft Corp. | 31,921,665 | 8,999,356 | |
NetApp, Inc. | 2,546,297 | 228,556 | |
Okta, Inc., Class A3 | 214,879 | 50,999 | |
Paychex, Inc. | 322,309 | 36,244 | |
PayPal Holdings, Inc.3 | 743,950 | 193,583 | |
QUALCOMM, Inc. | 557,014 | 71,844 | |
ServiceNow, Inc.3 | 1,739,047 | 1,082,157 | |
SS&C Technologies Holdings, Inc. | 1,403,519 | 97,404 | |
Taiwan Semiconductor Manufacturing Company, Ltd.2 | 6,309,000 | 130,098 | |
Visa, Inc., Class A | 1,039,634 | 231,578 | |
22,215,885 | |||
Communication services 16.72% | |||
Activision Blizzard, Inc. | 1,774,441 | 137,324 | |
Alphabet, Inc., Class A3 | 1,227,842 | 3,282,660 | |
Alphabet, Inc., Class C3 | 646,076 | 1,721,993 | |
Charter Communications, Inc., Class A3 | 467,296 | 339,986 | |
Comcast Corp., Class A | 75,942,351 | 4,247,456 | |
Electronic Arts, Inc. | 190,776 | 27,138 | |
Facebook, Inc., Class A3 | 17,093,722 | 5,801,438 | |
Netflix, Inc.3 | 6,354,280 | 3,878,271 | |
Omnicom Group, Inc. | 908,625 | 65,839 | |
Vodafone Group PLC2 | 47,741,565 | 72,216 | |
19,574,321 | |||
Utilities 3.10% | |||
AES Corp. | 18,120,365 | 413,688 | |
American Electric Power Company, Inc. | 1,793,169 | 145,570 | |
CenterPoint Energy, Inc. | 6,864,807 | 168,874 | |
CMS Energy Corp. | 2,538,212 | 151,607 | |
Edison International | 8,403,555 | 466,145 | |
Entergy Corp. | 1,099,893 | 109,230 | |
Exelon Corp. | 6,511,760 | 314,779 | |
NextEra Energy, Inc. | 6,802,267 | 534,114 | |
PG&E Corp.3 | 91,373,900 | 877,189 | |
Public Service Enterprise Group, Inc. | 2,140,000 | 130,326 | |
Sempra Energy | 2,489,889 | 314,971 | |
3,626,493 | |||
Real estate 1.88% | |||
Alexandria Real Estate Equities, Inc. REIT | 709,199 | 135,507 | |
American Tower Corp. REIT | 1,794,361 | 476,241 | |
Crown Castle International Corp. REIT | 4,608,128 | 798,681 | |
Equinix, Inc. REIT | 316,834 | 250,340 |
The Investment Company of America — Page 4 of 9
unaudited
Common stocks (continued) Real estate (continued) | Shares | Value (000) | |
Prologis, Inc. REIT | 876,250 | $109,908 | |
SBA Communications Corp. REIT | 1,295,681 | 428,313 | |
2,198,990 | |||
Total common stocks (cost: $59,793,307,000) | 111,044,482 | ||
Preferred securities 0.05% Financials 0.05% | |||
Fannie Mae, Series O, 7.00% noncumulative preferred shares3 | 4,815,256 | 18,154 | |
Fannie Mae, Series P, 4.50% noncumulative preferred shares3 | 565,000 | 1,107 | |
Fannie Mae, Series R, 7.625% noncumulative preferred shares3 | 2,946,415 | 6,070 | |
Fannie Mae, Series T, 8.25% noncumulative preferred shares3 | 9,922,867 | 23,914 | |
Federal Home Loan Mortgage Corp., Series V, 5.57% preferred shares3 | 1,818,512 | 3,419 | |
52,664 | |||
Total preferred securities (cost: $47,694,000) | 52,664 | ||
Convertible stocks 0.41% Consumer discretionary 0.17% | |||
Aptiv PLC, Series A, convertible preferred shares, 5.50% 2023 | 1,147,435 | 193,343 | |
Health care 0.08% | |||
Danaher Corp., Series A, cumulative convertible preferred shares, 4.75% 2022 | 48,691 | 98,746 | |
Information technology 0.10% | |||
Broadcom, Inc., Series A, cumulative convertible preferred shares, 8.00% 2022 | 72,564 | 111,168 | |
Utilities 0.06% | |||
AES Corp., convertible preferred units, 6.875% 2024 | 507,804 | 48,952 | |
NextEra Energy, Inc., convertible preferred units, 4.872% 20221 | 460,630 | 26,998 | |
75,950 | |||
Total convertible stocks (cost: $383,897,000) | 479,207 | ||
Convertible bonds & notes 0.15% Consumer discretionary 0.15% | Principal amount (000) | ||
Royal Caribbean Cruises, Ltd., convertible notes, 2.875% 20234 | $8,525 | 11,061 | |
Royal Caribbean Cruises, Ltd., convertible notes, 4.25% 2023 | 114,744 | 161,789 | |
172,850 | |||
Total convertible bonds & notes (cost: $127,321,000) | 172,850 | ||
Bonds, notes & other debt instruments 0.03% Corporate bonds, notes & loans 0.03% Consumer discretionary 0.03% | |||
Royal Caribbean Cruises, Ltd. 11.50% 20254 | 29,044 | 33,175 | |
Total bonds, notes & other debt instruments (cost: $28,361,000) | 33,175 |
The Investment Company of America — Page 5 of 9
unaudited
Short-term securities 4.66% Money market investments 4.44% | Shares | Value (000) | |
Capital Group Central Cash Fund 0.06%5,6 | 52,062,011 | $5,206,722 | |
Money market investments purchased with collateral from securities on loan 0.22% | |||
Capital Group Central Cash Fund 0.06%5,6,7 | 736,774 | 73,685 | |
Invesco Short-Term Investments Trust – Government & Agency Portfolio, Institutional Class 0.03%5,7 | 46,328,211 | 46,328 | |
Goldman Sachs Financial Square Government Fund, Institutional Shares 0.03%5,7 | 40,100,000 | 40,100 | |
BlackRock Liquidity Funds – FedFund, Institutional Shares 0.03%5,7 | 30,000,000 | 30,000 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03%5,7 | 20,000,000 | 20,000 | |
Fidelity Investments Money Market Government Portfolio, Class I 0.01%5,7 | 17,500,000 | 17,500 | |
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, Institutional Class 0.03%5,7 | 17,500,000 | 17,500 | |
RBC Funds Trust – U.S. Government Money Market Fund, RBC Institutional Class 1 0.03%5,7 | 11,200,000 | 11,200 | |
256,313 | |||
Total short-term securities (cost: $5,462,367,000) | 5,463,035 | ||
Total investment securities 100.14% (cost: $65,842,947,000) | 117,245,413 | ||
Other assets less liabilities (0.14%) | (163,850) | ||
Net assets 100.00% | $117,081,563 |
Investments in affiliates6
Value of affiliates at 1/1/2021 (000) | Additions (000) | Reductions (000) | Net realized gain (000) | Net unrealized (depreciation) appreciation (000) | Value of affiliates at 9/30/2021 (000) | Dividend income (000) | |
Common stocks 0.00% | |||||||
Consumer discretionary 0.00% | |||||||
Hasbro, Inc.8 | $709,683 | $— | $108,108 | $8,165 | $(32,593) | $— | $13,958 |
Consumer staples 0.00% | |||||||
Lamb Weston Holdings, Inc.8 | 790,669 | — | 628,485 | 219,457 | (269,300) | — | 3,614 |
Total common stocks | — | ||||||
Short-term securities 4.51% | |||||||
Money market investments 4.45% | |||||||
Capital Group Central Cash Fund 0.06%5 | 4,123,032 | 14,791,056 | 13,707,474 | 81 | 27 | 5,206,722 | 2,274 |
Money market investments purchased with collateral from securities on loan 0.06% | |||||||
Capital Group Central Cash Fund 0.06%5,7 | — | 73,6859 | 73,685 | —10 | |||
Total short-term securities | 5,280,407 | ||||||
Total 4.51% | $227,703 | $(301,866) | $5,280,407 | $19,846 |
The Investment Company of America — Page 6 of 9
unaudited
1 | All or a portion of this security was on loan. The total value of all such securities was $244,015,000, which represented .21% of the net assets of the fund. |
2 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $6,907,667,000, which represented 5.90% 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. |
3 | Security did not produce income during the last 12 months. |
4 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $44,236,000, which represented .04% of the net assets of the fund. |
5 | Rate represents the seven-day yield at 9/30/2021. |
6 | Affiliate of the fund or part of the same “group of investment companies“ as the fund, as defined under the Investment Company Act of 1940, as amended. |
7 | Security purchased with cash collateral from securities on loan. |
8 | Unaffiliated issuer at 9/30/2021. |
9 | Represents net activity. |
10 | Dividend income is included with securities lending income and is not shown in this table. |
Valuation disclosures
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers. 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.
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 & loans; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
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.
The Investment Company of America — Page 7 of 9
unaudited
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 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 facilitated by the investment adviser’s global risk management group.
The Investment Company of America — Page 8 of 9
unaudited
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 September 30, 2021 (dollars in thousands):
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Common stocks: | ||||
Energy | $5,116,672 | $— | $— | $5,116,672 |
Materials | 3,993,968 | 872,103 | — | 4,866,071 |
Industrials | 11,070,440 | 543,466 | — | 11,613,906 |
Consumer discretionary | 11,203,175 | 26,130 | — | 11,229,305 |
Consumer staples | 4,817,569 | 2,491,162 | — | 7,308,731 |
Health care | 11,498,242 | 1,367,661 | — | 12,865,903 |
Financials | 9,818,259 | 609,946 | — | 10,428,205 |
Information technology | 21,290,902 | 924,983 | — | 22,215,885 |
Communication services | 19,502,105 | 72,216 | — | 19,574,321 |
Utilities | 3,626,493 | — | — | 3,626,493 |
Real estate | 2,198,990 | — | — | 2,198,990 |
Preferred securities | 52,664 | — | — | 52,664 |
Convertible stocks | 479,207 | — | — | 479,207 |
Convertible bonds & notes | — | 172,850 | — | 172,850 |
Bonds, notes & other debt instruments | — | 33,175 | — | 33,175 |
Short-term securities | 5,463,035 | — | — | 5,463,035 |
Total | $110,131,721 | $7,113,692 | $— | $117,245,413 |
Key to abbreviations |
ADR = American Depositary Receipts |
CAD = Canadian dollars |
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.
© 2021 Capital Group. All rights reserved.
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