Bond Fund Of America N-CSRS Certified semi-annual shareholder report (management investment company)

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: 811-02444

The Bond Fund of America

(Exact Name of Registrant as Specified in Charter)

333 South Hope Street

Los Angeles, California 90071

(Address of Principal Executive Offices)

Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: December 31

Date of reporting period: June 30, 2011

Courtney R. Taylor

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

Copies to:

Michael Glazer

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

   

The Bond Fund of AmericaSM

[photo of the underside of a highway overpass]


Semi-annual report for the six months ended June 30, 2011

The Bond Fund of America seeks as high a level of current income as is consistent with preservation of capital through a diversified portfolio of bonds and other fixed-income obligations.

This fund is one of the 33 American Funds. American Funds is one of the nation’s largest mutual fund families. For 80 years, Capital Research and Management Company,SM the American Funds adviser, 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 3.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended June 30, 2011:
Class A shares	1 year			5 years			10 years
Reflecting 3.75% maximum sales charge		0.87	%		3.10	%		4.47	%

The total annual fund operating expense ratio was 0.59% for Class A shares as of the most recent fiscal year-end.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 26 to 31 for details.

Results for other share classes can be found on page 36.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Bond ratings, which typically range from Aaa/AAA (highest) to D (lowest), are assigned by credit rating agencies such as Moody’s, Standard & Poor’s and/or Fitch as an indication of an issuer’s creditworthiness. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade bonds. Investing in bonds issued outside the U.S. may be subject to additional risks. They include currency fluctuations, political and social instability, differing securities regulations and accounting standards, higher transaction costs, possible changes in taxation, illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

Fellow shareholders:

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Buoyed by a second-quarter rally in the bond market, The Bond Fund of America produced a total return of 2.8% for the first half of the fiscal year ended June 30.

The fund’s results surpassed that of its benchmark, the unmanaged Barclays Capital U.S. Aggregate Index, which returned 2.7% for the period. The fund’s peer group, the Lipper Corporate Debt A-Rated Bond Funds Average, gained 2.9%.

A significant portion of the fund’s total return came from dividend reinvestment. For the six-month period, the fund paid monthly dividends totaling roughly 20 cents a share. This amounted to an income return of 1.7% (3.4% if annualized) for the fund’s investors, whether they reinvested dividends or took income in cash. The fund’s gain in share price also added to the fund’s favorable results.

Bond market overview

The first half of 2011 encapsulated two very different market environments. In the first quarter, Treasuries remained flat as investors embraced equities and generally took on more risk. Yet by April, Treasury prices began to rally in the face of weaker-than-expected economic news, which brought investors back to fixed-income investments.

[Begin Sidebar]

Results at a glance
For periods ended June 30, 2011, with all distributions reinvested
	Total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime
										(since
										5/28/74)
The Bond Fund of America
(Class A shares)		4.76	%		3.90	%		4.87	%		8.39	%
Barclays Capital U.S. Aggregate
Index1		3.90			6.52			5.74			8.34
Lipper Corporate Debt A-Rated
Bond Funds Average2		5.09			5.69			5.21			8.31
1 The unmanaged Barclays Capital U.S. Aggregate Index began on January 1, 1976. From May 28, 1974, through December 31, 1975, the Barclays Capital U.S. Government/Credit Index was used. Results do not reflect the effect of sales charges, commissions, account fees, expenses or taxes.
2 Source: Lipper. Results of the Lipper average do not reflect the effect of sales charges, account fees or taxes.

[End Sidebar]

Through the first quarter, lower quality bonds saw the most gains, particularly among high-yield issues. With interest rates still at historically low levels, issuance across most bond market sectors was robust. By the mid-point of the second quarter, bond prices improved, led by Treasuries, which along with other U.S. government debt constituted 23% of the fund’s total portfolio as of June 30, 2011. The gains from the first quarter were sustained through the six-month period as well.

Corporate bonds, which accounted for roughly 30% of the portfolio at the end of the period, saw steady returns through the period, with lower quality bonds predominating early on, and higher quality issues gaining favor as the six-month period ended. Overall, lower quality corporate bonds saw the best results during the period.

Mortgage-backed securities, which made up about 35% of the fund as of June 30, saw strong returns. Despite low interest rates, the prepayment risk inherent in mortgage securities is currently low, as many homeowners are finding it difficult to refinance. Commercial mortgage-backed securities were among the best returning asset classes during the first six months of 2011.

Inside the portfolio

During the period, The Bond Fund of America’s portfolio counselors focused on generating income for investors, with an eye toward preserving capital should economic conditions improve.

To that end, the fund reduced its exposure to U.S. Treasuries, from 27% at the start of the period to 20% as of June 30, 2011. In turn, the fund’s exposure to mortgages and agencies increased, to 35% and 3% respectively. Many of these mortgage and agency securities are backed, explicitly or implicitly, by the full faith and credit of the U.S. government, and provide a better yield than Treasuries.

The fund’s overall exposure to investment-grade (BBB and above) corporate debt remained roughly unchanged during the period, with corporates making up 30% of the portfolio. However, the quality of the fund’s corporate bonds increased slightly — the percentage of BBB-rated issues fell from 14% to 13% of the portfolio.

Yet during the quarter, it was the fund’s holdings in high-yield bonds — making up 6.2% of the portfolio — that saw the best returns during the period, as our intensive research continued to identify attractive securities in that market.

Changes to other classes of holdings were relatively minor. A summary of the fund’s portfolio as of June 30, 2011, can be found beginning on page 4.

Looking ahead

In early August, the White House and Congress agreed to raise the nation’s debt ceiling while implementing a number of budget cuts, averting a crisis that was most of the summer in the making. Shortly thereafter, Standard & Poor’s reduced the nation’s credit rating from AAA to AA+. The other two national rating agencies, Fitch and Moody’s, reaffirmed the nation’s AAA rating. The S&P downgrade reflects serious issues in the United States with regard to high debt levels and an inability within the political system to make tough decisions. We are hopeful that the debt-ceiling agreement now in place will result in meaningful decisions about the nation’s debt and budget in the future. Despite the downgrade, we feel there is only a very remote possibility that the United States will ever miss a payment on its debt.

There are other issues facing the bond markets as well, such as weaker domestic economic growth and a deepening debt crisis in Europe. All of our portfolio counselors and investment analysts are working hard to assess the impact of these events on The Bond Fund of America, today and in the future.

An update on your dividends

We would like to note a slight change in the way your fund now pays dividends. Beginning with the April dividend payment, The Bond Fund of America began paying monthly dividends based on current earnings rather than a fixed monthly amount per share. As a result, monthly dividends will vary from month to month. This policy change, which applies to all share classes, simply aligns the fund with current industry practices.

We thank you for the opportunity to discuss the fund’s results, and look forward to reporting to you again at the end of this year.

Cordially,

/s/ Paul G. Haaga, Jr.

Paul G. Haaga, Jr.

Vice Chairman of the Board

/s/ John H. Smet

John H. Smet

President

August 11, 2011

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

The fund’s 30-day yield for Class A shares as of July 31, 2011, calculated in accordance with the U.S. Securities and Exchange Commission formula, was 2.64%. The fund’s distribution rate for Class A shares as of that date was 3.33%. Both reflect the 3.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

Summary investment portfolio

June 30, 2011

unaudited

The following 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.

[begin pie chart]

Portfolio by type of security	(percent of net assets)
Mortgage-backed obligations		34.65	%
Corporate bonds & notes		29.58
Bonds & notes of U.S. government & government agencies		23.18
Bonds & notes of governments & government agencies outside the U.S.		6.20
Other bonds & notes		1.44
Other securities		0.32
Short-term securities & other assets less liabilities		4.63

[end pie chart]

Portfolio quality summary	(percent of net assets)*
U.S. government obligations†		22.0	%
Federal agencies		30.1
Aaa/AAA		6.6
Aa/AA		6.3
A		10.7
Baa/BBB		12.9
Ba/BB		2.1
B		2.4
Caa/CCC or less		1.7
Unrated		0.6
Short-term securities & other assets less liabilities		4.6
*Bond ratings, which typically range from Aaa/AAA (highest) to D (lowest), are assigned by credit rating agencies such as Moody's, Standard & Poor's and/or Fitch as an indication of an issuer's creditworthiness. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with fund's investment policies. Securities in the "unrated" category (above) have not been rated by a rating agency; however, the investment adviser performs its own credit analysis and assigns comparable ratings that are used for compliance with the fund's investment policites.
†These securities are guaranteed by the full faith and credit of the United States government.

	Principal						Percent
	amount			Value			of net
Bonds & notes - 95.05%		(000	)		(000	)	assets
Mortgage-backed obligations - 34.65%
Federal agency mortgage-backed obligations (1) - 29.18%
Fannie Mae:
3.50% 2025	$	89,095		$	90,882
4.50% 2026		123,315			130,752
6.00% 2038		82,712			91,015
6.50% 2038		115,248			130,598
4.00% 2040		175,614			175,917
4.50% 2040		87,395			90,575
4.00% 2041		172,637			173,097
4.00% 2041		163,250			163,301
4.00% 2041		112,766			112,961
4.50% 2041		201,680			208,707
4.50% 2041		159,675			165,499
4.50% 2041		119,000			123,340
5.00% 2041		693,975			737,457
5.50% 2041		328,107			354,817
6.00% 2041		139,426			153,173
0%-11.614% 2012-2047 (2)		5,069,984			5,261,116			24.60	%
Freddie Mac:
4.50% 2041		84,687			87,889
0%-7.50% 2017-2047 (2)		930,293			999,128			3.28
Government National Mortgage Assn.:
4.00% 2040		125,230			127,859
0%-10.00% 2021-2041		254,949			264,578			1.18
Other securities					38,821			.12
					9,681,482			29.18
Other mortgage-backed securities - 5.47%
Other securities					1,818,151			5.47
Total mortgage-backed obligations					11,499,633			34.65
Corporate bonds & notes - 29.58%
Financials - 10.02%
JPMorgan Chase & Co. 2.05%-4.625% 2014-2021		215,862			216,917			.66
Citigroup Inc. 1.111%-8.50% 2013-2020 (2)		169,460			178,367			.54
Other securities					2,923,076			8.82
					3,318,360			10.02
Consumer discretionary - 3.36%
Other securities					1,115,701			3.36
Energy - 2.81%
Other securities					931,054			2.81
Industrials - 2.67%
Other securities					884,642			2.67
Health care - 2.50%
Other securities					830,227			2.50
Utilities - 2.44%
Other securities					811,108			2.44
Telecommunication services - 2.31%
Other securities					767,375			2.31
Consumer staples - 1.52%
Coca-Cola Co. 1.50%-3.15% 2015-2020		35,945			35,065			.10
Other securities					470,002			1.42
					505,067			1.52
Information technology - 1.00%
Other securities					332,027			1.00
Materials - 0.95%
Other securities					313,752			.95
Total corporate bonds & notes					9,809,313			29.58
Bonds & notes of U.S. government & government agencies - 23.18%
U.S. Treasury:
1.125% 2011		100,000			100,467
1.00% 2012		155,250			156,290
4.875% 2012		161,775			166,552
1.125% 2013  (3)		135,410			137,172
1.375% 2013		128,900			130,962
4.25% 2013		134,112			144,777
1.25% 2014		185,108			187,842
1.875% 2014		157,360			162,277
2.00% 2016		271,740			277,058
2.125% 2016		87,000			89,073
2.375% 2016		150,000			155,210
7.50% 2016		115,500			149,059
4.625% 2017		128,000			146,054
3.75% 2018		102,600			111,165
3.50% 2020		98,700			103,053
8.00% 2021		75,840			108,066
7.125% 2023		103,050			139,729
6.875% 2025		122,850			165,356
4.50% 2036		220,457			228,056
4.25% 2039		162,305			159,273
4.375% 2039		153,700			153,786
3.875% 2040		172,750			158,179
4.625% 2040		483,790			504,395
0.375%-9.875% 2011-2041 (4)		2,545,664			2,734,187			19.79
Fannie Mae 0.625%-5.375% 2012-2016		247,270			252,424			.76
Freddie Mac 1.125%-5.50% 2011-2016		211,680			220,133			.66
Federal Home Loan Bank 1.75%-4.50% 2012-2013		180,500			188,687			.57
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 0.247%-2.25% 2012-2012 (2)		117,070			118,369			.36
Other securities					343,760			1.04
					7,691,411			23.18
Bonds & notes of governments & government agencies outside the U.S. - 6.20%
Other securities					2,057,640			6.20
Asset-backed obligations - 1.04%
Other securities					343,882			1.04
Municipals - 0.40%
Other securities					132,988			.40
Total bonds & notes (cost: $30,408,743,000)					31,534,867			95.05
							Percent
				Value			of net
Convertible securities - 0.05%					(000	)	assets
Information technology - 0.05%
Other securities					15,251			.05
Total convertible securities (cost: $12,011,000)					15,251			.05
							Percent
				Value			of net
Preferred securities - 0.25%					(000	)	assets
Other - 0.25%
Other securities					83,332			.25
Total preferred securities (cost: $71,404,000)					83,332			.25
							Percent
				Value			of net
Common stocks - 0.02%					(000	)	assets
Other - 0.02%
Other securities					8,153			.02
Total common stocks (cost: $8,663,000)					8,153			.02
							Percent
				Value			of net
Warrants - 0.00%					(000	)	assets
Telecommunication services - 0.00%
Other securities					622			.00
Total warrants (cost: $11,276,000)					622			.00
	Principal						Percent
	amount			Value			of net
Short-term securities - 11.48%		(000)			(000	)	assets
Freddie Mac 0.08%-0.20% due 7/27/2011-4/17/2012	$	1,042,306		$	1,041,483			3.14
Fannie Mae 0.12%-0.23% due 8/22/2011-6/1/2012		782,520			782,058			2.36
Coca-Cola Co. 0.13%-0.24% due 7/1-11/3/2011 (5)		473,150			473,051			1.43
CAFCO, LLC 0.12%-0.20% due 7/5-9/28/2011		159,600			159,574
Ciesco LLC 0.18%-0.20% due 8/25-9/15/2011		81,800			81,782			.73
Procter & Gamble International Funding S.C.A. 0.08% due 7/15/2011 (5)		219,000			218,993			.66
Falcon Asset Securitization Co., LLC 0.09%-0.13% due 7/7-7/18/2011 (5)		107,600			107,593
Jupiter Securitization Co., LLC 0.19%-0.28% due 7/5-8/1/2011 (5)		68,500			68,496			.53
Wal-Mart Stores, Inc. 0.07%-0.08% due 7/26-8/9/2011 (5)		163,000			162,989			.49
Federal Home Loan Bank 0.13%-0.21% due 7/8/2011-2/23/2012		162,850			162,737			.49
Straight-A Funding LLC 0.16%-0.23% due 7/1-9/8/2011 (5)		136,827			136,802			.41
Federal Farm Credit Banks 0.18% due 4/18/2012		100,000			99,841			.30
U.S. Treasury Bills 0.151%-0.291% due 7/14/2011-2/9/2012		76,925			76,900			.23
Other securities					235,763			.71
Total short-term securities (cost: $3,807,856,000)					3,808,062			11.48
Total investment securities (cost: $34,319,953,000)					35,450,287			106.85
Other assets less liabilities					(2,271,406	)		(6.85	)
Net assets				$	33,178,881			100.00	%

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $68,532,000, which represented .21% of the net assets of the fund. Some of these securities (with an aggregate value of $15,169,000, which represented .05% of the net assets of the fund) may be subject to legal or contractual restrictions on resale.

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

(1) Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

(2) Coupon rate may change periodically.

(3) A portion of this security was pledged as collateral for losses on unsettled forward currency contracts with certain counterparties. The total value of pledged collateral was $3,324,000, which represented .01% of the net assets of the fund.

(4) Index-linked bond whose principal amount moves with a government price index.

(5) Acquired in a transaction exempt from registration under 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, including those in "Other securities," was $4,920,004,000, which represented 14.83% of the net assets of the fund.

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities			unaudited
at June 30, 2011	(dollars in thousands)
Assets:
Investment securities, at value (cost: $34,319,953)			$	35,450,287
Cash				77
Unrealized appreciation on open forward currency contracts				296
Receivables for:
Sales of investments	$	944,611
Sales of fund's shares		32,926
Closed forward currency contracts		634
Interest		280,384		1,258,555
				36,709,215
Liabilities:
Unrealized depreciation on open forward currency contracts				5,231
Payables for:
Purchases of investments		3,394,228
Repurchases of fund's shares		90,406
Dividends on fund's shares		17,027
Closed forward currency contracts		2,308
Investment advisory services		5,864
Services provided by related parties		14,241
Trustees' deferred compensation		527
Other		502		3,525,103
Net assets at June 30, 2011			$	33,178,881
Net assets consist of:
Capital paid in on shares of beneficial interest			$	35,597,051
Undistributed net investment income				23,972
Accumulated net realized loss				(3,568,015	)
Net unrealized appreciation				1,125,873
Net assets at June 30, 2011			$	33,178,881

	(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) - unlimited shares authorized (2,693,042 total shares outstanding)
		Net assets		Shares outstanding		Net asset value per share
Class A		$	23,363,373		1,896,343	$	12.32
Class B			703,318		57,086		12.32
Class C			2,545,509		206,612		12.32
Class F-1			1,650,051		133,930		12.32
Class F-2			331,745		26,927		12.32
Class 529-A			921,753		74,816		12.32
Class 529-B			61,225		4,970		12.32
Class 529-C			428,922		34,814		12.32
Class 529-E			49,355		4,006		12.32
Class 529-F-1			55,831		4,532		12.32
Class R-1			93,184		7,564		12.32
Class R-2			787,074		63,885		12.32
Class R-3			977,039		79,304		12.32
Class R-4			710,495		57,669		12.32
Class R-5			266,633		21,642		12.32
Class R-6			233,374		18,942		12.32
See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended June 30, 2011	(dollars in thousands)
Investment income:
Income:
Interest (net of non-U.S. taxes of $206)				$	688,884
Fees and expenses*:
Investment advisory services	$	36,181
Distribution services		58,291
Transfer agent services		16,958
Administrative services		9,281
Reports to shareholders		765
Registration statement and prospectus		384
Trustees' compensation		220
Auditing and legal		88
Custodian		380
State and local taxes		266
Other		873			123,687
Net investment income					565,197
Net realized gain and unrealized appreciation
on investments, forward currency contracts and currency:
Net realized gain (loss) on:
Investments		298,970
Forward currency contracts		(37,113	)
Currency transactions		2,110			263,967
Net unrealized appreciation (depreciation) on:
Investments		75,947
Forward currency contracts		(5,076	)
Currency translations		209			71,080
Net realized gain and unrealized appreciation
on investments, forward currency contracts and currency					335,047
Net increase in net assets resulting
from operations				$	900,244
*Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
Statements of changes in net assets
		(dollars in thousands)
	Six months			Year ended
	ended June 30,			December 31,
		2011*			2010
Operations:
Net investment income	$	565,197		$	1,372,476
Net realized gain on investments, forward currency contracts and currency transactions		263,967			677,271
Net unrealized appreciation on investments, forward currency contracts and currency translations		71,080			709,970
Net increase in net assets resulting from operations		900,244			2,759,717
Dividends paid or accrued to shareholders from net investment income		(553,389	)		(1,450,072	)
Net capital share transactions		(3,788,714	)		(4,283,059	)
Total decrease in net assets		(3,441,859	)		(2,973,414	)
Net assets:
Beginning of period		36,620,740			39,594,154
End of period (including undistributed
net investment income: $23,972 and $12,164, respectively)	$	33,178,881		$	36,620,740
*Unaudited.
See Notes to Financial Statements

Notes to financial statements

                                                                                                           unaudited

1.   Organization

The Bond Fund of America (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks as high a level of current income as is consistent with preservation of capital through a diversified portfolio of bonds and other fixed-income obligations. Effective March 1, 2011, the fund reorganized from a Maryland corporation to a Delaware statutory trust in accordance with a proposal approved by shareholders on November 24, 2009.

The fund has 16 share classes consisting of five retail share classes, five 529 college savings plan share classes and six retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The six retirement plan share classes (R-1, R-2, R-3, R-4, R-5 and R-6) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 3.75%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4, R-5 and R-6	None	None	None

*Class B and 529-B shares of the fund are not available for purchase.

Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds.Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.

2.   Significant accounting policies

The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, 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. Interest income is recognizedon 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) are allocated daily among the various share classes based on the relative value of their settled shares. Realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders – Dividends paid to shareholders are declared daily after the determination of the fund’s net investment income and are paid to shareholders monthly. Distributions paid to shareholders are recorded on the ex-dividend date.

Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect 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. On the accompanying financial statements, 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. 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.

Mortgage dollar rolls – The fund may enter into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Risks may arise due to the delayed payment date and the potential inability of counterparties to complete the transaction. Mortgage dollar rolls are accounted for as purchase and sale transactions, which may increase the fund’s portfolio turnover rate.

Loan transactions – The fund may enter into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder's portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan's interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.

3.   Valuation

The fund’s investments are reported at fair value as defined by accounting principles generally accepted in the United States of America. The fund generally determines the net asset value of each share class as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs – The fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.

Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained as of approximately 3:00 p.m. New York time, or relevant local time for securities trading outside U.S. time zones,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
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
Municipal securities	Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts

Where the investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (or bid prices, if asked 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 on the previous page for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.Forward currency contracts are valued at the mean of representative quoted bid and asked prices, generally based on prices supplied by one or more pricing vendors.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under guidelines adopted by authority of the fund's board of trustees. Various inputs may be reviewed in order to make a good faith determination of a security’s fair value. These inputs include, but are not limited to, 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. 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.

Classifications - The fund classifies its 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. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.The following tables present the fund’s valuation levels as of June 30, 2011 (dollars in thousands):

Investment securities:	Level 1		Level 2			Level 3		Total
Bonds & notes:
Mortgage-backed obligations	$	-	$	11,454,581		$	45,052	$	11,499,633
Corporate bonds & notes		-		9,797,660			11,653		9,809,313
Bonds & notes of U.S. government & government agencies		-		7,691,411			-		7,691,411
Bonds & notes of governments & government agencies outside the U.S.		-		2,057,640			-		2,057,640
Asset-backed obligations		-		343,882			-		343,882
Municipals		-		132,988			-		132,988
Convertible securities		-		15,251			-		15,251
Preferred securities		83,332		-			-		83,332
Common stocks		804		-			7,349		8,153
Warrants		-		622			-		622
Short-term securities		-		3,808,062			-		3,808,062
Total	$	84,136	$	35,302,097		$	64,054	$	35,450,287
Forward currency contracts(1):	Level 1		Level 2			Level 3		Total
Unrealized appreciation on open forward currency contracts	$	-	$	296		$	-	$	296
Unrealized depreciation on open forward currency contracts		-		(5,231	)		-		(5,231	)
Total	$	-	$	(4,935	)	$	-	$	(4,935	)
(1)Forward currency contracts are not included in the investment portfolio.

The following table reconciles the valuation of the fund's Level 3 investment securities and related transactions for the six months ended June 30, 2011 (dollars in thousands):
	Beginning value at 1/1/2011		Transfers into Level 3(2)		Purchases		Sales			Net realized loss(3)			Unrealized appreciation(3)		Transfers out of Level 3(2)			Ending value at 6/30/2011
Investment securities	$	74,518	$	42,575	$	5,494	$	(57,222	)	$	(3,857	)	$	2,738	$	(192	)	$	64,054
Net unrealized appreciation during the period on Level 3 investment securities held at June 30, 2011 (dollars in thousands)(3):													$	620
(2)Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred.
(3)Net realized loss and unrealized appreciation are included in the related amounts on investments in the statement of operations.

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 securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.

Investing in bonds — Rising interest rates will generally cause the prices of bonds and other debt securities to fall. In addition, falling interest rates may cause an issuer to redeem, call or refinance a security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality debt securities.

Investing in mortgage-backed and asset-backed securities — Many types of bonds and other debt securities, including mortgage-backed securities, are subject to prepayment risk, as well as the risks associated with investing in debt securities in general. If interest rates fall and the loans underlying these securities are prepaid faster than expected, the fund may have to reinvest the prepaid principal in lower yielding securities, thus reducing the fund’s income. Conversely, if interest rates increase and the loans underlying the securities are prepaid more slowly than expected, the expected duration of the securities may be extended. This reduces the potential for the fund to invest the principal in higher yielding securities.

Investing in securities backed by the U.S. government — Securities backed by the U.S. Treasury or the full faith and credit of the U.S. government are guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest rates. Securities issued by government sponsored entities and federal agencies and instrumentalities are neither issued nor guaranteed by the U.S. government.

Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value or sell.

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of political, social or economic developments in the country or region in which the issuer operates. These securities may also lose value due to changes in the exchange rate of the country’s currency against the U.S. dollar. 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 settlement and accounting practices and different regulatory, legal and reporting standards than those in the U.S. These risks may be heightened in connection with investments in developing countries.

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives.

5.   Taxation and distributions

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

As of and during the period ended June 30, 2011, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2007 and by state tax authorities and tax authorities outside the U.S. for tax years before 2006.

Non-U.S. taxation – Interest income is recorded net of non-U.S. taxes paid.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold; paydowns on fixed-income securities; and net capital losses.The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:

	(dollars in thousands)
Undistributed ordinary income				$	25,126
Capital loss carryforwards*:
Expiring 2014	$	(265	)
Expiring 2015		(218	)
Expiring 2016		(841,762	)
Expiring 2017		(2,938,200	)		(3,780,445	)
*The capital loss carryforwards will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration dates. The fund will not make distributions from capital gains while capital loss carryforwards remain.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 31, 2010, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of June 30, 2011, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	$	1,253,207
Gross unrealized depreciation on investment securities		(177,507	)
Net unrealized appreciation on investment securities		1,075,700
Cost of investment securities		34,374,587

Tax-basis distributions paid or accruedto shareholders from ordinary income were as follows (dollars in thousands):

Share class	Six months ended June 30, 2011		Year ended December 31, 2010
Class A	$	404,062	$	1,039,685
Class B		9,992		32,389
Class C		33,761		95,182
Class F-1		28,580		83,521
Class F-2		6,460		21,639
Class 529-A		14,703		31,721
Class 529-B		800		2,435
Class 529-C		5,191		12,078
Class 529-E		720		1,574
Class 529-F-1		948		2,000
Class R-1		1,221		3,106
Class R-2		10,052		25,249
Class R-3		14,926		38,239
Class R-4		12,142		30,505
Class R-5		5,517		18,226
Class R-6		4,314		12,523
Total	$	553,389	$	1,450,072

6.   Fees and transactions with related parties 

Capital Research and Management Company ("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.

Investment advisory services – The fund has an investment advisory and service agreement with CRMC that providesfor monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.30% on the first $60 million of daily net assets and decreasing to 0.11% on such assets in excess of $36 billion. The agreement also provides for monthly fees, accrued daily, based on a series of decreasing rates beginning with 2.25% on the first $8,333,333 of the fund's monthly gross income and decreasing to 1.75% on such income in excess of $41,666,667. For the six months ended June 30, 2011, the investment advisory services fee was $36,181,000, which was equivalent to an annualized rate of 0.212% of average dailynet 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 described below:

Distribution services – The fund has plans of distribution for all share classes, except Classes F-2, R-5 and R-6. 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 below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.All share classes with a plan may use up to 0.25%of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Classes A and 529-A, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25%is not exceeded. As of June 30, 2011, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.

Share class	Currently approved limits	Plan limits
Class A	0.25%	0.25%
Class 529-A	0.25	0.50
Classes B and 529-B	1.00	1.00
Classes C, 529-C and R-1	1.00	1.00
Class R-2	0.75	1.00
Classes 529-E and R-3	0.50	0.75
Classes F-1, 529-F-1 and R-4	0.25	0.50

Transfer agent services –The fund hasa transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC as described below.

Administrative services – The fund has an administrative services agreement with CRMC for all share classes, except Classes A and B, to provide certain services, including transfer agent and recordkeeping services; coordinating, monitoring, assisting and overseeing third-party service providers; and educating advisers and shareholders about the impact of market-related events, tax laws affecting investments, retirement plan restrictions, exchange limitations and other related matters. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services.

Each 529 share class is subject to an additional administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan.The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described above for the six months ended June 30, 2011, were as follows (dollars in thousands):

					Administrative services
Share class	Distribution services		Transfer agent services		CRMC administrative services		Transfer agent services		Commonwealth of Virginia administrative services
Class A	$	28,530	$	16,423	Not applicable		Not applicable		Not applicable
Class B		3,896		535	Not applicable		Not applicable		Not applicable
Class C		13,352	Included in administrative services		$	1,987	$	374	Not applicable
Class F-1		2,133				1,286		83	Not applicable
Class F-2	Not applicable					239		14	Not applicable
Class 529-A		1,001				459		97	$	446
Class 529-B		325				34		13		33
Class 529-C		2,095				215		63		210
Class 529-E		120				23		5		24
Class 529-F-1		-				28		6		27
Class R-1		479				61		17	Not applicable
Class R-2		2,985				582		1,124	Not applicable
Class R-3		2,467				715		361	Not applicable
Class R-4		908				529		14	Not applicable
Class R-5	Not applicable					149		4	Not applicable
Class R-6	Not applicable					58		1	Not applicable
Total	$	58,291	$	16,958	$	6,365	$	2,176	$	740

Trustees’ deferred compensation – Trustees who are unaffiliated with CRMCmay 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 $220,000, shown on the accompanying financial statements, includes $158,000 in current fees (either paid in cash or deferred) and a net increase of $62,000 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, AFS and AFD. No affiliated officers or trustees received any compensation directly from the fund.

7.   Capital share transactions

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

	Sales*				Reinvestments of dividends and distributions				Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Six months ended June 30, 2011
Class A	$	1,359,906		111,014	$	367,052		29,919	$	(4,235,131	)		(346,371	)	$	(2,508,173	)		(205,438	)
Class B		13,811		1,127		9,943		810		(219,175	)		(17,927	)		(195,421	)		(15,990	)
Class C		139,125		11,356		30,004		2,445		(581,980	)		(47,611	)		(412,851	)		(33,810	)
Class F-1		219,466		17,932		26,244		2,139		(478,914	)		(39,174	)		(233,204	)		(19,103	)
Class F-2		61,376		5,011		4,812		392		(139,769	)		(11,419	)		(73,581	)		(6,016	)
Class 529-A		84,342		6,885		14,169		1,155		(84,171	)		(6,883	)		14,340			1,157
Class 529-B		2,301		188		769		63		(15,136	)		(1,239	)		(12,066	)		(988	)
Class 529-C		38,964		3,182		5,006		408		(47,038	)		(3,849	)		(3,068	)		(259	)
Class 529-E		4,561		372		694		57		(4,919	)		(402	)		336			27
Class 529-F-1		7,571		618		911		74		(7,062	)		(577	)		1,420			115
Class R-1		9,176		749		1,172		96		(17,480	)		(1,426	)		(7,132	)		(581	)
Class R-2		109,355		8,928		9,630		785		(171,929	)		(14,055	)		(52,944	)		(4,342	)
Class R-3		139,151		11,362		14,321		1,167		(239,912	)		(19,615	)		(86,440	)		(7,086	)
Class R-4		119,354		9,753		11,662		951		(196,274	)		(16,035	)		(65,258	)		(5,331	)
Class R-5		49,629		4,055		5,183		423		(160,184	)		(13,140	)		(105,372	)		(8,662	)
Class R-6		32,955		2,695		4,163		339		(86,418	)		(7,073	)		(49,300	)		(4,039	)
Total net increase
(decrease)	$	2,391,043		195,227	$	505,735		41,223	$	(6,685,492	)		(546,796	)	$	(3,788,714	)		(310,346	)
Year ended December 31, 2010
Class A	$	4,624,435		380,821	$	964,456		79,244	$	(8,217,301	)		(675,397	)	$	(2,628,410	)		(215,332	)
Class B		89,940		7,395		30,081		2,474		(478,979	)		(39,446	)		(358,958	)		(29,577	)
Class C		560,234		46,123		85,538		7,029		(1,008,776	)		(82,905	)		(363,004	)		(29,753	)
Class F-1		598,525		49,211		77,018		6,331		(1,217,084	)		(99,820	)		(541,541	)		(44,278	)
Class F-2		178,617		14,696		16,299		1,342		(550,601	)		(45,543	)		(355,685	)		(29,505	)
Class 529-A		213,708		17,574		31,601		2,595		(131,217	)		(10,771	)		114,092			9,398
Class 529-B		9,746		802		2,412		198		(28,978	)		(2,378	)		(16,820	)		(1,378	)
Class 529-C		112,286		9,237		12,025		987		(78,819	)		(6,469	)		45,492			3,755
Class 529-E		12,886		1,059		1,567		129		(7,601	)		(625	)		6,852			563
Class 529-F-1		17,020		1,400		1,989		163		(11,236	)		(923	)		7,773			640
Class R-1		31,352		2,580		3,071		252		(41,182	)		(3,393	)		(6,759	)		(561	)
Class R-2		290,256		23,876		25,004		2,054		(304,919	)		(25,034	)		10,341			896
Class R-3		357,644		29,422		37,864		3,111		(469,110	)		(38,562	)		(73,602	)		(6,029	)
Class R-4		304,919		25,093		30,205		2,481		(380,651	)		(31,331	)		(45,527	)		(3,757	)
Class R-5		171,239		14,109		18,013		1,480		(286,498	)		(23,505	)		(97,246	)		(7,916	)
Class R-6		105,738		8,701		12,522		1,028		(98,317	)		(8,078	)		19,943			1,651
Total net increase
(decrease)	$	7,678,545		632,099	$	1,349,665		110,898	$	(13,311,269	)		(1,094,180	)	$	(4,283,059	)		(351,183	)
*Includes exchanges between share classes of the fund.

8.   Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $13,097,939,000 and $14,213,264,000, respectively, during the six months ended June 30, 2011.

9.   Forward currency contracts

The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund enters into these contracts to manage its exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates. To reduce these risks, the fund has entered into a collateral program with certain counterparties. The program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty.The purpose of the collateral is to cover potential losses that could occur in the event that either party can not meet their contractual obligations.

On a daily basis, the fund values forward currency contracts based on the applicable exchange rate and records unrealized appreciation or depreciation for open forward currency contracts in the statement of assets and liabilities. The fund records realized gains or losses at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the statement of operations.

As of June 30, 2011, the fund had open forward currency contracts to sell currencies, as shown on the following table. The open forward currency contracts shown are generally indicative of the level of activity over the prior 12-month period.

					(amounts in thousands)
	Settlement		Contract amount				Unrealized (depreciation) appreciation at 6/30/2011
	date	Counterparty	Receive		Deliver
Sales:
Australian dollars	8/10/2011	UBS AG	$	11,586	$	A10,920	$	(63	)
Brazilian reais	7/15/2011	JPMorgan Chase	$	37,505	BRL60,000			(805	)
British pounds	8/16/2011	UBS AG	$	18,445	£	11,330		272
Danish kroner	7/28/2011	Citibank	$	18,903	DKr99,500			(429	)
Danish kroner	8/10/2011	UBS AG	$	49,272	DKr256,085			(466	)
Euros	7/8/2011	JPMorgan Chase	$	1,459	€	1,000		9
Euros	7/12/2011	Barclays Bank PLC	$	40,651	€	28,230		(274	)
Euros	7/12/2011	HSBC Bank	$	7,232	€	4,960		(62	)
Euros	7/14/2011	Barclays Bank PLC	$	2,738	€	1,895		(9	)
Euros	7/15/2011	Bank of New York Mellon	$	2,162	€	1,500		(13	)
Euros	7/27/2011	Barclays Bank PLC	$	5,471	€	3,850		(108	)
Euros	7/29/2011	Bank of New York Mellon	$	2,980	€	2,100		(63	)
Euros	8/11/2011	Barclays Bank PLC	$	3,146	€	2,200		(41	)
Euros	8/24/2011	UBS AG	$	163	€	115		(3	)
Euros	8/25/2011	HSBC Bank	$	350	€	250		(11	)
Euros	9/15/2011	UBS AG	$	23,152	€	16,120		(172	)
Euros	9/16/2011	UBS AG	$	5,234	€	3,625		(10	)
Euros	9/26/2011	UBS AG	$	35,156	€	24,480		(254	)
Euros	9/28/2011	UBS AG	$	38,613	€	27,250		(801	)
Malaysian ringgits	7/29/2011	JPMorgan Chase	$	21,175	MYR65,000			(303	)
Polish zloty	9/15/2011	UBS AG	$	4,175	PLN11,500			15
South Korean won	7/29/2011	JPMorgan Chase	$	75,773	KRW82,486,000			(1,344	)
							$	(4,935	)

Financial highlights(1)

				Income (loss) from investment operations(2)
		Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Net asset value, end of period		Total return(3)(4)			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers(4)			Ratio of net income to average net assets(4)
Class A:	Six months ended 6/30/2011(5)	$	12.19	$	.20	$	.13		$	.33		$	(.20	)	$	12.32		2.76	%	$	23,363		.61	%(6)		.61	%(6)		3.43	%(6)
	Year ended 12/31/2010		11.80		.44		.41			.85			(.46	)		12.19		7.30			25,627		.59			.59			3.61
	Year ended 12/31/2009		10.76		.53		1.03			1.56			(.52	)		11.80		14.91			27,349		.65			.65			4.74
	Year ended 12/31/2008		13.06		.70		(2.25	)		(1.55	)		(.75	)		10.76		(12.24	)		21,987		.65			.63			5.76
	Year ended 12/31/2007		13.32		.69		(.25	)		.44			(.70	)		13.06		3.37			24,898		.63			.61			5.22
	Year ended 12/31/2006		13.22		.67		.09			.76			(.66	)		13.32		5.88			20,670		.65	��		.62			5.07
Class B:	Six months ended 6/30/2011(5)		12.19		.16		.13			.29			(.16	)		12.32		2.36			703		1.37	(6)		1.37	(6)		2.67	(6)
	Year ended 12/31/2010		11.80		.35		.41			.76			(.37	)		12.19		6.50			891		1.35			1.35			2.88
	Year ended 12/31/2009		10.76		.45		1.03			1.48			(.44	)		11.80		14.06			1,212		1.40			1.40			4.05
	Year ended 12/31/2008		13.06		.61		(2.25	)		(1.64	)		(.66	)		10.76		(12.88	)		1,227		1.40			1.37			5.02
	Year ended 12/31/2007		13.32		.59		(.25	)		.34			(.60	)		13.06		2.61			1,524		1.38			1.35			4.48
	Year ended 12/31/2006		13.22		.57		.09			.66			(.56	)		13.32		5.09			1,458		1.40			1.37			4.33
Class C:	Six months ended 6/30/2011(5)		12.19		.15		.13			.28			(.15	)		12.32		2.34			2,546		1.41	(6)		1.41	(6)		2.63	(6)
	Year ended 12/31/2010		11.80		.35		.41			.76			(.37	)		12.19		6.45			2,931		1.39			1.39			2.81
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		14.00			3,189		1.44			1.44			3.91
	Year ended 12/31/2008		13.06		.60		(2.25	)		(1.65	)		(.65	)		10.76		(12.92	)		2,274		1.44			1.41			4.98
	Year ended 12/31/2007		13.32		.59		(.25	)		.34			(.60	)		13.06		2.56			2,532		1.42			1.40			4.43
	Year ended 12/31/2006		13.22		.56		.09			.65			(.55	)		13.32		5.04			1,847		1.45			1.42			4.27
Class F-1:	Six months ended 6/30/2011(5)		12.19		.20		.13			.33			(.20	)		12.32		2.75			1,650		.63	(6)		.63	(6)		3.40	(6)
	Year ended 12/31/2010		11.80		.44		.41			.85			(.46	)		12.19		7.27			1,866		.62			.62			3.59
	Year ended 12/31/2009		10.76		.53		1.03			1.56			(.52	)		11.80		14.91			2,329		.65			.65			4.80
	Year ended 12/31/2008		13.06		.70		(2.25	)		(1.55	)		(.75	)		10.76		(12.23	)		2,653		.64			.62			5.78
	Year ended 12/31/2007		13.32		.69		(.25	)		.44			(.70	)		13.06		3.38			2,963		.62			.60			5.22
	Year ended 12/31/2006		13.22		.67		.09			.76			(.66	)		13.32		5.90			1,611		.63			.60			5.07
Class F-2:	Six months ended 6/30/2011(5)		12.19		.22		.13			.35			(.22	)		12.32		2.89			332		.37	(6)		.37	(6)		3.67	(6)
	Year ended 12/31/2010		11.80		.47		.41			.88			(.49	)		12.19		7.55			402		.36			.36			3.89
	Year ended 12/31/2009		10.76		.56		1.03			1.59			(.55	)		11.80		15.19			737		.39			.39			4.66
	Period from 8/4/2008 to 12/31/2008		12.31		.29		(1.47	)		(1.18	)		(.37	)		10.76		(9.62	)		99		.18			.17			2.69
Class 529-A:	Six months ended 6/30/2011(5)		12.19		.20		.13			.33			(.20	)		12.32		2.72			922		.68	(6)		.68	(6)		3.35	(6)
	Year ended 12/31/2010		11.80		.44		.41			.85			(.46	)		12.19		7.24			898		.65			.65			3.53
	Year ended 12/31/2009		10.76		.53		1.03			1.56			(.52	)		11.80		14.86			758		.70			.70			4.67
	Year ended 12/31/2008		13.06		.69		(2.25	)		(1.56	)		(.74	)		10.76		(12.28	)		547		.69			.67			5.74
	Year ended 12/31/2007		13.32		.68		(.25	)		.43			(.69	)		13.06		3.31			532		.69			.67			5.17
	Year ended 12/31/2006		13.22		.66		.09			.75			(.65	)		13.32		5.85			388		.68			.66			5.05
Class 529-B:	Six months ended 6/30/2011(5)		12.19		.15		.13			.28			(.15	)		12.32		2.30			61		1.47	(6)		1.47	(6)		2.56	(6)
	Year ended 12/31/2010		11.80		.34		.41			.75			(.36	)		12.19		6.39			73		1.45			1.45			2.76
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		13.94			86		1.50			1.50			3.89
	Year ended 12/31/2008		13.06		.60		(2.25	)		(1.65	)		(.65	)		10.76		(12.98	)		71		1.51			1.48			4.92
	Year ended 12/31/2007		13.32		.58		(.25	)		.33			(.59	)		13.06		2.49			77		1.50			1.47			4.36
	Year ended 12/31/2006		13.22		.55		.09			.64			(.54	)		13.32		4.97			69		1.53			1.50			4.20
Class 529-C:	Six months ended 6/30/2011(5)		12.19		.15		.13			.28			(.15	)		12.32		2.31			429		1.46	(6)		1.46	(6)		2.57	(6)
	Year ended 12/31/2010		11.80		.34		.41			.75			(.36	)		12.19		6.40			428		1.44			1.44			2.74
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		13.95			370		1.49			1.49			3.87
	Year ended 12/31/2008		13.06		.60		(2.25	)		(1.65	)		(.65	)		10.76		(12.97	)		258		1.50			1.47			4.94
	Year ended 12/31/2007		13.32		.58		(.25	)		.33			(.59	)		13.06		2.50			247		1.49			1.46			4.37
	Year ended 12/31/2006		13.22		.55		.09			.64			(.54	)		13.32		4.99			170		1.51			1.49			4.22
Class 529-E:	Six months ended 6/30/2011(5)	$	12.19	$	.18	$	.13		$	.31		$	(.18	)	$	12.32		2.58	%	$	49		.95	%(6)		.95	%(6)		3.08	%(6)
	Year ended 12/31/2010		11.80		.40		.41			.81			(.42	)		12.19		6.93			49		.93			.93			3.24
	Year ended 12/31/2009		10.76		.49		1.03			1.52			(.48	)		11.80		14.52			40		.99			.99			4.38
	Year ended 12/31/2008		13.06		.66		(2.25	)		(1.59	)		(.71	)		10.76		(12.53	)		29		.99			.96			5.45
	Year ended 12/31/2007		13.32		.65		(.25	)		.40			(.66	)		13.06		3.02			28		.98			.96			4.88
	Year ended 12/31/2006		13.22		.62		.09			.71			(.61	)		13.32		5.53			21		.99			.97			4.74
Class 529-F-1:	Six months ended 6/30/2011(5)		12.19		.21		.13			.34			(.21	)		12.32		2.84			56		.45	(6)		.45	(6)		3.58	(6)
	Year ended 12/31/2010		11.80		.46		.41			.87			(.48	)		12.19		7.47			54		.44			.44			3.74
	Year ended 12/31/2009		10.76		.55		1.03			1.58			(.54	)		11.80		15.09			44		.49			.49			4.84
	Year ended 12/31/2008		13.06		.72		(2.25	)		(1.53	)		(.77	)		10.76		(12.10	)		26		.49			.46			5.96
	Year ended 12/31/2007		13.32		.71		(.25	)		.46			(.72	)		13.06		3.53			22		.48			.46			5.38
	Year ended 12/31/2006		13.22		.69		.09			.78			(.68	)		13.32		6.05			14		.49			.46			5.25
Class R-1:	Six months ended 6/30/2011(5)		12.19		.15		.13			.28			(.15	)		12.32		2.35			93		1.39	(6)		1.39	(6)		2.65	(6)
	Year ended 12/31/2010		11.80		.35		.41			.76			(.37	)		12.19		6.47			99		1.38			1.38			2.82
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		14.02			103		1.43			1.43			3.96
	Year ended 12/31/2008		13.06		.60		(2.25	)		(1.65	)		(.65	)		10.76		(12.92	)		88		1.44			1.42			5.01
	Year ended 12/31/2007		13.32		.58		(.25	)		.33			(.59	)		13.06		2.54			71		1.44			1.42			4.44
	Year ended 12/31/2006		13.22		.56		.09			.65			(.55	)		13.32		5.05			29		1.49			1.42			4.28
Class R-2:	Six months ended 6/30/2011(5)		12.19		.15		.13			.28			(.15	)		12.32		2.34			787		1.40	(6)		1.40	(6)		2.63	(6)
	Year ended 12/31/2010		11.80		.34		.41			.75			(.36	)		12.19		6.44			832		1.39			1.39			2.79
	Year ended 12/31/2009		10.76		.44		1.03			1.47			(.43	)		11.80		13.95			795		1.49			1.49			3.89
	Year ended 12/31/2008		13.06		.59		(2.25	)		(1.66	)		(.64	)		10.76		(12.99	)		616		1.53			1.50			4.90
	Year ended 12/31/2007		13.32		.59		(.25	)		.34			(.60	)		13.06		2.56			648		1.51			1.40			4.44
	Year ended 12/31/2006		13.22		.56		.09			.65			(.55	)		13.32		5.06			500		1.67			1.41			4.30
Class R-3:	Six months ended 6/30/2011(5)		12.19		.18		.13			.31			(.18	)		12.32		2.58			977		.94	(6)		.94	(6)		3.09	(6)
	Year ended 12/31/2010		11.80		.40		.41			.81			(.42	)		12.19		6.94			1,053		.93			.93			3.26
	Year ended 12/31/2009		10.76		.50		1.03			1.53			(.49	)		11.80		14.54			1,091		.97			.97			4.43
	Year ended 12/31/2008		13.06		.66		(2.25	)		(1.59	)		(.71	)		10.76		(12.52	)		939		.98			.95			5.45
	Year ended 12/31/2007		13.32		.65		(.25	)		.40			(.66	)		13.06		3.02			949		.98			.95			4.89
	Year ended 12/31/2006		13.22		.62		.09			.71			(.61	)		13.32		5.49			570		1.02			.99			4.71
Class R-4:	Six months ended 6/30/2011(5)		12.19		.20		.13			.33			(.20	)		12.32		2.75			711		.62	(6)		.62	(6)		3.41	(6)
	Year ended 12/31/2010		11.80		.44		.41			.85			(.46	)		12.19		7.27			768		.62			.62			3.57
	Year ended 12/31/2009		10.76		.53		1.03			1.56			(.52	)		11.80		14.90			788		.66			.66			4.75
	Year ended 12/31/2008		13.06		.70		(2.25	)		(1.55	)		(.75	)		10.76		(12.25	)		707		.67			.64			5.77
	Year ended 12/31/2007		13.32		.69		(.25	)		.44			(.70	)		13.06		3.35			692		.66			.64			5.22
	Year ended 12/31/2006		13.22		.66		.09			.75			(.65	)		13.32		5.86			325		.67			.65			5.06
Class R-5:	Six months ended 6/30/2011(5)		12.19		.22		.13			.35			(.22	)		12.32		2.91			267		.33	(6)		.33	(6)		3.71	(6)
	Year ended 12/31/2010		11.80		.48		.41			.89			(.50	)		12.19		7.59			370		.32			.32			3.88
	Year ended 12/31/2009		10.76		.56		1.03			1.59			(.55	)		11.80		15.24			451		.37			.37			5.20
	Year ended 12/31/2008		13.06		.73		(2.25	)		(1.52	)		(.78	)		10.76		(12.00	)		667		.37			.34			6.06
	Year ended 12/31/2007		13.32		.73		(.25	)		.48			(.74	)		13.06		3.65			635		.36			.34			5.50
	Year ended 12/31/2006		13.22		.70		.09			.79			(.69	)		13.32		6.17			336		.37			.35			5.36
Class R-6:	Six months ended 6/30/2011(5)		12.19		.23		.13			.36			(.23	)		12.32		2.93			233		.28	(6)		.28	(6)		3.75	(6)
	Year ended 12/31/2010		11.80		.48		.41			.89			(.50	)		12.19		7.64			280		.27			.27			3.90
	Period from 5/1/2009 to 12/31/2009		10.78		.35		1.01			1.36			(.34	)		11.80		12.75			252		.31	(6)		.31	(6)		4.59	(6)

	Six months ended June 30,			Year ended December 31
	2011(5)			2010			2009			2008			2007			2006
Portfolio turnover rate for all share classes		61	%		99	%		84	%		57	%		58	%		53	%

(1)Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.

(2)Based on average shares outstanding.

(3)Total returns exclude any applicable sales charges, including contingent deferred sales charges.

(4)This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes.

(5)Unaudited.

(6)Annualized.

See Notes to Financial Statements

Expense example                 

                                                                                                                                    unaudited

As a shareholder of the fund, 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 (January 1, 2011, through June 30, 2011).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

Note that the expenses shown in the table 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.

	Beginning account value 1/1/2011		Ending account value 6/30/2011		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,027.62	$	3.07		.61	%
Class A -- assumed 5% return		1,000.00		1,021.77		3.06		.61
Class B -- actual return		1,000.00		1,023.58		6.87		1.37
Class B -- assumed 5% return		1,000.00		1,018.00		6.85		1.37
Class C -- actual return		1,000.00		1,023.36		7.07		1.41
Class C -- assumed 5% return		1,000.00		1,017.80		7.05		1.41
Class F-1 -- actual return		1,000.00		1,027.45		3.17		.63
Class F-1 -- assumed 5% return		1,000.00		1,021.67		3.16		.63
Class F-2 -- actual return		1,000.00		1,028.88		1.86		.37
Class F-2 -- assumed 5% return		1,000.00		1,022.96		1.86		.37
Class 529-A -- actual return		1,000.00		1,027.22		3.42		.68
Class 529-A -- assumed 5% return		1,000.00		1,021.42		3.41		.68
Class 529-B -- actual return		1,000.00		1,023.03		7.37		1.47
Class 529-B -- assumed 5% return		1,000.00		1,017.50		7.35		1.47
Class 529-C -- actual return		1,000.00		1,023.08		7.32		1.46
Class 529-C -- assumed 5% return		1,000.00		1,017.55		7.30		1.46
Class 529-E -- actual return		1,000.00		1,025.81		4.77		.95
Class 529-E -- assumed 5% return		1,000.00		1,020.08		4.76		.95
Class 529-F-1 -- actual return		1,000.00		1,028.39		2.26		.45
Class 529-F-1 -- assumed 5% return		1,000.00		1,022.56		2.26		.45
Class R-1 -- actual return		1,000.00		1,023.49		6.97		1.39
Class R-1 -- assumed 5% return		1,000.00		1,017.90		6.95		1.39
Class R-2 -- actual return		1,000.00		1,023.38		7.02		1.40
Class R-2 -- assumed 5% return		1,000.00		1,017.85		7.00		1.40
Class R-3 -- actual return		1,000.00		1,025.82		4.72		.94
Class R-3 -- assumed 5% return		1,000.00		1,020.13		4.71		.94
Class R-4 -- actual return		1,000.00		1,027.50		3.12		.62
Class R-4 -- assumed 5% return		1,000.00		1,021.72		3.11		.62
Class R-5 -- actual return		1,000.00		1,029.07		1.66		.33
Class R-5 -- assumed 5% return		1,000.00		1,023.16		1.66		.33
Class R-6 -- actual return		1,000.00		1,029.35		1.41		.28
Class R-6 -- assumed 5% return		1,000.00		1,023.41		1.40		.28
*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365(to reflect the one-half year period).

Approval of Investment Advisory and Service Agreement

The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through March 31, 2012. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund under the agreement and other agreements as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of the fund in light of its objective of providing as high a level of current income as is consistent with the preservation of capital. They compared the fund’s total returns with those of other relevant funds (including the other funds that are the basis of the Lipper index for the category in which the fund is included) and market data such as relevant market indices, in each case as available at the time of the related board and committee meetings. This report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee concluded that the fund’s long-term results have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses remain significantly below those of most other relevant funds. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the advisory fees paid by clients of an affiliate of CRMC. They noted that, to the extent there were differences between the advisory fees paid by the fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational and regulatory differences between advising the fund and the other clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

4. Ancillary benefits

The board and the committee considered a variety of other benefits received by CRMC and its affiliates as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC’s institutional management affiliates. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

Other share class results

unaudited

Classes B, C, F and 529

Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

Average annual total returns for periods ended June 30, 2011:
							10 years1/
	1 year			5 years			Life of class
Class B shares2
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares are
sold within six years of purchase		–1.03	%		2.79	%		4.24	%
Not reflecting CDSC		3.97			3.13			4.24
Class C shares
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		2.93			3.08			4.02
Not reflecting CDSC		3.93			3.08			4.02
Class F-1 shares3
Not reflecting annual asset-based fee charged
by sponsoring firm		4.72			3.90			4.84
Class F-2 shares3 — first sold 8/4/08
Not reflecting annual asset-based fee charged
by sponsoring firm		5.00			—			4.99
Class 529-A shares4 — first sold 2/15/02
Reflecting 3.75% maximum sales charge		0.80			3.05			4.33
Not reflecting maximum sales charge		4.69			3.85			4.76
Class 529-B shares2,4 — first sold 2/15/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		–1.14			2.67			4.01
Not reflecting CDSC		3.86			3.01			4.01
Class 529-C shares4 — first sold 2/19/02
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		2.87			3.02			3.92
Not reflecting CDSC		3.87			3.02			3.92
Class 529-E shares3,4 — first sold 3/7/02		4.40			3.55			4.47
Class 529-F-1 shares3,4 — first sold 9/26/02
Not reflecting annual asset-based fee charged
by sponsoring firm		4.92			4.06			5.15

1Applicable to Classes B, C and F-1 shares only. All other share classes reflect results for the life of the class.

2These shares are not available for purchase.

3These shares are sold without any initial or contingent deferred sales charge.

4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 26 to 31 for details that include expense ratios for all share classes.

For information regarding the differences among the various share classes, refer to the fund’s prospectus.

Offices of the fund and of the investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

6455 Irvine Center Drive

Irvine, CA 92618

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

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, CA 90071-3106

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s 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 800/421-0180 or visit the American Funds website at americanfunds.com.

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

A complete June 30, 2011, portfolio of The Bond Fund of America’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

The Bond Fund of America files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of shareholders of The Bond Fund of America, 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 September 30, 2011, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

   

What makes American Funds different?

For 80 years, we have followed a consistent philosophy to benefit our investors. Our 33 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•A long-term, value-oriented approach

We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.

•An extensive global research effort

Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.

•The multiple portfolio counselor system

Our unique approach to portfolio management, developed more than 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

•Experienced investment professionals

American Funds portfolio counselors have an average of 27 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.

•A commitment to low management fees

The American Funds provide exceptional value for shareholders, with management fees that are among the lowest in the mutual fund industry.

American Funds span a range of investment objectives

•Growth funds

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

SMALLCAP World Fund®

•Growth-and-income funds

American Mutual Fund®

Capital World Growth and Income FundSM

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

•Equity-income funds

Capital Income Builder®

The Income Fund of America®

•Balanced funds

American Balanced Fund®

American Funds Global Balanced FundSM

•Bond funds

American Funds Mortgage FundSM

American High-Income TrustSM

>The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

•Tax-exempt bond funds

American Funds Short-Term Tax-Exempt Bond FundSM

American High-Income Municipal Bond Fund®

Limited Term Tax-Exempt Bond Fund of AmericaSM

The Tax-Exempt Bond Fund of America®

State-specific tax-exempt funds

American Funds Tax-Exempt Fund of New YorkSM

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•Money market fund

American Funds Money Market Fund®

•American Funds Target Date Retirement Series®

The Capital Group Companies

American FundsCapital Research and ManagementCapital InternationalCapital GuardianCapital Bank and Trust

Lit. No. MFGESR-908-0811P

Litho in USA BG/RRD/6370-S28718

Printed on paper containing 10% post-consumer waste

Printed with inks containing soy and/or vegetable oil

ITEM 2 – Code of Ethics

Not applicable for filing of semi-annual reports to shareholders.

ITEM 3 – Audit Committee Financial Expert

Not applicable for filing of semi-annual reports to shareholders.

ITEM 4 – Principal Accountant Fees and Services

Not applicable for filing of semi-annual reports to shareholders.

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

Bond Fund of AmericaSM

Investment portfolio

June 30, 2011

unaudited

Bonds & notes — 95.05%	Principal amount (000)			Value (000)
MORTGAGE-BACKED OBLIGATIONS — 34.65%
FEDERAL AGENCY MORTGAGE-BACKED OBLIGATIONS1 — 29.18%
Fannie Mae, Series 2003-T1, Class B, 4.491% 2012	$	46,225		$	48,482
Fannie Mae 4.89% 2012		25,000			25,157
Fannie Mae 3.309% 2017		4,129			4,201
Fannie Mae, Series 2002-15, Class PG, 6.00% 2017		3,427			3,722
Fannie Mae 4.00% 2019		17,640			18,614
Fannie Mae 4.50% 2019		11,960			12,788
Fannie Mae 4.50% 2019		11,282			12,063
Fannie Mae 5.50% 2019		96			104
Fannie Mae 5.50% 2020		8,386			9,088
Fannie Mae 5.50% 2020		998			1,084
Fannie Mae 11.148% 20202		88			101
Fannie Mae, Series 2003-48, Class TJ, 4.50% 2022		8,000			8,282
Fannie Mae 5.00% 2023		4,805			5,172
Fannie Mae 5.50% 2023		27,444			29,775
Fannie Mae 5.50% 2023		25,103			27,242
Fannie Mae 6.00% 2023		2,733			2,989
Fannie Mae 4.00% 2024		28,478			29,743
Fannie Mae 4.50% 2024		20,552			21,844
Fannie Mae 6.00% 2024		6,952			7,682
Fannie Mae 3.00% 2025		42,444			42,232
Fannie Mae 3.00% 2025		18,744			18,651
Fannie Mae 3.00% 2025		14,389			14,317
Fannie Mae 3.00% 2025		10,579			10,526
Fannie Mae 3.50% 2025		89,095			90,882
Fannie Mae 3.50% 2025		79,961			81,565
Fannie Mae 3.50% 2025		75,248			76,757
Fannie Mae 3.50% 2025		32,308			32,956
Fannie Mae 3.50% 2025		20,426			20,835
Fannie Mae 3.50% 2025		14,246			14,531
Fannie Mae 3.50% 2025		11,428			11,657
Fannie Mae 3.50% 2025		8,689			8,864
Fannie Mae 4.00% 2025		39,599			41,346
Fannie Mae 4.00% 2025		29,365			30,661
Fannie Mae 4.50% 2025		29,171			30,986
Fannie Mae 4.50% 2025		14,262			15,150
Fannie Mae 4.50% 2025		13,770			14,627
Fannie Mae, Series 2001-4, Class GA, 9.863% 20252		268			312
Fannie Mae, Series 2001-4, Class NA, 11.614% 20252		835			936
Fannie Mae 3.00% 2026		12,282			12,221
Fannie Mae 3.00% 2026		9,714			9,661
Fannie Mae 3.00% 2026		6,732			6,705
Fannie Mae 3.00% 2026		5,000			4,969
Fannie Mae 3.00% 2026		3,782			3,763
Fannie Mae 3.00% 2026		3,643			3,628
Fannie Mae 3.234% 20262		372			390
Fannie Mae 3.50% 2026		58,459			59,650
Fannie Mae 3.50% 2026		37,696			38,464
Fannie Mae 3.50% 2026		34,936			35,637
Fannie Mae 3.50% 2026		31,252			31,888
Fannie Mae 3.50% 2026		29,750			30,299
Fannie Mae 3.50% 2026		28,935			29,505
Fannie Mae 3.50% 2026		10,779			10,998
Fannie Mae 3.50% 2026		1,953			1,992
Fannie Mae 4.00% 2026		18,000			18,754
Fannie Mae 4.50% 2026		123,315			130,752
Fannie Mae 5.00% 2026		9,000			9,657
Fannie Mae 5.50% 2026		6,000			6,503
Fannie Mae 6.00% 2026		16,821			18,588
Fannie Mae 5.50% 2027		9,545			10,383
Fannie Mae 6.00% 2028		4,227			4,658
Fannie Mae 6.00% 2028		3,542			3,899
Fannie Mae, Series 1998-W5, Class B3, 6.50% 2028		1,493			1,184
Fannie Mae, Series 2002-W7, Class A-5, 7.50% 2029		501			587
Fannie Mae, Series 2001-25, Class ZA, 6.50% 2031		3,364			3,793
Fannie Mae, Series 2001-20, Class E, 9.617% 20312		47			54
Fannie Mae 6.50% 2032		135			152
Fannie Mae 6.50% 2034		849			962
Fannie Mae, Series 2005-68, Class PG, 5.50% 2035		4,299			4,777
Fannie Mae, Series 2006-51, Class PO, principal only, 0% 2036		6,382			5,423
Fannie Mae, Series 2006-32, Class OA, principal only, 0% 2036		6,097			5,207
Fannie Mae, Series 2006-96, Class OP, principal only, 0% 2036		1,336			1,183
Fannie Mae, Series 2006-101, Class PC, 5.50% 2036		4,947			5,440
Fannie Mae 5.50% 2036		2,196			2,389
Fannie Mae, Series 2006-106, Class HG, 6.00% 2036		14,925			16,682
Fannie Mae, Series 2006-43, Class PX, 6.00% 2036		13,114			14,558
Fannie Mae 6.00% 2036		13,105			14,452
Fannie Mae 6.00% 2036		10,954			12,074
Fannie Mae 6.00% 2036		5,785			6,377
Fannie Mae 6.00% 2036		5,718			6,305
Fannie Mae 6.00% 2036		3,747			4,137
Fannie Mae 6.50% 2036		12,131			13,730
Fannie Mae 6.50% 2036		7,346			8,327
Fannie Mae 7.00% 2036		983			1,129
Fannie Mae 7.00% 2036		710			817
Fannie Mae 7.50% 2036		359			402
Fannie Mae 7.50% 2036		112			125
Fannie Mae 8.00% 2036		1,199			1,351
Fannie Mae 5.497% 20372		4,970			5,252
Fannie Mae, Series 2007-40, Class PT, 5.50% 2037		22,347			24,536
Fannie Mae 5.50% 2037		21,493			23,310
Fannie Mae 5.508% 20372		10,382			11,070
Fannie Mae 5.61% 20372		16,850			17,916
Fannie Mae 5.701% 20372		7,449			7,943
Fannie Mae 5.765% 20372		9,333			10,065
Fannie Mae 5.772% 20372		5,530			5,872
Fannie Mae 6.00% 2037		64,707			71,202
Fannie Mae 6.00% 2037		37,503			41,242
Fannie Mae 6.00% 2037		25,605			28,158
Fannie Mae 6.00% 2037		17,365			19,108
Fannie Mae 6.00% 2037		12,439			13,687
Fannie Mae 6.00% 2037		11,018			12,111
Fannie Mae 6.00% 2037		8,523			9,378
Fannie Mae 6.00% 2037		6,246			6,873
Fannie Mae 6.00% 2037		6,265			6,831
Fannie Mae 6.00% 2037		5,557			6,110
Fannie Mae 6.00% 2037		3,104			3,384
Fannie Mae 6.00% 2037		2,312			2,548
Fannie Mae 6.00% 2037		1,840			2,029
Fannie Mae 6.00% 2037		1,468			1,615
Fannie Mae 6.00% 2037		1,464			1,611
Fannie Mae 6.00% 2037		1,462			1,609
Fannie Mae 6.00% 2037		1,344			1,482
Fannie Mae 6.00% 2037		86			94
Fannie Mae 6.50% 2037		14,495			16,387
Fannie Mae 6.50% 2037		12,082			13,659
Fannie Mae 6.50% 2037		8,886			9,995
Fannie Mae 6.50% 2037		7,402			8,276
Fannie Mae 6.50% 2037		1,290			1,458
Fannie Mae 7.00% 2037		4,210			4,689
Fannie Mae 7.00% 2037		3,705			4,126
Fannie Mae 7.00% 2037		1,030			1,183
Fannie Mae 7.00% 2037		685			786
Fannie Mae 7.00% 2037		536			608
Fannie Mae 7.00% 2037		250			284
Fannie Mae 7.50% 2037		709			793
Fannie Mae 7.50% 2037		624			698
Fannie Mae 7.50% 2037		587			657
Fannie Mae 7.50% 2037		581			650
Fannie Mae 7.50% 2037		581			650
Fannie Mae 7.50% 2037		567			633
Fannie Mae 7.50% 2037		563			630
Fannie Mae 7.50% 2037		550			614
Fannie Mae 7.50% 2037		457			511
Fannie Mae 7.50% 2037		426			476
Fannie Mae 7.50% 2037		255			285
Fannie Mae 7.50% 2037		234			262
Fannie Mae 7.50% 2037		192			219
Fannie Mae 7.50% 2037		170			190
Fannie Mae 7.50% 2037		129			149
Fannie Mae 7.50% 2037		108			121
Fannie Mae 7.50% 2037		91			102
Fannie Mae 7.50% 2037		68			76
Fannie Mae 8.00% 2037		483			545
Fannie Mae 8.00% 2037		339			391
Fannie Mae 8.00% 2037		101			114
Fannie Mae 4.935% 20382		10,071			10,540
Fannie Mae 5.354% 20382		5,012			5,325
Fannie Mae 5.48% 20382		1,205			1,295
Fannie Mae 5.50% 2038		25,436			27,525
Fannie Mae 5.50% 2038		8,477			9,176
Fannie Mae 5.50% 2038		236			256
Fannie Mae 5.626% 20382		9,836			10,529
Fannie Mae 6.00% 2038		82,712			91,015
Fannie Mae 6.00% 2038		25,612			28,183
Fannie Mae 6.00% 2038		18,069			19,866
Fannie Mae 6.00% 2038		17,797			19,571
Fannie Mae 6.00% 2038		13,481			14,812
Fannie Mae 6.00% 2038		10,060			11,070
Fannie Mae 6.00% 2038		7,827			8,606
Fannie Mae 6.00% 2038		7,184			7,894
Fannie Mae 6.00% 2038		6,818			7,502
Fannie Mae 6.00% 2038		6,369			7,001
Fannie Mae 6.00% 2038		5,495			6,041
Fannie Mae 6.00% 2038		4,629			5,094
Fannie Mae 6.00% 2038		4,064			4,472
Fannie Mae 6.00% 2038		4,035			4,440
Fannie Mae 6.00% 2038		3,027			3,328
Fannie Mae 6.50% 2038		115,248			130,598
Fannie Mae 6.50% 2038		27,353			30,996
Fannie Mae 3.553% 20392		19,426			20,360
Fannie Mae 3.601% 20392		27,225			28,585
Fannie Mae 3.61% 20392		6,661			6,948
Fannie Mae 3.676% 20392		995			1,044
Fannie Mae 3.757% 20392		24,603			25,778
Fannie Mae 3.759% 20392		4,892			5,147
Fannie Mae 3.817% 20392		7,771			8,139
Fannie Mae 3.827% 20392		2,092			2,204
Fannie Mae 3.847% 20392		2,577			2,717
Fannie Mae 3.903% 20392		2,887			3,030
Fannie Mae 3.942% 20392		11,609			12,240
Fannie Mae 3.959% 20392		2,280			2,403
Fannie Mae 5.00% 2039		34,117			36,473
Fannie Mae 5.00% 2039		11,385			12,118
Fannie Mae 5.106% 20392		12,810			13,571
Fannie Mae 5.50% 2039		27,111			29,349
Fannie Mae 5.50% 2039		22,003			23,820
Fannie Mae 5.50% 2039		4,139			4,481
Fannie Mae 6.00% 2039		11,604			12,769
Fannie Mae 6.00% 2039		10,925			12,014
Fannie Mae 6.00% 2039		5,896			6,500
Fannie Mae 6.00% 2039		5,300			5,828
Fannie Mae 6.00% 2039		5,189			5,697
Fannie Mae 6.00% 2039		573			630
Fannie Mae 3.204% 20402		45,189			46,917
Fannie Mae 3.50% 2040		54,255			51,967
Fannie Mae 3.50% 2040		32,334			30,970
Fannie Mae 3.50% 2040		24,639			23,600
Fannie Mae 3.50% 2040		9,833			9,419
Fannie Mae 3.629% 20402		11,607			12,142
Fannie Mae 4.00% 2040		175,614			175,917
Fannie Mae 4.00% 2040		44,652			44,729
Fannie Mae 4.00% 2040		34,317			34,376
Fannie Mae 4.00% 2040		33,808			33,925
Fannie Mae 4.00% 2040		32,438			32,494
Fannie Mae 4.00% 2040		29,541			29,592
Fannie Mae 4.00% 2040		29,112			29,162
Fannie Mae 4.00% 2040		28,583			28,633
Fannie Mae 4.00% 2040		26,813			26,860
Fannie Mae 4.00% 2040		25,227			25,267
Fannie Mae 4.00% 2040		22,800			22,840
Fannie Mae 4.00% 2040		21,701			21,759
Fannie Mae 4.00% 2040		19,762			19,796
Fannie Mae 4.00% 2040		16,886			16,915
Fannie Mae 4.00% 2040		8,887			8,903
Fannie Mae 4.00% 2040		5,939			5,950
Fannie Mae 4.00% 2040		3,208			3,217
Fannie Mae 4.50% 2040		87,395			90,575
Fannie Mae 4.50% 2040		58,818			60,959
Fannie Mae 4.50% 2040		44,624			46,248
Fannie Mae 4.50% 2040		11,752			12,180
Fannie Mae 4.50% 2040		11,366			11,779
Fannie Mae 4.50% 2040		11,251			11,661
Fannie Mae 4.50% 2040		10,542			10,926
Fannie Mae 4.50% 2040		7,862			8,149
Fannie Mae 4.50% 2040		6,061			6,294
Fannie Mae 4.50% 2040		1,801			1,871
Fannie Mae 4.50% 2040		1,678			1,743
Fannie Mae 4.50% 2040		1,457			1,513
Fannie Mae 4.50% 2040		528			548
Fannie Mae 4.50% 2040		508			527
Fannie Mae 4.50% 2040		159			165
Fannie Mae 4.50% 2040		109			113
Fannie Mae 5.00% 2040		57,775			61,512
Fannie Mae 5.00% 2040		48,243			51,364
Fannie Mae 5.00% 2040		24,408			26,115
Fannie Mae 5.00% 2040		21,576			22,972
Fannie Mae 5.00% 2040		14,216			15,136
Fannie Mae 5.50% 2040		52,078			56,354
Fannie Mae 5.50% 2040		19,562			21,177
Fannie Mae 5.50% 2040		2,349			2,543
Fannie Mae 3.50% 2041		40,393			38,690
Fannie Mae 4.00% 2041		172,637			173,097
Fannie Mae 4.00% 2041		163,250			163,301
Fannie Mae 4.00% 2041		112,766			112,961
Fannie Mae 4.00% 2041		84,466			84,612
Fannie Mae 4.00% 2041		62,093			62,200
Fannie Mae 4.00% 2041		59,750			59,853
Fannie Mae 4.00% 2041		56,615			56,713
Fannie Mae 4.00% 2041		44,579			44,656
Fannie Mae 4.00% 2041		41,590			41,661
Fannie Mae 4.00% 2041		41,502			41,573
Fannie Mae 4.00% 2041		39,289			39,357
Fannie Mae 4.00% 2041		39,278			39,346
Fannie Mae 4.00% 2041		35,664			35,725
Fannie Mae 4.00% 2041		35,202			35,263
Fannie Mae 4.00% 2041		34,000			34,059
Fannie Mae 4.00% 2041		28,206			28,255
Fannie Mae 4.00% 2041		27,910			27,967
Fannie Mae 4.00% 2041		23,298			23,338
Fannie Mae 4.00% 2041		21,021			21,064
Fannie Mae 4.00% 2041		20,084			20,119
Fannie Mae 4.00% 2041		19,715			19,749
Fannie Mae 4.00% 2041		19,358			19,391
Fannie Mae 4.00% 2041		18,575			18,607
Fannie Mae 4.00% 2041		17,153			17,182
Fannie Mae 4.00% 2041		16,924			16,953
Fannie Mae 4.00% 2041		16,243			16,271
Fannie Mae 4.00% 2041		15,925			15,953
Fannie Mae 4.00% 2041		14,946			14,972
Fannie Mae 4.00% 2041		14,801			14,826
Fannie Mae 4.00% 2041		13,098			13,121
Fannie Mae 4.00% 2041		12,141			12,162
Fannie Mae 4.00% 2041		11,984			12,016
Fannie Mae 4.00% 2041		11,954			11,974
Fannie Mae 4.00% 2041		11,946			11,966
Fannie Mae 4.00% 2041		10,735			10,753
Fannie Mae 4.00% 2041		10,612			10,631
Fannie Mae 4.00% 2041		9,456			9,472
Fannie Mae 4.00% 2041		9,238			9,254
Fannie Mae 4.00% 2041		8,943			8,958
Fannie Mae 4.00% 2041		7,925			7,938
Fannie Mae 4.00% 2041		7,869			7,883
Fannie Mae 4.00% 2041		7,696			7,716
Fannie Mae 4.00% 2041		7,594			7,605
Fannie Mae 4.00% 2041		2,986			2,991
Fannie Mae 4.00% 2041		1,043			1,045
Fannie Mae 4.00% 2041		993			994
Fannie Mae 4.00% 2041		658			659
Fannie Mae 4.00% 2041		639			640
Fannie Mae 4.00% 2041		522			523
Fannie Mae 4.50% 2041		201,680			208,707
Fannie Mae 4.50% 2041		159,675			165,499
Fannie Mae 4.50% 2041		119,000			123,340
Fannie Mae 4.50% 2041		64,273			66,612
Fannie Mae 4.50% 2041		59,237			61,559
Fannie Mae 4.50% 2041		52,638			54,557
Fannie Mae 4.50% 2041		40,766			42,364
Fannie Mae 4.50% 2041		38,809			40,224
Fannie Mae 4.50% 2041		35,263			36,618
Fannie Mae 4.50% 2041		34,852			36,123
Fannie Mae 4.50% 2041		33,669			34,897
Fannie Mae 4.50% 2041		30,714			31,894
Fannie Mae 4.50% 2041		28,974			30,031
Fannie Mae 4.50% 2041		27,768			28,835
Fannie Mae 4.50% 2041		27,440			28,441
Fannie Mae 4.50% 2041		25,268			26,239
Fannie Mae 4.50% 2041		25,112			26,076
Fannie Mae 4.50% 2041		24,871			25,778
Fannie Mae 4.50% 2041		20,051			20,782
Fannie Mae 4.50% 2041		19,075			19,771
Fannie Mae 4.50% 2041		15,932			16,544
Fannie Mae 4.50% 2041		12,951			13,448
Fannie Mae 4.50% 2041		11,967			12,403
Fannie Mae 4.50% 2041		11,872			12,305
Fannie Mae 4.50% 2041		11,174			11,612
Fannie Mae 4.50% 2041		11,118			11,554
Fannie Mae 4.50% 2041		11,000			11,401
Fannie Mae 4.50% 2041		10,820			11,215
Fannie Mae 4.50% 2041		10,146			10,560
Fannie Mae 4.50% 2041		9,022			9,368
Fannie Mae 4.50% 2041		8,971			9,294
Fannie Mae 4.50% 2041		8,893			9,217
Fannie Mae 4.50% 2041		8,000			8,313
Fannie Mae 4.50% 2041		5,555			5,768
Fannie Mae 4.50% 2041		4,615			4,792
Fannie Mae 4.50% 2041		4,372			4,531
Fannie Mae 4.50% 2041		2,229			2,310
Fannie Mae 4.50% 2041		2,018			2,096
Fannie Mae 4.50% 2041		1,464			1,521
Fannie Mae 4.50% 2041		387			402
Fannie Mae 4.50% 2041		258			268
Fannie Mae 5.00% 2041		693,975			737,457
Fannie Mae 5.00% 2041		23,519			25,161
Fannie Mae 5.00% 2041		20,217			21,551
Fannie Mae 5.00% 2041		19,128			20,365
Fannie Mae 5.00% 2041		16,692			17,793
Fannie Mae 5.00% 2041		16,241			17,369
Fannie Mae 5.00% 2041		14,850			15,829
Fannie Mae 5.00% 2041		14,236			15,174
Fannie Mae 5.00% 2041		13,985			14,958
Fannie Mae 5.00% 2041		13,872			14,786
Fannie Mae 5.00% 2041		12,226			13,078
Fannie Mae 5.00% 2041		11,437			12,237
Fannie Mae 5.00% 2041		10,708			11,414
Fannie Mae 5.00% 2041		10,634			11,335
Fannie Mae 5.00% 2041		10,202			10,916
Fannie Mae 5.00% 2041		8,954			9,578
Fannie Mae 5.00% 2041		8,728			9,338
Fannie Mae 5.00% 2041		8,380			8,964
Fannie Mae 5.00% 2041		8,326			8,909
Fannie Mae 5.00% 2041		5,097			5,453
Fannie Mae 5.00% 2041		4,231			4,527
Fannie Mae 5.00% 2041		3,721			3,980
Fannie Mae 5.00% 2041		1,714			1,833
Fannie Mae 5.50% 2041		328,107			354,817
Fannie Mae 6.00% 2041		139,426			153,173
Fannie Mae 6.50% 2041		10,000			11,323
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041		4,851			5,395
Fannie Mae, Series 2001-50, Class BA, 7.00% 2041		1,274			1,414
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2041		2,808			3,292
Fannie Mae, Series 2002-W1, Class 2A, 7.172% 20422		3,217			3,728
Fannie Mae 6.00% 2047		450			487
Fannie Mae 6.50% 2047		655			737
Fannie Mae 6.50% 2047		316			352
Fannie Mae 6.50% 2047		119			134
Fannie Mae 7.00% 2047		2,023			2,254
Fannie Mae 7.00% 2047		100			111
Fannie Mae 7.50% 2047		168			189
Freddie Mac, Series K702, Class A1, 2.084% 20172		2,470			2,477
Freddie Mac, Series K701, Class A2, 3.882% 20172		3,300			3,435
Freddie Mac, Series K702, Class A2, 3.154% 20182		15,455			15,408
Freddie Mac, Series 2890, Class KT, 4.50% 2019		2,500			2,725
Freddie Mac 5.50% 2019		4,545			4,918
Freddie Mac, Series K009, Class A1, 2.757% 2020		3,919			3,952
Freddie Mac, Series K013, Class A1, 2.902% 2020		4,188			4,252
Freddie Mac, Series K010, Class A1, 3.32% 20202		3,656			3,752
Freddie Mac, Series K011, Class A2, 4.084% 2020		4,150			4,307
Freddie Mac, Series 2626, Class NG, 3.50% 2023		906			940
Freddie Mac, Series 2922, Class EL, 4.50% 2023		12,560			12,962
Freddie Mac 5.00% 2023		6,570			7,043
Freddie Mac 5.00% 2023		249			267
Freddie Mac 5.00% 2023		39			42
Freddie Mac, Series 1617, Class PM, 6.50% 2023		1,132			1,258
Freddie Mac 5.00% 2024		17,016			18,287
Freddie Mac 4.00% 2025		14,547			15,178
Freddie Mac 4.50% 2025		50,293			53,329
Freddie Mac 4.50% 2025		42,252			44,803
Freddie Mac 6.00% 2026		11,840			13,042
Freddie Mac 6.00% 2026		10,270			11,313
Freddie Mac 5.50% 2027		6,885			7,486
Freddie Mac 6.00% 2027		71,055			78,271
Freddie Mac, Series 2153, Class GG, 6.00% 2029		1,866			2,093
Freddie Mac, Series 2122, Class QM, 6.25% 2029		3,189			3,573
Freddie Mac 2.694% 20352		7,027			7,343
Freddie Mac, Series 3061, Class PN, 5.50% 2035		31,975			35,327
Freddie Mac, Series 3136, Class OP, principal only, 0% 2036		5,727			5,165
Freddie Mac, Series 3149, Class MO, principal only, 0% 2036		3,770			3,440
Freddie Mac, Series 3147, Class OD, principal only, 0% 2036		3,681			3,191
Freddie Mac, Series 3149, Class AO, principal only, 0% 2036		3,282			2,988
Freddie Mac, Series 3156, Class PO, principal only, 0% 2036		73			62
Freddie Mac, Series 3257, Class PA, 5.50% 2036		38,060			41,903
Freddie Mac, Series 3233, Class PA, 6.00% 2036		28,413			31,632
Freddie Mac, Series 3156, Class NG, 6.00% 2036		9,032			10,117
Freddie Mac, Series 3286, Class JN, 5.50% 2037		45,285			49,447
Freddie Mac, Series 3318, Class JT, 5.50% 2037		25,652			28,010
Freddie Mac, Series 3312, Class PA, 5.50% 2037		20,165			22,058
Freddie Mac 5.50% 2037		13,926			15,060
Freddie Mac 5.50% 2037		13,595			14,702
Freddie Mac 5.509% 20372		18,462			19,979
Freddie Mac 5.683% 20372		6,090			6,563
Freddie Mac 5.704% 20372		3,498			3,701
Freddie Mac 5.916% 20372		7,135			7,556
Freddie Mac, Series 3271, Class OA, 6.00% 2037		11,638			13,021
Freddie Mac 6.00% 2037		1,771			1,952
Freddie Mac 7.00% 2037		635			725
Freddie Mac 7.00% 2037		359			409
Freddie Mac 7.00% 2037		166			189
Freddie Mac 7.50% 2037		3,213			3,620
Freddie Mac 5.044% 20382		6,191			6,592
Freddie Mac 5.258% 20382		11,087			11,795
Freddie Mac 5.50% 2038		10,436			11,291
Freddie Mac 5.559% 20382		16,051			17,032
Freddie Mac 6.00% 2038		34,904			38,332
Freddie Mac 6.50% 2038		8,761			9,846
Freddie Mac 3.716% 20392		6,020			6,311
Freddie Mac 3.938% 20392		5,486			5,787
Freddie Mac 5.00% 2039		44,748			47,593
Freddie Mac 5.50% 2039		36,877			39,880
Freddie Mac 3.155% 20402		6,482			6,716
Freddie Mac 4.50% 2041		84,687			87,889
Freddie Mac 4.50% 2041		10,927			11,308
Freddie Mac 4.50% 2041		7,137			7,386
Freddie Mac 4.50% 2041		4,037			4,178
Freddie Mac 5.00% 2041		27,353			29,100
Freddie Mac 5.00% 2041		20,784			22,144
Freddie Mac 5.00% 2041		16,052			17,103
Freddie Mac 5.00% 2041		15,825			16,861
Freddie Mac 5.00% 2041		14,191			15,120
Freddie Mac 5.00% 2041		13,246			14,113
Freddie Mac 5.00% 2041		11,293			12,032
Freddie Mac 5.00% 2041		2,922			3,114
Freddie Mac 6.50% 2047		1,353			1,501
Freddie Mac 6.50% 2047		368			408
Freddie Mac 7.00% 2047		280			312
Government National Mortgage Assn. 10.00% 2021		499			571
Government National Mortgage Assn. 3.50% 2025		6,283			6,511
Government National Mortgage Assn. 3.50% 2025		2,418			2,505
Government National Mortgage Assn. 3.50% 2025		1,928			1,998
Government National Mortgage Assn., Series 2005-58, Class NO, principal only, 0% 2035		3,453			3,370
Government National Mortgage Assn. 6.00% 2038		42,196			46,691
Government National Mortgage Assn. 3.50% 2039		12,013			11,683
Government National Mortgage Assn. 3.50% 2039		11,990			11,661
Government National Mortgage Assn. 3.50% 2039		6,161			5,992
Government National Mortgage Assn. 4.50% 2039		7,607			8,025
Government National Mortgage Assn. 3.50% 2040		9,851			9,580
Government National Mortgage Assn. 4.00% 2040		125,230			127,859
Government National Mortgage Assn. 4.50% 2040		21,714			22,908
Government National Mortgage Assn. 4.50% 2040		18,112			19,129
Government National Mortgage Assn. 4.50% 2040		16,962			17,894
Government National Mortgage Assn. 4.50% 2040		8,643			9,118
Government National Mortgage Assn. 4.50% 2040		7,371			7,776
Government National Mortgage Assn. 4.50% 2040		6,942			7,323
Government National Mortgage Assn. 4.50% 2040		2,279			2,408
Government National Mortgage Assn. 4.50% 2040		997			1,052
Government National Mortgage Assn. 5.00% 2040		6,806			7,399
Government National Mortgage Assn. 3.50% 2041		19,056			18,526
Government National Mortgage Assn. 4.00% 2041		40,865			41,638
Government National Mortgage Assn. 4.00% 2041		803			820
FDIC Structured Sale Guaranteed Notes, Series 2010-L1A, Class A-1, 0% 20113		1,850			1,849
FDIC Structured Sale Guaranteed Notes, Series 2010-L2A, Class A, 3.00% 20193		24,066			24,264
FDIC Structured Sale Guaranteed Notes, Series 2010-S1, Class 1-A, 0.741% 20482,3		701			703
National Credit Union Administration, Series 2011-M1, Class A1, 0.206% 20132,4		2,486			2,486
National Credit Union Administration, Series 2011-M1, Class A2, 1.40% 20154		1,368			1,370
National Credit Union Administration, Series 2010-R2, Class 1A, 0.56% 20172,4		2,941			2,942
National Credit Union Administration, Series 2011-R3, Class 1A, 0.59% 20202		2,549			2,551
National Credit Union Administration, Series 2011-R1, Class 1A, 0.64% 20202		2,651			2,656
					9,681,482
COMMERCIAL MORTGAGE-BACKED SECURITIES1 — 4.04%
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C3, Class A-1, 4.20% 2035		4			4
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-CBX, Class A-5, 4.654% 2037		2,500			2,554
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.476% 20372		42,864			43,953
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2003-ML1, Class A-1, 3.972% 2039		3,897			3,950
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-C3, Class A-3, 4.545% 2042		21,050			21,182
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A-3A1, 4.871% 2042		18,204			18,470
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP3, Class A-4A, 4.936% 20422		1,655			1,773
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class A-2, 5.198% 2044		10,080			10,267
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-CIBC14, Class A-4, 5.481% 20442		15,130			16,375
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A-4, 6.067% 20452		66,235			73,432
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C4, Class A-2, 3.341% 20463		2,625			2,628
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C3A, Class A-2, 3.673% 20463		43,400			44,146
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP1, Class A-2, 4.625% 2046		10,384			10,503
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.932% 20492		26,753			29,075
CS First Boston Mortgage Securities Corp., Series 2001-CKN5, Class A-4, 5.435% 2034		269			269
CS First Boston Mortgage Securities Corp., Series 2002-CP5, Class A-1, 4.106% 2035		191			193
CS First Boston Mortgage Securities Corp., Series 2002-CKP1, Class F, 7.067% 20352,3		1,500			1,527
CS First Boston Mortgage Securities Corp., Series 2001-CK6, Class A-3, 6.387% 2036		15,035			15,153
CS First Boston Mortgage Securities Corp., Series 2004-C5, Class A-2, 4.183% 2037		3,899			3,898
CS First Boston Mortgage Securities Corp., Series 2004-C5, Class A-3, 4.499% 2037		12,900			12,963
CS First Boston Mortgage Securities Corp., Series 2005-C3, Class A-AB, 4.614% 2037		15,326			15,970
CS First Boston Mortgage Securities Corp., Series 2004-C1, Class E, 5.015% 20373		8,240			7,696
CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class A-3, 6.133% 2037		2,386			2,432
CS First Boston Mortgage Securities Corp., Series 2005-C5, Class A-AB, 5.10% 20382		10,678			11,186
CS First Boston Mortgage Securities Corp., Series 2004-C4, Class A-4, 4.283% 2039		2,505			2,524
CS First Boston Mortgage Securities Corp., Series 2006-C5, Class A-3, 5.311% 2039		57,676			61,849
CS First Boston Mortgage Securities Corp., Series 2006-C1, Class A-3, 5.711% 20392		7,076			7,473
CS First Boston Mortgage Securities Corp., Series 2006-C2, Class A-3, 5.85% 20392		7,305			7,968
CS First Boston Mortgage Securities Corp., Series 2007-C4, Class A-4, 5.995% 20392		28,645			30,366
CS First Boston Mortgage Securities Corp., Series 2005-C6, Class A-3, 5.23% 20402		30,427			31,718
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-2, 5.117% 2037		8,831			8,997
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-5, 5.224% 20372		11,000			11,777
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-4-1, 5.243% 20372		15,000			15,810
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 6.078% 20382		27,715			30,805
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 2039		64,195			68,952
American Tower Trust I, Series 2007-1A, Class A-FX, 5.42% 20373		18,500			19,812
American Tower Trust I, Series 2007-1A, Class B, 5.537% 20373		10,000			10,832
American Tower Trust I, Series 2007-1A, Class C, 5.615% 20373		10,000			10,784
American Tower Trust I, Series 2007-1A, Class D, 5.957% 20373		35,515			38,225
American Tower Trust I, Series 2007-1A, Class E, 6.249% 20373		8,250			8,860
American Tower Trust I, Series 2007-1A, Class F, 6.639% 20373		5,000			5,358
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP6, Class A-4, 5.475% 20432		51,820			56,511
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A-4, 5.399% 2045		14,040			15,192
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A-4, 5.394% 20442		17,005			18,509
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A-5, 5.617% 2048		44,734			48,489
DBUBS Mortgage Trust, Series 2011-LC1A, Class A1, 3.742% 20463		59,971			61,481
GE Commercial Mortgage Corp., Series 2004-C2, Class B, 4.983% 2040		19,193			19,314
GE Commercial Mortgage Corp., Series 2006-C1, Class A-4, 5.512% 20442		33,700			36,705
Merrill Lynch Mortgage Trust, Series 2005-CKI1, Class AM, 5.392% 20372		4,620			4,793
Merrill Lynch Mortgage Trust, Series 2005-CIP1, Class A-3-A, 4.949% 20382		8,500			8,789
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A-3, 5.863% 20392		3,050			3,238
Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A-5, 4.855% 20412		6,805			7,209
Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class A-4, 4.747% 20432		12,080			12,896
Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class AM, 4.805% 20432		6,300			6,477
Merrill Lynch Mortgage Trust, Series 2006-C2, Class A-4, 5.742% 20432		10,250			11,232
Wachovia Bank Commercial Mortgage Trust, Series 2003-C9, Class A-3, 4.608% 2035		478			489
Wachovia Bank Commercial Mortgage Trust, Series 2005-C18, Class A-PB, 4.807% 2042		2,345			2,429
Wachovia Bank Commercial Mortgage Trust, Series 2005-C20, Class A-7, 5.118% 20422		9,605			10,441
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-2, 5.242% 2044		2,534			2,532
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-4, 5.44% 20442		15,350			16,654
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A-PB, 5.445% 20442		7,372			7,690
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A-PB, 5.446% 2045		5,276			5,390
ML-CFC Commercial Mortgage Trust, Series 2006-4, Class A-3, 5.172% (undated)2		41,210			43,983
L.A. Arena Funding, LLC, Series 1, Class A, 7.656% 20263,4		39,852			42,110
Banc of America Commercial Mortgage Inc., Series 2004-5, Class A-3, 4.561% 2041		7,530			7,570
Banc of America Commercial Mortgage Inc., Series 2004-5, Class A-AB, 4.673% 2041		1,084			1,127
Banc of America Commercial Mortgage Inc., Series 2005-3, Class A-2, 4.501% 2043		520			521
Banc of America Commercial Mortgage Inc., Series 2005-5, Class A-4, 5.115% 20452		2,500			2,709
Banc of America Commercial Mortgage Inc., Series 2006-4, Class A-4, 5.634% 2046		15,990			17,516
Banc of America Commercial Mortgage Inc., Series 2007-3, Class A-4, 5.802% (undated)2		7,966			8,584
Crown Castle Towers LLC, Series 2010-1, Class C, 4.523% 20353		2,000			2,093
Crown Castle Towers LLC, Series 2010-5, Class C, 4.174% 20373		20,000			20,348
Crown Castle Towers LLC, Series 2010-2, Class C, 5.495% 20373		10,000			10,711
Bear Stearns Commercial Mortgage Securities Inc., Series 2002-PBW1, Class A-1, 3.97% 2035		421			421
Bear Stearns Commercial Mortgage Securities Inc., Series 2004-PWR6, Class A-4, 4.521% 2041		10,000			10,108
Bear Stearns Commercial Mortgage Securities Inc., Series 2005-PWR9, Class A-3, 4.868% 2042		20,825			21,578
Commercial Mortgage Trust, Series 2003-LNB1, Class A-2, 4.084% 2038		20,000			20,798
Commercial Mortgage Trust, Series 2004-LNB2, Class A-3, 4.221% 2039		1,391			1,398
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A-3, 5.92% (undated)2		15,800			17,428
COBALT CMBS Commercial Mortgage Trust, Series 2006-C1, Class A-2, 5.174% 2048		8,943			9,111
LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A-2, 5.103% 2030		2,161			2,161
LB-UBS Commercial Mortgage Trust, Series 2005-C7, Class A-4, 5.197% 20302		5,000			5,429
Bear Stearns Commercial Mortgage Securities Trust, Series 2006-PWR13, Class A-4, 5.54% 2041		6,000			6,546
Morgan Stanley Capital I Trust, Series 2005-HQ7, Class A-2, 5.374% 20422		6,182			6,356
GE Capital Commercial Mortgage Corp., Series 2002-3, Class A-2, 4.996% 2037		2,469			2,548
GE Capital Commercial Mortgage Corp., Series 2001-3, Class A-2, 6.07% 2038		1,942			1,953
Salomon Brothers Commercial Mortgage Trust, Series 2001-C2, Class A-3, 6.499% 2036		883			888
					1,342,164
OTHER MORTGAGE-BACKED SECURITIES1 — 0.81%
Nykredit 4.00% 2035	DKr273,904			$	50,511
Nationwide Building Society, Series 2007-2, 5.50% 20123	$	35,000			36,515
Bank of America 5.50% 20123		35,000			36,326
HBOS Treasury Services PLC 5.00% 20113		5,250			5,327
HBOS Treasury Services PLC 5.25% 20173		14,000			14,988
HBOS Treasury Services PLC 5.25% 2017		7,000			7,494
Barclays Bank PLC 2.50% 20153		3,600			3,574
Barclays Bank PLC 4.00% 2019	€	14,150			20,646
Compagnie de Financement Foncier 2.125% 20133	$	16,700			16,956
Compagnie de Financement Foncier 2.25% 20143		6,500			6,578
Bank of Montreal 2.85% 20153		17,000			17,630
Bank of Montreal 2.625% 20163		4,250			4,329
Royal Bank of Canada 3.125% 20153		18,160			19,000
HSBC Bank PLC 1.625% 20143		4,400			4,392
Credit Suisse Group AG 2.60% 20163		4,300			4,295
Canadian Imperial Bank 2.75% 20163		4,150			4,251
Northern Rock PLC 5.625% 20173		4,000			4,219
DEPFA ACS Bank 5.125% 20373		5,000			3,525
Sparebank 1 Boligkreditt AS 2.625% 20163		3,400			3,408
Swedbank Hypotek AB 2.95% 20163		3,000			3,053
DnB NOR ASA 2.90% 20163		2,000			2,038
					269,055
COLLATERALIZED MORTGAGE-BACKED OBLIGATIONS (PRIVATELY ORIGINATED)1 — 0.62%
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-8, Class 3-AF, 0.566% 20362		10,911			7,262
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-2, Class 5-A-1, 5.759% 20362		4,573			3,392
Structured Adjustable Rate Mortgage Loan Trust, Series 2007-6, Class 3-A-1, 5.244% 20372		16,107			10,557
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-12, Class 2-A1, 5.381% 20372		15,738			11,512
Residential Accredit Loans, Inc., Series 2005-QR1, Class A, 6.00% 2034		21,369			21,792
IndyMac IMSC Mortgage Loan Trust, Series 2007-F2, Class 2-A-1, 6.50% 2037		33,387			21,354
American General Mortgage Loan Trust, Series 2006-1, Class A-5, 5.743% 20352,3		6,570			6,842
American General Mortgage Loan Trust, Series 2010-1A, Class A-1, 5.15% 20582,3		13,621			14,050
WaMu Mortgage Pass-Through Certificates Trust, Series 2007-HY7, Class 2-A1, 5.509% 20372		25,163			16,966
J.P. Morgan Alternative Loan Trust, Series 2006-A1, Class 2-A-1, 2.711% 20362		13,898			8,842
J.P. Morgan Alternative Loan Trust, Series 2006-A2, Class 5-A-1, 5.836% 20362		10,457			6,724
Countrywide Alternative Loan Trust, Series 2004-14T2, Class A-2, 5.50% 2034		7,103			7,051
Countrywide Alternative Loan Trust, Series 2004-36CB, Class 1-A-1, 6.00% 2035		6,726			6,521
TBW Mortgage-backed Trust, Series 2007-2, Class A-4-B, 0.606% 20372		19,893			13,529
Thornburg Mortgage Securities Trust, Series 2006-5, Class A-1, 0.306% 20462		12,474			12,400
Bear Stearns ALT-A Trust, Series 2006-2, Class II-4-A-1, 5.585% 20362		18,378			11,257
IndyMac INDX Mortgage Loan Trust, Series 2006-AR25, Class 3-A-1, 5.132% 20362		14,807			7,261
CHL Mortgage Pass-Through Trust, Series 2007-HY5, Class 1-A-1, 5.682% 20472		5,984			4,383
CHL Mortgage Pass-Through Trust, Series 2007-HY4, Class 1-A-1, 5.684% 20472		1,812			1,265
CS First Boston Mortgage Securities Corp., Series 2002-30, Class I-A-1, 7.50% 2032		264			267
CS First Boston Mortgage Securities Corp., Series 2002-34, Class I-A-1, 7.50% 2032		34			35
CS First Boston Mortgage Securities Corp., Series 2003-21, Class V-A-1, 6.50% 2033		2,052			2,078
CS First Boston Mortgage Securities Corp., Series 2003-29, Class V-A-1, 7.00% 2033		36			38
CS First Boston Mortgage Securities Corp., Series 2007-1, Class 1-A-6A, 5.863% 20372		4,555			2,358
J.P. Morgan Mortgage Trust, Series 2006-A3, Class 3-A-3, 5.679% 20362		3,684			2,968
Citigroup Mortgage Loan Trust, Inc., Series 2007-AR5, Class 1-A2A, 5.271% 20372		4,452			2,953
Washington Mutual Mortgage, WMALT Series 2007-2, Class 3-A-1, 5.50% 2022		1,905			1,794
Harborview Mortgage Loan Trust, Series 2006-6, Class 1A, 2.877% 20362		2,324			1,481
					206,932
Total mortgage-backed obligations					11,499,633
CORPORATE BONDS & NOTES — 29.58%
FINANCIALS — 10.02%
Banks — 3.14%
Société Générale 3.10% 20153	$	17,000		$	16,820
Société Générale 3.50% 20163		16,000			15,840
Société Générale 5.75% 20163		53,300			53,312
Société Générale 5.20% 20213		53,300			52,443
Royal Bank of Scotland PLC 3.40% 2013		16,500			16,892
Royal Bank of Scotland Group PLC 5.00% 2014		6,665			6,583
Royal Bank of Scotland PLC 3.95% 2015		17,000			17,096
Royal Bank of Scotland PLC 4.875% 2015		20,000			20,774
Royal Bank of Scotland Group PLC 5.05% 2015		8,240			8,200
Royal Bank of Scotland Group PLC 4.375% 2016		23,810			24,043
Royal Bank of Scotland Group PLC 4.70% 2018		3,485			3,019
Royal Bank of Scotland PLC 6.934% 2018	€	5,750			8,182
Royal Bank of Scotland PLC 6.125% 2021	$	6,000			6,162
HBOS PLC 6.75% 20183		88,651			85,427
HBOS PLC 4.375% 20192	€	2,870			3,821
HBOS PLC 6.00% 20333	$	19,520			14,918
Wells Fargo & Co. 3.676% 2016		42,440			43,649
Wells Fargo & Co. 4.60% 2021		49,785			50,159
HSBC Bank PLC 2.00% 20143		21,000			21,126
HSBC Bank PLC 3.50% 20153		9,000			9,244
HSBC Finance Corp. 0.684% 20162		11,250			10,678
HSBC Bank USA, NA 4.875% 2020		22,125			21,822
HSBC Bank PLC 4.75% 20213		12,550			12,595
HSBC Holdings PLC 5.10% 2021		5,000			5,134
Standard Chartered PLC 3.85% 20153		21,327			22,097
Standard Chartered PLC 3.20% 20163		33,245			32,961
Standard Chartered Bank 6.40% 20173		11,000			12,266
CIT Group Inc., Series A, 7.00% 20141		10,793			10,941
CIT Group Inc., Series A, 7.00% 2015		34,139			34,267
CIT Group Inc., Series A, 7.00% 2016		15,725			15,686
BNP Paribas 1.19% 20142		12,000			11,920
BNP Paribas 3.60% 2016		14,000			14,171
BNP Paribas 5.00% 2021		32,650			32,888
Sovereign Bancorp, Inc. 8.75% 2018		3,000			3,468
Santander Issuances, SA Unipersonal 6.50% 20192,3		31,500			31,659
Bank of Tokyo-Mitsubishi, Ltd. 2.45% 20153		17,000			17,019
Union Bank of California, NA 5.95% 2016		12,455			13,634
Korea Development Bank 5.30% 2013		13,635			14,369
Korea Development Bank 8.00% 2014		11,365			12,960
Intesa Sanpaolo SpA 6.50% 20213		25,935			27,097
BBVA Bancomer SA 4.50% 20163		17,605			18,001
BBVA Bancomer SA 7.25% 20203		3,785			3,984
BBVA Bancomer SA 6.50% 20213		3,475			3,562
UniCredito Italiano SpA 6.00% 20173		17,000			16,358
HVB Funding Trust I 8.741% 20313		8,264			8,099
Nordea Bank 2.125% 20143		15,000			15,114
Nordea Bank, Series 2, 3.70% 20143		8,000			8,376
Barclays Bank PLC 5.125% 2020		10,000			10,167
Barclays Bank PLC 5.14% 2020		10,850			10,309
ANZ National (International) Ltd. 3.125% 20153		16,500			16,636
Westpac Banking Corp. 3.00% 2015		16,000			16,117
Development Bank of Kazakhstan 5.50% 20153		12,635			13,077
VEB Finance Ltd. 6.902% 20203		9,100			9,729
VEB Finance Ltd. 6.80% 20253		1,500			1,528
PNC Funding Corp. 5.40% 2014		10,000			11,042
Banco del Estado de Chile 4.125% 20203		10,000			9,679
Commerzbank AG, Series 151, 6.625% 2019	£	1,350			2,103
Commerzbank AG, Series 774, 7.75% 2021	€	3,400			4,972
Regions Financial Corp. 6.375% 2012	$	6,792			6,941
HSBK (Europe) BV 7.25% 20213		6,710			6,820
Banco de Crédito del Perú 5.375% 20203		7,000			6,702
Bergen Bank 0.625% (undated)2		5,000			3,104
SunTrust Banks, Inc. 6.00% 2017		2,000			2,224
Norinchukin Finance (Cayman) Ltd. 5.625% 20162	£	205			330
Banco Santander-Chile 5.375% 20143	$	300			317
					1,040,633
Diversified financials — 3.08%
JPMorgan Chase & Co. 2.05% 2014		12,520			12,621
JPMorgan Chase & Co. 3.40% 2015		20,000			20,552
JPMorgan Chase & Co. 2.60% 2016		16,000			15,796
JPMorgan Chase & Co. 3.15% 2016		44,315			44,637
JPMorgan Chase & Co. 3.45% 2016		42,857			43,702
JPMorgan Chase & Co. 4.25% 2020		5,000			4,901
JPMorgan Chase & Co. 4.625% 2021		75,170			74,708
Citigroup Inc. 1.111% 20132		14,500			14,450
Citigroup Inc. 4.587% 2015		35,215			37,070
Citigroup Inc. 4.75% 2015		38,000			40,223
Citigroup Inc. 3.953% 2016		53,245			54,568
Citigroup Inc. 6.125% 2017		21,000			23,224
Citigroup Inc. 8.50% 2019		5,000			6,218
Citigroup Inc. 5.375% 2020		2,500			2,614
Countrywide Financial Corp., Series B, 5.80% 2012		18,000			18,780
Bank of America Corp., Series L, 3.625% 2016		17,500			17,569
Bank of America Corp. 5.75% 2017		1,000			1,065
Bank of America Corp. 5.65% 2018		2,000			2,112
Bank of America Corp. 5.625% 2020		26,250			27,151
Bank of America Corp. 5.00% 2021		50,425			49,908
Bank of America Corp. 5.875% 2021		28,510			29,975
Morgan Stanley, Series F, 2.875% 2014		20,750			21,010
Morgan Stanley 3.80% 2016		25,140			24,875
Morgan Stanley, Series F, 5.625% 2019		44,400			45,636
Morgan Stanley, Series F, 5.75% 2021		49,200			49,873
Goldman Sachs Group, Inc. 3.625% 2016		46,105			46,655
Goldman Sachs Group, Inc. 6.15% 2018		1,000			1,090
Goldman Sachs Group, Inc. 7.50% 2019		20,250			23,597
Goldman Sachs Group, Inc. 5.375% 2020		29,960			30,992
Goldman Sachs Group, Inc. 6.25% 2041		15,870			16,054
UBS AG 1.273% 20142		5,000			5,025
UBS AG 2.25% 2014		22,400			22,648
UBS AG 3.875% 2015		3,000			3,134
UBS AG 5.875% 2017		2,000			2,197
UBS AG 5.75% 2018		18,220			19,782
UBS AG 4.875% 2020		11,195			11,344
UBS AG 7.75% 2026		3,000			3,630
Lazard Group LLC 7.125% 2015		21,175			23,847
SLM Corp., Series A, 0.504% 20112		8,700			8,657
SLM Corp., Series A, 5.40% 2011		5,000			5,050
SLM Corp. 6.25% 2016		4,000			4,154
SLM Corp., Series A, 5.00% 2018		3,250			3,081
Bank of New York Mellon Corp., Series G, 2.50% 2016		16,000			16,163
Credit Suisse Group AG 2.20% 2014		15,000			15,205
Export-Import Bank of Korea 5.875% 2015		12,400			13,659
Northern Trust Corp. 4.625% 2014		8,475			9,261
Northern Trust Corp. 5.85% 20173		3,750			4,259
Springleaf Finance Corp., Term Loan B, 5.50% 20171,2,5		13,030			12,791
Capital One Financial Corp. 5.50% 2015		1,500			1,642
Capital One Financial Corp. 6.15% 2016		10,000			11,044
NASDAQ OMX Group, Inc. 5.25% 2018		8,100			8,303
Jefferies Group, Inc. 5.125% 2018		6,000			6,021
ING Bank NV 5.50% 2012	€	3,750			5,509
ACE Cash Express, Inc. 11.00% 20193	$	1,375			1,385
Community Choice Financial 10.75% 20193		675			689
International Lease Finance Corp. 5.00% 2012		390			397
American Express Co. 6.15% 2017		150			171
					1,020,674
Real estate — 2.30%
Prologis, Inc. 7.625% 2014		26,250			29,923
Prologis, Inc. 5.75% 2016		10,000			10,816
Prologis, Inc. 6.25% 2017		6,000			6,638
Prologis, Inc. 6.625% 2018		39,170			43,368
Prologis, Inc. 7.375% 2019		21,097			24,095
Prologis, Inc. 6.875% 2020		25,675			28,398
Kimco Realty Corp., Series C, 4.82% 2011		7,500			7,532
Kimco Realty Corp. 6.00% 2012		12,250			12,966
Pan Pacific Retail Properties, Inc. 6.125% 2013		1,605			1,704
Kimco Realty Corp., Series C, 4.82% 2014		29,280			31,294
Kimco Realty Corp., Series C, 4.904% 2015		1,770			1,903
Kimco Realty Corp., Series C, 5.783% 2016		11,000			12,162
Kimco Realty Corp. 5.70% 2017		28,450			31,573
Kimco Realty Corp. 4.30% 2018		24,420			25,007
Kimco Realty Corp. 6.875% 2019		4,000			4,655
Westfield Group 5.40% 20123		18,400			19,340
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 5.125% 20143		5,000			5,451
Westfield Group 7.50% 20143		12,500			14,417
Westfield Group 5.75% 20153		32,000			35,582
Westfield Group 5.70% 20163		14,195			15,725
Westfield Group 7.125% 20183		12,135			14,182
WEA Finance LLC 4.625% 20213		17,720			17,230
Hospitality Properties Trust 6.75% 2013		14,745			15,734
Hospitality Properties Trust 7.875% 2014		950			1,073
Hospitality Properties Trust 5.125% 2015		6,665			7,019
Hospitality Properties Trust 6.30% 2016		26,868			29,374
Hospitality Properties Trust 5.625% 2017		1,195			1,237
Hospitality Properties Trust 6.70% 2018		41,890			44,958
Simon Property Group, LP 6.75% 2014		9,100			10,319
Simon Property Group, LP 4.20% 2015		2,430			2,587
Simon Property Group, LP 5.875% 2017		15,000			17,008
Simon Property Group, LP 6.125% 2018		27,075			30,404
Simon Property Group, LP 10.35% 2019		8,995			12,469
Realogy Corp., Letter of Credit, 3.223% 20161,2,5		1,457			1,311
Realogy Corp., Term Loan B, 4.518% 20161,2,5		27,779			25,001
Realogy Corp., Second Lien Term Loan A, 13.50% 20171,5		20,325			21,692
Realogy Corp. 7.875% 20193		14,175			14,104
Developers Diversified Realty Corp. 5.375% 2012		4,635			4,773
Developers Diversified Realty Corp. 5.50% 2015		11,643			12,415
Developers Diversified Realty Corp. 9.625% 2016		3,585			4,330
Developers Diversified Realty Corp. 7.50% 2017		7,655			8,679
Developers Diversified Realty Corp. 4.75% 2018		2,000			1,974
Brandywine Operating Partnership, LP 5.75% 2012		27,110			28,017
Brandywine Operating Partnership, LP 5.40% 2014		3,000			3,214
ERP Operating LP 6.584% 2015		10,000			11,457
ERP Operating LP 7.125% 2017		5,000			5,868
UDR, Inc., Series A, 5.25% 2015		13,030			13,968
Rouse Co. 7.20% 2012		1,025			1,072
Rouse Co. 5.375% 2013		7,250			7,313
Rouse Co. 6.75% 20133		3,750			3,895
Boston Properties, Inc. 5.875% 2019		10,000			10,975
Host Marriott, LP, Series O, 6.375% 2015		2,000			2,050
Host Hotels & Resorts LP 9.00% 2017		1,800			2,034
Host Hotels & Resorts LP 5.875% 20193		5,325			5,358
Weingarten Realty Investors, Series A, 4.857% 2014		6,080			6,439
					762,082
Insurance — 1.44%
ACE INA Holdings Inc. 5.875% 2014		17,445			19,518
ACE INA Holdings Inc. 2.60% 2015		26,265			26,403
ACE INA Holdings Inc. 5.70% 2017		3,500			3,906
ACE INA Holdings Inc. 5.80% 2018		1,000			1,114
ACE Capital Trust II 9.70% 2030		10,000			12,981
Liberty Mutual Group Inc. 5.75% 20143		10,435			11,079
Liberty Mutual Group Inc. 6.70% 20163		6,250			6,941
Liberty Mutual Group Inc. 6.50% 20353		40,675			37,917
CNA Financial Corp. 5.85% 2014		6,500			7,047
CNA Financial Corp. 6.50% 2016		10,000			11,173
CNA Financial Corp. 7.35% 2019		4,270			4,875
CNA Financial Corp. 5.875% 2020		3,250			3,385
CNA Financial Corp. 5.75% 2021		5,000			5,173
CNA Financial Corp. 7.25% 2023		17,145			19,006
PRICOA Global Funding I 5.30% 20133		2,500			2,714
Prudential Holdings, LLC, Series C, 8.695% 20231,3		35,310			42,887
Monumental Global Funding 5.50% 20133		16,370			17,558
Monumental Global Funding III 5.25% 20143		21,500			22,898
AEGON NV 6.125% 2031	£	1,730			2,650
MetLife Global Funding I 5.125% 20133	$	18,310			19,491
MetLife Global Funding I 2.50% 20153		19,500			19,498
AXA SA 8.60% 2030		2,315			2,765
AXA SA 6.463% (undated)2,3		30,000			26,250
New York Life Global Funding 5.25% 20123		15,300			16,165
New York Life Global Funding 4.65% 20133		9,370			10,028
Principal Life Insurance Co. 5.30% 2013		18,150			19,527
Allstate Life Global Funding Trust, Series 2008-4, 5.375% 2013		15,000			16,173
UnumProvident Finance Co. PLC 6.85% 20153		2,839			3,181
Unum Group 7.125% 2016		8,661			9,952
Unum Group 5.625% 2020		825			865
RSA Insurance Group PLC 9.375% 20392	£	3,765			7,226
RSA Insurance Group PLC 8.50% (undated)2		2,429			4,113
Jackson National Life Global 5.375% 20133	$	10,000			10,711
Lincoln National Corp. 5.65% 2012		10,000			10,482
Standard Life PLC 6.375% 20222	€	6,510			9,482
Assicurazioni Generali SpA. 6.90% 20222		6,420			9,450
Nationwide Financial Services, Inc. 6.75% 20672	$	7,085			6,676
Munich Re Finance BV 6.75% 20232	€	3,550			5,351
Berkshire Hathaway Inc. 3.20% 2015	$	5,000			5,216
TIAA Global Markets 4.95% 20133		3,000			3,231
Chubb Corp. 6.375% 20672		1,000			1,040
Loews Corp. 6.00% 2035		225			221
					476,319
Automobiles & components — 0.06%
Toyota Motor Credit Corp. 1.375% 2013		16,500			16,622
Ford Motor Credit Co. 7.25% 2011		2,000			2,030
					18,652
CONSUMER DISCRETIONARY — 3.36%
Media — 1.90%
Tele-Communications, Inc. 9.80% 2012		17,500			18,406
Comcast Corp. 6.30% 2017		13,410			15,565
Comcast Corp. 5.875% 2018		29,400			33,020
Comcast Corp. 6.45% 2037		8,500			9,121
Comcast Corp. 6.95% 2037		15,520			17,576
Comcast Corp. 6.55% 2039		1,000			1,086
Comcast Corp. 6.40% 2040		20,100			21,585
Time Warner Cable Inc. 6.20% 2013		9,700			10,645
Time Warner Cable Inc. 7.50% 2014		15,675			18,070
Time Warner Cable Inc. 8.25% 2014		3,250			3,782
Time Warner Cable Inc. 6.75% 2018		25,400			29,498
Time Warner Cable Inc. 8.25% 2019		7,215			9,012
Time Warner Cable Inc. 4.125% 2021		15,000			14,527
Time Warner Cable Inc. 6.75% 2039		6,800			7,463
Time Warner Inc. 5.875% 2016		30,670			35,098
Time Warner Companies, Inc. 7.25% 2017		1,600			1,928
Time Warner Inc. 4.75% 2021		14,840			15,125
Time Warner Companies, Inc. 7.57% 2024		12,340			15,203
Time Warner Inc. 6.50% 2036		3,660			3,914
Time Warner Inc. 6.20% 2040		9,450			9,714
Time Warner Inc. 6.25% 2041		9,700			10,111
NBC Universal, Inc. 2.10% 20143		16,000			16,223
NBC Universal, Inc. 2.875% 20163		17,000			17,046
NBC Universal, Inc. 5.15% 20203		14,000			14,809
NBC Universal, Inc. 4.375% 20213		22,390			22,200
NBC Universal, Inc. 6.40% 20403		6,600			7,118
NBC Universal, Inc. 5.95% 20413		5,100			5,204
News America Holdings Inc. 8.00% 2016		1,000			1,230
News America Inc. 6.90% 2019		12,750			14,862
News America Inc. 4.50% 20213		5,250			5,191
News America Inc. 6.15% 2037		300			305
News America Inc. 6.65% 2037		36,900			39,673
News America Inc. 6.15% 20413		12,000			11,928
Thomson Reuters Corp. 6.50% 2018		42,225			49,471
Cox Communications, Inc. 7.125% 2012		7,000			7,510
Cox Communications, Inc. 5.45% 2014		17,045			19,012
Cox Communications, Inc. 9.375% 20193		7,225			9,616
Virgin Media Finance PLC 8.375% 20193		8,050			9,016
Virgin Media Secured Finance PLC 5.25% 20213		2,650			2,827
Virgin Media Secured Finance PLC 5.50% 2021	£	3,000			4,775
Mediacom LLC and Mediacom Capital Corp. 9.125% 2019	$	9,000			9,540
Charter Communications, Inc. 13.50% 2016		7,334			8,672
Clear Channel Worldwide Holdings, Inc., Series B, 9.25% 2017		6,500			7,118
Nara Cable Funding Ltd. 8.875% 2018	€	4,900			7,088
Univision Communications Inc., Term Loan, 4.436% 20171,2,5	$	6,391			6,079
Univision Communications Inc. 8.50% 20213		495			496
Regal Entertainment Group 9.125% 2018		4,000			4,160
Regal Cinemas Corp. 8.625% 2019		2,000			2,110
Radio One, Inc., Term Loan B, 7.50% 20161,2,5		6,185			6,253
AMC Entertainment Inc. 8.75% 2019		5,775			6,122
Grupo Televisa, SAB 6.625% 2040		5,200			5,499
DISH DBS Corp 6.75% 20213		4,775			4,918
Cinemark USA, Inc. 8.625% 2019		2,000			2,200
UPC Germany GmbH 9.625% 2019	€	1,250			1,976
Cequel Communications Holdings I, LLC and Cequel Capital Corp. 8.625% 20173	$	1,375			1,437
					632,133
Retailing — 0.56%
Staples, Inc. 9.75% 2014		29,627			35,291
Macy’s Retail Holdings, Inc. 8.125% 20152		22,270			26,529
Nordstrom, Inc. 6.75% 2014		18,975			21,729
Michaels Stores, Inc., Term Loan B1, 2.563% 20131,2,5		1,913			1,884
Michaels Stores, Inc. 0%/13.00% 20166		7,235			7,524
Michaels Stores, Inc., Term Loan B2, 4.813% 20161,2,5		648			646
Michaels Stores, Inc. 11.375% 2016		3,000			3,210
Michaels Stores, Inc. 7.75% 20183		8,000			8,060
Marks and Spencer Group PLC 6.25% 20173		6,135			6,561
Marks and Spencer Group PLC 7.125% 20373		5,856			5,808
Neiman Marcus Group, Inc., Term Loan B, 4.75% 20181,2,5		12,335			12,184
Toys “R” Us-Delaware, Inc., Term Loan B, 6.00% 20161,2,5		4,317			4,323
Toys “R” Us Property Co. II, LLC 8.50% 2017		6,275			6,589
Toys “R” Us Property Co. I, LLC 10.75% 2017		650			726
Sally Holdings LLC and Sally Capital Inc. 9.25% 2014		6,550			6,845
Sally Holdings LLC and Sally Capital Inc. 10.50% 2016		1,050			1,126
Dollar General Corp., Term Loan B2, 2.936% 20141,2,5		854			853
Dollar General Corp. 10.625% 2015		3,042			3,213
Dollar General Corp. 11.875% 20172,7		3,244			3,714
J.C. Penney Co., Inc. 5.75% 2018		4,523			4,614
J.C. Penney Co., Inc. 5.65% 2020		3,000			2,985
Home Depot, Inc. 4.40% 2021		7,500			7,551
Limited Brands, Inc. 7.00% 2020		1,770			1,872
Limited Brands, Inc. 6.625% 2021		4,230			4,346
Lowe’s Companies, Inc. 3.75% 2021		4,000			3,925
Lowe’s Companies, Inc. 5.80% 2040		1,790			1,869
PETCO Animal Supplies, Inc. 9.25% 20183		2,050			2,188
					186,165
Consumer services — 0.48%
MGM Resorts International 6.75% 2012		9,235			9,327
MGM Resorts International 6.75% 2013		16,825			16,951
MGM Resorts International 13.00% 2013		3,825			4,561
MGM Resorts International 5.875% 2014		19,490			18,832
MGM Resorts International 10.375% 2014		925			1,055
MGM Resorts International 6.625% 2015		2,600			2,451
Revel Entertainment, Term Loan B, 9.00% 20181,2,5		17,500			16,395
Boyd Gaming Corp. 6.75% 2014		6,450			6,426
Boyd Gaming Corp. 7.125% 2016		7,870			7,299
Boyd Gaming Corp. 9.125% 20183		1,500			1,534
Marriott International, Inc., Series I, 6.375% 2017		12,750			14,656
Seminole Tribe of Florida 5.798% 20131,3		6,390			6,419
Seminole Tribe of Florida 7.804% 20201,3		8,325			8,190
Mohegan Tribal Gaming Authority 8.00% 2012		6,375			5,196
Mohegan Tribal Gaming Authority 7.125% 2014		6,750			4,691
Circus and Eldorado Joint Venture and Silver Legacy Resort Casino 10.125% 2012		7,525			7,111
NCL Corp. Ltd. 11.75% 2016		2,550			2,952
NCL Corp. Ltd. 9.50% 20183		2,525			2,702
Royal Caribbean Cruises Ltd. 11.875% 2015		3,900			4,826
Burger King Corp 0%/11.00% 20193,6		8,075			4,704
CityCenter Holdings, LLC 7.625% 20163		3,270			3,393
Wynn Las Vegas, LLC and Wynn Capital Corp. 7.75% 2020		3,000			3,274
Seneca Gaming Corp. 8.25% 20183		2,775			2,879
Education Management LLC and Education Management Finance Corp. 8.75% 2014		1,850			1,903
					157,727
Automobiles & components — 0.30%
DaimlerChrysler North America Holding Corp., Series E, 5.75% 2011		7,505			7,574
DaimlerChrysler North America Holding Corp. 6.50% 2013		18,775			20,898
Daimler Finance NA LLC 3.00% 20163		4,000			4,054
DaimlerChrysler North America Holding Corp. 8.50% 2031		10,750			14,575
Volkswagen International Finance NV 0.917% 20142,3		13,000			13,055
Volkswagen International Finance NV 2.875% 20163		3,000			3,024
Volkswagen International Finance NV 4.00% 20203		13,650			13,667
Allison Transmission Holdings, Inc. 11.00% 20153		16,670			17,837
Tower Automotive Holdings 10.625% 20173		2,764			2,992
Peugeot SA 4.375% 20163		2,000			2,043
					99,719
Consumer durables & apparel — 0.12%
Fortune Brands, Inc. 6.375% 2014		20,000			22,249
Hanesbrands Inc., Series B, 3.77% 20142		11,105			11,091
Hanesbrands Inc. 8.00% 2016		3,100			3,325
Jarden Corp. 8.00% 2016		3,020			3,292
					39,957
ENERGY — 2.81%
Kinder Morgan Energy Partners LP 5.00% 2013		6,571			7,129
Kinder Morgan Energy Partners LP 5.125% 2014		22,802			25,048
Kinder Morgan Energy Partners LP 5.625% 2015		14,100			15,745
Kinder Morgan Energy Partners LP 3.50% 2016		1,700			1,752
Kinder Morgan Energy Partners LP 6.00% 2017		17,000			19,194
Kinder Morgan Energy Partners LP 9.00% 2019		4,395			5,644
Kinder Morgan Energy Partners LP 6.85% 2020		45,435			52,621
Kinder Morgan Energy Partners LP 6.55% 2040		3,250			3,414
Kinder Morgan Energy Partners LP 6.375% 2041		2,750			2,825
Enbridge Energy Partners, LP, Series B, 6.50% 2018		28,120			32,284
Enbridge Energy Partners, LP 9.875% 2019		27,505			36,286
Enbridge Energy Partners, LP 5.20% 2020		10,940			11,620
Enbridge Energy Partners, LP, Series B, 7.50% 2038		23,950			28,726
Enbridge Energy Partners, LP 8.05% 20772		3,880			4,215
Anadarko Petroleum Corp. 5.95% 2016		15,500			17,466
Anadarko Petroleum Corp. 6.375% 2017		28,750			33,000
Anadarko Petroleum Corp. 8.70% 2019		15,950			20,355
Anadarko Petroleum Corp. 6.20% 2040		8,250			8,389
Williams Partners L.P. and Williams Partners Finance Corp. 3.80% 2015		17,500			18,347
Transcontinental Gas Pipe Line Corp. 6.40% 2016		5,000			5,801
Williams Partners L.P. and Williams Partners Finance Corp. 7.25% 2017		1,300			1,534
Williams Partners L.P. 4.125% 2020		10,000			9,617
Williams Partners L.P. and Williams Partners Finance Corp. 5.25% 2020		17,730			18,699
Williams Partners L.P. and Williams Partners Finance Corp. 6.30% 2040		4,000			4,161
Shell International Finance BV 1.30% 2011		15,125			15,161
Shell International Finance BV 1.875% 2013		16,500			16,862
Shell International Finance BV 3.10% 2015		10,000			10,461
Shell International Finance BV 4.30% 2019		8,625			9,074
StatoilHydro ASA 2.90% 2014		15,360			16,128
StatoilHydro ASA 3.875% 2014		3,000			3,216
Statoil ASA 3.125% 2017		26,500			26,769
StatoilHydro ASA 5.25% 2019		2,600			2,890
Husky Energy Inc. 5.90% 2014		3,250			3,620
Husky Energy Inc. 6.20% 2017		17,415			19,760
Husky Energy Inc. 7.25% 2019		16,410			19,699
Husky Energy Inc. 6.80% 2037		4,750			5,375
Gazprom OJSC 5.092% 20153		13,725			14,381
Gazprom OJSC, Series 13, 6.605% 2018	€	3,200			5,073
Gazprom OJSC 6.51% 20223	$	14,500			15,406
Gazprom OJSC, Series 9, 6.51% 2022		3,500			3,719
Gazprom OJSC 7.288% 20373		4,500			4,928
Enbridge Inc. 5.80% 2014		9,200			10,217
Enbridge Inc. 4.90% 2015		3,250			3,539
Enbridge Inc. 5.60% 2017		22,980			25,818
Pemex Finance Ltd., Series 1999-2, Class A-3, 10.61% 20171		11,700			14,356
Pemex Project Funding Master Trust 5.75% 2018		3,150			3,470
Pemex Project Funding Master Trust, Series 13, 6.625% 2035		11,750			12,444
Pemex Project Funding Master Trust 6.50% 20413		4,000			4,079
Ras Laffan Liquefied Natural Gas III 5.50% 2014		5,000			5,494
Ras Laffan Liquefied Natural Gas III 5.50% 20143		330			363
Ras Laffan Liquefied Natural Gas Co. Ltd. 8.294% 20141		600			659
Ras Laffan Liquefied Natural Gas III 5.832% 20161		1,681			1,836
Ras Laffan Liquefied Natural Gas II 5.298% 20201,3		19,789			21,174
Ras Laffan Liquefied Natural Gas III 6.332% 20271		2,000			2,110
Enterprise Products Operating LLC 5.65% 2013		17,850			19,155
Enterprise Products Operating LLC 5.20% 2020		5,500			5,810
Enterprise Products Operating LLC 5.25% 2020		2,000			2,131
Enterprise Products Operating LLC 7.00% 20672		1,770			1,772
Total Capital SA 3.00% 2015		17,000			17,703
Total Capital SA 3.125% 2015		2,600			2,713
Total Capital SA 4.45% 2020		3,500			3,660
Petrobras International 5.75% 2020		4,600			4,930
Petrobras International 5.375% 2021		4,000			4,127
Petrobras International 6.875% 2040		14,010			14,987
Petroplus Finance Ltd. 6.75% 20143		7,100			6,994
Petroplus Finance Ltd. 7.00% 20173		11,675			11,033
Petroplus Finance Ltd. 9.375% 20193		3,650			3,687
Woodside Finance Ltd. 4.60% 20213		21,685			21,325
Reliance Holdings Ltd. 4.50% 20203		6,250			5,850
Reliance Holdings Ltd. 6.25% 20403		13,000			12,032
TransCanada PipeLines Ltd. 6.50% 2018		7,500			8,836
TransCanada PipeLines Ltd. 7.125% 2019		3,040			3,731
TransCanada PipeLines Ltd. 6.35% 20672		4,145			4,172
Chevron Corp. 4.95% 2019		14,500			16,229
Devon Energy Corp. 5.625% 2014		2,500			2,772
Devon Energy Corp. 6.30% 2019		8,990			10,589
Rockies Express Pipeline LLC 6.85% 20183		10,120			11,363
Odebrecht Drilling Norbe VIII/IX Ltd 6.35% 20211,3		10,155			10,764
Spectra Energy Partners, LP 2.95% 2016		6,375			6,363
Spectra Energy Partners 4.60% 2021		2,185			2,162
BG Energy Capital PLC 2.50% 20153		7,200			7,211
Cenovus Energy Inc. 4.50% 2014		6,000			6,517
PTT Exploration & Production Ltd 5.692% 20213		4,500			4,578
Laredo Petroleum, Inc. 9.50% 20193		3,750			3,966
Apache Corp. 6.00% 2013		2,420			2,681
PETRONAS Capital Ltd. 7.00% 20123		2,250			2,376
Energy Transfer Partners, LP 7.50% 2020		2,200			2,343
General Maritime Corp. 12.00% 2017		2,650			2,160
Overseas Shipholding Group, Inc. 8.125% 2018		1,650			1,627
Teekay Corp. 8.50% 2020		725			752
					931,054
INDUSTRIALS — 2.67%
Transportation — 1.33%
Continental Airlines, Inc. 8.75% 2011		300			307
Continental Airlines, Inc., Series 2006-1, Class G, FGIC insured, 0.603% 20151,2		1,044			998
Continental Airlines, Inc., Series 1997-1, Class A, 7.461% 20161		10,975			11,078
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20171		60			60
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20181		794			783
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20181		146			145
Continental Airlines, Inc., Series 1998-1, Class A, 6.648% 20191		14,569			15,407
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20191		31,904			33,839
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20191		346			349
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20201		12,002			12,617
Continental Airlines, Inc., Series 1999-1, Class B, 6.795% 20201		8,044			7,843
Continental Airlines, Inc., Series 1999-2, Class A-1, 7.256% 20211		274			290
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20211,3		834			800
Continental Airlines, Inc., Series 1999-2, Class B, 7.566% 20211		2,073			2,060
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20221		10,899			11,443
Continental Airlines, Inc., Series 2007-1, Class B, 6.903% 20221		3,892			3,902
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20221		12,661			13,507
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20221		10,375			11,192
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20221		996			1,011
Northwest Airlines, Inc., Term Loan B, 3.75% 20131,2,5		1,829			1,756
Delta Air Lines, Inc., Series 2001-1, Class A-2, 7.111% 20131		10,000			10,075
Delta Air Lines, Inc., Series 2002-1, Class G-2, MBIA insured, 6.417% 20141		8,040			8,221
Northwest Airlines, Inc., Term Loan A, 2.00% 20181,2,5		57,831			52,627
Delta Air Lines, Inc., Series 2002-1, Class G-1, MBIA insured, 6.718% 20241		4,019			4,069
Union Pacific Corp. 5.125% 2014		8,430			9,210
Union Pacific Corp. 5.75% 2017		12,250			14,093
Union Pacific Corp. 4.00% 2021		13,500			13,689
Union Pacific Corp. 4.163% 20223		7,437			7,378
Union Pacific Railroad Co. Pass Through Trust, Series 2001-1, 6.63% 20221		6,391			7,351
Union Pacific Corp. 6.15% 2037		10,930			12,006
Burlington Northern Santa Fe LLC 7.00% 2014		5,125			5,838
Burlington Northern Santa Fe LLC 5.65% 2017		12,500			14,220
Burlington Northern Santa Fe LLC 5.75% 2018		9,035			10,259
Burlington Northern Santa Fe, LLC 3.60% 2020		7,500			7,269
Burlington Northern Santa Fe LLC 6.15% 2037		2,500			2,718
Burlington Northern Santa Fe, LLC 5.05% 2041		1,000			935
AMR Corp. 9.00% 2012		1,300			1,319
American Airlines, Inc., Series 2001-2, Class A-2, 7.858% 20131		34,650			35,191
American Airlines, Inc., Series 2001-1, Class B, 7.377% 20191		235			201
Norfolk Southern Corp. 5.75% 2016		6,740			7,673
Norfolk Southern Corp. 5.75% 2018		5,000			5,669
Norfolk Southern Corp. 5.90% 2019		11,250			12,919
Norfolk Southern Corp. 7.05% 2037		1,400			1,705
CEVA Group PLC, Bridge Loan, 9.75% 20151,2,4,5		1,500			1,346
CEVA Group PLC 11.625% 20163		4,890			5,342
CEVA Group PLC 8.375% 20173		15,975			16,235
CEVA Group PLC 11.50% 20183		3,980			4,209
CSX Corp. 5.75% 2013		8,385			9,025
CSX Corp. 7.375% 2019		7,500			9,156
Kansas City Southern Railway Co. 13.00% 2013		2,190			2,560
Kansas City Southern Railway Co. 8.00% 2015		4,250			4,579
Navios Maritime Acquisition Corporation and Navios Acquisition Finance (US) Inc. 8.625% 2017		2,950			2,920
Navios Maritime Holdings Inc. 8.125% 20193		3,650			3,522
Navios South American Logistics Inc. 9.25% 20193		375			380
RailAmerica, Inc. 9.25% 2017		3,200			3,528
Canadian National Railway Co. 5.55% 2018		2,750			3,139
CMA CGM 8.50% 20173		2,025			1,711
					441,674
Capital goods — 1.25%
Volvo Treasury AB 5.95% 20153	$	60,603			67,095
Volvo Treasury AB 5.00% 2017	€	3,115			4,762
General Electric Capital Corp., Series A, 2.25% 2015	$	21,500			21,156
General Electric Capital Corp., Series A, 6.00% 2019		10,000			11,091
General Electric Capital Corp. 4.375% 2020		19,000			18,817
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 2.146% 20141,2,5		4,110			3,468
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 2.186% 20141,2,5		39,740			33,540
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 10.50% 20141,2,5		1,194			1,207
Hawker Beechcraft Acquisition Co., LLC 8.875% 20152,7		1,568			1,239
Hawker Beechcraft Acquisition Co., LLC 9.75% 2017		170			120
Northrop Grumman Corp. 3.70% 2014		9,500			10,088
Northrop Grumman Corp. 5.05% 2019		17,180			18,543
Ply Gem Industries, Inc. 13.125% 2014		3,855			4,067
Ply Gem Industries, Inc. 8.25% 20183		19,425			18,502
US Investigations Services, Inc., Term Loan B, 2.997% 20151,2,5		617			607
US Investigations Services, Inc., Term Loan B, 7.75% 20151,2,5		5,831			5,867
US Investigations Services, Inc. 10.50% 20153		7,200			7,488
US Investigations Services, Inc. 11.75% 20163		6,155			6,494
Associated Materials, LLC 9.125% 20173		19,455			19,455
Nortek Inc. 10.00% 20183		8,000			8,040
Nortek Inc. 8.50% 20213		9,455			8,793
BAE Systems Holdings Inc. 4.95% 20143		14,290			15,364
United Technologies Corp. 4.50% 2020		14,430			15,306
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B1, 5.28% 20141,2,5		302			300
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B2, 5.28% 20141,2,5		290			289
DAE Aviation Holdings, Inc. 11.25% 20153		13,285			13,883
Raytheon Co. 6.75% 2018		4,030			4,849
Raytheon Co. 4.40% 2020		7,895			8,185
Odebrecht Finance Ltd 7.00% 2020		6,800			7,514
Odebrecht Finance Ltd 6.00% 20233		5,200			5,194
Honeywell International Inc. 5.00% 2019		8,725			9,609
Ashtead Capital, Inc. 9.00% 20163		7,450			7,804
Hutchison Whampoa International Ltd. 6.50% 20133		7,200			7,793
Lockheed Martin Corp. 4.121% 2013		6,000			6,335
Esterline Technologies Corp. 6.625% 2017		2,495			2,595
Esterline Technologies Corp. 7.00% 2020		3,415			3,594
Danaher Corp. 2.30% 2016		1,065			1,065
Danaher Corp. 3.90% 2021		5,000			4,991
Atlas Copco AB 5.60% 20173		4,525			5,040
Euramax International, Inc. 9.50% 20163		5,030			4,904
Sequa Corp., Term Loan B, 3.50% 20141,2,5		3,374			3,330
TransDigm Inc. 7.75% 20183		3,125			3,297
H&E Equipment Services, Inc. 8.375% 2016		2,350			2,415
Manitowoc Company, Inc. 8.50% 2020		2,000			2,145
John Deere Capital Corp., Series D, 4.50% 2013		2,000			2,128
Eaton Corp. 0.575% 20142		2,000			2,004
RBS Global, Inc. and Rexnord LLC 11.75% 2016		200			213
RBS Global, Inc. and Rexnord LLC 8.50% 2018		1,650			1,751
RSC Equipment Rental, Inc. and RSC Holdings III, LLC 9.50% 2014		325			335
RSC Equipment Rental, Inc. and RSC Holdings III, LLC 8.25% 2021		600			600
					413,271
Commercial & professional services — 0.09%
ARAMARK Corp. 3.773% 20152		3,450			3,372
ARAMARK Corp. 8.50% 2015		9,450			9,863
Republic Services, Inc. 3.80% 2018		2,000			2,012
Republic Services, Inc. 5.00% 2020		5,000			5,294
Republic Services, Inc. 5.70% 2041		2,000			1,959
Waste Management, Inc. 4.60% 2021		5,455			5,577
Nielsen Finance LLC and Nielsen Finance Co. 11.625% 2014		1,073			1,258
Nielsen Finance LLC and Nielsen Finance Co. 11.50% 2016		308			362
					29,697
HEALTH CARE — 2.50%
Pharmaceuticals, biotechnology & life sciences — 1.42%
Roche Holdings Inc. 5.00% 20143		6,685			7,328
Roche Holdings Inc. 6.00% 20193		33,270			38,391
Roche Holdings Inc. 7.00% 20393		30,560			37,337
Pfizer Inc 4.45% 2012		11,040			11,357
Pfizer Inc 5.35% 2015		125			141
Pfizer Inc 6.20% 2019		28,140			32,968
Pfizer Inc 7.20% 2039		15,000			18,896
Biogen Idec Inc. 6.00% 2013		30,050			32,162
Biogen Idec Inc. 6.875% 2018		20,000			23,388
Elan Finance PLC and Elan Finance Corp. 8.875% 2013		14,165			14,802
Elan Finance PLC and Elan Finance Corp. 8.75% 2016		33,045			34,904
Elan Finance PLC and Elan Finance Corp. 8.75% 20163		1,750			1,844
GlaxoSmithKline Capital Inc. 4.85% 2013		20,000			21,515
GlaxoSmithKline Capital Inc. 5.65% 2018		18,000			20,561
GlaxoSmithKline Capital Inc. 6.375% 2038		7,100			8,215
Novartis Capital Corp. 1.90% 2013		15,000			15,357
Novartis Capital Corp. 4.125% 2014		11,025			11,889
Novartis Securities Investment Ltd. 5.125% 2019		12,530			13,936
Abbott Laboratories 2.70% 2015		11,500			11,966
Abbott Laboratories 5.125% 2019		10,000			11,019
Schering-Plough Corp. 5.30% 20132		6,000			6,638
Schering-Plough Corp. 5.375% 2014	€	6,395			10,010
Schering-Plough Corp. 6.00% 2017	$	5,300			6,244
Quintiles Transnational 9.50% 20142,3,7		1,980			2,034
Quintiles, Term Loan B, 5.00% 20181,2,5		20,550			20,457
Sanofi-aventis SA 0.556% 20142		21,000			21,123
Johnson & Johnson 0.348% 20142		13,000			13,041
AstraZeneca PLC 5.40% 2012		12,000			12,701
Grifols Inc 8.25% 20183		5,065			5,306
Endo Pharmaceuticals Holdings Inc. 7.00% 20193		1,785			1,839
Endo Pharmaceuticals Holdings Inc. 7.00% 20203		1,100			1,136
Patheon Inc. 8.625% 20173		2,565			2,610
					471,115
Health care equipment & services — 1.08%
Express Scripts Inc. 5.25% 2012		6,320			6,577
Express Scripts Inc. 6.25% 2014		24,133			27,195
Express Scripts Inc. 3.125% 2016		18,427			18,561
Cardinal Health, Inc. 5.50% 2013		9,535			10,296
Cardinal Health, Inc. 4.00% 2015		12,490			13,217
Cardinal Health, Inc. 4.625% 2020		6,020			6,122
Allegiance Corp. 7.00% 2026		9,635			10,599
UnitedHealth Group Inc. 6.00% 2017		21,892			24,828
UnitedHealth Group Inc. 3.875% 2020		2,900			2,843
UnitedHealth Group Inc. 4.70% 2021		8,920			9,317
UnitedHealth Group Inc. 5.70% 2040		1,250			1,241
Boston Scientific Corp. 5.125% 2017		23,410			24,771
Boston Scientific Corp. 6.00% 2020		5,770			6,257
VWR Funding, Inc., Series B, 10.25% 20152,7		25,784			27,073
PTS Acquisition Corp. 9.50% 20152,7		22,716			22,830
Coventry Health Care, Inc. 6.30% 2014		13,395			14,431
Coventry Health Care, Inc. 5.95% 2017		7,640			8,176
Tenet Healthcare Corp. 7.375% 2013		8,195			8,523
Tenet Healthcare Corp. 9.25% 2015		11,600			12,745
Medco Health Solutions, Inc. 2.75% 2015		13,625			13,758
Symbion Inc 8.00% 20163		11,850			11,643
Surgical Care Affiliates, Inc. 8.875% 20152,3,7		3,927			4,075
Surgical Care Affiliates, Inc. 10.00% 20173		6,845			7,102
inVentiv Health Inc. 10.00% 20183		10,950			10,403
Bausch & Lomb Inc. 9.875% 2015		9,625			10,251
Multiplan Inc. 9.875% 20183		9,500			10,141
Merge Healthcare Inc. 11.75% 20153		4,025			4,327
Merge Healthcare Inc 11.75% 2015		1,225			1,317
McKesson Corp. 3.25% 2016		1,580			1,631
McKesson Corp. 4.75% 2021		1,000			1,040
McKesson Corp. 6.00% 2041		2,545			2,728
Centene Corp. 5.75% 2017		5,260			5,175
Vanguard Health Systems Inc. 0% 2016		7,770			5,157
Rotech Healthcare Inc. 10.50% 20183		5,165			5,010
Aetna Inc. 3.95% 2020		5,000			4,919
HealthSouth Corp. 10.75% 2016		1,521			1,612
HCA Inc. 9.25% 2016		530			565
HCA Inc. 9.625% 20162,7		557			594
ConvaTec Healthcare 10.50% 20183		1,010			1,050
WellPoint, Inc. 4.35% 2020		1,000			1,012
					359,112
UTILITIES — 2.44%
National Rural Utilities Cooperative Finance Corp. 5.50% 2013		21,750			23,706
National Rural Utilities Cooperative Finance Corp. 10.375% 2018		41,425			57,450
MidAmerican Energy Holdings Co. 5.875% 2012		15,000			15,911
MidAmerican Energy Co. 4.65% 2014		5,000			5,485
MidAmerican Energy Holdings Co., Series D, 5.00% 2014		225			244
MidAmerican Energy Co. 5.95% 2017		3,000			3,477
MidAmerican Energy Co. 5.30% 2018		5,000			5,541
MidAmerican Energy Holdings Co. 5.75% 2018		37,700			42,453
Consumers Energy Co., First Mortgage Bonds, 5.15% 2017		11,574			12,854
Consumers Energy Co. 5.65% 2018		6,925			7,778
Consumers Energy Co., First Mortgage Bonds, 6.125% 2019		35,427			41,097
Consumers Energy Co., First Mortgage Bonds, 6.70% 2019		4,278			5,140
Niagara Mohawk Power 3.553% 20143		15,690			16,442
National Grid PLC 6.30% 2016		37,605			43,243
National Grid Co. PLC 5.875% 2024	£	170			292
Veolia Environnement 5.25% 2013	$	18,235			19,560
Veolia Environnement 6.00% 2018		11,445			12,936
Veolia Environnement 6.125% 2033	€	12,275			19,135
Energy East Corp. 6.75% 2012	$	7,155			7,542
Iberdrola Finance Ireland 3.80% 20143		17,515			17,902
Scottish Power PLC 5.375% 2015		23,250			25,130
Israel Electric Corp. Ltd. 7.25% 20193		24,800			27,273
Israel Electric Corp. 7.25% 2019		8,125			8,935
Israel Electric Corp. Ltd. 8.10% 20963		6,250			6,133
CenterPoint Energy Houston Electric, LLC, General Mortgage Bonds, Series U, 7.00% 2014		1,700			1,945
CenterPoint Energy Resources Corp. 4.50% 20213		36,850			37,182
Northern States Power Co., First Mortgage Bonds, 5.25% 2018		6,500			7,246
Public Service Co. of Colorado 5.80% 2018		9,606			11,022
Public Service Co. of Colorado 5.125% 2019		4,950			5,453
Public Service Co. of Colorado 3.20% 2020		14,945			14,206
Ohio Edison Co. 6.40% 2016		6,260			7,154
Cleveland Electric Illuminating Co. 8.875% 2018		15,350			19,701
Toledo Edison Co. 7.25% 2020		8,025			9,686
E.ON International Finance BV 5.80% 20183		24,250			26,963
Enel Finance International SA 3.875% 20143		17,490			18,062
ENEL SpA 5.625% 2027	€	5,760			8,392
Carolina Power & Light Co. d/b/a Progress Energy Carolinas, Inc., First Mortgage Bonds, 5.125% 2013	$	5,000			5,444
Progress Energy, Inc. 6.05% 2014		2,100			2,343
Progress Energy, Inc. 7.05% 2019		15,175			18,231
Teco Finance, Inc. 6.75% 2015		15,546			17,760
Teco Finance, Inc. 4.00% 2016		2,000			2,096
Teco Finance, Inc. 5.15% 2020		1,700			1,806
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series Q, 5.45% 2013		4,275			4,639
Nevada Power Co., General and Refunding Mortgage Notes, Series L, 5.875% 2015		2,550			2,859
Nevada Power Co., General and Refunding Mortgage Notes, Series M, 5.95% 2016		1,000			1,141
Nevada Power Co., General and Refunding Mortgage Notes, Series S, 6.50% 2018		10,025			11,736
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 20173		12,000			13,005
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 2017		2,700			2,926
Abu Dhabi National Energy Co. PJSC (TAQA) 6.50% 20363		2,000			1,995
Edison Mission Energy 7.75% 2016		2,025			1,833
Midwest Generation, LLC, Series B, 8.56% 20161		11,848			12,263
AES Corp. 7.75% 2015		6,575			7,052
AES Corp. 8.00% 2020		3,350			3,584
AES Corp. 7.375% 20213		2,600			2,642
TXU, Term Loan, 4.768% 20171,2,5		14,373			11,270
Texas Competitive Electric Holdings Co. LLC, 11.50% 20203		1,345			1,328
Virginia Electric and Power Co., Series B, 5.95% 2017		10,000			11,691
Empresa Nacional de Electricidad SA 8.35% 2013		5,000			5,606
Empresa Nacional de Electricidad SA 8.625% 2015		3,000			3,597
SP PowerAssets Ltd. 5.00% 20133		8,000			8,683
Intergen Power 9.00% 20173		8,000			8,500
Ohio Power Co., Series H, 4.85% 2014		5,965			6,456
Ohio Power Co., Series G, 6.60% 2033		1,500			1,688
Ameren Corp. 8.875% 2014		7,000			8,115
PG&E Corp. 5.75% 2014		2,000			2,209
Pacific Gas and Electric Co. 8.25% 2018		4,000			5,141
Old Dominion Electric Cooperative, Series 2003-A, 5.676% 20281		6,750			7,245
Commonwealth Edison Co., First Mortgage Bonds, Series 105, 5.40% 2011		6,000			6,130
Colbun SA 6.00% 20203		5,400			5,688
Eskom Holdings Ltd. 5.75% 20213		4,265			4,436
EDP Finance BV. 6.00% 20183		2,750			2,548
Public Service Electric and Gas Co., Series E, 5.30% 2018		2,190			2,454
Tri-State Generation and Transmission Assn. Inc., Pass Through Trust, Series 2003-A, 6.04% 20181,3		2,144			2,297
					811,108
TELECOMMUNICATION SERVICES — 2.31%
ALLTEL Corp. 7.00% 2012		12,485			13,248
Verizon Global Funding Corp. 7.375% 2012		7,500			8,068
Verizon Communications Inc. 5.55% 2014		4,710			5,195
Verizon Communications Inc. 3.00% 2016		24,000			24,541
Verizon Communications Inc. 8.50% 2018		8,000			10,403
Verizon Communications Inc. 8.75% 2018		26,000			33,877
Verizon Communications Inc. 4.60% 2021		20,400			21,090
Verizon Communications Inc. 6.00% 2041		16,145			16,919
Telecom Italia Capital SA 5.25% 2015		32,100			33,404
Telecom Italia Capital SA 6.999% 2018		22,989			25,177
Telecom Italia Capital SA 7.175% 2019		18,916			20,917
Telecom Italia Capital SA 6.375% 2033		8,616			7,705
Telecom Italia SpA 7.75% 2033	€	4,935			7,584
Telecom Italia Capital SA 7.20% 2036	$	5,862			5,542
SBC Communications Inc. 5.875% 2012		12,587			13,295
AT&T Wireless Services, Inc. 8.125% 2012		12,630			13,394
AT&T Inc. 4.95% 2013		17,200			18,239
SBC Communications Inc. 5.625% 2016		22,575			25,619
AT&T Inc. 4.45% 2021		2,000			2,039
AT&T Inc. 6.55% 2039		8,500			9,354
AT&T Inc. 5.35% 2040		2,105			2,002
Sprint Capital Corp. 8.375% 2012		900			940
Nextel Communications, Inc., Series E, 6.875% 2013		13,515			13,667
Nextel Communications, Inc., Series F, 5.95% 2014		26,570			26,670
Nextel Communications, Inc., Series D, 7.375% 2015		19,100			19,195
France Télécom 4.375% 2014		13,930			15,096
France Télécom 2.125% 2015		34,035			34,011
Vodafone Group PLC, Term Loan, 6.875% 20151,4,5,7		4,763			4,929
Vodafone Group PLC, Term Loan B, 6.25% 20161,4,5,7		5,325			5,378
Vodafone Group PLC 5.625% 2017		5,580			6,260
Vodafone Group PLC 5.45% 2019		25,000			27,831
Deutsche Telekom International Finance BV 4.875% 2014		16,250			17,748
Deutsche Telekom International Finance BV 3.125% 20163		16,070			16,307
Deutsche Telekom International Finance BV 8.75% 2030		1,287			1,703
Deutsche Telekom International Finance BV 9.25% 2032		4,750			6,799
Clearwire Communications and Clearwire Finance, Inc., Series A, 12.00% 20153		13,360			14,379
Clearwire Communications and Clearwire Finance, Inc., Series B, 12.00% 20153		6,550			7,049
Clearwire Communications and Clearwire Finance, Inc. 12.00% 20173		16,200			17,010
Telefónica Emisiones, SAU 3.992% 2016		14,500			14,682
Telefónica Emisiones, SAU 4.375% 2016	€	5,665			8,336
Telefónica Emisiones, SAU 5.134% 2020	$	4,125			4,096
Telefónica Emisiones, SAU 5.462% 2021		1,500			1,526
Cricket Communications, Inc. 10.00% 2015		12,760			13,813
Cricket Communications, Inc. 7.75% 2016		13,540			14,420
Wind Acquisition SA 11.75% 20173		20,850			23,717
Wind Acquisition SA 7.25% 20183		3,675			3,831
Koninklijke KPN NV 8.375% 2030		18,925			24,412
Digicel Group Ltd. 12.00% 20143		5,000			5,831
Digicel Group Ltd. 8.875% 20153		13,040			13,399
LightSquared, Term Loan B, 12.00% 20141,5,7		17,582			16,966
PCCW-HKT Capital Ltd. 8.00% 20112,3		15,000			15,339
American Tower Corp. 4.625% 2015		10,000			10,537
Frontier Communications Corp. 8.25% 2017		9,000			9,833
América Móvil, SAB de CV 5.00% 2020		6,700			7,023
América Móvil, SAB de CV 8.46% 2036	MXN27,000				2,127
Trilogy International Partners, LLC, 10.25% 20163	$	8,600			8,772
Singapore Telecommunications Ltd. 6.375% 2011		3,475			3,558
Singapore Telecommunications Ltd. 6.375% 20113		2,050			2,099
Level 3 Escrow Inc. 8.125% 20193		3,300			3,325
Crown Castle International Corp. 9.00% 2015		2,550			2,780
Crown Castle International Corp. 7.75% 20173		300			326
Intelsat Jackson Holding Co. 8.50% 2019		1,175			1,248
Hawaiian Telcom, Inc., Term Loan, 9.00% 20151,2,5,7		1,076			1,107
SBA Telecommunications, Inc. 8.00% 2016		725			775
Syniverse Holdings, Inc. 9.125% 20193		500			523
Sorenson Communications 10.50% 20153		575			390
					767,375
CONSUMER STAPLES — 1.52%
Food, beverage & tobacco — 0.77%
Anheuser-Busch InBev NV 2.50% 2013		4,000			4,101
Anheuser-Busch InBev NV 3.625% 2015		29,250			30,973
Anheuser-Busch InBev NV 4.125% 2015		37,375			40,229
Anheuser-Busch InBev NV 8.625% 2017	€	2,500			4,581
Anheuser-Busch InBev NV 6.875% 2019	$	6,740			8,210
Anheuser-Busch InBev NV 7.75% 2019		7,250			9,134
Anheuser-Busch InBev NV 5.00% 2020		2,000			2,152
Anheuser-Busch InBev NV 5.375% 2020		5,000			5,518
PepsiCo, Inc. 3.10% 2015		19,500			20,486
PepsiCo, Inc. 2.50% 2016		17,500			17,705
PepsiCo, Inc. 4.875% 2040		2,000			1,919
Coca-Cola Co. 1.50% 2015		23,380			22,978
Coca-Cola Co. 3.15% 2020		12,565			12,087
Altria Group, Inc. 9.25% 2019		13,000			16,977
Altria Group, Inc. 9.95% 2038		4,100			5,778
Altria Group, Inc. 10.20% 2039		4,000			5,754
British American Tobacco International Finance PLC 9.50% 20183		13,000			17,416
General Mills, Inc. 0.611% 20142		12,000			12,060
Kraft Foods Inc. 2.625% 2013		3,830			3,942
BFF International Ltd. 7.25% 20203		3,000			3,232
CEDC Finance Corp. 9.125% 20163		3,500			3,211
Smithfield Foods, Inc., Series B, 7.75% 2013		81			88
Smithfield Foods, Inc. 10.00% 2014		1,321			1,539
Smithfield Foods, Inc. 7.75% 2017		725			756
Constellation Brands, Inc. 8.375% 2014		550			628
Constellation Brands, Inc. 7.25% 2017		750			819
Tyson Foods, Inc. 10.50% 2014		700			835
Tyson Foods, Inc. 6.85% 20162		500			555
TreeHouse Foods, Inc. 7.75% 2018		1,200			1,278
Cott Beverages Inc. 8.375% 2017		1,000			1,053
					255,994
Food & staples retailing — 0.75%
Kroger Co. 5.00% 2013		18,000			19,193
Kroger Co. 7.50% 2014		11,343			12,973
Kroger Co. 3.90% 2015		10,000			10,587
Kroger Co. 6.40% 2017		29,450			34,543
Wal-Mart Stores, Inc. 2.875% 2015		11,550			12,044
Wal-Mart Stores, Inc. 2.80% 2016		11,500			11,784
Wal-Mart Stores, Inc. 5.80% 2018		12,800			14,773
Wal-Mart Stores, Inc. 3.25% 2020		3,570			3,403
Delhaize Group 5.875% 2014		6,850			7,519
Delhaize Group 6.50% 2017		19,205			22,169
Delhaize Group 5.70% 2040		2,465			2,301
Rite Aid Corp. 9.75% 2016		21,650			24,004
Rite Aid Corp. 10.375% 2016		2,675			2,856
Rite Aid Corp. 10.25% 2019		2,390			2,641
Safeway Inc. 6.25% 2014		100			111
Safeway Inc. 5.00% 2019		19,000			19,918
Safeway Inc. 3.95% 2020		5,360			5,222
Tesco PLC 5.50% 20173		13,559			15,355
SUPERVALU INC. 7.50% 2012		365			378
Albertson’s, Inc. 7.25% 2013		2,025			2,081
SUPERVALU INC. 7.50% 2014		1,830			1,839
SUPERVALU INC. 8.00% 2016		4,200			4,305
Tops Holding Corp. and Tops Markets, LLC. 10.125% 2015		7,625			8,130
Stater Bros. Holdings Inc. 7.75% 2015		5,150			5,356
Stater Bros. Holdings Inc. 7.375% 20183		1,100			1,147
Ingles Markets, Inc. 8.875% 2017		2,550			2,741
					247,373
Household & personal products — 0.00%
Spectrum Brands Inc. 9.50% 20183		1,400			1,540
Procter & Gamble Co. 3.50% 2015		150			160
					1,700
INFORMATION TECHNOLOGY — 1.00%
Software & services — 0.34%
First Data Corp., Term Loan B2, 2.936% 20141,2,5		4,239			3,934
First Data Corp. 9.875% 2015		4,022			4,102
First Data Corp. 9.875% 2015		224			231
First Data Corp. 10.55% 20157		1,675			1,699
First Data Corp. 11.25% 2016		31,350			31,036
First Data Corp. 7.375% 20193		900			911
First Data Corp. 8.25% 20213		10,552			10,394
First Data Corp. 12.625% 20213		6,795			7,305
First Data Corp. 8.75% 20222,3,7		17,162			16,862
International Business Machines Corp. 2.00% 2016		33,500			33,340
International Business Machines Corp. 5.60% 2039		2,750			2,915
SunGard Data Systems Inc. 7.375% 2018		765			769
SunGard Data Systems Inc. 7.625% 2020		636			645
					114,143
Technology hardware & equipment — 0.33%
Hewlett-Packard Co. 0.654% 20142		7,000			7,038
Hewlett-Packard Co. 2.65% 2016		38,950			39,158
Cisco Systems, Inc. 0.499% 20142		14,000			14,051
Cisco Systems, Inc. 2.90% 2014		10,125			10,659
Cisco Systems, Inc. 4.95% 2019		2,500			2,719
Cisco Systems, Inc. 4.45% 2020		16,500			17,198
Sanmina-SCI Corp. 2.997% 20142,3		7,871			7,851
Sanmina-SCI Corp. 8.125% 2016		2,564			2,676
Jabil Circuit, Inc. 8.25% 2018		5,850			6,713
EH Holding Corp. 7.625% 20213		1,350			1,384
					109,447
Semiconductors & semiconductor equipment — 0.33%
Freescale Semiconductor, Inc. 8.875% 2014		2,300			2,409
Freescale Semiconductor, Inc. 9.125% 20142,7		19,834			20,851
Freescale Semiconductor, Inc. 10.125% 2016		18,000			19,463
Freescale Semiconductor, Inc. 9.25% 20183		7,500			8,119
Freescale Semiconductor, Inc. 10.125% 20183		3,925			4,376
NXP BV and NXP Funding LLC 3.028% 20132		2,821			2,817
NXP BV and NXP Funding LLC 10.00% 20138		6,882			7,820
NXP BV and NXP Funding LLC 8.625% 2015	€	3,875			5,886
NXP BV and NXP Funding LLC 9.50% 2015	$	11,120			11,815
National Semiconductor Corp. 6.15% 2012		3,850			4,014
National Semiconductor Corp. 6.60% 2017		7,000			8,249
KLA-Tencor Corp. 6.90% 2018		8,300			9,389
Advanced Micro Devices, Inc. 8.125% 2017		3,075			3,229
					108,437
MATERIALS — 0.95%
ArcelorMittal 5.375% 2013		7,500			7,989
ArcelorMittal 3.75% 2015		16,500			16,887
ArcelorMittal 3.75% 2016		7,955			8,052
ArcelorMittal 9.85% 2019		4,750			6,030
ArcelorMittal 5.50% 2021		10,175			10,210
ArcelorMittal 7.00% 2039		4,750			4,818
ArcelorMittal 6.75% 2041		6,000			5,966
International Paper Co. 7.40% 2014		26,750			30,459
International Paper Co. 7.95% 2018		6,970			8,311
International Paper Co. 7.50% 2021		2,000			2,342
Rio Tinto Finance (USA) Ltd. 8.95% 2014		5,750			6,909
Rio Tinto Finance (USA) Ltd. 2.50% 2016		5,000			5,015
Rio Tinto Finance (USA) Ltd. 9.00% 2019		15,170			20,131
Dow Chemical Co. 7.60% 2014		21,250			24,658
Dow Chemical Co. 5.70% 2018		1,700			1,886
POSCO 4.25% 20203		24,820			23,423
Georgia Gulf Corp. 9.00% 20173		15,425			16,505
Cliffs Natural Resources Inc. 4.875% 2021		12,000			12,056
Cliffs Natural Resources Inc. 6.25% 2040		3,000			2,970
CEMEX Finance LLC 9.50% 2016		5,925			6,155
CEMEX Finance LLC 9.50% 20163		5,200			5,401
CEMEX SA 9.25% 20203		1,126			1,120
Reynolds Group 8.50% 20163		6,530			6,840
Reynolds Group 7.125% 20193		2,465			2,459
Reynolds Group 9.00% 20193		1,100			1,092
BHP Billiton Finance (USA) Ltd. 5.50% 2014		8,795			9,793
Teck Resources Ltd. 3.15% 2017		4,345			4,353
Teck Resources Ltd. 6.25% 2041		3,000			3,039
E.I. du Pont de Nemours and Co. 0.667% 20142		3,500			3,525
E.I. du Pont de Nemours and Co. 5.25% 2016		2,000			2,263
Anglo American Capital PLC 2.15% 20133		5,130			5,200
Ball Corp. 7.125% 2016		1,270			1,391
Ball Corp. 6.75% 2020		690			736
Ball Corp. 5.75% 2021		1,850			1,859
Sappi Papier Holding GmbH 6.625% 2018	€	1,150			1,664
Sappi Papier Holding GmbH 6.625% 20213	$	2,005			1,960
MacDermid 9.50% 20173		3,370			3,522
Packaging Dynamics Corp. 8.75% 20163		3,415			3,483
Airgas, Inc. 7.125% 2018		3,000			3,278
Yara International ASA 7.875% 20193		2,675			3,275
Ardagh Packaging Finance 7.375% 2017	€	1,100			1,609
Ardagh Packaging Finance 7.375% 20173	$	200			207
Ardagh Packaging Finance 11.125% 20183,7		1,100			1,114
Ardagh Packaging Finance 9.125% 20203		300			317
Smurfit Capital Funding PLC 7.50% 2025		3,345			3,245
Newpage Corp. 11.375% 2014		3,175			2,977
Praxair, Inc. 4.375% 2014		1,850			2,000
Praxair, Inc. 4.625% 2015		500			552
Arbermarle Corp. 5.10% 2015		2,156			2,340
ICI Wilmington, Inc. 5.625% 2013		2,000			2,170
Graphic Packaging International, Inc. 9.50% 2017		1,195			1,315
Graphic Packaging International, Inc. 7.875% 2018		700			746
OMNOVA Solutions Inc. 7.875% 20183		1,500			1,449
Potash Corp. of Saskatchewan Inc. 5.875% 2036		1,250			1,296
Fibria Overseas Finance Ltd. 6.75% 20213		1,000			1,053
Consolidated Minerals Ltd. 8.875% 20163		1,055			1,042
LBI Escrow Corp 8.00% 20173		729			813
Owens-Brockway Glass Container Inc. 7.375% 2016		685			748
Rockwood Specialties Group, Inc. 7.625% 2014	€	500			740
Solutia Inc. 8.75% 2017	$	610			665
Nalco Co. 8.25% 2017		300			329
					313,752
Total corporate bonds & notes				$	9,809,313
BONDS & NOTES OF U.S. GOVERNMENT & GOVERNMENT AGENCIES — 23.18%
U.S. Treasury 1.125% 2011	$	100,000			100,467
U.S. Treasury 4.625% 2011		64,500			64,994
U.S. Treasury 4.625% 2011		25,000			25,561
U.S. Treasury 5.00% 2011		11,300			11,370
U.S. Treasury 0.375% 2012		17,600			17,618
U.S. Treasury 0.625% 2012		28,250			28,367
U.S. Treasury 1.00% 2012		155,250			156,290
U.S. Treasury 1.00% 2012		21,830			21,965
U.S. Treasury 1.125% 2012		1,000			1,011
U.S. Treasury 1.875% 2012		400			406
U.S. Treasury 4.50% 2012		15,000			15,485
U.S. Treasury 4.875% 2012		161,775			166,552
U.S. Treasury 0.625% 2013		42,000			42,166
U.S. Treasury 0.625% 2013		29,100			29,205
U.S. Treasury 0.625% 2013		9,600			9,639
U.S. Treasury 0.75% 2013		81,900			82,385
U.S. Treasury 0.75% 2013		3,400			3,417
U.S. Treasury 1.00% 2013		20,300			20,518
U.S. Treasury 1.125% 20139		135,410			137,172
U.S. Treasury 1.375% 2013		128,900			130,962
U.S. Treasury 1.375% 2013		80,900			82,317
U.S. Treasury 1.375% 2013		6,700			6,811
U.S. Treasury 2.00% 2013		32,010			33,080
U.S. Treasury 1.875% 201310		30,607			32,577
U.S. Treasury 2.75% 2013		50,000			51,957
U.S. Treasury 3.125% 2013		50,000			52,824
U.S. Treasury 3.375% 2013		71,550			75,717
U.S. Treasury 3.875% 2013		25,000			26,411
U.S. Treasury 4.25% 2013		134,112			144,777
U.S. Treasury 1.25% 2014		185,108			187,842
U.S. Treasury 1.875% 2014		157,360			162,277
U.S. Treasury 2.00% 201410		32,340			34,904
U.S. Treasury 1.25% 2015		15,600			15,470
U.S. Treasury 1.25% 2015		15,000			14,904
U.S. Treasury 1.75% 2015		35,300			35,903
U.S. Treasury 1.625% 201510		61,883			67,219
U.S. Treasury 1.875% 2015		40,055			40,998
U.S. Treasury 1.875% 201510		46,241			51,008
U.S. Treasury 2.125% 2015		83,500			85,724
U.S. Treasury 4.25% 2015		51,900			57,947
U.S. Treasury 4.50% 2015		24,300			27,437
U.S. Treasury 9.875% 2015		1,000			1,358
U.S. Treasury 1.75% 2016		87,560			87,700
U.S. Treasury 2.00% 2016		271,740			277,058
U.S. Treasury 2.00% 2016		4,873			4,947
U.S. Treasury 2.125% 2016		87,000			89,073
U.S. Treasury 2.375% 2016		150,000			155,210
U.S. Treasury 2.625% 2016		56,780			59,433
U.S. Treasury 3.00% 2016		69,500			73,502
U.S. Treasury 3.00% 2016		3,560			3,770
U.S. Treasury 4.50% 2016		76,600			86,648
U.S. Treasury 5.125% 2016		66,500			77,293
U.S. Treasury 7.50% 2016		115,500			149,059
U.S. Treasury 9.25% 2016		36,700			49,356
U.S. Treasury 1.875% 2017		21,500			21,025
U.S. Treasury 2.50% 2017		62,000			63,192
U.S. Treasury 4.625% 2017		128,000			146,054
U.S. Treasury 8.75% 2017		25,000			34,329
U.S. Treasury 2.375% 2018		8,200			8,156
U.S. Treasury 2.625% 2018		600			608
U.S. Treasury 3.50% 2018		51,645			55,418
U.S. Treasury 3.75% 2018		102,600			111,165
U.S. Treasury 2.125% 201910		7,855			8,936
U.S. Treasury 8.125% 2019		25,000			35,001
U.S. Treasury 2.625% 2020		45,000			43,340
U.S. Treasury 3.50% 2020		98,700			103,053
U.S. Treasury 3.625% 2020		60,600			64,115
U.S. Treasury 8.75% 2020		23,025			33,757
U.S. Treasury 1.125% 202110		20,558			21,378
U.S. Treasury 3.125% 2021		47,395			47,266
U.S. Treasury 3.625% 2021		42,705			44,534
U.S. Treasury 8.00% 2021		75,840			108,066
U.S. Treasury 8.125% 2021		9,000			12,863
U.S. Treasury 6.25% 2023		14,900			18,935
U.S. Treasury 7.125% 2023		103,050			139,729
U.S. Treasury 7.50% 2024		18,550			26,166
U.S. Treasury 6.875% 2025		122,850			165,356
U.S. Treasury 7.625% 2025		1,300			1,854
U.S. Treasury 6.00% 2026		39,300			48,951
U.S. Treasury 6.75% 2026		34,322			45,835
U.S. Treasury 6.125% 2027		40,000			50,595
U.S. Treasury 5.25% 2028		76,000			87,706
U.S. Treasury 6.25% 2030		5,545			7,155
U.S. Treasury 4.50% 2036		220,457			228,056
U.S. Treasury 4.75% 2037		52,200			55,933
U.S. Treasury 4.375% 2038		65			65
U.S. Treasury 4.50% 2038		16,800			17,258
U.S. Treasury 3.50% 2039		45,000			38,668
U.S. Treasury 4.25% 2039		162,305			159,273
U.S. Treasury 4.375% 2039		153,700			153,786
U.S. Treasury 4.50% 2039		61,460			62,842
U.S. Treasury 3.875% 2040		172,750			158,179
U.S. Treasury 4.25% 2040		12,300			12,023
U.S. Treasury 4.375% 2040		82,300			82,260
U.S. Treasury 4.625% 2040		483,790			504,395
U.S. Treasury 4.75% 2041		68,400			72,701
Fannie Mae 0.625% 2012		83,000			83,291
Fannie Mae, Series 2, 1.25% 2012		62,100			62,714
Fannie Mae 1.75% 2013		75,000			76,692
Fannie Mae 2.50% 2014		7,250			7,572
Fannie Mae 3.00% 2014		9,500			10,059
Fannie Mae 5.375% 2016		10,420			12,096
Freddie Mac 5.25% 2011		20,000			20,052
Freddie Mac 1.125% 2012		23,950			24,165
Freddie Mac 1.75% 2012		50,000			50,705
Freddie Mac 2.125% 2012		20,000			20,398
Freddie Mac 2.50% 2014		37,000			38,612
Freddie Mac 5.00% 2014		25,000			27,963
Freddie Mac 1.75% 2015		21,150			21,245
Freddie Mac 5.50% 2016		14,580			16,993
Federal Home Loan Bank 1.75% 2012		69,000			70,128
Federal Home Loan Bank, Series 363, 4.50% 2012		36,500			38,563
Federal Home Loan Bank 3.625% 2013		75,000			79,996
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 0.247% 20122		11,020			11,030
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 0.261% 20122		50,000			50,053
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 1.875% 2012		20,000			20,382
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 2.125% 2012		11,000			11,196
United States Government Agency-Guaranteed (FDIC insured), Citigroup Inc. 2.25% 2012		25,050			25,708
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.125% 2012		52,500			53,822
United States Government Agency-Guaranteed (FDIC insured), General Electric Capital Corp., Series G, 2.25% 2012		29,250			29,655
Federal Farm Credit Banks, Consolidated Systemwide Designated Bonds, 1.875% 2012		13,500			13,797
Federal Farm Credit Banks, Consolidated Systemwide Designated Bonds, 1.625% 2014		33,700			34,195
Federal Farm Credit Banks, Consolidated Systemwide Designated Bonds, 2.625% 2014		5,000			5,234
Federal Farm Credit Banks, Consolidated Systemwide Designated Bonds, 3.00% 2014		10,000			10,593
CoBank ACB 7.875% 20183		23,615			26,933
CoBank ACB 0.847% 20222,3		31,865			28,569
United States Government Agency-Guaranteed (FDIC insured), Ally Financial Inc. 2.20% 2012		32,500			33,317
United States Government Agency-Guaranteed (FDIC insured), Goldman Sachs Group, Inc. 3.25% 2012		25,000			25,658
United States Government Agency-Guaranteed (FDIC insured), State Street Corp. 2.15% 2012		20,000			20,309
Tennessee Valley Authority, Series A, 3.875% 2021		4,125			4,221
Tennessee Valley Authority 5.25% 2039		13,750			14,553
United States Government Agency-Guaranteed (FDIC insured), Bank of America Corp. 2.375% 2012		17,500			17,847
United States Government Agency-Guaranteed (FDIC insured), John Deere Capital Corp. 2.875% 2012		10,000			10,243
Federal Agricultural Mortgage Corp. 5.125% 20173		5,000			5,501
United States Agency for International Development, Republic of Egypt 4.45% 2015		5,000			5,478
Private Export Funding Corp., Series W, 5.00% 2016		3,400			3,835
					7,691,411
BONDS & NOTES OF GOVERNMENTS & GOVERNMENT AGENCIES OUTSIDE THE U.S. — 6.20%
South Korean Government, Series 1303, 5.25% 2013	KRW20,178,750				19,369
South Korean Government 4.25% 2014		29,650,000			28,021
South Korean Government 4.75% 2014		33,310,000			31,894
South Korean Government 5.00% 2014		11,870,000			11,472
South Korean Government 5.75% 2014	$	21,100			23,335
South Korean Government 5.25% 2015	KRW28,330,000				27,799
South Korean Government 5.50% 2017		10,100,000			10,167
United Mexican States Government, Series MI10, 9.50% 2014	MXN100,300				9,553
United Mexican States Government, Series M10, 7.75% 2017		117,500			10,745
United Mexican States Government 3.50% 201710		177,678			16,127
United Mexican States Government Global 5.95% 2019	$	5,170			5,958
United Mexican States Government, Series M20, 10.00% 2024	MXN549,800				57,987
United Mexican States Government Global, Series A, 6.75% 2034	$	2,495			2,913
United Mexican States Government, Series M30, 10.00% 2036	MXN188,500				19,518
United Mexican States Government 4.00% 204010		134,853			11,600
Turkey (Republic of) 10.00% 201210	TRY15,063				10,029
Turkey (Republic of) 16.00% 2012		9,555			6,178
Turkey (Republic of) 10.00% 2013		13,350			8,374
Turkey (Republic of) 16.00% 2013		21,045			14,756
Turkey (Republic of) 10.00% 2015		13,000			8,186
Turkey (Republic of) 7.50% 2017	$	5,725			6,756
Turkey (Republic of) 6.75% 2018		17,250			19,708
Turkey (Republic of) 4.00% 202010	TRY14,633				10,064
Turkey (Republic of) 5.625% 2021	$	8,000			8,400
Turkey (Republic of) 8.00% 2034		1,250			1,556
Turkey (Republic of) 6.75% 2040		9,300			10,067
Brazil (Federal Republic of) Global 0% 2011	BRL 9,450				6,056
Brazil (Federal Republic of) 6.00% 201510		8,173			5,147
Brazil (Federal Republic of) Global 12.50% 2016		30,400			23,034
Brazil (Federal Republic of) 10.00% 2017		28,515			16,544
Brazil (Federal Republic of) 6.00% 201710		69,338			43,759
Brazil (Federal Republic of) Global 8.00% 20181	$	1,295			1,560
Brazil (Federal Republic of) Global 4.875% 2021		5,250			5,641
Brazil (Federal Republic of) Global 12.25% 2030		425			776
Brazil (Federal Republic of) Global 7.125% 2037		750			930
Polish Government, Series 0414, 5.75% 2014	PLN41,696				15,554
Polish Government 3.875% 2015	$	7,805			8,080
Polish Government, Series 1017, 5.25% 2017	PLN115,825				41,885
Polish Government 6.375% 2019	$	32,835			37,596
Hungarian Government, Series 14/C, 5.50% 2014	HUF4,427,730				23,606
Hungarian Government, Series 17/B, 6.75% 2017		738,000			3,930
Hungarian Government 6.00% 2019	€	8,105			11,680
Hungarian Government, Series 19/A, 6.50% 2019	HUF1,200,000				6,194
Hungarian Government 6.25% 2020	$	38,735			41,098
Hungarian Government 6.375% 2021		4,060			4,304
Hungarian Government 7.625% 2041		2,430			2,634
Malaysian Government, Series 0109, 2.509% 2012	MYR22,045				7,268
Malaysian Government, Series 509, 3.21% 2013		61,000			20,238
Malaysian Government, Series 3/03, 3.702% 2013		38,870			13,009
Malaysian Government, Series 204, 5.094% 2014		80,850			28,109
Malaysian Government, Series 0409, 3.741% 2015		63,870			21,444
Russian Federation 7.85% 2018	RUB450,000				16,919
Russian Federation 7.85% 2018		280,000			10,527
Russian Federation 5.00% 2020	$	21,000			21,761
Russian Federation 7.50% 20301		31,841			37,652
Russian Federation 7.50% 20301,3		125			148
Canadian Government 2.00% 2014	$	C83,205			86,470
Australia Government Agency-Guaranteed, National Australia Bank 0.793% 20142,3	$	25,000			25,038
Australia Government Agency-Guaranteed, National Australia Bank 3.375% 20143		50,550			52,926
Croatian Government 6.75% 20193		22,450			24,285
Croatian Government 6.75% 2019		17,350			18,768
Croatian Government 6.625% 2020		9,785			10,384
Croatian Government 6.625% 20203		8,580			9,106
Croatian Government 6.375% 20213		10,995			11,456
Indonesia (Republic of), Series 23, 11.00% 2012	IDR 4,090,000				511
Indonesia (Republic of), Series 33, 12.50% 2013		8,710,000			1,122
Indonesia (Republic of), Series 20, 14.275% 2013		2,110,000			290
Indonesia (Republic of), Series 51, 11.25% 2014		1,260,000			165
Indonesia (Republic of) 9.50% 2015		28,000,000			3,583
Indonesia (Republic of), Series 30, 10.75% 2016		176,767,000			23,954
Indonesia (Republic of) 11.50% 2019		107,388,000			15,623
Indonesia (Republic of) 5.875% 2020	$	6,800			7,582
Indonesia (Republic of) 5.875% 20203		6,200			6,913
Indonesia (Republic of) 7.75% 2038		10,500			13,217
Colombia (Republic of) Global 12.00% 2015	COP47,913,000				34,495
Colombia (Republic of) Global 7.75% 2021		9,435,000			6,083
Colombia (Republic of) Global 9.85% 2027		12,551,000			9,118
Colombia (Republic of) Global 7.375% 2037	$	13,600			17,204
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.50% 20123		7,250			7,449
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.90% 20143		23,005			24,197
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 3.625% 20143		20,000			21,447
Argentina (Republic of) 0.117% 20121,2		24,755			6,060
Argentina (Republic of) 7.00% 2015		9,345			9,055
Argentina (Republic of) 8.28% 20331,7		40,506			35,949
Argentina (Republic of) GDP-Linked 2035	ARS 9,238				377
Argentina (Republic of) 1.18% 20381,10		10,537			778
Japanese Government, Series 296, 1.50% 2018	¥	2,468,700			32,330
Japanese Government 2.40% 2038		1,342,250			17,934
France Government Agency-Guaranteed, Société Finance 2.875% 20143	$	33,200			34,757
France Government Agency-Guaranteed, Société Finance 3.375% 20143		10,000			10,600
Sweden Government Agency-Guaranteed, Swedbank AB 2.80% 20123		9,000			9,114
Sweden Government Agency-Guaranteed, Swedbank AB 2.90% 20133		35,000			36,233
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 2.50% 20123		8,250			8,399
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 3.45% 20143		33,320			35,569
South Africa (Republic of), Series R-206, 7.50% 2014	ZAR93,420				14,022
South Africa (Republic of), Series R-203, 8.25% 2017		67,720			10,080
South Africa (Republic of) 6.875% 2019	$	3,515			4,209
South Africa (Republic of) 5.50% 2020		12,000			13,170
South Africa (Republic of) 6.25% 2041		1,855			1,999
Denmark Government Agency-Guaranteed, Danish Finance Co. 2.45% 20123		42,220			42,925
German Government, Series 157, 2.25% 2015	€	27,750			40,565
New South Wales Treasury Corp., Series 19, 6.00% 2019	$	A33,350			36,985
Uruguay (Republic of) 5.00% 201810	UYU535,969				33,842
Uruguay (Republic of) 7.625% 20361	$	1,250			1,581
Venezuela (Republic of) 8.50% 2014		245			225
Venezuela (Republic of) 7.65% 2025		985			643
Venezuela (Republic of) 9.25% 2027		31,745			24,079
Venezuela (Republic of) 9.25% 2028		11,160			8,007
Peru (Republic of) 8.75% 2033		8,226			11,257
Peru (Republic of) 6.55% 20371		14,200			15,911
Europe Government Agency-Guaranteed, Dexia Credit Local 0.535% 20122,3		25,000			24,981
Philippines (Republic of) 6.375% 2034		15,500			17,011
Philippines (Republic of) 6.25% 2036	PHP326,000				7,328
Iraq (Republic of) 5.80% 20281	$	25,300			23,023
Australia Government Agency-Guaranteed, Australia and New Zealand Banking Group Ltd. 3.25% 20123		21,750			22,169
Kingdom of Denmark 4.00% 2015	DKr95,000				19,693
Israeli Government, Series 2683, 6.50% 2016	ILS59,300				18,823
Province of Ontario, Series 1, 1.875% 2012	$	17,375			17,695
United Kingdom Government Agency-Guaranteed, Lloyds TSB Bank PLC 2.80% 20123		15,000			15,257
Lithuania (Republic of) 6.75% 2015		3,890			4,308
Lithuania (Republic of) 6.125% 20213		7,250			7,721
Ireland Government Agency-Guaranteed, Irish Life & Permanent 3.60% 20133		11,200			10,144
Bermudan Government 5.603% 20203		5,110			5,634
Bermudan Government 5.603% 2020		3,940			4,344
Dominican Republic 9.50% 20111,3		234			240
Dominican Republic 9.04% 20181,3		4,481			5,064
Dominican Republic 7.50% 20211,3		3,500			3,658
Aries Vermögensverwaltungs GmbH, Series C, 9.60% 2014		7,000			8,750
United Kingdom Government Agency-Guaranteed, Network Rail Infrastructure Ltd 1.50% 20143		8,000			8,110
Netherlands Government Agency-Guaranteed, ING Bank NV 3.90% 20143		7,000			7,414
Gabonese Republic 8.20% 2017		5,300			6,241
Panama (Republic of) Global 7.25% 2015		2,275			2,691
Panama (Republic of) Global 7.125% 2026		300			371
Panama (Republic of) Global 8.875% 2027		250			356
Panama (Republic of) Global 9.375% 2029		340			507
Panama (Republic of) Global 6.70% 20361		1,504			1,782
El Salvador (Republic of) 7.375% 2019		4,800			5,304
Banque Centrale de Tunisie 7.375% 2012		4,500			4,691
Chilean Government 3.875% 2020		3,000			3,023
Kommunalbanken 1.00% 20143		2,924			2,907
Province of Buenos Aires 10.875% 20211,3		1,500			1,415
Guatemala (Republic of) 10.25% 20113		1,000			1,030
LCR Finance PLC 5.10% 2051	£	165			299
					2,057,640
ASSET-BACKED OBLIGATIONS1 — 1.04%
CPS Auto Receivables Trust, Series 2006-A, Class 1-A-4, FSA insured, 5.33% 20123	$	973			975
CPS Auto Receivables Trust, Series 2006-B, Class A-4, MBIA insured, 5.81% 20123		4,716			4,721
CPS Auto Receivables Trust, Series 2007-A, Class A-4, MBIA insured, 5.05% 20133		6,731			6,778
CPS Auto Receivables Trust, Series 2006-C, Class A-4, XLCA insured, 5.14% 20133		5,834			5,956
CPS Auto Receivables Trust, Series 2007-B, Class A-4, FSA insured, 5.60% 20143		9,758			9,877
CPS Auto Receivables Trust, Series 2007-C, Class A-4, FSA insured, 5.92% 20143		13,454			13,654
Aesop Funding II LLC, Series 2010-2A, Class A, 3.63% 20143		12,400			12,859
Aesop Funding II LLC, Series 2010-5A, Class A, 3.15% 20173		20,000			20,239
Vega ContainerVessel PLC, Series 2006-1, Class A, XLCA insured, 5.562% 20213		30,465			28,690
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2009-2A, Class A-1, 4.26% 20143		9,000			9,408
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2009-2A, Class A-2, 5.29% 20163		17,500			19,207
Chase Issuance Trust, Series 2008-4, Class A, 4.65% 2015		18,000			19,193
Vanderbilt Mortgage and Finance, Inc., Series 2002-C, Class A-4, 6.57% 2024		5,616			5,858
Vanderbilt Mortgage and Finance, Inc., Series 1999-B, Class I-A-6, 6.925% 2024		1,231			1,232
Vanderbilt Mortgage and Finance, Inc., Series 2000-C, Class A-4, 7.905% 2026		760			777
Vanderbilt Mortgage and Finance, Inc., Series 1997-C, Class II-A-1, 0.61% 20272		110			99
Vanderbilt Mortgage and Finance, Inc., Series 2000-D, Class A-4, 7.715% 2027		844			890
Vanderbilt Mortgage and Finance, Inc., Series 2000-C, Class A-5, 8.195% 2030		6,889			7,389
Vanderbilt Mortgage and Finance, Inc., Series 2001-C, Class M-1, 6.76% 2032		675			643
Vanderbilt Mortgage and Finance, Inc., Series 2002-C, Class M-1, 7.82% 2032		1,761			1,794
AEP Texas Central Transitioning Funding II LLC, Secured Transition Bonds, Series A, Class A-3, 5.09% 2017		16,720			18,455
RAMP Trust, Series 2004-RS10, Class A-I-6, 4.55% 2034		16,752			16,115
Long Beach Acceptance Auto Receivables Trust, Series 2006-B, Class A-4, FSA insured, 5.18% 2013		8,792			8,806
Long Beach Acceptance Auto Receivables Trust, Series 2007-A, Class A-4, FSA insured, 5.025% 2014		5,813			5,852
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class B-1, 7.30% 2021		2,824			2,867
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A-4, 6.57% 2027		6,642			7,118
Vanderbilt Acquisition Loan Trust, Series 2002-1, Class A-5, 7.12% 2032		3,000			3,313
Prestige Auto Receivables Trust, Series 2007-1, Class A-3, FSA insured, 5.58% 20143		11,234			11,362
MBNA Credit Card Master Note Trust, Series 2006-1, Class C, 0.607% 20152		10,000			9,937
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-3, 4.35% 2014		1,675			1,696
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-4, 5.27% 2018		859			893
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-5, 5.873% 2022		2,820			2,983
Lehman ABS Manufactured Housing Contract Trust, Series 2002-A, Class A, 0.637% 20332		3,675			3,495
CarMax Auto Owner Trust, Series 2008-2, Class A-3a, 4.99% 2012		1,420			1,426
CarMax Auto Owner Trust, Series 2007-2, Class A-4, 5.27% 2012		6,497			6,528
First Horizon ABS Trust, Series 2006-HE2, Class A, FSA insured, 0.316% 20262		531			392
First Horizon ABS Trust, Series 2007-HE1, Class A, FSA insured, 0.316% 20292		8,894			6,946
AmeriCredit Prime Automobile Receivables Trust, Series 2007-2-M, Class A-4-A, MBIA insured, 5.35% 2016		6,963			7,167
CWHEQ Home Equity Loan Trust, Series 2006-S2, Class A-5, FGIC insured, 5.753% 2027		9,783			6,856
Capital One Auto Finance Trust, Series 2007-B, Class A-4, MBIA insured, 0.217% 20142		6,481			6,467
Conseco Finance Securitizations Corp., Series 2002-2, Class A-2, 6.03% 2033		5,545			5,869
Home Equity Asset Trust, Series 2004-7, Class M-1, 0.806% 20352		6,500			5,228
AmeriCredit Automobile Receivables Trust, Series 2011-1, Class A-2, 0.84% 2014		2,000			2,001
AmeriCredit Automobile Receivables Trust, Series 2007-C-M, Class A-4-A, MBIA insured, 5.55% 2014		3,001			3,068
Green Tree Financial Corp., Series 1996-10, Class A-6, 7.30% 2028		629			651
Green Tree Financial Corp., Series 1997-6, Class A-7, 7.14% 2029		3,189			3,449
Conseco Finance Home Equity Loan Trust, Series 2002-B, Class M-1, 1.937% 20332		808			733
UCFC Manufactured Housing Contract, Series 1996-2, Class A, MBIA insured, 7.135% 2028		3,843			3,625
Origen Manufactured Housing Contract Trust, Series 2004-B, Class M-1, 5.73% 2035		1,811			1,889
Origen Manufactured Housing Contract Trust, Series 2004-B, Class M-2, 6.51% 2035		1,450			1,402
Consumers Funding LLC, Series 2001-1, Class A-5, 5.43% 2015		2,639			2,760
Hyundai Auto Receivables Trust, Series 2011-A, Class A3, 1.16% 2015		2,500			2,513
Ally Master Owner Trust, Series 2011-1, Class A2, 2.15% 2016		2,450			2,484
World Omni Auto Receivables Trust, Series 2010-A, Class A-4, 2.21% 2015		2,350			2,399
CWHEQ Revolving Home Equity Loan Trust, Series 2007-B, Class A, FSA insured, 0.337% 20372		2,801			2,187
SLM Student Loan Trust, Series 2003-10, Class A-4, 5.15% 20393	£	1,160			1,825
Residential Funding Mortgage Securities II, Inc., Series 2006-HSA3, Class A, FSA insured, 0.316% 20362	$	1,470			1,115
IndyMac Home Equity Mortgage Loan Asset-backed Trust, Series 2007-H1, Class A-1, FSA insured, 0.346% 20372		1,227			946
Franklin Auto Trust, Series 2006-1, Class B, 5.14% 2014		824			825
					343,882
MUNICIPALS — 0.40%
State of California, Various Purpose General Obligation Bonds (Federally Taxable), 7.60% 2040	$	22,295		$	25,847
State of California, Various Purpose General Obligation Bonds (Federally Taxable), 7.625% 2040		2,410			2,799
State of New York, Long Island Power Authority, Electric System General Revenue Bonds, Series 2009-A, 5.75% 2039		24,330			26,045
State of Illinois, General Obligation Bonds, Taxable Build America Bonds, Series 2010-3, 5.727% 2020		17,000			17,406
State of South Dakota, Educational Enhancement Funding Corp., Tobacco Settlement Asset-backed Bonds,
Series 2002-A, Class A, 6.72% 2025		15,068			14,063
State of Illinois, Regional Transportation Authority of Cook, DuPage, Kane, Lake, McHenry and Will Counties,
General Obligation Bonds, Series 2003-A, FGIC-National insured, 6.00% 2033		12,120			13,527
State of Indiana, Health and Educational Facility Financing Authority, Hospital Revenue Refunding Bonds
(Clarian Health Obligated Group), Series 2006-B, 5.00% 2033		13,860			12,808
State of New York, Metropolitan Transportation Authority, Dedicated Tax Fund Bonds (Federally Taxable-Issuer
Subsidy-Build America Bonds), Series 2009-C, 7.336% 2039		5,500			6,686
State of Wisconsin, General Fund Annual Appropriation Bonds, Series 2009-A, 5.75% 2033		6,000			6,488
State of Texas, SA Energy Acquisition Public Facility Corp., Gas Supply Revenue Bonds, Series 2007, 5.50% 2023		6,000			6,140
State of Illinois, City of Chicago, O’Hare International Airport, General Airport Revenue Bonds
(Build America Bonds-Direct Payment), Taxable Series 2010-B, 6.395% 2040		1,000			1,046
State of Maryland, Howard Hughes Medical Institute, Taxable Bonds, 3.45% 2014		125			133
					132,988
Total bonds & notes (cost: $30,408,743,000)					31,534,867
Convertible securities — 0.05%
INFORMATION TECHNOLOGY — 0.05%
Linear Technology Corp., Series A, 3.00% convertible notes 2027		11,500			12,233
Advanced Micro Devices, Inc. 6.00% convertible notes 2015		2,963			3,018
Total convertible securities (cost: $12,011,000)					15,251
Preferred securities — 0.25%
FINANCIALS — 0.24%
BNP Paribas 7.195%2,3		24,600			23,985
QBE Capital Funding II LP 6.797%2,3		23,855			21,949
PNC Preferred Funding Trust I 6.517%2,3		10,700			9,382
AXA SA, Series B, 6.379%2,3		9,065			8,023
HVB Funding Trust III 9.00% 20313		7,180			7,036
Catlin Insurance Ltd. 7.249%2,3		6,375			6,120
XL Capital Ltd., Series E, 6.50%2		3,000			2,782
					79,277
U.S. GOVERNMENT AGENCY SECURITIES  — 0.01%
US AgBank 6.11%2,3		6,250			4,055
Total preferred securities (cost: $71,404,000)					83,332
Common stocks — 0.02%	Shares
CONSUMER DISCRETIONARY — 0.02%
American Media, Inc.4,8,11		453,779			7,260
TELECOMMUNICATION SERVICES — 0.00%
Hawaiian Telcom Holdco, Inc.11		31,519			804
INDUSTRIALS— 0.00%
Atrium Corp.4,8,11		985			89
Total common stocks (cost: $8,663,000)					8,153
Warrants — 0.00%
TELECOMMUNICATION SERVICES — 0.00%
Hawaiian Telcom Holdco, Inc., warrants, expire 20154,11		47,929			622
Total warrants (cost: $11,276,000)					622
	Principal amount
Short-term securities — 11.48%		(000	)
Freddie Mac 0.08%–0.20% due 7/27/2011–4/17/2012	$	1,042,306			1,041,483
Fannie Mae 0.12%–0.23% due 8/22/2011–6/1/2012		782,520			782,058
Coca-Cola Co. 0.13%–0.24% due 7/1–11/3/20113		473,150			473,051
CAFCO, LLC 0.12%–0.20% due 7/5–9/28/2011		159,600			159,574
Ciesco LLC 0.18%–0.20% due 8/25–9/15/2011		81,800			81,782
Procter & Gamble International Funding S.C.A. 0.08% due 7/15/20113		219,000			218,993
Falcon Asset Securitization Co., LLC 0.09%–0.13% due 7/7–7/18/20113		107,600			107,593
Jupiter Securitization Co., LLC 0.19%–0.28% due 7/5–8/1/20113		68,500			68,496
Wal-Mart Stores, Inc. 0.07%–0.08% due 7/26–8/9/20113		163,000			162,989
Federal Home Loan Bank 0.13%–0.21% due 7/8/2011–2/23/2012		162,850			162,737
Straight-A Funding LLC 0.16%–0.23% due 7/1–9/8/20113		136,827			136,802
Federal Farm Credit Banks 0.18% due 4/18/2012		100,000			99,841
U.S. Treasury Bills 0.151%–0.291% due 7/14/2011–2/9/2012		76,925			76,900
PepsiCo Inc. 0.09% due 8/23/20113		45,000			44,994
Variable Funding Capital Company LLC 0.15% due 8/8/20113		40,200			40,193
Paccar Financial Corp. 0.16% due 8/11/2011		38,500			38,490
Johnson & Johnson 0.20% due 8/10/20113		38,000			37,996
Merck & Co. Inc. 0.10% due 9/8/20113		26,700			26,695
McDonald’s Corp. 0.08% due 7/14/20113		23,800			23,799
Medtronic Inc. 0.18% due 8/25/20113		23,600			23,596
Total short-term securities (cost: $3,807,856,000)					3,808,062
Total investment securities (cost: $34,319,953,000)					35,450,287
Other assets less liabilities					(2,271,406	)
Net assets				$	33,178,881

1Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

2Coupon rate may change periodically.

3Acquired in a transaction exempt from registration under 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 $4,920,004,000, which represented 14.83% of the net assets of the fund.

4Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $68,532,000, which represented .21% of the net assets of the fund.

5Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $277,790,000, which represented .84% of the net assets of the fund.

6Step bond; coupon rate will increase at a later date.

7Payment in kind; the issuer has the option of paying additional securities in lieu of cash.

8Acquired in a transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below.

	Acquisition	Cost			Value			Percent of
	date		(000	)		(000	)	net assets
NXP BV and NXP Funding LLC 10.00% 2013	7/17/2009	$	5,983		$	7,820			.03	%
American Media, Inc.	11/17/2010		7,602			7,260			.02
Atrium Corp.	4/30/2010		89			89			.00
Total restricted securities		$	13,674		$	15,169			.05	%

9A portion of this security was pledged as collateral for losses on unsettled forward currency contracts with certain counterparties. The total value of pledged collateral was $3,324,000, which represented .01% of the net assets of the fund.

10Index-linked bond whose principal amount moves with a government price index.

11Security did not produce income during the last 12 months.

Key to abbreviations and symbols
ARS = Argentine pesos	€ = Euros	KRW = South Korean won	TRY = Turkish liras
A$ = Australian dollars	£ = British pounds	MXN = Mexican pesos	UYU = Uruguayan pesos
BRL = Brazilian reais	HUF = Hungarian forints	MYR = Malaysian ringgits	ZAR = South African rand
C$ = Canadian dollars	IDR = Indonesian rupiah	PHP = Philippine pesos
COP = Colombian pesos	ILS = Israeli shekels	PLN = Polish zloty
DKr = Danish kroner	¥ = Japanese yen	RUB = Russian ruble

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 the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s 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 800/421-0180 or visit the American Funds website at americanfunds.com.

MFGEFP-908-0811O-S29473

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

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

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

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

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

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

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

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

ITEM 11 – Controls and Procedures

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

ITEM 12 – Exhibits

(a)(1)	Not applicable for filing of semi-annual reports to shareholders.
(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

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

THE BOND FUND OF AMERICA

By /s/ John H. Smet

John H. Smet, President and

Principal Executive Officer

Date: August 31, 2011

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/ John H. Smet

John H. Smet, President and

Principal Executive Officer

Date: August 31, 2011

By /s/ Brian C. Janssen

Brian C. Janssen, Treasurer and

Principal Financial Officer

Date: August 31, 2011