International Growth and Income FundSM
Investment portfolio
September 30, 2020
unaudited
Common stocks 93.20% Financials 17.03% | Shares | Value (000) |
AIA Group Ltd.1 | 27,003,200 | $266,013 |
Euronext NV1 | 1,443,128 | 180,389 |
Ping An Insurance (Group) Company of China, Ltd., Class H1 | 14,506,500 | 149,652 |
Zurich Insurance Group AG1 | 416,758 | 144,901 |
EQT AB1 | 7,024,008 | 135,941 |
Toronto-Dominion Bank (CAD denominated) | 2,661,866 | 123,243 |
AXA SA1 | 5,848,159 | 107,959 |
HDFC Bank Ltd.1,2 | 7,184,091 | 105,858 |
Sberbank of Russia PJSC (ADR)1,2 | 9,042,503 | 105,496 |
UBS Group AG1 | 9,104,974 | 101,645 |
Prudential PLC1 | 7,056,093 | 100,738 |
B3 SA - Brasil, Bolsa, Balcao | 8,610,000 | 84,338 |
Hong Kong Exchanges and Clearing Ltd.1 | 1,793,100 | 84,284 |
Partners Group Holding AG1 | 81,410 | 74,911 |
Hiscox Ltd.1,2 | 5,944,396 | 68,419 |
Deutsche Boerse AG1 | 370,081 | 64,993 |
London Stock Exchange Group PLC1 | 556,062 | 63,614 |
Aviva PLC1 | 16,938,971 | 62,288 |
HDFC Life Insurance Company Ltd.1,2 | 8,185,000 | 62,104 |
Moscow Exchange MICEX-RTS PJSC1 | 26,112,700 | 49,151 |
Kotak Mahindra Bank Ltd.1,2 | 2,755,000 | 47,419 |
UniCredit SpA1,2 | 4,960,623 | 40,909 |
Intercontinental Exchange, Inc. | 408,399 | 40,860 |
Macquarie Group Ltd.1 | 471,154 | 40,471 |
Banco Bilbao Vizcaya Argentaria, SA1 | 13,952,229 | 38,561 |
Fairfax Financial Holdings Ltd., subordinate voting shares | 127,533 | 37,554 |
Société Générale1,2 | 2,701,018 | 35,742 |
Tokio Marine Holdings, Inc.1 | 770,800 | 33,755 |
FinecoBank SpA1,2 | 2,260,000 | 31,097 |
3i Group PLC1 | 2,374,904 | 30,486 |
Barclays PLC1,2 | 24,193,751 | 30,444 |
Brookfield Asset Management Inc., Class A (CAD denominated) | 845,687 | 27,983 |
Bank of Nova Scotia (CAD denominated) | 607,620 | 25,244 |
DNB ASA1,2 | 1,796,269 | 24,810 |
M&G PLC1 | 11,780,149 | 24,110 |
Discovery Ltd.1 | 3,070,754 | 23,426 |
Banco Santander, SA1 | 11,549,853 | 21,517 |
TMX Group Ltd. | 201,112 | 20,683 |
Resona Holdings, Inc.1,3 | 5,851,100 | 19,941 |
BB Seguridade Participações SA | 4,565,000 | 19,728 |
Investor AB, Class B1 | 257,152 | 16,768 |
Lloyds Banking Group PLC1,2 | 48,993,478 | 16,626 |
QBE Insurance Group Ltd.1 | 1,822,679 | 11,280 |
ING Groep NV1,2 | 1,393,014 | 9,864 |
International Growth and Income Fund — Page 1 of 9
unaudited
Common stocks (continued) Financials (continued) | Shares | Value (000) |
ICICI Bank Ltd. (ADR)2 | 422,745 | $4,156 |
Piraeus Bank SA1,2 | 12,030 | 15 |
2,809,386 | ||
Information technology 13.49% | ||
Taiwan Semiconductor Manufacturing Company, Ltd.1 | 55,345,506 | 831,211 |
ASML Holding NV1 | 963,604 | 355,314 |
Tokyo Electron Ltd.1,3 | 889,500 | 232,808 |
SAP SE1 | 718,975 | 111,961 |
Broadcom Inc. | 290,264 | 105,749 |
Edenred SA1 | 1,984,262 | 89,025 |
PagSeguro Digital Ltd., Class A2 | 2,253,602 | 84,983 |
Vanguard International Semiconductor Corp.1 | 22,758,250 | 75,935 |
Keyence Corp.1 | 158,500 | 73,868 |
TDK Corp.1 | 656,300 | 71,769 |
Temenos AG1 | 305,802 | 41,181 |
Logitech International SA1 | 511,994 | 39,620 |
Nokia Corp.1,2 | 8,318,524 | 32,605 |
MediaTek Inc.1 | 1,428,000 | 30,112 |
NetEase, Inc.1 | 1,404,500 | 25,194 |
Infosys Ltd. (ADR) | 849,745 | 11,735 |
Nemetschek SE1 | 98,360 | 7,204 |
Capita PLC1,2 | 7,358,191 | 2,883 |
Largan Precision Co., Ltd.1 | 15,000 | 1,753 |
2,224,910 | ||
Consumer discretionary 11.36% | ||
Alibaba Group Holding Ltd.1,2 | 4,667,200 | 172,587 |
Wynn Macau, Ltd.1,2 | 102,692,400 | 164,387 |
Evolution Gaming Group AB1 | 2,233,946 | 147,664 |
LVMH Moët Hennessy-Louis Vuitton SE1 | 308,282 | 144,121 |
Midea Group Co., Ltd., Class A1 | 10,792,366 | 115,390 |
Ocado Group PLC1,2 | 2,693,022 | 95,171 |
Renault SA1,2 | 3,378,861 | 87,216 |
adidas AG1,2 | 237,218 | 76,779 |
Valeo SA, non-registered shares1 | 2,404,334 | 73,484 |
Gree Electric Appliances, Inc. of Zhuhai, Class A1 | 8,840,255 | 69,478 |
Sands China Ltd.1 | 17,044,800 | 66,326 |
Naspers Ltd., Class N1,2 | 362,081 | 63,863 |
Sony Corp.1 | 786,900 | 60,186 |
Peugeot SA1,2 | 3,204,474 | 57,778 |
InterContinental Hotels Group PLC1,2 | 1,074,421 | 56,408 |
Restaurant Brands International Inc. (CAD denominated) | 919,993 | 52,841 |
Cie. Financière Richemont SA, Class A1 | 741,926 | 49,695 |
Paltac Corp.1 | 980,100 | 49,468 |
B&M European Value Retail SA1 | 7,690,148 | 48,931 |
MGM China Holdings, Ltd.1,3 | 35,633,600 | 44,247 |
Prosus NV1,2 | 362,081 | 33,390 |
Li Ning Co. Ltd.1 | 6,239,048 | 29,276 |
OPAP SA1 | 3,030,177 | 28,740 |
Barratt Developments PLC1 | 3,326,034 | 20,337 |
Sodexo SA1 | 280,900 | 20,004 |
HUGO BOSS AG1 | 707,681 | 17,722 |
International Growth and Income Fund — Page 2 of 9
unaudited
Common stocks (continued) Consumer discretionary (continued) | Shares | Value (000) |
Galaxy Entertainment Group Ltd.1 | 2,495,000 | $16,887 |
Industria de Diseño Textil, SA1 | 425,988 | 11,844 |
1,874,220 | ||
Consumer staples 10.11% | ||
British American Tobacco PLC1 | 12,007,240 | 431,576 |
Nestlé SA1 | 2,319,541 | 275,188 |
Philip Morris International Inc. | 2,680,275 | 200,994 |
Pernod Ricard SA1 | 846,264 | 135,055 |
Anheuser-Busch InBev SA/NV1 | 2,191,416 | 118,287 |
Associated British Foods PLC1 | 4,775,234 | 115,030 |
Kweichow Moutai Co., Ltd., Class A1 | 467,763 | 114,991 |
Carlsberg A/S, Class B1 | 668,900 | 90,068 |
Unilever PLC1 | 1,387,631 | 85,503 |
Bakkafrost P/F1,2 | 439,578 | 28,351 |
Unilever NV (EUR denominated)1 | 398,766 | 24,074 |
Reckitt Benckiser Group PLC1 | 243,963 | 23,785 |
Danone SA1 | 223,576 | 14,461 |
X5 Retail Group NV (GDR)1 | 273,367 | 10,113 |
1,667,476 | ||
Health care 9.02% | ||
AstraZeneca PLC1 | 3,995,849 | 434,912 |
Sanofi1 | 1,768,861 | 177,362 |
Novartis AG1 | 1,645,421 | 142,989 |
Novo Nordisk A/S, Class B1 | 1,667,987 | 115,861 |
Koninklijke Philips NV (EUR denominated)1,2 | 2,333,342 | 109,924 |
Bayer AG1 | 1,657,037 | 103,566 |
GlaxoSmithKline PLC1 | 4,530,226 | 84,860 |
HOYA Corp.1 | 687,300 | 77,472 |
Fisher & Paykel Healthcare Corp. Ltd.1 | 1,966,417 | 43,284 |
Hypera SA, ordinary nominative | 6,398,800 | 33,977 |
Coloplast A/S, Class B1 | 195,235 | 30,876 |
Hutchison China MediTech Ltd. (ADR)2 | 814,968 | 26,324 |
Shionogi & Co., Ltd.1 | 468,700 | 25,076 |
ORPEA Group, non-registered shares1,2 | 204,326 | 23,207 |
Takeda Pharmaceutical Company, Ltd.1 | 577,700 | 20,579 |
Mettler-Toledo International Inc.2 | 19,037 | 18,385 |
Roche Holding AG, nonvoting, non-registered shares1 | 36,023 | 12,325 |
Galapagos NV1,2 | 42,032 | 5,970 |
1,486,949 | ||
Industrials 8.60% | ||
BAE Systems PLC1 | 27,271,221 | 168,686 |
Airbus SE, non-registered shares1,2 | 2,258,519 | 163,934 |
ABB Ltd1 | 6,330,399 | 160,444 |
SMC Corp.1 | 230,600 | 128,342 |
Safran SA1,2 | 759,846 | 74,772 |
Rheinmetall AG1 | 787,420 | 70,992 |
Ryanair Holdings PLC (ADR)2 | 831,073 | 67,949 |
AB Volvo, Class B1,2 | 3,109,150 | 59,716 |
Kone OYJ, Class B1 | 672,424 | 59,114 |
Meggitt PLC1,2 | 16,575,118 | 54,968 |
CCR SA, ordinary nominative | 22,941,700 | 51,759 |
Cathay Pacific Airways Ltd.1,2 | 73,196,180 | 50,935 |
International Growth and Income Fund — Page 3 of 9
unaudited
Common stocks (continued) Industrials (continued) | Shares | Value (000) |
Alliance Global Group, Inc.1,2 | 350,520,000 | $50,686 |
ASSA ABLOY AB, Class B1 | 1,955,340 | 45,640 |
Bunzl PLC1 | 1,268,338 | 40,921 |
VAT Group AG1 | 175,621 | 33,574 |
RELX PLC1 | 1,184,017 | 26,208 |
Experian PLC1 | 611,982 | 22,901 |
MTU Aero Engines AG1 | 102,178 | 16,994 |
Epiroc AB, Class B1 | 611,305 | 8,502 |
Epiroc AB, Class A1 | 581,564 | 8,441 |
Geberit AG1 | 23,104 | 13,690 |
Canadian National Railway Company (CAD denominated) | 109,639 | 11,677 |
International Consolidated Airlines Group SA (CDI)1 | 4,631,854 | 5,623 |
International Consolidated Airlines Group SA (CDI)1,3 | 3,087,903 | 3,749 |
Aeroflot - Russian Airlines PJSC1,2 | 9,648,192 | 9,155 |
JGC Holdings Corp.1 | 521,598 | 5,418 |
Singapore Technologies Engineering Ltd1 | 1,309,400 | 3,337 |
1,418,127 | ||
Utilities 6.00% | ||
Enel SpA1 | 41,152,645 | 357,335 |
Ørsted AS1 | 1,229,185 | 169,548 |
Engie SA1,2 | 7,594,138 | 101,499 |
Brookfield Infrastructure Partners LP | 1,678,131 | 80,015 |
National Grid PLC1 | 6,673,797 | 76,827 |
Iberdrola, SA, non-registered shares1 | 4,520,800 | 55,641 |
China Gas Holdings Ltd.1 | 18,122,800 | 51,681 |
Guangdong Investment Ltd.1 | 31,204,000 | 49,545 |
Endesa, SA1 | 1,401,487 | 37,483 |
ENN Energy Holdings Ltd.1 | 662,100 | 7,223 |
Brookfield Infrastructure Corp., Class A, subordinate voting shares3 | 60,208 | 3,337 |
990,134 | ||
Communication services 5.46% | ||
Nintendo Co., Ltd.1 | 299,800 | 170,430 |
Koninklijke KPN NV1 | 70,283,608 | 165,263 |
Vodafone Group PLC1 | 96,688,663 | 128,275 |
Tencent Holdings Ltd.1 | 1,588,400 | 105,777 |
América Móvil, SAB de CV, Series L (ADR) | 5,652,858 | 70,604 |
SoftBank Corp.1,3 | 4,894,900 | 54,847 |
KT Corp. (ADR) | 3,269,114 | 31,416 |
KT Corp.1 | 956,370 | 18,756 |
Shaw Communications Inc., Class B, nonvoting shares | 2,398,874 | 43,778 |
BT Group PLC1 | 21,940,965 | 27,883 |
HKBN Ltd.1 | 13,936,000 | 26,544 |
Bharti Infratel Ltd.1 | 10,676,444 | 25,514 |
Perusahaan Perseroan (Persero) Telekomunikasi Indonesia Tbk PT, Class B1 | 131,891,300 | 22,754 |
Sea Ltd., Class A (ADR)2 | 30,187 | 4,650 |
Nippon Telegraph and Telephone Corp.1 | 180,300 | 3,689 |
900,180 | ||
Materials 5.13% | ||
Vale SA, ordinary nominative | 10,900,393 | 114,732 |
Vale SA, ordinary nominative (ADR) | 3,888,181 | 41,137 |
Linde PLC | 606,500 | 144,426 |
Koninklijke DSM NV1 | 841,702 | 138,709 |
International Growth and Income Fund — Page 4 of 9
unaudited
Common stocks (continued) Materials (continued) | Shares | Value (000) |
Rio Tinto PLC1 | 1,496,930 | $90,322 |
Asahi Kasei Corp.1 | 8,050,100 | 70,272 |
AngloGold Ashanti Ltd. (ADR) | 1,994,126 | 52,605 |
LyondellBasell Industries NV | 511,870 | 36,082 |
Alrosa PJSC1 | 28,747,745 | 27,291 |
Fortescue Metals Group Ltd.1 | 1,912,507 | 22,388 |
Barrick Gold Corp. (GBP denominated) | 793,531 | 22,288 |
Wheaton Precious Metals Corp. (CAD denominated) | 424,837 | 20,844 |
Air Liquide SA, non-registered shares1 | 131,018 | 20,790 |
Shin-Etsu Chemical Co., Ltd.1 | 116,300 | 15,180 |
Sika AG1 | 53,111 | 13,048 |
Givaudan SA1 | 2,814 | 12,128 |
Gerdau SA (ADR) | 1,198,748 | 4,435 |
846,677 | ||
Energy 4.27% | ||
TC Energy Corp. (CAD denominated) | 2,503,509 | 105,100 |
Total SE1,3 | 2,711,383 | 93,090 |
LUKOIL Oil Co. PJSC (ADR)1 | 1,598,922 | 92,448 |
Gazprom PJSC (ADR)1 | 20,118,588 | 87,527 |
Schlumberger Ltd. | 4,334,898 | 67,451 |
Royal Dutch Shell PLC, Class B1 | 4,838,066 | 58,526 |
Royal Dutch Shell PLC, Class B (ADR) | 179,297 | 4,343 |
Royal Dutch Shell PLC, Class A (GBP denominated)1 | 102,572 | 1,269 |
Inter Pipeline Ltd.3 | 5,082,090 | 49,884 |
Enbridge Inc. (CAD denominated) | 1,229,384 | 35,915 |
Reliance Industries Ltd.1 | 859,046 | 26,164 |
Rosneft Oil Company PJSC (GDR)1 | 4,981,954 | 24,444 |
Neste Oyj1 | 430,581 | 22,642 |
Galp Energia, SGPS, SA, Class B1 | 2,294,593 | 21,269 |
CNOOC Ltd.1 | 8,329,000 | 8,062 |
INPEX Corp.1 | 976,400 | 5,224 |
703,358 | ||
Real estate 2.73% | ||
Longfor Group Holdings Ltd.1 | 24,952,500 | 140,259 |
CK Asset Holdings Ltd.1 | 18,782,244 | 91,640 |
China Overseas Land & Investment Ltd.1 | 25,752,500 | 64,948 |
Link Real Estate Investment Trust REIT1 | 6,156,326 | 50,324 |
Brookfield Property Partners LP | 2,830,512 | 34,051 |
KE Holdings Inc., Class A (ADR)2 | 529,420 | 32,453 |
Unibail-Rodamco-Westfield, non-registered shares REIT1,3 | 468,461 | 17,286 |
Vonovia SE1 | 205,800 | 14,142 |
Central Pattana PCL, foreign registered1 | 3,711,400 | 4,987 |
450,090 | ||
Total common stocks (cost: $13,039,713,000) | 15,371,507 | |
Preferred securities 3.07% Information technology 1.81% | ||
Samsung Electronics Co., Ltd., nonvoting preferred shares1 | 6,920,928 | 298,590 |
International Growth and Income Fund — Page 5 of 9
unaudited
Preferred securities (continued) Consumer discretionary 0.67% | Shares | Value (000) |
Hyundai Motor Co., Series 2, preferred shares1 | 943,537 | $71,072 |
Volkswagen AG, nonvoting preferred shares1,2 | 242,995 | 39,107 |
110,179 | ||
Materials 0.35% | ||
Gerdau SA, preferred nominative | 15,357,332 | 56,880 |
Financials 0.14% | ||
Banco Bradesco SA, preferred nominative | 6,661,490 | 23,024 |
Health care 0.10% | ||
Sartorius AG, nonvoting preferred, non-registered shares1 | 41,862 | 17,197 |
Total preferred securities (cost: $446,362,000) | 505,870 | |
Short-term securities 4.26% Money market investments 4.26% | ||
Capital Group Central Cash Fund 0.12%4,5 | 5,802,397 | 580,298 |
BlackRock Liquidity Funds – FedFund, Institutional Shares 0.05%4,6 | 60,000,000 | 60,000 |
Goldman Sachs Financial Square Government Fund, Institutional Shares 0.03%4,6 | 50,000,000 | 50,000 |
Invesco Short-Term Investments Trust – Government & Agency Portfolio, Institutional Class 0.02%4,6 | 6,880,918 | 6,881 |
State Street Institutional U.S. Government Money Market Fund, Premier Class 0.03%4,6 | 4,000,000 | 4,000 |
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, Institutional Class 0.02%4,6 | 2,000,000 | 2,000 |
703,179 | ||
Total short-term securities (cost: $703,091,000) | 703,179 | |
Total investment securities 100.53% (cost: $14,189,166,000) | 16,580,556 | |
Other assets less liabilities (0.53)% | (88,003) | |
Net assets 100.00% | $16,492,553 |
Investments in affiliates5
Value of affiliate at 7/1/2020 (000) | Additions (000) | Reductions (000) | Net realized gain (000) | Net unrealized depreciation (000) | Value of affiliate at 9/30/2020 (000) | Dividend income (000) | |
Short-term securities 3.52% | |||||||
Money market investments 3.52% | |||||||
Capital Group Central Cash Fund 0.12%4 | $655,144 | $318,183 | $393,029 | $13 | $(13) | $580,298 | $193 |
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $13,747,765,000, which represented 83.36% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Security did not produce income during the last 12 months. |
3 | All or a portion of this security was on loan. The total value of all such securities was $191,719,000, which represented 1.16% of the net assets of the fund. |
4 | Rate represents the seven-day yield at 9/30/2020. |
5 | Part of the same group of investment companies as the fund as defined under the Investment Company Act of 1940. |
6 | Security purchased with cash collateral from securities on loan. |
International Growth and Income Fund — Page 6 of 9
unaudited
Valuation disclosures
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds, notes & loans; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or deemed to be not representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds“), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
International Growth and Income Fund — Page 7 of 9
unaudited
Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of September 30, 2020 (dollars in thousands):
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Common stocks: | ||||
Financials | $383,789 | $2,425,597 | $— | $2,809,386 |
Information technology | 202,467 | 2,022,443 | — | 2,224,910 |
Consumer discretionary | 52,841 | 1,821,379 | — | 1,874,220 |
Consumer staples | 200,994 | 1,466,482 | — | 1,667,476 |
Health care | 78,686 | 1,408,263 | — | 1,486,949 |
Industrials | 131,385 | 1,286,742 | — | 1,418,127 |
Utilities | 83,352 | 906,782 | — | 990,134 |
Communication services | 150,448 | 749,732 | — | 900,180 |
Materials | 436,549 | 410,128 | — | 846,677 |
Energy | 262,693 | 440,665 | — | 703,358 |
Real estate | 66,504 | 383,586 | — | 450,090 |
Preferred securities | 79,904 | 425,966 | — | 505,870 |
Short-term securities | 703,179 | — | — | 703,179 |
Total | $2,832,791 | $13,747,765 | $— | $16,580,556 |
Key to abbreviations |
ADR = American Depositary Receipts |
CAD = Canadian dollars |
CDI = CREST Depository Interest |
EUR = Euros |
GBP = British pounds |
GDR = Global Depositary Receipts |
International Growth and Income Fund — Page 8 of 9
unaudited
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the Capital Group website at capitalgroup.com.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
American Funds Distributors, Inc., member FINRA.
© 2020 Capital Group. All rights reserved.
MFGEFP1-034-1120O-S78136 | International Growth and Income Fund — Page 9 of 9 |