International Growth and Income Fund
Investment portfolio
September 30, 2023
Investment portfolio
September 30, 2023
unaudited
Common stocks 93.94% Financials 17.19% | Shares | Value (000) | |
AXA SA | 6,330,677 | $187,517 | |
AIA Group, Ltd. | 18,220,330 | 147,385 | |
Edenred SA | 2,288,388 | 142,979 | |
Ping An Insurance (Group) Company of China, Ltd., Class H | 22,876,500 | 129,577 | |
DNB Bank ASA | 5,507,214 | 110,923 | |
Zurich Insurance Group AG | 231,835 | 106,235 | |
HDFC Bank, Ltd. | 5,701,230 | 104,405 | |
Resona Holdings, Inc.1 | 18,568,800 | 102,625 | |
Société Générale | 3,676,949 | 88,946 | |
Tokio Marine Holdings, Inc.1 | 3,417,800 | 78,788 | |
Hiscox, Ltd. | 5,926,470 | 72,505 | |
UniCredit SpA | 2,626,151 | 62,842 | |
Hana Financial Group, Inc. | 1,871,918 | 58,869 | |
Euronext NV | 759,911 | 52,883 | |
KB Financial Group, Inc. | 1,277,223 | 52,533 | |
Banco Santander, SA | 13,650,710 | 51,837 | |
Bank Hapoalim BM | 5,191,683 | 46,162 | |
HSBC Holdings PLC | 5,615,784 | 43,994 | |
London Stock Exchange Group PLC | 424,575 | 42,622 | |
Aon PLC, Class A | 129,830 | 42,093 | |
Banco Bilbao Vizcaya Argentaria, SA | 4,913,320 | 40,007 | |
Grupo Financiero Banorte, SAB de CV, Series O | 4,578,219 | 38,383 | |
Bank Mandiri (Persero) Tbk PT | 93,955,000 | 36,628 | |
Erste Group Bank AG | 1,051,535 | 36,325 | |
DBS Group Holdings, Ltd. | 1,421,724 | 34,910 | |
Hang Seng Bank, Ltd. | 2,561,386 | 31,819 | |
Bank Leumi Le Israel BM | 3,447,541 | 28,506 | |
HDFC Life Insurance Co., Ltd. | 3,655,613 | 28,057 | |
Industrial and Commercial Bank of China, Ltd., Class H | 57,621,000 | 27,758 | |
Prudential PLC | 2,525,830 | 27,198 | |
Toronto-Dominion Bank (The)1 | 414,659 | 24,982 | |
Israel Discount Bank, Ltd., Class A | 4,112,918 | 22,202 | |
Tryg A/S | 1,145,059 | 20,942 | |
CaixaBank, SA, non-registered shares | 5,080,828 | 20,323 | |
Kotak Mahindra Bank, Ltd. | 948,000 | 19,818 | |
Dai-ichi Life Holdings, Inc. | 943,100 | 19,622 | |
ICICI Bank, Ltd. (ADR) | 767,422 | 17,743 | |
Skandinaviska Enskilda Banken AB, Class A | 1,448,432 | 17,252 | |
Discovery, Ltd. | 2,280,096 | 16,538 | |
China Merchants Bank Co., Ltd., Class H | 3,863,500 | 16,030 | |
ICICI Securities, Ltd. | 2,062,200 | 15,421 | |
XP, Inc., Class A | 651,465 | 15,016 | |
Macquarie Group, Ltd. | 129,301 | 13,913 | |
Brookfield Corp., Class A (CAD denominated) | 439,439 | 13,740 | |
Canara Bank | 2,810,000 | 12,715 | |
3i Group PLC | 499,590 | 12,575 |
International Growth and Income Fund — Page 1 of 10
unaudited
Common stocks (continued) Financials (continued) | Shares | Value (000) | |
ING Groep NV | 888,582 | $11,738 | |
United Overseas Bank, Ltd. | 534,500 | 11,127 | |
Hong Kong Exchanges and Clearing, Ltd. | 266,600 | 9,939 | |
Postal Savings Bank of China Co., Ltd., Class H | 19,743,000 | 9,926 | |
Banca Generali SpA | 272,292 | 9,621 | |
B3 SA - Brasil, Bolsa, Balcao | 3,580,000 | 8,753 | |
Intesa Sanpaolo SpA | 3,349,070 | 8,606 | |
ABN AMRO Bank NV | 529,665 | 7,500 | |
AU Small Finance Bank, Ltd. | 549,500 | 4,718 | |
Piraeus Financial Holdings SA2 | 726 | 2 | |
Sberbank of Russia PJSC3 | 22,898,260 | — 4 | |
Moscow Exchange MICEX-RTS PJSC3 | 16,180,772 | — 4 | |
2,416,073 | |||
Industrials 13.39% | |||
Airbus SE, non-registered shares | 2,289,417 | 306,284 | |
BAE Systems PLC | 17,761,565 | 215,605 | |
CCR SA, ordinary nominative shares | 37,154,931 | 95,279 | |
ABB, Ltd. | 2,493,286 | 89,101 | |
Ryanair Holdings PLC (ADR)2 | 834,220 | 81,094 | |
Alliance Global Group, Inc. | 350,520,000 | 76,379 | |
SMC Corp. | 154,600 | 69,204 | |
RELX PLC | 1,853,124 | 62,496 | |
TFI International, Inc. | 246,618 | 31,668 | |
TFI International, Inc. (CAD denominated)1 | 219,069 | 28,135 | |
Bunzl PLC | 1,555,074 | 55,194 | |
Daikin Industries, Ltd. | 334,900 | 52,541 | |
Safran SA | 326,090 | 50,985 | |
Rheinmetall AG | 166,879 | 43,025 | |
InPost SA2 | 3,463,789 | 40,156 | |
Mitsui & Co., Ltd. | 1,025,200 | 37,157 | |
SITC International Holdings Co., Ltd. | 20,829,267 | 34,967 | |
Epiroc AB, Class A | 875,571 | 16,573 | |
Epiroc AB, Class B | 860,889 | 13,765 | |
Siemens AG | 207,907 | 29,806 | |
Caterpillar, Inc. | 101,916 | 27,823 | |
Nidec Corp. | 598,900 | 27,744 | |
LIXIL Corp.1 | 2,276,255 | 26,497 | |
Experian PLC | 783,809 | 25,606 | |
Canadian National Railway Co. | 215,801 | 23,370 | |
BELIMO Holding AG | 48,841 | 23,150 | |
Canadian Pacific Kansas City, Ltd. (CAD denominated) | 306,948 | 22,816 | |
Brenntag SE | 282,889 | 21,968 | |
Techtronic Industries Co., Ltd. | 2,232,326 | 21,674 | |
Adecco Group AG | 462,870 | 18,986 | |
AB Volvo, Class B | 904,434 | 18,617 | |
Interpump Group SpA | 401,700 | 18,404 | |
DHL Group | 423,312 | 17,253 | |
Rentokil Initial PLC | 2,039,839 | 15,122 | |
Wizz Air Holdings PLC2 | 628,857 | 14,635 | |
Diploma PLC | 399,672 | 14,602 | |
Fluidra, SA, non-registered shares | 697,427 | 14,178 | |
ITOCHU Corp.1 | 370,900 | 13,401 | |
Hitachi, Ltd. | 183,900 | 11,401 | |
ASSA ABLOY AB, Class B | 523,170 | 11,398 |
International Growth and Income Fund — Page 2 of 10
unaudited
Common stocks (continued) Industrials (continued) | Shares | Value (000) | |
IMCD NV | 89,926 | $11,367 | |
Shenzhen Inovance Technology Co., Ltd., Class A | 1,036,200 | 9,494 | |
Komatsu, Ltd. | 333,500 | 9,013 | |
DSV A/S | 40,031 | 7,463 | |
Polycab India, Ltd. | 95,000 | 6,115 | |
Melrose Industries PLC | 1,059,130 | 6,036 | |
VAT Group AG | 14,988 | 5,337 | |
Aalberts NV, non-registered shares | 133,934 | 4,884 | |
Thales SA | 25,479 | 3,575 | |
1,881,343 | |||
Information technology 10.39% | |||
Taiwan Semiconductor Manufacturing Co., Ltd. | 19,336,407 | 313,793 | |
ASML Holding NV | 487,896 | 286,512 | |
Tokyo Electron, Ltd. | 1,039,035 | 141,397 | |
MediaTek, Inc. | 5,539,400 | 126,550 | |
Samsung Electronics Co., Ltd. | 2,025,800 | 102,637 | |
Broadcom, Inc. | 120,254 | 99,881 | |
SAP SE | 587,165 | 76,217 | |
TDK Corp. | 1,371,575 | 50,794 | |
Capgemini SE | 278,015 | 48,274 | |
Keyence Corp. | 119,000 | 44,229 | |
ASM International NV | 91,425 | 38,179 | |
Nokia Corp. | 8,268,710 | 31,098 | |
Sage Group PLC (The) | 2,253,267 | 27,118 | |
Kingdee International Software Group Co., Ltd.2 | 16,177,000 | 19,842 | |
ASMPT, Ltd. | 2,164,500 | 19,332 | |
Halma PLC | 500,691 | 11,763 | |
eMemory Technology, Inc. | 133,000 | 8,321 | |
Nomura Research Institute, Ltd. | 235,800 | 6,136 | |
Fujitsu, Ltd. | 44,300 | 5,212 | |
Vanguard International Semiconductor Corp. | 1,768,705 | 3,730 | |
1,461,015 | |||
Consumer discretionary 10.32% | |||
LVMH Moët Hennessy-Louis Vuitton SE | 243,446 | 183,662 | |
Renault SA | 3,368,672 | 137,931 | |
Evolution AB | 948,014 | 95,529 | |
InterContinental Hotels Group PLC | 1,228,271 | 90,551 | |
Industria de Diseño Textil, SA | 2,168,318 | 80,703 | |
Restaurant Brands International, Inc. (CAD denominated) | 1,126,260 | 75,001 | |
Midea Group Co., Ltd., Class A | 9,159,002 | 69,626 | |
MGM China Holdings, Ltd.2 | 52,132,400 | 67,890 | |
B&M European Value Retail SA | 8,798,890 | 62,858 | |
Prosus NV, Class N | 1,868,934 | 55,077 | |
Sands China, Ltd.2 | 17,981,935 | 54,683 | |
Sodexo SA | 518,438 | 53,393 | |
Wynn Macau, Ltd.1,2 | 52,978,800 | 50,562 | |
Galaxy Entertainment Group, Ltd. | 7,903,000 | 47,273 | |
Stellantis NV | 2,049,516 | 39,311 | |
adidas AG | 181,134 | 31,891 | |
Paltac Corp.1 | 977,000 | 30,639 | |
Valeo SA, non-registered shares | 1,787,856 | 30,627 | |
Trip.com Group, Ltd.2 | 449,650 | 15,864 | |
Trip.com Group, Ltd. (ADR)2 | 417,730 | 14,608 |
International Growth and Income Fund — Page 3 of 10
unaudited
Common stocks (continued) Consumer discretionary (continued) | Shares | Value (000) | |
Alibaba Group Holding, Ltd.2 | 2,464,600 | $26,720 | |
Coupang, Inc., Class A2 | 1,306,227 | 22,206 | |
Cie. Financière Richemont SA, Class A | 164,652 | 20,062 | |
D’Ieteren Group | 118,469 | 19,930 | |
Entain PLC | 1,503,506 | 17,113 | |
Amadeus IT Group SA, Class A, non-registered shares | 209,138 | 12,603 | |
Games Workshop Group PLC | 96,421 | 12,425 | |
Kering SA | 25,972 | 11,808 | |
Nitori Holdings Co., Ltd. | 59,300 | 6,640 | |
MercadoLibre, Inc.2 | 3,892 | 4,935 | |
Dixon Technologies (India), Ltd. | 72,747 | 4,626 | |
Balkrishna Industries, Ltd. | 113,180 | 3,482 | |
Meituan, Class B2 | 22,440 | 326 | |
1,450,555 | |||
Health care 10.18% | |||
AstraZeneca PLC | 3,245,617 | 436,785 | |
Novo Nordisk AS, Class B | 4,216,506 | 383,558 | |
Sanofi | 2,093,366 | 224,623 | |
EssilorLuxottica SA | 448,411 | 77,946 | |
Bayer AG | 1,376,070 | 66,092 | |
Grifols, SA, Class B (ADR)2 | 3,998,615 | 36,547 | |
WuXi Biologics (Cayman), Inc.2 | 5,211,500 | 30,608 | |
Genus PLC | 927,078 | 23,675 | |
Siemens Healthineers AG | 459,225 | 23,326 | |
Lonza Group AG | 49,968 | 23,118 | |
HOYA Corp. | 220,600 | 22,734 | |
Argenx SE (ADR)2 | 35,874 | 17,637 | |
Innovent Biologics, Inc.2 | 3,400,573 | 16,518 | |
Roche Holding AG, nonvoting non-registered shares | 56,362 | 15,374 | |
Eisai Co., Ltd. | 238,500 | 13,240 | |
Hypera SA, ordinary nominative shares | 1,258,800 | 9,301 | |
BeiGene, Ltd. (ADR)2 | 51,159 | 9,202 | |
Euroapi SA2 | 42,755 | 539 | |
1,430,823 | |||
Consumer staples 9.98% | |||
Philip Morris International, Inc. | 3,280,799 | 303,736 | |
British American Tobacco PLC | 7,182,587 | 225,476 | |
Nestlé SA | 1,062,012 | 119,924 | |
Kweichow Moutai Co., Ltd., Class A | 481,393 | 119,434 | |
Carlsberg A/S, Class B | 732,231 | 92,269 | |
Pernod Ricard SA | 414,157 | 68,941 | |
Imperial Brands PLC | 3,176,615 | 64,507 | |
Anheuser-Busch InBev SA/NV | 1,146,637 | 63,143 | |
KT&G Corp. | 916,392 | 58,598 | |
Carrefour SA, non-registered shares | 2,932,114 | 50,425 | |
Arca Continental, SAB de CV | 4,965,089 | 45,094 | |
Ocado Group PLC2 | 5,089,253 | 37,027 | |
Japan Tobacco, Inc. | 1,585,200 | 36,480 | |
Asahi Group Holdings, Ltd. | 841,600 | 31,465 | |
L’Oréal SA, non-registered shares | 64,943 | 26,896 | |
Foshan Haitian Flavouring and Food Co., Ltd., Class A | 4,163,670 | 21,845 | |
Kimberly-Clark de México, SAB de CV, Class A, ordinary participation certificates | 7,255,300 | 14,446 |
International Growth and Income Fund — Page 4 of 10
unaudited
Common stocks (continued) Consumer staples (continued) | Shares | Value (000) | |
Reckitt Benckiser Group PLC | 189,678 | $13,405 | |
Danone SA | 187,274 | 10,318 | |
1,403,429 | |||
Energy 7.12% | |||
TotalEnergies SE | 4,931,063 | 324,500 | |
BP PLC | 23,341,592 | 150,713 | |
Cameco Corp. (CAD denominated) | 2,344,074 | 93,004 | |
TC Energy Corp. (CAD denominated)1 | 2,192,970 | 75,416 | |
Canadian Natural Resources, Ltd. (CAD denominated) | 1,139,064 | 73,665 | |
Schlumberger NV | 1,154,652 | 67,316 | |
TechnipFMC PLC | 3,178,462 | 64,650 | |
Saudi Arabian Oil Co. | 5,043,044 | 47,066 | |
Woodside Energy Group, Ltd. | 1,430,825 | 33,336 | |
Aker BP ASA | 1,009,237 | 27,893 | |
Gaztransport & Technigaz SA | 209,328 | 25,716 | |
Tourmaline Oil Corp. | 352,710 | 17,749 | |
Gazprom PJSC3 | 33,392,872 | — 4 | |
Sovcomflot PAO3 | 16,933,870 | — 4 | |
LUKOIL Oil Co. PJSC3 | 476,875 | — 4 | |
1,001,024 | |||
Communication services 5.85% | |||
Publicis Groupe SA | 1,883,073 | 142,203 | |
Koninklijke KPN NV | 34,432,556 | 113,486 | |
Nippon Telegraph and Telephone Corp. | 76,005,100 | 89,769 | |
Tencent Holdings, Ltd. | 1,997,900 | 77,429 | |
Telefónica, SA, non-registered shares | 17,860,700 | 73,083 | |
América Móvil, SAB de CV, Class B (ADR) | 3,373,296 | 58,425 | |
SoftBank Corp.1 | 4,791,000 | 54,182 | |
MTN Group, Ltd. | 7,642,157 | 45,428 | |
BT Group PLC | 29,829,098 | 42,371 | |
Vodafone Group PLC | 33,745,113 | 31,511 | |
Singapore Telecommunications, Ltd. | 14,396,600 | 25,395 | |
KANZHUN, Ltd., Class A (ADR)2 | 1,502,765 | 22,797 | |
Deutsche Telekom AG | 812,207 | 17,056 | |
Universal Music Group NV | 612,722 | 15,934 | |
NetEase, Inc. | 646,400 | 12,977 | |
822,046 | |||
Materials 5.47% | |||
Vale SA, ordinary nominative shares | 6,294,947 | 84,633 | |
Vale SA (ADR), ordinary nominative shares | 4,927,283 | 66,026 | |
Glencore PLC | 18,884,787 | 107,998 | |
Linde PLC | 256,852 | 95,639 | |
Barrick Gold Corp. | 5,484,916 | 79,805 | |
Barrick Gold Corp. (CAD denominated) | 607,501 | 8,825 | |
Rio Tinto PLC | 672,955 | 42,273 | |
Nutrien, Ltd. (CAD denominated)1 | 642,591 | 39,684 | |
Air Liquide SA, non-registered shares | 218,390 | 36,802 | |
Asahi Kasei Corp. | 4,460,825 | 28,040 | |
Fortescue Metals Group, Ltd. | 1,906,740 | 25,571 | |
Holcim, Ltd. | 390,758 | 25,019 | |
UPM-Kymmene OYJ | 685,437 | 23,445 | |
Fresnillo PLC | 3,228,377 | 21,613 |
International Growth and Income Fund — Page 5 of 10
unaudited
Common stocks (continued) Materials (continued) | Shares | Value (000) | |
Shin-Etsu Chemical Co., Ltd.1 | 714,400 | $20,735 | |
Sika AG | 79,196 | 20,073 | |
Grupo México, SAB de CV, Series B | 4,000,000 | 18,933 | |
DSM-Firmenich AG | 150,586 | 12,721 | |
Givaudan SA | 3,292 | 10,776 | |
Alrosa PJSC3 | 3,661,021 | — 4 | |
768,611 | |||
Utilities 2.29% | |||
Engie SA | 8,175,449 | 125,357 | |
ENN Energy Holdings, Ltd. | 7,226,401 | 59,727 | |
Brookfield Infrastructure Partners, LP | 1,636,687 | 48,031 | |
Enel SpA | 5,676,053 | 34,830 | |
Veolia Environnement SA | 812,403 | 23,503 | |
Iberdrola, SA, non-registered shares | 1,991,767 | 22,239 | |
National Grid PLC | 629,483 | 7,514 | |
321,201 | |||
Real estate 1.76% | |||
CK Asset Holdings, Ltd. | 16,181,120 | 85,110 | |
Prologis Property Mexico, SA de CV, REIT | 12,300,000 | 42,312 | |
Mitsubishi Estate Co., Ltd. | 3,012,200 | 39,376 | |
Longfor Group Holdings, Ltd.1 | 16,470,101 | 29,111 | |
Link REIT | 5,817,125 | 28,356 | |
KE Holdings, Inc., Class A (ADR) | 1,472,368 | 22,851 | |
247,116 | |||
Total common stocks (cost: $11,211,286,000) | 13,203,236 | ||
Preferred securities 0.18% Materials 0.10% | |||
Gerdau SA, preferred nominative shares | 2,869,272 | 13,774 | |
Information technology 0.08% | |||
Samsung Electronics Co., Ltd., nonvoting preferred shares | 283,202 | 11,434 | |
Total preferred securities (cost: $15,662,000) | 25,208 | ||
Rights & warrants 0.03% Consumer discretionary 0.03% | |||
Midea Group Co., Ltd., Class A, warrants, expire 2/26/20245 | 562,000 | 4,272 | |
Total rights & warrants (cost: $4,221,000) | 4,272 | ||
Bonds, notes & other debt instruments 0.32% Bonds & notes of governments & government agencies outside the U.S. 0.32% | Principal amount (000) | ||
Brazil (Federative Republic of) 10.00% 1/1/2033 | BRL250,000 | 45,408 | |
Total bonds, notes & other debt instruments (cost: $43,622,000) | 45,408 |
International Growth and Income Fund — Page 6 of 10
unaudited
Short-term securities 5.91% Money market investments 5.28% | Shares | Value (000) | |
Capital Group Central Cash Fund 5.44%6,7 | 7,425,246 | $742,451 | |
Money market investments purchased with collateral from securities on loan 0.63% | |||
Capital Group Central Cash Fund 5.44%6,7,8 | 146,613 | 14,660 | |
Invesco Short-Term Investments Trust – Government & Agency Portfolio, Institutional Class 5.26%6,8 | 13,044,248 | 13,044 | |
BlackRock Liquidity Funds – FedFund, Institutional Shares 5.24%6,8 | 10,500,000 | 10,500 | |
Dreyfus Treasury Obligations Cash Management, Institutional Shares 5.23%6,8 | 10,500,000 | 10,500 | |
Morgan Stanley Institutional Liquidity Funds – Government Portfolio, Institutional Class 5.27%6,8 | 10,500,000 | 10,500 | |
Goldman Sachs Financial Square Government Fund, Institutional Shares 5.24%6,8 | 9,600,000 | 9,600 | |
State Street Institutional U.S. Government Money Market Fund, Premier Class 5.29%6,8 | 8,800,000 | 8,800 | |
Fidelity Investments Money Market Government Portfolio, Class I 5.23%6,8 | 6,100,000 | 6,100 | |
RBC Funds Trust – U.S. Government Money Market Fund, RBC Institutional Class 1 5.27%6,8 | 4,400,000 | 4,400 | |
88,104 | |||
Total short-term securities (cost: $830,523,000) | 830,555 | ||
Total investment securities 100.38% (cost: $12,105,314,000) | 14,108,679 | ||
Other assets less liabilities (0.38)% | (52,855 ) | ||
Net assets 100.00% | $14,055,824 |
Investments in affiliates7
Value of affiliates at 7/1/2023 (000) | Additions (000) | Reductions (000) | Net realized loss (000) | Net unrealized depreciation (000) | Value of affiliates at 9/30/2023 (000) | Dividend income (000) | |
Short-term securities 5.39% | |||||||
Money market investments 5.28% | |||||||
Capital Group Central Cash Fund 5.44%6 | $677,360 | $389,552 | $324,328 | $(1 ) | $(132 ) | $742,451 | $8,839 |
Money market investments purchased with collateral from securities on loan 0.11% | |||||||
Capital Group Central Cash Fund 5.44%6,8 | 39,941 | 25,281 9 | 14,660 | — 10 | |||
Total 5.39% | $(1 ) | $(132 ) | $757,111 | $8,839 |
1 | All or a portion of this security was on loan. The total value of all such securities was $204,125,000, which represented 1.45% of the net assets of the fund. |
2 | Security did not produce income during the last 12 months. |
3 | Value determined using significant unobservable inputs. |
4 | Amount less than one thousand. |
5 | Acquired in a transaction exempt from registration under Rule 144A or, for commercial paper, Section 4(a)(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $4,272,000, which represented .03% of the net assets of the fund. |
6 | Rate represents the seven-day yield at 9/30/2023. |
7 | Part of the same “group of investment companies“ as the fund as defined under the Investment Company Act of 1940, as amended. |
8 | Security purchased with cash collateral from securities on loan. |
9 | Represents net activity. |
10 | Dividend income is included with securities lending income and is not shown in this table. |
International Growth and Income Fund — Page 7 of 10
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 per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers.
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, including depositary receipts, 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 evaluated prices obtained from third-party 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 |
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 the fund’s investment adviser and approved by the 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, dealer or broker quotes, 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 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 8 of 10
unaudited
Processes and structure — The fund’s board of trustees has designated 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 “Committee”) to administer, implement and oversee the fair valuation process and to make fair value decisions. The Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation team. The Committee reviews changes in fair value measurements from period to period, pricing vendor information and market data, and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews facilitated by the investment adviser’s global risk management group. The Committee reports 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.
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, 2023 (dollars in thousands):
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Common stocks: | ||||
Financials | $160,710 | $2,255,363 | $— * | $2,416,073 |
Industrials | 310,185 | 1,571,158 | — | 1,881,343 |
Information technology | 99,881 | 1,361,134 | — | 1,461,015 |
Consumer discretionary | 116,750 | 1,333,805 | — | 1,450,555 |
Health care | 72,687 | 1,358,136 | — | 1,430,823 |
Consumer staples | 363,276 | 1,040,153 | — | 1,403,429 |
Energy | 391,800 | 609,224 | — * | 1,001,024 |
Communication services | 81,222 | 740,824 | — | 822,046 |
Materials | 393,545 | 375,066 | — * | 768,611 |
Utilities | 48,031 | 273,170 | — | 321,201 |
Real estate | 65,163 | 181,953 | — | 247,116 |
Preferred securities | 13,774 | 11,434 | — | 25,208 |
Rights & warrants | — | 4,272 | — | 4,272 |
Bonds, notes & other debt instruments | — | 45,408 | — | 45,408 |
Short-term securities | 830,555 | — | — | 830,555 |
Total | $2,947,579 | $11,161,100 | $— * | $14,108,679 |
*
Amount less than one thousand.
Key to abbreviations |
ADR = American Depositary Receipts |
BRL = Brazilian reais |
CAD = Canadian dollars |
REIT = Real Estate Investment Trust |
International Growth and Income Fund — Page 9 of 10
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.
© 2023 Capital Group. All rights reserved.
MFGEFP1-034-1123O-S96423
International Growth and Income Fund — Page 10 of 10