Capital Group U.S. Equity Fund
Investment portfolio
July 31, 2022
unaudited
Common stocks 96.12% Information technology 20.95% | Shares | Value (000) | |
Microsoft Corp. | 57,360 | $16,103 | |
Visa, Inc., Class A | 53,335 | 11,313 | |
Apple, Inc. | 45,798 | 7,443 | |
Broadcom, Inc. | 9,881 | 5,291 | |
ASML Holding NV (New York registered) (ADR) | 8,124 | 4,667 | |
KLA Corp. | 8,920 | 3,421 | |
Fidelity National Information Services, Inc. | 22,501 | 2,299 | |
Jack Henry & Associates, Inc. | 10,922 | 2,269 | |
Lam Research Corp. | 3,170 | 1,587 | |
Texas Instruments, Inc. | 8,562 | 1,532 | |
GoDaddy, Inc., Class A1 | 19,188 | 1,423 | |
Adobe, Inc.1 | 3,348 | 1,373 | |
Analog Devices, Inc. | 7,202 | 1,238 | |
ServiceNow, Inc.1 | 2,613 | 1,167 | |
Mastercard, Inc., Class A | 2,478 | 877 | |
SAP SE (ADR) | 8,100 | 755 | |
Taiwan Semiconductor Manufacturing Company, Ltd. (ADR) | 7,500 | 664 | |
Micron Technology, Inc. | 7,553 | 467 | |
63,889 | |||
Health care 16.07% | |||
UnitedHealth Group, Inc. | 19,052 | 10,333 | |
Seagen, Inc.1 | 33,026 | 5,944 | |
Danaher Corp. | 15,573 | 4,539 | |
Humana, Inc. | 7,763 | 3,742 | |
Elevance Health, Inc. | 7,375 | 3,519 | |
Abbott Laboratories | 27,515 | 2,995 | |
Bristol-Myers Squibb Company | 40,251 | 2,970 | |
AstraZeneca PLC (ADR) | 43,650 | 2,891 | |
Edwards Lifesciences Corp.1 | 25,350 | 2,549 | |
Eli Lilly and Company | 6,553 | 2,160 | |
Novo Nordisk A/S, Class B (ADR) | 17,100 | 1,985 | |
Centene Corp.1 | 11,600 | 1,078 | |
Biohaven Pharmaceutical Holding Co., Ltd.1 | 6,200 | 905 | |
Horizon Therapeutics PLC1 | 9,740 | 808 | |
Roche Holding AG (ADR) | 16,600 | 688 | |
Pfizer, Inc. | 13,547 | 684 | |
Regeneron Pharmaceuticals, Inc.1 | 1,102 | 641 | |
Oak Street Health, Inc.1 | 20,453 | 592 | |
49,023 | |||
Financials 14.56% | |||
Marsh & McLennan Companies, Inc. | 59,290 | 9,721 | |
Chubb, Ltd. | 31,780 | 5,995 | |
Aon PLC, Class A | 16,148 | 4,700 | |
JPMorgan Chase & Co. | 39,430 | 4,549 |
Capital Group U.S. Equity Fund — Page 1 of 6
unaudited
Common stocks (continued) Financials (continued) | Shares | Value (000) | |
Moody’s Corp. | 9,375 | $2,908 | |
CME Group, Inc., Class A | 13,875 | 2,768 | |
State Street Corp. | 31,687 | 2,251 | |
MSCI, Inc. | 4,200 | 2,022 | |
Arthur J. Gallagher & Co. | 10,300 | 1,844 | |
Intercontinental Exchange, Inc. | 11,287 | 1,151 | |
First Republic Bank | 7,000 | 1,139 | |
Discover Financial Services | 11,100 | 1,121 | |
Wells Fargo & Company | 24,868 | 1,091 | |
Nasdaq, Inc. | 5,550 | 1,004 | |
Truist Financial Corp. | 18,217 | 919 | |
Western Alliance Bancorporation | 8,621 | 658 | |
SVB Financial Group1 | 1,398 | 564 | |
44,405 | |||
Industrials 11.01% | |||
Northrop Grumman Corp. | 12,170 | 5,828 | |
Waste Connections, Inc. | 41,191 | 5,494 | |
CSX Corp. | 74,478 | 2,408 | |
Honeywell International, Inc. | 11,655 | 2,243 | |
TransDigm Group, Inc.1 | 3,385 | 2,107 | |
Norfolk Southern Corp. | 8,296 | 2,084 | |
Raytheon Technologies Corp. | 20,217 | 1,884 | |
AMETEK, Inc. | 14,500 | 1,791 | |
Carrier Global Corp. | 42,831 | 1,736 | |
ITT, Inc. | 22,129 | 1,660 | |
United Airlines Holdings, Inc.1 | 41,847 | 1,538 | |
Airbus Group SE (ADR) | 50,200 | 1,349 | |
Deere & Company | 3,200 | 1,098 | |
Advanced Drainage Systems, Inc. | 7,175 | 851 | |
HEICO Corp., Class A | 3,000 | 383 | |
HEICO Corp. | 2,400 | 378 | |
Trinity Industries, Inc. | 28,566 | 741 | |
33,573 | |||
Consumer discretionary 8.49% | |||
Amazon.com, Inc.1 | 51,160 | 6,904 | |
Chipotle Mexican Grill, Inc.1 | 3,211 | 5,023 | |
Dollar General Corp. | 17,919 | 4,452 | |
NIKE, Inc., Class B | 25,739 | 2,958 | |
YUM! Brands, Inc. | 16,476 | 2,019 | |
Hilton Worldwide Holdings, Inc. | 12,177 | 1,559 | |
Lear Corp. | 6,984 | 1,055 | |
Aramark | 25,351 | 847 | |
Darden Restaurants, Inc. | 4,900 | 610 | |
Norwegian Cruise Line Holdings, Ltd.1 | 39,030 | 474 | |
25,901 | |||
Communication services 5.96% | |||
Alphabet, Inc., Class C1 | 47,540 | 5,545 | |
Comcast Corp., Class A | 92,140 | 3,457 | |
Charter Communications, Inc., Class A1 | 7,108 | 3,071 | |
Meta Platforms, Inc., Class A1 | 14,487 | 2,305 |
Capital Group U.S. Equity Fund — Page 2 of 6
unaudited
Common stocks (continued) Communication services (continued) | Shares | Value (000) | |
Cable One, Inc. | 1,626 | $2,239 | |
Electronic Arts, Inc. | 11,887 | 1,560 | |
18,177 | |||
Consumer staples 5.83% | |||
Philip Morris International, Inc. | 38,401 | 3,731 | |
Anheuser-Busch InBev SA/NV (ADR) | 35,100 | 1,879 | |
Estée Lauder Companies, Inc., Class A | 6,687 | 1,826 | |
Mondelez International, Inc. | 28,300 | 1,812 | |
Costco Wholesale Corp. | 2,710 | 1,467 | |
British American Tobacco PLC (ADR) | 36,219 | 1,419 | |
General Mills, Inc. | 18,816 | 1,407 | |
PepsiCo, Inc. | 6,582 | 1,151 | |
Nestlé SA (ADR) | 9,255 | 1,137 | |
Procter & Gamble Company | 7,880 | 1,095 | |
Hormel Foods Corp. | 17,200 | 849 | |
17,773 | |||
Energy 4.49% | |||
Chevron Corp. | 33,198 | 5,437 | |
ConocoPhillips | 41,649 | 4,058 | |
EOG Resources, Inc. | 31,098 | 3,459 | |
TC Energy Corp. | 13,700 | 730 | |
13,684 | |||
Utilities 3.86% | |||
Sempra Energy | 13,320 | 2,209 | |
Constellation Energy Corp. | 29,853 | 1,973 | |
Exelon Corp. | 39,883 | 1,854 | |
CenterPoint Energy, Inc. | 45,667 | 1,447 | |
NextEra Energy, Inc. | 14,276 | 1,206 | |
Edison International | 16,278 | 1,103 | |
Entergy Corp. | 8,561 | 986 | |
AES Corp. | 44,000 | 978 | |
11,756 | |||
Real estate 2.50% | |||
Equinix, Inc. REIT | 5,567 | 3,918 | |
Crown Castle International Corp. REIT | 20,579 | 3,718 | |
7,636 | |||
Materials 2.40% | |||
Linde PLC | 16,607 | 5,015 | |
Sherwin-Williams Company | 6,960 | 1,684 | |
Barrick Gold Corp. | 40,000 | 630 | |
7,329 | |||
Total common stocks (cost: $150,835,000) | 293,146 |
Capital Group U.S. Equity Fund — Page 3 of 6
unaudited
Short-term securities 3.81% Money market investments 3.81% | Shares | Value (000) | |
Capital Group Central Cash Fund 1.71%2,3 | 116,206 | $11,616 | |
Total short-term securities (cost: $11,619,000) | 11,616 | ||
Total investment securities 99.93% (cost: $162,454,000) | 304,762 | ||
Other assets less liabilities 0.07% | 223 | ||
Net assets 100.00% | $304,985 |
Investments in affiliates3
Value of affiliates at 11/1/2021 (000) | Additions (000) | Reductions (000) | Net realized loss (000) | Net unrealized depreciation (000) | Value of affiliates at 7/31/2022 (000) | Dividend income (000) | ||||
Short-term securities 3.81% | ||||||||||
Money market investments 3.81% | ||||||||||
Capital Group Central Cash Fund 1.71%2 | $5,813 | $41,916 | $36,109 | $(1) | $(3) | $11,616 | $40 | |||
Money market investments purchased with collateral from securities on loan 0.00% | ||||||||||
Capital Group Central Cash Fund 1.71%2,4 | 598 | 5985 | — | —6 | ||||||
Total 3.81% | $(1) | $(3) | $11,616 | $40 |
1 | Security did not produce income during the last 12 months. |
2 | Rate represents the seven-day yield at 7/31/2022. |
3 | Part of the same “group of investment companies“ as the fund as defined under the Investment Company Act of 1940, as amended. |
4 | Affiliated issuer during the reporting period but no longer held at 7/31/2022. |
5 | Represents net activity. |
6 | Dividend income is included with securities lending income and is not shown in this table. |
Valuation disclosures
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers.
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 following inputs: benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads, interest rate volatilities, 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.
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.
Capital Group U.S. Equity Fund — Page 4 of 6
unaudited
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds“), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews facilitated by the investment adviser’s global risk management group.
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. At July 31, 2022, all of the fund’s investments were classified as Level 1.
Key to abbreviations |
ADR = American Depositary Receipts |
REIT = Real Estate Investment Trust |
Capital Group U.S. Equity Fund — Page 5 of 6
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 the investment objectives, risks, charges and expenses of the Capital Private Client Services Funds. This and other important information is contained in the prospectus, which can be obtained from your investment counselor and should be read carefully before investing.
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.
© 2022 Capital Group. All rights reserved.
MFGEFP3-124-0922O-S89837 | Capital Group U.S. Equity Fund — Page 6 of 6 |