Fundamental Investors®
Investment portfolio
March 31, 2020
unaudited
| Common stocks 93.23% Information technology 22.91% | Shares | Value (000) |
| Microsoft Corp. | 30,103,781 | $4,747,667 |
| Broadcom Inc. | 10,750,227 | 2,548,879 |
| ASML Holding NV1 | 4,683,824 | 1,244,776 |
| ASML Holding NV (New York registered) | 1,042,260 | 272,697 |
| Taiwan Semiconductor Manufacturing Co., Ltd.1 | 144,201,000 | 1,287,140 |
| Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 2,547,515 | 121,746 |
| Intel Corp. | 20,530,706 | 1,111,122 |
| Advanced Micro Devices, Inc.2 | 16,187,238 | 736,196 |
| Samsung Electronics Co., Ltd.1 | 16,805,000 | 653,111 |
| Texas Instruments Inc. | 4,699,333 | 469,604 |
| Mastercard Inc., Class A | 1,825,000 | 440,847 |
| NortonLifeLock Inc. | 20,374,083 | 381,199 |
| Visa Inc., Class A | 2,268,190 | 365,451 |
| QUALCOMM Inc. | 5,251,557 | 355,268 |
| Applied Materials, Inc. | 7,264,015 | 332,837 |
| Autodesk, Inc.2 | 1,949,819 | 304,367 |
| ServiceNow, Inc.2 | 1,018,826 | 291,975 |
| SAP SE1 | 2,499,523 | 287,078 |
| TE Connectivity Ltd. | 4,126,000 | 259,855 |
| STMicroelectronics NV1 | 11,920,000 | 259,423 |
| Arista Networks, Inc.2 | 1,224,400 | 248,002 |
| SK hynix, Inc.1 | 3,370,000 | 227,974 |
| Apple Inc. | 868,783 | 220,923 |
| KLA Corp. | 1,508,400 | 216,817 |
| HubSpot, Inc.2 | 1,562,162 | 208,064 |
| RingCentral, Inc., Class A2 | 733,560 | 155,449 |
| International Business Machines Corp. | 1,300,000 | 144,209 |
| Adobe Inc.2 | 381,053 | 121,266 |
| PayPal Holdings, Inc.2 | 1,199,771 | 114,866 |
| Keyence Corp.1 | 340,000 | 109,723 |
| Dell Technologies Inc., Class C2 | 2,750,000 | 108,763 |
| Square, Inc., Class A2 | 2,074,738 | 108,675 |
| Smartsheet Inc., Class A2 | 2,541,598 | 105,502 |
| Tokyo Electron Ltd.1 | 399,900 | 75,197 |
| EPAM Systems, Inc.2 | 400,932 | 74,437 |
| DocuSign, Inc.2 | 800,000 | 73,920 |
| NetApp, Inc. | 1,687,941 | 70,370 |
| Motorola Solutions, Inc. | 500,000 | 66,460 |
| Edenred SA1 | 1,550,934 | 64,912 |
| Ceridian HCM Holding Inc.2 | 1,276,000 | 63,889 |
| LiveRamp Holdings, Inc.2 | 1,878,542 | 61,842 |
| Global Payments Inc. | 376,988 | 54,373 |
| ON Semiconductor Corp.2 | 3,806,568 | 47,354 |
| Lam Research Corp. | 195,663 | 46,959 |
| Micron Technology, Inc.2 | 682,400 | 28,702 |
Fundamental Investors — Page 1 of 9
unaudited
| Common stocks (continued) Information technology (continued) | Shares | Value (000) |
| MongoDB, Inc., Class A2 | 114,603 | $15,648 |
| Micro Focus International PLC1 | 1,442,067 | 7,133 |
| 19,312,667 | ||
| Health care 14.63% | ||
| UnitedHealth Group Inc. | 10,416,818 | 2,597,746 |
| Regeneron Pharmaceuticals, Inc.2 | 2,398,397 | 1,171,113 |
| Centene Corp.2 | 12,110,859 | 719,506 |
| Pfizer Inc. | 20,536,086 | 670,298 |
| Cigna Corp. | 3,706,265 | 656,676 |
| Vertex Pharmaceuticals Inc.2 | 2,647,896 | 630,067 |
| Thermo Fisher Scientific Inc. | 2,114,288 | 599,612 |
| Gilead Sciences, Inc. | 7,042,100 | 526,467 |
| Humana Inc. | 1,511,712 | 474,708 |
| Boston Scientific Corp.2 | 13,037,700 | 425,420 |
| Bristol-Myers Squibb Co. | 5,800,000 | 323,292 |
| Anthem, Inc. | 1,397,967 | 317,394 |
| AstraZeneca PLC1 | 3,464,684 | 309,494 |
| Molina Healthcare, Inc.2 | 2,180,689 | 304,664 |
| Eli Lilly and Co. | 1,947,229 | 270,120 |
| Daiichi Sankyo Co., Ltd.1 | 3,743,300 | 257,545 |
| CVS Health Corp. | 4,284,322 | 254,189 |
| Seattle Genetics, Inc.2 | 2,090,201 | 241,167 |
| Biogen Inc.2 | 700,000 | 221,466 |
| ResMed Inc. | 1,135,000 | 167,174 |
| Illumina, Inc.2 | 544,896 | 148,822 |
| Abbott Laboratories | 1,657,084 | 130,761 |
| Merck & Co., Inc. | 1,526,309 | 117,434 |
| Allakos Inc.2 | 2,294,373 | 102,077 |
| Ultragenyx Pharmaceutical Inc.2 | 2,257,370 | 100,295 |
| Neurocrine Biosciences, Inc.2 | 1,009,208 | 87,347 |
| Danaher Corp. | 623,328 | 86,275 |
| Edwards Lifesciences Corp.2 | 413,330 | 77,962 |
| Bluebird Bio, Inc.2 | 1,172,470 | 53,887 |
| Incyte Corp.2 | 672,772 | 49,267 |
| Cortexyme, Inc.1,2,3 | 691,877 | 30,294 |
| Cortexyme, Inc.2 | 389,795 | 17,779 |
| Notre Dame Intermédica Participações SA | 4,645,000 | 40,192 |
| AbbVie Inc. | 444,930 | 33,899 |
| Novo Nordisk A/S, Class B1 | 461,468 | 27,836 |
| GlaxoSmithKline PLC1 | 1,421,329 | 26,660 |
| Teva Pharmaceutical Industries Ltd. (ADR)2 | 2,066,300 | 18,555 |
| Sage Therapeutics, Inc.2 | 570,874 | 16,396 |
| BioMarin Pharmaceutical Inc.2 | 176,266 | 14,895 |
| Bausch Health Cos. Inc.2 | 750,000 | 11,625 |
| 12,330,376 | ||
| Financials 12.15% | ||
| Berkshire Hathaway Inc., Class A2 | 7,450 | 2,026,400 |
| Berkshire Hathaway Inc., Class B2 | 1,427,815 | 261,047 |
| JPMorgan Chase & Co. | 21,103,263 | 1,899,927 |
| CME Group Inc., Class A | 3,122,189 | 539,858 |
| The Blackstone Group Inc., Class A | 11,043,223 | 503,240 |
| Citigroup Inc. | 8,398,399 | 353,741 |
| Capital One Financial Corp. | 6,455,000 | 325,461 |
Fundamental Investors — Page 2 of 9
unaudited
| Common stocks (continued) Financials (continued) | Shares | Value (000) |
| Intercontinental Exchange, Inc. | 4,003,737 | $323,302 |
| Truist Financial Corp. | 9,598,050 | 296,004 |
| Wells Fargo & Co. | 9,842,886 | 282,491 |
| Goldman Sachs Group, Inc. | 1,769,663 | 273,572 |
| Legal & General Group PLC1 | 109,763,993 | 262,594 |
| Discover Financial Services | 7,338,604 | 261,768 |
| BlackRock, Inc. | 542,997 | 238,902 |
| PNC Financial Services Group, Inc. | 2,274,872 | 217,751 |
| Apollo Global Management, Inc., Class A | 6,372,031 | 213,463 |
| Aon PLC, Class A | 1,257,022 | 207,459 |
| Chubb Ltd. | 1,670,681 | 186,598 |
| HDFC Bank Ltd.1 | 14,852,000 | 167,109 |
| Zurich Insurance Group AG1 | 402,500 | 142,871 |
| Sberbank of Russia PJSC (ADR)1 | 13,450,041 | 127,441 |
| First Republic Bank | 1,525,696 | 125,534 |
| Arch Capital Group Ltd.2 | 4,350,946 | 123,828 |
| Barclays PLC1 | 103,429,346 | 120,176 |
| Moody’s Corp. | 389,926 | 82,469 |
| Marsh & McLennan Cos., Inc. | 764,960 | 66,138 |
| AIA Group Ltd.1 | 6,713,000 | 60,392 |
| Synchrony Financial | 3,600,000 | 57,924 |
| Kotak Mahindra Bank Ltd.1 | 3,315,000 | 56,101 |
| S&P Global Inc. | 227,000 | 55,626 |
| Ares Management Corp., Class A | 1,721,922 | 53,259 |
| Bank of Ireland Group PLC1 | 23,127,285 | 43,707 |
| Brookfield Asset Management Inc., Class A | 850,000 | 37,613 |
| Toronto-Dominion Bank (CAD denominated) | 750,000 | 31,886 |
| Hong Kong Exchanges and Clearing Ltd.1 | 1,059,900 | 31,830 |
| Willis Towers Watson PLC | 181,000 | 30,743 |
| CIT Group Inc. | 1,719,078 | 29,671 |
| SVB Financial Group2 | 179,966 | 27,189 |
| Ping An Insurance (Group) Co. of China, Ltd., Class H1 | 2,289,000 | 22,391 |
| CenterState Bank Corp. | 1,235,783 | 21,293 |
| Bank of Nova Scotia | 500,000 | 20,419 |
| Bank of New York Mellon Corp. | 448,215 | 15,096 |
| Bank of America Corp. | 701,400 | 14,891 |
| 10,239,175 | ||
| Communication services 10.24% | ||
| Facebook, Inc., Class A2 | 13,142,516 | 2,192,172 |
| Alphabet Inc., Class C2 | 1,094,936 | 1,273,203 |
| Alphabet Inc., Class A2 | 335,168 | 389,448 |
| Netflix, Inc.2 | 3,415,033 | 1,282,345 |
| Comcast Corp., Class A | 33,180,628 | 1,140,750 |
| Charter Communications, Inc., Class A2 | 2,090,382 | 912,055 |
| Activision Blizzard, Inc.2 | 10,878,063 | 647,027 |
| Walt Disney Co. | 3,300,000 | 318,780 |
| Verizon Communications Inc. | 2,500,000 | 134,325 |
| T-Mobile US, Inc.2 | 1,360,331 | 114,132 |
| HUYA, Inc. (ADR)2 | 3,030,000 | 51,358 |
| SoftBank Group Corp.1 | 1,299,800 | 45,515 |
| JOYY Inc., Class A (ADR)2 | 845,000 | 45,005 |
| Pinterest, Inc., Class A2 | 2,669,891 | 41,223 |
Fundamental Investors — Page 3 of 9
unaudited
| Common stocks (continued) Communication services (continued) | Shares | Value (000) |
| Adevinta ASA1,2 | 2,876,294 | $25,728 |
| GCI Liberty, Inc., Class A2 | 311,641 | 17,754 |
| 8,630,820 | ||
| Industrials 8.95% | ||
| Boeing Co. | 7,303,297 | 1,089,214 |
| TransDigm Group Inc. | 2,069,130 | 662,515 |
| CSX Corp. | 9,046,299 | 518,353 |
| Airbus SE, non-registered shares1 | 7,668,935 | 497,585 |
| Honeywell International Inc. | 3,589,678 | 480,263 |
| Union Pacific Corp. | 3,353,347 | 472,956 |
| Parker-Hannifin Corp. | 3,514,090 | 455,883 |
| Deere & Co. | 3,222,619 | 445,237 |
| Safran SA1 | 4,711,579 | 414,129 |
| Northrop Grumman Corp. | 1,013,007 | 306,485 |
| Emerson Electric Co. | 4,999,047 | 238,205 |
| Norfolk Southern Corp. | 1,398,903 | 204,240 |
| MTU Aero Engines AG1 | 1,348,410 | 197,546 |
| Lockheed Martin Corp. | 581,904 | 197,236 |
| Rockwell Automation | 1,300,000 | 196,183 |
| Armstrong World Industries, Inc. | 2,187,002 | 173,692 |
| Westinghouse Air Brake Technologies Corp. | 2,842,520 | 136,810 |
| Experian PLC1 | 4,209,197 | 117,176 |
| Nidec Corp.1 | 1,901,600 | 98,638 |
| FedEx Corp. | 759,355 | 92,079 |
| Waste Management, Inc. | 899,500 | 83,258 |
| Grafton Group PLC, units1 | 11,326,372 | 74,458 |
| Waste Connections, Inc. | 749,857 | 58,114 |
| United Technologies Corp. | 572,891 | 54,041 |
| Johnson Controls International PLC | 1,742,205 | 46,970 |
| RELX PLC1 | 1,969,624 | 42,223 |
| IMCD NV1 | 500,000 | 35,559 |
| Lennox International Inc. | 190,899 | 34,703 |
| Illinois Tool Works Inc. | 200,000 | 28,424 |
| Lifco AB, Class B1 | 725,000 | 26,651 |
| Caterpillar Inc. | 171,300 | 19,878 |
| United Rentals, Inc.2 | 190,000 | 19,551 |
| ASSA ABLOY AB, Class B1 | 1,000,000 | 18,905 |
| DSV Panalpina A/S1 | 126,495 | 11,518 |
| 7,548,678 | ||
| Consumer discretionary 8.24% | ||
| Amazon.com, Inc.2 | 1,385,315 | 2,700,976 |
| Target Corp. | 3,799,295 | 353,221 |
| Domino’s Pizza, Inc. | 1,084,937 | 351,596 |
| Prosus NV1,2 | 4,994,000 | 346,027 |
| Dollar General Corp. | 2,157,200 | 325,759 |
| Marriott International, Inc., Class A | 3,925,457 | 293,663 |
| Burlington Stores, Inc.2 | 1,735,000 | 274,928 |
| NIKE, Inc., Class B | 3,257,857 | 269,555 |
| Booking Holdings Inc.2 | 193,447 | 260,248 |
| Industria de Diseño Textil, SA1 | 9,400,000 | 244,041 |
| Restaurant Brands International Inc. | 6,035,000 | 241,581 |
| LVMH Moët Hennessy-Louis Vuitton SE1 | 613,105 | 227,582 |
| Home Depot, Inc. | 1,165,000 | 217,517 |
Fundamental Investors — Page 4 of 9
unaudited
| Common stocks (continued) Consumer discretionary (continued) | Shares | Value (000) |
| Galaxy Entertainment Group Ltd.1 | 23,995,000 | $127,099 |
| Wynn Resorts, Ltd. | 1,979,623 | 119,154 |
| TJX Cos., Inc. | 2,000,000 | 95,620 |
| Stars Group Inc.2 | 4,646,200 | 94,875 |
| D.R. Horton, Inc. | 2,008,601 | 68,292 |
| Evolution Gaming Group AB1 | 2,000,000 | 68,095 |
| Aramark | 3,346,000 | 66,820 |
| Las Vegas Sands Corp. | 1,126,838 | 47,857 |
| Flutter Entertainment PLC (EUR denominated)1 | 429,400 | 38,927 |
| Darden Restaurants, Inc. | 590,800 | 32,175 |
| Floor & Decor Holdings, Inc., Class A2 | 800,000 | 25,672 |
| Samsonite International SA1 | 26,458,500 | 25,018 |
| Canada Goose Holdings Inc., subordinate voting shares2 | 898,700 | 17,875 |
| Royal Caribbean Cruises Ltd. | 438,400 | 14,103 |
| 6,948,276 | ||
| Consumer staples 7.38% | ||
| Philip Morris International Inc. | 16,816,563 | 1,226,936 |
| British American Tobacco PLC1 | 34,862,262 | 1,190,489 |
| British American Tobacco PLC (ADR) | 286,000 | 9,778 |
| Altria Group, Inc. | 27,362,571 | 1,058,111 |
| Keurig Dr Pepper Inc. | 18,115,707 | 439,668 |
| Walmart Inc. | 3,000,000 | 340,860 |
| Nestlé SA1 | 3,284,374 | 338,515 |
| Conagra Brands, Inc. | 11,484,805 | 336,964 |
| Mondelez International, Inc. | 4,599,218 | 230,329 |
| Procter & Gamble Co. | 1,800,000 | 198,000 |
| Coca-Cola Co. | 4,099,333 | 181,396 |
| Costco Wholesale Corp. | 580,866 | 165,622 |
| Estée Lauder Cos. Inc., Class A | 999,828 | 159,313 |
| Anheuser-Busch InBev SA/NV1 | 2,471,195 | 109,742 |
| Unilever PLC1 | 1,800,000 | 90,870 |
| Coca-Cola European Partners PLC | 1,606,093 | 60,277 |
| Church & Dwight Co., Inc. | 649,876 | 41,709 |
| Reckitt Benckiser Group PLC (ADR) | 1,861,045 | 28,669 |
| ITC Ltd.1 | 7,077,011 | 15,872 |
| 6,223,120 | ||
| Materials 3.00% | ||
| Linde PLC | 1,794,658 | 310,476 |
| Franco-Nevada Corp. (CAD denominated) | 2,721,871 | 271,955 |
| Franco-Nevada Corp. | 183,000 | 18,212 |
| Barrick Gold Corp. | 11,634,782 | 213,149 |
| LyondellBasell Industries NV | 4,120,814 | 204,516 |
| Royal Gold, Inc. | 2,283,565 | 200,292 |
| Corteva, Inc. | 8,500,000 | 199,750 |
| LafargeHolcim Ltd.1 | 4,291,273 | 156,875 |
| Dow Inc. | 5,053,675 | 147,769 |
| DuPont de Nemours Inc. | 4,125,392 | 140,676 |
| Sherwin-Williams Co. | 275,000 | 126,368 |
| Koninklijke DSM NV1 | 974,814 | 110,772 |
| Rio Tinto PLC1 | 2,000,000 | 91,806 |
| Packaging Corp. of America | 957,516 | 83,141 |
| Norsk Hydro ASA1 | 34,980,669 | 76,002 |
| First Quantum Minerals Ltd. | 13,814,374 | 70,579 |
Fundamental Investors — Page 5 of 9
unaudited
| Common stocks (continued) Materials (continued) | Shares | Value (000) |
| Vale SA, ordinary nominative | 5,919,000 | $49,233 |
| CCL Industries Inc., Class B, nonvoting shares | 1,095,000 | 33,294 |
| Allegheny Technologies Inc.2 | 1,301,452 | 11,062 |
| Wheaton Precious Metals Corp. | 376,700 | 10,371 |
| 2,526,298 | ||
| Energy 2.54% | ||
| Enbridge Inc. (CAD denominated) | 15,029,526 | 437,654 |
| Chevron Corp. | 4,540,708 | 329,020 |
| BP PLC1 | 58,000,000 | 246,742 |
| Baker Hughes Co., Class A | 17,796,702 | 186,865 |
| Royal Dutch Shell PLC, Class B1 | 10,870,647 | 182,267 |
| Royal Dutch Shell PLC, Class A (GBP denominated)1 | 165,212 | 2,891 |
| Suncor Energy Inc. | 10,491,740 | 167,444 |
| Hess Corp. | 3,000,000 | 99,900 |
| EOG Resources, Inc. | 2,223,946 | 79,884 |
| Occidental Petroleum Corp. | 6,710,000 | 77,702 |
| Keyera Corp. | 6,935,678 | 64,463 |
| ConocoPhillips | 1,399,433 | 43,103 |
| Murphy Oil Corp. | 6,780,607 | 41,565 |
| Cabot Oil & Gas Corp. | 2,344,000 | 40,293 |
| Pioneer Natural Resources Co. | 499,905 | 35,068 |
| Concho Resources Inc. | 678,274 | 29,064 |
| Canadian Natural Resources, Ltd. (CAD denominated) | 1,842,600 | 25,204 |
| Noble Energy, Inc. | 3,009,826 | 18,179 |
| Equitrans Midstream Corp. | 3,241,882 | 16,307 |
| Schlumberger Ltd. | 1,003,309 | 13,535 |
| Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR) | 1,499,749 | 8,249 |
| 2,145,399 | ||
| Real estate 1.90% | ||
| Simon Property Group, Inc. REIT | 8,282,470 | 454,376 |
| Crown Castle International Corp. REIT | 2,553,549 | 368,733 |
| Equinix, Inc. REIT | 465,911 | 290,994 |
| American Tower Corp. REIT | 1,173,152 | 255,454 |
| AGNC Investment Corp. REIT | 11,481,843 | 121,478 |
| Digital Realty Trust, Inc. REIT | 583,027 | 80,988 |
| Public Storage REIT | 84,600 | 16,802 |
| Brookfield Property Partners LP | 1,800,000 | 14,508 |
| 1,603,333 | ||
| Utilities 1.29% | ||
| Enel SpA1 | 56,826,957 | 395,540 |
| AES Corp. | 12,365,148 | 168,166 |
| DTE Energy Co. | 1,579,200 | 149,977 |
| Ørsted AS1 | 1,194,487 | 117,304 |
| Sempra Energy | 880,347 | 99,470 |
| Exelon Corp. | 2,167,933 | 79,802 |
| Edison International | 1,223,567 | 67,039 |
| Brookfield Infrastructure Partners LP | 317,100 | 11,514 |
| Brookfield Infrastructure Corp., Class A2 | 35,233 | 1,234 |
| 1,090,046 | ||
| Total common stocks (cost: $64,622,809,000) | 78,598,188 |
Fundamental Investors — Page 6 of 9
unaudited
| Preferred securities 0.11% Information technology 0.08% | Shares | Value (000) |
| Samsung Electronics Co., Ltd., nonvoting preferred shares1 | 2,100,000 | $68,549 |
| Energy 0.03% | ||
| Petróleo Brasileiro SA (Petrobras), preferred nominative | 8,686,000 | 23,386 |
| Total preferred securities (cost: $121,045,000) | 91,935 | |
| Convertible stocks 0.16% Information technology 0.16% | ||
| Broadcom Inc., Series A, cumulative convertible preferred shares, 8.00% 2022 | 141,873 | 132,560 |
| Total convertible stocks (cost: $142,408,000) | 132,560 | |
| Short-term securities 6.00% Money market investments 6.00% | ||
| Capital Group Central Cash Fund 1.00%4 | 50,602,817 | 5,062,306 |
| Total short-term securities (cost: $5,060,884,000) | 5,062,306 | |
| Total investment securities99.50% (cost: $69,947,146,000) | 83,884,989 | |
| Other assets less liabilities 0.50% | 424,662 | |
| Net assets100.00% | $84,309,651 |
| 1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $11,779,564,000, which represented 13.97% of the net assets of the fund. This amount includes $11,749,270,000 related 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 | Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on this holding appear below. |
| 4 | Rate represents the seven-day yield at 3/31/2020. |
| Private placement security | Acquisition date | Cost (000) | Value (000) | Percent of net assets |
| Cortexyme, Inc. | 2/6/2020 | $34,594 | $30,294 | .04% |
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. Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fundamental Investors — Page 7 of 9
unaudited
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; 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.
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.
Fundamental Investors — Page 8 of 9
unaudited
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of March 31, 2020 (dollars in thousands):
| Investment securities | ||||
| Level 1 | Level 2 | Level 3 | Total | |
| Assets: | ||||
| Common stocks: | ||||
| Information technology | $15,096,200 | $4,216,467 | $— | $19,312,667 |
| Health care | 11,678,547 | 651,829 | — | 12,330,376 |
| Financials | 9,204,563 | 1,034,612 | — | 10,239,175 |
| Communication services | 8,559,577 | 71,243 | — | 8,630,820 |
| Industrials | 6,014,290 | 1,534,388 | — | 7,548,678 |
| Consumer discretionary | 5,871,487 | 1,076,789 | — | 6,948,276 |
| Consumer staples | 4,477,632 | 1,745,488 | — | 6,223,120 |
| Materials | 2,090,843 | 435,455 | — | 2,526,298 |
| Energy | 1,713,499 | 431,900 | — | 2,145,399 |
| Real estate | 1,603,333 | — | — | 1,603,333 |
| Utilities | 577,202 | 512,844 | — | 1,090,046 |
| Preferred securities | 23,386 | 68,549 | — | 91,935 |
| Convertible stocks | 132,560 | — | — | 132,560 |
| Short-term securities | 5,062,306 | — | — | 5,062,306 |
| Total | $72,105,425 | $11,779,564 | $— | $83,884,989 |
| Key to abbreviations |
| ADR = American Depositary Receipts |
| CAD = Canadian dollars |
| EUR = Euros |
| GBP = British pounds |
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.
| MFGEFPX-010-0520O-S73159 | Fundamental Investors — Page 9 of 9 |