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Fundamental Investors®
Investment portfolio
September 30, 2020
unaudited
Common stocks 96.29% Information technology 24.54% | Shares | Value (000) |
Microsoft Corp. | 24,345,485 | $5,120,587 |
Broadcom Inc. | 10,893,360 | 3,968,669 |
ASML Holding NV1 | 3,698,664 | 1,363,825 |
ASML Holding NV (New York registered) (ADR) | 726,375 | 268,229 |
Taiwan Semiconductor Manufacturing Company, Ltd.1 | 77,246,000 | 1,160,125 |
Taiwan Semiconductor Manufacturing Company, Ltd. (ADR) | 2,544,652 | 206,295 |
Advanced Micro Devices, Inc.2 | 14,351,091 | 1,176,646 |
Mastercard Inc., Class A | 3,138,237 | 1,061,258 |
Apple Inc. | 6,555,992 | 759,249 |
Intel Corp. | 11,705,598 | 606,116 |
Texas Instruments Inc. | 3,566,887 | 509,316 |
TE Connectivity Ltd. | 5,049,420 | 493,530 |
NortonLifeLock Inc. | 23,138,049 | 482,197 |
KLA Corp. | 2,485,367 | 481,515 |
Fidelity National Information Services, Inc. | 3,143,351 | 462,733 |
Samsung Electronics Co., Ltd.1 | 8,975,781 | 452,251 |
ServiceNow, Inc.2 | 903,809 | 438,347 |
HubSpot, Inc.2 | 1,434,171 | 419,108 |
Visa Inc., Class A | 2,075,855 | 415,109 |
Autodesk, Inc.2 | 1,647,965 | 380,696 |
FleetCor Technologies, Inc.2 | 1,420,428 | 338,204 |
Square, Inc., Class A2 | 2,072,407 | 336,870 |
Arista Networks, Inc.2 | 1,561,351 | 323,090 |
QUALCOMM Inc. | 2,697,793 | 317,476 |
Paychex, Inc. | 3,803,021 | 303,367 |
Motorola Solutions, Inc. | 1,886,177 | 295,771 |
Applied Materials, Inc. | 4,843,167 | 287,926 |
PayPal Holdings, Inc.2 | 1,451,138 | 285,918 |
RingCentral, Inc., Class A2 | 1,010,756 | 277,564 |
Adobe Inc.2 | 433,965 | 212,829 |
Ceridian HCM Holding Inc.2 | 2,381,404 | 196,823 |
Dell Technologies Inc., Class C2 | 2,746,910 | 185,938 |
SK hynix, Inc.1 | 2,454,400 | 176,107 |
International Business Machines Corp. | 1,398,427 | 170,147 |
Micron Technology, Inc.2 | 2,710,166 | 127,269 |
Keyence Corp.1 | 259,100 | 120,752 |
Smartsheet Inc., Class A2 | 2,110,623 | 104,307 |
EPAM Systems, Inc.2 | 303,100 | 97,986 |
VeriSign, Inc.2 | 455,969 | 93,405 |
SAP SE1 | 574,565 | 89,473 |
Cree, Inc.2 | 1,274,890 | 81,262 |
MongoDB, Inc., Class A2 | 338,623 | 78,395 |
Shopify Inc., Class A, subordinate voting shares2 | 70,955 | 72,585 |
SYNNEX Corp. | 514,421 | 72,050 |
Edenred SA1 | 1,582,671 | 71,007 |
Lam Research Corp. | 213,422 | 70,803 |
NetApp, Inc. | 1,498,514 | 65,695 |
Fundamental Investors — Page 1 of 10
unaudited
Common stocks (continued) Information technology (continued) | Shares | Value (000) |
Slack Technologies, Inc., Class A2 | 2,307,399 | $61,977 |
ON Semiconductor Corp.2 | 2,792,811 | 60,576 |
LiveRamp Holdings, Inc.2 | 1,139,660 | 59,000 |
Snowflake Inc., Class A2,3 | 234,100 | 58,759 |
Automatic Data Processing, Inc. | 164,000 | 22,876 |
25,342,008 | ||
Health care 13.63% | ||
UnitedHealth Group Inc. | 7,286,535 | 2,271,723 |
Regeneron Pharmaceuticals, Inc.2 | 2,090,394 | 1,170,161 |
Pfizer Inc. | 27,650,603 | 1,014,777 |
Thermo Fisher Scientific Inc. | 2,181,912 | 963,358 |
Centene Corp.2 | 13,263,629 | 773,667 |
AstraZeneca PLC1 | 5,124,187 | 557,721 |
Abbott Laboratories | 4,038,553 | 439,516 |
Cigna Corp. | 2,471,164 | 418,640 |
Daiichi Sankyo Company, Ltd.1 | 13,465,500 | 413,775 |
Vertex Pharmaceuticals Inc.2 | 1,468,711 | 399,666 |
Molina Healthcare, Inc.2 | 2,178,238 | 398,705 |
Gilead Sciences, Inc. | 5,856,121 | 370,048 |
Boston Scientific Corp.2 | 9,033,163 | 345,157 |
Seattle Genetics, Inc.2 | 1,755,734 | 343,580 |
Illumina, Inc.2 | 1,083,780 | 334,975 |
Merck & Co., Inc. | 3,156,055 | 261,795 |
Allakos Inc.2,4 | 2,996,937 | 244,100 |
Bristol-Myers Squibb Company | 3,995,504 | 240,889 |
Eli Lilly and Company | 1,615,110 | 239,069 |
Humana Inc. | 521,315 | 215,767 |
GW Pharmaceuticals PLC (ADR)2,4 | 2,000,000 | 194,700 |
ResMed Inc. | 1,133,725 | 194,354 |
Edwards Lifesciences Corp.2 | 2,429,703 | 193,939 |
Baxter International Inc. | 2,400,000 | 193,008 |
Ultragenyx Pharmaceutical Inc.2 | 2,254,833 | 185,325 |
GlaxoSmithKline PLC1 | 8,969,946 | 168,024 |
GlaxoSmithKline PLC (ADR) | 399,550 | 15,039 |
Danaher Corp. | 728,108 | 156,783 |
Teva Pharmaceutical Industries Ltd. (ADR)2 | 16,740,428 | 150,831 |
DexCom, Inc.2 | 234,736 | 96,765 |
Novo Nordisk A/S, Class B1 | 1,375,140 | 95,520 |
10X Genomics, Inc., Class A2 | 764,140 | 95,273 |
Neurocrine Biosciences, Inc.2 | 924,135 | 88,865 |
Biogen Inc.2 | 299,755 | 85,034 |
Incyte Corp.2 | 915,254 | 82,135 |
Bluebird Bio, Inc.2 | 1,284,125 | 69,278 |
Anthem, Inc. | 255,153 | 68,532 |
Zimmer Biomet Holdings, Inc. | 435,243 | 59,254 |
Roche Holding AG, nonvoting, non-registered shares1 | 169,861 | 58,114 |
AmerisourceBergen Corp. | 566,063 | 54,863 |
Cortexyme, Inc.2,3 | 1,080,456 | 54,023 |
Notre Dame Intermédica Participações SA | 4,645,000 | 53,812 |
Mettler-Toledo International Inc.2 | 44,882 | 43,345 |
Insulet Corp.2 | 169,000 | 39,984 |
Oak Street Health, Inc.2 | 704,823 | 37,666 |
Applied Molecular Transport Inc.2 | 960,617 | 30,567 |
Johnson & Johnson | 152,000 | 22,630 |
Fundamental Investors — Page 2 of 10
unaudited
Common stocks (continued) Health care (continued) | Shares | Value (000) |
Teladoc Health, Inc.2 | 94,893 | $20,804 |
Tandem Diabetes Care, Inc.2 | 157,823 | 17,913 |
Bausch Health Companies Inc.2 | 749,157 | 11,642 |
Allogene Therapeutics, Inc.2 | 293,993 | 11,086 |
GoodRx Holdings, Inc., Class A2 | 164,700 | 9,157 |
14,075,354 | ||
Communication services 11.80% | ||
Facebook, Inc., Class A2 | 11,486,784 | 3,008,389 |
Comcast Corp., Class A | 44,456,590 | 2,056,562 |
Netflix, Inc.2 | 3,638,678 | 1,819,448 |
Alphabet Inc., Class C2 | 886,238 | 1,302,416 |
Alphabet Inc., Class A2 | 276,257 | 404,882 |
Charter Communications, Inc., Class A2 | 2,018,768 | 1,260,398 |
Activision Blizzard, Inc. | 7,797,911 | 631,241 |
Walt Disney Company | 3,196,403 | 396,610 |
Sea Ltd., Class A (ADR)2 | 1,860,907 | 286,654 |
Verizon Communications Inc. | 2,497,190 | 148,558 |
T-Mobile US, Inc.2 | 974,903 | 111,490 |
JOYY Inc., Class A (ADR) | 1,363,466 | 109,991 |
HUYA, Inc. (ADR)2 | 4,549,740 | 108,966 |
Snap Inc., Class A2 | 4,036,875 | 105,403 |
Tencent Holdings Ltd.1 | 1,263,600 | 84,147 |
Pinterest, Inc., Class A2 | 1,965,189 | 81,575 |
SoftBank Group Corp.1 | 1,298,300 | 80,166 |
New York Times Co., Class A | 1,516,707 | 64,900 |
Vivendi SA1 | 1,623,500 | 45,250 |
Twitter, Inc.2 | 921,166 | 40,992 |
SoftBank Corp.1 | 3,187,300 | 35,713 |
12,183,751 | ||
Financials 9.37% | ||
Berkshire Hathaway Inc., Class B2 | 4,756,278 | 1,012,802 |
Berkshire Hathaway Inc., Class A2 | 118 | 37,760 |
JPMorgan Chase & Co. | 10,682,133 | 1,028,369 |
The Blackstone Group Inc., Class A | 12,183,429 | 635,975 |
CME Group Inc., Class A | 3,118,680 | 521,786 |
Truist Financial Corp. | 12,554,381 | 477,694 |
Intercontinental Exchange, Inc. | 4,743,040 | 474,541 |
BlackRock, Inc. | 730,941 | 411,922 |
Aon PLC, Class A | 1,934,971 | 399,185 |
KKR & Co. Inc. | 10,709,411 | 367,761 |
Apollo Global Management, Inc., Class A | 7,590,019 | 339,653 |
HDFC Bank Ltd.1,2 | 22,825,000 | 336,328 |
Sberbank of Russia PJSC (ADR)1,2 | 20,949,429 | 244,411 |
Marsh & McLennan Companies, Inc. | 2,044,236 | 234,474 |
Chubb Ltd. | 1,923,117 | 223,312 |
AIA Group Ltd.1 | 22,198,800 | 218,684 |
Synchrony Financial | 8,175,800 | 213,961 |
Moody’s Corp. | 676,268 | 196,016 |
Citizens Financial Group, Inc. | 7,082,652 | 179,050 |
Citigroup Inc. | 4,100,000 | 176,751 |
Arthur J. Gallagher & Co. | 1,666,425 | 175,941 |
First Republic Bank | 1,523,981 | 166,205 |
Legal & General Group PLC1 | 68,335,810 | 165,613 |
Fundamental Investors — Page 3 of 10
unaudited
Common stocks (continued) Financials (continued) | Shares | Value (000) |
S&P Global Inc. | 444,301 | $160,215 |
Arch Capital Group Ltd.2 | 5,393,877 | 157,771 |
Kotak Mahindra Bank Ltd.1,2 | 6,791,770 | 116,900 |
Cannae Holdings, Inc.2 | 2,971,657 | 110,724 |
Capital One Financial Corp. | 1,453,365 | 104,439 |
Travelers Companies, Inc. | 817,810 | 88,479 |
Zurich Insurance Group AG1 | 246,223 | 85,608 |
Bank of America Corp. | 3,500,000 | 84,315 |
Hong Kong Exchanges and Clearing Ltd.1 | 1,490,400 | 70,055 |
Ares Management Corp., Class A | 1,719,987 | 69,522 |
Ping An Insurance (Group) Company of China, Ltd., Class H1 | 6,441,000 | 66,447 |
PNC Financial Services Group, Inc. | 449,494 | 49,404 |
Barclays PLC1,2 | 38,746,623 | 48,757 |
Brookfield Asset Management Inc., Class A | 1,273,567 | 42,104 |
Willis Towers Watson PLC | 180,797 | 37,754 |
Toronto-Dominion Bank (CAD denominated) | 809,876 | 37,497 |
KeyCorp | 3,088,142 | 36,842 |
Progressive Corp. | 341,316 | 32,313 |
Bank of Nova Scotia (CAD denominated) | 599,326 | 24,899 |
Bank of Ireland Group PLC1,2 | 6,092,919 | 11,630 |
9,673,869 | ||
Consumer staples 9.00% | ||
Philip Morris International Inc. | 25,626,035 | 1,921,696 |
Altria Group, Inc. | 37,386,293 | 1,444,606 |
British American Tobacco PLC1 | 34,753,200 | 1,249,133 |
British American Tobacco PLC (ADR) | 1,677,113 | 60,628 |
Conagra Brands, Inc. | 18,076,983 | 645,529 |
Nestlé SA1 | 4,277,666 | 507,499 |
Keurig Dr Pepper Inc. | 16,673,240 | 460,182 |
Colgate-Palmolive Company | 5,027,743 | 387,890 |
Mondelez International, Inc. | 6,557,621 | 376,735 |
Walmart Inc. | 2,367,336 | 331,214 |
Costco Wholesale Corp. | 804,643 | 285,648 |
Procter & Gamble Company | 1,548,733 | 215,259 |
Archer Daniels Midland Company | 3,995,504 | 185,751 |
Reckitt Benckiser Group PLC1 | 1,117,413 | 108,940 |
Reckitt Benckiser Group PLC (ADR) | 3,686,897 | 72,448 |
Constellation Brands, Inc., Class A | 953,386 | 180,676 |
Unilever PLC1 | 1,797,977 | 110,788 |
Unilever PLC (ADR) | 699,213 | 43,127 |
Kellogg Co. | 2,100,000 | 135,639 |
Estée Lauder Companies Inc., Class A | 619,493 | 135,204 |
Anheuser-Busch InBev SA/NV1 | 2,002,133 | 108,070 |
ITC Ltd.1 | 38,035,066 | 88,575 |
Sysco Corp. | 1,143,514 | 71,150 |
Kraft Heinz Company | 2,066,977 | 61,906 |
Church & Dwight Co., Inc. | 649,146 | 60,832 |
General Mills, Inc. | 686,028 | 42,314 |
9,291,439 | ||
Consumer discretionary 8.84% | ||
Amazon.com, Inc.2 | 1,204,955 | 3,794,078 |
Prosus NV1,2 | 5,945,138 | 548,249 |
Dollar General Corp. | 2,297,775 | 481,660 |
Fundamental Investors — Page 4 of 10
unaudited
Common stocks (continued) Consumer discretionary (continued) | Shares | Value (000) |
Domino’s Pizza, Inc. | 1,083,717 | $460,883 |
Restaurant Brands International Inc. | 7,788,482 | 447,916 |
Target Corp. | 2,798,020 | 440,464 |
Home Depot, Inc. | 1,213,943 | 337,124 |
NIKE, Inc., Class B | 2,393,700 | 300,505 |
Flutter Entertainment PLC (GBP denominated)1 | 1,243,357 | 195,816 |
Flutter Entertainment PLC (EUR denominated)1 | 644,757 | 102,165 |
LVMH Moët Hennessy-Louis Vuitton SE1 | 620,632 | 290,143 |
Booking Holdings Inc.2 | 156,875 | 268,363 |
Evolution Gaming Group AB1 | 3,206,766 | 211,968 |
Burlington Stores, Inc.2 | 839,313 | 172,974 |
Galaxy Entertainment Group Ltd.1 | 21,062,000 | 142,555 |
Marriott International, Inc., Class A | 1,415,068 | 131,007 |
Wynn Resorts, Ltd. | 1,398,128 | 100,399 |
TJX Companies, Inc. | 1,797,977 | 100,057 |
GVC Holdings PLC1,2 | 7,441,627 | 93,665 |
Five Below, Inc.2 | 604,320 | 76,749 |
Trainline PLC1,2 | 14,169,162 | 66,449 |
Darden Restaurants, Inc. | 650,468 | 65,528 |
Floor & Decor Holdings, Inc., Class A2 | 799,101 | 59,773 |
THG Holdings Ltd.1,2 | 7,358,370 | 56,798 |
Las Vegas Sands Corp. | 1,125,571 | 52,519 |
Carvana Co., Class A2 | 213,000 | 47,512 |
Aramark | 1,618,179 | 42,801 |
MercadoLibre, Inc.2 | 35,000 | 37,887 |
9,126,007 | ||
Industrials 8.18% | ||
CSX Corp. | 10,862,269 | 843,672 |
TransDigm Group Inc. | 1,678,029 | 797,265 |
Honeywell International Inc. | 4,026,068 | 662,731 |
Parker-Hannifin Corp. | 2,859,455 | 578,582 |
Deere & Company | 2,407,291 | 533,528 |
Union Pacific Corp. | 2,527,076 | 497,505 |
Northrop Grumman Corp. | 1,315,616 | 415,064 |
Norfolk Southern Corp. | 1,796,930 | 384,525 |
Airbus SE, non-registered shares1,2 | 4,905,456 | 356,061 |
Safran SA1,2 | 3,077,006 | 302,789 |
Raytheon Technologies Corp. | 5,128,729 | 295,107 |
Emerson Electric Co. | 3,945,560 | 258,710 |
Lockheed Martin Corp. | 581,250 | 222,782 |
Waste Connections, Inc. | 2,118,008 | 219,849 |
Nidec Corp.1 | 2,242,400 | 208,546 |
PACCAR Inc. | 2,214,802 | 188,878 |
Boeing Company | 1,010,171 | 166,941 |
Experian PLC1 | 4,204,466 | 157,335 |
Caterpillar Inc. | 1,049,958 | 156,601 |
ABB Ltd.1 | 6,165,833 | 156,273 |
United Parcel Service, Inc., Class B | 699,213 | 116,510 |
Waste Management, Inc. | 1,029,489 | 116,507 |
Carrier Global Corp. | 3,649,517 | 111,456 |
L3Harris Technologies, Inc. | 613,563 | 104,208 |
Grafton Group PLC, units1,2 | 9,305,424 | 80,670 |
IMCD NV1 | 499,438 | 59,466 |
MTU Aero Engines AG1 | 357,530 | 59,464 |
Fundamental Investors — Page 5 of 10
unaudited
Common stocks (continued) Industrials (continued) | Shares | Value (000) |
Armstrong World Industries, Inc. | 825,126 | $56,777 |
Westinghouse Air Brake Technologies Corp. | 905,931 | 56,059 |
Lifco AB, Class B1 | 724,186 | 55,999 |
Equifax Inc. | 281,078 | 44,101 |
Illinois Tool Works Inc. | 199,776 | 38,599 |
United Rentals, Inc.2 | 189,787 | 33,118 |
DSV Panalpina A/S1 | 194,780 | 31,786 |
HEICO Corp. | 292,760 | 30,640 |
Sweco AB, Class B, non-registered shares1 | 487,551 | 27,080 |
ASSA ABLOY AB, Class B1 | 998,876 | 23,315 |
8,448,499 | ||
Materials 5.20% | ||
Barrick Gold Corp. | 17,231,394 | 484,374 |
Linde PLC | 1,858,485 | 442,561 |
Dow Inc. | 8,294,374 | 390,250 |
Wheaton Precious Metals Corp. | 6,566,612 | 322,224 |
Wheaton Precious Metals Corp. (CAD denominated) | 1,384,919 | 67,948 |
Franco-Nevada Corp. (CAD denominated) | 2,431,135 | 339,725 |
Franco-Nevada Corp. | 250,018 | 34,898 |
Eastman Chemical Company | 4,625,057 | 361,309 |
Westlake Chemical Corp. | 4,851,541 | 306,714 |
Grupo México, SAB de CV, Series B | 110,821,179 | 281,921 |
Royal Gold, Inc. | 2,280,999 | 274,107 |
Vale SA, ordinary nominative (ADR) | 16,505,605 | 174,629 |
Vale SA, ordinary nominative | 7,227,000 | 76,068 |
LyondellBasell Industries NV | 3,377,029 | 238,047 |
Rio Tinto PLC1 | 3,396,179 | 204,919 |
Sherwin-Williams Company | 258,000 | 179,759 |
Corteva, Inc. | 6,200,000 | 178,622 |
BHP Group PLC1 | 8,293,215 | 176,802 |
First Quantum Minerals Ltd. | 18,393,678 | 163,969 |
Koninklijke DSM NV1 | 973,718 | 160,465 |
Nucor Corp. | 2,897,028 | 129,961 |
Packaging Corp. of America | 956,440 | 104,300 |
Norsk Hydro ASA1,2 | 30,854,272 | 84,928 |
PPG Industries, Inc. | 660,157 | 80,592 |
Asian Paints Ltd.1 | 2,142,500 | 57,728 |
CCL Industries Inc., Class B, nonvoting shares | 1,160,694 | 44,752 |
LafargeHolcim Ltd.1 | 278,187 | 12,681 |
5,374,253 | ||
Utilities 2.79% | ||
Enel SpA1 | 94,808,399 | 823,236 |
Xcel Energy Inc. | 5,244,494 | 361,922 |
DTE Energy Company | 2,951,723 | 339,566 |
AES Corp. | 18,667,594 | 338,070 |
Ørsted AS1 | 1,689,900 | 233,096 |
American Electric Power Company, Inc. | 2,594,692 | 212,064 |
Sempra Energy | 1,728,667 | 204,605 |
CMS Energy Corp. | 1,995,484 | 122,543 |
CenterPoint Energy, Inc. | 5,886,200 | 113,898 |
Exelon Corp. | 2,165,496 | 77,438 |
Iberdrola, SA, non-registered shares1 | 1,846,600 | 22,728 |
Brookfield Infrastructure Partners LP | 316,744 | 15,103 |
Fundamental Investors — Page 6 of 10
unaudited
Common stocks (continued) Utilities (continued) | Shares | Value (000) |
NextEra Energy, Inc. | 52,500 | $14,572 |
Brookfield Infrastructure Corp., Class A, subordinate voting shares | 35,193 | 1,951 |
2,880,792 | ||
Real estate 1.55% | ||
Crown Castle International Corp. REIT | 2,985,770 | 497,131 |
Equinix, Inc. REIT | 469,683 | 357,020 |
American Tower Corp. REIT | 706,500 | 170,782 |
AvalonBay Communities, Inc. REIT | 908,794 | 135,719 |
Gaming and Leisure Properties, Inc. REIT | 3,622,393 | 133,775 |
Public Storage REIT | 460,682 | 102,603 |
Digital Realty Trust, Inc. REIT | 685,372 | 100,585 |
KE Holdings Inc., Class A (ADR)2 | 986,393 | 60,466 |
Brookfield Property Partners LP | 1,797,977 | 21,630 |
K-Fast Holding AB, Class B1,2 | 520,385 | 13,747 |
MGM Growth Properties LLC REIT, Class A | 180,401 | 5,047 |
1,598,505 | ||
Energy 1.39% | ||
Chevron Corp. | 3,723,004 | 268,056 |
BP PLC1 | 79,910,088 | 232,012 |
BP PLC (ADR) | 998,876 | 17,440 |
Valero Energy Corp. | 4,445,000 | 192,557 |
Baker Hughes Co., Class A | 12,668,647 | 168,366 |
Canadian Natural Resources, Ltd. (CAD denominated) | 10,299,529 | 165,065 |
ConocoPhillips | 4,603,185 | 151,169 |
EOG Resources, Inc. | 2,346,961 | 84,350 |
Cabot Oil & Gas Corp. | 3,881,632 | 67,385 |
Total SE1 | 1,581,584 | 54,301 |
Equitrans Midstream Corp. | 4,178,433 | 35,349 |
1,436,050 | ||
Total common stocks (cost: $62,540,377,000) | 99,430,527 | |
Preferred securities 0.02% Information technology 0.02% | ||
Samsung Electronics Co., Ltd., nonvoting preferred shares1 | 500,000 | 21,572 |
Total preferred securities (cost: $14,544,000) | 21,572 | |
Convertible stocks 0.31% Information technology 0.17% | ||
Broadcom Inc., Series A, cumulative convertible preferred shares, 8.00% 2022 | 141,713 | 176,681 |
Utilities 0.08% | ||
American Electric Power Co., Inc., units, convertible preferred shares, 6.125% 2023 | 1,001,281 | 49,083 |
NextEra Energy, Inc., convertible preferred units, 6.219% 2023 | 612,000 | 29,223 |
78,306 | ||
Financials 0.06% | ||
KKR & Co. Inc., Series C, convertible preferred shares, 6.00% | 1,272,448 | 66,167 |
Total convertible stocks (cost: $290,026,000) | 321,154 |
Fundamental Investors — Page 7 of 10
unaudited
Short-term securities 4.40% Money market investments 4.40% | Shares | Value (000) |
Capital Group Central Cash Fund 0.12%4,5 | 44,965,734 | $4,497,023 |
Goldman Sachs Financial Square Government Fund, Institutional Shares 0%5,6 | 43,259,760 | 43,259 |
4,540,282 | ||
Total short-term securities (cost: $4,539,755,000) | 4,540,282 | |
Total investment securities 101.02% (cost: $67,384,702,000) | 104,313,535 | |
Other assets less liabilities (1.02)% | (1,055,577) | |
Net assets 100.00% | $103,257,958 |
Investments in affiliates4
Value of affiliates at 1/1/2020 (000) | Additions (000) | Reductions (000) | Net realized gain (loss) (000) | Net unrealized appreciation (depreciation) (000) | Value of affiliates at 9/30/2020 (000) | Dividend income (000) | |
Common stocks 0.42% | |||||||
Health care 0.42% | |||||||
Allakos Inc.2 | $118,714 | $119,196 | $259 | $56 | $6,393 | $244,100 | $— |
GW Pharmaceuticals PLC (ADR)2 | — | 235,504 | 170 | 7 | (40,641) | 194,700 | — |
438,800 | |||||||
Industrials 0.00% | |||||||
Armstrong World Industries, Inc.7 | 205,513 | 18,859 | 109,365 | (27,119) | (31,111) | — | 1,389 |
Total common stocks | 438,800 | ||||||
Short-term securities 4.36% | |||||||
Money market investments 4.36% | |||||||
Capital Group Central Cash Fund 0.12%5 | 2,797,333 | 15,621,123 | 13,923,172 | 3,914 | (2,175) | 4,497,023 | 21,745 |
Total 4.78% | $(23,142) | $(67,534) | $4,935,823 | $23,134 |
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $13,834,215,000, which represented 13.40% 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 $47,001,000, which represented .05% of the net assets of the fund. |
4 | Affiliate of the fund or part of the same group of investment companies as the fund, in each case as defined under the Investment Company Act of 1940. |
5 | Rate represents the seven-day yield at 9/30/2020. |
6 | Security purchased with cash collateral from securities on loan. |
7 | Unaffiliated issuer at 9/30/2020. |
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 8 of 10
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 & 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.
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.
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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 September 30, 2020 (dollars in thousands):
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Common stocks: | ||||
Information technology | $21,908,468 | $3,433,540 | $— | $25,342,008 |
Health care | 12,782,200 | 1,293,154 | — | 14,075,354 |
Communication services | 11,938,475 | 245,276 | — | 12,183,751 |
Financials | 8,309,436 | 1,364,433 | — | 9,673,869 |
Consumer staples | 7,118,434 | 2,173,005 | — | 9,291,439 |
Consumer discretionary | 7,418,199 | 1,707,808 | — | 9,126,007 |
Industrials | 6,929,715 | 1,518,784 | — | 8,448,499 |
Materials | 4,676,730 | 697,523 | — | 5,374,253 |
Utilities | 1,801,732 | 1,079,060 | — | 2,880,792 |
Real estate | 1,584,758 | 13,747 | — | 1,598,505 |
Energy | 1,149,737 | 286,313 | — | 1,436,050 |
Preferred securities | — | 21,572 | — | 21,572 |
Convertible stocks | 321,154 | — | — | 321,154 |
Short-term securities | 4,540,282 | — | — | 4,540,282 |
Total | $90,479,320 | $13,834,215 | $— | $104,313,535 |
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.
MFGEFP3-010-1120O-S78113 | Fundamental Investors — Page 10 of 10 |