Fundamental Investors®
Investment portfolio
March 31, 2023
Investment portfolio
March 31, 2023
unaudited
Common stocks 96.16% Information technology 20.56% | Shares | Value (000) | |
Microsoft Corp. | 18,693,983 | $5,389,475 | |
Broadcom, Inc. | 7,503,145 | 4,813,568 | |
Applied Materials, Inc. | 12,586,518 | 1,546,002 | |
Apple, Inc. | 7,612,742 | 1,255,341 | |
Salesforce, Inc.1 | 5,275,163 | 1,053,872 | |
TE Connectivity, Ltd. | 7,114,471 | 933,063 | |
ASML Holding NV | 1,248,528 | 853,113 | |
ASML Holding NV (New York registered) (ADR) | 34,283 | 23,337 | |
Taiwan Semiconductor Manufacturing Company, Ltd. | 23,210,000 | 411,185 | |
Taiwan Semiconductor Manufacturing Company, Ltd. (ADR) | 4,169,991 | 387,893 | |
Motorola Solutions, Inc. | 2,639,662 | 755,287 | |
Micron Technology, Inc. | 12,051,079 | 727,162 | |
Arista Networks, Inc.1 | 3,436,300 | 576,817 | |
Wolfspeed, Inc.1,2 | 7,204,533 | 467,934 | |
STMicroelectronics NV | 7,375,752 | 394,574 | |
SK hynix, Inc. | 5,691,000 | 392,513 | |
KLA Corp. | 881,544 | 351,886 | |
Ceridian HCM Holding, Inc.1 | 4,215,057 | 308,626 | |
SAP SE | 1,933,818 | 243,269 | |
Shopify, Inc., Class A, subordinate voting shares1 | 4,867,190 | 233,333 | |
HubSpot, Inc.1 | 466,000 | 199,798 | |
ServiceNow, Inc.1 | 402,053 | 186,842 | |
MicroStrategy, Inc., Class A1,3 | 510,069 | 149,103 | |
Capgemini SE | 743,000 | 138,203 | |
Advanced Micro Devices, Inc.1 | 1,296,599 | 127,080 | |
MongoDB, Inc., Class A1 | 461,300 | 107,538 | |
NetApp, Inc. | 1,494,303 | 95,411 | |
Keyence Corp. | 194,400 | 95,308 | |
CDW Corp. | 450,000 | 87,701 | |
NVIDIA Corp. | 292,000 | 81,109 | |
DocuSign, Inc.1 | 1,366,166 | 79,647 | |
Adobe, Inc.1 | 161,399 | 62,198 | |
EPAM Systems, Inc.1 | 148,020 | 44,258 | |
RingCentral, Inc., Class A1 | 1,014,475 | 31,114 | |
Samsung Electronics Co., Ltd. | 488,800 | 24,239 | |
Intel Corp. | 49,742 | 1,625 | |
22,629,424 | |||
Health care 13.74% | |||
UnitedHealth Group, Inc. | 4,193,795 | 1,981,946 | |
Centene Corp.1 | 23,476,484 | 1,483,949 | |
Novo Nordisk A/S, Class B | 7,800,010 | 1,237,804 | |
Thermo Fisher Scientific, Inc. | 2,091,270 | 1,205,345 | |
Eli Lilly and Company | 3,283,274 | 1,127,542 | |
AstraZeneca PLC | 7,926,818 | 1,100,244 | |
AstraZeneca PLC (ADR) | 154,792 | 10,744 |
Fundamental Investors — Page 1 of 10
unaudited
Common stocks (continued) Health care (continued) | Shares | Value (000) | |
Pfizer, Inc. | 19,608,016 | $800,007 | |
Regeneron Pharmaceuticals, Inc.1 | 763,780 | 627,575 | |
Seagen, Inc.1 | 3,025,850 | 612,644 | |
Alnylam Pharmaceuticals, Inc.1 | 2,570,302 | 514,883 | |
Abbott Laboratories | 4,860,208 | 492,145 | |
Molina Healthcare, Inc.1 | 1,205,913 | 322,570 | |
Agilon Health, Inc.1 | 13,028,000 | 309,415 | |
Vertex Pharmaceuticals, Inc.1 | 941,133 | 296,523 | |
Edwards Lifesciences Corp.1 | 3,429,225 | 283,700 | |
Bristol-Myers Squibb Company | 3,775,146 | 261,655 | |
Danaher Corp. | 957,191 | 241,250 | |
ResMed, Inc. | 1,063,977 | 233,000 | |
Humana, Inc. | 469,500 | 227,923 | |
Gilead Sciences, Inc. | 2,707,349 | 224,629 | |
Elevance Health, Inc. | 478,003 | 219,791 | |
The Cigna Group | 800,000 | 204,424 | |
Teva Pharmaceutical Industries, Ltd. (ADR)1 | 22,731,576 | 201,174 | |
Zoetis, Inc., Class A | 1,114,550 | 185,506 | |
Exact Sciences Corp.1 | 1,746,763 | 118,448 | |
Rede D’Or Sao Luiz SA | 23,367,000 | 97,922 | |
NovoCure, Ltd.1 | 1,554,961 | 93,515 | |
AbbVie, Inc. | 538,897 | 85,884 | |
GE HealthCare Technologies, Inc.1 | 837,600 | 68,708 | |
BeiGene, Ltd. (ADR)1,3 | 292,068 | 62,949 | |
Align Technology, Inc.1 | 187,000 | 62,484 | |
Mettler-Toledo International, Inc.1 | 37,455 | 57,314 | |
Karuna Therapeutics, Inc.1 | 178,799 | 32,477 | |
CVS Health Corp. | 284,906 | 21,171 | |
Guardant Health, Inc.1 | 282,958 | 6,633 | |
Horizon Therapeutics PLC1 | 24,800 | 2,707 | |
15,116,600 | |||
Financials 10.76% | |||
Mastercard, Inc., Class A | 2,250,381 | 817,811 | |
Apollo Asset Management, Inc. | 12,515,772 | 790,496 | |
JPMorgan Chase & Co. | 5,883,948 | 766,737 | |
Aon PLC, Class A | 2,233,794 | 704,293 | |
Visa, Inc., Class A | 3,074,811 | 693,247 | |
Blackstone, Inc., nonvoting shares | 7,414,531 | 651,292 | |
KKR & Co., Inc. | 11,807,376 | 620,123 | |
Fiserv, Inc.1 | 4,629,000 | 523,216 | |
HDFC Bank, Ltd. | 23,807,000 | 468,046 | |
Marsh & McLennan Companies, Inc. | 2,464,775 | 410,508 | |
Discover Financial Services | 3,978,860 | 393,271 | |
Goldman Sachs Group, Inc. | 1,185,914 | 387,924 | |
S&P Global, Inc. | 882,768 | 304,352 | |
Arch Capital Group, Ltd.1 | 4,000,000 | 271,480 | |
OneMain Holdings, Inc.2 | 6,876,634 | 254,986 | |
Arthur J. Gallagher & Co. | 1,285,362 | 245,903 | |
Blue Owl Capital, Inc., Class A | 22,034,001 | 244,137 | |
Wells Fargo & Company | 6,236,467 | 233,119 | |
Chubb, Ltd. | 1,084,624 | 210,612 | |
Progressive Corp. | 1,386,114 | 198,298 | |
Synchrony Financial | 6,679,847 | 194,250 | |
Intercontinental Exchange, Inc. | 1,489,744 | 155,365 |
Fundamental Investors — Page 2 of 10
unaudited
Common stocks (continued) Financials (continued) | Shares | Value (000) | |
MSCI, Inc. | 268,400 | $150,221 | |
Ares Management Corp., Class A | 1,715,153 | 143,112 | |
BlackRock, Inc. | 212,450 | 142,155 | |
W. R. Berkley Corp. | 2,200,000 | 136,972 | |
Citizens Financial Group, Inc. | 4,440,528 | 134,859 | |
Edenred SA | 2,190,964 | 129,632 | |
Kotak Mahindra Bank, Ltd. | 6,087,000 | 128,441 | |
Block, Inc., Class A1 | 1,855,000 | 127,346 | |
Fidelity National Information Services, Inc. | 2,208,844 | 120,007 | |
Capital One Financial Corp. | 1,210,185 | 116,371 | |
RenaissanceRe Holdings, Ltd. | 560,000 | 112,190 | |
London Stock Exchange Group PLC | 1,110,776 | 107,950 | |
China Merchants Bank Co., Ltd., Class H | 21,135,000 | 107,686 | |
CME Group, Inc., Class A | 505,414 | 96,797 | |
Brookfield Asset Management, Ltd., Class A | 2,302,633 | 75,342 | |
Toronto-Dominion Bank (CAD denominated) | 1,249,690 | 74,852 | |
AIA Group, Ltd. | 7,048,400 | 74,060 | |
Focus Financial Partners, Inc., Class A1 | 1,335,000 | 69,247 | |
Brookfield Corp., Class A | 2,000,000 | 65,180 | |
Moody’s Corp. | 197,608 | 60,472 | |
Canadian Imperial Bank of Commerce (CAD denominated) | 1,037,171 | 43,981 | |
Charles Schwab Corp. | 780,000 | 40,856 | |
Checkout Payments Group, Ltd., Series D1,4,5 | 159,760 | 17,395 | |
Société Générale | 699,890 | 15,798 | |
Morgan Stanley | 98,500 | 8,648 | |
11,839,036 | |||
Industrials 10.64% | |||
TransDigm Group, Inc. | 2,212,181 | 1,630,488 | |
Carrier Global Corp. | 19,324,870 | 884,113 | |
Boeing Company1 | 3,592,700 | 763,197 | |
Caterpillar, Inc. | 3,030,771 | 693,562 | |
CSX Corp. | 19,089,343 | 571,535 | |
Regal Rexnord Corp.2 | 3,971,000 | 558,839 | |
United Rentals, Inc. | 1,410,557 | 558,242 | |
ITT, Inc.2 | 5,564,000 | 480,173 | |
Airbus SE, non-registered shares | 3,404,440 | 456,080 | |
Quanta Services, Inc. | 2,693,000 | 448,762 | |
Northrop Grumman Corp. | 766,401 | 353,863 | |
Schneider Electric SE | 1,971,587 | 329,588 | |
General Electric Co. | 3,369,328 | 322,108 | |
TFI International, Inc. (CAD denominated) | 2,546,544 | 303,871 | |
Equifax, Inc. | 1,340,417 | 271,890 | |
Waste Connections, Inc. | 1,834,233 | 255,087 | |
Rockwell Automation | 793,381 | 232,818 | |
Deere & Company | 500,000 | 206,440 | |
United Airlines Holdings, Inc.1 | 4,663,918 | 206,378 | |
Paychex, Inc. | 1,615,675 | 185,140 | |
Raytheon Technologies Corp. | 1,512,701 | 148,139 | |
Axon Enterprise, Inc.1 | 643,086 | 144,598 | |
Huntington Ingalls Industries, Inc. | 669,100 | 138,517 | |
LIXIL Corp. | 8,167,300 | 134,690 | |
Norfolk Southern Corp. | 635,260 | 134,675 | |
Sandvik AB | 6,000,000 | 127,508 | |
ABB, Ltd. | 3,244,463 | 111,259 |
Fundamental Investors — Page 3 of 10
unaudited
Common stocks (continued) Industrials (continued) | Shares | Value (000) | |
Dun & Bradstreet Holdings, Inc. | 9,417,714 | $110,564 | |
Lockheed Martin Corp. | 225,000 | 106,364 | |
Safran SA | 714,648 | 106,129 | |
United Parcel Service, Inc., Class B | 530,598 | 102,931 | |
Lifco AB, Class B | 4,358,648 | 93,841 | |
AMETEK, Inc. | 601,953 | 87,482 | |
L3Harris Technologies, Inc. | 443,300 | 86,993 | |
DSV A/S | 400,000 | 77,207 | |
Honeywell International, Inc. | 394,989 | 75,490 | |
IMCD NV | 400,000 | 65,466 | |
Concentrix Corp. | 413,904 | 50,310 | |
Lincoln Electric Holdings, Inc. | 261,729 | 44,258 | |
SS&C Technologies Holdings, Inc. | 503,000 | 28,404 | |
Crane Holdings, Co. | 97,502 | 11,067 | |
Genpact, Ltd. | 208,237 | 9,625 | |
11,707,691 | |||
Consumer staples 10.16% | |||
Philip Morris International, Inc. | 27,251,492 | 2,650,208 | |
Dollar Tree Stores, Inc.1 | 10,072,107 | 1,445,851 | |
British American Tobacco PLC | 38,586,299 | 1,352,247 | |
British American Tobacco PLC (ADR) | 2,485,818 | 87,302 | |
Nestlé SA | 5,473,653 | 668,206 | |
Keurig Dr Pepper, Inc. | 17,265,500 | 609,127 | |
Performance Food Group Co.1,2 | 10,015,922 | 604,361 | |
Altria Group, Inc. | 12,874,869 | 574,477 | |
Target Corp. | 2,955,000 | 489,437 | |
Dollar General Corp. | 2,277,750 | 479,375 | |
Bunge, Ltd. | 3,934,431 | 375,817 | |
Mondelez International, Inc. | 5,000,000 | 348,600 | |
Monster Beverage Corp.1 | 5,439,854 | 293,806 | |
Constellation Brands, Inc., Class A | 1,054,993 | 238,312 | |
Anheuser-Busch InBev SA/NV | 2,909,572 | 194,015 | |
Procter & Gamble Company | 1,088,929 | 161,913 | |
Reckitt Benckiser Group PLC (ADR)3 | 9,920,942 | 153,512 | |
Imperial Brands PLC | 5,382,898 | 123,791 | |
Church & Dwight Co., Inc. | 1,224,664 | 108,272 | |
General Mills, Inc. | 923,309 | 78,906 | |
Archer Daniels Midland Company | 933,839 | 74,390 | |
Kraft Heinz Company | 1,810,177 | 70,000 | |
11,181,925 | |||
Consumer discretionary 9.50% | |||
Amazon.com, Inc.1 | 9,479,087 | 979,095 | |
Booking Holdings, Inc.1 | 345,900 | 917,469 | |
Home Depot, Inc. | 3,062,280 | 903,740 | |
Restaurant Brands International, Inc. | 13,035,674 | 875,215 | |
D.R. Horton, Inc. | 6,642,000 | 648,857 | |
Coupang, Inc., Class A1 | 37,273,395 | 596,374 | |
Evolution AB | 4,359,174 | 584,901 | |
YUM! Brands, Inc. | 3,712,331 | 490,325 | |
LVMH Moët Hennessy-Louis Vuitton SE | 319,900 | 293,175 | |
Toll Brothers, Inc. | 4,704,717 | 282,424 | |
NIKE, Inc., Class B | 2,218,966 | 272,134 | |
adidas AG | 1,491,838 | 263,401 |
Fundamental Investors — Page 4 of 10
unaudited
Common stocks (continued) Consumer discretionary (continued) | Shares | Value (000) | |
Flutter Entertainment PLC1 | 1,442,013 | $262,274 | |
Industria de Diseño Textil, SA | 7,077,625 | 237,687 | |
Galaxy Entertainment Group, Ltd.1 | 34,454,000 | 229,037 | |
MercadoLibre, Inc.1 | 170,292 | 224,455 | |
Adient PLC1,2 | 4,867,532 | 199,374 | |
Kering SA | 302,049 | 197,134 | |
Lennar Corp., Class A | 1,836,600 | 193,045 | |
Entain PLC | 11,632,000 | 181,028 | |
B&M European Value Retail SA | 29,746,458 | 177,477 | |
Chipotle Mexican Grill, Inc.1 | 100,600 | 171,854 | |
Tractor Supply Co. | 710,218 | 166,930 | |
Darden Restaurants, Inc. | 1,049,085 | 162,776 | |
Amadeus IT Group SA, Class A, non-registered shares1 | 2,359,010 | 157,951 | |
Caesars Entertainment, Inc.1 | 2,223,300 | 108,519 | |
Five Below, Inc.1 | 518,411 | 106,777 | |
Trainline PLC1,2 | 31,244,000 | 95,538 | |
Norwegian Cruise Line Holdings, Ltd.1 | 6,900,000 | 92,805 | |
Hilton Worldwide Holdings, Inc. | 640,041 | 90,163 | |
Floor & Decor Holdings, Inc., Class A1 | 796,855 | 78,267 | |
TJX Companies, Inc. | 812,425 | 63,662 | |
Lear Corp. | 333,172 | 46,474 | |
Domino’s Pizza, Inc. | 140,000 | 46,182 | |
General Motors Company | 934,498 | 34,277 | |
Burlington Stores, Inc.1 | 62,033 | 12,537 | |
Mattel, Inc.1 | 511,723 | 9,421 | |
10,452,754 | |||
Communication services 7.05% | |||
Alphabet, Inc., Class C1 | 24,146,293 | 2,511,215 | |
Alphabet, Inc., Class A1 | 4,205,721 | 436,259 | |
Meta Platforms, Inc., Class A1 | 9,242,721 | 1,958,902 | |
Netflix, Inc.1 | 2,633,579 | 909,849 | |
Comcast Corp., Class A | 23,630,715 | 895,840 | |
Publicis Groupe SA | 4,886,000 | 381,722 | |
ZoomInfo Technologies, Inc.1 | 8,837,400 | 218,372 | |
Charter Communications, Inc., Class A1 | 475,102 | 169,901 | |
Take-Two Interactive Software, Inc.1 | 1,258,940 | 150,192 | |
Activision Blizzard, Inc. | 868,540 | 74,338 | |
Warner Music Group Corp., Class A | 1,112,000 | 37,108 | |
Vodafone Group PLC (ADR) | 892,900 | 9,858 | |
7,753,556 | |||
Materials 5.60% | |||
Mosaic Co.2 | 20,556,908 | 943,151 | |
Linde PLC | 1,806,354 | 642,050 | |
Wheaton Precious Metals Corp. | 11,498,000 | 553,744 | |
Grupo México, SAB de CV, Series B | 110,430,100 | 522,919 | |
Corteva, Inc. | 8,302,000 | 500,694 | |
Vale SA, ordinary nominative shares | 23,717,000 | 375,704 | |
Vale SA (ADR), ordinary nominative shares | 4,158,839 | 65,627 | |
First Quantum Minerals, Ltd. | 18,030,000 | 414,497 | |
Crown Holdings, Inc. | 4,332,008 | 358,300 | |
Freeport-McMoRan, Inc. | 5,500,000 | 225,005 | |
Barrick Gold Corp. | 11,839,000 | 219,850 | |
Glencore PLC | 34,185,000 | 196,636 |
Fundamental Investors — Page 5 of 10
unaudited
Common stocks (continued) Materials (continued) | Shares | Value (000) | |
Rio Tinto PLC | 2,875,000 | $194,853 | |
Royal Gold, Inc. | 1,417,000 | 183,799 | |
Steel Dynamics, Inc. | 1,461,656 | 165,255 | |
Albemarle Corp. | 657,379 | 145,307 | |
Franco-Nevada Corp. | 807,000 | 117,709 | |
Nutrien, Ltd. (CAD denominated) | 1,354,298 | 100,017 | |
Celanese Corp. | 690,615 | 75,201 | |
Lundin Mining Corp. | 10,415,000 | 70,743 | |
CCL Industries, Inc., Class B, nonvoting shares | 1,157,433 | 57,499 | |
Sherwin-Williams Company | 149,580 | 33,621 | |
6,162,181 | |||
Energy 4.64% | |||
Canadian Natural Resources, Ltd. (CAD denominated) | 21,809,951 | 1,206,930 | |
ConocoPhillips | 6,051,613 | 600,381 | |
Exxon Mobil Corp. | 4,757,654 | 521,724 | |
TC Energy Corp. (CAD denominated)3 | 11,756,152 | 457,285 | |
HF Sinclair Corp. | 6,884,800 | 333,087 | |
Cenovus Energy, Inc. (CAD denominated) | 17,878,000 | 311,922 | |
Baker Hughes Co., Class A | 9,500,000 | 274,170 | |
Chesapeake Energy Corp. | 3,500,000 | 266,140 | |
Pioneer Natural Resources Company | 1,169,183 | 238,794 | |
Range Resources Corp. | 8,692,598 | 230,093 | |
EOG Resources, Inc. | 1,779,122 | 203,941 | |
Schlumberger NV | 3,458,000 | 169,788 | |
EQT Corp. | 3,955,000 | 126,204 | |
Chevron Corp. | 437,304 | 71,350 | |
Equitrans Midstream Corp. | 12,205,288 | 70,547 | |
TotalEnergies SE | 386,408 | 22,799 | |
5,105,155 | |||
Utilities 2.42% | |||
AES Corp. | 32,215,998 | 775,761 | |
FirstEnergy Corp. | 12,650,000 | 506,759 | |
Constellation Energy Corp. | 3,920,463 | 307,757 | |
PG&E Corp.1 | 17,387,227 | 281,152 | |
CenterPoint Energy, Inc. | 8,257,540 | 243,267 | |
Edison International | 3,200,977 | 225,957 | |
CMS Energy Corp. | 2,094,607 | 128,567 | |
Brookfield Infrastructure Partners, LP | 3,250,000 | 109,824 | |
Evergy, Inc. | 1,299,136 | 79,403 | |
2,658,447 | |||
Real estate 1.09% | |||
VICI Properties, Inc. REIT | 11,285,535 | 368,134 | |
Equinix, Inc. REIT | 450,174 | 324,593 | |
Crown Castle, Inc. REIT | 2,373,768 | 317,705 | |
Welltower, Inc. REIT | 2,621,867 | 187,962 | |
1,198,394 | |||
Total common stocks (cost: $70,196,082,000) | 105,805,163 |
Fundamental Investors — Page 6 of 10
unaudited
Convertible stocks 0.05% Utilities 0.05% | Shares | Value (000) | |
AES Corp., convertible preferred units, 6.875% 2/15/2024 | 640,442 | $57,326 | |
Total convertible stocks (cost: $64,044,000) | 57,326 | ||
Short-term securities 3.71% Money market investments 3.48% | |||
Capital Group Central Cash Fund 4.86%2,6 | 38,230,650 | 3,823,065 | |
Money market investments purchased with collateral from securities on loan 0.23% | |||
Invesco Short-Term Investments Trust – Government & Agency Portfolio, Institutional Class 4.73%6,7 | 114,620,232 | 114,620 | |
Goldman Sachs Financial Square Government Fund, Institutional Shares 4.73%6,7 | 114,543,686 | 114,544 | |
Capital Group Central Cash Fund 4.86%2,6,7 | 271,565 | 27,157 | |
256,321 | |||
Total short-term securities (cost: $4,079,156,000) | 4,079,386 | ||
Total investment securities 99.92% (cost: $74,339,282,000) | 109,941,875 | ||
Other assets less liabilities 0.08% | 92,143 | ||
Net assets 100.00% | $110,034,018 |
Investments in affiliates2
Value of affiliates at 1/1/2023 (000) | Additions (000) | Reductions (000) | Net realized (loss) gain (000) | Net unrealized (depreciation) appreciation (000) | Value of affiliates at 3/31/2023 (000) | Dividend income (000) | |
Common stocks 3.28% | |||||||
Information technology 0.43% | |||||||
Wolfspeed, Inc.1 | $432,695 | $70,077 | $— | $— | $(34,838 ) | $467,934 | $— |
Financials 0.23% | |||||||
OneMain Holdings, Inc. | 229,061 | — | — | — | 25,925 | 254,986 | 6,877 |
Industrials 0.94% | |||||||
Regal Rexnord Corp. | 438,453 | 41,741 | — | — | 78,645 | 558,839 | 1,390 |
ITT, Inc. | 451,240 | — | — | — | 28,933 | 480,173 | 1,614 |
1,039,012 | |||||||
Consumer staples 0.55% | |||||||
Performance Food Group Co.1 | 264,075 | 327,941 | — | — | 12,345 | 604,361 | — |
Consumer discretionary 0.27% | |||||||
Adient PLC1 | 168,855 | — | — | — | 30,519 | 199,374 | — |
Trainline PLC1 | 100,746 | 3,240 | — | — | (8,448 ) | 95,538 | — |
294,912 | |||||||
Materials 0.86% | |||||||
Mosaic Co. | 688,847 | 236,473 | — | — | 17,831 | 943,151 | 9,133 |
Utilities 0.00% | |||||||
AES Corp.8 | 1,024,783 | — | 85,753 | (5,909 ) | (157,360 ) | — | 5,911 |
Total common stocks | 3,604,356 |
Fundamental Investors — Page 7 of 10
unaudited
Investments in affiliates2 (continued)
Value of affiliates at 1/1/2023 (000) | Additions (000) | Reductions (000) | Net realized (loss) gain (000) | Net unrealized (depreciation) appreciation (000) | Value of affiliates at 3/31/2023 (000) | Dividend income (000) | |
Convertible stocks 0.00% | |||||||
Utilities 0.00% | |||||||
AES Corp., convertible preferred units, 6.875% 2/15/20248 | $65,331 | $— | $— | $— | $(8,005 ) | $— | $1,101 |
Short-term securities 3.50% | |||||||
Money market investments 3.48% | |||||||
Capital Group Central Cash Fund 4.86%6 | 4,506,752 | 4,359,891 | 5,044,027 | 794 | (345 ) | 3,823,065 | 49,126 |
Money market investments purchased with collateral from securities on loan 0.02% | |||||||
Capital Group Central Cash Fund 4.86%6,7 | 35,156 | 7,999 9 | 27,157 | — 10 | |||
Total short-term securities | 3,850,222 | ||||||
Total 6.78% | $(5,115 ) | $(14,798 ) | $7,454,578 | $75,152 |
Restricted security5
Acquisition date | Cost (000) | Value (000) | Percent of net assets | |
Checkout Payments Group, Ltd., Series D1,4 | 1/11/2022 | $49,613 | $17,395 | .02 % |
1 | Security did not produce income during the last 12 months. |
2 | Affiliate of the fund or part of the same “group of investment companies“ as the fund, as defined under the Investment Company Act of 1940, as amended. |
3 | All or a portion of this security was on loan. The total value of all such securities was $273,668,000, which represented .25% of the net assets of the fund. |
4 | Value determined using significant unobservable inputs. |
5 | Restricted security, other than Rule 144A securities or commercial paper issued pursuant to Section 4(a)(2) of the Securities Act of 1933. The total value of all such restricted securities was $17,395,000, which represented .02% of the net assets of the fund. |
6 | Rate represents the seven-day yield at 3/31/2023. |
7 | Security purchased with cash collateral from securities on loan. |
8 | Affiliated issuer during the reporting period but no longer an affiliate at 3/31/2023. Refer to the investment portfolio for the security value at 3/31/2023. |
9 | Represents net activity. |
10 | 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. 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, 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.
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unaudited
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.
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.
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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 March 31, 2023 (dollars in thousands):
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Common stocks: | ||||
Information technology | $20,077,020 | $2,552,404 | $— | $22,629,424 |
Health care | 12,778,552 | 2,338,048 | — | 15,116,600 |
Financials | 10,790,028 | 1,031,613 | 17,395 | 11,839,036 |
Industrials | 10,205,923 | 1,501,768 | — | 11,707,691 |
Consumer staples | 8,843,666 | 2,338,259 | — | 11,181,925 |
Consumer discretionary | 7,773,151 | 2,679,603 | — | 10,452,754 |
Communication services | 7,371,834 | 381,722 | — | 7,753,556 |
Materials | 5,770,692 | 391,489 | — | 6,162,181 |
Energy | 5,082,356 | 22,799 | — | 5,105,155 |
Utilities | 2,658,447 | — | — | 2,658,447 |
Real estate | 1,198,394 | — | — | 1,198,394 |
Convertible stocks | 57,326 | — | — | 57,326 |
Short-term securities | 4,079,386 | — | — | 4,079,386 |
Total | $96,686,775 | $13,237,705 | $17,395 | $109,941,875 |
Key to abbreviations |
ADR = American Depositary Receipts |
CAD = Canadian dollars |
REIT = Real Estate Investment Trust |
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.
MFGEFP1-010-0523O-S89777
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