Fundamental Investors®
Investment portfolioMarch 31, 2024unaudited
Common stocks 97.51% Information technology 25.76% | Shares | Value (000) | |
Broadcom, Inc. | 6,620,985 | $8,775,520 | |
Microsoft Corp. | 20,380,614 | 8,574,532 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | 54,535,000 | 1,327,441 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 8,886,015 | 1,208,943 | |
Salesforce, Inc. | 5,681,072 | 1,711,025 | |
Micron Technology, Inc. | 14,508,562 | 1,710,414 | |
Applied Materials, Inc. | 7,073,970 | 1,458,865 | |
Arista Networks, Inc.1 | 4,630,267 | 1,342,685 | |
ASML Holding NV | 1,143,854 | 1,101,017 | |
ASML Holding NV (ADR) | 34,233 | 33,222 | |
NVIDIA Corp. | 1,216,460 | 1,099,145 | |
MicroStrategy, Inc., Class A1,2 | 611,673 | 1,042,633 | |
Apple, Inc. | 5,647,214 | 968,384 | |
SK hynix, Inc. | 6,537,375 | 888,646 | |
Motorola Solutions, Inc. | 1,798,122 | 638,297 | |
TE Connectivity, Ltd. | 3,607,427 | 523,943 | |
Shopify, Inc., Class A, subordinate voting shares1 | 6,639,162 | 512,344 | |
KLA Corp. | 594,101 | 415,021 | |
Advanced Micro Devices, Inc.1 | 1,558,000 | 281,203 | |
SAP SE | 1,411,199 | 274,745 | |
ServiceNow, Inc.1 | 320,200 | 244,121 | |
NetApp, Inc. | 1,655,431 | 173,771 | |
Dell Technologies, Inc., Class C | 1,500,000 | 171,165 | |
Intel Corp. | 3,646,331 | 161,058 | |
ON Semiconductor Corp.1 | 2,118,208 | 155,794 | |
CDW Corp. | 600,000 | 153,468 | |
Keysight Technologies, Inc.1 | 969,100 | 151,548 | |
Wolfspeed, Inc.1 | 4,495,328 | 132,612 | |
Samsung Electronics Co., Ltd. | 706,742 | 43,258 | |
Crane NXT, Co. | 350,474 | 21,694 | |
35,296,514 | |||
Industrials 13.62% | |||
TransDigm Group, Inc. | 2,598,527 | 3,200,346 | |
RTX Corp. | 12,521,112 | 1,221,184 | |
Caterpillar, Inc. | 2,997,324 | 1,098,309 | |
General Electric Co. | 5,991,846 | 1,051,749 | |
Carrier Global Corp. | 16,738,868 | 973,030 | |
Ryanair Holdings PLC (ADR) | 6,092,560 | 887,016 | |
ITT, Inc.3 | 5,555,875 | 755,766 | |
Regal Rexnord Corp.3 | 4,185,471 | 753,803 | |
Airbus SE, non-registered shares | 3,560,947 | 655,860 | |
United Rentals, Inc. | 868,520 | 626,298 | |
Quanta Services, Inc. | 2,300,854 | 597,762 | |
Boeing Co.1 | 3,084,379 | 595,254 | |
Dayforce, Inc.1,3 | 8,447,370 | 559,300 |
Fundamental Investors — Page 1 of 9
unaudited
Common stocks (continued) Industrials (continued) | Shares | Value (000) | |
Ingersoll-Rand, Inc. | 5,636,975 | $535,231 | |
Equifax, Inc. | 1,680,115 | 449,464 | |
TFI International, Inc. (CAD denominated) | 2,383,356 | 380,056 | |
Schneider Electric SE | 1,598,648 | 361,584 | |
Northrop Grumman Corp. | 677,012 | 324,059 | |
Waste Connections, Inc. | 1,831,555 | 315,046 | |
Rolls-Royce Holdings PLC1 | 58,476,279 | 314,930 | |
Waste Management, Inc. | 1,291,115 | 275,201 | |
Lifco AB, Class B | 9,000,000 | 235,090 | |
CSX Corp. | 5,745,938 | 213,002 | |
Paychex, Inc. | 1,512,383 | 185,721 | |
United Airlines Holdings, Inc.1 | 3,677,073 | 176,058 | |
Safran SA | 713,604 | 161,712 | |
Huntington Ingalls Industries, Inc. | 544,353 | 158,663 | |
Eaton Corp. PLC | 505,500 | 158,060 | |
Union Pacific Corp. | 592,898 | 145,811 | |
FedEx Corp. | 484,753 | 140,452 | |
TransUnion | 1,752,862 | 139,878 | |
Crane Co. | 979,087 | 132,304 | |
Veralto Corp. | 1,362,838 | 120,829 | |
Sandvik AB | 5,245,563 | 116,486 | |
Dun & Bradstreet Holdings, Inc. | 10,885,380 | 109,289 | |
Comfort Systems USA, Inc. | 335,739 | 106,668 | |
LIXIL Corp.2 | 8,155,400 | 101,121 | |
DSV A/S | 448,428 | 72,772 | |
Paylocity Holding Corp.1 | 418,646 | 71,949 | |
IMCD NV | 399,416 | 70,389 | |
SS&C Technologies Holdings, Inc. | 1,060,872 | 68,288 | |
HEICO Corp., Class A | 228,917 | 35,239 | |
Concentrix Corp. | 276,137 | 18,286 | |
18,669,315 | |||
Health care 12.66% | |||
Novo Nordisk AS, Class B | 19,681,542 | 2,508,782 | |
UnitedHealth Group, Inc. | 4,825,526 | 2,387,188 | |
Eli Lilly and Co. | 2,609,413 | 2,030,019 | |
Centene Corp.1 | 15,502,423 | 1,216,630 | |
Thermo Fisher Scientific, Inc. | 2,032,018 | 1,181,029 | |
AstraZeneca PLC | 6,536,753 | 880,974 | |
Molina Healthcare, Inc.1 | 1,919,846 | 788,730 | |
Vertex Pharmaceuticals, Inc.1 | 1,488,797 | 622,332 | |
Bristol-Myers Squibb Co. | 9,645,145 | 523,056 | |
Abbott Laboratories | 4,380,146 | 497,847 | |
Gilead Sciences, Inc. | 6,714,428 | 491,832 | |
Regeneron Pharmaceuticals, Inc.1 | 439,970 | 423,467 | |
CVS Health Corp. | 4,935,343 | 393,643 | |
AbbVie, Inc. | 1,651,156 | 300,676 | |
Amgen, Inc. | 956,338 | 271,906 | |
Cooper Companies, Inc. | 2,620,168 | 265,842 | |
Exact Sciences Corp.1 | 3,800,000 | 262,428 | |
Danaher Corp. | 942,188 | 235,283 | |
Elevance Health, Inc. | 427,466 | 221,658 | |
DexCom, Inc.1 | 1,471,109 | 204,043 | |
Alnylam Pharmaceuticals, Inc.1 | 1,364,643 | 203,946 | |
Illumina, Inc.1 | 1,435,712 | 197,152 |
Fundamental Investors — Page 2 of 9
unaudited
Common stocks (continued) Health care (continued) | Shares | Value (000) | |
Johnson & Johnson | 1,217,957 | $192,669 | |
Mettler-Toledo International, Inc.1 | 137,509 | 183,064 | |
Jazz Pharmaceuticals PLC1 | 1,414,511 | 170,335 | |
Humana, Inc. | 468,814 | 162,547 | |
Pfizer, Inc. | 5,183,800 | 143,851 | |
Sarepta Therapeutics, Inc.1 | 998,571 | 129,275 | |
Rede D’Or Sao Luiz SA | 23,367,000 | 117,921 | |
agilon health, Inc.1 | 14,313,302 | 87,311 | |
McKesson Corp. | 99,630 | 53,486 | |
17,348,922 | |||
Financials 11.46% | |||
Visa, Inc., Class A | 6,263,359 | 1,747,978 | |
Apollo Asset Management, Inc. | 10,925,736 | 1,228,599 | |
Fiserv, Inc.1 | 6,431,227 | 1,027,839 | |
JPMorgan Chase & Co. | 4,902,282 | 981,927 | |
Mastercard, Inc., Class A | 1,772,480 | 853,573 | |
Blackstone, Inc. | 5,905,214 | 775,768 | |
Aon PLC, Class A | 2,230,532 | 744,373 | |
KKR & Co., Inc. | 7,000,057 | 704,066 | |
HDFC Bank, Ltd. | 23,807,000 | 413,299 | |
HDFC Bank, Ltd. (ADR) | 2,402,957 | 134,493 | |
Marsh & McLennan Companies, Inc. | 2,461,176 | 506,953 | |
Wells Fargo & Co. | 7,712,898 | 447,040 | |
Brookfield Corp., Class A | 10,310,455 | 431,699 | |
Blue Owl Capital, Inc., Class A | 22,001,827 | 414,954 | |
OneMain Holdings, Inc.3 | 7,787,180 | 397,847 | |
Intercontinental Exchange, Inc. | 2,887,568 | 396,838 | |
Goldman Sachs Group, Inc. | 929,155 | 388,099 | |
Progressive Corp. | 1,578,245 | 326,413 | |
Citizens Financial Group, Inc. | 8,800,108 | 319,356 | |
BlackRock, Inc. | 359,929 | 300,073 | |
Arthur J. Gallagher & Co. | 1,189,742 | 297,483 | |
Synchrony Financial | 6,670,093 | 287,614 | |
CME Group, Inc., Class A | 1,249,986 | 269,110 | |
Arch Capital Group, Ltd.1 | 2,889,960 | 267,148 | |
Discover Financial Services | 1,900,000 | 249,071 | |
Ares Management Corp., Class A | 1,712,648 | 227,748 | |
Fidelity National Information Services, Inc. | 3,049,875 | 226,240 | |
RenaissanceRe Holdings, Ltd. | 781,580 | 183,695 | |
Capital One Financial Corp. | 1,208,418 | 179,921 | |
Chubb, Ltd. | 609,971 | 158,062 | |
Block, Inc., Class A1 | 1,852,291 | 156,667 | |
S&P Global, Inc. | 338,367 | 143,958 | |
Brown & Brown, Inc. | 1,400,000 | 122,556 | |
Edenred SA | 2,187,764 | 116,739 | |
China Merchants Bank Co., Ltd., Class H | 21,104,000 | 83,452 | |
Truist Financial Corp. | 2,009,647 | 78,336 | |
Morgan Stanley | 685,624 | 64,558 | |
Charles Schwab Corp. (The) | 402,161 | 29,092 | |
Checkout Payments Group, Ltd., Class B1,4,5 | 159,760 | 15,912 | |
15,698,549 |
Fundamental Investors — Page 3 of 9
unaudited
Common stocks (continued) Consumer discretionary 8.25% | Shares | Value (000) | |
Amazon.com, Inc.1 | 15,096,184 | $2,723,050 | |
Restaurant Brands International, Inc. | 13,016,639 | 1,034,172 | |
Home Depot, Inc. | 2,126,289 | 815,644 | |
Booking Holdings, Inc. | 205,776 | 746,531 | |
Evolution AB | 5,866,620 | 729,272 | |
Coupang, Inc., Class A1 | 32,361,721 | 575,715 | |
D.R. Horton, Inc. | 2,840,997 | 467,486 | |
YUM! Brands, Inc. | 3,111,486 | 431,408 | |
Five Below, Inc.1 | 1,884,498 | 341,810 | |
Chipotle Mexican Grill, Inc.1 | 113,894 | 331,064 | |
MercadoLibre, Inc.1 | 213,461 | 322,745 | |
Flutter Entertainment PLC1 | 1,439,907 | 284,367 | |
LVMH Moët Hennessy-Louis Vuitton SE | 297,598 | 267,671 | |
Hilton Worldwide Holdings, Inc. | 1,245,836 | 265,749 | |
Amadeus IT Group SA, Class A, non-registered shares | 4,023,197 | 257,995 | |
NIKE, Inc., Class B | 2,423,853 | 227,794 | |
Burlington Stores, Inc.1 | 751,352 | 174,456 | |
Galaxy Entertainment Group, Ltd. | 34,404,000 | 172,747 | |
Kering SA | 394,035 | 155,737 | |
Trainline PLC1,3 | 30,885,681 | 144,391 | |
Royal Caribbean Cruises, Ltd.1 | 962,068 | 133,737 | |
B&M European Value Retail SA | 16,116,733 | 111,025 | |
Tractor Supply Co. | 422,329 | 110,532 | |
Floor & Decor Holdings, Inc., Class A1 | 795,691 | 103,137 | |
Caesars Entertainment, Inc.1 | 2,081,255 | 91,034 | |
Aptiv PLC1 | 969,180 | 77,195 | |
Domino’s Pizza, Inc. | 139,796 | 69,462 | |
General Motors Co. | 1,492,897 | 67,703 | |
Mattel, Inc.1 | 1,470,586 | 29,132 | |
Ferrari NV (EUR denominated) | 58,482 | 25,490 | |
Churchill Downs, Inc. | 177,351 | 21,947 | |
11,310,198 | |||
Communication services 7.38% | |||
Alphabet, Inc., Class C1 | 22,611,110 | 3,442,768 | |
Alphabet, Inc., Class A1 | 2,753,147 | 415,532 | |
Meta Platforms, Inc., Class A | 7,427,869 | 3,606,825 | |
Netflix, Inc.1 | 1,332,750 | 809,419 | |
Publicis Groupe SA | 5,819,280 | 634,405 | |
Comcast Corp., Class A | 13,629,411 | 590,835 | |
Charter Communications, Inc., Class A1 | 1,013,844 | 294,654 | |
Warner Music Group Corp., Class A | 6,646,922 | 219,481 | |
Take-Two Interactive Software, Inc.1 | 707,255 | 105,020 | |
10,118,939 | |||
Consumer staples 7.26% | |||
Philip Morris International, Inc. | 33,641,475 | 3,082,232 | |
Dollar Tree Stores, Inc.1 | 8,015,602 | 1,067,277 | |
British American Tobacco PLC | 31,831,750 | 966,645 | |
British American Tobacco PLC (ADR) | 550,760 | 16,798 | |
Dollar General Corp. | 5,413,349 | 844,807 | |
Performance Food Group Co.1,3 | 10,050,225 | 750,149 | |
Altria Group, Inc. | 14,899,279 | 649,907 | |
Keurig Dr Pepper, Inc. | 15,256,352 | 467,912 | |
Nestlé SA | 4,396,281 | 466,756 |
Fundamental Investors — Page 4 of 9
unaudited
Common stocks (continued) Consumer staples (continued) | Shares | Value (000) | |
Constellation Brands, Inc., Class A | 1,220,745 | $331,750 | |
Bunge Global SA | 2,745,718 | 281,491 | |
Church & Dwight Co., Inc. | 2,151,104 | 224,382 | |
Target Corp. | 1,116,367 | 197,831 | |
Monster Beverage Corp.1 | 3,175,210 | 188,226 | |
Procter & Gamble Co. | 1,087,339 | 176,421 | |
Imperial Brands PLC | 6,533,095 | 145,950 | |
Anheuser-Busch InBev SA/NV | 776,140 | 47,276 | |
Danone SA | 699,156 | 45,174 | |
9,950,984 | |||
Energy 4.11% | |||
Canadian Natural Resources, Ltd. (CAD denominated) | 18,455,996 | 1,407,891 | |
Schlumberger NV | 12,684,526 | 695,239 | |
ConocoPhillips | 4,779,766 | 608,369 | |
Cenovus Energy, Inc. (CAD denominated) | 29,272,857 | 585,219 | |
Exxon Mobil Corp. | 4,750,706 | 552,222 | |
EOG Resources, Inc. | 3,259,893 | 416,745 | |
HF Sinclair Corp. | 4,350,207 | 262,622 | |
TC Energy Corp. (CAD denominated)2 | 6,121,252 | 246,016 | |
Halliburton Co. | 5,308,238 | 209,251 | |
Chevron Corp. | 1,309,954 | 206,632 | |
EQT Corp. | 4,944,817 | 183,304 | |
Equitrans Midstream Corp. | 13,947,191 | 174,200 | |
TotalEnergies SE | 1,155,833 | 79,145 | |
5,626,855 | |||
Materials 3.32% | |||
Linde PLC | 1,405,136 | 652,433 | |
Grupo México, SAB de CV, Series B | 106,915,100 | 631,091 | |
Wheaton Precious Metals Corp. | 10,238,339 | 482,533 | |
Glencore PLC | 78,864,769 | 433,294 | |
Celanese Corp. | 1,891,913 | 325,144 | |
Freeport-McMoRan, Inc. | 5,491,968 | 258,232 | |
LyondellBasell Industries NV | 2,451,300 | 250,719 | |
Vale SA, ordinary nominative shares | 17,717,000 | 214,883 | |
Vale SA (ADR), ordinary nominative shares | 1,122,360 | 13,682 | |
Sherwin-Williams Co. | 656,433 | 227,999 | |
Mosaic Co. | 6,909,668 | 224,288 | |
Royal Gold, Inc. | 1,804,973 | 219,864 | |
Westlake Corp. | 1,321,882 | 201,984 | |
Vulcan Materials Co. | 500,000 | 136,460 | |
First Quantum Minerals, Ltd. | 12,430,558 | 133,616 | |
Lundin Mining Corp. | 12,940,278 | 132,407 | |
Rio Tinto PLC | 251,120 | 15,901 | |
4,554,530 | |||
Utilities 2.48% | |||
Constellation Energy Corp. | 5,121,875 | 946,779 | |
FirstEnergy Corp. | 20,843,220 | 804,965 | |
PG&E Corp. | 26,106,766 | 437,549 | |
AES Corp. | 18,090,232 | 324,358 | |
CMS Energy Corp. | 3,403,704 | 205,379 | |
Brookfield Infrastructure Partners, LP | 6,102,467 | 190,568 | |
CenterPoint Energy, Inc. | 5,871,526 | 167,280 |
Fundamental Investors — Page 5 of 9
unaudited
Common stocks (continued) Utilities (continued) | Shares | Value (000) | |
Southern Co. (The) | 2,282,641 | $163,757 | |
Edison International | 2,167,661 | 153,319 | |
3,393,954 | |||
Real estate 1.21% | |||
Welltower, Inc. REIT | 5,289,298 | 494,232 | |
VICI Properties, Inc. REIT | 14,558,968 | 433,712 | |
Extra Space Storage, Inc. REIT | 2,412,519 | 354,640 | |
Rexford Industrial Realty, Inc. REIT | 5,823,000 | 292,897 | |
Crown Castle, Inc. REIT | 789,709 | 83,575 | |
1,659,056 | |||
Total common stocks (cost: $72,301,533,000) | 133,627,816 | ||
Short-term securities 2.69% Money market investments 2.35% | |||
Capital Group Central Cash Fund 5.37%3,6 | 32,119,745 | 3,210,690 | |
Money market investments purchased with collateral from securities on loan 0.34% | |||
Capital Group Central Cash Fund 5.37%3,6,7 | 2,739,770 | 273,867 | |
Invesco Short-Term Investments Trust – Government & Agency Portfolio, Institutional Class 5.23%6,7 | 100,092,926 | 100,093 | |
State Street Institutional U.S. Government Money Market Fund, Institutional Class 5.23%6,7 | 95,191,827 | 95,192 | |
469,152 | |||
Total short-term securities (cost: $3,681,216,000) | 3,679,842 | ||
Total investment securities 100.20% (cost: $75,982,749,000) | 137,307,658 | ||
Other assets less liabilities (0.20)% | (270,990 ) | ||
Net assets 100.00% | $137,036,668 |
Investments in affiliates3
Value at 1/1/2024 (000) | Additions (000) | Reductions (000) | Net realized gain (loss) (000) | Net unrealized appreciation (depreciation) (000) | Value at 3/31/2024 (000) | Dividend or interest income (000) | |
Common stocks 2.46% | |||||||
Industrials 1.51% | |||||||
ITT, Inc. | $663,488 | $— | $594 | $198 | $92,674 | $755,766 | $1,772 |
Regal Rexnord Corp. | 587,426 | 33,360 | 468 | 239 | 133,246 | 753,803 | 1,465 |
Dayforce, Inc.1,8 | 436,832 | 134,118 | 481 | 156 | (11,325 ) | 559,300 | — |
2,068,869 | |||||||
Financials 0.29% | |||||||
OneMain Holdings, Inc. | 340,119 | 43,513 | 313 | 18 | 14,510 | 397,847 | 7,787 |
Consumer discretionary 0.11% | |||||||
Trainline PLC1 | 127,577 | — | 1,594 | (309 ) | 18,717 | 144,391 | — |
Consumer staples 0.55% | |||||||
Performance Food Group Co.1 | 695,561 | — | 633 | 178 | 55,043 | 750,149 | — |
Fundamental Investors — Page 6 of 9
unaudited
Investments in affiliates3 (continued)
Value at 1/1/2024 (000) | Additions (000) | Reductions (000) | Net realized gain (loss) (000) | Net unrealized appreciation (depreciation) (000) | Value at 3/31/2024 (000) | Dividend or interest income (000) | |
Materials 0.00% | |||||||
Mosaic Co.9 | $585,581 | $— | $298,288 | $(186,077 ) | $123,072 | $— | $1,761 |
Utilities 0.00% | |||||||
AES Corp.9 | 719,867 | 63,951 | 345,255 | (68,219 ) | (45,986 ) | — | 6,451 |
Total common stocks | 3,361,256 | ||||||
Convertible stocks 0.00% | |||||||
Utilities 0.00% | |||||||
AES Corp., convertible preferred units, 6.875% 2/15/202410 | 48,695 | — | 63,988 | (17 ) | 15,310 | — | 1,099 |
Short-term securities 2.55% | |||||||
Money market investments 2.35% | |||||||
Capital Group Central Cash Fund 5.37%6 | 2,550,860 | 5,749,136 | 5,088,043 | (17 ) | (1,246 ) | 3,210,690 | 42,875 |
Money market investments purchased with collateral from securities on loan 0.20% | |||||||
Capital Group Central Cash Fund 5.37%6,7 | 18,867 | 255,000 11 | 273,867 | — 12 | |||
Total short-term securities | 3,484,557 | ||||||
Total 5.01% | $(253,850 ) | $394,015 | $6,845,813 | $63,210 |
Restricted securities5
Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets | |
Checkout Payments Group, Ltd., Class B1,4 | 1/11/2022 | $49,613 | $15,912 | .01 % |
1 | Security did not produce income during the last 12 months. |
2 | All or a portion of this security was on loan. The total value of all such securities was $504,055,000, which represented .37% of the net assets of the fund. |
3 | 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. |
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 $15,912,000, which represented .01% of the net assets of the fund. |
6 | Rate represents the seven-day yield at 3/31/2024. |
7 | Security purchased with cash collateral from securities on loan. |
8 | This security changed its name during the reporting period. |
9 | Affiliated issuer during the reporting period but no longer an affiliate at 3/31/2024. Refer to the investment portfolio for the security value at 3/31/2024. |
10 | Affiliated issuer during the reporting period but no longer held at 3/31/2024. |
11 | Represents net activity. |
12 | 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.
Fundamental Investors — Page 7 of 9
unaudited
Equity securities, including depositary receipts, are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fixed-income securities, including short-term securities, are generally valued at evaluated prices obtained from third-party pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds, notes & loans; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds“), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by the fund’s investment adviser and approved by the board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security, 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, 2024 (dollars in thousands):
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Common stocks: | ||||
Information technology | $35,296,514 | $— | $— | $35,296,514 |
Industrials | 18,669,315 | — | — | 18,669,315 |
Health care | 17,348,922 | — | — | 17,348,922 |
Financials | 15,682,637 | — | 15,912 | 15,698,549 |
Consumer discretionary | 11,310,198 | — | — | 11,310,198 |
Communication services | 10,118,939 | — | — | 10,118,939 |
Consumer staples | 9,950,984 | — | — | 9,950,984 |
Energy | 5,626,855 | — | — | 5,626,855 |
Materials | 4,554,530 | — | — | 4,554,530 |
Utilities | 3,393,954 | — | — | 3,393,954 |
Real estate | 1,659,056 | — | — | 1,659,056 |
Short-term securities | 3,679,842 | — | — | 3,679,842 |
Total | $137,291,746 | $— | $15,912 | $137,307,658 |
Key to abbreviation(s) |
ADR = American Depositary Receipts |
CAD = Canadian dollars |
EUR = Euros |
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.
© 2024 Capital Group. All rights reserved.
MFGEFP1-010-0524O-S96460
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