Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.
The total annual fund operating expense ratio was 0.73% for Class A shares as of the prospectus dated May 1, 2012.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.
Results for other share classes can be found on page 31.
Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
Over the six months ended August 31, 2012, the U.S. stock market was volatile amid concerns about the fallout from Europe’s fiscal problems, mixed signals from the domestic economy, and a slowdown in corporate profit growth. However, stocks finished the period higher, in part due to investors’ expectations for a third round of stimulus by the Federal Reserve.
Against this backdrop, AMCAP Fund had a total return of 0.9%, compared with 4.1% for the unmanaged Standard & Poor’s 500 Composite Index — a broad measure of mostly large U.S. stocks — and 1.9% for the Lipper Growth Funds Index, as shown in the chart below.
For the 12 months ended August 31, 2012, AMCAP posted a total return of 13.6%, matching the Lipper Growth Funds Index, while the S&P 500 advanced 18.0%. Over longer periods, the fund exceeded both indexes. For the past five years, AMCAP had an average annual total return of 1.8%, compared with 1.3% for the S&P 500 and 0.4% for the Lipper index. Over its 45-year lifetime, the fund had an average annual total return of 11.1%, compared with 9.5% for the S&P 500 and 8.5% for the Lipper index.
Information technology has historically been an important sector for AMCAP and remains so, but in the recent period the health care sector rose to 18.2% of the fund, compared to information technology at 16.3%. The reason for this had to do with a strong showing from several of our health care holdings as well as additional purchases in the sector. Most holdings in the health care sector continue to do well, especially those in the biotechnology industry. Top 10 holdings Gilead Sciences (now the fund’s largest holding), Biogen Idec and Amgen remain solid growth companies coming out with promising new drugs that have either already been approved by the Food and Drug Administration or are expected to be soon.
The information technology sector had mixed results. For instance, Apple and Oracle, which are among the fund’s 10 largest holdings, had positive returns, with the former benefiting from continuing growth in its base business as well as rising expectations for the latest version of its iPhone. However, shares of Texas Instruments and Adobe Systems declined.
Elsewhere, the energy and materials sectors (which together account for 13.5% of the fund) detracted from returns as the price of oil and other commodities declined amid a slowdown in global demand while supplies remain high. Among the largest detractors were oil and gas producer Apache in the energy sector and specialty chemicals company Celanese in the materials sector.
The fund’s cash position, which increased from 11.5% to 14.8% (including other short-term securities), held back returns as the broader market advanced. However, given the risk of continued volatility in the market, we believe that there is some value to having this “dry powder” in the fund in the event that better market opportunities present themselves. Among the risks that remain are uncertainty about the outcome of the debt crisis in Europe as well as the debt and spending issues here in the U.S.
In periods like this, our long-term focus on companies and their inherent worth is critical to helping us identify and invest in those that represent a good value over the long run. We thank you for taking a long-term perspective, which is particularly important at this time in order to separate short-term price fluctuations from fundamental growth opportunities. We appreciate your support of these efforts in AMCAP Fund.
/s/ Claudia P. Huntington
Claudia P. Huntington
/s/ Timothy D. Armour
Timothy D. Armour
For current information about the fund, visit americanfunds.com.
Notes to financial statements
unaudited
AMCAP Fund (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks long-term growth of capital by investing primarily in U.S. companies that have solid long-term growth records and the potential for good future growth.
The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are further described below:
| Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
| Classes A and 529-A | Up to 5.75% | None (except 1% for certain redemptions within one year of purchase without an initial sales charge) | None |
| Classes B and 529-B* | None | Declines from 5% to 0% for redemptions within six years of purchase | Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years |
| Class C | None | 1% for redemptions within one year of purchase | Class C converts to Class F-1 after 10 years |
| Class 529-C | None | 1% for redemptions within one year of purchase | None |
| Class 529-E | None | None | None |
| Classes F-1, F-2 and 529-F-1 | None | None | None |
| Classes R-1, R-2, R-3, R-4, R-5 and R-6 | None | None | None |
*Class B and 529-B shares of the fund are not available for purchase.
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
| 2. | Significant accounting policies |
The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations – Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.
Dividends and distributions to shareholders – Dividends and distributions paid to shareholders are recorded on the ex-dividend date.
Currency translation – 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. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
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.
Methods and inputs –The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, 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 |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be 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 above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by fund’s investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund’s board of trustees as further described below. 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 with supplemental information to support the changes. 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.
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 August 31, 2012 (dollars in thousands):
| | | Investment securities | |
| | | Level 1(*) | | | Level 2 | | | Level 3 | | | Total | |
| Assets: | | | | | | | | | | | | |
| Common stocks: | | | | | | | | | | | | |
| Health care | | $ | 4,487,088 | | | $ | - | | | $ | - | | | $ | 4,487,088 | |
| Information technology | | | 4,025,015 | | | | - | | | | - | | | | 4,025,015 | |
| Consumer discretionary | | | 3,352,433 | | | | - | | | | - | | | | 3,352,433 | |
| Energy | | | 2,284,544 | | | | - | | | | - | | | | 2,284,544 | |
| Industrials | | | 2,137,026 | | | | - | | | | - | | | | 2,137,026 | |
| Financials | | | 1,538,476 | | | | - | | | | - | | | | 1,538,476 | |
| Materials | | | 1,034,292 | | | | - | | | | - | | | | 1,034,292 | |
| Consumer staples | | | 992,459 | | | | - | | | | - | | | | 992,459 | |
| Telecommunication services | | | 518,646 | | | | - | | | | - | | | | 518,646 | |
| Miscellaneous | | | 596,698 | | | | - | | | | - | | | | 596,698 | |
| Bonds & notes | | | - | | | | 36,208 | | | | - | | | | 36,208 | |
| Short-term securities | | | - | | | | 3,653,327 | | | | - | | | | 3,653,327 | |
| Total | | $ | 20,966,677 | | | $ | 3,689,535 | | | $ | - | | | $ | 24,656,212 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| * Securities with a market value of $629,185,000, which represented 2.55% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. |
Investing in the fund may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.
Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.
Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.
| 5. | Taxation and distributions |
Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended August 31, 2012, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.
The fund is not subject to examination by U.S. federal tax authorities for tax years before 2008 and by state tax authorities for tax years before 2007.
Non-U.S. taxation – Dividend income is recorded net of non-U.S. taxes paid.
Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; deferred expenses; and net capital losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.
The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of February 29, 2012, the components of distributable earnings on a tax basis were as follows:
| | (dollars in thousands) | |
| Undistributed ordinary income | | $ | 97,454 | |
| Capital loss carryforward expiring 2018* | | | (872,498 | ) |
| | | | | |
*The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after February 28, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses
As of August 31, 2012, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:
| | | (dollars in thousands) | |
| Gross unrealized appreciation on investment securities | | | 6,172,699 | |
| Gross unrealized depreciation on investment securities | | | (713,705 | ) |
| Net unrealized appreciation on investment securities | | | 5,458,994 | |
| Cost of investment securities | | | 19,197,218 | |
Tax-basis distributions paid to shareholders from ordinary income were as follows (dollars in thousands):
| Share class | | Six months ended August 31, 2012 | | | Year ended February 29, 2012 | |
| Class A | | $ | 61,089 | | | $ | 53,808 | |
| Class B | | | - | | | | - | |
| Class C | | | - | | | | - | |
| Class F-1 | | | 7,357 | | | | 6,172 | |
| Class F-2 | | | 6,626 | | | | 5,015 | |
| Class 529-A | | | 2,923 | | | | 2,302 | |
| Class 529-B | | | - | | | | - | |
| Class 529-C | | | - | | | | - | |
| Class 529-E | | | 64 | | | | 44 | |
| Class 529-F-1 | | | 243 | | | | 191 | |
| Class R-1 | | | - | | | | - | |
| Class R-2 | | | - | | | | - | |
| Class R-3 | | | 1,114 | | | | 660 | |
| Class R-4 | | | 2,137 | | | | 1,951 | |
| Class R-5 | | | 5,966 | | | | 5,700 | |
| Class R-6 | | | 10,154 | | | | 6,260 | |
| Total | | $ | 97,673 | | | $ | 82,103 | |
| 6. | Fees and transactions with related parties |
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares, and American Funds Service Company® ("AFS"), the fund’s transfer agent.
Investment advisory services – The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.485% on the first $1 billion of daily net assets and decreasing to 0.290% on such assets in excess of $27 billion. For the six months ended August 31, 2012, the investment advisory services fee was $38,918,000, which was equivalent to an annualized rate of 0.320% of average daily net assets.
Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:
Distribution services – The fund has plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
For Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25% is not exceeded. As of August 31, 2012, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.
| Share class | Currently approved limits | Plan limits |
| Class A | 0.25% | 0.25% |
| Class 529-A | 0.25 | 0.50 |
| Classes B and 529-B | 1.00 | 1.00 |
| Classes C, 529-C and R-1 | 1.00 | 1.00 |
| Class R-2 | 0.75 | 1.00 |
| Classes 529-E and R-3 | 0.50 | 0.75 |
| Classes F-1, 529-F-1 and R-4 | 0.25 | 0.50 |
Transfer agent services – The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
Administrative services – The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, F, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, Class A shares pay an annual fee of 0.01% and Class C, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets.
529 plan services – Each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.
Class-specific expenses under the agreements described above for the six months ended August 31, 2012, were as follows (dollars in thousands):
| Share class | | Distribution services | | | Transfer agent services | | | Administrative services | | | 529 plan services | |
| Class A | | $ | 17,321 | | | $ | 12,291 | | | $ | 754 | | | Not applicable | |
| Class B | | | 1,616 | | | | 266 | | | Not applicable | | | Not applicable | |
| Class C | | | 5,562 | | | | 892 | | | | 279 | | | Not applicable | |
| Class F-1 | | | 2,181 | | | | 829 | | | | 438 | | | Not applicable | |
| Class F-2 | | Not applicable | | | | 548 | | | | 254 | | | Not applicable | |
| Class 529-A | | | 790 | | | | 481 | | | | 188 | | | $ | 374 | |
| Class 529-B | | | 224 | | | | 32 | | | | 11 | | | | 23 | |
| Class 529-C | | | 960 | | | | 133 | | | | 48 | | | | 96 | |
| Class 529-E | | | 101 | | | | 18 | | | | 10 | | | | 20 | |
| Class 529-F-1 | | | - | | | | 27 | | | | 11 | | | | 21 | |
| Class R-1 | | | 303 | | | | 34 | | | | 15 | | | Not applicable | |
| Class R-2 | | | 1,544 | | | | 768 | | | | 104 | | | Not applicable | |
| Class R-3 | | | 1,702 | | | | 586 | | | | 171 | | | Not applicable | |
| Class R-4 | | | 660 | | | | 272 | | | | 133 | | | Not applicable | |
| Class R-5 | | Not applicable | | | | 222 | | | | 220 | | | Not applicable | |
| Class R-6 | | Not applicable | | | | 4 | | | | 343 | | | Not applicable | |
| Total class-specific expenses | | $ | 32,964 | | | $ | 17,403 | | | $ | 2,979 | | | $ | 534 | |
Trustees’ deferred compensation –Trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $250,000, shown on the accompanying financial statements, includes $183,000 in current fees (either paid in cash or deferred) and a net increase of $67,000 in the value of the deferred amounts.
Affiliated officers and trustees – Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or trustees received any compensation directly from the fund.
| 7. | Capital share transactions |
Capital share transactions in the fund were as follows (dollars and shares in thousands):
| | | Sales(*) | | | Reinvestments of dividends | | | Repurchases(*) | | | Net increase (decrease) | |
| Share class | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | |
| Six months ended August 31, 2012 | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,024,397 | | | | 49,842 | | | $ | 59,400 | | | | 2,974 | | | $ | (1,058,086 | ) | | | (51,436 | ) | | $ | 25,711 | | | | 1,380 | |
| Class B | | | 7,027 | | | | 359 | | | | - | | | | - | | | | (102,207 | ) | | | (5,256 | ) | | | (95,180 | ) | | | (4,897 | ) |
| Class C | | | 82,025 | | | | 4,223 | | | | - | | | | - | | | | (126,355 | ) | | | (6,535 | ) | | | (44,330 | ) | | | (2,312 | ) |
| Class F-1 | | | 259,928 | | | | 12,740 | | | | 7,194 | | | | 362 | | | | (221,774 | ) | | | (10,871 | ) | | | 45,348 | | | | 2,231 | |
| Class F-2 | | | 198,833 | | | | 9,699 | | | | 6,425 | | | | 322 | | | | (85,998 | ) | | | (4,178 | ) | | | 119,260 | | | | 5,843 | |
| Class 529-A | | | 71,900 | | | | 3,515 | | | | 2,923 | | | | 147 | | | | (39,345 | ) | | | (1,924 | ) | | | 35,478 | | | | 1,738 | |
| Class 529-B | | | 845 | | | | 43 | | | | - | | | | - | | | | (9,660 | ) | | | (497 | ) | | | (8,815 | ) | | | (454 | ) |
| Class 529-C | | | 20,096 | | | | 1,027 | | | | - | | | | - | | | | (11,757 | ) | | | (602 | ) | | | 8,339 | | | | 425 | |
| Class 529-E | | | 3,152 | | | | 156 | | | | 64 | | | | 3 | | | | (1,961 | ) | | | (97 | ) | | | 1,255 | | | | 62 | |
| Class 529-F-1 | | | 4,347 | | | | 210 | | | | 242 | | | | 12 | | | | (2,931 | ) | | | (143 | ) | | | 1,658 | | | | 79 | |
| Class R-1 | | | 12,433 | | | | 628 | | | | - | | | | - | | | | (8,751 | ) | | | (448 | ) | | | 3,682 | | | | 180 | |
| Class R-2 | | | 55,921 | | | | 2,832 | | | | - | | | | - | | | | (62,343 | ) | | | (3,165 | ) | | | (6,422 | ) | | | (333 | ) |
| Class R-3 | | | 134,332 | | | | 6,660 | | | | 1,113 | | | | 57 | | | | (99,987 | ) | | | (4,937 | ) | | | 35,458 | | | | 1,780 | |
| Class R-4 | | | 125,257 | | | | 6,111 | | | | 2,135 | | | | 107 | | | | (100,587 | ) | | | (4,868 | ) | | | 26,805 | | | | 1,350 | |
| Class R-5 | | | 119,197 | | | | 5,773 | | | | 5,919 | | | | 295 | | | | (107,297 | ) | | | (5,241 | ) | | | 17,819 | | | | 827 | |
| Class R-6 | | | 277,606 | | | | 13,487 | | | | 10,154 | | | | 508 | | | | (102,919 | ) | | | (4,961 | ) | | | 184,841 | | | | 9,034 | |
| Total net increase | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (decrease) | | $ | 2,397,296 | | | | 117,305 | | | $ | 95,569 | | | | 4,787 | | | $ | (2,141,958 | ) | | | (105,159 | ) | | $ | 350,907 | | | | 16,933 | |
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| Year ended February 29, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 2,007,599 | | | | 104,478 | | | $ | 51,984 | | | | 2,725 | | | $ | (2,582,400 | ) | | | (134,805 | ) | | $ | (522,817 | ) | | | (27,602 | ) |
| Class B | | | 18,713 | | | | 1,016 | | | | - | | | | - | | | | (212,019 | ) | | | (11,627 | ) | | | (193,306 | ) | | | (10,611 | ) |
| Class C | | | 158,817 | | | | 8,708 | | | | - | | | | - | | | | (263,625 | ) | | | (14,537 | ) | | | (104,808 | ) | | | (5,829 | ) |
| Class F-1 | | | 474,596 | | | | 24,844 | | | | 5,821 | | | | 306 | | | | (473,482 | ) | | | (24,817 | ) | | | 6,935 | | | | 333 | |
| Class F-2 | | | 430,886 | | | | 22,318 | | | | 4,647 | | | | 244 | | | | (175,088 | ) | | | (9,216 | ) | | | 260,445 | | | | 13,346 | |
| Class 529-A | | | 137,121 | | | | 7,176 | | | | 2,301 | | | | 121 | | | | (69,903 | ) | | | (3,661 | ) | | | 69,519 | | | | 3,636 | |
| Class 529-B | | | 2,559 | | | | 138 | | | | - | | | | - | | | | (21,743 | ) | | | (1,196 | ) | | | (19,184 | ) | | | (1,058 | ) |
| Class 529-C | | | 35,806 | | | | 1,951 | | | | - | | | | - | | | | (23,278 | ) | | | (1,271 | ) | | | 12,528 | | | | 680 | |
| Class 529-E | | | 6,531 | | | | 345 | | | | 44 | | | | 2 | | | | (3,908 | ) | | | (206 | ) | | | 2,667 | | | | 141 | |
| Class 529-F-1 | | | 13,997 | | | | 724 | | | | 191 | | | | 10 | | | | (5,469 | ) | | | (287 | ) | | | 8,719 | | | | 447 | |
| Class R-1 | | | 18,458 | | | | 993 | | | | - | | | | - | | | | (15,548 | ) | | | (834 | ) | | | 2,910 | | | | 159 | |
| Class R-2 | | | 106,946 | | | | 5,788 | | | | - | | | | - | | | | (137,269 | ) | | | (7,430 | ) | | | (30,323 | ) | | | (1,642 | ) |
| Class R-3 | | | 201,128 | | | | 10,608 | | | | 659 | | | | 35 | | | | (197,832 | ) | | | (10,456 | ) | | | 3,955 | | | | 187 | |
| Class R-4 | | | 199,452 | | | | 10,378 | | | | 1,949 | | | | 103 | | | | (182,503 | ) | | | (9,619 | ) | | | 18,898 | | | | 862 | |
| Class R-5 | | | 293,705 | | | | 15,105 | | | | 5,657 | | | | 295 | | | | (329,800 | ) | | | (17,445 | ) | | | (30,438 | ) | | | (2,045 | ) |
| Class R-6 | | | 463,837 | | | | 24,210 | | | | 6,260 | | | | 327 | | | | (107,608 | ) | | | (5,596 | ) | | | 362,489 | | | | 18,941 | |
| Total net increase | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (decrease) | | $ | 4,570,151 | | | | 238,780 | | | $ | 79,513 | | | | 4,168 | | | $ | (4,801,475 | ) | | | (253,003 | ) | | $ | (151,811 | ) | | | (10,055 | ) |
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* Includes exchanges between share classes of the fund. | | | | | | | | | | | | | | | | | | | | | |
| 8. | Investment transactions |
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $2,361,766,000 and $2,932,907,000, respectively, during the six months ended August 31, 2012.
