Investment Co Of America N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-00116

The Investment Company of America

(Exact Name of Registrant as Specified in Charter)

333 South Hope Street

Los Angeles, California 90071

(Address of Principal Executive Offices)

Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: December 31

Date of reporting period: June 30, 2013

Vincent P. Corti

The Investment Company of America

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

Copies to:

Eric A. S. Richards

O’Melveny & Myers LLP

400 South Hope Street, 10th Floor

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

ICA The Investment
Company of America^®

Semi-annual report for the six months ended June 30, 2013  

ICA seeks long-term growth of capital and income, placing greater emphasis on the potential for capital appreciation and future dividends than on current yield.

The Investment Company of America is one of more than 40 funds offered by one of the nation’s largest mutual fund families, American Funds, from Capital Group. For more than 80 years, Capital has invested with a long-term focus based on thorough research and attention to risk.

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.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended June 30, 2013:

Class A shares	1 year		5 years		10 years
Reflecting 5.75% maximum sales charge		13.05%		4.58%		6.31%

For other share class results, visit americanfunds.com and americanfundsretirement.com.

The total annual fund operating expense ratio was 0.62% for Class A shares as of the prospectus dated March 1, 2013.

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.

The fund’s 30-day yield for Class A shares as of July 31, 2013, reflecting the 5.75% maximum sales charge and calculated in accordance with the U.S. Securities and Exchange Commission formula, was 1.64%.

Investing outside the United States may be subject to risks, such as currency fluctuations, political instability, differing securities regulations and periods of illiquidity. Global diversification can help reduce these risks. 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.

Fellow investors:

Incremental recovery in the U.S. economy, strength in corporate earnings, and continued monetary support from the Federal Reserve led the U.S. stock market steadily higher in a broadly positive six months for equities and for The Investment Company of America.

The Investment Company of America gained 12.5% for the six-month period ended June 30, 2013, with distributions reinvested. In comparison, the unmanaged Standard & Poor’s 500 Composite Index, a broad measure of the U.S. stock market, returned 13.8% during the same time period. Over its nearly 80-year history, ICA had an average annual total return of 12.1% with distributions reinvested, compared with 10.7% for the S&P 500.

A return of confidence in the U.S. economy

U.S. stocks rallied sharply in the first quarter. There was progress, albeit slow, in employment figures, improvement in key housing market data and pent-up sales in autos, which fueled optimism about the U.S. economy. This economic strength has brought a gradual return of investor confidence. First-quarter gross domestic product (GDP) annual growth rate was at a modest 1.1%.

U.S. stocks notched more modest gains in a volatile second quarter. The S&P 500 reached several all-time highs in April and May, and the Fed continued its $85 billion monthly asset-purchase programs, which the central bank has indicated it will maintain until the employment rate improves. The underlying support that monetary policy has brought equity markets was demonstrated by the June selloff in stocks, which was sparked by investor fears that the Fed was signaling an imminent tapering of its purchases.

Portfolio in review

During the six months, the two industry sectors that were the biggest positive contributors to results (relative to the S&P 500) were information technology and industrials.

In information technology, the fund’s largest holding, Microsoft, rose 29.2%, and Hewlett-Packard gained 74.0%.

Results at a glance

For the six months ended June 30, 2013, with distributions reinvested

	ICA (Class A shares)			Standard & Poor’s 500 Composite Index*			Lipper Growth & Income Funds Index
Income return		0.90	%		1.17	%		n/a
Capital return		11.58	%		12.65	%		n/a
Total return		12.48	%		13.82	%		10.76	%

* The S&P 500 is unmanaged and, therefore, has no expenses.

The Investment Company of America 1

These gains were somewhat offset by Oracle (–7.8%), which had a disappointing first quarter. The fund mostly avoided Apple, which fell 25.7%. The fund had established a large position in Apple during a period when it increased in share price, then based on our research, we trimmed the position at higher stock prices, which highlights the benefit of active management.

Relative strength in the industrials sector was due to improving economic conditions, and ICA had effective stock selection of those companies — highlighted by the gains of railroad-based transportation supplier CSX (+17.5%) and Waste Management (+19.5%).

The fund’s fifth-largest holding, General Motors, was up 13.7% as the car manufacturer in May reported its highest monthly auto sales since September 2008, and then topped May’s figure in June.

Other positive contributors to fund results were Gilead Sciences, the fund’s third-largest holding, which gained 39.4%, and the fund’s eighth-largest holding, Verizon, which increased 16.3%.

The fund held a low exposure to financial stocks compared to the index, which hurt relative fund results. This was, in part, because there has been continuing concern from the fund’s portfolio managers that the fundamentals are going to be challenged.

Another detractor to returns was energy, mostly Royal Dutch Shell (–7.1%) and BP (–0.03%). Not only are these two holdings in the comparatively weak energy sector, they are based in a relatively weak non-U.S. market. In its history, international flexibility has been beneficial to ICA, and despite the fiscal issues of Europe, we believe there are still high-quality companies with solid fundamentals.

Concerns about potential volatility due to macroeconomic issues are reflected in the fund’s cash levels — which represented 7.7% of the fund’s total assets and were a drag in this period of low interest rates and broadly positive results for equities.

A look ahead

There are still core fiscal issues that have to be addressed, and there continues to be a risk that central bank monetary stimulus could be reduced, which may create short-term volatility. However, we believe ICA’s commitment to growth and income investing — and to fundamental research — should continue to provide solid results over the long term.

The U.S. economy continues to grow and be innovative, and we remain focused on identifying solid companies at good valuations, in the U.S. and abroad, that we believe will prosper in the long run. We thank you for your continued confidence in our long-term philosophy.

Sincerely,

James B. Lovelace	Donald D. O’Neal
Vice Chairman	President

August 8, 2013

For current information about the fund, visit americanfunds.com.

2 The Investment Company of America

Summary investment portfolio June 30, 2013 unaudited

The following summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

Industry sector diversification Percent of net assets

Common stocks — 90.96%	Shares		Value (000)		Percent of net assets
Energy — 10.40%
Baker Hughes Inc.		14,480,000	$	667,962		1.09	%
BP PLC		136,457,810		944,851
BP PLC (ADR)		620,500		25,900		1.59
Chevron Corp.		3,266,000		386,498		.63
ConocoPhillips		13,425,000		812,213		1.33
Royal Dutch Shell PLC, Class A (ADR)		8,478,700		540,941
Royal Dutch Shell PLC, Class B		10,000,000		330,959		1.47
Royal Dutch Shell PLC, Class B (ADR)		405,000		26,839
Schlumberger Ltd.		12,664,999		907,574		1.49
Other securities				1,705,991		2.80
				6,349,728		10.40
Materials — 3.31%
Dow Chemical Co.		35,637,000		1,146,442		1.88
Praxair, Inc.		3,539,500		407,609		.67
Other securities				465,809		.76
				2,019,860		3.31
Industrials — 10.01%
CSX Corp.		35,337,748		819,482		1.34
General Dynamics Corp.		15,027,800		1,177,128		1.93
General Electric Co.		21,875,000		507,281		.83
Illinois Tool Works Inc.		6,400,000		442,688		.72
Union Pacific Corp.		3,193,900		492,755		.81
United Parcel Service, Inc., Class B		5,365,000		463,965		.76
Waste Management, Inc.		11,639,500		469,421		.77
Other securities				1,739,983		2.85
				6,112,703		10.01

The Investment Company of America 3

Common stocks	Shares		Value (000)		Percent of net assets
Consumer discretionary — 11.53%
Amazon.com, Inc.1		2,525,000	$	701,167		1.15	%
General Motors Co.1		31,879,500		1,061,906		1.74
Home Depot, Inc.		12,000,000		929,640		1.52
Johnson Controls, Inc.		20,621,432		738,041		1.21
NIKE, Inc., Class B		7,156,200		455,707		.74
Time Warner Inc.		8,104,000		468,573		.77
Other securities				2,690,058		4.40
				7,045,092		11.53
Consumer staples — 10.93%
Altria Group, Inc.		34,945,000		1,222,725		2.00
Coca-Cola Co.		13,606,600		545,761		.89
CVS/Caremark Corp.		9,643,874		551,437		.90
PepsiCo, Inc.		5,220,000		426,944		.70
Philip Morris International Inc.		23,554,572		2,040,297		3.34
Other securities				1,890,980		3.10
				6,678,144		10.93
Health care — 13.58%
AbbVie Inc.		27,391,338		1,132,358		1.85
Aetna Inc.		10,274,100		652,816		1.07
Amgen Inc.		17,489,503		1,725,514		2.83
Gilead Sciences, Inc.1		35,880,000		1,837,415		3.01
UnitedHealth Group Inc.		6,856,287		448,950		.73
Other securities				2,497,306		4.09
				8,294,359		13.58
Financials — 3.48%
Capital One Financial Corp.		7,250,000		455,373		.75
JPMorgan Chase & Co.		5,180,000		273,452		.45
Other securities				1,394,628		2.28
				2,123,453		3.48
Information technology — 15.36%
Apple Inc.		1,555,000		615,904		1.01
Google Inc., Class A1		972,500		856,160		1.40
Hewlett-Packard Co.		40,985,000		1,016,428		1.67
Microsoft Corp.		64,453,100		2,225,565		3.64
Oracle Corp.		35,237,400		1,082,493		1.77
Texas Instruments Inc.		24,825,000		865,648		1.42
Other securities				2,717,561		4.45
				9,379,759		15.36
Telecommunication services — 6.79%
AT&T Inc.		24,000,000		849,600		1.39
CenturyLink, Inc.		21,466,000		758,823		1.24
SOFTBANK CORP.		12,457,000		727,224		1.19
Verizon Communications Inc.		23,024,600		1,159,058		1.90

4 The Investment Company of America

Common stocks	Shares		Value (000)		Percent of net assets
Vodafone Group PLC		149,345,000	$	426,694
Vodafone Group PLC (ADR)		1,640,000		47,134		.78	%
Other securities				175,748		.29
				4,144,281		6.79
Utilities — 2.83%
Dominion Resources, Inc.		9,403,824		534,325		.87
Exelon Corp.		15,125,000		467,060		.76
Other securities				729,470		1.20
				1,730,855		2.83
Miscellaneous — 2.74%
Other common stocks in initial period of acquisition				1,675,263		2.74
Total common stocks (cost: $38,123,920,000)				55,553,497		90.96
Convertible securities — 0.80%
Materials — 0.08%
Other securities			49,714			.08
Consumer discretionary — 0.72%
General Motors Co., Series B, 4.75% convertible preferred 2013		9,060,850		436,371		.72
Total convertible securities (cost: $477,515,000)				486,085		.80
Bonds, notes & other debt instruments — 0.54%	Principal amount (000)
Financials — 0.12%
JPMorgan Chase & Co., Series I, junior subordinated 7.90% (undated)2	$	62,936		71,190		.12
Telecommunication services — 0.42%
Other securities				258,993		.42
Total bonds, notes & other debt instruments (cost: $271,219,000)				330,183		.54
Short-term securities — 7.98%
Chariot Funding, LLC 0.12%–0.30% due 7/15/2013–2/27/20143		146,400		146,273		.24
Coca-Cola Co. 0.11%–0.17% due 7/16–11/19/20133		251,200		251,154		.41
Fannie Mae 0.09%–0.18% due 7/1/2013–5/1/2014		710,961		710,575		1.16
Federal Farm Credit Banks 0.10%–0.22% due 7/5/2013–4/11/2014		596,055		595,868		.98
Federal Home Loan Bank 0.084%–0.22% due 7/1/2013–6/17/2014		697,800		697,443		1.14

The Investment Company of America 5

Short-term securities	Principal amount (000)		Value (000)			Percent of net assets
Freddie Mac 0.097%–0.22% due 7/8/2013–6/10/2014	$	1,005,909	$	1,004,924			1.65	%
Jupiter Securitization Co., LLC 0.18%–0.30% due 8/2/2013–2/21/20143		148,900		148,733			.24
Other securities				1,317,393			2.16
Total short-term securities (cost: $4,872,368,000)				4,872,363			7.98
Total investment securities (cost: $43,745,022,000)				61,242,128			100.28
Other assets less liabilities				(169,673	)		(.28	)
Net assets			$	61,072,455			100.00	%

As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio.

Investments in affiliates

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund’s holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund’s affiliated-company holdings is either shown in the summary investment portfolio or included in the value of “Other securities” under the respective industry sectors. Further details on such holdings and related transactions during the six months ended June 30, 2013, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Dividend income (000)		Value of affiliates at 6/30/2013 (000)
R.R. Donnelley & Sons Co.		10,135,000		—		—		10,135,000	$	5,270	$	141,991
Masco Corp.4		22,329,069		—		19,329,069		3,000,000		2,459		—
									$	7,729	$	141,991

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

1	Security did not produce income during the last 12 months.
2	Coupon rate may change periodically.
3	Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in “Other securities,” was $1,083,324,000, which represented 1.77% of the net assets of the fund.
4	Unaffiliated issuer at 6/30/2013.

Key to abbreviation

ADR = American Depositary Receipts

See Notes to Financial Statements

6 The Investment Company of America

Financial statements

Statement of assets and liabilities			unaudited
at June 30, 2013	(dollars in thousands)
Assets:
Investment securities, at value:
Unaffiliated issuers (cost: $43,607,410)	$	61,100,137
Affiliated issuers (cost: $137,612)		141,991	$	61,242,128
Cash denominated in currencies other than U.S. dollars (cost: $4,817)				4,802
Cash				425
Receivables for:
Sales of investments		134,586
Sales of fund’s shares		43,143
Dividends and interest		119,045		296,774
				61,544,129
Liabilities:
Payables for:
Purchases of investments		341,735
Repurchases of fund’s shares		90,164
Investment advisory services		12,226
Services provided by related parties		20,176
Trustees’ deferred compensation		6,730
Other		643		471,674
Net assets at June 30, 2013			$	61,072,455
Net assets consist of:
Capital paid in on shares of beneficial interest			$	40,382,578
Undistributed net investment income				168,413
Undistributed net realized gain				3,025,134
Net unrealized appreciation				17,496,330
Net assets at June 30, 2013			$	61,072,455

(dollars and shares in thousands, except per-share amounts)

Shares of beneficial interest issued and outstanding (no stated par value) —

unlimited shares authorized (1,815,592 total shares outstanding)

	Net assets		Shares outstanding		Net asset value per share
Class A	$	48,321,928		1,435,872	$	33.65
Class B		478,319		14,257		33.55
Class C		1,675,283		50,128		33.42
Class F-1		1,965,474		58,495		33.60
Class F-2		908,988		27,017		33.65
Class 529-A		1,749,209		52,057		33.60
Class 529-B		73,770		2,198		33.56
Class 529-C		410,410		12,244		33.52
Class 529-E		67,967		2,027		33.53
Class 529-F-1		42,117		1,254		33.58
Class R-1		77,078		2,302		33.48
Class R-2		623,452		18,605		33.51
Class R-3		802,733		23,909		33.57
Class R-4		794,040		23,635		33.60
Class R-5		730,444		21,711		33.64
Class R-6		2,351,243		69,881		33.65

See Notes to Financial Statements

The Investment Company of America 7

Statement of operations				unaudited
for the six months ended June 30, 2013	(dollars in thousands)
Investment income:
Income:
Dividends (net of non-U.S. taxes of $12,924; also includes $7,729 from affiliates)	$	742,230
Interest		17,871		$	760,101
Fees and expenses*:
Investment advisory services		72,675
Distribution services		78,307
Transfer agent services		35,827
Administrative services		5,471
Reports to shareholders		1,579
Registration statement and prospectus		440
Trustees’ compensation		798
Auditing and legal		36
Custodian		410
State and local taxes		141
Other		1,292			196,976
Net investment income					563,125
Net realized gain and unrealized appreciation on investments and currency:
Net realized gain (loss) on:
Investments (includes $141,642 net gain from affiliates)		3,028,147
Currency transactions		(3,013	)		3,025,134
Net unrealized appreciation (depreciation) on:
Investments		3,444,963
Currency translations		(1,004	)		3,443,959
Net realized gain and unrealized appreciation on investments and currency					6,469,093
Net increase in net assets resulting from operations				$	7,032,218

*Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.

See Notes to Financial Statements

8 The Investment Company of America

Statements of changes in net assets

(dollars in thousands)

	Six months ended June 30, 2013*			Year ended December 31, 2012
Operations:
Net investment income	$	563,125		$	1,138,918
Net realized gain on investments and currency transactions		3,025,134			1,299,980
Net unrealized appreciation on investments and currency translations		3,443,959			5,802,178
Net increase in net assets resulting from operations		7,032,218			8,241,076
Dividends and distributions paid to shareholders:
Dividends from net investment income		(486,956	)		(1,351,622	)
Distributions from net realized gain on investments		—			(781,791	)
Total dividends and distributions paid to shareholders		(486,956	)		(2,133,413	)
Net capital share transactions		(2,667,751	)		(3,668,713	)
Total increase in net assets		3,877,511			2,438,950
Net assets:
Beginning of period		57,194,944			54,755,994
End of period (including undistributed net investment income: $168,413 and $92,244, respectively)	$	61,072,455		$	57,194,944

*Unaudited.

See Notes to Financial Statements

The Investment Company of America 9

Notes to financial statements unaudited

1. Organization

The Investment Company of America (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 and income, placing greater emphasis on the potential for capital appreciation and future dividends than on current yield.

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 share 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.

10 The Investment Company of America

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. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. 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 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.

3. Valuation

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.

The Investment Company of America 11

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
Mortgage-backed; asset-backed obligations	Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information

When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or 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 the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of the fund’s board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules

12 The Investment Company of America

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

The Investment Company of America 13

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 June 30, 2013 (dollars in thousands):

	Investment securities
	Level 1*		Level 2		Level 3		Total
Assets:
Common stocks:
Energy	$	6,349,728	$	—	$	—	$	6,349,728
Materials		2,019,860		—		—		2,019,860
Industrials		6,112,703		—		—		6,112,703
Consumer discretionary		7,045,092		—		—		7,045,092
Consumer staples		6,678,144		—		—		6,678,144
Health care		8,294,359		—		—		8,294,359
Financials		2,123,453		—		—		2,123,453
Information technology		9,379,759		—		—		9,379,759
Telecommunication services		4,144,281		—		—		4,144,281
Utilities		1,730,855		—		—		1,730,855
Miscellaneous		1,675,263		—		—		1,675,263
Convertible securities		436,371		49,714		—		486,085
Bonds, notes & other debt instruments		—		330,183		—		330,183
Short-term securities		—		4,872,363		—		4,872,363
Total	$	55,989,868	$	5,252,260	$	—	$	61,242,128

* Securities with a market value of $5,460,108,000, which represented 8.94% 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.

4. Risk factors

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 income-oriented stocks — Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests.

Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of adverse political, social, economic or market developments in the countries or regions in which the issuers operate. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments

14 The Investment Company of America

outside the U.S. may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the U.S.

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 June 30, 2013, 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 2009 and by state tax authorities for tax years before 2008.

Non-U.S. taxation — Dividend and interest income are 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; and deferred expenses. 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 December 31, 2012, the fund had tax basis undistributed ordinary income of $99,819,000.

As of June 30, 2013, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):

Gross unrealized appreciation on investment securities	$	18,890,294
Gross unrealized depreciation on investment securities		(1,395,194	)
Net unrealized appreciation on investment securities		17,495,100
Cost of investment securities		43,747,028

The Investment Company of America 15

The tax character of distributions paid to shareholders was as follows (dollars in thousands):

	Six months ended June 30, 2013						Year ended December 31, 2012
Share class	Ordinary  income		Long-term capital gains		Total distributions paid		Ordinary income		Long-term capital gains		Total distributions paid
Class A	$	390,103	$	—	$	390,103	$	1,071,006	$	609,471	$	1,680,477
Class B		2,087		—		2,087		9,875		7,562		17,437
Class C		7,025		—		7,025		26,640		22,282		48,922
Class F-1		15,017		—		15,017		44,021		25,194		69,215
Class F-2		8,078		—		8,078		18,360		10,625		28,985
Class 529-A		13,176		—		13,176		35,107		21,292		56,399
Class 529-B		273		—		273		1,300		1,113		2,413
Class 529-C		1,574		—		1,574		5,636		5,099		10,735
Class 529-E		435		—		435		1,246		841		2,087
Class 529-F-1		361		—		361		881		498		1,379
Class R-1		326		—		326		1,243		1,016		2,259
Class R-2		2,784		—		2,784		9,632		8,027		17,659
Class R-3		5,166		—		5,166		15,612		10,228		25,840
Class R-4		6,246		—		6,246		16,637		9,624		26,261
Class R-5		7,143		—		7,143		19,488		9,503		28,991
Class R-6		27,162		—		27,162		74,938		39,416		114,354
Total	$	486,956	$	—	$	486,956	$	1,351,622	$	781,791	$	2,133,413

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. CRMC, AFD and AFS are considered related parties to the fund.

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 0.390% on the first $1 billion of daily net assets and decreasing to 0.219% on such assets in excess of $89 billion. For the six months ended June 30, 2013, the investment advisory services fee was $72,675,000, which was equivalent to an annualized rate of 0.241% 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 Class F-2, R-5 and R-6 shares. 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

16 The Investment Company of America

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 June 30, 2013, 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

The Investment Company of America 17

on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.

For the six months ended June 30, 2013, class-specific expenses under the agreements were as follows (dollars in thousands):

Share class	Distribution services		Transfer agent services		Administrative services		529 plan services
Class A		$55,019		$29,345		$2,365	Not applicable
Class B		2,594		354		Not applicable	Not applicable
Class C		8,357		1,059		420	Not applicable
Class F-1		2,371		1,259		475	Not applicable
Class F-2		Not applicable		457		214	Not applicable
Class 529-A		1,873		812		422	$829
Class 529-B		388		44		20	38
Class 529-C		1,974		207		100	196
Class 529-E		164		21		16	32
Class 529-F-1		—		20		10	20
Class R-1		377		42		19	Not applicable
Class R-2		2,274		986		153	Not applicable
Class R-3		1,962		662		197	Not applicable
Class R-4		954		376		192	Not applicable
Class R-5		Not applicable		180		187	Not applicable
Class R-6		Not applicable		3		681	Not applicable
Total class-specific expenses		$78,307		$35,827		$5,471	$1,115

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 $798,000, shown on the accompanying financial statements, includes $231,000 in current fees (either paid in cash or deferred) and a net increase of $567,000 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, AFD and AFS. No affiliated officers or trustees received any compensation directly from the fund.

7. Warrants

As of June 30, 2013, the fund had warrants outstanding which may be exercised at any time for the purchase of 818,231 Class A shares at approximately $5.24 per share. If these warrants had been exercised as of June 30, 2013, the net asset value of each share class would have been reduced by less than $0.02 per share. No warrants were exercised during the six months ended June 30, 2013.

18 The Investment Company of America

8. Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

	Sales*				Reinvestments of dividends and distributions				Repurchases*						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Six months ended June 30, 2013
Class A	$	1,246,333		38,047	$	374,579		11,242	$	(2,917,800	)		(88,981	)	$	(1,296,888	)		(39,692	)
Class B		2,762		85		2,069		62		(138,913	)		(4,251	)		(134,082	)		(4,104	)
Class C		94,090		2,893		6,852		207		(230,357	)		(7,056	)		(129,415	)		(3,956	)
Class F-1		259,156		7,896		14,703		441		(354,798	)		(11,020	)		(80,939	)		(2,683	)
Class F-2		137,189		4,169		7,443		223		(95,882	)		(2,902	)		48,750			1,490
Class 529-A		87,858		2,693		13,174		396		(94,307	)		(2,891	)		6,725			198
Class 529-B		540		17		273		8		(17,232	)		(528	)		(16,419	)		(503	)
Class 529-C		20,354		626		1,574		47		(26,682	)		(820	)		(4,754	)		(147	)
Class 529-E		3,129		96		435		13		(4,030	)		(124	)		(466	)		(15	)
Class 529-F-1		4,072		125		361		11		(3,334	)		(101	)		1,099			35
Class R-1		7,767		239		326		10		(11,823	)		(365	)		(3,730	)		(116	)
Class R-2		65,491		2,012		2,782		84		(95,728	)		(2,947	)		(27,455	)		(851	)
Class R-3		92,757		2,861		5,163		155		(123,646	)		(3,801	)		(25,726	)		(785	)
Class R-4		82,133		2,525		6,243		187		(81,574	)		(2,497	)		6,802			215
Class R-5		51,647		1,593		7,135		214		(105,468	)		(3,198	)		(46,686	)		(1,391	)
Class R-6		365,988		11,184		27,162		820		(1,357,717	)		(41,465	)		(964,567	)		(29,461	)
Total net increase (decrease)	$	2,521,266		77,061	$	470,274		14,120	$	(5,659,291	)		(172,947	)	$	(2,667,751	)		(81,766	)
Year ended December 31, 2012
Class A	$	2,174,749		73,644	$	1,615,317		53,779	$	(6,701,282	)		(226,250	)	$	(2,911,216	)		(98,827	)
Class B		7,619		260		17,272		577		(394,365	)		(13,507	)		(369,474	)		(12,670	)
Class C		130,503		4,448		47,679		1,596		(516,276	)		(17,641	)		(338,094	)		(11,597	)
Class F-1		638,424		21,717		67,835		2,262		(798,017	)		(27,302	)		(91,758	)		(3,323	)
Class F-2		237,373		7,947		26,777		892		(166,548	)		(5,596	)		97,602			3,243
Class 529-A		181,153		6,153		56,376		1,879		(193,436	)		(6,533	)		44,093			1,499
Class 529-B		1,600		54		2,413		80		(45,368	)		(1,550	)		(41,355	)		(1,416	)
Class 529-C		43,544		1,483		10,724		358		(56,394	)		(1,913	)		(2,126	)		(72	)
Class 529-E		6,280		214		2,085		70		(8,484	)		(287	)		(119	)		(3	)
Class 529-F-1		8,346		282		1,378		46		(7,063	)		(239	)		2,661			89
Class R-1		15,321		524		2,255		75		(27,662	)		(937	)		(10,086	)		(338	)
Class R-2		124,036		4,217		17,641		589		(197,834	)		(6,721	)		(56,157	)		(1,915	)
Class R-3		162,790		5,547		25,806		861		(265,357	)		(8,976	)		(76,761	)		(2,568	)
Class R-4		153,761		5,196		26,249		875		(208,799	)		(7,071	)		(28,789	)		(1,000	)
Class R-5		82,906		2,815		28,957		965		(259,411	)		(8,771	)		(147,548	)		(4,991	)
Class R-6		569,190		19,132		114,353		3,808		(423,129	)		(14,298	)		260,414			8,642
Total net increase (decrease)	$	4,537,595		153,633	$	2,063,117		68,712	$	(10,269,425	)		(347,592	)	$	(3,668,713	)		(125,247	)

*Includes exchanges between share classes of the fund.

9. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $7,324,308,000 and $9,631,186,000, respectively, during the six months ended June 30, 2013.

The Investment Company of America 19

Financial highlights

				Income (loss) from investment operations1
		Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations
Class A:	Six months ended 6/30/20134,5	$	30.16	$	.31	$	3.45		$	3.76
	Year ended 12/31/2012		27.09		.60		3.61			4.21
	Year ended 12/31/2011		28.16		.57		(1.06	)		(.49	)
	Year ended 12/31/2010		25.95		.55		2.22			2.77
	Year ended 12/31/2009		20.96		.52		5.04			5.56
	Year ended 12/31/2008		32.95		.63		(11.94	)		(11.31	)
Class B:	Six months ended 6/30/20134,5		30.06		.18		3.45			3.63
	Year ended 12/31/2012		26.99		.37		3.60			3.97
	Year ended 12/31/2011		28.05		.35		(1.06	)		(.71	)
	Year ended 12/31/2010		25.84		.35		2.21			2.56
	Year ended 12/31/2009		20.87		.35		5.02			5.37
	Year ended 12/31/2008		32.81		.41		(11.89	)		(11.48	)
Class C:	Six months ended 6/30/20134,5		29.95		.18		3.43			3.61
	Year ended 12/31/2012		26.90		.36		3.59			3.95
	Year ended 12/31/2011		27.97		.34		(1.06	)		(.72	)
	Year ended 12/31/2010		25.78		.34		2.20			2.54
	Year ended 12/31/2009		20.82		.34		5.01			5.35
	Year ended 12/31/2008		32.74		.40		(11.86	)		(11.46	)
Class F-1:	Six months ended 6/30/20134,5		30.11		.30		3.45			3.75
	Year ended 12/31/2012		27.04		.58		3.62			4.20
	Year ended 12/31/2011		28.12		.56		(1.07	)		(.51	)
	Year ended 12/31/2010		25.92		.54		2.21			2.75
	Year ended 12/31/2009		20.93		.51		5.05			5.56
	Year ended 12/31/2008		32.91		.62		(11.93	)		(11.31	)
Class F-2:	Six months ended 6/30/20134,5		30.15		.35		3.45			3.80
	Year ended 12/31/2012		27.08		.67		3.61			4.28
	Year ended 12/31/2011		28.15		.63		(1.06	)		(.43	)
	Year ended 12/31/2010		25.95		.61		2.21			2.82
	Year ended 12/31/2009		20.96		.56		5.06			5.62
	Period from 8/1/2008 to 12/31/20084		28.53		.26		(7.47	)		(7.21	)
Class 529-A:	Six months ended 6/30/20134,5		30.11		.29		3.45			3.74
	Year ended 12/31/2012		27.05		.57		3.60			4.17
	Year ended 12/31/2011		28.12		.55		(1.06	)		(.51	)
	Year ended 12/31/2010		25.92		.53		2.22			2.75
	Year ended 12/31/2009		20.93		.50		5.04			5.54
	Year ended 12/31/2008		32.91		.60		(11.92	)		(11.32	)
Class 529-B:	Six months ended 6/30/20134,5		30.07		.16		3.45			3.61
	Year ended 12/31/2012		27.00		.33		3.60			3.93
	Year ended 12/31/2011		28.06		.32		(1.05	)		(.73	)
	Year ended 12/31/2010		25.86		.33		2.20			2.53
	Year ended 12/31/2009		20.89		.32		5.03			5.35
	Year ended 12/31/2008		32.83		.38		(11.88	)		(11.50	)
Class 529-C:	Six months ended 6/30/20134,5		30.04		.17		3.44			3.61
	Year ended 12/31/2012		26.99		.34		3.59			3.93
	Year ended 12/31/2011		28.06		.33		(1.06	)		(.73	)
	Year ended 12/31/2010		25.86		.33		2.21			2.54
	Year ended 12/31/2009		20.89		.32		5.03			5.35
	Year ended 12/31/2008		32.84		.38		(11.89	)		(11.51	)
Class 529-E:	Six months ended 6/30/20134,5		30.05		.25		3.44			3.69
	Year ended 12/31/2012		26.99		.49		3.61			4.10
	Year ended 12/31/2011		28.07		.47		(1.07	)		(.60	)
	Year ended 12/31/2010		25.87		.46		2.21			2.67
	Year ended 12/31/2009		20.89		.43		5.04			5.47
	Year ended 12/31/2008		32.85		.52		(11.90	)		(11.38	)

20 The Investment Company of America

Dividends and distributions
Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return2,3			Net assets, end of period (in millions)		Ratio of expenses to average net assets before waivers			Ratio of expenses to average net assets after waivers3			Ratio of net income to average net assets3
$	(.27	)	$	—		$	(.27	)	$	33.65		12.48	%	$	48,322		.62	%6		.62	%6		1.90	%6
	(.72	)		(.42	)		(1.14	)		30.16		15.60			44,501		.62			.62			2.02
	(.58	)		—			(.58	)		27.09		(1.76	)		42,643		.61			.61			2.05
	(.56	)		—			(.56	)		28.16		10.86			48,789		.61			.61			2.12
	(.57	)		—			(.57	)		25.95		27.18			49,136		.66			.66			2.32
	(.68	)		—			(.68	)		20.96		(34.74	)		43,244		.59			.57			2.25
	(.14	)		—			(.14	)		33.55		12.07			478		1.38	6		1.38	6		1.12	6
	(.48	)		(.42	)		(.90	)		30.06		14.74			552		1.38			1.38			1.25
	(.35	)		—			(.35	)		26.99		(2.53	)		838		1.38			1.38			1.27
	(.35	)		—			(.35	)		28.05		10.03			1,431		1.38			1.38			1.36
	(.40	)		—			(.40	)		25.84		26.19			2,017		1.43			1.43			1.57
	(.46	)		—			(.46	)		20.87		(35.25	)		2,191		1.36			1.34			1.48
	(.14	)		—			(.14	)		33.42		12.05			1,675		1.42	6		1.42	6		1.10	6
	(.48	)		(.42	)		(.90	)		29.95		14.70			1,620		1.43			1.43			1.21
	(.35	)		—			(.35	)		26.90		(2.58	)		1,767		1.42			1.42			1.24
	(.35	)		—			(.35	)		27.97		9.95			2,212		1.43			1.43			1.31
	(.39	)		—			(.39	)		25.78		26.20			2,243		1.46			1.46			1.53
	(.46	)		—			(.46	)		20.82		(35.29	)		1,974		1.41			1.38			1.44
	(.26	)		—			(.26	)		33.60		12.47			1,966		.69	6		.69	6		1.82	6
	(.71	)		(.42	)		(1.13	)		30.11		15.58			1,842		.67			.67			1.98
	(.57	)		—			(.57	)		27.04		(1.84	)		1,744		.66			.66			2.01
	(.55	)		—			(.55	)		28.12		10.78			1,558		.66			.66			2.07
	(.57	)		—			(.57	)		25.92		27.21			1,209		.68			.68			2.31
	(.67	)		—			(.67	)		20.93		(34.77	)		1,009		.62			.60			2.23
	(.30	)		—			(.30	)		33.65		12.60			909		.41	6		.41	6		2.12	6
	(.79	)		(.42	)		(1.21	)		30.15		15.86			770		.40			.40			2.25
	(.64	)		—			(.64	)		27.08		(1.54	)		604		.40			.40			2.27
	(.62	)		—			(.62	)		28.15		11.07			669		.39			.39			2.34
	(.63	)		—			(.63	)		25.95		27.50			533		.42			.42			2.37
	(.36	)		—			(.36	)		20.96		(25.39	)		83		.17			.16			1.24
	(.25	)		—			(.25	)		33.60		12.45			1,749		.72	6		.72	6		1.81	6
	(.69	)		(.42	)		(1.11	)		30.11		15.47			1,562		.72			.72			1.93
	(.56	)		—			(.56	)		27.05		(1.84	)		1,362		.70			.70			1.97
	(.55	)		—			(.55	)		28.12		10.77			1,362		.68			.68			2.05
	(.55	)		—			(.55	)		25.92		27.12			1,173		.73			.73			2.24
	(.66	)		—			(.66	)		20.93		(34.79	)		898		.67			.65			2.19
	(.12	)		—			(.12	)		33.56		12.00			74		1.51	6		1.51	6		1.01	6
	(.44	)		(.42	)		(.86	)		30.07		14.58			81		1.52			1.52			1.12
	(.33	)		—			(.33	)		27.00		(2.63	)		111		1.50			1.50			1.16
	(.33	)		—			(.33	)		28.06		9.87			165		1.48			1.48			1.26
	(.38	)		—			(.38	)		25.86		26.07			201		1.53			1.53			1.45
	(.44	)		—			(.44	)		20.89		(35.29	)		169		1.47			1.45			1.38
	(.13	)		—			(.13	)		33.52		12.02			410		1.50	6		1.50	6		1.03	6
	(.46	)		(.42	)		(.88	)		30.04		14.59			372		1.50			1.50			1.14
	(.34	)		—			(.34	)		26.99		(2.62	)		336		1.49			1.49			1.18
	(.34	)		—			(.34	)		28.06		9.91			352		1.47			1.47			1.26
	(.38	)		—			(.38	)		25.86		26.09			321		1.52			1.52			1.45
	(.44	)		—			(.44	)		20.89		(35.31	)		249		1.46			1.44			1.39
	(.21	)		—			(.21	)		33.53		12.30			68		.96	6		.96	6		1.56	6
	(.62	)		(.42	)		(1.04	)		30.05		15.23			61		.97			.97			1.68
	(.48	)		—			(.48	)		26.99		(2.15	)		55		.97			.97			1.70
	(.47	)		—			(.47	)		28.07		10.46			57		.97			.97			1.76
	(.49	)		—			(.49	)		25.87		26.77			51		1.02			1.02			1.96
	(.58	)		—			(.58	)		20.89		(34.98	)		38		.96			.94			1.90

See page 23 for footnotes.

The Investment Company of America 21

Financial highlights (continued)

				Income (loss) from investment operations1
		Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations
Class 529-F-1:	Six months ended 6/30/20134,5	$	30.09	$	.33	$	3.45		$	3.78
	Year ended 12/31/2012		27.03		.63		3.61			4.24
	Year ended 12/31/2011		28.10		.61		(1.06	)		(.45	)
	Year ended 12/31/2010		25.90		.59		2.21			2.80
	Year ended 12/31/2009		20.92		.55		5.03			5.58
	Year ended 12/31/2008		32.90		.66		(11.92	)		(11.26	)
Class R-1:	Six months ended 6/30/20134,5		30.01		.18		3.43			3.61
	Year ended 12/31/2012		26.95		.36		3.60			3.96
	Year ended 12/31/2011		28.02		.35		(1.06	)		(.71	)
	Year ended 12/31/2010		25.83		.35		2.20			2.55
	Year ended 12/31/2009		20.87		.34		5.02			5.36
	Year ended 12/31/2008		32.81		.40		(11.88	)		(11.48	)
Class R-2:	Six months ended 6/30/20134,5		30.03		.19		3.44			3.63
	Year ended 12/31/2012		26.98		.37		3.59			3.96
	Year ended 12/31/2011		28.05		.35		(1.06	)		(.71	)
	Year ended 12/31/2010		25.85		.34		2.21			2.55
	Year ended 12/31/2009		20.88		.32		5.03			5.35
	Year ended 12/31/2008		32.83		.38		(11.89	)		(11.51	)
Class R-3:	Six months ended 6/30/20134,5		30.09		.25		3.44			3.69
	Year ended 12/31/2012		27.03		.49		3.60			4.09
	Year ended 12/31/2011		28.10		.47		(1.06	)		(.59	)
	Year ended 12/31/2010		25.90		.46		2.21			2.67
	Year ended 12/31/2009		20.92		.44		5.04			5.48
	Year ended 12/31/2008		32.88		.53		(11.90	)		(11.37	)
Class R-4:	Six months ended 6/30/20134,5		30.11		.30		3.46			3.76
	Year ended 12/31/2012		27.04		.59		3.61			4.20
	Year ended 12/31/2011		28.12		.56		(1.07	)		(.51	)
	Year ended 12/31/2010		25.91		.54		2.22			2.76
	Year ended 12/31/2009		20.93		.50		5.05			5.55
	Year ended 12/31/2008		32.90		.61		(11.91	)		(11.30	)
Class R-5:	Six months ended 6/30/20134,5		30.15		.35		3.45			3.80
	Year ended 12/31/2012		27.08		.68		3.61			4.29
	Year ended 12/31/2011		28.15		.65		(1.07	)		(.42	)
	Year ended 12/31/2010		25.94		.61		2.23			2.84
	Year ended 12/31/2009		20.95		.58		5.04			5.62
	Year ended 12/31/2008		32.95		.69		(11.94	)		(11.25	)
Class R-6:	Six months ended 6/30/20134,5		30.15		.36		3.46			3.82
	Year ended 12/31/2012		27.08		.69		3.62			4.31
	Year ended 12/31/2011		28.15		.66		(1.06	)		(.40	)
	Year ended 12/31/2010		25.95		.63		2.21			2.84
	Period from 5/1/2009 to 12/31/20094		20.70		.40		5.30			5.70

	Six months ended			Year ended December 31
	June 30, 20134,5			2012			2011			2010			2009			2008
Portfolio turnover rate for all share classes		13	%		21	%		28	%		23	%		28	%		31	%

22 The Investment Company of America

Dividends and distributions
Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return3			Net assets, end of period (in millions)		Ratio of expenses to average net assets before waivers			Ratio of expenses to average net assets after waivers3			Ratio of net income to average net assets3
$	(.29	)	$	—		$	(.29	)	$	33.58		12.57	%	$	42		.50	%6		.50	%6		2.03	%6
	(.76	)		(.42	)		(1.18	)		30.09		15.74			37		.50			.50			2.15
	(.62	)		—			(.62	)		27.03		(1.62	)		31		.49			.49			2.19
	(.60	)		—			(.60	)		28.10		11.00			28		.47			.47			2.26
	(.60	)		—			(.60	)		25.90		27.37			22		.52			.52			2.44
	(.72	)		—			(.72	)		20.92		(34.66	)		15		.46			.44			2.40
	(.14	)		—			(.14	)		33.48		12.04			77		1.41	6		1.41	6		1.11	6
	(.48	)		(.42	)		(.90	)		30.01		14.74			73		1.41			1.41			1.23
	(.36	)		—			(.36	)		26.95		(2.55	)		74		1.41			1.41			1.25
	(.36	)		—			(.36	)		28.02		9.96			78		1.41			1.41			1.32
	(.40	)		—			(.40	)		25.83		26.18			66		1.44			1.44			1.52
	(.46	)		—			(.46	)		20.87		(35.25	)		45		1.39			1.36			1.48
	(.15	)		—			(.15	)		33.51		12.09			624		1.37	6		1.37	6		1.16	6
	(.49	)		(.42	)		(.91	)		30.03		14.70			584		1.40			1.40			1.25
	(.36	)		—			(.36	)		26.98		(2.55	)		577		1.41			1.41			1.25
	(.35	)		—			(.35	)		28.05		9.96			654		1.44			1.44			1.30
	(.38	)		—			(.38	)		25.85		26.08			621		1.52			1.52			1.45
	(.44	)		—			(.44	)		20.88		(35.33	)		468		1.48			1.46			1.37
	(.21	)		—			(.21	)		33.57		12.28			803		.97	6		.97	6		1.56	6
	(.61	)		(.42	)		(1.03	)		30.09		15.19			743		.98			.98			1.67
	(.48	)		—			(.48	)		27.03		(2.11	)		737		.97			.97			1.70
	(.47	)		—			(.47	)		28.10		10.45			827		.97			.97			1.77
	(.50	)		—			(.50	)		25.90		26.76			768		1.00			1.00			1.97
	(.59	)		—			(.59	)		20.92		(34.94	)		568		.92			.90			1.91
	(.27	)		—			(.27	)		33.60		12.45			794		.65	6		.65	6		1.87	6
	(.71	)		(.42	)		(1.13	)		30.11		15.60			705		.65			.65			2.00
	(.57	)		—			(.57	)		27.04		(1.83	)		660		.65			.65			2.02
	(.55	)		—			(.55	)		28.12		10.82			681		.65			.65			2.08
	(.57	)		—			(.57	)		25.91		27.16			624		.68			.68			2.21
	(.67	)		—			(.67	)		20.93		(34.78	)		304		.65			.62			2.21
	(.31	)		—			(.31	)		33.64		12.63			730		.35	6		.35	6		2.17	6
	(.80	)		(.42	)		(1.22	)		30.15		15.92			697		.35			.35			2.28
	(.65	)		—			(.65	)		27.08		(1.50	)		761		.35			.35			2.31
	(.63	)		—			(.63	)		28.15		11.14			895		.35			.35			2.33
	(.63	)		—			(.63	)		25.94		27.57			2,123		.38			.38			2.62
	(.75	)		—			(.75	)		20.95		(34.60	)		1,861		.35			.33			2.52
	(.32	)		—			(.32	)		33.65		12.69			2,351		.30	6		.30	6		2.22	6
	(.82	)		(.42	)		(1.24	)		30.15		15.98			2,995		.30			.30			2.34
	(.67	)		—			(.67	)		27.08		(1.45	)		2,456		.30			.30			2.37
	(.64	)		—			(.64	)		28.15		11.16			2,330		.30			.30			2.45
	(.45	)		—			(.45	)		25.95		27.76			534		.33	6		.33	6		2.52	6

1	Based on average shares outstanding.
2	Total returns exclude any applicable sales charges, including contingent deferred sales charges.
3	This column reflects the impact, if any, of certain waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services.
4	Based on operations for the period shown and, accordingly, is not representative of a full year.
5	Unaudited.
6	Annualized.

See Notes to Financial Statements

The Investment Company of America 23

Expense example unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (January 1, 2013, through June 30, 2013).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses paid during period” to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

24 The Investment Company of America

Note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

		Beginning account value 1/1/2013		Ending account value 6/30/2013		Expenses paid during period*		Annualized expense ratio
Class A — actual return	��	$	1,000.00	$	1,124.75	$	3.27		.62	%
Class A — assumed 5% return			1,000.00		1,021.72		3.11		.62
Class B — actual return			1,000.00		1,120.70		7.26		1.38
Class B — assumed 5% return			1,000.00		1,017.95		6.90		1.38
Class C — actual return			1,000.00		1,120.51		7.47		1.42
Class C — assumed 5% return			1,000.00		1,017.75		7.10		1.42
Class F-1 — actual return			1,000.00		1,124.66		3.63		.69
Class F-1 — assumed 5% return			1,000.00		1,021.37		3.46		.69
Class F-2 — actual return			1,000.00		1,125.96		2.16		.41
Class F-2 — assumed 5% return			1,000.00		1,022.76		2.06		.41
Class 529-A — actual return			1,000.00		1,124.46		3.79		.72
Class 529-A — assumed 5% return			1,000.00		1,021.22		3.61		.72
Class 529-B — actual return			1,000.00		1,120.03		7.94		1.51
Class 529-B — assumed 5% return			1,000.00		1,017.31		7.55		1.51
Class 529-C — actual return			1,000.00		1,120.17		7.89		1.50
Class 529-C — assumed 5% return			1,000.00		1,017.36		7.50		1.50
Class 529-E — actual return			1,000.00		1,123.02		5.05		.96
Class 529-E — assumed 5% return			1,000.00		1,020.03		4.81		.96
Class 529-F-1 — actual return			1,000.00		1,125.74		2.64		.50
Class 529-F-1 — assumed 5% return			1,000.00		1,022.32		2.51		.50
Class R-1 — actual return			1,000.00		1,120.37		7.41		1.41
Class R-1 — assumed 5% return			1,000.00		1,017.80		7.05		1.41
Class R-2 — actual return			1,000.00		1,120.88		7.20		1.37
Class R-2 — assumed 5% return			1,000.00		1,018.00		6.85		1.37
Class R-3 — actual return			1,000.00		1,122.82		5.11		.97
Class R-3 — assumed 5% return			1,000.00		1,019.98		4.86		.97
Class R-4 — actual return			1,000.00		1,124.53		3.42		.65
Class R-4 — assumed 5% return			1,000.00		1,021.57		3.26		.65
Class R-5 — actual return			1,000.00		1,126.27		1.85		.35
Class R-5 — assumed 5% return			1,000.00		1,023.06		1.76		.35
Class R-6 — actual return			1,000.00		1,126.87		1.58		.30
Class R-6 — assumed 5% return			1,000.00		1,023.31		1.51		.30

* The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).

The Investment Company of America 25

Approval of Investment Advisory and Service Agreement

The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through March 31, 2014. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor, and each board and committee member did not necessarily attribute the same weight to each factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund under the agreement and other agreements, as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of the fund in light of its objectives of pursuing long-term growth of capital and income. They compared the fund’s investment results with those of other relevant funds (including funds that form the basis of the Lipper index for the category in which the fund is included), and market data such as relevant market indexes, over various periods through September 30, 2012. This report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee reviewed the fund’s investment results measured against the Lipper Growth & Income Funds Index, the Lipper Large-Cap Core Funds Index and Standard & Poor’s 500 Composite Index. They noted that the investment results of the fund generally compared favorably to these three indexes for the 20-year period, and were mixed for shorter periods. The board and the committee concluded that the fund’s investment results have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

26 The Investment Company of America

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses generally compared favorably to other similar funds included in the Lipper Large-Cap Core Funds category. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding effective advisory fees charged to non-mutual fund clients by CRMC and its affiliates. They noted that, to the extent there were differences between the advisory fees paid by the fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational and regulatory differences between advising the fund and the other clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the fund’s shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

4. Ancillary benefits

The board and the committee considered a variety of other benefits that CRMC and its affiliates receive as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC’s institutional management affiliates. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments, and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

The Investment Company of America 27

Offices

Offices of the fund and of the investment adviser

Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406

6455 Irvine Center Drive
Irvine, CA 92618

Transfer agent for shareholder accounts

American Funds Service Company
(Write to the address near you.)

P.O. Box 6007
Indianapolis, IN 46206-6007

P.O. Box 2280
Norfolk, VA 23501-2280

Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070

Counsel

O’Melveny & Myers LLP
400 South Hope Street
Los Angeles, CA 90071-2899

Independent registered public accounting firm

Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188

Principal underwriter

American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406

28 The Investment Company of America

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 American Funds website at americanfunds.com.

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

A complete June 30, 2013, portfolio of The Investment Company of America’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

The Investment Company of America files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at (800) SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of shareholders of The Investment Company of America, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after September 30, 2013, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

The American Funds Advantage

Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital System^SM — has resulted in a superior long-term track record.

Aligned with investor success

We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 25 years of investment experience, including 20 years at our company, reflecting a career commitment to our long-term approach.¹

The Capital System^SM

Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system.

Superior long-term track record

Our equity funds have beaten their Lipper peer indexes in 90% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 58% of 10-year periods and 63% of 20-year periods.² Our fund management fees have been among the lowest in the industry.³

1	Portfolio manager experience as of December 31, 2012.
2	Based on Class A share results for rolling periods through December 31, 2012. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date.
3	Based on management fees for the 20-year period ended December 31, 2012, versus comparable Lipper categories, excluding funds of funds.

	American Funds span a range of investment objectives
¢	Growth funds
	AMCAP Fund®
	EuroPacific Growth Fund®
	The Growth Fund of America®
	The New Economy Fund®
	New Perspective Fund®
	New World Fund®
	SMALLCAP World Fund®
¢	Growth-and-income funds
	American Mutual Fund®
	Capital World Growth and Income Fund®
	Fundamental Investors®
	International Growth and Income FundSM
	The Investment Company of America®
	Washington Mutual Investors FundSM
¢	Equity-income funds
	Capital Income Builder®
	The Income Fund of America®
¢	Balanced funds
	American Balanced Fund®
	American Funds Global Balanced FundSM
¢	Bond funds
	American Funds Mortgage Fund®
	American High-Income Trust®
	The Bond Fund of America®
	Capital World Bond Fund®
	Intermediate Bond Fund of America®
	Short-Term Bond Fund of America®
	U.S. Government Securities Fund®
¢	Tax-exempt bond funds
	American Funds Short-Term Tax-Exempt Bond Fund®
	American High-Income Municipal Bond Fund®
	Limited Term Tax-Exempt Bond Fund of America®
	The Tax-Exempt Bond Fund of America®
	State-specific tax-exempt funds
	American Funds Tax-Exempt Fund of New York®
	The Tax-Exempt Fund of California®
	The Tax-Exempt Fund of Maryland®
	The Tax-Exempt Fund of Virginia®
¢	Money market fund
	American Funds Money Market Fund®
¢	American Funds Portfolio SeriesSM
	American Funds Global Growth PortfolioSM
	American Funds Growth PortfolioSM
	American Funds Growth and Income PortfolioSM
	American Funds Balanced PortfolioSM
	American Funds Income PortfolioSM
	American Funds Tax-Advantaged Income PortfolioSM
	American Funds Preservation PortfolioSM
	American Funds Tax-Exempt Preservation PortfolioSM
¢	American Funds Target Date Retirement Series®
¢	American Funds College Target Date SeriesSM

ITEM 2 – Code of Ethics

Not applicable for filing of semi-annual reports to shareholders.

ITEM 3 – Audit Committee Financial Expert

Not applicable for filing of semi-annual reports to shareholders.

ITEM 4 – Principal Accountant Fees and Services

Not applicable for filing of semi-annual reports to shareholders.

ITEM 5 – Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

ITEM 6 – Schedule of Investments

The Investment Company of America^® Investment portfolio June 30, 2013  

 unaudited

Common stocks  90.96%
		Value
Energy  10.40%	Shares	(000)
Apache Corp.	2,900,000	$     243,107
Baker Hughes Inc.	14,480,000	667,962
BP PLC	136,457,810	944,851
BP PLC (ADR)	620,500	25,900
Canadian Natural Resources, Ltd.	4,165,000	117,422
Chevron Corp.	3,266,000	386,498
ConocoPhillips	13,425,000	812,213
Devon Energy Corp.	4,806,321	249,352
Eni SpA	6,348,000	130,388
EOG Resources, Inc.	2,872,200	378,211
Halliburton Co.	8,870,000	370,056
Kinder Morgan, Inc.	5,700,000	217,455
Royal Dutch Shell PLC, Class A (ADR)	8,478,700	540,941
Royal Dutch Shell PLC, Class B	10,000,000	330,959
Royal Dutch Shell PLC, Class B (ADR)	405,000	26,839
Schlumberger Ltd.	12,664,999	907,574
		6,349,728
Materials  3.31%
ArcelorMittal	7,540,000	84,149
Barrick Gold Corp.	725,000	11,411
Dow Chemical Co.	35,637,000	1,146,442
International Flavors & Fragrances Inc.	3,006,500	225,969
POSCO	273,000	71,355
Praxair, Inc.	3,539,500	407,609
United States Steel Corp.	4,160,000	72,925
		2,019,860
Industrials  10.01%
CSX Corp.	35,337,748	819,482
Danaher Corp.	3,800,000	240,540
Emerson Electric Co.	2,130,000	116,170
European Aeronautic Defence and Space Co. EADS NV	2,235,000	119,466
General Dynamics Corp.	15,027,800	1,177,128
General Electric Co.	21,875,000	507,281
Illinois Tool Works Inc.	6,400,000	442,688
Lockheed Martin Corp.	1,000,000	108,460
Masco Corp.	3,000,000	58,470
R.R. Donnelley & Sons Co.1	10,135,000	141,991
Schneider Electric SA	2,918,000	211,675
Textron Inc.	7,510,000	195,636
Union Pacific Corp.	3,193,900	492,755
United Continental Holdings, Inc.2	8,450,000	264,401
United Parcel Service, Inc., Class B	5,365,000	463,965
United Technologies Corp.	3,046,852	283,174
Common stocks
		Value
Industrials  (continued)	Shares	(000)
Waste Management, Inc.	11,639,500	$     469,421
		6,112,703
Consumer discretionary  11.53%
Amazon.com, Inc.2	2,525,000	701,167
Comcast Corp., Class A	7,593,400	318,012
Comcast Corp., Class A, special nonvoting shares	7,000,000	277,690
Daimler AG	960,000	58,087
DIRECTV2	2,500,000	154,050
Ford Motor Co.	9,500,000	146,965
General Motors Co.2	31,879,500	1,061,906
Home Depot, Inc.	12,000,000	929,640
Johnson Controls, Inc.	20,621,432	738,041
Kohl's Corp.	2,794,000	141,125
Las Vegas Sands Corp.	3,430,000	181,550
News Corp., Class A2	11,690,000	381,094
NIKE, Inc., Class B	7,156,200	455,707
Nissan Motor Co., Ltd.	18,365,000	186,094
Nordstrom, Inc.	1,500,000	89,910
Time Warner Cable Inc.	1,390,127	156,362
Time Warner Inc.	8,104,000	468,573
WPP PLC	2,800,000	47,782
Wynn Resorts, Ltd.	1,810,000	231,680
YUM! Brands, Inc.	4,610,000	319,657
		7,045,092
Consumer staples  10.93%
Altria Group, Inc.	34,945,000	1,222,725
Anheuser-Busch InBev NV	2,208,000	196,556
Coca-Cola Co.	13,606,600	545,761
ConAgra Foods, Inc.	5,521,100	192,852
CVS/Caremark Corp.	9,643,874	551,437
Danone SA	750,000	56,290
General Mills, Inc.	3,920,000	190,238
Kellogg Co.	3,903,268	250,707
Kraft Foods Group, Inc.	6,124,722	342,188
Lorillard, Inc.	5,959,000	260,289
Mondelez International, Inc.	11,825,000	337,367
PepsiCo, Inc.	5,220,000	426,944
Philip Morris International Inc.	23,554,572	2,040,297
Reynolds American Inc.	1,333,332	64,493
		6,678,144
Health care  13.58%
Abbott Laboratories	6,635,000	231,429
AbbVie Inc.	27,391,338	1,132,358
Aetna Inc.	10,274,100	652,816
Alexion Pharmaceuticals, Inc.2	2,350,000	216,764
Allergan, Inc.	1,690,000	142,366
Amgen Inc.	17,489,503	1,725,514
Bayer AG	1,831,500	195,319
Biogen Idec Inc.2	1,000,000	215,200
Boston Scientific Corp.2	10,399,400	96,402
Express Scripts Holding Co.2	1,469,300	90,641
Common stocks
		Value
Health care  (continued)	Shares	(000)
Gilead Sciences, Inc.2	35,880,000	$  1,837,415
GlaxoSmithKline PLC	6,000,000	150,391
Humana Inc.	3,620,000	305,456
Johnson & Johnson	600,000	51,516
Merck & Co., Inc.	2,800,000	130,060
Novartis AG	3,345,000	237,626
Novartis AG (ADR)	256,556	18,141
Novo Nordisk A/S, Class B	925,000	144,155
St. Jude Medical, Inc.	5,957,479	271,840
UnitedHealth Group Inc.	6,856,287	448,950
		8,294,359
Financials  3.48%
Capital One Financial Corp.	7,250,000	455,373
Citigroup Inc.	4,950,000	237,451
Credit Suisse Group AG	10,102,909	267,935
HSBC Holdings PLC (United Kingdom)	4,869,240	50,508
HSBC Holdings PLC (Hong Kong)	10,000,000	104,757
HSBC Holdings PLC (ADR)	1,529,416	79,377
JPMorgan Chase & Co.	5,180,000	273,452
Prudential Financial, Inc.	3,950,000	288,468
Société Générale	3,432,877	117,966
U.S. Bancorp	3,440,000	124,356
Wells Fargo & Co.	3,000,000	123,810
		2,123,453
Information technology  15.36%
Accenture PLC, Class A	4,375,100	314,832
Adobe Systems Inc.2	3,130,000	142,603
Apple Inc.	1,555,000	615,904
Automatic Data Processing, Inc.	4,023,043	277,027
Broadcom Corp., Class A	2,200,000	74,272
Corning Inc.	1,089,186	15,499
Flextronics International Ltd.2	6,000,000	46,440
Google Inc., Class A2	972,500	856,160
Hewlett-Packard Co.	40,985,000	1,016,428
Intel Corp.	4,840,000	117,225
International Business Machines Corp.	1,534,741	293,304
KLA-Tencor Corp.	6,276,900	349,811
Linear Technology Corp.	4,100,000	151,044
Maxim Integrated Products, Inc.	2,757,700	76,609
Microsoft Corp.	64,453,100	2,225,565
Oracle Corp.	35,237,400	1,082,493
Samsung Electronics Co. Ltd.	288,000	338,423
Texas Instruments Inc.	24,825,000	865,648
Western Union Co.	21,727,397	371,756
Xilinx, Inc.	3,754,500	148,716
		9,379,759
Telecommunication services  6.79%
AT&T Inc.	24,000,000	849,600
CenturyLink, Inc.	21,466,000	758,823
SOFTBANK CORP.	12,457,000	727,224
Sprint Nextel Corp., Series 12	25,035,300	175,748
Common stocks
		Value
Telecommunication services  (continued)	Shares	(000)
Verizon Communications Inc.	23,024,600	$  1,159,058
Vodafone Group PLC	149,345,000	426,694
Vodafone Group PLC (ADR)	1,640,000	47,134
		4,144,281
Utilities  2.83%
Dominion Resources, Inc.	9,403,824	534,325
Exelon Corp.	15,125,000	467,060
FirstEnergy Corp.	7,368,025	275,122
GDF SUEZ	10,085,861	197,515
NextEra Energy, Inc.	300,000	24,444
PG&E Corp.	2,225,000	101,749
Public Service Enterprise Group Inc.	4,000,000	130,640
		1,730,855
Miscellaneous  2.74%
Other common stocks in initial period of acquisition		1,675,263
Total common stocks (cost: $38,123,920,000)		55,553,497
Convertible securities  0.80%
	Shares or principal
Materials  0.08%	amount (000)
ArcelorMittal 5.00% convertible debenture 2014	$48,620	49,714
Consumer discretionary  0.72%
General Motors Co., Series B, 4.75% convertible preferred 2013	9,060,850	436,371
Total convertible securities (cost: $477,515,000)		486,085
Bonds, notes & other debt instruments  0.54%
	Principal amount
Financials  0.12%	(000)
JPMorgan Chase & Co., Series I, junior subordinated 7.90% (undated)3	$  62,936	71,190
Telecommunication services  0.42%
Sprint Capital Corp. 6.90% 2019	17,200	17,974
Sprint Nextel Corp. 11.50% 2021	101,775	135,869
Sprint Nextel Corp. 8.375% 2017	7,825	8,823
Sprint Nextel Corp. 9.125% 2017	83,400	96,327
		258,993
Total bonds, notes & other debt instruments (cost: $271,219,000)		330,183
Short-term securities  7.98%
Abbott Laboratories 0.08%–0.13% due 7/23–8/27/20134	45,000	44,998
Army and Air Force Exchange Service 0.12% due 8/26/20134	16,600	16,597
Chariot Funding, LLC 0.12%–0.30% due 7/15/2013–2/27/20144	146,400	146,273
Coca-Cola Co. 0.11%–0.17% due 7/16–11/19/20134	251,200	251,154
	Principal amount	Value
Short-term securities	(000)	(000)
Emerson Electric Co. 0.11% due 7/1/20134	$     35,100	$       35,100
ExxonMobil Corp. 0.07%–0.085% due 7/9–7/26/2013	134,200	134,194
Fannie Mae 0.09%–0.18% due 7/1/2013–5/1/2014	710,961	710,575
Federal Farm Credit Banks 0.10%–0.22% due 7/5/2013–4/11/2014	596,055	595,868
Federal Home Loan Bank 0.084%–0.22% due 7/1/2013–6/17/2014	697,800	697,443
Freddie Mac 0.097%–0.22% due 7/8/2013–6/10/2014	1,005,909	1,004,924
Harvard University 0.14% due 7/16/2013	22,399	22,398
Jupiter Securitization Co., LLC 0.18%–0.30% due 8/2/2013–2/21/20144	148,900	148,733
Merck & Co. Inc. 0.06% due 7/15/20134	50,000	49,999
National Rural Utilities Cooperative Finance Corp. 0.10% due 7/29/2013	50,000	49,996
NetJets Inc. 0.08% due 7/1/20134	21,000	21,000
Paccar Financial Corp. 0.12%–0.15% due 7/16–9/11/2013	68,950	68,936
Private Export Funding Corp. 0.12%–0.22% due 7/16/2013–1/6/20144	63,300	63,252
Procter & Gamble Co. 0.06%–0.14% due 7/9–11/7/20134	170,600	170,576
Regents of the University of California 0.12%–0.17% due 7/8–7/25/2013	105,655	105,645
U.S. Treasury Bills 0.102%–0.193% due 7/18/2013–5/29/2014	322,200	322,079
Wal-Mart Stores, Inc. 0.10% due 7/23–7/29/20134	135,650	135,642
Wells Fargo & Co. 0.15%–0.18% due 8/6–8/15/2013	77,000	76,981
Total short-term securities (cost $4,872,368,000)		4,872,363
Total investment securities (cost: $43,745,022,000)		61,242,128
Other assets less liabilities		(169,673)
Net assets		$61,072,455

As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.

¹Represents an affiliated company as defined under the Investment Company Act of 1940.

²Security did not produce income during the last 12 months.

³Coupon rate may change periodically.

⁴Acquired in a transaction exempt from registration under section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,083,324,000, which represented 1.77% of the net assets of the fund.

Key to abbreviation

ADR = American Depositary Receipts

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 American Funds website at americanfunds.com.

MFGEFPX-004-0813O-S37740

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.

ITEM 11 – Controls and Procedures

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.
(b)	There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12 – Exhibits

(a)(1)	Not applicable for filing of semi-annual reports to shareholders.
(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

THE INVESTMENT COMPANY OF AMERICA

By /s/ James B. Lovelace

James B. Lovelace, Vice Chairman and

Principal Executive Officer

Date: August 30, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By /s/ James B. Lovelace

James B. Lovelace, Vice Chairman and

Principal Executive Officer

Date: August 30, 2013

By /s/ Brian D. Bullard

Brian D. Bullard, Treasurer and

Principal Financial Officer

Date: August 30, 2013