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: 811-03734
EuroPacific Growth Fund
(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: March 31
Date of reporting period: September 30, 2012
Vincent P. Corti
EuroPacific Growth Fund
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
Copies to:
Mark D. Perlow
K&L Gates LLP
Four Embarcadero Center, Suite 1200
San Francisco, California 94111
(Counsel for the Registrant)
ITEM 1 – Reports to Stockholders
EuroPacific Growth Fund®
[photo of a flight information display system]
Semi-annual report for the six months ended September 30, 2012
EuroPacific Growth Fund seeks long-term growth of capital by investing primarily in the securities of companies based in Europe and the Pacific Basin. More than half of the world’s investment opportunities can be found beyond the borders of our country. As a shareholder in the fund, you have access to what we believe are the best of those opportunities.
This fund is one of more than 40 offered by American Funds, which is one of the nation’s largest mutual fund families. For more than 80 years, Capital Research and Management Company,SM the American Funds adviser, 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 September 30, 2012: | ||||||||||||
Class A shares | 1 year | 5 years | 10 years | |||||||||
Reflecting 5.75% maximum sales charge | 11.23 | % | –3.36 | % | 9.63 | % |
The total annual fund operating expense ratio was 0.84% for Class A shares as of the prospectus dated June 1, 2012.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.
Results for other share classes can be found on page 5.
Investing outside the United States may be subject to risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. 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:
[photo of a flight information display system]
Initially struggling to make headway amid renewed concerns about the euro zone debt crisis and slowing economic growth, global markets ended the six-month period on a positive note after the European Central Bank (ECB) announced an unlimited bond-buying program. This appeared to be one of the catalysts for markets to begin making progress, helping investors overcome worries about the future of the euro zone for the time being, as well as the slowdown in China and uncertainty over the U.S. fiscal situation. Market sentiment was also helped after the U.S. Federal Reserve announced that it would provide additional stimulus measures.
For the six-month period ended September 30, 2012, EuroPacific Growth Fund advanced 0.6%, compared with –0.8% for both the unmanaged MSCI All Country World ex USA Index, which reflects the returns of more than 40 developed- and developing-country stock markets excluding the U.S., and the Lipper International Funds Average, a peer group measure. As shown in the chart below, the fund continued to exceed both measures over longer term periods.
[Begin Sidebar]
Results at a glance | ||||||||||||||||||||
For periods ended September 30, 2012, unless otherwise noted, with all distributions reinvested | ||||||||||||||||||||
Total returns | Average annual total returns | |||||||||||||||||||
Six months | 1 year | 5 years | 10 years | Lifetime | ||||||||||||||||
(since 4/16/84) | ||||||||||||||||||||
EuroPacific Growth Fund | ||||||||||||||||||||
(Class A shares) | 0.6 | % | 18.0 | % | –2.2 | % | 10.3 | % | 11.3 | % | ||||||||||
MSCI All Country World | ||||||||||||||||||||
ex USA Index1,2 | –0.8 | 14.5 | –4.1 | 9.8 | — | |||||||||||||||
Lipper International Funds | ||||||||||||||||||||
Average | –0.8 | 15.7 | –4.7 | 8.3 | 8.9 | |||||||||||||||
MSCI EAFE Index1,3 | –0.7 | 13.8 | –5.2 | 8.2 | 8.5 | |||||||||||||||
1 The market indexes are unmanaged and, therefore, have no expenses. | ||||||||||||||||||||
2 The index did not exist prior to December 31, 1987. Results reflect dividends net of withholding taxes. | ||||||||||||||||||||
3 This was the fund’s primary benchmark until the fiscal year ended March 31, 2007. Results reflect dividends net of withholding taxes. |
[End Sidebar]
Volatile markets, uncertain environment
Developments in the euro zone’s fiscal crisis continued to dominate market sentiment as leaders sought to find a solution to the region’s problems. Markets were rocked by inconclusive Greek parliamentary elections in May, leading to speculation that Greece would exit the euro zone. A re-vote in June was widely seen as a national referendum on the country’s continued membership in the currency union. Investors’ fears were eased when a coalition favoring continued membership in the euro zone was elected in the second vote.
Market worries also focused on Spain, which sought €100 billion from euro-zone leaders to shore up its troubled banking system; however, many investors appeared to conclude that this amount would prove insufficient to stabilize the country’s banks. The market was later relieved when Spain announced another austerity package, and stress tests revealed a smaller-than-expected capital deficit for Spanish banks.
European Union leaders took additional steps to address the debt crisis, announcing plans to establish a single supervisor for euro-zone banks and allow the permanent rescue fund to directly recapitalize banks. The major development came when ECB President Mario Draghi said in July that the central bank would do “whatever it takes” to preserve the euro, spurring a market rally. The rally accelerated after the ECB’s early September announcement that it planned to make unlimited purchases of government bonds from troubled peripheral nations. The MSCI Europe Index* ended the six-month period 0.6% higher.
In Japan, the strong yen and signs of a slowing economy prompted the central bank to unexpectedly expand its asset-purchase program. The slowdown in China also weighed on the market, with the MSCI Japan Index* declining 8.1%. Exports to China, Japan’s biggest trading partner, dropped nearly 10% in August from a year earlier. Japan’s commercial prospects in China appeared to worsen in September amid a territorial dispute over the countries’ rival claims to a group of islands in the East China Sea. The controversy sparked widespread anti-Japan protests in China, causing some major Japanese companies to temporarily suspend operations in the country and serving as a reminder of how important regional stability is for economic growth.
*Regional and country returns are based on MSCI indexes, expressed in U.S. dollars, and reflect dividends net of withholdings taxes, unless otherwise stated. |
How the fund responded
The fund’s substantial investments and stock selection in the telecommunication services and health care sectors contributed to returns. The selection of materials stocks and small exposure to the sector also helped relative returns. On the other hand, the fund’s cautious stance and stock selection in financials detracted from returns, as did its relatively large exposure to consumer discretionary and information technology companies.
Investments in several European pharmaceutical companies contributed significantly. Long-time holding Novo Nordisk continued to see strong growth in drugs used to treat type 2 diabetes, a disease of potentially epidemic proportions in both developed and developing countries. Shares of Bayer advanced as the German conglomerate continued to make progress with its drug pipeline, while its material sciences unit benefited from hopes of an improvement in the economic environment.
[Begin Sidebar]
Where the fund’s assets are invested (percent invested by country) | ||||||||||||
EuroPacific Growth Fund invests primarily in the stocks of companies based in Europe and the Pacific Basin.1 | ||||||||||||
MSCI | ||||||||||||
All Country | ||||||||||||
EuroPacific | World ex USA | |||||||||||
Growth Fund | Index2 | |||||||||||
(9/30/12) | (3/31/12) | (9/30/12) | ||||||||||
Europe | ||||||||||||
Euro zone3 | 21.5 | % | 22.6 | % | 19.0 | % | ||||||
United Kingdom | 10.3 | 10.7 | 15.8 | |||||||||
Switzerland | 7.0 | 7.3 | 5.8 | |||||||||
Denmark | 4.2 | 3.5 | .8 | |||||||||
Sweden | 2.2 | 2.3 | 2.2 | |||||||||
Russia | 1.6 | 1.7 | 1.4 | |||||||||
Norway | .2 | .2 | .7 | |||||||||
Other Europe | .3 | .3 | .9 | |||||||||
47.3 | 48.6 | 46.6 | ||||||||||
Pacific Basin | ||||||||||||
Japan | 9.1 | 9.6 | 13.6 | |||||||||
China | 6.6 | 5.8 | 4.1 | |||||||||
South Korea | 5.2 | 5.0 | 3.7 | |||||||||
Hong Kong | 3.5 | 2.6 | 2.1 | |||||||||
Canada | 2.9 | 3.8 | 8.3 | |||||||||
Taiwan | 2.0 | 2.5 | 2.7 | |||||||||
Mexico | 2.0 | 2.2 | 1.2 | |||||||||
Australia | 1.9 | 1.8 | 6.0 | |||||||||
Indonesia | .7 | .6 | .7 | |||||||||
Other Pacific Basin | 2.4 | 1.6 | 3.0 | |||||||||
36.3 | 35.5 | 45.4 | ||||||||||
Other | ||||||||||||
India | 4.9 | 4.8 | 1.7 | |||||||||
South Africa | 2.1 | 1.8 | 1.9 | |||||||||
Brazil | 1.3 | 1.2 | 3.0 | |||||||||
Israel | .9 | 1.1 | .4 | |||||||||
Other countries | — | — | 1.0 | |||||||||
9.2 | 8.9 | 8.0 | ||||||||||
Short-term securities & other | ||||||||||||
assets less liabilities | 7.2 | 7.0 | — | |||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
1 A country is considered part of the Pacific Basin if any of its borders touches the Pacific Ocean. | ||||||||||||
2 Weighted by market capitalization. | ||||||||||||
3 Countries using the euro as a common currency: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. |
[End Sidebar]
Within telecommunication services, wireless communications companies that provide mobile phones and services were among the largest contributors to the fund. Shares of Japanese telecom provider SOFTBANK overcame costly customer-retention promotions earlier in the year to rebound. We are encouraged by SOFTBANK’s business investments in China, which include a large stake in online retail marketplace Alibaba.com. (On October 15, SOFTBANK reached a $20 billion deal to take a majority stake in U.S. carrier Sprint, which could have major implications for its future strategic direction.)
The fund’s cautious stance on financials detracted since many of these companies experienced a strong recovery following moves from the ECB to restore confidence in the euro zone’s banking system and further quantitative-easing measures by the U.S. Federal Reserve. Among the fund’s holdings, shares of Barclays suffered after the bank was fined and its CEO resigned in the wake of an interest rate manipulation scandal. However, Indian banks continued to thrive under a strong regulatory environment as they increased deposits and enjoyed robust lending growth. Markets welcomed a recent spate of positive announcements responding to ongoing concerns in India related to government corruption and stalled economic reforms.
Looking ahead
Much uncertainty remains in the market, including the details and timing of the implementation of the ECB’s bond-buying program. Political upheaval is further complicating the debt problems in Europe and the U.S. as well as economic prospects for China. Given the uncertain environment, the fund continues to take a balanced approach, with substantial investments in companies in defensive sectors such as consumer staples and health care, in addition to a high concentration of certain consumer discretionary companies, including auto manufacturers and food producers, as well as information technology firms. The nature of the companies in which we invest — quality firms with multinational operations that have strong ties to consumers in both the U.S. and Asia — along with our bottom-up research and selection process give us confidence in our long-term approach during these uncertain times.
We thank you, our fellow investors, for your continued support of EuroPacific Growth Fund.
Sincerely,
/s/ Gina H. Despres
Gina H. Despres
Vice Chairman of the Board
/s/ Carl Kawaja
Carl Kawaja
President
November 9, 2012
For current information about the fund, visit americanfunds.com.
Other share class results
unaudited
Classes B, C, F and 529
Fund results shown 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. For current information and month-end results, visit americanfunds.com.
Average annual total returns for periods ended | 10 years/ | |||||||||||
September 30, 2012: | 1 year | 5 years | Life of class1 | |||||||||
Class B shares2 | ||||||||||||
Reflecting applicable contingent deferred sales charge | ||||||||||||
(CDSC), maximum of 5%, payable only if shares | ||||||||||||
are sold within six years of purchase | 12.15 | % | –3.26 | % | 9.63 | % | ||||||
Not reflecting CDSC | 17.15 | –2.93 | 9.63 | |||||||||
Class C shares | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
if shares are sold within one year of purchase | 16.12 | –2.97 | 9.40 | |||||||||
Not reflecting CDSC | 17.12 | –2.97 | 9.40 | |||||||||
Class F-1 shares3 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | 18.04 | –2.21 | 10.25 | |||||||||
Class F-2 shares3 — first sold 8/1/08 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | 18.38 | — | 0.89 | |||||||||
Class 529-A shares4 | ||||||||||||
Reflecting 5.75% maximum sales charge | 11.21 | –3.39 | 9.59 | |||||||||
Not reflecting maximum sales charge | 18.00 | –2.24 | 10.24 | |||||||||
Class 529-B shares2,4 | ||||||||||||
Reflecting applicable CDSC, maximum of 5%, | ||||||||||||
payable only if shares are sold within six | ||||||||||||
years of purchase | 12.02 | –3.37 | 9.48 | |||||||||
Not reflecting CDSC | 17.02 | –3.03 | 9.48 | |||||||||
Class 529-C shares4 | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
if shares are sold within one year of purchase | 16.04 | –3.03 | 9.31 | |||||||||
Not reflecting CDSC | 17.04 | –3.03 | 9.31 | |||||||||
Class 529-E shares3,4 | 17.67 | –2.53 | 9.89 | |||||||||
Class 529-F-1 shares3,4 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | 18.22 | –2.05 | 10.36 |
1Applicable to Class F-2 shares only. All other share classes reflect 10-year results. |
2These shares are not available for purchase. |
3These shares are sold without any initial or contingent deferred sales charge. |
4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee. |
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.
For information regarding the differences among the various share classes, refer to the fund prospectus.
Summary investment portfolio September 30, 2012
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.
[begin pie chart]
Industry sector diversification | (percent of net assets) | |||
Financials | 15.71 | % | ||
Consumer discretionary | 13.06 | |||
Health care | 11.65 | |||
Consumer staples | 11.05 | |||
Information technology | 10.01 | |||
Other industries | 30.67 | |||
Other securities | 0.69 | |||
Short-term securities & other assets less liabilities | 7.16 |
[end pie chart]
Country diversification | (percent of net assets) | |||
Euro zone* | 21.5 | % | ||
United Kingdom | 10.3 | |||
Japan | 9.1 | |||
Switzerland | 7.0 | |||
China | 6.6 | |||
South Korea | 5.2 | |||
India | 4.9 | |||
Canada | 2.9 | |||
Denmark | 4.2 | |||
Hong Kong | 3.5 | |||
Taiwan | 2.0 | |||
Sweden | 2.2 | |||
Mexico | 2.0 | |||
Other countries | 11.4 | |||
Short-term securities & other assets less liabilities | 7.2 | |||
* Countries using the euro as a common currency; those represented in the fund's portfolio are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal, and Spain. |
Percent | ||||||||||||||
Value | of net | |||||||||||||
Common stocks - 92.15% | Shares | (000 | ) | assets | ||||||||||
Financials - 15.71% | ||||||||||||||
Prudential PLC | 92,393,984 | $ | 1,195,820 | 1.19 | % | |||||||||
Housing Development Finance Corp. Ltd. | 71,631,730 | 1,051,694 | 1.05 | |||||||||||
Sberbank of Russia (ADR) | 50,707,875 | 593,702 | ||||||||||||
Sberbank of Russia (GDR) (1) | 18,040,109 | 211,069 | .80 | |||||||||||
Barclays PLC | 202,186,502 | 701,465 | .70 | |||||||||||
HDFC Bank Ltd. | 57,345,000 | 684,020 | .68 | |||||||||||
Agricultural Bank of China, Class H | 1,669,986,000 | 650,416 | .65 | |||||||||||
AXA SA | 38,503,268 | 573,458 | .57 | |||||||||||
UniCredit SpA (2) | 136,186,519 | 565,621 | .56 | |||||||||||
Siam Commercial Bank PCL | 90,753,900 | 496,817 | .50 | |||||||||||
AIA Group Ltd. | 128,223,600 | 477,900 | .48 | |||||||||||
Other securities | 8,550,482 | 8.53 | ||||||||||||
15,752,464 | 15.71 | |||||||||||||
Consumer discretionary - 13.06% | ||||||||||||||
Honda Motor Co., Ltd. | 31,298,250 | 961,326 | .96 | |||||||||||
Volkswagen AG, nonvoting preferred | 4,664,575 | 850,878 | .85 | |||||||||||
Hyundai Motor Co. | 3,012,790 | 683,108 | .68 | |||||||||||
Hyundai Mobis Co., Ltd. | 2,269,598 | 634,060 | .63 | |||||||||||
Kia Motors Corp. | 9,690,717 | 605,111 | .60 | |||||||||||
Bayerische Motoren Werke AG | 7,468,600 | 546,195 | .55 | |||||||||||
Other securities | 8,813,363 | 8.79 | ||||||||||||
13,094,041 | 13.06 | |||||||||||||
Health care - 11.65% | ||||||||||||||
Novo Nordisk A/S, Class B | 22,139,400 | 3,497,502 | 3.49 | |||||||||||
Novartis AG | 34,321,725 | 2,100,176 | 2.09 | |||||||||||
Bayer AG | 19,264,082 | 1,654,397 | 1.65 | |||||||||||
Teva Pharmaceutical Industries Ltd. (ADR) | 22,137,300 | 916,705 | .91 | |||||||||||
CSL Ltd. | 14,236,329 | 679,298 | .68 | |||||||||||
UCB SA (3) | 11,918,602 | 655,372 | .65 | |||||||||||
Roche Holding AG | 3,360,000 | 627,700 | .63 | |||||||||||
Other securities | 1,557,257 | 1.55 | ||||||||||||
11,688,407 | 11.65 | |||||||||||||
Consumer staples - 11.05% | ||||||||||||||
Nestlé SA | 24,789,000 | 1,562,985 | 1.56 | |||||||||||
Anheuser-Busch InBev NV | 16,744,623 | 1,423,825 | ||||||||||||
Anheuser-Busch InBev NV, VVPR STRIPS (2) | 10,093,238 | 13 | 1.42 | |||||||||||
British American Tobacco PLC | 24,974,999 | 1,282,280 | 1.28 | |||||||||||
Pernod Ricard SA | 6,288,860 | 705,596 | .70 | |||||||||||
Shoprite Holdings Ltd. | 25,335,000 | 512,423 | .51 | |||||||||||
L'Oréal SA, non-registered shares | 3,065,000 | 379,137 | ||||||||||||
L'Oréal SA, bonus shares | 1,041,600 | 128,845 | .51 | |||||||||||
Other securities | 5,090,200 | 5.07 | ||||||||||||
11,085,304 | 11.05 | |||||||||||||
Information technology - 10.01% | ||||||||||||||
Samsung Electronics Co. Ltd. | 1,994,203 | 2,415,095 | ||||||||||||
Samsung Electronics Co. Ltd., nonvoting preferred | 48,800 | 34,643 | 2.44 | |||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 416,616,136 | 1,276,276 | ||||||||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) | 5,822,723 | 92,116 | 1.36 | |||||||||||
Tencent Holdings Ltd. | 25,760,000 | 877,708 | .88 | |||||||||||
Baidu, Inc., Class A (ADR) (2) | 7,374,744 | 861,518 | .86 | |||||||||||
SAP AG | 6,161,000 | 436,316 | ||||||||||||
SAP AG (ADR) | 2,625,000 | 187,241 | .62 | |||||||||||
Murata Manufacturing Co., Ltd. | 9,853,500 | 524,619 | .52 | |||||||||||
Other securities | 3,330,005 | 3.33 | ||||||||||||
10,035,537 | 10.01 | |||||||||||||
Industrials - 7.95% | ||||||||||||||
Schneider Electric SA | 11,068,156 | 655,046 | .65 | |||||||||||
Siemens AG | 5,056,000 | 504,249 | .50 | |||||||||||
Ryanair Holdings PLC (ADR) (2) | 14,952,819 | 482,228 | .48 | |||||||||||
Other securities | 6,331,854 | 6.32 | ||||||||||||
7,973,377 | 7.95 | |||||||||||||
Telecommunication services - 6.20% | ||||||||||||||
SOFTBANK CORP. | 44,036,600 | 1,783,133 | 1.78 | |||||||||||
América Móvil, SAB de CV, Series L (ADR) | 59,248,602 | 1,507,285 | ||||||||||||
América Móvil, SAB de CV, Series L | 136,765,100 | 174,679 | 1.68 | |||||||||||
MTN Group Ltd. | 37,364,200 | 719,226 | .72 | |||||||||||
Other securities | 2,030,940 | 2.02 | ||||||||||||
6,215,263 | 6.20 | |||||||||||||
Materials - 6.12% | ||||||||||||||
Syngenta AG | 1,792,815 | 670,042 | .67 | |||||||||||
Linde AG | 2,825,739 | 486,583 | .48 | |||||||||||
Other securities | 4,980,319 | 4.97 | ||||||||||||
6,136,944 | 6.12 | |||||||||||||
Energy - 5.24% | ||||||||||||||
BP PLC | 142,094,964 | 1,001,571 | 1.00 | |||||||||||
Royal Dutch Shell PLC, Class B | 12,402,000 | 440,188 | ||||||||||||
Royal Dutch Shell PLC, Class B (ADR) | 1,292,999 | 92,191 | .53 | |||||||||||
Canadian Natural Resources, Ltd. | 16,897,600 | 521,314 | .52 | |||||||||||
Other securities | 3,205,256 | 3.19 | ||||||||||||
5,260,520 | 5.24 | |||||||||||||
Utilities - 1.65% | ||||||||||||||
Other securities | 1,653,966 | 1.65 | ||||||||||||
Miscellaneous - 3.51% | ||||||||||||||
Other common stocks in initial period of acquisition | 3,517,161 | 3.51 | ||||||||||||
Total common stocks (cost: $67,371,388,000) | 92,412,984 | 92.15 | ||||||||||||
Percent | ||||||||||||||
Principal amount | Value | of net | ||||||||||||
Convertible securities - 0.12% | (000 | ) | (000 | ) | assets | |||||||||
Financials - 0.12% | ||||||||||||||
Credit Suisse Group AG 4.00% convertible notes 2013 | CHF 92,070 | 120,704 | .12 | |||||||||||
Total convertible securities (cost: $94,155,000) | 120,704 | .12 | ||||||||||||
Percent | ||||||||||||||
Value | of net | |||||||||||||
Bonds & notes - 0.57% | (000 | ) | assets | |||||||||||
U.S. Treasury bonds & notes - 0.57% | ||||||||||||||
U.S. Treasury: | ||||||||||||||
3.50% 2013 | $ | 100,000 | 102,205 | |||||||||||
0.25% 2014 | 250,000 | 250,093 | ||||||||||||
1.25% 2014 | 216,500 | 219,561 | .57 | |||||||||||
571,859 | .57 | |||||||||||||
Total bonds & notes (cost: $571,715,000) | 571,859 | .57 | ||||||||||||
Percent | ||||||||||||||
Principal amount | Value | of net | ||||||||||||
Short-term securities - 7.91% | (000) | (000 | ) | assets | ||||||||||
Fannie Mae 0.10%-0.175% due 10/1/2012-3/20/2013 | $ | 2,118,424 | $ | 2,117,661 | 2.11 | % | ||||||||
Freddie Mac 0.10%-0.19% due 10/1/2012-7/2/2013 | 1,523,129 | 1,522,572 | 1.52 | |||||||||||
Federal Home Loan Bank 0.10%-0.22% due 10/3/2012-7/17/2013 | 1,415,705 | 1,414,830 | 1.41 | |||||||||||
U.S. Treasury Bills 0.111%-0.194% due 10/11/2012-8/22/2013 | 1,124,100 | 1,123,574 | 1.12 | |||||||||||
Novartis Securities Investment Ltd. 0.19% due 10/9/2012 (1) | 46,000 | 45,997 | .05 | |||||||||||
Other securities | 1,705,960 | 1.70 | ||||||||||||
Total short-term securities (cost: $7,929,866,000) | 7,930,594 | 7.91 | ||||||||||||
Total investment securities (cost: $75,967,124,000) | 101,036,141 | 100.75 | ||||||||||||
Other assets less liabilities | (753,654 | ) | (.75 | ) | ||||||||||
Net assets | $ | 100,282,487 | 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, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $124,072,000, which represented .12% of the net assets of the fund. |
Forward currency contracts
The fund has entered into forward currency contracts to sell currencies as shown in the following table. The open forward currency contracts shown are generally indicative of the level of activity over the prior 12-month period.
Contract amount | Unrealized appreciation (depreciation) at 9/30/2012 (000) | ||||||||||||||
Settlement date | Counterparty | Receive (000) | Deliver (000) | ||||||||||||
Sales: | |||||||||||||||
Australian dollars | 10/11/2012 | UBS AG | $ | 58,061 | $ | A56,000 | $ | 43 | |||||||
Euros | 10/9/2012 | JPMorgan Chase | $ | 220,588 | € | 175,000 | (4,320 | ) | |||||||
Euros | 10/9/2012 | Citibank | $ | 70,468 | € | 55,900 | (1,374 | ) | |||||||
Euros | 10/11/2012 | HSBC Bank | $ | 214,858 | € | 170,000 | (3,628 | ) | |||||||
Euros | 10/12/2012 | UBS AG | $ | 219,877 | € | 175,000 | (5,037 | ) | |||||||
Euros | 10/12/2012 | Citibank | $ | 223,797 | € | 175,000 | (1,117 | ) | |||||||
Euros | 10/15/2012 | UBS AG | $ | 38,112 | € | 29,560 | 120 | ||||||||
Euros | 10/15/2012 | JPMorgan Chase | $ | 96,514 | € | 75,000 | 119 | ||||||||
Euros | 10/16/2012 | UBS AG | $ | 97,561 | € | 75,819 | 113 | ||||||||
Euros | 10/22/2012 | HSBC Bank | $ | 329,879 | € | 253,000 | 4,683 | ||||||||
Euros | 10/22/2012 | HSBC Bank | $ | 65,194 | € | 50,000 | 925 | ||||||||
Euros | 10/24/2012 | UBS AG | $ | 440,147 | € | 340,000 | 3,116 | ||||||||
Euros | 10/24/2012 | JPMorgan Chase | $ | 84,146 | € | 65,000 | 595 | ||||||||
Euros | 10/25/2012 | JPMorgan Chase | $ | 101,489 | € | 78,000 | 1,228 | ||||||||
Euros | 10/31/2012 | Barclays Bank PLC | $ | 94,146 | € | 73,183 | 71 | ||||||||
$ | (4,463 | ) |
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 September 30, 2012, appear below. |
Beginning shares | Additions | Reductions | Ending shares | Dividend income (000) | Value of affiliates at 9/30/2012 (000) | |||||||||||||||||||
UCB SA | 11,918,602 | - | - | 11,918,602 | $ | 13,411 | $ | 655,372 | ||||||||||||||||
Infineon Technologies AG | 49,795,000 | 18,250,947 | 6,000,000 | 62,045,947 | - | 393,717 | ||||||||||||||||||
$ | 13,411 | $ | 1,049,089 |
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) Acquired in a transaction exempt from registration under Rule 144A or 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 $1,502,247,000, which represented 1.50% of the net assets of the fund. |
(2) Security did not produce income during the last 12 months. |
(3) Represents an affiliated company as defined under the Investment Company Act of 1940. |
Key to abbreviations and symbols |
ADR = American Depositary Receipts |
GDR = Global Depositary Receipts |
A$ = Australian dollars |
€ = Euros |
See Notes to Financial Statements |
Financial statements
Statement of assets and liabilities | unaudited | |||||||
at September 30, 2012 | (dollars in thousands) | |||||||
Assets: | ||||||||
Investment securities, at value: | ||||||||
Unaffiliated issuers (cost: $74,962,833) | $ | 99,987,052 | ||||||
Affiliated issuers (cost: $1,004,291) | 1,049,089 | $ | 101,036,141 | |||||
Cash denominated in currencies other than U.S. dollars | ||||||||
(cost: $15,761) | 15,783 | |||||||
Cash | 214 | |||||||
Unrealized appreciation on open forward currency contracts | 11,013 | |||||||
Receivables for: | ||||||||
Sales of investments | 196,223 | |||||||
Sales of fund's shares | 304,460 | |||||||
Dividends and interest | 236,167 | 736,850 | ||||||
101,800,001 | ||||||||
Liabilities: | ||||||||
Unrealized depreciation on open forward currency contracts | 15,476 | |||||||
Payables for: | ||||||||
Purchases of investments | 1,012,097 | |||||||
Repurchases of fund's shares | 397,776 | |||||||
Investment advisory services | 34,946 | |||||||
Services provided by related parties | 31,513 | |||||||
Trustees' deferred compensation | 3,014 | |||||||
Non-U.S. taxes | 20,927 | |||||||
Other | 1,765 | 1,502,038 | ||||||
Net assets at September 30, 2012 | $ | 100,282,487 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of beneficial interest | $ | 89,737,548 | ||||||
Undistributed net investment income | 1,054,385 | |||||||
Accumulated net realized loss | (15,548,486 | ) | ||||||
Net unrealized appreciation | 25,039,040 | |||||||
Net assets at September 30, 2012 | $ | 100,282,487 |
(dollars and shares in thousands, except per-share amounts) | ||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) - | ||||||||||||
unlimited shares authorized (2,537,602 total shares outstanding) | ||||||||||||
Net assets | Shares outstanding | Net asset value per share | ||||||||||
Class A | $ | 29,224,133 | 736,092 | $ | 39.70 | |||||||
Class B | 375,667 | 9,563 | 39.28 | |||||||||
Class C | 1,884,955 | 48,779 | 38.64 | |||||||||
Class F-1 | 7,808,739 | 197,701 | 39.50 | |||||||||
Class F-2 | 6,350,863 | 159,869 | 39.73 | |||||||||
Class 529-A | 920,408 | 23,398 | 39.34 | |||||||||
Class 529-B | 43,880 | 1,135 | 38.67 | |||||||||
Class 529-C | 310,274 | 8,076 | 38.42 | |||||||||
Class 529-E | 49,212 | 1,263 | 38.98 | |||||||||
Class 529-F-1 | 66,970 | 1,701 | 39.37 | |||||||||
Class R-1 | 288,477 | 7,552 | 38.20 | |||||||||
Class R-2 | 1,028,313 | 26,735 | 38.46 | |||||||||
Class R-3 | 6,635,673 | 170,590 | 38.90 | |||||||||
Class R-4 | 12,190,503 | 312,431 | 39.02 | |||||||||
Class R-5 | 13,362,270 | 336,428 | 39.72 | |||||||||
Class R-6 | 19,742,150 | 496,289 | 39.78 | |||||||||
See Notes to Financial Statements |
Statement of operations | unaudited | |||||||
for the six months ended September 30, 2012 | (dollars in thousands) | |||||||
Investment income: | ||||||||
Income: | ||||||||
Dividends (net of non-U.S. taxes of $162,609; | ||||||||
also includes $13,411 from affiliates) | $ | 1,493,727 | ||||||
Interest | 6,849 | $ | 1,500,576 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 204,668 | |||||||
Distribution services | 93,599 | |||||||
Transfer agent services | 47,704 | |||||||
Administrative services | 18,193 | |||||||
Reports to shareholders | 2,115 | |||||||
Registration statement and prospectus | 1,110 | |||||||
Trustees' compensation | 130 | |||||||
Auditing and legal | 41 | |||||||
Custodian | 11,870 | |||||||
Other | 753 | 380,183 | ||||||
Net investment income | 1,120,393 | |||||||
Net realized loss and unrealized appreciation | ||||||||
on investments, forward currency contracts and currency: | ||||||||
Net realized (loss) gain on: | ||||||||
Investments (includes $16,600 net loss from affiliates) | (1,365,900 | ) | ||||||
Forward currency contracts | 57,357 | |||||||
Currency transactions | (2,087 | ) | (1,310,630 | ) | ||||
Net unrealized appreciation (depreciation) on: | ||||||||
Investments (net of non-U.S. taxes of $20,927) | 795,136 | |||||||
Forward currency contracts | (1,706 | ) | ||||||
Currency translations | (4,036 | ) | 789,394 | |||||
Net realized loss and unrealized appreciation | ||||||||
on investments, forward currency contracts and currency | (521,236 | ) | ||||||
Net increase in net assets resulting | ||||||||
from operations | $ | 599,157 | ||||||
(*) Additional information related to class-specific fees and expenses is included | ||||||||
in the Notes to Financial Statements. | ||||||||
See Notes to Financial Statements | ||||||||
Statements of changes in net assets | ||||||||
(dollars in thousands) | ||||||||
Six months ended September 30, 2012* | Year ended March 31, 2012 | |||||||
Operations: | ||||||||
Net investment income | $ | 1,120,393 | $ | 1,699,729 | ||||
Net realized loss on investments, forward currency contracts and currency transactions | (1,310,630 | ) | (1,961,482 | ) | ||||
Net unrealized appreciation (depreciation) on investments, forward currency contracts and currency translations | 789,394 | (7,061,313 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 599,157 | (7,323,066 | ) | |||||
Dividends paid to shareholders from net investment income | - | (1,573,681 | ) | |||||
Net capital share transactions | (1,536,945 | ) | (3,145,194 | ) | ||||
Total decrease in net assets | (937,788 | ) | (12,041,941 | ) | ||||
Net assets: | ||||||||
Beginning of period | 101,220,275 | 113,262,216 | ||||||
End of period (including undistributed and distributions in excess of | ||||||||
net investment income: $1,054,385 and $(66,008), respectively) | $ | 100,282,487 | $ | 101,220,275 | ||||
*Unaudited. | ||||||||
See Notes to Financial Statements |
Notes to financial statements
unaudited
1. | Organization |
EuroPacific Growth Fund (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks long-term growth of capital by investing primarily in the securities of companies based in Europe and the Pacific Basin. Shareholders approved a proposal to reorganize the fund from a Massachusetts business trust to a Delaware statutory trust. The reorganization may be completed in 2012 or 2013; however, the fund reserves the right to delay the implementation.
The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are further described below:
Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
Classes A and 529-A | Up to 5.75% | None (except 1% for certain redemptions within one year of purchase without an initial sales charge) | None |
Classes B and 529-B* | None | Declines from 5% to 0% for redemptions within six years of purchase | Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years |
Class C | None | 1% for redemptions within one year of purchase | Class C converts to Class F-1 after 10 years |
Class 529-C | None | 1% for redemptions within one year of purchase | None |
Class 529-E | None | None | None |
Classes F-1, F-2 and 529-F-1 | None | None | None |
Classes R-1, R-2, R-3, R-4, R-5 and R-6 | None | None | None |
*Class B and 529-B shares of the fund are not available for purchase.
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
2. | Significant accounting policies |
The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. 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 paid to shareholders are recorded on the ex-dividend date.
Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
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.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors.
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 value guidelines adopted by authority of the fund’s board of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure– The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications – The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of September 30, 2012 (dollars in thousands):
Investment securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 15,752,464 | $ | - | $ | - | $ | 15,752,464 | ||||||||
Consumer discretionary | 13,094,041 | - | - | 13,094,041 | ||||||||||||
Health care | 11,688,407 | - | - | 11,688,407 | ||||||||||||
Consumer staples | 11,085,304 | - | - | 11,085,304 | ||||||||||||
Information technology | 10,035,537 | - | - | 10,035,537 | ||||||||||||
Industrials | 7,973,377 | - | - | 7,973,377 | ||||||||||||
Telecommunication services | 6,215,263 | - | - | 6,215,263 | ||||||||||||
Materials | 6,014,026 | 122,918 | - | 6,136,944 | ||||||||||||
Energy | 5,260,520 | - | - | 5,260,520 | ||||||||||||
Utilities | 1,653,966 | - | - | 1,653,966 | ||||||||||||
Miscellaneous | 3,516,007 | - | 1,154 | 3,517,161 | ||||||||||||
Convertible securities | - | 120,704 | - | 120,704 | ||||||||||||
Bonds & notes | - | 571,859 | - | 571,859 | ||||||||||||
Short-term securities | - | 7,930,594 | - | 7,930,594 | ||||||||||||
Total | $ | 92,288,912 | $ | 8,746,075 | $ | 1,154 | $ | 101,036,141 | ||||||||
Other investments* | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | - | $ | 11,013 | $ | - | $ | 11,013 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | - | (15,476 | ) | - | (15,476 | ) | ||||||||||
Total | $ | - | $ | (4,463 | ) | $ | - | $ | (4,463 | ) | ||||||
*Forward currency contracts are not included in the investment portfolio. |
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 growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.
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 political, social, economic or market developments or instability in the countries or regions in which the issuer operates. 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 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. The risks of investing outside the U.S. may be heightened in connection with investments in emerging and developing countries.
Investing in emerging and developing countries — Investing in countries with emerging or developing economies and/or markets may involve risks in addition to and greater than those generally associated with investing in developed countries. For instance, emerging and developing countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Additionally, there may be increased settlement risks for transactions in local securities.
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. | Certain investment techniques |
Forward currency contracts - The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.
On a daily basis, the fund’s investment adviser values forward currency contracts based on the applicable exchange rates and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the fund’s statement of operations.
6. | 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 September 30, 2012, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.
The fund is not subject to examination by U.S. federal tax authorities for tax years before 2008, by state tax authorities for tax years before 2007 and by tax authorities outside the U.S. for tax years before 2005.
Non-U.S. taxation – Dividend and interest income are recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
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; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; cost of investments sold; and net capital losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.
The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of March 31, 2012, the components of distributable earnings on a tax basis were as follows:
(dollars in thousands) | ||||||||
Undistributed ordinary income | $ | 422,859 | ||||||
Capital loss carryforward*: | ||||||||
No expiration | $ | (1,783,203 | ) | |||||
Expiring 2017 | (3,126,924 | ) | ||||||
Expiring 2018 | (8,747,831 | ) | (13,657,958 | ) | ||||
*The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration dates. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after March 31, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
As of September 30, 2012, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:
(dollars in thousands) | ||||
Gross unrealized appreciation on investment securities | $ | 27,293,189 | ||
Gross unrealized depreciation on investment securities | (3,278,731 | ) | ||
Net unrealized appreciation on investment securities | 24,014,458 | |||
Cost of investment securities | 77,021,683 |
No distributions were paid to shareholders during the six months ended September 30, 2012. Tax-basis distributions paid to shareholders from ordinary income during the year ended March 31, 2012, were as follows (dollars in thousands):
Share class | ||||
Class A | $ | 482,357 | ||
Class B | 2,919 | |||
Class C | 14,483 | |||
Class F-1 | 111,637 | |||
Class F-2 | 103,428 | |||
Class 529-A | 13,708 | |||
Class 529-B | 286 | |||
Class 529-C | 2,308 | |||
Class 529-E | 611 | |||
Class 529-F-1 | 1,097 | |||
Class R-1 | 2,303 | |||
Class R-2 | 8,165 | |||
Class R-3 | 87,246 | |||
Class R-4 | 189,806 | |||
Class R-5 | 257,982 | |||
Class R-6 | 295,345 | |||
Total | $ | 1,573,681 |
7. | Fees and transactions with related parties |
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares, and American Funds Service Company® ("AFS"), the fund’s transfer agent.
Investment advisory services – The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.690% on the first $500 million of daily net assets and decreasing to 0.397% on such assets in excess of $115 billion. For the six months ended September 30, 2012, the investment advisory services fee was $204,668,000, which was equivalent to an annualized rate of 0.425% 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 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 September 30, 2012, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.
Share class | Currently approved limits | Plan limits |
Class A | 0.25% | 0.25% |
Class 529-A | 0.25 | 0.50 |
Classes B and 529-B | 1.00 | 1.00 |
Classes C, 529-C and R-1 | 1.00 | 1.00 |
Class R-2 | 0.75 | 1.00 |
Classes 529-E and R-3 | 0.50 | 0.75 |
Classes F-1, 529-F-1 and R-4 | 0.25 | 0.50 |
Transfer agent services – The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
Administrative services – The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, F, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, Class A shares pay an annual fee of 0.01% and Class C, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets.
529 plan services – Each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.
Class-specific expenses under the agreements described above for the six months ended September 30, 2012, were as follows (dollars in thousands):
Share class | Distribution services | Transfer agent services | Administrative services | 529 plan services | ||||||||||||
Class A | $ | 34,392 | $ | 23,026 | $ | 1,448 | Not applicable | |||||||||
Class B | 1,975 | 269 | Not applicable | Not applicable | ||||||||||||
Class C | 9,482 | 1,285 | 475 | Not applicable | ||||||||||||
Class F-1 | 9,005 | 3,888 | 1,821 | Not applicable | ||||||||||||
Class F-2 | Not applicable | 2,338 | 1,472 | Not applicable | ||||||||||||
Class 529-A | 920 | 449 | 221 | $ | 439 | |||||||||||
Class 529-B | 226 | 27 | 11 | 23 | ||||||||||||
Class 529-C | 1,501 | 173 | 76 | 150 | ||||||||||||
Class 529-E | 118 | 19 | 12 | 24 | ||||||||||||
Class 529-F-1 | - | 32 | 16 | 32 | ||||||||||||
Class R-1 | 1,428 | 166 | 72 | Not applicable | ||||||||||||
Class R-2 | 3,755 | 1,920 | 254 | Not applicable | ||||||||||||
Class R-3 | 16,165 | 5,017 | 1,627 | Not applicable | ||||||||||||
Class R-4 | 14,632 | 5,955 | 2,963 | Not applicable | ||||||||||||
Class R-5 | Not applicable | 3,104 | 3,292 | Not applicable | ||||||||||||
Class R-6 | Not applicable | 36 | 4,433 | Not applicable | ||||||||||||
Total class-specific expenses | $ | 93,599 | $ | 47,704 | $ | 18,193 | $ | 668 |
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 $130,000, shown on the accompanying financial statements, includes $183,000 in current fees (either paid in cash or deferred) and a net decrease of $53,000 in the value of the deferred amounts.
Affiliated officers and trustees – Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or trustees received any compensation directly from the fund.
8. | Capital share transactions |
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Sales(*) | Reinvestments of dividends | Repurchases(*) | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended September 30, 2012 | ||||||||||||||||||||||||||||||||
Class A | $ | 1,043,853 | 27,812 | $ | - | - | $ | (3,328,682 | ) | (88,344 | ) | $ | (2,284,829 | ) | (60,532 | ) | ||||||||||||||||
Class B | 1,630 | 44 | - | - | (86,459 | ) | (2,325 | ) | (84,829 | ) | (2,281 | ) | ||||||||||||||||||||
Class C | 50,357 | 1,369 | - | - | (267,695 | ) | (7,317 | ) | (217,338 | ) | (5,948 | ) | ||||||||||||||||||||
Class F-1 | 1,309,224 | 35,357 | - | - | (975,315 | ) | (26,071 | ) | 333,909 | 9,286 | ||||||||||||||||||||||
Class F-2 | 963,402 | 25,660 | - | - | (636,788 | ) | (16,870 | ) | 326,614 | 8,790 | ||||||||||||||||||||||
Class 529-A | 48,414 | 1,297 | - | - | (60,434 | ) | (1,617 | ) | (12,020 | ) | (320 | ) | ||||||||||||||||||||
Class 529-B | 363 | 10 | - | - | (8,290 | ) | (227 | ) | (7,927 | ) | (217 | ) | ||||||||||||||||||||
Class 529-C | 16,075 | 441 | - | - | (26,514 | ) | (730 | ) | (10,439 | ) | (289 | ) | ||||||||||||||||||||
Class 529-E | 2,794 | 76 | - | - | (3,715 | ) | (100 | ) | (921 | ) | (24 | ) | ||||||||||||||||||||
Class 529-F-1 | 6,598 | 178 | - | - | (5,600 | ) | (149 | ) | 998 | 29 | ||||||||||||||||||||||
Class R-1 | 24,798 | 684 | - | - | (36,546 | ) | (1,002 | ) | (11,748 | ) | (318 | ) | ||||||||||||||||||||
Class R-2 | 110,401 | 3,016 | - | - | (178,649 | ) | (4,884 | ) | (68,248 | ) | (1,868 | ) | ||||||||||||||||||||
Class R-3 | 674,176 | 18,275 | - | - | (978,080 | ) | (26,412 | ) | (303,904 | ) | (8,137 | ) | ||||||||||||||||||||
Class R-4 | 1,249,050 | 33,829 | - | - | (1,616,366 | ) | (43,396 | ) | (367,316 | ) | (9,567 | ) | ||||||||||||||||||||
Class R-5 | 1,251,499 | 33,069 | - | - | (1,970,739 | ) | (52,140 | ) | (719,240 | ) | (19,071 | ) | ||||||||||||||||||||
Class R-6 | 3,175,061 | 84,267 | - | - | (1,284,768 | ) | (33,880 | ) | 1,890,293 | 50,387 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 9,927,695 | 265,384 | $ | - | - | $ | (11,464,640 | ) | (305,464 | ) | $ | (1,536,945 | ) | (40,080 | ) | ||||||||||||||||
Year ended March 31, 2012 | ||||||||||||||||||||||||||||||||
Class A | $ | 2,977,675 | 76,413 | $ | 467,362 | 13,292 | $ | (8,334,408 | ) | (213,809 | ) | $ | (4,889,371 | ) | (124,104 | ) | ||||||||||||||||
Class B | 9,334 | 237 | 2,869 | 82 | (228,983 | ) | (5,968 | ) | (216,780 | ) | (5,649 | ) | ||||||||||||||||||||
Class C | 151,841 | 3,934 | 13,945 | 405 | (671,747 | ) | (17,870 | ) | (505,961 | ) | (13,531 | ) | ||||||||||||||||||||
Class F-1 | 1,734,322 | 44,909 | 109,727 | 3,137 | (2,587,948 | ) | (67,851 | ) | (743,899 | ) | (19,805 | ) | ||||||||||||||||||||
Class F-2 | 1,927,103 | 48,796 | 85,272 | 2,429 | (1,724,212 | ) | (45,394 | ) | 288,163 | 5,831 | ||||||||||||||||||||||
Class 529-A | 125,628 | 3,251 | 13,702 | 394 | (117,430 | ) | (3,073 | ) | 21,900 | 572 | ||||||||||||||||||||||
Class 529-B | 1,223 | 31 | 286 | 9 | (21,546 | ) | (572 | ) | (20,037 | ) | (532 | ) | ||||||||||||||||||||
Class 529-C | 40,189 | 1,062 | 2,307 | 67 | (49,915 | ) | (1,335 | ) | (7,419 | ) | (206 | ) | ||||||||||||||||||||
Class 529-E | 7,062 | 184 | 611 | 18 | (8,008 | ) | (213 | ) | (335 | ) | (11 | ) | ||||||||||||||||||||
Class 529-F-1 | 13,713 | 353 | 1,096 | 31 | (14,615 | ) | (384 | ) | 194 | - | ||||||||||||||||||||||
Class R-1 | 66,257 | 1,773 | 2,293 | 67 | (73,592 | ) | (1,963 | ) | (5,042 | ) | (123 | ) | ||||||||||||||||||||
Class R-2 | 279,234 | 7,370 | 8,153 | 238 | (435,387 | ) | (11,523 | ) | (148,000 | ) | (3,915 | ) | ||||||||||||||||||||
Class R-3 | 1,574,671 | 41,305 | 87,185 | 2,525 | (1,944,965 | ) | (50,998 | ) | (283,109 | ) | (7,168 | ) | ||||||||||||||||||||
Class R-4 | 3,235,634 | 84,584 | 189,768 | 5,493 | (3,646,406 | ) | (95,339 | ) | (221,004 | ) | (5,262 | ) | ||||||||||||||||||||
Class R-5 | 3,499,102 | 90,179 | 256,756 | 7,317 | (4,976,672 | ) | (129,345 | ) | (1,220,814 | ) | (31,849 | ) | ||||||||||||||||||||
Class R-6 | 7,178,141 | 184,536 | 294,338 | 8,378 | (2,666,159 | ) | (68,771 | ) | 4,806,320 | 124,143 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 22,821,129 | 588,917 | $ | 1,535,670 | 43,882 | $ | (27,501,993 | ) | (714,408 | ) | $ | (3,145,194 | ) | (81,609 | ) | ||||||||||||||||
* 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 $10,644,519,000 and $11,516,137,000, respectively, during the six months ended September 30, 2012.
Financial highlights
Income (loss) from investment operations(1) | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return(2)(3) | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements/ waivers | Ratio of expenses to average net assets after reimbursements/ waivers(3) | Ratio of net income to average net assets(3) | |||||||||||||||||||||||||||||||||||||||||
Class A: | Six months ended 9/30/2012(4)(5) | $ | 39.47 | $ | .43 | $ | (.20 | ) | $ | .23 | $ | - | $ | - | $ | - | $ | 39.70 | .58 | % | $ | 29,224 | .86 | %(6) | .86 | %(6) | 2.28 | %(6) | |||||||||||||||||||||||||
Year ended 3/31/2012 | 42.81 | .65 | (3.40 | ) | (2.75 | ) | (.59 | ) | - | (.59 | ) | 39.47 | (6.25 | ) | 31,443 | .84 | .84 | 1.65 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.62 | .54 | 4.22 | 4.76 | (.57 | ) | - | (.57 | ) | 42.81 | 12.39 | 39,417 | .82 | .82 | 1.39 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.78 | .51 | 12.95 | 13.46 | (.62 | ) | - | (.62 | ) | 38.62 | 52.23 | 40,426 | .85 | .85 | 1.45 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 46.83 | .88 | (19.76 | ) | (18.88 | ) | (.78 | ) | (1.39 | ) | (2.17 | ) | 25.78 | (40.54 | ) | 28,192 | .83 | .80 | 2.40 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 47.92 | .95 | 2.60 | 3.55 | (1.01 | ) | (3.63 | ) | (4.64 | ) | 46.83 | 6.40 | 57,445 | .79 | .74 | 1.87 | |||||||||||||||||||||||||||||||||||||
Class B: | Six months ended 9/30/2012(4)(5) | 39.20 | .30 | (.22 | ) | .08 | - | - | - | 39.28 | .20 | 376 | 1.59 | (6) | 1.59 | (6) | 1.60 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 42.39 | .37 | (3.34 | ) | (2.97 | ) | (.22 | ) | - | (.22 | ) | 39.20 | (6.95 | ) | 464 | 1.58 | 1.58 | .96 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.21 | .26 | 4.15 | 4.41 | (.23 | ) | - | (.23 | ) | 42.39 | 11.57 | 741 | 1.57 | 1.57 | .69 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.52 | .26 | 12.79 | 13.05 | (.36 | ) | - | (.36 | ) | 38.21 | 51.12 | 923 | 1.59 | 1.59 | .77 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 46.14 | .62 | (19.44 | ) | (18.82 | ) | (.41 | ) | (1.39 | ) | (1.80 | ) | 25.52 | (40.98 | ) | 765 | 1.57 | 1.54 | 1.70 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 47.31 | .56 | 2.54 | 3.10 | (.64 | ) | (3.63 | ) | (4.27 | ) | 46.14 | 5.60 | 1,775 | 1.52 | 1.48 | 1.12 | |||||||||||||||||||||||||||||||||||||
Class C: | Six months ended 9/30/2012(4)(5) | 38.57 | .28 | (.21 | ) | .07 | - | - | - | 38.64 | .18 | 1,885 | 1.64 | (6) | 1.64 | (6) | 1.52 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 41.76 | .34 | (3.28 | ) | (2.94 | ) | (.25 | ) | - | (.25 | ) | 38.57 | (6.97 | ) | 2,111 | 1.62 | 1.62 | .89 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 37.70 | .23 | 4.10 | 4.33 | (.27 | ) | - | (.27 | ) | 41.76 | 11.51 | 2,851 | 1.61 | 1.61 | .60 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.21 | .22 | 12.65 | 12.87 | (.38 | ) | - | (.38 | ) | 37.70 | 51.06 | 2,901 | 1.63 | 1.63 | .66 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 45.64 | .58 | (19.20 | ) | (18.62 | ) | (.42 | ) | (1.39 | ) | (1.81 | ) | 25.21 | (41.00 | ) | 1,927 | 1.62 | 1.58 | 1.63 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 46.85 | .53 | 2.53 | 3.06 | (.64 | ) | (3.63 | ) | (4.27 | ) | 45.64 | 5.57 | 4,093 | 1.57 | 1.53 | 1.06 | |||||||||||||||||||||||||||||||||||||
Class F-1: | Six months ended 9/30/2012(4)(5) | 39.27 | .42 | (.19 | ) | .23 | - | - | - | 39.50 | .59 | 7,809 | .86 | (6) | .86 | (6) | 2.23 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 42.59 | .63 | (3.37 | ) | (2.74 | ) | (.58 | ) | - | (.58 | ) | 39.27 | (6.25 | ) | 7,399 | .86 | .86 | 1.62 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.43 | .52 | 4.20 | 4.72 | (.56 | ) | - | (.56 | ) | 42.59 | 12.36 | 8,868 | .85 | .85 | 1.35 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.66 | .49 | 12.91 | 13.40 | (.63 | ) | - | (.63 | ) | 38.43 | 52.24 | 8,601 | .86 | .86 | 1.39 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 46.62 | .87 | (19.68 | ) | (18.81 | ) | (.76 | ) | (1.39 | ) | (2.15 | ) | 25.66 | (40.55 | ) | 5,097 | .84 | .81 | 2.38 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 47.73 | .92 | 2.60 | 3.52 | (1.00 | ) | (3.63 | ) | (4.63 | ) | 46.62 | 6.38 | 10,328 | .81 | .77 | 1.81 | |||||||||||||||||||||||||||||||||||||
Class F-2: | Six months ended 9/30/2012(4)(5) | 39.44 | .47 | (.18 | ) | .29 | - | - | - | 39.73 | .74 | 6,351 | .59 | (6) | .59 | (6) | 2.50 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 42.80 | .73 | (3.39 | ) | (2.66 | ) | (.70 | ) | - | (.70 | ) | 39.44 | (6.02 | ) | 5,958 | .58 | .58 | 1.86 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.62 | .61 | 4.25 | 4.86 | (.68 | ) | - | (.68 | ) | 42.80 | 12.65 | 6,216 | .59 | .59 | 1.54 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.78 | .47 | 13.10 | 13.57 | (.73 | ) | - | (.73 | ) | 38.62 | 52.65 | 4,028 | .60 | .60 | 1.31 | ||||||||||||||||||||||||||||||||||||||
Period from 8/1/2008 to 3/31/2009(4) | 43.75 | .29 | (16.05 | ) | (15.76 | ) | (.82 | ) | (1.39 | ) | (2.21 | ) | 25.78 | (36.26 | ) | 806 | .63 | (6) | .61 | (6) | 1.59 | (6) | |||||||||||||||||||||||||||||||
Class 529-A: | Six months ended 9/30/2012(4)(5) | 39.12 | .41 | (.19 | ) | .22 | - | - | - | 39.34 | .56 | 920 | .92 | (6) | .92 | (6) | 2.20 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 42.45 | .61 | (3.35 | ) | (2.74 | ) | (.59 | ) | - | (.59 | ) | 39.12 | (6.30 | ) | 928 | .89 | .89 | 1.56 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.31 | .51 | 4.20 | 4.71 | (.57 | ) | - | (.57 | ) | 42.45 | 12.36 | 982 | .87 | .87 | 1.31 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.59 | .48 | 12.86 | 13.34 | (.62 | ) | - | (.62 | ) | 38.31 | 52.14 | 826 | .89 | .89 | 1.37 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 46.53 | .82 | (19.59 | ) | (18.77 | ) | (.78 | ) | (1.39 | ) | (2.17 | ) | 25.59 | (40.54 | ) | 497 | .87 | .83 | 2.30 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 47.66 | .90 | 2.60 | 3.50 | (1.00 | ) | (3.63 | ) | (4.63 | ) | 46.53 | 6.34 | 789 | .83 | .79 | 1.78 | |||||||||||||||||||||||||||||||||||||
Class 529-B: | Six months ended 9/30/2012(4)(5) | 38.61 | .27 | (.21 | ) | .06 | - | - | - | 38.67 | .16 | 44 | 1.7 | 2(6) | 1.72 | (6) | 1.47 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 41.77 | .32 | (3.29 | ) | (2.97 | ) | (.19 | ) | - | (.19 | ) | 38.61 | (7.05 | ) | 52 | 1.70 | 1.70 | .83 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 37.68 | .21 | 4.09 | 4.30 | (.21 | ) | - | (.21 | ) | 41.77 | 11.43 | 79 | 1.68 | 1.68 | .56 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.20 | .20 | 12.63 | 12.83 | (.35 | ) | - | (.35 | ) | 37.68 | 50.94 | 91 | 1.71 | 1.71 | .59 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 45.71 | .53 | (19.20 | ) | (18.67 | ) | (.45 | ) | (1.39 | ) | (1.84 | ) | 25.20 | (41.03 | ) | 63 | 1.69 | 1.65 | 1.49 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 46.93 | .48 | 2.53 | 3.01 | (.60 | ) | (3.63 | ) | (4.23 | ) | 45.71 | 5.47 | 107 | 1.66 | 1.61 | .97 | |||||||||||||||||||||||||||||||||||||
Class 529-C: | Six months ended 9/30/2012(4)(5) | 38.36 | .26 | (.20 | ) | .06 | - | - | - | 38.42 | .16 | 310 | 1.71 | (6) | 1.71 | (6) | 1.42 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 41.60 | .29 | (3.26 | ) | (2.97 | ) | (.27 | ) | - | (.27 | ) | 38.36 | (7.05 | ) | 321 | 1.68 | 1.68 | .77 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 37.58 | .20 | 4.09 | 4.29 | (.27 | ) | - | (.27 | ) | 41.60 | 11.46 | 356 | 1.67 | 1.67 | .52 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.14 | .20 | 12.62 | 12.82 | (.38 | ) | - | (.38 | ) | 37.58 | 50.98 | 313 | 1.70 | 1.70 | .57 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 45.63 | .53 | (19.17 | ) | (18.64 | ) | (.46 | ) | (1.39 | ) | (1.85 | ) | 25.14 | (41.05 | ) | 191 | 1.68 | 1.65 | 1.49 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 46.87 | .48 | 2.53 | 3.01 | (.62 | ) | (3.63 | ) | (4.25 | ) | 45.63 | 5.47 | 317 | 1.65 | 1.61 | .96 | |||||||||||||||||||||||||||||||||||||
Class 529-E: | Six months ended 9/30/2012(4)(5) | $ | 38.82 | $ | .36 | $ | (.20 | ) | $ | .16 | $ | - | $ | - | $ | - | $ | 38.98 | .44 | % | $ | 49 | 1.18 | %(6) | 1.18 | %(6) | 1.94 | %(6) | |||||||||||||||||||||||||
Year ended 3/31/2012 | 42.11 | .50 | (3.32 | ) | (2.82 | ) | (.47 | ) | - | (.47 | ) | 38.82 | (6.58 | ) | 50 | 1.16 | 1.16 | 1.29 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.02 | .39 | 4.16 | 4.55 | (.46 | ) | - | (.46 | ) | 42.11 | 12.03 | 55 | 1.16 | 1.16 | 1.02 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.41 | .37 | 12.77 | 13.14 | (.53 | ) | - | (.53 | ) | 38.02 | 51.73 | 46 | 1.19 | 1.19 | 1.08 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 46.17 | .71 | (19.42 | ) | (18.71 | ) | (.66 | ) | (1.39 | ) | (2.05 | ) | 25.41 | (40.73 | ) | 28 | 1.17 | 1.14 | 2.00 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 47.34 | .74 | 2.57 | 3.31 | (.85 | ) | (3.63 | ) | (4.48 | ) | 46.17 | 6.00 | 45 | 1.14 | 1.10 | 1.47 | |||||||||||||||||||||||||||||||||||||
Class 529-F-1: | Six months ended 9/30/2012(4)(5) | 39.11 | .45 | (.19 | ) | .26 | - | - | - | 39.37 | .67 | 67 | .70 | (6) | .70 | (6) | 2.40 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 42.45 | .69 | (3.36 | ) | (2.67 | ) | (.67 | ) | - | (.67 | ) | 39.11 | (6.09 | ) | 65 | .68 | .68 | 1.78 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.30 | .58 | 4.22 | 4.80 | (.65 | ) | - | (.65 | ) | 42.45 | 12.58 | 71 | .66 | .66 | 1.50 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.57 | .55 | 12.86 | 13.41 | (.68 | ) | - | (.68 | ) | 38.30 | 52.47 | 56 | .69 | .69 | 1.58 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 46.54 | .88 | (19.60 | ) | (18.72 | ) | (.86 | ) | (1.39 | ) | (2.25 | ) | 25.57 | (40.44 | ) | 33 | .67 | .64 | 2.48 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 47.65 | .99 | 2.62 | 3.61 | (1.09 | ) | (3.63 | ) | (4.72 | ) | 46.54 | 6.55 | 51 | .64 | .60 | 1.96 | |||||||||||||||||||||||||||||||||||||
Class R-1: | Six months ended 9/30/2012(4)(5) | 38.12 | .27 | (.19 | ) | .08 | - | - | - | 38.20 | .21 | 288 | 1.62 | (6) | 1.62 | (6) | 1.50 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 41.34 | .32 | (3.24 | ) | (2.92 | ) | (.30 | ) | - | (.30 | ) | 38.12 | (6.98 | ) | 300 | 1.61 | 1.61 | .85 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 37.36 | .21 | 4.08 | 4.29 | (.31 | ) | - | (.31 | ) | 41.34 | 11.52 | 330 | 1.62 | 1.62 | .57 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.01 | .20 | 12.57 | 12.77 | (.42 | ) | - | (.42 | ) | 37.36 | 51.08 | 279 | 1.64 | 1.64 | .59 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 45.45 | .54 | (19.09 | ) | (18.55 | ) | (.50 | ) | (1.39 | ) | (1.89 | ) | 25.01 | (41.01 | ) | 143 | 1.61 | 1.57 | 1.55 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 46.71 | .49 | 2.54 | 3.03 | (.66 | ) | (3.63 | ) | (4.29 | ) | 45.45 | 5.52 | 190 | 1.61 | 1.57 | .99 | |||||||||||||||||||||||||||||||||||||
Class R-2: | Six months ended 9/30/2012(4)(5) | 38.39 | .28 | (.21 | ) | .07 | - | - | - | 38.46 | .21 | 1,028 | 1.62 | (6) | 1.62 | (6) | 1.52 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 41.60 | .33 | (3.26 | ) | (2.93 | ) | (.28 | ) | - | (.28 | ) | 38.39 | (7.00 | ) | 1,098 | 1.62 | 1.62 | .87 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 37.56 | .23 | 4.09 | 4.32 | (.28 | ) | - | (.28 | ) | 41.60 | 11.54 | 1,353 | 1.61 | 1.61 | .60 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.13 | .20 | 12.62 | 12.82 | (.39 | ) | - | (.39 | ) | 37.56 | 51.02 | 1,303 | 1.66 | 1.66 | .60 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 45.62 | .53 | (19.17 | ) | (18.64 | ) | (.46 | ) | (1.39 | ) | (1.85 | ) | 25.13 | (41.05 | ) | 784 | 1.68 | 1.64 | 1.51 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 46.84 | .50 | 2.54 | 3.04 | (.63 | ) | (3.63 | ) | (4.26 | ) | 45.62 | 5.51 | 1,296 | 1.61 | 1.57 | 1.01 | |||||||||||||||||||||||||||||||||||||
Class R-3: | Six months ended 9/30/2012(4)(5) | 38.73 | .36 | (.19 | ) | .17 | - | - | - | 38.90 | .44 | 6,636 | 1.16 | (6) | 1.16 | (6) | 1.97 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 42.01 | .51 | (3.31 | ) | (2.80 | ) | (.48 | ) | - | (.48 | ) | 38.73 | (6.52 | ) | 6,922 | 1.14 | 1.14 | 1.32 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 37.93 | .41 | 4.13 | 4.54 | (.46 | ) | - | (.46 | ) | 42.01 | 12.03 | 7,810 | 1.13 | 1.13 | 1.06 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.35 | .38 | 12.75 | 13.13 | (.55 | ) | - | (.55 | ) | 37.93 | 51.80 | 7,131 | 1.15 | 1.15 | 1.10 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 46.04 | .77 | (19.41 | ) | (18.64 | ) | (.66 | ) | (1.39 | ) | (2.05 | ) | 25.35 | (40.70 | ) | 4,139 | 1.11 | 1.08 | 2.14 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 47.20 | .78 | 2.54 | 3.32 | (.85 | ) | (3.63 | ) | (4.48 | ) | 46.04 | 6.05 | 7,639 | 1.11 | 1.07 | 1.55 | |||||||||||||||||||||||||||||||||||||
Class R-4: | Six months ended 9/30/2012(4)(5) | 38.79 | .42 | (.19 | ) | .23 | - | - | - | 39.02 | .59 | 12,191 | .85 | (6) | .85 | (6) | 2.26 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 42.09 | .62 | (3.33 | ) | (2.71 | ) | (.59 | ) | - | (.59 | ) | 38.79 | (6.25 | ) | 12,490 | .85 | .85 | 1.61 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.00 | .51 | 4.16 | 4.67 | (.58 | ) | - | (.58 | ) | 42.09 | 12.35 | 13,775 | .85 | .85 | 1.32 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.37 | .50 | 12.76 | 13.26 | (.63 | ) | - | (.63 | ) | 38.00 | 52.21 | 11,204 | .86 | .86 | 1.43 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 46.17 | .81 | (19.43 | ) | (18.62 | ) | (.79 | ) | (1.39 | ) | (2.18 | ) | 25.37 | (40.53 | ) | 7,290 | .85 | .82 | 2.29 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 47.31 | .88 | 2.60 | 3.48 | (.99 | ) | (3.63 | ) | (4.62 | ) | 46.17 | 6.32 | 10,970 | .85 | .81 | 1.75 | |||||||||||||||||||||||||||||||||||||
Class R-5: | Six months ended 9/30/2012(4)(5) | 39.43 | .49 | (.20 | ) | .29 | - | - | - | 39.72 | .76 | 13,362 | .55 | (6) | .55 | (6) | 2.57 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 42.78 | .76 | (3.40 | ) | (2.64 | ) | (.71 | ) | - | (.71 | ) | 39.43 | (5.99 | ) | 14,016 | .55 | .55 | 1.93 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.59 | .65 | 4.22 | 4.87 | (.68 | ) | - | (.68 | ) | 42.78 | 12.70 | 16,572 | .55 | .55 | 1.65 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2010 | 25.75 | .63 | 12.93 | 13.56 | (.72 | ) | - | (.72 | ) | 38.59 | 52.70 | 16,716 | .56 | .56 | 1.80 | ||||||||||||||||||||||||||||||||||||||
Year ended 3/31/2009 | 46.86 | .93 | (19.74 | ) | (18.81 | ) | (.91 | ) | (1.39 | ) | (2.30 | ) | 25.75 | (40.37 | ) | 13,529 | .54 | .51 | 2.60 | ||||||||||||||||||||||||||||||||||
Year ended 3/31/2008 | 47.94 | 1.05 | 2.63 | 3.68 | (1.13 | ) | (3.63 | ) | (4.76 | ) | 46.86 | 6.64 | 19,731 | .55 | .50 | 2.05 | |||||||||||||||||||||||||||||||||||||
Class R-6: | Six months ended 9/30/2012(4)(5) | 39.48 | .48 | (.18 | ) | .30 | - | - | - | 39.78 | .76 | 19,742 | .51 | (6) | .51 | (6) | 2.56 | (6) | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2012 | 42.85 | .73 | (3.36 | ) | (2.63 | ) | (.74 | ) | - | (.74 | ) | 39.48 | (5.94 | ) | 17,603 | .50 | .50 | 1.88 | |||||||||||||||||||||||||||||||||||
Year ended 3/31/2011 | 38.65 | .63 | 4.28 | 4.91 | (.71 | ) | - | (.71 | ) | 42.85 | 12.78 | 13,786 | .50 | .50 | 1.61 | ||||||||||||||||||||||||||||||||||||||
Period from 5/1/2009 to 3/31/2010(4) | 28.64 | .42 | 10.30 | 10.72 | (.71 | ) | - | (.71 | ) | 38.65 | 37.43 | 7,635 | .52 | (6) | .52 | (6) | 1.26 | (6) |
Six months ended September 30, | Year ended March 31 | |||||||||||||||||||||||
2012(4)(5) | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 13 | % | 24 | % | 31 | % | 26 | % | 41 | % | 38 | % |
(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 reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during [some of] the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes. | |||||||||||||
(4)Based on operations for the period shown and, accordingly, is not representative of a full year. | |||||||||||||
(5)Unaudited. | |||||||||||||
(6)Annualized. |
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 (April 1, 2012 through September 30, 2012).
Actual expenses:
The first line of each share class in the table on page 36 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 page 36 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 on the previous page. In addition, your ending account value would be lower by the amount of these fees.
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 4/1/2012 | Ending account value 9/30/2012 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A -- actual return | $ | 1,000.00 | $ | 1,005.84 | $ | 4.32 | .86 | % | ||||||||
Class A -- assumed 5% return | 1,000.00 | 1,020.76 | 4.36 | .86 | ||||||||||||
Class B -- actual return | 1,000.00 | 1,002.03 | 7.98 | 1.59 | ||||||||||||
Class B -- assumed 5% return | 1,000.00 | 1,017.10 | 8.04 | 1.59 | ||||||||||||
Class C -- actual return | 1,000.00 | 1,001.82 | 8.23 | 1.64 | ||||||||||||
Class C -- assumed 5% return | 1,000.00 | 1,016.85 | 8.29 | 1.64 | ||||||||||||
Class F-1 -- actual return | 1,000.00 | 1,005.87 | 4.32 | .86 | ||||||||||||
Class F-1 -- assumed 5% return | 1,000.00 | 1,020.76 | 4.36 | .86 | ||||||||||||
Class F-2 -- actual return | 1,000.00 | 1,007.35 | 2.97 | .59 | ||||||||||||
Class F-2 -- assumed 5% return | 1,000.00 | 1,022.11 | 2.99 | .59 | ||||||||||||
Class 529-A -- actual return | 1,000.00 | 1,005.61 | 4.63 | .92 | ||||||||||||
Class 529-A -- assumed 5% return | 1,000.00 | 1,020.46 | 4.66 | .92 | ||||||||||||
Class 529-B -- actual return | 1,000.00 | 1,001.55 | 8.63 | 1.72 | ||||||||||||
Class 529-B -- assumed 5% return | 1,000.00 | 1,016.44 | 8.69 | 1.72 | ||||||||||||
Class 529-C -- actual return | 1,000.00 | 1,001.57 | 8.58 | 1.71 | ||||||||||||
Class 529-C -- assumed 5% return | 1,000.00 | 1,016.50 | 8.64 | 1.71 | ||||||||||||
Class 529-E -- actual return | 1,000.00 | 1,004.40 | 5.93 | 1.18 | ||||||||||||
Class 529-E -- assumed 5% return | 1,000.00 | 1,019.15 | 5.97 | 1.18 | ||||||||||||
Class 529-F-1 -- actual return | 1,000.00 | 1,006.65 | 3.52 | .70 | ||||||||||||
Class 529-F-1 -- assumed 5% return | 1,000.00 | 1,021.56 | 3.55 | .70 | ||||||||||||
Class R-1 -- actual return | 1,000.00 | 1,002.10 | 8.13 | 1.62 | ||||||||||||
Class R-1 -- assumed 5% return | 1,000.00 | 1,016.95 | 8.19 | 1.62 | ||||||||||||
Class R-2 -- actual return | 1,000.00 | 1,002.08 | 8.13 | 1.62 | ||||||||||||
Class R-2 -- assumed 5% return | 1,000.00 | 1,016.95 | 8.19 | 1.62 | ||||||||||||
Class R-3 -- actual return | 1,000.00 | 1,004.40 | 5.83 | 1.16 | ||||||||||||
Class R-3 -- assumed 5% return | 1,000.00 | 1,019.25 | 5.87 | 1.16 | ||||||||||||
Class R-4 -- actual return | 1,000.00 | 1,005.94 | 4.27 | .85 | ||||||||||||
Class R-4 -- assumed 5% return | 1,000.00 | 1,020.81 | 4.31 | .85 | ||||||||||||
Class R-5 -- actual return | 1,000.00 | 1,007.62 | 2.77 | .55 | ||||||||||||
Class R-5 -- assumed 5% return | 1,000.00 | 1,022.31 | 2.79 | .55 | ||||||||||||
Class R-6 -- actual return | 1,000.00 | 1,007.59 | 2.57 | .51 | ||||||||||||
Class R-6 -- assumed 5% return | 1,000.00 | 1,022.51 | 2.59 | .51 | ||||||||||||
*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). |
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
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Counsel
K&L Gates LLP
Four Embarcadero Center, Suite 1200
San Francisco, CA 94111-5994
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
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
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 September 30, 2012, portfolio of EuroPacific Growth Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).
EuroPacific Growth Fund 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 EuroPacific Growth Fund, 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 December 31, 2012, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
The American Funds difference
Since 1931, American Funds has helped investors pursue long-term investment success. Our consistent approach — in combination with a proven system — has resulted in a superior long-term track record.
Consistent approach
We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. Our portfolio counselors average 25 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1
Proven system
Our system combines individual accountability with teamwork. Each fund is divided into portions that are managed by investment professionals with varied backgrounds, ages and investment styles. 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 91% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 60% of 10-year periods and 67% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3
1As of 12/31/11. |
2Based on Class A share results for periods through 12/31/11. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date. |
3Based on management fees for the 20-year period ended 12/31/11 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 InvestorsSM |
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® |
The Capital Group Companies
American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust
Lit. No. MFGESRX-016-1112P
Litho in USA AGD/ALD/8082-S33502
Printed on paper containing 10% post-consumer waste
Printed with inks containing soy and/or vegetable oil
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
EuroPacific Growth Fund®
Investment portfolio
September 30, 2012
unaudited
Common stocks — 92.15% | Shares | Value (000) | ||||||
FINANCIALS — 15.71% | ||||||||
Prudential PLC | 92,393,984 | $ | 1,195,820 | |||||
Housing Development Finance Corp. Ltd. | 71,631,730 | 1,051,694 | ||||||
Sberbank of Russia (ADR) | 50,707,875 | 593,702 | ||||||
Sberbank of Russia (GDR)1 | 18,040,109 | 211,069 | ||||||
Barclays PLC | 202,186,502 | 701,465 | ||||||
HDFC Bank Ltd. | 57,345,000 | 684,020 | ||||||
Agricultural Bank of China, Class H | 1,669,986,000 | 650,416 | ||||||
AXA SA | 38,503,268 | 573,458 | ||||||
UniCredit SpA2 | 136,186,519 | 565,621 | ||||||
Siam Commercial Bank PCL | 90,753,900 | 496,817 | ||||||
AIA Group Ltd. | 128,223,600 | 477,900 | ||||||
Société Générale2 | 16,391,896 | 465,523 | ||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H | 55,203,000 | 417,188 | ||||||
Fairfax Financial Holdings Ltd. | 711,291 | 275,149 | ||||||
Fairfax Financial Holdings Ltd. (CAD denominated) | 325,000 | 125,534 | ||||||
Kotak Mahindra Bank Ltd. | 31,467,137 | 387,038 | ||||||
Hana Financial Group Inc. | 11,668,630 | 357,484 | ||||||
Brookfield Asset Management Inc., Class A | 10,352,000 | 357,248 | ||||||
Banco Bradesco SA, preferred nominative | 21,565,243 | 346,469 | ||||||
Bank of China Ltd., Class H | 863,726,600 | 328,602 | ||||||
ICICI Bank Ltd. | 16,154,429 | 324,283 | ||||||
Deutsche Bank AG | 8,017,146 | 316,748 | ||||||
Itaú Unibanco Holding SA, preferred nominative (ADR) | 9,149,522 | 139,805 | ||||||
Itaú Unibanco Holding SA, preferred nominative | 8,931,699 | 134,774 | ||||||
Ayala Land, Inc. | 468,836,900 | 268,051 | ||||||
Banco Santander, SA2 | 32,174,402 | 239,598 | ||||||
BNP Paribas SA | 5,008,298 | 238,000 | ||||||
Industrial and Commercial Bank of China Ltd., Class H | 401,220,755 | 236,985 | ||||||
Toronto-Dominion Bank | 2,795,000 | 233,101 | ||||||
Credit Suisse Group AG | 10,074,480 | 213,487 | ||||||
Sampo Oyj, Class A | 6,613,722 | 205,760 | ||||||
Henderson Land Development Co. Ltd. | 25,859,352 | 186,090 | ||||||
Bank of Ireland2 | 1,475,842,276 | 183,964 | ||||||
Bank of Nova Scotia | 2,750,000 | 150,829 | ||||||
Banco Bilbao Vizcaya Argentaria, SA | 18,266,049 | 143,489 | ||||||
DNB ASA | 11,417,796 | 140,009 | ||||||
ING Groep NV, depository receipts2 | 15,524,880 | 122,674 | ||||||
Westfield Group | 11,640,000 | 122,674 | ||||||
Sun Hung Kai Properties Ltd. | 8,246,000 | 120,807 | ||||||
UBS AG | 9,861,786 | 120,061 | ||||||
CITIC Securities Co. Ltd., Class H | 67,188,000 | 118,536 | ||||||
Resona Holdings, Inc. | 27,900,000 | 114,403 | ||||||
Royal Bank of Scotland Group PLC2 | 26,993,060 | 112,022 | ||||||
HSBC Holdings PLC (Hong Kong) | 11,738,967 | 110,440 | ||||||
Mizuho Financial Group, Inc. | 65,920,000 | 107,276 | ||||||
PartnerRe Holdings Ltd. | 1,395,000 | 103,621 | ||||||
Samsung Card Co., Ltd. | 2,711,988 | 97,726 | ||||||
Türkiye Garanti Bankasi AS | 22,163,923 | 92,491 | ||||||
Bancolombia SA (ADR) | 1,530,000 | 91,356 | ||||||
Daito Trust Construction Co., Ltd. | 897,700 | 90,299 | ||||||
Hongkong Land Holdings Ltd. | 13,800,000 | 82,938 | ||||||
China Construction Bank Corp., Class H | 114,490,000 | 79,437 | ||||||
Woori Finance Holdings Co., Ltd. | 6,964,000 | 68,924 | ||||||
Banco Santander (Brasil) SA, units | 7,946,600 | 58,093 | ||||||
Banco Santander (Brasil) SA, units (ADR) | 1,003,400 | 7,395 | ||||||
Erste Bank der oesterreichischen Sparkassen AG2 | 2,853,530 | 63,676 | ||||||
China Life Insurance Co. Ltd., Class H | 20,360,000 | 58,816 | ||||||
Lloyds Banking Group PLC2 | 87,359,895 | 54,777 | ||||||
China Pacific Insurance (Group) Co., Ltd., Class H | 15,509,000 | 46,903 | ||||||
Chongqing Rural Commercial Bank Co., Ltd., Class H | 106,529,000 | 42,040 | ||||||
Deutsche Börse AG | 493,000 | 27,283 | ||||||
Svenska Handelsbanken AB, Class A | 550,000 | 20,606 | ||||||
15,752,464 | ||||||||
CONSUMER DISCRETIONARY — 13.06% | ||||||||
Honda Motor Co., Ltd. | 31,298,250 | 961,326 | ||||||
Volkswagen AG, nonvoting preferred | 4,664,575 | 850,878 | ||||||
Hyundai Motor Co. | 3,012,790 | 683,108 | ||||||
Hyundai Mobis Co., Ltd. | 2,269,598 | 634,060 | ||||||
Kia Motors Corp. | 9,690,717 | 605,111 | ||||||
Bayerische Motoren Werke AG | 7,468,600 | 546,195 | ||||||
adidas AG | 5,658,000 | 464,169 | ||||||
Naspers Ltd., Class N | 7,350,000 | 454,767 | ||||||
Tata Motors Ltd. | 86,421,024 | 438,372 | ||||||
Rakuten, Inc. | 41,707,400 | 424,877 | ||||||
Sands China Ltd. | 105,906,000 | 395,404 | ||||||
Industria de Diseño Textil, SA | 3,088,000 | 383,452 | ||||||
Li & Fung Ltd. | 239,476,000 | 371,226 | ||||||
Hero MotoCorp Ltd. | 9,975,363 | 355,612 | ||||||
British Sky Broadcasting Group PLC | 29,539,000 | 354,646 | ||||||
Nikon Corp. | 12,459,000 | 342,926 | ||||||
H & M Hennes & Mauritz AB, Class B | 9,687,450 | 336,542 | ||||||
Toyota Motor Corp. | 8,265,000 | 321,958 | ||||||
Renault SA | 6,859,584 | 321,920 | ||||||
Nissan Motor Co., Ltd. | 35,817,200 | 305,208 | ||||||
Cie. Générale des Établissements Michelin, Class B | 3,506,615 | 274,696 | ||||||
Nokian Renkaat Oyj | 6,206,000 | 252,409 | ||||||
Swatch Group Ltd, non-registered shares | 451,972 | 180,308 | ||||||
Swatch Group Ltd | 588,601 | 40,899 | ||||||
WPP PLC | 15,373,000 | 208,897 | ||||||
PT Astra International Tbk | 269,044,000 | 208,038 | ||||||
Daimler AG | 4,173,400 | 201,998 | ||||||
Shangri-La Asia Ltd. | 94,878,000 | 184,028 | ||||||
LVMH Moët Hennessey-Louis Vuitton SA | 980,000 | 147,344 | ||||||
Belle International Holdings Ltd. | 81,200,000 | 147,026 | ||||||
Mahindra & Mahindra Ltd. | 8,840,000 | 144,923 | ||||||
Paddy Power PLC | 1,948,937 | 144,584 | ||||||
Burberry Group PLC | 8,922,000 | 144,217 | ||||||
Intercontinental Hotels Group PLC | 4,945,000 | 129,360 | ||||||
Truworths International Ltd. | 10,700,000 | 120,846 | ||||||
Melco Crown Entertainment Ltd. (ADR)2 | 8,914,000 | 120,161 | ||||||
Yamada Denki Co., Ltd. | 2,692,150 | 118,152 | ||||||
Ctrip.com International, Ltd. (ADR)2 | 6,807,000 | 114,902 | ||||||
Maruti Suzuki India Ltd. | 3,725,509 | 95,396 | ||||||
Carnival PLC | 2,500,000 | 92,165 | ||||||
JCDecaux SA | 3,528,700 | 80,080 | ||||||
Techtronic Industries Co. Ltd. | 43,815,000 | 79,899 | ||||||
Suzuki Motor Corp. | 3,946,333 | 76,611 | ||||||
Isuzu Motors Ltd. | 14,500,000 | 70,047 | ||||||
NEXT PLC | 911,000 | 50,752 | ||||||
Kingfisher PLC | 9,259,650 | 39,504 | ||||||
Dongfeng Motor Group Co., Ltd., Class H | 26,200,000 | 30,579 | ||||||
Whitbread PLC | 642,382 | 23,526 | ||||||
Fiat SpA2 | 2,219,500 | 11,842 | ||||||
GOME Electrical Appliances Holding Ltd.2 | 86,002,000 | 9,095 | ||||||
13,094,041 | ||||||||
HEALTH CARE — 11.65% | ||||||||
Novo Nordisk A/S, Class B | 22,139,400 | 3,497,502 | ||||||
Novartis AG | 34,321,725 | 2,100,176 | ||||||
Bayer AG | 19,264,082 | 1,654,397 | ||||||
Teva Pharmaceutical Industries Ltd. (ADR) | 22,137,300 | 916,705 | ||||||
CSL Ltd. | 14,236,329 | 679,298 | ||||||
UCB SA3 | 11,918,602 | 655,372 | ||||||
Roche Holding AG | 3,360,000 | 627,700 | ||||||
Fresenius SE & Co. KGaA | 2,879,309 | 334,263 | ||||||
Sonova Holding AG | 2,660,000 | 268,828 | ||||||
William Demant Holding A/S2 | 2,767,312 | 248,040 | ||||||
Grifols, SA, Class A2 | 6,050,000 | 199,806 | ||||||
Merck KGaA | 1,098,724 | 135,544 | ||||||
Sinopharm Group Co. Ltd., Class H | 33,100,000 | 106,078 | ||||||
Terumo Corp. | 2,175,000 | 93,644 | ||||||
Shandong Weigao Group Medical Polymer Co. Ltd., Class H | 57,742,000 | 74,616 | ||||||
Essilor International | 654,000 | 61,242 | ||||||
Fresenius Medical Care AG & Co. KGaA | 480,000 | 35,196 | ||||||
11,688,407 | ||||||||
CONSUMER STAPLES — 11.05% | ||||||||
Nestlé SA | 24,789,000 | 1,562,985 | ||||||
Anheuser-Busch InBev NV | 16,744,623 | 1,423,825 | ||||||
Anheuser-Busch InBev NV, VVPR STRIPS2 | 10,093,238 | 13 | ||||||
British American Tobacco PLC | 24,974,999 | 1,282,280 | ||||||
Pernod Ricard SA | 6,288,860 | 705,596 | ||||||
Shoprite Holdings Ltd. | 25,335,000 | 512,423 | ||||||
L’Oréal SA, non-registered shares | 3,065,000 | 379,137 | ||||||
L’Oréal SA, bonus shares | 1,041,600 | 128,845 | ||||||
Associated British Foods PLC | 19,280,000 | 401,309 | ||||||
China Resources Enterprise, Ltd. | 119,394,000 | 398,799 | ||||||
Japan Tobacco Inc. | 12,921,000 | 387,762 | ||||||
Unilever NV, depository receipts | 9,417,000 | 333,149 | ||||||
OJSC Magnit (GDR) | 9,663,715 | 328,470 | ||||||
SABMiller PLC | 7,286,000 | 320,020 | ||||||
Danone SA | 5,179,895 | 318,909 | ||||||
Koninklijke Ahold NV | 24,513,000 | 307,035 | ||||||
Hengan International Group Co. Ltd. | 27,734,000 | 262,173 | ||||||
ITC Ltd. | 45,114,619 | 232,993 | ||||||
Asahi Group Holdings, Ltd. | 9,330,000 | 230,022 | ||||||
Wal-Mart de México, SAB de CV, Series V | 65,671,436 | 184,743 | ||||||
Carlsberg A/S, Class B | 1,997,056 | 176,935 | ||||||
Coca-Cola Amatil Ltd. | 12,428,216 | 174,813 | ||||||
Diageo PLC | 5,500,000 | 154,492 | ||||||
Swedish Match AB | 3,179,000 | 128,538 | ||||||
Cia. de Bebidas das Américas – AmBev, preferred nominative (ADR) | 3,165,000 | 121,125 | ||||||
Coca-Cola Hellenic Bottling Co. SA | 5,700,000 | 106,356 | ||||||
Woolworths Ltd. | 3,350,626 | 99,958 | ||||||
Unilever PLC | 2,526,750 | 91,886 | ||||||
Svenska Cellulosa AB SCA, Class B | 4,145,696 | 76,996 | ||||||
Wilmar International Ltd. | 24,393,000 | 64,600 | ||||||
China Yurun Food Group Ltd.2 | 88,145,000 | 63,204 | ||||||
Tingyi (Cayman Islands) Holding Corp. | 17,764,000 | 53,493 | ||||||
Wesfarmers Ltd. | 1,498,120 | 53,240 | ||||||
Treasury Wine Estates Ltd. | 3,676,000 | 19,180 | ||||||
11,085,304 | ||||||||
INFORMATION TECHNOLOGY — 10.01% | ||||||||
Samsung Electronics Co. Ltd. | 1,994,203 | 2,415,095 | ||||||
Samsung Electronics Co. Ltd., nonvoting preferred | 48,800 | 34,643 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 416,616,136 | 1,276,276 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) | 5,822,723 | 92,116 | ||||||
Tencent Holdings Ltd. | 25,760,000 | 877,708 | ||||||
Baidu, Inc., Class A (ADR)2 | 7,374,744 | 861,518 | ||||||
SAP AG | 6,161,000 | 436,316 | ||||||
SAP AG (ADR) | 2,625,000 | 187,241 | ||||||
Murata Manufacturing Co., Ltd. | 9,853,500 | 524,619 | ||||||
Quanta Computer Inc. | 149,100,005 | 396,230 | ||||||
Infineon Technologies AG3 | 62,045,947 | 393,717 | ||||||
ASML Holding NV | 7,318,972 | 391,164 | ||||||
Nintendo Co., Ltd. | 2,961,800 | 375,349 | ||||||
NetEase, Inc. (ADR)2 | 6,370,400 | 357,634 | ||||||
Arm Holdings PLC | 26,970,000 | 250,419 | ||||||
HOYA Corp. | 10,860,000 | 238,658 | ||||||
Hexagon AB, Class B | 9,602,574 | 205,828 | ||||||
Hirose Electric Co., Ltd. | 1,242,300 | 139,289 | ||||||
DeNA Co., Ltd. | 3,250,000 | 107,945 | ||||||
HTC Corp. | 10,902,150 | 105,624 | ||||||
Delta Electronics, Inc. | 21,272,603 | 82,366 | ||||||
TDK Corp. | 1,888,900 | 70,337 | ||||||
ZTE Corp., Class H | 38,304,400 | 61,453 | ||||||
Mail.ru Group Ltd. (GDR) | 1,025,000 | 34,225 | ||||||
Mail.ru Group Ltd. (GDR)1 | 735,000 | 24,542 | ||||||
Keyence Corp. | 159,500 | 40,877 | ||||||
Nokia Corp. | 10,700,000 | 27,638 | ||||||
STMicroelectronics NV | 4,957,086 | 26,710 | ||||||
10,035,537 | ||||||||
INDUSTRIALS — 7.95% | ||||||||
Schneider Electric SA | 11,068,156 | 655,046 | ||||||
Atlas Copco AB, Class A | 11,600,330 | 270,724 | ||||||
Atlas Copco AB, Class B | 12,087,000 | 252,825 | ||||||
Siemens AG | 5,056,000 | 504,249 | ||||||
Ryanair Holdings PLC (ADR)2 | 14,952,819 | 482,228 | ||||||
Beijing Enterprises Holdings Ltd. | 53,800,500 | 358,714 | ||||||
Experian PLC | 21,526,000 | 357,682 | ||||||
Jardine Matheson Holdings Ltd. | 5,584,800 | 317,775 | ||||||
ASSA ABLOY AB, Class B | 9,493,000 | 308,109 | ||||||
Weir Group PLC | 9,889,000 | 282,328 | ||||||
KONE Oyj, Class B | 3,782,393 | 261,741 | ||||||
AB Volvo, Class B | 18,000,000 | 252,375 | ||||||
Aggreko PLC | 6,511,843 | 243,219 | ||||||
Legrand SA | 6,451,090 | 243,145 | ||||||
Geberit AG | 1,055,000 | 229,397 | ||||||
European Aeronautic Defence and Space Co. EADS NV | 6,769,588 | 214,567 | ||||||
Komatsu Ltd. | 10,750,000 | 211,722 | ||||||
FANUC CORP. | 1,261,000 | 203,272 | ||||||
Bureau Veritas SA | 1,885,000 | 193,592 | ||||||
Meggitt PLC | 29,391,547 | 187,425 | ||||||
Kubota Corp. | 18,060,000 | 182,822 | ||||||
Marubeni Corp. | 25,800,000 | 164,639 | ||||||
SMC Corp. | 864,700 | 139,389 | ||||||
Wolseley PLC | 3,012,485 | 128,522 | ||||||
Hutchison Whampoa Ltd. | 12,943,000 | 125,523 | ||||||
Hutchison Port Holdings Trust | 163,573,000 | 118,590 | ||||||
Qantas Airways Ltd.2 | 91,220,000 | 115,439 | ||||||
VINCI SA | 2,536,000 | 108,016 | ||||||
ABB Ltd | 5,600,000 | 105,034 | ||||||
Serco Group PLC | 9,442,000 | 88,432 | ||||||
Vallourec SA | 2,043,000 | 86,505 | ||||||
Nabtesco Corp. | 4,500,000 | 82,631 | ||||||
SGS SA | 38,834 | 79,774 | ||||||
International Consolidated Airlines Group, SA (CDI) (GBP denominated)2 | 30,070,400 | 72,351 | ||||||
Fiat Industrial SpA | 6,700,000 | 65,478 | ||||||
A.P. Moller-Maersk A/S, Class B | 9,054 | 64,797 | ||||||
Alstom SA | 1,590,804 | 55,778 | ||||||
Air France2 | 8,160,720 | 52,886 | ||||||
China Merchants Holdings (International) Co., Ltd. | 15,133,884 | 46,647 | ||||||
Kühne + Nagel International AG | 330,000 | 37,263 | ||||||
Jardine Strategic Holdings Ltd. | 670,000 | 22,726 | ||||||
7,973,377 | ||||||||
TELECOMMUNICATION SERVICES — 6.20% | ||||||||
SOFTBANK CORP. | 44,036,600 | 1,783,133 | ||||||
América Móvil, SAB de CV, Series L (ADR) | 59,248,602 | 1,507,285 | ||||||
América Móvil, SAB de CV, Series L | 136,765,100 | 174,679 | ||||||
MTN Group Ltd. | 37,364,200 | 719,226 | ||||||
Vodafone Group PLC | 139,344,919 | 395,462 | ||||||
China Telecom Corp. Ltd., Class H | 539,048,000 | 311,442 | ||||||
TeliaSonera AB | 38,435,700 | 276,647 | ||||||
Koninklijke KPN NV | 22,377,972 | 170,988 | ||||||
Advanced Info Service PCL | 23,806,500 | 165,516 | ||||||
Axiata Group Bhd. | 69,481,000 | 147,759 | ||||||
OJSC Mobile TeleSystems (ADR) | 7,222,639 | 126,541 | ||||||
Iliad SA | 657,500 | 107,051 | ||||||
Turkcell Iletisim Hizmetleri AS2 | 12,655,000 | 77,102 | ||||||
Telekomunikacja Polska SA | 15,001,227 | 77,028 | ||||||
Millicom International Cellular SA (SDR) | 660,000 | 61,240 | ||||||
China Unicom (Hong Kong) Ltd. | 24,000,000 | 39,370 | ||||||
Bharti Airtel Ltd. | 7,740,000 | 38,953 | ||||||
Portugal Telecom, SGPS, SA | 7,250,000 | 35,841 | ||||||
6,215,263 | ||||||||
MATERIALS — 6.12% | ||||||||
Syngenta AG | 1,792,815 | 670,042 | ||||||
Linde AG | 2,825,739 | 486,583 | ||||||
Nitto Denko Corp. | 8,261,100 | 393,789 | ||||||
UltraTech Cement Ltd. | 10,152,979 | 378,795 | ||||||
BASF SE | 4,376,500 | 369,217 | ||||||
PT Semen Gresik (Persero) Tbk | 188,657,000 | 284,858 | ||||||
Amcor Ltd. | 33,954,916 | 273,318 | ||||||
POSCO | 775,000 | 254,864 | ||||||
Holcim Ltd | 3,758,180 | 239,357 | ||||||
Chr. Hansen Holding A/S | 6,901,000 | 207,928 | ||||||
Shin-Etsu Chemical Co., Ltd. | 3,610,000 | 203,074 | ||||||
Potash Corp. of Saskatchewan Inc. | 4,670,000 | 202,771 | ||||||
Orica Ltd. | 7,718,819 | 199,127 | ||||||
CRH PLC | 9,174,000 | 176,836 | ||||||
Impala Platinum Holdings Ltd. | 10,240,488 | 171,023 | ||||||
Glencore International PLC | 26,541,000 | 147,047 | ||||||
L’Air Liquide SA, bonus shares4 | 900,471 | 111,607 | ||||||
L’Air Liquide SA, non-registered shares | 260,101 | 32,238 | ||||||
Vedanta Resources PLC | 8,052,097 | 133,796 | ||||||
Givaudan SA | 119,832 | 113,716 | ||||||
K+S AG | 2,213,000 | 108,819 | ||||||
First Quantum Minerals Ltd. | 4,750,000 | 101,223 | ||||||
Akzo Nobel NV | 1,790,000 | 101,188 | ||||||
BHP Billiton PLC | 3,000,000 | 93,255 | ||||||
Xstrata PLC | 5,900,489 | 91,232 | ||||||
Grasim Industries Ltd. | 1,220,137 | 76,668 | ||||||
Grasim Industries Ltd. (GDR)4 | 180,009 | 11,311 | ||||||
ArcelorMittal | 5,324,000 | 76,352 | ||||||
Koninklijke DSM NV | 1,515,979 | 75,587 | ||||||
Vale SA, ordinary nominative (ADR) | 4,000,000 | 71,600 | ||||||
Titan Cement Co. SA2 | 3,521,000 | 67,870 | ||||||
Barrick Gold Corp. | 1,570,000 | 65,563 | ||||||
Rio Tinto PLC | 1,200,000 | 55,904 | ||||||
JFE Holdings, Inc. | 4,000,000 | 52,794 | ||||||
Anhui Conch Cement Co. Ltd., Class H | 12,070,000 | 37,592 | ||||||
6,136,944 | ||||||||
ENERGY — 5.24% | ||||||||
BP PLC | 142,094,964 | 1,001,571 | ||||||
Royal Dutch Shell PLC, Class B | 12,402,000 | 440,188 | ||||||
Royal Dutch Shell PLC, Class A | 3,195,000 | 110,444 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 1,292,999 | 92,191 | ||||||
Royal Dutch Shell PLC, Class A (ADR) | 1,000,000 | 69,410 | ||||||
Canadian Natural Resources, Ltd. | 16,897,600 | 521,314 | ||||||
Saipem SpA, Class S | 8,734,566 | 419,454 | ||||||
INPEX CORP. | 70,250 | 419,034 | ||||||
Petróleo Brasileiro SA – Petrobras, ordinary nominative (ADR) | 7,614,000 | 174,665 | ||||||
OJSC Gazprom (ADR) | 34,098,000 | 342,003 | ||||||
Crescent Point Energy Corp. | 6,205,000 | 274,747 | ||||||
Transocean Ltd. | 4,554,961 | 204,472 | ||||||
KunLun Energy Co. Ltd. | 113,000,000 | 197,901 | ||||||
Cairn India Ltd.2 | 31,450,000 | 197,394 | ||||||
TOTAL SA | 3,695,000 | 183,283 | ||||||
Oil Search Ltd. | 19,053,445 | 146,650 | ||||||
Suncor Energy Inc. | 2,944,000 | 96,846 | ||||||
China National Offshore Oil Corp. | 39,400,100 | 80,792 | ||||||
BG Group PLC | 3,950,000 | 79,731 | ||||||
EnCana Corp. | 3,300,000 | 72,336 | ||||||
Eni SpA | 2,574,405 | 56,306 | ||||||
Essar Energy PLC2 | 24,995,900 | 46,337 | ||||||
SeaDrill Ltd. | 856,681 | 33,451 | ||||||
5,260,520 | ||||||||
UTILITIES — 1.65% | ||||||||
Power Grid Corp. of India Ltd. | 162,690,336 | 371,679 | ||||||
Power Assets Holdings Ltd. | 43,010,000 | 365,255 | ||||||
National Grid PLC | 29,697,291 | 327,534 | ||||||
Hong Kong and China Gas Co. Ltd. | 118,721,539 | 301,012 | ||||||
GDF SUEZ | 7,317,911 | 163,628 | ||||||
E.ON AG | 3,000,000 | 71,185 | ||||||
SSE PLC | 2,125,000 | 47,766 | ||||||
SUEZ Environnement Co. | 521,250 | 5,907 | ||||||
1,653,966 | ||||||||
MISCELLANEOUS — 3.51% | ||||||||
Other common stocks in initial period of acquisition | 3,517,161 | |||||||
Total common stocks (cost: $67,371,388,000) | 92,412,984 | |||||||
Principal amount | ||||||||
Convertible securities — 0.12% | (000 | ) | ||||||
FINANCIALS — 0.12% | ||||||||
Credit Suisse Group AG 4.00% convertible notes 2013 | CHF92,070 | 120,704 | ||||||
Total convertible securities (cost: $94,155,000) | 120,704 | |||||||
Bonds & notes — 0.57% | ||||||||
U.S. TREASURY BONDS & NOTES — 0.57% | ||||||||
U.S. Treasury 3.50% 2013 | $ | 100,000 | 102,205 | |||||
U.S. Treasury 0.25% 2014 | 250,000 | 250,093 | ||||||
U.S. Treasury 1.25% 2014 | 216,500 | 219,561 | ||||||
571,859 | ||||||||
Total bonds & notes (cost: $571,715,000) | 571,859 | |||||||
Short-term securities — 7.91% | ||||||||
Fannie Mae 0.10%–0.175% due 10/1/2012–3/20/2013 | 2,118,424 | 2,117,661 | ||||||
Freddie Mac 0.10%–0.19% due 10/1/2012–7/2/2013 | 1,523,129 | 1,522,572 | ||||||
Federal Home Loan Bank 0.10%–0.22% due 10/3/2012–7/17/2013 | 1,415,705 | 1,414,830 | ||||||
U.S. Treasury Bills 0.111%–0.194% due 10/11/2012–8/22/2013 | 1,124,100 | 1,123,574 | ||||||
Federal Farm Credit Banks 0.17%–0.22% due 12/27/2012–7/5/2013 | 303,100 | 302,851 | ||||||
Private Export Funding Corp. 0.13%–0.26% due 10/9–12/18/20121 | 216,700 | 216,613 | ||||||
Québec (Province of) 0.16%–0.22% due 10/9/2012–1/22/20131 | 180,700 | 180,638 | ||||||
Coca-Cola Co. 0.23%–0.25% due 11/7–12/4/20121 | 116,450 | 116,425 | ||||||
Straight-A Funding LLC 0.18% due 10/30–11/2/20121 | 103,400 | 103,381 | ||||||
Total Capital Canada Ltd. 0.17%–0.18% due 11/15–11/27/20121 | 86,500 | 86,464 | ||||||
Toronto-Dominion Holdings USA Inc. 0.15%–0.16% due 10/4–10/18/20121 | 84,600 | 84,596 | ||||||
Commonwealth Bank of Australia 0.18%–0.19% due 12/7–12/10/20121 | 83,800 | 83,772 | ||||||
Svenska Handelsbanken Inc. 0.21%–0.23% due 11/26/20121 | 74,200 | 74,174 | ||||||
Australia & New Zealand Banking Group, Ltd. 0.18% due 11/27–12/3/20121 | 69,900 | 69,880 | ||||||
Victory Receivables Corp. 0.19% due 10/18/20121 | 50,000 | 49,995 | ||||||
Procter & Gamble Co. 0.14% due 10/30/20121 | 50,000 | 49,994 | ||||||
Toyota Credit Canada Inc. 0.17% due 10/30/2012 | 50,000 | 49,993 | ||||||
General Electric Capital Corp. 0.23% due 11/26/2012 | 50,000 | 49,990 | ||||||
Novartis Securities Investment Ltd. 0.19% due 10/9/20121 | 46,000 | 45,997 | ||||||
Bank of Nova Scotia 0.135% due 10/23/2012 | 45,000 | 44,996 | ||||||
Thunder Bay Funding, LLC 0.17% due 11/7/20121 | 39,019 | 39,012 | ||||||
Province of Ontario 0.16% due 10/31/2012 | 37,500 | 37,491 | ||||||
GlaxoSmithKline Finance PLC 0.13% due 10/10/20121 | 31,800 | 31,799 | ||||||
Variable Funding Capital Company LLC 0.20% due 10/15/20121 | 24,800 | 24,797 | ||||||
AstraZeneca PLC 0.14% due 10/10/20121 | 9,100 | 9,099 | ||||||
Total short-term securities (cost: $7,929,866,000) | 7,930,594 | |||||||
Total investment securities (cost: $75,967,124,000) | 101,036,141 | |||||||
Other assets less liabilities | (753,654 | ) | ||||||
Net assets | $ | 100,282,487 |
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.
1Acquired in a transaction exempt from registration under Rule 144A or 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 $1,502,247,000, which represented 1.50% of the net assets of the fund.
2Security did not produce income during the last 12 months.
3Represents an affiliated company as defined under the Investment Company Act of 1940.
4Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,” was $124,072,000, which represented .12% of the net assets of the fund.
Key to abbreviations
ADR = American Depositary Receipts
CDI = CREST Depository Interest
GDR = Global Depositary Receipts
SDR = Swedish Depositary Receipts
CAD = Canadian dollars
GBP = British pounds
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.
MFGEFPX-016-1112O-S32850
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.
EUROPACIFIC GROWTH FUND | |
By /s/ Gina H. Despres | |
Gina H. Despres, Vice Chairman and Principal Executive Officer | |
Date: November 30, 2012 |
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/ Gina H. Despres |
Gina H. Despres, Vice Chairman and Principal Executive Officer |
Date: November 30, 2012 |
By /s/ Brian C. Janssen |
Brian C. Janssen, Treasurer and Principal Financial Officer |
Date: November 30, 2012 |