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, 2015
Michael W. Stockton
EuroPacific Growth Fund
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
ITEM 1 – Reports to Stockholders
EuroPacific Growth Fund® Semi-annual report for the six months ended September 30, 2015 |
EuroPacific Growth Fund seeks to provide you with long-term growth of capital.
This fund is one of more than 40 offered by one of the nation’s largest mutual fund families, American Funds, from Capital Group. For more than 80 years, Capital has invested with a long-term focus based on thorough research and attention to risk.
Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.
Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended September 30, 2015:
Class A shares | 1 year | 5 years | 10 years | |||
Reflecting 5.75% maximum sales charge | –10.70% | 2.96% | 4.40% |
For other share class results, visit americanfunds.com and americanfundsretirement.com.
The total annual fund operating expense ratio was 0.83% for Class A shares as of the prospectus dated June 1, 2015.
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.
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.
We continue to find
attractively valued
companies that are
likely to benefit
from pockets of
growth in the
global economy.
Fellow investors:
International markets declined during the six months ended September 30, 2015, amid increasing signs of an economic slowdown in China and the worsening debt crisis in Greece. Market volatility was exacerbated by geopolitical conflicts in the Middle East and lower commodity prices, which sent shares of energy and materials companies sharply lower as demand weakened. Defensive sectors, including consumer staples and utilities, generally held up better than cyclical stocks.
Against this backdrop, EuroPacific Growth Fund’s return was –8.96% for the period, compared with –11.71% for the unmanaged MSCI ACWI (All Country World Index) ex USA, which reflects the returns of more than 40 developed and
Results at a glance
For periods ended September 30, 2015, with all distributions reinvested
Cumulative total returns | Average annual total returns | |||||||||||||||||||
Lifetime | ||||||||||||||||||||
6 months | 1 year | 5 years | 10 years | (since 4/16/84) | ||||||||||||||||
EuroPacific Growth Fund (Class A shares) | –8.96 | % | –5.24 | % | 4.19 | % | 5.02 | % | 10.77 | % | ||||||||||
MSCI ACWI ex USA1,2 | –11.71 | –12.16 | 1.82 | 3.03 | — | |||||||||||||||
MSCI EAFE Index1,3 | –9.68 | –8.66 | 3.98 | 2.97 | 8.21 | |||||||||||||||
Lipper International Funds Average | –8.84 | –7.87 | 3.51 | 3.06 | 8.46 |
1 | The market indexes are unmanaged and, therefore, have no expenses. Investors cannot invest directly in an index. |
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. |
EuroPacific Growth Fund | 1 |
developing country stock markets. However, the fund finished slightly behind the Lipper International Funds Average, a peer group measure, which fell 8.84%. Lipper averages reflect the current composition of all eligible mutual funds (all share classes) within a given category. As shown in the table on page 1, the fund has outpaced both measures over longer time periods.
The market environment
European stocks fell amid the slowdown in China and mixed reports about the health of the euro zone. Economic activity increased just 1.5% on an annualized basis due in part to tepid growth in both Germany and France. Inflation declined slightly in September, leading to speculation that the European Central Bank (ECB) may increase its monthly bond purchases of €60 billion in an attempt to spur lending and boost consumer prices. ECB President Mario Draghi confirmed that the central bank stands ready to provide additional monetary stimulus if inflation weakens further.
Greece’s sovereign debt crisis reignited, triggering investor concerns that the country would default on its debt and exit the euro zone. Greek leaders failed to make a €1.55 billion loan payment to the International Monetary Fund (IMF) in June and proposed a modified bailout package that would restructure the nation’s debt and extend repayment by two years. Fears waned somewhat as elections in September solidified the power of Greek Prime Minister Alexis Tsipras, allowing him to move forward with the €86 billion bailout package. The plan calls for strict austerity measures in exchange for further financial aid from euro-zone lenders and the IMF.
Japan equities slid, hurt by China, one of its largest trading partners, as well as pessimism about the domestic economy. Disappointing economic data sparked fresh doubts about Prime Minister Shinzo Abe’s drive to boost growth and inflation. Despite ongoing monetary stimulus by the Bank of Japan, second-quarter GDP contracted by an annualized 1.2%, hurt by declining business investment and weak private consumption. In August, industrial production and exports dropped for the second consecutive month. Meanwhile, inflation ran well below the central bank’s 2% target, which it hopes to reach next year.
China’s difficulties, lower commodity prices and uncertainty over the timing of a U.S. interest rate hike pushed emerging markets equities down sharply. In August, Chinese monetary authorities devalued the currency, sparking fears that the country’s problems were worse than anticipated. The central bank responded to the ensuing market volatility by cutting interest rates for the fifth time since last
2 | EuroPacific Growth Fund |
Where the fund’s assets are invested
(percent invested by country of domicile)
EuroPacific Growth Fund invests primarily in the stocks of companies based in Europe and the Pacific Basin.1
EuroPacific | MSCI ACWI | |||||||||||
Growth Fund | ex USA2 | |||||||||||
(9/30/15) | (3/31/15) | (9/30/15) | ||||||||||
Europe | ||||||||||||
Euro zone3 | 21.0 | % | 23.4 | % | 22.5 | % | ||||||
United Kingdom | 12.6 | 11.6 | 14.8 | |||||||||
Switzerland | 5.1 | 5.3 | 7.1 | |||||||||
Denmark | 4.8 | 4.6 | 1.3 | |||||||||
Sweden | .8 | 1.3 | 2.2 | |||||||||
Russia | .5 | .6 | .8 | |||||||||
Norway | .3 | .1 | .4 | |||||||||
Other Europe | .2 | — | .7 | |||||||||
45.3 | 46.9 | 49.8 | ||||||||||
Pacific Basin | ||||||||||||
Japan | 14.5 | % | 12.4 | % | 16.4 | % | ||||||
Hong Kong | 5.1 | 4.9 | 2.2 | |||||||||
China | 4.2 | 4.7 | 4.8 | |||||||||
South Korea | 2.9 | 2.4 | 3.1 | |||||||||
Canada | 2.3 | 2.5 | 6.4 | |||||||||
Taiwan | 1.6 | 1.6 | 2.6 | |||||||||
Australia | .8 | .6 | 4.7 | |||||||||
Thailand | .4 | .2 | .5 | |||||||||
Philippines | .4 | .2 | .3 | |||||||||
Other Pacific Basin | 2.7 | 3.1 | 3.0 | |||||||||
34.9 | 32.6 | 44.0 | ||||||||||
Other | ||||||||||||
India | 7.0 | % | 7.5 | % | 1.8 | % | ||||||
South Africa | 1.3 | 1.1 | 1.6 | |||||||||
Brazil | 1.3 | .5 | 1.3 | |||||||||
Other countries | .1 | .3 | 1.5 | |||||||||
9.7 | 9.4 | 6.2 | ||||||||||
Short-term securities & other assets less liabilities | 10.1 | 11.1 | — | |||||||||
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, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. |
EuroPacific Growth Fund | 3 |
November and lowering the bank reserve requirement ratio. China’s weakness weighed on other Asian markets, including Indonesia and Malaysia, where shares fell amid a widening political scandal. India’s stock market was more resilient as government reforms have been viewed positively over the past year.
Elsewhere, markets in resource-rich Brazil and Russia were hurt by lower commodity prices. Brazil fell into recession in the second quarter, and the deteriorating fiscal and economic outlook led Standard & Poor’s to cut the country’s credit rating to below investment grade for the first time since 2008. Russia’s economy struggled, shrinking 4.6% in the second quarter from a year ago, deepening its recession. The Russian central bank cut its key interest rate for the fifth time this year in an effort to stimulate growth without further increasing an inflation rate that has held above 15% in recent months.
Inside the portfolio
Select investments in the health care and industrials sectors contributed to the fund’s returns. Shares of European drug companies Novo Nordisk and UCB posted gains during the period. Novo Nordisk continues to provide strong results due to its advances in the diabetes market. Shares rose on positive results from clinical trials of Tresiba, a long-acting insulin that received U.S. regulatory approval in September. Despite recent concerns about the high costs of certain drugs and strong policy positions from U.S. presidential candidates, we believe the long-term outlook for our pharmaceutical holdings remains intact.
Among the fund’s industrials holdings, airlines benefited from lower oil prices. Shares of U.K.-based International Consolidated Airlines Group (ICAG), which owns British Airways and Iberia, recorded solid quarterly results and completed its long-desired acquisition of Irish carrier Aer Lingus. Shares of another Irish carrier, Ryanair, rose after the company said it would return €398 million to shareholders following the sale of its 29.8% stake in Aer Lingus to ICAG; the low-cost airline also raised its full-year profit outlook by 25%, helped by increasing passenger numbers. Portfolio managers have been adding to positions in these and other airline-related companies in Europe, including Airbus.
4 | EuroPacific Growth Fund |
Investments in the information technology sector were mixed. Shares of Nintendo continued to benefit from the company’s decision to partner with a small mobile gaming firm to develop applications for smartphones in the rapidly growing market. Robust demand for smartphones also benefited Japanese electronic component maker Murata Manufacturing, which reported strong financial results. However, shares of search engine operator Baidu deteriorated after reporting lackluster earnings amid worries over China.
Chinese internet company Alibaba also declined, weighing on Japanese telecom SoftBank — which has a large stake in the e-commerce firm. SoftBank also saw its equity stakes in Yahoo Japan and U.S. wireless subsidiary Sprint decrease in value, although we believe it will benefit from these investments over the long term. Further hindering SoftBank and other Japanese wireless carriers, including KDDI, was a government initiative to lower mobile phone bills for domestic users.
In the consumer discretionary sector, shares of Volkswagen tumbled 59% after the automaker admitted to U.S. regulators that it cheated on emissions tests. CEO Martin Winterkorn resigned as U.S. authorities launched civil and criminal investigations into the matter. Other German automakers also fell on the Volkswagen news, as well as concerns about the slowing demand for luxury cars in China.
Looking ahead
The global economy has experienced some setbacks, with disappointing growth in both Europe and China. In Japan, policymakers may find that it’s necessary to implement fresh fiscal and monetary stimulus measures. Meanwhile, emerging markets are dealing with depressed commodity prices, structural economic imbalances and the prospect of higher interest rates in the U.S.
These factors, combined with the ongoing geopolitical risk in the Middle East and other parts of the world, are likely to result in continued market volatility. While this has been disconcerting for investors, valuations have become more appealing for a number of companies that we believe have strong business models and the ability to capitalize on specific long-term growth trends in both developed and developing markets.
EuroPacific Growth Fund | 5 |
Despite the uncertain market environment, the fund’s portfolio managers continue to find attractively valued, well-managed companies in Europe, Japan and other regions that are likely to benefit from pockets of growth in the global economy. They also have focused on businesses that may be able to profit from technological innovations in industries such as health care, transportation and e-commerce. We continue to research and identify promising new investment opportunities in these and other areas while also intensifying our analysis of existing holdings. We are grateful for your support in choosing EuroPacific Growth Fund as part of your investment portfolio.
Sincerely,
Carl Kawaja
Vice Chairman and President
November 9, 2015
For current information about the fund, visit americanfunds.com.
6 | EuroPacific Growth Fund |
Summary investment portfolio September 30, 2015 | unaudited |
Industry sector diversification | Percent of net assets |
Country diversification by domicile | Percent of net assets | |||
Euro zone* | 21.03 | % | ||
Japan | 14.49 | |||
United Kingdom | 12.59 | |||
India | 6.96 | |||
Hong Kong | 5.12 | |||
Switzerland | 5.07 | |||
Denmark | 4.84 | |||
China | 4.20 | |||
South Korea | 2.88 | |||
Other countries | 12.69 | |||
Short-term securities & other assets less liabilities | 10.13 |
* | 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. |
Common stocks 89.22% | Shares | Value (000) | ||||||
Financials 19.53% | ||||||||
Barclays PLC1 | 698,610,669 | $ | 2,582,801 | |||||
HDFC Bank Ltd.1 | 97,254,759 | 1,907,890 | ||||||
HDFC Bank Ltd. (ADR) | 8,898,800 | 543,628 | ||||||
Prudential PLC1 | 94,571,984 | 1,999,305 | ||||||
AIA Group Ltd.1 | 289,972,200 | 1,509,753 | ||||||
Housing Development Finance Corp. Ltd.1 | 65,794,265 | 1,218,949 | ||||||
Kotak Mahindra Bank Ltd.1 | 88,462,514 | 877,975 | ||||||
Société Générale1 | 18,380,372 | 822,192 | ||||||
Fairfax Financial Holdings Ltd.2 | 868,291 | 395,576 | ||||||
Fairfax Financial Holdings Ltd. (CAD denominated)2 | 781,878 | 356,072 | ||||||
AXA SA1 | 30,809,157 | 747,959 | ||||||
Cheung Kong Property Holdings Ltd.1 | 97,689,444 | 715,951 | ||||||
ORIX Corp.1 | 55,001,700 | 711,463 | ||||||
ICICI Bank Ltd.1 | 130,051,772 | 537,930 | ||||||
Sumitomo Mitsui Financial Group, Inc.1 | 13,885,000 | 528,567 | ||||||
Sun Hung Kai Properties Ltd.1 | 37,755,694 | 492,111 | ||||||
Other securities | 7,441,891 | |||||||
23,390,013 |
EuroPacific Growth Fund | 7 |
Common stocks (continued) | Shares | Value (000) | ||||||
Consumer discretionary 12.61% | ||||||||
Toyota Motor Corp.1 | 18,633,800 | $ | 1,095,935 | |||||
Naspers Ltd., Class N1 | 6,819,800 | 855,703 | ||||||
Altice NV, Class A1,3 | 25,757,631 | 538,935 | ||||||
Rakuten, Inc.1 | 52,149,100 | 668,801 | ||||||
Numericable-SFR, non-registered shares1,3 | 13,331,911 | 617,488 | ||||||
Ctrip.com International, Ltd. (ADR)2,3 | 9,034,000 | 570,768 | ||||||
Barratt Developments PLC1,2 | 55,044,567 | 538,460 | ||||||
Industria de Diseño Textil, SA1 | 15,554,000 | 521,053 | ||||||
Other securities | 9,700,874 | |||||||
15,108,017 | ||||||||
Information technology 12.51% | ||||||||
Nintendo Co., Ltd.1,2 | 11,276,600 | 1,905,089 | ||||||
Baidu, Inc., Class A (ADR)3 | 11,482,074 | 1,577,752 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 354,917,649 | 1,416,301 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 5,962,723 | 123,726 | ||||||
Murata Manufacturing Co., Ltd.1 | 11,092,000 | 1,440,497 | ||||||
Tencent Holdings Ltd.1 | 69,210,800 | 1,164,024 | ||||||
ASML Holding NV1 | 12,657,411 | 1,109,709 | ||||||
Naver Corp.1,2 | 1,743,921 | 757,466 | ||||||
Samsung Electronics Co., Ltd.1 | 746,066 | 717,489 | ||||||
Alibaba Group Holding Ltd. (ADR)3 | 11,614,732 | 684,921 | ||||||
Infineon Technologies AG1 | 55,733,948 | 626,343 | ||||||
ARM Holdings PLC1 | 43,026,700 | 620,067 | ||||||
Other securities | 2,839,869 | |||||||
14,983,253 | ||||||||
Health care 11.57% | ||||||||
Novo Nordisk A/S, Class B1 | 97,241,991 | 5,233,980 | ||||||
Novartis AG1 | 30,059,832 | 2,768,954 | ||||||
Bayer AG1 | 15,040,566 | 1,922,309 | ||||||
UCB SA1,2 | 12,642,824 | 989,523 | ||||||
Roche Holding AG, non-registered shares, non-voting1 | 2,158,000 | 570,476 | ||||||
Other securities | 2,367,216 | |||||||
13,852,458 | ||||||||
Industrials 9.03% | ||||||||
International Consolidated Airlines Group, SA (CDI)1,2,3 | 163,039,440 | 1,455,005 | ||||||
Airbus Group SE, non-registered shares1 | 22,018,000 | 1,307,782 | ||||||
Ryanair Holdings PLC (ADR) | 13,391,191 | 1,048,530 | ||||||
VINCI SA1 | 8,265,800 | 525,601 | ||||||
Safran SA1 | 6,931,720 | 523,019 | ||||||
Other securities | 5,951,338 | |||||||
10,811,275 | ||||||||
Consumer staples 7.66% | ||||||||
Associated British Foods PLC1,2 | 39,935,838 | 2,023,993 | ||||||
British American Tobacco PLC1 | 25,625,999 | 1,416,263 | ||||||
Seven & i Holdings Co., Ltd.1 | 16,898,700 | 774,258 | ||||||
Pernod Ricard SA1 | 7,516,213 | 758,956 | ||||||
Alimentation Couche-Tard Inc., Class B | 16,281,800 | 748,755 | ||||||
Nestlé SA1 | 8,203,799 | 617,799 |
8 | EuroPacific Growth Fund |
Shares | Value (000) | |||||||
Kao Corp.1 | 13,562,800 | $ | 616,203 | |||||
SABMiller PLC1 | 8,913,000 | 505,068 | ||||||
Other securities | 1,707,983 | |||||||
9,169,278 | ||||||||
Telecommunication services 4.10% | ||||||||
SoftBank Group Corp.1 | 51,369,600 | 2,363,536 | ||||||
China Mobile Ltd.1 | 57,943,500 | 691,561 | ||||||
KDDI Corp.1 | 25,483,900 | 570,695 | ||||||
Other securities | 1,288,279 | |||||||
4,914,071 | ||||||||
Energy 2.59% | ||||||||
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR)3 | 119,374,204 | 519,278 | ||||||
Other securities | 2,586,864 | |||||||
3,106,142 | ||||||||
Other 4.93% | ||||||||
Other securities | 5,895,057 | |||||||
Miscellaneous 4.69% | ||||||||
Other common stocks in initial period of acquisition | 5,620,248 | |||||||
Total common stocks (cost: $84,749,973,000) | 106,849,812 |
Principal amount | ||||||||
Bonds, notes & other debt instruments 0.65% | (000) | |||||||
Other bonds & notes 0.65% | ||||||||
Other securities | 775,231 | |||||||
Total bonds, notes & other debt instruments (cost: $785,692,000) | 775,231 | |||||||
Short-term securities 10.00% | ||||||||
Fannie Mae 0.12%–0.28% due 10/1/2015–3/1/2016 | $ | 1,526,900 | 1,526,737 | |||||
Federal Home Loan Bank 0.09%–0.36% due 10/1/2015–7/18/2016 | 4,361,093 | 4,360,420 | ||||||
Freddie Mac 0.10%–0.26% due 10/1/2015–3/2/2016 | 2,298,706 | 2,298,507 | ||||||
Other securities | 3,794,060 | |||||||
Total short-term securities (cost: $11,976,769,000) | 11,979,724 | |||||||
Total investment securities 99.87% (cost: $97,512,434,000) | 119,604,767 | |||||||
Other assets less liabilities 0.13% | 150,043 | |||||||
Net assets 100.00% | $ | 119,754,810 |
EuroPacific Growth Fund | 9 |
This summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See inside back cover for details on how to obtain a complete schedule of portfolio holdings.
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. Some of these securities (with an aggregate value of $3,104,162,000, which represented 2.59% of the net assets of the fund) were acquired transactions exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. “Other securities” also includes securities which were pledged as collateral. The total value of pledged collateral was $3,266,000, which represented less than .01% of the net assets of the fund.
Forward currency contracts
The fund has entered into forward currency contracts as shown in the following table. The average month-end notional amount of open forward currency contracts while held was $2,656,868,000.
Unrealized (depreciation) | |||||||||||||
Contract amount | appreciation | ||||||||||||
Settlement date | Counterparty | Receive (000) | Deliver (000) | at 9/30/2015 (000) | |||||||||
Sales: | |||||||||||||
Australian dollars | 11/25/2015 | UBS AG | $13,729 | A$19,650 | $ (21 | ) | |||||||
British pounds | 10/5/2015 | JPMorgan Chase | $235,070 | £153,467 | 2,919 | ||||||||
British pounds | 10/8/2015 | UBS AG | $432,625 | £275,000 | 16,637 | ||||||||
British pounds | 10/8/2015 | JPMorgan Chase | $57,878 | £37,620 | 970 | ||||||||
British pounds | 10/9/2015 | Citibank | $415,974 | £265,040 | 15,054 | ||||||||
British pounds | 10/14/2015 | Bank of America, N.A. | $293,748 | £188,327 | 8,876 | ||||||||
British pounds | 10/14/2015 | Barclays Bank PLC | $25,944 | £16,633 | 784 | ||||||||
British pounds | 10/19/2015 | UBS AG | $247,188 | £160,279 | 4,750 | ||||||||
Euros | 10/8/2015 | HSBC Bank | $45,647 | €41,021 | (195 | ) | |||||||
Euros | 10/9/2015 | HSBC Bank | $106,559 | €97,238 | (2,109 | ) | |||||||
Euros | 11/18/2015 | Bank of America, N.A. | $197,457 | €174,540 | 2,274 | ||||||||
Euros | 12/8/2015 | JPMorgan Chase | $123,427 | €110,600 | (304 | ) | |||||||
Japanese yen | 10/5/2015 | Barclays Bank PLC | $350,674 | ¥42,103,000 | (305 | ) | |||||||
Japanese yen | 10/14/2015 | Bank of America, N.A. | $135,273 | ¥16,300,000 | (622 | ) | |||||||
Japanese yen | 10/14/2015 | Barclays Bank PLC | $133,438 | ¥16,080,000 | (623 | ) | |||||||
Japanese yen | 10/15/2015 | Bank of America, N.A. | $28,690 | ¥3,575,000 | (1,115 | ) | |||||||
Japanese yen | 10/16/2015 | UBS AG | $51,002 | ¥6,320,000 | (1,690 | ) | |||||||
Japanese yen | 10/19/2015 | Bank of America, N.A. | $35,529 | ¥4,275,000 | (115 | ) | |||||||
Japanese yen | 10/19/2015 | JPMorgan Chase | $40,727 | ¥4,900,000 | (128 | ) | |||||||
Japanese yen | 10/23/2015 | UBS AG | $128,854 | ¥15,395,500 | 485 | ||||||||
Japanese yen | 10/23/2015 | JPMorgan Chase | $29,740 | ¥3,570,000 | (27 | ) | |||||||
Japanese yen | 11/10/2015 | Bank of America, N.A. | $108,747 | ¥13,020,000 | 161 | ||||||||
South Korean won | 11/6/2015 | JPMorgan Chase | $26,505 | KRW30,995,115 | 391 | ||||||||
$46,047 |
Investments in affiliates
A company is 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
10 | EuroPacific Growth Fund |
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, 2015, appear below.
Beginning shares | Additions | Reductions | Ending shares | Dividend income (000) | Value of affiliates at 9/30/2015 (000) | |||||||||
Associated British Foods PLC1 | 39,095,838 | 840,000 | — | 39,935,838 | $ | 5,994 | $ | 2,023,993 | ||||||
Nintendo Co., Ltd.1 | 11,332,600 | — | 56,000 | 11,276,600 | 4,292 | 1,905,089 | ||||||||
International Consolidated Airlines Group, SA (CDI)1,3 | 163,039,440 | — | — | 163,039,440 | — | 1,455,005 | ||||||||
UCB SA1 | 12,642,824 | — | — | 12,642,824 | 12,771 | 989,523 | ||||||||
Naver Corp.1 | 1,364,606 | 379,315 | — | 1,743,921 | — | 757,466 | ||||||||
Fairfax Financial Holdings Ltd. | 868,291 | — | — | 868,291 | — | 395,576 | ||||||||
Fairfax Financial Holdings Ltd. (CAD denominated) | 781,878 | — | — | 781,878 | — | 356,072 | ||||||||
Ctrip.com International, Ltd. (ADR)3 | 9,034,000 | — | — | 9,034,000 | — | 570,768 | ||||||||
Barratt Developments PLC1 | 58,322,000 | 1,040,000 | 4,317,433 | 55,044,567 | 4,210 | 538,460 | ||||||||
Tech Mahindra Ltd.1 | 38,972,568 | 18,634,148 | — | 57,606,716 | 5,163 | 490,370 | ||||||||
Chr. Hansen Holding A/S1 | 8,743,000 | — | — | 8,743,000 | 7,298 | 489,614 | ||||||||
Babcock International Group PLC1 | 22,104,478 | 7,905,000 | — | 30,009,478 | 8,441 | 415,139 | ||||||||
Indiabulls Housing Finance Ltd.1 | — | 26,207,577 | — | 26,207,577 | — | 320,385 | ||||||||
Gemalto NV1 | 4,804,745 | 309,000 | 293,000 | 4,820,745 | 1,888 | 312,890 | ||||||||
Tourmaline Oil Corp.3 | 9,908,200 | 2,373,800 | — | 12,282,000 | — | 285,951 | ||||||||
Paddy Power PLC1 | 3,204,000 | 199,604 | 1,013,104 | 2,390,500 | 25,344 | 275,098 | ||||||||
ASOS PLC1,3 | 4,097,900 | 929,000 | — | 5,026,900 | — | 210,736 | ||||||||
Kroton Educacional SA, ordinary nominative | 63,262,000 | 21,647,100 | — | 84,909,100 | 3,022 | 165,128 | ||||||||
Tullow Oil PLC (Ireland)1,3 | 19,052,000 | 40,093,000 | — | 59,145,000 | — | 151,980 | ||||||||
Air France-KLM1,3 | 20,573,795 | — | 2,102,500 | 18,471,295 | — | 128,944 | ||||||||
Global Brands Group Holding Ltd.1,3 | 543,368,100 | — | — | 543,368,100 | — | 113,040 | ||||||||
Altice SA3,4 | 14,212,741 | — | 14,212,741 | — | — | — | ||||||||
China Resources Gas Group Ltd.1,4 | 118,420,000 | 3,000,000 | 28,698,000 | 92,722,000 | 4,440 | — | ||||||||
ENN Energy Holdings Ltd.1,4 | 55,318,000 | — | 2,283,000 | 53,035,000 | 5,676 | — | ||||||||
Infineon Technologies AG1,4 | 56,918,948 | — | 1,185,000 | 55,733,948 | — | — | ||||||||
Murata Manufacturing Co., Ltd.1,4 | 12,427,300 | — | 1,335,300 | 11,092,000 | 8,279 | — | ||||||||
Power Grid Corp. of India Ltd.1,4 | 296,023,422 | — | 70,369,306 | 225,654,116 | 4,728 | — | ||||||||
$ | 101,546 | $ | 12,351,227 |
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.
EuroPacific Growth Fund | 11 |
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $96,143,900,000, which represented 80.28% of the net assets of the fund. This amount includes $96,036,302,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
3 | Security did not produce income during the last 12 months. |
4 | Unaffiliated issuer at 9/30/2015. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
CDI = CREST Depository Interest
A$ = Australian dollars
CAD = Canadian dollars
€ = Euros
£ = British pounds
¥ = Japanese yen
KRW = South Korean won
See Notes to Financial Statements
12 | EuroPacific Growth Fund |
Financial statements
Statement of assets and liabilities | unaudited | |||||||
at September 30, 2015 | (dollars in thousands) | |||||||
Assets: | ||||||||
Investment securities, at value: | ||||||||
Unaffiliated issuers (cost: $86,915,827) | $ | 107,253,540 | ||||||
Affiliated issuers (cost: $10,596,607) | 12,351,227 | $ | 119,604,767 | |||||
Cash denominated in currencies other than U.S. dollars (cost: $40,353) | 40,145 | |||||||
Cash | 10,012 | |||||||
Unrealized appreciation on open forward currency contracts | 53,301 | |||||||
Receivables for: | ||||||||
Sales of investments | 339,807 | |||||||
Sales of fund’s shares | 263,361 | |||||||
Closed forward currency contracts | 211 | |||||||
Dividends and interest | 224,253 | 827,632 | ||||||
120,535,857 | ||||||||
Liabilities: | ||||||||
Unrealized depreciation on open forward currency contracts | 7,254 | |||||||
Payables for: | ||||||||
Purchases of investments | 330,334 | |||||||
Repurchases of fund’s shares | 291,038 | |||||||
Closed forward currency contracts | 16 | |||||||
Investment advisory services | 41,764 | |||||||
Services provided by related parties | 21,322 | |||||||
Trustees’ deferred compensation | 3,654 | |||||||
Other | 85,665 | 773,793 | ||||||
Net assets at September 30, 2015 | $ | 119,754,810 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of beneficial interest | $ | 95,372,055 | ||||||
Undistributed net investment income | 946,279 | |||||||
Undistributed net realized gain | 1,371,299 | |||||||
Net unrealized appreciation | 22,065,177 | |||||||
Net assets at September 30, 2015 | $ | 119,754,810 |
See Notes to Financial Statements
EuroPacific Growth Fund | 13 |
(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (2,645,068 total shares outstanding)
Net assets | Shares outstanding | Net asset value per share | ||||||||||
Class A | $ | 27,632,999 | 608,159 | $ | 45.44 | |||||||
Class B | 89,923 | 1,987 | 45.25 | |||||||||
Class C | 1,624,320 | 36,739 | 44.21 | |||||||||
Class F-1 | 6,397,131 | 141,485 | 45.21 | |||||||||
Class F-2 | 16,123,641 | 355,046 | 45.41 | |||||||||
Class 529-A | 1,102,737 | 24,523 | 44.97 | |||||||||
Class 529-B | 12,638 | 284 | 44.49 | |||||||||
Class 529-C | 339,010 | 7,730 | 43.86 | |||||||||
Class 529-E | 56,923 | 1,278 | 44.54 | |||||||||
Class 529-F-1 | 90,169 | 2,003 | 45.01 | |||||||||
Class R-1 | 257,993 | 5,909 | 43.66 | |||||||||
Class R-2 | 856,449 | 19,469 | 43.99 | |||||||||
Class R-2E | 260 | 6 | 45.15 | |||||||||
Class R-3 | 5,614,647 | 126,233 | 44.48 | |||||||||
Class R-4 | 11,712,514 | 262,624 | 44.60 | |||||||||
Class R-5 | 9,873,298 | 217,241 | 45.45 | |||||||||
Class R-6 | 37,970,158 | 834,352 | 45.51 |
See Notes to Financial Statements
14 | EuroPacific Growth Fund |
Statement of operations | unaudited | |||||||
for the six months ended September 30, 2015 | (dollars in thousands) | |||||||
Investment income: | ||||||||
Income: | ||||||||
Dividends (net of non-U.S. taxes of $78,179; also includes $101,546 from affiliates) | $ | 1,216,809 | ||||||
Interest | 25,029 | $ | 1,241,838 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 272,720 | |||||||
Distribution services | 95,907 | |||||||
Transfer agent services | 48,487 | |||||||
Administrative services | 26,430 | |||||||
Reports to shareholders | 2,440 | |||||||
Registration statement and prospectus | 1,404 | |||||||
Trustees’ compensation | 18 | |||||||
Auditing and legal | 1,919 | |||||||
Custodian | 10,205 | |||||||
Other | 906 | 460,436 | ||||||
Net investment income | 781,402 | |||||||
Net realized gain and unrealized depreciation: | ||||||||
Net realized gain (loss) on: | ||||||||
Investments (net of non-U.S. taxes of $11,064; also includes $90,136 net gain from affiliates) | 2,567,055 | |||||||
Forward currency contracts | (34,277 | ) | ||||||
Currency transactions | (16,708 | ) | 2,516,070 | |||||
Net unrealized (depreciation) appreciation on: | ||||||||
Investments (net of non-U.S. taxes of $71,740) | (15,085,990 | ) | ||||||
Forward currency contracts | 39,296 | |||||||
Currency translations | 12,316 | (15,034,378 | ) | |||||
Net realized gain and unrealized depreciation | (12,518,308 | ) | ||||||
Net decrease in net assets resulting from operations | $ | (11,736,906 | ) |
* | Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. |
See Notes to Financial Statements
EuroPacific Growth Fund | 15 |
Statements of changes in net assets | |
(dollars in thousands) | |
Six months ended September 30, 2015* | Year ended March 31, 2015 | |||||||
Operations: | ||||||||
Net investment income | $ | 781,402 | $ | 1,227,479 | ||||
Net realized gain | 2,516,070 | 6,475,627 | ||||||
Net unrealized depreciation | (15,034,378 | ) | (4,496,764 | ) | ||||
Net (decrease) increase in net assets resulting from operations | (11,736,906 | ) | 3,206,342 | |||||
Dividends paid to shareholders from net investment income | — | (1,802,210 | ) | |||||
Net capital share transactions | 2,981,628 | 2,917,122 | ||||||
Total (decrease) increase in net assets | (8,755,278 | ) | 4,321,254 | |||||
Net assets: | ||||||||
Beginning of period | 128,510,088 | 124,188,834 | ||||||
End of period (including undistributed net investment income: $946,279 and $164,877, respectively) | $ | 119,754,810 | $ | 128,510,088 |
* | Unaudited. |
See Notes to Financial Statements
16 | EuroPacific Growth Fund |
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 to provide long-term growth of capital. Shareholders approved a proposal to reorganize the fund from a Massachusetts business trust to a Delaware statutory trust. The reorganization may be completed in the next 12 months; however, the fund reserves the right to delay the implementation.
The fund has 17 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 seven retirement plan share classes (Classes R-1, R-2, R-2E, 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 in the following table:
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-2E, 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 the assets, dividends and liquidation proceeds of the fund. 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, transfer agent and administrative services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each share class.
EuroPacific Growth Fund | 17 |
2. Significant accounting policies
The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. The fund follows the significant accounting policies described in this section, 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, transfer agent and administrative services, are charged directly to the respective share class.
Dividends and distributions to shareholders — Dividends and distributions to shareholders are recorded on the ex-dividend date.
Currency translation — Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. 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 in the fund’s statement of operations. 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.
18 | EuroPacific Growth Fund |
3. Valuation
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. 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, 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 deemed to be not 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 for either equity or fixed-income securities, depending on which method is deemed most
EuroPacific Growth Fund | 19 |
appropriate by the fund’s investment adviser. 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 valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; 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.
20 | EuroPacific Growth Fund |
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of September 30, 2015 (dollars in thousands):
Investment securities | ||||||||||||||||
Level 1 | Level 2* | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Common stocks: | ||||||||||||||||
Financials | $ | 2,070,755 | $ | 21,318,228 | $ | 1,030 | $ | 23,390,013 | ||||||||
Consumer discretionary | 1,654,270 | 13,453,747 | — | 15,108,017 | ||||||||||||
Information technology | 2,496,137 | 12,487,116 | — | 14,983,253 | ||||||||||||
Health care | 53,830 | 13,798,628 | — | 13,852,458 | ||||||||||||
Industrials | 1,063,157 | 9,748,118 | — | 10,811,275 | ||||||||||||
Consumer staples | 972,969 | 8,196,309 | — | 9,169,278 | ||||||||||||
Telecommunication services | — | 4,914,071 | — | 4,914,071 | ||||||||||||
Energy | 1,408,671 | 1,697,471 | — | 3,106,142 | ||||||||||||
Other | 531,335 | 5,363,722 | — | 5,895,057 | ||||||||||||
Miscellaneous | 454,789 | 5,165,459 | — | 5,620,248 | ||||||||||||
Bonds, notes & other debt instruments | — | 775,231 | — | 775,231 | ||||||||||||
Short-term securities | — | 11,979,724 | — | 11,979,724 | ||||||||||||
Total | $ | 10,705,913 | $ | 108,897,824 | $ | 1,030 | $ | 119,604,767 |
Other investments† | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | — | $ | 53,301 | $ | — | $ | 53,301 | ||||||||
Liabilities: | ||||||||||||||||
Unrealized depreciation on open forward currency contracts | — | (7,254 | ) | — | (7,254 | ) | ||||||||||
Total | $ | — | $ | 46,047 | $ | — | $ | 46,047 |
* | Securities with a value of $96,036,302,000, which represented 80.19% of the net assets of the fund, were classified as Level 2 due to significant market movements following the close of local trading. |
† | Forward currency contracts are not included in the investment portfolio. |
EuroPacific Growth Fund | 21 |
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 — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.
Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions, and the market response to any such initiatives.
Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) 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 or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. 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. Issuers of these securities may be more susceptible to actions of foreign governments, such as the imposition of price controls or punitive taxes, that could adversely impact revenues. 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 accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, 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
22 | EuroPacific Growth Fund |
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. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. 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 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.
EuroPacific Growth Fund | 23 |
The following tables present the financial statement impacts resulting from the fund’s use of forward currency contracts as of, or for the six months ended, September 30, 2015 (dollars in thousands):
Assets | Liabilities | ||||||||||||
Contract | Risk type | Location on statement of assets and liabilities | Value | Location on statement of assets and liabilities | Value | ||||||||
Forward currency | Currency | Unrealized appreciation on open forward currency contracts | $ | 53,301 | Unrealized depreciation on open forward currency contracts | $ | 7,254 | ||||||
Forward currency | Currency | Receivables for closed forward currency contracts | 211 | Payables for closed forward currency contracts | 16 | ||||||||
$ | 53,512 | $ | 7,270 | ||||||||||
Net realized loss | Net unrealized appreciation | ||||||||||||
Contract | Risk type | Location on statement of operations | Value | Location on statement of operations | Value | ||||||||
Forward currency | Currency | Net realized loss on forward currency contracts | $ | (34,277 | ) | Net unrealized appreciation on forward currency contracts | $ | 39,296 |
Collateral — The fund participates in a collateral program due to its use of forward currency contracts. The program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligations.
Rights of offset — The fund has entered into enforceable master netting agreements with certain counterparties for forward currency contracts, where on any date amounts payable by each party to the other (in the same currency with respect to the same transaction) may be closed or offset by each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statement of assets and liabilities.
24 | EuroPacific Growth Fund |
The following table presents the fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the fund’s statement of assets and liabilities. The net amount column shows the impact of offsetting on the fund’s statement of assets and liabilities as of September 30, 2015 (dollars in thousands) if close-out netting was exercised:
Gross amounts not offset in the | ||||||||||||||||||||
Gross amounts | statement of assets and liabilities and | |||||||||||||||||||
recognized in the | subject to a master netting agreement | |||||||||||||||||||
Counterparty | statement of assets and liabilities | Available to offset | Non-cash collateral* | Cash collateral | Net amount | |||||||||||||||
Assets: | ||||||||||||||||||||
Bank of America, N.A. | $ | 11,482 | $ | (1,852 | ) | $ | — | $ | — | $ | 9,630 | |||||||||
Barclays Bank PLC | 784 | (784 | ) | — | — | — | ||||||||||||||
Citibank | 15,054 | — | — | — | 15,054 | |||||||||||||||
JPMorgan Chase | 4,292 | (474 | ) | — | — | 3,818 | ||||||||||||||
UBS AG | 21,900 | (1,711 | ) | — | — | 20,189 | ||||||||||||||
Total | $ | 53,512 | $ | (4,821 | ) | $ | — | $ | — | $ | 48,691 | |||||||||
Liabilities: | ||||||||||||||||||||
Bank of America, N.A. | $ | 1,852 | $ | (1,852 | ) | $ | — | $ | — | $ | — | |||||||||
Barclays Bank PLC | 929 | (784 | ) | (145 | ) | — | — | |||||||||||||
HSBC Bank | 2,304 | — | (2,304 | ) | — | — | ||||||||||||||
JPMorgan Chase | 474 | (474 | ) | — | — | — | ||||||||||||||
UBS AG | 1,711 | (1,711 | ) | — | — | — | ||||||||||||||
Total | $ | 7,270 | $ | (4,821 | ) | $ | (2,449 | ) | $ | — | $ | — |
* | Non-cash collateral is shown on a settlement basis. |
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, 2015, 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 2011, by state tax authorities for tax years before 2010 and by tax authorities outside the U.S. for tax years before 2008.
Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. As a result of rulings from European courts, the fund filed for additional reclaims related to prior years. These reclaims are recorded when
EuroPacific Growth Fund | 25 |
the amount is known and there are no significant uncertainties on collectability. 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; net capital losses; and non-U.S. taxes on capital gains. 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, 2015, the components of distributable earnings on a tax basis were as follows (dollars in thousands):
Undistributed ordinary income | $1,431,702 | |
Capital loss carryforward expiring 2018* | (13,451 | ) |
Post-October capital loss deferral† | (901,173 | ) |
* | The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
† | This deferral is considered incurred in the subsequent year. |
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after March 31, 2012, 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, 2015, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):
Gross unrealized appreciation on investment securities | $ | 29,337,846 | ||
Gross unrealized depreciation on investment securities | (8,615,291 | ) | ||
Net unrealized appreciation on investment securities | 20,722,555 | |||
Cost of investment securities | 98,882,212 |
26 | EuroPacific Growth Fund |
No distributions were paid to shareholders during the six months ended September 30, 2015. Tax-basis distributions paid to shareholders from ordinary income during the year ended March 31, 2015, were as follows (dollars in thousands):
Share class | ||||
Class A | $ | 401,070 | ||
Class B | 409 | |||
Class C | 9,565 | |||
Class F-1 | 80,946 | |||
Class F-2 | 246,323 | |||
Class 529-A | 15,092 | |||
Class 529-B | 37 | |||
Class 529-C | 1,947 | |||
Class 529-E | 646 | |||
Class 529-F-1 | 1,394 | |||
Class R-1 | 1,693 | |||
Class R-2 | 5,619 | |||
Class R-2E* | 3 | |||
Class R-3 | 67,452 | |||
Class R-4 | 182,048 | |||
Class R-5 | 180,948 | |||
Class R-6 | 607,018 | |||
Total | $ | 1,802,210 |
* | Class R-2E shares were offered beginning August 29, 2014. |
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. CRMC, AFD and AFS are considered related parties to the fund.
Investment advisory services — The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.690% on the first $500 million of daily net assets and decreasing to 0.394% on such assets in excess of $144 billion. For the six months ended September 30, 2015, the investment advisory services fee was $272,720,000, which was equivalent to an annualized rate of 0.417% of average daily net assets.
EuroPacific Growth Fund | 27 |
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 further 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 in this section. 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, 2015, 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 | ||||||
Class R-2E | 0.60 | 0.85 | ||||||
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
28 | EuroPacific Growth Fund |
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 Virginia College Savings Plan (“Virginia529”) for its oversight and administration 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 0.05% on such assets in excess of $70 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 in the fund’s statement of operations. Virginia529 is not considered a related party to the fund.
For the six months ended September 30, 2015, class-specific expenses under the agreements were as follows (dollars in thousands):
Share class | Distribution services | Transfer agent services | Administrative services | 529 plan services | ||||
Class A | $36,810 | $19,497 | $ 1,541 | Not applicable | ||||
Class B | 582 | 63 | Not applicable | Not applicable | ||||
Class C | 9,025 | 998 | 453 | Not applicable | ||||
Class F-1 | 8,664 | 3,766 | 1,733 | Not applicable | ||||
Class F-2 | Not applicable | 8,616 | 4,233 | Not applicable | ||||
Class 529-A | 1,288 | 520 | 304 | $535 | ||||
Class 529-B | 80 | 8 | 4 | 7 | ||||
Class 529-C | 1,860 | 174 | 94 | 166 | ||||
Class 529-E | 155 | 18 | 16 | 28 | ||||
Class 529-F-1 | — | 42 | 25 | 43 | ||||
Class R-1 | 1,431 | 152 | 72 | Not applicable | ||||
Class R-2 | 3,584 | 1,470 | 241 | Not applicable | ||||
Class R-2E | 1 | —* | —* | Not applicable | ||||
Class R-3 | 15,824 | 4,215 | 1,589 | Not applicable | ||||
Class R-4 | 16,603 | 6,352 | 3,321 | Not applicable | ||||
Class R-5 | Not applicable | 2,535 | 2,807 | Not applicable | ||||
Class R-6 | Not applicable | 61 | 9,997 | Not applicable | ||||
Total class-specific expenses | $95,907 | $48,487 | $26,430 | $779 |
* | Amount less than one thousand. |
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 $18,000 in the fund’s statement of operations reflects $203,000 in current fees (either paid in cash or deferred) and a net decrease of $185,000 in the value of the deferred amounts.
EuroPacific Growth Fund | 29 |
Affiliated officers and trustees — Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFD and AFS. No affiliated officers or trustees received any compensation directly from the fund.
8. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Sales1 | Reinvestments of dividends | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended September 30, 2015 | ||||||||||||||||||||||||||||||||
Class A | $ | 1,878,901 | 37,420 | $ | — | — | $ | (2,282,815 | ) | (45,816 | ) | $ | (403,914 | ) | (8,396 | ) | ||||||||||||||||
Class B | 1,402 | 27 | — | — | (43,271 | ) | (857 | ) | (41,869 | ) | (830 | ) | ||||||||||||||||||||
Class C | 184,514 | 3,755 | — | — | (194,826 | ) | (3,995 | ) | (10,312 | ) | (240 | ) | ||||||||||||||||||||
Class F-1 | 949,331 | 19,061 | — | — | (691,848 | ) | (13,945 | ) | 257,483 | 5,116 | ||||||||||||||||||||||
Class F-2 | 2,706,580 | 54,635 | — | — | (1,294,923 | ) | (26,204 | ) | 1,411,657 | 28,431 | ||||||||||||||||||||||
Class 529-A | 71,218 | 1,435 | — | — | (64,453 | ) | (1,308 | ) | 6,765 | 127 | ||||||||||||||||||||||
Class 529-B | 170 | 3 | — | — | (5,025 | ) | (101 | ) | (4,855 | ) | (98 | ) | ||||||||||||||||||||
Class 529-C | 22,569 | 465 | — | — | (22,812 | ) | (473 | ) | (243 | ) | (8 | ) | ||||||||||||||||||||
Class 529-E | 3,674 | 75 | — | — | (3,197 | ) | (65 | ) | 477 | 10 | ||||||||||||||||||||||
Class 529-F-1 | 9,754 | 197 | — | — | (7,186 | ) | (147 | ) | 2,568 | 50 | ||||||||||||||||||||||
Class R-1 | 25,258 | 525 | — | — | (25,851 | ) | (542 | ) | (593 | ) | (17 | ) | ||||||||||||||||||||
Class R-2 | 105,065 | 2,166 | — | — | (135,156 | ) | (2,800 | ) | (30,091 | ) | (634 | ) | ||||||||||||||||||||
Class R-2E | 100 | 2 | — | — | (17 | ) | — | 2 | 83 | 2 | ||||||||||||||||||||||
Class R-3 | 676,282 | 13,836 | — | — | (982,068 | ) | (20,076 | ) | (305,786 | ) | (6,240 | ) | ||||||||||||||||||||
Class R-4 | 1,287,168 | 26,263 | — | — | (1,903,530 | ) | (38,957 | ) | (616,362 | ) | (12,694 | ) | ||||||||||||||||||||
Class R-5 | 1,121,944 | 22,382 | — | — | (1,712,461 | ) | (34,189 | ) | (590,517 | ) | (11,807 | ) | ||||||||||||||||||||
Class R-6 | 6,141,614 | 123,008 | — | — | (2,834,477 | ) | (57,072 | ) | 3,307,137 | 65,936 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 15,185,544 | 305,255 | $ | — | — | $ | (12,203,916) | (246,547 | ) | $ | 2,981,628 | 58,708 |
30 | EuroPacific Growth Fund |
Sales1 | Reinvestments of dividends | Repurchases1 | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Year ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Class A | $ | 2,878,795 | 58,692 | $ | 390,609 | 8,206 | $ | (5,119,031 | ) | (104,430 | ) | $ | (1,849,627 | ) | (37,532 | ) | ||||||||||||||||
Class B | 2,355 | 48 | 404 | 9 | (115,899 | ) | (2,385 | ) | (113,140 | ) | (2,328 | ) | ||||||||||||||||||||
Class C | 239,576 | 4,999 | 9,315 | 200 | (452,548 | ) | (9,501 | ) | (203,657 | ) | (4,302 | ) | ||||||||||||||||||||
Class F-1 | 1,844,494 | 37,775 | 79,160 | 1,671 | (4,679,083 | ) | (95,040 | ) | (2,755,429 | ) | (55,594 | ) | ||||||||||||||||||||
Class F-2 | 7,562,802 | 153,188 | 219,125 | 4,614 | (2,373,712 | ) | (48,427 | ) | 5,408,215 | 109,375 | ||||||||||||||||||||||
Class 529-A | 125,527 | 2,587 | 15,087 | 320 | (135,291 | ) | (2,790 | ) | 5,323 | 117 | ||||||||||||||||||||||
Class 529-B | 494 | 10 | 37 | 1 | (12,918 | ) | (271 | ) | (12,387 | ) | (260 | ) | ||||||||||||||||||||
Class 529-C | 39,380 | 830 | 1,946 | 42 | (48,867 | ) | (1,030 | ) | (7,541 | ) | (158 | ) | ||||||||||||||||||||
Class 529-E | 6,362 | 132 | 645 | 14 | (8,310 | ) | (173 | ) | (1,303 | ) | (27 | ) | ||||||||||||||||||||
Class 529-F-1 | 17,412 | 359 | 1,394 | 29 | (13,622 | ) | (282 | ) | 5,184 | 106 | ||||||||||||||||||||||
Class R-1 | 46,638 | 987 | 1,693 | 37 | (64,304 | ) | (1,366 | ) | (15,973 | ) | (342 | ) | ||||||||||||||||||||
Class R-2 | 199,470 | 4,191 | 5,612 | 121 | (319,423 | ) | (6,713 | ) | (114,341 | ) | (2,401 | ) | ||||||||||||||||||||
Class R-2E3 | 206 | 4 | 3 | — | 2 | (9 | ) | — | 2 | 200 | 4 | |||||||||||||||||||||
Class R-3 | 1,363,609 | 28,339 | 67,413 | 1,443 | (2,233,391 | ) | (46,473 | ) | (802,369 | ) | (16,691 | ) | ||||||||||||||||||||
Class R-4 | 3,122,477 | 64,944 | 181,977 | 3,894 | (4,357,631 | ) | (90,440 | ) | (1,053,177 | ) | (21,602 | ) | ||||||||||||||||||||
Class R-5 | 2,383,491 | 48,632 | 180,529 | 3,800 | (3,485,329 | ) | (70,679 | ) | (921,309 | ) | (18,247 | ) | ||||||||||||||||||||
Class R-6 | 10,233,780 | 208,078 | 605,212 | 12,725 | (5,490,539 | ) | (112,038 | ) | 5,348,453 | 108,765 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 30,066,868 | 613,795 | $ | 1,760,161 | 37,126 | $ | (28,909,907 | ) | (592,038 | ) | $ | 2,917,122 | 58,883 |
1 | Includes exchanges between share classes of the fund. |
2 | Amount less than one thousand. |
3 | Class R-2E shares were offered beginning August 29, 2014. |
9. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $21,507,187,000 and $15,663,497,000, respectively, during the six months ended September 30, 2015.
EuroPacific Growth Fund | 31 |
Financial highlights
(Loss) income from investment operations1 | ||||||||||||||||
Net (losses) | ||||||||||||||||
Net asset | gains on | |||||||||||||||
value, | Net | securities (both | Total from | |||||||||||||
beginning | investment | realized and | investment | |||||||||||||
of period | income2 | unrealized) | operations | |||||||||||||
Class A: | ||||||||||||||||
Six months ended 9/30/20154,5 | $ | 49.91 | $ | .27 | $ | (4.74 | ) | $ | (4.47 | ) | ||||||
Year ended 3/31/2015 | 49.37 | .43 | .76 | 1.19 | ||||||||||||
Year ended 3/31/2014 | 42.38 | .69 | 6.75 | 7.44 | ||||||||||||
Year ended 3/31/2013 | 39.47 | .58 | 3.02 | 3.60 | ||||||||||||
Year ended 3/31/2012 | 42.81 | .65 | (3.40 | ) | (2.75 | ) | ||||||||||
Year ended 3/31/2011 | 38.62 | .54 | 4.22 | 4.76 | ||||||||||||
Class B: | ||||||||||||||||
Six months ended 9/30/20154,5 | 49.89 | .09 | (4.73 | ) | (4.64 | ) | ||||||||||
Year ended 3/31/2015 | 49.17 | .09 | .75 | .84 | ||||||||||||
Year ended 3/31/2014 | 42.16 | .33 | 6.71 | 7.04 | ||||||||||||
Year ended 3/31/2013 | 39.20 | .32 | 2.96 | 3.28 | ||||||||||||
Year ended 3/31/2012 | 42.39 | .37 | (3.34 | ) | (2.97 | ) | ||||||||||
Year ended 3/31/2011 | 38.21 | .26 | 4.15 | 4.41 | ||||||||||||
Class C: | ||||||||||||||||
Six months ended 9/30/20154,5 | 48.75 | .07 | (4.61 | ) | (4.54 | ) | ||||||||||
Year ended 3/31/2015 | 48.22 | .05 | .73 | .78 | ||||||||||||
Year ended 3/31/2014 | 41.41 | .32 | 6.59 | 6.91 | ||||||||||||
Year ended 3/31/2013 | 38.57 | .28 | 2.92 | 3.20 | ||||||||||||
Year ended 3/31/2012 | 41.76 | .34 | (3.28 | ) | (2.94 | ) | ||||||||||
Year ended 3/31/2011 | 37.70 | .23 | 4.10 | 4.33 | ||||||||||||
Class F-1: | ||||||||||||||||
Six months ended 9/30/20154,5 | 49.67 | .26 | (4.72 | ) | (4.46 | ) | ||||||||||
Year ended 3/31/2015 | 49.10 | .45 | .71 | 1.16 | ||||||||||||
Year ended 3/31/2014 | 42.15 | .67 | 6.72 | 7.39 | ||||||||||||
Year ended 3/31/2013 | 39.27 | .57 | 3.01 | 3.58 | ||||||||||||
Year ended 3/31/2012 | 42.59 | .63 | (3.37 | ) | (2.74 | ) | ||||||||||
Year ended 3/31/2011 | 38.43 | .52 | 4.20 | 4.72 | ||||||||||||
Class F-2: | ||||||||||||||||
Six months ended 9/30/20154,5 | 49.82 | .33 | (4.74 | ) | (4.41 | ) | ||||||||||
Year ended 3/31/2015 | 49.32 | .53 | .76 | 1.29 | ||||||||||||
Year ended 3/31/2014 | 42.33 | .82 | 6.74 | 7.56 | ||||||||||||
Year ended 3/31/2013 | 39.44 | .66 | 3.05 | 3.71 | ||||||||||||
Year ended 3/31/2012 | 42.80 | .73 | (3.39 | ) | (2.66 | ) | ||||||||||
Year ended 3/31/2011 | 38.62 | .61 | 4.25 | 4.86 | ||||||||||||
Class 529-A: | ||||||||||||||||
Six months ended 9/30/20154,5 | 49.41 | .25 | (4.69 | ) | (4.44 | ) | ||||||||||
Year ended 3/31/2015 | 48.89 | .40 | .75 | 1.15 | ||||||||||||
Year ended 3/31/2014 | 41.98 | .66 | 6.69 | 7.35 | ||||||||||||
Year ended 3/31/2013 | 39.12 | .55 | 2.99 | 3.54 | ||||||||||||
Year ended 3/31/2012 | 42.45 | .61 | (3.35 | ) | (2.74 | ) | ||||||||||
Year ended 3/31/2011 | 38.31 | .51 | 4.20 | 4.71 |
32 | EuroPacific Growth Fund |
Dividends | Ratio of | Ratio of | ||||||||||||||||||||
(from net | Net asset | Net assets, | expenses | net income | ||||||||||||||||||
investment | value, end | Total | end of period | to average | to average | |||||||||||||||||
income) | of period | return3 | (in millions) | net assets | net assets2 | |||||||||||||||||
$ | — | $ | 45.44 | (8.96 | )%6 | $ | 27,633 | .82 | %7 | 1.08 | %7 | |||||||||||
(.65 | ) | 49.91 | 2.48 | 30,770 | .83 | .88 | ||||||||||||||||
(.45 | ) | 49.37 | 17.57 | 32,295 | .84 | 1.50 | ||||||||||||||||
(.69 | ) | 42.38 | 9.19 | 29,939 | .86 | 1.48 | ||||||||||||||||
(.59 | ) | 39.47 | (6.25 | ) | 31,443 | .84 | 1.65 | |||||||||||||||
(.57 | ) | 42.81 | 12.39 | 39,417 | .82 | 1.39 | ||||||||||||||||
— | 45.25 | (9.30 | )6 | 90 | 1.54 | 7 | .37 | 7 | ||||||||||||||
(.12 | ) | 49.89 | 1.73 | 141 | 1.56 | .19 | ||||||||||||||||
(.03 | ) | 49.17 | 16.70 | 253 | 1.58 | .73 | ||||||||||||||||
(.32 | ) | 42.16 | 8.39 | 330 | 1.59 | .81 | ||||||||||||||||
(.22 | ) | 39.20 | (6.95 | ) | 464 | 1.58 | .96 | |||||||||||||||
(.23 | ) | 42.39 | 11.57 | 741 | 1.57 | .69 | ||||||||||||||||
— | 44.21 | (9.31 | )6 | 1,624 | 1.59 | 7 | .30 | 7 | ||||||||||||||
(.25 | ) | 48.75 | 1.65 | 1,803 | 1.61 | .11 | ||||||||||||||||
(.10 | ) | 48.22 | 16.69 | 1,990 | 1.62 | .72 | ||||||||||||||||
(.36 | ) | 41.41 | 8.34 | 1,896 | 1.63 | .73 | ||||||||||||||||
(.25 | ) | 38.57 | (6.97 | ) | 2,111 | 1.62 | .89 | |||||||||||||||
(.27 | ) | 41.76 | 11.51 | 2,851 | 1.61 | .60 | ||||||||||||||||
— | 45.21 | (8.98 | )6 | 6,397 | .85 | 7 | 1.05 | 7 | ||||||||||||||
(.59 | ) | 49.67 | 2.43 | 6,773 | .86 | .93 | ||||||||||||||||
(.44 | ) | 49.10 | 17.55 | 9,425 | .87 | 1.47 | ||||||||||||||||
(.70 | ) | 42.15 | 9.19 | 8,288 | .85 | 1.45 | ||||||||||||||||
(.58 | ) | 39.27 | (6.25 | ) | 7,399 | .86 | 1.62 | |||||||||||||||
(.56 | ) | 42.59 | 12.36 | 8,868 | .85 | 1.35 | ||||||||||||||||
— | 45.41 | (8.85 | )6 | 16,124 | .59 | 7 | 1.30 | 7 | ||||||||||||||
(.79 | ) | 49.82 | 2.69 | 16,273 | .59 | 1.06 | ||||||||||||||||
(.57 | ) | 49.32 | 17.90 | 10,714 | .59 | 1.78 | ||||||||||||||||
(.82 | ) | 42.33 | 9.47 | 7,828 | .59 | 1.67 | ||||||||||||||||
(.70 | ) | 39.44 | (6.02 | ) | 5,958 | .58 | 1.86 | |||||||||||||||
(.68 | ) | 42.80 | 12.65 | 6,216 | .59 | 1.54 | ||||||||||||||||
— | 44.97 | (8.99 | )6 | 1,103 | .88 | 7 | 1.02 | 7 | ||||||||||||||
(.63 | ) | 49.41 | 2.41 | 1,205 | .89 | .82 | ||||||||||||||||
(.44 | ) | 48.89 | 17.52 | 1,187 | .90 | 1.45 | ||||||||||||||||
(.68 | ) | 41.98 | 9.12 | 999 | .91 | 1.40 | ||||||||||||||||
(.59 | ) | 39.12 | (6.30 | ) | 928 | .89 | 1.56 | |||||||||||||||
(.57 | ) | 42.45 | 12.36 | 982 | .87 | 1.31 |
See page 38 for footnotes.
EuroPacific Growth Fund | 33 |
Financial highlights (continued)
(Loss) income from investment operations1 | ||||||||||||||||
Net (losses) | ||||||||||||||||
Net asset | gains on | |||||||||||||||
value, | Net | securities (both | Total from | |||||||||||||
beginning | investment | realized and | investment | |||||||||||||
of period | income2 | unrealized) | operations | |||||||||||||
Class 529-B: | ||||||||||||||||
Six months ended 9/30/20154,5 | $ | 49.07 | $ | .06 | $ | (4.64 | ) | $ | (4.58 | ) | ||||||
Year ended 3/31/2015 | 48.39 | .03 | .73 | .76 | ||||||||||||
Year ended 3/31/2014 | 41.51 | .28 | 6.60 | 6.88 | ||||||||||||
Year ended 3/31/2013 | 38.61 | .26 | 2.92 | 3.18 | ||||||||||||
Year ended 3/31/2012 | 41.77 | .32 | (3.29 | ) | (2.97 | ) | ||||||||||
Year ended 3/31/2011 | 37.68 | .21 | 4.09 | 4.30 | ||||||||||||
Class 529-C: | ||||||||||||||||
Six months ended 9/30/20154,5 | 48.38 | .06 | (4.58 | ) | (4.52 | ) | ||||||||||
Year ended 3/31/2015 | 47.88 | .02 | .73 | .75 | ||||||||||||
Year ended 3/31/2014 | 41.15 | .29 | 6.54 | 6.83 | ||||||||||||
Year ended 3/31/2013 | 38.36 | .24 | 2.93 | 3.17 | ||||||||||||
Year ended 3/31/2012 | 41.60 | .29 | (3.26 | ) | (2.97 | ) | ||||||||||
Year ended 3/31/2011 | 37.58 | .20 | 4.09 | 4.29 | ||||||||||||
Class 529-E: | ||||||||||||||||
Six months ended 9/30/20154,5 | 49.00 | .19 | (4.65 | ) | (4.46 | ) | ||||||||||
Year ended 3/31/2015 | 48.49 | .27 | .75 | 1.02 | ||||||||||||
Year ended 3/31/2014 | 41.65 | .54 | 6.63 | 7.17 | ||||||||||||
Year ended 3/31/2013 | 38.82 | .44 | 2.97 | 3.41 | ||||||||||||
Year ended 3/31/2012 | 42.11 | .50 | (3.32 | ) | (2.82 | ) | ||||||||||
Year ended 3/31/2011 | 38.02 | .39 | 4.16 | 4.55 | ||||||||||||
Class 529-F-1: | ||||||||||||||||
Six months ended 9/30/20154,5 | 49.40 | .31 | (4.70 | ) | (4.39 | ) | ||||||||||
Year ended 3/31/2015 | 48.89 | .51 | .74 | 1.25 | ||||||||||||
Year ended 3/31/2014 | 41.97 | .75 | 6.70 | 7.45 | ||||||||||||
Year ended 3/31/2013 | 39.11 | .63 | 3.00 | 3.63 | ||||||||||||
Year ended 3/31/2012 | 42.45 | .69 | (3.36 | ) | (2.67 | ) | ||||||||||
Year ended 3/31/2011 | 38.30 | .58 | 4.22 | 4.80 | ||||||||||||
Class R-1: | ||||||||||||||||
Six months ended 9/30/20154,5 | 48.14 | .07 | (4.55 | ) | (4.48 | ) | ||||||||||
Year ended 3/31/2015 | 47.64 | .06 | .72 | .78 | ||||||||||||
Year ended 3/31/2014 | 40.90 | .33 | 6.50 | 6.83 | ||||||||||||
Year ended 3/31/2013 | 38.12 | .27 | 2.90 | 3.17 | ||||||||||||
Year ended 3/31/2012 | 41.34 | .32 | (3.24 | ) | (2.92 | ) | ||||||||||
Year ended 3/31/2011 | 37.36 | .21 | 4.08 | 4.29 | ||||||||||||
Class R-2: | ||||||||||||||||
Six months ended 9/30/20154,5 | 48.49 | .09 | (4.59 | ) | (4.50 | ) | ||||||||||
Year ended 3/31/2015 | 47.96 | .07 | .73 | .80 | ||||||||||||
Year ended 3/31/2014 | 41.20 | .34 | 6.54 | 6.88 | ||||||||||||
Year ended 3/31/2013 | 38.39 | .28 | 2.92 | 3.20 | ||||||||||||
Year ended 3/31/2012 | 41.60 | .33 | (3.26 | ) | (2.93 | ) | ||||||||||
Year ended 3/31/2011 | 37.56 | .23 | 4.09 | 4.32 |
34 | EuroPacific Growth Fund |
Dividends | Ratio of | Ratio of | ||||||||||||||||||||
(from net | Net asset | Net assets, | expenses | net income | ||||||||||||||||||
investment | value, end | Total | end of period | to average | to average | |||||||||||||||||
income) | of period | return3 | (in millions) | net assets | net assets2 | |||||||||||||||||
$ | — | $ | 44.49 | (9.33 | )%6 | $ | 13 | 1.66 | %7 | .26 | %7 | |||||||||||
(.08 | ) | 49.07 | 1.58 | 19 | 1.69 | .06 | ||||||||||||||||
— | 48.39 | 16.58 | 31 | 1.70 | .62 | |||||||||||||||||
(.28 | ) | 41.51 | 8.26 | 39 | 1.71 | .68 | ||||||||||||||||
(.19 | ) | 38.61 | (7.05 | ) | 52 | 1.70 | .83 | |||||||||||||||
(.21 | ) | 41.77 | 11.43 | 79 | 1.68 | .56 | ||||||||||||||||
— | 43.86 | (9.34 | )6 | 339 | 1.66 | 7 | .24 | 7 | ||||||||||||||
(.25 | ) | 48.38 | 1.62 | 374 | 1.67 | .04 | ||||||||||||||||
(.10 | ) | 47.88 | 16.57 | 378 | 1.68 | .66 | ||||||||||||||||
(.38 | ) | 41.15 | 8.29 | 329 | 1.70 | .62 | ||||||||||||||||
(.27 | ) | 38.36 | (7.05 | ) | 321 | 1.68 | .77 | |||||||||||||||
(.27 | ) | 41.60 | 11.46 | 356 | 1.67 | .52 | ||||||||||||||||
— | 44.54 | (9.10 | )6 | 57 | 1.13 | 7 | .77 | 7 | ||||||||||||||
(.51 | ) | 49.00 | 2.15 | 62 | 1.14 | .57 | ||||||||||||||||
(.33 | ) | 48.49 | 17.22 | 63 | 1.15 | 1.19 | ||||||||||||||||
(.58 | ) | 41.65 | 8.86 | 53 | 1.17 | 1.14 | ||||||||||||||||
(.47 | ) | 38.82 | (6.58 | ) | 50 | 1.16 | 1.29 | |||||||||||||||
(.46 | ) | 42.11 | 12.03 | 55 | 1.16 | 1.02 | ||||||||||||||||
— | 45.01 | (8.89 | )6 | 90 | .67 | 7 | 1.23 | 7 | ||||||||||||||
(.74 | ) | 49.40 | 2.62 | 96 | .67 | 1.04 | ||||||||||||||||
(.53 | ) | 48.89 | 17.75 | 90 | .68 | 1.65 | ||||||||||||||||
(.77 | ) | 41.97 | 9.37 | 74 | .70 | 1.60 | ||||||||||||||||
(.67 | ) | 39.11 | (6.09 | ) | 65 | .68 | 1.78 | |||||||||||||||
(.65 | ) | 42.45 | 12.58 | 71 | .66 | 1.50 | ||||||||||||||||
— | 43.66 | (9.31 | )6 | 258 | 1.59 | 7 | .31 | 7 | ||||||||||||||
(.28 | ) | 48.14 | 1.67 | 285 | 1.59 | .12 | ||||||||||||||||
(.09 | ) | 47.64 | 16.70 | 299 | 1.61 | .75 | ||||||||||||||||
(.39 | ) | 40.90 | 8.36 | 288 | 1.61 | .72 | ||||||||||||||||
(.30 | ) | 38.12 | (6.98 | ) | 300 | 1.61 | .85 | |||||||||||||||
(.31 | ) | 41.34 | 11.52 | 330 | 1.62 | .57 | ||||||||||||||||
— | 43.99 | (9.28 | )6 | 856 | 1.54 | 7 | .37 | 7 | ||||||||||||||
(.27 | ) | 48.49 | 1.70 | 975 | 1.57 | .15 | ||||||||||||||||
(.12 | ) | 47.96 | 16.71 | 1,079 | 1.57 | .76 | ||||||||||||||||
(.39 | ) | 41.20 | 8.41 | 1,041 | 1.60 | .74 | ||||||||||||||||
(.28 | ) | 38.39 | (7.00 | ) | 1,098 | 1.62 | .87 | |||||||||||||||
(.28 | ) | 41.60 | 11.54 | 1,353 | 1.61 | .60 |
See page 38 for footnotes.
EuroPacific Growth Fund | 35 |
Financial highlights (continued)
(Loss) income from investment operations1 | ||||||||||||||||
Net (losses) | ||||||||||||||||
Net asset | gains on | |||||||||||||||
value, | Net | securities (both | Total from | |||||||||||||
beginning | investment | realized and | investment | |||||||||||||
of period | income2 | unrealized) | operations | |||||||||||||
Class R-2E: | ||||||||||||||||
Six months ended 9/30/20154,5 | $ | 49.67 | $ | .19 | $ | (4.71 | ) | $ | (4.52 | ) | ||||||
Period from 8/29/2014 | ||||||||||||||||
to 3/31/20155,9 | 50.08 | .10 | .27 | .37 | ||||||||||||
Class R-3: | ||||||||||||||||
Six months ended 9/30/20154,5 | 48.93 | .19 | (4.64 | ) | (4.45 | ) | ||||||||||
Year ended 3/31/2015 | 48.40 | .28 | .74 | 1.02 | ||||||||||||
Year ended 3/31/2014 | 41.56 | .54 | 6.62 | 7.16 | ||||||||||||
Year ended 3/31/2013 | 38.73 | .46 | 2.96 | 3.42 | ||||||||||||
Year ended 3/31/2012 | 42.01 | .51 | (3.31 | ) | (2.80 | ) | ||||||||||
Year ended 3/31/2011 | 37.93 | .41 | 4.13 | 4.54 | ||||||||||||
Class R-4: | ||||||||||||||||
Six months ended 9/30/20154,5 | 48.99 | .26 | (4.65 | ) | (4.39 | ) | ||||||||||
Year ended 3/31/2015 | 48.48 | .42 | .74 | 1.16 | ||||||||||||
Year ended 3/31/2014 | 41.63 | .67 | 6.64 | 7.31 | ||||||||||||
Year ended 3/31/2013 | 38.79 | .57 | 2.98 | 3.55 | ||||||||||||
Year ended 3/31/2012 | 42.09 | .62 | (3.33 | ) | (2.71 | ) | ||||||||||
Year ended 3/31/2011 | 38.00 | .51 | 4.16 | 4.67 | ||||||||||||
Class R-5: | ||||||||||||||||
Six months ended 9/30/20154,5 | 49.85 | .34 | (4.74 | ) | (4.40 | ) | ||||||||||
Year ended 3/31/2015 | 49.32 | .59 | .74 | 1.33 | ||||||||||||
Year ended 3/31/2014 | 42.33 | .82 | 6.76 | 7.58 | ||||||||||||
Year ended 3/31/2013 | 39.43 | .70 | 3.02 | 3.72 | ||||||||||||
Year ended 3/31/2012 | 42.78 | .76 | (3.40 | ) | (2.64 | ) | ||||||||||
Year ended 3/31/2011 | 38.59 | .65 | 4.22 | 4.87 | ||||||||||||
Class R-6: | ||||||||||||||||
Six months ended 9/30/20154,5 | 49.90 | .35 | (4.74 | ) | (4.39 | ) | ||||||||||
Year ended 3/31/2015 | 49.38 | .60 | .74 | 1.34 | ||||||||||||
Year ended 3/31/2014 | 42.38 | .85 | 6.76 | 7.61 | ||||||||||||
Year ended 3/31/2013 | 39.48 | .70 | 3.04 | 3.74 | ||||||||||||
Year ended 3/31/2012 | 42.85 | .73 | (3.36 | ) | (2.63 | ) | ||||||||||
Year ended 3/31/2011 | 38.65 | .63 | 4.28 | 4.91 |
Six months | ||||||||||||||||||||||||
ended | ||||||||||||||||||||||||
September 30, | Year ended March 31 | |||||||||||||||||||||||
20154,5,6 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 14% | 28% | 28% | 27% | 24% | 31% | ||||||||||||||||||
See Notes to Financial Statements
36 | EuroPacific Growth Fund |
Dividends | Ratio of | Ratio of | ||||||||||||||||||||
(from net | Net asset | Net assets, | expenses | net income | ||||||||||||||||||
investment | value, end | Total | end of period | to average | to average | |||||||||||||||||
income) | of period | return3 | (in millions) | net assets | net assets2 | |||||||||||||||||
$ | — | $ | 45.15 | (9.10 | )%6 | $ | — | 8 | 1.15 | %7 | .77 | %7 | ||||||||||
(.78 | ) | 49.67 | .826 | — | 8 | 1.26 | 6 | .286 | ||||||||||||||
— | 44.48 | (9.10 | )6 | 5,615 | 1.12 | 7 | .78 | 7 | ||||||||||||||
(.49 | ) | 48.93 | 2.16 | 6,482 | 1.13 | .59 | ||||||||||||||||
(.32 | ) | 48.40 | 17.24 | 7,219 | 1.14 | 1.20 | ||||||||||||||||
(.59 | ) | 41.56 | 8.87 | 6,962 | 1.14 | 1.18 | ||||||||||||||||
(.48 | ) | 38.73 | (6.52 | ) | 6,922 | 1.14 | 1.32 | |||||||||||||||
(.46 | ) | 42.01 | 12.03 | 7,810 | 1.13 | 1.06 | ||||||||||||||||
— | 44.60 | (8.96 | )6 | 11,713 | .84 | 7 | 1.07 | 7 | ||||||||||||||
(.65 | ) | 48.99 | 2.45 | 13,488 | .84 | .88 | ||||||||||||||||
(.46 | ) | 48.48 | 17.57 | 14,394 | .84 | 1.50 | ||||||||||||||||
(.71 | ) | 41.63 | 9.20 | 12,961 | .85 | 1.47 | ||||||||||||||||
(.59 | ) | 38.79 | (6.25 | ) | 12,490 | .85 | 1.61 | |||||||||||||||
(.58 | ) | 42.09 | 12.35 | 13,775 | .85 | 1.32 | ||||||||||||||||
— | 45.45 | (8.83 | )6 | 9,873 | .54 | 7 | 1.37 | 7 | ||||||||||||||
(.80 | ) | 49.85 | 2.77 | 11,418 | .53 | 1.19 | ||||||||||||||||
(.59 | ) | 49.32 | 17.93 | 12,197 | .54 | 1.79 | ||||||||||||||||
(.82 | ) | 42.33 | 9.54 | 13,746 | .55 | 1.78 | ||||||||||||||||
(.71 | ) | 39.43 | (5.99 | ) | 14,016 | .55 | 1.93 | |||||||||||||||
(.68 | ) | 42.78 | 12.70 | 16,572 | .55 | 1.65 | ||||||||||||||||
— | 45.51 | (8.80 | )6 | 37,970 | .49 | 7 | 1.40 | 7 | ||||||||||||||
(.82 | ) | 49.90 | 2.80 | 38,346 | .49 | 1.20 | ||||||||||||||||
(.61 | ) | 49.38 | 17.97 | 32,575 | .49 | 1.85 | ||||||||||||||||
(.84 | ) | 42.38 | 9.58 | 22,744 | .50 | 1.76 | ||||||||||||||||
(.74 | ) | 39.48 | (5.94 | ) | 17,603 | .50 | 1.88 | |||||||||||||||
(.71 | ) | 42.85 | 12.78 | 13,786 | .50 | 1.61 |
See page 38 for footnotes.
EuroPacific Growth Fund | 37 |
Financial highlights (continued)
1 | Based on average shares outstanding. |
2 | For the year ended March 31, 2014, this column reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class A net investment income per share and ratio of net income to average net assets would have been lower by $.19 and .40 percentage points, respectively. The impact to the other share classes would have been similar. |
3 | Total returns exclude any applicable sales charges, including contingent deferred sales charges. |
4 | Unaudited. |
5 | Based on operations for the period shown and, accordingly, is not representative of a full year. |
6 | Not annualized. |
7 | Annualized. |
8 | Amount less than $1 million. |
9 | Class R-2E shares were offered beginning August 29, 2014. |
38 | EuroPacific Growth Fund |
Expense example | unaudited |
As a fund shareholder, 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, 2015, through September 30, 2015).
Actual expenses:
The first line of each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
Retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table on the following page 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.
EuroPacific Growth Fund | 39 |
Beginning account value 4/1/2015 | Ending account value 9/30/2015 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A - actual return | $ | 1,000.00 | $ | 910.44 | $ | 3.93 | .82 | % | ||||||||
Class A - assumed 5% return | 1,000.00 | 1,020.96 | 4.15 | .82 | ||||||||||||
Class B - actual return | 1,000.00 | 906.99 | 7.36 | 1.54 | ||||||||||||
Class B - assumed 5% return | 1,000.00 | 1,017.35 | 7.79 | 1.54 | ||||||||||||
Class C - actual return | 1,000.00 | 906.88 | 7.60 | 1.59 | ||||||||||||
Class C - assumed 5% return | 1,000.00 | 1,017.10 | 8.04 | 1.59 | ||||||||||||
Class F-1 - actual return | 1,000.00 | 910.21 | 4.07 | .85 | ||||||||||||
Class F-1 - assumed 5% return | 1,000.00 | 1,020.81 | 4.31 | .85 | ||||||||||||
Class F-2 - actual return | 1,000.00 | 911.47 | 2.83 | .59 | ||||||||||||
Class F-2 - assumed 5% return | 1,000.00 | 1,022.11 | 2.99 | .59 | ||||||||||||
Class 529-A - actual return | 1,000.00 | 910.15 | 4.21 | .88 | ||||||||||||
Class 529-A - assumed 5% return | 1,000.00 | 1,020.66 | 4.46 | .88 | ||||||||||||
Class 529-B - actual return | 1,000.00 | 906.66 | 7.93 | 1.66 | ||||||||||||
Class 529-B - assumed 5% return | 1,000.00 | 1,016.75 | 8.39 | 1.66 | ||||||||||||
Class 529-C - actual return | 1,000.00 | 906.59 | 7.93 | 1.66 | ||||||||||||
Class 529-C - assumed 5% return | 1,000.00 | 1,016.75 | 8.39 | 1.66 | ||||||||||||
Class 529-E - actual return | 1,000.00 | 908.97 | 5.41 | 1.13 | ||||||||||||
Class 529-E - assumed 5% return | 1,000.00 | 1,019.40 | 5.72 | 1.13 | ||||||||||||
Class 529-F-1 - actual return | 1,000.00 | 911.14 | 3.21 | .67 | ||||||||||||
Class 529-F-1 - assumed 5% return | 1,000.00 | 1,021.71 | 3.40 | .67 | ||||||||||||
Class R-1 - actual return | 1,000.00 | 906.95 | 7.60 | 1.59 | ||||||||||||
Class R-1 - assumed 5% return | 1,000.00 | 1,017.10 | 8.04 | 1.59 | ||||||||||||
Class R-2 - actual return | 1,000.00 | 907.21 | 7.36 | 1.54 | ||||||||||||
Class R-2 - assumed 5% return | 1,000.00 | 1,017.35 | 7.79 | 1.54 | ||||||||||||
Class R-2E - actual return | 1,000.00 | 909.00 | 5.50 | 1.15 | ||||||||||||
Class R-2E - assumed 5% return | 1,000.00 | 1,019.30 | 5.82 | 1.15 | ||||||||||||
Class R-3 - actual return | 1,000.00 | 909.04 | 5.36 | 1.12 | ||||||||||||
Class R-3 - assumed 5% return | 1,000.00 | 1,019.45 | 5.67 | 1.12 | ||||||||||||
Class R-4 - actual return | 1,000.00 | 910.38 | 4.02 | .84 | ||||||||||||
Class R-4 - assumed 5% return | 1,000.00 | 1,020.86 | 4.26 | .84 | ||||||||||||
Class R-5 - actual return | 1,000.00 | 911.73 | 2.59 | .54 | ||||||||||||
Class R-5 - assumed 5% return | 1,000.00 | 1,022.36 | 2.74 | .54 | ||||||||||||
Class R-6 - actual return | 1,000.00 | 912.02 | 2.35 | .49 | ||||||||||||
Class R-6 - assumed 5% return | 1,000.00 | 1,022.61 | 2.48 | .49 |
* | 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). |
40 | EuroPacific Growth Fund |
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EuroPacific Growth Fund | 41 |
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42 | EuroPacific Growth Fund |
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EuroPacific Growth Fund | 43 |
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 92618-4518
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address near you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Counsel
Dechert LLP
One Bush Street, Suite 1600
San Francisco, CA 94104-4446
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
44 | EuroPacific Growth Fund |
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, 2015, 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, 2015, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
The American Funds Advantage
Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — has resulted in a superior long-term track record.
Aligned with investor success | |
We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.1 | |
The Capital SystemSM | |
Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. An extensive global research effort is the backbone of our system. | |
Superior long-term track record | |
Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 54% of 10-year periods and 57% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3 |
1 | Portfolio manager experience as of December 31, 2014. | |
2 | Based on Class A share results for rolling periods through December 31, 2014. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except SMALLCAP World Fund, for which the Lipper average was used). | |
3 | On average, our management fees were in the lowest quintile 70% of the time, based on the 20-year period ended December 31, 2014, versus comparable Lipper categories, excluding funds of funds. |
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
Common stocks 89.22% Financials 19.53% | Shares | Value (000) |
Barclays PLC1 | 698,610,669 | $2,582,801 |
HDFC Bank Ltd.1 | 97,254,759 | 1,907,890 |
HDFC Bank Ltd. (ADR) | 8,898,800 | 543,628 |
Prudential PLC1 | 94,571,984 | 1,999,305 |
AIA Group Ltd.1 | 289,972,200 | 1,509,753 |
Housing Development Finance Corp. Ltd.1 | 65,794,265 | 1,218,949 |
Kotak Mahindra Bank Ltd.1 | 88,462,514 | 877,975 |
Société Générale1 | 18,380,372 | 822,192 |
Fairfax Financial Holdings Ltd.2 | 868,291 | 395,576 |
Fairfax Financial Holdings Ltd. (CAD denominated)2 | 781,878 | 356,072 |
AXA SA1 | 30,809,157 | 747,959 |
Cheung Kong Property Holdings Ltd.1 | 97,689,444 | 715,951 |
ORIX Corp.1 | 55,001,700 | 711,463 |
ICICI Bank Ltd.1 | 130,051,772 | 537,930 |
Sumitomo Mitsui Financial Group, Inc.1 | 13,885,000 | 528,567 |
Sun Hung Kai Properties Ltd.1 | 37,755,694 | 492,111 |
Bank of Ireland1,3 | 1,250,688,553 | 486,063 |
Credit Suisse Group AG1 | 17,945,987 | 431,739 |
Henderson Land Development Co. Ltd.1 | 64,480,527 | 385,920 |
Commerzbank AG, non-registered shares1,3 | 34,445,684 | 362,579 |
Indiabulls Housing Finance Ltd.1,2 | 26,207,577 | 320,385 |
Brookfield Asset Management Inc., Class A | 9,972,000 | 313,520 |
UniCredit SpA1 | 49,728,230 | 309,920 |
Hana Financial Group Inc.1 | 13,624,630 | 304,393 |
Deutsche Bank AG1 | 11,318,333 | 304,279 |
Axis Bank Ltd.1 | 39,951,415 | 302,757 |
ING Groep NV, depository receipts1 | 21,240,000 | 301,517 |
UBS Group AG1 | 13,214,026 | 244,871 |
Sberbank of Russia (ADR)1 | 19,940,000 | 98,672 |
Sberbank of Russia (ADR) | 13,760,875 | 67,704 |
Sberbank of Russia (GDR)1,4 | 11,167,686 | 55,263 |
Daiwa House Industry Co., Ltd.1 | 8,550,000 | 212,223 |
St. James’s Place PLC1 | 16,268,584 | 209,432 |
Resona Holdings, Inc.1 | 35,208,900 | 179,890 |
Ayala Land, Inc.1 | 235,949,700 | 172,168 |
Ayala Land, Inc., preference shares1,1,3 | 481,283,600 | 1,030 |
Siam Commercial Bank PCL1 | 43,761,040 | 162,123 |
Banco Santander, SA1 | 30,239,066 | 161,014 |
Bankia, SA1 | 122,014,203 | 158,106 |
BNP Paribas SA1 | 2,613,981 | 153,926 |
Svenska Handelsbanken AB, Class A1 | 10,532,756 | 151,315 |
China Overseas Land & Investment Ltd.1 | 47,825,000 | 145,952 |
BM&FBOVESPA SA - Bolsa de Valores, Mercadorias e Futuros, ordinary nominative | 49,200,000 | 137,504 |
Itaú Unibanco Holding SA, preferred nominative (ADR) | 19,926,500 | 131,913 |
Aberdeen Asset Management PLC1 | 28,097,195 | 126,370 |
Aegon NV1 | 19,202,997 | 110,585 |
Daito Trust Construction Co., Ltd.1 | 897,700 | 91,315 |
Common stocks Financials (continued) | Shares | Value (000) |
Banca Monte dei Paschi di Siena SPA1,3 | 49,384,445 | $88,236 |
Industrial and Commercial Bank of China Ltd., Class H1 | 151,000,000 | 87,544 |
Shinsei Bank, Ltd.1 | 42,327,000 | 87,431 |
Mitsui Fudosan Co., Ltd.1 | 3,030,000 | 83,327 |
Assicurazioni Generali SpA1 | 4,410,000 | 80,886 |
Toronto-Dominion Bank (CAD denominated) | 1,917,313 | 75,572 |
RSA Insurance Group PLC1 | 9,457,706 | 57,742 |
Investor AB, Class B1 | 1,557,614 | 53,610 |
Bancolombia SA (ADR) | 1,530,000 | 49,266 |
Bank of the Philippine Islands1 | 28,000,000 | 48,135 |
Investment AB Kinnevik, Class B1 | 1,648,633 | 47,200 |
HSBC Holdings PLC (HKD denominated)1 | 6,251,952 | 46,749 |
AEON Financial Service Co., Ltd.1 | 1,967,500 | 38,958 |
Eurobank Ergasias SA1,3 | 112,500,874 | 2,787 |
23,390,013 | ||
Consumer discretionary 12.61% | ||
Toyota Motor Corp.1 | 18,633,800 | 1,095,935 |
Naspers Ltd., Class N1 | 6,819,800 | 855,703 |
Altice NV, Class A1,3 | 25,757,631 | 538,935 |
Altice NV, Class B1,3 | 11,656,536 | 260,044 |
Rakuten, Inc.1 | 52,149,100 | 668,801 |
Liberty Global PLC, Class C3 | 8,508,070 | 349,001 |
Liberty Global PLC, Class A3 | 7,194,500 | 308,932 |
Numericable-SFR, non-registered shares1,3 | 13,331,911 | 617,488 |
Ctrip.com International, Ltd. (ADR)2,3 | 9,034,000 | 570,768 |
Barratt Developments PLC1,2 | 55,044,567 | 538,460 |
Industria de Diseño Textil, SA1 | 15,554,000 | 521,053 |
Hyundai Motor Co.1 | 3,429,909 | 477,056 |
Publicis Groupe SA1 | 6,800,958 | 464,643 |
adidas AG1 | 5,097,429 | 410,296 |
Hyundai Mobis Co., Ltd.1 | 2,091,936 | 406,402 |
Suzuki Motor Corp.1 | 12,155,000 | 375,570 |
Volkswagen AG, nonvoting preferred1 | 3,199,501 | 349,890 |
Steinhoff International Holdings Ltd.1 | 52,584,000 | 323,136 |
Kering SA1 | 1,894,000 | 310,004 |
Mahindra & Mahindra Ltd.1 | 15,761,320 | 304,134 |
Sands China Ltd.1 | 99,677,200 | 303,167 |
Paddy Power PLC1,2 | 2,390,500 | 275,098 |
Sports Direct International PLC1,3 | 23,967,384 | 274,964 |
Maruti Suzuki India Ltd.1 | 3,688,306 | 263,971 |
Schibsted ASA, Class B1,3 | 5,107,283 | 161,639 |
Schibsted ASA, Class A1 | 2,882,283 | 97,906 |
B&M European Value Retail SA1 | 49,736,144 | 245,273 |
H & M Hennes & Mauritz AB, Class B1 | 6,698,000 | 244,903 |
Li & Fung Ltd.1 | 289,247,000 | 222,225 |
ASOS PLC1,2,3 | 5,026,900 | 210,736 |
Renault SA1 | 2,726,922 | 195,892 |
Carnival PLC1 | 3,620,000 | 186,853 |
Burberry Group PLC1 | 8,922,000 | 185,166 |
Panasonic Corp.1 | 17,833,400 | 181,046 |
HUGO BOSS AG1 | 1,515,925 | 169,999 |
LVMH Moet Hennessy Vuitton SE1 | 980,000 | 167,229 |
Kroton Educacional SA, ordinary nominative2 | 84,909,100 | 165,128 |
Nokian Renkaat Oyj1 | 5,053,886 | 163,832 |
Common stocks Consumer discretionary (continued) | Shares | Value (000) |
Techtronic Industries Co. Ltd.1 | 43,815,000 | $163,189 |
Mr Price Group Ltd.1 | 10,047,345 | 140,233 |
JD.com, Inc., Class A (ADR)3 | 4,838,800 | 126,099 |
Cie. Générale des Établissements Michelin1 | 1,291,975 | 117,895 |
Melco Crown Entertainment Ltd. (ADR) | 8,414,000 | 115,777 |
Galaxy Entertainment Group Ltd.1 | 44,110,000 | 113,280 |
Global Brands Group Holding Ltd.1,2,3 | 543,368,100 | 113,040 |
TOD’S SpA1 | 1,224,376 | 107,427 |
Accor SA1 | 1,871,041 | 87,588 |
Kingfisher PLC1 | 13,239,000 | 71,991 |
Shangri-La Asia Ltd.1 | 78,067,142 | 67,501 |
Astra International Tbk PT1 | 180,853,400 | 64,772 |
Whitbread PLC1 | 655,225 | 46,345 |
Kia Motors Corp.1 | 994,660 | 45,118 |
Genting Singapore PLC1 | 80,300,000 | 40,941 |
SEGA SAMMY HOLDINGS INC.1 | 3,820,000 | 37,403 |
MGM China Holdings Ltd.1 | 31,900,000 | 37,136 |
Tata Motors Ltd.1,3 | 8,031,516 | 36,657 |
Wynn Macau, Ltd.1 | 28,540,000 | 32,727 |
Prada SpA1 | 6,020,000 | 23,179 |
Daimler AG1 | 310,000 | 22,472 |
Liberty Global PLC LiLAC, Class C3 | 329,003 | 11,265 |
Liberty Global PLC LiLAC, Class A3 | 216,675 | 7,300 |
Hermès International1 | 47,805 | 17,404 |
15,108,017 | ||
Information technology 12.51% | ||
Nintendo Co., Ltd.1,2 | 11,276,600 | 1,905,089 |
Baidu, Inc., Class A (ADR)3 | 11,482,074 | 1,577,752 |
Taiwan Semiconductor Manufacturing Co., Ltd.1 | 354,917,649 | 1,416,301 |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 5,962,723 | 123,726 |
Murata Manufacturing Co., Ltd.1 | 11,092,000 | 1,440,497 |
Tencent Holdings Ltd.1 | 69,210,800 | 1,164,024 |
ASML Holding NV1 | 12,657,411 | 1,109,709 |
Naver Corp.1,2 | 1,743,921 | 757,466 |
Samsung Electronics Co., Ltd.1 | 746,066 | 717,489 |
Samsung Electronics Co., Ltd., nonvoting preferred1 | 48,800 | 38,024 |
Alibaba Group Holding Ltd. (ADR)3 | 11,614,732 | 684,921 |
Infineon Technologies AG1 | 55,733,948 | 626,343 |
ARM Holdings PLC1 | 43,026,700 | 620,067 |
Tech Mahindra Ltd.1,2 | 57,606,716 | 490,370 |
Alcatel-Lucent1,3 | 102,054,168 | 375,725 |
Gemalto NV1,2 | 4,820,745 | 312,890 |
AAC Technologies Holdings Inc.1 | 46,497,500 | 290,847 |
TDK Corp.1 | 4,143,000 | 235,656 |
MediaTek Inc.1 | 25,483,000 | 190,170 |
Hexagon AB, Class B1 | 5,037,949 | 154,184 |
Samsung SDI Co., Ltd.1 | 1,418,520 | 130,503 |
Hitachi, Ltd.1 | 22,561,000 | 114,026 |
Yandex NV, Class A3 | 10,227,200 | 109,738 |
Halma PLC1 | 7,776,157 | 85,064 |
Keyence Corp.1 | 169,500 | 75,892 |
Samsung Electro-Mechanics Co., Ltd.1 | 1,106,000 | 60,300 |
STMicroelectronics NV1 | 7,721,335 | 52,576 |
Quanta Computer Inc.1 | 23,246,530 | 40,158 |
Common stocks Information technology (continued) | Shares | Value (000) |
Mail.Ru Group Ltd. (GDR)1,3 | 2,103,000 | $36,665 |
Delta Electronics, Inc.1 | 5,607,000 | 26,431 |
ASM Pacific Technology Ltd.1 | 3,127,300 | 20,650 |
14,983,253 | ||
Health care 11.57% | ||
Novo Nordisk A/S, Class B1 | 97,241,991 | 5,233,980 |
Novartis AG1 | 30,059,832 | 2,768,954 |
Bayer AG1 | 15,040,566 | 1,922,309 |
UCB SA1,2 | 12,642,824 | 989,523 |
Roche Holding AG, non-registered shares, non-voting1 | 2,158,000 | 570,476 |
Grifols, SA, Class A, non-registered shares1 | 6,343,500 | 262,392 |
Grifols, SA, Class B, preferred nonvoting, non-registered shares1 | 5,627,050 | 173,899 |
Grifols, SA, Class B (ADR) | 1,770,739 | 53,830 |
Sysmex Corp.1 | 9,022,200 | 477,082 |
Takeda Pharmaceutical Co. Ltd.1 | 8,256,000 | 363,900 |
Fresenius SE & Co. KGaA1 | 3,903,127 | 261,787 |
Fresenius Medical Care AG & Co. KGaA1 | 3,322,000 | 259,039 |
Sonova Holding AG1 | 1,540,715 | 198,684 |
Merck KGaA1 | 1,545,500 | 136,824 |
Dr. Reddy’s Laboratories Ltd.1 | 1,432,619 | 90,901 |
AstraZeneca PLC1 | 885,000 | 56,165 |
William Demant Holding A/S1,3 | 392,924 | 32,713 |
13,852,458 | ||
Industrials 9.03% | ||
International Consolidated Airlines Group, SA (CDI)1,2,3 | 163,039,440 | 1,455,005 |
Airbus Group SE, non-registered shares1 | 22,018,000 | 1,307,782 |
Ryanair Holdings PLC (ADR) | 13,391,191 | 1,048,530 |
VINCI SA1 | 8,265,800 | 525,601 |
Safran SA1 | 6,931,720 | 523,019 |
Toshiba Corp.1 | 178,530,000 | 450,846 |
Recruit Holdings Co., Ltd.1 | 14,028,100 | 421,976 |
Babcock International Group PLC1,2 | 30,009,478 | 415,139 |
Jardine Matheson Holdings Ltd.1 | 8,328,700 | 393,746 |
KONE Oyj, Class B1 | 9,710,727 | 370,005 |
Nidec Corp.1 | 5,125,000 | 353,095 |
Geberit AG1 | 1,055,000 | 323,007 |
Groupe Eurotunnel SE1 | 22,740,277 | 309,728 |
easyJet PLC1 | 10,727,574 | 289,112 |
CK Hutchison Holdings Ltd.1 | 20,691,784 | 269,465 |
Randstad Holding NV1 | 4,241,950 | 253,125 |
SMC Corp.1 | 1,149,000 | 252,359 |
Wolseley PLC1 | 4,104,904 | 240,134 |
ASSA ABLOY AB, Class B1 | 10,899,000 | 195,766 |
Bureau Veritas SA1 | 8,354,000 | 176,246 |
SECOM Co., Ltd.1 | 2,875,000 | 173,247 |
Meggitt PLC1 | 22,979,800 | 165,922 |
Adecco SA1 | 2,120,000 | 155,449 |
Edenred SA1 | 8,850,000 | 144,761 |
China State Construction International Holdings Ltd.1 | 96,638,000 | 138,566 |
Air France-KLM1,2,3 | 18,471,295 | 128,944 |
Komatsu Ltd.1 | 6,258,000 | 92,105 |
DP World Ltd.1 | 3,935,184 | 83,799 |
SGS SA1 | 38,834 | 67,896 |
Common stocks Industrials (continued) | Shares | Value (000) |
Abertis Infraestructuras, SA, Class A1 | 3,270,015 | $51,735 |
Andritz AG1 | 455,196 | 20,538 |
ALFA, SAB de CV, Class A, ordinary participation certificates | 7,500,000 | 14,627 |
10,811,275 | ||
Consumer staples 7.66% | ||
Associated British Foods PLC1,2 | 39,935,838 | 2,023,993 |
British American Tobacco PLC1 | 25,625,999 | 1,416,263 |
Seven & i Holdings Co., Ltd.1 | 16,898,700 | 774,258 |
Pernod Ricard SA1 | 7,516,213 | 758,956 |
Alimentation Couche-Tard Inc., Class B | 16,281,800 | 748,755 |
Nestlé SA1 | 8,203,799 | 617,799 |
Kao Corp.1 | 13,562,800 | 616,203 |
SABMiller PLC1 | 8,913,000 | 505,068 |
Japan Tobacco Inc.1 | 11,161,000 | 347,194 |
Shiseido Co., Ltd.1 | 14,024,700 | 307,375 |
Magnit PJSC (GDR)1 | 5,370,000 | 257,085 |
Wal-Mart de México, SAB de CV, Series V | 65,671,436 | 161,256 |
Asahi Group Holdings, Ltd.1 | 3,510,000 | 114,228 |
Thai Beverage PCL1 | 217,695,000 | 105,140 |
Coca-Cola HBC AG (CDI)1 | 3,562,746 | 75,545 |
Reckitt Benckiser Group PLC1 | 787,000 | 71,437 |
Hypermarcas SA, ordinary nominative3 | 16,335,000 | 62,958 |
Anheuser-Busch InBev NV1 | 534,630 | 56,785 |
President Chain Store Corp.1 | 7,478,000 | 46,628 |
ITC Ltd.1 | 7,013,025 | 35,313 |
Treasury Wine Estates Ltd.1 | 7,363,000 | 34,034 |
Indofood Sukses Makmur Tbk PT1 | 87,140,000 | 33,005 |
9,169,278 | ||
Telecommunication services 4.10% | ||
SoftBank Group Corp.1 | 51,369,600 | 2,363,536 |
China Mobile Ltd.1 | 57,943,500 | 691,561 |
KDDI Corp.1 | 25,483,900 | 570,695 |
BT Group PLC1 | 43,655,000 | 277,790 |
Vodafone Group PLC1 | 76,500,000 | 241,896 |
Idea Cellular Ltd.1 | 70,377,011 | 160,638 |
China Unicom (Hong Kong) Ltd.1 | 97,728,000 | 124,216 |
Intouch Holdings PCL, nonvoting depository receipts1 | 35,210,000 | 70,635 |
Intouch Holdings PCL1 | 24,460,000 | 49,069 |
TeliaSonera AB1 | 22,175,000 | 119,596 |
Reliance Communications Ltd.1,3 | 87,257,324 | 90,494 |
China Telecom Corp. Ltd., Class H1 | 162,800,000 | 78,883 |
TDC A/S1 | 7,810,000 | 40,302 |
MTN Group Ltd.1 | 2,699,984 | 34,760 |
4,914,071 | ||
Materials 2.81% | ||
Chr. Hansen Holding A/S1,2 | 8,743,000 | 489,614 |
HeidelbergCement AG1 | 5,460,541 | 373,904 |
Syngenta AG1 | 1,151,500 | 369,843 |
Klabin SA, units | 46,319,100 | 255,634 |
Amcor Ltd.1 | 24,877,381 | 231,111 |
Rio Tinto PLC1 | 6,038,000 | 202,567 |
LafargeHolcim Ltd.1 | 3,808,770 | 200,103 |
Common stocks Materials (continued) | Shares | Value (000) |
Grasim Industries Ltd. (GDR)1 | 1,915,953 | $106,568 |
Grasim Industries Ltd.1 | 1,544,513 | 85,908 |
Vale SA, ordinary nominative (ADR) | 41,806,050 | 175,585 |
Fortescue Metals Group Ltd.1 | 119,630,000 | 153,731 |
Linde AG1 | 922,270 | 149,394 |
BASF SE1 | 1,650,500 | 125,940 |
First Quantum Minerals Ltd. | 27,322,001 | 100,116 |
Akzo Nobel NV1 | 1,091,000 | 70,927 |
LG Chem, Ltd.1 | 259,712 | 63,106 |
Anhui Conch Cement Co. Ltd., Class H1 | 20,201,000 | 59,814 |
Givaudan SA1 | 29,332 | 47,794 |
ArcelorMittal1 | 5,874,000 | 30,692 |
Glencore PLC1 | 17,405,000 | 24,254 |
Koninklijke DSM NV1 | 515,979 | 23,825 |
Arkema SA1 | 316,213 | 20,520 |
3,360,950 | ||
Energy 2.59% | ||
Petróleo Brasileiro SA (Petrobras), ordinary nominative (ADR)3 | 119,374,204 | 519,278 |
Reliance Industries Ltd.1 | 31,901,800 | 420,107 |
Tourmaline Oil Corp.2,3 | 12,282,000 | 285,951 |
Enbridge Inc. (CAD denominated) | 7,157,789 | 265,769 |
TOTAL SA1 | 5,751,882 | 259,324 |
BG Group PLC1 | 17,403,500 | 250,954 |
Oil Search Ltd.1 | 48,335,452 | 245,081 |
Galp Energia, SGPS, SA, Class B1 | 17,404,586 | 171,700 |
Tullow Oil PLC (Ireland)1,2,3 | 59,145,000 | 151,980 |
Canadian Natural Resources, Ltd. | 6,895,000 | 134,283 |
Royal Dutch Shell PLC, Class A (GBP denominated)1 | 2,262,000 | 53,342 |
Royal Dutch Shell PLC, Class A (ADR) | 1,000,000 | 47,390 |
Royal Dutch Shell PLC, Class A (EUR denominated)1 | 712,000 | 16,907 |
Royal Dutch Shell PLC, Class B (ADR) | 303,000 | 14,386 |
Weatherford International PLC3 | 12,670,000 | 107,442 |
Eni SpA1 | 2,843,000 | 44,733 |
Repsol, SA, non-registered shares1 | 3,837,647 | 44,719 |
BP PLC1 | 7,620,200 | 38,624 |
YPF Sociedad Anónima, Class D (ADR) | 2,243,726 | 34,172 |
3,106,142 | ||
Utilities 2.12% | ||
Cheung Kong Infrastructure Holdings Ltd.1 | 51,481,000 | 461,776 |
Power Assets Holdings Ltd.1 | 48,296,500 | 458,015 |
Power Grid Corp. of India Ltd.1 | 225,654,116 | 455,953 |
Enel SPA1 | 61,150,000 | 273,426 |
ENN Energy Holdings Ltd.1 | 53,035,000 | 255,896 |
China Resources Gas Group Ltd.1 | 92,722,000 | 240,847 |
SSE PLC1 | 6,494,061 | 147,276 |
National Grid PLC1 | 7,835,000 | 109,116 |
EDP - Energias de Portugal, SA1 | 29,694,335 | 108,847 |
PT Perusahaan Gas Negara (Persero) Tbk1 | 132,095,700 | 22,955 |
2,534,107 |
Common stocks Miscellaneous 4.69% | Shares | Value (000) |
Other common stocks in initial period of acquisition | $5,620,248 | |
Total common stocks (cost: $84,749,973,000) | 106,849,812 | |
Bonds, notes & other debt instruments 0.65% U.S. Treasury bonds & notes 0.46% U.S. Treasury 0.46% | Principal amount (000) | |
U.S. Treasury 0.25% 20155 | $155,600 | 155,619 |
U.S. Treasury 1.50% 2016 | 155,000 | 156,435 |
U.S. Treasury 1.75% 2016 | 172,000 | 173,740 |
U.S. Treasury 2.125% 2016 | 58,850 | 59,342 |
Total U.S. Treasury bonds & notes | 545,136 | |
Corporate bonds & notes 0.19% Materials 0.19% | ||
FMG Resources 9.75% 20224 | 246,420 | 230,095 |
Total corporate bonds, notes & loans | 230,095 | |
Total bonds, notes & other debt instruments (cost: $785,692,000) | 775,231 | |
Short-term securities 10.00% | ||
ANZ New Zealand (International) Ltd. 0.38% due 1/15/20164 | 50,000 | 49,952 |
AstraZeneca PLC 0.15% due 10/22/20154 | 50,000 | 49,996 |
Bank of Nova Scotia 0.23%–0.39% due 10/19/2015–1/22/20164 | 167,600 | 167,490 |
Bank of Tokyo-Mitsubishi UFJ, Ltd. 0.20% due 10/15/2015 | 20,100 | 20,099 |
BASF AG 0.41% due 1/7/20164 | 50,000 | 49,962 |
BNP Paribas Finance Inc. 0.16% due 10/9/2015 | 30,500 | 30,499 |
British Columbia (Province of) 0.19%–0.30% due 12/11/2015–2/24/2016 | 100,069 | 99,996 |
Canada Bill(s) 0.16% due 11/3/2015 | 50,000 | 49,994 |
Canadian Imperial Bank of Commerce 0.22% due 10/23/2015 | 35,000 | 35,002 |
Chariot Funding, LLC 0.32% due 11/18/2015–11/19/20154 | 60,000 | 59,978 |
Coca-Cola Co. 0.33%–0.35% due 1/8/2016–1/25/20164 | 125,000 | 124,932 |
Electricité de France 0.17%–0.19% due 10/13/2015–12/4/20154 | 157,100 | 157,060 |
Export Development Canada 0.19%–0.29% due 10/1/2015–2/4/2016 | 105,000 | 104,981 |
ExxonMobil Corp. 0.14% due 10/22/2015 | 40,000 | 39,997 |
Fannie Mae 0.12%–0.28% due 10/1/2015–3/1/2016 | 1,526,900 | 1,526,737 |
Federal Farm Credit Banks 0.19%–0.28% due 1/13/2016–4/20/2016 | 277,700 | 277,547 |
Federal Home Loan Bank 0.09%–0.36% due 10/1/2015–7/18/2016 | 4,361,093 | 4,360,420 |
Freddie Mac 0.10%–0.26% due 10/1/2015–3/2/2016 | 2,298,706 | 2,298,507 |
General Electric Capital Corp. 0.23% due 11/17/2015 | 34,500 | 34,492 |
Gotham Funding Corp. 0.20% due 10/6/20154 | 50,800 | 50,798 |
Jupiter Securitization Co., LLC 0.32%–0.39% due 11/16/2015–12/10/20154 | 205,000 | 204,899 |
KfW 0.18%–0.20% due 10/20/2015–10/27/20154 | 140,000 | 139,994 |
Mitsubishi UFJ Trust and Banking Corp. 0.21%–0.29% due 11/4/2015–11/19/20154 | 80,000 | 79,982 |
Mizuho Bank, Ltd. 0.29%–0.31% due 10/21/2015–11/17/20154 | 100,000 | 99,980 |
National Australia Bank Ltd. 0.15%–0.28% due 10/14/2015–12/4/20154 | 175,000 | 174,977 |
Nestlé Capital Corp. 0.15%–0.18% due 11/17/2015–11/20/20154 | 75,000 | 74,981 |
Nestlé Finance International Ltd. 0.15% due 11/5/2015 | 50,000 | 49,992 |
Nordea Bank AB 0.25%–0.42% due 10/20/2015–1/21/20164 | 260,000 | 259,885 |
Old Line Funding, LLC 0.27%–0.29% due 10/6/2015–1/25/20164 | 117,900 | 117,844 |
Province of Ontario 0.18% due 12/15/2015 | 42,880 | 42,865 |
Québec (Province of) 0.20% due 12/10/20154 | 100,000 | 99,961 |
Reckitt Benckiser Treasury Services PLC 0.22%–0.32% due 10/5/2015–12/4/20154 | 80,000 | 79,985 |
Short-term securities | Principal amount (000) | Value (000) |
Sumitomo Mitsui Banking Corp. 0.28%–0.31% due 10/19/2015–11/18/20154 | $170,700 | $170,669 |
Svenska Handelsbanken Inc. 0.29%–0.32% due 11/18/2015–1/5/20164 | 173,500 | 173,410 |
Toronto-Dominion Holdings USA Inc. 0.21%–0.39% due 10/8/2015–1/19/20164 | 389,500 | 389,372 |
Toyota Motor Credit Corp. 0.21%–0.22% due 10/15/2015–11/3/2015 | 76,900 | 76,894 |
U.S. Treasury Bills 0.11%–0.14% due 12/3/2015–1/21/2016 | 112,900 | 112,898 |
Victory Receivables Corp. 0.22% due 10/13/20154 | 42,700 | 42,697 |
Total short-term securities (cost: $11,976,769,000) | 11,979,724 | |
Total investment securities 99.87% (cost: $97,512,434,000) | 119,604,767 | |
Other assets less liabilities 0.13% | 150,043 | |
Net assets 100.00% | $119,754,810 |
Settlement date | Counterparty | Contract amount | Unrealized (depreciation) appreciation at 9/30/2015 (000) | ||
Receive (000) | Deliver (000) | ||||
Sales: | |||||
Australian dollars | 11/25/2015 | UBS AG | $13,729 | A$19,650 | $(21) |
British pounds | 10/5/2015 | JPMorgan Chase | $235,070 | £153,467 | 2,919 |
British pounds | 10/8/2015 | UBS AG | $432,625 | £275,000 | 16,637 |
British pounds | 10/8/2015 | JPMorgan Chase | $57,878 | £37,620 | 970 |
British pounds | 10/9/2015 | Citibank | $415,974 | £265,040 | 15,054 |
British pounds | 10/14/2015 | Bank of America, N.A. | $293,748 | £188,327 | 8,876 |
British pounds | 10/14/2015 | Barclays Bank PLC | $25,944 | £16,633 | 784 |
British pounds | 10/19/2015 | UBS AG | $247,188 | £160,279 | 4,750 |
Euros | 10/8/2015 | HSBC Bank | $45,647 | €41,021 | (195) |
Euros | 10/9/2015 | HSBC Bank | $106,559 | €97,238 | (2,109) |
Euros | 11/18/2015 | Bank of America, N.A. | $197,457 | €174,540 | 2,274 |
Euros | 12/8/2015 | JPMorgan Chase | $123,427 | €110,600 | (304) |
Japanese yen | 10/5/2015 | Barclays Bank PLC | $350,674 | ¥42,103,000 | (305) |
Japanese yen | 10/14/2015 | Bank of America, N.A. | $135,273 | ¥16,300,000 | (622) |
Japanese yen | 10/14/2015 | Barclays Bank PLC | $133,438 | ¥16,080,000 | (623) |
Japanese yen | 10/15/2015 | Bank of America, N.A. | $28,690 | ¥3,575,000 | (1,115) |
Japanese yen | 10/16/2015 | UBS AG | $51,002 | ¥6,320,000 | (1,690) |
Japanese yen | 10/19/2015 | Bank of America, N.A. | $35,529 | ¥4,275,000 | (115) |
Japanese yen | 10/19/2015 | JPMorgan Chase | $40,727 | ¥4,900,000 | (128) |
Japanese yen | 10/23/2015 | UBS AG | $128,854 | ¥15,395,500 | 485 |
Japanese yen | 10/23/2015 | JPMorgan Chase | $29,740 | ¥3,570,000 | (27) |
Japanese yen | 11/10/2015 | Bank of America, N.A. | $108,747 | ¥13,020,000 | 161 |
South Korean won | 11/6/2015 | JPMorgan Chase | $26,505 | KRW30,995,115 | 391 |
$46,047 |
1 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous,“ was $96,143,900,000, which represented 80.28% of the net assets of the fund. This amount includes $96,036,302,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
2 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
3 | Security did not produce income during the last 12 months. |
4 | 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 was $3,104,162,000, which represented 2.59% of the net assets of the fund. |
5 | A portion of this security was pledged as collateral. The total value of pledged collateral was $3,266,000, which represented .01% of the net assets of the fund. |
Key to abbreviations/ and symbols |
ADR = American Depositary Receipts |
CDI = CREST Depository Interest |
GDR = Global Depositary Receipts |
A$ = Australian dollars |
CAD = Canadian dollars |
EUR/€ = Euros |
GBP/£ = British pounds |
HKD = Hong Kong dollars |
¥ = Japanese yen |
KRW = South Korean won |
MFGEFPX-016-1115O-S49163 | EuroPacific Growth Fund — Page 9 of 9 |
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/ Walter R. Burkley | |
Walter R. Burkley, Executive Vice President and Principal Executive Officer | |
Date: November 30, 2015 |
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/ Walter R. Burkley |
Walter R. Burkley, Executive Vice President and Principal Executive Officer |
Date: November 30, 2015 |
By /s/ Brian C. Janssen |
Brian C. Janssen, Treasurer and Principal Financial Officer |
Date: November 30, 2015 |