American Funds New Economy A (ANEFX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-03735

The New Economy 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: November 30

Date of reporting period: May 31, 2009

Chad L. Norton

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

Copies to:

Mark D. Perlow

K&L Gates LLP

Four Embarcadero Center, Suite 1200

San Francisco, California  94111

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

[logo - - American Funds®]

The right choice for the long term®

The New Economy Fund

[photo of a man taking photographs while standing on top of a rock formation]

Semi-annual report for the six months ended May 31, 2009

The New Economy Fund® seeks to help you participate in the many investment opportunities created as society continues to shift from producing industrial goods to providing a wide array of information and services. The fund has the flexibility to invest all over the world in industries ranging from broadcasting and publishing to banking and insurance, cellular telephones to merchandising, and health care to computer software and the Internet.

This fund is one of the American Funds. American Funds is one of the nation’s largest mutual fund families. For nearly 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended June 30, 2009 (the most recent calendar quarter-end):
Class A shares	1 year			5 years			10 years
Reflecting 5.75% maximum sales charge		–22.69	%		0.31	%		–0.62	%

The total annual fund operating expense ratio was 0.92% for Class A shares for the 12 months ended June 30, 2009. This figure does not reflect the fee waiver described below. Please note that the expense ratio shown above differs from those shown in the Financial Highlights table on pages 22 to 25 and the Expense Example on pages 26 and 27, which are annualized for the six-month period ended May 31, 2009.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 22 to 25 for details.

Results for other share classes can be found on page 28.

Equity investments are subject to market fluctuations. Investing outside the United States may be subject to risks, such as currency fluctuations and political instability. Global diversification can help reduce these risks. Investing in small-capitalization stocks can involve additional risks. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

Fellow shareholders:

[photo of a man taking photographs while standing on top of a rock formation]

Over the first six months of The New Economy Fund’s fiscal year, economic conditions in the United States and many other regions of the world remained fragile, with credit, real estate and labor markets still facing challenges. However, the pace of economic decline appeared to be slowing, and securities markets lifted in March in anticipation of improving conditions.

The New Economy Fund recorded a total return of 22.4% for the six months ended May 31, 2009. The fund outpaced the Global Service and Information Index, which rose 8.8%. This index is unmanaged and tracks companies in those sectors around the world, and its results do not include expenses. The fund’s return also outpaced the 17.8% total return of the Lipper Multi-Cap Growth Funds Index, a measure of 30 growth funds representing a variety of market capitalizations. As you can see in the table below, the fund’s results compare favorably with these indexes over the long term as well.

There are some signs that the U.S. recession that began in December 2007 is approaching its bottom. The deterioration in housing prices appears to be slowing, and with the intense efforts of central banks in the U.S. and other countries to increase liquidity, the global credit markets are improving.

[Begin Sidebar]

Results at a glance

(for periods ended May 31, 2009, with all distributions reinvested)

Average annual total returns

Lifetime

Total returns

(since

6 months

1 year

5 years

10 years

12/1/83)

The New Economy Fund

(Class A shares)

22.4

%

–26.7

%

1.5

%

0.6

%

10.1

%

Lipper Multi-Cap Growth

Funds Index

17.8

–33.0

–1.1

–1.9

8.2

Global Service and

Information Index*†

8.8

–33.1

–1.7

–2.5

N/A

Standard & Poor’s 500

Composite Index*

4.1

–32.5

–1.9

–1.7

9.7

*Unmanaged.

†The index is compiled by Capital Research and Management Company, the investment adviser to the fund.

[End Sidebar]

Portfolio review

During the worst of the financial crisis, the markets punished nearly every company, regardless of merit. Through it all, the fund’s investment professionals kept their focus on thorough company research, and that dedication helped the fund as the market began to turn up in March. The fund’s positive results came both from securities newly acquired in the six months and from others that had been in the portfolio for some time.

The portfolio ended the six-month period with 17.9% of assets invested in the software and services industry, which proved beneficial. Internet search giant Google (+42.4%) was the fund’s top holding; Chinese Internet services company Tencent Holdings, the fourth-largest holding, was up 103.4%; and Internet portal Yahoo!, number seven in the fund, was up 37.6%. Other large holdings in the industry included SAP (+25.2%), Oracle (+21.8%) and Microsoft (+3.3%). Technology hardware and equipment made up 9.2% of the fund’s assets, including second-largest holding Apple (+46.6%) and Cisco Systems (+11.9%).

[Begin Sidebar]

Where the fund’s assets are invested (percent of net assets)
	As of 5/31/2009			As of 11/30/2008
United States		53.8	%		53.6	%
Europe
Euro zone*		14.3			11.4
United Kingdom		2.7			3.1
Switzerland		1.4			.7
Other Europe		.5			2.4
		18.9			17.6
Asia & Pacific Basin
China		5.4			3.5
Taiwan		1.5			1.6
Hong Kong		1.5			1.4
India		1.3			.8
Japan		1.3			.7
Other Asia & Pacific Basin		2.8			4.2
		13.8			12.2
Other (including Latin America)
Brazil		2.6			1.2
Israel		1.3			1.0
Other countries		1.4			.6
		5.3			2.8
Short-term securities &
other assets less liabilities		8.2			13.8
Total		100.0	%		100.0	%
*Countries using the common currency, the euro, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

[End Sidebar]

Despite negative headlines surrounding the financial industry, many of the fund’s holdings in that sector did quite well. Strong, well-capitalized banks in developing markets benefited from the solid recovery in many of those regions. These include sixth-largest holding Banco Bradesco (+44.9%), Banco Santander (+31.0%) and ICICI Bank (+119.0%). Another group of banks, which the fund added to during the period, gained as well. These were well-capitalized banks with strong balance sheets in developed markets, including eighth-largest holding Deutsche Bank, Société Générale, JPMorgan Chase and Credit Suisse. However, some of the fund’s financial holdings fell, particularly those that had somewhat weaker balance sheets and a perception of high exposure to the U.S. consumer credit sector, such as Capital One Financial (–29.0%), M&T Bank (–21.7%) and Wells Fargo (–11.7%).

While most of the fund’s holdings rose during the period, about one-fifth fell. Some telecommunication companies fared poorly. Verizon Communications fell 10.4%, and Koninklijke KPN (–4.9%), Vodafone (–3.8%) and Philippine Long Distance Telephone (–1.5%) were also weak in the six months.

In total, the fund had 38.0% of its assets invested outside the United States, 53.8% in U.S. companies and the rest in cash and short-term securities. With a cash position of 8.2% (down from 13.8% at the end of the fiscal year), we can remain responsive when we find more solid companies that we believe have the potential to thrive over the long term.

A look ahead

Our view on the intermediate outlook for global markets continues to be cautious, given the large gains since the market bottom in the spring. As the markets return to more normal functioning, we believe that the fund’s holdings should continue to do well over the long term. Many companies around the world appear to have excellent prospects and attractive valuations. However, global economies remain frail and a recovery may take some time.

The New Economy Fund’s strategy remains the same whether the markets are headed up or down: To invest in solid companies with strong management and an innovative approach that we believe will succeed over the long run. As evidenced in the last year, short-term results can sometimes suffer in volatile markets. As always, we have our eyes on the long term.

We thank you for your continued support and your long-term investment perspective.

Sincerely,

/s/ Timothy D. Armour

Timothy D. Armour

Vice Chairman of the Board

/s/ Claudia P. Huntington

Claudia P. Huntington

President

July 8, 2009

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

Summary investment portfolio, May 31, 2009

unaudited

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

[begin pie chart]

	Percent
	of net
Industry group diversification	assets
Software & services		17.86	%
Technology hardware & equipment		9.24
Banks		9.06
Telecommunication services		6.05
Diversified financials		5.91
Other industries		43.64
Short-term securities & other assets less liabilities		8.24

[end pie chart]

Country diversification	(percent of net assets)
United States		53.8	%
Euro zone (*)		14.3
China		5.4
United Kingdom		2.7
Brazil		2.6
Taiwan		1.5
Hong Kong		1.5
Switzerland		1.4
Japan		1.3
Other countries		7.3
Short-term securities & other assets less liabilities		8.2
(*)Countries using the euro as a common currency; those represented in the fund's portfolio are Austria, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands and Spain.

							Percent
				Value			of net
Common stocks  - 90.63%	Shares				(000	)	assets
Software & services  - 17.86%
Google Inc., Class A (1)		434,300		$	181,203			3.07	%
Tencent Holdings Ltd. (2)		10,380,000			116,269			1.97
Yahoo! Inc. (1)		6,295,000			99,713			1.69
Oracle Corp.		3,745,000			73,365			1.24
SAP AG (2)		1,690,000			72,647			1.23
Microsoft Corp.		3,475,000			72,593			1.23
McAfee, Inc. (1)		1,830,000			71,791			1.22
Global Payments Inc.		1,680,000			60,413			1.03
NetEase.com, Inc. (ADR) (1)		1,563,000			54,048			.92
Visa Inc., Class A		750,000			50,782			.86
United Internet AG (1) (2)		3,053,000			39,197			.67
MasterCard Inc., Class A		200,000			35,266			.60
Other securities					125,570			2.13
					1,052,857			17.86
Technology hardware & equipment  - 9.24%
Apple Inc. (1)		1,323,000			179,677			3.05
Cisco Systems, Inc. (1)		3,629,200			67,140			1.14
Delta Electronics, Inc. (2)		25,781,520			60,028			1.02
QUALCOMM Inc.		1,035,000			45,116			.76
Other securities					192,729			3.27
					544,690			9.24
Banks  - 9.06%
Banco Bradesco SA, preferred nominative		6,470,001			99,716			1.69
Banco Santander, SA (2)		6,300,053			67,822			1.15
Société Générale (2)		1,010,000			58,903			1.00
Bank of China Ltd., Class H (2)		118,855,000			53,519			.91
Industrial and Commercial Bank of China Ltd., Class H (2)		62,000,000			39,182			.66
ICICI Bank Ltd. (2)		2,310,000			36,365			.62
Other securities					178,292			3.03
					533,799			9.06
Telecommunication services  - 6.05%
Qwest Communications International Inc.		8,159,000			35,573			.61
Other securities					320,838			5.44
					356,411			6.05
Diversified financials  - 5.91%
Deutsche Bank AG (2)		1,458,800			97,996			1.66
JPMorgan Chase & Co.		1,925,000			71,032			1.21
Bank of New York Mellon Corp.		1,920,000			53,338			.90
Credit Suisse Group AG (2)		1,100,000			49,185			.83
					76,722			1.31
					348,273			5.91
Health care equipment & services  - 5.51%
Inverness Medical Innovations, Inc. (1)		3,293,000			107,121			1.82
Fresenius Kabi Pharmaceuticals Holding, Inc. (2)		1,000,000			48,181			.82
Medtronic, Inc.		212,000			7,282			.12
Other securities					162,225			2.75
					324,809			5.51
Retailing  - 5.36%
Lowe's Companies, Inc.		2,683,900			51,021			.87
Best Buy Co., Inc.		1,150,000			40,365			.68
O'Reilly Automotive, Inc. (1)		1,050,000			37,852			.64
Target Corp.		900,000			35,370			.60
Other securities					151,347			2.57
					315,955			5.36
Transportation  - 4.86%
Ryanair Holdings PLC (ADR) (1)		5,866,300			170,826			2.90
Burlington Northern Santa Fe Corp.		542,500			39,299			.67
United Parcel Service, Inc., Class B		757,000			38,713			.66
Other securities					37,784			.63
					286,622			4.86
Pharmaceuticals, biotechnology & life sciences  - 4.62%
Teva Pharmaceutical Industries Ltd. (ADR)		1,645,000			76,262			1.29
Vertex Pharmaceuticals Inc. (1)		1,350,000			40,243			.68
Other securities					155,661			2.65
					272,166			4.62
Media  - 4.17%
News Corp., Class A		4,302,815			42,082			.71
Time Warner Inc.		1,546,666			36,223			.61
Other securities					167,272			2.85
					245,577			4.17
Commercial & professional services  - 3.65%
Manpower Inc.		885,000			37,621			.64
Other securities					177,314			3.01
					214,935			3.65
Semiconductors & semiconductor equipment - 2.42%					142,382			2.42
Other securities
Consumer services  -  1.41%
Other securities					83,035			1.41
Energy  - 1.33%
Schlumberger Ltd.		1,152,400			65,952			1.12
Other securities					12,499			.21
					78,451			1.33
Consumer durables & apparel  - 1.30%
GEOX SpA (2)		4,810,904			38,003			.65
Other securities					37,996			.65
					75,999			1.30
Utilities  - 1.23%
GDF Suez (2)		1,056,574			41,592			.71
Other securities					30,799			.52
					72,391			1.23
Other - 1.89%
Other securities					112,698			1.89
Miscellaneous  -  4.76%
Other common stocks in initial period of acquisition					280,545			4.76
Total common stocks (cost: $5,617,574,000)					5,341,595			90.63
							Percent
				Value			of net
Convertible securities  - 0.90%					(000	)	assets
Other - 0.70%
Other securities					41,286			.70
Miscellaneous  -  0.20%
Other convertible securities in initial period of acquisition					11,850			.20
Total convertible securities (cost: $62,062,000)					53,136			.90
							Percent
				Value			of net
Bonds & notes  - 0.23%					(000	)	assets
Other - 0.23%
Other securities				$	13,569			.23
Total bonds & notes (cost: $12,487,000)					13,569			.23
	Principal						Percent
	amount			Value			of net
Short-term securities  - 8.08%		(000	)		(000	)	assets
Federal Home Loan Bank 0.21%-0.26% due 6/17-7/1/2009	$	115,900		$	115,882			1.97
Fannie Mae due 0.22%-0.44% 6/2-10/13/2009		68,900			68,845			1.17
Medtronic Inc. 0.19% due 6/29-7/30/2009 (3)		65,200			65,174			1.11
General Electric Capital Corp., FDIC insured, 0.26% due 9/25/2009		25,000			24,982			.79
General Electric Capital Corp. 0.18% due 6/1/2009		21,600			21,600
Freddie Mac due 0.19%-0.25% 6/29-10/19/2009		42,000			41,969			.71
U.S. Treasury Bills 0.21% due 6/25/2009		37,000			36,998			.63
Jupiter Securitization Co., LLC 0.25% due 6/3/2009 (3)		24,100			24,099			.41
Other securities					76,784			1.29
Total short-term securities (cost: $476,354,000)					476,333			8.08
Total investment securities (cost: $6,168,477,000)					5,884,633			99.84
Other assets less liabilities					9,147			.16
Net assets				$	5,893,780			100.00	%

"Miscellaneous" securities include holdings in their initial period 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 aggregate value of $6,934,000, which represented .12% of the net assets of the fund) may be subject to legal or contractual restrictions on resale.

Investments in affiliates

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares of that company.  The security listed below is included in the value of "Other securities" in the preceding summary investment portfolio. Further details on such holdings and related transactions during the six months ended May 31, 2009, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Dividend income (000	)		Value of affiliate at 5/31/09 (000	)
NuVasive, Inc.(1) (4)		1,953,586		-		1,250,000		703,586	-		$	25,414

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

(1) Security did not produce income during the last 12 months.

(2) 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 $1,721,623,000, which represented 29.21% of the net assets of the fund. This amount includes $1,672,472,000 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.

(3) Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $159,458,000, which represented 2.71% of the net assets of the fund.

(4) Unaffiliated issuer at 5/31/2009.

Key to abbreviation

ADR = American Depositary Receipts

See Notes to Financial Statements 

Financial statements

Statement of assets and liabilities			unaudited
at May 31, 2009	(dollars in thousands)
Assets:
Investment securities, at value (cost: $6,168,477)			$	5,884,633
Cash denominated in currencies other than U.S. dollars (cost: $6,798)				6,798
Cash
Receivables for:
Sales of investments		5,899
Sales of fund's shares		36,835
Dividends and interest		12,162		54,896
				5,946,402
Liabilities:
Payables for:
Purchases of investments		11,685
Repurchases of fund's shares		32,720
Investment advisory services		2,017
Services provided by affiliates		3,703
Trustees' deferred compensation		974
Other		1,523		52,622
Net assets at May 31, 2009			$	5,893,780
Net assets consist of:
Capital paid in on shares of beneficial interest			$	7,110,190
Undistributed net investment income				23,436
Accumulated net realized loss				(954,634	)
Net unrealized depreciation				(285,212	)
Net assets at May 31, 2009			$	5,893,780

(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) - unlimited shares authorized (321,995 total shares outstanding)
	Net assets		Shares outstanding		Net asset value per share*
Class A	$	4,874,698		265,584	$	18.35
Class B		106,360		6,025		17.65
Class C		136,876		7,832		17.48
Class F-1		121,119		6,591		18.38
Class F-2		5,075		276		18.37
Class 529-A		86,973		4,759		18.28
Class 529-B		11,834		666		17.77
Class 529-C		28,322		1,596		17.75
Class 529-E		4,709		260		18.13
Class 529-F-1		3,794		208		18.25
Class R-1		11,638		652		17.86
Class R-2		88,792		4,956		17.91
Class R-3		99,572		5,489		18.14
Class R-4		66,660		3,647		18.28
Class R-5		144,379		7,844		18.41
Class R-6		102,979		5,610		18.36
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Classes A and 529-A, for which the maximum offering prices per share were $19.47 and $19.40, respectively.
See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended May 31, 2009	(dollars in thousands)
Investment income:
Income:
Dividends (net of non-U.S. taxes of $3,900)	$	48,086
Interest		2,578		$	50,664
Fees and expenses*:
Investment advisory services		10,665
Distribution services		6,775
Transfer agent services		5,444
Administrative services		867
Reports to shareholders		513
Registration statement and prospectus		251
Trustees' compensation		311
Auditing and legal		53
Custodian		306
State and local taxes		88
Other		415
Total fees and expenses before waiver		25,688
Less investment advisory services waiver		182
Total fees and expenses after waiver					25,506
Net investment income					25,158
Net realized loss and unrealized appreciation on investments and currency:
Net realized loss on:
Investments		(676,524	)
Currency transactions		(274	)		(676,798	)
Net unrealized appreciation on:
Investments (net of non-U.S. taxes of $1,459)		1,705,850
Currency translations		140			1,705,990
Net realized loss and unrealized appreciation on investments and currency					1,029,192
Net increase in net assets resulting from operations				$	1,054,350
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
Statements of changes in net assets		(dollars in thousands)
	Six months			Year ended
	ended May 31,			November 30,
		2009*		2008
Operations:
Net investment income	$	25,158		$	97,731
Net realized loss on investments and currency transactions		(676,798	)		(284,610	)
Net unrealized appreciation (depreciation) on investments and currency translations		1,705,990			(4,178,982	)
Net increase (decrease) in net assets resulting from operations		1,054,350			(4,365,861	)
Dividends and distributions paid to shareholders:
Dividends from net investment income		(71,535	)		(71,993	)
Distributions from net realized gain on investments		-			(788,631	)
Total dividends and distributions paidto shareholders		(71,535	)		(860,624	)
Net capital share transactions		(200,193	)		303,973
Total increase (decrease) in net assets		782,622			(4,922,512	)
Net assets:
Beginning of period		5,111,158			10,033,670
End of period (including undistributed
net investment income: $23,436 and $69,813, respectively)	$	5,893,780		$	5,111,158
*Unaudited.
See Notes to Financial Statements

Notes to financial statements     

                                                                                                                unaudited

1. Organization and significant accounting policies

Organization – The New Economy Fund (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks long-term growth of capital by investing primarily in stocks of companies in the services and information areas of the global economy.

The fund has 16 share classes consisting of five retail share classes, five 529 college savings plan share classes and six retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The six retirement plan share classes (R-1, R-2, R-3, R-4, R-5 and R-6) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 5.75%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4,  R-5 and R-6	None	None	None

*Effective April 21, 2009, Class B and 529-B shares of the fund are no longer available for purchase.

On May 1, 2009, the fund made an additional retirement plan share class (Class R-6) available for sale pursuant to an amendment to its registration statement filed with the Securities and Exchange Commission (“SEC”). Refer to the fund’s retirement plan prospectus for more details.

Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds.Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.

Significant accounting policies – The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:

Net asset value – The fund generally determines its net asset value as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Security valuation – Equity securities are 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 in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from one or more independent pricing vendors when such prices are available. However, where the investment adviser deems it appropriate to do so, such securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Vendors base bond prices on, among other things, valuation matrices that incorporate dealer-supplied valuations, proprietary pricing models and evaluations of the yield curve as of approximately 3:00 p.m. New York time. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under guidelines adopted by authority of the fund's board of trustees. Market quotations may be considered unreliable if events occur that materially affect the value of securities (particularly securities outside the U.S.) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, 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. 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.

Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations – Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders –Dividends and distributions paid to shareholders are recorded on the ex-dividend date.

Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.

2. Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

The prices of securities held by the fund may decline in response to certain events, including those directly involving the companies whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and commodity price fluctuations. The growth-oriented, equity-type securities generally purchased by the fund may involve large price swings and potential for loss, particularly in the case of smaller capitalization stocks. Because the fund generally invests in securities of issuers in the services and information areas, it may be more susceptible to factors adversely affecting these issuers than funds that do not focus on these areas.

The fund may invest a significant portion of its assets in issuers based outside of the U.S. Investments in securities issued by entities based outside the U.S. may be subject to the risks described on the previous page to a greater extent and may also be affected by currency controls; different accounting, auditing, financial reporting, and legal standards and practices in some countries; expropriation; changes in tax policy; greater market volatility; differing securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payment of dividends. These risks may be heightened in connection with investments in developing countries. Investments in securities issued by entities domiciled in the United States may also be subject to many of these risks.

3. 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 May 31, 2009, 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 2005, by state tax authorities for tax years before 2003 and by tax authorities outside the U.S. for tax years before 2004.

Non-U.S. taxation – Dividend and interest income is recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing 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; and net capital losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of November 30, 2008, the components of distributable earnings on a tax basis were as follows:

(dollars in thousands)
Undistributed ordinary income	$	71,430
Post-October currency loss deferrals (realized during the period November 1, 2008, through November 30, 2008)*		(785	)
Capital loss carryforward expiring 2016†		(126,200	)
Post-October capital loss deferrals (realized during the period November 1, 2008, through November 30, 2008)*		(150,691	)
* These deferrals are considered incurred in the subsequent year.
† 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.

As of May 31, 2009, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	$	669,226
Gross unrealized depreciation on investment securities		(953,965	)
Net unrealized depreciation on investment securities		(284,739	)
Cost of investment securities		6,169,372

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

	Six months ended May 31, 2009						Year ended November 30, 2008
Share class	Ordinary  income		Long-term capital gains		Total distributions paid		Ordinary income		Long-term capital gains		Total distributions paid
Class A	$	63,512		-	$	63,512	$	62,674	$	655,990	$	718,664
Class B		172		-		172		314		19,110		19,424
Class C		496		-		496		512		17,933		18,445
Class F-1		791		-		791		4,219		41,040		45,259
Class F-2*		49		-		49		-		-		-
Class 529-A		1,067		-		1,067		823		8,748		9,571
Class 529-B		33		-		33		13		1,391		1,404
Class 529-C		89		-		89		58		3,026		3,084
Class 529-E		43		-		43		30		473		503
Class 529-F-1		50		-		50		33		287		320
Class R-1		43		-		43		40		1,236		1,276
Class R-2		260		-		260		174		9,238		9,412
Class R-3		879		-		879		648		9,752		10,400
Class R-4		813		-		813		592		5,844		6,436
Class R-5		3,238		-		3,238		1,863		14,563		16,426
Class R-6†		-		-		-		-		-		-
Total	$	71,535		-	$	71,535	$	71,993	$	788,631	$	860,624
*Class F-2 was offered beginning August 1, 2008.
†Class R-6 was offered beginning May 1, 2009.

4. Fees and transactions with related parties

Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company® ("AFS"), the fund’s transfer agent, and American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares.

Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.580% on the first $500 million of daily net assets and decreasing to 0.345% on such assets in excess of $27 billion. CRMC waived a portion of its investment advisory services fee commencing on September 1, 2004, and terminating on December 31, 2008. During the six months ended May 31, 2009, total investment advisory services fees waived by CRMC were $182,000. As a result, the fee shown on the accompanying financial statements of $10,665,000, which was equivalent to an annualized rate of 0.425%, was reduced to $10,483,000, or 0.417% of average daily net assets.

Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:

Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

Share class	Currently approved limits	Plan limits
Class A	0.25%	0.25%
Class 529-A	0.25	0.50
Classes B and 529-B	1.00	1.00
Classes C, 529-C and R-1	1.00	1.00
Class R-2	0.75	1.00
Classes 529-E and R-3	0.50	0.75
Classes F-1, 529-F-1 and R-4	0.25	0.50

Transfer agent services –The fund hasa transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.

Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Classes A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. Each 529 share class is subject to an additional administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan.The quarterly fee is based on a declining series of annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described above for the six months ended May 31, 2009, were as follows (dollars in thousands):

Share class	Distribution services	Transfer agent services	Administrative services
			CRMC administrative services	Transfer agent services	Commonwealth of Virginia administrative services
Class A	$4,764	$5,321	Not applicable	Not applicable	Not applicable
Class B	476	123	Not applicable	Not applicable	Not applicable
Class C	570	Included in administrative services	$86	$26	Not applicable
Class F-1	131		81	28	Not applicable
Class F-2	Not applicable		2	- †	Not applicable
Class 529-A	71		52	13	$36
Class 529-B	50		8	3	5
Class 529-C	116		17	7	12
Class 529-E	10		3	1	2
Class 529-F-1	-		2	1	1
Class R-1	48		6	4	Not applicable
Class R-2	271		54	180	Not applicable
Class R-3	201		61	49	Not applicable
Class R-4	67		40	4	Not applicable
Class R-5	Not applicable		78	1	Not applicable
Class R-6*	Not applicable		4	-†	Not applicable
Total	$6,775	$5,444	$494	$317	$56

*Class R-6 was offered beginning May 1, 2009.

†Amount less than one thousand.

Trustees’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, trustees who are unaffiliated with CRMCmay 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 $311,000, shown on the accompanying financial statements, includes $271,000 in current fees (either paid in cash or deferred) and a net increase of $40,000 in the value of the deferred amounts.

5. Disclosure of fair value measurements

The fund classifies its assets and liabilities into three levels based on the method used to value the assets or liabilities as required by the Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements. 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. Level 3 values are based on significant unobservable inputs that reflect the fund’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 generally high-quality and liquid; however, they 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 May 31, 2009 (dollars in thousands):

Investment securities
Level 1 – Quoted prices	$	3,655,578
Level 2 – Other significant observable inputs		2,222,121	*
Level 3 – Significant unobservable inputs		6,934
Total	$	5,884,633

*Includes certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading; therefore, $1,672,472,000 of investment securities were classified as Level 2 instead of Level 1.

The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions during the six months ended May 31, 2009 (dollars in thousands):

Level 3 investment securities
Beginning value at 12/1/2008	$	6,593
Net purchases		33,750
Net unrealized appreciation†		341
Net transfers out of Level 3		(33,750	)
Ending value at 5/31/2009	$	6,934

Net unrealized appreciation during the period on Level 3 investment securities held at 5/31/2009† $ 341

†Net unrealized appreciation is included in the related amounts on investments in the statement of operations.

6. Capital share transactions

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

Share class	Sales(1)				Reinvestments of dividends and distributions				Repurchases(1)						Net (decrease)  increase
	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Six months ended May 31, 2009
Class A	$	339,313		21,326	$	60,576		4,001	$	(579,282	)		(38,051	)	$	(179,393	)		(12,724	)
Class B		8,699		575		167		11		(21,559	)		(1,462	)		(12,693	)		(876	)
Class C		22,645		1,489		478		33		(22,520	)		(1,575	)		603			(53	)
Class F-1		26,473		1,646		688		45		(113,656	)		(7,576	)		(86,495	)		(5,885	)
Class F-2		3,844		239		39		3		(1,876	)		(124	)		2,007			118
Class 529-A		7,588		484		1,067		71		(4,729	)		(316	)		3,926			239
Class 529-B		535		36		33		2		(486	)		(32	)		82			6
Class 529-C		2,682		175		89		6		(2,222	)		(150	)		549			31
Class 529-E		622		40		43		3		(464	)		(31	)		201			12
Class 529-F-1		908		56		49		3		(408	)		(26	)		549			33
Class R-1		1,837		120		43		3		(1,884	)		(127	)		(4	)		(4	)
Class R-2		16,181		1,068		260		17		(10,901	)		(734	)		5,540			351
Class R-3		17,141		1,095		879		58		(12,634	)		(838	)		5,386			315
Class R-4		14,869		958		813		54		(9,537	)		(625	)		6,145			387
Class R-5		61,091		3,689		3,166		209		(107,441	)		(6,326	)		(43,184	)		(2,428	)
Class R-6(2)		97,878		5,682		-		-		(1,290	)		(72	)		96,588			5,610
Total net increase
(decrease)	$	622,306		38,678	$	68,390		4,519	$	(890,889	)		(58,065	)	$	(200,193	)		(14,868	)
Year ended November 30, 2008
Class A	$	689,706		30,637	$	686,864		24,977	$	(1,220,250	)		(56,281	)	$	156,320			(667	)
Class B		17,569		800		18,982		719		(58,213	)		(2,732	)		(21,662	)		(1,213	)
Class C		51,443		2,330		17,883		683		(54,142	)		(2,632	)		15,184			381
Class F-1		163,220		7,046		41,162		1,508		(261,119	)		(13,280	)		(56,737	)		(4,726	)
Class F-2(3)		4,160		221		-		-		(1,227	)		(63	)		2,933			158
Class 529-A		22,890		975		9,570		349		(9,740	)		(451	)		22,720			873
Class 529-B		2,087		92		1,404		52		(1,504	)		(70	)		1,987			74
Class 529-C		9,485		413		3,084		116		(4,628	)		(219	)		7,941			310
Class 529-E		1,335		59		502		18		(591	)		(26	)		1,246			51
Class 529-F-1		1,701		72		320		12		(569	)		(25	)		1,452			59
Class R-1		8,237		348		1,224		46		(5,360	)		(240	)		4,101			154
Class R-2		38,015		1,693		9,407		350		(27,802	)		(1,288	)		19,620			755
Class R-3		63,270		2,693		10,385		382		(46,003	)		(2,033	)		27,652			1,042
Class R-4		39,363		1,722		6,408		234		(25,273	)		(1,139	)		20,498			817
Class R-5		120,322		5,293		16,352		593		(35,956	)		(1,606	)		100,718			4,280
Total net increase
(decrease)	$	1,232,803		54,394	$	823,547		30,039	$	(1,752,377	)		(82,085	)	$	303,973			2,348
1 Includes exchanges between share classes of the fund.
2Class R-6 was offered beginning May 1, 2009.
3Class F-2 was offered beginning August 1, 2008.

7. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $1,154,912,000 and $1,172,033,000, respectively, during the six months ended May 31, 2009.

Financial highlights(1)

				Income (loss) from investment operations(2)									Dividends and distributions
		Net asset value, beginning of period		Net investment income (loss)			Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return(3)(4)				Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers(4)			Ratio of net income (loss) to average net assets(4)
Class A:	Six months ended 5/31/2009(5)	$	15.22	$	.08		$	3.28		$	3.36		$	(.23	)	$	-		$	(.23	)	$	18.35		22.40	%		$	4,875		.98	%(6)		.98	%(6)		1.04	%(6)
	Year ended 11/30/2008		30.09		.29			(12.57	)		(12.28	)		(.23	)		(2.36	)		(2.59	)		15.22		(44.67	)			4,237		.83			.79			1.24
	Year ended 11/30/2007		26.41		.25			3.62			3.87			(.19	)		-			(.19	)		30.09		14.75				8,394		.80			.76			.87
	Year ended 11/30/2006		22.98		.20			3.38			3.58			(.15	)		-			(.15	)		26.41		15.65				7,654		.82			.78			.83
	Year ended 11/30/2005		20.27		.15			2.63			2.78			(.07	)		-			(.07	)		22.98		13.79				7,061		.83			.79			.73
	Year ended 11/30/2004		18.11		.06			2.11			2.17			(.01	)		-			(.01	)		20.27		12.00				6,938		.84			.84			.32
Class B:	Six months ended 5/31/2009(5)		14.50		.02			3.16			3.18			(.03	)		-			(.03	)		17.65		21.94				106		1.76	(6)		1.75	(6)		.25	(6)
	Year ended 11/30/2008		28.80		.10			(12.00	)		(11.90	)		(.04	)		(2.36	)		(2.40	)		14.50		(45.08	)			100		1.60			1.56			.47
	Year ended 11/30/2007		25.30		.03			3.48			3.51			(.01	)		-			(.01	)		28.80		13.89				234		1.56			1.52			.11
	Year ended 11/30/2006		22.05		.01			3.24			3.25			-			-			-			25.30		14.74				207		1.59			1.55			.06
	Year ended 11/30/2005		19.52		(.01	)		2.54			2.53			-			-			-			22.05		12.96				185		1.60			1.57			(.05	)
	Year ended 11/30/2004		17.57		(.08	)		2.03			1.95			-			-			-			19.52		11.10				172		1.62			1.62			(.45	)
Class C:	Six months ended 5/31/2009(5)		14.39		.02			3.13			3.15			(.06	)		-			(.06	)		17.48		21.99				137		1.69	6)		1.69	(6)		.33	(6)
	Year ended 11/30/2008		28.63		.10			(11.91	)		(11.81	)		(.07	)		(2.36	)		(2.43	)		14.39		(45.09	)			113		1.62			1.58			.46
	Year ended 11/30/2007		25.18		.02			3.46			3.48			(.03	)		-			(.03	)		28.63		13.84				215		1.61			1.57			.06
	Year ended 11/30/2006		21.96	_ (7)				3.23			3.23			(.01	)		-			(.01	)		25.18		14.70				136		1.64			1.60			.01
	Year ended 11/30/2005		19.46		(.02	)		2.52			2.50			-			-			-			21.96		12.85				96		1.65			1.61			(.09	)
	Year ended 11/30/2004		17.52		(.09	)		2.03			1.94			-			-			-			19.46		11.07				76		1.66			1.65			(.47	)
Class F-1:	Six months ended 5/31/2009(5)		15.11		.08			3.29			3.37			(.10	)		-			(.10	)		18.38		22.47				121		.93	(6)		.92	(6)		1.06	(6)
	Year ended 11/30/2008		29.91		.28			(12.48	)		(12.20	)		(.24	)		(2.36	)		(2.60	)		15.11		(44.68	)			188		.85			.81			1.22
	Year ended 11/30/2007		26.28		.25			3.60			3.85			(.22	)		-			(.22	)		29.91		14.76				515		.80			.76			.88
	Year ended 11/30/2006		22.88		.19			3.37			3.56			(.16	)		-			(.16	)		26.28		15.63				248		.83			.79			.81
	Year ended 11/30/2005		20.19		.15			2.62			2.77			(.08	)		-			(.08	)		22.88		13.77				114		.86			.83			.70
	Year ended 11/30/2004		18.07		.06			2.09			2.15			(.03	)		-			(.03	)		20.19		11.89				72		.89			.88			.32
Class F-2:	Six months ended 5/31/2009(5)		15.24		.12			3.27			3.39			(.26	)		-			(.26	)		18.37		22.57				5		.64	(6)		.63	(6)		1.49	(6)
	Period from 8/1/2008 to 11/30/2008		22.62		.07			(7.45	)		(7.38	)		-			-			-			15.24		(32.63	)			2		.21			.19			.37
Class 529-A:	Six months ended 5/31/2009(5)		15.16		.08			3.27			3.35			(.23	)		-			(.23	)		18.28		22.46				87		.98	(6)		.98	(6)		1.06	(6)
	Year ended 11/30/2008		29.98		.28			(12.52	)		(12.24	)		(.22	)		(2.36	)		(2.58	)		15.16		(44.68	)			69		.87			.83			1.22
	Year ended 11/30/2007		26.34		.23			3.61			3.84			(.20	)		-			(.20	)		29.98		14.66				109		.86			.82			.81
	Year ended 11/30/2006		22.93		.19			3.37			3.56			(.15	)		-			(.15	)		26.34		15.61				75		.85			.81			.80
	Year ended 11/30/2005		20.24		.14			2.63			2.77			(.08	)		-			(.08	)		22.93		13.74				51		.87			.84			.69
	Year ended 11/30/2004		18.11		.06			2.10			2.16			(.03	)		-			(.03	)		20.24		11.96				35		.87			.86			.33
Class 529-B:	Six months ended 5/31/2009(5)		14.63		.02			3.17			3.19			(.05	)		-			(.05	)		17.77		21.88				12		1.81	(6)		1.81	(6)		.22	(6)
	Year ended 11/30/2008		29.05		.08			(12.12	)		(12.04	)		(.02	)		(2.36	)		(2.38	)		14.63		(45.14	)			10		1.71			1.66			.38
	Year ended 11/30/2007		25.54		(.01	)		3.52			3.51		_ (7)				-		_ (7)				29.05		13.75				17		1.69			1.65			(.02	)
	Year ended 11/30/2006		22.28		(.02	)		3.28			3.26			-			-			-			25.54		14.63				13		1.72			1.68			(.07	)
	Year ended 11/30/2005		19.76		(.04	)		2.56			2.52			-			-			-			22.28		12.75				10		1.76			1.72			(.20	)
	Year ended 11/30/2004		17.82		(.11	)		2.05			1.94			-			-			-			19.76		10.89				7		1.78			1.78			(.58	)
Class 529-C:	Six months ended 5/31/2009(5)		14.62		.02			3.17			3.19			(.06	)		-			(.06	)		17.75		21.97				28		1.80	(6)		1.79	(6)		.24	(6)
	Year ended 11/30/2008		29.04		.09			(12.10	)		(12.01	)		(.05	)		(2.36	)		(2.41	)		14.62		(45.15	)			23		1.70			1.66			.39
	Year ended 11/30/2007		25.55	_ (7)				3.51			3.51			(.02	)		-			(.02	)		29.04		13.77				36		1.68			1.64			(.02	)
	Year ended 11/30/2006		22.30		(.01	)		3.26			3.25			-			-			-			25.55		14.57				24		1.71			1.67			(.06	)
	Year ended 11/30/2005		19.77		(.04	)		2.57			2.53			-			-			-			22.30		12.80				15		1.75			1.71			(.18	)
	Year ended 11/30/2004		17.83		(.11	)		2.05			1.94			-			-			-			19.77		10.88				10		1.77			1.76			(.57	)
Class 529-E:	Six months ended 5/31/2009(5)	$	15.01	$	.06		$	3.23		$	3.29		$	(.17	)		-		$	(.17	)	$	18.13		22.25	%		$	5		1.29	%(6)		1.28	%(6)		.75	%(6)
	Year ended 11/30/2008		29.71		.20			(12.39	)		(12.19	)		(.15	)		(2.36	)		(2.51	)		15.01		(44.86	)			4		1.19			1.15			.90
	Year ended 11/30/2007		26.11		.14			3.58			3.72			(.12	)		-			(.12	)		29.71		14.32				6		1.17			1.13			.50
	Year ended 11/30/2006		22.75		.11			3.34			3.45			(.09	)		-			(.09	)		26.11		15.22				4		1.18			1.14			.47
	Year ended 11/30/2005		20.09		.07			2.61			2.68			(.02	)		-			(.02	)		22.75		13.37				3		1.22			1.18			.35
	Year ended 11/30/2004		18.01		(.01	)		2.09			2.08			-			-			-			20.09		11.55				2		1.23			1.23			(.03	)
Class 529-F-1:	Six months ended 5/31/2009(5)		15.17		.10			3.26			3.36			(.28	)		-			(.28	)		18.25		22.54				4		.79	(6)		.78	(6)		1.30	(6)
	Year ended 11/30/2008		30.00		.32			(12.52	)		(12.20	)		(.27	)		(2.36	)		(2.63	)		15.17		(44.58	)			3		.69			.65			1.41
	Year ended 11/30/2007		26.34		.28			3.62			3.90			(.24	)		-			(.24	)		30.00		14.92				3		.67			.63			.99
	Year ended 11/30/2006		22.92		.23			3.36			3.59			(.17	)		-			(.17	)		26.34		15.77				2		.68			.64			.97
	Year ended 11/30/2005		20.20		.16			2.63			2.79			(.07	)		-			(.07	)		22.92		13.84				1		.81			.77			.76
	Year ended 11/30/2004		18.09		.04			2.09			2.13			(.02	)		-			(.02	)		20.20		11.79				1		.98			.98			.23
																											��
Class R-1:	Six months ended 5/31/2009(5)		14.71		.03			3.19			3.22			(.07	)		-			(.07	)		17.86		21.97				12		1.69	(6)		1.68	(6)		.34	(6)
	Year ended 11/30/2008		29.22		.11			(12.18	)		(12.07	)		(.08	)		(2.36	)		(2.44	)		14.71		(45.08	)			10		1.61			1.57			.50
	Year ended 11/30/2007		25.74		.01			3.54			3.55			(.07	)		-			(.07	)		29.22		13.84				15		1.61			1.57			.04
	Year ended 11/30/2006		22.47	_ (7)				3.30			3.30			(.03	)		-			(.03	)		25.74		14.72				8		1.64			1.58			.01
	Year ended 11/30/2005		19.90		(.02	)		2.59			2.57			-			-			-			22.47		12.91				4		1.70			1.61			(.09	)
	Year ended 11/30/2004		17.92		(.08	)		2.06			1.98			-			-			-			19.90		11.05				2		1.76			1.65			(.44	)
Class R-2:	Six months ended 5/31/2009(5)		14.76		.01			3.20			3.21			(.06	)		-			(.06	)		17.91		21.80				89		1.89	6)		1.88	(6)		.16	(6)
	Year ended 11/30/2008		29.30		.08			(12.22	)		(12.14	)		(.04	)		(2.36	)		(2.40	)		14.76		(45.13	)			68		1.72			1.68			.37
	Year ended 11/30/2007		25.77		.02			3.54			3.56			(.03	)		-			(.03	)		29.30		13.83				113		1.67			1.56			.07
	Year ended 11/30/2006		22.47		.01			3.30			3.31			(.01	)		-			(.01	)		25.77		14.74				85		1.81			1.58			.04
	Year ended 11/30/2005		19.90		(.01	)		2.58			2.57			-			-			-			22.47		12.91				61		1.91			1.58			(.05	)
	Year ended 11/30/2004		17.92		(.08	)		2.06			1.98			-			-			-			19.90		11.05				44		2.03			1.61			(.40	)
Class R-3:	Six months ended 5/31/2009(5)		15.01		.06			3.24			3.30			(.17	)		-			(.17	)		18.14		22.22				99		1.26	(6)		1.25	(6)		.79	(6)
	Year ended 11/30/2008		29.72		.21			(12.40	)		(12.19	)		(.16	)		(2.36	)		(2.52	)		15.01		(44.83	)			78		1.17			1.13			.93
	Year ended 11/30/2007		26.11		.14			3.59			3.73			(.12	)		-			(.12	)		29.72		14.34				123		1.17			1.13			.50
	Year ended 11/30/2006		22.75		.10			3.34			3.44			(.08	)		-			(.08	)		26.11		15.18				76		1.22			1.18			.44
	Year ended 11/30/2005		20.10		.07			2.61			2.68			(.03	)		-			(.03	)		22.75		13.35				50		1.24			1.19			.33
	Year ended 11/30/2004		18.03	_ (7)				2.07			2.07			-			-			-			20.10		11.48				35		1.26			1.23			(.02	)
Class R-4:	Six months ended 5/31/2009(5)		15.17		.09			3.26			3.35			(.24	)		-			(.24	)		18.28		22.46				67		.90	(6)		.90	(6)		1.15	(6)
	Year ended 11/30/2008		30.01		.28			(12.52	)		(12.24	)		(.24	)		(2.36	)		(2.60	)		15.17		(44.67	)			49		.84			.80			1.25
	Year ended 11/30/2007		26.34		.24			3.62			3.86			(.19	)		-			(.19	)		30.01		14.74				73		.83			.79			.83
	Year ended 11/30/2006		22.94		.19			3.37			3.56			(.16	)		-			(.16	)		26.34		15.61				40		.86			.82			.79
	Year ended 11/30/2005		20.25		.15			2.63			2.78			(.09	)		-			(.09	)		22.94		13.76				31		.86			.82			.70
	Year ended 11/30/2004		18.12		.07			2.09			2.16			(.03	)		-			(.03	)		20.25		11.92				17		.86			.85			.34
Class R-5:	Six months ended 5/31/2009(5)		15.31		.10			3.31			3.41			(.31	)		-			(.31	)		18.41		22.72				144		.59	(6)		.59	(6)		1.25	(6)
	Year ended 11/30/2008		30.24		.36			(12.63	)		(12.27	)		(.30	)		(2.36	)		(2.66	)		15.31		(44.50	)			157		.53			.49			1.58
	Year ended 11/30/2007		26.54		.32			3.64			3.96			(.26	)		-			(.26	)		30.24		15.06				181		.54			.50			1.12
	Year ended 11/30/2006		23.10		.27			3.38			3.65			(.21	)		-			(.21	)		26.54		15.94				109		.55			.51			1.10
	Year ended 11/30/2005		20.37		.21			2.65			2.86			(.13	)		-			(.13	)		23.10		14.14				76		.55			.52			1.02
	Year ended 11/30/2004		18.21		.12			2.10			2.22			(.06	)		-			(.06	)		20.37		12.26				51		.55			.55			.62
Class R-6:	Period from 5/1/2009 to 5/31/2009(5)		17.22		.05			1.09			1.14			-			-			-			18.36		6.62				103		.04			.04			.30

	Six months ended May 31,			Year ended November 30
	2009(5)			2008			2007			2006			2005			2004
Portfolio turnover rate for all classes of shares		25	%		52	%		40	%		41	%		32	%		35	%

(1)Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.

(2)Based on average shares outstanding.

(3)Total returns exclude any applicable sales charges, including contingent deferred sales charges.

(4)This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes.

(5)Unaudited.

(6)Annualized.

(7)Amount less than $.01.

See Notes to Financial Statements

Expense example

                                                                                                                                        0;                        unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2008, through May 31, 2009).

Actual expenses:

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

Hypothetical example for comparison purposes:

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

Notes:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1shareholders 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.

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

	Beginning account value 12/1/2008		Ending account value 5/31/2009		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,224.04	$	5.43		.98	%
Class A -- assumed 5% return		1,000.00		1,020.04		4.94		.98
Class B -- actual return		1,000.00		1,219.35		9.68		1.75
Class B -- assumed 5% return		1,000.00		1,016.21		8.80		1.75
Class C -- actual return		1,000.00		1,219.91		9.35		1.69
Class C -- assumed 5% return		1,000.00		1,016.50		8.50		1.69
Class F-1 -- actual return		1,000.00		1,224.71		5.10		.92
Class F-1 -- assumed 5% return		1,000.00		1,020.34		4.63		.92
Class F-2 -- actual return		1,000.00		1,225.74		3.50		.63
Class F-2 -- assumed 5% return		1,000.00		1,021.79		3.18		.63
Class 529-A -- actual return		1,000.00		1,224.58		5.44		.98
Class 529-A -- assumed 5% return		1,000.00		1,020.04		4.94		.98
Class 529-B -- actual return		1,000.00		1,218.76		10.01		1.81
Class 529-B -- assumed 5% return		1,000.00		1,015.91		9.10		1.81
Class 529-C -- actual return		1,000.00		1,219.66		9.91		1.79
Class 529-C -- assumed 5% return		1,000.00		1,016.01		9.00		1.79
Class 529-E -- actual return		1,000.00		1,222.51		7.09		1.28
Class 529-E -- assumed 5% return		1,000.00		1,018.55		6.44		1.28
Class 529-F-1 -- actual return		1,000.00		1,225.43		4.33		.78
Class 529-F-1 -- assumed 5% return		1,000.00		1,021.04		3.93		.78
Class R-1 -- actual return		1,000.00		1,219.68		9.30		1.68
Class R-1 -- assumed 5% return		1,000.00		1,016.55		8.45		1.68
Class R-2 -- actual return		1,000.00		1,217.97		10.40		1.88
Class R-2 -- assumed 5% return		1,000.00		1,015.56		9.45		1.88
Class R-3 -- actual return		1,000.00		1,222.16		6.93		1.25
Class R-3 -- assumed 5% return		1,000.00		1,018.70		6.29		1.25
Class R-4 -- actual return		1,000.00		1,224.58		4.99		.90
Class R-4 -- assumed 5% return		1,000.00		1,020.44		4.53		.90
Class R-5 -- actual return		1,000.00		1,227.17		3.28		.59
Class R-5 -- assumed 5% return		1,000.00		1,021.99		2.97		.59
Class R-6 -- actual return †		1,000.00		1,066.20		.45		.53
Class R-6 -- assumed 5% return †		1,000.00		1,022.29		2.67		.53

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

† The period for the “annualized expense ratio” and “actual return” line is based on the number of days from May 1, 2009 (the initial sale of the share class), through May 31, 2009, and accordingly, is not representative of a full period. The “assumed 5% return” line is based on 182 days.

Other share class results

unaudited

Classes B, C, F and 529

Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

Average annual total returns for periods ended June 30, 2009 (the most recent calendar quarter-end):
	1 year			5 years			Life of class
Class B shares1 — first sold 3/15/00
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares are
sold within six years of purchase		–22.66	%		0.36	%		–3.60	%
Not reflecting CDSC		–18.59			0.74			–3.60
Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only if shares
are sold within one year of purchase		–19.39			0.70			–0.22
Not reflecting CDSC		–18.58			0.70			–0.22
Class F-1 shares2 — first sold 3/15/01
Not reflecting annual asset-based fee charged by
sponsoring firm		–17.99			1.49			0.58
Class F-2 shares2 — first sold 8/1/08
Not reflecting annual asset-based fee charged by
sponsoring firm		—			—			–16.47	3
Class 529-A shares4 — first sold 2/15/02
Reflecting 5.75% maximum sales charge		–22.71			0.28			1.92
Not reflecting maximum sales charge		–17.98			1.47			2.75
Class 529-B shares1,4 — first sold 2/19/02
Reflecting applicable CDSC, maximum of 5%, payable only
if shares are sold within six years of purchase		–22.74			0.24			2.16
Not reflecting CDSC		–18.69			0.61			2.16
Class 529-C shares4 — first sold 2/21/02
Reflecting CDSC, maximum of 1%, payable only if shares
are sold within one year of purchase		–19.48			0.61			2.35
Not reflecting CDSC		–18.67			0.61			2.35
Class 529-E shares2,4 — first sold 3/15/02		–18.23			1.15			1.55
Class 529-F-1 shares2,4 — first sold 10/11/02
Not reflecting annual asset-based fee charged by
sponsoring firm		–17.83			1.61			8.31

1These shares are no longer available for purchase.

2These shares are sold without any initial or contingent deferred sales charge.

3Results are cumulative total returns; they are not annualized.

4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 22 to 25 for details.

For information regarding the differences among the various share classes, please refer to the fund’s prospectus.

Offices

Offices of the fund and of the investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

6455 Irvine Center Drive

Irvine, CA 92618

Transfer agent for shareholder accounts

American Funds Service Company

(Please 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

State Street Bank and Trust Company

One Lincoln Street

Boston, MA 02111

Counsel

K&L Gates LLP

55 Second Street, Suite 1700

San Francisco, CA 94105

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s 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 800/421-0180 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 May 31, 2009, portfolio of The New Economy Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

The New Economy 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 The New Economy Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after September 30, 2009, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

[logo - - American Funds®]

The right choice for the long term®

What makes American Funds different?

For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•A long-term, value-oriented approach

We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.

•An extensive global research effort

Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.

•The multiple portfolio counselor system

Our unique approach to portfolio management, developed 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

•Experienced investment professionals

American Funds portfolio counselors have an average of 25 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.

•A commitment to low management fees

The American Funds provide exceptional value for shareholders, with management fees that are among the lowest in the mutual fund industry.

American Funds span a range of investment objectives

•Growth funds

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

>The New Economy Fund®

New Perspective Fund®

New World Fund®

SMALLCAP World Fund®

•Growth-and-income funds

American Mutual Fund®

Capital World Growth and Income FundSM

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

•Equity-income funds

Capital Income Builder®

The Income Fund of America®

•Balanced fund

American Balanced Fund®

•Bond funds

American High-Income TrustSM

The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

•Tax-exempt bond funds

American High-Income Municipal Bond Fund®

Limited Term Tax-Exempt Bond Fund of AmericaSM

The Tax-Exempt Bond Fund of America®

   State-specific tax-exempt funds

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•Money market funds

American Funds Money Market Fund SM

The Tax-Exempt Money Fund of AmericaSM

•American Funds Target Date Retirement Series®

The Capital Group Companies

American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust

Lit. No. MFGESR-914-0709P

Litho in USA BBC/B/6276-S20705

Printed on paper containing 10% post-consumer waste

Printed with inks containing soy and/or vegetable oil

ITEM 2 – Code of Ethics

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

ITEM 3 – Audit Committee Financial Expert

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

ITEM 4 – Principal Accountant Fees and Services

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

ITEM 5 – Audit Committee of Listed Registrants

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

ITEM 6 – Schedule of Investments

[logo – American Funds®]

The New Economy Fund®

Investment portfolio

May 31, 2009 

unaudited

Common stocks —90.63%	Shares			Value (000)
SOFTWARE & SERVICES — 17.86%
Google Inc., Class A1		434,300		$	181,203
Tencent Holdings Ltd.2		10,380,000			116,269
Yahoo! Inc.1		6,295,000			99,713
Oracle Corp.		3,745,000			73,365
SAP AG2		1,690,000			72,647
Microsoft Corp.		3,475,000			72,593
McAfee, Inc.1		1,830,000			71,791
Global Payments Inc.		1,680,000			60,413
NetEase.com, Inc. (ADR)1		1,563,000			54,048
Visa Inc., Class A		750,000			50,782
United Internet AG1,2		3,053,000			39,197
MasterCard Inc., Class A		200,000			35,266
Paychex, Inc.		1,125,000			30,791
Autodesk, Inc.1		1,200,000			25,752
Wirecard AG1,2		2,606,250			23,690
eBay Inc.1		1,300,000			22,906
Automatic Data Processing, Inc.		265,000			10,073
Verifone Holdings, Inc.1		865,000			6,600
Moneysupermarket.com Group PLC2		6,985,000			5,758
ProAct Holdings, LLC1,2,3		3,500,000			—
					1,052,857
TECHNOLOGY HARDWARE & EQUIPMENT — 9.24%
Apple Inc.1		1,323,000			179,677
Cisco Systems, Inc.1		3,629,200			67,140
Delta Electronics, Inc.2		25,781,520			60,028
QUALCOMM Inc.		1,035,000			45,116
Corning Inc.		2,100,000			30,870
Logitech International SA1		2,000,000			28,060
Avid Technology, Inc.1		1,800,000			25,632
Nokia Corp.2		1,530,000			23,399
Trimble Navigation Ltd.1		1,200,000			23,016
Canon, Inc.2		635,000			21,031
EMC Corp.1		1,200,000			14,100
VTech Holdings Ltd.2		2,466,000			12,910
Acer Inc.2		3,062,000			5,582
Motorola, Inc.		700,000			4,242
Flextronics International Ltd.1		981,534			3,887
					544,690
BANKS — 9.06%
Banco Bradesco SA, preferred nominative		6,470,001			99,716
Banco Santander, SA2		6,300,053			67,822
Société Générale2		1,010,000			58,903
Bank of China Ltd., Class H2		118,855,000			53,519
Industrial and Commercial Bank of China Ltd., Class H2		62,000,000			39,182
ICICI Bank Ltd.2		2,310,000			36,365
HSBC Holdings PLC (Hong Kong)2		2,442,218			21,956
HSBC Holdings PLC (United Kingdom)2		1,353,500			12,345
Busan Bank2		5,160,000			32,254
Itaú Unibanco Banco Múltiplo SA (ADR)		1,870,266			30,018
BOC Hong Kong (Holdings) Ltd.2		16,025,000			25,618
M&T Bank Corp.		430,000			21,629
Wells Fargo & Co.		756,500			19,291
Banco Bilbao Vizcaya Argentaria, SA2		640,161			7,884
Grupo Financiero Banorte, SAB de CV, Series O		2,529,699			5,996
Shinhan Financial Group Co., Ltd.1,2		51,140			1,301
					533,799
TELECOMMUNICATION SERVICES — 6.05%
Telephone and Data Systems, Inc., special common shares		931,100			27,170
Telephone and Data Systems, Inc.		781,100			23,675
Qwest Communications International Inc.		8,159,000			35,573
América Móvil, SAB de CV, Series L (ADR)		910,000			34,880
MTN Group Ltd.2		2,300,000			33,682
China Mobile Ltd. (ADR)		300,000			14,763
China Mobile Ltd.2		1,500,000			14,697
Koninklijke KPN NV2		1,800,000			23,645
Vodafone Group PLC2		11,560,000			21,727
SOFTBANK CORP.2		1,035,000			18,868
Total Access Communication PCL2		17,387,700			13,191
Total Access Communication PCL (THB denominated)2		4,900,000			4,014
Verizon Communications Inc.		585,000			17,117
Philippine Long Distance Telephone Co.2		326,210			15,428
tw telecom inc.1		1,130,000			13,402
Singapore Telecommunications Ltd.2		6,313,000			13,206
Sprint Nextel Corp., Series 11		1,980,000			10,197
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, Class B2		13,615,500			9,901
United States Cellular Corp.1		139,500			5,794
Millicom International Cellular SA1		90,300			5,481
					356,411
DIVERSIFIED FINANCIALS — 5.91%
Deutsche Bank AG2		1,458,800			97,996
JPMorgan Chase & Co.		1,925,000			71,032
Bank of New York Mellon Corp.		1,920,000			53,338
Credit Suisse Group AG2		1,100,000			49,185
American Express Co.		1,200,000			29,820
State Street Corp.		564,800			26,235
Capital One Financial Corp.		541,700			13,239
Banco ABC Brasil SA, preferred nominative		2,019,900			7,428
					348,273
HEALTH CARE EQUIPMENT & SERVICES — 5.51%
Inverness Medical Innovations, Inc.1		3,293,000			107,121
Fresenius Kabi Pharmaceuticals Holding, Inc.2		1,000,000			48,181
Hologic, Inc.1		2,275,000			28,824
Aetna Inc.		1,000,000			26,780
NuVasive, Inc.1		703,586			25,414
McKesson Corp.		600,000			24,690
Sirona Dental Systems, Inc.1		905,900			17,819
Varian Medical Systems, Inc.1		453,600			16,221
Masimo Corp.1		311,300			7,453
Medtronic, Inc.		212,000			7,282
St. Jude Medical, Inc.1		150,000			5,853
American Medical Systems Holdings, Inc.1		336,600			5,106
Beckman Coulter, Inc.		75,000			4,065
					324,809
RETAILING — 5.36%
Lowe’s Companies, Inc.		2,683,900			51,021
Best Buy Co., Inc.		1,150,000			40,365
O’Reilly Automotive, Inc.1		1,050,000			37,852
Target Corp.		900,000			35,370
Li & Fung Ltd.2		11,000,000			29,598
Bed Bath & Beyond Inc.1		1,000,000			28,110
Tractor Supply Co.1		600,000			23,028
Staples, Inc.		1,000,000			20,450
Industria de Diseño Textil, SA2		300,000			13,520
Pantaloon Retail (India) Ltd.2		2,000,000			13,243
Williams-Sonoma, Inc.		904,200			11,700
Amazon.com, Inc.1		150,000			11,698
					315,955
TRANSPORTATION — 4.86%
Ryanair Holdings PLC (ADR)1		5,866,300			170,826
Burlington Northern Santa Fe Corp.		542,500			39,299
United Parcel Service, Inc., Class B		757,000			38,713
Union Pacific Corp.		389,000			19,166
Grupo Aeroportuario del Pacífico, SAB de CV, Class B (ADR)		372,700			7,853
Hopewell Highway Infrastructure Ltd.2		7,418,000			4,201
Alaska Air Group, Inc.1		200,000			3,114
US Airways Group, Inc.1		705,000			1,819
Continental Airlines, Inc., Class B1		175,000			1,631
					286,622
PHARMACEUTICALS, BIOTECHNOLOGY & LIFE SCIENCES — 4.62%
Teva Pharmaceutical Industries Ltd. (ADR)		1,645,000			76,262
Vertex Pharmaceuticals Inc.1		1,350,000			40,243
Myriad Genetics, Inc.1		905,000			32,725
Millipore Corp.1		504,000			31,697
Illumina, Inc.1		678,000			24,889
Bayer AG, non-registered shares2		414,000			23,539
Richter Gedeon NYRT2		155,000			22,767
Amgen Inc.1		212,600			10,617
Applera Corp., Celera Corp.1		508,000			3,846
Roche Holding AG2		27,700			3,777
Array BioPharma Inc.1		580,000			1,804
					272,166
MEDIA — 4.17%
News Corp., Class A		4,302,815			42,082
Time Warner Inc.		1,546,666			36,223
British Sky Broadcasting Group PLC2		4,186,000			30,161
Walt Disney Co.		1,150,000			27,853
Scripps Networks Interactive, Inc., Class A		900,000			24,966
Omnicom Group Inc.		800,000			24,400
CTC Media, Inc.1		2,000,000			19,820
Daily Mail and General Trust PLC, Class A, nonvoting2		3,155,000			16,663
Time Warner Cable Inc.		450,214			13,862
Multi Screen Media Private Ltd.1,2,3		79,866			6,934
Next Media Ltd.2		15,662,000			2,613
					245,577
COMMERCIAL & PROFESSIONAL SERVICES — 3.65%
Manpower Inc.		885,000			37,621
Robert Half International Inc.		1,525,000			32,620
Iron Mountain Inc.1		1,000,000			27,250
Downer EDI Ltd.2		6,700,000			25,335
Randstad Holding NV1,2		793,000			24,447
Monster Worldwide, Inc.1		1,800,000			21,024
Cintas Corp.		770,000			17,933
Michael Page International PLC2		4,190,923			17,444
United Stationers Inc.1		314,467			11,261
					214,935
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 2.42%
NVIDIA Corp.1		2,500,000			26,075
Broadcom Corp., Class A1		1,000,000			25,480
Intel Corp.		1,500,000			23,580
Texas Instruments Inc.		750,000			14,550
Linear Technology Corp.		600,000			14,046
Mediatek Incorporation2		1,028,000			12,764
Maxim Integrated Products, Inc.		600,000			9,738
KLA-Tencor Corp.		243,000			6,561
Microchip Technology Inc.		250,963			5,413
Varian Semiconductor Equipment Associates, Inc.1		136,500			3,210
MEMC Electronic Materials, Inc.1		50,000			965
					142,382
CONSUMER SERVICES — 1.41%
Las Vegas Sands Corp.1		3,000,000			29,730
Carnival Corp., units		1,100,000			27,984
Shangri-La Asia Ltd.2		10,000,000			15,587
OPAP SA2		198,710			6,130
Life Time Fitness, Inc.1		195,000			3,604
					83,035
ENERGY — 1.33%
Schlumberger Ltd.		1,152,400			65,952
Baker Hughes Inc.		320,000			12,499
					78,451
CONSUMER DURABLES & APPAREL — 1.30%
GEOX SpA2		4,810,904			38,003
Jumbo SA2		2,234,000			22,311
Burberry Group PLC2		2,515,000			15,685
					75,999
UTILITIES — 1.23%
GDF Suez2		1,056,574			41,592
Tanjong PLC2		7,929,700			30,799
					72,391
CAPITAL GOODS — 0.81%
MSC Industrial Direct Co., Inc., Class A		870,000			31,651
Watsco, Inc.		180,000			8,861
Beacon Roofing Supply, Inc.1		300,000			4,350
PT AKR Corporindo Tbk2		45,000,000			3,219
					48,081
FOOD & STAPLES RETAILING — 0.46%
Costco Wholesale Corp.		560,000			27,171
INSURANCE — 0.43%
China Life Insurance Co. Ltd., Class H2		5,305,000			19,408
AXA SA2		361,809			6,765
					26,173
MATERIALS — 0.19%
Monsanto Co.		137,227			11,273
MISCELLANEOUS — 4.76%
Other common stocks in initial period of acquisition					280,545
Total common stocks (cost: $5,617,574,000)					5,341,595
	Shares or
Convertible securities — 0.90%	principal amount
DIVERSIFIED FINANCIALS — 0.59%
Citigroup Inc., Series D-1, 7.00% noncumulative convertible preferred2		675,000			34,768
TELECOMMUNICATION SERVICES — 0.10%
tw telecom inc. 2.375% convertible debentures 2026	$	6,400,000			5,680
INSURANCE — 0.01%
American International Group, Inc. 8.50% convertible preferred 2011, units		92,163			838
MISCELLANEOUS — 0.20%
Other convertible securities in initial period of acquisition					11,850
Total convertible securities (cost: $62,062,000)					53,136
	Principal amount
Bonds & notes — 0.23%		(000	)
RETAILING — 0.23%
Staples, Inc. 9.75% 2014	$	12,294			13,569
Total bonds & notes (cost: $12,487,000)					13,569
	Principal amount			Value
Short-term securities — 8.08%		(000	)		(000	)
Federal Home Loan Bank 0.21%–0.26% due 6/17–7/1/2009	$	115,900		$	115,882
Fannie Mae 0.22%–0.44% due 6/2–10/13/2009		68,900			68,845
Medtronic Inc. 0.19% due 6/29–7/30/20094		65,200			65,174
General Electric Capital Corp., FDIC insured, 0.26% due 9/25/2009		25,000			24,982
General Electric Capital Corp. 0.18% due 6/1/2009		21,600			21,600
Freddie Mac 0.19%–0.25% due 6/29–10/19/2009		42,000			41,969
U.S. Treasury Bills 0.21% due 6/25/2009		37,000			36,998
Jupiter Securitization Co., 0.25% LLC due 6/3/20094		24,100			24,099
Pfizer Inc 0.22% due 7/13/20094		19,700			19,695
Abbott Laboratories 0.21% due 7/2/20094		19,500			19,496
IBM Corp. 0.24% due 6/8/20094		15,000			14,999
Procter & Gamble International Funding S.C.A. 0.21% due 6/15/20094		9,400			9,399
Bank of America Corp., FDIC insured, 0.30% due 6/26/2009		6,600			6,599
NetJets Inc. 0.22% due 6/26/20094		6,600			6,596
Total short-term securities (cost: $476,354,000)					476,333
Total investment securities (cost: $6,168,477,000)					5,884,633
Other assets less liabilities					9,147
Net assets				$	5,893,780

“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

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

2 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 $1,721,623,000, which represented 29.21% of the net assets of the fund. This amount includes $1,672,472,000 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.

3 Purchased in a transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below.

	Acquisition date(s)	Cost (000)		Value (000)		Percent of net assets
Multi Screen Media Private Ltd.	9/6/2000–4/18/2002	$	31,574	$	6,934		.12	%
ProAct Holdings, LLC	1/4/2005		87		—		—
Total restricted securities		$	31,661	$	6,934		.12	%

4 Purchased in a transaction exempt from registration under 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 $159,458,000, which represented 2.71% of the net assets of the fund.

Key to abbreviations

ADR = American Depositary Receipts

THB = Thai baht

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus, which can be obtained from a financial professional and should be read carefully before investing.

MFGEFP-914-0709O-S21421

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 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 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 committee.

ITEM 11 – Controls and Procedures

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

ITEM 12 – Exhibits

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

SIGNATURES

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

THE NEW ECONOMY FUND

By /s/ Paul F. Roye

Paul F. Roye, Executive Vice President and

Principal Executive Officer

Date: August 7, 2009

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/ Paul F. Roye

Paul F. Roye, Executive Vice President and

Principal Executive Officer

Date: August 7, 2009

By /s/ Neal F. Wellons

Neal F. Wellons, Treasurer and

Principal Financial Officer

Date: August 7, 2009