The New Economy Fund®
Investment portfolio
August 31, 2024unaudited
Common stocks 96.60% Information technology 34.01% | Shares | Value (000) | |
Broadcom, Inc. | 12,877,025 | $2,096,637 | |
Microsoft Corp. | 4,188,641 | 1,747,250 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | 29,230,000 | 872,785 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR) | 3,318,273 | 569,748 | |
NVIDIA Corp. | 8,183,433 | 976,856 | |
SK hynix, Inc. | 5,522,990 | 722,562 | |
Apple, Inc. | 2,473,942 | 566,533 | |
Salesforce, Inc. | 1,990,245 | 503,333 | |
Micron Technology, Inc. | 5,228,320 | 503,174 | |
Insight Enterprises, Inc.1 | 1,284,474 | 278,821 | |
Motorola Solutions, Inc. | 498,886 | 220,528 | |
Shopify, Inc., Class A, subordinate voting shares1 | 2,942,255 | 217,933 | |
ASML Holding NV | 173,921 | 157,300 | |
Arista Networks, Inc.1 | 430,292 | 152,057 | |
SAP SE | 624,448 | 136,196 | |
Sage Group PLC (The) | 9,430,383 | 125,642 | |
Samsung Electronics Co., Ltd. | 2,236,791 | 125,435 | |
MongoDB, Inc., Class A1 | 419,863 | 122,092 | |
NEC Corp. | 1,364,700 | 121,454 | |
MediaTek, Inc. | 3,037,400 | 119,449 | |
ServiceNow, Inc.1 | 137,948 | 117,946 | |
Adobe, Inc.1 | 196,982 | 113,148 | |
Oracle Corp. | 795,780 | 112,436 | |
Accenture PLC, Class A | 316,448 | 108,209 | |
EPAM Systems, Inc.1 | 535,733 | 107,554 | |
Constellation Software, Inc. | 28,394 | 92,719 | |
eMemory Technology, Inc. | 1,071,000 | 89,258 | |
Palo Alto Networks, Inc.1 | 196,648 | 71,328 | |
Synopsys, Inc.1 | 129,661 | 67,369 | |
Seagate Technology Holdings PLC | 552,928 | 55,044 | |
RingCentral, Inc., Class A1 | 1,637,333 | 54,572 | |
Keyence Corp. | 110,100 | 52,990 | |
Renesas Electronics Corp. | 2,989,800 | 52,134 | |
Zeta Global Holdings Corp., Class A1 | 1,900,000 | 50,179 | |
Smartsheet, Inc., Class A1 | 938,469 | 45,797 | |
GitLab, Inc., Class A1 | 942,739 | 44,686 | |
Infineon Technologies AG | 1,175,492 | 42,818 | |
STMicroelectronics NV | 1,248,166 | 40,051 | |
Datadog, Inc., Class A1 | 330,543 | 38,429 | |
Autodesk, Inc.1 | 146,546 | 37,867 | |
Cloudflare, Inc., Class A1 | 451,521 | 37,088 | |
Dell Technologies, Inc., Class C | 299,812 | 34,640 | |
Monday.com, Ltd.1 | 126,117 | 33,533 | |
Procore Technologies, Inc.1 | 537,815 | 31,876 | |
HubSpot, Inc.1 | 49,432 | 24,670 | |
Globant SA1 | 119,299 | 24,127 | |
The New Economy Fund — Page 1 of 9
unaudited
Common stocks (continued) Information technology (continued) | Shares | Value (000) | |
ULVAC, Inc. | 375,200 | $21,167 | |
OBIC Co., Ltd. | 98,500 | 17,079 | |
Wolfspeed, Inc.1,2 | 1,737,865 | 16,944 | |
Elastic NV, non-registered shares1 | 170,538 | 12,993 | |
Snowflake, Inc., Class A1 | 90,533 | 10,342 | |
Nutanix, Inc., Class A1 | 92,100 | 5,820 | |
Stripe, Inc., Class B1,3,4 | 63,586 | 1,749 | |
12,002,347 | |||
Health care 18.89% | |||
UnitedHealth Group, Inc. | 1,369,822 | 808,469 | |
Eli Lilly and Co. | 839,686 | 806,115 | |
Novo Nordisk AS, Class B | 4,694,164 | 653,604 | |
Thermo Fisher Scientific, Inc. | 1,013,612 | 623,442 | |
Vertex Pharmaceuticals, Inc.1 | 1,032,660 | 512,086 | |
Alnylam Pharmaceuticals, Inc.1 | 1,496,947 | 393,233 | |
Molina Healthcare, Inc.1 | 782,438 | 273,689 | |
Insulet Corp.1 | 1,225,773 | 248,550 | |
Stryker Corp. | 477,224 | 172,001 | |
Argenx SE (ADR)1 | 315,120 | 163,018 | |
GE HealthCare Technologies, Inc. | 1,858,669 | 157,652 | |
AstraZeneca PLC (ADR) | 737,848 | 64,650 | |
AstraZeneca PLC | 308,151 | 53,846 | |
DexCom, Inc.1 | 1,637,983 | 113,578 | |
Exact Sciences Corp.1 | 1,836,970 | 113,323 | |
Lonza Group AG | 172,360 | 112,814 | |
Regeneron Pharmaceuticals, Inc.1 | 89,891 | 106,493 | |
Bachem Holding AG | 1,112,992 | 106,430 | |
Vaxcyte, Inc.1 | 1,276,549 | 103,094 | |
ICON PLC1 | 314,924 | 101,424 | |
Abbott Laboratories | 803,326 | 90,993 | |
Illumina, Inc.1 | 659,009 | 86,594 | |
Humana, Inc. | 243,689 | 86,380 | |
Cencora, Inc. | 332,549 | 79,669 | |
EssilorLuxottica SA | 305,873 | 72,462 | |
Catalent, Inc.1 | 1,118,467 | 68,182 | |
Daiichi Sankyo Co., Ltd. | 1,347,145 | 56,658 | |
iRhythm Technologies, Inc.1 | 741,522 | 52,559 | |
Zoetis, Inc., Class A | 267,185 | 49,026 | |
Boston Scientific Corp.1 | 587,716 | 48,069 | |
Centene Corp.1 | 585,468 | 46,152 | |
IQVIA Holdings, Inc.1 | 169,839 | 42,723 | |
BioMarin Pharmaceutical, Inc.1 | 310,785 | 28,347 | |
Denali Therapeutics, Inc.1 | 1,141,086 | 27,888 | |
agilon health, Inc.1 | 5,888,837 | 24,027 | |
Ionis Pharmaceuticals, Inc.1 | 484,110 | 23,082 | |
Align Technology, Inc.1 | 92,421 | 21,924 | |
Revance Therapeutics, Inc.1 | 3,153,520 | 20,719 | |
BridgeBio Pharma, Inc.1 | 673,688 | 18,762 | |
Intuitive Surgical, Inc.1 | 34,978 | 17,231 | |
Krystal Biotech, Inc.1 | 64,166 | 12,520 | |
Structure Therapeutics, Inc. (ADR)1 | 188,562 | 7,190 | |
6,668,668 | |||
The New Economy Fund — Page 2 of 9
unaudited
Common stocks (continued) Financials 10.79% | Shares | Value (000) | |
Mastercard, Inc., Class A | 1,062,239 | $513,423 | |
Nu Holdings, Ltd., Class A1 | 28,972,281 | 433,715 | |
KKR & Co., Inc. | 3,062,412 | 379,035 | |
Fiserv, Inc.1 | 2,157,152 | 376,639 | |
Visa, Inc., Class A | 1,204,040 | 332,761 | |
Affirm Holdings, Inc., Class A1 | 4,579,919 | 201,562 | |
RenaissanceRe Holdings, Ltd. | 612,157 | 155,971 | |
Apollo Asset Management, Inc. | 1,094,083 | 126,618 | |
Axis Bank, Ltd. | 7,601,451 | 106,761 | |
Adyen NV1 | 70,978 | 104,964 | |
Berkshire Hathaway, Inc., Class B1 | 192,119 | 91,433 | |
JPMorgan Chase & Co. | 383,751 | 86,267 | |
3i Group PLC | 2,011,777 | 84,405 | |
Intercontinental Exchange, Inc. | 489,423 | 79,066 | |
Arthur J. Gallagher & Co. | 245,221 | 71,744 | |
BlackRock, Inc. | 76,548 | 69,032 | |
Blackstone, Inc. | 478,748 | 68,155 | |
Aon PLC, Class A | 169,058 | 58,109 | |
Marsh & McLennan Companies, Inc. | 254,958 | 58,005 | |
First Citizens BancShares, Inc., Class A | 27,356 | 55,552 | |
Blue Owl Capital, Inc., Class A | 2,970,359 | 52,397 | |
Brookfield Corp., Class A | 971,169 | 48,830 | |
HDFC Bank, Ltd. | 1,205,937 | 23,582 | |
HDFC Bank, Ltd. (ADR) | 332,510 | 20,320 | |
Bajaj Finserv, Ltd. | 2,027,500 | 43,227 | |
ICICI Bank, Ltd. | 2,750,000 | 40,394 | |
Morgan Stanley | 310,259 | 32,146 | |
Discover Financial Services | 190,868 | 26,475 | |
TPG Inc., Class A | 483,901 | 24,413 | |
Star Health & Allied Insurance Co., Ltd.1 | 3,000,000 | 22,565 | |
Progressive Corp. | 81,315 | 20,508 | |
3,808,074 | |||
Industrials 10.54% | |||
TransDigm Group, Inc. | 335,285 | 460,417 | |
Dayforce, Inc.1,2 | 7,451,640 | 426,010 | |
General Electric Co. | 2,034,321 | 355,233 | |
Airbus SE, non-registered shares | 1,951,105 | 300,725 | |
Recruit Holdings Co., Ltd. | 4,073,700 | 254,396 | |
Rolls-Royce Holdings PLC1 | 32,742,743 | 214,383 | |
Uber Technologies, Inc.1 | 2,790,842 | 204,094 | |
Safran SA | 908,587 | 198,933 | |
Boeing Co.1 | 765,555 | 133,008 | |
Carrier Global Corp. | 1,668,101 | 121,404 | |
Quanta Services, Inc. | 421,281 | 115,907 | |
Copart, Inc.1 | 2,124,532 | 112,515 | |
Ryanair Holdings PLC (ADR) | 918,000 | 102,320 | |
L3Harris Technologies, Inc. | 428,877 | 101,502 | |
United Rentals, Inc. | 102,380 | 75,890 | |
Deere & Co. | 184,627 | 71,218 | |
Ingersoll-Rand, Inc. | 734,220 | 67,145 | |
Republic Services, Inc. | 318,073 | 66,226 | |
Generac Holdings, Inc.1 | 413,106 | 64,664 | |
Siemens AG | 338,316 | 63,290 | |
XPO, Inc.1 | 476,576 | 54,625 | |
The New Economy Fund — Page 3 of 9
unaudited
Common stocks (continued) Industrials (continued) | Shares | Value (000) | |
Weir Group PLC (The) | 1,938,220 | $51,440 | |
Melrose Industries PLC | 5,718,293 | 36,519 | |
NIBE Industrier AB, Class B2 | 6,663,056 | 32,974 | |
CSX Corp. | 562,539 | 19,278 | |
Saia, Inc.1 | 45,966 | 17,276 | |
3,721,392 | |||
Consumer discretionary 10.48% | |||
Amazon.com, Inc.1 | 6,732,703 | 1,201,788 | |
MercadoLibre, Inc.1 | 367,316 | 757,281 | |
LVMH Moët Hennessy-Louis Vuitton SE | 260,336 | 195,283 | |
Flutter Entertainment PLC1 | 825,480 | 175,340 | |
Floor & Decor Holdings, Inc., Class A1 | 1,382,071 | 155,400 | |
Chipotle Mexican Grill, Inc.1 | 2,736,187 | 153,445 | |
Evolution AB | 1,128,602 | 117,475 | |
Viking Holdings, Ltd.1,2 | 3,397,040 | 113,971 | |
Hilton Worldwide Holdings, Inc. | 486,951 | 106,954 | |
Tesla, Inc.1 | 395,832 | 84,752 | |
Booking Holdings, Inc. | 20,945 | 81,879 | |
Amadeus IT Group SA, Class A, non-registered shares | 1,204,887 | 81,298 | |
Home Depot, Inc. | 176,589 | 65,073 | |
O’Reilly Automotive, Inc.1 | 54,058 | 61,084 | |
Trip.com Group, Ltd. (ADR)1 | 1,150,823 | 54,250 | |
DoorDash, Inc., Class A1 | 372,488 | 47,943 | |
adidas AG | 176,867 | 45,242 | |
Starbucks Corp. | 449,500 | 42,509 | |
Airbnb, Inc., Class A1 | 271,856 | 31,891 | |
lululemon athletica, Inc.1 | 105,000 | 27,244 | |
Light & Wonder, Inc.1 | 237,268 | 26,057 | |
Aptiv PLC1 | 363,848 | 26,026 | |
CAVA Group, Inc.1 | 215,538 | 24,580 | |
DraftKings, Inc., Class A1 | 688,705 | 23,760 | |
3,700,525 | |||
Communication services 8.08% | |||
Meta Platforms, Inc., Class A | 2,142,155 | 1,116,727 | |
Alphabet, Inc., Class C | 3,070,586 | 506,984 | |
Alphabet, Inc., Class A | 3,010,948 | 491,929 | |
Netflix, Inc.1 | 211,675 | 148,458 | |
Live Nation Entertainment, Inc.1 | 1,063,760 | 103,898 | |
NetEase, Inc. (ADR) | 986,462 | 79,351 | |
T-Mobile US, Inc. | 360,643 | 71,667 | |
New York Times Co., Class A | 1,013,351 | 55,663 | |
Epic Games, Inc.1,3,4 | 84,438 | 50,663 | |
Universal Music Group NV | 1,709,615 | 44,692 | |
Take-Two Interactive Software, Inc.1 | 255,537 | 41,323 | |
Warner Music Group Corp., Class A | 1,396,908 | 39,966 | |
Tencent Holdings, Ltd. | 824,700 | 39,859 | |
Comcast Corp., Class A | 920,975 | 36,443 | |
Sea, Ltd., Class A (ADR)1 | 323,731 | 25,351 | |
2,852,974 | |||
The New Economy Fund — Page 4 of 9
unaudited
Common stocks (continued) Energy 1.86% | Shares | Value (000) | |
Viper Energy, Inc., Class A | 3,751,297 | $178,562 | |
Halliburton Co. | 3,892,551 | 121,019 | |
Transocean, Ltd.1,2 | 23,447,797 | 111,143 | |
Noble Corp. PLC, Class A | 2,518,621 | 96,085 | |
Baker Hughes Co., Class A | 2,083,223 | 73,267 | |
Reliance Industries, Ltd. | 1,402,547 | 50,667 | |
Schlumberger NV | 574,530 | 25,274 | |
656,017 | |||
Consumer staples 1.29% | |||
Performance Food Group Co.1 | 1,603,807 | 119,708 | |
Philip Morris International, Inc. | 872,366 | 107,554 | |
Costco Wholesale Corp. | 82,185 | 73,340 | |
Monster Beverage Corp.1 | 965,357 | 45,497 | |
Kroger Co. | 666,438 | 35,461 | |
Ocado Group PLC1 | 6,695,495 | 30,309 | |
Target Corp. | 142,285 | 21,858 | |
Dollar General Corp. | 245,000 | 20,328 | |
454,055 | |||
Materials 0.52% | |||
Air Products and Chemicals, Inc. | 492,020 | 137,200 | |
Linde PLC | 94,000 | 44,955 | |
182,155 | |||
Utilities 0.12% | |||
Talen Energy Corp.1 | 285,027 | 42,643 | |
Real estate 0.02% | |||
Equinix, Inc. REIT | 9,587 | 7,999 | |
Total common stocks (cost: $20,096,116,000) | 34,096,849 | ||
Preferred securities 0.09% Industrials 0.06% | |||
Zipline International, Inc., Series G, preferred shares1,3,4 | 476,800 | 20,000 | |
Information technology 0.03% | |||
Stripe, Inc., Series BB-1, 6.00% noncumulative preferred shares1,3,4 | 218,360 | 6,007 | |
Stripe, Inc., Series G, 6.00% noncumulative preferred shares1,3,4 | 128,963 | 3,548 | |
Stripe, Inc., Series BB, 6.00% noncumulative preferred shares1,3,4 | 77,454 | 2,131 | |
Stripe, Inc., Series H, 6.00% noncumulative preferred shares1,3,4 | 22,617 | 622 | |
12,308 | |||
Total preferred securities (cost: $30,178,000) | 32,308 | ||
Convertible stocks 0.10% Information technology 0.10% | |||
Tarana Wireless, Inc., Series 6, noncumulative convertible preferred shares3,4 | 30,562,347 | 32,683 | |
Tarana Wireless, Inc., Series 7, noncumulative convertible preferred shares3,4 | 922,043 | 986 | |
Total convertible stocks (cost: $25,986,000) | 33,669 | ||
The New Economy Fund — Page 5 of 9
unaudited
Short-term securities 3.30% Money market investments 3.24% | Shares | Value (000) | |
Capital Group Central Cash Fund 5.30%5,6 | 11,439,827 | $1,144,326 | |
Money market investments purchased with collateral from securities on loan 0.06% | |||
Capital Group Central Cash Fund 5.30%5,6,7 | 149,955 | 15,000 | |
State Street Institutional U.S. Government Money Market Fund, Institutional Class 5.21%5,7 | 5,293,302 | 5,293 | |
Invesco Short-Term Investments Trust – Government & Agency Portfolio, Institutional Class 5.18%5,7 | 279,935 | 280 | |
20,573 | |||
Total short-term securities (cost: $1,164,549,000) | 1,164,899 | ||
Total investment securities 100.09% (cost: $21,316,829,000) | 35,327,725 | ||
Other assets less liabilities (0.09)% | (32,063 ) | ||
Net assets 100.00% | $35,295,662 | ||
Investments in affiliates6
Value at 12/1/2023 (000) | Additions (000) | Reductions (000) | Net realized gain (loss) (000) | Net unrealized appreciation (depreciation) (000) | Value at 8/31/2024 (000) | Dividend or interest income (000) | |
Common stocks 0.00% | |||||||
Health care 0.00% | |||||||
agilon health, Inc.1,8 | $235,876 | $— | $102,108 | $(156,442 ) | $46,701 | $— | $— |
Revance Therapeutics, Inc.1,8 | 30,321 | 12,220 | 20,943 | (46,725 ) | 45,846 | — | — |
— | |||||||
Short-term securities 3.28% | |||||||
Money market investments 3.24% | |||||||
Capital Group Central Cash Fund 5.30%5 | 1,547,846 | 3,475,750 | 3,879,671 | 301 | 100 | 1,144,326 | 38,511 |
Money market investments purchased with collateral from securities on loan 0.04% | |||||||
Capital Group Central Cash Fund 5.30%5,7 | 2,191 | 12,809 9 | 15,000 | — 10 | |||
Total short-term securities | 1,159,326 | ||||||
Total 3.28% | $(202,866 ) | $92,647 | $1,159,326 | $38,511 | |||
Restricted securities4
Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets | |
Epic Games, Inc.1,3 | 3/29/2021 | $74,728 | $50,663 | .14 % |
Tarana Wireless, Inc., Series 6, noncumulative convertible preferred shares3 | 2/18/2022 | 25,000 | 32,683 | .09 |
Tarana Wireless, Inc., Series 7, noncumulative convertible preferred shares3 | 6/27/2023 | 986 | 986 | .01 |
Zipline International, Inc., Series G, preferred shares1,3 | 6/7/2024 | 20,000 | 20,000 | .06 |
Stripe, Inc., Series BB-1, 6.00% noncumulative preferred shares1,3 | 8/24/2023 | 4,703 | 6,007 | .02 |
Stripe, Inc., Series G, 6.00% noncumulative preferred shares1,3 | 9/29/2023 | 2,899 | 3,548 | .01 |
Stripe, Inc., Series BB, 6.00% noncumulative preferred shares1,3 | 8/24/2023 | 1,668 | 2,131 | .01 |
The New Economy Fund — Page 6 of 9
unaudited
Restricted securities4 (continued)
Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets | |
Stripe, Inc., Class B1,3 | 5/6/2021 - 8/24/2023 | $2,347 | $1,749 | .00 %11 |
Stripe, Inc., Series H, 6.00% noncumulative preferred shares1,3 | 3/15/2021 | 908 | 622 | .00 11 |
Total | $133,239 | $118,389 | .34 % |
1 | Security did not produce income during the last 12 months. |
2 | All or a portion of this security was on loan. The total value of all such securities was $22,254,000, which represented .06% of the net assets of the fund. |
3 | Value determined using significant unobservable inputs. |
4 | Restricted security, other than Rule 144A securities or commercial paper issued pursuant to Section 4(a)(2) of the Securities Act of 1933. The total value of all such restricted securities was $118,389,000, which represented .34% of the net assets of the fund. |
5 | Rate represents the seven-day yield at 8/31/2024. |
6 | Affiliate of the fund or part of the same “group of investment companies“ as the fund, as defined under the Investment Company Act of 1940, as amended. |
7 | Security purchased with cash collateral from securities on loan. |
8 | Affiliated issuer during the reporting period but no longer an affiliate at 8/31/2024. Refer to the investment portfolio for the security value at 8/31/2024. |
9 | Represents net activity. |
10 | Dividend income is included with securities lending income and is not shown in this table. |
11 | Amount less than .01%. |
Valuation disclosures
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers. Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities, including depositary receipts, are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fixed-income securities, including short-term securities, are generally valued at evaluated prices obtained from third-party pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds, notes & loans; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
The New Economy Fund — Page 7 of 9
unaudited
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds“), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by the fund’s investment adviser and approved by the board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security, restrictions on resale of the security, relevant financial or business developments of the issuer, actively traded similar or related securities, dealer or broker quotes, conversion or exchange rights on the security, related corporate actions, significant events occurring after the close of trading in the security, and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The fund’s board of trustees has designated the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Committee”) to administer, implement and oversee the fair valuation process and to make fair value decisions. The Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation team. The Committee reviews changes in fair value measurements from period to period, pricing vendor information and market data, and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews facilitated by the investment adviser’s global risk management group. The Committee reports changes to the fair valuation guidelines to the board of trustees. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of August 31, 2024 (dollars in thousands):
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Common stocks: | ||||
Information technology | $9,304,278 | $2,696,320 | $1,749 | $12,002,347 |
Health care | 5,612,854 | 1,055,814 | — | 6,668,668 |
Financials | 3,382,176 | 425,898 | — | 3,808,074 |
Industrials | 2,568,732 | 1,152,660 | — | 3,721,392 |
Consumer discretionary | 3,261,227 | 439,298 | — | 3,700,525 |
Communication services | 2,717,760 | 84,551 | 50,663 | 2,852,974 |
Energy | 605,350 | 50,667 | — | 656,017 |
Consumer staples | 423,746 | 30,309 | — | 454,055 |
Materials | 182,155 | — | — | 182,155 |
Utilities | 42,643 | — | — | 42,643 |
Real estate | 7,999 | — | — | 7,999 |
Preferred securities | — | — | 32,308 | 32,308 |
Convertible stocks | — | — | 33,669 | 33,669 |
Short-term securities | 1,164,899 | — | — | 1,164,899 |
Total | $29,273,819 | $5,935,517 | $118,389 | $35,327,725 |
The New Economy Fund — Page 8 of 9
unaudited
Key to abbreviation(s) |
ADR = American Depositary Receipts |
REIT = Real Estate Investment Trust |
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the Capital Group website at capitalgroup.com.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Capital Client Group, Inc., member FINRA.
© 2024 Capital Group. All rights reserved.
MFGEFP3-014-1024
The New Economy Fund — Page 9 of 9