Irvine, California 92618
Norfolk, VA 23513
Share class | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
Class M | $69 | 0.68% |
1 year | 5 years | 10 years | |
Emerging Markets Growth Fund — Class M* | 2.60% | 1.63% | 2.28% |
MSCI Emerging Markets IMI Index † | 13.56 | 3.93 | 3.09 |
Fund net assets (in millions) | $1,373 |
Total number of portfolio holdings | 150 |
Total advisory fees paid (in millions) | $9 |
Portfolio turnover rate | 34% |
Share class | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
Class F-3 | $72 | 0.71% |
1 year | 5 years | Since inception 1 | |
Emerging Markets Growth Fund — Class F-3 2 | 2.42% | 1.55% | 2.06% |
MSCI Emerging Markets IMI Index 3 | 13.56 | 3.93 | 2.87 |
Fund net assets (in millions) | $1,373 |
Total number of portfolio holdings | 150 |
Total advisory fees paid (in millions) | $9 |
Portfolio turnover rate | 34% |
Share class | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
Class R-6 | $72 | 0.71% |
1 year | 5 years | Since inception 1 | |
Emerging Markets Growth Fund — Class R-6 2 | 2.40% | 1.52% | 2.01% |
MSCI Emerging Markets IMI Index 3 | 13.56 | 3.93 | 2.87 |
Fund net assets (in millions) | $1,373 |
Total number of portfolio holdings | 150 |
Total advisory fees paid (in millions) | $9 |
Portfolio turnover rate | 34% |
ITEM 2 - Code of Ethics
The Registrant has adopted a Code of Ethics, as of the end of the period covered by this report, applicable to the registrant's principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. A copy of the code of ethics is available without charge at capitalgroup.com.
ITEM 3 - Audit Committee Financial Expert
The Registrant's board has determined that John G. Freund, a member of the Registrant's audit committee, is an "audit committee financial expert" and "independent," as such terms are defined in this Item. This designation will not increase the designee's duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members. There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such. Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant's financial statements and condition.
ITEM 4 - Principal Accountant Fees and Services
Registrant1 | (a) Audit Fees | (b) Audit-Related Fees | (c) Tax Fees | (d) All Other Fees |
June 30, 2024 | 132,000 | None | 9,000 | None |
June 30, 2023 | 124,000 | None | 8,000 | None |
Advisor and Affiliates2 |
|
|
|
|
June 30, 2024 | Not Applicable | None | None | None |
June 30, 2023 | Not Applicable | None | None | None |
Registrant, Advisor and Affiliates3 | (g) Aggregate |
non-audit fees | |
June 30, 2024 | 9,000 |
June 30, 2023 | 8,000 |
1The audit fees represents fees billed for professional services rendered for the audit and review of the Registrant's annual financial statements. The audit-related fees represents fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Registrant's financial statements, but not reported under "audit fees". The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns. The other fees represents fees, if any, billed for other products and services rendered by the principal accountant to the Registrant other than those reported under the "audit fees", "audit-related fees", and "tax fees".
2This includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below. The audit-related fees consist of assurance and related services relating to the examination of the Registrant’s transfer agent, principal underwriter and investment adviser conducted in accordance with Statement on Standards for Attestation Engagements Number 18 issued by the American Institute of Certified Public Accountants. The tax fees consist of consulting services relating to the Registrant’s investments. The other fees consist of subscription services related to an accounting research tool.
3Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant, adviser and affiliates that provide ongoing services to the Registrant. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.
(e1)(e2)(h) All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee. The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services. Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre- approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser and affiliates.
(f)Not applicable.
(i)Not applicable.
(j)Not applicable.
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 - Investments
The schedule of investments is included as part of the material filed under Item 7 of this Form.
ITEM 7 - Financial Statements and Financial Highlights for Open-End Management Investment Companies
N-CSR Items 7-11
Common stocks 96.51% | Shares | Value (000) | |
Asia-Pacific 78.69% | |||
China 30.69% | |||
Alibaba Group Holding, Ltd. | 1,231,300 | $11,069 | |
Anhui Conch Cement Co., Ltd., Class H | 1,493,629 | 3,556 | |
BeiGene, Ltd.1 | 37,574 | 412 | |
BeiGene, Ltd. (ADR)1 | 245,434 | 35,016 | |
BYD Co., Ltd., Class A1 | 125,676 | 4,318 | |
BYD Co., Ltd., Class H | 79,500 | 2,359 | |
China Merchants Bank Co., Ltd., Class H | 238,500 | 1,083 | |
China Tourism Group Duty Free Corp., Ltd., Class A | 116,795 | 1,003 | |
China Tourism Group Duty Free Corp., Ltd., Class H | 60,800 | 372 | |
Contemporary Amperex Technology Co., Ltd., Class A | 29,460 | 728 | |
ENN Energy Holdings, Ltd. | 403,400 | 3,322 | |
H World Group, Ltd. | 200,400 | 667 | |
H World Group, Ltd. (ADR) | 718,849 | 23,952 | |
Haitian International Holdings, Ltd. | 1,409,000 | 4,015 | |
Innovent Biologics, Inc.1 | 8,129,500 | 38,340 | |
JD Health International, Inc.1 | 1,185,200 | 3,221 | |
Jiangsu Hengli Hydraulic Co., Ltd., Class A | 1,054,900 | 6,764 | |
Jiangsu Hengrui Medicine Co., Ltd., Class A1 | 5,721,924 | 30,276 | |
Kweichow Moutai Co., Ltd., Class A | 39,061 | 7,878 | |
Legend Biotech Corp. (ADR)1 | 221,362 | 9,804 | |
Li Ning Co., Ltd. | 785,000 | 1,660 | |
Longfor Group Holdings, Ltd. | 2,965,502 | 4,065 | |
Midea Group Co., Ltd., Class A | 1,246,037 | 11,065 | |
NetEase, Inc. | 1,703,087 | 32,516 | |
NetEase, Inc. (ADR) | 185,290 | 17,710 | |
Ping An Insurance (Group) Company of China, Ltd., Class H | 10,830,700 | 49,248 | |
Shenzhen Inovance Technology Co., Ltd., Class A | 2,579,977 | 18,212 | |
Shenzhen Mindray Bio-Medical Electronics Co., Ltd., Class A | 124,868 | 5,005 | |
Shenzhou International Group Holdings, Ltd. | 972,400 | 9,515 | |
Tencent Holdings, Ltd. | 1,111,800 | 52,767 | |
Trip.com Group, Ltd. (ADR)1 | 668,007 | 31,396 | |
421,314 | |||
Hong Kong 0.35% | |||
AIA Group, Ltd. | 351,200 | 2,381 | |
Galaxy Entertainment Group, Ltd. | 513,000 | 2,390 | |
4,771 | |||
India 16.39% | |||
360 ONE WAM, Ltd. | 945,758 | 11,058 | |
Bharti Airtel, Ltd. | 731,325 | 12,628 | |
Cholamandalam Investment and Finance Co., Ltd. | 427,217 | 7,257 | |
City Union Bank, Ltd. | 2,388,997 | 4,775 | |
Coforge, Ltd. | 109,666 | 7,187 | |
FSN E-Commerce Ventures, Ltd.1 | 312,186 | 660 | |
Genpact, Ltd. | 21,500 | 692 | |
HCL Technologies, Ltd. | 345,021 | 6,020 | |
HDFC Bank, Ltd. | 900,537 | 18,191 | |
ICICI Bank, Ltd. | 583,986 | 8,388 | |
ITC, Ltd. | 928,192 | 4,710 | |
Kotak Mahindra Bank, Ltd. | 576,260 | 12,394 | |
Larsen & Toubro, Ltd. | 175,308 | 7,428 | |
MakeMyTrip, Ltd.1 | 386,491 | 32,504 | |
Maruti Suzuki India, Ltd. | 77,048 | 11,084 | |
Max Healthcare Institute, Ltd. | 1,069,029 | 12,021 | |
Power Finance Corp., Ltd.1 | 624,443 | 3,622 | |
REC, Ltd. | 270,126 | 1,699 | |
Shriram Finance, Ltd. | 156,448 | 5,454 | |
Tata Consultancy Services, Ltd. | 121,776 | 5,684 | |
TeamLease Services, Ltd.1 | 159,420 | 5,647 | |
Tube Investments of India, Ltd. | 66,298 | 3,364 | |
TVS Motor Co., Ltd. | 54,758 | 1,548 |
Emerging Markets Growth Fund | 1 |
Common stocks (continued) | Shares | Value (000) | |
Asia-Pacific (continued) | |||
India (continued) | |||
United Spirits, Ltd. | 886,786 | $13,580 | |
Varun Beverages, Ltd. | 1,230,846 | 23,948 | |
Vodafone Idea, Ltd.1 | 16,015,272 | 3,414 | |
224,957 | |||
Indonesia 6.31% | |||
AKR Corporindo Tbk PT | 28,665,500 | 2,837 | |
Bank Central Asia Tbk PT | 22,975,000 | 13,860 | |
Bank Mandiri (Persero) Tbk PT | 18,186,000 | 6,791 | |
Bank Rakyat Indonesia (Persero) Tbk PT | 13,700,000 | 3,822 | |
Elang Mahkota Teknologi Tbk PT | 79,592,750 | 1,887 | |
Indofood CBP Sukses Makmur Tbk PT | 5,486,300 | 3,437 | |
Indosat Tbk PT | 17,959,100 | 11,716 | |
Map Aktif Adiperkasa Tbk PT | 92,109,900 | 4,388 | |
PT Bank Syariah Indonesia Tbk | 164,597,500 | 26,180 | |
PT Surya Citra Media Tbk | 504,263,120 | 4,352 | |
Sumber Alfaria Trijaya Tbk PT | 7,828,800 | 1,310 | |
Telkom Indonesia (Persero) Tbk PT, Class B | 31,706,300 | 6,017 | |
86,597 | |||
Philippines 3.12% | |||
ACEN Corp. | 16,332,758 | 1,394 | |
Ayala Corp. | 358,370 | 3,553 | |
BDO Unibank, Inc. | 3,438,350 | 7,527 | |
Bloomberry Resorts Corp.1 | 11,149,300 | 1,809 | |
International Container Terminal Services, Inc. | 4,078,566 | 24,361 | |
SM Investments Corp. | 299,189 | 4,231 | |
42,875 | |||
South Korea 7.48% | |||
Coupang, Inc., Class A1 | 565,089 | 11,839 | |
Hana Financial Group, Inc. | 386,045 | 16,924 | |
JB Financial Group Co., Ltd. | 478,000 | 5,073 | |
KB Financial Group, Inc. | 40,339 | 2,287 | |
KT&G Corp. | 42,327 | 2,706 | |
NAVER Corp. | 57,341 | 6,947 | |
Samsung Electronics Co., Ltd. | 388,960 | 22,858 | |
Samsung Electronics Co., Ltd. (GDR)2 | 7,622 | 11,107 | |
SK hynix, Inc. | 135,536 | 22,986 | |
102,727 | |||
Taiwan 12.63% | |||
Advantech Co., Ltd. | 382,000 | 4,345 | |
AirTAC International Group | 238,904 | 7,244 | |
E Ink Holdings, Inc. | 828,000 | 6,457 | |
Global Unichip Corp. | 80,000 | 3,927 | |
MediaTek, Inc. | 564,042 | 24,113 | |
Momo.com, Inc. | 58,828 | 779 | |
Nien Made Enterprise Co., Ltd. | 413,000 | 4,971 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | 3,846,812 | 114,410 | |
Voltronic Power Technology Corp. | 120,000 | 7,101 | |
173,347 | |||
Thailand 0.36% | |||
TISCO Financial Group PCL, foreign registered shares | 1,914,694 | 4,979 | |
Vietnam 1.36% | |||
Asia Commercial Joint Stock Bank | 11,136,945 | 11,142 | |
Masan Group Corp.1 | 1,238,744 | 3,624 | |
Vietnam Dairy Products JSC | 1,020,500 | 2,623 | |
Vinhomes JSC1 | 847,003 | 1,250 | |
18,639 | |||
Total Asia-Pacific | 1,080,206 |
2 | Emerging Markets Growth Fund |
Common stocks (continued) | Shares | Value (000) | |
Latin America 11.24% | |||
Brazil 6.16% | |||
Arezzo Indústria e Comércio SA, ordinary nominative shares | 89,700 | $824 | |
B3 SA - Brasil, Bolsa, Balcao | 4,100,540 | 7,512 | |
Banco BTG Pactual SA, units | 325,000 | 1,797 | |
CCR SA, ordinary nominative shares | 3,191,636 | 6,646 | |
Estre Ambiental, Inc.1,2,3 | 591,120 | — 4 | |
Grupo de Moda Soma SA1 | 953,493 | 1,047 | |
Hypera SA, ordinary nominative shares | 1,043,884 | 5,359 | |
Lojas Renner SA | 4,265,456 | 9,523 | |
Magazine Luiza SA1 | 3,359,458 | 7,242 | |
Nu Holdings Ltd., Class A1 | 118,572 | 1,528 | |
Patria Investments, Ltd., Class A | 337,886 | 4,075 | |
Rede D’Or Sao Luiz SA | 4,487,559 | 21,835 | |
Rumo SA | 525,000 | 1,946 | |
TIM SA | 3,509,213 | 9,969 | |
Vale SA (ADR), ordinary nominative shares | 233,875 | 2,612 | |
Vale SA, ordinary nominative shares | 234,127 | 2,606 | |
84,521 | |||
Mexico 5.08% | |||
América Móvil, SAB de CV, Class B (ADR) | 621,376 | 10,563 | |
BBB Foods, Inc., Class A1 | 627,374 | 14,969 | |
CEMEX, SAB de CV (ADR), ordinary participation certificates, units | 503,821 | 3,219 | |
Corp. Inmobiliaria Vesta, SAB de CV | 2,696,936 | 8,068 | |
Corp. Inmobiliaria Vesta, SAB de CV (ADR) | 73,100 | 2,192 | |
Grupo Aeroportuario del Centro Norte, SAB de CV, Series B | 695,747 | 5,901 | |
Grupo Aeroportuario del Pacífico, SAB de CV, Class B | 379,522 | 5,937 | |
Grupo Financiero Banorte, SAB de CV, Series O | 1,132,338 | 8,824 | |
Kimberly-Clark de México, SAB de CV, Class A, ordinary participation certificates | 2,175,000 | 3,763 | |
Prologis Property Mexico, SA de CV, REIT | 1,514,116 | 4,947 | |
Regional, SAB de CV, Class A | 182,352 | 1,361 | |
69,744 | |||
Total Latin America | 154,265 | ||
Other markets 2.42% | |||
Norway 0.55% | |||
Borr Drilling, Ltd.1 | 1,165,487 | 7,517 | |
United Kingdom 0.50% | |||
Airtel Africa PLC | 4,290,245 | 6,521 | |
Sedibelo Platinum Mines Ltd.1,3 | 17,665,800 | 388 | |
6,909 | |||
United States 1.37% | |||
Kosmos Energy Ltd.1 | 500,937 | 2,775 | |
MercadoLibre, Inc.1 | 9,749 | 16,022 | |
18,797 | |||
Total Other markets | 33,223 | ||
Eastern Europe and Middle East 2.26% | |||
Hungary 0.07% | |||
Wizz Air Holdings PLC1 | 34,595 | 978 | |
Kazakhstan 1.33% | |||
Halyk Savings Bank of Kazakhstan OJSC (GDR)2 | 1,019,744 | 18,326 | |
Russian Federation 0.00% | |||
Alrosa PJSC3 | 12,604 | — 4 | |
Baring Vostok Capital Fund IV Supplemental Fund, LP1,3,5,6,7 | 43,189,450 | — 4 | |
Baring Vostok Private Equity Fund IV, LP1,3,5,6,7 | 23,604,516 | — 4 | |
Gazprom PJSC1,3 | 1,891,176 | — 4 |
Emerging Markets Growth Fund | 3 |
Common stocks (continued) | Shares | Value (000) | |
Eastern Europe and Middle East (continued) | |||
Russian Federation (continued) | |||
Moscow Exchange MICEX-RTS PJSC3 | 2,726,513 | $— 4 | |
Rosneft Oil Co. PJSC3 | 570,845 | — 4 | |
Sberbank of Russia PJSC3 | 11,761,726 | — 4 | |
— 4 | |||
Slovenia 0.86% | |||
Nova Ljubljanska Banka dd (GDR) | 441,286 | 11,766 | |
Total Eastern Europe and Middle East | 31,070 | ||
Africa 1.90% | |||
Federal Republic of Nigeria 0.27% | |||
Guaranty Trust Holding Co. PLC | 126,924,542 | 3,769 | |
South Africa 1.63% | |||
Discovery, Ltd. | 713,876 | 5,284 | |
MTN Group, Ltd. | 3,679,759 | 17,086 | |
22,370 | |||
Total Africa | 26,139 | ||
Total common stocks (cost: $1,119,372,000) | 1,324,903 | ||
Preferred securities 0.65% | |||
Asia-Pacific 0.65% | |||
South Korea 0.65% | |||
Samsung Electronics Co., Ltd., nonvoting preferred shares | 193,055 | 8,865 | |
Total preferred securities (cost: $8,311,000) | 8,865 | ||
Rights & warrants 0.21% | |||
Asia-Pacific 0.21% | |||
China 0.21% | |||
Centre Testing International Group Co., Ltd., Class A, warrants, expire 3/28/20251,2 | 870,000 | 1,206 | |
Midea Group Co., Ltd., warrants, expire 3/19/20251,2 | 187,514 | 1,665 | |
2,871 | |||
Total rights & warrants (cost: $3,137,000) | 2,871 | ||
Short-term securities 2.64% | |||
Money market investments 2.64% | |||
Capital Group Central Cash Fund 5.37%8,9 | 361,788 | 36,179 | |
Total short-term securities (cost: $36,179,000) | 36,179 | ||
Total investment securities 100.01 % (cost: $1,166,999,000) | 1,372,818 | ||
Other assets less liabilities (0.01)% | (74 ) | ||
Net assets 100.00% | $1,372,744 |
4 | Emerging Markets Growth Fund |
Value at 7/1/2023 (000) | Additions (000) | Reductions (000) | Net realized gain (loss) (000) | Net unrealized appreciation (depreciation) (000) | Value at 6/30/2024 (000) | Dividend or interest income (000) | |
Short-term securities 2.64% | |||||||
Money market investments 2.64% | |||||||
Capital Group Central Cash Fund 5.37% 8 | $57,383 | $329,373 | $350,577 | $9 | $(9 ) | $36,179 | $2,333 |
Money market investments purchased with collateral from securities on loan 0.00% | |||||||
Capital Group Central Cash Fund 5.37% 8 | 433 | 433 10 | — | — 11 | |||
Total 2.64% | $9 | $(9 ) | $36,179 | $2,333 |
Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets | |
Baring Vostok Capital Fund IV Supplemental Fund, LP1,3,5,6 | 10/8/2007-8/29/2019 | $25,045 | $— 4 | .00 %12 |
Baring Vostok Private Equity Fund IV, LP1,3,5,6 | 4/25/2007-12/28/2020 | 11,685 | — 4 | .00 12 |
Total | $36,730 | $— 4 | .00 %12 |
1 | Security did not produce income during the last 12 months. |
2 | Acquired in a transaction exempt from registration under Rule 144A or, for commercial paper, Section 4(a)(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $32,304,000, which represented 2.35% of the net assets of the fund. |
3 | Value determined using significant unobservable inputs. |
4 | Amount less than one thousand. |
5 | Cost and market value do not include prior distributions to the fund from income or proceeds realized from securities held by the private equity fund. Therefore, the cost and market value may not be indicative of the private equity fund’s performance. For private equity funds structured as limited partnerships, shares are not applicable and therefore the fund’s interest in the partnership is reported. |
6 | Excludes an unfunded capital commitment representing an agreement which obligates the fund to meet capital calls in the future. Capital calls can only be made if and when certain requirements have been fulfilled; thus, the timing and the amount of such capital calls cannot readily be determined. |
7 | 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 less than $1,000, which represented less than .01% of the net assets of the fund. |
8 | Rate represents the seven-day yield at 6/30/2024. |
9 | Part of the same “group of investment companies“ as the fund as defined under the Investment Company Act of 1940, as amended. |
10 | Represents net activity. Refer to Note 5 for more information on securities lending. |
11 | Dividend income is included with securities lending income in the fund’s statement of operations and is not shown in this table. |
12 | Amount less than .01%. |
Key to abbreviation(s) |
ADR = American Depositary Receipts |
GDR = Global Depositary Receipts |
REIT = Real Estate Investment Trust |
Emerging Markets Growth Fund | 5 |
Assets: | ||
Investment securities, at value: | ||
Unaffiliated issuers (cost: $1,130,820) | $1,336,639 | |
Affiliated issuers (cost: $36,179) | 36,179 | $1,372,818 |
Cash | 525 | |
Cash denominated in currencies other than U.S. dollars (cost: $1,142) | 1,141 | |
Receivables for: | ||
Sales of investments | 273 | |
Sales of fund’s shares | 10 | |
Dividends | 6,885 | 7,168 |
1,381,652 | ||
Liabilities: | ||
Payables for: | ||
Purchases of investments | 172 | |
Repurchases of fund’s shares | 151 | |
Investment advisory services | 694 | |
Services provided by related parties | 3 | |
Directors’ deferred compensation | 603 | |
Non-U.S. taxes | 7,057 | |
Other | 228 | 8,908 |
Commitments and contingencies* | ||
Net assets at June 30, 2024 | $1,372,744 | |
Net assets consist of: | ||
Capital paid in on shares of capital stock | $1,235,132 | |
Total distributable earnings (accumulated loss) | 137,612 | |
Net assets at June 30, 2024 | $1,372,744 |
(dollars and shares in thousands, except per-share amounts)
$.01 par value (203,787 total shares outstanding)
Net assets | Shares outstanding | Net asset value per share | |
Class M | $1,273,294 | 188,966 | $6.74 |
Class F-3 | 99,440 | 14,819 | 6.71 |
Class R-6 | 10 | 2 | 6.76 |
6 | Emerging Markets Growth Fund |
Investment income: | ||
Income: | ||
Dividends (net of non-U.S. taxes of $3,072; also includes $2,333 from affiliates) | $33,248 | |
Interest from unaffiliated issuers | 1,037 | |
Securities lending income (net of fees) | 115 | $34,400 |
Fees and expenses*: | ||
Investment advisory services | 8,588 | |
Transfer agent services | 10 | |
Administrative services | 29 | |
Reports to shareholders | 15 | |
Registration statement and prospectus | 64 | |
Directors’ compensation | 47 | |
Auditing and legal | 196 | |
Custodian | 521 | |
State and local taxes | 1 | |
Other | 31 | 9,502 |
Net investment income | 24,898 | |
Net realized gain (loss) and unrealized appreciation (depreciation): | ||
Net realized gain (loss) on: | ||
Investments (net of non-U.S. taxes of $3,896): | ||
Unaffiliated issuers | (64,098 ) | |
Affiliated issuers | 9 | |
Currency transactions | (61 ) | (64,150 ) |
Net unrealized appreciation (depreciation) on: | ||
Investments (net of non-U.S. taxes of $6,431): | ||
Unaffiliated issuers | 64,080 | |
Affiliated issuers | (9 ) | |
Currency translations | 276 | 64,347 |
Net realized gain (loss) and unrealized appreciation (depreciation) | 197 | |
Net increase (decrease) in net assets resulting from operations | $25,095 |
Emerging Markets Growth Fund | 7 |
Year ended June 30, | ||
2024 | 2023 | |
Operations: | ||
Net investment income | $24,898 | $27,535 |
Net realized gain (loss) | (64,150 ) | (28,429 ) |
Net unrealized appreciation (depreciation) | 64,347 | 99,926 |
Net increase (decrease) in net assets resulting from operations | 25,095 | 99,032 |
Distributions paid to shareholders | (20,225 ) | (19,185 ) |
Net capital share transactions | (151,144 ) | (63,909 ) |
Total increase (decrease) in net assets | (146,274 ) | 15,938 |
Net assets: | ||
Beginning of year | 1,519,018 | 1,503,080 |
End of year | $1,372,744 | $1,519,018 |
8 | Emerging Markets Growth Fund |
Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
Classes M* and F-3 | None | None | None |
Class R-6 | None | None | None |
Emerging Markets Growth Fund | 9 |
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 |
10 | Emerging Markets Growth Fund |
Investment securities | ||||
Level 1 | Level 2 | Level 3 | Total | |
Assets: | ||||
Common stocks: | ||||
Asia-Pacific | $162,913 | $917,293 | $— | $1,080,206 |
Latin America | 154,265 | — | — * | 154,265 |
Other markets | 26,314 | 6,521 | 388 | 33,223 |
Eastern Europe and Middle East | — | 31,070 | — * | 31,070 |
Africa | — | 26,139 | — | 26,139 |
Preferred securities | — | 8,865 | — | 8,865 |
Rights & warrants | — | 2,871 | — | 2,871 |
Short-term securities | 36,179 | — | — | 36,179 |
Total | $379,671 | $992,759 | $388 | $1,372,818 |
Emerging Markets Growth Fund | 11 |
12 | Emerging Markets Growth Fund |
Emerging Markets Growth Fund | 13 |
Undistributed ordinary income | $15,606 |
Capital loss carryforward* | (101,172 ) |
Gross unrealized appreciation on investments | 424,852 |
Gross unrealized depreciation on investments | (194,496 ) |
Net unrealized appreciation (depreciation) on investments | 230,356 |
Cost of investments | 1,142,462 |
Year ended June 30, | ||
Share class | 2024 | 2023 |
Class M | $18,848 | $18,247 |
Class F-3 | 1,377 | 938 |
Class R-6 | — † | — † |
Total | $20,225 | $19,185 |
14 | Emerging Markets Growth Fund |
Share class | Transfer agent services | Administrative services |
Class M | $8 | $— |
Class F-3 | 2 | 29 |
Class R-6 | — * | — * |
Total class-specific expenses | $10 | $29 |
Emerging Markets Growth Fund | 15 |
Sales* | Reinvestments of distributions | Repurchases* | Net increase (decrease) | |||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares |
Year ended June 30, 2024 | ||||||||
Class M | $17,163 | 2,613 | $5,383 | 829 | $(181,370 ) | (28,536 ) | $(158,824 ) | (25,094 ) |
Class F-3 | 27,627 | 4,258 | 1,377 | 213 | (21,325 ) | (3,265 ) | 7,679 | 1,206 |
Class R-6 | 1 | 1 | — † | — † | — † | — † | 1 | 1 |
Total net increase (decrease) | $44,791 | 6,872 | $6,760 | 1,042 | $(202,695 ) | (31,801 ) | $(151,144 ) | (23,887 ) |
Year ended June 30, 2023 | ||||||||
Class M | $21,372 | 3,363 | $5,488 | 885 | $(119,267 ) | (18,949 ) | $(92,407 ) | (14,701 ) |
Class F-3 | 43,568 | 6,888 | 817 | 132 | (15,887 ) | (2,491 ) | 28,498 | 4,529 |
Class R-6 | — † | — † | — † | — † | — | — | — † | — † |
Total net increase (decrease) | $64,940 | 10,251 | $6,305 | 1,017 | $(135,154 ) | (21,440 ) | $(63,909 ) | (10,172 ) |
if any, of $451,196,000 and $579,065,000, respectively, during the year ended June 30, 2024.
16 | Emerging Markets Growth Fund |
Income (loss) from investment operations1 | Dividends and distributions | ||||||||||||
Year ended | Net asset value, beginning of year | Net investment income (loss)2 | 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 year | Total return3 | Net assets, end of year (in millions) | Ratio of expenses to average net assets before reimburse- ments4,5 | Ratio of expenses to average net assets after reimburse- ments3,4,5 | Ratio of net income (loss) to average net assets2,3 |
Class M: | |||||||||||||
6/30/2024 | $6.67 | $.12 | $.05 | $.17 | $(.10 ) | $— | $(.10 ) | $6.74 | 2.60 % | $1,273 | .68 % | .68 % | 1.79 % |
6/30/2023 | 6.32 | .12 | .31 | .43 | (.08 ) | — | (.08 ) | 6.67 | 6.96 | 1,429 | .70 | .70 | 1.87 |
6/30/2022 | 10.33 | .09 | (3.17 ) | (3.08 ) | (.10 ) | (.83 ) | (.93 ) | 6.32 | (31.89 ) | 1,446 | .79 | .76 | 1.07 |
6/30/2021 | 7.81 | .11 | 3.03 | 3.14 | (.08 ) | (.54 ) | (.62 ) | 10.33 | 41.33 | 2,222 | .87 | .76 | 1.13 |
6/30/2020 | 8.06 | .08 | .16 | .24 | (.13 ) | (.36 ) | (.49 ) | 7.81 | 2.64 | 1,629 | .86 | .78 | 1.04 |
Class F-3: | |||||||||||||
6/30/2024 | 6.65 | .12 | .04 | .16 | (.10 ) | — | (.10 ) | 6.71 | 2.42 | 100 | .71 | .71 | 1.81 |
6/30/2023 | 6.30 | .12 | .31 | .43 | (.08 ) | — | (.08 ) | 6.65 | 6.95 | 90 | .73 | .73 | 1.91 |
6/30/2022 | 10.30 | .08 | (3.15 ) | (3.07 ) | (.10 ) | (.83 ) | (.93 ) | 6.30 | (31.90 ) | 57 | .83 | .83 | .93 |
6/30/2021 | 7.79 | .10 | 3.03 | 3.13 | (.08 ) | (.54 ) | (.62 ) | 10.30 | 41.27 | 105 | .89 | .89 | 1.06 |
6/30/2020 | 8.05 | .08 | .15 | .23 | (.13 ) | (.36 ) | (.49 ) | 7.79 | 2.49 | 71 | .89 | .89 | 1.00 |
Class R-6: | |||||||||||||
6/30/2024 | 6.70 | .12 | .04 | .16 | (.10 ) | — | (.10 ) | 6.76 | 2.40 | — 6 | .71 | .71 | 1.82 |
6/30/2023 | 6.34 | .12 | .32 | .44 | (.08 ) | — | (.08 ) | 6.70 | 7.06 | — 6 | .74 | .74 | 1.85 |
6/30/2022 | 10.38 | .08 | (3.18 ) | (3.10 ) | (.11 ) | (.83 ) | (.94 ) | 6.34 | (32.00 ) | — 6 | .82 | .82 | .99 |
6/30/2021 | 7.79 | .09 | 3.04 | 3.13 | — | (.54 ) | (.54 ) | 10.38 | 41.13 | — 6 | 1.00 | .90 | .99 |
6/30/2020 | 8.05 | .06 | .17 | .23 | (.13 ) | (.36 ) | (.49 ) | 7.79 | 2.48 | — 6 | .91 | .91 | .71 |
Year ended June 30, | |||||
2024 | 2023 | 2022 | 2021 | 2020 | |
Portfolio turnover rate for all share classes7 | 34 % | 38 % | 37 % | 35 % | 40 % |
1 | Based on average shares outstanding. |
2 | For the year ended June 30, 2020, this reflects the impact of European Union tax reclaims received that resulted in an increase to net investment income. Had the reclaims not been paid, the Class M net investment income per share and ratio of net income to average net assets would have been lower by $.01 and .12 percentage points, respectively. The impact to other share classes would have been similar. |
3 | This column reflects the impact, if any, of certain reimbursements from CIInc. During some of the years shown, CIInc reimbursed a portion of transfer agent services fees and/or reimbursed a portion of miscellaneous fees and expenses. |
4 | This ratio does not include acquired fund fees and expenses. |
5 | Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds. |
6 | Amount less than $1 million. |
7 | Rates do not include the fund’s portfolio activity with respect to any Central Funds. |
17 |
18 | Emerging Markets Growth Fund |
Foreign taxes | $0.03 per share |
Foreign source income | $0.17 per share |
Qualified dividend income | 100% |
Section 163(j) interest dividends | $2,746,000 |
U.S. government income that may be exempt from state taxation | $675,000 |
Emerging Markets Growth Fund | 19 |
20 | Emerging Markets Growth Fund |
ITEM 8 - Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable
ITEM 9 - Proxy Disclosures for Open-End Management Investment Companies
Not applicable
ITEM 10 - Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
The information is included as part of the material filed under Item 7 of this Form.
ITEM 11 - Statement Regarding Basis for Approval of Investment Advisory Contract
Not applicable
ITEM 12 - 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 13 - 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 14 - 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 15 - 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 directors since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of directors. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
ITEM 16 - 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 semi-annual 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 17 - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 18 - Recovery of Erroneously Awarded Compensation
Not applicable
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.
Emerging Markets Growth Fund, Inc.
By /s/ Donald H. Rolfe
Donald H. Rolfe,
Principal Executive Officer
Date: August 30, 2024
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/ Donald H. Rolfe
Donald H. Rolfe,
Principal Executive Officer
Date: August 30, 2024
By /s/ Gregory F. Niland
Gregory F. Niland, Treasurer and
Principal Financial Officer
Date: August 30, 2024