Capital World Bond Fund 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: 811-05104

Capital World Bond 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: September 30

Date of reporting period: March 31, 2012

Courtney R. Taylor

Capital World Bond Fund

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

Copies to:

Michael Glazer

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

   

Capital World Bond Fund®

[photo of tiled columns]

Semi-annual report for the six months ended March 31, 2012

Capital World Bond Fund seeks to maximize long-term total return, consistent with prudent management, by investing primarily in a global portfolio of investment-grade bonds denominated in U.S. dollars and other currencies. The fund may also invest in lower quality, high-yield debt securities.

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

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 3.75%) 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 March 31, 2012:
	1 year			5 years			10 years
Class A shares
Reflecting 3.75% maximum sales charge		1.11	%		5.00	%		7.69	%

The total annual fund operating expense ratio was 0.87% for Class A shares as of the prospectus dated December 1, 2011.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. See americanfunds.com for more information.

Results for other share classes can be found on page 4.

The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. High-yield and lower rated bonds are subject to greater fluctuations in value and risk of loss of income and principal than investment-grade and higher rated bonds. Bond ratings, which typically range from Aaa/AAA (highest) to D (lowest), are assigned by credit rating agencies such as Moody’s, Standard & Poor’s and/or Fitch as an indication of an issuer’s creditworthiness. Investing in bonds issued outside the U.S. may be subject to additional risks. They include currency fluctuations, political and social instability, differing securities regulations and accounting standards, higher transaction costs, possible changes in taxation, illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. 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 investors:

[photo of tiled columns]

The first six months of Capital World Bond Fund’s fiscal year, ended March 31, 2012, were marked by volatile markets and dramatic shifts in investor sentiment amid changing economic prospects, twists and turns in the euro zone debt crisis and unconventional central bank actions across the globe.

Against this dramatic backdrop, the fund produced a six-month total return of 3.65%. Fund investors received dividends totaling 31.2 cents a share during the period. The fund’s six-month total return far exceeded that of the unmanaged Barclays Global Aggregate Index, which rose 1.11% during the same period, but slightly lagged that of its peer group — as measured by the Lipper Global Income Funds Index, which gained 3.78%. As you can see in the table below, Capital World Bond Fund continues to sustain its 10-year advantage over its peers. Relative to the market index, the fund’s six-month return was helped most by its currency exposure — notably, lower exposure to the Japanese yen. Issuer selection also had a positive impact.

United States

Beginning in December, the U.S. economy appeared to strengthen. Among other data, three consecutive months of job growth that exceeded 200,000 reinforced the sense of a domestic recovery gaining in momentum. Despite such positives, U.S. Treasury yields (which move inversely to prices) rose very little, as some investors continued to view Treasuries as an attractive safe-haven asset while the recovery solidifies. Over the six-month period, corporate bond returns generally eclipsed those of Treasuries, which posted a negative return (−0.41%). As of March 31, 2012, U.S.-dollar-denominated bonds accounted for 46.0% of the fund’s portfolio (before currency hedging). Relative to the market index, the fund’s generally higher exposure to the U.S. dollar (and its lower exposure to other major currencies such as the euro and yen), helped its return over the period.

[Begin Sidebar]

Results at a glance
For periods ended March 31, 2012, with all distributions reinvested
	Total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime1
Capital World Bond Fund
(Class A shares)		5.05	%		5.81	%		8.10	%		7.25	%
Barclays Global Aggregate Index2		5.26			6.38			7.34			7.22
Lipper Global Income Funds Index		4.86			5.79			6.89			—	3
1 Since August 4, 1987.
2 The Barclays Global Aggregate Index began on December 31, 1989. For the period August 4, 1987, to December 31, 1989, the Citigroup World Government Bond Index was used. The indexes are unmanaged and, therefore, have no expenses.
3 This index did not exist prior to December 30, 1988.

[End Sidebar]

Europe

The next largest portion of the portfolio, 16.3% (before currency hedging), was invested in euro-denominated bonds. Mostly, these investments were in German government bonds, whose total returns the portfolio counselors view as relatively resilient, compared to bonds issued by France, or by peripheral euro zone countries such as Spain or Italy. The debt crisis continued to be a major source of instability, and decisive steps to counter it were taken by European authorities. In December 2011, the European Central Bank (ECB) provided large-scale funding to banks, allaying fears of a banking system collapse. Already improving investor sentiment was further lifted in February by the ECB’s second round of funding and, to a lesser extent, by the restructuring of Greek government bonds. Market sentiment reversed in March, however, amid rising concern about whether some countries could meet tough fiscal targets and implement necessary reforms as their economies struggled.

Other developed markets

In Japan, the central bank unexpectedly announced in February that it would spend an extra ¥10 trillion on government bond purchases, and also set a near-term inflation goal of 1%, which helped drive the yen lower versus the U.S. dollar. Japanese bonds — which accounted for 10.4% of the portfolio (before currency hedging) as of March 31, 2012 — generated modest returns in local currency terms as government bond yields remained low. Despite the fund’s lower relative exposure to the yen, in absolute terms it continues to represent a significant exposure — something that the portfolio counselors view as potentially beneficial for the fund’s results in a more volatile market.

[Begin Sidebar]

We are deeply saddened by the loss of Jon B. Lovelace Jr., chairman emeritus and former portfolio counselor of Capital Research and Management Company and former chairman of The Capital Group Companies.

Nearly every aspect of the Capital Group bears some stamp of Jon’s leadership and service from 1951 until 2005. He was one of the principal architects of our Multiple Portfolio Counselor System, an early proponent of international investing, the founder of New Perspective Fund and Capital Income Builder and a standard-bearer of the Capital Group’s mission to serve investors.

Though he never sought the spotlight, his accomplishments in life, work and philanthropy will long be remembered.

[End Sidebar]

Developing markets

Yields for developing-country bonds generally declined. Local currency and U.S.-dollar-denominated bonds posted strong gains. In 2012, the primary bond market had a noteworthy first quarter. Russia sold $7 billion worth of global dollar-denominated bonds — the largest developing-country sovereign bond offering in three years. Meanwhile, new issuance of corporate debt from developing countries totaled $113 billion — a quarterly record.

Looking ahead

As the U.S. economy has continued to grow modestly, growth in key developing markets such as China and India has moderated, and Europe has only just begun to address some of its daunting structural economic challenges. All the while, some governments and central banks have pushed the policy levers at their disposal — near-zero interest rates, as well as other unconventional measures such as bond buying — to greater extremes. These policies have helped to create a low-yield environment in some key developed markets, while inflation is a concern in some other countries where growth has been more robust.

The portfolio counselors continue to manage the fund with a long-term approach — seeking to generate returns for fund investors with a well-diversified portfolio that can potentially reduce volatility and provide steady income. The fund’s investment mix has remained fairly constant and relatively cautious. As of March 31, 2012, the fund was invested in more than 370 issuers, from 63 countries, denominated in 24 currencies. The majority of the fund’s holdings were investment-grade (Baa/BBB and above). These holdings are primarily government-related debt, with about 24.6% of the portfolio invested in corporate bonds.

We would like to take this opportunity to thank Paul G. Haaga, Jr., for his years of leadership as an officer of Capital World Bond Fund. Paul stepped down as vice chairman of the board on December 31, 2011, after 27 years of service to the American Funds.

We greatly appreciate your continued support and look forward to reporting to you again in six months.

Cordially,

/s/ Mark H. Dalzell

Mark H. Dalzell

President

May 14, 2012

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

[Begin Sidebar]

The fund’s 30-day yield for Class A shares as of April 30, 2012, calculated in accordance with the U.S. Securities and Exchange Commission formula, was 1.80%. The fund’s distribution rate for Class A shares as of that date was 3.06%. Both reflect the 3.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities, while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

[End Sidebar]

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							10 years/
for periods ended March 31, 2012:	1 year			5 years			Life of class1
Class B shares2
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares
are sold within six years of purchase		−0.72	%		4.67	%		7.45	%
Not reflecting CDSC		4.28			5.01			7.45
Class C shares
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		3.24			4.97			7.25
Not reflecting CDSC		4.24			4.97			7.25
Class F-1 shares3
Not reflecting annual asset-based fee charged
by sponsoring firm		5.03			5.80			8.10
Class F-2 shares3 — first sold 8/1/08
Not reflecting annual asset-based fee charged by
sponsoring firm		5.31			—			5.47
Class 529-A shares4
Reflecting 3.75% maximum sales charge		1.09			4.95			7.68
Not reflecting maximum sales charge		5.01			5.75			8.09
Class 529-B shares2,4
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		−0.85			4.56			7.34
Not reflecting CDSC		4.15			4.89			7.34
Class 529-C shares4
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		3.18			4.90			7.17
Not reflecting CDSC		4.18			4.90			7.17
Class 529-E shares3,4 — first sold 5/16/02		4.72			5.44			7.53
Class 529-F-1 shares3,4 — first sold 9/17/02
Not reflecting annual asset-based fee charged
by sponsoring firm		5.21			5.97			7.73

1Applicable to Class F-2, 529-E and 529-F-1 shares only. All other share classes reflect 10-year results.

2These shares are not available for purchase.

3These shares are sold without any initial or contingent deferred sales charge.

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

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers and/or expense reimbursements, without which results would have been lower. See americanfunds.com for more information.

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

Portfolio summary as of March 31, 2012

unaudited

[begin pie chart]

Portfolio by type of security	(percent of net assets)
Bonds & notes of governments & government agencies outside the U.S.		51.5	%
Corporate bonds & notes of issuers outside the U.S.		13.0
U.S. corporate bonds & notes		9.0
U.S. Treasury bonds & notes		7.3
Mortgage- and asset-backed obligations		11.4
Bonds & notes of U.S. government agencies & other securities		0.8
Short-term securities & other assets less liabilities		7.0

[end pie chart]

Bond & notes of governments & government agencies outside the U.S.
		(percent of net assets)
EMU(*):
	Germany		6.4	%
	Netherlands		1.2
	Italy		1.1
	Belgium		1.0
	Austria		0.9
	Ireland		0.5
	Spain		0.3
	Finland		0.1		11.5	%
Japan					10.3
Mexico					4.0
South Korea					3.4
Poland					3.3
Sweden					2.4
United Kingdom					2.3
Singapore					1.7
Hungary					1.7
Malaysia					1.7
Other					9.2
					51.5
(*) Countries using the euro as a common currency: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.

Where the fund’s assets are invested…

…and how those markets have done over the past six months

as of March 31, 2012

	Capital World Bond Fund						Bond market total returns1  six months ended  March 31, 2012
Currency weighting by country:	Before forward contracts			After forward   contracts			In local  currency			In U.S. dollars
United States2		46.0	%		48.5	%		1.6	%		1.6	%
EMU3		16.3			12.3			4.0			3.2
Japan		10.4			13.6			0.7			–5.7
Mexico		3.8			3.8			4.3			13.0
South Korea		3.3			3.3			1.9			6.0
United Kingdom		3.2			1.8			3.9			6.6
Poland		2.9			2.9			3.7			9.7
Sweden		2.8			2.5			1.2			4.6
Singapore		1.7			1.7			0.2			3.8
Malaysia		1.7			1.7			1.9			6.3
Canada		1.3			1.3			1.7			6.0
Hungary		1.3			1.3			0.4			–0.1
Israel		1.0			1.0			—	4		—	4
Brazil		0.9			0.9			7.7	5		9.6	5
Norway		0.8			0.8			1.2			4.0
Turkey		0.6			0.6			3.4	5		7.8	5
Australia		0.6			0.6			3.0			9.6
Philippines		0.5			0.5			13.2	5		15.3	5
Colombia		0.3			0.3			4.8	5		12.5	5
Russian Federation		0.3			0.3			6.9	5		17.1	5
South Africa		0.2			0.2			5.9			11.1
Uruguay		0.1			0.1			—	4		—	4
Chile		—	6		—	6		0.7			7.9
Argentina		—	6		—	6		—	4		—	4

1Source: Barclays Global Aggregate Index.

2Includes U.S. dollar-denominated debt of other countries, totaling 16.0%.

3Countries using the euro as a common currency: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. Euro-denominated debt includes corporate and European government debt.

4This market is not included in the Barclays Global Aggregate Index or the JP Morgan GBI–EM Broad Diversified Index.

5Source: JP Morgan GBI–EM Broad Diversified Index.

6Amount less than 0.1%.

Summary investment portfolio March 31, 2012

unaudited

The following summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings.  See page 42 for details on how to obtain a complete schedule of portfolio holdings.

		Principal						Percent
		amount			Value			of net
Bonds & notes - 93.01%			(000	)		(000	)	assets
Euros - 16.29%
German Government:
1.75% 2013		€	39,500		US$ 53,683
1.50% 2016 (1)			45,504			69,048
Series 159, 2.00% 2016			69,470			97,841
4.25% 2017			42,250			66,023
Series 7, 4.00% 2018			70,125			109,036
1.75% 2020 (1)			37,877			60,569
2.25% 2021			46,430			64,583
2.00%-6.25% 2013-2042  (1)			163,605			263,076			6.17
Netherlands Government Eurobond 3.50%-4.50% 2013-2042			96,020			143,088			1.13
Italian Government:
3.75% 2016			69,050			92,204
3.75%-4.25% 2013-2014			33,075			45,071			1.08
Belgium (Kingdom of):
Series 49, 4.00% 2017			77,875			111,591
Series 40, 5.50% 2017			11,975			18,322			1.02
Austrian Government, Series 2, 4.65% 2018			71,675			109,539			.86
Hungarian Government 5.75%-6.00% 2018-2019			16,250			19,161			.15
Other securities						747,194			5.88
						2,070,029			16.29
Japanese yen - 10.35%
Japanese Government:
Series 269, 1.30% 2015		¥	27,597,450			344,599
Series 284, 1.70% 2016			9,408,700			121,155
Series 14, 1.20% 2017 (1)			4,243,675			54,548
Series 299, 1.30% 2019			19,102,500			241,934
Series 310, 1.00% 2020			21,554,650			264,592
Series 21, 2.30% 2035			6,760,000			88,781
0.50%-2.40% 2013-2038 (1)			15,026,200			190,384			10.28
Other securities						9,157			.07
						1,315,150			10.35
Mexican pesos - 3.77%
United Mexican States Government:
Series M, 7.50% 2012		MXN 755,000				59,540
Series M10, 7.75% 2017			707,900			61,565
Series M, 6.50% 2021			962,500			77,109
Series M30, 10.00% 2036			697,000			69,979
3.50%-10.00% 2014-2040 (1)			2,402,355			209,939			3.76
Other securities						1,146			.01
						479,278			3.77
South Korean won - 3.35%
South Korean Government:
Series 1303, 5.25% 2013		KRW 133,328,530				119,643
5.00% 2014			79,326,500			72,423
5.25% 2015			65,801,860			61,096
5.50% 2017			60,243,100			57,693
3.50%-5.75% 2014-2031			127,059,000			114,844			3.35
						425,699			3.35
British pounds - 3.17%
United Kingdom:
3.75% 2019		£	45,965			84,312
0.625%-5.00% 2013-2040 (1)			109,126			209,581			2.31
Other securities						109,228			.86
						403,121			3.17
Polish zloty - 2.86%
Polish Government:
Series 0414, 5.75% 2014		PLN 527,125				173,396
Series 1017, 5.25% 2017			535,430			174,426
5.25%-5.75% 2020-2021			47,900			15,340			2.86
						363,162			2.86
Swedish kronor - 2.76%
Swedish Government:
Series 1049, 4.50% 2015		SKr 1,150,850				191,560
3.50%-6.75% 2012-2028 (1) (2)			793,094			143,009			2.63
Other securities						16,293			.13
						350,862			2.76
Singapore dollars - 1.75%
Singapore (Republic of):
3.75% 2016		$	S 154,460			140,616
1.625%-3.25% 2013-2020			96,750			81,655			1.75
						222,271			1.75
Malaysian ringgits - 1.67%
Malaysian Government:
Series 0204, 5.094% 2014		MYR 234,750				79,655
Series 0207, 3.814% 2017			159,605			53,094
Series 0210, 4.012% 2017			178,345			59,839
3.741%-4.24% 2015-2018			58,200			19,561			1.67
						212,149			1.67
Hungarian forints - 1.29%
Hungarian Government:
Series 17/B, 6.75% 2017		HUF 15,237,250				63,634
6.50%-8.00% 2015-2022			24,882,620			100,917			1.29
						164,551			1.29
Israeli shekels - 1.04%
Israeli Government :
5.50% 2017		ILS 333,595				97,126
4.50%-6.50% 2015-2016  (1)			121,410			35,177			1.04
						132,303			1.04
Brazilian reais - 0.89%
Brazil (Federal Republic of) 6.00%-10.00% 2012-2045 (1)		BRL 187,746				106,032			.83
Brazil (Federal Republic of) Global 10.25% 2028			11,120			7,310			.06
						113,342			.89
Norwegian kroner - 0.81%
Norwegian Government 4.25% 2017		NKr 276,160				53,897			.43
Other securities						48,323			.38
						102,220			.81
U.S. dollars - 38.99%
Fannie Mae:
3.00% 2027 (2)		US$ 128,580				133,201
3.00% 2027 (2)			72,840			75,264
3.50% 2042 (2)			68,920			70,600
4.00% 2042 (2)			56,530			59,286
6.00% 2042 (2)			129,980			143,222
0%-9.758% 2017-2048 (2) (3)			600,975			644,026			8.86
U.S. Treasury:
1.00% 2012  (4)			116,000			116,088
3.125% 2013			49,700			51,801
1.25% 2014			138,772			141,126
0.125%-5.25% 2012-2041 (1)			573,825			623,839			7.34
Freddie Mac 0%-6.00% 2015-2041 (2) (3)			71,351			74,720			.59
JPMorgan Chase & Co. 3.45%-4.625% 2016-2022			63,104			65,401			.51
Polish Government 5.00%-6.375% 2019-2022			50,225			56,545			.44
Hungarian Government 6.25%-7.625% 2020-2041			34,500			31,600			.25
United Mexican States Government Global, 3.625%-6.375% 2013-2110			25,841			29,882			.24
Brazil (Federal Republic of) Global 4.875%-6.00% 2017-2041			14,215			16,487			.13
Israeli Government 5.125% 2019			11,550			12,761			.10
South Korean Government 5.75% 2014			3,400			3,669			.03
Other securities	��					2,603,998			20.50
						4,953,516			38.99
Other currencies - 4.02%
Other securities						509,936			4.02
Total bonds & notes (cost: $11,299,503,000)						11,817,589			93.01
								Percent
					Value			of net
Preferred securities - 0.02%						(000	)	assets
U.S. dollars - 0.02%
Other securities					US$ 2,650				0.02	%
Total preferred securities (cost: $2,573,000)						2,650			.02
								Percent
					Value			of net
Common stocks - 0.02%						(000	)	assets
U.S. dollars - 0.02%
Other securities					US$ 1,774				0.02	%
Total common stocks (cost: $1,193,000)						1,774			.02
								Percent
					Value			of net
Warrants - 0.00%						(000	)	assets
U.S. dollars - 0.00%
Other securities					US$ 60				0.00	%
Total warrants (cost: $44,000)						60			.00
		Principal						Percent
		amount			Value			of net
Short-term securities - 10.56%			(000	)		(000	)	assets
U.S. Treasury Bills 0.067%-0.147% due 4/19-9/13/2012		US$ 333,850			US$ 333,746				2.63	%
Freddie Mac 0.07%-0.12% due 6/1-7/10/2012			164,650			164,613			1.30
Chariot Funding, LLC 0.15% due 4/16/2012 (5)			50,000			49,997
Jupiter Securitization Co., LLC 0.15% due 4/26/2012 (5)			37,500			37,496
JPMorgan Chase & Co. 0.18% due 5/17/2012			32,200			32,192			.94
Federal Home Loan Bank 0.09%-0.10% due 4/13-5/18/2012			91,300			91,291			.72
Thunder Bay Funding, LLC 0.19% due 6/12/2012 (5)			32,386			32,370
Old Line Funding, LLC 0.24% due 7/24/2012 (5)			26,700			26,682			.46
Fannie Mae 0.065%-0.13% due 6/18-7/16/2012			56,675			56,663			.45
International Bank for Reconstruction and Development 0.08%-0.10% due 4/30-6/4/2012			50,800			50,795			.40
Other securities						466,171			3.66
Total short-term securities (cost: $1,341,984,000)						1,342,016			10.56
Total investment securities (cost: $12,645,297,000)						13,164,089			103.61
Other assets less liabilities						(459,556	)		(3.61	)
Net assets					US$ 12,704,533				100.00	%

“Other securities” includes all issues that are not disclosed separately in the summary investment portfolio, including securities which were valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $3,367,000, which represented .03% of the net assets of the fund. One of these securities (with a value of $1,000, a cost of $17,000 and representing less than .01% of the net assets of the fund) was acquired through a private placement transaction on 4/30/2010, that may subject it to legal or contractual restrictions on resale.

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) Index-linked bond whose principal amount moves with a government price index.

(2) Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

(3) Coupon rate may change periodically.

(4) A portion of this security was pledged as collateral for losses on unsettled forward currency contracts with certain counterparties. The total value of pledged collateral was $19,424,000, which represented .15% of the net assets of the fund.

(5) Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $1,295,655,000, which represented 10.20% of the net assets of the fund.

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities			unaudited
at March 31, 2012	(dollars in thousands)
Assets:
Investment securities, at value (cost: $12,645,297)			$	13,164,089
Cash				1,251
Unrealized appreciation on open forward currency contracts				463
Receivables for:
Sales of investments	$	325,021
Sales of fund's shares		32,336
Closed forward currency contracts		1,136
Dividends and interest		148,636		507,129
				13,672,932
Liabilities:
Unrealized depreciation on open forward currency contracts				14,372
Payables for:
Purchases of investments		925,609
Repurchases of fund's shares		17,177
Closed forward currency contracts		890
Investment advisory services		4,719
Services provided by related parties		5,144
Trustees' deferred compensation		138
Other		350		954,027
Net assets at March 31, 2012			$	12,704,533
Net assets consist of:
Capital paid in on shares of beneficial interest			$	12,093,183
Undistributed net investment income				53,854
Undistributed net realized gain				52,516
Net unrealized appreciation				504,980
Net assets at March 31, 2012			$	12,704,533

	(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) -
unlimited shares authorized (608,485 total shares outstanding)
		Net assets		Shares outstanding		Net asset value per share
Class A		$	8,057,057		385,229	$	20.91
Class B			160,707		7,732		20.79
Class C			816,533		39,555		20.64
Class F-1			1,375,033		66,099		20.80
Class F-2			623,065		29,827		20.89
Class 529-A			378,652		18,060		20.97
Class 529-B			16,304		782		20.85
Class 529-C			178,603		8,592		20.79
Class 529-E			20,168		967		20.85
Class 529-F-1			33,963		1,628		20.86
Class R-1			21,549		1,038		20.77
Class R-2			188,871		9,094		20.77
Class R-3			195,793		9,374		20.89
Class R-4			119,525		5,718		20.90
Class R-5			199,992		9,556		20.93
Class R-6			318,718		15,234		20.92
See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended March 31, 2012	(dollars in thousands)
Investment income:
Income:
Interest (net of non-U.S. taxes of $655)	$	224,562
Dividends		92		$	224,654
Fees and expenses*:
Investment advisory services		27,484
Distribution services		18,656
Transfer agent services		10,071
Administrative services		1,114
Reports to shareholders		563
Registration statement and prospectus		292
Trustees' compensation		54
Auditing and legal		8
Custodian		1,039
State and local taxes		106
Other		275			59,662
Net investment income					164,992
Net realized gain and unrealized appreciation
on investments, forward currency contracts and currency:
Net realized gain (loss) on:
Investments		20,192
Forward currency contracts		65,306
Currency transactions		(13,018	)		72,480
Net unrealized appreciation (depreciation) on:
Investments		247,876
Forward currency contracts		(48,213	)
Currency translations		8,529			208,192
Net realized gain and unrealized appreciation
on investments, forward currency contracts and currency					280,672
Net increase in net assets resulting
from operations				$	445,664
(*) Additional information related to class-specific fees and expenses is included
in the Notes to Financial Statements.
See Notes to Financial Statements
Statements of changes in net assets
		(dollars in thousands)
	Six months ended March 31, 2012*			Year ended September 30, 2011
Operations:
Net investment income	$	164,992		$	380,991
Net realized gain on investments, forward currency contracts and currency transactions		72,480			259,992
Net unrealized appreciation (depreciation) on investments, forward currency contracts and currency translations		208,192			(517,037	)
Net increase in net assets resulting from operations		445,664			123,946
Dividends paid to shareholders from net investment income		(183,136	)		(460,566	)
Net capital share transactions		159,754			699,649
Total increase in net assets		422,282			363,029
Net assets:
Beginning of period		12,282,251			11,919,222
End of period (including undistributed
net investment income: $53,854 and $71,998, respectively)	$	12,704,533		$	12,282,251
*Unaudited.
See Notes to Financial Statements

Notes to financial statements                                                                                                

           unaudited

1.   Organization

Capital World Bond Fund (the "fund") is registered under the Investment Company Act of 1940 as an open-end, nondiversified management investment company. The fund seeks to maximize long-term total return, consistent with prudent management, by investing primarily in a global portfolio of investment-grade bonds denominated in U.S. dollars and other currencies. The fund may also invest in lower quality, high-yield debt securities.

The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes and six retirement plan share classes. The 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The retirement plan share classes (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 3.75%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4, R-5 and R-6	None	None	None

*Class B and 529-B shares of the fund are not available for purchase.

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

2.   Significant accounting policies

The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.

Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognizedon an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

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

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

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

Mortgage dollar rolls – The fund may enter into mortgage dollar roll transactions in which the fund sells a mortgage-backed security to a counterparty and simultaneously enters into an agreement with the same counterparty to buy back a similar security on a specific future date at a predetermined price. Risks may arise due to the delayed payment date and the potential inability of counterparties to complete the transaction. Mortgage dollar rolls are accounted for as purchase and sale transactions, which may increase the fund’s portfolio turnover rate.

Loan transactions – The fund may enter into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder's portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan's interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.

3.   Valuation

Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs – The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.

Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.

Fixed-income class	Examples of standard inputs
All	Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”)
Corporate bonds & notes; convertible securities	Standard inputs and underlying equity of the issuer
Bonds & notes of governments & government agencies	Standard inputs and interest rate volatilities
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
Municipal securities	Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts

When the fund’sinvestment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and 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.

Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.Forward currency contracts are valued at the mean of representative quoted bid and asked prices, generally based on prices supplied by one or more pricing vendors.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’sinvestment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund’sboard of trustees as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission (“SEC”) rules and guidance, to consider relevant principles and factors when making fair value determinations.  The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair value process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.

The fund’sinvestment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications – The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. 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 tables on the following page presentthe fund’s valuation levels as of March 31, 2012 (dollars in thousands):

Investment securities:	Level 1		Level 2			Level 3		Total
Bonds & notes:
Euros	$	-	$	2,070,029		$	-	$	2,070,029
Japanese yen		-		1,315,150			-		1,315,150
Mexican pesos		-		479,278			-		479,278
South Korean won		-		425,699			-		425,699
British pounds		-		403,121			-		403,121
Polish zloty		-		363,162			-		363,162
Swedish kronor		-		350,862			-		350,862
Singapore dollars		-		222,271			-		222,271
Malaysian ringgits		-		212,149			-		212,149
U.S. dollars		-		4,953,516			-		4,953,516
Other currencies		-		1,022,352			-		1,022,352
Preferred securities		2,650		-			-		2,650
Common stocks		1,773		-			1		1,774
Warrants		-		60			-		60
Short-term securities		-		1,342,016			-		1,342,016
Total	$	4,423	$	13,159,665		$	1	$	13,164,089
Forward currency contracts (*):	Level 1		Level 2			Level 3		Total
Unrealized appreciation on open forward currency contracts	$	-	$	463		$	-	$	463
Unrealized depreciation on open forward currency contracts		-		(14,372	)		-		(14,372	)
Total	$	-	$	(13,909	)	$	-	$	(13,909	)
(*) Forward currency contracts are not included in the investment portfolio.

4.   Risk factors

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

Market conditions — The prices of, and the income generated by, the securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.

Investing in bonds — Rising interest rates will generally cause the prices of bonds and other debt securities to fall. Longer maturity debt securities may be subject to greater price fluctuations than shorter maturity debt securities. In addition, falling interest rates may cause an issuer to redeem, call or refinance a security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities.

Bonds and other debt securities are subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default.

Thinly traded securities — There may be little trading in the secondary market for particular bonds or other debt securities, which may make them more difficult to value, acquire or sell.

Investing in lower rated bonds — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Currency — The prices of, and the income generated by, many debt securities held by the fund may also be affected by changes in relative currency values.

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of political, social, economic or market developments in the countries or regions in which the issuer operates. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the U.S. The risks of investing outside the U.S. may be heightened in connection with investments in emerging market and developing countries.

Nondiversification risks — As a nondiversified fund, the fund has the ability to invest a larger percentage of its assets in the securities of a smaller number of issuers than a diversified fund. Although the fund does not intend to limit its investments to the securities of a small number of issuers, if it were to do so, poor performance by a single large holding would adversely impact the fund’s investment results more than if the fund were invested in a larger number of issuers.

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its investment results to lag relevant benchmarks or other funds with similar objectives.

5.   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 March 31, 2012, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2007 and by state tax authorities and tax authorities outside the U.S. for tax years before 2006.

Non-U.S. taxation – Dividend and interest income are recorded net of non-U.S. taxes paid.

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 gainsfor financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold; paydowns on fixed-income securities; net capital losses; and income on certain investments.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 September 30, 2011, the components of distributable earnings on a tax basis were as follows:

(dollars in thousands)
Undistributed ordinary income	$	115,929
Capital loss carryforward expiring 2018*		(13,129	)
*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.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after September 30, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of March 31, 2012, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	602,577
Gross unrealized depreciation on investment securities	(105,613	)
Net unrealized appreciation on investment securities	496,964
Cost of investment securities	12,667,125

Tax-basis distributions paid to shareholders from ordinary income were as follows (dollars in thousands):

Share class	Six months ended March 31, 2012		Year ended September 30, 2011
Class A	$	119,281	$	300,822
Class B		1,856		6,529
Class C		9,166		26,327
Class F-1		20,285		50,943
Class F-2		9,707		20,935
Class 529-A		5,351		12,351
Class 529-B		174		593
Class 529-C		1,878		4,949
Class 529-E		262		619
Class 529-F-1		513		1,168
Class R-1		239		666
Class R-2		2,115		5,635
Class R-3		2,586		7,045
Class R-4		1,754		4,516
Class R-5		2,953		6,377
Class R-6		5,016		11,091
Total	$	183,136	$	460,566

6.   Fees and transactions with related parties

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

Investment advisory services – The fund has an investment advisory and service agreement with CRMC that providesfor monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.57% on the first $1 billion of daily net assets and decreasing to 0.36% on such assets in excess of $15 billion. For the six months ended March 31, 2012, the investment advisory services fee was $27,484,000, which was equivalent to an annualized rate of 0.441% of average dailynet 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 on the following page:

Distribution services – The fund has 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 0.30% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans.All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Classes A and 529-A, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30%is not exceeded. As of March 31, 2012, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.

Share class	Currently approved limits	Plan limits
Class A	0.30%	0.30%
Class 529-A	0.30	0.50
Classes B and 529-B	1.00	1.00
Classes C, 529-C and R-1	1.00	1.00
Class R-2	0.75	1.00
Classes 529-E and R-3	0.50	0.75
Classes F-1, 529-F-1 and R-4	0.25	0.50

Transfer agent services –The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.

During the period October 1, 2011, through December 31, 2011, only Class A and B shares were subject to the shareholder services agreement with AFS. During this period, AFS and other third parties were compensated for providing transfer agent services to Class C, F, R and 529 shares through the fees paid by the fund to CRMC under the fund’s administrative services agreement with CRMC as described in the administrative services section on the following page; CRMC paid for any transfer agent services expenses in excess of 0.10% of the respective average daily net assets of each of such share classes.

Effective January 1, 2012, the shareholder services agreement with AFS was modified to include Class C, F, R and 529 shares and payment for transfer agent services for such classes under the administrative services agreement terminated. Under this structure, transfer agent services expenses for some classes may exceed 0.10% of average daily net assets, resulting in an increase in expenses paid by some share classes.

For the six months ended March 31, 2012, the total transfer agent services fee paid under these agreements was $10,071,000, of which $8,960,000 was paid by the fund to AFS and $1,111,000 was paid by the fund to CRMC through its administrative services agreement with the fund. Amounts paid to CRMC by the fund were then paid by CRMC to AFS and other third parties.

Administrative services – The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, F, R and 529 shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders.

During the period October 1, 2011, through December 31, 2011, the agreement applied only to Class C, F, R and 529 shares. The agreement also required CRMC to arrange for the provision of transfer agent services for such share classes, which paid CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) of their respective average daily net assets. During this period, up to 0.05% of these fees were used to compensate CRMC for performing administrative services; all other amounts paid under this agreement were used to compensate AFS and other third parties for transfer agent services.

Effective January 1, 2012, the administrative services agreement with CRMC was modified to include Class A shares. Under the revised agreement, Class A shares pay an annual fee of 0.01% and Class C, F, R and 529 shares pay an annual fee of 0.05% of their respective average daily net assets to CRMC for administrative services. Fees for transfer agent services are no longer included as part of the administrative services fee paid by the fund to CRMC.

For the six months ended March 31, 2012, total fees paid to CRMC for performing administrative services were $1,114,000.

529 plan services – Each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance of the 529 college savings plan.The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.

Class-specific expenses under the agreements described above for the six months ended March 31, 2012, were as follows (dollars in thousands):

Share class	Distribution services		Transfer agent services		Administrative services		529 plan services
Class A	$	9,221	$	7,059	$	199	Not applicable
Class B		865		157	Not applicable		Not applicable
Class C		4,090		695		145	Not applicable
Class F-1		1,665		788		226	Not applicable
Class F-2	Not applicable			334		141	Not applicable
Class 529-A		383		228		87	$	181
Class 529-B		86		13		4		9
Class 529-C		860		119		41		86
Class 529-E		48		8		5		9
Class 529-F-1		-		20		8		16
Class R-1		104		13		6	Not applicable
Class R-2		699		354		49	Not applicable
Class R-3		490		179		53	Not applicable
Class R-4		145		57		31	Not applicable
Class R-5	Not applicable			45		46	Not applicable
Class R-6	Not applicable			2		73	Not applicable
Total class-specific expenses	$	18,656	$	10,071	$	1,114	$	301

Trustees’ deferred compensation –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 $54,000, shown on the accompanying financial statements, includes $43,000 in current fees (either paid in cash or deferred) and a net increase of $11,000 in the value of the deferred amounts.

Affiliated officers and trustees – Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or trustees received any compensation directly from the fund.

7.   Capital share transactions

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

	Sales(*)				Reinvestments of dividends				Repurchases(*)						Net increase (decrease)
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Six months ended March 31, 2012
Class A	$	675,075		32,450	$	115,379		5,600	$	(769,840	)		(37,080	)	$	20,614			970
Class B		7,269		352		1,801		88		(38,166	)		(1,851	)		(29,096	)		(1,411	)
Class C		70,030		3,413		8,787		432		(101,917	)		(4,976	)		(23,100	)		(1,131	)
Class F-1		194,255		9,390		20,127		982		(191,100	)		(9,261	)		23,282			1,111
Class F-2		128,386		6,188		8,378		407		(49,947	)		(2,407	)		86,817			4,188
Class 529-A		47,413		2,276		5,349		259		(26,056	)		(1,254	)		26,706			1,281
Class 529-B		1,130		55		174		8		(3,769	)		(182	)		(2,465	)		(119	)
Class 529-C		22,160		1,074		1,877		92		(16,771	)		(816	)		7,266			350
Class 529-E		2,948		142		262		13		(1,684	)		(82	)		1,526			73
Class 529-F-1		5,564		268		513		25		(3,391	)		(164	)		2,686			129
Class R-1		3,047		148		238		12		(2,996	)		(146	)		289			14
Class R-2		33,885		1,643		2,113		103		(35,866	)		(1,741	)		132			5
Class R-3		40,286		1,940		2,580		126		(53,247	)		(2,575	)		(10,381	)		(509	)
Class R-4		25,140		1,210		1,753		85		(27,130	)		(1,310	)		(237	)		(15	)
Class R-5		49,456		2,371		2,949		143		(29,809	)		(1,434	)		22,596			1,080
Class R-6		43,316		2,080		5,016		243		(15,213	)		(732	)		33,119			1,591
Total net increase (decrease)	$	1,349,360		65,000	$	177,296		8,618	$	(1,366,902	)		(66,011	)	$	159,754			7,607
Year ended September 30, 2011
Class A	$	1,917,013		91,430	$	287,913		14,026	$	(1,799,665	)		(86,380	)	$	405,261			19,076
Class B		33,445		1,603		6,245		306		(90,376	)		(4,364	)		(50,686	)		(2,455	)
Class C		198,116		9,580		24,773		1,223		(239,003	)		(11,634	)		(16,114	)		(831	)
Class F-1		467,337		22,480		47,788		2,340		(461,411	)		(22,282	)		53,714			2,538
Class F-2		182,636		8,751		17,553		856		(130,422	)		(6,270	)		69,767			3,337
Class 529-A		97,684		4,662		12,349		600		(48,882	)		(2,341	)		61,151			2,921
Class 529-B		3,677		176		592		29		(6,986	)		(337	)		(2,717	)		(132	)
Class 529-C		49,281		2,375		4,949		243		(29,733	)		(1,435	)		24,497			1,183
Class 529-E		5,037		242		619		30		(2,729	)		(131	)		2,927			141
Class 529-F-1		10,395		500		1,165		57		(5,504	)		(264	)		6,056			293
Class R-1		6,698		323		659		32		(7,434	)		(360	)		(77	)		(5	)
Class R-2		74,317		3,581		5,633		277		(62,703	)		(3,028	)		17,247			830
Class R-3		97,101		4,651		7,036		343		(82,817	)		(3,970	)		21,320			1,024
Class R-4		55,164		2,639		4,510		220		(53,043	)		(2,544	)		6,631			315
Class R-5		97,167		4,626		6,364		310		(70,587	)		(3,375	)		32,944			1,561
Class R-6		88,127		4,222		11,091		539		(31,490	)		(1,497	)		67,728			3,264
Total net increase (decrease)	$	3,383,195		161,841	$	439,239		21,431	$	(3,122,785	)		(150,212	)	$	699,649			33,060
* Includes exchanges between share classes of the fund.

8.   Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $6,130,642,000 and $6,141,120,000, respectively, during the six months ended March 31, 2012.

9.   Forward currency contracts

The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates. To reduce these risks, the fund has entered into a collateral program with certain counterparties. The program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty.The purpose of the collateral is to cover potential losses that could occur in the event that either party can not meet their contractual obligations.

On a daily basis, the fund’s investment adviser values forward currency contracts based on the applicable exchange rate and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the fund’s statement of operations.

As of March 31, 2012, the fund had open forward currency contracts to purchase or sell currencies, as shown in the following table. The average notional amount of open forward currency contracts was $1,868,296,000 over the prior 12-month period.

					(amounts in thousands)
			Contract amount				Unrealized (depreciation)
	Settlement date	Counterparty	Receive		Deliver		appreciation at 3/31/2012
Purchases:
Japanese yen	4/4/2012	UBS AG	¥	1,049,136	$	13,483	US$(380)
Japanese yen	4/4/2012	Bank of New York Mellon	¥	9,040,000	$	112,494		(3,272	)
Japanese yen	4/5/2012	UBS AG	¥	1,987,454	$	24,818		(806	)
Japanese yen	4/11/2012	Barclays Bank PLC	¥	1,919,396	$	23,679		(487	)
Japanese yen	4/12/2012	Bank of New York Mellon	¥	2,076,682	$	25,482		(390	)
Japanese yen	4/23/2012	Citibank	¥	3,872,030	$	46,441		350
Japanese yen	4/27/2012	HSBC Bank	¥	8,284,500	$	100,018		98
							US$(4,887)
Sales:
British pounds	4/5/2012	HSBC Bank	$	50,563	£	31,960		(554	)
British pounds	4/12/2012	Barclays Bank PLC	$	8,641	£	5,500		(155	)
British pounds	4/19/2012	Bank of New York Mellon	$	13,443	£	8,600		(310	)
British pounds	4/20/2012	UBS AG	$	3,029	£	1,925		(50	)
British pounds	4/23/2012	JPMorgan Chase	€	6,618	£	5,510		15
British pounds	4/23/2012	JPMorgan Chase	$	2,061	£	1,300		(18	)
British pounds	4/26/2012	UBS AG	€	46,888	£	39,350		(388	)
British pounds	4/30/2012	JPMorgan Chase	$	3,192	£	2,000		(6	)
British pounds	5/2/2012	HSBC Bank	$	1,986	£	1,250		(13	)
British pounds	5/10/2012	UBS AG	$	14,484	£	9,075		(28	)
Euros	4/4/2012	JPMorgan Chase	$	11,318	€	8,500		(19	)
Euros	4/5/2012	Citibank	$	20,019	€	15,100		(128	)
Euros	4/12/2012	Bank of New York Mellon	¥	2,095,249	€	19,380		(532	)
Euros	4/13/2012	JPMorgan Chase	$	139,940	€	105,750		(1,107	)
Euros	4/13/2012	HSBC Bank	$	39,668	€	30,000		(345	)
Euros	4/16/2012	JPMorgan Chase	$	65,303	€	50,150		(1,586	)
Euros	4/18/2012	JPMorgan Chase	$	57,362	€	43,720		(952	)
Euros	4/19/2012	UBS AG	¥	842,255	€	7,790		(213	)
Euros	4/19/2012	Bank of New York Mellon	$	10,060	€	7,675		(177	)
Euros	4/19/2012	JPMorgan Chase	$	26,115	€	20,000		(561	)
Euros	4/23/2012	UBS AG	$	76,240	€	57,750		(789	)
Euros	4/26/2012	UBS AG	$	16,222	€	12,250		(112	)
Euros	4/27/2012	HSBC Bank	$	4,787	€	3,600		(15	)
Euros	4/30/2012	Citibank	$	665	€	500		(2	)
Euros	5/4/2012	JPMorgan Chase	$	38,642	€	29,055		(115	)
Euros	5/9/2012	Bank of New York Mellon	¥	3,122,905	€	28,300		(7	)
Japanese yen	4/19/2012	JPMorgan Chase	$	3,774	¥	315,000		(32	)
Swedish kronor	4/12/2012	Barclays Bank PLC	$	8,222	SKr55,885			(220	)
Swedish kronor	4/20/2012	Barclays Bank PLC	$	25,337	SKr171,065			(498	)
Swedish kronor	4/20/2012	Barclays Bank PLC	$	4,415	SKr29,935			(105	)
							US$(9,022)
Forward currency contracts - net							US$(13,909)

Financial highlights

				Income (loss) from investment operations(1)								Dividends and distributions
		Net asset value, beginning of period		Net investment income		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(2)(3)			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers(3)			Ratio of net income to average net assets(3)
Class A:	Six months ended 3/31/2012(4)(5)	$	20.48	$	.28	$	.46		$	.74		$	(.31	)	$	-		$	(.31	)	$	20.91		3.65	%	$	8,057		.89	%(6)		.89	%(6)		2.72	%(6)
	Year ended 9/30/2011		21.03		.68		(.41	)		.27			(.82	)		-			(.82	)		20.48		1.32			7,868		.87			.87			3.26
	Year ended 9/30/2010		20.28		.71		.80			1.51			(.76	)		-			(.76	)		21.03		7.63			7,679		.88			.88			3.52
	Year ended 9/30/2009		18.88		.74		1.65			2.39			(.99	)		-			(.99	)		20.28		13.17			6,364		.87			.86			4.00
	Year ended 9/30/2008		20.17		.87		(1.05	)		(.18	)		(1.05	)		(.06	)		(1.11	)		18.88		(1.06	)		6,190		.90			.86			4.31
	Year ended 9/30/2007		18.93		.84		1.04			1.88			(.64	)		-			(.64	)		20.17		10.14			3,569		.98			.93			4.32
Class B:	Six months ended 3/31/2012(4)(5)		20.35		.20		.47			.67			(.23	)		-			(.23	)		20.79		3.31			161		1.65	(6)		1.65	(6)		1.96	(6)
	Year ended 9/30/2011		20.89		.52		(.41	)		.11			(.65	)		-			(.65	)		20.35		.56			186		1.64			1.64			2.49
	Year ended 9/30/2010		20.15		.56		.78			1.34			(.60	)		-			(.60	)		20.89		6.79			242		1.64			1.64			2.76
	Year ended 9/30/2009		18.73		.59		1.63			2.22			(.80	)		-			(.80	)		20.15		12.23			260		1.68			1.66			3.20
	Year ended 9/30/2008		20.02		.71		(1.03	)		(.32	)		(.91	)		(.06	)		(.97	)		18.73		(1.78	)		291		1.64			1.60			3.56
	Year ended 9/30/2007		18.79		.69		1.04			1.73			(.50	)		-			(.50	)		20.02		9.38			156		1.71			1.66			3.59
Class C:	Six months ended 3/31/2012(4)(5)		20.21		.20		.46			.66			(.23	)		-			(.23	)		20.64		3.29			816		1.68	(6)		1.68	(6)		1.93	(6)
	Year ended 9/30/2011		20.77		.51		(.42	)		.09			(.65	)		-			(.65	)		20.21		.48			822		1.66			1.66			2.47
	Year ended 9/30/2010		20.04		.54		.79			1.33			(.60	)		-			(.60	)		20.77		6.79			862		1.67			1.67			2.73
	Year ended 9/30/2009		18.63		.58		1.62			2.20			(.79	)		-			(.79	)		20.04		12.23			721		1.70			1.68			3.17
	Year ended 9/30/2008		19.92		.70		(1.03	)		(.33	)		(.90	)		(.06	)		(.96	)		18.63		(1.81	)		730		1.69			1.64			3.52
	Year ended 9/30/2007		18.71		.68		1.03			1.71			(.50	)		-			(.50	)		19.92		9.31			400		1.74			1.69			3.56
Class F-1:	Six months ended 3/31/2012(4)(5)		20.37		.28		.46			.74			(.31	)		-			(.31	)		20.80		3.68			1,375		.88	(6)		.88	(6)		2.73	(6)
	Year ended 9/30/2011		20.92		.67		(.41	)		.26			(.81	)		-			(.81	)		20.37		1.31			1,324		.89			.89			3.24
	Year ended 9/30/2010		20.18		.71		.78			1.49			(.75	)		-			(.75	)		20.92		7.61			1,307		.88			.88			3.51
	Year ended 9/30/2009		18.79		.74		1.63			2.37			(.98	)		-			(.98	)		20.18		13.12			1,212		.90			.89			3.98
	Year ended 9/30/2008		20.08		.87		(1.05	)		(.18	)		(1.05	)		(.06	)		(1.11	)		18.79		(1.03	)		1,521		.89			.84			4.33
	Year ended 9/30/2007		18.85		.85		1.03			1.88			(.65	)		-			(.65	)		20.08		10.18			977		.92			.87			4.38
Class F-2:	Six months ended 3/31/2012(4)(5)		20.45		.31		.47			.78			(.34	)		-			(.34	)		20.89		3.84			623		.64	(6)		.64	(6)		2.96	(6)
	Year ended 9/30/2011		21.01		.73		(.42	)		.31			(.87	)		-			(.87	)		20.45		1.52			524		.63			.63			3.50
	Year ended 9/30/2010		20.25		.76		.81			1.57			(.81	)		-			(.81	)		21.01		7.97			468		.62			.62			3.77
	Year ended 9/30/2009		18.89		.78		1.64			2.42			(1.06	)		-			(1.06	)		20.25		13.35			325		.66			.66			4.08
	Period from 8/1/2008 to 9/30/2008(4)		20.05		.13		(1.29	)		(1.16	)		-			-			-			18.89		(5.79	)		28		.11			.10			.71
Class 529-A:	Six months ended 3/31/2012(4)(5)		20.53		.28		.47			.75			(.31	)		-			(.31	)		20.97		3.66			379		.96	(6)		.96	(6)		2.64	(6)
	Year ended 9/30/2011		21.08		.67		(.41	)		.26			(.81	)		-			(.81	)		20.53		1.26			344		.93			.93			3.19
	Year ended 9/30/2010		20.32		.70		.81			1.51			(.75	)		-			(.75	)		21.08		7.62			292		.93			.93			3.46
	Year ended 9/30/2009		18.93		.73		1.64			2.37			(.98	)		-			(.98	)		20.32		13.02			200		.94			.93			3.92
	Year ended 9/30/2008		20.21		.86		(1.04	)		(.18	)		(1.04	)		(.06	)		(1.10	)		18.93		(1.03	)		158		.93			.88			4.29
	Year ended 9/30/2007		18.97		.83		1.04			1.87			(.63	)		-			(.63	)		20.21		10.09			93		1.00			.95			4.30
Class 529-B:	Six months ended 3/31/2012(4)(5)		20.41		.19		.47			.66			(.22	)		-			(.22	)		20.85		3.23			16		1.77	(6)		1.77	(6)		1.84	(6)
	Year ended 9/30/2011		20.95		.50		(.41	)		.09			(.63	)		-			(.63	)		20.41		.46			18		1.74			1.74			2.39
	Year ended 9/30/2010		20.21		.54		.78			1.32			(.58	)		-			(.58	)		20.95		6.69			22		1.74			1.74			2.66
	Year ended 9/30/2009		18.78		.57		1.64			2.21			(.78	)		-			(.78	)		20.21		12.16			20		1.77			1.76			3.09
	Year ended 9/30/2008		20.07		.69		(1.04	)		(.35	)		(.88	)		(.06	)		(.94	)		18.78		(1.91	)		18		1.76			1.71			3.46
	Year ended 9/30/2007		18.84		.67		1.04			1.71			(.48	)		-			(.48	)		20.07		9.25			11		1.82			1.77			3.47
Class 529-C:	Six months ended 3/31/2012(4)(5)		20.35		.19		.47			.66			(.22	)		-			(.22	)		20.79		3.28			179		1.76	(6)		1.76	(6)		1.85	(6)
	Year ended 9/30/2011		20.91		.50		(.42	)		.08			(.64	)		-			(.64	)		20.35		.42			168		1.73			1.73			2.39
	Year ended 9/30/2010		20.17		.54		.79			1.33			(.59	)		-			(.59	)		20.91		6.75			148		1.73			1.73			2.66
	Year ended 9/30/2009		18.76		.58		1.62			2.20			(.79	)		-			(.79	)		20.17		12.09			104		1.77			1.76			3.09
	Year ended 9/30/2008		20.05		.69		(1.03	)		(.34	)		(.89	)		(.06	)		(.95	)		18.76		(1.87	)		83		1.75			1.70			3.47
	Year ended 9/30/2007		18.83		.67		1.04			1.71			(.49	)		-			(.49	)		20.05		9.23			45		1.81			1.76			3.49
Class 529-E:	Six months ended 3/31/2012(4)(5)	$	20.42	$	.25	$	.46		$	.71		$	(.28	)	$	-		$	(.28	)	$	20.85		3.50	%	$	20		1.21	%(6)		1.21	%(6)		2.39	%(6)
	Year ended 9/30/2011		20.97		.61		(.41	)		.20			(.75	)		-			(.75	)		20.42		.98			18		1.21			1.21			2.91
	Year ended 9/30/2010		20.22		.64		.80			1.44			(.69	)		-			(.69	)		20.97		7.30			16		1.22			1.22			3.17
	Year ended 9/30/2009		18.82		.67		1.64			2.31			(.91	)		-			(.91	)		20.22		12.71			11		1.26			1.24			3.60
	Year ended 9/30/2008		20.11		.80		(1.05	)		(.25	)		(.98	)		(.06	)		(1.04	)		18.82		(1.38	)		9		1.24			1.19			3.98
	Year ended 9/30/2007		18.88		.77		1.04			1.81			(.58	)		-			(.58	)		20.11		9.77			5		1.30			1.25			4.00
Class 529-F-1:	Six months ended 3/31/2012(4)(5)		20.42		.30		.47			.77			(.33	)		-			(.33	)		20.86		3.79			34		.75	(6)		.75	(6)		2.85	(6)
	Year ended 9/30/2011		20.98		.71		(.42	)		.29			(.85	)		-			(.85	)		20.42		1.42			31		.73			.73			3.40
	Year ended 9/30/2010		20.23		.74		.80			1.54			(.79	)		-			(.79	)		20.98		7.82			25		.72			.72			3.67
	Year ended 9/30/2009		18.85		.76		1.64			2.40			(1.02	)		-			(1.02	)		20.23		13.27			18		.76			.75			4.10
	Year ended 9/30/2008		20.14		.90		(1.05	)		(.15	)		(1.08	)		(.06	)		(1.14	)		18.85		(.89	)		14		.73			.69			4.49
	Year ended 9/30/2007		18.90		.87		1.04			1.91			(.67	)		-			(.67	)		20.14		10.33			9		.80			.75			4.51
Class R-1:	Six months ended 3/31/2012(4)(5)		20.33		.20		.47			.67			(.23	)		-			(.23	)		20.77		3.34			22		1.64	(6)		1.64	(6)		1.97	(6)
	Year ended 9/30/2011		20.89		.51		(.42	)		.09			(.65	)		-			(.65	)		20.33		.47			21		1.66			1.66			2.47
	Year ended 9/30/2010		20.15		.55		.79			1.34			(.60	)		-			(.60	)		20.89		6.80			21		1.67			1.67			2.72
	Year ended 9/30/2009		18.74		.59		1.62			2.21			(.80	)		-			(.80	)		20.15		12.20			17		1.69			1.68			3.17
	Year ended 9/30/2008		20.03		.71		(1.03	)		(.32	)		(.91	)		(.06	)		(.97	)		18.74		(1.77	)		16		1.67			1.62			3.55
	Year ended 9/30/2007		18.82		.68		1.04			1.72			(.51	)		-			(.51	)		20.03		9.30			9		1.78			1.71			3.56
Class R-2:	Six months ended 3/31/2012(4)(5)		20.33		.20		.47			.67			(.23	)		-			(.23	)		20.77		3.33			189		1.65	(6)		1.65	(6)		1.95	(6)
	Year ended 9/30/2011		20.89		.52		(.42	)		.10			(.66	)		-			(.66	)		20.33		.50			185		1.72			1.64			2.48
	Year ended 9/30/2010		20.15		.55		.79			1.34			(.60	)		-			(.60	)		20.89		6.83			173		1.73			1.65			2.74
	Year ended 9/30/2009		18.74		.59		1.62			2.21			(.80	)		-			(.80	)		20.15		12.22			130		1.83			1.66			3.18
	Year ended 9/30/2008		20.03		.71		(1.04	)		(.33	)		(.90	)		(.06	)		(.96	)		18.74		(1.81	)		105		1.81			1.63			3.55
	Year ended 9/30/2007		18.81		.69		1.04			1.73			(.51	)		-			(.51	)		20.03		9.34			65		1.96			1.67			3.58
Class R-3:	Six months ended 3/31/2012(4)(5)		20.45		.25		.47			.72			(.28	)		-			(.28	)		20.89		3.53			196		1.21	(6)		1.21	(6)		2.40	(6)
	Year ended 9/30/2011		21.00		.61		(.41	)		.20			(.75	)		-			(.75	)		20.45		.98			202		1.21			1.21			2.92
	Year ended 9/30/2010		20.25		.64		.80			1.44			(.69	)		-			(.69	)		21.00		7.28			186		1.22			1.22			3.17
	Year ended 9/30/2009		18.85		.67		1.63			2.30			(.90	)		-			(.90	)		20.25		12.67			144		1.25			1.24			3.61
	Year ended 9/30/2008		20.13		.80		(1.04	)		(.24	)		(.98	)		(.06	)		(1.04	)		18.85		(1.33	)		122		1.24			1.19			3.98
	Year ended 9/30/2007		18.90		.77		1.04			1.81			(.58	)		-			(.58	)		20.13		9.74			73		1.31			1.26			4.00
Class R-4:	Six months ended 3/31/2012(4)(5)		20.46		.28		.47			.75			(.31	)		-			(.31	)		20.90		3.71			119		.87	(6)		.87	(6)		2.73	(6)
	Year ended 9/30/2011		21.02		.68		(.42	)		.26			(.82	)		-			(.82	)		20.46		1.26			117		.88			.88			3.25
	Year ended 9/30/2010		20.26		.71		.80			1.51			(.75	)		-			(.75	)		21.02		7.68			114		.89			.89			3.51
	Year ended 9/30/2009		18.88		.74		1.63			2.37			(.99	)		-			(.99	)		20.26		13.04			94		.91			.90			3.95
	Year ended 9/30/2008		20.16		.86		(1.03	)		(.17	)		(1.05	)		(.06	)		(1.11	)		18.88		(1.01	)		71		.91			.86			4.31
	Year ended 9/30/2007		18.92		.84		1.04			1.88			(.64	)		-			(.64	)		20.16		10.08			32		.98			.93			4.34
Class R-5:	Six months ended 3/31/2012(4)(5)		20.49		.31		.47			.78			(.34	)		-			(.34	)		20.93		3.86			200		.58	(6)		.58	(6)		3.03	(6)
	Year ended 9/30/2011		21.04		.74		(.41	)		.33			(.88	)		-			(.88	)		20.49		1.61			174		.58			.58			3.55
	Year ended 9/30/2010		20.29		.77		.79			1.56			(.81	)		-			(.81	)		21.04		7.93			146		.59			.59			3.80
	Year ended 9/30/2009		18.91		.79		1.64			2.43			(1.05	)		-			(1.05	)		20.29		13.40			110		.61			.60			4.31
	Year ended 9/30/2008		20.19		.93		(1.04	)		(.11	)		(1.11	)		(.06	)		(1.17	)		18.91		(.71	)		215		.61			.56			4.62
	Year ended 9/30/2007		18.95		.90		1.03			1.93			(.69	)		-			(.69	)		20.19		10.43			115		.67			.62			4.65
Class R-6:	Six months ended 3/31/2012(4)(5)		20.48		.32		.47			.79			(.35	)		-			(.35	)		20.92		3.89			319		.53	(6)		.53	(6)		3.08	(6)
	Year ended 9/30/2011		21.03		.75		(.41	)		.34			(.89	)		-			(.89	)		20.48		1.62			280		.53			.53			3.60
	Year ended 9/30/2010		20.28		.78		.79			1.57			(.82	)		-			(.82	)		21.03		8.04			218		.54			.54			3.85
	Period from 5/1/2009 to 9/30/2009(4)		18.28		.33		2.06			2.39			(.39	)		-			(.39	)		20.28		13.16			129		.24			.24			1.71

	Six months ended March 31,			Year ended September 30
	2012(4)(5)			2011			2010			2009			2008			2007
Portfolio turnover rate for all share classes		60	%		95	%		80	%		106	%		87	%		76	%

(1)Based on average shares outstanding.

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

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

(4)Based on operations for the period shown and, accordingly, is not representative of a full year.

(5)Unaudited.

(6)Annualized.

See Notes to Financial Statements

Expense example                                                                                                                                             

        unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (October 1, 2011, through March 31, 2012).

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-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

Note that the expenses shown in the table 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 10/1/2011		Ending account value 3/31/2012		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,036.51	$	4.53		.89	%
Class A -- assumed 5% return		1,000.00		1,020.55		4.50		.89
Class B -- actual return		1,000.00		1,033.06		8.39		1.65
Class B -- assumed 5% return		1,000.00		1,016.75		8.32		1.65
Class C -- actual return		1,000.00		1,032.89		8.54		1.68
Class C -- assumed 5% return		1,000.00		1,016.60		8.47		1.68
Class F-1 -- actual return		1,000.00		1,036.80		4.48		.88
Class F-1 -- assumed 5% return		1,000.00		1,020.60		4.45		.88
Class F-2 -- actual return		1,000.00		1,038.40		3.26		.64
Class F-2 -- assumed 5% return		1,000.00		1,021.80		3.23		.64
Class 529-A -- actual return		1,000.00		1,036.59		4.89		.96
Class 529-A -- assumed 5% return		1,000.00		1,020.20		4.85		.96
Class 529-B -- actual return		1,000.00		1,032.30		8.99		1.77
Class 529-B -- assumed 5% return		1,000.00		1,016.15		8.92		1.77
Class 529-C -- actual return		1,000.00		1,032.81		8.94		1.76
Class 529-C -- assumed 5% return		1,000.00		1,016.20		8.87		1.76
Class 529-E -- actual return		1,000.00		1,035.01		6.16		1.21
Class 529-E -- assumed 5% return		1,000.00		1,018.95		6.11		1.21
Class 529-F-1 -- actual return		1,000.00		1,037.87		3.82		.75
Class 529-F-1 -- assumed 5% return		1,000.00		1,021.25		3.79		.75
Class R-1 -- actual return		1,000.00		1,033.37		8.34		1.64
Class R-1 -- assumed 5% return		1,000.00		1,016.80		8.27		1.64
Class R-2 -- actual return		1,000.00		1,033.31		8.39		1.65
Class R-2 -- assumed 5% return		1,000.00		1,016.75		8.32		1.65
Class R-3 -- actual return		1,000.00		1,035.33		6.16		1.21
Class R-3 -- assumed 5% return		1,000.00		1,018.95		6.11		1.21
Class R-4 -- actual return		1,000.00		1,037.12		4.43		.87
Class R-4 -- assumed 5% return		1,000.00		1,020.65		4.39		.87
Class R-5 -- actual return		1,000.00		1,038.59		2.96		.58
Class R-5 -- assumed 5% return		1,000.00		1,022.10		2.93		.58
Class R-6 -- actual return		1,000.00		1,038.87		2.70		.53
Class R-6 -- assumed 5% return		1,000.00		1,022.35		2.68		.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 366(to reflect the one-half year period).

Approval of Investment Advisory and Service Agreement

The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through March 31, 2013. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund under the agreement and other agreements as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of the fund in light of its objective of providing over the long term a high level of total return consistent with prudent investment management. They compared the fund’s total returns with those of other relevant funds (including the other funds that are the basis of the Lipper index for the category in which the fund is included) and market data such as relevant market indices, in each case as available at the time of the related board and committee meetings. This report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee concluded that the fund’s long-term results have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses remain significantly below those of most other relevant funds. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the advisory fees paid by clients of an affiliate of CRMC. They noted that, to the extent there were differences between the advisory fees paid by the fund and the advisory fees paid by those clients, the differences appropriately reflected the investment, operational and regulatory differences between advising the fund and the other clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

4. Ancillary benefits

The board and the committee considered a variety of other benefits received by CRMC and its affiliates as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC’s institutional management affiliates. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments and attract and retain qualified personnel. They noted information regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

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

(Write to the address near you.)

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

Counsel

Bingham McCutchen LLP

355 South Grand Avenue, Suite 4400

Los Angeles, CA 90071-3106

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.

“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.

A complete March 31, 2012, portfolio of Capital World Bond Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

Capital World Bond 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 Capital World Bond Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after June 30, 2012, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

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The American Funds difference

Since 1931, American Funds has helped investors pursue long-term investment success. Our consistent approach — in combination with a proven system — has resulted in a superior long-term track record.

Consistent approach

We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. Our portfolio counselors average 25 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1

Proven system

Our system combines individual accountability with teamwork. Each fund is divided into portions that are managed by investment professionals with varied backgrounds, ages and investment styles. An extensive global research effort is the backbone of our system.

Superior long-term track record

Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 60% of 10-year periods and 67% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3

1 As of 12/31/11.

2 Based on Class A share results for periods through 12/31/11. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date.

3 Based on management fees for the 20-year period ended 12/31/11 versus comparable Lipper categories, excluding funds of funds.

American Funds span a range of investment objectives

•Growth funds

Emphasis on long-term growth through stocks

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

Emphasis on long-term growth and dividends through stocks

American Mutual Fund®

Capital World Growth and Income Fund®

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

•Equity-income funds

Emphasis on above-average income and growth through stocks and/or bonds

Capital Income Builder®

The Income Fund of America®

•Balanced funds

Emphasis on long-term growth and current income through stocks and bonds

American Balanced Fund®

American Funds Global Balanced FundSM

•Bond funds

Emphasis on current income through bonds

American Funds Mortgage Fund®

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

Emphasis on tax-exempt current income through municipal bonds

American Funds Short-Term Tax-Exempt Bond FundSM

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

American Funds Tax-Exempt Fund of New York®

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•Money market fund

American Funds Money Market Fund®

•American Funds Portfolio SeriesSM

American Funds Global Growth PortfolioSM

American Funds Growth PortfolioSM

American Funds Growth and Income PortfolioSM

American Funds Balanced PortfolioSM

American Funds Income PortfolioSM

American Funds Tax-Advantaged Income PortfolioSM

American Funds Preservation PortfolioSM

American Funds Tax-Exempt Preservation PortfolioSM

•American Funds Target Date Retirement Series®

The Capital Group Companies

American FundsCapital Research and ManagementCapital InternationalCapital GuardianCapital Bank and Trust

Lit. No. MFGESR-931-0512P

Litho in USA WG/RRD/8098-S28736

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

Capital World Bond Fund®

Investment portfolio

March 31, 2012

unaudited

Bonds & notes — 93.01%	Principal amount (000)			Value (000)
EUROS — 16.29%
German Government 1.75% 2013	€	39,500		US$ 53,683
German Government 2.25% 20131		9,679			13,737
German Government, Series 3, 3.75% 2013		23,650			32,957
German Government 4.25% 2014		26,230			38,130
German Government, Series 4, 3.75% 2015		6,000			8,755
German Government 1.50% 20161		45,504			69,048
German Government, Series 159, 2.00% 2016		69,470			97,841
German Government, Series 6, 4.00% 2016		19,225			29,241
German Government, Series 6, 3.75% 2017		7,175			10,899
German Government 4.25% 2017		42,250			66,023
German Government, Series 7, 4.00% 2018		70,125			109,036
German Government 1.75% 20201		37,877			60,569
German Government 3.00% 2020		8,500			12,633
German Government 2.25% 2021		46,430			64,583
German Government 2.00% 2022		3,600			4,888
German Government 6.25% 2024		24,646			47,202
German Government 6.25% 2030		8,810			18,036
German Government, Series 00, 5.50% 2031		15,275			29,377
German Government, Series 8, 4.75% 2040		2,150			4,181
German Government 3.25% 2042		8,365			13,040
Netherlands Government Eurobond 4.25% 2013		34,000			47,680
Netherlands Government Eurobond 4.50% 2017		25,530			39,340
Netherlands Government Eurobond 4.00% 2018		6,535			9,926
Netherlands Government Eurobond 3.50% 2020		17,455			25,804
Netherlands Government Eurobond 3.75% 2042		12,500			20,338
Italian Government 3.75% 2013		15,075			20,462
Italian Government 4.25% 2014		18,000			24,609
Italian Government 3.75% 2016		69,050			92,204
Belgium (Kingdom of), Series 49, 4.00% 2017		77,875			111,591
Belgium (Kingdom of), Series 40, 5.50% 2017		11,975			18,322
Austrian Government, Series 2, 4.65% 2018		71,675			109,539
Deutsche Genossenschaftsbank-Hypothekenbank AG, Series 944, 4.50% 20132		25,500			35,065
Deutsche Genossenschaftsbank-Hypothekenbank AG, Series 1043, 4.00% 20162		28,800			42,530
Irish Government 5.00% 2013		8,000			10,749
Irish Government 4.00% 2014		10,000			13,243
Irish Government 5.90% 2019		10,000			12,757
Irish Government 5.00% 2020		26,500			31,159
Barclays Bank PLC 4.00% 20192		17,900			25,940
Barclays Bank PLC 6.00% 2021		11,975			14,845
Spanish Government 3.25% 2016		14,530			18,957
Spanish Government 5.50% 2021		13,820			18,735
Royal Bank of Scotland PLC 6.00% 2013		960			1,312
Royal Bank of Scotland PLC 4.875% 2017		1,500			2,079
Royal Bank of Scotland PLC 6.934% 2018		17,860			22,415
Royal Bank of Scotland Group PLC 5.50% 2020		5,750			7,878
Koninklijke KPN NV 3.75% 2020		17,600			23,775
Koninklijke KPN NV 4.50% 2021		5,800			8,167
Zurich Finance (USA), Inc., Series 6, 5.75% 20233		16,612			22,554
Zurich Finance (USA), Inc., Series 9, 4.50% 20253		750			1,013
Aviva PLC, junior subordinated 5.70% (undated)3		20,040			22,424
Standard Chartered PLC 3.625% 2015		2,500			3,533
Standard Chartered Bank 5.875% 2017		13,000			18,640
HSBC Holdings PLC 6.00% 2019		10,975			16,165
HSBC Bank PLC 4.00% 2021		2,500			3,580
Veolia Environnement 4.375% 2017		5,200			7,549
Veolia Environnement 6.125% 2033		7,915			12,181
Hungarian Government 5.75% 2018		7,500			8,824
Hungarian Government 6.00% 2019		8,750			10,337
Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft 6.00% 20413		9,000			11,920
Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft, junior subordinated 5.767% (undated)3		5,350			6,529
Schering-Plough Corp. 5.375% 2014		11,655			17,135
KfW 4.375% 2013		11,875			16,780
Assicurazioni Generali SpA. 6.90% 20223		12,423			16,569
Abu Dhabi National Energy Co. PJSC (TAQA) 4.375% 2013		10,500			14,494
Volvo Treasury AB 5.00% 2017		9,440			14,095
National Grid Transco PLC 5.00% 2018		3,275			4,992
National Grid Transco PLC 4.375% 2020		6,000			8,874
Daimler AG, Series 6, 4.125% 2017		9,350			13,681
Merrill Lynch & Co., Inc. 4.625% 2018		9,600			11,938
AT&T Inc. 6.125% 2015		7,500			11,410
HBOS PLC 4.375% 20193		885			909
Lloyds TSB Bank PLC 6.50% 2020		8,400			9,810
Iberdrola Finanzas, SAU 7.50% 2015		7,000			10,667
Canadian Government 3.50% 2020		7,000			10,656
Anheuser-Busch InBev NV 8.625% 2017		5,730			10,016
BMW Group 3.875% 2017		6,900			9,947
Wal-Mart Stores, Inc. 4.875% 2029		6,000			9,610
Roche Holdings, Inc. 5.625% 2016		5,900			9,120
Finland (Republic of) 3.875% 2017		5,890			8,848
WT Finance (Australia) Pty Ltd., Westfield Europe Finance PLC, and WEA Finance LLC 3.625% 2012		6,510			8,752
Skandinaviska Enskilda 5.50% 2014		4,000			5,770
Skandinaviska Enskilda 4.25% 2018		2,000			2,866
Commerzbank AG, Series 774, 7.75% 2021		6,900			8,227
Bank Nederlandse Gemeenten 3.75% 2014		5,560			7,828
UBS AG 6.00% 2018		4,500			6,972
Deutsche Telekom International Finance BV 7.50% 2033		3,375			6,347
Telecom Italia SpA 7.75% 2033		4,500			6,332
Northern Rock PLC, Series 7, 4.125% 20172		4,000			5,574
FCE Bank PLC 7.125% 2013		4,000			5,542
Scottish and Southern Energy PLC 6.125% 2013		3,500			4,982
France Télécom 5.625% 2018		3,000			4,727
Bouygues SA 4.375% 2014		3,195			4,553
Imperial Tobacco Finance PLC 8.375% 2016		2,775			4,517
Rodamco Europe Finance BV, Series 5, 3.75% 2012		3,030			4,111
Novartis Finance SA, 4.25% 2016		2,500			3,739
Centrica plc 7.125% 2013		2,500			3,657
Gas Natural SGD, SA 4.125% 2018		2,750			3,651
GlaxoSmithKline Capital PLC 5.125% 2012		2,500			3,436
CRH Finance BV 7.375% 20143		2,125			3,157
Anglian Water Services Financing PLC 4.625% 2013		2,250			3,152
Delhaize Group 5.625% 2014		2,000			2,856
Bulgaria (Republic of) 7.50% 2013		1,638			2,279
Bulgaria (Republic of) 7.50% 2013		250			348
Red Eléctrica Financiaciones, SAU 4.75% 2018		1,800			2,599
AXA SA 4.50% 2015		1,350			1,936
Banque Centrale de Tunisie 6.25% 2013		1,350			1,835
Wind Acquisition SA 7.375% 2018		925			1,150
Nara Cable Funding Ltd. 8.875% 2018		850			1,054
					2,070,029
JAPANESE YEN — 10.35%
Japanese Government, Series 248, 0.70% 2013	¥	2,050,000			24,906
Japanese Government, Class 4, 0.50% 20151		1,337,980			16,136
Japanese Government, Series 269, 1.30% 2015		27,597,450			344,599
Japanese Government, Series 284, 1.70% 2016		9,408,700			121,155
Japanese Government, Series 281, 2.00% 2016		2,465,000			31,962
Japanese Government, Series 14, 1.20% 20171		4,243,675			54,548
Japanese Government, Series 12, 1.20% 20171		1,212,420			15,474
Japanese Government, Series 288, 1.70% 2017		795,000			10,292
Japanese Government, Series 296, 1.50% 2018		3,781,850			48,501
Japanese Government, Series 299, 1.30% 2019		19,102,500			241,934
Japanese Government, Series 310, 1.00% 2020		21,554,650			264,592
Japanese Government, Series 315, 1.20% 2021		2,165,000			26,845
Japanese Government, Series 21, 2.30% 2035		6,760,000			88,781
Japanese Government 2.40% 2038		1,218,950			16,268
European Investment Bank 1.40% 2017		721,700			9,157
					1,315,150
MEXICAN PESOS — 3.77%
United Mexican States Government, Series M, 7.50% 2012	MXN755,000				59,540
United Mexican States Government, Series M, 7.00% 2014		302,500			24,843
United Mexican States Government, Series MI10, 9.50% 2014		285,000			24,878
United Mexican States Government, Series M10, 8.00% 2015		142,500			12,213
United Mexican States Government, Series M10, 7.25% 2016		564,500			47,762
United Mexican States Government 5.00% 20161		65,525			5,881
United Mexican States Government, Series M10, 7.75% 2017		707,900			61,565
United Mexican States Government 3.50% 20171		61,313			5,284
United Mexican States Government 4.00% 20191		70,206			6,280
United Mexican States Government, Series M, 8.00% 2020		570,000			50,467
United Mexican States Government, Series M, 6.50% 2021		962,500			77,109
United Mexican States Government, Series M20, 10.00% 2024		200,400			20,513
United Mexican States Government, Series M30, 10.00% 2036		697,000			69,979
United Mexican States Government 4.00% 20401		140,411			11,818
América Móvil, SAB de CV 8.46% 2036		15,000			1,146
					479,278
SOUTH KOREAN WON — 3.35%
South Korean Government, Series 1303, 5.25% 2013	KRW133,328,530				119,643
South Korean Government, Series 1406, 3.50% 2014		18,120,000			15,997
South Korean Government 4.25% 2014		41,330,000			37,101
South Korean Government 4.75% 2014		24,510,000			22,142
South Korean Government 5.00% 2014		79,326,500			72,423
South Korean Government, Series 1503, 4.50% 2015		10,349,000			9,373
South Korean Government 5.25% 2015		65,801,860			61,096
South Korean Government 5.50% 2017		60,243,100			57,693
South Korean Government 5.75% 2018		12,650,000			12,392
South Korean Government 4.00% 2031		20,100,000			17,839
					425,699
BRITISH POUNDS — 3.17%
United Kingdom 2.50% 20131	£	5,036			8,669
United Kingdom 2.00% 2016		4,610			7,712
United Kingdom 2.50% 20161		6,354			12,158
United Kingdom 3.75% 2019		45,965			84,312
United Kingdom 3.75% 2020		25,360			46,441
United Kingdom 4.75% 2020		7,885			15,403
United Kingdom 2.50% 20201		3,792			7,965
United Kingdom 5.00% 2025		4,000			8,130
United Kingdom 4.75% 2030		14,870			29,453
United Kingdom 4.125% 20301		4,283			12,253
United Kingdom 0.625% 20401		6,666			12,469
United Kingdom 4.25% 2040		26,270			48,928
RSA Insurance Group PLC 9.375% 20393		1,733			3,264
RSA Insurance Group PLC 8.50% (undated)3		20,059			33,929
Telecom Italia SpA and Telecom Italia Finance SA, Series 9, 5.625% 2015		12,600			20,780
France Télécom 5.00% 2016		9,450			16,610
Virgin Media Secured Finance PLC 5.50% 2021		4,000			6,750
BNP Paribas 3.50% 2016		3,488			5,616
Tesco PLC 5.50% 2033		2,640			4,561
Generali Finance BV 6.214% (undated)3		3,200			3,634
UBS AG 6.625% 2018		1,750			3,214
SLM Student Loan Trust, Series 2003-10, Class A-4, 5.15% 20392,4		2,400			3,100
Time Warner Cable Inc. 5.75% 2031		1,375			2,391
CRH Group Funding LTD and CRH Finance (U.K.) PLC 8.25% 2015		1,225			2,254
Wal-Mart Stores, Inc. 5.625% 2034		950			1,848
General Electric Capital Corp. 5.625% 2031		750			1,277
					403,121
POLISH ZLOTY — 2.86%
Polish Government, Series 0414, 5.75% 2014	PLN527,125				173,396
Polish Government, Series 1017, 5.25% 2017		535,430			174,426
Polish Government, Series 1020, 5.25% 2020		37,900			12,057
Polish Government, Series 1021, 5.75% 2021		10,000			3,283
					363,162
SWEDISH KRONOR — 2.76%
Swedish Government, Series 124, 4.00% 20122	SKr 172,000				26,011
Swedish Government, Series 1041, 6.75% 2014		123,430			20,743
Swedish Government 3.50% 20151		153,270			26,157
Swedish Government, Series 1049, 4.50% 2015		1,150,850			191,560
Swedish Government, Series 1047, 5.00% 2020		142,540			26,856
Swedish Government 4.00% 20201		79,153			15,781
Swedish Government, Series 3104, 3.50% 20281		122,701			27,461
Nordea Hypotek AB 4.00% 20122		60,000			9,113
Nordea Hypotek AB 4.00% 20142		45,800			7,180
					350,862
SINGAPORE DOLLARS — 1.75%
Singapore (Republic of) 1.625% 2013	$	S 58,350			47,091
Singapore (Republic of) 3.75% 2016		154,460			140,616
Singapore (Republic of) 3.25% 2020		38,400			34,564
					222,271
MALAYSIAN RINGGITS — 1.67%
Malaysian Government, Series 0204, 5.094% 2014	MYR234,750				79,655
Malaysian Government, Series 0409, 3.741% 2015		23,200			7,685
Malaysian Government, Series 0207, 3.814% 2017		159,605			53,094
Malaysian Government, Series 0210, 4.012% 2017		178,345			59,839
Malaysian Government, Series 0203, 4.24% 2018		35,000			11,876
					212,149
CANADIAN DOLLARS — 1.31%
Canadian Government 2.00% 2014	$	C13,000			13,288
Canadian Government 2.00% 2014		5,000			5,091
Canadian Government 4.50% 2015		21,450			23,610
Canadian Government 4.25% 2018		2,000			2,305
Canadian Government 3.25% 2021		23,360			25,701
Canadian Government 4.25% 20211		6,386			9,067
Canada Housing Trust 4.10% 2018		1,500			1,682
Canada Housing Trust 3.35% 2020		23,000			24,619
Province of Ontario, Series HC, 9.50% 2022		2,000			3,115
Province of Ontario 4.60% 2039		9,500			11,124
Province of Manitoba 4.25% 2018		8,500			9,436
Province de Québec 5.25% 2013		2,000			2,122
Province de Québec 9.375% 2023		2,000			3,117
Hydro One Inc. 5.49% 2040		4,000			5,033
Canadian Imperial Bank 5.00% 2012		4,000			4,075
Rogers Communications Inc. 5.80% 2016		3,500			3,948
Interprovincial Pipe Line Inc., Series K, 8.20% 2024		1,500			2,159
Bank of Nova Scotia 5.04% 2013		2,000			2,082
Toronto-Dominion Bank 4.854% 2013		2,000			2,067
Wells Fargo & Co. 6.05% 2012		2,000			2,043
GE Capital Canada Funding Co., Series A, 5.29% 2012		2,000			2,035
Thomson Reuters Corp. 5.70% 2015		1,750			1,956
Bank of Montreal 5.18% 2015		1,750			1,921
Royal Bank of Canada 5.20% 2012		1,750			1,780
TransCanada PipeLines Ltd. 5.05% 2014		1,250			1,332
Province of New Brunswick 6.75% 2017		750			918
					165,626
HUNGARIAN FORINTS — 1.29%
Hungarian Government, Series 15/A, 8.00% 2015	HUF 831,040				3,710
Hungarian Government, Series 17/B, 6.75% 2017		15,237,250			63,634
Hungarian Government, Series 17/A, 6.75% 2017		11,138,500			45,962
Hungarian Government, Series 19/A, 6.50% 2019		2,534,600			10,060
Hungarian Government, Series 20A, 7.50% 2020		1,000,000			4,141
Hungarian Government, Series 22A, 7.00% 2022		9,378,480			37,044
					164,551
ISRAELI SHEKELS — 1.04%
Israeli Government 4.50% 2015	ILS 78,740				22,045
Israeli Government 5.00% 20151		27,270			8,520
Israeli Government, Series 2683, 6.50% 2016		15,400			4,612
Israeli Government 5.50% 2017		333,595			97,126
					132,303
BRAZILIAN REAIS — 0.89%
Brazil (Federal Republic of) 6.00% 20121	BRL19,069				10,605
Brazil (Federal Republic of) 6.00% 20151		10,431			6,135
Brazil (Federal Republic of) 10.00% 2017		79,430			42,382
Brazil (Federal Republic of) 6.00% 20171		43,781			26,028
Brazil (Federal Republic of) 10.00% 2021		10,000			5,154
Brazil (Federal Republic of) Global 10.25% 2028		11,120			7,310
Brazil (Federal Republic of) 6.00% 20451		25,035			15,728
					113,342
NORWEGIAN KRONER — 0.81%
Norwegian Government 5.00% 2015	NKr250,000				48,323
Norwegian Government 4.25% 2017		276,160			53,897
					102,220
TURKISH LIRA — 0.62%
Turkey (Republic of) 16.00% 2013	TRY 8,700				5,318
Turkey (Republic of) 4.00% 20151		19,212			11,926
Turkey (Republic of) 4.50% 20151		7,489			4,429
Turkey (Republic of) 9.00% 2016		17,025			9,505
Turkey (Republic of) 10.50% 2020		53,400			31,879
Turkey (Republic of) 3.00% 20211		29,083			16,130
					79,187
AUSTRALIAN DOLLARS — 0.55%
Queensland Treasury Corp., Series 15, 6.00% 2015	$	A20,139			22,123
Queensland Treasury Corp., Series 17, 6.00% 2017		18,937			21,143
New South Wales Treasury Corp., Series 14, 5.50% 2014		16,862			18,061
Australian Government 4.00% 20201		6,874			8,717
					70,044
PHILIPPINE PESOS — 0.53%
Philippines (Republic of), Series 5-67, 6.25% 2014	PHP 512,330				12,594
Philippines (Republic of) 4.95% 2021		114,000			2,770
Philippines (Republic of) 6.375% 2022		1,549,551			39,287
Philippines (Republic of) 6.25% 2036		483,000			12,003
					66,654
COLOMBIAN PESOS — 0.32%
Colombia (Republic of) Global 12.00% 2015	COP30,500,000				21,484
Colombia (Republic of) Global 7.75% 2021		10,265,000			6,874
Colombia (Republic of) Global 9.85% 2027		15,821,000			12,515
					40,873
RUSSIAN RUBLES — 0.31%
Russian Federation 7.85% 2018	RUB850,000				30,376
Russian Federation 7.85% 2018		260,000			9,291
					39,667
SOUTH AFRICAN RAND — 0.22%
South Africa (Republic of), Series R-203, 8.25% 2017	ZAR 83,000				11,282
South Africa (Republic of), Series R-207, 7.25% 2020		130,000			16,444
					27,726
URUGUAYAN PESOS — 0.12%
Uruguay (Republic of) 4.375% 20281	UYU262,848				15,158
CHILEAN PESOS — 0.03%
Chilean Government 5.50% 2020	CLP1,790,000				3,847
ARGENTINE PESOS — 0.01%
Argentina (Republic of) GDP-Linked 2035	ARS37,877				1,154
U.S. DOLLARS — 38.99%
Fannie Mae 5.00% 20172	US$ 248				268
Fannie Mae 4.00% 20242		2,040			2,164
Fannie Mae 4.00% 20242		1,976			2,095
Fannie Mae 3.50% 20252		8,593			9,025
Fannie Mae 3.50% 20252		4,084			4,289
Fannie Mae 3.50% 20252		2,224			2,335
Fannie Mae 4.00% 20252		2,419			2,565
Fannie Mae, Series 2001-4, Class GA, 9.758% 20252,3		9			10
Fannie Mae 3.50% 20262		2,605			2,755
Fannie Mae 6.00% 20262		517			581
Fannie Mae 3.00% 20272		128,580			133,201
Fannie Mae 3.00% 20272		72,840			75,264
Fannie Mae 3.50% 20272		34,040			35,715
Fannie Mae 3.50% 20272		29,540			30,943
Fannie Mae 5.50% 20332		14,739			16,200
Fannie Mae 5.50% 20342		509			558
Fannie Mae 4.50% 20352		1,027			1,092
Fannie Mae 6.00% 20352		497			550
Fannie Mae, Series 2006-56, Class OG, principal only, 0% 20362		3,444			3,120
Fannie Mae 6.00% 20362		2,590			2,894
Fannie Mae, Series 2006-49, Class PA, 6.00% 20362		851			971
Fannie Mae 6.00% 20372		11,774			12,986
Fannie Mae 6.00% 20372		7,366			8,138
Fannie Mae 6.00% 20372		6,340			6,987
Fannie Mae 6.00% 20372		3,851			4,247
Fannie Mae 6.00% 20372		2,254			2,486
Fannie Mae 6.00% 20372		781			861
Fannie Mae 6.00% 20372		778			859
Fannie Mae 6.00% 20372		459			506
Fannie Mae 6.00% 20372		446			493
Fannie Mae 6.00% 20372		345			380
Fannie Mae 6.00% 20372		319			353
Fannie Mae 5.00% 20382		888			961
Fannie Mae 5.349% 20382,3		3,058			3,261
Fannie Mae 5.50% 20382		5,142			5,621
Fannie Mae 5.50% 20382		3,803			4,164
Fannie Mae 5.50% 20382		45			49
Fannie Mae 6.00% 20382		18,775			20,708
Fannie Mae 6.00% 20382		11,201			12,354
Fannie Mae 6.00% 20382		9,733			10,735
Fannie Mae 6.00% 20382		9,110			10,083
Fannie Mae 6.00% 20382		8,828			9,780
Fannie Mae 6.00% 20382		5,960			6,573
Fannie Mae 6.00% 20382		2,747			3,023
Fannie Mae 6.00% 20382		2,346			2,588
Fannie Mae 6.00% 20382		2,218			2,446
Fannie Mae 6.00% 20382		169			186
Fannie Mae 3.542% 20392,3		1,576			1,640
Fannie Mae 3.614% 20392,3		1,175			1,229
Fannie Mae 3.835% 20392,3		433			453
Fannie Mae 3.879% 20392,3		476			499
Fannie Mae 3.886% 20392,3		442			464
Fannie Mae 3.943% 20392,3		452			475
Fannie Mae 3.95% 20392,3		678			711
Fannie Mae 5.50% 20392		5,304			5,784
Fannie Mae 5.50% 20392		1,029			1,122
Fannie Mae 6.00% 20392		31,495			34,737
Fannie Mae 6.00% 20392		2,204			2,431
Fannie Mae 3.50% 20402		5,471			5,627
Fannie Mae 3.50% 20402		3,405			3,501
Fannie Mae 4.00% 20402		9,387			9,929
Fannie Mae 4.00% 20402		9,016			9,536
Fannie Mae 4.50% 20402		10,508			11,196
Fannie Mae 4.50% 20402		7,658			8,159
Fannie Mae 4.50% 20402		5,428			5,784
Fannie Mae 5.00% 20402		8,655			9,357
Fannie Mae 6.00% 20402		8,178			9,020
Fannie Mae 6.00% 20402		3,619			3,991
Fannie Mae 6.00% 20402		1,357			1,494
Fannie Mae 3.50% 20412		15,785			16,234
Fannie Mae 3.50% 20412		1,893			1,946
Fannie Mae 4.00% 20412		37,297			39,357
Fannie Mae 4.00% 20412		19,531			20,659
Fannie Mae 4.00% 20412		18,325			19,231
Fannie Mae 4.00% 20412		16,546			17,365
Fannie Mae 4.00% 20412		9,829			10,315
Fannie Mae 4.00% 20412		4,821			5,099
Fannie Mae 4.00% 20412		3,207			3,392
Fannie Mae 4.00% 20412		3,163			3,319
Fannie Mae 4.00% 20412		2,385			2,503
Fannie Mae 4.50% 20412		17,790			18,988
Fannie Mae 4.50% 20412		11,594			12,375
Fannie Mae 4.50% 20412		10,323			11,018
Fannie Mae 4.50% 20412		4,963			5,388
Fannie Mae 4.50% 20412		2,108			2,250
Fannie Mae 5.00% 20412		13,660			15,128
Fannie Mae 5.00% 20412		5,312			5,846
Fannie Mae 3.50% 20422		68,920			70,600
Fannie Mae 4.00% 20422		56,530			59,286
Fannie Mae 4.00% 20422		15,969			16,766
Fannie Mae 4.00% 20422		7,303			7,667
Fannie Mae 4.50% 20422		1,741			1,859
Fannie Mae 5.00% 20422		23,900			25,823
Fannie Mae 6.00% 20422		129,980			143,222
Fannie Mae 6.50% 20472		1,362			1,500
Fannie Mae 6.50% 20472		608			670
Fannie Mae 6.50% 20472		299			329
Fannie Mae 7.00% 20472		661			737
Fannie Mae 6.50% 20482		1,966			2,165
U.S. Treasury 1.00% 20125		116,000			116,088
U.S. Treasury 3.00% 20121		20,735			21,223
U.S. Treasury 1.375% 2013		32,125			32,450
U.S. Treasury 2.00% 2013		17,220			17,700
U.S. Treasury 1.875% 20131		37,019			39,001
U.S. Treasury 2.75% 2013		46,000			47,765
U.S. Treasury 2.75% 2013		44,875			45,913
U.S. Treasury 3.125% 2013		49,700			51,801
U.S. Treasury 3.375% 2013		4,550			4,737
U.S. Treasury 3.625% 2013		4,200			4,359
U.S. Treasury 0.50% 2014		2,495			2,500
U.S. Treasury 1.25% 2014		138,772			141,126
U.S. Treasury 1.875% 2014		35,000			36,086
U.S. Treasury 2.00% 20141		26,475			28,335
U.S. Treasury 2.125% 2015		23,250			24,466
U.S. Treasury 1.875% 20151		14,564			16,272
U.S. Treasury 0.125% 20161		28,153			29,781
U.S. Treasury 0.875% 2016		14,900			14,835
U.S. Treasury 0.875% 2016		730			726
U.S. Treasury 1.00% 2016		11,371			11,408
U.S. Treasury 2.00% 2016		7,283			7,631
U.S. Treasury 2.625% 2016		23,000			24,641
U.S. Treasury 0.875% 2017		4,050			4,021
U.S. Treasury 2.375% 20171		26,353			30,944
U.S. Treasury 1.375% 20181		15,618			17,927
U.S. Treasury 2.625% 2018		5,000			5,373
U.S. Treasury 2.00% 2022		5,150			5,050
U.S. Treasury 2.00% 20261		12,880			15,848
U.S. Treasury 5.25% 2029		22,100			28,924
U.S. Treasury 3.375% 20321		6,435			9,829
U.S. Treasury 4.375% 2039		9,000			10,791
U.S. Treasury 2.125% 20401		8,619			11,395
U.S. Treasury 3.875% 2040		19,750			21,799
U.S. Treasury 4.375% 2040		11,500			13,791
U.S. Treasury 4.625% 2040		6,000			7,479
U.S. Treasury 3.75% 2041		20,925			22,572
U.S. Treasury 4.75% 2041		6,500			8,267
Freddie Mac 1.75% 2015		11,000			11,370
Freddie Mac 4.00% 20252		6,249			6,606
Freddie Mac 6.00% 20322		765			856
Freddie Mac, Series 3213, Class OG, principal only, 0% 20362		3,794			3,497
Freddie Mac 6.00% 20362		1,200			1,334
Freddie Mac, Series 3292, Class BO, principal only, 0% 20372		907			817
Freddie Mac 5.50% 20382		7,770			8,457
Freddie Mac 5.50% 20382		1,791			1,953
Freddie Mac 6.00% 20382		2,251			2,485
Freddie Mac 6.00% 20382		398			440
Freddie Mac 3.736% 20392,3		598			628
Freddie Mac 4.00% 20412		19,654			20,585
Freddie Mac 4.00% 20412		14,974			15,692
JPMorgan Chase & Co. 3.45% 2016		27,385			28,574
JPMorgan Chase & Co. 4.35% 2021		22,840			23,372
JPMorgan Chase & Co. 4.625% 2021		7,504			7,854
JPMorgan Chase & Co. 4.50% 2022		5,375			5,601
State of California, Various Purpose General Obligation Bonds (Federally Taxable), 6.20% 2019		18,700			21,912
State of California, Various Purpose General Obligation Bonds (Federally Taxable), 7.30% 2039		11,000			13,827
State of California, Various Purpose General Obligation Bonds (Federally Taxable), 7.60% 2040		7,770			10,093
State of California, Various Purpose General Obligation Bonds (Federally Taxable), 7.625% 2040		12,035			15,641
Polish Government 6.375% 2019		29,460			34,395
Polish Government 5.125% 2021		11,400			12,232
Polish Government 5.00% 2022		9,365			9,918
Prologis, Inc. 7.625% 2014		8,000			8,904
Prologis, Inc. 6.125% 2016		1,550			1,706
Prologis, Inc. 6.25% 2017		4,824			5,318
Prologis, Inc. 6.625% 2018		3,225			3,675
Prologis, Inc. 6.625% 2019		2,475			2,787
Prologis, Inc. 7.375% 2019		8,240			9,632
Prologis, Inc. 6.875% 2020		9,355			10,759
Telecom Italia Capital SA 4.95% 2014		124			128
Telecom Italia Capital SA 6.175% 2014		112			118
Telecom Italia Capital SA 5.25% 2015		720			745
Telecom Italia Capital SA 6.999% 2018		9,266			9,915
Telecom Italia Capital SA 6.375% 2033		6,044			5,470
Telecom Italia Capital SA 6.00% 2034		9,165			8,111
Telecom Italia Capital SA 7.20% 2036		15,694			15,302
Telecom Italia Capital SA 7.721% 2038		2,174			2,131
Gazprom OJSC 5.092% 20154		4,675			4,920
Gazprom OJSC 9.25% 2019		10,500			13,020
Gazprom OJSC 5.999% 20214		3,900			4,130
Gazprom OJSC, Series 9, 6.51% 2022		2,650			2,902
Gazprom OJSC 7.288% 20374		5,900			6,719
Gazprom OJSC 7.288% 2037		4,030			4,590
Standard Chartered PLC 3.85% 20154		8,330			8,657
Standard Chartered PLC 3.20% 20164		16,950			17,290
Standard Chartered Bank 6.40% 20174		9,000			9,885
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP7, Class A-4, 5.871% 20452,3		4,720			5,388
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C4, Class A-2, 3.341% 20462,4		6,750			7,073
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C3A, Class A-2, 3.673% 20462,4		8,500			9,008
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A-4, 5.734% 20492,3		12,530			14,159
Anheuser-Busch InBev NV 6.875% 2019		14,400			18,378
Anheuser-Busch InBev NV 7.75% 2019		9,595			12,531
Anheuser-Busch InBev NV 5.375% 2020		4,000			4,707
France Government Agency-Guaranteed, Société Finance 2.875% 20144		6,070			6,293
Société Générale 5.75% 20164		10,655			10,608
Société Générale 5.20% 20214		15,950			15,341
Deutsche Telekom International Finance BV 5.875% 2013		1,880			2,002
Deutsche Telekom International Finance BV 3.125% 20164		2,715			2,800
Deutsche Telekom International Finance BV 8.75% 20303		4,085			5,617
Deutsche Telekom International Finance BV 9.25% 2032		14,640			21,584
Hungarian Government 6.25% 2020		28,040			25,721
Hungarian Government 7.625% 2041		6,460			5,879
United Mexican States Government Global, Series A, 6.375% 2013		151			158
United Mexican States Government Global 5.95% 2019		8,920			10,740
United Mexican States Government Global, Series A, 5.125% 2020		3,000			3,457
United Mexican States Government Global, Series A, 3.625% 2022		3,250			3,331
United Mexican States Government Global, Series A, 6.05% 2040		7,520			9,099
United Mexican States Government Global, Series A, 5.75% 2110		3,000			3,097
AXA SA 8.60% 2030		18,550			20,492
AXA SA, junior subordinated 6.463% (undated)3,4		9,575			8,402
Wells Fargo & Co., Series I, 3.50% 2022		29,100			28,696
Murray Street Investment Trust I 4.647% 2017		11,900			11,919
Goldman Sachs Group, Inc. 7.50% 2019		10,000			11,438
Goldman Sachs Group, Inc. 5.75% 2022		3,705			3,817
Goldman Sachs Group, Inc. 6.25% 2041		1,160			1,146
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 5.125% 20144		975			1,039
Westfield Group 7.50% 20144		1,645			1,817
Westfield Group 5.75% 20154		710			779
Westfield Group 5.70% 20164		5,300			5,838
Westfield Group 7.125% 20184		12,630			14,895
WEA Finance LLC 4.625% 20214		3,630			3,678
HBOS PLC 6.75% 20184		21,755			20,439
HBOS PLC 6.00% 20334		8,645			6,573
HSBC Finance Corp. 0.918% 20163		9,900			8,979
HSBC Holdings PLC 4.125% 20204		11,990			12,265
HSBC Holdings PLC 4.00% 2022		5,410			5,371
Citigroup Inc. 4.587% 2015		3,925			4,137
Citigroup Inc. 4.75% 2015		9,000			9,482
Citigroup Inc. 4.45% 2017		10,100			10,589
Citigroup Inc. 6.125% 2018		2,000			2,244
Croatian Government 6.75% 2019		6,000			6,031
Croatian Government 6.75% 20194		4,315			4,338
Croatian Government 6.625% 20204		7,095			7,060
Croatian Government 6.375% 20214		6,880			6,616
CEMEX Finance LLC 9.50% 2016		9,925			9,951
CEMEX Finance LLC 9.50% 20164		2,200			2,206
CEMEX SA 9.25% 20204		12,799			11,871
Roche Holdings Inc. 6.00% 20194		13,770			16,819
Roche Holdings Inc. 7.00% 20394		5,040			6,902
Kimco Realty Corp. 6.00% 2012		1,000			1,022
Pan Pacific Retail Properties, Inc. 6.125% 2013		1,230			1,267
Kimco Realty Corp., Series C, 4.82% 2014		1,000			1,043
Kimco Realty Corp., Series C, 4.904% 2015		1,360			1,424
Kimco Realty Corp. 5.584% 2015		2,003			2,156
Kimco Realty Corp. 5.70% 2017		500			548
Kimco Realty Corp. 4.30% 2018		4,740			4,822
Kimco Realty Corp. 6.875% 2019		9,510			11,132
Williams Partners L.P. and Williams Partners Finance Corp. 3.80% 2015		2,805			2,983
Williams Partners L.P. 4.125% 2020		1,625			1,672
Williams Partners L.P. and Williams Partners Finance Corp. 5.25% 2020		15,340			16,933
Williams Partners L.P. 4.00% 2021		1,560			1,579
Iberdrola Finance Ireland 3.80% 20144		4,470			4,590
Scottish Power PLC 5.375% 2015		9,700			10,507
Iberdrola Finance Ireland 5.00% 20194		5,000			5,072
Scottish Power PLC 5.81% 2025		2,500			2,619
Korea Development Bank 5.30% 2013		2,200			2,259
Korea Development Bank 8.00% 2014		6,250			6,875
Korea Development Bank 3.875% 2017		12,800			13,278
Petrobras International 5.75% 2020		7,470			8,310
Petrobras International 5.375% 2021		5,090			5,504
Petrobras International 6.875% 2040		6,760			7,987
Telefónica Emisiones, SAU 5.134% 2020		16,975			16,256
Telefónica Emisiones, SAU 5.462% 2021		4,205			4,094
Telefónica Europe BV 8.25% 2030		1,295			1,413
Volkswagen International Finance NV 1.625% 20134		4,100			4,136
Volkswagen International Finance NV 2.875% 20164		2,900			2,988
Volkswagen International Finance NV 2.375% 20174		5,000			5,022
Volkswagen International Finance NV 4.00% 20204		8,950			9,406
Comcast Corp. 5.30% 2014		3,000			3,228
Comcast Corp. 5.875% 2018		3,255			3,856
Comcast Corp. 6.95% 2037		5,035			6,378
Comcast Corp. 6.40% 2038		1,750			2,088
Comcast Corp. 6.40% 2040		4,500			5,537
Bermudan Government 5.603% 20204		16,785			19,041
Bermudan Government 5.603% 2020		1,800			2,042
Russian Federation 3.25% 20174		8,000			8,019
Russian Federation 5.00% 2020		5,100			5,461
Russian Federation 7.50% 20302		3,824			4,594
Russian Federation 5.625% 20424		2,500			2,492
United States Government Agency-Guaranteed (FDIC insured), Bank of America Corp., Series L, 3.125% 2012		6,500			6,539
Bank of America Corp. 3.75% 2016		5,250			5,280
Bank of America Corp. 5.75% 2017		1,020			1,095
Bank of America Corp. 5.625% 2020		875			913
Bank of America Corp. 5.00% 2021		6,625			6,645
Volvo Treasury AB 5.95% 20154		18,805			20,158
ERP Operating LP 5.25% 2014		3,000			3,251
ERP Operating LP 5.125% 2016		1,110			1,217
ERP Operating LP 4.75% 2020		9,200			9,837
ERP Operating LP 4.625% 2021		5,285			5,573
Turkey (Republic of) 5.625% 2021		9,100			9,541
Turkey (Republic of) 8.00% 2034		4,200			5,271
Turkey (Republic of) 6.75% 2040		4,500			4,927
UBS AG 5.75% 2018		13,175			14,440
UBS AG 4.875% 2020		5,080			5,287
Enbridge Energy Partners, LP, Series B, 6.50% 2018		10,445			12,665
Enbridge Energy Partners, LP 9.875% 2019		3,250			4,328
Enbridge Energy Partners, LP 5.20% 2020		2,210			2,456
Morgan Stanley 3.80% 2016		7,500			7,306
Morgan Stanley, Series F, 5.625% 2019		10,750			10,638
Morgan Stanley, Series F, 5.75% 2021		1,355			1,332
Daimler Finance NA LLC 2.625% 20164		6,100			6,300
Daimler Finance NA LLC 3.00% 20164		1,450			1,511
DaimlerChrysler North America Holding Corp. 8.50% 2031		7,850			11,432
Abu Dhabi National Energy Co. PJSC (TAQA) 5.875% 20164		5,500			6,077
Abu Dhabi National Energy Co. PJSC (TAQA) 7.25% 20184		8,000			9,341
Abu Dhabi National Energy Co. PJSC (TAQA) 5.875% 20214		3,275			3,504
CEZ AS 4.25% 04-03-224		18,870			18,832
Gilead Sciences, Inc. 2.40% 2014		1,880			1,946
Gilead Sciences, Inc. 3.05% 2016		2,500			2,618
Gilead Sciences, Inc. 4.40% 2021		10,925			11,485
Gilead Sciences, Inc. 5.65% 2041		2,250			2,405
Developers Diversified Realty Corp. 5.375% 2012		3,950			3,990
Developers Diversified Realty Corp. 5.50% 2015		3,023			3,116
Developers Diversified Realty Corp. 9.625% 2016		1,510			1,829
Developers Diversified Realty Corp. 7.50% 2017		5,000			5,678
Developers Diversified Realty Corp. 4.75% 2018		2,860			2,966
Developers Diversified Realty Corp. 7.875% 2020		735			870
Pemex Project Funding Master Trust 5.75% 2018		5,750			6,497
Pemex Project Funding Master Trust 4.875% 20224		1,300			1,368
Pemex Project Funding Master Trust, Series 13, 6.625% 2035		6,750			7,762
Pemex Project Funding Master Trust 6.50% 20414		2,470			2,791
Ras Laffan Liquefied Natural Gas III 5.50% 20144		5,300			5,731
Ras Laffan Liquefied Natural Gas II 5.298% 20202,4		3,507			3,770
Ras Laffan Liquefied Natural Gas III 5.838% 20272,4		8,000			8,680
Ghana (Republic of) 8.50% 2017		15,500			17,825
Express Scripts Inc. 5.25% 2012		2,080			2,098
Express Scripts Inc. 3.125% 2016		15,060			15,694
Indonesia (Republic of) 6.875% 2018		5,450			6,526
Indonesia (Republic of) 4.875% 20214		3,835			4,175
Indonesia (Republic of) 4.875% 2021		2,190			2,384
Indonesia (Republic of) 8.50% 2035		1,625			2,425
Indonesia (Republic of) 7.75% 20384		935			1,302
Indonesia (Republic of) 7.75% 2038		310			432
Lithuania (Republic of) 6.75% 2015		3,930			4,264
Lithuania (Republic of) 6.125% 20214		7,155			7,692
Lithuania (Republic of) 6.625% 20224		4,750			5,278
HSBK (Europe) BV 7.25% 20174		1,865			1,924
HSBK (Europe) BV 7.25% 20214		14,525			15,042
Veolia Environnement 6.00% 2018		15,075			16,834
Brazil (Federal Republic of) Global 6.00% 2017		4,500			5,344
Brazil (Federal Republic of) Global 4.875% 2021		5,000			5,685
Brazil (Federal Republic of) Global 5.625% 2041		4,715			5,458
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A-4, 5.225% 20442,3		5,055			5,645
Citigroup-Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A-5, 5.617% 20482		9,265			10,470
BBVA Bancomer SA 4.50% 20164		12,000			12,420
BBVA Bancomer SA, junior subordinated 7.25% 20204		2,010			2,136
BBVA Bancomer SA 6.50% 20214		1,455			1,524
E.ON International Finance BV 5.80% 20184		11,000			12,832
E.ON International Finance BV 6.65% 20384		2,500			3,211
National Rural Utilities Cooperative Finance Corp. 5.50% 2013		2,125			2,253
National Rural Utilities Cooperative Finance Corp. 3.875% 2015		7,750			8,454
National Rural Utilities Cooperative Finance Corp. 10.375% 2018		3,250			4,718
VEB Finance Ltd. 6.902% 20204		9,045			9,814
VEB Finance Ltd. 6.80% 20254		5,000			5,244
State of Qatar 4.50% 20224		3,500			3,671
State of Qatar 9.75% 2030		7,250			11,364
Latvia (Republic of) 5.25% 20174		8,695			8,978
Latvia (Republic of) 5.25% 2021		5,750			5,859
British American Tobacco International Finance PLC 9.50% 20184		10,485			14,317
AT&T Inc. 1.60% 2017		7,380			7,345
AT&T Inc. 5.35% 2040		6,500			6,916
Venezuela (Republic of) 8.50% 2014		2,000			2,015
Venezuela (Republic of) 5.75% 2016		250			223
Venezuela (Republic of) 12.75% 20222		3,000			3,165
Venezuela (Republic of) 9.25% 2027		5,030			4,462
Venezuela (Republic of) 9.25% 2028		780			651
Venezuela (Republic of) 9.375% 2034		4,025			3,371
Intesa Sanpaolo SpA 6.50% 20214		14,195			13,732
Simon Property Group, LP 6.75% 2014		3,645			4,037
Simon Property Group, LP 4.20% 2015		2,125			2,276
Simon Property Group, LP 5.875% 2017		925			1,069
Simon Property Group, LP 10.35% 2019		4,250			5,861
Royal Bank of Scotland Group PLC 4.375% 2016		5,000			5,110
Royal Bank of Scotland Group PLC 4.70% 2018		1,200			1,046
Royal Bank of Scotland PLC 6.125% 2021		1,195			1,281
RBS Capital Trust II 6.425% noncumulative trust (undated)3,6		7,130			4,920
Royal Bank of Scotland Group PLC, junior subordinated 6.99% (undated)3,4,6		900			738
StatoilHydro ASA 1.80% 2016		4,000			4,063
StatoilHydro ASA 5.25% 2019		2,500			2,934
Statoil ASA 3.15% 2022		6,000			6,062
Enersis SA 7.375% 2014		11,935			13,005
TransCanada PipeLines Ltd. 6.50% 2018		5,000			6,176
TransCanada PipeLines Ltd. 7.125% 2019		3,035			3,852
TransCanada PipeLines Ltd. 7.625% 2039		2,000			2,831
BNP Paribas 5.00% 2021		8,605			8,697
BNP Paribas, junior subordinated 7.195% (undated)3,4		4,600			4,128
UniCredito Italiano SpA 6.00% 20174		8,605			7,655
HVB Funding Trust I, junior subordinated 8.741% 20314		4,000			3,540
HVB Funding Trust III, junior subordinated 9.00% 20314		1,810			1,620
Israeli Government 5.125% 2019		11,550			12,761
ArcelorMittal 4.50% 2017		6,500			6,525
ArcelorMittal 5.50% 2021		2,765			2,718
ArcelorMittal 6.25% 2022		3,335			3,377
First Data Corp. 9.875% 2015		273			274
First Data Corp. 9.875% 2015		72			73
First Data Corp. 10.55% 20157		116			118
First Data Corp., Term Loan D, 5.242% 20172,3,8		3,010			2,887
First Data Corp. 12.625% 2021		4,011			4,041
First Data Corp. 8.75% 20223,4,7		5,006			4,856
Santander Issuances, SA Unipersonal 6.50% 20193,4		12,700			12,217
National Grid PLC 6.30% 2016		10,575			12,211
South Africa (Republic of) 5.50% 2020		10,150			11,368
Bahrain Government 5.50% 2020		10,780			10,726
Bahrain Government 5.50% 20204		630			627
Republic of Belarus 8.95% 2018		12,500			11,325
Electricité de France SA 5.50% 20144		5,000			5,365
Electricité de France SA 4.60% 20204		2,200			2,333
Electricité de France SA 6.95% 20394		2,625			3,118
Realogy Corp., Letter of Credit, 4.691% 20162,3,8		92			86
Realogy Corp., Term Loan B, 4.77% 20162,3,8		1,060			990
Realogy Corp., Second Lien Term Loan A, 13.50% 20172,8		6,150			6,356
Realogy Corp. 7.875% 20194		3,225			3,241
Kraft Foods Inc. 6.125% 2018		5,975			7,177
Kraft Foods Inc. 5.375% 2020		3,000			3,473
Development Bank of Kazakhstan 5.50% 20154		9,820			10,556
Norfolk Southern Corp. 5.75% 2016		5,515			6,384
Norfolk Southern Corp. 3.00% 2022		4,000			3,939
Tennessee Valley Authority 5.88% 2036		250			323
Tennessee Valley Authority 5.25% 2039		8,250			9,925
International Business Machines Corp. 1.95% 2016		9,965			10,234
Michaels Stores, Inc. 11.375% 2016		4,700			5,018
Michaels Stores, Inc. 13.00% 2016		1,950			2,062
Michaels Stores, Inc. 7.75% 2018		2,900			3,103
Amgen Inc. 2.50% 2016		5,125			5,271
Amgen Inc. 5.15% 2041		4,750			4,772
Shell International Finance BV 4.00% 2014		9,340			9,969
Nextel Communications, Inc., Series E, 6.875% 2013		375			377
Nextel Communications, Inc., Series F, 5.95% 2014		7,895			7,934
Nextel Communications, Inc., Series D, 7.375% 2015		650			630
Sprint Nextel Corp. 6.00% 2016		1,000			897
Macy's Retail Holdings, Inc. 7.875% 20153		6,080			7,159
Macy's Retail Holdings, Inc. 3.875% 2022		2,585			2,597
CS First Boston Mortgage Securities Corp., Series 2004-C5, Class A-3, 4.499% 20372		1,739			1,744
CS First Boston Mortgage Securities Corp., Series 2004-C4, Class A-4, 4.283% 20392		23			23
CS First Boston Mortgage Securities Corp., Series 2006-C5, Class A-3, 5.311% 20392		7,165			7,929
Kroger Co. 7.50% 2014		5,250			5,855
Kroger Co. 2.20% 2017		2,460			2,501
Kroger Co. 6.80% 2018		1,000			1,229
MGM Resorts International 6.625% 2015		4,100			4,233
MGM Resorts International 7.50% 2016		1,500			1,552
MGM Resorts International 9.00% 2020		3,250			3,632
Novartis Securities Investment Ltd. 5.125% 2019		8,000			9,381
Barclays Bank PLC 5.125% 2020		8,875			9,295
Romanian Government 6.75% 20224		8,850			9,292
Time Warner Cable Inc. 6.75% 2018		3,985			4,867
Time Warner Cable Inc. 5.00% 2020		4,000			4,422
SUPERVALU INC. 7.50% 2014		1,000			1,020
SUPERVALU INC. 8.00% 2016		1,465			1,542
Albertson's, Inc. 7.45% 2029		3,000			2,310
Albertson's, Inc. 8.00% 2031		5,675			4,327
American International Group, Inc. 3.00% 2015		5,000			5,038
American International Group, Inc. 3.80% 2017		3,825			3,877
Virgin Media Finance PLC, Series 1, 9.50% 2016		3,400			3,850
Virgin Media Secured Finance PLC 5.25% 2021		4,570			4,920
Phillips 66 2.95% 20174		2,420			2,462
Phillips 66 4.30% 20224		2,325			2,369
Phillips 66 5.875% 20424		3,820			3,916
QGOG Atlantic/Alaskan Rigs Ltd. 5.25% 20182,4		8,617			8,703
Colbun SA 6.00% 20204		8,150			8,699
Burlington Northern Santa Fe LLC 5.75% 2018		1,160			1,379
Burlington Northern Santa Fe LLC 4.70% 2019		1,960			2,195
Burlington Northern Santa Fe LLC 3.45% 2021		5,000			5,088
McDonald's Corp. 3.50% 2020		8,005			8,589
Greenwich Capital Commercial Funding Corp., Series 2005-GG5, Class A-2, 5.117% 20372		1,716			1,719
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A-4, 5.883% 20382,3		3,785			4,306
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A-4, 5.444% 20392		2,250			2,485
CenterPoint Energy Resources Corp. 4.50% 2021		7,915			8,448
Regions Financial Corp. 7.75% 2014		5,289			5,825
Regions Financial Corp. 5.20% 2015		1,050			1,082
Regions Financial Corp. 5.75% 2015		1,161			1,228
Reliance Holdings Ltd. 5.40% 20224		1,700			1,694
Reliance Holdings Ltd. 6.25% 20404		7,000			6,388
DBUBS Mortgage Trust, Series 2011-LC1A, Class A1, 3.742% 20462,4		4,373			4,654
DBUBS Mortgage Trust, Series 2011-LC1A, Class A3, 5.002% 20462,4		3,000			3,398
Aries Vermögensverwaltungs GmbH, Series C, 9.60% 2014		6,500			7,997
Jaguar Land Rover PLC 7.75% 20184		5,200			5,356
Jaguar Land Rover PLC 8.125% 20214		2,500			2,575
Hospitality Properties Trust 6.30% 2016		1,000			1,090
Hospitality Properties Trust 6.70% 2018		6,055			6,752
Nordea Bank, Series 2, 3.70% 20144		5,000			5,214
Nordea Bank AB 3.125% 20174		2,500			2,505
Verizon Communications Inc. 4.75% 2041		2,425			2,456
Verizon Communications Inc. 6.00% 2041		4,425			5,245
Toys "R" Us-Delaware, Inc. 7.375% 20164		2,000			2,060
Toys "R" Us Property Co. II, LLC 8.50% 2017		3,800			3,985
Toys "R" Us Property Co. I, LLC 10.75% 2017		500			550
Toys "R" Us-Delaware, Inc., Term Loan B2, 5.25% 20182,3,8		1,017			1,010
Colombia (Republic of) Global 4.375% 2021		5,130			5,605
Colombia (Republic of) Global 10.375% 2033		484			819
Colombia (Republic of) Global 7.375% 2037		715			1,008
Limited Brands, Inc. 7.00% 2020		811			908
Limited Brands, Inc. 6.625% 2021		5,984			6,515
DAE Aviation Holdings, Inc. 11.25% 20154		7,033			7,367
Odebrecht Drilling Norbe VIII/IX Ltd 6.35% 20212,4		6,860			7,340
Boyd Gaming Corp. 6.75% 2014		3,025			3,044
Boyd Gaming Corp. 7.125% 2016		2,175			2,110
Boyd Gaming Corp. 9.125% 2018		2,000			2,093
Banco de Crédito del Perú 5.375% 20204		7,000			7,210
Enel Finance International SA 3.875% 20144		7,129			7,200
American Tower Corp. 7.00% 2017		6,150			7,173
Merrill Lynch Mortgage Trust, Series 2004-BPC1, Class A-5, 4.855% 20412,3		4,825			5,193
Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class AM, 4.805% 20432,3		1,655			1,773
Elan Finance PLC and Elan Finance Corp. 8.75% 2016		6,160			6,815
Gabonese Republic 8.20% 20174		5,500			6,717
Clearwire Communications and Clearwire Finance, Inc., Series A, 12.00% 20154		3,925			3,886
Clearwire Communications and Clearwire Finance, Inc., Series B, 12.00% 20154		1,925			1,906
Clearwire Communications and Clearwire Finance, Inc. 12.00% 20174		1,000			893
Australia Government Agency-Guaranteed, Commonwealth Bank of Australia 2.90% 20144		6,365			6,680
Teekay Corp. 8.50% 2020		6,400			6,672
SABMiller Holdings Inc. 2.45% 20174		2,470			2,503
SABMiller Holdings Inc. 4.95% 20424		4,000			4,147
Wind Acquisition SA 11.75% 20174		4,750			4,703
Wind Acquisition SA 7.25% 20184		2,050			1,937
Univision Communications Inc., Term Loan, 4.491% 20172,3,8		3,232			3,002
Univision Communications Inc. 8.50% 20214		3,500			3,483
AES Corp. 7.75% 2015		3,275			3,668
AES Corp. 8.00% 2020		2,440			2,812
Hanesbrands Inc., Series B, 4.146% 20143		1,435			1,440
Hanesbrands Inc. 8.00% 2016		4,450			4,917
Woodside Finance Ltd. 4.60% 20214		6,040			6,291
Rio Tinto Finance (USA) Ltd. 2.50% 2016		3,000			3,112
Rio Tinto Finance (USA) Ltd. 4.125% 2021		3,000			3,170
Frontier Communications Corp. 7.875% 2015		1,500			1,620
Frontier Communications Corp. 8.25% 2017		2,550			2,754
Frontier Communications Corp. 8.50% 2020		1,775			1,877
Esterline Technologies Corp. 6.625% 2017		3,800			3,952
Esterline Technologies Corp. 7.00% 2020		2,000			2,220
US Investigations Services, Inc., Term Loan B, 2.992% 20152,3,8		1,233			1,183
US Investigations Services, Inc., Term Loan B, 7.75% 20152,3,8		2,135			2,141
US Investigations Services, Inc. 10.50% 20154		1,900			1,815
US Investigations Services, Inc. 11.75% 20164		1,035			986
BG Energy Capital PLC 4.00% 20214		5,840			6,100
MacDermid 9.50% 20174		5,850			6,099
Vodafone Group PLC, Term Loan, 6.875% 20152,7,8		3,156			3,188
Vodafone Group PLC, Term Loan B, 6.25% 20162,7,8,9		2,759			2,779
J.C. Penney Co., Inc. 5.75% 2018		5,755			5,920
Koninklijke KPN NV 8.375% 2030		4,600			5,909
Georgia Gulf Corp. 9.00% 20174		5,275			5,882
Pfizer Inc 6.20% 2019		3,250			4,072
Pfizer Inc 7.20% 2039		1,250			1,807
C&S Group Enterprises LLC 8.375% 20174		5,539			5,857
Ply Gem Industries, Inc. 13.125% 2014		1,000			1,015
Ply Gem Industries, Inc. 8.25% 2018		4,675			4,728
Denbury Resources Inc. 9.75% 2016		2,750			3,032
Denbury Resources Inc. 8.25% 2020		2,292			2,573
Banc of America Commercial Mortgage Inc., Series 2006-4, Class A-4, 5.634% 20462		3,790			4,298
Banc of America Commercial Mortgage Inc., Series 2007-3, Class A-4, 5.633% (undated)2,3		1,120			1,248
CEVA Group PLC 11.625% 20164		2,775			2,955
CEVA Group PLC 8.375% 20174		200			199
CEVA Group PLC 11.50% 20184		2,350			2,338
Progress Energy, Inc. 6.05% 2014		5,000			5,485
Marks and Spencer Group PLC 6.25% 20174		4,500			4,950
Marks and Spencer Group PLC 7.125% 20374		500			517
Wynn Las Vegas, LLC and Wynn Capital Corp. 7.75% 2020		4,950			5,464
Wal-Mart Stores, Inc. 4.875% 2040		5,000			5,460
Revel Entertainment, Term Loan B, 9.00% 20172,3,8		5,500			5,450
Tops Holding Corp. and Tops Markets, LLC. 10.125% 2015		4,990			5,352
Target Corp. 6.00% 2018		4,375			5,338
Denmark Government Agency-Guaranteed, Danish Finance Co. 2.45% 20124		5,300			5,321
NCL Corp. Ltd. 11.75% 2016		3,975			4,621
NCL Corp. Ltd. 9.50% 2018		550			595
Time Warner Inc. 4.75% 2021		2,320			2,552
Time Warner Inc. 6.25% 2041		2,330			2,664
Cardinal Health, Inc. 4.625% 2020		4,680			5,165
Toronto-Dominion Bank 2.375% 2016		5,000			5,133
NBCUniversal Media, LLC 5.15% 2020		4,500			5,100
Warner Music Group 9.50% 2016		2,375			2,601
Warner Music Group 9.50% 20164		2,275			2,491
Voto-Votorantim Ltd 6.75% 20214		4,450			5,028
Chilean Government 3.25% 2021		4,925			5,024
Quintiles, Term Loan B, 5.00% 20182,3,8		4,963			4,980
Clear Channel Worldwide Holdings, Inc., Series B, 9.25% 2017		4,500			4,956
Brandywine Operating Partnership, LP 5.40% 2014		2,500			2,660
Brandywine Operating Partnership, LP 4.95% 2018		2,225			2,271
New Zealand Government Agency-Guaranteed, Westpac Securities Co. 3.45% 20144		4,655			4,920
NV Energy, Inc 6.25% 2020		4,500			4,904
Associated Materials, LLC and AMH New Finance, Inc. 9.125% 2017		5,000			4,888
Continental Resources Inc. 8.25% 2019		725			814
Continental Resources Inc. 7.375% 2020		425			474
Continental Resources Inc. 7.125% 2021		3,200			3,568
PTS Acquisition Corp. 9.50% 20157		4,636			4,787
Union Pacific Corp. 5.70% 2018		2,000			2,394
Union Pacific Corp. 6.15% 2037		1,990			2,383
Smithfield Foods, Inc. 10.00% 2014		3,000			3,525
Smithfield Foods, Inc. 7.75% 2017		1,075			1,220
ARAMARK Corp. 8.50% 2015		3,100			3,181
ARAMARK Corp. 8.625% 20163,4,7		1,500			1,541
CONSOL Energy Inc. 8.00% 2017		3,725			3,902
CONSOL Energy Inc. 8.25% 2020		775			814
Sri Lanka (Republic of) 8.25% 2012		350			360
Sri Lanka (Republic of) 6.25% 20214		4,250			4,251
VWR Funding, Inc., Series B, 10.25% 20157		4,434			4,611
Needle Merger Sub Corp. 8.125% 20194		4,565			4,611
Hawker Beechcraft Acquisition Co., LLC, Term Loan E, 14.00% 20122,3,8,9		527			527
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 2.37% 20142,3,8		137			102
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 2.47% 20142,3,8		2,222			1,656
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 10.50% 20142,3,8		2,493			1,870
Hawker Beechcraft Acquisition Co., LLC 8.50% 2015		1,225			172
Hawker Beechcraft Acquisition Co., LLC 8.875% 20157		1,815			254
MBNA Credit Card Master Note Trust, Series 2004-1, Class B, 4.45% 20162		4,250			4,508
Australia Government Agency-Guaranteed, Australia and New Zealand Banking Group Ltd. 3.25% 20124		4,500			4,500
Overseas Shipholding Group, Inc. 8.125% 2018		5,825			4,427
Tower Automotive Holdings 10.625% 20174		4,027			4,389
PTT Exploration & Production Ltd 5.692% 20214		4,045			4,352
Nortek Inc. 10.00% 2018		4,050			4,313
Ingles Markets, Inc. 8.875% 2017		3,950			4,296
Host Marriott, LP, Series O, 6.375% 2015		500			511
Host Hotels & Resorts LP 9.00% 2017		2,075			2,306
Host Hotels & Resorts LP 6.00% 2020		1,350			1,438
Navios Maritime Acquisition Corporation and Navios Acquisition Finance (US) Inc. 8.625% 2017		4,200			3,801
Navios Maritime Holdings Inc. and Navios Maritime Finance II (US) Inc. 8.125% 2019		500			431
Government National Mortgage Assn. 3.50% 20252		2,125			2,278
Government National Mortgage Assn. 3.50% 20252		1,805			1,935
Dominican Republic 7.50% 20212,4		4,000			4,150
Stater Bros. Holdings Inc. 7.75% 2015		4,025			4,131
FMG Resources 7.00% 20154		4,000			4,100
Concho Resources Inc. 8.625% 2017		1,250			1,375
Concho Resources Inc. 7.00% 2021		2,500			2,694
The Export-Import Bank of Korea 4.375% 2021		4,000			4,051
Pernod Ricard SA 2.95% 20174		4,000			4,044
Schering-Plough Corp. 6.00% 2017		3,275			4,043
Cricket Communications, Inc. 10.00% 2015		1,325			1,401
Cricket Communications, Inc. 7.75% 2016		2,425			2,571
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20192		973			1,045
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20202		236			254
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20222		2,425			2,665
CIT Group Inc., Series C, 4.75% 20154		3,900			3,944
Crown Castle International Corp. 9.00% 2015		2,525			2,790
Crown Castle International Corp. 7.75% 20174		500			548
Crown Castle International Corp. 7.125% 2019		500			549
Public Service Co. of Colorado 3.20% 2020		3,675			3,816
Unum Group 5.625% 2020		3,600			3,815
Altria Group, Inc. 9.95% 2038		2,500			3,804
PETCO Animal Supplies, Inc. 9.25% 20184		3,450			3,804
CoBank ACB 7.875% 20184		430			510
CoBank ACB 1.074% 20223,4		4,275			3,263
Ireland Government Agency-Guaranteed, Irish Life & Permanent 3.60% 20134		3,900			3,759
Province of Buenos Aires 10.875% 20212,4		5,000			3,750
Staples, Inc. 9.75% 2014		3,250			3,694
South Korean Government 5.75% 2014		3,400			3,669
Banco Mercantil del Norte, SA, junior subordinated 6.862% 20213,4		3,500			3,649
Digicel Group Ltd. 12.00% 2014		300			336
Digicel Group Ltd. 12.00% 20144		200			224
Digicel Group Ltd. 8.875% 20154		2,000			2,045
Digicel Group Ltd. 10.50% 20184		850			948
EDP Finance BV. 6.00% 20184		4,000			3,538
Synovus Financial Corp. 7.875% 2019		3,415			3,535
Alkermes, Inc., Term Loan B, 6.75% 20172,3,8		2,070			2,114
Alkermes, Inc., Term Loan B, 9.50% 20182,3,8		1,295			1,347
International Paper Co. 7.30% 2039		2,810			3,423
Energy Transfer Partners, LP 7.50% 2020		3,050			3,401
ACE INA Holdings Inc. 5.875% 2014		1,510			1,664
ACE INA Holdings Inc. 2.60% 2015		1,625			1,691
Mohegan Tribal Gaming Authority 11.00% 20183,4,7		4,500			3,330
Grifols Inc. 8.25% 2018		3,000			3,263
Petroplus Finance Ltd. 6.75% 20144		3,450			1,363
Petroplus Finance Ltd. 7.00% 20174		3,960			1,564
Petroplus Finance Ltd. 9.375% 20194,6		800			316
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 7.25% 2017		3,000			3,233
Consumers Energy Co., First Mortgage Bonds, 6.125% 2019		2,650			3,194
American Tower Trust I, Series 2007-1A, Class A-FX, 5.42% 20372,4		3,000			3,172
H&E Equipment Services, Inc. 8.375% 2016		3,000			3,105
Academy, Ltd. 9.25% 20194		3,000			3,094
Burlington Coat Factory Warehouse Corp., Term Loan B, 6.25% 20172,3,8		3,064			3,089
Serena Software, Inc. 10.375% 2016		2,936			3,050
Kinder Morgan Energy Partners, LP 6.85% 2020		2,540			3,030
Consolidated Edison Company of New York, Inc., Series 2012 A, 4.20% 2042		3,060			3,019
News America Inc. 6.15% 2041		2,630			3,015
ConvaTec Healthcare 10.50% 20184		2,905			2,999
Peugeot SA 4.375% 20164		3,000			2,986
Forest Oil Corp. 7.25% 2019		3,000			2,948
JMC Steel Group Inc. 8.25% 20184		2,800			2,926
Ashtead Capital, Inc. 9.00% 20164		2,750			2,884
UDR, Inc., Series A, 5.25% 2015		2,680			2,878
Boston Scientific Corp. 6.00% 2020		2,500			2,873
Argentina (Republic of) GDP-Linked 2035		21,000			2,783
Bon-Ton Department Stores, Inc. 10.25% 2014		3,150			2,764
TXU, Term Loan, 3.743% 20142,3,8		961			589
TXU, Term Loan, 4.743% 20172,3,8		3,846			2,146
Ford Motor Credit Co. 8.70% 2014		500			567
Ford Motor Credit Co. 5.625% 2015		2,000			2,132
SunGard Data Systems Inc. 7.375% 2018		2,500			2,669
LightSquared, Term Loan B, 12.00% 20142,7,8		5,845			2,661
CenterPoint Energy Transition Bond Co. III, LLC, Series 2008, Class A-2, 5.234% 20232		2,225			2,639
Hughes Satellite Systems Corp. 6.50% 2019		2,500			2,625
Australia Government Agency-Guaranteed, National Australia Bank 3.375% 20144		2,500			2,621
Symbion Inc. 8.00% 2016		2,625			2,612
QBE Capital Funding III LP 7.25% 20413,4		2,000			1,888
QBE Capital Funding II LP 6.797% (undated)3,4		750			675
Delhaize Group 6.50% 2017		500			578
Delhaize Group 5.70% 2040		2,129			1,969
SRA International, Inc., Term Loan B, 6.50% 20182,3,8		2,544			2,541
Rite Aid Corp. 9.75% 2016		570			634
Rite Aid Corp. 8.00% 2020		1,625			1,879
Cliffs Natural Resources Inc. 4.875% 2021		2,420			2,510
Edison Mission Energy 7.50% 2013		155			128
Edison Mission Energy 7.20% 2019		3,175			1,984
Edison Mission Energy 7.625% 2027		650			388
Arch Coal, Inc. 7.00% 20194		2,675			2,481
Goodman Funding Pty Ltd. 6.00% 20224		2,475			2,475
Seneca Gaming Corp. 8.25% 20184		2,400			2,466
General Electric Capital Corp. 4.65% 2021		2,305			2,457
Newcrest Finance Pty Ltd. 4.45% 20214		2,220			2,246
AES Panamá, SA 6.35% 20164		2,000			2,180
Coventry Health Care, Inc. 6.125% 2015		2,000			2,167
GlaxoSmithKline Capital Inc. 4.85% 2013		2,000			2,100
Biogen Idec Inc. 6.00% 2013		2,000			2,090
PETRONAS Capital Ltd. 7.00% 20124		2,050			2,070
New York Life Global Funding 4.65% 20134		1,940			2,022
Cisco Systems, Inc. 0.724% 20143		2,000			2,011
United States Government Agency-Guaranteed (FDIC insured), PNC Funding Corp. 2.30% 2012		2,000			2,010
El Paso Pipeline Partners Operating Co., LLC 5.00% 2021		1,815			1,890
Alpha Natural Resources, Inc. 6.00% 2019		2,050			1,866
Thomson Reuters Corp. 5.95% 2013		1,750			1,857
Neiman Marcus Group, Inc., Term Loan B, 4.75% 20182,3,8		1,800			1,800
Canadian Natural Resources Ltd. 5.70% 2017		1,500			1,778
Banque Centrale de Tunisie 7.375% 2012		1,750			1,768
TNK-BP Finance SA 7.50% 20164		1,500			1,699
Citibank Credit Card Issuance Trust, Series 2008, Class A5, 4.85% 20152		1,500			1,567
J.P. Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP8, Class A-4, 5.399% 20452		1,375			1,557
Enterprise Products Operating LLC 4.05% 2022		1,460			1,514
France Télécom 4.375% 2014		1,390			1,485
Husky Energy Inc. 5.90% 2014		1,300			1,424
CNA Financial Corp. 7.35% 2019		1,200			1,402
Old Dominion Electric Cooperative, Series 2003-A, 5.676% 20282		1,062			1,194
Allison Transmission Holdings, Inc. 11.00% 20154		1,087			1,150
GE Commercial Mortgage Corp., Series 2006-C1, Class A-4, 5.329% 20442,3		1,000			1,112
Canadian National Railway Co. 4.95% 2014		1,000			1,075
Northwest Airlines, Inc., Term Loan B, 3.97% 20132,3,8		215			216
Northwest Airlines, Inc., Term Loan A, 2.22% 20182,3,8		904			854
RBS Global, Inc. and Rexnord LLC 11.75% 2016		900			955
McKesson Corp. 3.25% 2016		740			793
Morgan Stanley Capital I Trust, Series 2005-HQ7, Class A-2, 5.201% 20422,3		770			777
Radio One, Inc., Term Loan B, 7.50% 20162,3,8		714			710
Jackson National Life Global 5.375% 20134		560			585
Atlas Copco AB 5.60% 20174		500			575
Liberty Mutual Group Inc. 6.50% 20354		535			555
JSC BTA Bank 10.75%/12.50% 20182,4,6,10		1,165			262
JSC BTA Bank 0% 20204		2,406			193
JSC BTA Bank 7.20% 20252,4,6		264			16
AmeriCredit Automobile Receivables Trust, Series 2007-D-F, Class A-4-A, FSA insured, 5.56% 20142		441			445
Iraq (Republic of) 5.80% 20282,4		250			213
Local T.V. Finance LLC, Term Loan B, 2.25% 20132,3,8		141			141
American Airlines, Inc., Series 2001-1, Class B, 7.377% 20192		75			31
					4,953,516
Total bonds & notes (cost: $11,299,503,000)					11,817,589
Preferred securities — 0.02%	Shares
U.S. DOLLARS — 0.02%
Citigroup Inc. 6.95% preferred		106,000			2,650
Total preferred securities (cost: $2,573,000)					2,650
Common stocks — 0.02%
U.S. DOLLARS — 0.02%
Cooper-Standard Holdings Inc.4,11		40,522			1,773
Atrium Corp.9,11,12		191			1
Total common stocks (cost: $1,193,000)					1,774
Warrants — 0.00%
U.S. DOLLARS — 0.00%
Cooper-Standard Holdings Inc., warrants, expire 20174,9,11		2,837			60
Total warrants (cost: $44,000)					60
	Principal amount			Value
Short-term securities — 10.56%		(000	)		(000	)
U.S. Treasury Bills 0.067%–0.147% due 4/19–9/13/2012	US$333,850			US$ 333,746
Freddie Mac 0.07%–0.12% due 6/1–7/10/2012		164,650			164,613
Chariot Funding, LLC 0.15% due 4/16/20124		50,000			49,997
Jupiter Securitization Co., LLC 0.15% due 4/26/20124		37,500			37,496
JPMorgan Chase & Co. 0.18% due 5/17/2012		32,200			32,192
Federal Home Loan Bank 0.09%–0.10% due 4/13–5/18/2012		91,300			91,291
Thunder Bay Funding, LLC 0.19% due 6/12/20124		32,386			32,370
Old Line Funding, LLC 0.24% due 7/24/20124		26,700			26,682
Fannie Mae 0.065%–0.13% due 6/18–7/16/2012		56,675			56,663
International Bank for Reconstruction and Development 0.08%–0.10% due 4/30–6/4/2012		50,800			50,795
General Electric Capital Corp. 0.18% due 5/16/2012		50,000			49,990
Nordea North America, Inc. 0.145% due 4/17/2012		49,600			49,597
Toronto-Dominion Holdings USA Inc. 0.15% due 4/3/20124		40,000			40,000
BHP Billiton Finance (USA) Limited 0.15%–0.16% due 4/23–5/22/20124		38,500			38,482
Siemens Capital Co. LLC 0.15% due 4/13/20124		35,000			34,998
Barclays U.S. Funding Corp. 0.10% due 4/2/2012		30,800			30,800
HSBC USA Inc. 0.23% due 4/23/2012		28,050			28,046
Unilever Capital Corp. 0.10% due 4/13/20124		27,800			27,799
National Australia Funding (Delaware) Inc. 0.28% due 4/2/20124		25,400			25,400
Novartis Securities Investment Ltd. 0.13% due 4/16/20124		25,000			24,999
Nestlé Capital Corp. 0.12% due 6/1/20124		25,000			24,997
Federal Farm Credit Banks 0.05%–0.19% due 5/10/2012–1/23/2013		23,900			23,871
Bank of Nova Scotia 0.12% due 4/27/2012		20,000			19,998
Québec (Province of) 0.11% due 5/14/20124		19,500			19,497
Estée Lauder Companies Inc. 0.12% due 4/18/20124		15,000			14,999
NetJets Inc. 0.13% due 5/7/20124		12,700			12,698
Total short-term securities (cost: $1,341,984,000)					1,342,016
Total investment securities (cost: $12,645,297,000)					13,164,089
Other assets less liabilities					(459,556	)
Net assets				US$12,704,533

1Index-linked bond whose principal amount moves with a government price index.

2Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

3Coupon rate may change periodically.

4Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,295,655,000, which represented 10.20% of the net assets of the fund.

5A portion of this security was pledged as collateral for losses on unsettled forward currency contracts with certain counterparties. The total value of pledged collateral was $19,424,000, which represented .15% of the net assets of the fund.

6Scheduled interest and/or principal payment was not received.

7Payment in kind; the issuer has the option of paying additional securities in lieu of cash.

8Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $56,415,000, which represented .44% of the net assets of the fund.

9Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $3,367,000, which represented .03% of the net assets of the fund.

10Step bond; coupon rate will increase at a later date.

11Security did not produce income during the last 12 months.

12Acquired through a private placement transaction exempt from registration under the Securities Act of 1933. This security (acquired on 4/30/2010 at a cost of $17,000) may be subject to legal or contractual restrictions on resale.

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

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.

MFGEFP-931-0512O-S29459

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders.  The procedures are as follows.  The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.

ITEM 11 – Controls and Procedures

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

ITEM 12 – Exhibits

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

SIGNATURES

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

CAPITAL WORLD BOND FUND

By /s/ Mark H. Dalzell

Mark H. Dalzell, President and

Principal Executive Officer

Date: May 31, 2012

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By /s/ Mark H. Dalzell

Mark H. Dalzell, President and

Principal Executive Officer

Date: May 31, 2012

By /s/ M. Susan Gupton

M. Susan Gupton, Treasurer and

Principal Financial Officer

Date: May 31, 2012