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: 811-05364
American High-Income Trust
(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, 2008
Kimberly S. Verdick
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
Copies to:
Michael Glazer
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street, 25th Floor
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 – Reports to Stockholders
[logo - American Funds®]
The right choice for the long term®
American High-Income Trust
[photo of glass buildings from street-level looking skyward - clouds in the sky]
Semi-annual report for the six months ended March 31, 2008
American High-Income TrustSM seeks a high level of current income and, secondarily, capital appreciation through a diversified, carefully supervised portfolio consisting primarily of lower rated, higher risk corporate bonds.
This fund is one of the 30 American Funds. American Funds is one of the nation’s largest mutual fund families. For more than 75 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. 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, 2008: | ||||||||||||
| Class A shares | 1 year | 5 years | 10 years | |||||||||
| Reflecting 3.75% maximum sales charge | –8.38 | % | 7.51 | % | 4.92 | % | ||||||
The total annual fund operating expense ratio for Class A shares as of the most recent fiscal year-end was 0.69%. This figure does not reflect a fee waiver currently in effect; therefore, the actual expense ratio is lower.
The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect actual expenses, with the waiver applied. Fund results would have been lower without the waiver. Please see the Financial Highlights table on pages 24 to 27 for details.
Results for other share classes can be found on page 28.
The return of principal in bond funds is not guaranteed. Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the fund. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing outside the United States involves additional risks, such as currency fluctuations, political instability, differing securities regulations and periods of illiquidity, which are detailed in the fund’s prospectus.
[photo of the branch of a tree near a glass building]
Fellow shareholders:
The first half of American High-Income Trust’s 2008 fiscal year was characterized by weakness in global credit markets, which resulted in diminished access to capital, deteriorating corporate fundamentals and a slowing economy.
In this difficult environment, American High-Income Trust reported a total return of –5.4% for the six-month period ending March 31, 2008, assuming the reinvestment of monthly dividends totaling 48 cents a share. Shareholders who reinvested dividends received an income return of 4.0%, while seeing the value of their shares decline by 9.4%. Those results compare with a –4.6% total return for the Lipper High Current Yield Bond Funds Index, a benchmark of similar funds, and a –3.9% return for the Credit Suisse High Yield Index, which attempts to mirror the high-yield debt markets. The latter index is unmanaged and includes no expenses.
Shareholders in the fund who elected to take their dividends in cash saw the value of their holdings decline by 9.2%, while receiving an income return of 3.9%.
[Begin Sidebar]
| Results at a glance | ||||||||||||||||||||
| For periods ended March 31, 2008, with all distributions reinvested | ||||||||||||||||||||
| Total returns | Average annual total returns | |||||||||||||||||||
| Lifetime | ||||||||||||||||||||
| 6 months | 1 year | 5 years | 10 years | (since | ||||||||||||||||
| 2/19/88) | ||||||||||||||||||||
| American High-Income Trust | ||||||||||||||||||||
| (Class A shares) | –5.4 | % | –4.8 | % | 8.3 | % | 5.3 | % | 8.6 | % | ||||||||||
| Credit Suisse High Yield Index* | –3.9 | –3.2 | 8.9 | 5.5 | 8.5 | |||||||||||||||
| Citigroup Broad Investment-Grade | ||||||||||||||||||||
| (BIG) Bond Index* | 5.9 | 8.4 | 4.8 | 6.1 | 7.5 | |||||||||||||||
| Lipper High Current Yield | ||||||||||||||||||||
Bond Funds Index† | –4.6 | –4.0 | 8.0 | 3.2 | 6.8 | |||||||||||||||
| *The market indexes are unmanaged and do not reflect the effect of sales charges, commissions or expenses. | ||||||||||||||||||||
† The Lipper index does not reflect the effect of sales charges. | ||||||||||||||||||||
[End Sidebar]
The biggest contributor to the fund’s negative results was our large stake in media companies. During past weak credit market cycles, media companies have typically been a stable holding, but during the past six-month period they lagged the broader market. We continue to believe in the long-term potential in this area, and are taking advantage of the price downturn to add to our holdings. Also contributing to the fund’s weak results were holdings in the financial and auto sectors.
The turmoil in credit markets resulted in a flight to higher quality bonds. The Citigroup Broad Investment-Grade (BIG) Bond Index, an unmanaged index that measures high-quality bond markets including Treasuries, posted a total return of 5.9%, not including expenses.
The six months in review
When we last reported to you six months ago, the global liquidity crisis had already begun to put pressure on the high-yield market, but corporate fundamentals still appeared solid. Since then, the severity of the housing market weakness and subprime market meltdown has had a greater impact on the financial markets than many anticipated. Financial institutions have been forced to write down the value of their assets and reduce capital for trading, lending and other commitments. In addition, there continues to be an abundance of leveraged buyout (LBO) financing not yet absorbed by the marketplace.
The weakness in financial markets has seeped into the overall economy, straining corporate balance sheets and fueling concerns that some highly levered companies may not be able to meet their debt obligations. While there had been no appreciable increase in bankruptcies or defaults as of the end of the six-month period, we do expect default rates to rise from their historically low current levels.
All these factors have weighed heavily on high-yield bond prices and caused spreads to widen from the lows of last year. A bond’s spread is the difference between its interest rate and the interest rate of relatively safe investments like Treasury bonds. Widening spreads are often a sign of increased concerns about markets and the economy.
The wider spreads are reflected in American High-Income Trust’s higher yields. As of September 30, 2007, the fund’s Class A share distribution rate, a measure of yield that represents the actual income paid out over the past 12 months, was 7.5% at net asset value. Six months later, as of March 31, 2008, it had risen to 8.2%.
A long-term perspective
Going forward, we remain concerned about the ongoing effects of the liquidity crisis and a sluggish economy. Yet, we are encouraged by several factors: The high-yield market is more diversified than it was in past slowdowns, many companies have a solid asset base and many recent LBOs were structured with enough liquidity options to weather a modest economic downturn.
Given the significant spread widening and price declines in the past six months, we are also slightly more positive on high-yield bonds from a valuation perspective. Overall, our short-term outlook on high yield remains cautious, but we believe the market will be poised for a healthy recovery once the economy rebounds.
Consistency is key
Despite the recent turbulence in the high-yield market, it’s important to note that American High-Income Trust has not altered its investment approach. Rather, it continues to focus on researching individual companies as it has done from its inception. The goal of this research is to identify firms with good management and solid business plans that can weather downturns such as the current one and do well over the long run.
This fundamental approach has helped the fund produce solid returns for shareholders with a long-term perspective. For the past 10-year period ended March 31, 2008, the fund’s shareholders earned an average annual total return of 5.3%. That compares with a 3.2% average annual total return for the Lipper High Current Yield Bond Funds Index and a 5.5% return for the Credit Suisse High Yield Index for that same time period.
As always, we appreciate your continued support and long-term investment perspective.
Sincerely,
/s/ Paul G. Haaga, Jr.
Paul G. Haaga, Jr.
Vice Chairman
/s/ David C. Barclay
David C. Barclay
President
President
May 12, 2008
The fund’s 30-day yield for Class A shares as of April 30, 2008, calculated in accordance with the Securities and Exchange Commission formula, was 8.59% (8.55% without the fee waiver). The fund’s distribution rate for Class A shares as of that date was 7.64%. 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.
For current information about the fund, visit americanfunds.com.
Summary investment portfolio, March 31, 2008
unaudited
The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings. For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.
[begin pie chart]
| U.S. corporate bonds & notes | 62.1 | % | ||
| Corporate bonds & notes of issuers outside the U.S. | 12.4 | |||
| Corporate loans | 6.3 | |||
| Bonds & notes of governments & government agencies outside the U.S. | 4.4 | |||
| Other | 1.3 | |||
| Common stocks & warrants | 1.5 | |||
| Convertible securities | 0.9 | |||
| Preferred securities | 1.3 | |||
| Short-term securities & other assets less liabilities | 9.8 |
| Principal | Market | Percent | |
| amount | value | of net | |
| Bond, notes & other debt instruments - 86.52% | (000) | (000) | assets |
| Corporate bonds, notes & loans - 80.84% | |||
| Consumer discretionary - 22.77% | |||
| Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.: | |||
| 8.00% 2012 (1) | $ 50,950 | $ 47,001 | |
| 8.375%-10.875% 2014 (1) | 55,200 | 52,209 | |
| Charter Communications Operating, LLC: | |||
| Term Loan B, 5.26% 2014 (2) (3) (4) | 58,404 | 49,502 | |
| Term Loan B, 8.50% 2014 (2) (3) (4) | 26,750 | 26,041 | |
| CCH I, LLC and CCH I Capital Corp. 11.00% 2015 | 78,275 | 54,792 | |
| CCH II, LLC and CCH II Capital Corp. 10.25% 2010 | 50,480 | 46,189 | |
| CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013 | 43,890 | 37,745 | |
| Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 11.75%-13.50% 2011-2012 | 14,375 | 9,388 | 2.64% |
| Univision Communications Inc.: | |||
| First Lien Term Loan B, 5.494% 2014 (2) (3) (4) | 60,220 | 47,687 | |
| 9.75% 2015 (1) (5) | 139,380 | 85,022 | |
| Second Lien Term Loan B, 5.204% 2009 (2) (3) (4) | 11,595 | 10,986 | |
| 7.85% 2011 | 23,300 | 20,795 | 1.35 |
| Michaels Stores, Inc. 10.00% 2014 | 95,025 | 83,622 | .69 |
| CanWest Media Inc., Series B, 8.00% 2012 | 73,298 | 69,999 | .57 |
| Allison Transmission Holdings, Inc. 11.25% 2015 (1) (5) | 74,975 | 63,354 | .52 |
| Ford Motor Co.: | |||
| Term Loan B, 5.80% 2013 (2) (3) (4) | 38,701 | 31,862 | |
| 6.50%-9.50% 2011-2022 | 28,998 | 20,803 | |
| Ford Capital BV 9.50% 2010 | 4,000 | 3,620 | .46 |
| Other securities | 2,021,712 | 16.54 | |
| 2,782,329 | 22.77 | ||
| Industrials - 9.62% | |||
| Nielsen Finance LLC and Nielsen Finance Co.: | |||
| 10.00% 2014 | 69,500 | 69,500 | |
| 0%/12.50% 2016 (6) | 81,050 | 51,669 | |
| Nielsen Finance LLC, Term Loan B, 5.346% 2013 (2) (3) (4) | 9,751 | 8,815 | 1.06 |
| DAE Aviation Holdings, Inc. 11.25% 2015 (1) | 66,070 | 65,409 | .54 |
| Hawker Beechcraft Acquisition Co., LLC 8.875% 2015 (5) | 48,710 | 50,050 | .41 |
| Other securities | 930,196 | 7.61 | |
| 1,175,639 | 9.62 | ||
| Telecommunication services - 9.62% | |||
| Windstream Corp.: | |||
| 8.125% 2013 | 93,400 | 92,233 | |
| 8.625% 2016 | 12,300 | 12,146 | |
| Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015 | 31,370 | 32,073 | 1.12 |
| Triton PCS, Inc. 8.50% 2013 | 113,840 | 119,105 | .97 |
| American Tower Corp. 7.125% 2012 | 56,985 | 58,552 | .48 |
| MetroPCS Wireless, Inc. 9.25% 2014 | 58,200 | 53,835 | .44 |
| Rural Cellular Corp. 6.076% 2013 (2) | 48,875 | 49,119 | .40 |
| Other securities | 758,459 | 6.21 | |
| 1,175,522 | 9.62 | ||
| Financials - 7.41% | |||
| Ford Motor Credit Co.: | |||
| 7.127% 2012 (2) | 79,750 | 59,042 | |
| 5.625%-9.875% 2008-2016 (2) | 70,270 | 60,952 | .98 |
| Realogy Corp. 10.50% 2014 | 110,680 | 74,986 | .61 |
| Other securities | 710,831 | 5.82 | |
| 905,811 | 7.41 | ||
| Health care - 7.29% | |||
| Tenet Healthcare Corp.: | |||
| 9.875% 2014 | 132,455 | 128,812 | |
| 9.25% 2015 | 51,375 | 48,293 | |
| 6.375%-7.375% 2011-2031 | 18,010 | 16,224 | 1.58 |
| HealthSouth Corp.: | |||
| 10.829% 2014 (2) | 57,805 | 56,071 | |
| 10.75% 2016 | 86,990 | 91,774 | 1.21 |
| VWR Funding, Inc. 10.25% 2015 (2) (5) | 117,360 | 109,732 | .90 |
| HCA Inc., Term Loan B, 4.946% 2013 (2) (3) (4) | 68,353 | 63,019 | .52 |
| Elan Finance PLC and Elan Finance Corp. 8.875% 2013 | 54,850 | 51,833 | .42 |
| PTS Acquisition Corp. 9.50% 2015 (1) (5) | 63,180 | 51,492 | .42 |
| Other securities | 273,138 | 2.24 | |
| 890,388 | 7.29 | ||
| Information technology - 6.18% | |||
| NXP BV and NXP Funding LLC: | |||
| 9.50% 2015 | 156,040 | 128,733 | |
| 7.008%-7.875% 2013-2014 (2) | 74,575 | 65,027 | |
| 7.326%-8.625% 2013-2015 (2) | € 17,000 | 20,139 | 1.75 |
| Sanmina-SCI Corp. 8.125% 2016 | $ 79,650 | 70,889 | .58 |
| First Data Corp., Term Loan B2, 5.349% 2014 (2) (3) (4) | 76,614 | 69,188 | .56 |
| Freescale Semiconductor, Inc. 9.125% 2014 (5) | 78,036 | 57,356 | .47 |
| Hughes Communications, Inc. 9.50% 2014 | 53,375 | 53,375 | .44 |
| Other securities | 290,487 | 2.38 | |
| 755,194 | 6.18 | ||
| Materials - 5.47% | |||
| Georgia Gulf Corp. 9.50% 2014 | 68,290 | 53,095 | .43 |
| Other securities | 615,700 | 5.04 | |
| 668,795 | 5.47 | ||
| Utilities - 5.18% | |||
| Edison Mission Energy: | |||
| 7.50% 2013 | 44,900 | 46,247 | |
| 7.20% 2019 | 46,450 | 46,102 | |
| 7.00%-7.75% 2016-2027 | 82,875 | 81,756 | |
| Midwest Generation, LLC, Series B, 8.56% 2016 (3) | 39,629 | 42,997 | |
| Homer City Funding LLC 8.734% 2026 (3) | 9,215 | 9,860 | 1.86 |
| Texas Competitive Electric Holdings Co. LLC: | |||
| Series B, 10.25% 2015 (1) | 60,035 | 60,110 | |
| 10.25% 2015 (1) | 55,170 | 55,239 | |
| Term Loan B2, 6.596% 2014 (2) (3) (4) | 15,960 | 14,570 | 1.06 |
| Intergen Power 9.00% 2017 (1) | 61,775 | 64,864 | .53 |
| Other securities | 211,943 | 1.73 | |
| 633,688 | 5.18 | ||
| Energy - 4.00% | |||
| Williams Companies, Inc.: | |||
| 8.75% 2032 | 52,440 | 60,830 | |
| 6.375%-8.125% 2010-2021 (1) (2) | 57,031 | 59,847 | |
| Transcontinental Gas Pipe Line Corp. 6.40%-7.25% 2016-2026 | 10,950 | 11,283 | 1.08 |
| Enterprise Products Operating LP 7.034% 2068 (2) | 82,435 | 70,093 | .57 |
| Other securities | 286,920 | 2.35 | |
| 488,973 | 4.00 | ||
| Consumer staples - 3.30% | |||
| Stater Bros. Holdings Inc. 8.125% 2012 | 48,555 | 48,919 | .40 |
| Other securities | 354,799 | 2.90 | |
| 403,718 | 3.30 | ||
| Total corporate bonds, notes & loans | 9,880,057 | 80.84 | |
| Bonds & notes of governments & government agencies outside the U.S. - 4.36% | |||
| Brazilian Treasury Bill 6.00% 2010 (7) (8) | BRL 83,473 | 46,134 | .38 |
| Other securities | 486,948 | 3.98 | |
| 533,082 | 4.36 | ||
| Other - 1.32% | |||
| Other securities | 160,659 | 1.32 | |
| Total bonds, notes & other debt instruments (cost: $11,741,862,000) | 10,573,798 | 86.52 | |
| Market | Percent | ||
| value | of net | ||
| Convertible securities - 0.85% | (000) | assets | |
| Other - 0.85% | |||
| Other securities | $ 104,402 | .85 | |
| Total convertible securities (cost: $89,325,000) | 104,402 | .85 | |
| Shares | Market | Percent | |
| value | of net | ||
| Preferred securities - 1.29% | (000) | assets | |
| Financials - 1.29% | |||
| Freddie Mac, Series Z, 8.375% | 320,000 | $ 7,840 | .06 |
| Other securities | 149,989 | 1.23 | |
| Total preferred securities (cost: $194,165,000) | 157,829 | 1.29 | |
| Common stocks - 1.55% | |||
| Other - 1.55% | |||
| AT&T Inc. | 1,000,000 | $ 38,300 | .31 |
| Ford Motor Co. (9) | 1,877,140 | 10,737 | .09 |
| Other securities | 140,549 | 1.15 | |
| Total common stocks (cost: $228,385,000) | 189,586 | 1.55 | |
| Market | Percent | ||
| value | of net | ||
| Warrants - 0.00% | (000) | assets | |
| Telecommunication services - 0.00% | |||
| Other securities | $ 8 | .00 | |
| Total warrants (cost: $571,000) | 8 | .00 | |
| Principal | Market | Percent | |
| amount | value | of net | |
| Short-term securities - 7.56% | (000) | (000) | assets |
| Freddie Mac 1.85%-2.07% due 6/23-9/2/2008 | $ 132,900 | $ 131,809 | 1.08 |
| IBM International Group Capital LLC 2.46%-2.62% due 4/1-4/18/2008 (1) | 58,900 | 58,871 | |
| IBM Corp. 2.29% due 5/28/2008 (1) | 50,000 | 49,780 | .89 |
| AT&T Inc. 2.15%-2.84% due 4/11-5/22/2008 (1) | 94,839 | 94,665 | .77 |
| Variable Funding Capital Corp. 3.06%-3.21% due 4/3-4/8/2008 (1) | 68,100 | 68,066 | .56 |
| Park Avenue Receivables Co., LLC 2.70%-3.05% due 4/17-4/22/2008 (1) | 53,400 | 53,314 | |
| JPMorgan Chase & Co. 2.92% due 4/18/2008 | 11,600 | 11,583 | .53 |
| Ranger Funding Co. LLC 2.67%-2.77% due 5/6-7/11/2008 (1) | 56,075 | 55,781 | .46 |
| E.I. duPont de Nemours and Co. 2.22% due 4/28-4/30/2008 (1) | 46,400 | 46,316 | .38 |
| Other securities | 353,618 | 2.89 | |
| Total short-term securities (cost: $923,970,000) | 923,803 | 7.56 | |
| Total investment securities (cost: $13,178,278,000) | 11,949,426 | 97.77 | |
| Other assets less liabilities | 272,420 | 2.23 | |
| Net assets | $12,221,846 | 100.00% | |
| "Other securities" includes all issues that are not disclosed separately in the summary investment portfolio. Some of these securities (with aggregate value of $20,327,000, which represented .17% of the net assets of the fund) may be subject to legal or contractual restrictions on resale. | |||
| Investments in affiliates | ||||||
| A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares of that company. The market value of the fund's holdings in affiliated companies is included in "Other securities" under their respective industry sectors in the preceding summary investment portfolio. Further details on these holdings and related transactions during the six months ended March 31, 2008, appear below. | ||||||
Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Dividend and interest income (000) | Market value of affiliates at 3/31/08 (000) | |||||||||||||||||||
| ZiLOG, Inc. (9) | 1,140,500 | - | - | 1,140,500 | $ | - | $ | 3,992 | ||||||||||||||||
| Clarent Hospital Corp. (8) (9) | 576,849 | - | - | 576,849 | - | 115 | ||||||||||||||||||
| SunCom Wireless Holdings, Inc., Class A (10) | 7,554,434 | - | 7,554,434 | - | - | - | ||||||||||||||||||
| Triton PCS, Inc. 8.50% 2013 (10) | $ | 113,840,000 | - | - | $ | 113,840,000 | 4,838 | - | ||||||||||||||||
| $ | 4,838 | $ | 4,107 | |||||||||||||||||||||
| 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) Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the United States in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $2,615,344,000, which represented 21.40% of the net assets of the fund. | |||
| (2) Coupon rate may change periodically. | |||
| (3) Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. | |||
| (4) Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans, including those in "Other securities," was $765,584,000, which represented 6.26% of the net assets of the fund. | |||
| (5) Payment in kind; the issuer has the option of paying additional securities in lieu of cash. | |||
| (6) Step bond; coupon rate will increase at a later date. | |||
| (7) Index-linked bond whose principal amount moves with a government retail price index. | |||
| (8) Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in "Other securities," was $528,752,000, which represented 4.33% of the net assets of the fund. | |||
| (9) Security did not produce income during the last 12 months. | |||
| (10) Unaffiliated issuer at 3/31/2008. | |||
| See Notes to Financial Statements | |||
Financial statements
| Statement of assets and liabilities | unaudited | |||||||
| at March 31, 2008 | (dollars and shares in thousands, except per-share amounts) | |||||||
| Assets: | ||||||||
| Investment securities at market: | ||||||||
| Unaffiliated issuers (cost: $13,157,996) | $ | 11,945,319 | ||||||
| Affiliated issuers (cost: $20,282) | 4,107 | $ | 11,949,426 | |||||
| Cash | 1,785 | |||||||
| Receivables for: | ||||||||
| Sales of investments | 106,271 | |||||||
| Sales of fund's shares | 27,985 | |||||||
| Dividends and interest | 256,709 | 390,965 | ||||||
| 12,342,176 | ||||||||
| Liabilities: | ||||||||
| Payables for: | ||||||||
| Purchases of investments | 59,956 | |||||||
| Repurchases of fund's shares | 28,904 | |||||||
| Dividends on fund's shares | 21,062 | |||||||
| Open forward currency contracts | 1,434 | |||||||
| Closed forward currency contracts | 22 | |||||||
| Investment advisory services | 3,113 | |||||||
| Services provided by affiliates | 5,261 | |||||||
| Trustees' deferred compensation | 135 | |||||||
| Other | 443 | 120,330 | ||||||
| Net assets at March 31, 2008 | $ | 12,221,846 | ||||||
| Net assets consist of: | ||||||||
| Capital paid in on shares of beneficial interest | $ | 13,414,347 | ||||||
| Undistributed net investment income | 32,721 | |||||||
| Undistributed net realized gain | 4,951 | |||||||
| Net unrealized depreciation | (1,230,173 | ) | ||||||
| Net assets at March 31, 2008 | $ | 12,221,846 | ||||||
| Shares of beneficial interest issued and outstanding (no stated par value) - unlimited shares authorized (1,092,491 total shares outstanding) | ||||||||||||
| Net assets | Shares outstanding | Net asset value per share* | ||||||||||
| Class A | $ | 8,632,970 | 771,687 | $ | 11.19 | |||||||
| Class B | 650,483 | 58,146 | 11.19 | |||||||||
| Class C | 947,478 | 84,693 | 11.19 | |||||||||
| Class F | 1,199,407 | 107,213 | 11.19 | |||||||||
| Class 529-A | 123,695 | 11,057 | 11.19 | |||||||||
| Class 529-B | 19,696 | 1,761 | 11.19 | |||||||||
| Class 529-C | 51,216 | 4,578 | 11.19 | |||||||||
| Class 529-E | 7,054 | 631 | 11.19 | |||||||||
| Class 529-F | 5,590 | 500 | 11.19 | |||||||||
| Class R-1 | 12,311 | 1,100 | 11.19 | |||||||||
| Class R-2 | 134,199 | 11,996 | 11.19 | |||||||||
| Class R-3 | 190,945 | 17,068 | 11.19 | |||||||||
| Class R-4 | 126,886 | 11,342 | 11.19 | |||||||||
| Class R-5 | 119,916 | 10,719 | 11.19 | |||||||||
| (*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Class A and 529-A, for which the maximum offering prices per share were $11.63 each. | ||||||||||||
| See Notes to Financial Statements | ||||||||||||
| Statement of operations | unaudited | |||||||
| for the six months ended March 31, 2008 | (dollars in thousands) | |||||||
| Investment income: | ||||||||
| Income: | ||||||||
| Interest (net of non-U.S. taxes of $444; also includes $4,838 from affiliates) | $ | 549,506 | ||||||
| Dividends | 6,520 | $ | 556,026 | |||||
| Fees and expenses*: | ||||||||
| Investment advisory services | 21,056 | |||||||
| Distribution services | 22,043 | |||||||
| Transfer agent services | 5,088 | |||||||
| Administrative services | 2,629 | |||||||
| Reports to shareholders | 269 | |||||||
| Registration statement and prospectus | 306 | |||||||
| Postage, stationery and supplies | 643 | |||||||
| Trustees' compensation | 28 | |||||||
| Auditing and legal | 77 | |||||||
| Custodian | 202 | |||||||
| State and local taxes | 133 | |||||||
| Other | 73 | |||||||
| Total fees and expenses before reimbursements/waivers | 52,547 | |||||||
| Less reimbursements/waivers of fees and expenses: | ||||||||
| Investment advisory services | 2,106 | |||||||
| Administrative services | 116 | |||||||
| Total fees and expenses after reimbursements/waivers | 50,325 | |||||||
| Net investment income | 505,701 | |||||||
| Net realized gain and unrealized depreciation on investments and currency: | ||||||||
| Net realized gain (loss) on: | ||||||||
| Investments (including $75,167 net gain from affiliates) | 36,177 | |||||||
| Currency transactions | (4,349 | ) | 31,828 | |||||
| Net unrealized depreciation on: | ||||||||
| Investments | (1,266,798 | ) | ||||||
| Currency translations | (120 | ) | (1,266,918 | ) | ||||
| Net realized gain and unrealized depreciation | ||||||||
| on investments and currency | (1,235,090 | ) | ||||||
| Net decrease in net assets resulting from operations | $ | (729,389 | ) | |||||
| (*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. | ||||||||
| See Notes to Financial Statements | ||||||||
| Statements of changes in net assets | (dollars in thousands) | |||||||
| Six months | Year ended | |||||||
| ended March 31, | September 30, | |||||||
| 2008* | 2007 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 505,701 | $ | 925,790 | ||||
| Net realized gain on investments and currency transactions | 31,828 | 154,033 | ||||||
| Net unrealized depreciation on investments and currency translations | (1,266,918 | ) | (173,969 | ) | ||||
| Net (decrease) increase in net assets resulting from operations | (729,389 | ) | 905,854 | |||||
| Dividends and distributions paid or accrued to shareholders: | ||||||||
| Dividends from net investment income and currency gain | (511,241 | ) | (914,620 | ) | ||||
| Distributions from net realized gain on investments | (25,934 | ) | - | |||||
| Total dividends and distributions paid or accrued to shareholders | (537,175 | ) | (914,620 | ) | ||||
| Net capital share transactions | 203,374 | 1,967,445 | ||||||
| Total (decrease) increase in net assets | (1,063,190 | ) | 1,958,679 | |||||
| Net assets: | ||||||||
| Beginning of period | 13,285,036 | 11,326,357 | ||||||
| End of period (including undistributed | ||||||||
| net investment income: $32,721 and $37,476, respectively) | $ | 12,221,846 | $ | 13,285,036 | ||||
*Unaudited. | ||||||||
| See Notes to Financial Statements | ||||||||
Notes to financial statements
unaudited
| 1. | Organization and significant accounting policies |
Organization – American High-Income Trust (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks a high level of current income and, secondarily, capital appreciation through a diversified, carefully supervised portfolio consisting primarily of lower rated, higher risk corporate bonds.
The fund offers 14 share classes consisting of four retail share classes, five 529 college savings plan share classes and five retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) can be used to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The fund’s share classes are described below:
| Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
| Class 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 |
| Class B and 529-B | None | Declines from 5% to 0% for redemptions within six years of purchase | Class B and 529-B convert to Class 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 after 10 years |
| Class 529-C | None | 1% for redemptions within one year of purchase | None |
| Class 529-E | None | None | None |
| Class F and 529-F | None | None | None |
| Class R-1, R-2, R-3, R-4 and R-5 | None | None | None |
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
Significant accounting policies – The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:
Security valuation – Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (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 valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Forward currency contracts are valued at the mean of representative quoted bid and asked prices.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under procedures adopted by authority of the fund's board of trustees. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions.
Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations – Income, fees and expenses (other than class-specific fees and expenses) are allocated daily among the various share classes based on the relative value of their settled shares. 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 paid to shareholders are declared daily from net investment income and are paid to shareholders monthly. Distributions paid to shareholders are recorded on the ex-dividend date.
Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
Forward currency contracts – The fund may enter into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund enters into these contracts to manage its exposure to changes in exchange rates arising from investments denominated in currencies other than U.S. dollars. 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. Due to these risks, the fund could incur losses up to the entire contract amount, which may exceed the net unrealized value shown on the accompanying financial statements. On a daily basis, the fund values forward currency contracts based on the applicable exchange rates and records unrealized gains or losses. The fund records realized gains or losses at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency.
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. Risks may arise due to the delayed settlement date of the loan transaction and the ability of the agent and/or borrower to meet the obligations of the loan.
| 2. | Investments outside the U.S. |
Investment risk – The risks of investing in securities of issuers outside the U.S. may include, but are not limited to, investment and repatriation restrictions; revaluation of currencies; adverse political, social and economic developments; government involvement in the private sector; limited and less reliable investor information; lack of liquidity; certain local tax law considerations; and limited regulation of the securities markets.
Taxation – Dividend and interest income is recorded net of non-U.S. taxes paid. Realized and unrealized gains on securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on realized and unrealized gains to provide for potential non-U.S. taxes payable on these securities. As of March 31, 2008, the liability for non-U.S. taxes based on realized and unrealized gains was $126,000.
| 3. | Federal income taxation and distributions |
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, 2008, 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 2003, by state tax authorities for tax years before 2002 and by tax authorities outside the U.S. for tax years before 2004.
Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; 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.
During the six months ended March 31, 2008, the fund reclassified $785,000 from undistributed net realized gain to undistributed net investment income to align financial reporting with tax reporting.
The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of September 30, 2007, the fund had tax basis undistributed ordinary income of $66,708,000, currency loss deferrals (realized during the period November 1, 2006, through September 30, 2007) of $2,667,000 and undistributed long-term capital gains of $6,949,000.
As of March 31, 2008, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:
| (dollars in thousands) | ||||
| Gross unrealized appreciation on investment securities | $ | 234,317 | ||
| Gross unrealized depreciation on investment securities | (1,480,215 | ) | ||
| Net unrealized depreciation on investment securities | (1,245,898 | ) | ||
| Cost of investment securities | 13,195,324 | |||
The tax character of distributions paid or accrued to shareholders was as follows (dollars in thousands):
| Six months ended March 31, 2008 | Year ended September 30, 2007 | |||||||||||||||||||||||
| Ordinary income | Long-term capital gains | Total distributions paid or accrued | Ordinary income | Long-term capital gains | Total distributions paid or accrued | |||||||||||||||||||
| Share class | ||||||||||||||||||||||||
| Class A | $ | 369,336 | $ | 18,403 | $ | 387,739 | $ | 673,938 | - | $ | 673,938 | |||||||||||||
| Class B | 25,895 | 1,431 | 27,326 | 51,158 | - | 51,158 | ||||||||||||||||||
| Class C | 36,628 | 2,038 | 38,666 | 64,794 | - | 64,794 | ||||||||||||||||||
| Class F | 48,474 | 2,457 | 50,931 | 75,998 | - | 75,998 | ||||||||||||||||||
| Class 529-A | 5,014 | 252 | 5,266 | 8,047 | - | 8,047 | ||||||||||||||||||
| Class 529-B | 736 | 42 | 778 | 1,272 | - | 1,272 | ||||||||||||||||||
| Class 529-C | 1,887 | 106 | 1,993 | 3,073 | - | 3,073 | ||||||||||||||||||
| Class 529-E | 273 | 14 | 287 | 432 | - | 432 | ||||||||||||||||||
| Class 529-F | 228 | 11 | 239 | 355 | - | 355 | ||||||||||||||||||
| Class R-1 | 456 | 25 | 481 | 680 | - | 680 | ||||||||||||||||||
| Class R-2 | 4,926 | 274 | 5,200 | 8,052 | - | 8,052 | ||||||||||||||||||
| Class R-3 | 7,310 | 381 | 7,691 | 11,472 | - | 11,472 | ||||||||||||||||||
| Class R-4 | 4,930 | 246 | 5,176 | 7,040 | - | 7,040 | ||||||||||||||||||
| Class R-5 | 5,148 | 254 | 5,402 | 8,309 | - | 8,309 | ||||||||||||||||||
| Total | $ | 511,241 | $ | 25,934 | $ | 537,175 | $ | 914,620 | - | $ | 914,620 | |||||||||||||
| 4. | Fees and transactions with related parties |
Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company SM ("AFS"), the fund’s transfer agent, and American Funds Distributors, SM Inc. ("AFD"), the principal underwriter of the fund’s shares.
Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees were based on a declining series of annual rates beginning with 0.30% on the first $60 million of daily net assets and decreasing to 0.14% on such assets in excess of $10 billion. The board of trustees approved an amended agreement effective November 1, 2007, decreasing the annual rate on net assets in excess of $15 billion from a rate of 0.14% to a rate of 0.135%. The agreement also provides for monthly fees, accrued daily, based on a declining series of rates beginning with 3.00% on the first $8,333,333 of the fund's monthly gross income and decreasing to 1.50% on such income in excess of $50 million. CRMC is currently waiving 10% of investment advisory services fees. During the six months ended March 31, 2008, total investment advisory services fees waived by CRMC were $2,106,000. As a result, the fee shown on the accompanying financial statements of $21,056,000, which was equivalent to an annualized rate of 0.330%, was reduced to $18,950,000, or 0.297% of average daily net assets.
Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:
Distribution services – The fund has adopted plans of distribution for all share classes, except Class R-5. 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 may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
For Class A and 529-A, the board of trustees has also approved 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, 2008, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A.
| Share class | Currently approved limits | Plan limits |
| Class A | 0.30% | 0.30% |
| Class 529-A | 0.30 | 0.50 |
| Class B and 529-B | 1.00 | 1.00 |
| Class C, 529-C and R-1 | 1.00 | 1.00 |
| Class R-2 | 0.75 | 1.00 |
| Class 529-E and R-3 | 0.50 | 0.75 |
| Class F, 529-F and R-4 | 0.25 | 0.50 |
Transfer agent services – The fund has a transfer agent agreement with AFS for Class A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.
Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Class A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. For the six months ended March 31, 2008, the total administrative services fees paid by CRMC were $116,000 for Class R-2. Administrative services fees are presented gross of any payments made by CRMC. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.
Expenses under the agreements described above for the six months ended March 31, 2008, were as follows (dollars in thousands):
| Share class | Distribution services | Transfer agent services | Administrative services | ||
| CRMC administrative services | Transfer agent services | Commonwealth of Virginia administrative services | |||
| Class A | $10,331 | $4,680 | Not applicable | Not applicable | Not applicable |
| Class B | 3,516 | 408 | Not applicable | Not applicable | Not applicable |
| Class C | 5,005 | Included in administrative services | $669 | $107 | Not applicable |
| Class F | 1,502 | 679 | 150 | Not applicable | |
| Class 529-A | 116 | 53 | 10 | $62 | |
| Class 529-B | 101 | 9 | 4 | 10 | |
| Class 529-C | 260 | 22 | 8 | 26 | |
| Class 529-E | 18 | 3 | 1 | 3 | |
| Class 529-F | - | 2 | -* | 3 | |
| Class R-1 | 63 | 6 | 8 | Not applicable | |
| Class R-2 | 506 | 97 | 310 | Not applicable | |
| Class R-3 | 472 | 129 | 88 | Not applicable | |
| Class R-4 | 153 | 85 | 21 | Not applicable | |
| Class R-5 | Not applicable | 58 | 6 | Not applicable | |
| Total | $22,043 | $5,088 | $1,812 | $713 | $104 |
*Amount less than one thousand.
Trustees’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $28,000, shown on the accompanying financial statements, includes $36,000 in current fees (either paid in cash or deferred) and a net decrease of $8,000 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.
| 5. | Capital share transactions |
Capital share transactions in the fund were as follows (dollars and shares in thousands):
| Share class | Sales(*) | Reinvestments of dividends and distributions | Repurchases(*) | Net increase (decrease) | ||||||||||||||||||||||||||||
| Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | |||||||||||||||||||||||||
| Six months ended March 31, 2008 | ||||||||||||||||||||||||||||||||
| Class A | $ | 843,559 | 71,534 | $ | 310,838 | 26,500 | $ | (1,138,747 | ) | (96,764 | ) | $ | 15,650 | 1,270 | ||||||||||||||||||
| Class B | 26,206 | 2,226 | 19,423 | 1,655 | (81,268 | ) | (6,918 | ) | (35,639 | ) | (3,037 | ) | ||||||||||||||||||||
| Class C | 112,919 | 9,575 | 28,055 | 2,390 | (139,563 | ) | (11,907 | ) | 1,411 | 58 | ||||||||||||||||||||||
| Class F | 347,531 | 29,465 | 37,864 | 3,232 | (231,918 | ) | (19,863 | ) | 153,477 | 12,834 | ||||||||||||||||||||||
| Class 529-A | 15,043 | 1,276 | 5,192 | 443 | (8,378 | ) | (712 | ) | 11,857 | 1,007 | ||||||||||||||||||||||
| Class 529-B | 1,300 | 111 | 767 | 65 | (1,135 | ) | (97 | ) | 932 | 79 | ||||||||||||||||||||||
| Class 529-C | 6,793 | 576 | 1,963 | 168 | (4,856 | ) | (414 | ) | 3,900 | 330 | ||||||||||||||||||||||
| Class 529-E | 959 | 82 | 283 | 24 | (517 | ) | (44 | ) | 725 | 62 | ||||||||||||||||||||||
| Class 529-F | 906 | 77 | 235 | 20 | (612 | ) | (51 | ) | 529 | 46 | ||||||||||||||||||||||
| Class R-1 | 2,714 | 232 | 462 | 39 | (2,701 | ) | (230 | ) | 475 | 41 | ||||||||||||||||||||||
| Class R-2 | 29,347 | 2,503 | 5,112 | 436 | (24,790 | ) | (2,107 | ) | 9,669 | 832 | ||||||||||||||||||||||
| Class R-3 | 56,335 | 4,771 | 7,593 | 648 | (40,063 | ) | (3,397 | ) | 23,865 | 2,022 | ||||||||||||||||||||||
| Class R-4 | 41,728 | 3,542 | 5,112 | 436 | (25,268 | ) | (2,159 | ) | 21,572 | 1,819 | ||||||||||||||||||||||
| Class R-5 | 39,877 | 3,411 | 5,006 | 427 | (49,932 | ) | (4,216 | ) | (5,049 | ) | (378 | ) | ||||||||||||||||||||
| Total net increase | ||||||||||||||||||||||||||||||||
| (decrease) | $ | 1,525,217 | 129,381 | $ | 427,905 | 36,483 | $ | (1,749,748 | ) | (148,879 | ) | $ | 203,374 | 16,985 | ||||||||||||||||||
| Year ended September 30, 2007 | ||||||||||||||||||||||||||||||||
| Class A | $ | 2,599,636 | 206,346 | $ | 536,365 | 42,801 | $ | (1,902,067 | ) | (152,186 | ) | $ | 1,233,934 | 96,961 | ||||||||||||||||||
| Class B | 100,652 | 7,985 | 35,448 | 2,827 | (142,227 | ) | (11,372 | ) | (6,127 | ) | (560 | ) | ||||||||||||||||||||
| Class C | 335,555 | 26,621 | 45,464 | 3,628 | (204,959 | ) | (16,409 | ) | 176,060 | 13,840 | ||||||||||||||||||||||
| Class F | 567,759 | 45,127 | 55,726 | 4,448 | (299,941 | ) | (23,998 | ) | 323,544 | 25,577 | ||||||||||||||||||||||
| Class 529-A | 38,433 | 3,050 | 8,058 | 643 | (14,230 | ) | (1,139 | ) | 32,261 | 2,554 | ||||||||||||||||||||||
| Class 529-B | 3,620 | 287 | 1,275 | 102 | (1,775 | ) | (142 | ) | 3,120 | 247 | ||||||||||||||||||||||
| Class 529-C | 17,218 | 1,366 | 3,076 | 245 | (7,875 | ) | (630 | ) | 12,419 | 981 | ||||||||||||||||||||||
| Class 529-E | 2,154 | 172 | 432 | 35 | (851 | ) | (68 | ) | 1,735 | 139 | ||||||||||||||||||||||
| Class 529-F | 2,248 | 179 | 354 | 28 | (1,015 | ) | (81 | ) | 1,587 | 126 | ||||||||||||||||||||||
| Class R-1 | 6,443 | 513 | 673 | 54 | (2,333 | ) | (185 | ) | 4,783 | 382 | ||||||||||||||||||||||
| Class R-2 | 64,051 | 5,089 | 8,017 | 640 | (39,894 | ) | (3,180 | ) | 32,174 | 2,549 | ||||||||||||||||||||||
| Class R-3 | 97,675 | 7,775 | 11,452 | 914 | (56,548 | ) | (4,518 | ) | 52,579 | 4,171 | ||||||||||||||||||||||
| Class R-4 | 72,689 | 5,787 | 7,051 | 563 | (34,470 | ) | (2,750 | ) | 45,270 | 3,600 | ||||||||||||||||||||||
| Class R-5 | 79,624 | 6,325 | 7,422 | 593 | (32,940 | ) | (2,638 | ) | 54,106 | 4,280 | ||||||||||||||||||||||
| Total net increase | ||||||||||||||||||||||||||||||||
| (decrease) | $ | 3,987,757 | 316,622 | $ | 720,813 | 57,521 | $ | (2,741,125 | ) | (219,296 | ) | $ | 1,967,445 | 154,847 | ||||||||||||||||||
| (*) Includes exchanges between share classes of the fund. | ||||||||||||||||||||||||||||||||
| 6. | Forward currency contracts |
As of March 31, 2008, the fund had open forward currency contracts to sell currencies as follows (amounts in thousands):
| Contract amount | U.S. valuations at March 31, 2008 | |||
| Unrealized | ||||
| Receive | Deliver | Amount | depreciation | |
| Sales: | ||||
| Euros | ||||
| expiring 4/14 to 6/16/2008 | $48,822 | € 31,921 | $50,256 | $(1,434) |
| 7. | Investment transactions |
The fund made purchases and sales of investment securities, excluding short-term securities, of $1,901,306,000 and $2,301,450,000, respectively, during the six months ended March 31, 2008.
Financial highlights (1)
| (Loss) income from investment operations(2) | Dividends and distributions | |||||||||||||||||||
| Net asset value, beginning of period | Net investment income | Net (losses) gains on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return (3) (4) | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements /waivers | Ratio of expenses to average net assets after reimbursements /waivers (4) | Ratio of net income to average net assets (4) | ||||||||
| Class A: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | $12.35 | $.47 | $ | (1.13) | $(.66) | $(.48) | $(.02) | $(.50) | $11.19 | (5.43)% | $8,633 | .69% | (6) | .66% | (6) | 8.05% | (6) | ||
| Year ended 9/30/2007 | 12.30 | .93 | .04 | .97 | (.92) | - | (.92) | 12.35 | 7.99 | 9,516 | .69 | .66 | 7.35 | |||||||
| Year ended 9/30/2006 | 12.27 | .92 | .05 | .97 | (.94) | - | (.94) | 12.30 | 8.26 | 8,285 | .69 | .65 | 7.52 | |||||||
| Year ended 9/30/2005 | 12.26 | .89 | .01 | .90 | (.89) | - | (.89) | 12.27 | 7.54 | 7,448 | .68 | .65 | 7.17 | |||||||
| Year ended 9/30/2004 | 11.88 | .87 | .35 | 1.22 | (.84) | - | (.84) | 12.26 | 10.57 | 6,920 | .67 | .67 | 7.19 | |||||||
| Year ended 9/30/2003 | 9.62 | .93 | 2.25 | 3.18 | (.92) | - | (.92) | 11.88 | 34.30 | 6,235 | .75 | .75 | 8.49 | |||||||
| Class B: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .42 | (1.13) | (.71) | (.43) | (.02) | (.45) | 11.19 | (5.80) | 651 | 1.47 | (6) | 1.44 | (6) | 7.27 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .83 | .04 | .87 | (.82) | - | (.82) | 12.35 | 7.19 | 756 | 1.44 | 1.41 | 6.62 | |||||||
| Year ended 9/30/2006 | 12.27 | .83 | .05 | .88 | (.85) | - | (.85) | 12.30 | 7.44 | 760 | 1.46 | 1.42 | 6.76 | |||||||
| Year ended 9/30/2005 | 12.26 | .80 | .01 | .81 | (.80) | - | (.80) | 12.27 | 6.72 | 771 | 1.45 | 1.43 | 6.39 | |||||||
| Year ended 9/30/2004 | 11.88 | .78 | .35 | 1.13 | (.75) | - | (.75) | 12.26 | 9.71 | 794 | 1.46 | 1.46 | 6.40 | |||||||
| Year ended 9/30/2003 | 9.62 | .84 | 2.25 | 3.09 | (.83) | - | (.83) | 11.88 | 33.28 | 736 | 1.51 | 1.51 | 7.63 | |||||||
| Class C: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .42 | (1.13) | (.71) | (.43) | (.02) | (.45) | 11.19 | (5.82) | 947 | 1.51 | (6) | 1.48 | (6) | 7.23 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .83 | .04 | .87 | (.82) | - | (.82) | 12.35 | 7.14 | 1,045 | 1.48 | 1.45 | 6.55 | |||||||
| Year ended 9/30/2006 | 12.27 | .82 | .05 | .87 | (.84) | - | (.84) | 12.30 | 7.39 | 871 | 1.50 | 1.46 | 6.71 | |||||||
| Year ended 9/30/2005 | 12.26 | .79 | .01 | .80 | (.79) | - | (.79) | 12.27 | 6.65 | 804 | 1.51 | 1.49 | 6.32 | |||||||
| Year ended 9/30/2004 | 11.88 | .77 | .35 | 1.12 | (.74) | - | (.74) | 12.26 | 9.62 | 812 | 1.54 | 1.54 | 6.31 | |||||||
| Year ended 9/30/2003 | 9.62 | .83 | 2.25 | 3.08 | (.82) | - | (.82) | 11.88 | 33.17 | 772 | 1.60 | 1.60 | 7.49 | |||||||
| Class F: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .47 | (1.13) | (.66) | (.48) | (.02) | (.50) | 11.19 | (5.45) | 1,199 | .74 | (6) | .71 | (6) | 7.99 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .92 | .04 | .96 | (.91) | - | (.91) | 12.35 | 7.98 | 1,166 | .70 | .67 | 7.32 | |||||||
| Year ended 9/30/2006 | 12.27 | .92 | .05 | .97 | (.94) | - | (.94) | 12.30 | 8.23 | 846 | .71 | .68 | 7.47 | |||||||
| Year ended 9/30/2005 | 12.26 | .88 | .01 | .89 | (.88) | - | (.88) | 12.27 | 7.45 | 637 | .76 | .74 | 7.07 | |||||||
| Year ended 9/30/2004 | 11.88 | .86 | .35 | 1.21 | (.83) | - | (.83) | 12.26 | 10.44 | 578 | .79 | .78 | 7.05 | |||||||
| Year ended 9/30/2003 | 9.62 | .92 | 2.25 | 3.17 | (.91) | - | (.91) | 11.88 | 34.17 | 470 | .84 | .84 | 8.26 | |||||||
| Class 529-A: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .47 | (1.13) | (.66) | (.48) | (.02) | (.50) | 11.19 | (5.45) | 124 | .74 | (6) | .71 | (6) | 8.01 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .92 | .04 | .96 | (.91) | - | (.91) | 12.35 | 7.92 | 124 | .76 | .72 | 7.30 | |||||||
| Year ended 9/30/2006 | 12.27 | .91 | .05 | .96 | (.93) | - | (.93) | 12.30 | 8.21 | 92 | .74 | .70 | 7.47 | |||||||
| Year ended 9/30/2005 | 12.26 | .88 | .01 | .89 | (.88) | - | (.88) | 12.27 | 7.44 | 66 | .77 | .75 | 7.09 | |||||||
| Year ended 9/30/2004 | 11.88 | .86 | .35 | 1.21 | (.83) | - | (.83) | 12.26 | 10.48 | 48 | .76 | .76 | 7.12 | |||||||
| Year ended 9/30/2003 | 9.62 | .92 | 2.25 | 3.17 | (.91) | - | (.91) | 11.88 | 34.17 | 28 | .77 | .77 | 8.36 | |||||||
| Class 529-B: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .42 | (1.13) | (.71) | (.43) | (.02) | (.45) | 11.19 | (5.85) | 20 | 1.58 | (6) | 1.55 | (6) | 7.17 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .82 | .04 | .86 | (.81) | - | (.81) | 12.35 | 7.06 | 21 | 1.56 | 1.53 | 6.50 | |||||||
| Year ended 9/30/2006 | 12.27 | .81 | .05 | .86 | (.83) | - | (.83) | 12.30 | 7.30 | 18 | 1.58 | 1.55 | 6.63 | |||||||
| Year ended 9/30/2005 | 12.26 | .77 | .01 | .78 | (.77) | - | (.77) | 12.27 | 6.52 | 15 | 1.64 | 1.61 | 6.22 | |||||||
| Year ended 9/30/2004 | 11.88 | .75 | .35 | 1.10 | (.72) | - | (.72) | 12.26 | 9.47 | 12 | 1.67 | 1.67 | 6.20 | |||||||
| Year ended 9/30/2003 | 9.62 | .82 | 2.25 | 3.07 | (.81) | - | (.81) | 11.88 | 33.01 | 7 | 1.73 | 1.73 | 7.36 | |||||||
| Class 529-C: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .42 | (1.13) | (.71) | (.43) | (.02) | (.45) | 11.19 | (5.84) | 51 | 1.57 | (6) | 1.54 | (6) | 7.18 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .82 | .04 | .86 | (.81) | - | (.81) | 12.35 | 7.07 | 52 | 1.55 | 1.52 | 6.50 | |||||||
| Year ended 9/30/2006 | 12.27 | .81 | .05 | .86 | (.83) | - | (.83) | 12.30 | 7.31 | 40 | 1.57 | 1.54 | 6.64 | |||||||
| Year ended 9/30/2005 | 12.26 | .77 | .01 | .78 | (.77) | - | (.77) | 12.27 | 6.53 | 32 | 1.63 | 1.60 | 6.23 | |||||||
| Year ended 9/30/2004 | 11.88 | .75 | .35 | 1.10 | (.72) | - | (.72) | 12.26 | 9.49 | 25 | 1.66 | 1.66 | 6.21 | |||||||
| Year ended 9/30/2003 | 9.62 | .82 | 2.25 | 3.07 | (.81) | - | (.81) | 11.88 | 33.03 | 16 | 1.71 | 1.71 | 7.43 | |||||||
| Class 529-E: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .45 | (1.13) | (.68) | (.46) | (.02) | (.48) | 11.19 | (5.60) | 7 | 1.06 | (6) | 1.03 | (6) | 7.70 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .88 | .04 | .92 | (.87) | - | (.87) | 12.35 | 7.62 | 7 | 1.04 | 1.01 | 7.01 | |||||||
| Year ended 9/30/2006 | 12.27 | .88 | .05 | .93 | (.90) | - | (.90) | 12.30 | 7.88 | 5 | 1.05 | 1.01 | 7.17 | |||||||
| Year ended 9/30/2005 | 12.26 | .84 | .01 | .85 | (.84) | - | (.84) | 12.27 | 7.09 | 4 | 1.10 | 1.07 | 6.77 | |||||||
| Year ended 9/30/2004 | 11.88 | .82 | .35 | 1.17 | (.79) | - | (.79) | 12.26 | 10.06 | 3 | 1.13 | 1.13 | 6.75 | |||||||
| Year ended 9/30/2003 | 9.62 | .88 | 2.25 | 3.13 | (.87) | - | (.87) | 11.88 | 33.73 | 2 | 1.18 | 1.18 | 7.94 | |||||||
| Class 529-F: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | $12.35 | $.48 | $ | (1.13) | $(.65) | $(.49) | $(.02) | $(.51) | $11.19 | (5.37)% | $6 | .56% | (6) | .52% | (6) | 8.19% | (6) | ||
| Year ended 9/30/2007 | 12.30 | .94 | .04 | .98 | (.93) | - | (.93) | 12.35 | 8.15 | 6 | .54 | .51 | 7.51 | |||||||
| Year ended 9/30/2006 | 12.27 | .94 | .05 | .99 | (.96) | - | (.96) | 12.30 | 8.41 | 4 | .55 | .52 | 7.66 | |||||||
| Year ended 9/30/2005 | 12.26 | .88 | .01 | .89 | (.88) | - | (.88) | 12.27 | 7.45 | 3 | .75 | .72 | 7.13 | |||||||
| Year ended 9/30/2004 | 11.88 | .85 | .35 | 1.20 | (.82) | - | (.82) | 12.26 | 10.34 | 2 | .88 | .88 | 6.99 | |||||||
| Year ended 9/30/2003 | 9.62 | .91 | 2.25 | 3.16 | (.90) | - | (.90) | 11.88 | 34.06 | 1 | .92 | .92 | 7.96 | |||||||
| Class R-1: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .42 | (1.13) | (.71) | (.43) | (.02) | (.45) | 11.19 | (5.85) | 12 | 1.59 | (6) | 1.55 | (6) | 7.16 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .82 | .04 | .86 | (.81) | - | (.81) | 12.35 | 7.08 | 13 | 1.57 | 1.52 | 6.50 | |||||||
| Year ended 9/30/2006 | 12.27 | .82 | .05 | .87 | (.84) | - | (.84) | 12.30 | 7.35 | 8 | 1.59 | 1.50 | 6.68 | |||||||
| Year ended 9/30/2005 | 12.26 | .78 | .01 | .79 | (.78) | - | (.78) | 12.27 | 6.61 | 6 | 1.61 | 1.52 | 6.35 | |||||||
| Year ended 9/30/2004 | 11.88 | .76 | .35 | 1.11 | (.73) | - | (.73) | 12.26 | 9.59 | 3 | 1.68 | 1.56 | 6.32 | |||||||
| Year ended 9/30/2003 | 9.62 | .83 | 2.25 | 3.08 | (.82) | - | (.82) | 11.88 | 33.16 | 1 | 2.01 | 1.60 | 7.20 | |||||||
| Class R-2: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .42 | (1.13) | (.71) | (.43) | (.02) | (.45) | 11.19 | (5.83) | 134 | 1.71 | (6) | 1.50 | (6) | 7.22 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .82 | .04 | .86 | (.81) | - | (.81) | 12.35 | 7.13 | 138 | 1.69 | 1.47 | 6.56 | |||||||
| Year ended 9/30/2006 | 12.27 | .82 | .05 | .87 | (.84) | - | (.84) | 12.30 | 7.37 | 106 | 1.90 | 1.48 | 6.70 | |||||||
| Year ended 9/30/2005 | 12.26 | .79 | .01 | .80 | (.79) | - | (.79) | 12.27 | 6.64 | 74 | 1.94 | 1.49 | 6.36 | |||||||
| Year ended 9/30/2004 | 11.88 | .77 | .35 | 1.12 | (.74) | - | (.74) | 12.26 | 9.63 | 44 | 2.10 | 1.53 | 6.36 | |||||||
| Year ended 9/30/2003 | 9.62 | .84 | 2.25 | 3.09 | (.83) | - | (.83) | 11.88 | 33.21 | 15 | 2.31 | 1.57 | 7.34 | |||||||
| Class R-3: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .45 | (1.13) | (.68) | (.46) | (.02) | (.48) | 11.19 | (5.61) | 191 | 1.08 | (6) | 1.05 | (6) | 7.67 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .88 | .04 | .92 | (.87) | - | (.87) | 12.35 | 7.58 | 186 | 1.07 | 1.04 | 6.98 | |||||||
| Year ended 9/30/2006 | 12.27 | .87 | .05 | .92 | (.89) | - | (.89) | 12.30 | 7.84 | 134 | 1.08 | 1.05 | 7.13 | |||||||
| Year ended 9/30/2005 | 12.26 | .84 | .01 | .85 | (.84) | - | (.84) | 12.27 | 7.06 | 97 | 1.13 | 1.10 | 6.74 | |||||||
| Year ended 9/30/2004 | 11.88 | .82 | .35 | 1.17 | (.79) | - | (.79) | 12.26 | 10.05 | 58 | 1.15 | 1.14 | 6.76 | |||||||
| Year ended 9/30/2003 | 9.62 | .88 | 2.25 | 3.13 | (.87) | - | (.87) | 11.88 | 33.71 | 14 | 1.28 | 1.18 | 7.74 | |||||||
| Class R-4: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .46 | (1.13) | (.67) | (.47) | (.02) | (.49) | 11.19 | (5.47) | 127 | .77 | (6) | .74 | (6) | 7.97 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .92 | .04 | .96 | (.91) | - | (.91) | 12.35 | 7.93 | 118 | .75 | .72 | 7.30 | |||||||
| Year ended 9/30/2006 | 12.27 | .91 | .05 | .96 | (.93) | - | (.93) | 12.30 | 8.19 | 73 | .75 | .72 | 7.46 | |||||||
| Year ended 9/30/2005 | 12.26 | .88 | .01 | .89 | (.88) | - | (.88) | 12.27 | 7.46 | 42 | .75 | .72 | 7.14 | |||||||
| Year ended 9/30/2004 | 11.88 | .86 | .35 | 1.21 | (.83) | - | (.83) | 12.26 | 10.45 | 24 | .79 | .78 | 7.11 | |||||||
| Year ended 9/30/2003 | 9.62 | .92 | 2.25 | 3.17 | (.91) | - | (.91) | 11.88 | 34.17 | 9 | .86 | .83 | 8.13 | |||||||
| Class R-5: | ||||||||||||||||||||
| Six months ended 3/31/2008 | (5) | 12.35 | .48 | (1.13) | (.65) | (.49) | (.02) | (.51) | 11.19 | (5.32) | 120 | .45 | (6) | .42 | (6) | 8.29 | (6) | |||
| Year ended 9/30/2007 | 12.30 | .96 | .04 | 1.00 | (.95) | - | (.95) | 12.35 | 8.26 | 137 | .44 | .41 | 7.61 | |||||||
| Year ended 9/30/2006 | 12.27 | .95 | .05 | 1.00 | (.97) | - | (.97) | 12.30 | 8.51 | 84 | .46 | .42 | 7.75 | |||||||
| Year ended 9/30/2005 | 12.26 | .92 | .01 | .93 | (.92) | - | (.92) | 12.27 | 7.78 | 63 | .46 | .43 | 7.37 | |||||||
| Year ended 9/30/2004 | 11.88 | .90 | .35 | 1.25 | (.87) | - | (.87) | 12.26 | 10.80 | 74 | .47 | .47 | 7.39 | |||||||
| Year ended 9/30/2003 | 9.62 | .95 | 2.25 | 3.20 | (.94) | - | (.94) | 11.88 | 34.61 | 75 | .52 | .52 | 8.77 | |||||||
| Six months ended | |||||||||||||||
| March 31, | Year ended September 30 | ||||||||||||||
2008(5) | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||
| Portfolio turnover rate for all classes of shares | 16% | 42% | 41% | 39% | 39% | 41% | |||||||||
| (1) Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year. | ||||||||||||||||||||
| (2) Based on average shares outstanding. | ||||||||||||||||||||
| (3) Total returns exclude any applicable sales charges, including contingent deferred sales charges. | ||||||||||||||||||||
| (4) This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes. | ||||||||||||||||||||
| (5) Unaudited. | ||||||||||||||||||||
| (6) Annualized. | ||||||||||||||||||||
| See Notes to Financial Statements | ||||||||||||||||||||
Other share class results
unaudited
Class B, Class C, Class F and Class 529
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.
| Average annual total returns for periods ended March 31, 2008: | ||||||||||||
| 1 year | 5 years | Life of class | ||||||||||
Class B shares — first sold 3/15/00 | ||||||||||||
| Reflecting applicable contingent deferred sales charge | ||||||||||||
| (CDSC), maximum of 5%, payable only if shares are | ||||||||||||
| sold within six years of purchase | –9.91 | % | 7.20 | % | 5.31 | % | ||||||
| Not reflecting CDSC | –5.50 | 7.50 | 5.31 | |||||||||
Class C shares — first sold 3/15/01 | ||||||||||||
| Reflecting CDSC, maximum of 1%, payable only if shares | ||||||||||||
| are sold within one year of purchase | –6.43 | 7.44 | 5.87 | |||||||||
| Not reflecting CDSC | –5.55 | 7.44 | 5.87 | |||||||||
Class F shares* — first sold 3/15/01 | ||||||||||||
| Not reflecting annual asset-based fee charged | ||||||||||||
| by sponsoring firm | –4.81 | 8.26 | 6.65 | |||||||||
Class 529-A shares† — first sold 2/19/02 | ||||||||||||
| Reflecting 3.75% maximum sales charge | –8.43 | 7.44 | 7.11 | |||||||||
| Not reflecting maximum sales charge | –4.83 | 8.26 | 7.78 | |||||||||
Class 529-B shares† — first sold 2/25/02 | ||||||||||||
| Reflecting applicable CDSC, maximum of 5%, payable | ||||||||||||
| only if shares are sold within six years of purchase | –10.01 | 7.02 | 7.09 | |||||||||
| Not reflecting CDSC | –5.61 | 7.33 | 7.09 | |||||||||
Class 529-C shares† — first sold 2/19/02 | ||||||||||||
| Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
| if shares are sold within one year of purchase | –6.48 | 7.34 | 6.88 | |||||||||
| Not reflecting CDSC | –5.60 | 7.34 | 6.88 | |||||||||
Class 529-E shares*† — first sold 3/15/02 | –5.12 | 7.90 | 7.12 | |||||||||
Class 529-F shares*† — first sold 9/16/02 | ||||||||||||
| Not reflecting annual asset-based fee charged | ||||||||||||
| by sponsoring firm | –4.64 | 8.32 | 10.34 | |||||||||
| *These shares are sold without any initial or contingent deferred sales charge. | ||||||||||||
† Results shown do not reflect the $10 initial account setup fee and an annual $10 account maintenance fee. | ||||||||||||
The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 24 to 27 for details.
For information regarding the differences among the various share classes, please refer to the fund’s prospectus.
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 period (October 1, 2007, through March 31, 2008).
Actual expenses:
The first line of each share class in the table on page 31 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 page 31 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 and 529-F 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 on the previous page. In addition, your ending account value would also be lower by the amount of these fees.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning account value 10/1/2007 | Ending account value 3/31/2008 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
| Class A -- actual return | $ | 1,000.00 | $ | 945.71 | $ | 3.21 | .66 | % | ||||||||
| Class A -- assumed 5% return | 1,000.00 | 1,021.70 | 3.34 | .66 | ||||||||||||
| Class B -- actual return | 1,000.00 | 942.01 | 6.99 | 1.44 | ||||||||||||
| Class B -- assumed 5% return | 1,000.00 | 1,017.80 | 7.26 | 1.44 | ||||||||||||
| Class C -- actual return | 1,000.00 | 941.84 | 7.18 | 1.48 | ||||||||||||
| Class C -- assumed 5% return | 1,000.00 | 1,017.60 | 7.47 | 1.48 | ||||||||||||
| Class F -- actual return | 1,000.00 | 945.49 | 3.45 | .71 | ||||||||||||
| Class F -- assumed 5% return | 1,000.00 | 1,021.45 | 3.59 | .71 | ||||||||||||
| Class 529-A -- actual return | 1,000.00 | 945.45 | 3.45 | .71 | ||||||||||||
| Class 529-A -- assumed 5% return | 1,000.00 | 1,021.45 | 3.59 | .71 | ||||||||||||
| Class 529-B -- actual return | 1,000.00 | 941.51 | 7.52 | 1.55 | ||||||||||||
| Class 529-B -- assumed 5% return | 1,000.00 | 1,017.25 | 7.82 | 1.55 | ||||||||||||
| Class 529-C -- actual return | 1,000.00 | 941.56 | 7.48 | 1.54 | ||||||||||||
| Class 529-C -- assumed 5% return | 1,000.00 | 1,017.30 | 7.77 | 1.54 | ||||||||||||
| Class 529-E -- actual return | 1,000.00 | 943.98 | 5.01 | 1.03 | ||||||||||||
| Class 529-E -- assumed 5% return | 1,000.00 | 1,019.85 | 5.20 | 1.03 | ||||||||||||
| Class 529-F -- actual return | 1,000.00 | 946.34 | 2.53 | .52 | ||||||||||||
| Class 529-F -- assumed 5% return | 1,000.00 | 1,022.40 | 2.63 | .52 | ||||||||||||
| Class R-1 -- actual return | 1,000.00 | 941.50 | 7.52 | 1.55 | ||||||||||||
| Class R-1 -- assumed 5% return | 1,000.00 | 1,017.25 | 7.82 | 1.55 | ||||||||||||
| Class R-2 -- actual return | 1,000.00 | 941.74 | 7.28 | 1.50 | ||||||||||||
| Class R-2 -- assumed 5% return | 1,000.00 | 1,017.50 | 7.57 | 1.50 | ||||||||||||
| Class R-3 -- actual return | 1,000.00 | 943.87 | 5.10 | 1.05 | ||||||||||||
| Class R-3 -- assumed 5% return | 1,000.00 | 1,019.75 | 5.30 | 1.05 | ||||||||||||
| Class R-4 -- actual return | 1,000.00 | 945.29 | 3.60 | .74 | ||||||||||||
| Class R-4 -- assumed 5% return | 1,000.00 | 1,021.30 | 3.74 | .74 | ||||||||||||
| Class R-5 -- actual return | 1,000.00 | 946.81 | 2.04 | .42 | ||||||||||||
| Class R-5 -- assumed 5% return | 1,000.00 | 1,022.90 | 2.12 | .42 | ||||||||||||
*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 (183), and divided by 366 (to reflect the one-half year period).
Offices of the fund
and of the investment adviser
Capital Research and
Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
6455 Irvine Center Drive
Irvine, CA 92618
Transfer agent for shareholder accounts
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 25065
Santa Ana, CA 92799-5065
P.O. Box 659522
San Antonio, TX 78265-9522
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
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, CA 90071-2228
Independent registered
public accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Guidelines” — which describes how we vote proxies relating to portfolio securities — is available free of charge on the U.S. Securities and Exchange Commission (SEC) website at sec.gov, on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the SEC for the 12 months ended June 30 by August 31. The report also is available on the SEC and American Funds websites.
A complete March 31, 2008, portfolio of American High-Income Trust’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).
American High-Income Trust 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. (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS.
This report is for the information of shareholders of American High-Income Trust, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after June 30, 2008, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
[logo - American Funds®]
The right choice for the long term®
What makes American Funds different?
For more than 75 years, we have followed a consistent philosophy to benefit our investors. Our 30 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.
Our unique combination of strengths includes these five factors:
| •A long-term, value-oriented approach |
| We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term. |
| •An extensive global research effort |
| Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets. |
| •The multiple portfolio counselor system |
| Our unique method of portfolio management, developed 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives. |
| •Experienced investment professionals |
| American Funds portfolio counselors have an average of 26 years of investment experience, providing a wealth of knowledge and experience that few organizations have. |
| •A commitment to low operating expenses |
| The American Funds provide exceptional value for shareholders, with operating expenses that are among the lowest in the mutual fund industry. |
American Funds span a range of investment objectives
| •Growth funds |
AMCAP Fund® |
EuroPacific Growth Fund® |
The Growth Fund of America® |
The New Economy Fund® |
New Perspective Fund® |
New World FundSM |
SMALLCAP World Fund® |
| •Growth-and-income funds |
American Mutual Fund® |
Capital World Growth and Income FundSM |
Fundamental InvestorsSM |
The Investment Company of America® |
Washington Mutual Investors FundSM |
| •Equity-income funds |
Capital Income Builder® |
The Income Fund of America® |
| •Balanced fund |
American Balanced Fund® |
| •Bond funds |
>American High-Income TrustSM |
The Bond Fund of AmericaSM |
Capital World Bond Fund® |
Intermediate Bond Fund of America® |
Short-Term Bond Fund of AmericaSM |
U.S. Government Securities FundSM |
| •Tax-exempt bond funds |
American High-Income Municipal Bond Fund® |
Limited Term Tax-Exempt Bond Fund of AmericaSM |
The Tax-Exempt Bond Fund of America® |
| State-specific tax-exempt funds |
The Tax-Exempt Fund of California® |
The Tax-Exempt Fund of Maryland® |
The Tax-Exempt Fund of Virginia® |
| •Money market funds |
The Cash Management Trust of America® |
The Tax-Exempt Money Fund of AmericaSM |
The U.S. Treasury Money Fund of AmericaSM |
•American Funds Target Date Retirement Series® |
The Capital Group Companies
American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust
Lit. No. MFGESR-921-0508P
Litho in USA RCG/L/8076-S10054
10% post-consumer waste
Printed with inks containing soy and/or vegetable oil
ITEM 2 – Code of Ethics
Not applicable for filing of semi-annual reports to shareholders.
ITEM 3 – Audit Committee Financial Expert
Not applicable for filing of semi-annual reports to shareholders.
ITEM 4 – Principal Accountant Fees and Services
Not applicable for filing of semi-annual reports to shareholders.
ITEM 5 – Audit Committee of Listed Registrants
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6 – Schedule of Investments
[logo – American Funds®]
American High-Income TrustSM
Investment portfolio
March 31, 2008
unaudited
| Bonds, notes & other debt instruments — 86.52% | Principal amount (000) | Market value (000) | ||||||
| CORPORATE BONDS, NOTES & LOANS — 80.84% | ||||||||
| CONSUMER DISCRETIONARY — 22.77% | ||||||||
| CCH II, LLC and CCH II Capital Corp. 10.25% 2010 | $ | 50,480 | $ | 46,189 | ||||
| Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 11.75% 2011 | 6,000 | 3,638 | ||||||
| Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 13.50% 2011 | 5,525 | 4,047 | ||||||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.00% 20121 | 50,950 | 47,001 | ||||||
| Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 12.125% 2012 | 2,850 | 1,703 | ||||||
| CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013 | 43,890 | 37,745 | ||||||
Charter Communications Operating, LLC, Term Loan B, 5.26% 20142,3,4 | 58,404 | 49,502 | ||||||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.375% 20141 | 28,700 | 25,974 | ||||||
Charter Communications Operating, LLC, Term Loan B, 8.50% 20142,3,4 | 26,750 | 26,041 | ||||||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 10.875% 20141 | 26,500 | 26,235 | ||||||
| CCH I, LLC and CCH I Capital Corp. 11.00% 2015 | 78,275 | 54,792 | ||||||
Univision Communications, Inc., Second Lien Term Loan B, 5.204% 20092,3,4 | 11,595 | 10,986 | ||||||
| Univision Communications Inc. 7.85% 2011 | 23,300 | 20,795 | ||||||
Univision Communications, Inc., First Lien Term Loan B, 5.494% 20142,3,4 | 60,220 | 47,687 | ||||||
Univision Communications Inc. 9.75% 20151,5 | 139,380 | 85,022 | ||||||
Michaels Stores, Inc., Term Loan B, 5.438% 20132,3,4 | 20,100 | 16,917 | ||||||
| Michaels Stores, Inc. 10.00% 2014 | 95,025 | 83,622 | ||||||
Michaels Stores, Inc. 0%/13.00% 20166 | 18,900 | 8,694 | ||||||
| Michaels Stores, Inc. 11.375% 2016 | 9,250 | 7,308 | ||||||
Allison Transmission Holdings, Inc., Term Loan B, 5.75% 20142,3,4 | 19,303 | 17,020 | ||||||
Allison Transmission Holdings, Inc. 11.00% 20151 | 30,750 | 26,906 | ||||||
Allison Transmission Holdings, Inc. 11.25% 20151,5 | 74,975 | 63,354 | ||||||
TL Acquisitions, Inc., Term Loan B, 5.20% 20142,3,4 | 41,492 | 35,703 | ||||||
Thomson Learning 0%/13.25% 20151,6 | 16,045 | 11,552 | ||||||
Thomson Learning 10.50% 20151 | 51,790 | 44,798 | ||||||
Delphi Automotive Systems Corp. 6.55% 20067 | 12,730 | 4,074 | ||||||
Delphi Automotive Systems Corp. 6.50% 20097 | 34,600 | 11,418 | ||||||
Delphi Corp. 6.50% 20137 | 17,190 | 5,501 | ||||||
Delphi Automotive Systems Corp. 7.125% 20297 | 14,300 | 4,576 | ||||||
Delphi Trust I 8.25% 20337 | 4,470 | 648 | ||||||
| General Motors Corp. 6.375% 2008 | 695 | 690 | ||||||
| General Motors Corp. 7.20% 2011 | 17,375 | 14,552 | ||||||
| General Motors Corp. 7.125% 2013 | 29,250 | 22,596 | ||||||
| General Motors Corp. 7.25% 2013 | € | 3,000 | 3,766 | |||||
| General Motors Corp. 7.70% 2016 | $ | 3,950 | 2,893 | |||||
| General Motors Corp. 8.80% 2021 | 30,520 | 23,272 | ||||||
| General Motors Corp. 9.40% 2021 | 11,000 | 8,415 | ||||||
| General Motors Corp. 8.25% 2023 | 3,650 | 2,573 | ||||||
| General Motors Corp. 8.375% 2033 | 4,455 | 3,163 | ||||||
| CanWest Media Inc., Series B, 8.00% 2012 | 73,298 | 69,999 | ||||||
CanWest MediaWorks Inc. 9.25% 20151 | 3,700 | 3,422 | ||||||
| Mohegan Tribal Gaming Authority 6.375% 2009 | 36,500 | 36,683 | ||||||
| Mohegan Tribal Gaming Authority 8.00% 2012 | 7,775 | 7,153 | ||||||
| Mohegan Tribal Gaming Authority 6.125% 2013 | 1,225 | 1,124 | ||||||
| Mohegan Tribal Gaming Authority 7.125% 2014 | 22,100 | 18,233 | ||||||
| Mohegan Tribal Gaming Authority 6.875% 2015 | 3,775 | 3,058 | ||||||
| K. Hovnanian Enterprises, Inc. 6.00% 2010 | 4,500 | 2,948 | ||||||
| K. Hovnanian Enterprises, Inc. 8.875% 2012 | 16,815 | 9,416 | ||||||
| K. Hovnanian Enterprises, Inc. 7.75% 2013 | 14,325 | 7,664 | ||||||
| K. Hovnanian Enterprises, Inc. 6.375% 2014 | 2,600 | 1,768 | ||||||
| K. Hovnanian Enterprises, Inc. 6.50% 2014 | 4,795 | 3,261 | ||||||
| K. Hovnanian Enterprises, Inc. 6.25% 2015 | 6,790 | 4,583 | ||||||
| K. Hovnanian Enterprises, Inc. 6.25% 2016 | 8,875 | 6,035 | ||||||
| K. Hovnanian Enterprises, Inc. 7.50% 2016 | 10,735 | 7,514 | ||||||
| K. Hovnanian Enterprises, Inc. 8.625% 2017 | 28,110 | 21,785 | ||||||
| Tenneco Automotive Inc., Series B, 10.25% 2013 | 7,408 | 7,890 | ||||||
| Tenneco Automotive Inc. 8.625% 2014 | 45,225 | 44,660 | ||||||
Tenneco Automotive Inc. 8.125% 20151 | 9,700 | 9,676 | ||||||
Dex Media, Inc., Series B, 0%/9.00% 20136 | 9,000 | 6,525 | ||||||
| R.H. Donnelley Corp., Series A-1, 6.875% 2013 | 10,150 | 6,242 | ||||||
| R.H. Donnelley Corp., Series A-2, 6.875% 2013 | 9,000 | 5,535 | ||||||
| Dex Media, Inc., Series B, 8.00% 2013 | 3,075 | 2,260 | ||||||
| R.H. Donnelley Corp., Series A-3, 8.875% 2016 | 38,650 | 24,639 | ||||||
R.H. Donnelley Corp. 8.875% 20171 | 18,325 | 11,545 | ||||||
| Ford Capital BV 9.50% 2010 | 4,000 | 3,620 | ||||||
| Ford Motor Co. 9.50% 2011 | 1,000 | 895 | ||||||
Ford Motor Co., Term Loan B, 5.80% 20132,3,4 | 38,701 | 31,862 | ||||||
| Ford Motor Co. 6.50% 2018 | 18,608 | 12,560 | ||||||
| Ford Motor Co. 8.875% 2022 | 9,390 | 7,348 | ||||||
| Toys “R” Us, Inc. 7.625% 2011 | 41,965 | 34,306 | ||||||
Toys “R” Us-Delaware, Inc., Term Loan B, 7.315% 20122,3,4 | 17,512 | 15,871 | ||||||
| American Media Operations, Inc., Series B, 10.25% 2009 | 52,770 | 35,620 | ||||||
American Media Operations, Inc., Series B, 10.25% 20091 | 1,865 | 1,259 | ||||||
| American Media Operations, Inc. 8.875% 2011 | 17,615 | 11,714 | ||||||
American Media Operations, Inc. 8.875% 20111 | 640 | 426 | ||||||
| NTL Cable PLC 8.75% 2014 | 41,000 | 37,002 | ||||||
| NTL Cable PLC 8.75% 2014 | € | 4,500 | 6,129 | |||||
| NTL Cable PLC 9.75% 2014 | £ | 3,000 | 5,068 | |||||
| MGM MIRAGE 6.00% 2009 | $ | 18,500 | 18,454 | |||||
| MGM MIRAGE 8.50% 2010 | 3,100 | 3,216 | ||||||
| Mandalay Resort Group 6.375% 2011 | 1,500 | 1,432 | ||||||
| MGM MIRAGE 6.75% 2012 | 1,700 | 1,585 | ||||||
| MGM MIRAGE 6.75% 2013 | 16,855 | 15,591 | ||||||
| MGM MIRAGE 6.625% 2015 | 4,400 | 3,850 | ||||||
| MGM MIRAGE 7.50% 2016 | 4,000 | 3,620 | ||||||
| AMC Entertainment Inc., Series B, 8.625% 2012 | 24,450 | 24,817 | ||||||
| AMC Entertainment Inc. 8.00% 2014 | 8,175 | 6,969 | ||||||
| AMC Entertainment Inc., Series B, 11.00% 2016 | 10,000 | 9,412 | ||||||
| Young Broadcasting Inc. 10.00% 2011 | 57,845 | 36,587 | ||||||
| Young Broadcasting Inc. 8.75% 2014 | 4,040 | 2,404 | ||||||
| Boyd Gaming Corp. 7.75% 2012 | 23,675 | 22,018 | ||||||
| Boyd Gaming Corp. 6.75% 2014 | 15,000 | 12,375 | ||||||
| Boyd Gaming Corp. 7.125% 2016 | 5,500 | 4,455 | ||||||
| William Lyon Homes, Inc. 7.625% 2012 | 18,050 | 9,115 | ||||||
| William Lyon Homes, Inc. 10.75% 2013 | 20,395 | 10,707 | ||||||
| William Lyon Homes, Inc. 7.50% 2014 | 37,860 | 18,741 | ||||||
Pinnacle Entertainment, Inc. 7.50% 20151 | 45,800 | 36,296 | ||||||
| Quebecor Media Inc. 7.75% 2016 | 24,220 | 22,222 | ||||||
| Quebecor Media Inc. 7.75% 2016 | 14,725 | 13,510 | ||||||
| Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. 6.625% 2014 | 35,425 | 34,274 | ||||||
Technical Olympic USA, Inc. 9.00% 20107 | 22,486 | 11,693 | ||||||
Technical Olympic USA, Inc. 9.00% 20107 | 7,325 | 3,809 | ||||||
Technical Olympic USA, Inc. 9.25% 20111 | 36,325 | 18,617 | ||||||
Grupo Posadas, SA de CV 8.75% 20111 | 31,945 | 33,303 | ||||||
| Grupo Posadas, SA de CV 8.75% 2011 | 750 | 782 | ||||||
| Bon-Ton Department Stores, Inc. 10.25% 2014 | 50,375 | 33,877 | ||||||
| Kabel Deutschland GmbH 10.625% 2014 | 34,275 | 33,804 | ||||||
| Burlington Coat Factory Warehouse Corp. 11.125% 2014 | 42,550 | 33,083 | ||||||
Hanesbrands Inc., Series B, 8.204% 20142 | 34,550 | 30,836 | ||||||
| Education Management LLC and Education Management Finance Corp. 8.75% 2014 | 4,125 | 3,506 | ||||||
| Education Management LLC and Education Management Finance Corp. 10.25% 2016 | 32,770 | 26,216 | ||||||
| Radio One, Inc., Series B, 8.875% 2011 | 19,735 | 15,936 | ||||||
| Radio One, Inc. 6.375% 2013 | 18,325 | 13,286 | ||||||
Cinemark USA, Inc., Term Loan B, 4.82% 20132,3,4 | 5,656 | 5,107 | ||||||
Cinemark, Inc. 0%/9.75% 20146 | 26,025 | 23,553 | ||||||
| Circus and Eldorado Joint Venture and Silver Legacy Resort Casino 10.125% 2012 | 28,180 | 28,532 | ||||||
| Gaylord Entertainment Co. 8.00% 2013 | 18,425 | 17,181 | ||||||
| Gaylord Entertainment Co. 6.75% 2014 | 12,850 | 11,244 | ||||||
| Idearc Inc. 8.00% 2016 | 43,500 | 28,384 | ||||||
DaimlerChrysler Financial Services Americas LLC, First Lien Term Loan, 6.80% 20122,3,4 | 20,666 | 17,253 | ||||||
DaimlerChrysler Financial Services Americas LLC, Second Lien Term Loan, 9.30% 20132,3,4 | 15,800 | 11,021 | ||||||
Claire’s Stores, Inc., Term Loan B, 5.994% 20142,3,4 | 9,652 | 7,349 | ||||||
| Claire’s Stores, Inc. 9.25% 2015 | 32,275 | 20,414 | ||||||
| Seneca Gaming Corp., Series B, 7.25% 2012 | 19,825 | 18,784 | ||||||
| Seneca Gaming Corp. 7.25% 2012 | 8,440 | 7,997 | ||||||
| Sally Holdings LLC and Sally Capital Inc. 9.25% 2014 | 26,550 | 26,616 | ||||||
Edcon Pty Ltd. 7.856% 20142 | € | 22,425 | 23,549 | |||||
Edcon Pty Ltd. 10.106% 20152 | 4,000 | 2,874 | ||||||
| iesy Repository GmbH 10.125% 2015 | 4,750 | 7,088 | ||||||
iesy Repository GmbH 10.375% 20151 | $ | 20,475 | 18,530 | |||||
| CSC Holdings, Inc., Series B, 8.125% 2009 | 9,975 | 10,100 | ||||||
| Cablevision Systems Corp., Series B, 8.00% 2012 | 14,865 | 14,531 | ||||||
| Morris Publishing Group, LLC and Morris Publishing Finance Co., Series B, 7.00% 2013 | 41,048 | 23,603 | ||||||
| Cooper-Standard Automotive Inc. 7.00% 2012 | 18,025 | 15,592 | ||||||
| Cooper-Standard Automotive Inc. 8.375% 2014 | 9,275 | 7,072 | ||||||
| Atlantic Broadband Finance, LLC and Atlantic Broadband Finance, Inc. 9.375% 2014 | 23,950 | 21,345 | ||||||
| Beazer Homes USA, Inc. 8.625% 2011 | 9,600 | 7,440 | ||||||
| Beazer Homes USA, Inc. 8.125% 2016 | 18,420 | 13,677 | ||||||
LBI Media, Inc. 8.50% 20171 | 24,210 | 21,093 | ||||||
Local T.V. Finance LLC 9.25% 20151,5 | 25,560 | 20,608 | ||||||
| Dillard’s, Inc. 6.625% 2008 | 5,050 | 5,063 | ||||||
| Dillard Department Stores, Inc. 9.125% 2011 | 8,230 | 7,942 | ||||||
| Dillard Department Stores, Inc. 7.85% 2012 | 1,900 | 1,748 | ||||||
| Dillard’s, Inc. 7.13% 2018 | 4,000 | 3,120 | ||||||
| Dillard’s, Inc. 7.00% 2028 | 3,000 | 2,047 | ||||||
| J.C. Penney Co., Inc. 8.00% 2010 | 14,995 | 15,654 | ||||||
| J.C. Penney Co., Inc. 9.00% 2012 | 2,980 | 3,281 | ||||||
| Dollarama Group LP and Dollarama Corp. 8.875% 2012 | 19,035 | 17,988 | ||||||
| KB Home 7.75% 2010 | 6,000 | 5,767 | ||||||
| KB Home 5.875% 2015 | 4,185 | 3,641 | ||||||
| KB Home 6.25% 2015 | 9,285 | 8,275 | ||||||
| Sealy Mattress Co. 8.25% 2014 | 20,270 | 17,027 | ||||||
| Visteon Corp. 8.25% 2010 | 20,000 | 16,450 | ||||||
Goodyear Tire & Rubber Co. 8.663% 20092 | 6,975 | 6,966 | ||||||
| Goodyear Tire & Rubber Co. 8.625% 2011 | 8,960 | 9,442 | ||||||
| Liberty Media Corp. 7.75% 2009 | 4,750 | 4,783 | ||||||
| Liberty Media Corp. 8.25% 2030 | 12,675 | 10,700 | ||||||
| Warner Music Group 7.375% 2014 | 19,610 | 15,198 | ||||||
| Meritage Corp. 7.00% 2014 | 9,250 | 7,053 | ||||||
| Meritage Homes Corp. 6.25% 2015 | 10,575 | 7,984 | ||||||
| Warnaco, Inc. 8.875% 2013 | 13,900 | 14,456 | ||||||
| Dollar General Corp. 10.625% 2015 | 8,725 | 8,463 | ||||||
Dollar General Corp. 11.875% 20172,5 | 6,450 | 5,676 | ||||||
Regal Cinemas Corp., Series B, 9.375% 20128 | 13,300 | 13,742 | ||||||
| Standard Pacific Corp. 5.125% 2009 | 3,750 | 3,281 | ||||||
| Standard Pacific Corp. 6.875% 2011 | 1,905 | 1,443 | ||||||
| Standard Pacific Corp. 7.75% 2013 | 3,920 | 2,871 | ||||||
| Standard Pacific Corp. 6.25% 2014 | 5,685 | 4,093 | ||||||
| Standard Pacific Corp. 7.00% 2015 | 2,715 | 1,962 | ||||||
Neiman Marcus Group, Inc. 9.00% 20155 | 13,330 | 13,397 | ||||||
TRW Automotive Inc. 7.00% 20141 | 13,975 | 12,962 | ||||||
| Vidéotron Ltée 6.875% 2014 | 6,780 | 6,288 | ||||||
| Vidéotron Ltée 6.375% 2015 | 6,435 | 5,663 | ||||||
WDAC Intermediate Corp. 8.375% 20141,8 | 10,500 | 8,190 | ||||||
| WDAC Intermediate Corp. 8.50% 2014 | € | 1,750 | 2,014 | |||||
Seminole Tribe of Florida 7.804% 20201,3,8 | $ | 10,050 | 10,188 | |||||
| MDC Holdings, Inc. 7.00% 2012 | 10,000 | 10,099 | ||||||
| WCI Communities, Inc. 9.125% 2012 | 15,850 | 8,163 | ||||||
| D.R. Horton, Inc. 8.00% 2009 | 5,770 | 5,698 | ||||||
| D.R. Horton, Inc. 7.875% 2011 | 1,530 | 1,490 | ||||||
| Mediacom Broadband LLC and Mediacom Broadband Corp. 8.50% 2015 | 8,375 | 7,077 | ||||||
| DIRECTV Holdings LLC and DIRECTV Financing Co., Inc. 8.375% 2013 | 6,031 | 6,144 | ||||||
| Toll Corp. 8.25% 2011 | 5,500 | 5,032 | ||||||
| Viacom Inc. 5.75% 2011 | 4,500 | 4,551 | ||||||
| Royal Caribbean Cruises Ltd. 8.00% 2010 | 3,200 | 3,270 | ||||||
| News America Inc. 6.75% 2038 | 2,990 | 3,140 | ||||||
Carmike Cinemas, Inc., Delayed Draw, Term Loan, 6.49% 20122,3,4 | 1,974 | 1,858 | ||||||
| Riddell Bell Holdings Inc. 8.375% 2012 | 1,450 | 1,185 | ||||||
KAC Acquisition Corp. 8.00% 20261,5,8 | 203 | 203 | ||||||
| 2,782,329 | ||||||||
| INDUSTRIALS — 9.62% | ||||||||
Nielsen Finance LLC, Term Loan B, 5.346% 20132,3,4 | 9,751 | 8,815 | ||||||
| Nielsen Finance LLC and Nielsen Finance Co. 10.00% 2014 | 69,500 | 69,500 | ||||||
Nielsen Finance LLC and Nielsen Finance Co. 0%/12.50% 20166 | 81,050 | 51,669 | ||||||
| Calair LLC and Calair Capital Corp. 8.125% 2008 | 6,115 | 6,115 | ||||||
| Continental Airlines, Inc. 8.75% 2011 | 21,200 | 16,589 | ||||||
Continental Airlines, Inc., Series 2000-2, Class A-2, 7.487% 20123 | 5,000 | 4,960 | ||||||
Continental Airlines, Inc., Series 2000-2, Class C, 8.312% 20123 | 3,426 | 3,203 | ||||||
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20173 | 5,813 | 5,435 | ||||||
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20183 | 10,844 | 10,085 | ||||||
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20183 | 11,057 | 9,951 | ||||||
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20193 | 5,236 | 5,039 | ||||||
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20193 | 5,546 | 5,199 | ||||||
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20203 | 9,198 | 8,868 | ||||||
Continental Airlines, Inc., Series 2003-ERJ3, Class A, 7.875% 20203 | 14,176 | 12,049 | ||||||
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20223 | 3,171 | 3,053 | ||||||
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20223 | 2,843 | 2,851 | ||||||
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20223 | 382 | 382 | ||||||
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20223 | 11,146 | 10,477 | ||||||
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B1, 6.45% 20142,3,4 | 16,963 | 16,401 | ||||||
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B2, 6.99% 20142,3,4 | 16,849 | 16,291 | ||||||
DAE Aviation Holdings, Inc. 11.25% 20151 | 66,070 | 65,409 | ||||||
| AMR Corp., Series B, 10.45% 2011 | 1,850 | 1,690 | ||||||
American Airlines, Inc., Series 2001-1, Class A-2, 6.817% 20123 | 17,375 | 16,376 | ||||||
American Airlines, Inc., Series 2001-2, Class B, 8.608% 20123 | 8,690 | 8,342 | ||||||
| AMR Corp. 9.00% 2012 | 16,155 | 12,035 | ||||||
American Airlines, Inc., Series 2001-2, Class A-2, 7.858% 20133 | 1,300 | 1,302 | ||||||
| AMR Corp. 9.00% 2016 | 1,475 | 1,040 | ||||||
American Airlines, Inc., Series 2001-1, Class B, 7.377% 20193 | 21,517 | 17,644 | ||||||
AMR Corp. 9.88% 20208 | 1,275 | 688 | ||||||
AMR Corp. 9.80% 20218 | 2,555 | 1,343 | ||||||
AMR Corp. 10.00% 20218 | 9,000 | 4,843 | ||||||
ARAMARK Corp., Term Loan B, 4.571% 20142,3,4 | 25,549 | 23,895 | ||||||
ARAMARK Corp., Term Loan B, Letter of Credit, 4.571% 20142,3,4 | 1,496 | 1,399 | ||||||
ARAMARK Corp. 6.739% 20152 | 8,770 | 7,783 | ||||||
| ARAMARK Corp. 8.50% 2015 | 28,745 | 28,961 | ||||||
| Hawker Beechcraft Acquisition Co., LLC 8.50% 2015 | 4,975 | 5,137 | ||||||
Hawker Beechcraft Acquisition Co., LLC 8.875% 20155 | 48,710 | 50,050 | ||||||
| Hawker Beechcraft Acquisition Co., LLC 9.75% 2017 | 2,880 | 2,880 | ||||||
Ashtead Group PLC 8.625% 20151 | 22,225 | 17,891 | ||||||
Ashtead Capital, Inc. 9.00% 20161 | 46,420 | 37,832 | ||||||
NTK Holdings Inc. 0%/10.75% 20143,6 | 53,460 | 26,195 | ||||||
| THL Buildco, Inc. 8.50% 2014 | 34,620 | 25,792 | ||||||
US Investigations Services, Inc., Term Loan B, 5.599% 20152,3,4 | 10,702 | 9,177 | ||||||
US Investigations Services, Inc. 10.50% 20151 | 34,825 | 28,557 | ||||||
US Investigations Services, Inc. 11.75% 20161 | 12,875 | 9,656 | ||||||
United Air Lines, Inc., 1991 Equipment Trust Certificates, Series A, 10.11% 20063,7,8 | 1,136 | 0 | ||||||
United Air Lines, Inc., Series 2000-2, Class B, 7.811% 20113,7 | 17,433 | 20,048 | ||||||
United Air Lines, Inc., Series 2000-2, Class A-2, 7.186% 20123 | 5,024 | 4,974 | ||||||
United Air Lines, Inc., Term Loan B, 4.625% 20142,3,4 | 10,028 | 8,053 | ||||||
United Air Lines, Inc., Series 2001-1, Class A-1, 6.071% 20143 | 3,271 | 3,283 | ||||||
United Air Lines, Inc., Series 2001-1, Class A-3, 6.602% 20153 | 2,748 | 2,721 | ||||||
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20211,3,8 | 9,135 | 7,901 | ||||||
| Allied Waste North America, Inc., Series B, 6.50% 2010 | 9,500 | 9,548 | ||||||
| Allied Waste North America, Inc., Series B, 5.75% 2011 | 8,450 | 8,302 | ||||||
| Allied Waste North America, Inc., Series B, 6.125% 2014 | 11,000 | 10,670 | ||||||
| Allied Waste North America, Inc., Series B, 7.375% 2014 | 15,705 | 15,528 | ||||||
| Allied Waste North America, Inc. 6.875% 2017 | 2,800 | 2,758 | ||||||
| DRS Technologies, Inc. 6.875% 2013 | 21,630 | 21,306 | ||||||
| DRS Technologies, Inc. 6.625% 2016 | 5,400 | 5,306 | ||||||
| DRS Technologies, Inc. 7.625% 2018 | 18,175 | 18,266 | ||||||
| Accuride Corp. 8.50% 2015 | 53,595 | 43,948 | ||||||
| Navios Maritime Holdings Inc. 9.50% 2014 | 37,065 | 37,111 | ||||||
Delta Air Lines, Inc., Series 2000-1, Class A-1, 7.379% 20113 | 1,348 | 1,327 | ||||||
Delta Air Lines, Inc., Series 2000-1, Class A-2, 7.57% 20123 | 17,018 | 16,965 | ||||||
Delta Air Lines, Inc., Series 2000-1, Class B, 7.92% 20123 | 3,500 | 3,273 | ||||||
Delta Air Lines, Inc., Second Lien Term Loan B, 8.082% 20142,3,4 | 11,910 | 9,451 | ||||||
| DynCorp International and DIV Capital Corp., Series A, 9.50% 2013 | 29,367 | 30,028 | ||||||
Atrium Companies, Inc., Term Loan B, 7.21% 20122,3,4 | 24,208 | 19,245 | ||||||
ACIH, Inc. 11.50% 20121 | 37,235 | 10,612 | ||||||
Northwest Airlines, Inc., Term Loan B, 6.20% 20132,3,4 | 15,461 | 14,321 | ||||||
Northwest Airlines, Inc., Term Loan A, 4.45% 20182,3,4 | 11,791 | 10,435 | ||||||
| TFM, SA de CV 9.375% 2012 | 21,000 | 21,788 | ||||||
| RBS Global, Inc. and Rexnord LLC 9.50% 2014 | 11,675 | 10,975 | ||||||
| RBS Global, Inc. and Rexnord LLC 8.875% 2016 | 8,475 | 7,543 | ||||||
RSC Holdings III, LLC, Second Lien Term Loan B, 8.15% 20132,3,4 | 16,541 | 14,143 | ||||||
| Kansas City Southern Railway Co. 9.50% 2008 | 3,150 | 3,209 | ||||||
| Kansas City Southern Railway Co. 7.50% 2009 | 10,067 | 10,268 | ||||||
| TransDigm Inc. 7.75% 2014 | 11,960 | 12,020 | ||||||
| H&E Equipment Services, Inc. 8.375% 2016 | 11,875 | 9,856 | ||||||
| United Rentals (North America), Inc., Series B, 6.50% 2012 | 10,675 | 9,714 | ||||||
CEVA Group PLC 10.00% 20141 | 9,675 | 9,409 | ||||||
| Mobile Services Group, Inc. 9.75% 2014 | 10,000 | 9,400 | ||||||
Quebecor World Inc. 8.75% 20161,7 | 17,615 | 8,455 | ||||||
| Esterline Technologies Corp. 6.625% 2017 | 8,250 | 8,291 | ||||||
Sequa Corp., Term Loan B, 5.95% 20142,3,4 | 8,628 | 8,184 | ||||||
| Hertz Corp. 8.875% 2014 | 3,175 | 3,024 | ||||||
| Hertz Corp. 10.50% 2016 | 4,250 | 4,000 | ||||||
Esco Corp. 6.675% 20131,2 | 950 | 822 | ||||||
Esco Corp. 8.625% 20131 | 5,600 | 5,460 | ||||||
| Alion Science and Technology Corp. 10.25% 2015 | 10,350 | 5,900 | ||||||
| Park-Ohio Industries, Inc. 8.375% 2014 | 6,225 | 4,949 | ||||||
| 1,175,639 | ||||||||
| TELECOMMUNICATION SERVICES — 9.62% | ||||||||
| Windstream Corp. 8.125% 2013 | 93,400 | 92,233 | ||||||
| Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015 | 31,370 | 32,073 | ||||||
| Windstream Corp. 8.625% 2016 | 12,300 | 12,146 | ||||||
| Triton PCS, Inc. 8.50% 2013 | 113,840 | 119,105 | ||||||
| Intelsat, Ltd. 6.50% 2013 | 4,475 | 2,931 | ||||||
| Intelsat (Bermuda), Ltd. 8.25% 2013 | 28,730 | 29,089 | ||||||
Intelsat (Bermuda), Ltd. 0%/9.25% 20156 | 19,100 | 16,331 | ||||||
| Intelsat (Bermuda), Ltd. 8.625% 2015 | 13,350 | 13,517 | ||||||
| Intelsat Corp. 9.00% 2016 | 13,075 | 13,239 | ||||||
| Intelsat (Bermuda), Ltd. 9.25% 2016 | 27,200 | 27,540 | ||||||
| Intelsat (Bermuda), Ltd. 11.25% 2016 | 5,550 | 5,654 | ||||||
| Centennial Communications Corp. 10.00% 2013 | 3,175 | 2,969 | ||||||
| Centennial Communications Corp. and Centennial Cellular Operating Co. LLC 10.125% 2013 | 37,505 | 37,224 | ||||||
Centennial Communications Corp. 10.479% 20132 | 39,750 | 34,781 | ||||||
| Centennial Communications Corp., Centennial Cellular Operating Co. LLC and | ||||||||
Centennial Puerto Rico Operations Corp. 8.125% 20142 | 24,175 | 22,966 | ||||||
| American Tower Corp. 7.125% 2012 | 56,985 | 58,552 | ||||||
| American Tower Corp. 7.50% 2012 | 14,100 | 14,488 | ||||||
American Tower Corp. 7.00% 20171 | 21,825 | 21,934 | ||||||
| Qwest Capital Funding, Inc. 7.90% 2010 | 18,285 | 18,376 | ||||||
| Qwest Communications International Inc. 7.25% 2011 | 43,725 | 42,195 | ||||||
| Qwest Capital Funding, Inc. 7.25% 2011 | 25,575 | 24,424 | ||||||
| Qwest Corp. 8.875% 2012 | 3,600 | 3,690 | ||||||
| Qwest Capital Funding, Inc. 7.625% 2021 | 1,325 | 1,126 | ||||||
| U S WEST Capital Funding, Inc. 6.875% 2028 | 3,300 | 2,607 | ||||||
Sprint Nextel Corp. 3.071% 20102 | 5,120 | 4,369 | ||||||
| US Unwired Inc., Series B, 10.00% 2012 | 830 | 770 | ||||||
| Nextel Communications, Inc., Series E, 6.875% 2013 | 7,000 | 5,534 | ||||||
| Nextel Communications, Inc., Series F, 5.95% 2014 | 16,500 | 12,224 | ||||||
| Nextel Communications, Inc., Series D, 7.375% 2015 | 47,808 | 36,837 | ||||||
| Sprint Nextel Corp. 6.00% 2016 | 17,000 | 13,238 | ||||||
| Sprint Capital Corp. 6.90% 2019 | 12,730 | 10,043 | ||||||
| Sprint Capital Corp. 6.875% 2028 | 835 | 624 | ||||||
| Sprint Capital Corp. 8.75% 2032 | 9,705 | 8,219 | ||||||
| Rural Cellular Corp. 8.25% 2012 | 6,850 | 7,056 | ||||||
Rural Cellular Corp. 8.989% 20122 | 33,900 | 34,070 | ||||||
Rural Cellular Corp. 6.076% 20132 | 48,875 | 49,119 | ||||||
MetroPCS Wireless, Inc., Term Loan B, 5.50% 20132,3,4 | 15,812 | 14,538 | ||||||
| MetroPCS Wireless, Inc. 9.25% 2014 | 58,200 | 53,835 | ||||||
| Cricket Communications, Inc. 9.375% 2014 | 48,230 | 45,939 | ||||||
Cricket Communications, Inc. 9.375% 20141 | 16,875 | 16,073 | ||||||
| Hawaiian Telcom Communications, Inc. 9.75% 2013 | 23,340 | 12,720 | ||||||
Hawaiian Telcom Communications, Inc. 10.318% 20132 | 19,715 | 10,350 | ||||||
Hawaiian Telcom Communications, Inc., Term Loan C, 4.946% 20142,3,4 | 8,877 | 6,813 | ||||||
| Hawaiian Telcom Communications, Inc., Series B, 12.50% 2015 | 8,725 | 3,185 | ||||||
Orascom Telecom 7.875% 20141 | 32,780 | 30,567 | ||||||
| Cincinnati Bell Inc. 7.25% 2013 | 24,800 | 24,490 | ||||||
Digicel Group Ltd. 8.875% 20151 | 29,100 | 24,371 | ||||||
NTELOS Inc., Term Loan B, 5.27% 20112,3,4 | 20,858 | 19,998 | ||||||
| Rogers Wireless Inc. 7.25% 2012 | 6,375 | 6,833 | ||||||
| Rogers Wireless Inc. 7.50% 2015 | 12,025 | 12,651 | ||||||
| Level 3 Financing, Inc. 9.25% 2014 | 21,150 | 17,396 | ||||||
ALLTELL Corp., Term Loan B3, 5.568% 20152,3,4 | 12,239 | 11,091 | ||||||
| Millicom International Cellular SA 10.00% 2013 | 10,050 | 10,703 | ||||||
Trilogy International Partners LLC, Term Loan B, 6.196% 20122,3,4 | 10,475 | 8,904 | ||||||
Nordic Telephone Co. Holding ApS 8.875% 20161 | 7,900 | 7,703 | ||||||
| América Móvil, SAB de CV 8.46% 2036 | MXN65,000 | 6,069 | ||||||
| 1,175,522 | ||||||||
| FINANCIALS — 7.41% | ||||||||
| Ford Motor Credit Co. 5.625% 2008 | $ | 3,570 | 3,510 | |||||
| Ford Motor Credit Co. 7.375% 2009 | 2,725 | 2,484 | ||||||
| Ford Motor Credit Co. 8.625% 2010 | 1,000 | 872 | ||||||
Ford Motor Credit Co. 9.75% 20102 | 31,000 | 27,628 | ||||||
| Ford Motor Credit Co. 7.25% 2011 | 5,750 | 4,727 | ||||||
| Ford Motor Credit Co. 7.375% 2011 | 10,025 | 8,364 | ||||||
| Ford Motor Credit Co. 9.875% 2011 | 5,000 | 4,462 | ||||||
Ford Motor Credit Co. 7.127% 20122 | 79,750 | 59,042 | ||||||
| Ford Motor Credit Co. 7.80% 2012 | 3,000 | 2,477 | ||||||
| Ford Motor Credit Co. 8.00% 2016 | 8,200 | 6,428 | ||||||
General Motors Acceptance Corp. 3.749% 20082 | 2,450 | 2,312 | ||||||
Residential Capital Corp. 7.098% 20092 | 2,000 | 1,150 | ||||||
Residential Capital Corp. 7.828% 20091,2 | 12,000 | 4,500 | ||||||
Residential Capital Corp. 8.375% 20102 | 21,530 | 10,926 | ||||||
| General Motors Acceptance Corp. 6.875% 2011 | 5,750 | 4,404 | ||||||
| General Motors Acceptance Corp. 7.25% 2011 | 54,115 | 42,634 | ||||||
| General Motors Acceptance Corp. 6.625% 2012 | 3,000 | 2,271 | ||||||
| General Motors Acceptance Corp. 6.875% 2012 | 18,635 | 14,174 | ||||||
| General Motors Acceptance Corp. 7.00% 2012 | 14,225 | 10,826 | ||||||
Residential Capital, LLC 8.50% 20122 | 5,045 | 2,497 | ||||||
General Motors Acceptance Corp. 5.276% 20142 | 15,000 | 10,035 | ||||||
| General Motors Acceptance Corp. 6.75% 2014 | 9,820 | 6,958 | ||||||
| General Motors Acceptance Corp. 8.00% 2031 | 9,565 | 6,870 | ||||||
Realogy Corp., Term Loan B, 7.505% 20132,3,4 | 26,329 | 21,223 | ||||||
Realogy Corp., Term Loan, Letter of Credit, 8.24% 20132,3,4 | 5,803 | 4,678 | ||||||
| Realogy Corp. 10.50% 2014 | 110,680 | 74,986 | ||||||
Realogy Corp. 11.00% 20145 | 23,225 | 13,354 | ||||||
| Realogy Corp. 12.375% 2015 | 10,825 | 4,871 | ||||||
| Washington Mutual Bank, FA 5.65% 2014 | 6,525 | 5,390 | ||||||
Washington Mutual Bank, FA, Series 16, 5.125% 20158 | 8,080 | 6,222 | ||||||
Washington Mutual Preferred Funding I Ltd., Series A-1, 6.534% (undated)1,2,8 | 39,800 | 22,089 | ||||||
Washington Mutual Preferred Funding III Ltd. 6.895% (undated)1,2,8 | 11,400 | 6,441 | ||||||
Washington Mutual Preferred Funding IV Ltd. 9.75% (undated)1,2 | 44,900 | 34,397 | ||||||
| E*TRADE Financial Corp. 8.00% 2011 | 28,475 | 23,919 | ||||||
| E*TRADE Financial Corp. 7.375% 2013 | 14,100 | 10,081 | ||||||
| E*TRADE Financial Corp. 7.875% 2015 | 36,920 | 26,398 | ||||||
| Countrywide Home Loans, Inc., Series L, 3.25% 2008 | 2,717 | 2,665 | ||||||
| Countrywide Home Loans, Inc., Series M, 4.125% 2009 | 34,450 | 31,049 | ||||||
| Countrywide Home Loans, Inc., Series K, 5.625% 2009 | 9,280 | 8,516 | ||||||
| Countrywide Financial Corp., Series A, 4.50% 2010 | 4,986 | 4,443 | ||||||
| Countrywide Financial Corp., Series B, 5.80% 2012 | 5,715 | 5,182 | ||||||
| Countrywide Financial Corp. 6.25% 2016 | 1,875 | 1,524 | ||||||
| Host Marriott, LP, Series M, 7.00% 2012 | 18,600 | 18,274 | ||||||
| Host Marriott, LP, Series K, 7.125% 2013 | 19,375 | 19,084 | ||||||
| Host Hotels & Resorts, LP, Series S, 6.875% 2014 | 4,325 | 4,141 | ||||||
| Rouse Co. 3.625% 2009 | 12,415 | 11,753 | ||||||
| Rouse Co. 7.20% 2012 | 11,395 | 10,457 | ||||||
Rouse Co. 6.75% 20131 | 16,550 | 14,345 | ||||||
| TuranAlem Finance BV 7.875% 2010 | 10,000 | 9,384 | ||||||
TuranAlem Finance BV 7.75% 20131 | 8,500 | 7,185 | ||||||
| TuranAlem Finance BV 8.50% 2015 | 4,000 | 3,325 | ||||||
TuranAlem Finance BV 8.50% 20151 | 2,280 | 1,895 | ||||||
TuranAlem Finance BV 8.25% 20371 | 17,970 | 14,229 | ||||||
Citigroup Capital XXI 8.30% 20572 | 28,675 | 28,333 | ||||||
Kazkommerts International BV 8.50% 20131 | 3,500 | 3,096 | ||||||
| Kazkommerts International BV 8.50% 2013 | 1,500 | 1,327 | ||||||
Kazkommerts International BV 7.875% 20141 | 10,000 | 8,306 | ||||||
Kazkommerts International BV 8.00% 20151 | 6,000 | 4,775 | ||||||
| Kazkommerts International BV 8.00% 2015 | 3,000 | 2,387 | ||||||
| Kazkommerts International BV, Series 4, 7.50% 2016 | 7,500 | 5,643 | ||||||
| HSBK (Europe) BV 7.75% 2013 | 7,660 | 7,342 | ||||||
HSBK (Europe) BV 7.75% 20131 | 1,200 | 1,150 | ||||||
HSBK (Europe) BV 7.25% 20171 | 13,765 | 12,109 | ||||||
| Lazard Group LLC 7.125% 2015 | 10,270 | 10,003 | ||||||
| Lazard Group LLC 6.85% 2017 | 11,035 | 10,351 | ||||||
| CIT Group Inc. 7.625% 2012 | 16,615 | 13,822 | ||||||
| CIT Group Inc. 5.65% 2017 | 3,385 | 2,629 | ||||||
National City Preferred Capital Trust I 12.00% (undated)2 | 12,500 | 12,527 | ||||||
SLM Corp., Series A, 5.375% 20138 | 9,000 | 7,155 | ||||||
SLM Corp., Series A, 3.631% 20142 | 7,000 | 4,909 | ||||||
Liberty Mutual Group Inc., Series A, 7.80% 20871 | 14,000 | 11,833 | ||||||
Capmark Financial Group, Inc. 3.746% 20101,2 | 9,000 | 5,965 | ||||||
Capmark Financial Group, Inc. 5.875% 20121 | 7,700 | 4,883 | ||||||
Catlin Insurance Ltd. 7.249% (undated)1,2 | 12,500 | 10,449 | ||||||
| LaBranche & Co Inc. 9.50% 2009 | 500 | 510 | ||||||
| LaBranche & Co Inc. 11.00% 2012 | 7,750 | 7,905 | ||||||
| AmeriCredit Corp. 8.50% 2015 | 11,000 | 8,085 | ||||||
| Advanta Capital Trust I, Series B, 8.99% 2026 | 12,000 | 7,830 | ||||||
| MBNA Capital A, Series A, 8.278% 2026 | 7,500 | 7,541 | ||||||
ILFC E-Capital Trust II 6.25% 20651,2 | 8,000 | 7,160 | ||||||
Northern Rock PLC 5.60% (undated)1,2,8 | 900 | 518 | ||||||
Northern Rock PLC 6.594% (undated)1,2,8 | 11,400 | 6,555 | ||||||
Banco Mercantil del Norte, SA 6.135% 20161 | 3,500 | 3,450 | ||||||
Banco Mercantil del Norte, SA 6.862% 20211,2 | 2,000 | 1,847 | ||||||
Morgan Stanley 10.09% 20178 | BRL10,800 | 5,212 | ||||||
| Chevy Chase Bank, FSB 6.875% 2013 | $ | 5,500 | 5,170 | |||||
| iStar Financial, Inc. 6.00% 2010 | 2,250 | 1,756 | ||||||
iStar Financial, Inc. 6.50% 20138 | 2,000 | 1,510 | ||||||
| Bear Stearns Companies Inc. 7.25% 2018 | 3,000 | 3,106 | ||||||
| UnumProvident Corp. 5.859% 2009 | 2,000 | 2,060 | ||||||
| Hospitality Properties Trust 6.85% 2012 | 2,000 | 1,886 | ||||||
Schwab Capital Trust I 7.50% 20372 | 2,000 | 1,865 | ||||||
Ambac Financial Group, Inc. 6.15% 20872 | 2,870 | 1,094 | ||||||
Standard Chartered PLC 6.409% (undated)1,2,8 | 900 | 706 | ||||||
| 905,811 | ||||||||
| HEALTH CARE — 7.29% | ||||||||
| Tenet Healthcare Corp. 6.375% 2011 | 9,820 | 8,912 | ||||||
| Tenet Healthcare Corp. 7.375% 2013 | 7,990 | 7,171 | ||||||
| Tenet Healthcare Corp. 9.875% 2014 | 132,455 | 128,812 | ||||||
| Tenet Healthcare Corp. 9.25% 2015 | 51,375 | 48,293 | ||||||
| Tenet Healthcare Corp. 6.875% 2031 | 200 | 141 | ||||||
HealthSouth Corp. 10.829% 20142 | 57,805 | 56,071 | ||||||
| HealthSouth Corp. 10.75% 2016 | 86,990 | 91,774 | ||||||
VWR Funding, Inc. 10.25% 20152,5 | 117,360 | 109,732 | ||||||
HCA Inc., Term Loan B, 4.946% 20132,3,4 | 68,353 | 63,019 | ||||||
| HCA Inc. 9.125% 2014 | 4,345 | 4,486 | ||||||
| HCA Inc. 9.25% 2016 | 7,700 | 8,008 | ||||||
HCA Inc. 9.625% 20165 | 5,550 | 5,772 | ||||||
Elan Finance PLC and Elan Finance Corp. 7.201% 20132 | 9,525 | 8,334 | ||||||
| Elan Finance PLC and Elan Finance Corp. 8.875% 2013 | 54,850 | 51,833 | ||||||
PTS Acquisition Corp. 9.50% 20151,5 | 63,180 | 51,492 | ||||||
| Boston Scientific Corp. 5.45% 2014 | 1,800 | 1,661 | ||||||
| Boston Scientific Corp. 6.40% 2016 | 4,175 | 3,914 | ||||||
| Boston Scientific Corp. 5.125% 2017 | 3,520 | 3,027 | ||||||
| Boston Scientific Corp. 7.00% 2035 | 38,950 | 34,081 | ||||||
Mylan Inc., Term Loan B, 6.25% 20142,3,4 | 35,488 | 34,389 | ||||||
| Warner Chilcott Corp. 8.75% 2015 | 33,224 | 33,390 | ||||||
| Team Finance LLC and Health Finance Corp. 11.25% 2013 | 30,640 | 29,568 | ||||||
Surgical Care Affiliates, Inc. 8.875% 20151,5 | 22,325 | 17,302 | ||||||
Surgical Care Affiliates, Inc. 10.00% 20171 | 15,800 | 11,929 | ||||||
Viant Holdings Inc. 10.125% 20171 | 34,310 | 27,963 | ||||||
Bausch & Lomb Inc. 9.875% 20151 | 23,050 | 23,511 | ||||||
| CHS/Community Health Systems, Inc. 8.875% 2015 | 18,210 | 18,369 | ||||||
| AMR HoldCo, Inc. and EmCare HoldCo, Inc. 10.00% 2015 | 4,420 | 4,718 | ||||||
Universal Hospital Services, Inc. 8.288% 20152 | 3,035 | 2,716 | ||||||
| 890,388 | ||||||||
| INFORMATION TECHNOLOGY — 6.18% | ||||||||
NXP BV and NXP Funding LLC 7.008% 20132 | 39,250 | 32,528 | ||||||
NXP BV and NXP Funding LLC 7.326% 20132 | € | 2,500 | 3,138 | |||||
| NXP BV and NXP Funding LLC 7.875% 2014 | $ | 35,325 | 32,499 | |||||
| NXP BV and NXP Funding LLC 8.625% 2015 | € | 14,500 | 17,001 | |||||
| NXP BV and NXP Funding LLC 9.50% 2015 | $ | 156,040 | 128,733 | |||||
Freescale Semiconductor, Inc., Term Loan B, 4.869% 20132,3,4 | 4,913 | 4,165 | ||||||
Freescale Semiconductor, Inc. 6.675% 20142 | 8,250 | 5,734 | ||||||
| Freescale Semiconductor, Inc. 8.875% 2014 | 28,425 | 22,385 | ||||||
Freescale Semiconductor, Inc. 9.125% 20145 | 78,036 | 57,356 | ||||||
| Freescale Semiconductor, Inc. 10.125% 2016 | 39,085 | 26,578 | ||||||
| Sanmina-SCI Corp. 6.75% 2013 | 5,300 | 4,624 | ||||||
Sanmina-SCI Corp. 5.55% 20141,2 | 17,000 | 15,385 | ||||||
| Sanmina-SCI Corp. 8.125% 2016 | 79,650 | 70,889 | ||||||
First Data Corp., Term Loan B2, 5.349% 20142,3,4 | 76,614 | 69,188 | ||||||
| Hughes Communications, Inc. 9.50% 2014 | 53,375 | 53,375 | ||||||
| Celestica Inc. 7.875% 2011 | 22,980 | 22,693 | ||||||
| Celestica Inc. 7.625% 2013 | 28,360 | 26,942 | ||||||
| SunGard Data Systems Inc. 9.125% 2013 | 39,889 | 40,487 | ||||||
| SunGard Data Systems Inc. 4.875% 2014 | 4,500 | 3,966 | ||||||
Sensata Technologies BV, Term Loan B, 5.056% 20132,3,4 | 11,035 | 9,646 | ||||||
Sensata Technologies BV 8.00% 20142 | 32,755 | 28,988 | ||||||
| Serena Software, Inc. 10.375% 2016 | 24,540 | 22,730 | ||||||
Ceridian Corp. 11.25% 20151 | 25,925 | 22,231 | ||||||
Nortel Networks Ltd. 8.508% 20112 | 10,600 | 9,142 | ||||||
| Nortel Networks Ltd. 10.75% 2016 | 1,325 | 1,217 | ||||||
| MagnaChip Semiconductor SA and MagnaChip Semiconductor Finance Co. 8.00% 2014 | 18,010 | 10,356 | ||||||
| Xerox Corp. 7.125% 2010 | 3,650 | 3,848 | ||||||
| Xerox Corp. 7.625% 2013 | 5,000 | 5,170 | ||||||
| Jabil Circuit, Inc. 5.875% 2010 | 4,250 | 4,200 | ||||||
Exodus Communications, Inc. 11.625% 20107,8 | 3,761 | 0 | ||||||
| 755,194 | ||||||||
| MATERIALS — 5.47% | ||||||||
| Jefferson Smurfit Corp. (U.S.) 8.25% 2012 | 33,010 | 29,915 | ||||||
| Stone Container Corp. 8.375% 2012 | 12,840 | 11,684 | ||||||
| Jefferson Smurfit Corp. (U.S.) 7.50% 2013 | 24,405 | 21,110 | ||||||
| Smurfit-Stone Container Enterprises, Inc. 8.00% 2017 | 20,735 | 17,521 | ||||||
| Georgia Gulf Corp. 9.50% 2014 | 68,290 | 53,095 | ||||||
| Georgia Gulf Corp. 10.75% 2016 | 4,540 | 2,996 | ||||||
| Freeport-McMoRan Copper & Gold Inc. 6.875% 2014 | 3,000 | 3,105 | ||||||
| Freeport-McMoRan Copper & Gold Inc. 8.25% 2015 | 33,290 | 35,204 | ||||||
| Freeport-McMoRan Copper & Gold Inc. 8.375% 2017 | 11,345 | 12,068 | ||||||
Algoma Steel Inc., Term Loan B, 7.33% 20132,3,4 | 6,378 | 5,660 | ||||||
Algoma Steel Inc. 9.875% 20151 | 42,000 | 36,540 | ||||||
| Nalco Co. 7.75% 2011 | 29,940 | 30,464 | ||||||
| Nalco Co. 8.875% 2013 | 1,000 | 1,033 | ||||||
Nalco Finance Holdings LLC and Nalco Finance Holdings Inc. 0%/9.00% 20146 | 8,700 | 7,874 | ||||||
| Abitibi-Consolidated Co. of Canada 5.25% 2008 | 3,250 | 3,266 | ||||||
| Abitibi-Consolidated Finance LP 7.875% 2009 | 7,415 | 6,266 | ||||||
| Abitibi-Consolidated Inc. 8.55% 2010 | 5,775 | 3,350 | ||||||
Abitibi-Consolidated Co. of Canada 6.30% 20112 | 6,975 | 3,592 | ||||||
| Abitibi-Consolidated Inc. 7.75% 2011 | 8,025 | 4,374 | ||||||
| Abitibi-Consolidated Co. of Canada 6.00% 2013 | 3,000 | 1,470 | ||||||
| Abitibi-Consolidated Co. of Canada 8.375% 2015 | 22,250 | 11,570 | ||||||
| Associated Materials Inc. 9.75% 2012 | 8,865 | 8,643 | ||||||
AMH Holdings, Inc. 0%/11.25% 20146 | 36,545 | 25,125 | ||||||
| Building Materials Corp. of America 7.75% 2014 | 45,035 | 32,650 | ||||||
| AEP Industries Inc. 7.875% 2013 | 29,155 | 26,677 | ||||||
| Boise Cascade, LLC and Boise Cascade Finance Corp. 7.125% 2014 | 25,450 | 23,859 | ||||||
| Georgia-Pacific Corp. 8.125% 2011 | 14,320 | 14,284 | ||||||
| Georgia-Pacific Corp. 9.50% 2011 | 3,740 | 3,824 | ||||||
Georgia-Pacific Corp., First Lien Term Loan B, 4.74% 20122,3,4 | 3,954 | 3,684 | ||||||
Metals USA Holdings Corp. 10.729% 20122,5 | 21,075 | 15,806 | ||||||
| Metals USA, Inc. 11.125% 2015 | 3,850 | 3,792 | ||||||
Plastipak Holdings, Inc. 8.50% 20151 | 20,340 | 18,611 | ||||||
FMG Finance Pty Ltd. 10.625% 20161 | 15,450 | 17,459 | ||||||
| Graphic Packaging International, Inc. 8.50% 2011 | 14,240 | 14,062 | ||||||
| Graphic Packaging International, Inc. 9.50% 2013 | 2,425 | 2,340 | ||||||
| Rockwood Specialties Group, Inc. 7.50% 2014 | 5,765 | 5,621 | ||||||
| Rockwood Specialties Group, Inc. 7.625% 2014 | € | 7,200 | 10,574 | |||||
NewPage Corp. 10.00% 20121 | $ | 7,250 | 7,395 | |||||
| NewPage Corp., Series A, 12.00% 2013 | 7,925 | 7,984 | ||||||
Ryerson Inc. 10.614% 20141,2 | 3,255 | 2,946 | ||||||
Ryerson Inc. 12.00% 20151 | 11,200 | 10,640 | ||||||
| Neenah Paper, Inc. 7.375% 2014 | 14,325 | 12,606 | ||||||
| Domtar Corp. 5.375% 2013 | 5,075 | 4,466 | ||||||
| Domtar Corp. 7.125% 2015 | 7,810 | 7,400 | ||||||
MacDermid 9.50% 20171 | 13,150 | 11,835 | ||||||
| Berry Plastics Holding Corp. 10.25% 2016 | 11,525 | 8,932 | ||||||
| Vale Overseas Ltd. 6.25% 2017 | 3,700 | 3,694 | ||||||
| Vale Overseas Ltd. 6.875% 2036 | 4,000 | 3,923 | ||||||
| Graham Packaging Co., LP and GPC Capital Corp. 9.875% 2014 | 9,000 | 7,605 | ||||||
C10 Capital (SPV) Ltd. 6.722% (undated)1,2 | 7,700 | 7,139 | ||||||
| Allegheny Technologies, Inc. 8.375% 2011 | 5,000 | 5,338 | ||||||
| Momentive Performance Materials Inc. 9.75% 2014 | 5,000 | 4,513 | ||||||
| Owens-Illinois, Inc. 7.50% 2010 | 2,000 | 2,055 | ||||||
| Owens-Brockway Glass Container Inc. 8.25% 2013 | 1,400 | 1,456 | ||||||
| Owens-Brockway Glass Container Inc. 6.75% 2014 | € | 375 | 566 | |||||
| Huntsman LLC 11.50% 2012 | $ | 500 | 535 | |||||
| Huntsman International LLC 7.50% 2015 | € | 2,250 | 3,517 | |||||
| Smurfit Capital Funding PLC 7.50% 2025 | $ | 4,250 | 3,761 | |||||
| Airgas, Inc. 6.25% 2014 | 3,500 | 3,509 | ||||||
| Ispat Inland ULC 9.75% 2014 | 3,233 | 3,478 | ||||||
| Witco Corp. 6.875% 2026 | 5,080 | 3,429 | ||||||
| Exopack Holding Corp. 11.25% 2014 | 3,650 | 3,358 | ||||||
| Norampac Inc. 6.75% 2013 | 3,500 | 3,006 | ||||||
Novelis Inc. 7.25% 20152 | 2,750 | 2,448 | ||||||
| Ainsworth Lumber Co. Ltd. 7.25% 2012 | 140 | 81 | ||||||
| Ainsworth Lumber Co. Ltd. 6.75% 2014 | 3,440 | 2,012 | ||||||
| 668,795 | ||||||||
| UTILITIES — 5.18% | ||||||||
| Edison Mission Energy 7.50% 2013 | 44,900 | 46,247 | ||||||
| Edison Mission Energy 7.75% 2016 | 25,025 | 25,901 | ||||||
Midwest Generation, LLC, Series B, 8.56% 20163 | 39,629 | 42,997 | ||||||
| Edison Mission Energy 7.00% 2017 | 21,570 | 21,570 | ||||||
| Edison Mission Energy 7.20% 2019 | 46,450 | 46,102 | ||||||
Homer City Funding LLC 8.734% 20263 | 9,215 | 9,860 | ||||||
| Edison Mission Energy 7.625% 2027 | 36,280 | 34,285 | ||||||
Texas Competitive Electric Holdings Co. LLC, Term Loan B2, 6.596% 20142,3,4 | 15,960 | 14,570 | ||||||
Texas Competitive Electric Holdings Co. LLC, Series B, 10.25% 20151 | 60,035 | 60,110 | ||||||
Texas Competitive Electric Holdings Co. LLC 10.25% 20151 | 55,170 | 55,239 | ||||||
| AES Corp. 9.50% 2009 | 4,140 | 4,293 | ||||||
| AES Corp. 9.375% 2010 | 13,594 | 14,444 | ||||||
| AES Corp. 8.875% 2011 | 8,475 | 8,920 | ||||||
AES Corp. 8.75% 20131 | 20,248 | 21,159 | ||||||
| AES Gener SA 7.50% 2014 | 15,350 | 16,330 | ||||||
| AES Corp. 7.75% 2015 | 8,000 | 8,100 | ||||||
| AES Corp. 8.00% 2017 | 6,000 | 6,105 | ||||||
AES Red Oak, LLC, Series A, 8.54% 20193 | 7,459 | 7,496 | ||||||
AES Red Oak, LLC, Series B, 9.20% 20293 | 5,000 | 5,025 | ||||||
Intergen Power 9.00% 20171 | 61,775 | 64,864 | ||||||
| NRG Energy, Inc. 7.25% 2014 | 22,925 | 22,696 | ||||||
| NRG Energy, Inc. 7.375% 2016 | 33,700 | 33,110 | ||||||
| Nevada Power Co., General and Refunding Mortgage Bonds, Series A, 8.25% 2011 | 4,000 | 4,338 | ||||||
| Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series H, 6.25% 2012 | 3,000 | 3,077 | ||||||
| Nevada Power Co., General and Refunding Mortgage Notes, Series I, 6.50% 2012 | 2,650 | 2,742 | ||||||
| Sierra Pacific Resources 8.625% 2014 | 12,000 | 12,661 | ||||||
| Nevada Power Co., General and Refunding Mortgage Notes, Series L, 5.875% 2015 | 2,475 | 2,439 | ||||||
| Nevada Power Co., General and Refunding Mortgage Notes, Series M, 5.95% 2016 | 1,600 | 1,580 | ||||||
| Sierra Pacific Resources 6.75% 2017 | 2,000 | 1,939 | ||||||
ISA Capital do Brasil SA 7.875% 20121 | 3,275 | 3,390 | ||||||
ISA Capital do Brasil SA 8.80% 20171 | 11,800 | 12,331 | ||||||
| Enersis SA 7.375% 2014 | 6,800 | 7,510 | ||||||
| Mirant Americas Generation, Inc. 8.30% 2011 | 5,500 | 5,637 | ||||||
FPL Energy National Wind Portfolio, LLC 6.125% 20191,3 | 3,867 | 3,835 | ||||||
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 20171 | 2,000 | 1,966 | ||||||
Electricidad de Caracas Finance BV 10.25% 20141,8 | 700 | 820 | ||||||
| 633,688 | ||||||||
| ENERGY — 4.00% | ||||||||
Williams Companies, Inc. 6.375% 20101 | 6,000 | 6,180 | ||||||
Williams Companies, Inc. 6.729% 20101,2 | 31,050 | 31,826 | ||||||
| Williams Companies, Inc. 8.125% 2012 | 9,800 | 10,756 | ||||||
| Transcontinental Gas Pipe Line Corp. 6.40% 2016 | 2,800 | 2,888 | ||||||
| Williams Companies, Inc. 7.875% 2021 | 10,181 | 11,085 | ||||||
| Transcontinental Gas Pipe Line Corp. 7.25% 2026 | 8,150 | 8,395 | ||||||
| Williams Companies, Inc. 8.75% 2032 | 52,440 | 60,830 | ||||||
Enterprise Products Operating LP 8.375% 20662 | 28,360 | 27,645 | ||||||
Enterprise Products Operating LP 7.034% 20682 | 82,435 | 70,093 | ||||||
Drummond Co., Inc. 7.375% 20161 | 49,705 | 45,729 | ||||||
Petroplus Finance Ltd. 6.75% 20141 | 14,750 | 13,533 | ||||||
Petroplus Finance Ltd. 7.00% 20171 | 26,075 | 23,402 | ||||||
| Williams Partners L.P. and Williams Partners Finance Corp. 7.50% 2011 | 11,375 | 11,858 | ||||||
| Williams Partners L.P. and Williams Partners Finance Corp. 7.25% 2017 | 22,850 | 23,079 | ||||||
| Forest Oil Corp. 7.25% 2019 | 31,625 | 32,337 | ||||||
Gaz Capital SA 6.51% 20221 | 10,000 | 8,938 | ||||||
Gaz Capital SA 7.288% 20371 | 11,800 | 10,822 | ||||||
| Newfield Exploration Co. 6.625% 2014 | 10,175 | 10,073 | ||||||
| Newfield Exploration Co. 6.625% 2016 | 5,000 | 4,925 | ||||||
TEPPCO Partners LP 7.00% 20672 | 16,575 | 14,246 | ||||||
| Pemex Project Funding Master Trust 7.875% 2009 | 1,135 | 1,181 | ||||||
Pemex Project Funding Master Trust 5.75% 20181 | 5,850 | 5,998 | ||||||
Pemex Project Funding Master Trust 6.625% 20351 | 6,500 | 6,759 | ||||||
| Peabody Energy Corp., Series B, 6.875% 2013 | 7,000 | 7,140 | ||||||
| Peabody Energy Corp. 5.875% 2016 | 4,000 | 3,800 | ||||||
| Whiting Petroleum Corp. 7.25% 2013 | 8,850 | 8,761 | ||||||
Enbridge Energy Partners, LP 8.05% 20672 | 7,220 | 6,657 | ||||||
| Teekay Shipping Corp. 8.875% 2011 | 5,670 | 6,024 | ||||||
| Sabine Pass LNG, LP 7.25% 2013 | 6,000 | 5,820 | ||||||
| Tennessee Gas Pipeline Co. 7.00% 2028 | 4,000 | 4,006 | ||||||
| Overseas Shipholding Group, Inc. 8.25% 2013 | 3,850 | 3,884 | ||||||
Petrozuata Finance, Inc., Series B, 8.22% 20171,3 | 300 | 303 | ||||||
| 488,973 | ||||||||
| CONSUMER STAPLES — 3.30% | ||||||||
| Stater Bros. Holdings Inc. 8.125% 2012 | 48,555 | 48,919 | ||||||
| Stater Bros. Holdings Inc. 7.75% 2015 | 18,425 | 17,504 | ||||||
SUPERVALU INC., Term Loan B, 4.186% 20122,3,4 | 9,242 | 8,918 | ||||||
| SUPERVALU INC. 7.50% 2012 | 3,860 | 3,953 | ||||||
| Albertson’s, Inc. 7.25% 2013 | 11,015 | 11,078 | ||||||
| SUPERVALU INC. 7.50% 2014 | 1,000 | 1,015 | ||||||
| Albertson’s, Inc. 8.00% 2031 | 32,750 | 31,383 | ||||||
| Dole Food Co., Inc. 8.625% 2009 | 21,600 | 18,900 | ||||||
| Dole Food Co., Inc. 7.25% 2010 | 18,845 | 14,605 | ||||||
| Dole Food Co., Inc. 8.875% 2011 | 24,960 | 20,342 | ||||||
Duane Reade Inc. 7.30% 20102 | 7,000 | 6,440 | ||||||
| Duane Reade Inc. 9.75% 2011 | 32,910 | 27,644 | ||||||
| Yankee Candle Co., Inc., Series B, 8.50% 2015 | 23,900 | 19,419 | ||||||
| Yankee Candle Co., Inc., Series B, 9.75% 2017 | 17,525 | 14,020 | ||||||
| Constellation Brands, Inc. 8.375% 2014 | 6,775 | 7,012 | ||||||
| Constellation Brands, Inc. 7.25% 2017 | 26,625 | 25,959 | ||||||
| Smithfield Foods, Inc., Series B, 8.00% 2009 | 3,000 | 3,060 | ||||||
| Smithfield Foods, Inc., Series B, 7.00% 2011 | 1,250 | 1,238 | ||||||
| Smithfield Foods, Inc., Series B, 7.75% 2013 | 1,800 | 1,791 | ||||||
| Smithfield Foods, Inc. 7.75% 2017 | 22,950 | 22,491 | ||||||
| Elizabeth Arden, Inc. 7.75% 2014 | 24,012 | 22,931 | ||||||
Rite Aid Corp. 6.125% 20081 | 5,200 | 5,057 | ||||||
| Rite Aid Corp. 8.625% 2015 | 4,500 | 3,454 | ||||||
| Rite Aid Corp. 7.70% 2027 | 8,500 | 4,972 | ||||||
| Rite Aid Corp. 6.875% 2028 | 12,977 | 6,943 | ||||||
Vitamin Shoppe Industries Inc. 10.565% 20122,8 | 19,535 | 19,535 | ||||||
| JBS SA 10.50% 2016 | 20,000 | 19,350 | ||||||
Spectrum Brands, Inc., Term Loan B, 7.096% 20132,3,4 | 11,781 | 10,579 | ||||||
Spectrum Brands, Inc., Term Loan, Letter of Credit, 7.119% 20132,3,4 | 595 | 534 | ||||||
| Spectrum Brands, Inc. 7.375% 2015 | 4,445 | 2,911 | ||||||
American Achievement Group Holding Corp. 14.75% 20125 | 2,229 | 1,761 | ||||||
| 403,718 | ||||||||
| Total corporate bonds, notes & loans | 9,880,057 | |||||||
| BONDS & NOTES OF GOVERNMENTS & GOVERNMENT AGENCIES OUTSIDE THE U.S. — 4.36% | ||||||||
Turkey (Republic of) Treasury Bill 0% 20088 | TRY60,760 | 43,583 | ||||||
Turkey (Republic of) 15.00% 20108 | 16,262 | 11,620 | ||||||
Turkey (Republic of) 14.00% 20118 | 30,550 | 20,731 | ||||||
Turkey (Republic of) 10.00% 20128,9 | 6,719 | 4,966 | ||||||
Turkey (Republic of) 16.00% 20128 | 22,425 | 15,694 | ||||||
Turkey (Republic of) 6.75% 20188 | $ | 3,250 | 3,205 | |||||
Brazilian Treasury Bill 6.00% 20108,9 | BRL83,473 | 46,134 | ||||||
| Brazil (Federal Republic of) Global 10.50% 2014 | $ | 3,000 | 3,818 | |||||
Brazil (Federal Republic of) 10.00% 20178 | BRL13,000 | 6,201 | ||||||
Brazil (Federal Republic of) Global 8.00% 20183 | $ | 6,820 | 7,655 | |||||
| Brazil (Federal Republic of) Global 10.25% 2028 | BRL15,000 | 8,018 | ||||||
| Brazil (Federal Republic of) Global 7.125% 2037 | $ | 2,500 | 2,701 | |||||
| Brazil (Federal Republic of) Global 11.00% 2040 | 12,485 | 16,733 | ||||||
Brazilian Treasury Bill 6.00% 20458,9 | BRL16,486 | 8,399 | ||||||
Argentina (Republic of) 1.933% 20122,3,8 | $ | 20,420 | 10,820 | |||||
Argentina (Republic of) 5.83% 20333,5,8,9 | ARS113,631 | 23,799 | ||||||
| Argentina (Republic of) GDP-Linked 2035 | 261,027 | 8,242 | ||||||
| Argentina (Republic of) GDP-Linked 2035 | $ | 52,000 | 6,266 | |||||
Argentina (Republic of) 0.63% 20383,8,9 | ARS145,261 | 11,540 | ||||||
| United Mexican States Government, Series M10, 10.50% 2011 | MXN12,320 | 1,327 | ||||||
| United Mexican States Government Global 6.375% 2013 | $ | 6,970 | 7,674 | |||||
| United Mexican States Government, Series MI10, 9.50% 2014 | MXN100,000 | 10,450 | ||||||
| United Mexican States Government, Series M20, 10.00% 2024 | 120,000 | 13,919 | ||||||
| United Mexican States Government Global 6.75% 2034 | $ | 6,105 | 6,825 | |||||
| United Mexican States Government Global 6.05% 2040 | 3,000 | 3,008 | ||||||
| Indonesia (Republic of) 12.50% 2013 | IDR77,730,000 | 9,090 | ||||||
Indonesia (Republic of) 6.875% 20171 | $ | 1,000 | 1,050 | |||||
Indonesia (Republic of) 6.875% 20181 | 3,725 | 3,921 | ||||||
| Indonesia (Republic of) 11.50% 2019 | IDR25,000,000 | 2,704 | ||||||
| Indonesia (Republic of) 11.00% 2020 | 69,275,000 | 7,117 | ||||||
| Indonesia (Republic of) 12.80% 2021 | 45,440,000 | 5,204 | ||||||
| Indonesia (Republic of) 12.90% 2022 | 54,492,000 | 6,276 | ||||||
| Indonesia (Republic of) 11.00% 2025 | 40,562,000 | 4,050 | ||||||
| Indonesia (Republic of) 10.25% 2027 | 725,000 | 68 | ||||||
Indonesia (Republic of) 6.625% 20371 | $ | 2,500 | 2,306 | |||||
| Russian Federation 12.75% 2028 | 2,000 | 3,613 | ||||||
Russian Federation 7.50% 20303 | 31,880 | 36,802 | ||||||
| Panama (Republic of) Global 7.125% 2026 | 585 | 635 | ||||||
| Panama (Republic of) Global 8.875% 2027 | 6,500 | 8,320 | ||||||
Panama (Republic of) Global 6.70% 20363 | 28,009 | 28,639 | ||||||
| Colombia (Republic of) Global 11.75% 2010 | COP3,295,000 | 1,839 | ||||||
| Colombia (Republic of) Global 10.00% 2012 | $ | 1,500 | 1,787 | |||||
| Colombia (Republic of) Global 10.75% 2013 | 8,550 | 10,611 | ||||||
| Colombia (Republic of) Global 12.00% 2015 | COP14,485,000 | 8,311 | ||||||
| Colombia (Republic of) Global 11.75% 2020 | $ | 1,936 | 2,865 | |||||
| Colombia (Republic of) Global 9.85% 2027 | COP6,930,000 | 3,410 | ||||||
| Colombia (Republic of) Global 10.375% 2033 | $ | 823 | 1,193 | |||||
| Colombia (Republic of) Global 7.375% 2037 | 4,139 | 4,449 | ||||||
Egypt (Arab Republic of) 9.10% 20108 | EGP50,497 | 9,322 | ||||||
Egypt (Arab Republic of) 9.10% 20108 | 3,130 | 579 | ||||||
Egypt (Arab Republic of) 11.50% 20118 | 9,380 | 1,851 | ||||||
Egypt (Arab Republic of) 9.10% 20128 | 18,225 | 3,325 | ||||||
Egypt (Arab Republic of) 11.625% 20148 | 49,265 | 9,912 | ||||||
| Venezuela (Republic of) 10.75% 2013 | $ | 6,000 | 6,135 | |||||
| Venezuela (Republic of) Global 8.50% 2014 | 1,250 | 1,162 | ||||||
| Venezuela (Republic of) 7.65% 2025 | 5,195 | 4,182 | ||||||
| Venezuela (Republic of) Global 9.25% 2027 | 2,685 | 2,557 | ||||||
| Peru (Republic of) 9.875% 2015 | 8,500 | 10,761 | ||||||
Dominican Republic 9.50% 20113 | 3,939 | 4,145 | ||||||
Dominican Republic 9.50% 20111,3 | 2,405 | 2,532 | ||||||
Dominican Republic 9.04% 20181,3 | 1,503 | 1,604 | ||||||
Uruguay (Republic of) 4.25% 20273,8,9 | UYU124,708 | 6,644 | ||||||
| State of Qatar 9.75% 2030 | $ | 3,500 | 5,460 | |||||
| Corporación Andina de Fomento 5.75% 2017 | 3,000 | 2,938 | ||||||
| Thai Government 4.125% 2009 | THB73,490 | 2,385 | ||||||
| 533,082 | ||||||||
MORTGAGE-BACKED OBLIGATIONS3 — 1.06% | ||||||||
American Tower Trust I, Series 2007-1A, Class E, 6.249% 20371,8 | $ | 10,725 | 8,726 | |||||
American Tower Trust I, Series 2007-1A, Class F, 6.639% 20371,8 | 38,760 | 32,198 | ||||||
Crown Castle Towers LLC, Series 2006-1, Class F, 6.650% 20361,8 | 30,490 | 26,670 | ||||||
Crown Castle Towers LLC, Series 2006-1, Class G, 6.795% 20361,8 | 12,250 | 10,448 | ||||||
SBA CMBS Trust, Series 2006-1A, Class F, 6.709% 20361,8 | 1,450 | 1,306 | ||||||
SBA CMBS Trust, Series 2006-1A, Class G, 6.904% 20361,8 | 5,950 | 5,355 | ||||||
SBA CMBS Trust, Series 2006-1A, Class H, 7.389% 20361,8 | 11,615 | 10,464 | ||||||
SBA CMBS Trust, Series 2006-1A, Class J, 7.825% 20361,8 | 12,950 | 11,659 | ||||||
Tower Ventures, LLC, Series 2006-1, Class E, 6.495% 20361,8 | 4,000 | 3,673 | ||||||
Tower Ventures, LLC, Series 2006-1, Class F, 7.036% 20361,8 | 20,405 | 18,546 | ||||||
| 129,045 | ||||||||
| U.S. TREASURY BONDS & NOTES — 0.21% | ||||||||
| U.S. Treasury 6.00% 2026 | 21,000 | 25,512 | ||||||
| MUNICIPALS — 0.05% | ||||||||
| State of Wisconsin, Badger Tobacco Asset Securitization Corp., Tobacco Settlement Asset-backed Bonds, 6.125% 2027 | 6,080 | 6,102 | ||||||
| Total bonds, notes & other debt instruments (cost: $11,741,862,000) | 10,573,798 | |||||||
| Shares or | ||||||||
| Convertible securities — 0.85% | principal amount | |||||||
| CONSUMER DISCRETIONARY — 0.27% | ||||||||
| Amazon.com, Inc. 6.875% PEACS convertible notes 2010 | € | 20,645,000 | 32,764 | |||||
| INFORMATION TECHNOLOGY — 0.24% | ||||||||
| Fairchild Semiconductor Corp. 5.00% convertible notes 2008 | $ | 17,850,000 | 17,872 | |||||
| Advanced Micro Devices, Inc. 6.00% convertible notes 2015 | 18,000,000 | 11,408 | ||||||
| 29,280 | ||||||||
| UTILITIES — 0.18% | ||||||||
| AES Trust VII 6.00% convertible preferred 2008 | 439,925 | 21,886 | ||||||
| FINANCIALS — 0.16% | ||||||||
Countrywide Financial Corp., Series A, 0.758% convertible debentures 20371,2 | $ | 15,000,000 | 13,350 | |||||
Citigroup Inc., Series J, 7.00%, noncumulative convertible preferred depositary shares8,10 | 150,000 | 7,122 | ||||||
| 20,472 | ||||||||
| Total convertible securities (cost: $89,325,000) | 104,402 | |||||||
| Preferred securities — 1.29% | Shares | |||||||
| FINANCIALS — 1.29% | ||||||||
Fuji JGB Investment LLC, Series A, 9.87% noncumulative1,2 | 22,648,000 | 22,744 | ||||||
IBJ Preferred Capital Co. LLC, Series A, 8.79% noncumulative1,2 | 16,105,000 | 16,185 | ||||||
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed perpetual capital securities1 | 1,125,000 | 34,453 | ||||||
| Fannie Mae, Series S, 8.25% noncumulative | 550,000 | 13,372 | ||||||
Fannie Mae, Series O, 7.00%1,2 | 150,000 | 6,797 | ||||||
Shinsei Finance II (Cayman) Ltd. 7.16% noncumulative1,2,8 | 26,075,000 | 17,079 | ||||||
IndyMac Bancorp, Inc., Series A, 8.50% noncumulative1 | 2,406,000 | 11,955 | ||||||
Tokai Preferred Capital Co. LLC, Series A, 9.98% noncumulative1,2 | 11,723,000 | 11,777 | ||||||
| Freddie Mac, Series Z, 8.375% | 320,000 | 7,840 | ||||||
SB Treasury Co. LLC, Series A, 9.40% noncumulative1,2 | 2,897,000 | 2,935 | ||||||
Sumitomo Mitsui Banking Corp. 6.078%1,2 | 3,000,000 | 2,367 | ||||||
Bank of America Corp., Series K, 8.00% noncumulative2 | 5,000,000 | 5,014 | ||||||
| Chevy Chase Preferred Capital Corp., Series A, 10.375% exchangeable | 55,994 | 2,856 | ||||||
RBS Capital Trust IV 3.496% noncumulative trust2 | 4,000,000 | 2,455 | ||||||
| Total preferred securities (cost: $194,165,000) | 157,829 | |||||||
| Common stocks — 1.55% | ||||||||
| TELECOMMUNICATION SERVICES — 0.54% | ||||||||
| AT&T Inc. | 1,000,000 | 38,300 | ||||||
American Tower Corp., Class A11 | 538,967 | 21,133 | ||||||
| Sprint Nextel Corp., Series 1 | 777,508 | 5,202 | ||||||
| Embarq Corp. | 38,875 | 1,559 | ||||||
Cincinnati Bell Inc.11 | 70,740 | 301 | ||||||
XO Holdings, Inc.11 | 25,291 | 33 | ||||||
| 66,528 | ||||||||
| UTILITIES — 0.30% | ||||||||
| Drax Group PLC | 3,436,672 | 36,690 | ||||||
| INDUSTRIALS — 0.24% | ||||||||
DigitalGlobe Inc.8,10,11 | 3,064,647 | 12,259 | ||||||
Northwest Airlines Corp.11 | 1,330,333 | 11,960 | ||||||
Delta Air Lines, Inc.11 | 476,419 | 4,097 | ||||||
UAL Corp.11 | 22,911 | 493 | ||||||
| 28,809 | ||||||||
| CONSUMER DISCRETIONARY — 0.19% | ||||||||
Ford Motor Co.11 | 1,877,140 | 10,737 | ||||||
Time Warner Cable Inc., Class A11 | 371,279 | 9,275 | ||||||
Adelphia Recovery Trust, Series ACC-111 | 16,413,965 | 1,149 | ||||||
Adelphia Recovery Trust, Series Arahova11 | 1,773,964 | 922 | ||||||
Adelphia Recovery Trust, Series ACC-6B8,11 | 3,619,600 | 0 | ||||||
Emmis Communications Corp., Class A11 | 201,000 | 700 | ||||||
| CBS Corp., Class B | 31,612 | 698 | ||||||
Radio One, Inc., Class D, nonvoting11 | 44,000 | 67 | ||||||
Radio One, Inc., Class A11 | 22,000 | 33 | ||||||
Mobil Travel Guide, Inc.8,10,11 | 83,780 | 21 | ||||||
| 23,602 | ||||||||
| INFORMATION TECHNOLOGY — 0.14% | ||||||||
Micron Technology, Inc.1,11 | 678,656 | 4,052 | ||||||
Micron Technology, Inc.11 | 424,160 | 2,532 | ||||||
Fairchild Semiconductor International, Inc.11 | 500,000 | 5,960 | ||||||
ZiLOG, Inc.11,12 | 1,140,500 | 3,992 | ||||||
HSW International, Inc.8,10,11 | 257,091 | 925 | ||||||
| 17,461 | ||||||||
| HEALTH CARE — 0.11% | ||||||||
| UnitedHealth Group Inc. | 375,000 | 12,885 | ||||||
Clarent Hospital Corp.8,11,12 | 576,849 | 115 | ||||||
| 13,000 | ||||||||
| CONSUMER STAPLES — 0.03% | ||||||||
Winn-Dixie Stores, Inc.11 | 194,677 | 3,496 | ||||||
| Total common stocks (cost: $228,385,000) | 189,586 | |||||||
| Warrants — 0.00% | ||||||||
| TELECOMMUNICATION SERVICES — 0.00% | ||||||||
XO Holdings, Inc., Series A, warrants, expire 201011 | 50,587 | 5 | ||||||
XO Holdings, Inc., Series B, warrants, expire 201011 | 37,939 | 2 | ||||||
XO Holdings, Inc., Series C, warrants, expire 201011 | 37,939 | 1 | ||||||
GT Group Telecom Inc., warrants, expire 20101,8,11 | 11,000 | 0 | ||||||
| Total warrants (cost: $571,000) | 8 | |||||||
| Principal amount | ||||||||
| Short-term securities — 7.56% | (000 | ) | ||||||
| Freddie Mac 1.85%–2.07% due 6/23–9/2/2008 | $ | 132,900 | 131,809 | |||||
IBM International Group Capital LLC 2.46%–2.62% due 4/1–4/18/20081 | 58,900 | 58,871 | ||||||
IBM Corp. 2.29% due 5/28/20081 | 50,000 | 49,780 | ||||||
AT&T Inc. 2.15%–2.84% due 4/11–5/22/20081 | 94,839 | 94,665 | ||||||
Variable Funding Capital Corp. 3.06%–3.21% due 4/3–4/8/20081 | 68,100 | 68,066 | ||||||
Park Avenue Receivables Co., LLC 2.70%–3.05% due 4/17–4/22/20081 | 53,400 | 53,314 | ||||||
| JPMorgan Chase & Co. 2.92% due 4/18/2008 | 11,600 | 11,583 | ||||||
Ranger Funding Co. LLC 2.67%–2.77% due 5/6–7/11/20081 | 56,075 | 55,781 | ||||||
E.I. duPont de Nemours and Co. 2.22% due 4/28–4/30/20081 | 46,400 | 46,316 | ||||||
Harley-Davidson Funding Corp. 2.20%–2.88% due 4/25–4/28/20081 | 45,775 | 45,690 | ||||||
| 3M Co. 2.05% due 5/23/2008 | 44,900 | 44,765 | ||||||
| Fannie Mae 2.80% due 4/23/2008 | 44,000 | 43,921 | ||||||
Coca-Cola Co. 2.30%–2.70% due 4/21–6/6/20081 | 39,000 | 38,890 | ||||||
Medtronic Inc. 2.76% due 4/22/20081 | 37,500 | 37,437 | ||||||
Honeywell International Inc. 2.05%–2.25% due 4/11–6/26/20081 | 34,262 | 34,115 | ||||||
Procter & Gamble International Funding S.C.A. 2.15% due 4/16/20081 | 28,200 | 28,173 | ||||||
| U.S. Treasury Bills 3.31%–4.05% due 4/3–6/19/2008 | 28,100 | 28,051 | ||||||
Wal-Mart Stores Inc. 2.75% due 4/8–4/29/20081 | 27,800 | 27,760 | ||||||
| Federal Home Loan Bank 2.55%–2.60% due 5/2–8/22/2008 | 25,000 | 24,816 | ||||||
| Total short-term securities (cost: $923,970,000) | 923,803 | |||||||
| Total investment securities (cost: $13,178,278,000) | 11,949,426 | |||||||
| Other assets less liabilities | 272,420 | |||||||
| Net assets | $ | 12,221,846 | ||||||
| 1 | Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the United States in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $2,615,344,000, which represented 21.40% of the net assets of the fund. |
| 2 | Coupon rate may change periodically. |
| 3 | Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
| 4 | Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $765,584,000, which represented 6.26% of the net assets of the fund. |
| 5 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. |
| 6 | Step bond; coupon rate will increase at a later date. |
| 7 | Scheduled interest and/or principal payment was not received. |
| 8 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $528,752,000, which represented 4.33% of the net assets of the fund. |
| 9 | Index-linked bond whose principal amount moves with a government retail price index. |
| 10 | Purchased in a transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below. |
Acquisition date(s) | Cost (000) | Market value (000) | Percent of net assets | ||||||||||
| DigitalGlobe Inc. | 4/14/1999–7/31/2003 | $ | 2,500 | $ | 12,259 | .10 | % | ||||||
| Citigroup Inc., Series J, 7.00%, | |||||||||||||
| noncumulative convertible preferred depositary shares | 1/15/2008 | 7,500 | 7,122 | .06 | |||||||||
| HSW International, Inc. | 12/17/2007 | 791 | 925 | .01 | |||||||||
| Mobil Travel Guide, Inc. | 12/17/2007 | 21 | 21 | — | |||||||||
| Total restricted securities | $ | 10,812 | $ | 20,327 | .17 | % | |||||||
| 11 | Security did not produce income during the last 12 months. |
| 12 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information
is contained in each fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing.
MFGEFP-921-0508O-S10855
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, as amended, 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.
| AMERICAN HIGH-INCOME TRUST | |
By /s/ David C. Barclay | |
David C. Barclay, President and Principal Executive Officer | |
| Date: June 6, 2008 |
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/ David C. Barclay |
David C. Barclay, President and Principal Executive Officer |
| Date: June 6, 2008 |
By /s/ Ari M. Vinocor |
Ari M. Vinocor, Treasurer and Principal Financial Officer |
| Date: June 6, 2008 |