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, 2009
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 office buildings]
Semi-annual report for the six months ended March 31, 2009
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 American Funds. American Funds is one of the nation’s largest mutual fund families. For nearly 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.
Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 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, 2009:
| Class A shares | 1 year | 5 years | 10 years | |||||||||
| Reflecting 3.75% maximum sales charge | –25.70 | % | –1.89 | % | 2.31 | % | ||||||
The total annual fund operating expense ratio was 0.77% for Class A shares for the 12 months ended March 31, 2009. This figure does not reflect the fee waiver described below.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 26 to 29 for details.
Results for other share classes can be found on page 4.
The return of principal for bond funds and for funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. High-yield bonds are subject to greater fluctuations in value and risk of loss of income and principal than higher rated bonds. Investing outside the United States may be subject to additional risks, such as currency fluctuations, political instability, differing securities regulations and periods of illiquidity. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
[photo of office buildings]
Fellow shareholders:
At the time of our last report six months ago, troubles in the financial markets had triggered a global liquidity crisis, straining corporate balance sheets and fueling concerns that some highly leveraged companies would not be able to meet their debt obligations.
Those concerns accelerated in the first half of the six-month period, causing equity and bond markets throughout the world to plummet. As a result, the high-yield bond market recorded its two worst months of returns on record during October and November. In December, the markets partially bounced back but remained volatile throughout the second half of the period.
In this exceptionally challenging environment, American High-Income Trust reported a total return of –17.2% for the six-month period ending March 31, 2009, assuming the reinvestment of monthly dividends totaling 47 cents a share. Shareholders who reinvested dividends received an income return of 4.8%. The fund’s negative total return is the result of a decline in the share price, from $10.01 to $7.81, which offset the income return. While unprecedented market conditions contributed to these poor returns, let there be no doubt we are deeply disappointed with the fund’s results.
[Begin Sidebar]
| Results at a glance | ||||||||||||||||||||
| For periods ended March 31, 2009, with all distributions reinvested | ||||||||||||||||||||
| Total returns | Average annual total returns | |||||||||||||||||||
| 6 months | 1 year | 5 years | 10 years | Lifetime | ||||||||||||||||
| (since 2/19/88) | ||||||||||||||||||||
| American High-Income Trust | ||||||||||||||||||||
| (Class A shares) | –17.2 | % | –22.8 | % | –1.1 | % | 2.7 | % | 6.8 | % | ||||||||||
| Lipper High Current Yield | ||||||||||||||||||||
| Bond Funds Index* | –17.9 | –23.7 | –1.6 | 0.5 | 5.1 | |||||||||||||||
Credit Suisse High Yield Index† | –14.1 | –19.6 | 0.0 | 3.3 | 7.0 | |||||||||||||||
| Citigroup Broad Investment-Grade | ||||||||||||||||||||
(BIG) Bond Index† | 5.9 | 4.5 | 4.6 | 5.9 | 7.3 | |||||||||||||||
| *The Lipper index does not reflect the effect of sales charges. | ||||||||||||||||||||
† The market indexes are unmanaged and do not reflect the effect of sales charges, commissions or expenses. | ||||||||||||||||||||
[End Sidebar]
By comparison, the Lipper High Current Yield Bond Funds Index, a benchmark of similar funds, posted a –17.9% total return, and the Credit Suisse High Yield Index, which attempts to mirror the high-yield debt markets, reported a –14.1% return. The latter index is unmanaged and includes no expenses.
Shareholders who elected to take their dividends in cash saw the value of their holdings decline by 22.0% and received an income return of 4.7%.
The six months in review
In the wake of massive credit losses, the U.S. government gave the Treasury authority to provide billions of dollars to shore up the financial industry. In addition, the Federal Reserve aggressively lowered interest rates in an attempt to stabilize and restore liquidity to the financial system. Central banks around the world took similar actions to unlock credit markets and, perhaps more importantly, to restore investor confidence.
The increased liquidity resulting from these actions has made it more likely that companies with manageable debt levels will be able to access the financing they need in order to survive. Yet, problems linger. Solvency issues are still a concern, credit fundamentals continue to deteriorate, unemployment is rising, corporate profits are lower, and the economy remains weak. In this environment, many highly leveraged companies will likely default.
The pricing of many high-yield bonds already reflects the prospect of increased defaults. In fact, many companies, including some in our portfolio, are being priced as if they already defaulted or are about to default — even though we believe many will not. Because bond prices are low, we are choosing to continue holding some of these companies in our portfolio, either because we do not believe they will ultimately default or because we believe holding them through restructuring should bring returns that would be more attractive than selling them or investing in other opportunities.
Markets often overreact during periods of distress. Over time, however, markets usually bounce back, and high-yield bonds with solid fundamentals often bring great value when they do. A natural part of our research process is to analyze what would happen to various creditors in the capital structure if a company were to default. This analysis gives us the confidence to hold on to the bonds we consider undervalued and to not sell at the bottom of the market.
It’s important to remember that fresh opportunities for long-term appreciation frequently emerge from distressed situations. The fund’s investment professionals, who have experienced difficult market cycles before, remain focused on finding those companies with good managements and solid business plans and that appear to be well-equipped to weather slowdowns and thrive as markets recover. Fundamental, in-depth research is an indispensable tool for identifying these companies.
Looking ahead
Without question, the past year has been one of the most difficult periods for American High-Income Trust and the high-yield bond market in general. Although there are positive signs emerging, such as the increase in liquidity and an uptick in demand for higher quality high-yield bonds, we believe that liquidity will remain a concern and that economic weakness will continue throughout the rest of the year and, quite possibly, longer.
While it is not possible to determine the length or extent of a market cycle, the fund’s investment professionals use their experience and research skills to identify bonds they think are worth buying and holding on to, even when the market may indicate otherwise. These professionals depend on their knowledge of the company, understanding of the capital structure and familiarity with the restructuring process when evaluating every investment. As the economy begins to recover, we believe that this focus on fundamental research will be a key factor in helping to discern issues and issuers most likely to survive the downturn and thrive in an emerging economy.
As always, but especially during these challenging times, 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
May 12, 2009
The fund’s 30-day yield for Class A shares as of April 30, 2009, calculated in accordance with the Securities and Exchange Commission formula, was 12.08%. The fund’s distribution rate for Class A shares as of that date was 10.50%. 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.
Other share class results
Classes B, C, F and 529
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.
| Average annual total returns for periods ended March 31, 2009: | ||||||||||||
| 1 year | 5 years | Life of class | ||||||||||
Class B shares1 — first sold 3/15/00 | ||||||||||||
| Reflecting applicable contingent deferred sales charge | ||||||||||||
| (CDSC), maximum of 5%, payable only if shares | ||||||||||||
| are sold within six years of purchase | –26.86 | % | –2.16 | % | 1.75 | % | ||||||
| Not reflecting CDSC | –23.37 | –1.88 | 1.75 | |||||||||
Class C shares — first sold 3/15/01 | ||||||||||||
| Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
| if shares are sold within one year of purchase | –24.09 | –1.93 | 1.70 | |||||||||
| Not reflecting CDSC | –23.39 | –1.93 | 1.70 | |||||||||
Class F-1 shares2 — first sold 3/15/01 | ||||||||||||
| Not reflecting annual asset-based fee charged | ||||||||||||
| by sponsoring firm | –22.79 | –1.17 | 2.46 | |||||||||
Class F-2 shares2 — first sold 8/4/08 | ||||||||||||
| Not reflecting annual asset-based fee charged | ||||||||||||
| by sponsoring firm | — | — | –23.54 | 3 | ||||||||
Class 529-A shares4 — first sold 2/19/02 | ||||||||||||
| Reflecting 3.75% maximum sales charge | –25.72 | –1.95 | 2.29 | |||||||||
| Not reflecting maximum sales charge | –22.80 | –1.20 | 2.84 | |||||||||
Class 529-B shares1,4 — first sold 2/25/02 | ||||||||||||
| Reflecting applicable CDSC, maximum of 5%, payable | ||||||||||||
| only if shares are sold within six years of purchase | –26.93 | –2.30 | 2.14 | |||||||||
| Not reflecting CDSC | –23.44 | –2.02 | 2.14 | |||||||||
Class 529-C shares4 — first sold 2/19/02 | ||||||||||||
| Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
| if shares are sold within one year of purchase | –24.14 | –2.01 | 1.98 | |||||||||
| Not reflecting CDSC | –23.44 | –2.01 | 1.98 | |||||||||
Class 529-E shares2,4 — first sold 3/15/02 | –23.03 | –1.50 | 2.20 | |||||||||
Class 529-F-1 shares2,4 — first sold 9/16/02 | ||||||||||||
| Not reflecting annual asset-based fee charged | ||||||||||||
| by sponsoring firm | –22.65 | –1.06 | 4.50 | |||||||||
1These shares are no longer available for purchase. |
2These shares are sold without any initial or contingent deferred sales charge. |
3Results are cumulative total returns; they are not annualized. |
4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee. |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 26 to 29 for details.
For information regarding the differences among the various share classes, please refer to the fund’s prospectus.
Summary investment portfolio, March 31, 2009
unaudited
The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings. For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.
[begin pie chart]
| U.S. corporate bonds & notes | 54.8 | |||
| Corporate bonds & notes of issuers outside the U.S. | 9.1 | |||
| Corporate loans | 6.9 | |||
| Bonds & notes of governments & government agencies outside the U.S. | 3.1 | |||
| Other | 2.6 | |||
| Common stocks & warrants | 0.9 | |||
| Convertible securities | 1.0 | |||
| Preferred securities | 0.8 | |||
| Short-term securities & other assets less liabilities | 20.8 |
[end pie chart]
| Principal | Percent | |||||||||||||
| amount | Value | of net | ||||||||||||
| Bonds, notes & other debt instruments - 76.48% | (000 | ) | (000 | ) | assets | |||||||||
| Corporate bonds, notes & loans - 70.79% | ||||||||||||||
| Consumer discretionary - 16.40% | ||||||||||||||
| Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.: | ||||||||||||||
| 8.00% 2012 (1) | $ | 50,950 | $ | 46,874 | ||||||||||
| 8.375%-10.875% 2014 (1) | 55,200 | 51,238 | ||||||||||||
| CCH II, LLC and CCH II Capital Corp. 10.25% 2010 | 62,980 | 56,997 | ||||||||||||
| CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013 | 43,890 | 36,868 | ||||||||||||
| CCH I, LLC and CCH I Capital Corp. 11.00% 2015 | 7,475 | 841 | ||||||||||||
| Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 11.75% 2011 | 6,000 | 67 | ||||||||||||
| Charter Communications Operating, LLC, Term Loans, 3.18%-7.25% 2014 (2) (3) (4) | 71,069 | 60,852 | 2.55 | % | ||||||||||
| Michaels Stores, Inc. 10.00% 2014 | 99,725 | 47,494 | .48 | |||||||||||
| NTL Cable PLC 8.75% 2014 | 43,400 | 41,230 | .41 | |||||||||||
| Univision Communications, Inc., First Lien Term Loan B, 2.768% 2014 (2) (3) (4) | 78,170 | 40,990 | .41 | |||||||||||
| FCE Bank PLC 7.125% 2013 | € | 14,050 | 12,675 | |||||||||||
| Ford Capital BV 9.50% 2010 | $ | 4,000 | 2,200 | |||||||||||
| Ford Motor Co. 6.50%-9.50% 2011-2031 | 12,200 | 3,849 | .19 | |||||||||||
| Other securities | 1,230,864 | 12.36 | ||||||||||||
| 1,633,039 | 16.40 | |||||||||||||
| Telecommunication services - 11.46% | ||||||||||||||
| Qwest Capital Funding, Inc.: | ||||||||||||||
| 7.25% 2011 | 88,150 | 84,624 | ||||||||||||
| 7.00%-7.90% 2009-2021 | 27,510 | 26,676 | ||||||||||||
| Qwest Communications International Inc. 7.25% 2011 | 43,725 | 42,413 | �� | |||||||||||
| Qwest Corp. 8.875% 2012 | 3,600 | 3,573 | 1.58 | |||||||||||
| Windstream Corp.: | ||||||||||||||
| 8.125% 2013 | 89,875 | 88,976 | ||||||||||||
| 7.00%-8.625% 2016-2019 | 17,800 | 17,322 | ||||||||||||
| Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015 | 31,370 | 30,532 | 1.37 | |||||||||||
| Centennial Communications Corp.: | ||||||||||||||
| 7.185% 2013 (2) | 49,250 | 49,496 | ||||||||||||
| 10.00% 2013 | 14,750 | 15,746 | ||||||||||||
| Centennial Communications Corp. and Centennial Cellular Operating Co. LLC 10.125% 2013 | 37,505 | 39,005 | ||||||||||||
| Centennial Communications Corp., Centennial Cellular Operating Co. LLC and Centennial Puerto Rico Operations Corp. 8.125% 2014 (2) | 24,175 | 25,021 | 1.30 | |||||||||||
| Nextel Communications, Inc.: | ||||||||||||||
| Series F, 5.95% 2014 | 113,790 | 63,722 | ||||||||||||
| Series D, 7.375% 2015 | 74,753 | 39,993 | ||||||||||||
| Series E, 6.875% 2013 | 15,513 | 8,920 | ||||||||||||
| Sprint Nextel Corp. 1.632% 2010 (2) | 5,120 | 4,740 | ||||||||||||
| Sprint Capital Corp. 6.375% 2009 | 2,980 | 2,980 | 1.21 | |||||||||||
| MetroPCS Wireless, Inc.: | ||||||||||||||
| 9.25% 2014 | 65,275 | 63,643 | ||||||||||||
| 9.25% 2014 (1) | 30,200 | 29,294 | ||||||||||||
| Term Loan B, 3.438% 2013 (2) (3) (4) | 15,651 | 14,292 | 1.08 | |||||||||||
| American Tower Corp.: | ||||||||||||||
| 7.125% 2012 | 56,060 | 56,621 | ||||||||||||
| 7.00%-7.50% 2012-2017 | 48,925 | 48,718 | 1.06 | |||||||||||
| Cricket Communications, Inc. 9.375% 2014 | 69,105 | 66,168 | .66 | |||||||||||
| Other securities | 318,384 | 3.20 | ||||||||||||
| 1,140,859 | 11.46 | |||||||||||||
| Industrials - 8.72% | ||||||||||||||
| Nielsen Finance LLC and Nielsen Finance Co.: | ||||||||||||||
| 10.00% 2014 | 92,625 | 80,121 | ||||||||||||
| 0%/12.50% 2016 (5) | 117,250 | 49,245 | ||||||||||||
| 11.625% 2014 (1) | 10,750 | 9,836 | ||||||||||||
| Nielsen Finance LLC, Term Loan B, 2.533% 2013 (2) (3) (4) | 47,150 | 36,993 | 1.77 | |||||||||||
| DynCorp International and DIV Capital Corp., Series B, 9.50% 2013 | 52,677 | 49,648 | .50 | |||||||||||
| Other securities | 642,212 | 6.45 | ||||||||||||
| 868,055 | 8.72 | |||||||||||||
| Health care - 8.65% | ||||||||||||||
| Tenet Healthcare Corp.: | ||||||||||||||
| 9.875% 2014 | 158,660 | 124,548 | ||||||||||||
| 6.875%-10.00% 2013-2031 (1) | 77,775 | 62,082 | 1.87 | |||||||||||
| HealthSouth Corp.: | ||||||||||||||
| 8.323% 2014 (2) | 57,305 | 49,569 | ||||||||||||
| 10.75% 2016 | 76,190 | 75,047 | ||||||||||||
| Term Loan B, 3.05% 2013 (2) (3) (4) | 12,764 | 11,303 | 1.36 | |||||||||||
| VWR Funding, Inc. 10.25% 2015 (2) (6) | 117,360 | 80,392 | .81 | |||||||||||
| HCA Inc., Term Loan B, 3.47% 2013 (2) (3) (4) | 66,173 | 56,274 | .56 | |||||||||||
| Elan Finance PLC and Elan Finance Corp. 8.875% 2013 | 66,255 | 53,335 | .54 | |||||||||||
| Bausch & Lomb Inc. 9.875% 2015 (1) | 53,025 | 42,420 | .43 | |||||||||||
| Other securities | 306,404 | 3.08 | ||||||||||||
| 861,374 | 8.65 | |||||||||||||
| Financials - 6.91% | ||||||||||||||
| Ford Motor Credit Co.: | ||||||||||||||
| 4.01% 2012 (2) | 105,860 | 66,824 | ||||||||||||
| 7.25%-9.875% 2009-2016 (2) | 69,920 | 54,126 | 1.21 | |||||||||||
| Countrywide Home Loans, Inc. 4.125%-5.625% 2009 | 33,122 | 32,782 | ||||||||||||
| Countrywide Financial Corp. 4.50%-5.80% 2010-2012 | 25,546 | 22,456 | ||||||||||||
| MBNA Capital A, Series A, 8.278% 2026 | 7,500 | 3,221 | .59 | |||||||||||
| Other securities | 508,196 | 5.11 | ||||||||||||
| 687,605 | 6.91 | |||||||||||||
| Utilities - 5.11% | ||||||||||||||
| Edison Mission Energy: | ||||||||||||||
| 7.50% 2013 | 53,970 | 42,906 | ||||||||||||
| 7.00%-7.75% 2016-2027 | 131,875 | 90,000 | ||||||||||||
| Midwest Generation, LLC, Series B, 8.56% 2016 (3) | 48,812 | 45,273 | ||||||||||||
| Homer City Funding LLC 8.734% 2026 (3) | 9,144 | 7,452 | 1.86 | |||||||||||
| Intergen Power 9.00% 2017 (1) | 74,950 | 68,204 | .69 | |||||||||||
| Other securities | 254,423 | 2.56 | ||||||||||||
| 508,258 | 5.11 | |||||||||||||
| Information technology - 4.16% | ||||||||||||||
| Hughes Communications, Inc. 9.50% 2014 | 53,375 | 48,037 | .48 | |||||||||||
| First Data Corp., Term Loan B2, 3.272% 2014 (2) (3) (4) | 65,920 | 44,671 | .45 | |||||||||||
| Freescale Semiconductor, Inc., Term Loan B, 12.50% 2014 (3) (4) | 72,048 | 38,636 | .39 | |||||||||||
| SunGard Data Systems Inc. 9.125% 2013 | 43,675 | 38,216 | .38 | |||||||||||
| Other securities | 244,756 | 2.46 | ||||||||||||
| 414,316 | 4.16 | |||||||||||||
| Consumer staples - 3.69% | ||||||||||||||
| Stater Bros. Holdings Inc.: | ||||||||||||||
| 7.75% 2015 | 46,405 | 44,781 | ||||||||||||
| 8.125% 2012 | 42,605 | 42,179 | .87 | |||||||||||
| Other securities | 280,775 | 2.82 | ||||||||||||
| 367,735 | 3.69 | |||||||||||||
| Energy - 3.25% | ||||||||||||||
| Enterprise Products Operating LP 7.034% 2068 (2) | 75,925 | 47,520 | .48 | |||||||||||
| Other securities | 275,468 | 2.77 | ||||||||||||
| 322,988 | 3.25 | |||||||||||||
| Materials - 2.44% | ||||||||||||||
| Other securities | 243,224 | 2.44 | ||||||||||||
| Total corporate bonds, notes & loans | 7,047,453 | 70.79 | ||||||||||||
| Bonds & notes of governments & government agencies outside the U.S. - 3.08% | ||||||||||||||
| Brazilian Treasury Bill 6.00% 2010 (7) (8) | BRL 89,653 | 38,931 | .39 | |||||||||||
| Other securities | 268,076 | 2.69 | ||||||||||||
| 307,007 | 3.08 | |||||||||||||
| Mortgage-backed obligations - 2.21% | ||||||||||||||
| Other securities | 219,854 | 2.21 | ||||||||||||
| Other - 0.40% | ||||||||||||||
| U.S. Treasury 6.00% 2026 | $ | 21,000 | 27,694 | .28 | ||||||||||
| Other securities | 11,686 | .12 | ||||||||||||
| 39,380 | .40 | |||||||||||||
| Total bonds, notes & other debt instruments (cost: $11,261,109,000) | 7,613,694 | 76.48 | ||||||||||||
| Principal amount | Value | Percent of net | ||||||||||||
| Convertible securities - 0.95% | (000 | ) | (000 | ) | assets | |||||||||
| Other - 0.95% | ||||||||||||||
| Linear Technology Corp., Series A, 3.00% convertible notes 2027 | $ | 61,000,000 | 50,782 | .51 | % | |||||||||
| Other securities | 43,393 | .44 | ||||||||||||
| 94,175 | .95 | |||||||||||||
| Total convertible securities (cost: $113,426,000) | 94,175 | .95 | ||||||||||||
| Shares | Percent | |||||||||||||
| Value | of net | |||||||||||||
| Preferred securities - 0.79% | (000 | ) | assets | |||||||||||
| Financials - 0.79% | ||||||||||||||
| Bank of America Corp., Series K, 8.00% noncumulative (2) | 22,818,000 | $ | 9,148 | |||||||||||
| BAC Capital Trust XIII 1.72% (2) | 47,200,000 | 8,943 | ||||||||||||
| Bank of America Corp., Series M, 8.125% noncumulative (2) | 17,190,000 | 7,071 | .25 | % | ||||||||||
| Freddie Mac, Series Z, 8.375% | 320,000 | 174 | .00 | |||||||||||
| Other securities | 53,230 | .54 | ||||||||||||
| 78,566 | .79 | |||||||||||||
| Total preferred securities (cost: $189,495,000) | 78,566 | .79 | ||||||||||||
| Shares | Percent | |||||||||||||
| Value | of net | |||||||||||||
| Common stocks - 0.94% | (000 | ) | assets | |||||||||||
| Other - 0.94% | ||||||||||||||
| American Tower Corp., Class A (9) | 538,967 | $ | 16,401 | 0.16 | % | |||||||||
| Ford Motor Co. (9) | 1,877,140 | 4,937 | .05 | |||||||||||
| Sprint Nextel Corp., Series 1 (9) | 777,508 | 2,775 | .03 | |||||||||||
| Other securities | 70,001 | .70 | ||||||||||||
| 94,114 | .94 | |||||||||||||
| Total common stocks (cost: $214,501,000) | 94,114 | .94 | ||||||||||||
| Shares | Percent | |||||||||||||
| Value | of net | |||||||||||||
| Warrants - 0.00% | (000 | ) | assets | |||||||||||
| Other - 0.00% | ||||||||||||||
| Other securities | $ | - | .00 | % | ||||||||||
| Total warrants (cost: $571,000) | - | .00 | ||||||||||||
| Principal | Percent | |||||||||||||
| amount | Value | of net | ||||||||||||
| Short-term securities - 18.58% | (000 | ) | (000 | ) | assets | |||||||||
| U.S. Treasury Bills 0.16%-1.09% due 4/9-9/10/2009 | $ | 394,400 | $ | 394,198 | 3.96 | % | ||||||||
| Federal Home Loan Bank 0.19%-2.35% due 4/3-7/13/2009 | 321,550 | 321,437 | 3.23 | |||||||||||
| Freddie Mac 0.19%-0.50% due 4/27-6/29/2009 | 226,200 | 226,064 | 2.27 | |||||||||||
| Bank of America Corp., FDIC insured, 0.40% due 4/24/2009 | 75,000 | 74,974 | ||||||||||||
| Enterprise Funding Co. LLC 0.41%-0.45% due 4/14-4/21/2009 (1) | 70,196 | 70,165 | ||||||||||||
| Ranger Funding Co. LLC 0.40%-0.47% due 4/2-4/21/2009 (1) | 76,500 | 76,489 | 2.23 | |||||||||||
| General Electric Capital Corp., FDIC insured, 0.40%-0.50% due 4/29-6/24/2009 | 93,800 | 93,749 | ||||||||||||
| General Electric Capital Corp. 0.08% due 4/1/2009 | 25,500 | 25,500 | 1.20 | |||||||||||
| Hewlett-Packard Co. 0.25%-0.42% due 4/2-5/5/2009 (1) | 86,500 | 86,472 | .87 | |||||||||||
| Fannie Mae 0.30%-0.43% due 4/15-7/1/2009 | 85,000 | 84,959 | .85 | |||||||||||
| Procter & Gamble International Funding S.C.A. 0.35%-0.40% due 4/14-5/28/2009 (1) | 62,000 | 61,972 | .62 | |||||||||||
| United Parcel Service Inc. 0.23%-0.32% due 6/1-6/12/2009 (1) | 53,100 | 53,073 | .53 | |||||||||||
| Private Export Funding Corp. 0.47%-0.50% due 6/8-6/23/2009 (1) | 50,000 | 49,932 | .50 | |||||||||||
| Coca-Cola Co. 0.35% due 5/6-5/7/2009 (1) | 44,100 | 44,078 | .44 | |||||||||||
| NetJets Inc. 0.35% due 4/24/2009 (1) | 41,500 | 41,476 | .42 | |||||||||||
| Other securities | 144,835 | 1.46 | ||||||||||||
| 1,849,373 | 18.58 | |||||||||||||
| Total short-term securities (cost: $1,849,314,000) | 1,849,373 | 18.58 | ||||||||||||
| Total investment securities (cost: $13,628,416,000) | 9,729,922 | 97.74 | ||||||||||||
| Other assets less liabilities | 225,412 | 2.26 | ||||||||||||
| Net assets | $ | 9,955,334 | 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 $15,645,000, which represented .16% 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 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, 2009, appear below.
Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Dividend or interest income | ) | Value of affiliates at 3/31/09 | ) | |||||||||||||||||
| American Media Operation 14.00% 2013 (1) | - | $ | 43,374,424 | - | $ | 43,374,424 | $ | 1,290 | $ | 22,772 | ||||||||||||||
| American Media Operation 9.00% 2013 (1) (6) | - | $ | 3,177,505 | - | $ | 3,177,505 | 76 | 1,668 | ||||||||||||||||
| American Media Operations, Inc. (1) (8) (9) | - | 823,270 | - | 823,270 | - | 8 | ||||||||||||||||||
| ZiLOG, Inc. (9) | 1,140,500 | - | - | 1,140,500 | - | 2,680 | ||||||||||||||||||
| Clarent Hospital Corp. (8) (9) | 576,849 | - | - | 576,849 | - | 29 | ||||||||||||||||||
| $ | 1,366 | $ | 27,157 | |||||||||||||||||||||
| 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 U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $1,959,897,000, which represented 19.69% 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 $683,080,000, which represented 6.86% of the net assets of the fund. |
| (5) Step bond; coupon rate will increase at a later date. |
| (6) Payment in kind; the issuer has the option of paying additional securities in lieu of cash. |
| (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 $155,802,000, which represented 1.57% of the net assets of the fund. |
| (9) Security did not produce income during the last 12 months. |
| Key to abbreviation and symbol |
| BRL = Brazilian reais |
| € = Euros |
The industry classifications shown in the summary investment portfolio were obtained from sources believed to be reliable and are not covered by the Report of Independent Registered Public Accounting Firm. |
| See Notes to Financial Statements |
Financial statements
| Statement of assets and liabilities | unaudited | |||||||
| at March 31, 2009 | (dollars in thousands) | |||||||
| Assets: | ||||||||
| Investment securities, at value: | ||||||||
| Unaffiliated issuers (cost: $13,584,280) | $ | 9,702,765 | ||||||
| Affiliated issuers (cost: $44,136) | 27,157 | $ | 9,729,922 | |||||
| Cash | 1,657 | |||||||
| Unrealized gain on forward currency contracts | 277 | |||||||
| Receivables for: | ||||||||
| Sales of investments | 37,180 | |||||||
| Sales of fund's shares | 45,124 | |||||||
| Dividends and interest | 236,331 | 318,635 | ||||||
| 10,050,491 | ||||||||
| Liabilities: | ||||||||
| Unrealized loss on forward currency contracts | 367 | |||||||
| Payables for: | ||||||||
| Purchases of investments | 59,313 | |||||||
| Repurchases of fund's shares | 18,615 | |||||||
| Dividends on fund's shares | 9,198 | |||||||
| Investment advisory services | 3,103 | |||||||
| Services provided by affiliates | 4,338 | |||||||
| Trustees' deferred compensation | 103 | |||||||
| Other | 120 | 94,790 | ||||||
| Net assets at March 31, 2009 | $ | 9,955,334 | ||||||
| Net assets consist of: | ||||||||
| Capital paid in on shares of beneficial interest | $ | 15,034,293 | ||||||
| Undistributed net investment income | 8,854 | |||||||
| Accumulated net realized loss | (1,189,208 | ) | ||||||
| Net unrealized depreciation | (3,898,605 | ) | ||||||
| Net assets at March 31, 2009 | $ | 9,955,334 | ||||||
| (dollars and shares in thousands, except per-share amounts) | ||||||||||||
| Shares of beneficial interest issued and outstanding (no stated par value) - unlimited shares authorized (1,274,855 total shares outstanding) | ||||||||||||
| Net assets | Shares outstanding | Net asset value per share * | ||||||||||
| Class A | $ | 6,919,771 | 886,128 | $ | 7.81 | |||||||
| Class B | 420,325 | 53,826 | 7.81 | |||||||||
| Class C | 748,011 | 95,788 | 7.81 | |||||||||
| Class F-1 | 999,656 | 128,013 | 7.81 | |||||||||
| Class F-2 | 114,938 | 14,719 | 7.81 | |||||||||
| Class 529-A | 110,234 | 14,116 | 7.81 | |||||||||
| Class 529-B | 15,441 | 1,977 | 7.81 | |||||||||
| Class 529-C | 43,252 | 5,539 | 7.81 | |||||||||
| Class 529-E | 6,416 | 822 | 7.81 | |||||||||
| Class 529-F-1 | 4,841 | 620 | 7.81 | |||||||||
| Class R-1 | 10,617 | 1,360 | 7.81 | |||||||||
| Class R-2 | 110,556 | 14,158 | 7.81 | |||||||||
| Class R-3 | 172,721 | 22,118 | 7.81 | |||||||||
| Class R-4 | 107,580 | 13,776 | 7.81 | |||||||||
| Class R-5 | 170,975 | 21,895 | 7.81 | |||||||||
| (*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Classes A and 529-A, for which the maximum offering prices per share were $8.11 each. | ||||||||||||
| See Notes to Financial Statements | ||||||||||||
| Statement of operations | unaudited | |||||||
| for the six months ended March 31, 2009 | (dollars in thousands) | |||||||
| Investment income: | ||||||||
| Income: | ||||||||
| Interest (net of non-U.S. | ||||||||
| taxes of $15; also includes | ||||||||
| $1,366 from affiliates) | $ | 551,977 | ||||||
| Dividends | 4,013 | $ | 555,990 | |||||
| Fees and expenses*: | ||||||||
| Investment advisory services | 18,676 | |||||||
| Distribution services | 16,483 | |||||||
| Transfer agent services | 5,832 | |||||||
| Administrative services | 2,471 | |||||||
| Reports to shareholders | 618 | |||||||
| Registration statement and prospectus | 380 | |||||||
| Trustees' compensation | 39 | |||||||
| Auditing and legal | 61 | |||||||
| Custodian | 108 | |||||||
| State and local taxes | 118 | |||||||
| Other | 454 | |||||||
Total fees and expenses before reimbursements/waivers | 45,240 | |||||||
Less reimbursements/waivers of fees and expenses: | ||||||||
| Investment advisory services | 941 | |||||||
| Administrative services | 160 | |||||||
Total fees and expenses after reimbursements/waivers | 44,139 | |||||||
| Net investment income | 511,851 | |||||||
| Net realized loss and unrealized | ||||||||
| depreciation on investments | ||||||||
| and currency: | ||||||||
| Net realized loss on: | ||||||||
| Investments | (947,424 | ) | ||||||
| Currency transactions | (1,905 | ) | (949,329 | ) | ||||
| Net unrealized (depreciation) appreciation on: | ||||||||
| Investments | (1,525,661 | ) | ||||||
| Currency translations | 472 | (1,525,189 | ) | |||||
| Net realized loss and | ||||||||
| unrealized depreciation on investments and currency | (2,474,518 | ) | ||||||
| Net decrease in net assets resulting | ||||||||
| from operations | $ | (1,962,667 | ) | |||||
| (*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. | ||||||||
| See Notes to Financial Statements | ||||||||
| Statements of changes in net assets | (dollars in thousands) | |||||||
Six months ended March 31, | Year ended September 30, | |||||||
| 2009* | 2008 | |||||||
| Operations: | ||||||||
| Net investment income | $ | 511,851 | $ | 1,021,310 | ||||
| Net realized loss on investments | ||||||||
| and currency transactions | (949,329 | ) | (210,963 | ) | ||||
| Net unrealized depreciation on investments | ||||||||
| and currency translations | (1,525,189 | ) | (2,410,161 | ) | ||||
| Net decrease in net assets resulting from operations | (1,962,667 | ) | (1,599,814 | ) | ||||
| Dividends and distributions paid or accrued to shareholders: | ||||||||
| Dividends from net investment income | (545,866 | ) | (1,018,627 | ) | ||||
| Distributions from net realized gain on investments | - | (25,932 | ) | |||||
Total dividends and distributions paid or accrued to shareholders | (545,866 | ) | (1,044,559 | ) | ||||
| Net capital share transactions | 935,622 | 887,582 | ||||||
| Total decrease in net assets | (1,572,911 | ) | (1,756,791 | ) | ||||
| Net assets: | ||||||||
| Beginning of period | 11,528,245 | 13,285,036 | ||||||
| End of period (including undistributed net investment income: | ||||||||
| $8,854 and $42,869, respectively) | $ | 9,955,334 | $ | 11,528,245 | ||||
*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 has 15 share classes consisting of five 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-1) 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 generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:
| Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
| Classes A and 529-A | Up to 3.75% | None (except 1% for certain redemptions within one year of purchase without an initial sales charge) | None |
| Classes B and 529-B* | None | Declines from 5% to 0% for redemptions within six years of purchase | Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years |
| Class C | None | 1% for redemptions within one year of purchase | Class C converts to Class F-1 after 10 years |
| Class 529-C | None | 1% for redemptions within one year of purchase | None |
| Class 529-E | None | None | None |
| Classes F-1, F-2 and 529-F-1 | None | None | None |
| Classes R-1, R-2, R-3, R-4 and R-5 | None | None | None |
* Effective April 21, 2009, Classes B and 529-B will not be available for purchase.
On May 1, 2009, the fund made an additional retirement plan share class (Class R-6) available for sale pursuant to an amendment to its registration statement filed with the Securities and Exchange Commission (“SEC”). Refer to the fund’s retirement plan prospectus for more details.
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
Significant accounting policies – The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:
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. 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. 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. 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. Closed forward currency contracts that have not reached their expiration date are included in the respective receivables for sales or payables for purchases of investment securities in the statement of assets and liabilities.
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. Risk factors
Investing in the fund may involve certain risks including, but not limited to, those described below.
The values of, and the income generated by, most debt securities held by the fund may be affected by changing interest rates and by changes in the effective maturities and credit ratings of these securities. For example, the values of debt securities in the fund's portfolio generally will decline when interest rates rise and increase when interest rates fall. In addition, falling interest rates may cause an issuer to redeem, "call" or refinance a security before its stated maturity, which may result in the fund having to reinvest the proceeds in lower yielding securities. Debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer will weaken and/or an issuer of a debt security will fail to make timely payments of principal or interest and the security will go into default. Lower quality or longer maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than higher quality or shorter maturity debt securities. There may be little trading in the secondary market for particular debt securities, which may make them more difficult to value or sell.
The prices of, and the income generated by, securities held by the fund may decline in response to certain events, including those directly involving the companies whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and commodity price fluctuations. Investments in securities issued by entities based outside the United States may be subject to the risks described above to a greater extent and may also be affected by currency controls; different accounting, auditing, financial reporting, and legal standards and practices in some countries; expropriation; changes in tax policy; greater market volatility; differing securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payments of dividends. These risks may be heightened in connection with investments in developing countries.
3. Taxation and distributions
Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended March 31, 2009, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.
The fund is not subject to examination by U.S. federal tax authorities for tax years before 2004, by state tax authorities for tax years before 2003 and by tax authorities outside the U.S. for tax years before 2004.
Non-U.S. taxation – Dividend and interest income is recorded net of non-U.S. taxes paid. 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.
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.
The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of September 30, 2008, the fund had tax basis undistributed ordinary income of $73,349,000 and capital loss deferrals (realized during the period November 1, 2007, through September 30, 2008) of $227,578,000.
As of March 31, 2009, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:
| (dollars in thousands) | ||||
| Gross unrealized appreciation on investment securities | $ | 86,193 | ||
| Gross unrealized depreciation on investment securities | (4,018,855 | ) | ||
| Net unrealized depreciation on investment securities | (3,932,662 | ) | ||
| Cost of investment securities | 13,662,584 | |||
The tax character of distributions paid or accrued to shareholders was as follows (dollars in thousands):
| Six months ended March 31, 2009 | Year ended September 30, 2008 | |||||||||||||||||||||||
| Share class | Ordinary income | Long-term capital gains | Total distributions paid or accrued | Ordinary income | Long-term capital gains | Total distributions paid or accrued | ||||||||||||||||||
| Class A | $ | 384,837 | $ | - | $ | 384,837 | $ | 730,206 | $ | 18,402 | $ | 748,608 | ||||||||||||
| Class B | 23,439 | - | 23,439 | 49,409 | 1,431 | 50,840 | ||||||||||||||||||
| Class C | 38,736 | - | 38,736 | 72,541 | 2,038 | 74,579 | ||||||||||||||||||
| Class F-1 | 56,325 | - | 56,325 | 102,194 | 2,457 | 104,651 | ||||||||||||||||||
| Class F-2* | 2,900 | - | 2,900 | 89 | - | 89 | ||||||||||||||||||
| Class 529-A | 5,930 | - | 5,930 | 10,246 | 252 | 10,498 | ||||||||||||||||||
| Class 529-B | 816 | - | 816 | 1,467 | 41 | 1,508 | ||||||||||||||||||
| Class 529-C | 2,220 | - | 2,220 | 3,831 | 106 | 3,937 | ||||||||||||||||||
| Class 529-E | 330 | - | 330 | 559 | 14 | 573 | ||||||||||||||||||
| Class 529-F-1 | 270 | - | 270 | 475 | 11 | 486 | ||||||||||||||||||
| Class R-1 | 534 | - | 534 | 919 | 25 | 944 | ||||||||||||||||||
| Class R-2 | 5,809 | - | 5,809 | 10,006 | 274 | 10,280 | ||||||||||||||||||
| Class R-3 | 9,072 | - | 9,072 | 15,162 | 381 | 15,543 | ||||||||||||||||||
| Class R-4 | 6,060 | - | 6,060 | 10,337 | 246 | 10,583 | ||||||||||||||||||
| Class R-5 | 8,588 | - | 8,588 | 11,186 | 254 | 11,440 | ||||||||||||||||||
| Total | $ | 545,866 | $ | - | $ | 545,866 | $ | 1,018,627 | $ | 25,932 | $ | 1,044,559 | ||||||||||||
| * Class F-2 was offered beginning August 1, 2008. | ||||||||||||||||||||||||
4. Fees and transactions with related parties
Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company® ("AFS"), the fund’s transfer agent, and American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares.
Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.30% on the first $60 million of daily net assets and decreasing to 0.135% on such assets in excess of $15 billion. 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 waived a portion of its investment advisory services fee commencing on September 1, 2004, and terminating on December 31, 2008. During the six months ended March 31, 2009, total investment advisory services fees waived by CRMC were $941,000. As a result, the fee shown on the accompanying financial statements of $18,676,000, which was equivalent to an annualized rate of 0.397%, was reduced to $17,735,000, or 0.377% of average daily net assets.
Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:
Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2 and 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, except Classes F-2 and R-5, may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
For Classes A and 529-A, 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, 2009, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.
| Share class | Currently approved limits | Plan limits |
| Class A | 0.30% | 0.30% |
| Class 529-A | 0.30 | 0.50 |
| Classes B and 529-B | 1.00 | 1.00 |
| Classes C, 529-C and R-1 | 1.00 | 1.00 |
| Class R-2 | 0.75 | 1.00 |
| Classes 529-E and R-3 | 0.50 | 0.75 |
| Classes F-1, 529-F-1 and R-4 | 0.25 | 0.50 |
Transfer agent services – The fund has a transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.
Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Classes A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) 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, 2009, the total administrative services fees paid by CRMC were $160,000 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 administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a declining series of annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.
Expenses under the agreements described above for the six months ended March 31, 2009, were as follows (dollars in thousands):
| Share class | Distribution services | Transfer agent services | Administrative services | ||
| CRMC administrative services | Transfer agent services | Commonwealth of Virginia administrative services | |||
| Class A | $8,233 | $5,474 | Not applicable | Not applicable | Not applicable |
| Class B | 2,136 | 358 | Not applicable | Not applicable | Not applicable |
| Class C | 3,536 | Included in administrative services | $531 | $110 | Not applicable |
| Class F-1 | 1,200 | 726 | 116 | Not applicable | |
| Class F-2 | Not applicable | 30 | 4 | Not applicable | |
| Class 529-A | 110 | 55 | 12 | $51 | |
| Class 529-B | 75 | 8 | 4 | 8 | |
| Class 529-C | 203 | 22 | 8 | 20 | |
| Class 529-E | 14 | 3 | 1 | 3 | |
| Class 529-F-1 | - | 3 | 1 | 2 | |
| Class R-1 | 49 | 5 | 7 | Not applicable | |
| Class R-2 | 396 | 79 | 301 | Not applicable | |
| Class R-3 | 402 | 120 | 78 | Not applicable | |
| Class R-4 | 129 | 76 | 11 | Not applicable | |
| Class R-5 | Not applicable | 71 | 5 | Not applicable | |
| Total | $16,483 | $5,832 | $1,729 | $658 | $84 |
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 $39,000, shown on the accompanying financial statements, includes $92,000 in current fees (either paid in cash or deferred) and a net decrease of $53,000 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. Disclosure of fair value measurements
The fund adopted the Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, on October 1, 2008. FAS 157 requires the fund to classify its assets and liabilities into three levels based on the method used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are generally high-quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of March 31, 2009 (dollars in thousands):
| Investment securities | Forward currency contracts | |||||||
| Level 1 – Quoted prices | $ | 100,545 | ||||||
| Level 2 – Other significant observable inputs | 9,608,442 | $ | (90 | ) (*) | ||||
| Level 3 – Significant unobservable inputs | 20,935 | |||||||
| Total | $ | 9,729,922 | ||||||
* Forward currency contracts are not included in the summary investment portfolio.
The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions during the six months ended March 31, 2009 (dollars in thousands):
| Level 3 investment securities | ||||
| Beginning value at 10/1/2008 | $ | 67,983 | ||
| Net purchases | 8,726 | |||
| Net unrealized depreciation (†) | (40,752 | ) | ||
| Net transfers out of Level 3 | (15,022 | ) | ||
| Ending value at 3/31/2009 | $ | 20,935 | ||
| Net unrealized depreciation during the period on Level 3 investment securities held at 3/31/2009 (†) | $ | (6,002 | ) |
† Net unrealized depreciation is included in the related amounts on investments in the statement of operations.
6. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
| Share class | Sales* | Reinvestments of dividends and distributions | Repurchases* | Net increase (decrease) | ||||||||||||||||||||||||||||
| Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | |||||||||||||||||||||||||
| Six months ended March 31, 2009 | ||||||||||||||||||||||||||||||||
| Class A | $ | 1,528,699 | 192,406 | $ | 321,087 | 41,155 | $ | (1,246,686 | ) | (154,034 | ) | $ | 603,100 | 79,527 | ||||||||||||||||||
| Class B | 56,205 | 7,078 | 18,272 | 2,343 | (91,164 | ) | (11,254 | ) | (16,687 | ) | (1,833 | ) | ||||||||||||||||||||
| Class C | 170,860 | 21,539 | 29,631 | 3,800 | (150,004 | ) | (18,451 | ) | 50,487 | 6,888 | ||||||||||||||||||||||
| Class F-1 | 411,984 | 51,892 | 45,703 | 5,858 | (401,595 | ) | (50,004 | ) | 56,092 | 7,746 | ||||||||||||||||||||||
| Class F-2 | 113,989 | 14,442 | 2,121 | 272 | (10,849 | ) | (1,351 | ) | 105,261 | 13,363 | ||||||||||||||||||||||
| Class 529-A | 21,254 | 2,675 | 5,898 | 756 | (10,564 | ) | (1,308 | ) | 16,588 | 2,123 | ||||||||||||||||||||||
| Class 529-B | 1,867 | 235 | 811 | 104 | (1,532 | ) | (192 | ) | 1,146 | 147 | ||||||||||||||||||||||
| Class 529-C | 8,333 | 1,046 | 2,205 | 283 | (5,812 | ) | (721 | ) | 4,726 | 608 | ||||||||||||||||||||||
| Class 529-E | 1,445 | 182 | 328 | 42 | (612 | ) | (76 | ) | 1,161 | 148 | ||||||||||||||||||||||
| Class 529-F-1 | 1,241 | 157 | 267 | 34 | (1,042 | ) | (129 | ) | 466 | 62 | ||||||||||||||||||||||
| Class R-1 | 3,026 | 378 | 522 | 67 | (2,228 | ) | (273 | ) | 1,320 | 172 | ||||||||||||||||||||||
| Class R-2 | 28,111 | 3,509 | 5,757 | 739 | (22,947 | ) | (2,839 | ) | 10,921 | 1,409 | ||||||||||||||||||||||
| Class R-3 | 83,697 | 10,519 | 9,009 | 1,155 | (63,592 | ) | (8,087 | ) | 29,114 | 3,587 | ||||||||||||||||||||||
| Class R-4 | 28,071 | 3,505 | 6,028 | 773 | (24,316 | ) | (3,006 | ) | 9,783 | 1,272 | ||||||||||||||||||||||
| Class R-5 | 81,573 | 10,313 | 8,135 | 1,044 | (27,564 | ) | (3,408 | ) | 62,144 | 7,949 | ||||||||||||||||||||||
| Total net increase | ||||||||||||||||||||||||||||||||
| (decrease) | $ | 2,540,355 | 319,876 | $ | 455,774 | 58,425 | $ | (2,060,507 | ) | (255,133 | ) | $ | 935,622 | 123,168 | ||||||||||||||||||
| Year ended September 30, 2008 | ||||||||||||||||||||||||||||||||
| Class A | $ | 1,832,026 | 159,405 | $ | 607,542 | 53,246 | $ | (2,022,226 | ) | (176,467 | ) | $ | 417,342 | 36,184 | ||||||||||||||||||
| Class B | 58,432 | 5,104 | 37,258 | 3,262 | (158,870 | ) | (13,890 | ) | (63,180 | ) | (5,524 | ) | ||||||||||||||||||||
| Class C | 246,125 | 21,376 | 55,146 | 4,833 | (250,750 | ) | (21,944 | ) | 50,521 | 4,265 | ||||||||||||||||||||||
| Class F-1 | 734,169 | 63,613 | 80,516 | 7,080 | (507,861 | ) | (44,805 | ) | 306,824 | 25,888 | ||||||||||||||||||||||
Class F-2† | 15,292 | 1,418 | 62 | 6 | (708 | ) | (68 | ) | 14,646 | 1,356 | ||||||||||||||||||||||
| Class 529-A | 28,484 | 2,472 | 10,354 | 909 | (16,441 | ) | (1,438 | ) | 22,397 | 1,943 | ||||||||||||||||||||||
| Class 529-B | 2,433 | 211 | 1,488 | 130 | (2,201 | ) | (193 | ) | 1,720 | 148 | ||||||||||||||||||||||
| Class 529-C | 13,564 | 1,179 | 3,879 | 340 | (9,536 | ) | (836 | ) | 7,907 | 683 | ||||||||||||||||||||||
| Class 529-E | 1,899 | 165 | 565 | 50 | (1,241 | ) | (110 | ) | 1,223 | 105 | ||||||||||||||||||||||
| Class 529-F-1 | 1,651 | 143 | 479 | 42 | (944 | ) | (81 | ) | 1,186 | 104 | ||||||||||||||||||||||
| Class R-1 | 5,262 | 459 | 908 | 80 | (4,723 | ) | (410 | ) | 1,447 | 129 | ||||||||||||||||||||||
| Class R-2 | 52,030 | 4,528 | 10,105 | 886 | (44,002 | ) | (3,829 | ) | 18,133 | 1,585 | ||||||||||||||||||||||
| Class R-3 | 103,670 | 8,970 | 15,333 | 1,345 | (78,446 | ) | (6,830 | ) | 40,557 | 3,485 | ||||||||||||||||||||||
| Class R-4 | 71,390 | 6,189 | 10,447 | 917 | (47,098 | ) | (4,125 | ) | 34,739 | 2,981 | ||||||||||||||||||||||
| Class R-5 | 91,071 | 7,933 | 10,522 | 925 | (69,473 | ) | (6,009 | ) | 32,120 | 2,849 | ||||||||||||||||||||||
| Total net increase | ||||||||||||||||||||||||||||||||
| (decrease) | $ | 3,257,498 | 283,165 | $ | 844,604 | 74,051 | $ | (3,214,520 | ) | (281,035 | ) | $ | 887,582 | 76,181 | ||||||||||||||||||
| * Includes exchanges between share classes of the fund. | ||||||||||||||||||||||||||||||||
| † Class F-2 was offered beginning August 1, 2008. | ||||||||||||||||||||||||||||||||
7. Forward currency contracts
As of March 31, 2009, the fund had open forward currency contracts to sell currencies as follows (amounts in thousands):
| Contract amount | U.S. valuation at March 31, 2009 | |||
| Unrealized | ||||
| Receive | Deliver | Amount | depreciation | |
| Sales: | ||||
| Euros expiring 4/3 to 4/23/2009 | $23,944 | €18,115 | $24,034 | $(90) |
8. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $1,467,954,000 and $1,201,928,000, respectively, during the six months ended March 31, 2009.
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 3/31/2009(5) | $ | 10.01 | $ | .44 | $ | (2.17 | ) | $ | (1.73 | ) | $ | (.47 | ) | $ | - | $ | (.47 | ) | $ | 7.81 | (17.16 | )% | $ | 6,920 | .85 | %(6) | .83 | %(6) | 10.98 | %(6) | ||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .93 | (2.32 | ) | (1.39 | ) | (.93 | ) | (.02 | ) | (.95 | ) | 10.01 | (11.87 | ) | 8,074 | .70 | .67 | 8.14 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class B: | Six months ended 3/31/2009(5) | 10.01 | .41 | (2.17 | ) | (1.76 | ) | (.44 | ) | - | (.44 | ) | 7.81 | (17.47 | ) | 420 | 1.60 | (6) | 1.58 | (6) | 10.25 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .85 | (2.32 | ) | (1.47 | ) | (.85 | ) | (.02 | ) | (.87 | ) | 10.01 | (12.55 | ) | 557 | 1.47 | 1.44 | 7.37 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class C: | Six months ended 3/31/2009(5) | 10.01 | .41 | (2.17 | ) | (1.76 | ) | (.44 | ) | - | (.44 | ) | 7.81 | (17.47 | ) | 748 | 1.61 | (6) | 1.59 | (6) | 10.21 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .84 | (2.32 | ) | (1.48 | ) | (.84 | ) | (.02 | ) | (.86 | ) | 10.01 | (12.59 | ) | 890 | 1.52 | 1.48 | 7.32 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class F-1: | Six months ended 3/31/2009(5) | 10.01 | .44 | (2.17 | ) | (1.73 | ) | (.47 | ) | - | (.47 | ) | 7.81 | (17.15 | ) | 1,000 | .85 | (6) | .83 | (6) | 10.95 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .93 | (2.32 | ) | (1.39 | ) | (.93 | ) | (.02 | ) | (.95 | ) | 10.01 | (11.90 | ) | 1,204 | .74 | .70 | 8.09 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class F-2: | Six months ended 3/31/2009(5) | 10.01 | .42 | (2.14 | ) | (1.72 | ) | (.48 | ) | - | (.48 | ) | 7.81 | (17.04 | ) | 115 | .57 | (6) | .55 | (6) | 11.00 | (6) | |||||||||||||||||||||||||||||||
| Period from 8/4/2008 to 9/30/2008 | 11.01 | .14 | (1.00 | ) | (.86 | ) | (.14 | ) | - | (.14 | ) | 10.01 | (7.84 | ) | 13 | .08 | .07 | 1.34 | |||||||||||||||||||||||||||||||||||
| Class 529-A: | Six months ended 3/31/2009(5) | 10.01 | .44 | (2.17 | ) | (1.73 | ) | (.47 | ) | - | (.47 | ) | 7.81 | (17.17 | ) | 110 | .88 | (6) | .86 | (6) | 10.95 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .93 | (2.32 | ) | (1.39 | ) | (.93 | ) | (.02 | ) | (.95 | ) | 10.01 | (11.91 | ) | 120 | .74 | .71 | 8.11 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class 529-B: | Six months ended 3/31/2009(5) | 10.01 | .41 | (2.17 | ) | (1.76 | ) | (.44 | ) | - | (.44 | ) | 7.81 | (17.51 | ) | 15 | 1.69 | (6) | 1.67 | (6) | 10.15 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .84 | (2.32 | ) | (1.48 | ) | (.84 | ) | (.02 | ) | (.86 | ) | 10.01 | (12.64 | ) | 18 | 1.58 | 1.55 | 7.26 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class 529-C: | Six months ended 3/31/2009(5) | 10.01 | .41 | (2.17 | ) | (1.76 | ) | (.44 | ) | - | (.44 | ) | 7.81 | (17.50 | ) | 43 | 1.68 | (6) | 1.66 | (6) | 10.16 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .84 | (2.32 | ) | (1.48 | ) | (.84 | ) | (.02 | ) | (.86 | ) | 10.01 | (12.64 | ) | 49 | 1.57 | 1.54 | 7.27 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class 529-E: | Six months ended 3/31/2009(5) | 10.01 | .43 | (2.17 | ) | (1.74 | ) | (.46 | ) | - | (.46 | ) | 7.81 | (17.29 | ) | 6 | 1.16 | (6) | 1.14 | (6) | 10.67 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .90 | (2.32 | ) | (1.42 | ) | (.90 | ) | (.02 | ) | (.92 | ) | 10.01 | (12.18 | ) | 7 | 1.06 | 1.02 | 7.79 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class 529-F-1: | Six months ended 3/31/2009(5) | $ | 10.01 | $ | .45 | $ | (2.17 | ) | $ | (1.72 | ) | $ | (.48 | ) | $ | - | $ | (.48 | ) | $ | 7.81 | (17.08 | )% | $ | 5 | .67 | %(6) | .65 | %(6) | 11.16 | %(6) | ||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .95 | (2.32 | ) | (1.37 | ) | (.95 | ) | (.02 | ) | (.97 | ) | 10.01 | (11.74 | ) | 6 | .56 | .52 | 8.29 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class R-1: | Six months ended 3/31/2009(5) | 10.01 | .41 | (2.17 | ) | (1.76 | ) | (.44 | ) | - | (.44 | ) | 7.81 | (17.51 | ) | 11 | 1.68 | (6) | 1.67 | (6) | 10.13 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .84 | (2.32 | ) | (1.48 | ) | (.84 | ) | (.02 | ) | (.86 | ) | 10.01 | (12.62 | ) | 12 | 1.55 | 1.52 | 7.29 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class R-2: | Six months ended 3/31/2009(5) | 10.01 | .41 | (2.17 | ) | (1.76 | ) | (.44 | ) | - | (.44 | ) | 7.81 | (17.47 | ) | 110 | 1.89 | (6) | 1.57 | (6) | 10.25 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .84 | (2.32 | ) | (1.48 | ) | (.84 | ) | (.02 | ) | (.86 | ) | 10.01 | (12.58 | ) | 128 | 1.70 | 1.48 | 7.34 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class R-3: | Six months ended 3/31/2009(5) | 10.01 | .43 | (2.17 | ) | (1.74 | ) | (.46 | ) | - | (.46 | ) | 7.81 | (17.29 | ) | 173 | 1.17 | (6) | 1.15 | (6) | 10.65 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .89 | (2.32 | ) | (1.43 | ) | (.89 | ) | (.02 | ) | (.91 | ) | 10.01 | (12.20 | ) | 185 | 1.07 | 1.04 | 7.77 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class R-4: | Six months ended 3/31/2009(5) | 10.01 | .44 | (2.17 | ) | (1.73 | ) | (.47 | ) | - | (.47 | ) | 7.81 | (17.15 | ) | 108 | .84 | (6) | .82 | (6) | 10.99 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .93 | (2.32 | ) | (1.39 | ) | (.93 | ) | (.02 | ) | (.95 | ) | 10.01 | (11.93 | ) | 125 | .77 | .73 | 8.08 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Class R-5: | Six months ended 3/31/2009(5) | 10.01 | .45 | (2.17 | ) | (1.72 | ) | (.48 | ) | - | (.48 | ) | 7.81 | (17.03 | ) | 171 | .53 | (6) | .52 | (6) | 11.25 | (6) | |||||||||||||||||||||||||||||||
| Year ended 9/30/2008 | 12.35 | .96 | (2.32 | ) | (1.36 | ) | (.96 | ) | (.02 | ) | (.98 | ) | 10.01 | (11.65 | ) | 140 | .45 | .42 | 8.40 | ||||||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||||||||||
| Six months ended | ||||||||||||||||||||||||
| March 31, | Year ended September 30 | |||||||||||||||||||||||
2009(5) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||
| Portfolio turnover rate for all classes of shares | 15 | % | 35 | % | 42 | % | 41 | % | 39 | % | 39 | % | ||||||||||||
(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 | ||||||||||||||
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, 2008, through March 31, 2009).
Actual expenses:
The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
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 10/1/2008 | Ending account value 3/31/2009 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
| Class A -- actual return | $ | 1,000.00 | $ | 828.43 | $ | 3.78 | .83 | % | ||||||||
| Class A -- assumed 5% return | 1,000.00 | 1,020.79 | 4.18 | .83 | ||||||||||||
| Class B -- actual return | 1,000.00 | 825.30 | 7.19 | 1.58 | ||||||||||||
| Class B -- assumed 5% return | 1,000.00 | 1,017.05 | 7.95 | 1.58 | ||||||||||||
| Class C -- actual return | 1,000.00 | 825.25 | 7.24 | 1.59 | ||||||||||||
| Class C -- assumed 5% return | 1,000.00 | 1,017.00 | 8.00 | 1.59 | ||||||||||||
| Class F-1 -- actual return | 1,000.00 | 828.45 | 3.78 | .83 | ||||||||||||
| Class F-1 -- assumed 5% return | 1,000.00 | 1,020.79 | 4.18 | .83 | ||||||||||||
| Class F-2 -- actual return | 1,000.00 | 829.56 | 2.51 | .55 | ||||||||||||
| Class F-2 -- assumed 5% return | 1,000.00 | 1,022.19 | 2.77 | .55 | ||||||||||||
| Class 529-A -- actual return | 1,000.00 | 828.29 | 3.92 | .86 | ||||||||||||
| Class 529-A -- assumed 5% return | 1,000.00 | 1,020.64 | 4.33 | .86 | ||||||||||||
| Class 529-B -- actual return | 1,000.00 | 824.94 | 7.60 | 1.67 | ||||||||||||
| Class 529-B -- assumed 5% return | 1,000.00 | 1,016.60 | 8.40 | 1.67 | ||||||||||||
| Class 529-C -- actual return | 1,000.00 | 824.98 | 7.55 | 1.66 | ||||||||||||
| Class 529-C -- assumed 5% return | 1,000.00 | 1,016.65 | 8.35 | 1.66 | ||||||||||||
| Class 529-E -- actual return | 1,000.00 | 827.14 | 5.19 | 1.14 | ||||||||||||
| Class 529-E -- assumed 5% return | 1,000.00 | 1,019.25 | 5.74 | 1.14 | ||||||||||||
| Class 529-F-1 -- actual return | 1,000.00 | 829.21 | 2.96 | .65 | ||||||||||||
| Class 529-F-1 -- assumed 5% return | 1,000.00 | 1,021.69 | 3.28 | .65 | ||||||||||||
| Class R-1 -- actual return | 1,000.00 | 824.93 | 7.60 | 1.67 | ||||||||||||
| Class R-1 -- assumed 5% return | 1,000.00 | 1,016.60 | 8.40 | 1.67 | ||||||||||||
| Class R-2 -- actual return | 1,000.00 | 825.34 | 7.14 | 1.57 | ||||||||||||
| Class R-2 -- assumed 5% return | 1,000.00 | 1,017.10 | 7.90 | 1.57 | ||||||||||||
| Class R-3 -- actual return | 1,000.00 | 827.08 | 5.24 | 1.15 | ||||||||||||
| Class R-3 -- assumed 5% return | 1,000.00 | 1,019.20 | 5.79 | 1.15 | ||||||||||||
| Class R-4 -- actual return | 1,000.00 | 828.47 | 3.74 | .82 | ||||||||||||
| Class R-4 -- assumed 5% return | 1,000.00 | 1,020.84 | 4.13 | .82 | ||||||||||||
| Class R-5 -- actual return | 1,000.00 | 829.75 | 2.37 | .52 | ||||||||||||
| Class R-5 -- assumed 5% return | 1,000.00 | 1,022.34 | 2.62 | .52 | ||||||||||||
*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 (182), and divided by 365 (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 near you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Counsel
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, 2009, 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. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available on the American Funds website or 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, 2009, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
[logo - - American Funds®]
The right choice for the long term®
What makes American Funds different?
For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.
Our unique combination of strengths includes these five factors:
| •A long-term, value-oriented approach |
| We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term. |
| •An extensive global research effort |
| Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets. |
| •The multiple portfolio counselor system |
| Our unique approach to portfolio management, developed 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives. |
| •Experienced investment professionals |
| American Funds portfolio counselors have an average of 25 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have. |
| •A commitment to low management fees |
| The American Funds provide exceptional value for shareholders, with management fees that are among the lowest in the mutual fund industry. |
American Funds span a range of investment objectives
•Growth funds
AMCAP Fund®
EuroPacific Growth Fund®
The Growth Fund of America®
The New Economy Fund®
New Perspective Fund®
New World Fund®
SMALLCAP World Fund®
•Growth-and-income funds
American Mutual Fund®
Capital World Growth and Income FundSM
Fundamental InvestorsSM
International Growth and Income FundSM
The Investment Company of America®
Washington Mutual Investors FundSM
•Equity-income funds
Capital Income Builder®
The Income Fund of America®
•Balanced fund
American Balanced Fund®
•Bond funds
>American High-Income TrustSM
The Bond Fund of AmericaSM
Capital World Bond Fund®
Intermediate Bond Fund of America®
Short-Term Bond Fund of AmericaSM
U.S. Government Securities FundSM
•Tax-exempt bond funds
American High-Income Municipal Bond Fund®
Limited Term Tax-Exempt Bond Fund of AmericaSM
The Tax-Exempt Bond Fund of America®
State-specific tax-exempt funds
The Tax-Exempt Fund of California®
The Tax-Exempt Fund of Maryland®
The Tax-Exempt Fund of Virginia®
•Money market funds
American Funds Money Market Fund SM
The 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-921-0509P
Litho in USA RCG/L/8076-S16785
Printed on paper containing 10% post-consumer waste
Printed with inks containing soy and/or vegetable oil
ITEM 2 – Code of Ethics
Not applicable for filing of semi-annual reports to shareholders.
ITEM 3 – Audit Committee Financial Expert
Not applicable for filing of semi-annual reports to shareholders.
ITEM 4 – Principal Accountant Fees and Services
Not applicable for filing of semi-annual reports to shareholders.
ITEM 5 – Audit Committee of Listed Registrants
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6 – Schedule of Investments
[logo – American Funds®]
American High-Income TrustSM
Investment portfolio
March 31, 2009
unaudited
| Bonds, notes & other debt instruments — 76.48% | Principal amount (000) | Value (000) | ||||||
| CORPORATE BONDS, NOTES & LOANS — 70.79% | ||||||||
| CONSUMER DISCRETIONARY — 16.40% | ||||||||
| CCH II, LLC and CCH II Capital Corp. 10.25% 2010 | $ | 62,980 | $ | 56,997 | ||||
| Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corp. 11.75% 2011 | 6,000 | 67 | ||||||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.00% 20121 | 50,950 | 46,874 | ||||||
| CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013 | 43,890 | 36,868 | ||||||
Charter Communications Operating, LLC, Term Loan B, 3.18% 20142,3,4 | 44,586 | 36,356 | ||||||
Charter Communications Operating, LLC, Term Loan B, 7.25% 20142,3,4 | 26,483 | 24,496 | ||||||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.375% 20141 | 28,700 | 25,400 | ||||||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 10.875% 20141 | 26,500 | 25,838 | ||||||
| CCH I, LLC and CCH I Capital Corp. 11.00% 2015 | 7,475 | 841 | ||||||
| Univision Communications Inc. 7.85% 2011 | 53,771 | 34,682 | ||||||
Univision Communications, Inc., First Lien Term Loan B, 2.768% 20142,3,4 | 78,170 | 40,990 | ||||||
Univision Communications Inc. 9.75% 20151,5 | 149,175 | 15,663 | ||||||
| NTL Cable PLC 8.75% 2014 | 43,400 | 41,230 | ||||||
| NTL Cable PLC 8.75% 2014 | € | 4,500 | 5,373 | |||||
| NTL Cable PLC 9.75% 2014 | £ | 3,000 | 3,868 | |||||
| NTL Cable PLC 9.125% 2016 | $ | 18,375 | 17,181 | |||||
Michaels Stores, Inc., Term Loan B, 2.75% 20132,3,4 | 28,846 | 16,054 | ||||||
| Michaels Stores, Inc. 10.00% 2014 | 99,725 | 47,494 | ||||||
Michaels Stores, Inc. 0%/13.00% 20166 | 3,355 | 654 | ||||||
Allison Transmission Holdings, Inc., Term Loan B, 3.29% 20142,3,4 | 13,888 | 9,334 | ||||||
Allison Transmission Holdings, Inc. 11.00% 20151 | 45,300 | 21,744 | ||||||
Allison Transmission Holdings, Inc. 11.25% 20151,5 | 74,975 | 30,365 | ||||||
Dollar General Corp., Term Loan B2, 3.268% 20142,3,4 | 5,000 | 4,320 | ||||||
| Dollar General Corp. 10.625% 2015 | 24,250 | 24,311 | ||||||
Dollar General Corp. 11.875% 20172,5 | 31,000 | 30,613 | ||||||
TL Acquisitions, Inc., Term Loan B, 3.02% 20142,3,4 | 38,600 | 26,393 | ||||||
Thomson Learning 10.50% 20151 | 56,890 | 29,441 | ||||||
| MGM MIRAGE 6.00% 2009 | 17,125 | 9,333 | ||||||
| MGM MIRAGE 8.50% 2010 | 3,100 | 1,286 | ||||||
| Mandalay Resort Group 6.375% 2011 | 1,500 | 532 | ||||||
| MGM MIRAGE 6.75% 2012 | 1,700 | 603 | ||||||
| MGM MIRAGE 6.75% 2013 | 16,855 | 5,984 | ||||||
MGM MIRAGE 13.00% 20131 | 24,650 | 18,487 | ||||||
| MGM MIRAGE 5.875% 2014 | 25,425 | 9,026 | ||||||
| MGM MIRAGE 6.625% 2015 | 7,975 | 2,871 | ||||||
| MGM MIRAGE 7.50% 2016 | 4,000 | 1,420 | ||||||
| Boyd Gaming Corp. 7.75% 2012 | 27,925 | 22,619 | ||||||
Boyd Gaming Corp. 6.75% 20147 | 28,575 | 17,431 | ||||||
Boyd Gaming Corp. 7.125% 20167 | 10,400 | 6,032 | ||||||
| Quebecor Media Inc. 7.75% 2016 | 33,400 | 25,551 | ||||||
| Quebecor Media Inc. 7.75% 2016 | 22,370 | 17,113 | ||||||
| Mohegan Tribal Gaming Authority 6.375% 2009 | 36,500 | 30,113 | ||||||
| Mohegan Tribal Gaming Authority 8.00% 2012 | 13,200 | 3,960 | ||||||
| Mohegan Tribal Gaming Authority 6.125% 2013 | 1,225 | 533 | ||||||
| Mohegan Tribal Gaming Authority 7.125% 2014 | 22,100 | 6,298 | ||||||
| Mohegan Tribal Gaming Authority 6.875% 2015 | 3,775 | 963 | ||||||
Cinemark USA, Inc., Term Loan B, 2.31% 20132,3,4 | 5,606 | 5,167 | ||||||
| Cinemark, Inc. 9.75% 2014 | 37,025 | 35,081 | ||||||
| Cablevision Systems Corp., Series B, 8.00% 2012 | 350 | 342 | ||||||
CSC Holdings, Inc. 8.50% 20141 | 23,825 | 23,587 | ||||||
CSC Holdings, Inc. 8.625% 20191 | 16,700 | 16,199 | ||||||
| AMC Entertainment Inc., Series B, 8.625% 2012 | 24,450 | 24,144 | ||||||
| AMC Entertainment Inc. 8.00% 2014 | 8,175 | 6,744 | ||||||
| AMC Entertainment Inc., Series B, 11.00% 2016 | 10,000 | 9,150 | ||||||
| Sally Holdings LLC and Sally Capital Inc. 9.25% 2014 | 32,850 | 31,290 | ||||||
| Sally Holdings LLC and Sally Capital Inc. 10.50% 2016 | 4,292 | 3,777 | ||||||
| Kabel Deutschland GmbH 10.625% 2014 | 34,275 | 34,789 | ||||||
| J.C. Penney Co., Inc. 8.00% 2010 | 14,995 | 15,006 | ||||||
| J.C. Penney Co., Inc. 9.00% 2012 | 2,980 | 2,846 | ||||||
| J.C. Penney Corp., Inc. 5.75% 2018 | 20,000 | 14,087 | ||||||
Hanesbrands Inc., Series B, 5.698% 20142 | 45,550 | 30,519 | ||||||
| Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. 6.625% 2014 | 37,925 | 28,823 | ||||||
| Toys “R” Us, Inc. 7.625% 2011 | 34,855 | 14,160 | ||||||
Toys “R” Us-Delaware, Inc., Term Loan B, 4.795% 20122,3,4 | 24,012 | 13,771 | ||||||
| Time Warner Cable Inc. 7.50% 2014 | 4,700 | 4,797 | ||||||
| Time Warner Cable Inc. 8.25% 2019 | 17,510 | 18,024 | ||||||
| Time Warner Cable Inc. 8.75% 2019 | 2,300 | 2,446 | ||||||
American Media Operation 9.00% 20131,5,8 | 3,178 | 1,668 | ||||||
American Media Operation 14.00% 20131,8 | 43,374 | 22,772 | ||||||
| iesy Repository GmbH 10.125% 2015 | € | 4,750 | 5,924 | |||||
iesy Repository GmbH 10.375% 20151 | $ | 20,475 | 18,428 | |||||
| Gaylord Entertainment Co. 8.00% 2013 | 21,700 | 14,430 | ||||||
| Gaylord Entertainment Co. 6.75% 2014 | 8,650 | 5,363 | ||||||
Circus and Eldorado Joint Venture and Silver Legacy Resort Casino 10.125% 20127 | 28,180 | 19,047 | ||||||
| Atlantic Broadband Finance, LLC and Atlantic Broadband Finance, Inc. 9.375% 2014 | 23,950 | 19,040 | ||||||
| Ford Capital BV 9.50% 2010 | 4,000 | 2,200 | ||||||
| Ford Motor Co. 9.50% 2011 | 1,000 | 460 | ||||||
| FCE Bank PLC 7.125% 2013 | € | 14,050 | 12,675 | |||||
| Ford Motor Co. 6.50% 2018 | $ | 7,075 | 2,087 | |||||
| Ford Motor Co. 8.875% 2022 | 1,625 | 496 | ||||||
| Ford Motor Co. 7.45% 2031 | 2,500 | 806 | ||||||
| Seneca Gaming Corp., Series B, 7.25% 2012 | 19,825 | 12,762 | ||||||
| Seneca Gaming Corp. 7.25% 2012 | 8,440 | 5,433 | ||||||
| Pinnacle Entertainment, Inc. 7.50% 2015 | 28,100 | 17,562 | ||||||
| General Motors Corp. 7.20% 2011 | 30,355 | 5,009 | ||||||
General Motors Corp., Term Loan B, 5.165% 20132,3,4 | 12,099 | 5,112 | ||||||
| General Motors Corp. 7.125% 2013 | 16,055 | 2,368 | ||||||
| General Motors Corp. 8.80% 2021 | 30,520 | 4,120 | ||||||
| Education Management LLC and Education Management Finance Corp. 8.75% 2014 | 14,495 | 13,770 | ||||||
| Warner Music Group 7.375% 2014 | 19,360 | 13,407 | ||||||
Regal Cinemas Corp., Series B, 9.375% 20127 | 13,300 | 13,030 | ||||||
Cox Communications, Inc. 9.375% 20191 | 4,000 | 4,292 | ||||||
Cox Communications, Inc. 8.375% 20391 | 9,125 | 8,584 | ||||||
| Federated Retail Holdings, Inc. 5.90% 2016 | 18,500 | 11,752 | ||||||
| Royal Caribbean Cruises Ltd. 8.00% 2010 | 3,200 | 2,736 | ||||||
| Royal Caribbean Cruises Ltd. 8.75% 2011 | 12,075 | 8,875 | ||||||
| Meritage Corp. 7.00% 2014 | 8,575 | 5,531 | ||||||
| Meritage Homes Corp. 6.25% 2015 | 2,675 | 1,645 | ||||||
Meritage Corp. 7.731% 20171,7 | 9,000 | 4,371 | ||||||
Edcon (Proprietary) Ltd. 4.90% 20142 | € | 22,425 | 11,305 | |||||
| Standard Pacific Corp. 5.125% 2009 | $ | 3,750 | 3,764 | |||||
| Standard Pacific Corp. 6.875% 2011 | 905 | 634 | ||||||
| Standard Pacific Corp. 7.75% 2013 | 3,920 | 2,136 | ||||||
| Standard Pacific Corp. 6.25% 2014 | 5,685 | 2,700 | ||||||
| Standard Pacific Corp. 7.00% 2015 | 2,715 | 1,317 | ||||||
| KB Home 5.875% 2015 | 4,185 | 3,262 | ||||||
| KB Home 6.25% 2015 | 9,285 | 7,242 | ||||||
| Vidéotron Ltée 6.875% 2014 | 6,780 | 6,441 | ||||||
| Vidéotron Ltée 6.375% 2015 | 3,720 | 3,390 | ||||||
Seminole Tribe of Florida 7.804% 20201,3 | 10,050 | 9,438 | ||||||
LBI Media, Inc. 8.50% 20171 | 30,380 | 8,355 | ||||||
| Sealy Mattress Co. 8.25% 2014 | 21,915 | 8,163 | ||||||
Gray Television Inc., Series D, 15.00% (undated)7,9 | 64,500 | 7,939 | ||||||
| Mediacom Broadband LLC and Mediacom Broadband Corp. 8.50% 2015 | 8,375 | 7,579 | ||||||
Fox Acquisition LLC, Term Loan B, 7.25% 20152,3,4 | 1,791 | 923 | ||||||
Fox Acquisition LLC 13.375% 20161 | 26,095 | 6,459 | ||||||
| Liberty Media Corp. 8.25% 2030 | 12,675 | 6,950 | ||||||
| Tenneco Automotive Inc., Series B, 10.25% 2013 | 5,144 | 2,752 | ||||||
| Tenneco Automotive Inc. 8.625% 2014 | 16,020 | 3,044 | ||||||
| Tenneco Inc. 8.125% 2015 | 5,000 | 1,025 | ||||||
| Beazer Homes USA, Inc. 8.625% 2011 | 9,600 | 3,120 | ||||||
| Beazer Homes USA, Inc. 8.125% 2016 | 16,725 | 3,680 | ||||||
| Bon-Ton Department Stores, Inc. 10.25% 2014 | 37,200 | 6,510 | ||||||
| DIRECTV Holdings LLC and DIRECTV Financing Co., Inc. 8.375% 2013 | 6,031 | 6,129 | ||||||
Local T.V. Finance LLC, Term Loan B, 2.52% 20132,3,4 | 8,915 | 3,403 | ||||||
Local T.V. Finance LLC 9.25% 20151,5 | 25,560 | 2,684 | ||||||
| Dillard Department Stores, Inc. 9.125% 2011 | 8,230 | 5,802 | ||||||
| William Lyon Homes, Inc. 7.625% 2012 | 14,050 | 2,459 | ||||||
| William Lyon Homes, Inc. 7.50% 2014 | 17,110 | 2,994 | ||||||
| Newell Rubbermaid Inc. 10.60% 2019 | 5,300 | 5,358 | ||||||
Claire’s Stores, Inc., Term Loan B, 3.268% 20142,3,4 | 12,472 | 5,133 | ||||||
| Radio One, Inc. 6.375% 2013 | 20,260 | 4,457 | ||||||
| Viacom Inc. 5.75% 2011 | 4,500 | 4,386 | ||||||
Neiman Marcus Group, Inc. 9.75% 20155 | 13,330 | 4,349 | ||||||
| Staples, Inc. 9.75% 2014 | 3,325 | 3,484 | ||||||
| News America Inc. 6.75% 2038 | 2,990 | 3,027 | ||||||
| Cooper-Standard Automotive Inc. 7.00% 2012 | 18,025 | 2,253 | ||||||
| Cooper-Standard Automotive Inc. 8.375% 2014 | 9,275 | 696 | ||||||
Goodyear Tire & Rubber Co. 6.318% 20092 | 3,000 | 2,880 | ||||||
| Burlington Coat Factory Warehouse Corp. 11.125% 2014 | 8,025 | 2,528 | ||||||
| Comcast Corp. 5.50% 2011 | 660 | 670 | ||||||
| Comcast Cable Communications, Inc. 6.75% 2011 | 1,685 | 1,744 | ||||||
| R.H. Donnelley Corp., Series A-1, 6.875% 2013 | 2,425 | 146 | ||||||
| Dex Media, Inc., Series B, 8.00% 2013 | 2,125 | 276 | ||||||
| Dex Media, Inc., Series B, 9.00% 2013 | 9,000 | 1,170 | ||||||
| R.H. Donnelley Corp., Series A-3, 8.875% 2016 | 12,750 | 797 | ||||||
| K. Hovnanian Enterprises, Inc. 6.00% 2010 | 2,500 | 2,150 | ||||||
TRW Automotive Inc. 7.00% 20141 | 4,650 | 1,976 | ||||||
WDAC Intermediate Corp. 8.375% 20141 | 9,870 | 1,283 | ||||||
| WDAC Intermediate Corp. 8.50% 2014 | € | 1,750 | 476 | |||||
Delphi Automotive Systems Corp. 6.50% 200910 | $ | 34,600 | 692 | |||||
Delphi Corp. 6.50% 201310 | 17,190 | 430 | ||||||
Delphi Automotive Systems Corp. 6.55% 200610 | 12,730 | 255 | ||||||
Delphi Automotive Systems Corp. 7.125% 202910 | 14,300 | 286 | ||||||
Delphi Trust I 8.25% 203310 | 4,470 | — | ||||||
Technical Olympic USA, Inc. 9.00% 201010 | 22,486 | 562 | ||||||
Technical Olympic USA, Inc. 9.00% 201010 | 7,325 | 183 | ||||||
Technical Olympic USA, Inc. 9.25% 20111,10 | 36,325 | 908 | ||||||
Carmike Cinemas, Inc., Delayed Draw, Term Loan, 5.19% 20122,3,4 | 1,599 | 1,287 | ||||||
| Wyndham Worldwide Corp. 6.00% 2016 | 2,415 | 1,232 | ||||||
Marks and Spencer Group PLC 7.125% 20371 | 1,480 | 867 | ||||||
| Visteon Corp. 8.25% 2010 | 3,772 | 207 | ||||||
Visteon Corp. 12.25% 20161 | 9,737 | 536 | ||||||
| Idearc Inc. 8.00% 2016 | 13,600 | 425 | ||||||
KAC Acquisition Corp. 8.00% 20261,5,7 | 219 | 219 | ||||||
Young Broadcasting Inc. 10.00% 201110 | 58,845 | 6 | ||||||
Young Broadcasting Inc. 8.75% 201410 | 4,040 | — | ||||||
| 1,633,039 | ||||||||
| TELECOMMUNICATION SERVICES — 11.46% | ||||||||
| Qwest Capital Funding, Inc. 7.00% 2009 | 3,000 | 3,008 | ||||||
| Qwest Capital Funding, Inc. 7.90% 2010 | 23,185 | 22,721 | ||||||
| Qwest Capital Funding, Inc. 7.25% 2011 | 88,150 | 84,624 | ||||||
| Qwest Communications International Inc. 7.25% 2011 | 43,725 | 42,413 | ||||||
| Qwest Corp. 8.875% 2012 | 3,600 | 3,573 | ||||||
| Qwest Capital Funding, Inc. 7.625% 2021 | 1,325 | 947 | ||||||
| Windstream Corp. 8.125% 2013 | 89,875 | 88,976 | ||||||
| Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015 | 31,370 | 30,532 | ||||||
| Windstream Corp. 8.625% 2016 | 15,300 | 15,109 | ||||||
| Windstream Corp. 7.00% 2019 | 2,500 | 2,213 | ||||||
Centennial Communications Corp. 7.185% 20132 | 49,250 | 49,496 | ||||||
| Centennial Communications Corp. 10.00% 2013 | 14,750 | 15,746 | ||||||
| Centennial Communications Corp. and Centennial Cellular Operating Co. LLC 10.125% 2013 | 37,505 | 39,005 | ||||||
| Centennial Communications Corp., Centennial Cellular Operating Co. LLC and | ||||||||
Centennial Puerto Rico Operations Corp. 8.125% 20142 | 24,175 | 25,021 | ||||||
| Sprint Capital Corp. 6.375% 2009 | 2,980 | 2,980 | ||||||
Sprint Nextel Corp. 1.632% 20102 | 5,120 | 4,740 | ||||||
| Nextel Communications, Inc., Series E, 6.875% 2013 | 15,513 | 8,920 | ||||||
| Nextel Communications, Inc., Series F, 5.95% 2014 | 113,790 | 63,722 | ||||||
| Nextel Communications, Inc., Series D, 7.375% 2015 | 74,753 | 39,993 | ||||||
MetroPCS Wireless, Inc., Term Loan B, 3.438% 20132,3,4 | 15,651 | 14,292 | ||||||
| MetroPCS Wireless, Inc. 9.25% 2014 | 65,275 | 63,643 | ||||||
MetroPCS Wireless, Inc. 9.25% 20141 | 30,200 | 29,294 | ||||||
| American Tower Corp. 7.125% 2012 | 56,060 | 56,621 | ||||||
| American Tower Corp. 7.50% 2012 | 14,100 | 14,241 | ||||||
| American Tower Corp. 7.00% 2017 | 34,825 | 34,477 | ||||||
| Cricket Communications, Inc. 9.375% 2014 | 69,105 | 66,168 | ||||||
Digicel Group Ltd. 12.00% 20141 | 36,725 | 34,662 | ||||||
Digicel Group Ltd. 8.875% 20151 | 29,500 | 19,175 | ||||||
| Digicel Group Ltd. 8.875% 2015 | 9,150 | 5,947 | ||||||
| AT&T Inc. 6.70% 2013 | 2,500 | 2,673 | ||||||
| AT&T Inc. 5.80% 2019 | 5,100 | 5,002 | ||||||
| AT&T Inc. 6.40% 2038 | 10,000 | 8,924 | ||||||
| AT&T Inc. 6.55% 2039 | 41,500 | 37,756 | ||||||
| Crown Castle International Corp. 9.00% 2015 | 31,225 | 31,615 | ||||||
Intelsat Jackson Holding Co., Series B, 8.875% 20151 | 10,750 | 10,132 | ||||||
Intelsat, Ltd. 8.875% 20151 | 4,250 | 3,984 | ||||||
Intelsat Jackson Holding Co. 9.50% 20161 | 11,350 | 10,726 | ||||||
Orascom Telecom 7.875% 20141 | 32,780 | 21,143 | ||||||
| Cincinnati Bell Inc. 7.25% 2013 | 21,800 | 20,928 | ||||||
NTELOS Inc., Term Loan B, 2.77% 20112,3,4 | 20,644 | 19,341 | ||||||
| Rogers Wireless Inc. 7.25% 2012 | 6,375 | 6,641 | ||||||
| Rogers Wireless Inc. 7.50% 2015 | 12,025 | 12,478 | ||||||
Verizon Communications Inc. 5.55% 20141 | 2,750 | 2,755 | ||||||
| Verizon Communications Inc. 6.35% 2019 | 2,400 | 2,375 | ||||||
| Verizon Communications Inc. 7.35% 2039 | 14,250 | 13,922 | ||||||
| Millicom International Cellular SA 10.00% 2013 | 10,050 | 9,874 | ||||||
| Telecom Italia Capital SA 7.721% 2038 | 10,000 | 8,339 | ||||||
Nordic Telephone Co. Holding ApS 8.875% 20161 | 7,900 | 7,426 | ||||||
| Citizens Communications Co. 7.875% 2027 | 9,350 | 6,358 | ||||||
Hawaiian Telcom Communications, Inc. 8.765% 20132,10 | 19,715 | 690 | ||||||
Hawaiian Telcom Communications, Inc. 9.75% 201310 | 23,340 | 467 | ||||||
Hawaiian Telcom Communications, Inc., Term Loan C, 4.75% 20142,3,4 | 8,877 | 4,145 | ||||||
Hawaiian Telcom Communications, Inc., Series B, 12.50% 201510 | 8,725 | 87 | ||||||
Trilogy International Partners LLC, Term Loan B, 4.72% 20122,3,4 | 10,475 | 4,452 | ||||||
| América Móvil, SAB de CV 8.46% 2036 | MXN65,000 | 3,587 | ||||||
| Level 3 Financing, Inc. 9.25% 2014 | $ | 4,000 | 2,780 | |||||
| 1,140,859 | ||||||||
| INDUSTRIALS — 8.72% | ||||||||
Nielsen Finance LLC, Term Loan B, 2.533% 20132,3,4 | 47,150 | 36,993 | ||||||
| Nielsen Finance LLC and Nielsen Finance Co. 10.00% 2014 | 92,625 | 80,121 | ||||||
Nielsen Finance LLC and Nielsen Finance Co. 11.625% 20141 | 10,750 | 9,836 | ||||||
Nielsen Finance LLC and Nielsen Finance Co. 0%/12.50% 20166 | 117,250 | 49,245 | ||||||
| Continental Airlines, Inc. 8.75% 2011 | 21,200 | 11,819 | ||||||
Continental Airlines, Inc., Series 2000-2, Class A-2, 7.487% 20123 | 5,000 | 4,500 | ||||||
Continental Airlines, Inc., Series 2000-2, Class C, 8.312% 20123 | 2,628 | 2,083 | ||||||
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20173 | 5,200 | 3,536 | ||||||
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20183 | 6,471 | 4,789 | ||||||
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20183 | 8,856 | 6,288 | ||||||
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20193 | 4,996 | 3,997 | ||||||
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20193 | 2,893 | 2,068 | ||||||
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20203 | 8,885 | 7,641 | ||||||
Continental Airlines, Inc., Series 2003-ERJ3, Class A, 7.875% 20203 | 13,136 | 7,159 | ||||||
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20223 | 2,928 | 2,167 | ||||||
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20223 | 2,716 | 2,010 | ||||||
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20223 | 361 | 278 | ||||||
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20223 | 10,724 | 6,863 | ||||||
ARAMARK Corp., Term Loan B, 3.095% 20142,3,4 | 15,587 | 13,649 | ||||||
ARAMARK Corp., Letter of Credit, 4.721% 20142,3,4 | 990 | 867 | ||||||
ARAMARK Corp. 4.67% 20152 | 16,220 | 12,449 | ||||||
| ARAMARK Corp. 8.50% 2015 | 39,320 | 36,371 | ||||||
United Air Lines, Inc., Series 2000-2, Class B, 7.811% 20113,10 | 17,433 | 18,479 | ||||||
United Air Lines, Inc., Series 2000-2, Class A-2, 7.186% 20123 | 2,965 | 2,876 | ||||||
United Air Lines, Inc., Term Loan B, 2.563% 20142,3,4 | 74,153 | 35,826 | ||||||
United Air Lines, Inc., Series 2001-1, Class A-1, 6.071% 20143 | 254 | 247 | ||||||
United Air Lines, Inc., Series 2001-1, Class A-3, 6.602% 20153 | 215 | 209 | ||||||
United Air Lines, 1991 Equipment Trust Certificates, Series A, 10.11% 20063,7,10 | 1,136 | — | ||||||
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20211,3 | 8,816 | 4,761 | ||||||
| Allied Waste North America, Inc., Series B, 6.50% 2010 | 9,500 | 9,456 | ||||||
| Allied Waste North America, Inc., Series B, 5.75% 2011 | 8,450 | 8,253 | ||||||
| Allied Waste North America, Inc., Series B, 6.125% 2014 | 5,350 | 5,034 | ||||||
| Allied Waste North America, Inc., Series B, 7.375% 2014 | 15,705 | 14,896 | ||||||
| Allied Waste North America, Inc. 6.875% 2017 | 15,800 | 14,400 | ||||||
| DynCorp International and DIV Capital Corp., Series B, 9.50% 2013 | 52,677 | 49,648 | ||||||
Delta Air Lines, Inc., Series 2000-1, Class A-1, 7.379% 20113 | 788 | 741 | ||||||
Delta Air Lines, Inc., Series 2000-1, Class A-2, 7.57% 20123 | 17,018 | 15,401 | ||||||
Delta Air Lines, Inc., Series 2000-1, Class B, 7.92% 20123 | 3,500 | 2,800 | ||||||
Northwest Airlines, Inc., Term Loan B, 4.72% 20132,3,4 | 13,310 | 10,382 | ||||||
Delta Air Lines, Inc., Series 2001-1, Class A-2, 7.111% 20133 | 2,500 | 2,175 | ||||||
Delta Air Lines, Inc., Second Lien Term Loan B, 3.758% 20142,3,4 | 11,790 | 5,443 | ||||||
Northwest Airlines, Inc., Term Loan A, 2.97% 20182,3,4 | 11,176 | 8,382 | ||||||
US Investigations Services, Inc., Term Loan B, 3.977% 20152,3,4 | 10,594 | 8,634 | ||||||
US Investigations Services, Inc. 10.50% 20151 | 34,825 | 26,728 | ||||||
US Investigations Services, Inc. 11.75% 20161 | 12,875 | 9,270 | ||||||
| AMR Corp., Series B, 10.45% 2011 | 1,850 | 856 | ||||||
American Airlines, Inc., Series 2001-1, Class A-2, 6.817% 20123 | 17,375 | 12,336 | ||||||
American Airlines, Inc., Series 2001-2, Class B, 8.608% 20123 | 8,690 | 6,213 | ||||||
| AMR Corp. 9.00% 2012 | 16,155 | 8,320 | ||||||
American Airlines, Inc., Series 2001-2, Class A-2, 7.858% 20133 | 1,300 | 1,048 | ||||||
| AMR Corp. 9.00% 2016 | 1,475 | 627 | ||||||
American Airlines, Inc., Series 2001-1, Class B, 7.377% 20193 | 19,893 | 9,549 | ||||||
AMR Corp. 9.88% 20207 | 1,275 | 561 | ||||||
AMR Corp. 9.80% 20217 | 2,555 | 1,124 | ||||||
AMR Corp. 10.00% 20217 | 9,000 | 3,960 | ||||||
Ashtead Group PLC 8.625% 20151 | 17,750 | 10,206 | ||||||
Ashtead Capital, Inc. 9.00% 20161 | 44,430 | 25,547 | ||||||
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 2.518% 20142,3,4 | 51,415 | 23,622 | ||||||
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 4.10% 20142,3,4 | 2,998 | 1,377 | ||||||
| Hawker Beechcraft Acquisition Co., LLC 8.50% 2015 | 4,975 | 1,294 | ||||||
Hawker Beechcraft Acquisition Co., LLC 8.875% 20155 | 48,710 | 5,723 | ||||||
| Hawker Beechcraft Acquisition Co., LLC 9.75% 2017 | 2,880 | 504 | ||||||
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B1, 4.27% 20142,3,4 | 10,488 | 5,297 | ||||||
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B2, 4.92% 20142,3,4 | 10,313 | 5,208 | ||||||
DAE Aviation Holdings, Inc. 11.25% 20151 | 66,070 | 14,535 | ||||||
| TFM, SA de CV 9.375% 2012 | 17,775 | 16,264 | ||||||
| Kansas City Southern Railway Co. 13.00% 2013 | 4,175 | 4,300 | ||||||
| Kansas City Southern Railway Co. 8.00% 2015 | 3,400 | 2,830 | ||||||
| B/E Aerospace 8.50% 2018 | 24,555 | 20,534 | ||||||
| Navios Maritime Holdings Inc. 9.50% 2014 | 28,775 | 16,589 | ||||||
| RBS Global, Inc. and Rexnord LLC 9.50% 2014 | 11,675 | 9,515 | ||||||
| RBS Global, Inc. and Rexnord LLC 8.875% 2016 | 8,475 | 6,399 | ||||||
| TransDigm Inc. 7.75% 2014 | 11,960 | 11,212 | ||||||
| Iron Mountain Inc. 7.75% 2015 | 11,175 | 11,091 | ||||||
Atrium Companies, Inc., Term Loan B, 12.50% 20122,3,4,5 | 40,448 | 7,820 | ||||||
Atrium Companies, Inc. 15.00% 20121,5 | 41,895 | 1,466 | ||||||
| United Rentals (North America), Inc., Series B, 6.50% 2012 | 10,675 | 8,593 | ||||||
| Esterline Technologies Corp. 6.625% 2017 | 8,250 | 7,425 | ||||||
CEVA Group PLC 10.00% 20141 | 9,675 | 3,749 | ||||||
CEVA Group PLC, Bridge Loan, 6.768% 20152,3,4,7 | 26,763 | 3,479 | ||||||
NTK Holdings Inc. 0%/10.75% 20143,6 | 53,460 | 3,475 | ||||||
| THL Buildco, Inc. 8.50% 2014 | 34,620 | 3,635 | ||||||
RSC Holdings III, LLC, Second Lien Term Loan B, 4.93% 20132,3,4 | 12,141 | 6,420 | ||||||
Esco Corp. 5.195% 20131,2 | 950 | 603 | ||||||
Esco Corp. 8.625% 20131 | 5,600 | 4,284 | ||||||
| H&E Equipment Services, Inc. 8.375% 2016 | 7,375 | 4,683 | ||||||
| Accuride Corp. 8.50% 2015 | 19,230 | 4,183 | ||||||
Sequa Corp., Term Loan B, 3.76% 20142,3,4 | 6,877 | 3,805 | ||||||
| Alion Science and Technology Corp. 10.25% 2015 | 10,350 | 2,588 | ||||||
| RSC Equipment Rental, Inc. and RSC Holdings III, LLC 9.50% 2014 | 5,150 | 2,549 | ||||||
| Park-Ohio Industries, Inc. 8.375% 2014 | 6,225 | 2,397 | ||||||
| FTI Consulting, Inc. 7.625% 2013 | 775 | 785 | ||||||
Quebecor World Inc. 8.75% 20161,10 | 17,615 | 705 | ||||||
| 868,055 | ||||||||
| HEALTH CARE — 8.65% | ||||||||
| Tenet Healthcare Corp. 7.375% 2013 | 25,935 | 20,748 | ||||||
| Tenet Healthcare Corp. 9.875% 2014 | 158,660 | 124,548 | ||||||
Tenet Healthcare Corp. 9.00% 20151 | 1,245 | 1,208 | ||||||
| Tenet Healthcare Corp. 9.25% 2015 | 45,485 | 35,251 | ||||||
Tenet Healthcare Corp. 10.00% 20181 | 4,910 | 4,775 | ||||||
| Tenet Healthcare Corp. 6.875% 2031 | 200 | 100 | ||||||
HealthSouth Corp., Term Loan B, 3.05% 20132,3,4 | 12,764 | 11,303 | ||||||
HealthSouth Corp. 8.323% 20142 | 57,305 | 49,569 | ||||||
| HealthSouth Corp. 10.75% 2016 | 76,190 | 75,047 | ||||||
Elan Finance PLC and Elan Finance Corp. 5.234% 20112 | 14,223 | 11,734 | ||||||
| Elan Finance PLC and Elan Finance Corp. 7.75% 2011 | 5,875 | 4,964 | ||||||
Elan Finance PLC and Elan Finance Corp. 5.386% 20132 | 16,120 | 11,284 | ||||||
| Elan Finance PLC and Elan Finance Corp. 8.875% 2013 | 66,255 | 53,335 | ||||||
VWR Funding, Inc. 10.25% 20152,5 | 117,360 | 80,392 | ||||||
HCA Inc., Term Loan B, 3.47% 20132,3,4 | 66,173 | 56,274 | ||||||
| HCA Inc. 9.125% 2014 | 6,345 | 5,980 | ||||||
| HCA Inc. 9.25% 2016 | 7,700 | 7,026 | ||||||
HCA Inc. 10.375% 20165 | 11,700 | 9,360 | ||||||
| Boston Scientific Corp. 5.45% 2014 | 4,885 | 4,494 | ||||||
| Boston Scientific Corp. 5.125% 2017 | 7,875 | 6,733 | ||||||
| Boston Scientific Corp. 7.00% 2035 | 41,985 | 35,897 | ||||||
Bausch & Lomb Inc. 9.875% 20151 | 53,025 | 42,420 | ||||||
| Warner Chilcott Corp. 8.75% 2015 | 34,724 | 33,509 | ||||||
Mylan Inc., Term Loan B, 4.50% 20142,3,4 | 34,498 | 32,161 | ||||||
Health Management Associates Inc., Term Loan B, 2.97% 20142,3,4 | 32,971 | 26,830 | ||||||
| Health Management Associates, Inc. 6.125% 2016 | 3,000 | 2,468 | ||||||
| Team Finance LLC and Health Finance Corp. 11.25% 2013 | 30,640 | 26,810 | ||||||
Surgical Care Affiliates, Inc. 9.625% 20151,5 | 23,275 | 13,616 | ||||||
Surgical Care Affiliates, Inc. 10.00% 20171 | 17,585 | 9,056 | ||||||
Roche Holdings Inc. 7.00% 20391 | 19,600 | 20,681 | ||||||
PTS Acquisition Corp. 9.50% 20155 | 73,750 | 18,069 | ||||||
Viant Holdings Inc. 10.125% 20171 | 25,974 | 12,857 | ||||||
Symbion Inc. 11.75% 20155 | 22,054 | 8,822 | ||||||
United Surgical Partners International Inc. 9.25% 20175 | 4,000 | 2,780 | ||||||
| Coventry Health Care, Inc. 6.125% 2015 | 1,575 | 1,035 | ||||||
| CHS/Community Health Systems, Inc. 8.875% 2015 | 250 | 238 | ||||||
| 861,374 | ||||||||
| FINANCIALS — 6.91% | ||||||||
| Ford Motor Credit Co. 7.375% 2009 | 4,725 | 4,238 | ||||||
| Ford Motor Credit Co. 8.625% 2010 | 2,405 | 1,916 | ||||||
Ford Motor Credit Co. 9.75% 20102 | 31,000 | 25,510 | ||||||
| Ford Motor Credit Co. 7.25% 2011 | 5,000 | 3,562 | ||||||
| Ford Motor Credit Co. 7.375% 2011 | 6,775 | 5,122 | ||||||
| Ford Motor Credit Co. 9.875% 2011 | 5,000 | 3,787 | ||||||
Ford Motor Credit Co. 4.01% 20122 | 105,860 | 66,824 | ||||||
| Ford Motor Credit Co. 7.80% 2012 | 5,500 | 3,730 | ||||||
| Ford Motor Credit Co. 8.00% 2016 | 9,515 | 6,261 | ||||||
GMAC LLC 2.488% 20092 | 1,300 | 1,237 | ||||||
| General Motors Acceptance Corp. 5.625% 2009 | 33,000 | 31,236 | ||||||
General Motors Acceptance Corp. 7.25% 20111 | 29,783 | 22,061 | ||||||
General Motors Acceptance Corp. 6.625% 20121 | 1,899 | 1,275 | ||||||
General Motors Acceptance Corp. 6.875% 20121 | 7,250 | 4,872 | ||||||
General Motors Acceptance Corp. 7.00% 20121 | 12,062 | 8,336 | ||||||
General Motors Acceptance Corp. 7.50% 20131 | 3,030 | 1,458 | ||||||
General Motors Acceptance Corp. 3.461% 20141,2 | 9,210 | 4,617 | ||||||
General Motors Acceptance Corp. 6.75% 20141 | 2,529 | 1,471 | ||||||
General Motors Acceptance Corp. 8.00% 20181 | 3,269 | 950 | ||||||
CIT Group Inc. 1.394% 20092 | 17,980 | 17,397 | ||||||
| CIT Group Inc. 4.125% 2009 | 12,033 | 10,963 | ||||||
| CIT Group Inc. 6.875% 2009 | 10,015 | 9,131 | ||||||
| CIT Group Inc. 4.25% 2010 | 21,925 | 18,798 | ||||||
| CIT Group Inc. 7.625% 2012 | 16,615 | 12,238 | ||||||
| CIT Group Inc. 7.75% 2012 | 578 | 398 | ||||||
| CIT Group Inc. 5.00% 2014 | 621 | 356 | ||||||
| CIT Group Inc. 5.65% 2017 | 1,024 | 594 | ||||||
CIT Group Inc. 12.00% 20181 | 1,574 | 915 | ||||||
Realogy Corp., Letter of Credit, 3.27% 20132,3,4 | 10,380 | 6,063 | ||||||
Realogy Corp., Term Loan B, 3.518% 20132,3,4 | 43,288 | 25,284 | ||||||
| Realogy Corp. 10.50% 2014 | 124,260 | 35,414 | ||||||
Realogy Corp. 11.75% 20145 | 5,532 | 940 | ||||||
| Realogy Corp. 12.375% 2015 | 9,625 | 1,684 | ||||||
| Countrywide Home Loans, Inc., Series M, 4.125% 2009 | 25,000 | 24,707 | ||||||
| Countrywide Home Loans, Inc., Series K, 5.625% 2009 | 8,122 | 8,075 | ||||||
| Countrywide Financial Corp., Series A, 4.50% 2010 | 4,591 | 4,245 | ||||||
| Countrywide Financial Corp., Series B, 5.80% 2012 | 20,955 | 18,211 | ||||||
| MBNA Capital A, Series A, 8.278% 2026 | 7,500 | 3,221 | ||||||
Liberty Mutual Group Inc., Series A, 7.80% 20871 | 6,260 | 2,387 | ||||||
Liberty Mutual Group Inc., Series C, 10.75% 20881,2 | 59,740 | 29,306 | ||||||
Citigroup Inc. 1.396% 20102 | 4,000 | 3,595 | ||||||
Citigroup Funding Inc., Series D, 2.291% 20102 | 5,280 | 4,741 | ||||||
Citigroup Capital XXI 8.30% 20772 | 36,155 | 17,434 | ||||||
| E*TRADE Financial Corp. 8.00% 2011 | 21,875 | 9,406 | ||||||
| E*TRADE Financial Corp. 7.375% 2013 | 4,375 | 1,619 | ||||||
| E*TRADE Financial Corp. 7.875% 2015 | 23,295 | 8,677 | ||||||
| Lazard Group LLC 7.125% 2015 | 20,314 | 16,899 | ||||||
| Lazard Group LLC 6.85% 2017 | 2,761 | 2,226 | ||||||
Rouse Co. 3.625% 200910 | 12,415 | 3,600 | ||||||
Rouse Co. 7.20% 201210 | 12,145 | 3,522 | ||||||
| Rouse Co. 5.375% 2013 | 22,130 | 6,418 | ||||||
Rouse Co. 6.75% 20131 | 17,950 | 5,206 | ||||||
| SLM Corp., Series A, 5.375% 2013 | 9,000 | 4,942 | ||||||
SLM Corp., Series A, 1.459% 20142 | 7,000 | 3,213 | ||||||
| SLM Corp., Series A, 8.45% 2018 | 10,000 | 5,408 | ||||||
National City Preferred Capital Trust I 12.00% (undated)2 | 19,750 | 13,529 | ||||||
| Simon Property Group, LP 5.25% 2016 | 430 | 321 | ||||||
| Simon Property Group, LP 5.875% 2017 | 5,000 | 3,863 | ||||||
| Simon Property Group, LP 6.125% 2018 | 2,500 | 1,968 | ||||||
| Simon Property Group, LP 10.35% 2019 | 7,350 | 7,154 | ||||||
| ProLogis 5.625% 2016 | 6,464 | 3,235 | ||||||
| ProLogis 6.625% 2018 | 16,681 | 8,467 | ||||||
| Hospitality Properties Trust 6.85% 2012 | 1,000 | 649 | ||||||
| Hospitality Properties Trust 6.75% 2013 | 4,080 | 2,476 | ||||||
| Hospitality Properties Trust 5.125% 2015 | 4,410 | 2,286 | ||||||
| Hospitality Properties Trust 6.30% 2016 | 3,280 | 1,723 | ||||||
| Hospitality Properties Trust 5.625% 2017 | 2,250 | 1,086 | ||||||
| Hospitality Properties Trust 6.70% 2018 | 2,945 | 1,509 | ||||||
Sovereign Bancorp, Inc. 1.457% 20102 | 10,475 | 9,590 | ||||||
| Host Marriott, LP, Series M, 7.00% 2012 | 11,100 | 9,435 | ||||||
| Zions Bancorporation 5.65% 2014 | 10,000 | 7,560 | ||||||
| iStar Financial, Inc. 6.00% 2010 | 7,862 | 4,404 | ||||||
| iStar Financial, Inc. 6.50% 2013 | 5,156 | 1,496 | ||||||
| iStar Financial, Inc. 8.625% 2013 | 5,000 | 1,601 | ||||||
| LaBranche & Co Inc. 11.00% 2012 | 7,750 | 7,023 | ||||||
TuranAlem Finance BV 7.75% 20131,7 | 6,745 | 1,551 | ||||||
| TuranAlem Finance BV 8.50% 2015 | 4,000 | 980 | ||||||
TuranAlem Finance BV 8.50% 20151 | 2,280 | 559 | ||||||
TuranAlem Finance BV 8.25% 20371 | 17,430 | 3,660 | ||||||
MetLife Capital Trust X 9.25% 20681,2 | 12,000 | 6,730 | ||||||
| International Lease Finance Corp., Series R, 6.375% 2013 | 7,900 | 4,369 | ||||||
| International Lease Finance Corp., Series R, 5.65% 2014 | 4,000 | 2,086 | ||||||
HSBK (Europe) BV 7.75% 20131 | 1,200 | 648 | ||||||
HSBK (Europe) BV 7.25% 20171 | 11,640 | 5,645 | ||||||
| HSBC Finance Corp. 5.70% 2011 | 6,250 | 5,308 | ||||||
| JPMorgan Chase Bank NA 6.00% 2017 | 4,818 | 4,524 | ||||||
Lehman Brothers Holdings Inc., Series G, 4.80% 201410 | 5,000 | 663 | ||||||
Lehman Brothers Holdings Inc., Series I, 6.20% 201410 | 4,640 | 615 | ||||||
Lehman Brothers Holdings Inc., Series H, 5.50% 201610 | 360 | 48 | ||||||
Lehman Brothers Holdings Inc., Series I, 6.875% 201810 | 23,000 | 2,875 | ||||||
Westfield Group 5.40% 20121 | 115 | 96 | ||||||
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 5.125% 20141 | 1,200 | 929 | ||||||
Westfield Group 5.70% 20161 | 145 | 108 | ||||||
Westfield Group 7.125% 20181 | 3,540 | 2,770 | ||||||
Catlin Insurance Ltd. 7.249% (undated)1,2 | 14,250 | 3,867 | ||||||
Kazkommerts International BV 8.50% 20131 | 3,500 | 1,715 | ||||||
| Kazkommerts International BV 8.50% 2013 | 1,500 | 735 | ||||||
Kazkommerts International BV 7.875% 20141 | 2,980 | 1,356 | ||||||
| Korea Development Bank 8.00% 2014 | 3,500 | 3,607 | ||||||
Banco Mercantil del Norte, SA 6.135% 20161 | 3,500 | 2,310 | ||||||
Banco Mercantil del Norte, SA 6.862% 20211,2 | 2,000 | 1,064 | ||||||
| Morgan Stanley 10.09% 2017 | BRL10,800 | 2,969 | ||||||
HBOS PLC 6.75% 20181 | $ | 3,300 | 2,550 | |||||
Northern Rock PLC 5.60% (undated)1,2 | 900 | 173 | ||||||
Northern Rock PLC 6.594% (undated)1,2 | 11,400 | 2,195 | ||||||
| UnumProvident Corp. 5.859% 2009 | 2,000 | 1,982 | ||||||
Schwab Capital Trust I 7.50% 20372 | 2,000 | 1,263 | ||||||
| Advanta Capital Trust I, Series B, 8.99% 2026 | 12,000 | 1,155 | ||||||
Barclays Bank PLC 5.926% (undated)1,2 | 3,000 | 1,007 | ||||||
Capmark Financial Group Inc. 3.391% 20102 | 1,555 | 422 | ||||||
| 687,605 | ||||||||
| UTILITIES — 5.11% | ||||||||
| Edison Mission Energy 7.50% 2013 | 53,970 | 42,906 | ||||||
| Edison Mission Energy 7.75% 2016 | 15,125 | 11,571 | ||||||
Midwest Generation, LLC, Series B, 8.56% 20163 | 48,812 | 45,273 | ||||||
| Edison Mission Energy 7.00% 2017 | 26,020 | 19,125 | ||||||
| Edison Mission Energy 7.20% 2019 | 46,450 | 32,515 | ||||||
Homer City Funding LLC 8.734% 20263 | 9,144 | 7,452 | ||||||
| Edison Mission Energy 7.625% 2027 | 44,280 | 26,789 | ||||||
Texas Competitive Electric Holdings Co. LLC, Term Loan B2, 4.033% 20142,3,4 | 15,799 | 10,475 | ||||||
| Texas Competitive Electric Holdings Co. LLC, Series B, 10.25% 2015 | 57,035 | 28,803 | ||||||
| Texas Competitive Electric Holdings Co. LLC, Series A, 10.25% 2015 | 50,900 | 25,704 | ||||||
Texas Competitive Electric Holdings Co. LLC 11.25% 20165 | 35,000 | 13,475 | ||||||
Intergen Power 9.00% 20171 | 74,950 | 68,204 | ||||||
| AES Corp. 9.50% 2009 | 2,638 | 2,648 | ||||||
| AES Corp. 9.375% 2010 | 5,508 | 5,453 | ||||||
| AES Corp. 8.875% 2011 | 8,475 | 8,390 | ||||||
AES Corp. 8.75% 20131 | 18,367 | 18,183 | ||||||
| AES Gener SA 7.50% 2014 | 11,750 | 12,103 | ||||||
| AES Corp. 7.75% 2015 | 2,000 | 1,755 | ||||||
AES Red Oak, LLC, Series A, 8.54% 20193 | 7,104 | 6,500 | ||||||
AES Corp. 8.00% 20201 | 5,375 | 4,381 | ||||||
AES Red Oak, LLC, Series B, 9.20% 20293 | 5,000 | 4,375 | ||||||
| NRG Energy, Inc. 7.25% 2014 | 21,350 | 20,122 | ||||||
| NRG Energy, Inc. 7.375% 2016 | 33,700 | 31,425 | ||||||
| Nevada Power Co., General and Refunding Mortgage Bonds, Series A, 8.25% 2011 | 4,000 | 4,197 | ||||||
| Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series H, 6.25% 2012 | 3,000 | 3,037 | ||||||
| Nevada Power Co., General and Refunding Mortgage Notes, Series I, 6.50% 2012 | 2,650 | 2,693 | ||||||
| Sierra Pacific Resources 8.625% 2014 | 11,075 | 10,494 | ||||||
| Nevada Power Co., General and Refunding Mortgage Notes, Series L, 5.875% 2015 | 2,475 | 2,348 | ||||||
| Nevada Power Co., General and Refunding Mortgage Notes, Series M, 5.95% 2016 | 1,600 | 1,504 | ||||||
| Sierra Pacific Resources 6.75% 2017 | 2,000 | 1,597 | ||||||
ISA Capital do Brasil SA 7.875% 20121 | 2,375 | 2,280 | ||||||
ISA Capital do Brasil SA 8.80% 20171 | 10,800 | 9,720 | ||||||
| National Rural Utilities Cooperative Finance Corp., Collateral Trust Bonds, 10.375% 2018 | 9,325 | 10,813 | ||||||
| Enersis SA 7.375% 2014 | 6,800 | 7,075 | ||||||
FPL Energy National Wind Portfolio, LLC 6.125% 20191,3 | 3,466 | 3,061 | ||||||
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 20171 | 2,000 | 1,812 | ||||||
| 508,258 | ||||||||
| INFORMATION TECHNOLOGY — 4.16% | ||||||||
First Data Corp., Term Loan B2, 3.272% 20142,3,4 | 65,920 | 44,671 | ||||||
First Data Corp. 9.875% 20151 | 49,591 | 29,259 | ||||||
NXP BV and NXP Funding LLC 3.844% 20132 | 93,950 | 16,206 | ||||||
NXP BV and NXP Funding LLC 5.362% 20132 | € | 16,625 | 3,639 | |||||
| NXP BV and NXP Funding LLC 7.875% 2014 | $ | 118,115 | 28,052 | |||||
| NXP BV and NXP Funding LLC 8.625% 2015 | € | 64,225 | 8,095 | |||||
| NXP BV and NXP Funding LLC 9.50% 2015 | $ | 157,190 | 17,684 | |||||
Sanmina-SCI Corp. 4.07% 20101,2 | 2,375 | 2,013 | ||||||
| Sanmina-SCI Corp. 6.75% 2013 | 41,465 | 16,379 | ||||||
Sanmina-SCI Corp. 4.07% 20141,2 | 24,605 | 13,656 | ||||||
| Sanmina-SCI Corp. 8.125% 2016 | 73,832 | 26,210 | ||||||
| Hughes Communications, Inc. 9.50% 2014 | 53,375 | 48,037 | ||||||
Freescale Semiconductor, Inc., Term Loan B, 2.247% 20132,3,4 | 4,830 | 2,024 | ||||||
Freescale Semiconductor, Inc. 5.195% 20142 | 3,000 | 465 | ||||||
| Freescale Semiconductor, Inc. 8.875% 2014 | 11,808 | 2,539 | ||||||
Freescale Semiconductor, Inc., Term Loan B, 12.50% 20143,4 | 72,048 | 38,636 | ||||||
| Freescale Semiconductor, Inc. 10.125% 2016 | 9,738 | 1,802 | ||||||
| SunGard Data Systems Inc. 9.125% 2013 | 43,675 | 38,216 | ||||||
| Jabil Circuit, Inc. 5.875% 2010 | 4,250 | 4,080 | ||||||
| Jabil Circuit, Inc. 8.25% 2018 | 22,415 | 16,811 | ||||||
| Serena Software, Inc. 10.375% 2016 | 24,540 | 14,724 | ||||||
| Ceridian Corp. 11.25% 2015 | 32,925 | 13,993 | ||||||
| Celestica Inc. 7.875% 2011 | 10,525 | 10,314 | ||||||
Sensata Technologies BV, Term Loan B, 2.934% 20132,3,4 | 5,596 | 2,420 | ||||||
Sensata Technologies BV 8.00% 20142 | 20,325 | 6,199 | ||||||
| Xerox Corp. 7.125% 2010 | 3,650 | 3,726 | ||||||
| Xerox Corp. 7.625% 2013 | 5,000 | 4,466 | ||||||
Exodus Communications, Inc. 11.625% 20107,10 | 3,761 | — | ||||||
| 414,316 | ||||||||
| CONSUMER STAPLES — 3.69% | ||||||||
| Stater Bros. Holdings Inc. 8.125% 2012 | 42,605 | 42,179 | ||||||
| Stater Bros. Holdings Inc. 7.75% 2015 | 46,405 | 44,781 | ||||||
SUPERVALU INC., Term Loan B, 1.768% 20122,3,4 | 9,200 | 8,206 | ||||||
| SUPERVALU INC. 7.50% 2012 | 3,860 | 3,812 | ||||||
| Albertson’s, Inc. 7.25% 2013 | 4,990 | 4,865 | ||||||
| SUPERVALU INC. 7.50% 2014 | 1,000 | 981 | ||||||
| Albertson’s, Inc. 8.00% 2031 | 33,900 | 27,883 | ||||||
| Altria Group, Inc. 9.70% 2018 | 8,075 | 8,804 | ||||||
| Altria Group, Inc. 9.25% 2019 | 11,000 | 11,781 | ||||||
| Altria Group, Inc. 10.20% 2039 | 21,000 | 21,503 | ||||||
| Constellation Brands, Inc. 8.375% 2014 | 6,775 | 6,843 | ||||||
| Constellation Brands, Inc. 7.25% 2017 | 31,375 | 29,963 | ||||||
Duane Reade Inc. 5.82% 20102 | 15,170 | 12,212 | ||||||
| Duane Reade Inc. 9.75% 2011 | 32,910 | 18,923 | ||||||
| Dole Food Co., Inc. 7.25% 2010 | 9,400 | 8,695 | ||||||
| Dole Food Co., Inc. 8.875% 2011 | 18,550 | 15,907 | ||||||
Tyson Foods, Inc. 10.50% 20141 | 23,125 | 23,703 | ||||||
Vitamin Shoppe Industries Inc. 8.738% 20122 | 19,535 | 14,676 | ||||||
| Elizabeth Arden, Inc. 7.75% 2014 | 14,273 | 10,205 | ||||||
| Yankee Candle Co., Inc., Series B, 8.50% 2015 | 17,420 | 9,668 | ||||||
| Cott Beverages Inc. 8.00% 2011 | 14,500 | 8,265 | ||||||
| Rite Aid Corp. 8.625% 2015 | 24,500 | 5,635 | ||||||
| Rite Aid Corp. 7.70% 2027 | 7,500 | 1,013 | ||||||
| Rite Aid Corp. 6.875% 2028 | 11,177 | 1,509 | ||||||
| Smithfield Foods, Inc., Series B, 8.00% 2009 | 1,000 | 1,000 | ||||||
| Smithfield Foods, Inc., Series B, 7.75% 2013 | 2,300 | 1,553 | ||||||
| Smithfield Foods, Inc. 7.75% 2017 | 7,850 | 4,906 | ||||||
| JBS SA 10.50% 2016 | 10,295 | 6,820 | ||||||
H.J. Heinz Co. 15.59% 20111,2 | 5,000 | 5,671 | ||||||
Pilgrim’s Pride Corp. 7.625% 201510 | 5,800 | 3,755 | ||||||
Pilgrim’s Pride Corp. 8.375% 201710 | 4,800 | 1,824 | ||||||
CVS Caremark Corp. 6.943% 20301,3 | 254 | 194 | ||||||
| 367,735 | ||||||||
| ENERGY — 3.25% | ||||||||
Williams Companies, Inc. 3.435% 20101,2 | 28,000 | 26,228 | ||||||
Williams Companies, Inc. 6.375% 20101 | 6,000 | 5,906 | ||||||
| Williams Companies, Inc. 8.125% 2012 | 9,800 | 9,996 | ||||||
| Williams Companies, Inc. 7.875% 2021 | 1,650 | 1,529 | ||||||
| Transcontinental Gas Pipe Line Corp. 7.25% 2026 | 6,650 | 6,305 | ||||||
| Williams Companies, Inc. 8.75% 2032 | 18,250 | 16,600 | ||||||
Petroplus Finance Ltd. 6.75% 20141 | 26,450 | 19,705 | ||||||
Petroplus Finance Ltd. 7.00% 20171 | 48,200 | 34,945 | ||||||
Enterprise Products Operating LP 7.034% 20682 | 75,925 | 47,520 | ||||||
Drummond Co., Inc. 7.375% 20161 | 52,730 | 34,538 | ||||||
| Williams Partners L.P. and Williams Partners Finance Corp. 7.50% 2011 | 11,375 | 10,755 | ||||||
| Williams Partners L.P. and Williams Partners Finance Corp. 7.25% 2017 | 21,975 | 18,705 | ||||||
| Pemex Project Funding Master Trust 5.75% 2018 | 5,850 | 4,914 | ||||||
Petroleos Mexicanos 8.00% 20191 | 15,000 | 14,719 | ||||||
| Pemex Project Funding Master Trust 6.625% 2035 | 6,500 | 4,656 | ||||||
Forest Oil Corp. 8.50% 20141 | 11,250 | 10,491 | ||||||
| Forest Oil Corp. 7.25% 2019 | 13,750 | 10,931 | ||||||
Gaz Capital SA 6.51% 20221 | 10,000 | 6,475 | ||||||
Gaz Capital SA 7.288% 20371 | 11,800 | 7,670 | ||||||
TEPPCO Partners LP 7.00% 20672 | 16,665 | 9,554 | ||||||
| Enbridge Inc. 5.60% 2017 | 10,325 | 8,713 | ||||||
| Enbridge Energy Partners, LP, Series B, 7.50% 2038 | 5,010 | 4,004 | ||||||
Enbridge Energy Partners, LP 8.05% 20772 | 7,220 | 3,831 | ||||||
TransCanada PipeLines Ltd. 6.35% 20672 | 7,530 | 4,298 | ||||||
| 322,988 | ||||||||
| MATERIALS — 2.44% | ||||||||
| Nalco Co. 7.75% 2011 | $ | 23,090 | $ | 22,859 | ||||
| Nalco Co. 7.75% 2011 | € | 500 | 630 | |||||
| Nalco Co. 9.00% 2013 | 6,965 | 8,224 | ||||||
| Nalco Finance Holdings LLC and Nalco Finance Holdings Inc. 9.00% 2014 | $ | 8,825 | 7,987 | |||||
| International Paper Co. 7.95% 2018 | 32,130 | 24,525 | ||||||
| International Paper Co. 8.70% 2038 | 5,000 | 3,331 | ||||||
| Freeport-McMoRan Copper & Gold Inc. 6.875% 2014 | 3,000 | 2,943 | ||||||
| Freeport-McMoRan Copper & Gold Inc. 8.25% 2015 | 4,650 | 4,458 | ||||||
| Freeport-McMoRan Copper & Gold Inc. 8.375% 2017 | 10,870 | 10,178 | ||||||
| Rockwood Specialties Group, Inc. 7.50% 2014 | 5,175 | 4,399 | ||||||
| Rockwood Specialties Group, Inc. 7.625% 2014 | € | 12,150 | 12,573 | |||||
| Georgia Gulf Corp. 7.125% 2013 | $ | 20,000 | 3,300 | |||||
| Georgia Gulf Corp. 9.50% 2014 | 77,340 | 13,341 | ||||||
| Associated Materials Inc. 9.75% 2012 | 5,280 | 4,198 | ||||||
| AMH Holdings, Inc. 11.25% 2014 | 29,195 | 8,904 | ||||||
| Georgia-Pacific Corp. 8.125% 2011 | 9,000 | 8,989 | ||||||
Georgia-Pacific Corp., First Lien Term Loan B, 3.293% 20122,3,4 | 3,535 | 3,142 | ||||||
Plastipak Holdings, Inc. 8.50% 20151 | 15,515 | 10,938 | ||||||
| Graphic Packaging International, Inc. 8.50% 2011 | 9,190 | 7,995 | ||||||
| Graphic Packaging International, Inc. 9.50% 2013 | 2,425 | 1,746 | ||||||
FMG Finance Pty Ltd. 10.625% 20161 | 10,100 | 8,534 | ||||||
| Vale Overseas Ltd. 6.25% 2017 | 3,700 | 3,665 | ||||||
| Vale Overseas Ltd. 6.875% 2036 | 4,000 | 3,474 | ||||||
| Domtar Corp. 5.375% 2013 | 4,575 | 3,088 | ||||||
| Domtar Corp. 7.125% 2015 | 5,640 | 3,807 | ||||||
| AEP Industries Inc. 7.875% 2013 | 11,490 | 6,722 | ||||||
Metals USA Holdings Corp. 8.209% 20122,5 | 19,306 | 4,634 | ||||||
| Metals USA, Inc. 11.125% 2015 | 1,750 | 1,059 | ||||||
Jefferson Smurfit Corp. (U.S.) 8.25% 201210 | 17,610 | 2,289 | ||||||
Stone Container Corp. 8.375% 201210 | 4,370 | 574 | ||||||
Jefferson Smurfit Corp. (U.S.) 7.50% 201310 | 12,550 | 1,537 | ||||||
Smurfit-Stone Container Enterprises, Inc. 8.00% 201710 | 8,310 | 1,039 | ||||||
| Allegheny Technologies, Inc. 8.375% 2011 | 5,000 | 4,870 | ||||||
| Boise Cascade, LLC and Boise Cascade Finance Corp. 7.125% 2014 | 11,225 | 4,658 | ||||||
| Neenah Paper, Inc. 7.375% 2014 | 12,385 | 4,644 | ||||||
| Airgas, Inc. 6.25% 2014 | 3,500 | 3,360 | ||||||
Airgas, Inc. 7.125% 20181 | 650 | 627 | ||||||
| Owens-Illinois, Inc. 7.50% 2010 | 2,000 | 2,030 | ||||||
| Owens-Brockway Glass Container Inc. 8.25% 2013 | 1,400 | 1,414 | ||||||
| Owens-Brockway Glass Container Inc. 6.75% 2014 | € | 375 | 458 | |||||
Algoma Steel Inc., Term Loan B, 3.02% 20132,3,4,7 | $ | 6,329 | 3,418 | |||||
| Smurfit Capital Funding PLC 7.50% 2025 | 4,310 | 2,457 | ||||||
C10 Capital (SPV) Ltd. 6.722% (undated)1,2 | 6,850 | 2,402 | ||||||
| NewPage Corp., Series B, 10.00% 2012 | 4,250 | 1,498 | ||||||
| NewPage Corp., Series A, 12.00% 2013 | 2,720 | 585 | ||||||
MacDermid 9.50% 20171 | 4,905 | 1,717 | ||||||
| Exopack Holding Corp. 11.25% 2014 | 3,650 | 1,679 | ||||||
| Norampac Inc. 6.75% 2013 | 3,500 | 1,575 | ||||||
| Momentive Performance Materials Inc. 9.75% 2014 | 2,500 | 750 | ||||||
| 243,224 | ||||||||
| Total corporate bonds, notes & loans | 7,047,453 | |||||||
| BONDS & NOTES OF GOVERNMENTS & GOVERNMENT AGENCIES OUTSIDE THE U.S. — 3.08% | ||||||||
Brazilian Treasury Bill 6.00% 20107,11 | BRL89,653 | $ | 38,931 | |||||
Brazil (Federal Republic of) 10.00% 20177 | 13,000 | 5,038 | ||||||
Brazil (Federal Republic of) Global 8.00% 20183 | $ | 10,245 | 11,229 | |||||
| Brazil (Federal Republic of) Global 10.25% 2028 | BRL15,000 | 5,992 | ||||||
| Brazil (Federal Republic of) Global 7.125% 2037 | $ | 2,500 | 2,519 | |||||
| Brazil (Federal Republic of) Global 11.00% 2040 | 12,485 | 15,918 | ||||||
Brazilian Treasury Bill 6.00% 20457,11 | BRL17,803 | 6,788 | ||||||
| Turkey (Republic of) 15.00% 2010 | TRY16,262 | 10,011 | ||||||
| Turkey (Republic of) 14.00% 2011 | 30,550 | 18,466 | ||||||
| Turkey (Republic of) 16.00% 2012 | 16,000 | 9,876 | ||||||
| Turkey (Republic of) 7.50% 2017 | $ | 3,500 | 3,465 | |||||
| Turkey (Republic of) 6.75% 2018 | 3,250 | 3,014 | ||||||
| Colombia (Republic of) Global 11.75% 2010 | COP3,295,000 | 1,338 | ||||||
| Colombia (Republic of) Global 10.00% 2012 | $ | 1,500 | 1,721 | |||||
| Colombia (Republic of) Global 10.75% 2013 | 8,550 | 10,149 | ||||||
| Colombia (Republic of) Global 8.25% 2014 | 4,000 | 4,460 | ||||||
| Colombia (Republic of) Global 12.00% 2015 | COP17,130,000 | 7,560 | ||||||
| Colombia (Republic of) Global 11.75% 2020 | $ | 1,936 | 2,424 | |||||
| Colombia (Republic of) Global 9.85% 2027 | COP12,085,000 | 4,705 | ||||||
| Colombia (Republic of) Global 10.375% 2033 | $ | 823 | 975 | |||||
| Colombia (Republic of) Global 7.375% 2037 | 4,139 | 3,715 | ||||||
| Panama (Republic of) Global 7.125% 2026 | 585 | 556 | ||||||
| Panama (Republic of) Global 8.875% 2027 | 6,500 | 6,988 | ||||||
Panama (Republic of) Global 6.70% 20363 | 27,674 | 24,422 | ||||||
| United Mexican States Government, Series M10, 10.50% 2011 | MXN12,320 | 967 | ||||||
| United Mexican States Government Global 6.375% 2013 | $ | 6,970 | 7,388 | |||||
United Mexican States Government 5.00% 20167,11 | MXN62,658 | 4,872 | ||||||
| United Mexican States Government, Series M20, 10.00% 2024 | 80,000 | 6,632 | ||||||
| United Mexican States Government Global 6.75% 2034 | $ | 6,105 | 5,780 | |||||
| Russian Federation 12.75% 2028 | 2,000 | 2,650 | ||||||
Russian Federation 7.50% 20303 | 22,910 | 21,650 | ||||||
| Egypt (Arab Republic of) 9.10% 2010 | EGP50,497 | 8,903 | ||||||
| Egypt (Arab Republic of) 9.10% 2010 | 3,130 | 551 | ||||||
| Egypt (Arab Republic of) 11.50% 2011 | 9,380 | 1,724 | ||||||
| Egypt (Arab Republic of) 9.10% 2012 | 18,225 | 3,143 | ||||||
| Egypt (Arab Republic of) 11.625% 2014 | 49,265 | 9,245 | ||||||
| Venezuela (Republic of) 10.75% 2013 | $ | 6,000 | 4,365 | |||||
| Venezuela (Republic of) Global 8.50% 2014 | 1,250 | 775 | ||||||
| Venezuela (Republic of) 7.65% 2025 | 8,455 | 3,826 | ||||||
Indonesia (Republic of) 6.875% 20171 | 1,000 | 840 | ||||||
Indonesia (Republic of) 6.875% 20181 | 3,725 | 3,017 | ||||||
Indonesia (Republic of) 6.625% 20371 | 2,500 | 1,713 | ||||||
Dominican Republic 9.50% 20113 | 2,813 | 2,630 | ||||||
Dominican Republic 9.50% 20111,3 | 1,718 | 1,607 | ||||||
Argentina (Republic of) 5.83% 20333,5,7,11 | ARS 12,368 | 657 | ||||||
| Argentina (Republic of) GDP-Linked 2035 | 128,645 | 1,367 | ||||||
| Argentina (Republic of) GDP-Linked 2035 | $ | 12,377 | 344 | |||||
Argentina (Republic of) 0.63% 20383,7,11 | ARS174,183 | 1,295 | ||||||
Uruguay (Republic of) 4.25% 20273,7,11 | UYU143,405 | 3,171 | ||||||
| Peru (Republic of) 7.125% 2019 | $ | 2,945 | 3,014 | |||||
| Corporación Andina de Fomento 5.75% 2017 | 3,000 | 2,508 | ||||||
| Thai Government 4.125% 2009 | THB73,490 | 2,113 | ||||||
| 307,007 | ||||||||
MORTGAGE-BACKED OBLIGATIONS3 — 2.21% | ||||||||
American Tower Trust I, Series 2007-1A, Class E, 6.249% 20371 | $ | 10,725 | $ | 8,419 | ||||
American Tower Trust I, Series 2007-1A, Class F, 6.639% 20371 | 38,760 | 29,845 | ||||||
Crown Castle Towers LLC, Series 2006-1, Class F, 6.650% 20361 | 30,490 | 25,612 | ||||||
Crown Castle Towers LLC, Series 2006-1, Class G, 6.795% 20361 | 12,250 | 10,045 | ||||||
American Home Mortgage Investment Trust, Series 2005-4, Class V-A, 5.35% 20452 | 62,271 | 29,836 | ||||||
SBA CMBS Trust, Series 2006-1A, Class F, 6.709% 20361 | 1,450 | 1,261 | ||||||
SBA CMBS Trust, Series 2006-1A, Class G, 6.904% 20361 | 5,950 | 5,117 | ||||||
SBA CMBS Trust, Series 2006-1A, Class H, 7.389% 20361 | 11,615 | 9,989 | ||||||
SBA CMBS Trust, Series 2006-1A, Class J, 7.825% 20361 | 12,950 | 11,137 | ||||||
| Countrywide Alternative Loan Trust, Series 2005-64CB, Class 2-A-1, 6.00% 2035 | 26,638 | 13,882 | ||||||
Countrywide Alternative Loan Trust, Series 2006-29T1, Class 3-A-2, 0.772% 20362 | 13,806 | 4,240 | ||||||
Countrywide Alternative Loan Trust, Series 2007-14T2, Class A-4, 0.872% 20372 | 7,806 | 2,972 | ||||||
| Countrywide Alternative Loan Trust, Series 2007-7T2, Class A-27, 6.00% 2037 | 3,567 | 2,021 | ||||||
Tower Ventures, LLC, Series 2006-1, Class E, 6.495% 20361 | 4,000 | 3,660 | ||||||
Tower Ventures, LLC, Series 2006-1, Class F, 7.036% 20361 | 20,405 | 18,670 | ||||||
Residential Accredit Loans, Inc., Series 2006-QS1, Class A-5, 1.432% 20362 | 48,987 | 16,040 | ||||||
WaMu Mortgage Pass-Through Certificates Trust, Series 2007-HY3, Class 4-A1, 5.334% 20372 | 27,658 | 15,111 | ||||||
| Wells Fargo Mortgage-backed Securities Trust, Series 2007-11, Class A-96, 6.00% 2037 | 9,110 | 6,028 | ||||||
| Citigroup Mortgage Loan Trust, Inc., Series 2007-9, Class 2-A-1, 6.50% 2037 | 8,925 | 5,969 | ||||||
| 219,854 | ||||||||
| U.S. TREASURY BONDS & NOTES — 0.28% | ||||||||
| U.S. Treasury 6.00% 2026 | 21,000 | 27,694 | ||||||
ASSET-BACKED OBLIGATIONS3 — 0.12% | ||||||||
Discover Card Master Trust I, Series 2007-3, Class B, Subseries 2, 0.736% 20142 | 10,158 | 5,708 | ||||||
Green Tree Financial Corp., Series 2008-MH1, Class A-3, 8.97% 20381 | 5,484 | 4,363 | ||||||
CWHEQ Revolving Home Equity Loan Trust, Series 2006-I, Class 2-A, FSA insured, 0.696% 20372 | 4,320 | 1,615 | ||||||
| 11,686 | ||||||||
| Total bonds, notes & other debt instruments (cost: $11,261,109,000) | 7,613,694 | |||||||
| Shares or | ||||||||
| Convertible securities — 0.95% | principal amount | |||||||
| INFORMATION TECHNOLOGY — 0.64% | ||||||||
| Linear Technology Corp., Series A, 3.00% convertible notes 2027 | $ | 61,000,000 | 50,782 | |||||
| Advanced Micro Devices, Inc. 6.00% convertible notes 2015 | $ | 18,000,000 | 6,818 | |||||
| Advanced Micro Devices, Inc. 5.75% convertible notes 2012 | $ | 13,900,000 | 6,220 | |||||
| 63,820 | ||||||||
| HEALTH CARE — 0.15% | ||||||||
| Schering-Plough Corp., 6.00% convertible preferred 2010 | 68,000 | 14,314 | ||||||
| FINANCIALS — 0.11% | ||||||||
Citigroup Inc., Series J-1, 7.00% noncumulative convertible preferred7,12 | 150,000 | 4,963 | ||||||
| Boston Properties, Inc. 2.875% convertible notes 2037 | $ | 4,000,000 | 3,135 | |||||
| Equity Residential 3.85% convertible notes 2026 | $ | 3,500,000 | 3,111 | |||||
| Fannie Mae, Series 2004-1, 5.375% convertible preferred | 118 | 41 | ||||||
| 11,250 | ||||||||
| INDUSTRIALS — 0.05% | ||||||||
| UAL Corp. 4.50% convertible notes 2021 | $ | 14,500,000 | 4,791 | |||||
| Total convertible securities (cost: $113,426,000) | 94,175 | |||||||
| Value | ||||||||
| Preferred securities — 0.79% | Shares | (000 | ) | |||||
| FINANCIALS — 0.79% | ||||||||
Bank of America Corp., Series K, 8.00% noncumulative2 | 22,818,000 | $ | 9,148 | |||||
BAC Capital Trust XIII 1.72%2 | 47,200,000 | 8,943 | ||||||
Bank of America Corp., Series M, 8.125% noncumulative2 | 17,190,000 | 7,071 | ||||||
Swire Pacific Capital Ltd. 8.84% cumulative guaranteed perpetual capital securities1 | 1,125,000 | 21,445 | ||||||
JPMorgan Chase & Co., Series I, 7.90%2 | 23,448,000 | 15,099 | ||||||
Citigroup Inc., Series E, 8.40%2 | 7,520,000 | 4,259 | ||||||
Shinsei Finance II (Cayman) Ltd. 7.16% noncumulative1,2 | 17,900,000 | 3,983 | ||||||
General Motors Corp. 9.00%1 | 13,748 | 2,738 | ||||||
SMFG Preferred Capital USD 1 Ltd. 6.078%1,2 | 2,770,000 | 1,709 | ||||||
SMFG Preferred Capital USD 3 Ltd. 9.50%1,2 | 315,000 | 255 | ||||||
RBS Capital Trust IV 2.02% noncumulative trust2 | 4,000,000 | 1,403 | ||||||
ILFC E-Capital Trust II 6.25%1,2 | 8,000,000 | 1,284 | ||||||
Fannie Mae, Series O, 7.00%1,2 | 607,282 | 577 | ||||||
Mizuho Capital Investment (USD) 1 Ltd. 6.686% noncumulative1,2 | 764,000 | 454 | ||||||
| Freddie Mac, Series Z, 8.375% | 320,000 | 174 | ||||||
IndyMac Bancorp, Inc., Series A, 8.50% noncumulative1 | 2,406,000 | 24 | ||||||
| Total preferred securities (cost: $189,495,000) | 78,566 | |||||||
| Common stocks — 0.94% | ||||||||
| TELECOMMUNICATION SERVICES — 0.46% | ||||||||
| AT&T Inc. | 1,000,000 | 25,200 | ||||||
American Tower Corp., Class A12 | 538,967 | 16,401 | ||||||
Sprint Nextel Corp., Series 112 | 777,508 | 2,775 | ||||||
| Embarq Corp. | 38,875 | 1,471 | ||||||
Cincinnati Bell Inc.12 | 70,740 | 163 | ||||||
XO Holdings, Inc.12 | 25,291 | 5 | ||||||
| 46,015 | ||||||||
| INDUSTRIALS — 0.21% | ||||||||
Delta Air Lines, Inc.12 | 2,300,858 | 12,954 | ||||||
DigitalGlobe Inc.7,9,12 | 3,064,647 | 7,662 | ||||||
UAL Corp.12 | 22,911 | 102 | ||||||
| 20,718 | ||||||||
| INFORMATION TECHNOLOGY — 0.09% | ||||||||
Micron Technology, Inc.1,12 | 678,656 | 2,756 | ||||||
Micron Technology, Inc.12 | 424,160 | 1,722 | ||||||
ZiLOG, Inc.8,12 | 1,140,500 | 2,680 | ||||||
Fairchild Semiconductor International, Inc.12 | 500,000 | 1,865 | ||||||
HSW International, Inc.7,9,12 | 257,091 | 30 | ||||||
| 9,053 | ||||||||
| CONSUMER DISCRETIONARY — 0.08% | ||||||||
Ford Motor Co.12 | 1,877,140 | 4,937 | ||||||
| Time Warner Cable Inc. | 125,429 | 3,111 | ||||||
Adelphia Recovery Trust, Series Arahova7,12 | 1,773,964 | 160 | ||||||
Adelphia Recovery Trust, Series ACC-112 | 16,413,965 | 107 | ||||||
Adelphia Recovery Trust, Series ACC-6B7,12 | 3,619,600 | 22 | ||||||
| CBS Corp., Class B | 31,612 | 121 | ||||||
Emmis Communications Corp., Class A12 | 201,000 | 78 | ||||||
Radio One, Inc., Class D, nonvoting12 | 44,000 | 20 | ||||||
Radio One, Inc., Class A12 | 22,000 | 12 | ||||||
Mobile Travel Guide, Inc.7,9,12 | 83,780 | 14 | ||||||
American Media Operations, Inc.1,7,8,12 | 823,270 | 8 | ||||||
| 8,590 | ||||||||
| HEALTH CARE — 0.08% | ||||||||
| UnitedHealth Group Inc. | 375,000 | 7,848 | ||||||
Clarent Hospital Corp.7,8,12 | 576,849 | 29 | ||||||
| 7,877 | ||||||||
| CONSUMER STAPLES — 0.02% | ||||||||
Winn-Dixie Stores, Inc.12 | 194,677 | 1,861 | ||||||
| Total common stocks (cost: $214,501,000) | 94,114 | |||||||
| Warrants — 0.00% | ||||||||
| TELECOMMUNICATION SERVICES — 0.00% | ||||||||
XO Holdings, Inc., Series A, warrants, expire 201012 | 50,587 | — | ||||||
XO Holdings, Inc., Series B, warrants, expire 20107,12 | 37,939 | — | ||||||
XO Holdings, Inc., Series C, warrants, expire 201012 | 37,939 | — | ||||||
GT Group Telecom Inc., warrants, expire 20101,7,12 | 11,000 | — | ||||||
| — | ||||||||
| INDUSTRIALS — 0.00% | ||||||||
Atrium Corp., warrants, expire 20181,7,12 | 21,012 | — | ||||||
| Total warrants (cost: $571,000) | — | |||||||
| Principal amount | ||||||||
| Short-term securities — 18.58% | (000 | ) | ||||||
| U.S. Treasury Bills 0.16%–1.09% due 4/9–9/10/2009 | $ | 394,400 | 394,198 | |||||
| Federal Home Loan Bank 0.19%–2.35% due 4/3–7/13/2009 | 321,550 | 321,437 | ||||||
| Freddie Mac 0.19%–0.50% due 4/27–6/29/2009 | 226,200 | 226,064 | ||||||
| Bank of America Corp., FDIC insured, 0.40% due 4/24/2009 | 75,000 | 74,974 | ||||||
Enterprise Funding Co. LLC 0.41%–0.45% due 4/14–4/21/20091 | 70,196 | 70,165 | ||||||
Ranger Funding Co. LLC 0.40%–0.47% due 4/2–4/21/20091 | 76,500 | 76,489 | ||||||
| General Electric Capital Corp., FDIC insured, 0.40%–0.50% due 4/29–6/24/2009 | 93,800 | 93,749 | ||||||
| General Electric Capital Corp. 0.08% due 4/1/2009 | 25,500 | 25,500 | ||||||
Hewlett-Packard Co. 0.25%–0.42% due 4/2–5/5/20091 | 86,500 | 86,472 | ||||||
| Fannie Mae 0.30%–0.43% due 4/15–7/1/2009 | 85,000 | 84,959 | ||||||
Procter & Gamble International Funding S.C.A. 0.35%–0.40% due 4/14–5/28/20091 | 62,000 | 61,972 | ||||||
United Parcel Service Inc. 0.23%–0.32% due 6/1–6/12/20091 | 53,100 | 53,073 | ||||||
Private Export Funding Corp. 0.47%–0.50% due 6/8–6/23/20091 | 50,000 | 49,932 | ||||||
Coca-Cola Co. 0.35% due 5/6–5/7/20091 | 44,100 | 44,078 | ||||||
NetJets Inc. 0.35% due 4/24/20091 | 41,500 | 41,476 | ||||||
Park Avenue Receivables Co., LLC 0.40%–0.50% due 4/2–5/19/20091 | 36,500 | 36,484 | ||||||
Ciesco LLC 0.40% due 4/14/20091 | 35,000 | 34,986 | ||||||
| Merck & Co. Inc. 0.35% due 6/26/2009 | 30,000 | 29,980 | ||||||
Wal-Mart Stores Inc. 0.25% due 6/16/20091 | 23,400 | 23,386 | ||||||
Caterpillar Inc. 0.30% due 4/3/20091 | 20,000 | 19,999 | ||||||
| Total short-term securities (cost: $1,849,314,000) | 1,849,373 | |||||||
| Total investment securities (cost: $13,628,416,000) | 9,729,922 | |||||||
| Other assets less liabilities | 225,412 | |||||||
| Net assets | $ | 9,955,334 | ||||||
| 1 | Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,959,897,000, which represented 19.69% 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 $683,080,000, which represented 6.86% 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 | Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $155,802,000, which represented 1.57% of the net assets of the fund. |
| 8 | Represents an affiliated company as defined under the Investment Company Act of 1940. |
| 9 | Purchased in a transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below. |
Acquisition date(s) | Cost (000) | Value (000) | Percent of net assets | ||||||||||
| Gray Television Inc., Series D, 15.00% (undated) | 6/26/2008–7/15/2008 | $ | 61,275 | $ | 7,939 | .08 | % | ||||||
| DigitalGlobe Inc. | 4/14/1999–7/31/2003 | 2,500 | 7,662 | .08 | |||||||||
| HSW International, Inc. | 12/17/2007 | 791 | 30 | — | |||||||||
| Mobil Travel Guide, Inc. | 12/17/2007 | 21 | 14 | — | |||||||||
| Total restricted securities | $ | 64,587 | $ | 15,645 | .16 | % | |||||||
| 10 | Scheduled interest and/or principal payment was not received. |
| 11 | Index-linked bond whose principal amount moves with a government retail price index. |
| 12 | Security did not produce income during the last 12 months. |
Key to abbreviations and symbols
ARS = Argentine pesos
BRL = Brazilian reais
COP = Colombian pesos
EGP = Egyptian pounds
€ = Euros
£ = British pounds
MXN = Mexican pesos
THB = Thai baht
TRY = New Turkish liras
UYU = Uruguayan pesos
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus, which can be obtained from a financial professional and should be read carefully before investing.
MFGEFP-921-0509O-S15791
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 10 – Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of trustees since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of trustees. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
ITEM 11 – Controls and Procedures
| (a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
| (b) | There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12 – Exhibits
| (a)(1) | Not applicable for filing of semi-annual reports to shareholders. |
| (a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| AMERICAN HIGH-INCOME TRUST | |
By /s/ David C. Barclay | |
David C. Barclay, President and Principal Executive Officer | |
| Date: June 8, 2009 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By /s/ David C. Barclay |
David C. Barclay, President and Principal Executive Officer |
| Date: June 8, 2009 |
By /s/ Ari M. Vinocor |
Ari M. Vinocor, Treasurer and Principal Financial Officer |
| Date: June 8, 2009 |