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, 2010
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
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 – Reports to Stockholders
American High-Income Trust
[photo of the side of a glass paneled building]
Semi-annual report for the six months ended March 31, 2010
American High-Income TrustSM seeks a high level of current income and, secondarily, capital appreciation through a diversified, carefully supervised portfolio consisting primarily of lower rated, higher risk corporate bonds.
This fund is one of the 30 American Funds. American Funds is one of the nation’s largest mutual fund families. For 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, so they may lose value. For current information and month-end results, visit americanfunds.com.
Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2010:
Class A shares | 1 year | 5 years | 10 years | |||||||||
Reflecting 3.75% maximum sales charge | 46.39 | % | 5.42 | % | 6.35 | % |
The total annual fund operating expense ratio was 0.80% for Class A shares as of September 30, 2009.
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. See the Financial Highlights table on pages 28 to 31 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. Bond ratings, which typically range from AAA (highest) to D (lowest), are generally issued by independent rating agencies and are designed to provide an indication of an issuer’s creditworthiness. If ratings are not available, they are assigned by the fund’s investment adviser. Investing in bonds issued outside the U.S. may be subject to additional risks. They include curr ency fluctuations, political and social instability, differing securities regulations and accounting standards, higher transaction costs, possible changes in taxation; illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
Fellow shareholders:
[photo of the side of a glass paneled building]
A combination of factors, including an improving economy, low interest rates and increased liquidity in the financial markets, helped high-yield bond markets continue to recover throughout the first half of fiscal 2010.
A combination of factors, including an improving economy, low interest rates and increased liquidity in the financial markets, helped high-yield bond markets continue to recover throughout the first half of fiscal 2010.
In this environment, American High-Income Trust reported a total return of 10.4% for the six-month period ending March 31, 2010, assuming the reinvestment of monthly dividends totaling about 39 cents a share. Shareholders who reinvested dividends received an income return of 3.9% for the period.
By comparison, the Lipper High Current Yield Funds Index, a benchmark of similar funds, posted a 10.8% total return, and the Credit Suisse High Yield Index, which attempts to mirror the high-yield debt markets, reported an 11.0% 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 increase by 6.4% and received an income return of 3.8% for the period.
[Begin Sidebar]
Results at a glance | ||||||||||||||||||||
For periods ended March 31, 2010, 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) | 10.4 | % | 52.0 | % | 6.2 | % | 6.8 | % | 8.5 | % | ||||||||||
Lipper High Current Yield | ||||||||||||||||||||
Funds Index* | 10.8 | 51.2 | 5.5 | 4.8 | 6.9 | |||||||||||||||
Credit Suisse High Yield Index† | 11.0 | 52.3 | 7.2 | 7.7 | 8.7 | |||||||||||||||
Citigroup Broad Investment-Grade | ||||||||||||||||||||
(BIG) Bond Index† | 1.6 | 6.4 | 5.7 | 6.4 | 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]
A return to normality
Financial markets and high-yield valuations continued to rebound in the first six months of fiscal 2010. The confluence of modest economic growth, favorable monetary policy, subdued inflation and improved credit quality boosted investor confidence and increased the demand for higher yielding assets. The result: High-yield issuance soared to new highs in the last three months of the period.
Also propelling demand was the Federal Reserve’s massive mortgage-buying program, which came to an end on March 31. By buying $1.25 trillion of debt and mortgage-backed securities issued by housing-related government-sponsored entities Fannie Mae and Freddie Mac, the Fed absorbed a large amount of assets in fixed-income markets. With yields on cash investments, such as money market funds, certificates of deposit and Treasuries at record lows, investors in search of income flocked to riskier, higher yielding investments, such as corporate bonds.
At the same time, companies were taking advantage of low borrowing costs to refinance their existing debt and manage their balance sheets with a more conservative long-term horizon. That is a significant shift from just a few years earlier, when companies sought out high-yield debt to finance acquisitions, leveraged buyouts and capital expenditures. The recent wave of refinancing has helped a host of companies to reduce leverage, lower debt burdens and extend their debt maturities. This has been a positive trend in the market, resulting in declining default rates and credit upgrades throughout the sector.
Looking ahead
As the second half of the fiscal year begins, the economy continues to improve and demand for high-yield bonds remains strong. We expect a modest economic recovery to continue, with constructive fiscal and government policies in place, but we remain cautious. Because it has been a sluggish, somewhat fragile recovery without much job creation, vulnerabilities still exist. Potential headwinds could include a sustained rise in interest rates and excessive fiscal deficits in governments around the world, which could raise financing costs and reduce liquidity in the system. In addition, it is unlikely that the opportunities created by the Fed’s mortgage-buying program, which indirectly encouraged investors to put their money in corporate bonds, will happen again anytime soon.
Considering the potential impact of these headwinds and the fact that high-yield valuations are more in line with historical norms, we are expecting more modest returns going forward. As a result, our portfolios are becoming slightly more conservative.
American High-Income Trust’s portfolio counselors and analysts take a long-term view in finding holdings for the portfolio. We rely on intensive research to look beyond short-term cycles to find the issuers that we believe will be able to weather difficult environments and thrive in a variety of business and market cycles.
Managing expectations
As high-yield bond valuations have increased, the average yield on high-yield bonds has declined. In a low-yielding environment, however, high-yield bonds still provide a high source of income relative to other types of assets. For investors with a long-term investment perspective, high yield can be an important part of their income-generating assets.
To help manage expectations going forward, it’s helpful to consider results over longer periods that encompass a variety of market cycles. For the past 10-year period ended March 31, 2010, the fund’s shareholders earned an average annual total return of 6.8%, with dividends reinvested. That compares with a 4.8% average annual total return for the Lipper High Current Yield Funds Index and a 7.7% return for the Credit Suisse High Yield Index for that same period.
As always, we appreciate your continued support and long-term investment perspective.
Sincerely,
/s/ Paul G. Haaga, Jr.
Paul G. Haaga, Jr.
Vice Chairman
/s/ David C. Barclay
David C. Barclay
President
May 13, 2010
For current information about the fund, visit americanfunds.com.
The fund’s 30-day yield for Class A shares as of April 30, 2010, calculated in accordance with the Securities and Exchange Commission formula, was 6.59%. The fund’s distribution rate for Class A shares as of that date was 6.89%. 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.
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, 2010: | ||||||||||||
10 years1/ | ||||||||||||
1 year | 5 years | Life of class | ||||||||||
Class B shares2 | ||||||||||||
Reflecting applicable contingent deferred sales charge | ||||||||||||
(CDSC), maximum of 5%, payable only if shares are | ||||||||||||
sold within six years of purchase | 45.88 | % | 5.14 | % | 6.12 | % | ||||||
Not reflecting CDSC | 50.88 | 5.43 | 6.12 | |||||||||
Class C shares — first sold 3/15/01 | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
if shares are sold within one year of purchase | 49.81 | 5.39 | 6.22 | |||||||||
Not reflecting CDSC | 50.81 | 5.39 | 6.22 | |||||||||
Class F-1 shares3 — first sold 3/15/01 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | 51.96 | 6.20 | 7.02 | |||||||||
Class F-2 shares3 — first sold 8/4/08 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | 52.34 | — | 9.66 | |||||||||
Class 529-A shares4 — first sold 2/19/02 | ||||||||||||
Reflecting 3.75% maximum sales charge | 46.31 | 5.36 | 7.40 | |||||||||
Not reflecting maximum sales charge | 51.93 | 6.18 | 7.90 | |||||||||
Class 529-B shares2,4 — first sold 2/25/02 | ||||||||||||
Reflecting applicable CDSC, maximum of 5%, payable | ||||||||||||
only if shares are sold within six years of purchase | 45.73 | 5.01 | 7.18 | |||||||||
Not reflecting CDSC | 50.73 | 5.31 | 7.18 | |||||||||
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 | 49.74 | 5.32 | 7.02 | |||||||||
Not reflecting CDSC | 50.74 | 5.32 | 7.02 | |||||||||
Class 529-E shares3,4 — first sold 3/15/02 | 51.50 | 5.86 | 7.33 | |||||||||
Class 529-F-1 shares3,4 — first sold 9/16/02 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | 52.24 | 6.38 | 9.85 |
1Applicable to Class B shares only. All other share classes reflect results for the life of the class. |
2These shares are not available for purchase. |
3These shares are sold without any initial or contingent deferred sales charge. |
4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee. |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. 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. See the Financial Highlights table on pages 28 to 31 for details that include expense ratios for all share classes.
For information regarding the differences among the various share classes, refer to the fund’s prospectus.
Summary investment portfolio, March 31, 2010
unaudited
The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
[begin pie chart]
Portfolio by type of security (percent of net assets) | ||||
U.S. corporate bonds & notes | 63.4 | % | ||
Corporate bonds & notes of issuers outside the U.S. | 14.3 | |||
Corporate loans | 7.4 | |||
Bonds & notes of governments & government agencies outside the U.S. | 3.1 | |||
Other | 1.5 | |||
Common stocks & warrants | 2.2 | |||
Convertible securities | 1.2 | |||
Preferred securities | 1.5 | |||
Short-term securities & other assets less liabilities | 5.4 |
[end pie chart]
Principal | Percent | ||
amount | Value | of net | |
Bonds, notes & other debt instruments - 89.72% | (000) | (000) | assets |
Corporate bonds, notes & loans - 85.09% | |||
Consumer discretionary - 21.34% | |||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.00%-10.875% 2012-2014 (1) | $ 115,350 | $ 123,300 | |
Charter Communications, Inc. 13.50% 2016 (1) | 46,188 | 55,310 | |
CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013 | 53,690 | 55,301 | |
Charter Communications Operating, LLC, Term Loans, 2.30-7.25% 2014 (2) (3) (4) | 41,604 | 41,351 | 1.72% |
Univision Communications Inc.: | |||
First Lien Term Loan B, 2.54% 2014 (2) (3) (4) | 114,170 | 102,092 | |
10.50% 2015 (1) (2) (5) | 166,962 | 144,840 | |
12.00% 2014 (1) | 20,310 | 22,341 | 1.68 |
Virgin Media Finance PLC, Series 1, 9.50% 2016 | 99,825 | 109,558 | |
Virgin Media Finance PLC 8.75% 2014 (3) | € 1,114 | 1,560 | |
Virgin Media Finance PLC 9.75% 2014 (3) | £ 631 | 1,003 | |
Virgin Media Finance PLC 8.375-9.125% 2014-2019 (1) | $ 107,047 | 111,736 | |
Virgin Media Inc. 6.50% 2018 (1) | 7,325 | 7,380 | 1.44 |
Michaels Stores, Inc.: | |||
10.00% 2014 | 135,520 | 143,651 | |
0%-11.375% 2016 (6) | 23,170 | 24,716 | |
Term Loans, 2.563%-4.813% 2013-2016 (2) (3) (4) | 25,086 | 24,069 | 1.20 |
Allison Transmission Holdings, Inc. 11.25% 2015 (1) (2) (5) | 75,319 | 80,780 | .50 |
Neiman Marcus Group, Inc. 9.00% 2015 (2) (5) | 72,815 | 74,635 | .47 |
AMC Entertainment Inc. 8.75% 2019 | 68,675 | 72,452 | .45 |
Other securities | 2,228,386 | 13.88 | |
3,424,461 | 21.34 | ||
Telecommunication services - 11.56% | |||
Cricket Communications, Inc.: | |||
9.375% 2014 | 176,520 | 180,492 | |
7.75% 2016 | 150,395 | 156,787 | |
10.00% 2015 | 5,000 | 5,225 | 2.13 |
Nextel Communications, Inc.: | |||
Series F, 5.95% 2014 | 144,965 | 135,905 | |
Series D, 7.375% 2015 | 132,623 | 126,655 | |
Series E, 6.875% 2013 | 28,013 | 27,453 | |
Sprint Capital Corp. 6.90%-8.75% 2011-2032 | 39,550 | 40,322 | |
Sprint Nextel Corp. 0.688% 2010 (2) | 5,120 | 5,102 | 2.09 |
MetroPCS Wireless, Inc.: | |||
9.25% 2014 | 118,100 | 121,348 | |
9.25% 2014 | 83,170 | 85,041 | 1.29 |
Wind Acquisition SA 11.75% 2017 (1) | 98,100 | 108,891 | .68 |
Windstream Corp. 8.125% 2013 | 85,325 | 89,805 | .56 |
Clearwire Communications LLC/Finance 12.00% 2015 (1) | 77,975 | 79,924 | .50 |
Digicel Group Ltd. 12.00% 2014 (1) | 61,825 | 70,480 | .44 |
Sorenson Communications 10.50% 2015 (1) | 69,425 | 67,342 | .42 |
Other securities | 554,369 | 3.45 | |
1,855,141 | 11.56 | ||
Industrials - 10.68% | |||
Nielsen Finance LLC and Nielsen Finance Co.: | |||
10.00% 2014 | 97,500 | 102,619 | |
11.50% 2016 | 60,950 | 69,178 | |
0%/12.50% 2016 (6) | 149,450 | 142,725 | |
11.625% 2014 | 17,400 | 19,749 | |
Nielsen Finance LLC, Term Loans, 2.229%-8.50% 2013-2017 (2) (3) (4) (10) | 42,242 | 41,686 | 2.34 |
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 2.29% 2014 (2) (3) (4) | 95,497 | 80,597 | .50 |
TransDigm Inc. 7.75% 2014 (1) | 66,045 | 67,861 | .42 |
Other securities | 1,188,725 | 7.42 | |
1,713,140 | 10.68 | ||
Financials - 10.46% | |||
CIT Group Inc.: | |||
Series A, 7.00% 2013 | 95,189 | 93,285 | |
Series A, 7.00% 2015 | 108,848 | 101,773 | |
7.00% 2014-2016 | 69,266 | 65,059 | |
Term Loans, 9.50%-13.00% 2012 (2) (3) (4) | 62,550 | 64,751 | 2.02 |
Realogy Corp.: | |||
Term Loan B, 3.251% 2013 (2) (3) (4) | 97,890 | 86,671 | |
Term Loans, 3.231%-13.50% 2013-2017 (2) (3) (4) | 97,370 | 98,248 | 1.15 |
International Lease Finance Corp., 4.75%-8.625% 2011-2015 (1) | 164,251 | 163,713 | 1.02 |
Other securities | 1,005,719 | 6.27 | |
1,679,219 | 10.46 | ||
Information technology - 9.48% | |||
NXP BV and NXP Funding LLC: | |||
3.001% 2013 (2) | 79,290 | 74,632 | |
10.00% 2013 (7) | 77,049 | 82,443 | |
7.875% 2014 | 111,615 | 109,383 | |
9.50% 2015 | 120,215 | 119,313 | |
3.434%-8.625% 2013-2015 (2) | € 97,478 | 123,008 | 3.17 |
Freescale Semiconductor, Inc.: | |||
9.875% 2014 (2) (5) | $ 128,242 | 123,754 | |
8.875% 2014 | 123,053 | 118,131 | |
10.125% 2016 | 92,042 | 81,917 | |
Term Loan B, 12.50% 2014 (3) (4) | 66,993 | 69,142 | |
Term Loan, 4.479% 2016 (2) (3) (4) | 24,129 | 22,722 | |
4.132%-10.125% 2014-2018 (1) (2) | 58,250 | 61,393 | 2.97 |
First Data Corp.: | |||
Term Loan B2, 3.032% 2014 (2) (3) (4) | 79,108 | 70,125 | |
9.875%-10.55% 2015 (5) | 129,661 | 111,644 | 1.13 |
Sanmina-SCI Corp.: | |||
8.125% 2016 | 87,207 | 88,188 | |
3.007%-6.75% 2013-2014 (1) (2) | 73,855 | 72,643 | 1.00 |
Other securities | 193,261 | 1.21 | |
1,521,699 | 9.48 | ||
Health care - 7.38% | |||
Tenet Healthcare Corp.: | |||
7.375% 2013 | 69,485 | 70,527 | |
8.875% 2019 (1) | 122,475 | 133,192 | |
9.00%-9.25% 2015 (1) | 41,230 | 43,482 | 1.54 |
Elan Finance PLC and Elan Finance Corp.: | |||
8.875% 2013 | 70,975 | 73,459 | |
8.75% 2016 (1) | 73,230 | 72,864 | |
4.25%-4.377% 2011-2013 (2) | 56,587 | 54,550 | 1.25 |
VWR Funding, Inc. 10.25% 2015 (2) (5) | 129,968 | 138,416 | .86 |
PTS Acquisition Corp. 10.25% 2015 (2) (5) | 92,683 | 91,525 | .57 |
HealthSouth Corp. 10.75% 2016 | 76,190 | 82,761 | .52 |
Other securities | 422,669 | 2.64 | |
1,183,445 | 7.38 | ||
Materials - 4.56% | |||
Georgia Gulf Corp. 9.00% 2017 (1) (8) | 83,285 | 87,553 | |
Georgia Gulf Corp. 10.75% 2016 (8) | 5,388 | 5,361 | .58 |
Other securities | 639,339 | 3.98 | |
732,253 | 4.56 | ||
Utilities - 3.95% | |||
Edison Mission Energy 7.00%-7.75% 2013-2027 | 189,075 | 137,713 | |
Midwest Generation, LLC, Series B, 8.56% 2016 (3) | 44,531 | 45,591 | |
Homer City Funding LLC 8.734% 2026 (3) | 9,065 | 8,748 | 1.20 |
Intergen Power 9.00% 2017 (1) | 71,950 | 74,468 | .46 |
Other securities | 367,952 | 2.29 | |
634,472 | 3.95 | ||
Consumer staples - 3.56% | |||
Other securities | 571,210 | 3.56 | |
Energy - 2.12% | |||
Other securities | 340,313 | 2.12 | |
Total corporate bonds, notes & loans | 13,655,353 | 85.09 | |
Bonds & notes of governments & government agencies outside the U.S. - 3.08% | |||
Other securities | 494,013 | 3.08 | |
Mortgage-backed obligations - 1.16% | |||
Other securities | 185,843 | 1.16 | |
Other - 0.39% | |||
U.S. Treasury 1.375%-6.00% 2012-2026 | 51,000 | 55,054 | .34 |
Other securities | 8,665 | .05 | |
63,719 | .39 | ||
Total bonds, notes & other debt instruments (cost: $13,566,573,000) | 14,398,928 | 89.72 | |
Convertible securities - 1.19% | |||
Other - 1.19% | |||
Advanced Micro Devices, Inc. 6.00% convertible notes 2015 | 68,742 | 66,250 | .41 |
Other securities | 125,341 | .78 | |
Total convertible securities (cost: $163,820,000) | 191,591 | 1.19 | |
Preferred securities - 1.54% | Shares | ||
Other - 1.54% | |||
ILFC E-Capital Trust II 6.25% (1) (2) | 2,970,000 | 2,317 | .02 |
Other securities | 244,098 | 1.52 | |
Total preferred securities (cost: $227,117,000) | 246,415 | 1.54 | |
Common stocks - 2.20% | |||
Other - 2.20% | |||
Georgia Gulf Corp. (8) (9) | 4,809,206 | 88,922 | .55 |
CIT Group Inc. (9) | 124,904 | 4,866 | .03 |
Sprint Nextel Corp., Series 1 (9) | 777,508 | 2,955 | .02 |
Charter Communications, Inc., Class A (9) | 39,810 | 1,373 | .01 |
Other securities | 254,446 | 1.59 | |
Total common stocks (cost: $324,033,000) | 352,562 | 2.20 | |
Warrants - 0.00% | |||
Other - 0.00% | |||
Charter Communications, Inc., warrants, expire 2014 (9) | 13,390 | 80 | .00 |
Other securities | 580 | .00 | |
Total warrants (cost: $295,000) | 660 | .00 | |
Principal | |||
amount | |||
Short-term securities - 4.04% | (000) | ||
Freddie Mac 0.14%-0.24% due 4/19-8/10/2010 | $ 163,540 | 163,502 | 1.02 |
Fannie Mae 0.17%-0.54% due 5/24-12/3/2010 | 114,200 | 114,095 | .71 |
U.S. Treasury Bills 0.22%-0.34% due 5/6-7/15/2010 | 104,700 | 104,663 | .65 |
Coca-Cola Co. 0.22% due 5/12-5/13/2010 (1) | 81,500 | 81,486 | .51 |
Federal Home Loan Bank 0.05%-0.178% due 4/21-6/23/2010 | 69,800 | 69,784 | .43 |
Other securities | 115,176 | .72 | |
Total short-term securities (cost: $648,585,000) | 648,706 | 4.04 | |
Total investment securities (cost: $14,930,423,000) | 15,838,862 | 98.69 | |
Other assets less liabilities | 209,270 | 1.31 | |
Net assets | $16,048,132 | 100.00% |
"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio. |
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. The value of the fund's affiliated-company holdings is either shown in the summary investment portfolio or included in the value of "Other securities" under the respective industry sectors. Further details on such holdings and related transactions during the six months ended March 31, 2010, appear on the following page. |
Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Dividend or interest income (000) | Value of affiliates at 3/31/10 (000) | |||||||||||||||||||
Georgia Gulf Corp. (9) | 4,809,206 | 205,412 | 205,412 | 4,809,206 | $ | - | $ | 88,922 | ||||||||||||||||
Georgia Gulf Corp. 9.00% 2017 (1) | $ | - | $ | 83,285,000 | $ | - | $ | 83,285,000 | 2,061 | 87,553 | ||||||||||||||
Georgia Gulf Corp. 10.75% 2016 | $ | - | $ | 5,388,000 | $ | - | $ | 5,388,000 | 32 | 5,361 | ||||||||||||||
Georgie Gulf Corp., Term Loan, Revolver (funded), 6.50% 2011 | $ | 25,640,000 | $ | - | $ | 25,640,000 | $ | - | 146 | - | ||||||||||||||
Georgia Gulf Corp., Term Loan B, 10.00% 2013 | $ | 19,496,523 | $ | - | $ | 19,496,523 | $ | - | 257 | - | ||||||||||||||
Nortek, Inc. 11.00% 2013 | $ | - | $ | 54,889,079 | $ | - | $ | 54,889,079 | 1,278 | 59,143 | ||||||||||||||
Nortek, Inc. (9) | - | 793,647 | - | 793,647 | - | 32,540 | ||||||||||||||||||
American Media Operations, Inc. 14.00% 2013 (1) (2) (5) | $ | 44,909,399 | $ | 3,143,657 | $ | 5,350,000 | $ | 42,703,056 | 4,318 | 28,024 | ||||||||||||||
American Media Operations, Inc. 9.00% 2013 (1) (5) | $ | 3,249,793 | $ | 146,240 | $ | - | $ | 3,396,033 | 261 | 2,225 | ||||||||||||||
American Media Operations, Inc. (1) (9) (10) | 823,272 | - | - | 823,272 | - | 8 | ||||||||||||||||||
Clarent Hospital Corp. Liquidating Trust (9) (10) | 576,849 | - | - | 576,849 | - | 23 | ||||||||||||||||||
ZiLOG, Inc. (11) | 1,140,500 | - | 1,140,500 | - | - | - | ||||||||||||||||||
$ | 8,353 | $ | 303,799 |
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 $3,984,246,000, which represented 24.83% 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 $1,183,268,000, which represented 7.37% 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) Purchased in a transaction exempt from registration under the Securities Act of 1933. This security (acquired 7/17/2009 at a cost of $62,348,000) may be subject to legal or contractual restrictions on resale. The total value of all such securities, including those in "Other securities," was $137,289,000, which represented .86% of the net assets of the fund. |
(8) Represents an affiliated company as defined under the Investment Company Act of 1940. |
(9) Security did not produce income during the last 12 months. |
(10) 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 $138,363,000, which represented .86% of the net assets of the fund. |
(11) Unaffiliated issuer at 3/31/2010. |
Key to symbols |
€ = Euros |
£ = British pounds |
See Notes to Financial Statements |
Financial statements
Statement of assets and liabilities | unaudited | |||||||
at March 31, 2010 | (dollars in thousands) | |||||||
Assets: | ||||||||
Investment securities, at value: | ||||||||
Unaffiliated issuers (cost: $14,634,352) | $ | 15,535,063 | ||||||
Affiliated issuers (cost: $296,071) | 303,799 | $ | 15,838,862 | |||||
Cash | 513 | |||||||
Unrealized appreciation on open forward currency contracts | 312 | |||||||
Receivables for: | ||||||||
Sales of investments | 75,671 | |||||||
Sales of fund's shares | 36,606 | |||||||
Interest | 307,868 | 420,145 | ||||||
16,259,832 | ||||||||
Liabilities: | ||||||||
Unrealized depreciation on open forward currency contracts | 40 | |||||||
Payables for: | ||||||||
Purchases of investments | 153,677 | |||||||
Repurchases of fund's shares | 33,871 | |||||||
Dividends on fund's shares | 13,071 | |||||||
Investment advisory services | 4,273 | |||||||
Services provided by affiliates | 6,329 | |||||||
Trustees' deferred compensation | 163 | |||||||
Other | 276 | 211,660 | ||||||
Net assets at March 31, 2010 | $ | 16,048,132 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of beneficial interest | $ | 16,742,975 | ||||||
Undistributed net investment income | 41,415 | |||||||
Accumulated net realized loss | (1,644,744 | ) | ||||||
Net unrealized appreciation | 908,486 | |||||||
Net assets at March 31, 2010 | $ | 16,048,132 |
(dollars and shares in thousands, except per-share amounts) | ||||||||||||
Shares of beneficial interest issued and outstanding (no stated par value) - unlimited shares authorized (1,465,201 total shares outstanding) | ||||||||||||
Net assets | Shares outstanding | Net asset value per share* | ||||||||||
Class A | $ | 11,035,425 | 1,007,538 | $ | 10.95 | |||||||
Class B | 510,718 | 46,629 | 10.95 | |||||||||
Class C | 1,300,387 | 118,726 | 10.95 | |||||||||
Class F-1 | 1,503,926 | 137,309 | 10.95 | |||||||||
Class F-2 | 383,922 | 35,052 | 10.95 | |||||||||
Class 529-A | 201,116 | 18,362 | 10.95 | |||||||||
Class 529-B | 23,342 | 2,131 | 10.95 | |||||||||
Class 529-C | 79,864 | 7,292 | 10.95 | |||||||||
Class 529-E | 10,951 | 1,000 | 10.95 | |||||||||
Class 529-F-1 | 9,238 | 843 | 10.95 | |||||||||
Class R-1 | 19,973 | 1,824 | 10.95 | |||||||||
Class R-2 | 193,535 | 17,670 | 10.95 | |||||||||
Class R-3 | 289,126 | 26,397 | 10.95 | |||||||||
Class R-4 | 191,861 | 17,517 | 10.95 | |||||||||
Class R-5 | 202,892 | 18,524 | 10.95 | |||||||||
Class R-6 | 91,856 | 8,387 | 10.95 | |||||||||
(*) 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 $11.38 each. | ||||||||||||
See Notes to Financial Statements |
Statement of operations | unaudited | |||||||
for the six months ended March 31, 2010 | (dollars in thousands) | |||||||
Investment income: | ||||||||
Income: | ||||||||
Interest (net of non-U.S. taxes of $10; also includes $8,353 from affiliates) | $ | 683,349 | ||||||
Dividends | 3,897 | $ | 687,246 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 24,852 | |||||||
Distribution services | 24,761 | |||||||
Transfer agent services | 6,298 | |||||||
Administrative services | 3,681 | |||||||
Reports to shareholders | 495 | |||||||
Registration statement and prospectus | 1,081 | |||||||
Trustees' compensation | 73 | |||||||
Auditing and legal | 72 | |||||||
Custodian | 155 | |||||||
State and local taxes | 150 | |||||||
Other | 418 | |||||||
Total fees and expenses before reimbursements | 62,036 | |||||||
Less reimbursements of fees and expenses | 80 | |||||||
Total fees and expenses after reimbursements | 61,956 | |||||||
Net investment income | 625,290 | |||||||
Net realized gain and unrealized appreciation on investments, forward currency contracts and currency: | ||||||||
Net realized gain on: | ||||||||
Investments (net of non-U.S. taxes of $189; also includes $5,275 net loss from affiliates) | 84,874 | |||||||
Forward currency contracts | 3 | |||||||
Currency transactions | 635 | 85,512 | ||||||
Net unrealized appreciation (depreciation) on: | ||||||||
Investments | 827,479 | |||||||
Forward currency contracts | 394 | |||||||
Currency translations | (747 | ) | 827,126 | |||||
Net realized gain and unrealized appreciation on investments, forward currency contracts and currency | 912,638 | |||||||
Net increase in net assets resulting from operations | $ | 1,537,928 | ||||||
(*) 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, 2010* | Year ended September 30, 2009 | |||||||
Operations: | ||||||||
Net investment income | $ | 625,290 | $ | 1,051,541 | ||||
Net realized gain (loss) on investments, forward currency contracts and currency transactions | 85,512 | (1,497,602 | ) | |||||
Net unrealized appreciation on investments, forward currency contracts and currency translations | 827,126 | 2,454,776 | ||||||
Net increase in net assets resulting from operations | 1,537,928 | 2,008,715 | ||||||
Dividends paid to shareholders from net investment income | (567,537 | ) | (1,103,307 | ) | ||||
Net capital share transactions | 56,985 | 2,587,103 | ||||||
Total increase in net assets | 1,027,376 | 3,492,511 | ||||||
Net assets: | ||||||||
Beginning of period | 15,020,756 | 11,528,245 | ||||||
End of period (including undistributed and distributions in excess of net investment income: $41,415 and $(16,338), | ||||||||
respectively) | $ | 16,048,132 | $ | 15,020,756 | ||||
*Unaudited. | ||||||||
See Notes to Financial Statements |
Notes to financial statements
unaudited
1. | 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.
On November 24, 2009, shareholders approved a proposal to reorganize the fund from a Massachusetts business trust to a Delaware statutory trust. The reorganization may be completed in 2010 or early 2011; however, the fund reserves the right to delay the implementation. Shareholders also approved amendments to the fund’s Investment Advisory and Service Agreement and amendments to and elimination of certain fundamental investment policies of the fund.
The fund has 16 share classes consisting of five retail share classes, five 529 college savings plan share classes and six 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 six retirement plan share classes (R-1, R-2, R-3, R-4, R-5 and R-6) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:
Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
Classes A and 529-A | Up to 3.75% | None (except 1% for certain redemptions within one year of purchase without an initial sales charge) | None |
Classes B and 529-B* | None | Declines from 5% to 0% for redemptions within six years of purchase | Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years |
Class C | None | 1% for redemptions within one year of purchase | Class C converts to Class F-1 after 10 years |
Class 529-C | None | 1% for redemptions within one year of purchase | None |
Class 529-E | None | None | None |
Classes F-1, F-2 and 529-F-1 | None | None | None |
Classes R-1, R-2, R-3, R-4, R-5 and R-6 | None | None | None |
*Class B and 529-B shares of the fund are not available for purchase.
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
2. | Significant accounting policies |
The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and or iginal 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 dep reciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
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.
Some of the loan assignments or participations acquired by the fund may involve unfunded commitments, such as revolving credit facilities under which a borrower may borrow and repay amounts up to the maximum amount of the facility. In such cases, the fund is obligated to deliver its portion of such additional borrowings based upon the terms specified in the loan agreement. As of March 31, 2010, the fund had unfunded loan commitments of $40,389,000, which represented 0.25% of the net assets of the fund. Unrealized depreciation of $28,000 is included in other payables in the statement of assets and liabilities and net unrealized appreciation on investments in the statement of operations.
3. | Valuation |
The fund’s investments are reported at fair value as defined by accounting principles generally accepted in the United States of America. The fund generally determines its net asset value as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Methods and inputs – The fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades.
Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained as of approximately 3:00 p.m. New York time from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
Municipal securities | Standard inputs and, for certain distressed securities, cash flows or liquidation values using a net present value calculation based on inputs that include, but are not limited to, financial statements and debt contracts |
Where the investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days 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 guidelines adopted by authority of the fund's board of trustees. Various inputs may be reviewed in order to make a good faith determination of a security’s fair value. These inputs 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. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Classifications - The fund classifies its assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuati on levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of March 31, 2010 (dollars in thousands):
Investment securities: | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Bonds, notes & other debt instruments: | ||||||||||||||||
Corporate bonds, notes & loans | $ | - | $ | 13,573,926 | $ | 81,427 | $ | 13,655,353 | ||||||||
Bonds & notes of governments & government agencies outside the U.S. | - | 494,013 | - | 494,013 | ||||||||||||
Mortgage-backed obligations | - | 185,843 | - | 185,843 | ||||||||||||
Other | - | 63,719 | - | 63,719 | ||||||||||||
Convertible securities | - | 191,591 | - | 191,591 | ||||||||||||
Preferred securities | 3,964 | 187,626 | 54,825 | 246,415 | ||||||||||||
Common stocks | 319,923 | 32,540 | 99 | 352,562 | ||||||||||||
Warrants | 660 | - | - | 660 | ||||||||||||
Short-term securities | - | 648,706 | - | 648,706 | ||||||||||||
Total | $ | 324,547 | $ | 15,377,964 | $ | 136,351 | $ | 15,838,862 | ||||||||
Forward currency contracts (1): | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Unrealized appreciation on open forward currency contracts | $ | - | $ | 312 | $ | - | $ | 312 | ||||||||
Unrealized depreciation on open forward currency contracts | - | (40 | ) | - | (40 | ) | ||||||||||
Total | $ | - | $ | 272 | $ | - | $ | 272 |
The following table reconciles the valuation of the fund's Level 3 investment securities and related transactions for the six months ended March 31, 2010 (dollars in thousands): | ||||||||||||||||||||||||
Beginning value at 10/1/2009 | Net purchases and sales | Net realized loss(2) | Net unrealized appreciation(2) | Net transfers into Level 3(3) | Ending value at 3/31/2010 | |||||||||||||||||||
Investment securities | $ | 102,205 | $ | 3,101 | $ | (571 | ) | $ | 30,430 | $ | 1,186 | $ | 136,351 | |||||||||||
Net unrealized appreciation during the period on Level 3 investment securities held at March 31, 2010 (dollars in thousands) (2): | $ | 29,624 | ||||||||||||||||||||||
(1) Forward currency contracts are not included in the investment portfolio. | ||||||||||||||||||||||||
(2) Net realized loss and unrealized appreciation are included in the related amounts on investments in the statement of operations. | ||||||||||||||||||||||||
(3) Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred. |
4. | Risk factors |
Investing in the fund may involve certain risks including, but not limited to, those described below.
Lower rated debt securities generally have higher rates of interest and involve greater risk of default or price changes due to changes in the issuer’s creditworthiness than higher rated debt securities. The market prices of these securities may fluctuate more than higher quality securities and may decline significantly in periods of general economic difficulty. 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, 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 prices 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 m ake timely payments of principal or interest and the security will go into default. Longer maturity debt securities generally have higher rates of interest and may be subject to greater price fluctuations than shorter maturity debt securities.
The prices of, and the income generated by, the securities held by the fund may decline in response to certain events taking place around the world, including those directly involving the issuers whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations. Investments in securities issued by entities based outside the U.S. may be subject to the risks described above to a greater extent. These investments may also be affected by currency controls; different accounting, auditing, financial reporting, dis closure, and regulatory and legal standards and practices; expropriation; changes in tax policy; greater market volatility; different securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payment of dividends. These risks may be heightened in connection with investments in developing countries. Investments in securities issued by entities domiciled in the U.S. may also be subject to many of these risks.
5. | Taxation and distributions |
Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended March 31, 2010, 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 2005, by state tax authorities for tax years before 2004 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.
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 different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold; paydowns on fixed-income securities; net capital losses; amortization of premiums; and inco me 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, 2009, the components of distributable earnings on a tax basis were as follows:
(dollars in thousands) | ||||
Undistributed ordinary income | $ | 43,455 | ||
Post-October currency loss deferrals (realized during the period November 1, 2008, through September 30, 2009)* | (14,028 | ) | ||
Capital loss carryforward expiring 2017† | (407,267 | ) | ||
Post-October capital loss deferrals (realized during the period November 1, 2008, through September 30, 2009)* | (1,259,044 | ) | ||
*These deferrals are considered incurred in the subsequent year. | ||||
†The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
As of March 31, 2010, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:
(dollars in thousands) | ||||
Gross unrealized appreciation on investment securities | $ | 1,260,352 | ||
Gross unrealized depreciation on investment securities | (462,479 | ) | ||
Net unrealized appreciation on investment securities | 797,873 | |||
Cost of investment securities | 15,040,989 |
Ordinary income distributions paid or accrued to shareholders from net investment income was as follows (dollars in thousands):
Share class | Six months March 31, 2010 | Year ended September 30, 2009 | ||||||
Class A | $ | 395,834 | $ | 773,043 | ||||
Class B | 17,748 | 43,681 | ||||||
Class C | 41,522 | 78,706 | ||||||
Class F-1 | 55,009 | 112,760 | ||||||
Class F-2 | 12,899 | 13,372 | ||||||
Class 529-A | 6,791 | 12,208 | ||||||
Class 529-B | 744 | 1,579 | ||||||
Class 529-C | 2,412 | 4,466 | ||||||
Class 529-E | 362 | 670 | ||||||
Class 529-F-1 | 321 | 552 | ||||||
Class R-1 | 617 | 1,104 | ||||||
Class R-2 | 5,982 | 11,518 | ||||||
Class R-3 | 9,978 | 18,748 | ||||||
Class R-4 | 6,580 | 12,118 | ||||||
Class R-5 | 7,802 | 17,558 | ||||||
Class R-6* | 2,936 | 1,224 | ||||||
Total | $ | 567,537 | $ | 1,103,307 | ||||
*Class R-6 was offered beginning May 1, 2009. |
6. | Fees and transactions with related parties |
Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares, and American Funds Service Company® ("AFS"), the fund’s transfer agent.
Investment advisory services - The 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. For the six months en ded March 31, 2010, the investment advisory services fee was $24,852,000, which was equivalent to an annualized rate of 0.323% 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, R-5 and R-6. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
For Classes A and 529-A, 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, 2010, 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 as 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 and 0.05% for Class R-6) 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, 2010, the total administrative services fees paid by CRMC were $80,000 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 calen dar 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 on the previous page for the six months ended March 31, 2010, 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 | $11,672 | $5,995 | Not applicable | Not applicable | Not applicable |
Class B | 2,636 | 303 | Not applicable | Not applicable | Not applicable |
Class C | 6,232 | Included in administrative services | $894 | $140 | Not applicable |
Class F-1 | 1,836 | 995 | 99 | Not applicable | |
Class F-2 | Not applicable | 220 | 16 | Not applicable | |
Class 529-A | 197 | 76 | 15 | $92 | |
Class 529-B | 112 | 9 | 4 | 11 | |
Class 529-C | 363 | 30 | 11 | 37 | |
Class 529-E | 25 | 4 | 1 | 4 | |
Class 529-F-1 | - | 4 | 1 | 5 | |
Class R-1 | 93 | 9 | 8 | Not applicable | |
Class R-2 | 673 | 133 | 320 | Not applicable | |
Class R-3 | 701 | 197 | 91 | Not applicable | |
Class R-4 | 221 | 126 | 10 | Not applicable | |
Class R-5 | Not applicable | 94 | 6 | Not applicable | |
Class R-6 | Not applicable | 19 | -* | Not applicable | |
Total | $24,761 | $6,298 | $2,810 | $722 | $149 |
*Amount less than one thousand.
Trustees’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, trustees who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Trustees’ compensation of $73,000, shown on the accompanying financial statements, inc ludes $62,000 in current fees (either paid in cash or deferred) and a net increase of $11,000 in the value of the deferred amounts.
Affiliated officers and trustees – Officers and certain trustees of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or trustees received any compensation directly from the fund.
7. | Capital share transactions |
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Share class | Sales(*) | Reinvestments of dividends | Repurchases(*) | Net increase (decrease) | ||||||||||||||||||||||||||||
Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | |||||||||||||||||||||||||
Six months ended March 31, 2010 | ||||||||||||||||||||||||||||||||
Class A | $ | 1,161,961 | 109,807 | $ | 331,074 | 31,222 | $ | (1,399,048 | ) | (132,326 | ) | $ | 93,987 | 8,703 | ||||||||||||||||||
Class B | 26,729 | 2,525 | 14,162 | 1,337 | (113,052 | ) | (10,686 | ) | (72,161 | ) | (6,824 | ) | ||||||||||||||||||||
Class C | 155,545 | 14,683 | 32,268 | 3,043 | (178,964 | ) | (16,925 | ) | 8,849 | 801 | ||||||||||||||||||||||
Class F-1 | 247,138 | 23,266 | 44,574 | 4,202 | (361,916 | ) | (34,236 | ) | (70,204 | ) | (6,768 | ) | ||||||||||||||||||||
Class F-2 | 118,552 | 11,190 | 8,944 | 843 | (105,970 | ) | (10,120 | ) | 21,526 | 1,913 | ||||||||||||||||||||||
Class 529-A | 28,346 | 2,678 | 6,664 | 628 | (17,306 | ) | (1,639 | ) | 17,704 | 1,667 | ||||||||||||||||||||||
Class 529-B | 1,583 | 150 | 731 | 69 | (2,283 | ) | (215 | ) | 31 | 4 | ||||||||||||||||||||||
Class 529-C | 13,508 | 1,277 | 2,364 | 223 | (8,549 | ) | (808 | ) | 7,323 | 692 | ||||||||||||||||||||||
Class 529-E | 1,606 | 152 | 355 | 34 | (1,072 | ) | (101 | ) | 889 | 85 | ||||||||||||||||||||||
Class 529-F-1 | 1,990 | 189 | 314 | 29 | (1,177 | ) | (112 | ) | 1,127 | 106 | ||||||||||||||||||||||
Class R-1 | 4,424 | 418 | 592 | 56 | (3,992 | ) | (377 | ) | 1,024 | 97 | ||||||||||||||||||||||
Class R-2 | 35,569 | 3,358 | 5,849 | 552 | (29,039 | ) | (2,743 | ) | 12,379 | 1,167 | ||||||||||||||||||||||
Class R-3 | 60,766 | 5,737 | 9,817 | 926 | (71,201 | ) | (6,743 | ) | (618 | ) | (80 | ) | ||||||||||||||||||||
Class R-4 | 52,807 | 4,995 | 6,427 | 606 | (50,167 | ) | (4,768 | ) | 9,067 | 833 | ||||||||||||||||||||||
Class R-5 | 56,089 | 5,326 | 7,607 | 718 | (75,894 | ) | (7,199 | ) | (12,198 | ) | (1,155 | ) | ||||||||||||||||||||
Class R-6 | 55,523 | 5,278 | 2,877 | 271 | (20,140 | ) | (1,899 | ) | 38,260 | 3,650 | ||||||||||||||||||||||
Total net increase | ||||||||||||||||||||||||||||||||
(decrease) | $ | 2,022,136 | 191,029 | $ | 474,619 | 44,759 | $ | (2,439,770 | ) | (230,897 | ) | $ | 56,985 | 4,891 | ||||||||||||||||||
Year ended September 30, 2009 | ||||||||||||||||||||||||||||||||
Class A | $ | 3,153,668 | 371,762 | $ | 647,705 | 76,450 | $ | (2,194,686 | ) | (255,978 | ) | $ | 1,606,687 | 192,234 | ||||||||||||||||||
Class B | 108,890 | 12,953 | 34,327 | 4,084 | (164,888 | ) | (19,243 | ) | (21,671 | ) | (2,206 | ) | ||||||||||||||||||||
Class C | 433,641 | 50,441 | 60,856 | 7,170 | (244,407 | ) | (28,586 | ) | 250,090 | 29,025 | ||||||||||||||||||||||
Class F-1 | 783,541 | 93,073 | 90,817 | 10,741 | (678,655 | ) | (80,004 | ) | 195,703 | 23,810 | ||||||||||||||||||||||
Class F-2 | 312,188 | 36,051 | 9,800 | 1,089 | (49,240 | ) | (5,357 | ) | 272,748 | 31,783 | ||||||||||||||||||||||
Class 529-A | 47,842 | 5,592 | 12,189 | 1,436 | (20,124 | ) | (2,326 | ) | 39,907 | 4,702 | ||||||||||||||||||||||
Class 529-B | 3,755 | 445 | 1,577 | 187 | (2,874 | ) | (335 | ) | 2,458 | 297 | ||||||||||||||||||||||
Class 529-C | 20,117 | 2,338 | 4,456 | 526 | (10,235 | ) | (1,195 | ) | 14,338 | 1,669 | ||||||||||||||||||||||
Class 529-E | 2,574 | 304 | 670 | 79 | (1,226 | ) | (142 | ) | 2,018 | 241 | ||||||||||||||||||||||
Class 529-F-1 | 2,633 | 309 | 549 | 65 | (1,651 | ) | (195 | ) | 1,531 | 179 | ||||||||||||||||||||||
Class R-1 | 8,045 | 928 | 1,081 | 127 | (4,453 | ) | (516 | ) | 4,673 | 539 | ||||||||||||||||||||||
Class R-2 | 64,190 | 7,450 | 11,458 | 1,355 | (43,464 | ) | (5,051 | ) | 32,184 | 3,754 | ||||||||||||||||||||||
Class R-3 | 149,245 | 17,754 | 18,673 | 2,198 | (99,770 | ) | (12,006 | ) | 68,148 | 7,946 | ||||||||||||||||||||||
Class R-4 | 75,335 | 8,636 | 12,091 | 1,427 | (50,394 | ) | (5,883 | ) | 37,032 | 4,180 | ||||||||||||||||||||||
Class R-5 | 163,896 | 19,818 | 16,646 | 1,969 | (141,365 | ) | (16,054 | ) | 39,177 | 5,733 | ||||||||||||||||||||||
Class R-6† | 41,389 | 4,663 | 1,199 | 124 | (508 | ) | (50 | ) | 42,080 | 4,737 | ||||||||||||||||||||||
Total net increase | ||||||||||||||||||||||||||||||||
(decrease) | $ | 5,370,949 | 632,517 | $ | 924,094 | 109,027 | $ | (3,707,940 | ) | (432,921 | ) | $ | 2,587,103 | 308,623 | ||||||||||||||||||
* Includes exchanges between share classes of the fund. | ||||||||||||||||||||||||||||||||
(†)Class R-6 was offered beginning May 1, 2009. |
8. | Investment transactions |
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $4,216,509,000 and $3,351,569,000, respectively, during the six months ended March 31, 2010.
9. | 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 rate and records unrealized appreciation or depreciation for open forward currency contracts in the statement of assets and liabilities. 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 or payables for closed forward currency contracts in the statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open fo rward currency contracts are recorded in the statement of operations. As of March 31, 2010, the fund had open forward currency contracts to sell currencies as follows (amounts in thousands):
Contract amount | Unrealized (depreciation) appreciation at | ||||||||||||
Sales | Settlement date | Receive | Deliver | March 31, 2010 | |||||||||
British pounds | 4/14/2010 | $ | 4,518 | £ | 3,000 | $ | (38 | ) | |||||
Euros | 4/6/2010 | $ | 4,742 | € | 3,500 | 5 | |||||||
Euros | 4/7/2010 | $ | 3,228 | € | 2,350 | 47 | |||||||
Euros | 4/14/2010 | $ | 416 | € | 305 | 3 | |||||||
Euros | 4/14/2010 | $ | 1,022 | € | 750 | 7 | |||||||
Euros | 4/14/2010 | $ | 8,178 | € | 6,000 | 57 | |||||||
Euros | 4/15/2010 | $ | 1,363 | € | 1,000 | 10 | |||||||
Euros | 4/15/2010 | $ | 204 | € | 150 | 1 | |||||||
Euros | 4/16/2010 | $ | 2,449 | € | 1,800 | 13 | |||||||
Euros | 4/19/2010 | $ | 11,671 | € | 8,500 | 166 | |||||||
Euros | 4/22/2010 | $ | 10,827 | € | 8,000 | - | * | ||||||
Euros | 4/26/2010 | $ | 2,705 | € | 2,000 | (2 | ) | ||||||
Euros | 5/5/2010 | $ | 206 | € | 150 | 3 | |||||||
Forward currency contracts - net | $ | 272 | |||||||||||
*Amount less than one thousand. |
Financial highlights(1)
Income (loss) from investment operations(2) | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return(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 3/31/2010(5) | $ | 10.29 | $ | .43 | $ | .62 | $ | 1.05 | $ | (.39 | ) | $ | - | $ | (.39 | ) | $ | 10.95 | 10.43 | % | $ | 11,035 | .69 | %(6) | .69 | %(6) | 8.24 | %(6) | ||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .83 | .33 | 1.16 | (.88 | ) | - | (.88 | ) | 10.29 | 14.03 | 10,274 | .80 | .79 | 9.57 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class B: | Six months ended 3/31/2010(5) | 10.29 | .39 | .62 | 1.01 | (.35 | ) | - | (.35 | ) | 10.95 | 10.01 | 511 | 1.47 | (6) | 1.47 | (6) | 7.46 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .76 | .33 | 1.09 | (.81 | ) | - | (.81 | ) | 10.29 | 13.18 | 550 | 1.56 | 1.55 | 8.93 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class C: | Six months ended 3/31/2010(5) | 10.29 | .39 | .62 | 1.01 | (.35 | ) | - | (.35 | ) | 10.95 | 9.98 | 1,300 | 1.52 | (6) | 1.52 | (6) | 7.40 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .76 | .33 | 1.09 | (.81 | ) | - | (.81 | ) | 10.29 | 13.15 | 1,213 | 1.58 | 1.57 | 8.74 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class F-1: | Six months ended 3/31/2010(5) | 10.29 | .43 | .62 | 1.05 | (.39 | ) | - | (.39 | ) | 10.95 | 10.41 | 1,504 | .75 | (6) | .75 | (6) | 8.17 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .83 | .33 | 1.16 | (.88 | ) | - | (.88 | ) | 10.29 | 14.02 | 1,482 | .81 | .80 | 9.54 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class F-2: | Six months ended 3/31/2010(5) | 10.29 | .45 | .62 | 1.07 | (.41 | ) | - | (.41 | ) | 10.95 | 10.54 | 384 | .49 | (6) | .49 | (6) | 8.43 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .81 | .37 | 1.18 | (.90 | ) | - | (.90 | ) | 10.29 | 14.32 | 341 | .53 | .53 | 8.99 | ||||||||||||||||||||||||||||||||||||||
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 3/31/2010(5) | 10.29 | .43 | .62 | 1.05 | (.39 | ) | - | (.39 | ) | 10.95 | 10.39 | 201 | .77 | (6) | .77 | (6) | 8.16 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .82 | .33 | 1.15 | (.87 | ) | - | (.87 | ) | 10.29 | 13.99 | 172 | .84 | .83 | 9.50 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class 529-B: | Six months ended 3/31/2010(5) | 10.29 | .39 | .62 | 1.01 | (.35 | ) | - | (.35 | ) | 10.95 | 9.96 | 23 | 1.57 | (6) | 1.57 | (6) | 7.36 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .75 | .33 | 1.08 | (.80 | ) | - | (.80 | ) | 10.29 | 13.08 | 22 | 1.65 | 1.64 | 8.76 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class 529-C: | Six months ended 3/31/2010(5) | 10.29 | .39 | .62 | 1.01 | (.35 | ) | - | (.35 | ) | 10.95 | 9.96 | 80 | 1.56 | (6) | 1.56 | (6) | 7.36 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .75 | .33 | 1.08 | (.80 | ) | - | (.80 | ) | 10.29 | 13.08 | 68 | 1.64 | 1.63 | 8.71 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class 529-E: | Six months ended 3/31/2010(5) | $ | 10.29 | $ | .42 | $ | .62 | $ | 1.04 | $ | (.38 | ) | $ | - | $ | (.38 | ) | $ | 10.95 | 10.24 | % | $ | 11 | 1.05 | %(6) | 1.05 | %(6) | 7.88 | %(6) | ||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .80 | .33 | 1.13 | (.85 | ) | - | (.85 | ) | 10.29 | 13.66 | 9 | 1.13 | 1.12 | 9.23 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class 529-F-1: | Six months ended 3/31/2010(5) | 10.29 | .44 | .62 | 1.06 | (.40 | ) | - | (.40 | ) | 10.95 | 10.51 | 9 | .55 | (6) | .55 | (6) | 8.37 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .84 | .33 | 1.17 | (.89 | ) | - | (.89 | ) | 10.29 | 14.23 | 7 | .63 | .62 | 9.72 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class R-1: | Six months ended 3/31/2010(5) | 10.29 | .39 | .62 | 1.01 | (.35 | ) | - | (.35 | ) | 10.95 | 9.98 | 20 | 1.53 | (6) | 1.53 | (6) | 7.39 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .75 | .33 | 1.08 | (.80 | ) | - | (.80 | ) | 10.29 | 13.08 | 18 | 1.64 | 1.63 | 8.65 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class R-2: | Six months ended 3/31/2010(5) | 10.29 | .39 | .62 | 1.01 | (.35 | ) | - | (.35 | ) | 10.95 | 9.99 | 194 | 1.60 | (6) | 1.51 | (6) | 7.41 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .76 | .33 | 1.09 | (.81 | ) | - | (.81 | ) | 10.29 | 13.17 | 170 | 1.79 | 1.56 | 8.81 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class R-3: | Six months ended 3/31/2010(5) | 10.29 | .42 | .62 | 1.04 | (.38 | ) | - | (.38 | ) | 10.95 | 10.24 | 289 | 1.06 | (6) | 1.06 | (6) | 7.87 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .80 | .33 | 1.13 | (.85 | ) | - | (.85 | ) | 10.29 | 13.66 | 272 | 1.13 | 1.12 | 9.20 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class R-4: | Six months ended 3/31/2010(5) | 10.29 | .43 | .62 | 1.05 | (.39 | ) | - | (.39 | ) | 10.95 | 10.40 | 192 | .75 | (6) | .75 | (6) | 8.17 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .83 | .33 | 1.16 | (.88 | ) | - | (.88 | ) | 10.29 | 14.02 | 172 | .81 | .80 | 9.56 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class R-5: | Six months ended 3/31/2010(5) | 10.29 | .45 | .62 | 1.07 | (.41 | ) | - | (.41 | ) | 10.95 | 10.57 | 203 | .45 | (6) | .45 | (6) | 8.48 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 10.01 | .85 | .33 | 1.18 | (.90 | ) | - | (.90 | ) | 10.29 | 14.37 | 202 | .51 | .50 | 9.88 | ||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||
Class R-6: | Six months ended 3/31/2010(5) | 10.29 | .45 | .62 | 1.07 | (.41 | ) | - | (.41 | ) | 10.95 | 10.59 | 92 | .40 | (6) | .40 | (6) | 8.52 | (6) | ||||||||||||||||||||||||||||||||||
Period from 5/1/2009 to 9/30/2009 | 8.47 | .33 | 1.83 | 2.16 | (.34 | ) | - | (.34 | ) | 10.29 | 25.96 | 49 | .18 | .18 | 3.55 |
Six months ended March 31, | Year ended September 30 | |||||||||||||||||||||||
2010(5) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Portfolio turnover rate for all classes of shares | 23 | % | 43 | % | 35 | % | 42 | % | 41 | % | 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
& #160; 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, 2009, through March 31, 2010).
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 fee s by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning account value 10/1/2009 | Ending account value 3/31/2010 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A -- actual return | $ | 1,000.00 | $ | 1,104.34 | $ | 3.62 | .69 | % | ||||||||
Class A -- assumed 5% return | 1,000.00 | 1,021.49 | 3.48 | .69 | ||||||||||||
Class B -- actual return | 1,000.00 | 1,100.13 | 7.70 | 1.47 | ||||||||||||
Class B -- assumed 5% return | 1,000.00 | 1,017.60 | 7.39 | 1.47 | ||||||||||||
Class C -- actual return | 1,000.00 | 1,099.85 | 7.96 | 1.52 | ||||||||||||
Class C -- assumed 5% return | 1,000.00 | 1,017.35 | 7.64 | 1.52 | ||||||||||||
Class F-1 -- actual return | 1,000.00 | 1,104.05 | 3.93 | .75 | ||||||||||||
Class F-1 -- assumed 5% return | 1,000.00 | 1,021.19 | 3.78 | .75 | ||||||||||||
Class F-2 -- actual return | 1,000.00 | 1,105.44 | 2.57 | .49 | ||||||||||||
Class F-2 -- assumed 5% return | 1,000.00 | 1,022.49 | 2.47 | .49 | ||||||||||||
Class 529-A -- actual return | 1,000.00 | 1,103.92 | 4.04 | .77 | ||||||||||||
Class 529-A -- assumed 5% return | 1,000.00 | 1,021.09 | 3.88 | .77 | ||||||||||||
Class 529-B -- actual return | 1,000.00 | 1,099.59 | 8.22 | 1.57 | ||||||||||||
Class 529-B -- assumed 5% return | 1,000.00 | 1,017.10 | 7.90 | 1.57 | ||||||||||||
Class 529-C -- actual return | 1,000.00 | 1,099.61 | 8.17 | 1.56 | ||||||||||||
Class 529-C -- assumed 5% return | 1,000.00 | 1,017.15 | 7.85 | 1.56 | ||||||||||||
Class 529-E -- actual return | 1,000.00 | 1,102.39 | 5.50 | 1.05 | ||||||||||||
Class 529-E -- assumed 5% return | 1,000.00 | 1,019.70 | 5.29 | 1.05 | ||||||||||||
Class 529-F-1 -- actual return | 1,000.00 | 1,105.08 | 2.89 | .55 | ||||||||||||
Class 529-F-1 -- assumed 5% return | 1,000.00 | 1,022.19 | 2.77 | .55 | ||||||||||||
Class R-1 -- actual return | 1,000.00 | 1,099.78 | 8.01 | 1.53 | ||||||||||||
Class R-1 -- assumed 5% return | 1,000.00 | 1,017.30 | 7.70 | 1.53 | ||||||||||||
Class R-2 -- actual return | 1,000.00 | 1,099.88 | 7.91 | 1.51 | ||||||||||||
Class R-2 -- assumed 5% return | 1,000.00 | 1,017.40 | 7.59 | 1.51 | ||||||||||||
Class R-3 -- actual return | 1,000.00 | 1,102.39 | 5.56 | 1.06 | ||||||||||||
Class R-3 -- assumed 5% return | 1,000.00 | 1,019.65 | 5.34 | 1.06 | ||||||||||||
Class R-4 -- actual return | 1,000.00 | 1,104.01 | 3.93 | .75 | ||||||||||||
Class R-4 -- assumed 5% return | 1,000.00 | 1,021.19 | 3.78 | .75 | ||||||||||||
Class R-5 -- actual return | 1,000.00 | 1,105.67 | 2.36 | .45 | ||||||||||||
Class R-5 -- assumed 5% return | 1,000.00 | 1,022.69 | 2.27 | .45 | ||||||||||||
Class R-6 -- actual return | 1,000.00 | 1,105.94 | 2.10 | .40 | ||||||||||||
Class R-6 -- assumed 5% return | 1,000.00 | 1,022.94 | 2.02 | .40 |
*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).
Approval of Investment Advisory and Service Agreement
The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for the period from November 1, 2010, through March 31, 2011. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.
In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor.
1. Nature, extent and quality of services
The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee considered, among other things, the impact of current market conditions on the fund and CRMC. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund un der the agreement and other agreements as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.
2. Investment results
The board and the committee considered the investment results of the fund in light of its primary objective of providing a high level of current income and its secondary objective of capital appreciation. They compared the fund’s total returns with those of other relevant funds (including the other funds that are the basis of the Lipper index for the category in which the fund is included) and market data such as relevant market indices, in each case as available at the time of the related board and committee meetings. This report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee concluded that the fund’s long-term resul ts have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.
3. Advisory fees and total expenses
The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses remain significantly below those of most other relevant funds. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the advisory fees paid by institutional clients of an affiliate of CRMC with investment mandates similar to those of the fund. They noted that, although the fees paid by those clients generally were lower than those paid by the fund, the differences appropriatel y reflected the significant investment, operational and regulatory differences between advising mutual funds and institutional clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided and that the shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.
4. Ancillary benefits
The board and the committee considered a variety of other benefits received by CRMC and its affiliates as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC’s institutional management affiliates. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.
5. Adviser financial information
The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments and attract and retain qualified personnel. They noted information previously received regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment m anagement companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure and the termination of CRMC’s 10% advisory fee waiver effective December 31, 2008. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.
Results of meeting of shareholders held November 24, 2009
Shares outstanding (all classes) on record date (August 28, 2009): | 1,444,373,681 | ||||
Total shares voting on November 24, 2009: | 1,029,582,017 | (71.3% of shares outstanding) |
Election of board members
Trustee* | Votes for | Percent of shares voting for | Votes withheld | Percent of shares withheld | ||||||||||||
Lee A. Ault III | 1,003,414,539 | 97.5 | % | 26,167,478 | 2.5 | % | ||||||||||
David C. Barclay | 1,003,744,935 | 97.5 | 25,837,082 | 2.5 | ||||||||||||
William H. Baribault | 1,003,620,281 | 97.5 | 25,961,736 | 2.5 | ||||||||||||
James G. Ellis | 1,003,646,332 | 97.5 | 25,935,685 | 2.5 | ||||||||||||
Martin Fenton | 1,003,686,089 | 97.5 | 25,895,928 | 2.5 | ||||||||||||
Leonard R. Fuller | 1,003,668,524 | 97.5 | 25,913,493 | 2.5 | ||||||||||||
Paul G. Haaga, Jr. | 1,003,645,208 | 97.5 | 25,936,809 | 2.5 | ||||||||||||
W. Scott Hedrick | 1,003,492,532 | 97.5 | 26,089,485 | 2.5 | ||||||||||||
R. Clark Hooper | 1,003,488,991 | 97.5 | 26,093,026 | 2.5 | ||||||||||||
Merit E. Janow | 1,003,523,966 | 97.5 | 26,058,051 | 2.5 | ||||||||||||
Laurel B. Mitchell | 1,003,670,805 | 97.5 | 25,911,212 | 2.5 | ||||||||||||
Frank M. Sanchez | 1,003,637,226 | 97.5 | 25,944,791 | 2.5 | ||||||||||||
Margaret Spellings | 1,003,458,103 | 97.5 | 26,123,914 | 2.5 | ||||||||||||
Steadman Upham | 1,003,476,380 | 97.5 | 26,105,637 | 2.5 |
Votes for | Percent of outstanding shares voting for | Votes against | Percent of outstanding shares voting against | Votes abstaining† | Percent of outstanding shares abstaining | |||||||||||||||||||
To approve an Agreement and Plan of Reorganization | 782,779,018 | 54.2 | % | 22,363,203 | 1.5 | % | 224,439,796 | 15.5 | % |
Votes for | Percent of shares voting for | Votes against | Percent of shares voting against | Votes abstaining† | Percent of shares abstaining | |||||||||||||||||||
To update the fund’s fundamental investment policies regarding: | ||||||||||||||||||||||||
Borrowing | 783,110,608 | 76.1 | % | 22,083,812 | 2.1 | % | 224,387,597 | 21.8 | % | |||||||||||||||
Issuance of senior securities | 783,630,817 | 76.1 | 21,147,541 | 2.1 | 224,803,659 | 21.8 | ||||||||||||||||||
Underwriting | 783,958,217 | 76.1 | 20,074,444 | 2.0 | 225,549,356 | 21.9 | ||||||||||||||||||
Investments in real estate or commodities | 781,875,762 | 75.9 | 22,809,115 | 2.3 | 224,897,140 | 21.8 | ||||||||||||||||||
Lending | 781,226,046 | 75.9 | 23,442,994 | 2.3 | 224,912,977 | 21.8 | ||||||||||||||||||
Industry concentration | 784,114,563 | 76.2 | 19,577,664 | 1.9 | 225,889,790 | 21.9 | ||||||||||||||||||
Elimination of certain policies | 779,929,878 | 75.8 | 23,004,621 | 2.2 | 226,647,518 | 22.0 | ||||||||||||||||||
To approve a policy allowing CRMC to appoint subsidiary advisers for the fund’s day-to-day investment management without additional shareholder approval | 772,462,433 | 75.0 | 31,055,641 | 3.0 | 226,063,943 | 22.0 | ||||||||||||||||||
To approve amendments to the fund's Investment Advisory and Service Agreement with CRMC | 774,886,274 | 75.3 | 27,251,808 | 2.6 | 227,443,935 | 22.1 | ||||||||||||||||||
To approve a form of Subsidiary Agreement and appointment of one or more subsidiary advisers for the fund | 765,370,591 | 74.3 | 35,980,812 | 3.5 | 228,230,614 | 22.2 |
*Richard G. Capen, Jr. and Richard G. Newman did not stand for election at the Meeting of Shareholders because they plan to retire in December 2010. |
†Includes broker non-votes. |
Offices of the fund
and of the investment adviser
Capital Research and
Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
6455 Irvine Center Drive
Irvine, CA 92618
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address near you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070
Counsel
Bingham McCutchen LLP
355 South Grand Avenue, Suite 4400
Los Angeles, CA 90071-3106
Independent registered
public accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s summary prospectus and 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 Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
A complete March 31, 2010, 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 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 summary prospectus or prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after June 30, 2010, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
The Capital Group Companies
American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust
Lit. No. MFGESR-921-0510P
Litho in USA RCG/AC/8076-S20689
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
American High-Income TrustSM
Investment portfolio
March 31, 2010
unaudited
Bonds, notes & other debt instruments — 89.72% | Principal amount (000) | Value (000) | ||||||
CORPORATE BONDS, NOTES & LOANS — 85.09% | ||||||||
CONSUMER DISCRETIONARY — 21.34% | ||||||||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.00% 20121 | $ | 50,950 | $ | 54,389 | ||||
CCO Holdings, LLC and CCO Holdings Capital Corp. 8.75% 2013 | 53,690 | 55,301 | ||||||
Charter Communications Operating, LLC, Term Loan B, 2.30% 20142,3,4 | 2,758 | 2,662 | ||||||
Charter Communications Operating, LLC, Term Loan B, 7.25% 20142,3,4 | 16,457 | 16,909 | ||||||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 8.375% 20141 | 37,900 | 39,132 | ||||||
Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. 10.875% 20141 | 26,500 | 29,779 | ||||||
Charter Communications Operating, LLC, Term Loan C, 3.55% 20162,3,4 | 22,389 | 21,841 | ||||||
Charter Communications, Inc. 13.50% 20161 | 46,188 | 55,310 | ||||||
Univision Communications, Inc., First Lien Term Loan B, 2.54% 20142,3,4 | 114,170 | 102,092 | ||||||
Univision Communications Inc. 12.00% 20141 | 20,310 | 22,341 | ||||||
Univision Communications Inc. 10.50% 20151,2,5 | 166,962 | 144,840 | ||||||
Virgin Media Finance PLC 8.75% 2014 | 13,597 | 13,988 | ||||||
Virgin Media Finance PLC 8.75% 20143 | € | 1,114 | 1,560 | |||||
Virgin Media Finance PLC 9.75% 20143 | £ | 631 | 1,003 | |||||
Virgin Media Finance PLC 9.125% 2016 | $ | 36,015 | 38,446 | |||||
Virgin Media Finance PLC, Series 1, 9.50% 2016 | 99,825 | 109,558 | ||||||
Virgin Media Inc. 6.50% 20181 | 7,325 | 7,380 | ||||||
Virgin Media Finance PLC 8.375% 20191 | 57,435 | 59,302 | ||||||
Michaels Stores, Inc., Term Loan B1, 2.563% 20132,3,4 | 18,737 | 17,870 | ||||||
Michaels Stores, Inc. 10.00% 2014 | 135,520 | 143,651 | ||||||
Michaels Stores, Inc. 0%/13.00% 20166 | 2,170 | 1,931 | ||||||
Michaels Stores, Inc., Term Loan B2, 4.813% 20162,3,4 | 6,349 | 6,199 | ||||||
Michaels Stores, Inc. 11.375% 2016 | 21,000 | 22,785 | ||||||
MGM MIRAGE 8.50% 2010 | 3,100 | 3,135 | ||||||
Mandalay Resort Group 6.375% 2011 | 1,500 | 1,444 | ||||||
MGM MIRAGE 6.75% 2012 | 1,700 | 1,615 | ||||||
MGM MIRAGE 6.75% 2013 | 16,855 | 15,338 | ||||||
MGM MIRAGE 13.00% 2013 | 37,775 | 44,197 | ||||||
MGM MIRAGE 5.875% 2014 | 25,425 | 21,548 | ||||||
MGM MIRAGE 10.375% 20141 | 12,725 | 14,093 | ||||||
MGM MIRAGE 6.625% 2015 | 7,975 | 6,639 | ||||||
MGM MIRAGE 7.50% 2016 | 4,000 | 3,350 | ||||||
MGM MIRAGE 11.125% 20171 | 18,275 | 20,651 | ||||||
MGM MIRAGE 9.00% 20201 | 21,925 | 22,692 | ||||||
Allison Transmission Holdings, Inc., Term Loan B, 3.01% 20142,3,4 | 29,318 | 28,003 | ||||||
Allison Transmission Holdings, Inc. 11.00% 20151 | 41,775 | 44,699 | ||||||
Allison Transmission Holdings, Inc. 11.25% 20151,2,5 | 75,319 | 80,780 | ||||||
Toys “R” Us, Inc. 7.625% 2011 | 57,410 | 59,706 | ||||||
Toys “R” Us-Delaware, Inc., Term Loan B, 4.496% 20122,3,4 | 24,012 | 24,122 | ||||||
Toys “R” Us, Inc. 8.50% 20171 | 26,575 | 27,704 | ||||||
Toys “R” Us, Inc. 10.75% 20171 | 3,875 | 4,340 | ||||||
Toys “R” Us, Inc. 7.375% 2018 | 9,550 | 9,216 | ||||||
Ford Motor Credit Co. 8.625% 2010 | 1,405 | 1,439 | ||||||
Ford Motor Credit Co. 9.75% 20102 | 24,000 | 24,578 | ||||||
Ford Motor Credit Co. 7.25% 2011 | 8,000 | 8,274 | ||||||
Ford Motor Credit Co. 7.375% 2011 | 6,775 | 6,946 | ||||||
Ford Motor Co. 9.50% 2011 | 1,000 | 1,064 | ||||||
Ford Motor Credit Co. 9.875% 2011 | 17,970 | 19,065 | ||||||
Ford Motor Credit Co. 3.001% 20122 | 20,085 | 19,533 | ||||||
Ford Motor Credit Co. 7.50% 2012 | 5,000 | 5,180 | ||||||
Ford Motor Credit Co. 7.80% 2012 | 2,000 | 2,075 | ||||||
FCE Bank PLC 7.125% 2013 | € | 3,550 | 4,948 | |||||
Ford Motor Credit Co. 8.00% 2016 | $ | 8,950 | 9,442 | |||||
Neiman Marcus Group, Inc. 9.00% 20152,5 | 72,815 | 74,635 | ||||||
Neiman Marcus Group, Inc. 10.375% 2015 | 22,825 | 23,681 | ||||||
Macy’s Retail Holdings, Inc. 8.875% 20152 | 30,100 | 34,164 | ||||||
Federated Retail Holdings, Inc. 5.90% 2016 | 37,000 | 37,093 | ||||||
Federated Department Stores, Inc. 6.79% 2027 | 8,302 | 7,513 | ||||||
Federated Department Stores, Inc. 7.00% 2028 | 6,900 | 6,417 | ||||||
Federated Department Stores, Inc. 6.90% 2029 | 8,925 | 8,523 | ||||||
Federated Retail Holdings, Inc. 6.375% 2037 | 3,379 | 3,126 | ||||||
AMC Entertainment Inc. 8.00% 2014 | 8,175 | 8,267 | ||||||
AMC Entertainment Inc., Series B, 11.00% 2016 | 10,000 | 10,788 | ||||||
AMC Entertainment Inc. 8.75% 2019 | 68,675 | 72,452 | ||||||
CSC Holdings, Inc., Series B, 6.75% 2012 | 4,500 | 4,731 | ||||||
Cablevision Systems Corp., Series B, 8.00% 2012 | 350 | 376 | ||||||
CSC Holdings, Inc. 8.50% 20141 | 31,575 | 33,785 | ||||||
CSC Holdings, Inc. 8.50% 20151 | 8,500 | 9,053 | ||||||
CSC Holdings, Inc. 8.625% 20191 | 26,325 | 28,925 | ||||||
Mediacom Broadband LLC and Mediacom Broadband Corp. 8.50% 2015 | 55,503 | 57,029 | ||||||
Mediacom LLC and Mediacom Capital Corp. 9.125% 20191 | 16,450 | 17,046 | ||||||
Boyd Gaming Corp. 7.75% 2012 | 27,925 | 27,995 | ||||||
Boyd Gaming Corp. 6.75% 2014 | 25,000 | 21,938 | ||||||
Boyd Gaming Corp. 7.125% 2016 | 21,000 | 17,640 | ||||||
Hanesbrands Inc., Series B, 3.831% 20142 | 47,650 | 45,744 | ||||||
Hanesbrands Inc. 8.00% 2016 | 14,825 | 15,418 | ||||||
Royal Caribbean Cruises Ltd. 8.00% 2010 | 3,200 | 3,236 | ||||||
Royal Caribbean Cruises Ltd. 8.75% 2011 | 435 | 455 | ||||||
Royal Caribbean Cruises Ltd. 6.875% 2013 | 4,000 | 4,060 | ||||||
Royal Caribbean Cruises Ltd. 11.875% 2015 | 44,825 | 53,006 | ||||||
Clear Channel Worldwide, Series B, 9.25% 20171 | 57,725 | 60,611 | ||||||
Cinemark USA, Inc., Term Loan, 3.51% 20162,3,4 | 5,549 | 5,541 | ||||||
Cinemark USA, Inc. 8.625% 2019 | 49,405 | 52,308 | ||||||
Dollar General Corp., Term Loan B2, 2.979% 20142,3,4 | 4,268 | 4,187 | ||||||
Dollar General Corp. 10.625% 2015 | 20,213 | 22,285 | ||||||
Dollar General Corp. 11.875% 20172,5 | 23,119 | 27,049 | ||||||
Quebecor Media Inc. 7.75% 2016 | 28,400 | 28,897 | ||||||
Quebecor Media Inc. 7.75% 2016 | 22,370 | 22,761 | ||||||
Sally Holdings LLC and Sally Capital Inc. 9.25% 2014 | 38,350 | 40,843 | ||||||
Sally Holdings LLC and Sally Capital Inc. 10.50% 2016 | 8,292 | 9,080 | ||||||
Cooper-Standard Automotive Inc., Term Loan D, 1.75% 20112,3,4,7 | 6,264 | 6,274 | ||||||
Cooper-Standard Automotive Inc., Term Loan C, 1.75% 20112,3,4,7 | 5,635 | 5,644 | ||||||
Cooper-Standard Automotive Inc., Term Loan E, 1.75% 20112,3,4,7 | 3,109 | 3,114 | ||||||
Cooper-Standard Automotive Inc., Term Loan B, 1.75% 20112,3,4,7 | 2,256 | 2,259 | ||||||
Cooper-Standard Automotive Inc., Term Loan, 1.75% 20112,3,4,7 | 1,716 | 1,718 | ||||||
Cooper-Standard Automotive Inc., Term Loan, 1.75% 20112,3,4,7 | 940 | 941 | ||||||
Cooper-Standard Automotive Inc., Term Loan, 1.75% 20112,3,4,7 | 866 | 867 | ||||||
Cooper-Standard Automotive Inc., Term Loan A, 1.75% 20112,3,4,7 | 740 | 741 | ||||||
Cooper-Standard Automotive Inc. 7.00% 20127 | 19,525 | 21,282 | ||||||
Cooper-Standard Automotive Inc. 8.375% 20147 | 9,275 | 6,678 | ||||||
Wynn Las Vegas, LLC and Wynn Las Vegas Capital Corp. 6.625% 2014 | 47,925 | 48,045 | ||||||
Technical Olympic USA, Inc. 9.00% 20107 | 22,486 | 16,302 | ||||||
Technical Olympic USA, Inc. 9.00% 20107 | 7,325 | 5,311 | ||||||
Technical Olympic USA, Inc. 9.25% 20111,7 | 36,325 | 26,336 | ||||||
Mohegan Tribal Gaming Authority 8.00% 2012 | 22,450 | 20,822 | ||||||
Mohegan Tribal Gaming Authority 6.125% 2013 | 1,225 | 1,053 | ||||||
Mohegan Tribal Gaming Authority 7.125% 2014 | 24,600 | 19,188 | ||||||
Mohegan Tribal Gaming Authority 6.875% 2015 | 6,775 | 5,166 | ||||||
TL Acquisitions, Inc., Term Loan B, 2.79% 20142,3,4 | 15,052 | 13,315 | ||||||
Thomson Learning 10.50% 20151 | 33,110 | 31,951 | ||||||
Burlington Coat Factory Warehouse Corp. 11.125% 2014 | 42,410 | 45,061 | ||||||
J.C. Penney Co., Inc. 9.00% 2012 | 8,980 | 10,102 | ||||||
J.C. Penney Co., Inc. 7.95% 2017 | 805 | 906 | ||||||
J.C. Penney Co., Inc. 5.75% 2018 | 20,350 | 20,477 | ||||||
J.C. Penney Co., Inc. 7.125% 2023 | 12,000 | 12,165 | ||||||
Norwegian Cruise Lines 11.75% 20161 | 37,135 | 40,570 | ||||||
Regal Cinemas Corp., Series B, 9.375% 2012 | 13,300 | 13,466 | ||||||
Regal Cinemas Corp. 8.625% 2019 | 25,455 | 26,919 | ||||||
Kabel Deutschland GmbH 10.625% 2014 | 34,500 | 36,354 | ||||||
Edcon (Proprietary) Ltd. 3.90% 20142 | € | 22,425 | 23,442 | |||||
Edcon (Proprietary) Ltd. 3.90% 20142 | 11,000 | 11,499 | ||||||
UPC Germany GmbH 8.125% 20171 | $ | 13,600 | 14,093 | |||||
UPC Germany GmbH 9.625% 2019 | € | 10,800 | 15,345 | |||||
Liberty Media Corp. 8.25% 2030 | $ | 5,650 | 5,290 | |||||
UPC Holding BV 9.875% 20181 | 31,560 | 33,296 | ||||||
Tenneco Automotive Inc. 8.625% 2014 | 30,995 | 31,615 | ||||||
American Media Operations, Inc. 9.00% 20131,5,8 | 3,396 | 2,224 | ||||||
American Media Operations, Inc. 14.00% 20131,2,5,8 | 42,703 | 28,024 | ||||||
LBI Media, Inc. 8.50% 20171 | 33,850 | 29,280 | ||||||
Local T.V. Finance LLC, Term Loan B, 2.30% 20132,3,4 | 11,037 | 9,859 | ||||||
Local T.V. Finance LLC 10.00% 20151,2,5 | 28,180 | 18,599 | ||||||
Fox Acquisition LLC, Term Loan B, 7.50% 20152,3,4 | 2,753 | 2,712 | ||||||
Fox Acquisition LLC 13.375% 20161 | 26,095 | 25,116 | ||||||
Bon-Ton Department Stores, Inc. 10.25% 2014 | 26,075 | 25,553 | ||||||
Circus and Eldorado Joint Venture and Silver Legacy Resort Casino 10.125% 2012 | 28,180 | 24,657 | ||||||
Warner Music Group 7.375% 2014 | 18,090 | 17,457 | ||||||
Warner Music Group 9.50% 20161 | 6,700 | 7,194 | ||||||
Jarden Corp. 8.00% 2016 | 23,250 | 24,471 | ||||||
Seneca Gaming Corp., Series B, 7.25% 2012 | 16,000 | 15,880 | ||||||
Seneca Gaming Corp. 7.25% 2012 | 8,440 | 8,377 | ||||||
Atlantic Broadband Finance, LLC and Atlantic Broadband Finance, Inc. 9.375% 2014 | 23,950 | 24,249 | ||||||
Beazer Homes USA, Inc. 8.375% 2012 | 10,500 | 10,526 | ||||||
Beazer Homes USA, Inc. 6.50% 2013 | 2,000 | 1,917 | ||||||
Beazer Homes USA, Inc. 8.125% 2016 | 11,405 | 10,179 | ||||||
Meritage Corp. 7.00% 2014 | 8,575 | 8,511 | ||||||
Meritage Homes Corp. 6.25% 2015 | 2,675 | 2,581 | ||||||
Meritage Corp. 7.731% 20171 | 9,000 | 7,943 | ||||||
Sealy Mattress Co. 10.875% 20161 | 15,006 | 16,882 | ||||||
Radio One, Inc. 6.375% 2013 | 20,260 | 16,740 | ||||||
Education Management LLC and Education Management Finance Corp. 8.75% 2014 | 14,495 | 15,002 | ||||||
Wendy’s/Arby’s Restaurants, LLC 10.00% 2016 | 10,700 | 11,556 | ||||||
Vidéotron Ltée 6.875% 2014 | 6,780 | 6,916 | ||||||
Vidéotron Ltée 6.375% 2015 | 3,720 | 3,767 | ||||||
Vitamin Shoppe Industries Inc. 7.75% 20122 | 10,425 | 10,477 | ||||||
Lear Corp. 7.875% 2018 | 9,000 | 9,146 | ||||||
KB Home 6.25% 2015 | 9,285 | 8,960 | ||||||
Standard Pacific Corp. 7.75% 2013 | 3,920 | 3,900 | ||||||
Standard Pacific Corp. 6.25% 2014 | 3,065 | 2,843 | ||||||
Standard Pacific Corp. 7.00% 2015 | 2,315 | 2,153 | ||||||
Seminole Tribe of Florida 7.804% 20201,3 | 9,515 | 8,878 | ||||||
Dillard Department Stores, Inc. 9.125% 2011 | 8,230 | 8,497 | ||||||
Sinclair Broadcast Group, Inc. 8.00% 2012 | 3,000 | 2,985 | ||||||
Grupo Televisa, SAB 6.625% 2040 | 2,500 | 2,509 | ||||||
Gaylord Entertainment Co. 6.75% 2014 | 2,450 | 2,358 | ||||||
Marks and Spencer Group PLC 7.125% 20371 | 1,480 | 1,504 | ||||||
Time Warner Cable Inc. 7.50% 2014 | 750 | 867 | ||||||
Young Broadcasting Inc. 10.00% 20117 | 58,845 | 412 | ||||||
Young Broadcasting Inc. 8.75% 20147 | 4,040 | 28 | ||||||
Cox Communications, Inc. 5.45% 2014 | 390 | 422 | ||||||
KAC Acquisition Corp. 8.00% 20261,5,9 | 237 | — | ||||||
3,424,461 | ||||||||
TELECOMMUNICATION SERVICES — 11.56% | ||||||||
Cricket Communications, Inc. 9.375% 2014 | 176,520 | 180,492 | ||||||
Cricket Communications, Inc. 10.00% 2015 | 5,000 | 5,225 | ||||||
Cricket Communications, Inc. 7.75% 2016 | 150,395 | 156,787 | ||||||
Sprint Nextel Corp. 0.688% 20102 | 5,120 | 5,102 | ||||||
Sprint Capital Corp. 7.625% 2011 | 4,000 | 4,135 | ||||||
Sprint Capital Corp. 8.375% 2012 | 27,550 | 28,790 | ||||||
Nextel Communications, Inc., Series E, 6.875% 2013 | 28,013 | 27,453 | ||||||
Nextel Communications, Inc., Series F, 5.95% 2014 | 144,965 | 135,905 | ||||||
Nextel Communications, Inc., Series D, 7.375% 2015 | 132,623 | 126,655 | ||||||
Sprint Capital Corp. 6.90% 2019 | 5,000 | 4,600 | ||||||
Sprint Capital Corp. 8.75% 2032 | 3,000 | 2,797 | ||||||
MetroPCS Wireless, Inc. 9.25% 2014 | 118,100 | 121,348 | ||||||
MetroPCS Wireless, Inc. 9.25% 2014 | 83,170 | 85,041 | ||||||
Windstream Corp. 8.125% 2013 | 85,325 | 89,805 | ||||||
Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. 7.75% 2015 | 31,370 | 32,096 | ||||||
Windstream Corp. 8.625% 2016 | 19,300 | 19,831 | ||||||
Windstream Corp. 7.00% 2019 | 2,500 | 2,344 | ||||||
Clearwire Communications LLC/Finance 12.00% 20151 | 77,975 | 79,924 | ||||||
Clearwire Communications LLC/Finance 12.00% 20151 | 48,050 | 49,251 | ||||||
Digicel Group Ltd. 12.00% 20141 | 61,825 | 70,480 | ||||||
Digicel Group Ltd. 12.00% 2014 | 600 | 684 | ||||||
Digicel Group Ltd. 8.875% 20151 | 32,475 | 32,069 | ||||||
Digicel Group Ltd. 8.875% 2015 | 9,150 | 9,036 | ||||||
Digicel Group Ltd. 10.50% 20181 | 10,450 | 10,894 | ||||||
Wind Acquisition SA 11.75% 20171 | 98,100 | 108,891 | ||||||
New Communications Holdings 7.875% 20151 | 16,800 | 17,346 | ||||||
New Communications Holdings 8.25% 20171 | 27,325 | 27,940 | ||||||
New Communications Holdings 8.50% 20201 | 33,950 | 34,374 | ||||||
New Communications Holdings 8.75% 20221 | 15,925 | 16,005 | ||||||
Intelsat, Ltd. 8.50% 2013 | 3,000 | 3,060 | ||||||
Intelsat, Ltd. 9.25% 2014 | 8,000 | 8,240 | ||||||
Intelsat, Ltd. 8.875% 2015 | 12,250 | 12,709 | ||||||
Intelsat Jackson Holding Co., Series B, 8.875% 20151 | 10,750 | 11,153 | ||||||
Intelsat, Ltd. 9.50% 2015 | 7,000 | 7,280 | ||||||
Intelsat, Ltd. 9.25% 2016 | 5,000 | 5,262 | ||||||
Intelsat Jackson Holding Co. 9.50% 2016 | 21,600 | 23,112 | ||||||
Intelsat Jackson Holding Co. 8.50% 20191 | 21,000 | 22,155 | ||||||
Crown Castle International Corp. 9.00% 2015 | 41,900 | 45,461 | ||||||
Crown Castle International Corp. 7.75% 20171 | 27,830 | 30,474 | ||||||
Sorenson Communications 10.50% 20151 | 69,425 | 67,342 | ||||||
American Tower Corp. 7.00% 2017 | 21,825 | 24,499 | ||||||
American Tower Corp. 7.25% 20191 | 11,225 | 12,684 | ||||||
Orascom Telecom 7.875% 20141 | 32,780 | 31,223 | ||||||
Qwest Corp. 7.875% 2011 | 3,000 | 3,195 | ||||||
Qwest Corp. 8.875% 2012 | 3,600 | 3,960 | ||||||
Qwest Communications International Inc. 8.00% 20151 | 12,750 | 13,643 | ||||||
SBA Telecommunications, Inc. 8.00% 20161 | 10,450 | 11,051 | ||||||
Hawaiian Telcom Communications, Inc. 8.765% 20132,7 | 19,715 | 641 | ||||||
Hawaiian Telcom Communications, Inc. 9.75% 20137 | 23,340 | 759 | ||||||
Hawaiian Telcom Communications, Inc., Term Loan C, 4.75% 20142,3,4,5 | 9,062 | 7,494 | ||||||
Hawaiian Telcom Communications, Inc., Series B, 12.50% 20157 | 8,725 | 1 | ||||||
Trilogy International Partners LLC, Term Loan B, 3.79% 20122,3,4 | 10,475 | 8,851 | ||||||
América Móvil, SAB de CV 5.00% 20201 | 4,350 | 4,310 | ||||||
América Móvil, SAB de CV 8.46% 2036 | MXN65,000 | 4,507 | ||||||
Level 3 Financing, Inc. 9.25% 2014 | $ | 4,000 | 3,920 | |||||
AT&T Inc. 6.70% 2013 | 2,500 | 2,855 | ||||||
1,855,141 | ||||||||
INDUSTRIALS — 10.68% | ||||||||
Nielsen Finance LLC, Term Loan A, 2.229% 20132,3,4 | 14,242 | 13,686 | ||||||
Nielsen Finance LLC and Nielsen Finance Co. 10.00% 2014 | 97,500 | 102,619 | ||||||
Nielsen Finance LLC and Nielsen Finance Co. 11.625% 2014 | 17,400 | 19,749 | ||||||
Nielsen Finance LLC and Nielsen Finance Co. 0%/12.50% 20166 | 149,450 | 142,725 | ||||||
Nielsen Finance LLC and Nielsen Finance Co. 11.50% 2016 | 60,950 | 69,178 | ||||||
Nielsen Finance LLC, Term Loan 1L, 8.50% 20173,4,9 | 28,000 | 28,000 | ||||||
Hawker Beechcraft Acquisition Co., LLC, Letter of Credit, 2.19% 20142,3,4 | 5,651 | 4,769 | ||||||
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 2.29% 20142,3,4 | 95,497 | 80,597 | ||||||
Hawker Beechcraft Acquisition Co., LLC, Term Loan B, 10.50% 20142,3,4 | 21,019 | 20,753 | ||||||
Hawker Beechcraft Acquisition Co., LLC 8.50% 2015 | 8,045 | 6,255 | ||||||
Hawker Beechcraft Acquisition Co., LLC 9.625% 20152,5 | 51,950 | 39,352 | ||||||
Hawker Beechcraft Acquisition Co., LLC 9.75% 2017 | 1,305 | 943 | ||||||
Delta Air Lines, Inc., Series 2000-1, Class A-1, 7.379% 20113 | 228 | 229 | ||||||
Delta Air Lines, Inc., Series 2000-1, Class A-2, 7.57% 20123 | 3,200 | 3,282 | ||||||
Delta Air Lines, Inc., Series 2000-1, Class B, 7.92% 20123 | 3,500 | 3,579 | ||||||
Northwest Airlines, Inc., Term Loan B, 3.80% 20132,3,4 | 11,159 | 10,043 | ||||||
Delta Air Lines, Inc., Series 2001-1, Class A-2, 7.111% 20133 | 2,500 | 2,616 | ||||||
Delta Air Lines, Inc., Second Lien Term Loan B, 3.501% 20142,3,4 | 11,670 | 10,732 | ||||||
Delta Air Lines, Inc., Series 2002-1, Class G-2, MBIA insured, 6.417% 20143 | 27,223 | 27,291 | ||||||
Delta Air Lines, Inc. 9.50% 20141 | 3,625 | 3,829 | ||||||
Northwest Airlines, Inc., Term Loan A, 2.05% 20182,3,4 | 10,515 | 8,622 | ||||||
Delta Air Lines, Inc., Series 2002-1, Class G-1, MBIA insured, 6.718% 20243 | 21,688 | 20,279 | ||||||
CEVA Group PLC, Bridge Loan, 8.48% 20152,3,4,9 | 56,263 | 50,074 | ||||||
CEVA Group PLC 11.625% 20161 | 13,930 | 14,940 | ||||||
CEVA Group PLC 11.50% 20181 | 20,725 | 21,606 | ||||||
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B1, 4.00% 20142,3,4 | 10,488 | 9,954 | ||||||
DAE Aviation Holdings, Inc. and Standard Aero Ltd., Term Loan B2, 4.04% 20142,3,4 | 10,209 | 9,688 | ||||||
DAE Aviation Holdings, Inc. 11.25% 20151 | 68,159 | 64,069 | ||||||
AMH Holdings, Inc. 11.25% 2014 | 63,295 | 65,431 | ||||||
AMH Holdings, Inc. 9.875% 2016 | 13,025 | 14,132 | ||||||
Continental Airlines, Inc. 8.75% 2011 | 21,200 | 21,253 | ||||||
Continental Airlines, Inc., Series 2000-2, Class A-2, 7.487% 20123 | 5,000 | 5,044 | ||||||
Continental Airlines, Inc., Series 2000-2, Class C, 8.312% 20123 | 2,387 | 2,324 | ||||||
Continental Airlines, Inc., Series 2001-1, Class B, 7.373% 20173 | 4,982 | 4,757 | ||||||
Continental Airlines, Inc., Series 1998-1, Class B, 6.748% 20183 | 4,805 | 4,565 | ||||||
Continental Airlines, Inc., Series 1997-4B, Class B, 6.90% 20183 | 3,608 | 3,464 | ||||||
Continental Airlines, Inc., Series 1997-4, Class A, 6.90% 20193 | 4,799 | 4,859 | ||||||
Continental Airlines, Inc., Series 2000-2, Class B, 8.307% 20193 | 2,177 | 2,079 | ||||||
Continental Airlines, Inc., Series 1999-1, Class A, 6.545% 20203 | 5,828 | 5,894 | ||||||
Continental Airlines, Inc., Series 2003-ERJ3, Class A, 7.875% 20203 | 12,143 | 11,110 | ||||||
Continental Airlines, Inc., Series 2001-1, Class A-1, 6.703% 20223 | 5,092 | 4,910 | ||||||
Continental Airlines, Inc., Series 2000-2, Class A-1, 7.707% 20223 | 2,576 | 2,607 | ||||||
Continental Airlines, Inc., Series 2000-1, Class A-1, 8.048% 20223 | 341 | 342 | ||||||
Continental Airlines, Inc., Series 2000-1, Class B, 8.388% 20223 | 6,671 | 6,238 | ||||||
TransDigm Inc. 7.75% 20141 | 66,045 | 67,861 | ||||||
TransDigm Inc. 7.75% 2014 | 8,960 | 9,206 | ||||||
Ashtead Group PLC 8.625% 20151 | 26,250 | 26,381 | ||||||
Ashtead Capital, Inc. 9.00% 20161 | 46,955 | 47,777 | ||||||
ARAMARK Corp., Term Loan B, 2.165% 20142,3,4 | 15,057 | 5,276 | ||||||
ARAMARK Corp., Letter of Credit, 2.276% 20142,3,4 | 353 | 347 | ||||||
ARAMARK Corp. 3.749% 20152 | 21,220 | 19,841 | ||||||
ARAMARK Corp. 8.50% 2015 | 36,820 | 37,832 | ||||||
ARAMARK Corp., Letter of Credit, 3.392% 20162,3,4 | 637 | 639 | ||||||
ARAMARK Corp., Term Loan B, 3.54% 20162,3,4 | 9,682 | 9,712 | ||||||
AMR Corp., Series B, 10.45% 2011 | 1,850 | 1,804 | ||||||
American Airlines, Inc., Series 2001-1, Class A-2, 6.817% 20123 | 17,375 | 17,549 | ||||||
American Airlines, Inc., Series 2001-2, Class B, 8.608% 20123 | 8,690 | 8,733 | ||||||
AMR Corp. 9.00% 2012 | 16,155 | 15,670 | ||||||
American Airlines, Inc., Series 2001-2, Class A-2, 7.858% 20133 | 1,300 | 1,338 | ||||||
AMR Corp. 9.00% 2016 | 1,475 | 1,302 | ||||||
American Airlines, Inc., Series 2001-1, Class B, 7.377% 20193 | 14,153 | 12,030 | ||||||
AMR Corp. 9.88% 2020 | 1,275 | 1,026 | ||||||
AMR Corp. 9.80% 2021 | 2,555 | 2,070 | ||||||
AMR Corp. 10.00% 2021 | 9,000 | 7,290 | ||||||
RailAmerica, Inc. 9.25% 2017 | 59,998 | 64,273 | ||||||
DynCorp International and DIV Capital Corp., Series B, 9.50% 2013 | 61,577 | 62,655 | ||||||
US Investigations Services, Inc., Term Loan B, 3.271% 20152,3,4 | 10,486 | 9,752 | ||||||
US Investigations Services, Inc. 10.50% 20151 | 40,315 | 38,098 | ||||||
US Investigations Services, Inc. 11.75% 20161 | 15,600 | 13,962 | ||||||
Nortek, Inc. 11.00% 20138 | 54,889 | 59,143 | ||||||
Atrium Companies, Inc., Term Loan, 12.50% 20102,3,4,9 | 3,370 | 3,353 | ||||||
Atrium Companies, Inc., Term Loan B, 11.75% 20122,3,4,5 | 41,823 | 38,503 | ||||||
Atrium Companies, Inc. 15.00% 20121,5 | 48,415 | 756 | ||||||
United Air Lines, 1991 Equipment Trust Certificates, Series A, 10.11% 20063,7,9 | 1,135 | — | ||||||
United Air Lines, Inc., Term Loan B, 2.25% 20142,3,4 | 29,968 | 26,162 | ||||||
United Air Lines, Inc., Series 2007-1, Class B, 7.336% 20211,3 | 8,474 | 6,822 | ||||||
RBS Global, Inc. and Rexnord LLC 9.50% 2014 | 18,702 | 19,544 | ||||||
RBS Global, Inc. and Rexnord LLC 9.50% 20141 | 2,700 | 2,821 | ||||||
RBS Global, Inc. and Rexnord LLC 8.875% 2016 | 8,475 | 7,861 | ||||||
TFM, SA de CV 9.375% 2012 | 786 | 810 | ||||||
Kansas City Southern Railway Co. 13.00% 2013 | 4,175 | 4,984 | ||||||
Kansas City Southern Railway Co. 8.00% 2015 | 15,892 | 16,587 | ||||||
Esterline Technologies Corp. 6.625% 2017 | 17,247 | 17,118 | ||||||
Navistar International Corp. 8.25% 2021 | 14,775 | 15,144 | ||||||
H&E Equipment Services, Inc. 8.375% 2016 | 14,875 | 14,466 | ||||||
B/E Aerospace 8.50% 2018 | 12,460 | 13,332 | ||||||
Oshkosh Corp. 8.25% 20171 | 4,500 | 4,669 | ||||||
Oshkosh Corp. 8.50% 20201 | 3,525 | 3,666 | ||||||
Esco Corp. 4.132% 20131,2 | 950 | 848 | ||||||
Esco Corp. 8.625% 20131 | 5,600 | 5,656 | ||||||
Sequa Corp., Term Loan B, 3.89% 20142,3,4 | 6,871 | 6,436 | ||||||
Park-Ohio Industries, Inc. 8.375% 2014 | 6,225 | 5,525 | ||||||
RSC Equipment Rental, Inc. and RSC Holdings III, LLC 9.50% 2014 | 3,650 | 3,632 | ||||||
Allied Waste North America, Inc. 6.875% 2017 | 2,800 | 3,056 | ||||||
RSC Holdings III, LLC, Second Lien Term Loan B, 3.76% 20132,3,4 | 1,399 | 1,354 | ||||||
1,713,140 | ||||||||
FINANCIALS — 10.46% | ||||||||
CIT Group Inc., Term Loan 2A, 9.50% 20122,3,4 | 13,950 | 14,316 | ||||||
CIT Group Inc., Term Loan, 13.00% 20122,3,4 | 48,600 | 50,435 | ||||||
CIT Group Inc., Series A, 7.00% 2013 | 95,189 | 93,285 | ||||||
CIT Group Inc., Series A, 7.00% 2014 | 43,926 | 41,620 | ||||||
CIT Group Inc., Series A, 7.00% 2015 | 108,848 | 101,773 | ||||||
CIT Group Inc., Series A, 7.00% 2016 | 25,340 | 23,439 | ||||||
Realogy Corp., Letter of Credit, 3.231% 20132,3,4 | 25,094 | 22,217 | ||||||
Realogy Corp., Term Loan B, 3.251% 20132,3,4 | 97,890 | 86,671 | ||||||
Realogy Corp., Term Loan DD, 3.251% 20132,3,4 | 17,351 | 15,362 | ||||||
Realogy Corp., Second Lien Term Loan A, 13.50% 20173,4 | 54,925 | 60,669 | ||||||
International Lease Finance Corp., Series R, 4.95% 2011 | 10,265 | 10,275 | ||||||
International Lease Finance Corp., Series Q, 5.45% 2011 | 34,915 | 34,961 | ||||||
International Lease Finance Corp., Series Q, 5.75% 2011 | 47,186 | 47,440 | ||||||
International Lease Finance Corp. 4.75% 2012 | 9,060 | 8,853 | ||||||
International Lease Finance Corp. 5.00% 2012 | 3,375 | 3,245 | ||||||
International Lease Finance Corp., Series R, 5.30% 2012 | 3,310 | 3,216 | ||||||
International Lease Finance Corp., Series R, 5.35% 2012 | 8,390 | 8,223 | ||||||
International Lease Finance Corp., Series R, 5.40% 2012 | 17,500 | 17,227 | ||||||
International Lease Finance Corp., Series R, 6.375% 2013 | 15,500 | 15,158 | ||||||
International Lease Finance Corp. 8.625% 20151 | 14,750 | 15,115 | ||||||
Liberty Mutual Group Inc. 6.50% 20351 | 18,000 | 15,718 | ||||||
Liberty Mutual Group Inc., Series B, 7.00% 20671,2 | 7,000 | 5,975 | ||||||
Liberty Mutual Group Inc., Series A, 7.80% 20871,2 | 59,063 | 52,861 | ||||||
Liberty Mutual Group Inc., Series C, 10.75% 20881,2 | 47,950 | 54,183 | ||||||
Residential Capital Corp. 8.375% 2010 | 31,640 | 30,691 | ||||||
GMAC LLC 7.25% 2011 | 8,898 | 9,098 | ||||||
GMAC LLC 6.625% 2012 | 1,899 | 1,937 | ||||||
GMAC LLC 6.875% 2012 | 4,432 | 4,515 | ||||||
GMAC LLC 7.00% 2012 | 6,791 | 6,978 | ||||||
GMAC LLC 7.50% 2013 | 3,030 | 3,113 | ||||||
GMAC LLC 2.452% 20142 | 9,210 | 8,120 | ||||||
GMAC LLC 6.75% 2014 | 7,500 | 7,460 | ||||||
GMAC LLC 6.75% 2014 | 2,529 | 2,542 | ||||||
GMAC LLC 8.30% 20151 | 31,226 | 32,865 | ||||||
GMAC LLC 8.00% 20201 | 8,500 | 8,734 | ||||||
Developers Diversified Realty Corp. 5.375% 2012 | 400 | 400 | ||||||
Developers Diversified Realty Corp. 5.50% 2015 | 9,270 | 8,750 | ||||||
Developers Diversified Realty Corp. 9.625% 2016 | 52,305 | 58,576 | ||||||
Developers Diversified Realty Corp. 7.50% 2017 | 26,155 | 26,496 | ||||||
Rouse Co. 3.625% 20097 | 12,415 | 12,881 | ||||||
Rouse Co. 7.20% 20127 | 12,145 | 13,982 | ||||||
Rouse Co. 5.375% 20137 | 22,130 | 24,011 | ||||||
Rouse Co. 6.75% 20131,7 | 17,950 | 20,014 | ||||||
Host Marriott, LP, Series K, 7.125% 2013 | 4,450 | 4,550 | ||||||
Host Marriott, LP, Series O, 6.375% 2015 | 7,725 | 7,706 | ||||||
Host Hotels & Resorts, LP, Series Q, 6.75% 2016 | 18,325 | 18,462 | ||||||
Host Hotels & Resorts LP 9.00% 20171 | 29,025 | 31,492 | ||||||
National City Preferred Capital Trust I 12.00% (undated)2 | 41,340 | 48,368 | ||||||
Zions Bancorporation 5.65% 2014 | 31,690 | 28,996 | ||||||
Zions Bancorporation 7.75% 2014 | 6,455 | 6,517 | ||||||
Zions Bancorporation 6.00% 2015 | 12,560 | 11,568 | ||||||
Capital One Capital III 7.686% 20362 | 7,770 | 7,459 | ||||||
Capital One Capital IV 6.745% 20372 | 20,244 | 17,663 | ||||||
Capital One Capital V 10.25% 2039 | 11,710 | 13,909 | ||||||
MetLife Capital Trust IV 7.875% 20671,2 | 14,950 | 15,399 | ||||||
MetLife Capital Trust X 9.25% 20681,2 | 12,500 | 14,188 | ||||||
MetLife Inc. 10.75% 20692 | 7,000 | 9,046 | ||||||
SLM Corp., Series A, 4.50% 2010 | 3,000 | 3,014 | ||||||
SLM Corp., Series A, 5.375% 2013 | 9,000 | 8,894 | ||||||
SLM Corp., Series A, 8.45% 2018 | 25,000 | 25,321 | ||||||
Hospitality Properties Trust 7.875% 2014 | 4,090 | 4,396 | ||||||
Hospitality Properties Trust 5.125% 2015 | 4,410 | 4,271 | ||||||
Hospitality Properties Trust 6.30% 2016 | 3,185 | 3,139 | ||||||
Hospitality Properties Trust 5.625% 2017 | 12,870 | 12,025 | ||||||
Hospitality Properties Trust 6.70% 2018 | 6,820 | 6,744 | ||||||
Bank of America Corp., Series L, 7.375% 2014 | 8,250 | 9,286 | ||||||
Bank of America Corp. 5.75% 2017 | 11,495 | 11,804 | ||||||
MBNA Capital A, Series A, 8.278% 2026 | 7,500 | 7,613 | ||||||
Catlin Insurance Ltd. 7.249% (undated)1,2 | 28,000 | 24,920 | ||||||
Lazard Group LLC 7.125% 2015 | 21,626 | 22,731 | ||||||
HBOS PLC 6.75% 20181 | 20,925 | 19,255 | ||||||
HBOS PLC 6.00% 20331 | 4,050 | 3,078 | ||||||
Nationwide Mutual Insurance Co. 9.375% 20391 | 18,000 | 20,566 | ||||||
Citigroup Inc. 6.01% 2015 | 3,000 | 3,155 | ||||||
Citigroup Inc. 6.125% 2017 | 4,350 | 4,481 | ||||||
Citigroup Inc. 6.125% 2018 | 4,675 | 4,784 | ||||||
Citigroup Capital XXI 8.30% 20772 | 6,500 | 6,614 | ||||||
ProLogis 5.625% 2016 | 2,970 | 2,877 | ||||||
ProLogis 6.625% 2018 | 8,570 | 8,530 | ||||||
ProLogis 7.375% 2019 | 5,000 | 5,141 | ||||||
Regions Financial Corp. 7.75% 2014 | 15,500 | 16,324 | ||||||
Royal Bank of Scotland Group PLC 5.00% 2014 | 2,050 | 1,964 | ||||||
Royal Bank of Scotland Group PLC 5.05% 2015 | 4,178 | 3,960 | ||||||
Royal Bank of Scotland Group PLC 4.70% 2018 | 8,490 | 6,885 | ||||||
Royal Bank of Scotland Group PLC 6.99% (undated)1,2 | 3,615 | 2,585 | ||||||
Unum Group 7.125% 2016 | 13,575 | 14,776 | ||||||
First Niagara Financial Group, Inc. 6.75% 2020 | 9,730 | 9,850 | ||||||
Simon Property Group, LP 10.35% 2019 | 7,350 | 9,256 | ||||||
Lehman Brothers Holdings Inc., Series G, 4.80% 20147 | 5,000 | 1,188 | ||||||
Lehman Brothers Holdings Inc., Series I, 6.20% 20147 | 4,640 | 1,102 | ||||||
Lehman Brothers Holdings Inc., Series H, 5.50% 20167 | 360 | 86 | ||||||
Lehman Brothers Holdings Inc., Series I, 6.875% 20187 | 23,000 | 5,549 | ||||||
Boston Properties, Inc. 5.875% 2019 | 7,500 | 7,800 | ||||||
Brandywine Operating Partnership, LP 7.50% 2015 | 7,000 | 7,540 | ||||||
ZFS Finance (USA) Trust V 6.50% 20671,2 | 6,000 | 5,730 | ||||||
AXA SA 6.667% (undated)2 | £ | 4,000 | 5,604 | |||||
Banco Mercantil del Norte, SA 6.135% 20161,2 | $ | 3,500 | 3,483 | |||||
Banco Mercantil del Norte, SA 6.862% 20211,2 | 2,000 | 1,920 | ||||||
Genworth Financial, Inc. 6.15% 20662 | 6,500 | 5,054 | ||||||
Prudential Financial, Inc. 8.875% 20682 | 4,380 | 4,954 | ||||||
HVB Funding Trust I 8.741% 20311 | 4,720 | 4,637 | ||||||
Allied Irish Banks, PLC 12.50% 2019 | € | 2,645 | 4,229 | |||||
Nomura Holdings, Inc. 6.70% 2020 | $ | 4,000 | 4,159 | |||||
Korea Development Bank 8.00% 2014 | 3,500 | 4,016 | ||||||
Allstate Corp., Series B, 6.125% 20672 | 2,530 | 2,410 | ||||||
Schwab Capital Trust I 7.50% 20372 | 1,500 | 1,498 | ||||||
Northern Rock PLC 6.594% (undated)1,2 | 8,110 | 1,298 | ||||||
1,679,219 | ||||||||
INFORMATION TECHNOLOGY — 9.48% | ||||||||
NXP BV and NXP Funding LLC 3.001% 20132 | $ | 79,290 | $ | 74,632 | ||||
NXP BV and NXP Funding LLC 3.434% 20132 | € | 48,528 | 60,743 | |||||
NXP BV and NXP Funding LLC 10.00% 20131,10 | $ | 77,049 | 82,443 | |||||
NXP BV and NXP Funding LLC 7.875% 2014 | 111,615 | 109,383 | ||||||
NXP BV and NXP Funding LLC 8.625% 2015 | € | 48,950 | 62,265 | |||||
NXP BV and NXP Funding LLC 9.50% 2015 | $ | 120,215 | 119,313 | |||||
Freescale Semiconductor, Inc. 4.132% 20142 | 7,525 | 6,547 | ||||||
Freescale Semiconductor, Inc. 8.875% 2014 | 123,053 | 118,131 | ||||||
Freescale Semiconductor, Inc. 9.875% 20142,5 | 128,242 | 123,754 | ||||||
Freescale Semiconductor, Inc., Term Loan B, 12.50% 20143,4 | 66,993 | 69,142 | ||||||
Freescale Semiconductor, Inc., Term Loan, 4.479% 20162,3,4 | 24,129 | 22,722 | ||||||
Freescale Semiconductor, Inc. 10.125% 2016 | 92,042 | 81,917 | ||||||
Freescale Semiconductor, Inc. 10.125% 20181 | 50,725 | 54,846 | ||||||
First Data Corp., Term Loan B2, 3.032% 20142,3,4 | 79,108 | 70,125 | ||||||
First Data Corp. 9.875% 2015 | 72,141 | 62,582 | ||||||
First Data Corp. 9.875% 2015 | 9,700 | 8,415 | ||||||
First Data Corp. 10.55% 20155 | 47,820 | 40,647 | ||||||
Sanmina-SCI Corp. 6.75% 2013 | 45,100 | 45,326 | ||||||
Sanmina-SCI Corp. 3.007% 20141,2 | 28,755 | 27,317 | ||||||
Sanmina-SCI Corp. 8.125% 2016 | 87,207 | 88,188 | ||||||
SunGard Data Systems Inc. 9.125% 2013 | 55,575 | 57,242 | ||||||
SunGard Data Systems Inc. 10.625% 2015 | 8,800 | 9,636 | ||||||
Advanced Micro Devices, Inc. 8.125% 20171 | 39,800 | 41,193 | ||||||
Ceridian Corp. 11.25% 2015 | 32,925 | 31,690 | ||||||
Jabil Circuit, Inc. 8.25% 2018 | 22,415 | 24,320 | ||||||
Serena Software, Inc. 10.375% 2016 | 24,540 | 24,049 | ||||||
Xerox Corp. 7.625% 2013 | 5,000 | 5,131 | ||||||
1,521,699 | ||||||||
HEALTH CARE — 7.38% | ||||||||
Tenet Healthcare Corp. 7.375% 2013 | 69,485 | 70,527 | ||||||
Tenet Healthcare Corp. 9.00% 20151 | 1,245 | 1,348 | ||||||
Tenet Healthcare Corp. 9.25% 2015 | 39,985 | 42,134 | ||||||
Tenet Healthcare Corp. 8.875% 20191 | 122,475 | 133,192 | ||||||
Elan Finance PLC and Elan Finance Corp. 4.25% 20112 | 40,467 | 39,961 | ||||||
Elan Finance PLC and Elan Finance Corp. 4.377% 20132 | 16,120 | 14,589 | ||||||
Elan Finance PLC and Elan Finance Corp. 8.875% 2013 | 70,975 | 73,459 | ||||||
Elan Finance PLC and Elan Finance Corp. 8.75% 20161 | 73,230 | 72,864 | ||||||
VWR Funding, Inc. 10.25% 20152,5 | 129,968 | 138,416 | ||||||
HealthSouth Corp., Term Loan B, 2.51% 20132,3,4 | 6,930 | 6,808 | ||||||
HealthSouth Corp., Term Loan B, 4.01% 20152,3,4 | 5,704 | 5,735 | ||||||
HealthSouth Corp. 10.75% 2016 | 76,190 | 82,761 | ||||||
PTS Acquisition Corp. 10.25% 20152,5 | 92,683 | 91,525 | ||||||
HCA Inc., Term Loan B1, 2.54% 20132,3,4 | 21,869 | 21,356 | ||||||
HCA Inc. 6.75% 2013 | 9,230 | 9,276 | ||||||
HCA Inc. 9.125% 2014 | 12,945 | 13,706 | ||||||
HCA Inc. 9.25% 2016 | 11,725 | 12,494 | ||||||
HCA Inc. 9.625% 20162,5 | 18,906 | 20,300 | ||||||
HCA Inc. 8.50% 20191 | 2,355 | 2,545 | ||||||
HCA Inc. 7.875% 20201 | 5,050 | 5,299 | ||||||
Bausch & Lomb Inc. 9.875% 2015 | 52,025 | 55,277 | ||||||
Boston Scientific Corp. 6.25% 2015 | 3,785 | 3,852 | ||||||
Boston Scientific Corp. 6.00% 2020 | 12,000 | 11,357 | ||||||
Boston Scientific Corp. 7.375% 2040 | 40,631 | 38,475 | ||||||
Quintiles Transnational 9.50% 20141,2,5 | 50,435 | 51,570 | ||||||
Surgical Care Affiliates, Inc. 8.875% 20151,2,5 | 28,684 | 29,042 | ||||||
Surgical Care Affiliates, Inc. 10.00% 20171 | 20,430 | 20,430 | ||||||
Symbion Inc. 11.75% 20152,5 | 34,810 | 30,807 | ||||||
Coventry Health Care, Inc. 5.875% 2012 | 4,890 | 5,067 | ||||||
Coventry Health Care, Inc. 5.95% 2017 | 23,030 | 22,008 | ||||||
Viant Holdings Inc. 10.125% 20171 | 25,974 | 26,039 | ||||||
CHS/Community Health Systems, Inc. 8.875% 2015 | 8,250 | 8,559 | ||||||
Team Finance LLC and Health Finance Corp. 11.25% 2013 | 7,602 | 7,982 | ||||||
United Surgical Partners International Inc. 9.25% 20172,5 | 6,455 | 6,713 | ||||||
Accellent Inc. 8.375% 20171 | 5,000 | 5,100 | ||||||
Health Management Associates, Inc. 6.125% 2016 | 3,000 | 2,872 | ||||||
1,183,445 | ||||||||
MATERIALS — 4.56% | ||||||||
Georgia Gulf Corp. 10.75% 20168 | 5,388 | 5,361 | ||||||
Georgia Gulf Corp. 9.00% 20171,8 | 83,285 | 87,553 | ||||||
Nalco Co. 8.875% 2013 | 6,700 | 6,934 | ||||||
Nalco Co. 9.00% 2013 | € | 965 | 1,348 | |||||
Nalco Finance Holdings LLC and Nalco Finance Holdings Inc. 9.00% 2014 | $ | 8,825 | 9,134 | |||||
Nalco Co., Term Loan B, 5.75% 20162,3,4 | 14,242 | 14,412 | ||||||
Nalco Co. 8.25% 20171 | 40,940 | 43,703 | ||||||
Owens-Brockway Glass Container Inc. 8.25% 2013 | 9,560 | 9,727 | ||||||
Owens-Brockway Glass Container Inc. 6.75% 2014 | 3,309 | 3,392 | ||||||
Owens-Brockway Glass Container Inc. 6.75% 2014 | € | 375 | 523 | |||||
Owens-Brockway Glass Container Inc. 7.375% 2016 | $ | 54,325 | 57,313 | |||||
International Paper Co. 7.95% 2018 | 32,820 | 38,404 | ||||||
International Paper Co. 9.375% 2019 | 9,980 | 12,496 | ||||||
Freeport-McMoRan Copper & Gold Inc. 8.375% 2017 | 42,440 | 47,278 | ||||||
Smurfit Kappa Acquisition 7.25% 2017 | € | 4,740 | 6,633 | |||||
Smurfit Kappa Acquisition 7.75% 2019 | 19,430 | 27,510 | ||||||
Smurfit Capital Funding PLC 7.50% 2025 | $ | 10,126 | 8,911 | |||||
Ball Corp. 7.125% 2016 | 14,785 | 15,783 | ||||||
Ball Corp. 7.375% 2019 | 9,680 | 10,249 | ||||||
Ball Corp. 6.75% 2020 | 8,345 | 8,533 | ||||||
CEMEX Finance LLC 9.50% 20161 | 18,150 | 18,876 | ||||||
CEMEX Finance LLC 9.50% 2016 | 6,850 | 7,124 | ||||||
C5 Capital (SPV) Ltd. 6.196% (undated)1,2 | 400 | 280 | ||||||
C8 Capital (SPV) Ltd. 6.64% (undated)2 | 750 | 523 | ||||||
C8 Capital (SPV) Ltd. 6.64% (undated)1,2 | 300 | 209 | ||||||
C10 Capital (SPV) Ltd. 6.722% (undated)1,2 | 7,445 | 5,301 | ||||||
C10 Capital (SPV) Ltd. 6.722% (undated)2 | 1,255 | 894 | ||||||
Reynolds Group 7.75% 20161 | 30,285 | 31,269 | ||||||
LBI Escrow Corp 8.00% 20171 | 29,010 | 30,134 | ||||||
Georgia-Pacific Corp. 8.125% 2011 | 11,610 | 12,249 | ||||||
Georgia-Pacific LLC 8.25% 20161 | 15,525 | 17,000 | ||||||
Rockwood Specialties Group, Inc. 7.50% 2014 | 10,215 | 10,368 | ||||||
Rockwood Specialties Group, Inc. 7.625% 2014 | € | 12,235 | 16,970 | |||||
Teck Resources Ltd. 9.75% 2014 | $ | 18,900 | 22,491 | |||||
Teck Cominco Ltd. 6.125% 2035 | 2,200 | 2,018 | ||||||
Dow Chemical Co. 7.60% 2014 | 13,000 | 14,854 | ||||||
Dow Chemical Co. 8.55% 2019 | 7,225 | 8,755 | ||||||
Graphic Packaging International, Inc. 9.50% 2013 | 2,425 | 2,498 | ||||||
Graphic Packaging International, Inc. 9.50% 2017 | 17,445 | 18,710 | ||||||
FMG Finance Pty Ltd. 4.252% 20111,2 | 3,875 | 3,899 | ||||||
FMG Finance Pty Ltd. 10.625% 20161 | 11,725 | 13,572 | ||||||
Plastipak Holdings, Inc. 8.50% 20151 | 15,515 | 15,864 | ||||||
Rio Tinto Finance (USA) Ltd. 8.95% 2014 | 11,830 | 14,268 | ||||||
Newpage Corp. 11.375% 2014 | 13,150 | 13,150 | ||||||
MacDermid 9.50% 20171 | 12,000 | 12,390 | ||||||
Rock-Tenn Co. 9.25% 2016 | 6,615 | 7,243 | ||||||
Rock-Tenn Co. 9.25% 20161 | 3,180 | 3,482 | ||||||
Steel Dynamics Inc. 7.625% 20201 | 9,250 | 9,527 | ||||||
Solutia Inc. 8.75% 2017 | 2,960 | 3,138 | ||||||
732,253 | ||||||||
UTILITIES — 3.95% | ||||||||
Edison Mission Energy 7.50% 2013 | 43,325 | 37,801 | ||||||
Edison Mission Energy 7.75% 2016 | 12,825 | 9,426 | ||||||
Midwest Generation, LLC, Series B, 8.56% 20163 | 44,531 | 45,591 | ||||||
Edison Mission Energy 7.00% 2017 | 42,195 | 29,642 | ||||||
Edison Mission Energy 7.20% 2019 | 46,450 | 32,283 | ||||||
Homer City Funding LLC 8.734% 20263 | 9,065 | 8,748 | ||||||
Edison Mission Energy 7.625% 2027 | 44,280 | 28,561 | ||||||
Texas Competitive Electric Holdings Co. LLC, Term Loan B2, 3.729% 20142,3,4 | 78,550 | 64,719 | ||||||
Texas Competitive Electric Holdings Co. LLC, Series A, 10.25% 2015 | 56,375 | 39,463 | ||||||
Texas Competitive Electric Holdings Co. LLC, Series B, 10.25% 2015 | 54,475 | 38,133 | ||||||
Texas Competitive Electric Holdings Co. LLC 11.25% 20162,5 | 10,881 | 7,453 | ||||||
AES Corp. 9.375% 2010 | 5,508 | 5,687 | ||||||
AES Corp. 8.875% 2011 | 8,475 | 8,846 | ||||||
AES Corp. 8.75% 20131 | 18,367 | 18,734 | ||||||
AES Gener SA 7.50% 2014 | 11,750 | 12,818 | ||||||
AES Corp. 7.75% 2015 | 3,075 | 3,144 | ||||||
AES Corp. 8.00% 2017 | 32,500 | 33,150 | ||||||
AES Corp. 8.00% 2020 | 11,300 | 11,314 | ||||||
NRG Energy, Inc. 7.25% 2014 | 21,350 | 21,564 | ||||||
NRG Energy, Inc. 7.375% 2016 | 65,725 | 65,396 | ||||||
NRG Energy, Inc. 7.375% 2017 | 2,025 | 2,010 | ||||||
Intergen Power 9.00% 20171 | 71,950 | 74,468 | ||||||
Nevada Power Co., General and Refunding Mortgage Bonds, Series A, 8.25% 2011 | 4,000 | 4,293 | ||||||
Sierra Pacific Power Co., General and Refunding Mortgage Notes, Series H, 6.25% 2012 | 3,000 | 3,205 | ||||||
Nevada Power Co., General and Refunding Mortgage Notes, Series I, 6.50% 2012 | 525 | 568 | ||||||
Sierra Pacific Resources 8.625% 2014 | 11,075 | 11,407 | ||||||
Nevada Power Co., General and Refunding Mortgage Notes, Series L, 5.875% 2015 | 2,475 | 2,699 | ||||||
Nevada Power Co., General and Refunding Mortgage Notes, Series M, 5.95% 2016 | 1,600 | 1,738 | ||||||
Sierra Pacific Resources 6.75% 2017 | 2,000 | 2,039 | ||||||
Enersis SA 7.375% 2014 | 6,800 | 7,531 | ||||||
Abu Dhabi National Energy Co. PJSC (TAQA) 6.165% 20171 | 2,000 | 2,041 | ||||||
634,472 | ||||||||
CONSUMER STAPLES — 3.56% | ||||||||
SUPERVALU INC., Term Loan B, 1.498% 20122,3,4 | 1,194 | 1,193 | ||||||
SUPERVALU INC. 7.50% 2012 | 3,860 | 4,130 | ||||||
Albertson’s, Inc. 7.25% 2013 | 4,990 | 5,264 | ||||||
SUPERVALU INC. 7.50% 2014 | 1,000 | 1,020 | ||||||
SUPERVALU INC. 8.00% 2016 | 51,350 | 52,249 | ||||||
Albertson’s, Inc. 7.45% 2029 | 2,684 | 2,281 | ||||||
Albertson’s, Inc. 8.00% 2031 | 31,850 | 27,550 | ||||||
Stater Bros. Holdings Inc. 8.125% 2012 | 38,005 | 38,385 | ||||||
Stater Bros. Holdings Inc. 7.75% 2015 | 46,405 | 47,101 | ||||||
Rite Aid Corp. 8.625% 2015 | 14,500 | 12,470 | ||||||
Rite Aid Corp., Term Loan T4, 9.50% 20152,3,4 | 15,000 | 15,719 | ||||||
Rite Aid Corp. 9.75% 2016 | 15,000 | 16,200 | ||||||
Rite Aid Corp. 10.25% 2019 | 10,325 | 11,074 | ||||||
Rite Aid Corp. 7.70% 2027 | 7,500 | 4,613 | ||||||
Rite Aid Corp. 6.875% 2028 | 11,177 | 6,427 | ||||||
Duane Reade Inc. 11.75% 2015 | 50,860 | 64,656 | ||||||
Smithfield Foods, Inc., Series B, 7.75% 2013 | 2,300 | 2,335 | ||||||
Smithfield Foods, Inc. 10.00% 20141 | 40,400 | 45,248 | ||||||
Smithfield Foods, Inc. 7.75% 2017 | 9,350 | 9,233 | ||||||
Tops Markets 10.125% 20151 | 47,500 | 49,638 | ||||||
Constellation Brands, Inc. 8.375% 2014 | 6,775 | 7,359 | ||||||
Constellation Brands, Inc. 7.25% 2017 | 31,375 | 32,316 | ||||||
Tyson Foods, Inc. 10.50% 2014 | 27,025 | 32,227 | ||||||
Ingles Markets, Inc. 8.875% 2017 | 21,225 | 22,286 | ||||||
BFF International Ltd. 7.25% 20201 | 20,350 | 20,757 | ||||||
Elizabeth Arden, Inc. 7.75% 2014 | 12,368 | 12,461 | ||||||
CEDC Finance Corp. 9.125% 20161 | 11,500 | 12,190 | ||||||
Cott Beverages Inc. 8.375% 20171 | 8,700 | 9,004 | ||||||
TreeHouse Foods, Inc. 7.75% 2018 | 5,600 | 5,824 | ||||||
571,210 | ||||||||
ENERGY — 2.12% | ||||||||
Petroplus Finance Ltd. 6.75% 20141 | 41,000 | 37,105 | ||||||
Petroplus Finance Ltd. 7.00% 20171 | 50,200 | 43,423 | ||||||
Petroplus Finance Ltd. 9.375% 20191 | 14,975 | 13,702 | ||||||
General Maritime Corp. 12.00% 20171 | 33,500 | 36,012 | ||||||
Forest Oil Corp. 8.50% 2014 | 6,800 | 7,208 | ||||||
Forest Oil Corp. 7.25% 2019 | 17,750 | 17,927 | ||||||
TransCanada PipeLines Ltd. 6.35% 20672 | 22,645 | 21,577 | ||||||
Williams Companies, Inc. 6.375% 20101 | 6,000 | 6,112 | ||||||
Williams Companies, Inc. 7.875% 2021 | 1,222 | 1,442 | ||||||
Williams Companies, Inc. 8.75% 2032 | 10,638 | 12,996 | ||||||
Overseas Shipholding Group, Inc. 8.125% 2018 | 19,300 | 19,252 | ||||||
Williams Partners L.P. and Williams Partners Finance Corp. 7.50% 2011 | 4,400 | 4,662 | ||||||
Williams Partners L.P. and Williams Partners Finance Corp. 7.25% 2017 | 12,125 | 13,861 | ||||||
Pemex Project Funding Master Trust 5.75% 2018 | 5,850 | 6,050 | ||||||
Pemex Project Funding Master Trust 6.625% 2035 | 6,500 | 6,412 | ||||||
Drummond Co., Inc. 7.375% 2016 | 12,445 | 12,196 | ||||||
Gaz Capital SA 6.51% 20221 | 10,000 | 9,988 | ||||||
Gaz Capital SA 7.288% 20371 | 1,800 | 1,811 | ||||||
Enbridge Energy Partners, LP 9.875% 2019 | 3,250 | 4,230 | ||||||
Enbridge Energy Partners, LP 8.05% 20772 | 7,220 | 7,157 | ||||||
Enterprise Products Operating LLC 7.00% 20672 | 10,055 | 9,255 | ||||||
Teekay Corp. 8.50% 2020 | 8,700 | 9,135 | ||||||
Denbury Resources Inc. 9.75% 2016 | 5,000 | 5,525 | ||||||
Denbury Resources Inc. 8.25% 2020 | 3,100 | 3,301 | ||||||
Tengizchevroil Finance Co. S.àr.l., Series A, 6.124% 20143 | 7,145 | 7,658 | ||||||
Continental Resources 8.25% 2019 | 1,800 | 1,917 | ||||||
Continental Resources 7.375% 20201 | 5,300 | 5,340 | ||||||
Petrobras International 5.75% 2020 | 2,780 | 2,862 | ||||||
Petrobras International 6.875% 2040 | 4,130 | 4,284 | ||||||
Kinder Morgan Energy Partners LP 9.00% 2019 | 3,520 | 4,399 | ||||||
Concho Resources Inc. 8.625% 2017 | 3,300 | 3,514 | ||||||
340,313 | ||||||||
Total corporate bonds, notes & loans | 13,655,353 | |||||||
BONDS & NOTES OF GOVERNMENTS & GOVERNMENT AGENCIES OUTSIDE THE U.S. — 3.08% | ||||||||
Brazilian Treasury Bill 6.00% 201011 | BRL60,254 | 34,093 | ||||||
Brazil (Federal Republic of) 10.00% 2017 | 63,600 | 32,100 | ||||||
Brazil (Federal Republic of) Global 8.00% 20183 | $ | 9,107 | 10,659 | |||||
Brazil (Federal Republic of) Global 10.25% 2028 | BRL15,000 | 8,556 | ||||||
Brazil (Federal Republic of) Global 7.125% 2037 | $ | 2,500 | 2,859 | |||||
Brazil (Federal Republic of) Global 11.00% 2040 | 5,185 | 6,966 | ||||||
Brazilian Treasury Bill 6.00% 204511 | BRL18,544 | 10,244 | ||||||
Turkey (Republic of) 14.00% 2011 | TRY30,550 | 21,138 | ||||||
Turkey (Republic of) 16.00% 2012 | 16,000 | 11,880 | ||||||
Turkey (Republic of) 7.50% 2017 | $ | 9,700 | 11,107 | |||||
Turkey (Republic of) 6.75% 2018 | 3,250 | 3,559 | ||||||
Turkey (Republic of) 6.75% 2040 | 2,500 | 2,469 | ||||||
Colombia (Republic of) Global 10.00% 2012 | 1,500 | 1,719 | ||||||
Colombia (Republic of) Global 10.75% 2013 | 8,550 | 10,431 | ||||||
Colombia (Republic of) Global 8.25% 2014 | 4,000 | 4,760 | ||||||
Colombia (Republic of) Global 12.00% 2015 | COP19,150,000 | 12,203 | ||||||
Colombia (Republic of) Global 11.75% 2020 | $ | 1,936 | 2,846 | |||||
Colombia (Republic of) Global 9.85% 2027 | COP12,085,000 | 7,434 | ||||||
Colombia (Republic of) Global 10.375% 2033 | $ | 823 | 1,179 | |||||
Colombia (Republic of) Global 7.375% 2037 | 4,139 | 4,656 | ||||||
United Mexican States Government, Series M10, 10.50% 2011 | MXN12,320 | 1,094 | ||||||
United Mexican States Government, Series MI10, 9.50% 2014 | 80,000 | 7,203 | ||||||
United Mexican States Government 5.00% 201611 | 65,037 | 6,165 | ||||||
United Mexican States Government, Series M20, 10.00% 2024 | 80,000 | 7,639 | ||||||
United Mexican States Government Global, Series A, 6.75% 2034 | $ | 6,105 | 6,746 | |||||
United Mexican States Government 4.00% 204011 | MXN58,936 | 4,654 | ||||||
Panama (Republic of) Global 7.125% 2026 | $ | 585 | 663 | |||||
Panama (Republic of) Global 8.875% 2027 | 6,500 | 8,418 | ||||||
Panama (Republic of) Global 6.70% 20363 | 22,768 | 24,305 | ||||||
Russian Federation 12.75% 2028 | 2,000 | 3,550 | ||||||
Russian Federation 7.50% 20303 | 21,956 | 25,414 | ||||||
Egypt (Arab Republic of) 9.10% 2010 | EGP50,497 | 9,200 | ||||||
Egypt (Arab Republic of) 9.10% 2010 | 3,130 | 572 | ||||||
Egypt (Arab Republic of) 11.50% 2011 | 9,380 | 1,763 | ||||||
Egypt (Arab Republic of) 9.10% 2012 | 18,225 | 3,317 | ||||||
Egypt (Arab Republic of) 11.625% 2014 | 49,265 | 9,645 | ||||||
Venezuela (Republic of) 5.375% 2010 | $ | 2,460 | 2,454 | |||||
Venezuela (Republic of) 10.75% 2013 | 6,000 | 5,895 | ||||||
Venezuela (Republic of) 8.50% 2014 | 1,250 | 1,094 | ||||||
Venezuela (Republic of) 7.65% 2025 | 8,455 | 5,538 | ||||||
Venezuela (Republic of) 9.25% 2027 | 9,795 | 7,714 | ||||||
Venezuela (Republic of) 9.25% 2028 | 2,390 | 1,772 | ||||||
Polish Government, Series 0414, 5.75% 2014 | PLN51,554 | 18,622 | ||||||
Polish Government, Series 1017, 5.25% 2017 | 2,050 | 719 | ||||||
Polish Government 6.375% 2019 | $ | 3,535 | 3,890 | |||||
Uruguay (Republic of) 5.00% 201811 | UYU246,832 | 13,658 | ||||||
Uruguay (Republic of) 4.25% 20273,11 | 149,406 | 8,083 | ||||||
Argentina (Republic of) 0.146% 20122,3 | $ | 16,240 | 5,489 | |||||
Argentina (Republic of) 7.00% 2015 | 9,560 | 7,941 | ||||||
Argentina (Republic of) GDP-Linked 2035 | ARS84,135 | 1,464 | ||||||
Argentina (Republic of) GDP-Linked 2035 | $ | 12,377 | 934 | |||||
Argentina (Republic of) 0.63% 20383,11 | ARS189,088 | 5,816 | ||||||
Indonesia (Republic of) 10.375% 2014 | $ | 1,800 | 2,246 | |||||
Indonesia (Republic of) 6.875% 20171 | 1,000 | 1,125 | ||||||
Indonesia (Republic of) 6.875% 2018 | 5,000 | 5,612 | ||||||
Indonesia (Republic of) 6.875% 20181 | 3,725 | 4,181 | ||||||
Indonesia (Republic of) 6.625% 20371 | 2,500 | 2,581 | ||||||
South Africa (Republic of) 6.875% 2019 | 7,410 | 8,308 | ||||||
South Africa (Republic of) 5.50% 2020 | 4,950 | 5,037 | ||||||
Greek Government 6.10% 2015 | € | 9,535 | 12,924 | |||||
Croatian Government 6.75% 20191 | $ | 9,400 | 10,363 | |||||
South Korean Government 5.00% 2014 | KRW11,325,000 | 10,240 | ||||||
Philippines (Republic of) 6.375% 2034 | $ | 7,600 | 7,486 | |||||
Peru (Republic of) 7.125% 2019 | 2,945 | 3,419 | ||||||
Corporación Andina de Fomento 5.75% 2017 | 3,000 | 3,061 | ||||||
Dominican Republic 9.50% 20113 | 1,688 | 1,772 | ||||||
Dominican Republic 9.50% 20111,3 | 1,031 | 1,082 | ||||||
Thai Government 3.625% 2015 | THB73,500 | 2,287 | ||||||
494,013 | ||||||||
MORTGAGE-BACKED OBLIGATIONS3 — 1.16% | ||||||||
American Tower Trust I, Series 2007-1A, Class E, 6.249% 20371 | $ | 10,725 | 11,130 | |||||
American Tower Trust I, Series 2007-1A, Class F, 6.639% 20371 | 38,760 | 39,932 | ||||||
SBA CMBS Trust, Series 2006-1A, Class F, 6.709% 20361 | 1,450 | 1,470 | ||||||
SBA CMBS Trust, Series 2006-1A, Class G, 6.904% 20361 | 5,950 | 6,206 | ||||||
SBA CMBS Trust, Series 2006-1A, Class H, 7.389% 20361 | 11,615 | 12,078 | ||||||
SBA CMBS Trust, Series 2006-1A, Class J, 7.825% 20361 | 12,950 | 13,466 | ||||||
WaMu Mortgage Pass-Through Certificates Trust, Series 2006-AR12, Class 1-A2, 5.782% 20362 | 15,000 | 11,578 | ||||||
WaMu Mortgage Pass-Through Certificates Trust, Series 2007-HY6, Class 2-A3, 5.727% 20372 | 22,213 | 17,548 | ||||||
Crown Castle Towers LLC, Series 2006-1, Class F, 6.65% 20361 | 20,690 | 21,719 | ||||||
Crown Castle Towers LLC, Series 2006-1, Class G, 6.795% 20361 | 2,750 | 2,883 | ||||||
IndyMac IMSC Mortgage Loan Trust, Series 2007-F2, Class 2-A-1, 6.50% 2037 | 16,539 | 10,040 | ||||||
Wells Fargo Mortgage-backed Securities Trust, Series 2006-AR4, Class 2-A-4, 5.743% 20362 | 6,000 | 4,958 | ||||||
Morgan Stanley Mortgage Loan Trust, Series 2005-3AR, Class 3-A, 4.435% 20352 | 6,688 | 4,652 | ||||||
Citicorp Mortgage Securities, Inc. 5.50% 2035 | 4,771 | 4,427 | ||||||
Bear Stearns ARM Trust, Series 2006-2, Class 2-A-1, 5.65% 20362 | 5,807 | 4,019 | ||||||
Lehman Mortgage Trust, Series 2006-6, Class 3-A-9, 5.50% 2036 | 5,774 | 3,504 | ||||||
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-9, Class 2-A2, 5.854% 20362 | 5,708 | 3,438 | ||||||
Countrywide Alternative Loan Trust, Series 2007-14T2, Class A-4, 0.596% 20372 | 7,142 | 3,354 | ||||||
Washington Mutual Mortgage, WMALT Series 2007-2, Class 3-A-1, 5.50% 2022 | 3,587 | 3,159 | ||||||
Banc of America Mortgage Securities, Inc., Series 2005-E, Class 4-A1, 5.376% 20352 | 2,940 | 2,647 | ||||||
Banc of America Funding Trust, Series 2006-7, Class T-2-A-1, 5.878% 2036 | 4,054 | 2,532 | ||||||
CS First Boston Mortgage Securities Corp., Series 2007-1, Class 1-A-6A, 5.863% 20372 | 1,994 | 1,103 | ||||||
185,843 | ||||||||
U.S. TREASURY BONDS & NOTES — 0.34% | ||||||||
U.S. Treasury 1.375% 2012 | 10,000 | 10,023 | ||||||
U.S. Treasury 3.25% 2016 | 20,000 | 20,254 | ||||||
U.S. Treasury 6.00% 2026 | 21,000 | 24,777 | ||||||
55,054 | ||||||||
ASSET-BACKED OBLIGATIONS3 — 0.04% | ||||||||
AmeriCredit Automobile Receivables Trust, Series 2010-1, Class D, 6.65% 2017 | 2,500 | 2,514 | ||||||
CWHEQ Revolving Home Equity Loan Trust, Series 2006-I, Class 2-A, FSA insured, 0.37% 20372 | 2,977 | 2,310 | ||||||
Aesop Funding II LLC, Series 2010-3A, Class B, 6.74% 20161,9 | 2,000 | 2,012 | ||||||
6,836 | ||||||||
MUNICIPALS — 0.01% | ||||||||
State of Connecticut, Mohegan Tribe of Indians, Gaming Auth. Priority Distribution Payment, Public Improvement Bonds, | ||||||||
Series 2003, 5.25% 2033 | 2,500 | 1,829 | ||||||
Total bonds, notes & other debt instruments (cost: $13,566,573,000) | 14,398,928 | |||||||
Principal amount | Value | |||||||
Convertible securities — 1.19% | (000 | ) | (000 | ) | ||||
INFORMATION TECHNOLOGY — 0.82% | ||||||||
Advanced Micro Devices, Inc. 6.00% convertible notes 2015 | $ | 68,742 | $ | 66,250 | ||||
Advanced Micro Devices, Inc. 5.75% convertible notes 2012 | 6,218 | 6,226 | ||||||
Linear Technology Corp., Series A, 3.00% convertible notes 2027 | 61,000 | 59,628 | ||||||
132,104 | ||||||||
INDUSTRIALS — 0.26% | ||||||||
Suntech Power Holdings Co., Ltd. 3.00% convertible notes 2013 | 25,000 | 21,437 | ||||||
UAL Corp. 4.50% convertible notes 2021 | 19,803 | 19,536 | ||||||
40,973 | ||||||||
FINANCIALS — 0.08% | ||||||||
Alexandria Real Estate Equities, Inc. 8.00% convertible notes 20291 | 1,197 | 2,098 | ||||||
Alexandria Real Estate Equities, Inc. 3.70% convertible notes 20271 | 5,000 | 4,925 | ||||||
Boston Properties, Inc. 2.875% convertible notes 2037 | 4,000 | 4,005 | ||||||
Equity Residential 3.85% convertible notes 2026 | 3,500 | 3,517 | ||||||
14,545 | ||||||||
CONSUMER DISCRETIONARY — 0.03% | ||||||||
Saks Inc. 2.00% convertible notes 2024 | 4,167 | 3,969 | ||||||
Total convertible securities (cost: $163,820,000) | 191,591 | |||||||
Preferred securities — 1.54% | Shares | |||||||
FINANCIALS — 1.20% | ||||||||
Barclays Bank PLC 7.434%1,2 | 39,626,000 | 39,626 | ||||||
Barclays Bank PLC 6.86%1,2 | 18,902,000 | 16,823 | ||||||
Barclays Bank PLC 8.55%1,2 | 13,934,000 | 14,143 | ||||||
JPMorgan Chase & Co., Series I, 7.90%2 | 28,770,000 | 30,775 | ||||||
Swire Pacific Ltd. 8.84% cumulative guaranteed perpetual capital securities1 | 1,125,000 | 28,125 | ||||||
Wells Fargo & Co., Series K, 7.98%2 | 13,810,000 | 14,500 | ||||||
Wachovia Capital Trust III 5.80%2 | 1,000,000 | 858 | ||||||
RBS Capital Trust II 6.425% noncumulative trust2 | 14,985,000 | 9,665 | ||||||
Lloyds Banking Group PLC 6.413%1,2 | 6,450,000 | 3,854 | ||||||
Lloyds Banking Group PLC 6.657% preference shares1,2 | 5,550,000 | 3,316 | ||||||
Bank of America Corp., Series K, 8.00% noncumulative2 | 6,250,000 | 6,386 | ||||||
GMAC LLC, Series G, 7.00%1 | 7,226 | 5,508 | ||||||
Citigroup Inc. 6.00% | 209,194 | 3,964 | ||||||
Shinsei Finance II (Cayman) Ltd. 7.16% noncumulative1,2 | 5,400,000 | 3,696 | ||||||
Banco Bilbao Vizcaya Argentaria, SA, 5.919%2 | 4,000,000 | 3,335 | ||||||
ILFC E-Capital Trust II 6.25%1,2 | 2,970,000 | 2,317 | ||||||
BNP Paribas 7.195%1,2 | 2,100,000 | 2,048 | ||||||
Standard Chartered PLC 7.014% noncumulative redeemable preference shares1,2 | 2,200,000 | 2,031 | ||||||
SMFG Preferred Capital USD 3 Ltd. 9.50%1,2 | 315,000 | 358 | ||||||
Fannie Mae, Series O, 0%1,2,12 | 150,000 | 262 | ||||||
191,590 | ||||||||
CONSUMER DISCRETIONARY — 0.34% | ||||||||
Gray Television Inc., Series D, 17.00%1,9,10,12 | 64,500,000 | 54,825 | ||||||
Total preferred securities (cost: $227,117,000) | 246,415 | |||||||
Value | ||||||||
Common stocks — 2.20% | Shares | (000 | ) | |||||
MATERIALS — 0.55% | ||||||||
Georgia Gulf Corp.8,12 | 4,809,206 | $ | 88,922 | |||||
FINANCIALS — 0.53% | ||||||||
Citigroup Inc.12 | 10,711,696 | 43,383 | ||||||
Bank of America Corp. | 2,088,132 | 37,273 | ||||||
CIT Group Inc.12 | 124,904 | 4,866 | ||||||
85,522 | ||||||||
INDUSTRIALS — 0.43% | ||||||||
Delta Air Lines, Inc.12 | 2,309,268 | 33,692 | ||||||
Nortek, Inc.8,12 | 793,647 | 32,540 | ||||||
World Color Press Inc.12 | 124,106 | 1,483 | ||||||
UAL Corp.12 | 22,911 | 448 | ||||||
68,163 | ||||||||
TELECOMMUNICATION SERVICES — 0.33% | ||||||||
AT&T Inc. | 1,000,000 | 25,840 | ||||||
American Tower Corp., Class A12 | 538,967 | 22,965 | ||||||
Sprint Nextel Corp., Series 112 | 777,508 | 2,955 | ||||||
CenturyTel, Inc. | 53,258 | 1,888 | ||||||
XO Holdings, Inc.12 | 4,746 | 4 | ||||||
53,652 | ||||||||
CONSUMER DISCRETIONARY — 0.15% | ||||||||
Ford Motor Co.12 | 1,620,210 | 20,366 | ||||||
Time Warner Cable Inc. | 39,816 | 2,123 | ||||||
Charter Communications, Inc., Class A12 | 39,810 | 1,373 | ||||||
Adelphia Recovery Trust, Series ACC-112 | 16,413,965 | 574 | ||||||
Adelphia Recovery Trust, Series Arahova12 | 1,773,964 | 302 | ||||||
Adelphia Recovery Trust, Series ACC-6B9,12 | 3,619,600 | 18 | ||||||
Mobil Travel Guide, Inc.9,10,12 | 83,780 | 21 | ||||||
American Media Operations, Inc.1,8,9,12 | 823,272 | 8 | ||||||
24,785 | ||||||||
INFORMATION TECHNOLOGY — 0.11% | ||||||||
Micron Technology, Inc.1,12 | 678,656 | 7,051 | ||||||
Micron Technology, Inc.12 | 424,160 | 4,407 | ||||||
Fairchild Semiconductor International, Inc.12 | 500,000 | 5,325 | ||||||
HSW International, Inc.1,9,12 | 25,710 | 29 | ||||||
16,812 | ||||||||
HEALTH CARE — 0.08% | ||||||||
UnitedHealth Group Inc. | 375,000 | 12,251 | ||||||
Clarent Hospital Corp. Liquidating Trust8,9,12 | 576,849 | 23 | ||||||
12,274 | ||||||||
CONSUMER STAPLES — 0.02% | ||||||||
Winn-Dixie Stores, Inc.12 | 194,677 | 2,432 | ||||||
Total common stocks (cost: $324,033,000) | 352,562 | |||||||
Value | ||||||||
Warrants — 0.00% | Shares | (000 | ) | |||||
INDUSTRIALS — 0.00% | ||||||||
World Color Press Inc., Series I, warrants, expire 201412 | 70,338 | $ | 369 | |||||
World Color Press Inc., Series II, warrants, expire 201412 | 70,338 | 211 | ||||||
Atrium Corp., warrants, expire 20181,9,12 | 21,012 | — | ||||||
580 | ||||||||
CONSUMER DISCRETIONARY — 0.00% | ||||||||
Charter Communications, Inc., warrants, expire 201412 | 13,390 | 80 | ||||||
Total warrants (cost: $295,000) | 660 | |||||||
Principal amount | ||||||||
Short-term securities — 4.04% | (000 | ) | ||||||
Freddie Mac 0.14%–0.24% due 4/19–8/10/2010 | $ | 163,540 | 163,502 | |||||
Fannie Mae 0.17%–0.54% due 5/24–12/3/2010 | 114,200 | 114,095 | ||||||
U.S. Treasury Bills 0.22%–0.34% due 5/6–7/15/2010 | 104,700 | 104,663 | ||||||
Coca-Cola Co. 0.22% due 5/12–5/13/20101 | 81,500 | 81,486 | ||||||
Federal Home Loan Bank 0.05%–0.178% due 4/21–6/23/2010 | 69,800 | 69,784 | ||||||
United Parcel Service Inc. 0.05% due 4/1/20101 | 50,000 | 50,000 | ||||||
JPMorgan Chase & Co. 0.23% due 7/14/2010 | 26,000 | 25,978 | ||||||
Hewlett-Packard Co. 0.10% due 4/6/20101 | 20,100 | 20,100 | ||||||
Straight-A Funding LLC 0.18% due 4/22/20101 | 19,100 | 19,098 | ||||||
Total short-term securities (cost: $648,585,000) | 648,706 | |||||||
Total investment securities (cost: $14,930,423,000) | 15,838,862 | |||||||
Other assets less liabilities | 209,270 | |||||||
Net assets | $ | 16,048,132 |
1Purchased 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 $3,984,246,000, which represented 24.83% of the net assets of the fund. |
2Coupon rate may change periodically. |
3Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date. |
4Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $1,183,268,000, which represented 7.37% of the net assets of the fund. |
5Payment in kind; the issuer has the option of paying additional securities in lieu of cash. |
6Step bond; coupon rate will increase at a later date. |
7Scheduled interest and/or principal payment was not received. |
8Represents an affiliated company as defined under the Investment Company Act of 1940. |
9Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $138,363,000, which represented .86% of the net assets of the fund. |
10Purchased 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. |
Percent | |||||||||||||
Acquisition | Cost | Value | of net | ||||||||||
date(s) | (000 | ) | (000 | ) | assets | ||||||||
NXP BV and NXP Funding LLC 10.00% 2013 | 7/17/2009 | $ | 62,348 | $ | 82,443 | .52 | % | ||||||
Gray Television Inc., Series D, 17.00% | 6/26/2008–7/15/2008 | 61,275 | 54,825 | .34 | |||||||||
Mobile Travel Guide, Inc. | 12/17/2007 | 21 | 21 | — | |||||||||
Total restricted securities | $ | 123,644 | $ | 137,289 | .86 | % |
11Index-linked bond whose principal amount moves with a government retail price index. |
12Security 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
KRW = South Korean won
MXN = Mexican pesos
PLN = Polish zloty
THB = Thai baht
TRY = 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 the fund’s summary prospectus and 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.
MFGEFP-921-0510O-S21514
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 c onsider 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: May 28, 2010 |
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: May 28, 2010 |
By /s/ Ari M. Vinocor |
Ari M. Vinocor, Treasurer and Principal Financial Officer |
Date: May 28, 2010 |