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: 811-05888
SMALLCAP World Fund, Inc.
(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, 2007
Chad L. Norton
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(Name and address of agent for service)
Copies to:
Mitchell E. Nichter
Paul, Hastings, Janofsky & Walker LLP
55 Second Street
Twenty-Fourth Floor
San Francisco, California 94105
(Counsel for the registrant)
ITEM 1 - Reports to Stockholders
[logo - American Funds®]
The right choice for the long term®
SMALLCAP World Fund
[photo of a globe sitting on a table]
Semi-annual report for the six months ended March 31, 2007
SMALLCAP World Fund® seeks long-term growth of capital through investments in smaller companies in the United States and around the world.
This fund is one of the 30 American Funds. The organization ranks among the nation’s three largest mutual fund families. For 75 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.
Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. For current information and month-end results, visit americanfunds.com. Fund results shown, unless otherwise indicated, are at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower.
Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2007:
Class A shares | 1 year | 5 years | 10 years | |||||||
Reflecting 5.75% maximum sales charge | +9.28 | % | +13.97 | % | +9.94 | % |
The total annual fund operating expense ratio for Class A shares as of the most recent fiscal year-end was 1.08%. This figure does not reflect a fee waiver currently in effect; therefore, the actual expense ratio is lower.
The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased it to 10% on April 1, 2005. Fund results shown reflect actual expenses, with the waiver applied. Fund results would have been lower without the waiver. Please see the Financial Highlights table on pages 26 to 29 for details.
Results for other share classes can be found on page 32.
Investing outside the United States is subject to additional risks, such as currency fluctuations and political instability, which are detailed in the fund’s prospectus. Investing in small-capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies.
Fellow shareholders:
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SMALLCAP World Fund, with investments in small-capitalization companies in the United States and around the world, returned a solid 18.0% for the six months ended March 31, 2007. The fund’s global focus helped, as the returns for non-U.S. stock markets were better than the return for the U.S. market.
The fund’s result, which includes a reinvested dividend of about $0.70 per share and capital gain distribution of about $3.61 per share, came in slightly ahead of both its peer group and primary benchmark. The Lipper Global Small-Cap Funds Average rose 17.1% and the unmanaged S&P/Citigroup Global Index gained 17.9%. SMALLCAP also surpassed the 7.4% return of the unmanaged Standard & Poor’s 500 Composite Index, a broad measure of the U.S. stock market.
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Results at a glance
For periods ended March 31, 2007 (with all distributions reinvested) | ||||||||||||||||
Total returns | Average annual total returns | |||||||||||||||
6 months | 1 year | 5 years | 10 years | Lifetime* | ||||||||||||
SMALLCAP World Fund | +18.0 | % | +15.9 | % | +15.3 | % | +10.6 | % | +11.9 | % | ||||||
S&P/Citigroup | ||||||||||||||||
Global/World Indexes | +17.9 | +15.3 | +19.6 | +11.7 | +10.8 | |||||||||||
Lipper Global Small-Cap | ||||||||||||||||
Funds Average | +17.1 | +13.2 | +15.0 | +11.6 | +12.1 | |||||||||||
*Since April 30, 1990. |
All market indexes cited in this report are unmanaged and their returns include reinvestment of all distributions. Returns for the S&P/Citigroup Global/World Indexes reflect a combination of two S&P/Citigroup Global indexes and two S&P/Citigroup World indexes that corresponds to the market capitalization ranges used by the fund during comparable periods. The S&P/Citigroup Global indexes, which track more than 8,000 publicly traded stocks around the world with market capitalizations less than $3 billion and less than $2 billion, were used from May 2006 to the present and May 2004 to April 2006, respectively. This index better reflects the fund’s investments in developing countries during this period. The S&P/Citigroup World indexes, which only include stocks in developed countries and reflect market capitalizations less than $1.5 billion and less than $1.2 billion, were used from 2000 to April 2004 and from 1990 to 1999, respectively.
[End Sidebar]
We are pleased to report continued solid results for SMALLCAP. However, we remind investors that markets are often cyclical and caution that the fund’s double-digit annual return over the last several years does not ensure that returns will continue at the same pace.
Portfolio review
In the six-month period, the fund’s assets invested in the United States decreased from 38.9% to 36.7%, as shown in the table below. Assets invested in Europe grew to 18.3% from 14.0%; the percentage of investments in the Asia/Pacific region remained largely the same at about 29%. European country returns were very healthy, including Norway’s 35.3%* and Austria’s 25.8% gains. The shift away from U.S. stocks, however, is not an indication of a lack of interesting small-cap opportunities in the United States. In fact, we continue to strongly believe in the ability of many U.S. small businesses to innovate and grow.
*Country returns are based on MSCI indexes, expressed in U.S. dollars, and assume reinvestment of dividends.
The attractive stock valuations in markets outside the United States and our concerns about the recent weakness of the U.S. dollar have resulted in this greater global diversification of the fund. The prospects for economies around the world appear to us much brighter than those for U.S. growth. In fact, SMALLCAP’s list of the top 25 companies with the greatest stock percentage gains over the fiscal year includes only four U.S. companies.
For quite some time, we have positioned the fund to take advantage of the growing global consumerism. As of March 31, 2007, more than a fifth of the fund’s net assets were invested in the consumer discretionary sector, which includes companies that offer a vast array of products and services for consumers who have a portion of their income available beyond food and shelter. With a larger number of people around the world at middle-class or higher levels of discretionary spending, the companies in sectors catering to them have done well. For example, the stock of Banyan Tree Holdings, a Singapore-based luxury resort operator, rose 169.8%; Jumbo, a Greek toy retailer, was up 104.3%; and RNB Retail and Brands, a Swedish fashion retailer, was up 55.2%.
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As of March 31, 2007 | Percent of net assets | |||
United States | 36.7 | % | ||
Asia & Pacific Basin | 29.2 | |||
Europe | 18.3 | |||
Other (including Canada & Latin America) | 8.8 | |||
Short-term securities & other assets less liabilities | 7.0 |
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As of September 30, 2006 | Percent of net assets | |||
United States | 38.9 | % | ||
Asia & Pacific Basin | 29.4 | |||
Europe | 14.0 | |||
Other (including Canada & Latin America) | 8.2 | |||
Short-term securities & other assets less liabilities | 9.5 |
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[End Sidebar]
Metals and materials companies also had a good six months. Sino-Forest, a Canadian plantation group that operates in China, appreciated more than any other stock of the fund’s 599 holdings, rising 197.4%. Two Canada-based mining companies, Eastern Platinum and Ivanhoe Mines, were very strong, up 67.8% and 87.8%, respectively. European Minerals, based in England, rose 58.8%.
Some of the fund’s stock picks did not do as well. Investments in some software companies, airlines, mortgage companies and semiconductor-related businesses lagged. Several investments in Japan and Brazil also hurt the fund during the period.
A long-term perspective
At SMALLCAP World Fund, we continually invest in our research process by hiring additional investment professionals. The depth and quality of our research resources is truly the backbone of our organization. We have never had more resources at our disposal or felt better about the overall skills and experience of our team as we do today. It is this foundation of research and perspective on which the fund is built. And it is this capacity that allows us to know and invest in small companies all around the globe.
As always, we thank all our shareholders for your trust in us. We remain true to our core investment philosophy by taking a conservative, long-term approach, emphasizing strong research and building our portfolio one stock at a time.
Cordially,
/s/ Gordon Crawford
Gordon Crawford
Vice Chairman and Principal Executive Officer
/s/ Gregory W. Wendt
Gregory W. Wendt
President
May 9, 2007
For current information about the fund, visit americanfunds.com.
Summary investment portfolio, March 31, 2007
unaudited
The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings. For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.
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[end pie chart]
Industry sector diversification (percent of net assets) | ||||
Consumer discretionary | 21.05 | % | ||
Industrials | 15.18 | |||
Information technology | 12.40 | |||
Financials | 10.74 | |||
Health care | 10.50 | |||
Other industries | 23.09 | |||
Short-term securities & other assets less liabilities | 7.04 |
Country diversification (percent of net assets) | ||||
United States | 36.7 | % | ||
Euro zone (*) | 9.6 | |||
South Korea | 7.6 | |||
Canada | 5.8 | |||
United Kingdom | 4.2 | |||
India | 3.1 | |||
Australia | 3.0 | |||
Japan | 2.9 | |||
Hong Kong | 2.4 | |||
Singapore | 2.2 | |||
Taiwan | 2.1 | |||
Other countries | 13.4 | |||
Short-term securities & other assets less liabilities | 7.0 | |||
(*)Countries using the common currency, the euro, are Austria, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Slovenia and Spain. |
Shares | Market | Percent | ||||||||
value | of net | |||||||||
Common stocks - 92.66% | (000 | ) | assets | |||||||
Consumer discretionary - 21.05% | ||||||||||
Jumbo SA (1) | 4,824,956 | $ | 149,567 | .67 | % | |||||
Schibsted ASA | 3,138,000 | 138,714 | .62 | |||||||
Central European Media Enterprises Ltd., Class A (2) | 1,270,500 | 112,439 | .50 | |||||||
Fourlis (1) | 4,074,000 | 95,343 | .43 | |||||||
CarMax, Inc. (2) | 3,800,000 | 93,252 | .42 | |||||||
Praktiker Bau- und Heimwerkermärkte Holding AG | 2,566,383 | 90,743 | .41 | |||||||
Lions Gate Entertainment Corp. (1) (2) | 7,728,500 | 88,259 | .40 | |||||||
Tupperware Brands Corp. (1) | 3,300,000 | 82,269 | .37 | |||||||
Cyrela Brazil Realty SA, ordinary nominative | 8,671,000 | 80,637 | .36 | |||||||
Aristocrat Leisure Ltd. | 6,044,143 | 80,310 | .36 | |||||||
Debenhams PLC | 23,270,000 | 79,945 | .36 | |||||||
Big Lots, Inc. (2) | 2,550,000 | 79,764 | .36 | |||||||
American Axle & Manufacturing Holdings, Inc. (1) | 2,850,000 | 77,947 | .35 | |||||||
Banyan Tree Holdings Ltd. (1) (2) | 53,883,000 | 77,808 | .35 | |||||||
Saks Inc. (2) | 3,730,600 | 77,746 | .35 | |||||||
Lojas Renner SA, ordinary nominative | 5,950,000 | 77,269 | .35 | |||||||
Scientific Games Corp., Class A (2) | 2,300,000 | 75,509 | .34 | |||||||
Arbitron Inc. (1) | 1,496,760 | 70,273 | .31 | |||||||
CKE Restaurants, Inc. (1) | 3,725,000 | 70,253 | .31 | |||||||
Other securities | 2,997,963 | 13.43 | ||||||||
4,696,010 | 21.05 | |||||||||
Industrials - 15.18% | ||||||||||
Samsung Engineering Co., Ltd. (1) | 2,587,640 | 161,229 | .72 | |||||||
Container Corp. of India Ltd. | 2,891,794 | 130,701 | .59 | |||||||
MSC Industrial Direct Co., Inc., Class A | 2,175,000 | 101,529 | .45 | |||||||
GS Engineering & Construction Corp. | 1,072,127 | 95,984 | .43 | |||||||
Murray & Roberts Holdings Ltd. | 12,288,000 | 94,638 | .42 | |||||||
Michael Page International PLC | 8,346,190 | 87,993 | .39 | |||||||
JetBlue Airways Corp. (2) | 7,450,000 | 85,749 | .38 | |||||||
Buhrmann NV | 6,238,600 | 84,096 | .38 | |||||||
Klöckner & Co AG (2) | 1,447,000 | 79,628 | .36 | |||||||
A-TEC Industries AG (1) (2) | 369,550 | 78,375 | .35 | |||||||
Corrections Corporation of America (2) | 1,425,000 | 75,254 | .34 | |||||||
LS Industrial Systems Co., Ltd. (1) | 1,950,000 | 72,360 | .32 | |||||||
Other securities | 2,239,232 | 10.05 | ||||||||
3,386,768 | 15.18 | |||||||||
Information technology - 12.40% | ||||||||||
Kingboard Chemical Holdings Ltd. (1) | 49,934,200 | 209,945 | .94 | |||||||
Novell, Inc. (1) (2) | 17,978,000 | 129,801 | .58 | |||||||
Tripod Technology Corp. (1) | 24,979,920 | 102,683 | .46 | |||||||
CNET Networks, Inc. (1) (2) | 10,655,000 | 92,805 | .42 | |||||||
ValueClick, Inc. (2) | 3,200,000 | 83,616 | .37 | |||||||
Semtech Corp. (1) (2) | 5,800,000 | 78,184 | .35 | |||||||
SEEK Ltd. | 13,202,108 | 77,014 | .34 | |||||||
Other securities | 1,992,175 | 8.94 | ||||||||
2,766,223 | 12.40 | |||||||||
Financials - 10.74% | ||||||||||
Daegu Bank, Ltd. (1) | 10,570,000 | 192,182 | .86 | |||||||
Pusan Bank (1) | 11,726,500 | 174,557 | .78 | |||||||
IndyMac Bancorp, Inc. | 3,613,200 | 115,803 | .52 | |||||||
ORCO PROPERTY GROUP SA (1) | 580,507 | 97,419 | .44 | |||||||
Greek Postal Savings Bank SA (2) | 3,672,400 | 93,016 | .42 | |||||||
MCB Bank Ltd. | 18,198,192 | 81,129 | .36 | |||||||
Indiabulls Financial Services Ltd. | 8,069,292 | 78,184 | .35 | |||||||
HDFC Bank Ltd. | 3,231,000 | 71,528 | .32 | |||||||
Other securities | 1,493,555 | 6.69 | ||||||||
2,397,373 | 10.74 | |||||||||
Health care - 10.50% | ||||||||||
Kyphon Inc. (1) (2) | 3,218,047 | 145,263 | .65 | |||||||
Beckman Coulter, Inc. | 1,950,000 | 124,586 | .56 | |||||||
Medicis Pharmaceutical Corp., Class A (1) | 3,520,000 | 108,486 | .49 | |||||||
Integra LifeSciences Holdings Corp. (1) (2) | 2,240,000 | 102,099 | .46 | |||||||
Advanced Medical Optics, Inc. (2) | 2,460,000 | 91,512 | .41 | |||||||
Mentor Corp. | 1,930,000 | 88,780 | .40 | |||||||
Other securities | 1,682,911 | 7.53 | ||||||||
2,343,637 | 10.50 | |||||||||
Energy - 6.27% | ||||||||||
OPTI Canada Inc. (1) (2) | 11,706,600 | 201,897 | ||||||||
OPTI Canada Inc. (1) (2) (3) | 420,000 | 7,244 | .94 | |||||||
Quicksilver Resources Inc. (1) (2) | 4,999,150 | 198,816 | .89 | |||||||
UrAsia Energy Ltd. (2) | 22,000,000 | 134,172 | .60 | |||||||
Paladin Resources Ltd (Canada) (2) | 9,025,000 | 71,405 | ||||||||
Paladin Resources Ltd (2) | 985,243 | 7,767 | .35 | |||||||
Oilexco Inc. (2) | 6,808,600 | 50,561 | ||||||||
Oilexco Inc. (United Kingdom) (2) (3) | 2,900,000 | 21,668 | ||||||||
Oilexco Inc. (2) (3) | 520,000 | 3,862 | .34 | |||||||
Denbury Resources Inc. (2) | 2,519,000 | 75,041 | .34 | |||||||
Denison Mines Corp. (2) | 6,000,000 | 73,705 | .33 | |||||||
Delta Petroleum Corp. (1) (2) | 3,029,000 | 69,546 | .31 | |||||||
Other securities | 483,187 | 2.17 | ||||||||
1,398,871 | 6.27 | |||||||||
Materials - 5.42% | ||||||||||
Yamana Gold Inc. | 8,715,000 | 126,185 | .57 | |||||||
Cleveland-Cliffs Inc | 1,700,000 | 108,817 | .49 | |||||||
Sino-Forest Corp. (1) (2) | 9,422,800 | 107,087 | .48 | |||||||
Inmet Mining Corp. | 1,500,000 | 82,632 | .37 | |||||||
Other securities | 785,310 | 3.51 | ||||||||
1,210,031 | 5.42 | |||||||||
Consumer staples - 3.16% | ||||||||||
Other securities | 705,617 | 3.16 | ||||||||
Telecommunication services - 1.94% | ||||||||||
DiGi.Com Bhd. | 19,308,700 | 104,477 | .47 | |||||||
Time Warner Telecom Inc., Class A (2) | 3,600,000 | 74,772 | .34 | |||||||
LG Telecom Ltd. (2) | 6,370,000 | 72,471 | .32 | |||||||
Other securities | 180,771 | .81 | ||||||||
432,491 | 1.94 | |||||||||
Utilities - 1.06% | ||||||||||
Other securities | 236,562 | 1.06 | ||||||||
Miscellaneous - 4.94% | ||||||||||
Other common stocks in initial period of acquisition | 1,102,491 | 4.94 | ||||||||
Total common stocks (cost: $15,045,497,000) | 20,676,074 | 92.66 | ||||||||
Preferred stocks - 0.06% | ||||||||||
Other - 0.06% | ||||||||||
Other securities | 12,507 | .06 | ||||||||
Total preferred stocks (cost: $8,833,000) | 12,507 | .06 | ||||||||
Rights & warrants - 0.07% | ||||||||||
Other - 0.07% | ||||||||||
Other securities | 15,213 | .07 | ||||||||
Miscellaneous - 0.00% | ||||||||||
Other rights & warrants in initial period of acquisition | 991 | .00 | ||||||||
Total rights & warrants (cost: $932,000) | 16,204 | .07 | ||||||||
Convertible securities - 0.09% | ||||||||||
Other - 0.09% | ||||||||||
Other securities | 20,041 | .09 | ||||||||
Total convertible securities (cost: $21,416,000) | 20,041 | .09 | ||||||||
Bonds & notes - 0.08% | ||||||||||
Other - 0.08% | ||||||||||
Other securities | 16,828 | .08 | ||||||||
Total bonds & notes (cost: $15,657,000) | 16,828 | .08 | ||||||||
Short-term securities - 6.79% | Principal amount (000 | ) | ||||||||
DaimlerChrysler Revolving Auto Conduit LLC 5.23%-5.25% due 4/3-6/1/2007 | $ | 178,841 | 178,005 | |||||||
DaimlerChrysler Revolving Auto Conduit LLC II 5.24% due 6/11/2007 | 37,280 | 36,898 | .96 | |||||||
Mont Blanc Capital Corp. 5.225%-5.265% due 4/23-6/21/2007 (3) | 103,600 | 102,930 | ||||||||
ING (U.S.) Funding LLC 5.225%-5.24% due 5/1-6/15/2007 | 47,000 | 46,653 | .67 | |||||||
Amsterdam Funding Corp. 5.24%-5.25% due 4/11-4/26/2007 (3) | 125,400 | 125,063 | .56 | |||||||
Liberty Street Funding Corp. 5.24%-5.27% due 4/2-4/25/2007 (3) | 122,500 | 122,227 | .55 | |||||||
Old Line Funding, LLC 5.25%-5.265% due 4/5-5/8/2007 (3) | 110,000 | 109,713 | .49 | |||||||
American Honda Finance Corp. 5.22%-5.23% due 4/27-5/11/2007 | 77,200 | 76,790 | .34 | |||||||
Allied Irish Banks N.A. Inc. 5.24%-5.26% due 4/2-4/19/2007 (3) | 76,670 | 76,561 | .34 | |||||||
BASF AG 5.24%-5.25% due 5/22-5/23/2007 (3) | 74,200 | 73,654 | .33 | |||||||
Other securities | 567,787 | 2.55 | ||||||||
Total short-term securities (cost: $1,516,148,000) | 1,516,281 | 6.79 | ||||||||
Total investment securities (cost: $16,608,483,000) | 22,257,935 | 99.75 | ||||||||
Other assets less liabilities | 56,536 | .25 | ||||||||
Net assets | $ | 22,314,471 | 100.00 | % | ||||||
"Miscellaneous" securities include holdings in their initial period of acquisition that have not previously been publicly disclosed. | ||||||||||
"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 of that company. |
The fund's affiliated holdings listed below are either shown in the preceding summary investment portfolio |
or included in the market value of "Other securities" under their respective industry sectors. Further |
details on these holdings and related transactions during the six months ended March 31, 2007, appear below. |
Company | Beginning shares | Purchases | Sales | Ending shares | Dividend income (000 | ) | Market value of affiliates at 3/31/07 (000 | ) | |||||||||||
OPTI Canada Inc. (2) | 10,409,600 | 1,297,000 | - | 11,706,600 | $ | - | $ | 201,897 | |||||||||||
OPTI Canada Inc. (2) (3) | 420,000 | - | - | 420,000 | - | 7,244 | |||||||||||||
OPTI Canada Inc., warrants, expire 2008 (2) (3) (4) | 105,000 | - | - | 105,000 | - | 1,245 | |||||||||||||
Kingboard Chemical Holdings Ltd. | 45,946,000 | 3,988,200 | - | 49,934,200 | 1,180 | 209,945 | |||||||||||||
Kingboard Chemical Holdings Ltd., warrants, expire 2006 | 3,988,200 | - | 3,988,200 | - | - | - | |||||||||||||
Quicksilver Resources Inc. (2) | 4,999,150 | - | - | 4,999,150 | - | 198,816 | |||||||||||||
Daegu Bank, Ltd. | 10,399,890 | 170,110 | - | 10,570,000 | 5,354 | 192,182 | |||||||||||||
Pusan Bank | 11,477,500 | 249,000 | - | 11,726,500 | 4,421 | 174,557 | |||||||||||||
Samsung Engineering Co., Ltd. | 2,587,640 | - | - | 2,587,640 | 1,858 | 161,229 | |||||||||||||
Jumbo SA | 4,164,956 | 660,000 | - | 4,824,956 | 1,454 | 149,567 | |||||||||||||
Kyphon Inc. (2) | 3,145,600 | 399,647 | 327,200 | 3,218,047 | - | 145,263 | |||||||||||||
Novell, Inc. (2) | 5,394,100 | 12,583,900 | - | 17,978,000 | - | 129,801 | |||||||||||||
Medicis Pharmaceutical Corp., Class A | 3,695,000 | 50,000 | 225,000 | 3,520,000 | 216 | 108,486 | |||||||||||||
Sino-Forest Corp. (2) | 9,422,800 | - | - | 9,422,800 | - | 107,087 | |||||||||||||
Tripod Technology Corp. | 21,391,920 | 3,588,000 | - | 24,979,920 | - | 102,683 | |||||||||||||
Integra LifeSciences Holdings Corp. (2) | 2,189,500 | 50,500 | - | 2,240,000 | - | 102,099 | |||||||||||||
ORCO PROPERTY GROUP SA | 346,107 | 234,400 | - | 580,507 | - | 97,419 | |||||||||||||
Fourlis | 3,310,000 | 764,000 | - | 4,074,000 | - | 95,343 | |||||||||||||
CNET Networks, Inc. (2) | 10,655,000 | - | - | 10,655,000 | - | 92,805 | |||||||||||||
Lions Gate Entertainment Corp. (2) | 7,728,500 | - | - | 7,728,500 | - | 88,259 | |||||||||||||
Tupperware Brands Corp. | 2,500,000 | 800,000 | - | 3,300,000 | 1,419 | 82,269 | |||||||||||||
A-TEC Industries AG (2) | - | 369,550 | - | 369,550 | - | 78,375 | |||||||||||||
Semtech Corp. (2) | 5,900,000 | - | 100,000 | 5,800,000 | - | 78,184 | |||||||||||||
American Axle & Manufacturing Holdings, Inc. | 2,850,000 | - | - | 2,850,000 | 855 | 77,947 | |||||||||||||
Banyan Tree Holdings Ltd. (2) | 33,769,000 | 20,114,000 | - | 53,883,000 | - | 77,808 | |||||||||||||
LS Industrial Systems Co., Ltd. | 1,950,000 | - | - | 1,950,000 | 1,313 | 72,360 | |||||||||||||
Arbitron Inc. | 1,496,760 | - | - | 1,496,760 | 299 | 70,273 | |||||||||||||
CKE Restaurants, Inc. | 1,384,179 | 2,340,821 | - | 3,725,000 | 284 | 70,253 | |||||||||||||
Delta Petroleum Corp. (2) | 2,829,000 | 200,000 | - | 3,029,000 | - | 69,546 | |||||||||||||
Korea Kumho Petrochemical Co., Ltd. | 1,810,940 | - | - | 1,810,940 | 1,138 | 63,253 | |||||||||||||
AB Lindex | - | 5,118,000 | - | 5,118,000 | 3,186 | 61,273 | |||||||||||||
Xinao Gas Holdings Ltd. | 56,438,000 | - | - | 56,438,000 | - | 59,954 | |||||||||||||
Genesis Lease Ltd. (ADR) (2) | - | 2,165,000 | - | 2,165,000 | - | 56,615 | |||||||||||||
Interhyp AG (2) | 298,903 | 155,947 | - | 454,850 | - | 55,845 | |||||||||||||
Jackson Hewitt Tax Service Inc. | - | 1,700,000 | - | 1,700,000 | 256 | 54,706 | |||||||||||||
Ekornes ASA | 2,237,598 | - | - | 2,237,598 | - | 53,701 | |||||||||||||
SkillSoft PLC (ADR) (2) | 1,696,800 | 4,553,200 | - | 6,250,000 | - | 52,250 | |||||||||||||
Transmile Group Bhd. | - | 13,670,000 | - | 13,670,000 | - | 51,816 | |||||||||||||
CESC Ltd. | 5,829,000 | - | - | 5,829,000 | - | 50,980 | |||||||||||||
Citi Trends, Inc. (2) | 1,073,916 | 7,584 | - | 1,081,500 | - | 46,223 | |||||||||||||
Greatbatch, Inc. (2) | 1,744,400 | - | - | 1,744,400 | - | 44,482 | |||||||||||||
Vital Signs, Inc. | 580,000 | 255,000 | - | 835,000 | 104 | 43,403 | |||||||||||||
Michaniki SA | 3,935,000 | 415,000 | - | 4,350,000 | - | 33,740 | |||||||||||||
Michaniki SA, preference shares | - | 1,687,900 | - | 1,687,900 | - | 9,029 | |||||||||||||
Blue Nile, Inc. (2) | 860,375 | 180,000 | - | 1,040,375 | - | 42,302 | |||||||||||||
Unitech Corporate Parks PLC (2) | - | 23,399,700 | - | 23,399,700 | - | 42,038 | |||||||||||||
FoxHollow Technologies, Inc. (2) | 1,994,900 | - | - | 1,994,900 | - | 41,673 | |||||||||||||
Kenmare Resources PLC (2) | 39,316,000 | - | - | 39,316,000 | - | 37,542 | |||||||||||||
Kenmare Resources PLC, warrants, expire 2009 (2) | 5,775,000 | - | - | 5,775,000 | - | 3,072 | |||||||||||||
BA Energy Inc. (2) (3) (4) | 5,661,692 | - | - | 5,661,692 | - | 39,293 | |||||||||||||
BA Energy Inc., warrants, expire 2006 | 947,400 | - | 947,400 | - | - | - | |||||||||||||
Volcano Corp. (2) | 2,303,900 | - | 130,100 | 2,173,800 | - | 39,150 | |||||||||||||
Jammu and Kashmir Bank Ltd. | - | 2,617,000 | - | 2,617,000 | - | 39,052 | |||||||||||||
Unisteel Technology Ltd. | 9,655,000 | 10,027,000 | - | 19,682,000 | - | 38,154 | |||||||||||||
Apollo Hospitals Enterprise Ltd. | 3,275,000 | - | - | 3,275,000 | 227 | 37,906 | |||||||||||||
Pyeong San Co., Ltd. | - | 1,150,140 | - | 1,150,140 | 60 | 35,220 | |||||||||||||
Fleetwood Enterprises, Inc. (2) | - | 4,405,000 | - | 4,405,000 | - | 34,844 | |||||||||||||
IBT Education Ltd. | 21,727,690 | - | - | 21,727,690 | 730 | 34,327 | |||||||||||||
Synenco Energy Inc., Class A (2) | 1,815,000 | 336,000 | - | 2,151,000 | - | 22,150 | |||||||||||||
Synenco Energy Inc., Class A (2) (3) | 1,100,000 | - | - | 1,100,000 | - | 11,327 | |||||||||||||
Marchex, Inc., Class B | 2,125,000 | - | - | 2,125,000 | 43 | 32,555 | |||||||||||||
China Medical Technologies, Inc. (ADR) (2) | - | 1,395,500 | - | 1,395,500 | - | 32,194 | |||||||||||||
ORBCOMM Inc. (2) | - | 2,456,000 | - | 2,456,000 | - | 31,314 | |||||||||||||
Thanachart Capital PCL | 86,650,000 | - | 9,048,900 | 77,601,100 | 625 | 31,253 | |||||||||||||
Veeco Instruments Inc. (2) | 1,598,523 | - | - | 1,598,523 | - | 31,171 | |||||||||||||
ValueVision Media, Inc., Class A (2) | 2,400,000 | - | - | 2,400,000 | - | 29,664 | |||||||||||||
webMethods, Inc. (2) | - | 4,105,000 | - | 4,105,000 | - | 29,515 | |||||||||||||
Chart Industries, Inc. (2) | 1,613,500 | - | - | 1,613,500 | - | 29,301 | |||||||||||||
Centennial Bank Holdings, Inc. (2) (3) | 2,700,000 | - | - | 2,700,000 | - | 23,355 | |||||||||||||
Centennial Bank Holdings, Inc. (2) | 1,515,000 | - | 853,300 | 661,700 | - | 5,724 | |||||||||||||
WD-40 Co. | 900,000 | - | - | 900,000 | 423 | 28,539 | |||||||||||||
Hemtex AB | 1,175,000 | 260,000 | - | 1,435,000 | - | 28,239 | |||||||||||||
Entertainment Rights PLC (2) | - | 42,500,000 | - | 42,500,000 | - | 27,822 | |||||||||||||
Regal Petroleum PLC (2) | 7,817,000 | - | - | 7,817,000 | - | 27,240 | |||||||||||||
Internet Capital Group, Inc. (2) | 2,100,000 | 300,000 | - | 2,400,000 | - | 25,680 | |||||||||||||
I-Flow Corp. (2) | 1,100,000 | 619,000 | - | 1,719,000 | - | 25,338 | |||||||||||||
TK Corp. | - | 1,580,000 | - | 1,580,000 | 91 | 25,199 | |||||||||||||
Nien Made Enterprise Co., Ltd. | 26,156,000 | - | - | 26,156,000 | - | 24,429 | |||||||||||||
O2Micro International Ltd. (ADR) (2) | 3,055,000 | - | - | 3,055,000 | - | 24,135 | |||||||||||||
Kyeryong Construction Industrial Co., Ltd. | 493,190 | 66,060 | - | 559,250 | 427 | 22,685 | |||||||||||||
SFA Engineering Corp. | 553,700 | 38,440 | - | 592,140 | 596 | 22,036 | |||||||||||||
Echelon Corp. (2) | 2,000,000 | - | - | 2,000,000 | - | 21,080 | |||||||||||||
Bloomsbury Publishing PLC | 5,405,000 | - | - | 5,405,000 | 68 | 21,070 | |||||||||||||
Mineral Deposits Ltd. (2) | 16,220,000 | - | - | 16,220,000 | - | 19,712 | |||||||||||||
Ichia Technologies, Inc. (2) | 16,995,177 | - | - | 16,995,177 | - | 19,623 | |||||||||||||
Altra Holdings, Inc. (2) | - | 1,370,548 | - | 1,370,548 | - | 18,790 | |||||||||||||
CDNetworks Co., Ltd. (2) | - | 584,000 | - | 584,000 | - | 16,579 | |||||||||||||
Hung Poo Real Estate Development Corp. | 16,367,000 | - | - | 16,367,000 | - | 16,251 | |||||||||||||
Hythiam, Inc. (2) | 2,425,000 | 350,000 | 425,000 | 2,350,000 | - | 15,980 | |||||||||||||
Gentium SpA (ADR) (2) (3) | 450,000 | 300,000 | - | 750,000 | - | 14,768 | |||||||||||||
Gentium SpA (ADR), warrants, expire 2011 (2) (3) (4) | 90,000 | - | - | 90,000 | - | 716 | |||||||||||||
Spark Networks PLC (GDR) (2) | 1,300,000 | - | - | 1,300,000 | - | 7,997 | |||||||||||||
Spark Networks PLC (ADR) (2) | 1,103,000 | - | - | 1,103,000 | - | 7,015 | |||||||||||||
Halla Engineering & Construction Corp. | 626,000 | - | - | 626,000 | 281 | 14,610 | |||||||||||||
SupportSoft, Inc. (2) | 2,554,400 | - | - | 2,554,400 | - | 14,407 | |||||||||||||
YBM Sisa.com Inc. | 624,449 | 48,749 | - | 673,198 | 181 | 13,994 | |||||||||||||
Progressive Gaming International Corp. (2) | 2,600,000 | 173,000 | - | 2,773,000 | - | 12,479 | |||||||||||||
Nireus Aquaculture SA | - | 2,075,000 | - | 2,075,000 | - | 11,710 | |||||||||||||
Vical Inc. (2) | 2,075,279 | 175,000 | - | 2,250,279 | - | 10,846 | |||||||||||||
Introgen Therapeutics, Inc. (2) | - | 2,677,100 | - | 2,677,100 | - | 10,815 | |||||||||||||
Sharper Image Corp. (2) | 950,000 | - | - | 950,000 | - | 10,498 | |||||||||||||
Funcom NV (2) | - | 2,750,000 | - | 2,750,000 | - | 10,342 | |||||||||||||
TICON Property Fund | 24,700,000 | 5,700,000 | - | 30,400,000 | 370 | 8,683 | |||||||||||||
Energem Resources Inc. (2) | 8,002,500 | - | - | 8,002,500 | - | 4,165 | |||||||||||||
Energem Resources Inc. (2) (3) (4) | - | 2,200,000 | - | 2,200,000 | - | 893 | |||||||||||||
Energem Resources Inc., warrants, expire 2009 (2) (3) (4) | - | 2,200,000 | - | 2,200,000 | - | 270 | |||||||||||||
Energem Resources Inc., warrants, expire 2008 (2) (4) | 1,200,000 | - | - | 1,200,000 | - | 133 | |||||||||||||
Gaming VC Holdings SA | 2,023,800 | - | - | 2,023,800 | 422 | 5,439 | |||||||||||||
Phoenix PDE Co., Ltd. | 1,500,000 | - | - | 1,500,000 | 135 | 5,215 | |||||||||||||
Caspian Energy Inc. (United Kingdom) (2) | 3,450,000 | - | - | 3,450,000 | - | 2,106 | |||||||||||||
Caspian Energy Inc. (2) | 2,450,000 | - | - | 2,450,000 | - | 1,700 | |||||||||||||
Sanctuary Group PLC (2) | 14,412,733 | - | - | 14,412,733 | - | 3,618 | |||||||||||||
Vision-Sciences, Inc. (2) | 1,884,500 | - | - | 1,884,500 | - | 2,035 | |||||||||||||
Infoteria Corp. (2) (3) (4) | 2,577 | - | - | 2,577 | - | 1,314 | |||||||||||||
Imagelinx PLC (2) | 17,785,714 | 3,600,000 | - | 21,385,714 | - | 737 | |||||||||||||
ZOOTS (2) (3) (4) | 25,173 | - | - | 25,173 | - | 234 | |||||||||||||
Advanced Magnetics, Inc. (2) (5) | - | 875,000 | 375,000 | 500,000 | - | - | |||||||||||||
ArthroCare Corp. (2) (5) | 1,431,700 | - | 97,700 | 1,334,000 | - | - | |||||||||||||
Aventine Renewable Energy, Inc. (5) | 2,200,000 | 100,000 | 2,300,000 | - | - | - | |||||||||||||
Ballarat Goldfields NL (5) | 53,355,000 | - | 53,355,000 | - | - | - | |||||||||||||
Ballarat Goldfields NL (5) | 10,250,000 | - | 10,250,000 | - | - | - | |||||||||||||
Ballast Nedam NV (5) | 628,753 | 33,742 | 325,000 | 337,495 | - | - | |||||||||||||
Bankrate, Inc. (2) (5) | - | 1,175,000 | 349,863 | 825,137 | - | - | |||||||||||||
Billing Services Group Ltd. (5) | 16,548,800 | - | 16,548,800 | - | - | - | |||||||||||||
CARBO Ceramics Inc. (5) | 1,473,240 | - | 1,473,240 | - | 177 | - | |||||||||||||
Career Technology (MFG.) Co., Ltd. (5) | 14,957,559 | - | 14,957,559 | - | - | - | |||||||||||||
Dongkuk Steel Mill Co., Ltd. (5) | 3,355,000 | - | 1,110,000 | 2,245,000 | 2,259 | - | |||||||||||||
Downer EDI Ltd. (5) | 18,641,198 | 172,121 | 9,783,563 | 9,029,756 | 766 | - | |||||||||||||
FirstAfrica Oil PLC (5) | 172,338,000 | - | 172,338,000 | - | - | - | |||||||||||||
GES International (5) | 42,700,000 | - | 42,700,000 | - | - | - | |||||||||||||
Interflex Co., Ltd. (2) (5) | 799,000 | - | 635,107 | 163,893 | - | - | |||||||||||||
KEC Corp. (2) (5) | 3,926,550 | - | 3,826,510 | 100,040 | - | - | |||||||||||||
KEC Holdings Co. Ltd. (2) (5) | 1,308,849 | - | 527,600 | 781,249 | - | - | |||||||||||||
Knot, Inc. (2) (3) (5) | 670,000 | - | - | 670,000 | - | - | |||||||||||||
Knot, Inc. (2) (5) | 1,200,000 | - | 1,050,000 | 150,000 | - | - | |||||||||||||
Levitt Corp., Class A (5) | 1,000,000 | - | 1,000,000 | - | 37 | - | |||||||||||||
Lojas Renner SA, ordinary nominative (5) | 1,330,000 | 5,320,000 | 700,000 | 5,950,000 | 412 | - | |||||||||||||
MKS Instruments, Inc. (5) | 2,849,944 | - | 2,849,944 | - | - | - | |||||||||||||
Myogen, Inc. (5) | 2,315,000 | - | 2,315,000 | - | - | - | |||||||||||||
Nabi Biopharmaceuticals (5) | 3,050,000 | - | 3,050,000 | - | - | - | |||||||||||||
NuVasive, Inc. (2) (5) | 1,709,000 | - | 400,000 | 1,309,000 | - | - | |||||||||||||
PGG Wrightson Ltd. (5) | 16,195,000 | - | 7,435,586 | 8,759,414 | 329 | - | |||||||||||||
Plantynet Co., Ltd. (5) | 537,600 | - | 537,600 | - | - | - | |||||||||||||
PMC-Sierra, Inc. (2) (5) | 11,500,000 | 850,000 | 11,250,000 | 1,100,000 | - | - | |||||||||||||
Restaurant Group PLC (5) | 12,499,555 | - | 3,513,000 | 8,986,555 | - | - | |||||||||||||
SEEK Ltd. (5) | 14,768,997 | - | 1,566,889 | 13,202,108 | 676 | - | |||||||||||||
Silitech Technology Corp. (5) | 10,515,798 | 950,000 | 8,569,200 | 2,896,598 | 6 | - | |||||||||||||
Spot Runner, Inc. (2) (3) (4) (5) | - | 1,084,011 | - | 1,084,011 | - | - | |||||||||||||
Spot Runner, Inc., Series C, convertible preferred (2) (3) (4) (5) | - | 1,626,016 | - | 1,626,016 | - | - | |||||||||||||
Unibet Group PLC (SDR) (5) | 1,778,470 | - | 1,778,470 | - | - | - | |||||||||||||
Veda Advantage Ltd. (5) | 13,885,000 | - | 13,885,000 | - | - | - | |||||||||||||
Warren Resources, Inc. (2) (5) | 3,255,000 | - | 1,505,000 | 1,750,000 | - | - | |||||||||||||
Wright Medical Group, Inc. (2) (5) | 2,742,800 | - | 2,350,000 | 392,800 | - | - | |||||||||||||
$ | 32,678 | $ | 5,161,474 |
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) Represents an affiliated company as defined under the Investment Company Act of 1940. |
(2) Security did not produce income during the last 12 months. |
(3) Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities, including those in "Other securities" in the summary investment portfolio, was $1,045,962,000, which represented 4.69% of the net assets of the fund. |
(4) Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, |
including those in "Other securities," was $89,902,000. |
(5) Unaffiliated issuer at 3/31/2007. |
ADR = American Depositary Receipts |
GDR = Global Depositary Receipts |
SDR = Swedish Depositary Receipts |
See Notes to Financial Statements |
Financial statements
Statement of assets and liabilities | unaudited | ||||||
at March 31, 2007 | (dollars and shares in thousands, except per-share amounts) | ||||||
Assets: | |||||||
Investment securities at market: | |||||||
Unaffiliated issuers (cost: $12,844,117) | $ | 17,096,461 | |||||
Affiliated issuers (cost: $3,764,366) | 5,161,474 | $ | 22,257,935 | ||||
Cash denominated in non-U.S. currencies | |||||||
(cost: $6,916) | 6,914 | ||||||
Cash | 1,583 | ||||||
Receivables for: | |||||||
Sales of investments | 153,694 | ||||||
Sales of fund's shares | 36,639 | ||||||
Dividends and interest | 36,040 | 226,373 | |||||
22,492,805 | |||||||
Liabilities: | |||||||
Payables for: | |||||||
Purchases of investments | 136,041 | ||||||
Repurchases of fund's shares | 20,330 | ||||||
Investment advisory services | 10,547 | ||||||
Services provided by affiliates | 7,733 | ||||||
Deferred directors' compensation | 1,442 | ||||||
Other | 2,241 | 178,334 | |||||
Net assets at March 31, 2007 | $ | 22,314,471 | |||||
Net assets consist of: | |||||||
Capital paid in on shares of capital stock | $ | 16,055,438 | |||||
Distributions in excess of net investment income | (309,637 | ) | |||||
Undistributed net realized gain | 921,184 | ||||||
Net unrealized appreciation | 5,647,486 | ||||||
Net assets at March 31, 2007 | $ | 22,314,471 |
Total authorized capital stock - 800,000 shares, $.01 par value (542,526 total shares outstanding) | ||||||||||
Net assets | Shares outstanding | Net asset value per share* | ||||||||
Class A | $ | 17,995,281 | 435,580 | $ | 41.31 | |||||
Class B | 695,559 | 17,485 | 39.78 | |||||||
Class C | 886,104 | 22,426 | 39.51 | |||||||
Class F | 609,894 | 14,870 | 41.01 | |||||||
Class 529-A | 380,094 | 9,235 | 41.16 | |||||||
Class 529-B | 58,764 | 1,461 | 40.21 | |||||||
Class 529-C | 151,263 | 3,765 | 40.18 | |||||||
Class 529-E | 23,780 | 583 | 40.80 | |||||||
Class 529-F | 26,774 | 651 | 41.13 | |||||||
Class R-1 | 29,920 | 743 | 40.27 | |||||||
Class R-2 | 545,539 | 13,524 | 40.34 | |||||||
Class R-3 | 440,401 | 10,810 | 40.74 | |||||||
Class R-4 | 183,041 | 4,451 | 41.12 | |||||||
Class R-5 | 288,057 | 6,942 | 41.50 | |||||||
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Class A and 529-A, for which the maximum offering prices per share were $43.83 and $43.67, respectively. | ||||||||||
See Notes to Financial Statements |
Statement of operations | unaudited | ||||||
for the six months ended March 31, 2007 | (dollars in thousands) | ||||||
Investment income: | |||||||
Income: | |||||||
Dividends (net of non-U.S. | |||||||
taxes of $10,523; also includes | |||||||
$32,678 from affiliates) | $ | 163,405 | |||||
Interest | 45,785 | $ | 209,190 | ||||
Fees and expenses(*): | |||||||
Investment advisory services | 65,543 | ||||||
Distribution services | 32,387 | ||||||
Transfer agent services | 11,067 | ||||||
Administrative services | 3,656 | ||||||
Reports to shareholders | 428 | ||||||
Registration statement and prospectus | 579 | ||||||
Postage, stationery and supplies | 1,319 | ||||||
Directors' compensation | 353 | ||||||
Auditing and legal | 52 | ||||||
Custodian | 2,277 | ||||||
State and local taxes | 357 | ||||||
Other | 179 | ||||||
Total fees and expenses before reimbursements/waivers | 118,197 | ||||||
Less reimbursements/waivers of fees and expenses: | |||||||
Investment advisory services | 6,554 | ||||||
Administrative services | 270 | ||||||
Total fees and expenses after reimbursements/waivers | 111,373 | ||||||
Net investment income | 97,817 | ||||||
Net realized gain and unrealized | |||||||
appreciation on investments | |||||||
and non-U.S. currency: | |||||||
Net realized gain (loss) on: | |||||||
Investments (including $30,154 net loss from affiliates) | 1,219,127 | ||||||
Non-U.S. currency transactions | (1,049 | ) | 1,218,078 | ||||
Net unrealized appreciation (depreciation) on: | |||||||
Investments | 2,013,780 | ||||||
Non-U.S. currency translations | (26 | ) | 2,013,754 | ||||
Net realized gain and | |||||||
unrealized appreciation | |||||||
on investments and non-U.S. currency | 3,231,832 | ||||||
Net increase in net assets resulting | |||||||
from operations | $ | 3,329,649 | |||||
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. | |||||||
See Notes to Financial Statements | |||||||
Statements of changes in net assets | (dollars in thousands) | ||||||
Six months | Year ended | ||||||
ended March 31, | September 30, | ||||||
2007* | 2006 | ||||||
Operations: | |||||||
Net investment income | $ | 97,817 | $ | 102,369 | |||
Net realized gain on investments and | |||||||
non-U.S. currency transactions | 1,218,078 | 1,699,125 | |||||
Net unrealized appreciation | |||||||
on investments and non-U.S. currency translations | 2,013,754 | 471,852 | |||||
Net increase in net assets | |||||||
resulting from operations | 3,329,649 | 2,273,346 | |||||
Dividends and distributions paid to | |||||||
shareholders : | |||||||
Dividends from net investment income and non-U.S. currency gain | (318,871 | ) | (171,204 | ) | |||
Distributions from net realized gain | |||||||
on investments | (1,736,093 | ) | (293,825 | ) | |||
Total dividends and distributions paid | |||||||
to shareholders | (2,054,964 | ) | (465,029 | ) | |||
Capital share transactions | 2,570,243 | 1,970,025 | |||||
Total increase in net assets | 3,844,928 | 3,778,342 | |||||
Net assets: | |||||||
Beginning of period | 18,469,543 | 14,691,201 | |||||
End of period (including | |||||||
distributions in excess of | |||||||
net investment income: $309,637 and $88,583, respectively) | $ | 22,314,471 | $ | 18,469,543 | |||
*Unaudited. | |||||||
See Notes to Financial Statements |
Notes to financial statements
unaudited
1. | Organization and significant accounting policies |
Organization - SMALLCAP World Fund, Inc. (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks long-term growth of capital through investments in smaller companies in the U.S. and around the world.
The fund offers 14 share classes consisting of four retail share classes, five CollegeAmerica® savings plan share classes and five retirement plan share classes. The CollegeAmerica savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) can be utilized to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The fund’s share classes are described below:
Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
Class A and 529-A | Up to 5.75% | None (except 1% for certain redemptions within one year of purchase without an initial sales charge) | None |
Class B and 529-B | None | Declines from 5% to 0% for redemptions within six years of purchase | Class B and 529-B convert to Class A and 529-A, respectively, after eight years |
Class C | None | 1% for redemptions within one year of purchase | Class C converts to Class F after 10 years |
Class 529-C | None | 1% for redemptions within one year of purchase | None |
Class 529-E | None | None | None |
Class F and 529-F | None | None | None |
Class R-1, R-2, R-3, R-4 and R-5 | None | None | None |
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
Significant accounting policies - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:
Security valuation - Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under procedures adopted by authority of the fund's board of directors. Market quotations may be considered unreliable if events occur that materially affect the value of securities (particularly non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions.
Security transactions and related investment income - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations - Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.
Dividends and distributions to shareholders - Dividends and distributions paid to shareholders are recorded on the ex-dividend date.
Non-U.S. currency translation - Assets and liabilities, including investment securities, denominated in non-U.S. currencies 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. In the accompanying financial statements, the effects of changes in non-U.S. exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in non-U.S. currencies are disclosed separately.
2. | Non-U.S. investments |
Investment risk - The risks of investing in securities of non-U.S. issuers may include, but are not limited to, investment and repatriation restrictions; revaluation of currencies; adverse political, social and economic developments; government involvement in the private sector; limited and less reliable investor information; lack of liquidity; certain local tax law considerations; and limited regulation of the securities markets.
Taxation - Dividend and interest income is recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities. For the six months ended March 31, 2007, non-U.S. taxes paid on realized gains were $609,000. As of March 31, 2007, non-U.S. taxes provided on unrealized gains were $1,751,000.
3. Federal income taxation and distributions
The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
Distributions - Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in non-U.S. securities; cost of investments sold; non-U.S. taxes on capital gains; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.
The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of September 30, 2006, the fund had tax basis undistributed ordinary income of $396,784,000, non-U.S. currency loss deferrals (realized during the period November 1, 2005, through September 30, 2006) of $1,930,000 and an undistributed long-term capital gain of $1,272,620,000.
As of March 31, 2007, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows:
(dollars in thousands) | ||||
Gross unrealized appreciation on investment securities | $ | 6,024,190 | ||
Gross unrealized depreciation on investment securities | (726,078 | ) | ||
Net unrealized appreciation on investment securities | 5,298,112 | |||
Cost of investment securities | 16,959,823 |
The tax character of distributions to shareholders was as follows (dollars in thousands):
Six months ended March 31, 2007 | Year ended September 30, 2006 | ||||||||||||||||||
Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||
Share class | |||||||||||||||||||
Class A | $ | 408,840 | $ | 1,271,422 | $ | 1,680,262 | $ | 149,401 | $ | 247,786 | $ | 397,187 | |||||||
Class B | 11,225 | 51,015 | 62,240 | 3,425 | 9,479 | 12,904 | |||||||||||||
Class C | 14,214 | 62,803 | 77,017 | 3,828 | 9,872 | 13,700 | |||||||||||||
Class F | 13,503 | 40,771 | 54,274 | 3,420 | 5,484 | 8,904 | |||||||||||||
Class 529-A | 8,151 | 25,161 | 33,312 | 2,333 | 3,813 | 6,146 | |||||||||||||
Class 529-B | 882 | 4,194 | 5,076 | 238 | 714 | 952 | |||||||||||||
Class 529-C | 2,284 | 10,443 | 12,727 | 599 | 1,653 | 2,252 | |||||||||||||
Class 529-E | 464 | 1,635 | 2,099 | 129 | 249 | 378 | |||||||||||||
Class 529-F | 589 | 1,701 | 2,290 | 167 | 267 | 434 | |||||||||||||
Class R-1 | 476 | 2,004 | 2,480 | 115 | 273 | 388 | |||||||||||||
Class R-2 | 8,616 | 37,175 | 45,791 | 2,333 | 5,629 | 7,962 | |||||||||||||
Class R-3 | 7,972 | 28,485 | 36,457 | 2,104 | 4,041 | 6,145 | |||||||||||||
Class R-4 | 3,801 | 11,572 | 15,373 | 961 | 1,515 | 2,476 | |||||||||||||
Class R-5 | 6,796 | 18,770 | 25,566 | 2,151 | 3,050 | 5,201 | |||||||||||||
Total | $ | 487,813 | $ | 1,567,151 | $ | 2,054,964 | $ | 171,204 | $ | 293,825 | $ | 465,029 |
4. Fees and transactions with related parties
Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company SM ("AFS"), the fund’s transfer agent, and American Funds Distributors, SM Inc. ("AFD"), the principal underwriter of the fund’s shares.
Investment advisory services -The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.800% on the first billion of daily net assets and decreasing to 0.595% on such assets in excess of $27 billion. CRMC is currently waiving 10% of investment advisory services fees. During the six months ended March 31, 2007, total investment advisory services fees waived by CRMC were $6,554,000. As a result, the fee shown on the accompanying financial statements of $65,543,000, which was equivalent to an annualized rate of 0.638%, was reduced to $58,989,000, or 0.574% of average daily net assets.
Class-specific fees and expenses - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:
Distribution services - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the board of directors 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 on the following page. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
For Class A and 529-A, the board of directors 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, 2007, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A.
Share class | Currently approved limits | Plan limits |
Class A | 0.30% | 0.30% |
Class 529-A | 0.30 | 0.50 |
Class B and 529-B | 1.00 | 1.00 |
Class C, 529-C and R-1 | 1.00 | 1.00 |
Class R-2 | 0.75 | 1.00 |
Class 529-E and R-3 | 0.50 | 0.75 |
Class F, 529-F and R-4 | 0.25 | 0.50 |
Transfer agent services - The fund has a transfer agent agreement with AFS for Class A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.
Administrative services - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Class A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. For the six months ended March 31, 2007, the total administrative services fees paid by CRMC were $4,000 and $266,000 for Class R-1 and R-2, respectively. Administrative services fees are presented gross of any payments made by CRMC. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the CollegeAmerica plan. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.
Expenses under the agreements described on the previous page for the six months ended March 31, 2007, 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 | $20,154 | $10,642 | Not applicable | Not applicable | Not applicable |
Class B | 3,222 | 425 | Not applicable | Not applicable | Not applicable |
Class C | 3,973 | Included in administrative services | $596 | $99 | Not applicable |
Class F | 664 | 273 | 64 | Not applicable | |
Class 529-A | 315 | 173 | 30 | $ 166 | |
Class 529-B | 268 | 28 | 9 | 27 | |
Class 529-C | 670 | 70 | 20 | 67 | |
Class 529-E | 53 | 11 | 2 | 11 | |
Class 529-F | - | 12 | 2 | 11 | |
Class R-1 | 128 | 15 | 11 | Not applicable | |
Class R-2 | 1,804 | 342 | 908 | Not applicable | |
Class R-3 | 942 | 258 | 219 | Not applicable | |
Class R-4 | 194 | 98 | 7 | Not applicable | |
Class R-5 | Not applicable | 123 | 4 | Not applicable | |
Total | $32,387 | $11,067 | $1,999 | $1,375 | $282 |
Deferred directors’ compensation - Since the adoption of the deferred compensation plan in 1993, directors 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. Directors’ compensation of $353,000, shown on the accompanying financial statements, includes $183,000 in current fees (either paid in cash or deferred) and a net increase of $170,000 in the value of the deferred amounts.
Affiliated officers and directors - Officers and certain directors of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or directors received any compensation directly from the fund.
5. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Share class | Sales(*) | Reinvestments of dividends and distributions | Repurchases(*) | Net increase | |||||||||||||||||||||
Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||
Six months ended March 31, 2007 | |||||||||||||||||||||||||
Class A | $ | 1,344,852 | 33,125 | $ | 1,616,199 | 41,314 | $ | (1,174,965 | ) | (29,015 | ) | $ | 1,786,086 | 45,424 | |||||||||||
Class B | 52,754 | 1,347 | 60,459 | 1,602 | (38,841 | ) | (997 | ) | 74,372 | 1,952 | |||||||||||||||
Class C | 128,949 | 3,317 | 74,749 | 1,993 | (61,128 | ) | (1,576 | ) | 142,570 | 3,734 | |||||||||||||||
Class F | 139,286 | 3,449 | 48,959 | 1,260 | (54,652 | ) | (1,363 | ) | 133,593 | 3,346 | |||||||||||||||
Class 529-A | 54,276 | 1,340 | 33,309 | 855 | (10,930 | ) | (270 | ) | 76,655 | 1,925 | |||||||||||||||
Class 529-B | 4,666 | 117 | 5,074 | 133 | (1,787 | ) | (45 | ) | 7,953 | 205 | |||||||||||||||
Class 529-C | 20,888 | 529 | 12,727 | 334 | (5,632 | ) | (143 | ) | 27,983 | 720 | |||||||||||||||
Class 529-E | 3,118 | 78 | 2,099 | 54 | (988 | ) | (25 | ) | 4,229 | 107 | |||||||||||||||
Class 529-F | 5,169 | 128 | 2,290 | 59 | (1,312 | ) | (32 | ) | 6,147 | 155 | |||||||||||||||
Class R-1 | 8,213 | 207 | 2,465 | 64 | (3,424 | ) | (86 | ) | 7,254 | 185 | |||||||||||||||
Class R-2 | 119,368 | 3,013 | 45,744 | 1,195 | (63,539 | ) | (1,606 | ) | 101,573 | 2,602 | |||||||||||||||
Class R-3 | 114,785 | 2,873 | 36,433 | 943 | (53,295 | ) | (1,334 | ) | 97,923 | 2,482 | |||||||||||||||
Class R-4 | 58,113 | 1,444 | 15,369 | 395 | (26,204 | ) | (649 | ) | 47,278 | 1,190 | |||||||||||||||
Class R-5 | 43,367 | 1,069 | 24,707 | 629 | (11,447 | ) | (283 | ) | 56,627 | 1,415 | |||||||||||||||
Total net increase | |||||||||||||||||||||||||
(decrease) | $ | 2,097,804 | 52,036 | $ | 1,980,583 | 50,830 | $ | (1,508,144 | ) | (37,424 | ) | $ | 2,570,243 | 65,442 | |||||||||||
Year ended September 30, 2006 | |||||||||||||||||||||||||
Class A | $ | 2,685,423 | 71,453 | $ | 381,591 | 10,807 | $ | (1,974,783 | ) | (52,904 | ) | $ | 1,092,231 | 29,356 | |||||||||||
Class B | 122,373 | 3,363 | 12,552 | 367 | (65,243 | ) | (1,807 | ) | 69,682 | 1,923 | |||||||||||||||
Class C | 265,083 | 7,319 | 13,251 | 390 | (96,579 | ) | (2,688 | ) | 181,755 | 5,021 | |||||||||||||||
Class F | 226,333 | 6,037 | 7,921 | 225 | (76,064 | ) | (2,044 | ) | 158,190 | 4,218 | |||||||||||||||
Class 529-A | 88,290 | 2,366 | 6,144 | 175 | (13,640 | ) | (365 | ) | 80,794 | 2,176 | |||||||||||||||
Class 529-B | 9,920 | 271 | 952 | 28 | (1,623 | ) | (44 | ) | 9,249 | 255 | |||||||||||||||
Class 529-C | 33,944 | 929 | 2,252 | 65 | (7,790 | ) | (213 | ) | 28,406 | 781 | |||||||||||||||
Class 529-E | 5,862 | 159 | 378 | 11 | (1,047 | ) | (28 | ) | 5,193 | 142 | |||||||||||||||
Class 529-F | 6,354 | 171 | 434 | 12 | (1,707 | ) | (46 | ) | 5,081 | 137 | |||||||||||||||
Class R-1 | 11,607 | 318 | 387 | 11 | (4,858 | ) | (134 | ) | 7,136 | 195 | |||||||||||||||
Class R-2 | 195,251 | 5,318 | 7,956 | 229 | (80,898 | ) | (2,203 | ) | 122,309 | 3,344 | |||||||||||||||
Class R-3 | 169,804 | 4,569 | 6,115 | 175 | (69,063 | ) | (1,871 | ) | 106,856 | 2,873 | |||||||||||||||
Class R-4 | 68,594 | 1,847 | 2,476 | 71 | (21,588 | ) | (576 | ) | 49,482 | 1,342 | |||||||||||||||
Class R-5 | 74,700 | 1,998 | 4,905 | 138 | (25,944 | ) | (687 | ) | 53,661 | 1,449 | |||||||||||||||
Total net increase | |||||||||||||||||||||||||
(decrease) | $ | 3,963,538 | 106,118 | $ | 447,314 | 12,704 | $ | (2,440,827 | ) | (65,610 | ) | $ | 1,970,025 | 53,212 | |||||||||||
* Includes exchanges between share classes of the fund. |
6. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities, of $5,583,246,000 and $4,834,899,000, respectively, during the six months ended March 31, 2007.
Financial highlights (1)
Income (loss) from investment operations(2) | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss | ) | 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 (loss) to average net assets | (4 | ) | |||||||||||||||||||||||||||||||||
Class A: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | $ | 38.87 | $ | .21 | $ | 6.54 | $ | 6.75 | $ | (.70 | ) | $ | (3.61 | ) | $ | (4.31 | ) | $ | 41.31 | 17.96 | % | $ | 17,995 | 1.06 | % | (6 | ) | 1.00 | % | (6 | ) | 1.04 | % | (6 | ) | ||||||||||||||||||
Year ended 9/30/2006 | 34.77 | .25 | 4.94 | 5.19 | (.41 | ) | (.68 | ) | (1.09 | ) | 38.87 | 15.27 | 15,167 | 1.08 | 1.01 | .68 | |||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.82 | .24 | 7.02 | 7.26 | (.31 | ) | — | (.31 | ) | 34.77 | 26.28 | 12,544 | 1.09 | 1.04 | .76 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.22 | .02 | 4.61 | 4.63 | (.03 | ) | — | (.03 | ) | 27.82 | 19.95 | 9,771 | 1.12 | 1.12 | .06 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.53 | (.01 | ) | 5.70 | 5.69 | - | — | - | 23.22 | 32.46 | 7,833 | 1.19 | 1.19 | (.07 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2002 | 18.62 | (.07 | ) | (.98 | ) | (1.05 | ) | (.04 | ) | — | (.04 | ) | 17.53 | (5.69 | ) | 6,283 | 1.17 | 1.17 | (.32 | ) | |||||||||||||||||||||||||||||||||||
Class B: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 37.41 | .05 | 6.30 | 6.35 | (.37 | ) | (3.61 | ) | (3.98 | ) | 39.78 | 17.53 | 696 | 1.82 | (6 | ) | 1.76 | (6 | ) | .28 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 33.59 | (.03 | ) | 4.78 | 4.75 | (.25 | ) | (.68 | ) | (.93 | ) | 37.41 | 14.39 | 581 | 1.85 | 1.78 | (.09 | ) | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 26.90 | — | (7 | ) | 6.79 | 6.79 | (.10 | ) | — | (.10 | ) | 33.59 | 25.31 | 457 | 1.86 | 1.81 | (.01 | ) | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 22.60 | (.18 | ) | 4.48 | 4.30 | — | — | — | 26.90 | 19.03 | 329 | 1.88 | 1.88 | (.69 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.20 | (.16 | ) | 5.56 | 5.40 | — | — | — | 22.60 | 31.40 | 201 | 1.97 | 1.97 | (.85 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2002 | 18.38 | (.23 | ) | (.95 | ) | (1.18 | ) | — | — | — | 17.20 | (6.42 | ) | 118 | 1.95 | 1.95 | (1.09 | ) | |||||||||||||||||||||||||||||||||||||
Class C: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 37.21 | .05 | 6.25 | 6.30 | (.39 | ) | (3.61 | ) | (4.00 | ) | 39.51 | 17.49 | 886 | 1.87 | (6 | ) | 1.80 | (6 | ) | .23 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 33.45 | (.04 | ) | 4.74 | 4.70 | (.26 | ) | (.68 | ) | (.94 | ) | 37.21 | 14.33 | 696 | 1.89 | 1.83 | (.12 | ) | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 26.82 | (.02 | ) | 6.78 | 6.76 | (.13 | ) | — | (.13 | ) | 33.45 | 25.27 | 457 | 1.90 | 1.85 | (.05 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 22.54 | (.19 | ) | 4.47 | 4.28 | — | — | — | 26.82 | 18.99 | 274 | 1.92 | 1.91 | (.71 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.15 | (.16 | ) | 5.55 | 5.39 | — | — | — | 22.54 | 31.43 | 124 | 1.97 | 1.97 | (.85 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2002 | 18.33 | (.22 | ) | (.95 | ) | (1.17 | ) | (.01 | ) | — | (.01 | ) | 17.15 | (6.42 | ) | 56 | 1.96 | 1.96 | (1.08 | ) | |||||||||||||||||||||||||||||||||||
Class F: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 38.65 | .21 | 6.49 | 6.70 | (.73 | ) | (3.61 | ) | (4.34 | ) | 41.01 | 17.98 | 610 | 1.06 | (6 | ) | 1.00 | (6 | ) | 1.04 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 34.58 | .26 | 4.91 | 5.17 | (.42 | ) | (.68 | ) | (1.10 | ) | 38.65 | 15.28 | 446 | 1.08 | 1.01 | .70 | |||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.70 | .23 | 6.98 | 7.21 | (.33 | ) | — | (.33 | ) | 34.58 | 26.23 | 253 | 1.12 | 1.07 | .72 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.16 | .02 | 4.58 | 4.60 | (.06 | ) | — | (.06 | ) | 27.70 | 19.90 | 128 | 1.15 | 1.14 | .06 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.48 | (.01 | ) | 5.69 | 5.68 | — | — | — | 23.16 | 32.49 | 57 | 1.18 | 1.18 | (.06 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2002 | 18.60 | (.07 | ) | (.98 | ) | (1.05 | ) | (.07 | ) | — | (.07 | ) | 17.48 | (5.73 | ) | 24 | 1.20 | 1.20 | (.32 | ) | |||||||||||||||||||||||||||||||||||
Class 529-A: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 38.76 | .20 | 6.51 | 6.71 | (.70 | ) | (3.61 | ) | (4.31 | ) | 41.16 | 17.94 | 380 | 1.10 | (6 | ) | 1.04 | (6 | ) | .99 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 34.68 | .25 | 4.93 | 5.18 | (.42 | ) | (.68 | ) | (1.10 | ) | 38.76 | 15.25 | 284 | 1.11 | 1.05 | .66 | |||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.79 | .22 | 7.00 | 7.22 | (.33 | ) | — | (.33 | ) | 34.68 | 26.19 | 178 | 1.14 | 1.08 | .71 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.24 | .02 | 4.60 | 4.62 | (.07 | ) | — | (.07 | ) | 27.79 | 19.90 | 97 | 1.14 | 1.14 | .06 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.53 | .01 | 5.70 | 5.71 | — | — | — | 23.24 | 32.57 | 42 | 1.11 | 1.11 | .03 | ||||||||||||||||||||||||||||||||||||||||||
Period from 2/19/2002 to 9/30/2002 | 21.68 | (.03 | ) | (4.12 | ) | (4.15 | ) | — | — | — | 17.53 | (19.14 | ) | 15 | 1.18 | (6 | ) | 1.18 | (6 | ) | (.25 | ) | (6 | ) | |||||||||||||||||||||||||||||||
Class 529-B: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 37.77 | .03 | 6.35 | 6.38 | (.33 | ) | (3.61 | ) | (3.94 | ) | 40.21 | 17.46 | 59 | 1.93 | (6 | ) | 1.86 | (6 | ) | .17 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 33.93 | (.07 | ) | 4.82 | 4.75 | (.23 | ) | (.68 | ) | (.91 | ) | 37.77 | 14.24 | 48 | 1.97 | 1.90 | (.20 | ) | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.20 | (.05 | ) | 6.87 | 6.82 | (.09 | ) | — | (.09 | ) | 33.93 | 25.11 | 34 | 2.02 | 1.96 | (.17 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 22.88 | (.23 | ) | 4.55 | 4.32 | — | — | — | 27.20 | 18.88 | 22 | 2.04 | 2.04 | (.84 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.43 | (.19 | ) | 5.64 | 5.45 | — | — | — | 22.88 | 31.27 | 10 | 2.09 | 2.09 | (.95 | ) | ||||||||||||||||||||||||||||||||||||||||
Period from 2/20/2002 to 9/30/2002 | 21.82 | (.14 | ) | (4.25 | ) | (4.39 | ) | — | — | — | 17.43 | (20.12 | ) | 3 | 2.08 | (6 | ) | 2.08 | (6 | ) | (1.15 | ) | (6 | ) | |||||||||||||||||||||||||||||||
Class 529-C: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 37.77 | .03 | 6.35 | 6.38 | (.36 | ) | (3.61 | ) | (3.97 | ) | 40.18 | 17.45 | 151 | 1.93 | (6 | ) | 1.86 | (6 | ) | .17 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 33.94 | (.07 | ) | 4.83 | 4.76 | (.25 | ) | (.68 | ) | (.93 | ) | 37.77 | 14.27 | 115 | 1.96 | 1.90 | (.19 | ) | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.21 | (.05 | ) | 6.87 | 6.82 | (.09 | ) | — | (.09 | ) | 33.94 | 25.13 | 77 | 2.00 | 1.95 | (.16 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 22.89 | (.22 | ) | 4.54 | 4.32 | — | — | — | 27.21 | 18.87 | 43 | 2.03 | 2.03 | (.83 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.44 | (.18 | ) | 5.63 | 5.45 | — | — | — | 22.89 | 31.25 | 20 | 2.07 | 2.07 | (.94 | ) | ||||||||||||||||||||||||||||||||||||||||
Period from 2/20/2002 to 9/30/2002 | 21.82 | (.14 | ) | (4.24 | ) | (4.38 | ) | — | — | — | 17.44 | (20.07 | ) | 7 | 2.05 | (6 | ) | 2.05 | (6 | ) | (1.12 | ) | (6 | ) | |||||||||||||||||||||||||||||||
Class 529-E: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 38.40 | .14 | 6.44 | 6.58 | (.57 | ) | (3.61 | ) | (4.18 | ) | 40.80 | 17.76 | 24 | 1.41 | (6 | ) | 1.35 | (6 | ) | .68 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 34.42 | .12 | 4.89 | 5.01 | (.35 | ) | (.68 | ) | (1.03 | ) | 38.40 | 14.86 | 18 | 1.44 | 1.37 | .34 | |||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.58 | .12 | 6.96 | 7.08 | (.24 | ) | — | (.24 | ) | 34.42 | 25.81 | 12 | 1.47 | 1.42 | .37 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.09 | (.08 | ) | 4.59 | 4.51 | (.02 | ) | — | (.02 | ) | 27.58 | 19.52 | 6 | 1.50 | 1.49 | (.29 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.50 | (.07 | ) | 5.66 | 5.59 | — | — | — | 23.09 | 31.94 | 3 | 1.53 | 1.53 | (.38 | ) | ||||||||||||||||||||||||||||||||||||||||
Period from 3/15/2002 to 9/30/2002 | 23.21 | (.06 | ) | (5.65 | ) | (5.71 | ) | — | — | — | 17.50 | (24.60 | ) | 1 | 1.51 | (6 | ) | 1.51 | (6 | ) | (.60 | ) | (6 | ) | |||||||||||||||||||||||||||||||
Class 529-F: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 38.77 | .24 | 6.51 | 6.75 | (.78 | ) | (3.61 | ) | (4.39 | ) | 41.13 | 18.03 | 27 | .91 | (6 | ) | .85 | (6 | ) | 1.18 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 34.64 | .31 | 4.93 | 5.24 | (.43 | ) | (.68 | ) | (1.11 | ) | 38.77 | 15.44 | 19 | .94 | .87 | .83 | |||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.72 | .23 | 6.99 | 7.22 | (.30 | ) | — | (.30 | ) | 34.64 | 26.22 | 12 | 1.11 | 1.06 | .74 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.20 | (.01 | ) | 4.60 | 4.59 | (.07 | ) | — | (.07 | ) | 27.72 | 19.81 | 7 | 1.25 | 1.24 | (.04 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.53 | (.02 | ) | 5.69 | 5.67 | — | — | — | 23.20 | 32.34 | 3 | 1.27 | 1.27 | (.10 | ) | ||||||||||||||||||||||||||||||||||||||||
Period from 9/17/2002 to 9/30/2002 | 18.24 | — | (7 | ) | (.71 | ) | (.71 | ) | — | — | — | 17.53 | (3.89 | ) | — | (8).04 | .04 | .01 | |||||||||||||||||||||||||||||||||||||
Class R-1: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | $ | 37.89 | $ | .05 | $ | 6.36 | $ | 6.41 | $ | (.42 | ) | $ | (3.61 | ) | $ | (4.03 | ) | $ | 40.27 | 17.51 | % | $ | 30 | 1.89 | % | (6 | ) | 1.79 | % | (6 | ) | .25 | % | (6 | ) | ||||||||||||||||||
Year ended 9/30/2006 | 34.07 | (.04 | ) | 4.83 | 4.79 | (.29 | ) | (.68 | ) | (.97 | ) | 37.89 | 14.31 | 21 | 1.92 | 1.82 | (.11 | ) | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.34 | (.01 | ) | 6.90 | 6.89 | (.16 | ) | — | (.16 | ) | 34.07 | 25.27 | 12 | 1.97 | 1.85 | (.05 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.00 | (.19 | ) | 4.55 | 4.36 | (.02 | ) | — | (.02 | ) | 27.34 | 18.98 | 6 | 2.01 | 1.91 | (.71 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.49 | (.16 | ) | 5.67 | 5.51 | — | — | — | 23.00 | 31.50 | 2 | 2.43 | 1.93 | (.78 | ) | ||||||||||||||||||||||||||||||||||||||||
Period from 6/19/2002 to 9/30/2002 | 21.60 | (.04 | ) | (4.07 | ) | (4.11 | ) | — | — | — | 17.49 | (19.03 | ) | — | (8)7.56 | .54 | (.22 | ) | |||||||||||||||||||||||||||||||||||||
Class R-2: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 37.93 | .05 | 6.37 | 6.42 | (.40 | ) | (3.61 | ) | (4.01 | ) | 40.34 | 17.49 | 545 | 1.95 | (6 | ) | 1.78 | (6 | ) | .26 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 34.09 | (.03 | ) | 4.83 | 4.80 | (.28 | ) | (.68 | ) | (.96 | ) | 37.93 | 14.35 | 414 | 2.06 | 1.80 | (.09 | ) | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.36 | (.01 | ) | 6.90 | 6.89 | (.16 | ) | — | (.16 | ) | 34.09 | 25.28 | 258 | 2.17 | 1.82 | (.03 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.00 | (.18 | ) | 4.56 | 4.38 | (.02 | ) | — | (.02 | ) | 27.36 | 19.05 | 131 | 2.30 | 1.88 | (.67 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.49 | (.15 | ) | 5.66 | 5.51 | — | — | — | 23.00 | 31.50 | 46 | 2.59 | 1.89 | (.75 | ) | ||||||||||||||||||||||||||||||||||||||||
Period from 5/31/2002 to 9/30/2002 | 22.62 | (.05 | ) | (5.08 | ) | (5.13 | ) | — | — | — | 17.49 | (22.68 | ) | 2 | .85 | .63 | (.29 | ) | |||||||||||||||||||||||||||||||||||||
Class R-3: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 38.34 | .13 | 6.44 | 6.57 | (.56 | ) | (3.61 | ) | (4.17 | ) | 40.74 | 17.72 | 440 | 1.44 | (6 | ) | 1.37 | (6 | ) | .66 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 34.39 | .11 | 4.87 | 4.98 | (.35 | ) | (.68 | ) | (1.03 | ) | 38.34 | 14.82 | 319 | 1.49 | 1.42 | .30 | |||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.58 | .11 | 6.96 | 7.07 | (.26 | ) | — | (.26 | ) | 34.39 | 25.75 | 188 | 1.51 | 1.44 | .36 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.12 | (.08 | ) | 4.59 | 4.51 | (.05 | ) | — | (.05 | ) | 27.58 | 19.52 | 85 | 1.55 | 1.49 | (.28 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.51 | (.07 | ) | 5.68 | 5.61 | — | — | — | 23.12 | 32.04 | 30 | 1.67 | 1.51 | (.37 | ) | ||||||||||||||||||||||||||||||||||||||||
Period from 6/20/2002 to 9/30/2002 | 21.43 | (.02 | ) | (3.90 | ) | (3.92 | ) | — | — | — | 17.51 | (18.29 | ) | 2 | .52 | .42 | (.11 | ) | |||||||||||||||||||||||||||||||||||||
Class R-4: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 38.73 | .21 | 6.51 | 6.72 | (.72 | ) | (3.61 | ) | (4.33 | ) | 41.12 | 17.97 | 183 | 1.07 | (6 | ) | 1.01 | (6 | ) | 1.02 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 34.68 | .25 | 4.91 | 5.16 | (.43 | ) | (.68 | ) | (1.11 | ) | 38.73 | 15.20 | 126 | 1.11 | 1.04 | .67 | |||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.79 | .23 | 7.01 | 7.24 | (.35 | ) | — | (.35 | ) | 34.68 | 26.25 | 67 | 1.12 | 1.06 | .74 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.22 | .02 | 4.61 | 4.63 | (.06 | ) | — | (.06 | ) | 27.79 | 19.95 | 20 | 1.13 | 1.13 | .07 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.53 | — | (7 | ) | 5.69 | 5.69 | — | — | — | 23.22 | 32.46 | 10 | 1.17 | 1.16 | (.02 | ) | |||||||||||||||||||||||||||||||||||||||
Period from 7/24/2002 to 9/30/2002 | 18.55 | (.01 | ) | (1.01 | ) | (1.02 | ) | — | — | — | 17.53 | (5.50 | ) | — | (8).70 | .21 | (.03 | ) | |||||||||||||||||||||||||||||||||||||
Class R-5: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2007 | (5 | ) | 39.10 | .27 | 6.57 | 6.84 | (.83 | ) | (3.61 | ) | (4.44 | ) | 41.50 | 18.12 | 288 | .79 | (6 | ) | .72 | (6 | ) | 1.31 | (6 | ) | |||||||||||||||||||||||||||||||
Year ended 9/30/2006 | 34.93 | .36 | 4.97 | 5.33 | (.48 | ) | (.68 | ) | (1.16 | ) | 39.10 | 15.60 | 216 | .80 | .74 | .97 | |||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.97 | .33 | 7.05 | 7.38 | (.42 | ) | — | (.42 | ) | 34.93 | 26.62 | 142 | .81 | .76 | 1.04 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.33 | .10 | 4.64 | 4.74 | (.10 | ) | — | (.10 | ) | 27.97 | 20.34 | 105 | .82 | .81 | .36 | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.55 | .05 | 5.73 | 5.78 | — | — | — | 23.33 | 32.93 | 72 | .83 | .83 | .28 | ||||||||||||||||||||||||||||||||||||||||||
Period from 5/15/2002 to 9/30/2002 | 23.36 | — | (7 | ) | (5.81 | ) | (5.81 | ) | — | — | — | 17.55 | (24.87 | ) | 53 | .31 | .31 | .01 |
Six months ended March 31, | Year ended September 30 | ||||||||||||||||||
2007(5 | ) | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||
Portfolio turnover rate for all classes of shares | 26 | % | 45 | % | 45 | % | 48 | % | 49 | % | 51 | % |
(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 all 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 for all share classes. |
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. |
(7) Amount less than $.01. |
(8) Amount less than $1 million. |
Expense example
unaudited
As a shareholder of the fund, you incur two types of costs: (1) transaction costs such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2006, through March 31, 2007).
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. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.
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. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated on the previous page. In addition, your ending account value would also be lower by the amount of these fees.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning account value 10/1/2006 | Ending account value 3/31/2007 | Expenses paid during period* | Annualized expense ratio | ||||||||||
Class A -- actual return | $ | 1,000.00 | $ | 1,179.64 | $ | 5.43 | 1.00 | % | |||||
Class A -- assumed 5% return | 1,000.00 | 1,019.95 | 5.04 | 1.00 | |||||||||
Class B -- actual return | 1,000.00 | 1,175.30 | 9.55 | 1.76 | |||||||||
Class B -- assumed 5% return | 1,000.00 | 1,016.16 | 8.85 | 1.76 | |||||||||
Class C -- actual return | 1,000.00 | 1,174.87 | 9.76 | 1.80 | |||||||||
Class C -- assumed 5% return | 1,000.00 | 1,015.96 | 9.05 | 1.80 | |||||||||
Class F -- actual return | 1,000.00 | 1,179.78 | 5.43 | 1.00 | |||||||||
Class F -- assumed 5% return | 1,000.00 | 1,019.95 | 5.04 | 1.00 | |||||||||
Class 529-A -- actual return | 1,000.00 | 1,179.36 | 5.65 | 1.04 | |||||||||
Class 529-A -- assumed 5% return | 1,000.00 | 1,019.75 | 5.24 | 1.04 | |||||||||
Class 529-B -- actual return | 1,000.00 | 1,174.57 | 10.08 | 1.86 | |||||||||
Class 529-B -- assumed 5% return | 1,000.00 | 1,015.66 | 9.35 | 1.86 | |||||||||
Class 529-C -- actual return | 1,000.00 | 1,174.54 | 10.08 | 1.86 | |||||||||
Class 529-C -- assumed 5% return | 1,000.00 | 1,015.66 | 9.35 | 1.86 | |||||||||
Class 529-E -- actual return | 1,000.00 | 1,177.61 | 7.33 | 1.35 | |||||||||
Class 529-E -- assumed 5% return | 1,000.00 | 1,018.20 | 6.79 | 1.35 | |||||||||
Class 529-F -- actual return | 1,000.00 | 1,180.27 | 4.62 | .85 | |||||||||
Class 529-F -- assumed 5% return | 1,000.00 | 1,020.69 | 4.28 | .85 | |||||||||
Class R-1 -- actual return | 1,000.00 | 1,175.13 | 9.71 | 1.79 | |||||||||
Class R-1 -- assumed 5% return | 1,000.00 | 1,016.01 | 9.00 | 1.79 | |||||||||
Class R-2 -- actual return | 1,000.00 | 1,174.94 | 9.65 | 1.78 | |||||||||
Class R-2 -- assumed 5% return | 1,000.00 | 1,016.06 | 8.95 | 1.78 | |||||||||
Class R-3 -- actual return | 1,000.00 | 1,177.18 | 7.44 | 1.37 | |||||||||
Class R-3 -- assumed 5% return | 1,000.00 | 1,018.10 | 6.89 | 1.37 | |||||||||
Class R-4 -- actual return | 1,000.00 | 1,179.65 | 5.49 | 1.01 | |||||||||
Class R-4 -- assumed 5% return | 1,000.00 | 1,019.90 | 5.09 | 1.01 | |||||||||
Class R-5 -- actual return | 1,000.00 | 1,181.21 | 3.92 | .72 | |||||||||
Class R-5 -- assumed 5% return | 1,000.00 | 1,021.34 | 3.63 | .72 | |||||||||
* Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (182), and divided by 365 (to reflect the one-half year period). |
Other share class results
unaudited
Class B, Class C, Class F and Class 529
Figures shown are past results and are not predictive of results in 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, 2007: | ||||||||||
1 year | 5 years | Life of class | ||||||||
Class B shares — first sold 3/15/00 | ||||||||||
Reflecting applicable contingent deferred sales charge | ||||||||||
(CDSC), maximum of 5%, payable only if shares | ||||||||||
are sold within six years of purchase | +10.04 | % | +14.21 | % | +1.95 | % | ||||
Not reflecting CDSC | +15.04 | % | +14.45 | % | +1.95 | % | ||||
Class C shares — first sold 3/15/01 | ||||||||||
Reflecting CDSC, maximum of 1%, payable only if | ||||||||||
shares are sold within one year of purchase | +13.95 | % | +14.41 | % | +11.75 | % | ||||
Not reflecting CDSC | +14.95 | % | +14.41 | % | +11.75 | % | ||||
Class F shares* — first sold 3/15/01 | ||||||||||
Not reflecting annual asset-based fee charged by | ||||||||||
sponsoring firm | +15.93 | % | +15.32 | % | +12.66 | % | ||||
Class 529-A shares†— first sold 2/19/02 | ||||||||||
Reflecting 5.75% maximum sales charge | +9.20 | % | +13.95 | % | +15.39 | % | ||||
Not reflecting maximum sales charge | +15.88 | % | +15.31 | % | +16.73 | % | ||||
Class 529-B shares†— first sold 2/20/02 | ||||||||||
Reflecting applicable CDSC, maximum of 5%, payable | ||||||||||
only if shares are sold within six years of purchase | +9.90 | % | +14.05 | % | +15.45 | % | ||||
Not reflecting CDSC | +14.90 | % | +14.29 | % | +15.56 | % | ||||
Class 529-C shares†— first sold 2/20/02 | ||||||||||
Reflecting CDSC, maximum of 1%, payable only if | ||||||||||
shares are sold within one year of purchase | +13.89 | % | +14.30 | % | +15.57 | % | ||||
Not reflecting CDSC | +14.89 | % | +14.30 | % | +15.57 | % | ||||
Class 529-E shares*†— first sold 3/15/02 | +15.51 | % | +14.92 | % | +15.00 | % | ||||
Class 529-F shares*†— first sold 9/17/02 | ||||||||||
Not reflecting annual asset-based fee charged by | ||||||||||
sponsoring firm | +16.05 | % | — | +23.68 | % | |||||
*These shares are sold without any initial or contingent deferred sales charge. | ||||||||||
†Results shown do not reflect the $10 initial account setup fee and an annual $10 account maintenance fee. |
The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased it to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 26 to 29 for details.
For information regarding the differences among the various share classes, please refer to the fund’s prospectus.
Offices
Offices of the fund and of the
investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
135 South State College Boulevard
Brea, CA 92821-5823
Transfer agent for shareholder accounts
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 25065
Santa Ana, CA 92799-5065
P.O. Box 659522
San Antonio, TX 78265-9522
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Counsel
Paul, Hastings, Janofsky & Walker LLP
55 Second Street, 24th floor
San Francisco, CA 94105-3441
Independent registered public
accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s prospectus, which can be obtained from your financial adviser and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Guidelines” — which describes how we vote proxies relating to portfolio securities — is available free of charge on the U.S. Securities and Exchange Commission (SEC) website at sec.gov, on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the SEC for the 12 months ended June 30 by August 31. The report also is available on the SEC and American Funds websites.
A complete March 31, 2007, portfolio of SMALLCAP World Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).
SMALLCAP World Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS.
This report is for the information of shareholders of SMALLCAP World Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after June 30, 2007, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
[logo - American Funds®]
The right choice for the long term®
What makes American Funds different?
For 75 years, we have followed a consistent philosophy that we firmly believe is in our investors’ best interests. The range of opportunities offered by our family of just 30 carefully conceived, broadly diversified funds has attracted over 40 million shareholder accounts.
Our unique combination of strengths includes these five factors:
• A long-term, value-oriented approach
We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.
• An extensive global research effort
Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.
• The multiple portfolio counselor system
Our unique method of portfolio management, developed nearly 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.
• Experienced investment professionals
American Funds portfolio counselors have an average of 24 years of investment experience, providing a wealth of knowledge and experience that few organizations have.
• A commitment to low operating expenses
The American Funds provide exceptional value for shareholders, with operating expenses that are among the lowest in the mutual fund industry.
American Funds span a range of investment objectives
• Growth funds
AMCAP Fund®
EuroPacific Growth Fund®
The Growth Fund of America®
The New Economy Fund®
New Perspective Fund®
New World FundSM
> SMALLCAP World Fund®
• Growth-and-income funds
American Mutual Fund®
Capital World Growth and Income FundSM
Fundamental InvestorsSM
The Investment Company of America®
Washington Mutual Investors FundSM
• Equity-income funds
Capital Income Builder®
The Income Fund of America®
• Balanced fund
American Balanced Fund®
• Bond funds
American High-Income TrustSM
The Bond Fund of AmericaSM
Capital World Bond Fund®
Intermediate Bond Fund of America®
Short-Term Bond Fund of AmericaSM
U.S. Government Securities FundSM
• Tax-exempt bond funds
American High-Income Municipal Bond Fund®
Limited Term Tax-Exempt Bond Fund of AmericaSM
The Tax-Exempt Bond Fund of America®
State-specific tax-exempt funds
The Tax-Exempt Fund of California®
The Tax-Exempt Fund of Maryland®
The Tax-Exempt Fund of Virginia®
• Money market funds
The Cash Management Trust of America®
The Tax-Exempt Money Fund of AmericaSM
The U.S. Treasury Money Fund of AmericaSM
• American Funds Target Date Retirement SeriesSM
The Capital Group Companies
American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust
Lit. No. MFGESR-935-0507P
Litho in USA BBC/LPT/8094-S7475
Printed on recycled paper
ITEM 2 - Code of Ethics
Not applicable for filing of semi-annual reports to shareholders.
ITEM 3 - Audit Committee Financial Expert
Not applicable for filing of semi-annual reports to shareholders.
ITEM 4 - Principal Accountant Fees and Services
Not applicable for filing of semi-annual reports to shareholders.
ITEM 5 - Audit Committee of Listed Registrants
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6 - Schedule of Investments
[logo - American Funds®]
SMALLCAP World Fund®
Investment portfolio
March 31, 2007
unaudited
Common stocks — 92.66% | Shares | Market value (000) | |||||
CONSUMER DISCRETIONARY — 21.05% | |||||||
Jumbo SA1 | 4,824,956 | $ | 149,567 | ||||
Schibsted ASA | 3,138,000 | 138,714 | |||||
Central European Media Enterprises Ltd., Class A2 | 1,270,500 | 112,439 | |||||
Fourlis1 | 4,074,000 | 95,343 | |||||
CarMax, Inc.2 | 3,800,000 | 93,252 | |||||
Praktiker Bau- und Heimwerkermärkte Holding AG | 2,566,383 | 90,743 | |||||
Lions Gate Entertainment Corp.1,2 | 7,728,500 | 88,259 | |||||
Tupperware Brands Corp.1 | 3,300,000 | 82,269 | |||||
Cyrela Brazil Realty SA, ordinary nominative | 8,671,000 | 80,637 | |||||
Aristocrat Leisure Ltd. | 6,044,143 | 80,310 | |||||
Debenhams PLC | 23,270,000 | 79,945 | |||||
Big Lots, Inc.2 | 2,550,000 | 79,764 | |||||
American Axle & Manufacturing Holdings, Inc.1 | 2,850,000 | 77,947 | |||||
Banyan Tree Holdings Ltd.1,2 | 53,883,000 | 77,808 | |||||
Saks Inc.2 | 3,730,600 | 77,746 | |||||
Lojas Renner SA, ordinary nominative | 5,950,000 | 77,269 | |||||
Scientific Games Corp., Class A2 | 2,300,000 | 75,509 | |||||
Arbitron Inc.1 | 1,496,760 | 70,273 | |||||
CKE Restaurants, Inc.1 | 3,725,000 | 70,253 | |||||
Restaurant Group PLC | 8,986,555 | 64,578 | |||||
Korea Kumho Petrochemical Co., Ltd.1 | 1,810,940 | 63,253 | |||||
AB Lindex1 | 5,118,000 | 61,273 | |||||
Nitori Co., Ltd. | 1,226,000 | 61,076 | |||||
Pantaloon Retail (India) Ltd. | 6,643,120 | 60,536 | |||||
Bob Evans Farms, Inc. | 1,600,000 | 59,120 | |||||
Truworths International Ltd. | 11,675,000 | 57,041 | |||||
Rightmove PLC | 5,759,450 | 56,696 | |||||
CTC Media, Inc.2 | 2,200,000 | 56,496 | |||||
Jackson Hewitt Tax Service Inc.1 | 1,700,000 | 54,706 | |||||
Ekornes ASA1 | 2,237,598 | 53,701 | |||||
Toyoda Gosei Co., Ltd. | 2,250,000 | 53,271 | |||||
Cheil Industries Inc. | 1,300,000 | 52,180 | |||||
Hürriyet Gazetecilik ve Matbaacilik AS | 16,735,985 | 49,606 | |||||
ServiceMaster Co. | 3,200,000 | 49,248 | |||||
Getty Images, Inc.2 | 1,000,000 | 48,630 | |||||
Life Time Fitness, Inc.2 | 940,000 | 48,325 | |||||
Citi Trends, Inc.1,2 | 1,081,500 | 46,223 | |||||
Keihin Corp. | 1,999,600 | 45,472 | |||||
Polaris Industries Inc. | 900,000 | 43,182 | |||||
Café de Coral Holdings Ltd. | 23,750,000 | 42,921 | |||||
Blue Nile, Inc.1,2 | 1,040,375 | 42,302 | |||||
Trigano SA | 736,250 | 41,668 | |||||
GEOX SpA | 2,346,080 | 40,975 | |||||
Bijou Brigitte modische Accessoires AG | 175,830 | 40,916 | |||||
Pinnacle Entertainment, Inc.2 | 1,300,000 | 37,791 | |||||
Applebee’s International, Inc. | 1,525,000 | 37,789 | |||||
Tokai Rika Co., Ltd. | 1,510,600 | 35,893 | |||||
GOME Electrical Appliances Holding Ltd. | 31,663,000 | 35,216 | |||||
Fleetwood Enterprises, Inc.1,2 | 4,405,000 | 34,844 | |||||
IBT Education Ltd.1 | 21,727,690 | 34,327 | |||||
Galaxy Entertainment Group Ltd.2 | 34,839,000 | 34,111 | |||||
P.F. Chang’s China Bistro, Inc.2 | 800,000 | 33,504 | |||||
Kuoni Reisen Holding AG, Class B2 | 55,400 | 33,311 | |||||
Cheng Shin Rubber (Xiamen) Ind., Ltd. | 34,323,477 | 32,057 | |||||
Cedar Fair, L.P. | 1,118,100 | 31,933 | |||||
RNB Retail and Brands AB | 2,655,000 | 31,786 | |||||
Halfords Group PLC | 4,200,000 | 31,608 | |||||
Quiksilver, Inc.2 | 2,600,000 | 30,160 | |||||
Select Comfort Corp.2 | 1,687,500 | 30,037 | |||||
Lifestyle International Holdings Ltd. | 9,975,000 | 30,002 | |||||
ValueVision Media, Inc., Class A1,2 | 2,400,000 | 29,664 | |||||
Williams-Sonoma, Inc. | 830,000 | 29,432 | |||||
Musashi Seimitsu Industry Co., Ltd. | 1,071,700 | 28,972 | |||||
Hemtex AB1 | 1,435,000 | 28,239 | |||||
Nishimatsuya Chain Co., Ltd. | 1,667,000 | 28,201 | |||||
Shuffle Master, Inc.2 | 1,530,000 | 27,922 | |||||
Stockmann Oyj, Class B | 637,000 | 27,881 | |||||
Entertainment Rights PLC1,2 | 42,500,000 | 27,822 | |||||
Hana Tour Service Inc. | 338,200 | 26,179 | |||||
Valassis Communications, Inc.2 | 1,500,000 | 25,785 | |||||
Nobia AB | 627,000 | 25,711 | |||||
Valentino Fashion Group SpA | 635,000 | 25,679 | |||||
Blyth, Inc. | 1,175,000 | 24,804 | |||||
Talbots, Inc. | 1,049,875 | 24,798 | |||||
PETsMART, Inc. | 750,000 | 24,720 | |||||
Hankook Tire Co., Ltd. | 1,490,000 | 24,715 | |||||
Nien Made Enterprise Co., Ltd.1 | 26,156,000 | 24,429 | |||||
Furniture Brands International, Inc. | 1,500,000 | 23,670 | |||||
XM Satellite Radio Holdings Inc., Class A2 | 1,800,000 | 23,256 | |||||
Zumiez Inc.2 | 570,000 | 22,868 | |||||
Children’s Place Retail Stores, Inc.2 | 400,000 | 22,304 | |||||
Denny’s Corp.2 | 4,500,000 | 22,050 | |||||
JJB Sports PLC | 4,390,500 | 21,718 | |||||
Crocs, Inc.2 | 450,000 | 21,262 | |||||
Bloomsbury Publishing PLC1 | 5,405,000 | 21,070 | |||||
Tractor Supply Co.2 | 403,700 | 20,791 | |||||
Handsome Co. Ltd. | 1,290,000 | 19,820 | |||||
Alma Media Corp. | 1,521,478 | 18,821 | |||||
Urban Outfitters, Inc.2 | 675,000 | 17,894 | |||||
Triarc Companies, Inc., Class A | 950,000 | 17,793 | |||||
Ruby Tuesday, Inc. | 600,000 | 17,160 | |||||
Asahi India Glass Ltd. | 6,185,163 | 17,113 | |||||
Fisher & Paykel Appliances Holdings Ltd. | 6,450,000 | 16,911 | |||||
Prime Success International Group Ltd. | 15,200,000 | 16,439 | |||||
Carpetright PLC | 692,213 | 15,850 | |||||
Fu Sheng Industrial Co., Ltd. | 16,025,920 | 15,597 | |||||
Pumpkin Patch Ltd. | 4,970,107 | 15,374 | |||||
Austar United Communications Ltd.2 | 11,671,576 | 14,752 | |||||
Fossil, Inc.2 | 548,000 | 14,506 | |||||
OSIM International Ltd. | 23,336,000 | 14,464 | |||||
TAKKT AG | 801,778 | 14,411 | |||||
TOD’S SpA | 162,000 | 14,129 | |||||
YBM Sisa.com Inc.1 | 673,198 | 13,994 | |||||
Submarino SA, ordinary nominative | 400,000 | 13,502 | |||||
Bright Horizons Family Solutions, Inc.2 | 350,000 | 13,213 | |||||
Rambler Media Ltd.2 | 277,360 | 13,036 | |||||
Advance Auto Parts, Inc. | 325,000 | 12,529 | |||||
Progressive Gaming International Corp.1,2 | 2,773,000 | 12,479 | |||||
BJ’s Restaurants Inc.2 | 590,000 | 12,467 | |||||
La-Z-Boy Inc. | 1,000,000 | 12,380 | |||||
Gafisa SA, ordinary nominative | 900,000 | 11,381 | |||||
Chipotle Mexican Grill, Inc., Class A2 | 175,000 | 10,868 | |||||
Audible, Inc.2 | 1,045,536 | 10,863 | |||||
Land & Houses PCL | 50,000,000 | 10,568 | |||||
ElringKlinger AG | 135,000 | 10,509 | |||||
Sharper Image Corp.1,2 | 950,000 | 10,498 | |||||
Haseko Corp.2 | 2,830,000 | 10,345 | |||||
Formosa International Hotels Corp. | 755,756 | 8,406 | |||||
Largan Precision Co., Ltd. | 553,000 | 8,048 | |||||
Restoration Hardware, Inc.2 | 1,200,000 | 7,872 | |||||
Next Media Ltd. | 22,100,000 | 7,609 | |||||
GMARKET INC. (ADR)2 | 400,000 | 6,948 | |||||
Fontainebleau Resorts, LLC, Class A, units2,3,4 | 650,000 | 6,500 | |||||
Rinnai Corp. | 230,000 | 6,140 | |||||
TVN SA2 | 666,005 | 6,065 | |||||
Gaming VC Holdings SA1 | 2,023,800 | 5,439 | |||||
Spot Runner, Inc.2,3,4 | 1,084,011 | 4,000 | |||||
Zhejiang Glass Co. Ltd., Class H2 | 11,499,400 | 3,989 | |||||
Sanctuary Group PLC1,2 | 14,412,733 | 3,618 | |||||
Nien Hsing Textile Co., Ltd. | 3,000,000 | 1,904 | |||||
Hi-Lex Corp. | 3,200 | 53 | |||||
4,696,010 | |||||||
INDUSTRIALS — 15.18% | |||||||
Samsung Engineering Co., Ltd.1 | 2,587,640 | 161,229 | |||||
Container Corp. of India Ltd. | 2,891,794 | 130,701 | |||||
MSC Industrial Direct Co., Inc., Class A | 2,175,000 | 101,529 | |||||
GS Engineering & Construction Corp. | 1,072,127 | 95,984 | |||||
Murray & Roberts Holdings Ltd. | 12,288,000 | 94,638 | |||||
Michael Page International PLC | 8,346,190 | 87,993 | |||||
JetBlue Airways Corp.2 | 7,450,000 | 85,749 | |||||
Buhrmann NV | 6,238,600 | 84,096 | |||||
Klöckner & Co AG2 | 1,447,000 | 79,628 | |||||
A-TEC Industries AG1,2 | 369,550 | 78,375 | |||||
Corrections Corporation of America2 | 1,425,000 | 75,254 | |||||
LS Industrial Systems Co., Ltd.1 | 1,950,000 | 72,360 | |||||
MISUMI Group Inc. | 3,462,000 | 62,100 | |||||
Mine Safety Appliances Co. | 1,375,500 | 57,854 | |||||
Genesis Lease Ltd. (ADR)1,2 | 2,165,000 | 56,615 | |||||
Daelim Industrial Co., Ltd. | 588,640 | 56,392 | |||||
ELLINIKI TECHNODOMIKI TEB SA | 3,810,000 | 56,046 | |||||
United Stationers Inc.2 | 912,200 | 54,659 | |||||
Actuant Corp., Class A | 1,075,000 | 54,621 | |||||
UAP Holding Corp. | 2,020,300 | 52,225 | |||||
Transmile Group Bhd.1 | 13,670,000 | 51,816 | |||||
Hyundai Mipo Dockyard Co., Ltd. | 274,370 | 50,615 | |||||
Downer EDI Ltd. | 9,029,756 | 49,894 | |||||
ALL - América Latina Logística, units | 3,960,000 | 48,113 | |||||
Singapore Post Private Ltd. | 65,261,664 | 47,765 | |||||
Northgate PLC | 2,230,000 | 47,373 | |||||
IJM Corp. Bhd. | 18,840,000 | 47,155 | |||||
ChoicePoint Inc.2 | 1,150,000 | 43,045 | |||||
Michaniki SA1 | 4,350,000 | 33,740 | |||||
Michaniki SA, preference shares1 | 1,687,900 | 9,029 | |||||
Acuity Brands, Inc. | 727,000 | 39,578 | |||||
Grupo Aeroportuario del Pacífico, SAB de CV, Class B (ADR) | 909,300 | 39,100 | |||||
American Reprographics Co.2 | 1,250,000 | 38,488 | |||||
Pyeong San Co., Ltd.1 | 1,150,140 | 35,220 | |||||
Samsung Techwin Co., Ltd. | 896,960 | 34,190 | |||||
Wilh. Wilhelmsen ASA, Class A | 799,600 | 32,576 | |||||
Bradken Ltd. | 4,389,221 | 31,330 | |||||
Uponor Oyj | 881,100 | 31,178 | |||||
STX Shipbuilding Co., Ltd. | 1,315,191 | 29,646 | |||||
Pentair, Inc. | 950,000 | 29,602 | |||||
Chart Industries, Inc.1,2 | 1,613,500 | 29,301 | |||||
Delachaux SA | 304,000 | 29,222 | |||||
Grontmij NV | 197,500 | 29,053 | |||||
Kingspan Group PLC | 1,020,000 | 27,076 | |||||
Shenzhen Expressway Co., Ltd., Class H | 42,916,000 | 26,969 | |||||
Kelly Services, Inc., Class A | 800,000 | 25,760 | |||||
Seco Tools AB, Class B | 1,400,000 | 25,693 | |||||
Minebea Co., Ltd. | 4,080,000 | 25,320 | |||||
TK Corp.1 | 1,580,000 | 25,199 | |||||
KBR, Inc.2 | 1,184,000 | 24,094 | |||||
G&K Services, Inc., Class A | 650,000 | 23,582 | |||||
Aboitiz Equity Ventures, Inc. | 134,250,000 | 23,190 | |||||
Kyeryong Construction Industrial Co., Ltd.1 | 559,250 | 22,685 | |||||
Hyundai Engineering & Construction Co., Ltd.2 | 420,000 | 22,641 | |||||
Federal Signal Corp. | 1,425,000 | 22,116 | |||||
Trakya Cam Sanayii AS | 6,873,293 | 20,966 | |||||
EnerSys2 | 1,200,000 | 20,616 | |||||
Hagemeyer NV2 | 4,310,000 | 20,519 | |||||
Emeco Holdings Ltd. | 14,010,000 | 20,148 | |||||
TransDigm Group Inc.2 | 550,000 | 20,009 | |||||
Corporate Executive Board Co. | 250,000 | 18,990 | |||||
Altra Holdings, Inc.1,2 | 1,370,548 | 18,790 | |||||
Nexans SA | 135,000 | 17,873 | |||||
OSG CORP. | 1,164,000 | 17,673 | |||||
Ballast Nedam NV | 337,495 | 17,038 | |||||
Houston Wire & Cable Co.2 | 600,000 | 16,812 | |||||
Permasteelisa SpA | 615,000 | 15,626 | |||||
Österreichische Post AG2 | 375,660 | 15,624 | |||||
Chen Hsong Holdings Ltd. | 23,696,000 | 15,467 | |||||
Grupo Aeroportuario del Centro Norte, SAB de CV, Series B (ADR)2 | 550,000 | 14,911 | |||||
Spirax-Sarco Engineering PLC | 728,000 | 14,784 | |||||
Halla Engineering & Construction Corp.1 | 626,000 | 14,610 | |||||
Silitech Technology Corp. | 2,896,598 | 14,139 | |||||
Hyunjin Materials Co., Ltd. | 547,100 | 13,670 | |||||
CoStar Group, Inc.2 | 300,000 | 13,404 | |||||
Briggs & Stratton Corp. | 425,000 | 13,111 | |||||
Intertek Group PLC | 700,000 | 12,493 | |||||
Royal Boskalis Westminster NV | 124,600 | 12,414 | |||||
Santos-Brasil SA, units | 1,000,000 | 12,403 | |||||
Wabash National Corp. | 800,000 | 12,336 | |||||
Hubbell Inc., Class B | 250,000 | 12,060 | |||||
Havell’s India Ltd. | 1,150,335 | 11,650 | |||||
Rollins, Inc. | 500,000 | 11,505 | |||||
Geberit AG | 7,400 | 11,414 | |||||
Taiwan Secom Co., Ltd. | 6,986,900 | 11,171 | |||||
Herman Miller, Inc. | 327,500 | 10,968 | |||||
InnerWorkings, Inc.2 | 925,000 | 10,915 | |||||
KCC Corp. | 35,800 | 10,829 | |||||
Krones AG | 55,000 | 10,812 | |||||
Prosegur Compañía de Seguridad, SA | 282,000 | 10,706 | |||||
Goodpack Ltd. | 10,448,000 | 10,403 | |||||
Curtiss-Wright Corp. | 268,600 | 10,352 | |||||
Latécoère SA | 323,626 | 9,803 | |||||
Huron Consulting Group Inc.2 | 158,000 | 9,613 | |||||
Stork NV | 184,800 | 9,490 | |||||
Aker American Shipping ASA2 | 544,600 | 9,162 | |||||
Hong Kong Aircraft Engineering Co. Ltd. | 600,000 | 9,138 | |||||
Grafton Group PLC, units2 | 575,000 | 8,651 | |||||
Max India Ltd.2 | 1,795,000 | 8,646 | |||||
Vedior NV | 385,000 | 8,557 | |||||
NEPES Corp.2 | 701,634 | 6,528 | |||||
Korea Electric Terminal Co., Ltd. | 350,000 | 6,066 | |||||
Ansaldo STS SpA2 | 390,000 | 5,154 | |||||
SembCorp Marine Ltd. | 2,000,000 | 4,642 | |||||
Sino-Thai Engineering and Construction PCL | 30,400,000 | 3,734 | |||||
Imagelinx PLC1,2 | 21,385,714 | 737 | |||||
ZOOTS1,2,3,4 | 25,173 | 234 | |||||
3,386,768 | |||||||
INFORMATION TECHNOLOGY — 12.40% | |||||||
Kingboard Chemical Holdings Ltd.1 | 49,934,200 | 209,945 | |||||
Novell, Inc.1,2 | 17,978,000 | 129,801 | |||||
Tripod Technology Corp.1 | 24,979,920 | 102,683 | |||||
CNET Networks, Inc.1,2 | 10,655,000 | 92,805 | |||||
ValueClick, Inc.2 | 3,200,000 | 83,616 | |||||
Semtech Corp.1,2 | 5,800,000 | 78,184 | |||||
SEEK Ltd. | 13,202,108 | 77,014 | |||||
Venture Corp. Ltd. | 5,969,600 | 57,468 | |||||
NHN Corp.2 | 382,530 | 56,129 | |||||
NAVTEQ Corp.2 | 1,558,300 | 53,761 | |||||
Kingboard Laminates Holdings Ltd.2 | 54,686,236 | 52,704 | |||||
SkillSoft PLC (ADR)1,2 | 6,250,000 | 52,250 | |||||
Net 1 UEPS Technologies, Inc.2 | 2,043,000 | 50,830 | |||||
TIBCO Software Inc.2 | 5,862,500 | 49,948 | |||||
Mentor Graphics Corp.2 | 3,000,000 | 49,020 | |||||
Red Hat, Inc.2 | 2,050,000 | 47,006 | |||||
Fairchild Semiconductor International, Inc.2 | 2,665,000 | 44,559 | |||||
Konami Corp. | 1,662,400 | 44,517 | |||||
Gartner, Inc.2 | 1,850,000 | 44,307 | |||||
Littelfuse, Inc.2 | 950,000 | 38,570 | |||||
Unisteel Technology Ltd.1 | 19,682,000 | 38,154 | |||||
NCsoft Corp.2 | 577,000 | 37,976 | |||||
SINA Corp.2 | 1,110,000 | 37,307 | |||||
Cypress Semiconductor Corp.2 | 2,000,000 | 37,100 | |||||
MoneyGram International, Inc. | 1,250,000 | 34,700 | |||||
Diebold, Inc. | 725,700 | 34,623 | |||||
Vishay Intertechnology, Inc.2 | 2,350,000 | 32,853 | |||||
Marchex, Inc., Class B1 | 2,125,000 | 32,555 | |||||
Tessera Technologies, Inc.2 | 800,000 | 31,792 | |||||
Wacom Co., Ltd. | 11,282 | 31,555 | |||||
ORBCOMM Inc.1,2 | 2,456,000 | 31,314 | |||||
Veeco Instruments Inc.1,2 | 1,598,523 | 31,171 | |||||
Hana Microelectronics PCL | 40,425,000 | 30,310 | |||||
webMethods, Inc.1,2 | 4,105,000 | 29,515 | |||||
Intersil Corp., Class A | 1,107,105 | 29,327 | |||||
MacDonald, Dettwiler and Associates Ltd.2 | 700,000 | 29,113 | |||||
Bankrate, Inc.2 | 825,137 | 29,078 | |||||
National Instruments Corp. | 1,052,000 | 27,594 | |||||
Rogers Corp.2 | 600,000 | 26,610 | |||||
Internet Capital Group, Inc.1,2 | 2,400,000 | 25,680 | |||||
Orbotech Ltd.2 | 1,128,317 | 24,857 | |||||
SRA International, Inc., Class A2 | 1,000,000 | 24,360 | |||||
O2Micro International Ltd. (ADR)1,2 | 3,055,000 | 24,135 | |||||
Spansion Inc., Class A2 | 1,870,400 | 22,800 | |||||
ASM Pacific Technology Ltd. | 3,840,000 | 22,657 | |||||
SFA Engineering Corp.1 | 592,140 | 22,036 | |||||
austriamicrosystems AG, non-registered shares2 | 375,000 | 22,022 | |||||
Echelon Corp.1,2 | 2,000,000 | 21,080 | |||||
Ichia Technologies, Inc.1,2 | 16,995,177 | 19,623 | |||||
Unimicron Technology Corp. | 14,571,450 | 18,872 | |||||
Euronet Worldwide, Inc.2 | 471,000 | 12,651 | |||||
Euronet Worldwide, Inc.2,3 | 200,000 | 5,372 | |||||
Knot, Inc.2,3 | 670,000 | 14,425 | |||||
Knot, Inc.2 | 150,000 | 3,230 | |||||
Chartered Semiconductor Manufacturing Ltd2 | 18,440,000 | 17,630 | |||||
Varian Semiconductor Equipment Associates, Inc.2 | 325,000 | 17,349 | |||||
Sanken Electric Co., Ltd. | 1,625,000 | 17,075 | |||||
SEZ Holding AG, Class A2 | 507,000 | 16,769 | |||||
CDNetworks Co., Ltd.1,2 | 584,000 | 16,579 | |||||
Cree, Inc.2 | 1,000,000 | 16,460 | |||||
Spark Networks PLC (GDR)1,2 | 1,300,000 | 7,997 | |||||
Spark Networks PLC (ADR)1,2 | 1,103,000 | 7,015 | |||||
Integrated Device Technology, Inc.2 | 960,000 | 14,803 | |||||
Chicony Electronics Co., Ltd. | 9,733,500 | 14,563 | |||||
McAfee, Inc.2 | 500,000 | 14,540 | |||||
SupportSoft, Inc.1,2 | 2,554,400 | 14,407 | |||||
Vaisala Oyj, Class A | 273,295 | 12,784 | |||||
Compal Electronics, Inc. | 15,000,000 | 12,695 | |||||
ProMOS Technologies Inc.2 | 32,500,000 | 12,623 | |||||
LoopNet, Inc.2 | 722,300 | 12,344 | |||||
Rotork PLC | 730,300 | 12,185 | |||||
Cogent, Inc.2 | 900,000 | 12,105 | |||||
Wintek Corp. | 13,917,273 | 11,841 | |||||
Wistron Corp. | 7,625,000 | 11,569 | |||||
InfoSpace.com, Inc.2 | 450,000 | 11,552 | |||||
Advantech Co., Ltd. | 3,571,710 | 11,443 | |||||
Stratasys, Inc.2 | 266,000 | 11,364 | |||||
Celestica Inc.2 | 1,750,000 | 10,728 | |||||
Simmtech Co., Ltd. | 1,020,000 | 10,726 | |||||
Reunert Ltd. | 945,000 | 10,496 | |||||
Funcom NV1,2 | 2,750,000 | 10,342 | |||||
Techwell, Inc.2 | 825,000 | 10,288 | |||||
Global Imaging Systems, Inc.2 | 520,000 | 10,140 | |||||
Intermec, Inc.2 | 400,000 | 8,936 | |||||
Winbond Electronics Corp.2 | 25,000,000 | 8,879 | |||||
Symyx Technologies, Inc.2 | 495,000 | 8,771 | |||||
Taiflex Scientific Co., Ltd. | 4,463,663 | 7,812 | |||||
PMC-Sierra, Inc.2 | 1,100,000 | 7,711 | |||||
Advanced Semiconductor Manufacturing Corp. Ltd., Class H2 | 69,294,000 | 7,539 | |||||
PDF Solutions, Inc.2 | 500,000 | 5,645 | |||||
Phoenix PDE Co., Ltd.1 | 1,500,000 | 5,215 | |||||
livedoor Co., Ltd.2,4 | 7,532,000 | 5,123 | |||||
Min Aik Technology Co., Ltd. | 2,360,000 | 4,779 | |||||
Sandvine Corp.2 | 1,460,000 | 4,312 | |||||
i2 Technologies, Inc.2 | 149,600 | 3,590 | |||||
Infoteria Corp.1,2,3,4 | 2,577 | 1,314 | |||||
KEC Holdings Co. Ltd.2 | 781,249 | 1,229 | |||||
Avid Technology, Inc.2 | 33,400 | 1,165 | |||||
Interflex Co., Ltd.2 | 163,893 | 992 | |||||
DK UIL Co., Ltd.2 | 140,000 | 841 | |||||
Orbiscom Ltd.2,3,4 | 3,905,874 | 156 | |||||
PixelFusion PLC2,3,4 | 2,300,000 | 128 | |||||
KEC Corp.2 | 100,040 | 103 | |||||
MMC AS2,3,4 | 4,150,000 | 7 | |||||
2,766,223 | |||||||
FINANCIALS — 10.74% | |||||||
Daegu Bank, Ltd.1 | 10,570,000 | 192,182 | |||||
Pusan Bank1 | 11,726,500 | 174,557 | |||||
IndyMac Bancorp, Inc. | 3,613,200 | 115,803 | |||||
ORCO PROPERTY GROUP SA1 | 580,507 | 97,419 | |||||
Greek Postal Savings Bank SA2 | 3,672,400 | 93,016 | |||||
MCB Bank Ltd. | 18,198,192 | 81,129 | |||||
Indiabulls Financial Services Ltd. | 8,069,292 | 78,184 | |||||
HDFC Bank Ltd. | 3,231,000 | 71,528 | |||||
Kotak Mahindra Bank Ltd. | 5,493,262 | 61,101 | |||||
East West Bancorp, Inc. | 1,617,000 | 59,457 | |||||
Indiabulls Real Estate Ltd.2 | 8,069,292 | 55,914 | |||||
Interhyp AG1,2 | 454,850 | 55,845 | |||||
National Bank of Pakistan | 13,437,060 | 50,763 | |||||
Topdanmark A/S2 | 235,700 | 45,707 | |||||
Unitech Corporate Parks PLC1,2 | 23,399,700 | 42,038 | |||||
Globe Trade Center SA2 | 2,350,000 | 41,876 | |||||
Dolphin Capital Investors Ltd.2 | 15,825,000 | 41,749 | |||||
Jammu and Kashmir Bank Ltd.1 | 2,617,000 | 39,052 | |||||
Central Pattana PCL | 56,461,000 | 38,060 | |||||
Banco de Oro Universal Bank | 28,000,000 | 34,964 | |||||
Bank of Georgia (GDR)2 | 1,161,850 | 34,286 | |||||
VastNed Retail NV | 321,849 | 32,840 | |||||
Ascendas Real Estate Investment Trust | 20,799,550 | 32,778 | |||||
Thanachart Capital PCL1 | 77,601,100 | 31,253 | |||||
China Banking Corp. | 1,713,750 | 31,029 | |||||
Cathay Real Estate Development Co. Ltd.2 | 51,250,000 | 30,129 | |||||
Wing Tai Holdings Ltd. | 14,000,000 | 29,355 | |||||
Centennial Bank Holdings, Inc.1,2,3 | 2,700,000 | 23,355 | |||||
Centennial Bank Holdings, Inc.1,2 | 661,700 | 5,724 | |||||
Northwest Bancorp, Inc. | 1,055,000 | 28,580 | |||||
AEON Credit Service (Asia) Co. Ltd. | 1,605,000 | 27,098 | |||||
BOK Financial Corp. | 530,000 | 26,251 | |||||
Mercury General Corp. | 471,000 | 24,982 | |||||
Allgreen Properties Ltd. | 21,457,500 | 24,760 | |||||
Banco Macro SA, Class B (ADR) | 707,400 | 24,009 | |||||
Brascan Residential Properties SA, ordinary nominative2 | 3,813,500 | 23,927 | |||||
JSE Ltd. | 2,450,000 | 23,923 | |||||
Banner Corp. | 555,000 | 23,060 | |||||
Umpqua Holdings Corp. | 854,700 | 22,880 | |||||
Kiatnakin Bank PCL | 25,555,900 | 21,169 | |||||
Federal Agricultural Mortgage Corp., Class C | 777,000 | 21,134 | |||||
AEON Mall Co., Ltd. | 706,800 | 20,790 | |||||
Oslo Børs Holding ASA | 200,467 | 20,170 | |||||
Crescent Real Estate Equities Co. | 1,000,000 | 20,060 | |||||
Wintrust Financial Corp. | 440,000 | 19,628 | |||||
Robinsons Land Corp., Class B | 41,188,300 | 16,715 | |||||
Hung Poo Real Estate Development Corp.1 | 16,367,000 | 16,251 | |||||
Banco Nossa Caixa SA, ordinary nominative | 1,099,000 | 15,673 | |||||
Greater Bay Bancorp | 570,000 | 15,327 | |||||
Hyundai Securities Co., Ltd. | 1,110,000 | 15,166 | |||||
Alabama National BanCorporation | 210,000 | 14,870 | |||||
Russian Real Estate Investment Co. AB, Series B2 | 314,225 | 14,687 | |||||
Daishin Securities Co., Ltd. | 608,000 | 14,190 | |||||
PT Bank Niaga Tbk | 169,092,000 | 13,720 | |||||
Tullett Prebon PLC | 1,285,000 | 12,220 | |||||
CapitaCommercial Trust Management Ltd. | 6,634,000 | 12,160 | |||||
City National Corp. | 150,000 | 11,040 | |||||
Wilmington Trust Corp. | 250,000 | 10,543 | |||||
SpareBank 1 SR-Bank | 337,452 | 9,908 | |||||
AmericanWest Bancorporation | 449,417 | 9,681 | |||||
TICON Property Fund1 | 30,400,000 | 8,683 | |||||
TICON Industrial Connection PCL2 | 16,803,000 | 8,543 | |||||
Sparebanken Midt-Norge | 650,000 | 8,523 | |||||
Amata Corp. PCL | 26,800,000 | 8,421 | |||||
Eurobancshares, Inc.2 | 879,700 | 7,970 | |||||
Sumitomo Real Estate Sales Co., Ltd. | 100,000 | 7,762 | |||||
First Niagara Financial Group, Inc. | 550,000 | 7,651 | |||||
First Regional Bancorp2,3 | 230,000 | 6,831 | |||||
SinoPac Financial Holdings Co. Ltd. | 14,658,000 | 6,734 | |||||
Public Financial Holdings Ltd. | 7,499,000 | 5,711 | |||||
Home Federal Bancorp, Inc. | 347,600 | 5,398 | |||||
Vineyard National Bancorp | 230,000 | 5,299 | |||||
Desert Community Bank | 231,000 | 4,389 | |||||
Heritage Financial Corp. | 128,300 | 3,208 | |||||
Siam City Bank PCL | 5,543,922 | 2,787 | |||||
Echo Investment SA2 | 60,000 | 2,363 | |||||
Dah Sing Financial Holdings Ltd. | 164,400 | 1,435 | |||||
2,397,373 | |||||||
HEALTH CARE — 10.50% | |||||||
Kyphon Inc.1,2 | 3,218,047 | 145,263 | |||||
Beckman Coulter, Inc. | 1,950,000 | 124,586 | |||||
Medicis Pharmaceutical Corp., Class A1 | 3,520,000 | 108,486 | |||||
Integra LifeSciences Holdings Corp.1,2 | 2,240,000 | 102,099 | |||||
Advanced Medical Optics, Inc.2 | 2,460,000 | 91,512 | |||||
Mentor Corp. | 1,930,000 | 88,780 | |||||
Sirona Dental Systems, Inc.2 | 1,660,000 | 57,204 | |||||
Grifols, SA2 | 3,387,600 | 54,453 | |||||
Hologic, Inc.2 | 911,034 | 52,512 | |||||
ResMed Inc2 | 877,000 | 44,174 | |||||
ResMed Inc (CDI)2 | 1,500,000 | 7,583 | |||||
VIASYS Healthcare Inc.2 | 1,494,000 | 50,781 | |||||
ArthroCare Corp.2 | 1,334,000 | 48,077 | |||||
American Medical Systems Holdings, Inc.2 | 2,250,000 | 47,633 | |||||
Sigma Pharmaceuticals Ltd. | 23,025,000 | 46,824 | |||||
STERIS Corp. | 1,750,000 | 46,480 | |||||
Greatbatch, Inc.1,2 | 1,744,400 | 44,482 | |||||
Vital Signs, Inc.1 | 835,000 | 43,403 | |||||
Rhön-Klinikum AG | 705,200 | 42,070 | |||||
FoxHollow Technologies, Inc.1,2 | 1,994,900 | 41,673 | |||||
Volcano Corp.1,2 | 2,173,800 | 39,150 | |||||
Hikma Pharmaceuticals PLC | 5,069,153 | 38,623 | |||||
Apollo Hospitals Enterprise Ltd.1 | 3,275,000 | 37,906 | |||||
Cochlear Ltd. | 691,699 | 36,270 | |||||
Valeant Pharmaceuticals International | 2,050,000 | 35,445 | |||||
Respironics, Inc.2 | 814,000 | 34,180 | |||||
Haemonetics Corp.2 | 721,000 | 33,707 | |||||
Fisher & Paykel Healthcare Corp. Ltd. | 12,600,000 | 32,675 | |||||
China Medical Technologies, Inc. (ADR)1,2 | 1,395,500 | 32,194 | |||||
NuVasive, Inc.2 | 1,309,000 | 31,089 | |||||
Advanced Magnetics, Inc.2 | 500,000 | 30,135 | |||||
BioMarin Pharmaceutical Inc.2 | 1,725,901 | 29,789 | |||||
IDEXX Laboratories, Inc.2 | 335,800 | 29,426 | |||||
Nakanishi Inc. | 246,000 | 28,755 | |||||
Applera Corp., Celera group2 | 1,940,000 | 27,548 | |||||
Par Pharmaceutical Companies, Inc.2 | 1,075,000 | 27,004 | |||||
Adams Respiratory Therapeutics, Inc.2 | 787,410 | 26,481 | |||||
PSS World Medical, Inc.2 | 1,200,000 | 25,368 | |||||
I-Flow Corp.1,2 | 1,719,000 | 25,338 | |||||
Apria Healthcare Group Inc.2 | 779,000 | 25,123 | |||||
Varian, Inc.2 | 400,000 | 23,304 | |||||
Cardiome Pharma Corp.2 | 2,250,000 | 22,838 | |||||
Intuitive Surgical, Inc.2 | 141,934 | 17,255 | |||||
Diversa Corp.2 | 2,100,000 | 16,401 | |||||
Invacare Corp. | 935,000 | 16,306 | |||||
Hythiam, Inc.1,2 | 2,350,000 | 15,980 | |||||
MWI Veterinary Supply, Inc.2 | 475,000 | 15,675 | |||||
Bausch & Lomb Inc. | 306,000 | 15,655 | |||||
Tecan Group Ltd. | 215,586 | 15,363 | |||||
Eclipsys Corp.2 | 775,000 | 14,934 | |||||
Gentium SpA (ADR)1,2,3 | 750,000 | 14,768 | |||||
Theravance, Inc.2 | 500,000 | 14,750 | |||||
A&D Pharma Holdings NV (GDR)2 | 958,000 | 14,413 | |||||
MGI PHARMA, Inc.2 | 600,000 | 13,482 | |||||
Senomyx, Inc.2 | 1,024,400 | 12,682 | |||||
LifeCycle Pharma A/S2 | 1,300,000 | 12,488 | |||||
Acorda Therapeutics, Inc.2 | 642,600 | 12,479 | |||||
EGIS NYRT | 107,000 | 12,230 | |||||
Exelixis, Inc.2 | 1,150,000 | 11,431 | |||||
Labopharm Inc.2 | 2,000,000 | 11,400 | |||||
Vical Inc.1,2 | 2,250,279 | 10,846 | |||||
Introgen Therapeutics, Inc.1,2 | 2,677,100 | 10,815 | |||||
Recordati SpA | 1,300,000 | 10,349 | |||||
Tong Ren Tang Technologies Co., Ltd., Class H | 5,824,000 | 10,302 | |||||
Amplifon SpA | 1,075,980 | 9,975 | |||||
Wright Medical Group, Inc.2 | 392,800 | 8,756 | |||||
Thermage, Inc.2 | 936,000 | 8,518 | |||||
ICU Medical, Inc.2 | 200,000 | 7,840 | |||||
BIOLASE Technology, Inc.2 | 800,000 | 7,784 | |||||
ZymoGenetics, Inc.2 | 500,000 | 7,780 | |||||
Dade Behring Holdings, Inc. | 175,000 | 7,674 | |||||
Arcadia Resources, Inc.2,3 | 3,749,999 | 7,425 | |||||
Speedel Holding AG2 | 42,810 | 6,331 | |||||
Cytokinetics, Inc.2 | 676,500 | 4,708 | |||||
Krka, dd, Novo mesto | 2,782 | 3,092 | |||||
Vision-Sciences, Inc.1,2 | 1,884,500 | 2,035 | |||||
Idenix Pharmaceuticals, Inc.2 | 175,000 | 1,278 | |||||
Allied Medical Ltd.2,4 | 147,030 | 14 | |||||
2,343,637 | |||||||
ENERGY — 6.27% | |||||||
OPTI Canada Inc.1,2 | 11,706,600 | 201,897 | |||||
OPTI Canada Inc.1,2,3 | 420,000 | 7,244 | |||||
Quicksilver Resources Inc.1,2 | 4,999,150 | 198,816 | |||||
UrAsia Energy Ltd.2 | 22,000,000 | 134,172 | |||||
Paladin Resources Ltd (Canada)2 | 9,025,000 | 71,405 | |||||
Paladin Resources Ltd2 | 985,243 | 7,767 | |||||
Oilexco Inc.2 | 6,808,600 | 50,561 | |||||
Oilexco Inc. (United Kingdom)2,3 | 2,900,000 | 21,668 | |||||
Oilexco Inc.2,3 | 520,000 | 3,862 | |||||
Denbury Resources Inc.2 | 2,519,000 | 75,041 | |||||
Denison Mines Corp.2 | 6,000,000 | 73,705 | |||||
Delta Petroleum Corp.1,2 | 3,029,000 | 69,546 | |||||
Bill Barrett Corp.2 | 1,893,500 | 61,368 | |||||
WorleyParsons Ltd. | 1,748,106 | 39,359 | |||||
BA Energy Inc.1,2,3,4 | 5,661,692 | 39,293 | |||||
First Calgary Petroleums Ltd. (United Kingdom)2 | 4,800,000 | 21,736 | |||||
First Calgary Petroleums Ltd.2 | 3,146,000 | 13,865 | |||||
Expro International Group PLC | 2,000,000 | 34,769 | |||||
Synenco Energy Inc., Class A1,2 | 2,151,000 | 22,150 | |||||
Synenco Energy Inc., Class A1,2,3 | 1,100,000 | 11,327 | |||||
VeraSun Energy Corp.2 | 1,392,900 | 27,677 | |||||
Regal Petroleum PLC1,2 | 7,817,000 | 27,240 | |||||
Energy Resources of Australia Ltd | 1,190,000 | 26,803 | |||||
FMC Technologies, Inc.2 | 350,000 | 24,416 | |||||
Warren Resources, Inc.2 | 1,750,000 | 22,802 | |||||
PNOC Energy Development Corp.2 | 170,090,000 | 21,593 | |||||
Southwestern Energy Co.2 | 500,000 | 20,490 | |||||
sxr Uranium One Inc.2 | 1,376,000 | 19,004 | |||||
Centennial Coal Co. Ltd. | 5,850,000 | 15,357 | |||||
China Oilfield Services Ltd., Class H | 12,895,000 | 10,365 | |||||
Sterling Energy PLC2 | 29,000,000 | 9,421 | |||||
Bankers Petroleum Ltd.2 | 13,703,800 | 6,776 | |||||
Bankers Petroleum Ltd.2,3 | 2,200,000 | 1,088 | |||||
Caspian Energy Inc. (United Kingdom)1,2 | 3,450,000 | 2,106 | |||||
Caspian Energy Inc.1,2 | 2,450,000 | 1,700 | |||||
Mart Resources, Inc.2,3,4 | 6,459,375 | 2,482 | |||||
1,398,871 | |||||||
MATERIALS — 5.42% | |||||||
Yamana Gold Inc. | 8,715,000 | 126,185 | |||||
Cleveland-Cliffs Inc | 1,700,000 | 108,817 | |||||
Sino-Forest Corp.1,2 | 9,422,800 | 107,087 | |||||
Inmet Mining Corp. | 1,500,000 | 82,632 | |||||
Dongkuk Steel Mill Co., Ltd. | 2,245,000 | 62,063 | |||||
Central African Mining & Exploration Co. PLC2 | 39,546,569 | 47,883 | |||||
Croda International PLC | 3,565,000 | 44,780 | |||||
AptarGroup, Inc. | 600,000 | 40,158 | |||||
Kemira Oyj | 1,705,000 | 39,081 | |||||
Kenmare Resources PLC1,2 | 39,316,000 | 37,542 | |||||
Peter Hambro Mining PLC2 | 1,690,000 | 37,432 | |||||
Reliance Steel & Aluminum Co. | 664,272 | 32,151 | |||||
Gammon Lake Resources Inc.2 | 1,539,200 | 27,107 | |||||
Owens-Illinois, Inc.2 | 1,000,000 | 25,770 | |||||
SSCP Co., Ltd.2 | 890,000 | 25,503 | |||||
Minerals Technologies Inc. | 380,000 | 23,621 | |||||
Eldorado Gold Corp.2 | 4,000,000 | 23,423 | |||||
Asian Paints Ltd. | 1,312,500 | 23,223 | |||||
Taiwan Cement Corp. | 26,705,769 | 22,520 | |||||
PT Semen Gresik | 5,000,000 | 21,820 | |||||
Aur Resources Inc. | 1,000,000 | 21,081 | |||||
James Hardie Industries Ltd. | 3,000,000 | 20,320 | |||||
Cementerie del Tirreno S.p.A. | 1,600,000 | 20,310 | |||||
Mineral Deposits Ltd.1,2 | 16,220,000 | 19,712 | |||||
Banro Corp.2.3 | 1,750,000 | 18,992 | |||||
Hanwha Chemical Corp. | 1,135,000 | 17,680 | |||||
Gem Diamonds Ltd.2 | 800,000 | 14,963 | |||||
Eastern Platinum Ltd.2 | 8,061,700 | 14,407 | |||||
Nikanor PLC2 | 1,612,945 | 13,814 | |||||
PT Indocement Tunggal Prakarsa Tbk | 21,125,000 | 11,813 | |||||
European Minerals Corp. (United Kingdom)2 | 6,880,000 | 6,996 | |||||
European Minerals Corp.2 | 3,300,000 | 3,349 | |||||
Hung Hing Printing Group Ltd. | 17,199,000 | 9,730 | |||||
Northern Orion Resources Inc.2,3 | 1,583,800 | 6,348 | |||||
Northern Orion Resources Inc.2 | 622,200 | 2,494 | |||||
Valspar Corp. | 300,000 | 8,349 | |||||
GPJ Ventures Ltd., subscription receipt2,3,4 | 12,500,000 | 8,133 | |||||
ACC Ltd. | 452,000 | 7,711 | |||||
Hanil Cement Co., Ltd. | 64,878 | 5,788 | |||||
Mwana Africa PLC2,3 | 5,980,000 | 5,533 | |||||
Energem Resources Inc.1,2 | 8,002,500 | 4,165 | |||||
Energem Resources Inc.1,2,3,4 | 2,200,000 | 893 | |||||
Oriel Resources PLC2,3 | 5,000,000 | 4,897 | |||||
Ivanhoe Mines Ltd.2 | 282,700 | 3,311 | |||||
Fuji Seal International, Inc. | 22,200 | 444 | |||||
1,210,031 | |||||||
CONSUMER STAPLES — 3.16% | |||||||
Lindt & Sprüngli AG, participation certificate | 19,166 | 50,397 | |||||
Lindt & Sprüngli AG | 1,694 | 48,295 | |||||
Coca-Cola Icecek AS, Class C2 | 7,623,603 | 61,428 | |||||
Olam International Ltd. | 30,391,000 | 61,319 | |||||
China Mengniu Dairy Co. | 16,507,000 | 47,219 | |||||
AMOREPACIFIC Corp. | 85,164 | 46,906 | |||||
Bare Escentuals, Inc.2 | 1,058,800 | 37,979 | |||||
PT Sinar Mas Agro Resources and Technology Tbk2 | 88,230,000 | 34,828 | |||||
Delta and Pine Land Co. | 800,000 | 32,960 | |||||
BJ’s Wholesale Club, Inc.2 | 948,000 | 32,071 | |||||
Anadolu Efes Biracılık ve Malt Sanayii AS¸ | 900,000 | 29,622 | |||||
Massmart Holdings Limited | 2,515,000 | 29,196 | |||||
WD-40 Co.1 | 900,000 | 28,539 | |||||
Hite Brewery Co., Ltd. | 210,000 | 25,120 | |||||
Church & Dwight Co., Inc. | 474,500 | 23,891 | |||||
Fresh Del Monte Produce Inc. | 1,100,000 | 22,055 | |||||
Poslovni sistem Mercator, dd | 63,333 | 21,083 | |||||
Green Mountain Coffee Roasters, Inc.2 | 300,000 | 18,915 | |||||
Universal Robina Corp. | 51,235,000 | 18,393 | |||||
Nireus Aquaculture SA1 | 2,075,000 | 11,710 | |||||
IAWS Group PLC | 477,000 | 11,099 | |||||
PGG Wrightson Ltd. | 8,759,414 | 9,262 | |||||
Cawachi Ltd. | 122,800 | 3,330 | |||||
705,617 | |||||||
TELECOMMUNICATION SERVICES — 1.94% | |||||||
DiGi.Com Bhd. | 19,308,700 | 104,477 | |||||
Time Warner Telecom Inc., Class A2 | 3,600,000 | 74,772 | |||||
LG Telecom Ltd.2 | 6,370,000 | 72,471 | |||||
NeuStar, Inc., Class A2 | 1,325,040 | 37,684 | |||||
Manitoba Telecom Services Inc. | 815,000 | 32,948 | |||||
Partner Communications Co. Ltd. | 2,035,000 | 29,930 | |||||
Partner Communications Co. Ltd. (ADR) | 125,000 | 1,850 | |||||
NTELOS Holdings Corp.2 | 1,604,175 | 30,832 | |||||
Telemig Celular Participações SA, preferred nominative | 5,185,172,400 | 9,810 | |||||
Telemig Celular Participações SA, preferred nominative (ADR) | 163,000 | 6,108 | |||||
Total Access Communication PCL2 | 3,409,200 | 15,410 | |||||
GLOBE TELECOM, Inc. | 526,867 | 13,487 | |||||
Unwired Group Ltd.2 | 12,400,000 | 2,712 | |||||
432,491 | |||||||
UTILITIES — 1.06% | |||||||
Xinao Gas Holdings Ltd.1 | 56,438,000 | 59,954 | |||||
CESC Ltd.1 | 5,829,000 | 50,980 | |||||
Glow Energy PCL | 37,970,000 | 34,705 | |||||
Northumbrian Water Group PLC | 3,425,000 | 20,904 | |||||
AES Tietê SA, preferred nominative | 600,000,000 | 18,969 | |||||
Electricity Generating PCL | 6,535,500 | 18,294 | |||||
First Gen Corp. | 13,500,000 | 15,734 | |||||
Energen Corp. | 200,000 | 10,178 | |||||
Tata Power Co. Ltd. | 579,151 | 6,844 | |||||
236,562 | |||||||
MISCELLANEOUS — 4.94% | |||||||
Other common stocks in initial period of acquisition | 1,102,491 | ||||||
Total common stocks (cost: $15,045,497,000) | 20,676,074 | ||||||
Preferred stocks — 0.06% | |||||||
CONSUMER DISCRETIONARY — 0.06% | |||||||
HUGO BOSS AG | 215,000 | 12,507 | |||||
Total preferred stocks (cost: $8,833,000) | 12,507 | ||||||
Rights & warrants — 0.07% | |||||||
MATERIALS — 0.06% | |||||||
Northern Orion Resources Inc., warrants, expire 20082,3 | 1,364,800 | 3,339 | |||||
Kenmare Resources PLC, warrants, expire 20091,2 | 5,775,000 | 3,072 | |||||
Eastern Platinum Ltd., purchase warrants, expire 20082 | 2,043,750 | 1,365 | |||||
Eastern Platinum Ltd., purchase warrants, expire 20092 | 1,750,000 | 1,139 | |||||
European Minerals Corp., warrants, expire 20102 | 3,440,000 | 1,492 | |||||
European Minerals Corp., warrants, expire 20112 | 1,650,000 | 587 | |||||
Oriel Resources PLC, warrants, expire 20102,3 | 2,500,000 | 1,230 | |||||
Energem Resources Inc., warrants, expire 20091,2,3,4 | 2,200,000 | 270 | |||||
Energem Resources Inc., warrants, expire 20081,2,4 | 1,200,000 | 133 | |||||
12,627 | |||||||
ENERGY — 0.01% | |||||||
OPTI Canada Inc., warrants, expire 20081,2,3,4 | 105,000 | 1,245 | |||||
Mart Resources, Inc., warrants, expire 20082,3,4 | 3,229,687 | 329 | |||||
Bankers Petroleum Ltd., warrants, expire 20122,3 | 1,100,000 | 296 | |||||
1,870 | |||||||
HEALTH CARE — 0.00% | |||||||
Gentium SpA (ADR), warrants, expire 20111,2,3,4 | 90,000 | 716 | |||||
MISCELLANEOUS — 0.00% | |||||||
Other rights & warrants in initial period of acquisition | 991 | ||||||
Total rights & warrants (cost: $932,000) | 16,204 | ||||||
Convertible securities — 0.09% | Shares or principal amount | ||||||
INFORMATION TECHNOLOGY — 0.05% | |||||||
Fluidigm Corp., Series E, convertible preferred2,3,4 | 2,225,000 | 8,900 | |||||
HowStuffWorks Inc., Series B2,3,4 | 39,333 | 3,041 | |||||
Socratic Technologies, Inc., Series A, convertible preferred2,3,4 | 375,000 | — | |||||
11,941 | |||||||
CONSUMER DISCRETIONARY — 0.03% | |||||||
Spot Runner, Inc., Series C, convertible preferred2,3,4 | 1,626,016 | 6,000 | |||||
TELECOMMUNICATION SERVICES — 0.01% | |||||||
Time Warner Telecom Inc. 2.375% convertible debentures 2026 | $ | 1,600,000 | 2,100 | ||||
Total convertible securities (cost: $21,416,000) | 20,041 | ||||||
Bonds & notes — 0.08% | Principal amount (000 | ) | |||||
CONSUMER DISCRETIONARY — 0.08% | |||||||
XM Satellite Radio Inc. and XM Satellite Radio Holdings Inc. 9.75% 2014 | 16,600 | 16,828 | |||||
Total bonds & notes (cost: $15,657,000) | 16,828 | ||||||
Short-term securities — 6.79% | |||||||
DaimlerChrysler Revolving Auto Conduit LLC 5.23%-5.25% due 4/3-6/1/2007 | 178,841 | 178,005 | |||||
DaimlerChrysler Revolving Auto Conduit LLC II 5.24% due 6/11/2007 | 37,280 | 36,898 | |||||
Mont Blanc Capital Corp. 5.225%-5.265% due 4/23-6/21/20073 | 103,600 | 102,930 | |||||
ING (U.S.) Funding LLC 5.225%-5.24% due 5/1-6/15/2007 | 47,000 | 46,653 | |||||
Amsterdam Funding Corp. 5.24%-5.25% due 4/11-4/26/20073 | 125,400 | 125,063 | |||||
Liberty Street Funding Corp. 5.24%-5.27% due 4/2-4/25/20073 | 122,500 | 122,227 | |||||
Old Line Funding, LLC 5.25%-5.265% due 4/5-5/8/20073 | 110,000 | 109,713 | |||||
American Honda Finance Corp. 5.22%-5.23% due 4/27-5/11/2007 | 77,200 | 76,790 | |||||
Allied Irish Banks N.A. Inc. 5.24%-5.26% due 4/2-4/19/20073 | 76,670 | 76,561 | |||||
BASF AG 5.24%-5.25% due 5/22-5/23/20073 | 74,200 | 73,654 | |||||
Electricité de France 5.22%-5.24% due 4/12-5/14/2007 | 62,400 | 62,127 | |||||
Federal Home Loan Bank 5.15%-5.16% due 4/20-5/16/2007 | 51,200 | 50,923 | |||||
Depfa Bank PLC 5.22% due 6/5/20073 | 48,800 | 48,346 | |||||
Nestlé Capital Corp. 5.21% due 5/14/20073 | 48,600 | 48,290 | |||||
UBS Finance (Delaware) LLC 5.23% due 6/18/2007 | 44,300 | 43,804 | |||||
Swedish Export Credit Corp. 5.23% due 4/24/2007 | 41,700 | 41,557 | |||||
Barton Capital LLC 5.24%-5.26% due 4/4-4/9/20073 | 37,500 | 37,466 | |||||
Swedbank Mortgage AB 5.23% due 5/29/2007 | 30,300 | 30,043 | |||||
Toyota Credit de Puerto Rico Corp. 5.23% due 4/26/2007 | 30,000 | 29,887 | |||||
Stadshypotek Delaware Inc. 5.25% due 4/20/20073 | 25,900 | 25,824 | |||||
Canadian Imperial Holdings Inc. 5.23% due 5/15/2007 | 25,000 | 24,838 | |||||
Barclays U.S. Funding Corp. 5.215% due 6/8/2007 | 25,000 | 24,757 | |||||
Freddie Mac 5.14% due 6/11/2007 | 25,000 | 24,739 | |||||
Abbey National N.A. LLC 5.22% due 4/12/2007 | 22,000 | 21,962 | |||||
KfW International Finance Inc. 5.23% due 4/23/20073 | 21,000 | 20,930 | |||||
HBOS Treasury Services PLC 5.235% due 5/15/2007 | 19,100 | 18,977 | |||||
Ciesco LLC 5.24% due 5/29/20073 | 9,300 | 9,219 | |||||
Estée Lauder Companies Inc. 5.39% due 4/2/20073 | 4,100 | 4,098 | |||||
Total short-term securities (cost: $1,516,148,000) | 1,516,281 | ||||||
Total investment securities (cost: $16,608,483,000) | 22,257,935 | ||||||
Other assets less liabilities | 56,536 | ||||||
Net assets | $ | 22,314,471 |
“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.
1Represents an affiliated company as defined under the Investment Company Act of 1940.
2 Security did not produce income during the last 12 months.
3Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require
registration. The total value of all such restricted securities was $1,045,962,000, which represented 4.69% of the net assets of the fund.
4Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities was $89,902,000.
ADR = American Depositary Receipts
CDI = CREST Depository Interest
GDR = Global Depositary Receipts
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus, which can be obtained from a financial adviser and should be read carefully before investing.
MFGEFP-935-0507-S6884
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 directors since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a committee on governance comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the Board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full Board of directors. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the committee on governance 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 committee on governance.
ITEM 11 - Controls and Procedures
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
(b) | There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12 - Exhibits
(a)(1) | Not applicable for filing of semi-annual reports to shareholders. |
(a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SMALLCAP WORLD FUND, INC. | |
By /s/ Gordon Crawford | |
Gordon Crawford, Vice Chairman and Principal Executive Officer | |
Date: June 8, 2007 |
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/ Gordon Crawford |
Gordon Crawford, Vice Chairman and Principal Executive Officer |
Date: June 8, 2007 |
By /s/ David A. Pritchett |
David A. Pritchett, Treasurer and Principal Financial Officer |
Date: June 8, 2007 |