American Funds SMALLCAP World 529A (CSPAX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-05888

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, 2009

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:

Mark D. Perlow

K&L Gates LLP

Four Embarcadero Center, Suite 1200

San Francisco, California  94111

(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 man walking by large panels with the world map printed on them]

Semi-annual report for the six months ended March 31, 2009

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

Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. For current information and month-end results, visit americanfunds.com.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2009:

Class A shares	1 year			5 years			10 years
Reflecting 5.75% maximum sales charge		–49.53	%		–3.77	%		1.61	%

The total annual fund operating expense ratio was 1.15% for Class A shares for the 12 months ended March 31, 2009. This figure does not reflect the fee waiver described below.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 26 to 29 for details.

Results for other share classes can be found on page 32.

Investing outside the United States may be subject to risks such as currency fluctuations and political instability. Investing in small-capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

[photo of a man walking by large panels with the world map printed on them]

Fellow shareholders:

The first six months of SMALLCAP World Fund’s fiscal year encapsulated one of the most difficult periods global stock markets have experienced. For the six months ended March 31, 2009, the fund fell 31.8%, and did not pay out any dividends or capital gains during the period. By comparison, the unmanaged S&P Global <$3 Billion Index, the fund’s primary benchmark, lost 31.5% for the period, while its peer group, the Lipper Global Small-Cap Funds Average, dropped 32.8%.

A global downturn

We cautioned in past reports that markets are cyclical in nature, and it’s worth noting that small-capitalization stocks experience more volatility, particularly in bear markets. That said, while we anticipated a decline in global equity markets for some time, we did not anticipate the extent to which stocks have fallen.

[Begin Sidebar]

Results at a glance

For periods ended March 31, 2009, with all distributions reinvested

Total returns

Average annual total returns

Lifetime

(since

6 months

1 year

5 years

10 years

4/30/90)

SMALLCAP World Fund

(Class A shares)

–31.8

%

–46.5

%

–2.6

%

2.2

%

6.9

%

S&P Global <$3 Billion Index

(formerly S&P/Citigroup Global/

World Indexes)*

–31.5

–44.8

–2.0

4.4

5.9

Lipper Global Small-Cap

Funds Average†

–32.8

–45.8

–3.7

3.4

7.0

*All market indexes cited in this report are unmanaged and their results include reinvested distributions, but do not reflect the effect of sales charges, commissions, expenses or taxes. S&P Global <$3 Billion Index has been used since May 2006. Cumulative returns for periods beginning before May 2006 also include results from the comparative indexes used in those periods as follows: S&P Global <$2 Billion (May 2004 to April 2006), S&P Developed <$1.5 Billion (January 2000 to April 2004), and S&P Developed <$1.2 Billion (1990 to 1999). The S&P Global indexes better reflect the fund’s investment universe because they include both developed and developing countries. The S&P Developed indexes (used prior to May 2004) only include stocks in developed countries.

† Lipper averages do not reflect the effect of sales charges or taxes.

[End Sidebar]

The start of the fund’s fiscal year coincided with a historic drop in global equity markets, brought on by a crisis of confidence in the international financial system that stemmed from the failures of Lehman Brothers, AIG, Fannie Mae and other major institutions. The problems started well before October of last year, originating with the subprime part of the U.S. housing market. As mortgage loan losses mounted throughout 2008, the companies that had purchased bonds issued by mortgage lenders experienced their own losses, and the crisis snowballed significantly.

While financial stocks dropped the furthest from the market’s high on October 9, 2007, all equity sectors across the globe lost significant value. Equity markets stabilized somewhat in December, but reached new lows through much of the first quarter of 2009 before climbing once again in March. While we hope that the worst of the markets’ drops are behind us, increased and intense volatility throughout equity markets is likely to continue for some time.

Portfolio review

Although we are gratified that SMALLCAP World Fund’s returns compare favorably to our peer group, it is cold comfort and we remain disappointed overall, even in this difficult market. Nonetheless, we continue to seek to not only position the portfolio to mitigate the current volatility, but, most importantly, to invest for the long-term as we always have done.

The fund’s exposure to the financial services sector remains low, at 9.8% of the total portfolio, though it should be noted that, for the most part, smaller banks and financial institutions have weathered the current crisis better than some of their larger counterparts. The fund is most heavily invested in industrial stocks, at 17.1% of the portfolio, and the returns from these investments were mixed. The fund’s health care holdings, at 13.7% of the portfolio, were among the brighter spots in the portfolio, as were Japanese stocks and those in the retail sector.

[Begin Sidebar]

Where are SMALLCAP’s holdings located?

[begin pie chart]

As of March 31, 2009	Percent of net assets
United States		45.0	%
Asia & Pacific Basin		22.6
Europe		17.1
Other (including Canada & Latin America)		3.7
Short-term securities & other assets less liabilities		11.6

[end pie chart]

[begin pie chart]

As of September 30, 2008	Percent of net assets
United States		37.1	%
Asia & Pacific Basin		26.1
Europe		17.9
Other (including Canada & Latin America)		6.1
Short-term securities & other assets less liabilities		12.8

[end pie chart]

[End Sidebar]

The fund’s largest holding, printed circuit-board maker Kingboard Chemical Holdings, hurt overall returns with a 38.7% loss for the six-month period, while an industrial stock in the portfolio’s top 10 holdings, MSC Industrial Direct, lost 32.6%. Oil stocks and other commodity-based shares fell sharply during the period, as did Russian stocks.

Among the portfolio’s stronger performers, Myriad Genetics, a biopharmaceutical company that is the portfolio’s second-largest holding, gained 40.2% during the period. Technology shares also fared well, with Akamai Technologies up 11.2% and software maker Red Hat gaining 18.4%. Nonetheless, of the 10 largest holdings in the fund, only two had positive returns for the period.

The investments we have chosen during the last six months stem from our intensive research into the companies’ businesses, finances and competitive position. In particular, we have been drawn to those companies with strong cash flow and a minimum need for outside financing.

Looking ahead

There are reasons to be cautiously optimistic about the rest of the fiscal year as well as calendar year 2009. The markets have risen considerably off their early March lows and the credit markets — where the current problems originated — appear to be moving toward stabilization. Merger activity also has picked up, and more companies are making initial public stock offerings. That said, it is very difficult to predict when the market’s current volatility will subside, and investors should be prepared to weather intense market volatility for at least the remainder of the fund’s fiscal year, if not the rest of 2009.

Despite the current economic troubles and market volatility, we continue to use a disciplined, long-term strategy for the fund, and we urge you to keep a long-term view of your investments as well in these difficult times. We thank you for your continued trust and support, and we look forward to reporting to you again at the close of our fiscal year.

Cordially,

/s/ Gordon Crawford

Gordon Crawford

Vice Chairman of the Board

/s/ Gregory W. Wendt

Gregory W. Wendt

President

May 8, 2009

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

Summary investment portfolio, March 31, 2009

unaudited

The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings.  For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.

[begin pie chart]

Industry sector diversification (percent of net assets)
Industrials	17.07	%
Health care	13.66
Information technology	12.33
Consumer discretionary	12.07
Financials	9.78
Other industries	23.43
Short-term securities & other assets less liabilities	11.59
Bonds & notes	0.07

[end pie chart]

Country diversification (percent of net assets)
United States	45.0	%
Euro zone (*)	8.8
United Kingdom	5.0
Hong Kong	4.7
Australia	3.4
India	3.3
Switzerland	1.8
Other countries	16.4
Short-term securities & other assets less liabilities	11.6
(*)Countries using the euro as a common currency; those represented in the fund's portfolio are Austria, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Slovenia and Spain.

							Percent
				Value			of net
Common stocks  - 87.98%	Shares				(000	)	assets
Industrials  - 17.07%
MSC Industrial Direct Co., Inc., Class A		3,123,700		$	97,053			.89	%
Container Corp. of India Ltd. (1)		6,113,588			87,080			.79
URS Corp. (2)		1,479,200			59,774			.55
Downer EDI Ltd. (1)  (3)		17,026,345			52,864			.48
Resources Connection, Inc. (2)  (3)		3,357,500			50,631			.46
Watsco, Inc.		1,430,500			48,680			.44
Ellaktor SA (1)		8,396,000			42,372			.39
LS Industrial Systems Co., Ltd. (1)		989,660			39,165			.36
Mine Safety Appliances Co.  (3)		1,922,500			38,488			.35
Michael Page International PLC (1)		14,629,333			38,392			.35
Flowserve Corp.		650,000			36,478			.33
Other securities					1,281,104			11.68
					1,872,081			17.07
Health care  - 13.67%
Myriad Genetics, Inc. (2)		2,288,000			104,035			.95
Inverness Medical Innovations, Inc. (2)		3,072,700			81,826			.75
Cochlear Ltd. (1)		2,024,890			70,645			.64
Thoratec Corp. (2)		2,678,155			68,802			.63
Masimo Corp. (2)		2,091,200			60,603			.55
American Medical Systems Holdings, Inc. (2)  (3)		5,155,400			57,483			.52
Illumina, Inc. (2)		1,425,000			53,067			.48
NuVasive, Inc. (2)		1,596,261			50,091			.46
Fisher & Paykel Healthcare Corp. Ltd. (1)		23,750,690			42,791			.39
Volcano Corp. (2) (3)		2,783,600			40,501			.37
Hikma Pharmaceuticals PLC (1)		6,769,153			35,026			.32
Other securities					834,302			7.61
					1,499,172			13.67
Information technology  - 12.33%
Kingboard Chemical Holdings Ltd. (1)  (3)		59,348,200			123,327			1.12
Intersil Corp., Class A  (3)		6,090,000			70,035			.64
IAC/InterActiveCorp (2)		3,500,000			53,305			.49
SkillSoft PLC (ADR) (2) (3)		7,225,000			48,335			.44
KLA-Tencor Corp.		2,196,000			43,920			.40
AVEVA Group PLC (1)  (3)		5,225,000			42,169			.38
Novellus Systems, Inc. (2)		2,350,000			39,080			.36
Semtech Corp. (2)		2,746,053			36,660			.33
Digital River, Inc. (2)		1,194,000			35,605			.33
Other securities					860,314			7.84
					1,352,750			12.33
Consumer discretionary  - 12.07%
Jumbo SA (1)  (3)		9,689,912			73,440			.67
Café de Coral Holdings Ltd. (1)  (3)		31,900,000			62,651			.57
NVR, Inc. (2)		103,500			44,272			.40
Lions Gate Entertainment Corp. (2)  (3)		8,250,000			41,662			.38
Fourlis (1) (3)		4,074,000			37,427			.34
Billabong International Ltd. (1)		5,895,000			34,906			.32
Other securities					1,029,531			9.39
					1,323,889			12.07
Financials  - 9.78%
Redwood Trust, Inc.  (3)		3,730,000			57,256			.52
Glacier Bancorp, Inc.  (3)		3,250,000			51,058			.47
BOK Financial Corp.		1,367,000			47,230			.43
City National Corp.		1,380,000			46,603			.43
Hopewell Holdings Ltd. (1)		16,728,500			43,942			.40
Kotak Mahindra Bank Ltd. (1)		6,221,762			35,022			.32
Other securities					791,369			7.21
					1,072,480			9.78
Materials  - 5.93%
AptarGroup, Inc.		2,359,682			73,481			.67
Calgon Carbon Corp. (2)		2,455,000			34,787			.32
Other securities					542,170			4.94
					650,438			5.93
Energy  - 4.86%
Heritage Oil Ltd. (1)  (2)  (3)		14,848,000			70,528			.64
BJ Services Co.		5,701,800			56,733			.52
FMC Technologies, Inc. (2)		1,695,000			53,172			.48
Helmerich & Payne, Inc.		2,075,000			47,248			.43
Concho Resources Inc. (2)		1,754,810			44,906			.41
Other securities					260,537			2.38
					533,124			4.86
Consumer Staples - 3.16%
Other securities					347,007			3.16
Telecommunication services  - 2.53%
tw telecom inc. (2)		6,300,000			55,125			.50
CenturyTel, Inc.		1,377,400			38,733			.35
Cellcom Israel Ltd.		850,000			18,105
Cellcom Israel Ltd. (ILS denominated) (1)		855,000			17,667			.33
Other securities					148,283			1.35
					277,913			2.53
Utilities  - 1.60%
Xinao Gas Holdings Ltd. (1) (3)		57,520,000			57,901			.53
Other securities					118,158			1.07
					176,059			1.60
Miscellaneous  -  4.98%
Other common stocks in initial period of acquisition					546,548			4.98
Total common stocks (cost: $14,315,224,000)					9,651,461			87.98
Warrants  - 0.02%
Other  -  0.02%
Other securities					1,706			.02
Total warrants (cost: $219,000)					1,706			.02
Convertible securities  - 0.34%
Other  -  0.34%
Other securities					36,954			.34
Total convertible securities (cost: $42,792,000)					36,954			.34
Bonds & notes  - 0.07%
Other  -  0.07%
Other securities					7,676			.07
Total bonds & notes (cost: $11,637,000)					7,676			.07
	Principal
	amount
Short-term securities  - 12.00%		(000	)
Freddie Mac 0.21%-0.90% due 4/24-7/20/2009	$	313,700			313,534			2.86
Fannie Mae 0.10%-0.85% due 4/1-7/14/2009		207,600			207,526			1.89
U.S. Treasury Bills 0.205%-1.40% due 4/9-8/27/2009		165,000			164,939			1.50
Federal Home Loan Bank 0.185%-0.35% due 4/17-6/26/2009		117,700			117,660			1.07
BNP Paribas Finance Inc. 0.11%-0.67% due 4/1-4/7/2009		69,700			69,696			.64
Bank of Nova Scotia 0.25% due 4/27/2009		50,000			49,991			.46
Caisse d'Amortissement de la Dette Sociale 0.31% due 5/4/2009		50,000			49,985			.46
Unilever Capital Corp. 0.75% due 4/28/2009 (4)		50,000			49,979			.46
Total Capital Canada Ltd. 0.40% due 4/8/2009 (4)		46,500			46,496			.42
Rabobank USA Financial Corp. 0.23%-0.30% due 4/29-5/26/2009		40,000			39,988			.36
Denmark (Kingdom of) 0.30% due 6/22/2009		39,000			38,967			.35
Other securities					167,831			1.53
Total short-term securities (cost: $1,316,354,000)					1,316,592			12.00
Total investment securities (cost: $15,686,226,000)					11,014,389			100.41
Other assets less liabilities					(44,075	)		(0.41	)
Net assets				$	10,970,314			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 value of "Other securities" under their respective industry sectors. Further details on these holdings and related transactions during the six months ended March 31, 2009, appear below.

													Value of
	Beginning							Ending		Dividend			affiliates
	shares		Additions			Reductions		shares		income			at 3/31/09
											(000	)		(000	)
Kingboard Chemical Holdings Ltd. (1)		52,648,200		6,700,000			-		59,348,200	$	-		$	123,327
Jumbo SA (1)		4,844,956		4,844,956			-		9,689,912		2,737			73,440
Heritage Oil Ltd. (1)  (2)		12,898,000		1,950,000			-		14,848,000		-			70,528
Intersil Corp., Class A		3,125,000		3,465,000			500,000		6,090,000		1,484			70,035
Café de Coral Holdings Ltd. (1)		31,550,000		350,000	��		-		31,900,000		1,235			62,651
Xinao Gas Holdings Ltd. (1)		51,038,000		6,482,000			-		57,520,000		-			57,901
American Medical Systems Holdings, Inc. (2)		5,370,000		-			214,600		5,155,400		-			57,483
Redwood Trust, Inc.		1,440,000		2,290,000			-		3,730,000		2,133			57,256
Downer EDI Ltd. (1)		23,026,345		-			6,000,000		17,026,345		1,203			52,864
Glacier Bancorp, Inc.		-		3,250,000			-		3,250,000		134			51,058
Resources Connection, Inc. (2)		3,027,336		330,164			-		3,357,500		-			50,631
SkillSoft PLC (ADR) (2)		7,225,000		-			-		7,225,000		-			48,335
AVEVA Group PLC (1) (5)		720,396		4,504,604			-		5,225,000		121			42,169
Lions Gate Entertainment Corp. (2)		8,250,000		-			-		8,250,000		-			41,662
Volcano Corp. (2)		2,777,400		166,200			160,000		2,783,600		-			40,501
Mine Safety Appliances Co.		1,627,300		295,200			-		1,922,500		864			38,488
Fourlis (1)		4,074,000		-			-		4,074,000		-			37,427
Beacon Roofing Supply, Inc. (2)		2,674,800		279,225			414,400		2,539,625		-			34,006
Nakanishi Inc. (1)		491,100		59,000			-		550,100		403			31,071
Ultimate Software Group, Inc. (2) (5)		1,200,000		555,000			-		1,755,000		-			30,291
eHealth, Inc. (2)		1,580,000		250,000			-		1,830,000		-			29,298
Trinity Ltd. (1) (2) (6)		82,337,500		-			-		82,337,500		-			28,897
Pantaloon Retail (India) Ltd. (1)		5,500,000		3,024,816			-		8,524,816		70			27,411
Pantaloon Retail (India) Ltd., Class B (1)		-		551,250			-		551,250		8			1,271
Ekornes ASA (1)		2,937,598		-			-		2,937,598		-			28,425
Blue Nile, Inc. (2)		941,140		-			-		941,140		-			28,375
Manila Water Co., Inc. (1)		111,206,800		-			-		111,206,800		-			25,422
KNM Group Bhd. (1)		131,151,000		100,000,000			-		231,151,000		783			24,707
SonoSite, Inc. (2)		1,254,866		170,000			70,766		1,354,100		-			24,211
MARR SpA (1)		3,202,500		177,563			-		3,380,063		-			22,839
Grontmij NV, depository receipts (1)		1,282,000		-			175,000		1,107,000		-			22,668
Astaldi SpA (1)		5,263,954		81,000			-		5,344,954		-			22,011
Sintex Industries Ltd. (1)		3,230,250		7,652,476			-		10,882,726		-			21,223
TrueBlue, Inc. (2)		1,649,398		774,202			-		2,423,600		-			19,995
Jammu and Kashmir Bank Ltd. (1)		3,149,500		-			-		3,149,500		-			19,599
Ennis, Inc.		1,032,000		1,032,000			-		2,064,000		480			18,287
Veeco Instruments Inc. (2)		2,306,396		260,000			-		2,566,396		-			17,118
Fluidigm Corp., Series E, convertible preferred (1) (2) (6)		4,378,695		-			3,127,640		1,251,055		-			16,429
Dolphin Capital Investors Ltd. (1)  (2)		33,715,400		3,050,000			-		36,765,400		-			15,788
Live Nation, Inc. (2)		4,000,000		1,782,000			-		5,782,000		-			15,438
Hana Microelectronics PCL (1)		53,925,000		-			-		53,925,000		1,620			15,368
Gruppo MutuiOnline SpA (1)		3,160,000		-			-		3,160,000		-			14,140
Robinsons Land Corp., Class B (1)		122,188,300		20,200,000			-		142,388,300		-			13,326
Mineral Deposits Ltd. (1)  (2)		16,142,844		-			-		16,142,844		-			7,526
Mineral Deposits Ltd. (CAD denominated) (1)  (2)		6,300,000		-			-		6,300,000		-			2,937
Mineral Deposits Ltd. (CAD denominated) (1)  (2)		-		6,100,000			-		6,100,000		-			2,615
Houston Wire & Cable Co.		1,678,900		-			-		1,678,900		285			13,011
Internet Capital Group, Inc. (2)		3,096,000		-			-		3,096,000		-			12,477
Home Federal Bancorp, Inc.		1,384,249		-			-		1,384,249		152			12,084
Ipca Laboratories Ltd. (1)		1,794,000		-			-		1,794,000		262			11,711
Goodpack Ltd. (1)		22,248,000		2,430,000			-		24,678,000		484			10,709
Goodpack Ltd., warrants, expire 2009 (1) (2)		2,459,750		-			-		2,459,750		-			8
BG Medicine, Inc., Series D convertible preferred (1) (2) (6)		1,538,462		-			-		1,538,462		-			10,000
Domino's Pizza Enterprises Ltd. (1)		4,563,190		-			-		4,563,190		129			9,521
Jackson Hewitt Tax Service Inc.		1,796,000		-			34,600		1,761,400		323			9,195
Vital Images, Inc. (2)		792,000		-			-		792,000		-			8,926
Bloomsbury Publishing PLC (1)		5,405,000		-			-		5,405,000		68			8,753
TranS1 Inc. (2)		-		1,330,000			-		1,330,000		-			8,100
Regal Petroleum PLC (1)  (2)		10,317,000		2,170,000			-		12,487,000		-			7,563
Obtala Resources PLC (1) (2)  (6)		-		7,950,000			-		7,950,000		-			3,132
Obtala Resources PLC (1)  (2) (5)		7,000,000		-			-		7,000,000		-			2,758
austriamicrosystems AG, non-registered shares (1)		715,000		-			-		715,000		-			5,836
Kenmare Resources PLC (1)  (2)		51,336,000		-			-		51,336,000		-			5,813
American Axle & Manufacturing Holdings, Inc.		4,300,000		-			-		4,300,000		86			5,676
Ono Sokki Co., Ltd. (1)		1,609,000		-			-		1,609,000		165			5,355
Lonrho PLC (1)  (2)		14,275,000		35,385,000			-		49,660,000		-			5,157
Infotech Enterprises Ltd. (1)		3,000,000		-			-		3,000,000		-			5,032
LECG Corp. (2) (5)		239,585		1,624,215			-		1,863,800		-			4,734
Vical Inc. (2)		2,250,279		-			-		2,250,279		-			4,321
Northgate PLC (1)		4,114,822		-			-		4,114,822		739			3,842
Gulf Keystone Petroleum Ltd. (1) (2)  (6)		23,700,000		-			-		23,700,000		-			3,821
Cpl Resources PLC (1)		2,975,986		-			-		2,975,986		58			3,553
Hutchinson Technology Inc. (2)		1,836,035		-			550,000		1,286,035		-			3,344
Kaboose Inc. (2)		8,000,000		1,700,000			-		9,700,000		-			3,304
Vision-Sciences, Inc. (2)		2,200,000		-			-		2,200,000		-			2,816
Ten Alps PLC (1)  (2)		1,815,000		1,624,001			-		3,439,001		-			1,292
Arpida Ltd. (1)  (2)		1,231,509		-			-		1,231,509		-			658
Imagelinx PLC (1)  (2)		21,385,714		-			-		21,385,714		-			383
Zoloto Resources Ltd. (2)		8,175,000		-			-		8,175,000		-			227
BrisConnections Unit Trusts (1)  (2)		27,300,000		-			-		27,300,000		-			19
CEC Unet PLC (1) (2)		35,100,775		-			-		35,100,775		-			-
Abaxis, Inc. (2)  (7)		1,609,700		25,000			800,000		834,700		-			-
ACI Worldwide, Inc. (2)  (7)		2,742,400		-			1,547,500		1,194,900		-			-
Altra Holdings, Inc. (2)  (7)		1,905,548		-			823,600		1,081,948		-			-
AMG Advanced Metallurgical Group NV (1)  (2)  (7)		2,143,960		94,040			1,134,274		1,103,726		-			-
Andersons, Inc.   (7)		1,247,000		-			1,247,000		-		110			-
Apollo Hospitals Enterprise Ltd. (7)		3,275,000		-			3,275,000		-		-			-
ArthroCare Corp. (2)  (7)		2,117,000		100,000			887,097		1,329,903		-			-
AtriCure, Inc. (2)  (7)		824,500		-			660,574		163,926		-			-
Banyan Tree Holdings Ltd. (1)  (7)		44,333,000		-			27,640,000		16,693,000		-			-
Busan Bank (1)  (7)		9,594,500		-			6,076,500		3,518,000		466			-
Calgon Carbon Corp. (2)  (7)		2,459,300		570,700			575,000		2,455,000		-			-
Chuang's China Investments Ltd. (7)		112,439,000		-			112,439,000		-		-			-
Concho Resources Inc. (2)  (7)		4,806,820		-			3,052,010		1,754,810		-			-
Cougar Biotechnology, Inc. (7)		100,000		-			100,000		-		-			-
Cougar Biotechnology, Inc. (2)  (6)  (7)		1,000,000		-			500,000		500,000		-			-
Daegu Bank, Ltd. (1)  (7)		10,570,000		-			4,208,910		6,361,090		1,052			-
Emeco Holdings Ltd. (7)		41,027,381		-			41,027,381		-		-			-
Entertainment Rights PLC  (7)		42,281,102		-			42,281,102		-		-			-
First Calgary Petroleums Ltd. (7)		10,846,000		-			10,846,000		-		-			-
First Calgary Petroleums Ltd. (GBP denominated)  (7)		4,800,000		-			4,800,000		-		-			-
Gaming VC Holdings SA (1)  (7)		1,396,800		305,000			305,000		1,396,800		328			-
Genesis Lease Ltd. (ADR) (7)		2,292,579		-			2,292,579		-		132			-
G-Shank Enterprise Co., Ltd. (1)  (7)		16,838,438		-			5,326,000		11,512,438		-			-
Hain Celestial Group, Inc. (2)  (7)		2,580,000		-			990,000		1,590,000		-			-
Halla Engineering & Construction Corp. (7)		626,000		-			626,000		-		-			-
Heartland Payment Systems, Inc. (7)		2,970,000		30,000			1,495,000		1,505,000		307			-
Hyflux Water Trust  (7)		19,500,000		-			19,500,000		-		-			-
Hyunjin Materials Co., Ltd. (1)  (2)  (7)		857,100		11,263			857,100		11,263		-			-
I. Kloukinas - I. Lappas SA (7)		1,824,000		-			1,824,000		-		-			-
InfoSpace.com, Inc.  (7)		1,971,200		-			1,971,200		-		1,090			-
IVRCL Infrastructures & Projects Ltd. (1)  (7)		9,025,000		-			4,570,000		4,455,000		-			-
John Bean Technologies Corp. (5) (7)		702,717		804,200			403,797		1,103,120		169			-
Kaba Holding AG (1)  (7)		262,800		-			96,300		166,500		1,500			-
Kuoni Reisen Holding AG, Class B (1)  (7)		145,066		-			52,000		93,066		-			-
Major Drilling Group International Inc. (7)		1,500,000		-			1,500,000		-		230			-
Medicis Pharmaceutical Corp., Class A (7)		3,062,100		82,900			900,000		2,245,000		212			-
MEMSIC, Inc. (7)		1,191,536		-			1,191,536		-		-			-
Mentor Corp. (7)		1,700,700		-			1,700,700		-		-			-
Michaniki SA (7)		3,935,000		-			3,935,000		-		-			-
Michaniki SA, preference shares (7)		871,900		-			871,900		-		-			-
Navitas Ltd. (1)  (7)		21,727,690		-			6,650,000		15,077,690		561			-
Nishimatsuya Chain Co., Ltd. (1)  (7)		5,565,000		-			4,565,000		1,000,000		219			-
OPTI Canada Inc. (7)		5,851,600		-			5,851,600		-		-			-
OPTI Canada Inc. (2)  (7)		9,570,000		5,851,600			14,489,450		932,150		-			-
OPTI Canada Inc., warrants, expire 2008 (7)		105,000		-			105,000		-		-			-
Peet's Coffee & Tea, Inc. (2)  (7)		1,015,000		-			725,000		290,000		-			-
PetMed Express, Inc. (7)		1,500,000		-			1,500,000		-		-			-
Polo Resources Ltd. (1)  (2)  (7)		123,872,500		-			61,936,300		61,936,200		-			-
Power Integrations, Inc. (7)		1,775,200		-			1,406,893		368,307		87			-
Pyeong San Co., Ltd. (1)  (2)  (7)		1,220,171		-			730,171		490,000		-			-
Rhodia SA (1)  (7)		5,093,401		-			217,500		4,875,901		-			-
Schibsted ASA (1)  (7)		4,703,200		-			2,673,223		2,029,977		-			-
Solomon Mutual Savings Bank (7)		1,062,023		-			1,062,023		-		-			-
SourceForge, Inc. (7)		4,700,000		-			4,700,000		-		-			-
Superior Well Services, Inc. (7)		1,200,000		-			1,200,000		-		-			-
TaeWoong Co., Ltd. (1)  (7)		1,033,400		-			702,900		330,500		66			-
TICON Property Fund (1)  (7)		30,400,000		12,750,000			6,432,600		36,717,400		371			-
TK Corp. (1)  (2)  (7)		1,659,000		82,950			1,659,000		82,950		-			-
Trigon Agri A/S (7)		8,150,000		-			8,150,000		-		-			-
Tripod Technology Corp. (1)  (7)		30,494,514		-			23,494,514		7,000,000		-			-
UnionBank of the Philippines (1)  (7)		37,429,400		-			10,234,800		27,194,600		-			-
United Laboratories International Holdings Ltd.  (7)		71,242,000		-			71,242,000		-		-			-
ValueVision Media, Inc., Class A (7)		1,900,000		-			1,900,000		-		-			-
ZOLL Medical Corp. (2)  (7)		1,655,000		-			910,000		745,000		-			-
										$	22,926		$	1,749,579

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) Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in "Miscellaneous" and "Other securities," was $4,354,980,000, which represented 39.70% of the net assets of the fund.

(2) Security did not produce income during the last 12 months.

(3) Represents an affiliated company as defined under the Investment Company Act of 1940.

(4) Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $192,749,000, which represented 1.76% of the net assets of the fund.

(5) This security was an unaffiliated issuer in its initial period of acquisition at 9/30/2008; it was not publicly disclosed.

(6) Purchased in a transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale.  Further details on these holdings appear below.

	Acquisition  date(s)	Cost  (000)		Value  (000)		Percent  of net  assets
Trinity Ltd.	12/6/2007	$	37,508		28,897		.26
Fluidigm Corp., Series E, convertible preferred	12/21/2006-10/24/2007		17,515		16,429		.15
Cougar Biotechnology, Inc.	12/17/2007		14,500		16,100		.15
BG Medicine, Inc., Series D convertible preferred	7/9/2008		10,000		10,000		.09
Gulf Keystone Petroleum Ltd.	7/22/2008		13,210		3,821		.04
Obtala Resources PLC	2/26/2009		1,921		3,132		.03
Other restricted securities			137,361		34,777		.31
Total restricted securities		$	232,015	$	113,156		1.03

(7) Unaffiliated issuer at 3/31/2009.

Key to abbreviations

ADR = American Depositary Receipts

CAD = Canadian dollars

GBP= British pounds

ILS = Israeli shekels

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities			unaudited
at March 31, 2009	(dollars in thousands)
Assets:
Investment securities, at value:
Unaffiliated issuers (cost: $12,848,891)	$	9,264,810
Affiliated issuers (cost: $2,837,335)		1,749,579	$	11,014,389
Cash denominated in currencies other than U.S. dollars
(cost: $4,340)				4,339
Cash				149
Receivables for:
Sales of investments		44,392
Sales of fund's shares		12,892
Dividends and interest		20,446		77,730
				11,096,607
Liabilities:
Payables for:
Purchases of investments		94,884
Repurchases of fund's shares		18,129
Investment advisory services		5,818
Services provided by affiliates		6,257
Directors' deferred compensation		962
Other		243		126,293
Net assets at March 31, 2009			$	10,970,314
Net assets consist of:
Capital paid in on shares of capital stock			$	18,597,841
Accumulated net investment loss				(143,875	)
Accumulated net realized loss				(2,811,455	)
Net unrealized depreciation				(4,672,197	)
Net assets at March 31, 2009			$	10,970,314

(dollars and shares in thousands, except per-share amounts)
Total authorized capital stock - 1,000,000 shares, $.01 par value (568,713 total shares outstanding)
	Net assets		Shares outstanding		Net asset value per share *
Class A	$	8,193,067		422,032	$	19.41
Class B		295,338		16,002		18.46
Class C		456,311		24,916		18.31
Class F-1		371,956		19,312		19.26
Class F-2		15,808		812		19.46
Class 529-A		257,291		13,312		19.33
Class 529-B		33,139		1,775		18.67
Class 529-C		94,337		5,059		18.65
Class 529-E		15,260		800		19.08
Class 529-F-1		21,301		1,101		19.35
Class R-1		20,007		1,070		18.71
Class R-2		357,949		19,133		18.71
Class R-3		311,783		16,374		19.04
Class R-4		172,227		8,916		19.32
Class R-5		354,540		18,099		19.59
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Classes A and 529-A, for which the maximum offering prices per share were $20.59 and $20.51, respectively.
See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended March 31, 2009	(dollars in thousands)
Investment income:
Income:
Dividends (net of non-U.S.
taxes of $4,937; also includes
$22,926 from affiliates)	$	111,877
Interest (net of non-U.S. taxes of $46)		11,972		$	123,849
Fees and expenses*:
Investment advisory services		38,596
Distribution services		18,330
Transfer agent services		14,665
Administrative services		3,783
Reports to shareholders		1,207
Registration statement and prospectus		462
Directors' compensation		(323	)
Auditing and legal		54
Custodian		930
State and local taxes		341
Other		1,223
Total fees and expenses before waiver		79,268
Less investment advisory services waiver		2,062
Total fees and expenses after waiver					77,206
Net investment income					46,643
Net realized loss and unrealized
depreciation on investments and currency:
Net realized loss on:
Investments (including $1,134,041 net loss from affiliates)		(2,806,348	)
Currency transactions		(3,147	)		(2,809,495	)
Net unrealized depreciation on:
Investments		(2,807,154	)
Currency translations		(95	)		(2,807,249	)
Net realized loss and
unrealized depreciation on investments and currency					(5,616,744	)
Net decrease in net assets resulting from operations				$	(5,570,101	)
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
See Notes to Financial Statements
Statements of changes in net assets		(dollars in thousands)
	Six months ended March 31,			Year ended September 30,
		2009*		2008
Operations:
Net investment income	$	46,643		$	165,466
Net realized (loss) gain on investments and currency transactions		(2,809,495	)		588,156
Net unrealized depreciation on investments and currency translations		(2,807,249	)		(9,480,501	)
Net decrease in net assets resulting from operations		(5,570,101	)		(8,726,879	)
Dividends and distributions paid  to
shareholders:
Dividends from net investment income		-			(408,327	)
Distributions from net realized gain on investments		-			(2,355,189	)
Total dividends and distributions paid to shareholders		-			(2,763,516	)
Net capital share transactions		(1,041,694	)		2,691,993
Total decrease in net assets		(6,611,795	)		(8,798,402	)
Net assets:
Beginning of period		17,582,109			26,380,511
End of period (including undistributed and distributions in excess of
net investment income: $(143,875) and $(190,518), respectively)	$	10,970,314		$	17,582,109
*Unaudited.
See Notes to Financial Statements

Notes to financial statements       

                                                                                   & #160;                          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 has 15 share classes consisting of five retail share classes, five 529 college savings plan share classes and five retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 5.75%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4 and R-5	None	None	None

* Effective April 21, 2009, Classes B and 529-B will not be available for purchase.

On May 1, 2009, the fund made an additional retirement plan share class (Class R-6) available for sale pursuant to an amendment to its registration statement filed with the Securities and Exchange Commission (“SEC”).  Refer to the fund’s retirement plan prospectus for more details.

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

Significant accounting policies – The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:

Security valuation – Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type.Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity.

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 securities outside the U.S.) 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. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

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

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

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

2. Risk factors

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

The prices of securities held by the fund may decline in response to certain events, including those directly involving the companies whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and commodity price fluctuations. The growth-oriented, equity-type securities generally purchased by the fund may involve large price swings and potential for loss, particularly in the case of smaller capitalization stocks. Smaller capitalization stocks are often more difficult to value or dispose of, more difficult to obtain information about and more volatile than stocks of larger, more established companies.

Investments in securities issued by entities based outside the U.S. may be subject to the risks described above to a greater extent and may also be affected by currency controls; different accounting, auditing, financial reporting, and legal standards and practices in some countries; expropriation; changes in tax policy; greater market volatility; differing securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payment of dividends. These risks may be heightened in connection with investments in developing countries.

Investing in countries with developing economies and/or markets may involve risks in addition to and greater than those generally associated with investing in developed countries. For instance, developing countries may have less developed legal and accounting systems. The governments of these countries may be more unstable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect security prices. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries are also relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid than securities issued in countries with more developed economies or markets.

3. Taxation and distributions                                                                                     

Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended March 31, 2009, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2004, by state tax authorities for tax years before 2003 and by tax authorities outside the U.S. for tax years before 2001.

Non-U.S. 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.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; and income on certain investments.The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of September 30, 2008, the fund had tax basis currency loss deferrals (realized during the period November 1, 2007, through September 30, 2008) of $14,247,000 and passive foreign investment company loss deferrals (realized during the period November 1, 2007, through September 30, 2008) of $107,006,000.

As of March 31, 2009, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	$	754,398
Gross unrealized depreciation on investment securities		(5,470,030	)
Net unrealized depreciation on investment securities		(4,715,632	)
Cost of investment securities		15,730,021

No distributions were paid to shareholders during the six months ended March 31, 2009.  The tax character of distributions paid to shareholders during the year ended September 30, 2008 was as follows (dollars in thousands):

Share class	Ordinary  income		Long-term capital gains		Total distributions paid
Class A	$	334,625	$	1,839,497	$	2,174,122
Class B		8,096		75,117		83,213
Class C		11,673		105,858		117,531
Class F-1		14,517		77,785		92,302
Class F-2*		-		-		-
Class 529-A		7,942		44,191		52,133
Class 529-B		637		6,526		7,163
Class 529-C		1,785		17,600		19,385
Class 529-E		409		2,737		3,146
Class 529-F-1		643		3,238		3,881
Class R1		412		3,689		4,101
Class R2		6,744		62,474		69,218
Class R3		7,952		52,541		60,493
Class R4		4,695		25,247		29,942
Class R5		8,197		38,689		46,886
Total	$	408,327	$	2,355,189	$	2,763,516
* Class F-2 was offered beginning August 1, 2008.

4. Fees and transactions with related parties

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

Investment advisory services –The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.800% on the first billion of daily net assets and decreasing to 0.595% on such assets in excess of $27 billion. CRMC waived a portion of its investment advisory services fee commencing on September 1, 2004, and terminating on December 31, 2008. During the six months ended March 31, 2009, total investment advisory services fees waived by CRMC were $2,062,000. As a result, the fee shown on the accompanying financial statements of $38,596,000, which was equivalent to an annualized rate of 0.657%, was reduced to $36,534,000, or 0.622% of average daily net assets.

Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:

Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2 and R-5. Under the plans, the board of 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 below.  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, except Classes F-2 and R-5, may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Classes A and 529-A, the board of 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, 2009, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.

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

Transfer agent services –The fund hasa transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described on the next page.

Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Classes A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. Each 529 share class is subject to an additional administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan.The quarterly fee is based on a declining series of annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter.Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described above for the six months ended March 31, 2009, were as follows (dollars in thousands):

Share class	Distribution services	Transfer agent services	Administrative services
			CRMC administrative services	Transfer agent services	Commonwealth of Virginia administrative services
Class A	$10,360	$14,146	Not applicable	Not applicable	Not applicable
Class B	1,619	519	Not applicable	Not applicable	Not applicable
Class C	2,476	Included in administrative services	$372	$144	Not applicable
Class F-1	508		307	72	Not applicable
Class F-2	Not applicable		7	1	Not applicable
Class 529-A	256		195	55	$131
Class 529-B	171		26	13	17
Class 529-C	485		72	33	49
Class 529-E	39		11	3	11
Class 529-F-1	-		16	4	8
Class R-1	99		11	15	Not applicable
Class R-2	1,326		265	1,116	Not applicable
Class R-3	777		233	281	Not applicable
Class R-4	214		128	12	Not applicable
Class R-5	Not applicable		169	6	Not applicable
Total	$18,330	$14,665	$1,812	$1,755	$216

Directors’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, directors who are unaffiliated with CRMCmay elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation of $(323,000), shown on the accompanying financial statements, includes $281,000 in current fees (either paid in cash or deferred) and a net decrease of $604,000 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. Disclosure of fair value measurements

The fund adopted the Statement of Financial Accounting Standards No. 157 (“FAS 157”), Fair Value Measurements, on October 1, 2008. FAS 157 requires the fund to classify its assets and liabilities into three levels based on the method used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are generally high-quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.The following table presents the fund’s valuation levels as of March 31, 2009 (dollars in thousands):

Investment securities
Level 1 – Quoted prices	$	5,325,390
Level 2 – Other significant observable inputs		5,612,029	(*)
Level 3 – Significant unobservable inputs		76,970
Total	$	11,014,389

(*) Includes certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading; therefore, $4,272,777,000 of investment securities were classified as Level 2 instead of Level 1.

The following table reconciles the valuation of the fund’s Level 3 investment securities and related transactions during the six months ended March 31, 2009 (dollars in thousands):

Level 3 investment securities
Beginning value at 10/1/2008	$	168,729
Net sales		(989	)
Net realized loss (*)		(11,154	)
Net unrealized depreciation (*)		(77,366	)
Net transfers out of Level 3		(2,250	)
Ending value at 3/31/2009	$	76,970

Net unrealized depreciation during the period on Level 3 investment securities held at 3/31/2009 (*) $ (81,906 )

(*) Net realized loss and net unrealized depreciation are included in the related amounts on investments in the statement of operations.

6. Capital share transactions

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

Share class	Sales*				Reinvestments of dividends and distributions				Repurchases*						Net (decrease)  increase
	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Six months ended March 31, 2009
Class A	$	594,660		29,594		-		-	$	(1,603,879	)		(80,333	)	$	(1,009,219	)		(50,739	)
Class B		17,249		907		-		-		(59,883	)		(3,137	)		(42,634	)		(2,230	)
Class C		43,619		2,302		-		-		(102,219	)		(5,405	)		(58,600	)		(3,103	)
Class F-1		85,698		4,252		-		-		(141,779	)		(7,159	)		(56,081	)		(2,907	)
Class F-2		15,583		785		-		-		(5,076	)		(257	)		10,507			528
Class 529-A		26,468		1,331		-		-		(21,720	)		(1,107	)		4,748			224
Class 529-B		2,276		118		-		-		(2,685	)		(140	)		(409	)		(22	)
Class 529-C		9,726		507		-		-		(10,288	)		(540	)		(562	)		(33	)
Class 529-E		1,870		94		-		-		(1,597	)		(82	)		273			12
Class 529-F-1		3,269		166		-		-		(2,384	)		(121	)		885			45
Class R-1		4,291		223		-		-		(3,540	)		(184	)		751			39
Class R-2		85,652		4,466		-		-		(62,831	)		(3,254	)		22,821			1,212
Class R-3		72,780		3,695		-		-		(56,251	)		(2,877	)		16,529			818
Class R-4		46,667		2,296		-		-		(34,278	)		(1,728	)		12,389			568
Class R-5		91,723		4,503		-		-		(34,815	)		(1,755	)		56,908			2,748
Total net increase
(decrease)	$	1,101,531		55,239		-		-	$	(2,143,225	)		(108,079	)	$	(1,041,694	)		(52,840	)
Year ended September 30, 2008
Class A	$	2,407,578		62,279	$	2,089,935		51,124	$	(3,043,852	)		(81,583	)	$	1,453,661			31,820
Class B		85,336		2,286		80,745		2,057		(141,282	)		(4,024	)		24,799			319
Class C		233,926		6,278		113,927		2,927		(198,879	)		(5,687	)		148,974			3,518
Class F-1		394,228		10,278		83,621		2,063		(268,755	)		(7,438	)		209,094			4,903
Class F-2†		8,949		286		-		-		(68	)		(2	)		8,881			284
Class 529-A		103,215		2,687		52,124		1,281		(37,637	)		(1,021	)		117,702			2,947
Class 529-B		7,967		213		7,161		180		(4,944	)		(136	)		10,184			257
Class 529-C		38,642		1,038		19,382		488		(18,948	)		(523	)		39,076			1,003
Class 529-E		5,442		143		3,145		78		(2,495	)		(69	)		6,092			152
Class 529-F-1		12,007		317		3,881		95		(3,630	)		(96	)		12,258			316
Class R-1		16,398		435		4,081		103		(11,800	)		(327	)		8,679			211
Class R-2		241,354		6,535		69,131		1,735		(180,872	)		(4,945	)		129,613			3,325
Class R-3		253,188		6,657		60,439		1,502		(166,174	)		(4,496	)		147,453			3,663
Class R-4		171,623		4,497		29,940		737		(88,296	)		(2,374	)		113,267			2,860
Class R-5		272,208		7,286		46,062		1,122		(56,010	)		(1,499	)		262,260			6,909
Total net increase
(decrease)	$	4,252,061		111,215	$	2,663,574		65,492	$	(4,223,642	)		(114,220	)	$	2,691,993			62,487
(*) Includes exchanges between share classes of the fund.
(†) Class F-2 was offered beginning August 1, 2008.

7. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $3,314,481,000 and $3,341,322,000, respectively, during the six months ended March 31, 2009.

Financial highlights(1)

				(Loss) income from investment operations(2)									Dividends and distributions
		Net asset value, beginning of period		Net investment income (loss)			Net (losses) gains on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return(3) (4)			Net assets, end of period (in millions)		Ratio of expenses to average net assets before waivers			Ratio of expenses to average net assets after waivers(4)			Ratio of net income (loss) to average net assets(4)
Class A:	Six months ended 3/31/2009(5)	$	28.46	$	.09		$	(9.14	)	$	(9.05	)	$	-		$	-		$	-		$	19.41		(31.80	)%	$	8,193		1.28	%(6)		1.24	%(6)		.87	%(6)
	Year ended 9/30/2008		47.43		.31			(14.35	)		(14.04	)		(.76	)		(4.17	)		(4.93	)		28.46		(32.77	)		13,453		1.07			1.01			.80
	Year ended 9/30/2007		38.87		.37			12.50			12.87			(.70	)		(3.61	)		(4.31	)		47.43		35.41			20,913		1.04			.98			.86
	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
Class B:	Six months ended 3/31/2009(5)		27.16		.01			(8.71	)		(8.70	)		-			-			-			18.46		(32.03	)		296		2.04	(6)		2.01	(6)		.10	(6)
	Year ended 9/30/2008		45.49		.01			(13.72	)		(13.71	)		(.45	)		(4.17	)		(4.62	)		27.16		(33.27	)		495		1.83			1.77			.03
	Year ended 9/30/2007		37.41		.04			12.02			12.06			(.37	)		(3.61	)		(3.98	)		45.49		34.40			815		1.81			1.74			.10
	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			(.10	)		(.10	)		-			(.10	)		26.70		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	)
Class C:	Six months ended 3/31/2009(5)		26.93		.02			(8.64	)		(8.62	)		-			-			-			18.31		(32.01	)		456		1.93	(6)		1.90	(6)		.21	(6)
	Year ended 9/30/2008		45.18		.01			(13.63	)		(13.62	)		(.46	)		(4.17	)		(4.63	)		26.93		(33.31	)		754		1.86			1.79			.02
	Year ended 9/30/2007		37.21		.02			11.95			11.97			(.39	)		(3.61	)		(4.00	)		45.18		34.35			1,107		1.85			1.79			.04
	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	)
Class F-1:	Six months ended 3/31/2009(5)		28.21		.10			(9.05	)		(8.95	)		-			-			-			19.26		(31.73	)		372		1.14	(6)		1.10	(6)		1.01	(6)
	Year ended 9/30/2008		47.08		.31			(14.23	)		(13.92	)		(.78	)		(4.17	)		(4.95	)		28.21		(32.77	)		627		1.07			1.01			.82
	Year ended 9/30/2007		38.65		.36			12.41			12.77			(.73	)		(3.61	)		(4.34	)		47.08		35.41			815		1.05			.98			.84
	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
Class F-2:	Six months ended 3/31/2009(5)		28.47		.12			(9.13	)		(9.01	)		-			-			-			19.46		(31.65	)		16		.87	(6)		.85	(6)		1.18	(6)
	Period from 8/1/2008 to 9/30/2008		33.66		.08			(5.27	)		(5.19	)		-			-			-			28.47		(15.42	)		8		.14			.13			.26
Class 529-A:	Six months ended 3/31/2009(5)		28.32		.09			(9.08	)		(8.99	)		-			-			-			19.33		(31.74	)		257		1.21	(6)		1.18	(6)		.92	(6)
	Year ended 9/30/2008		47.23		.29			(14.28	)		(13.99	)		(.75	)		(4.17	)		(4.92	)		28.32		(32.79	)		371		1.11			1.05			.78
	Year ended 9/30/2007		38.76		.34			12.44			12.78			(.70	)		(3.61	)		(4.31	)		47.23		35.33			479		1.10			1.04			.79
	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
Class 529-B:	Six months ended 3/31/2009(5)		27.47		.01			(8.81	)		(8.80	)		-			-			-			18.67		(32.04	)		33		2.05	(6)		2.01	(6)		.09	(6)
	Year ended 9/30/2008		45.96		(.02	)		(13.89	)		(13.91	)		(.41	)		(4.17	)		(4.58	)		27.47		(33.35	)		49		1.93			1.87			(.05	)
	Year ended 9/30/2007		37.77		(.01	)		12.14			12.13			(.33	)		(3.61	)		(3.94	)		45.96		34.25			71		1.92			1.86			(.02	)
	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	)
Class 529-C:	Six months ended 3/31/2009(5)		27.43		.01			(8.79	)		(8.78	)		-			-			-			18.65		(32.05	)		94		2.04	(6)		2.00	(6)		.10	(6)
	Year ended 9/30/2008		45.92		(.01	)		(13.89	)		(13.90	)		(.42	)		(4.17	)		(4.59	)		27.43		(33.36	)		140		1.93			1.86			(.04	)
	Year ended 9/30/2007		37.77		(.01	)		12.13			12.12			(.36	)		(3.61	)		(3.97	)		45.92		34.23			188		1.92			1.86			(.02	)
	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	)
Class 529-E:	Six months ended 3/31/2009(5)		28.00		.06			(8.98	)		(8.92	)		-			-			-			19.08		(31.86	)		15		1.51	(6)		1.48	(6)		.62	(6)
	Year ended 9/30/2008		46.76		.18			(14.15	)		(13.97	)		(.62	)		(4.17	)		(4.79	)		28.00		(33.01	)		22		1.42			1.35			.47
	Year ended 9/30/2007		38.40		.21			12.33			12.54			(.57	)		(3.61	)		(4.18	)		46.76		34.93			30		1.41			1.35			.49
	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	)
Class 529-F-1:	Six months ended 3/31/2009(5)	$	28.33	$	.11		$	(9.09	)	$	(8.98	)	$	-		$	-		$	-		$	19.35		(31.70	)%	$	21		1.01	%(6)		.98	%(6)		1.12	%(6)
	Year ended 9/30/2008		47.24		.37			(14.28	)		(13.91	)		(.83	)		(4.17	)		(5.00	)		28.33		(32.66	)		30		.92			.85			.98
	Year ended 9/30/2007		38.77		.42			12.44			12.86			(.78	)		(3.61	)		(4.39	)		47.24		35.56			35		.91			.85			.98
	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	)
Class R-1:	Six months ended 3/31/2009(5)		27.51		.02			(8.82	)		(8.80	)		-			-			-			18.71		(32.03	)		20		1.94	(6)		1.91	(6)		.20	(6)
	Year ended 9/30/2008		46.04		.02			(13.91	)		(13.89	)		(.47	)		(4.17	)		(4.64	)		27.51		(33.29	)		28		1.84			1.77			.05
	Year ended 9/30/2007		37.89		.01			12.17			12.18			(.42	)		(3.61	)		(4.03	)		46.04		34.32			38		1.88			1.80			.03
	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	)
Class R-2:	Six months ended 3/31/2009(5)		27.55		(.01	)		(8.83	)		(8.84	)		-			-			-			18.71		(32.09	)		358		2.24	(6)		2.20	(6)		(.10	)(6)
	Year ended 9/30/2008		46.13		(.01	)		(13.95	)		(13.96	)		(.45	)		(4.17	)		(4.62	)		27.55		(33.36	)		494		1.94			1.86			(.04	)
	Year ended 9/30/2007		37.93		.03			12.18			12.21			(.40	)		(3.61	)		(4.01	)		46.13		34.36			673		1.93			1.77			.06
	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	)
Class R-3:	Six months ended 3/31/2009(5)		27.94		.06			(8.96	)		(8.90	)		-			-			-			19.04		(31.88	)		312		1.54	(6)		1.50	(6)		.60	(6)
	Year ended 9/30/2008		46.68		.18			(14.12	)		(13.94	)		(.63	)		(4.17	)		(4.80	)		27.94		(32.99	)		435		1.42			1.35			.48
	Year ended 9/30/2007		38.34		.20			12.31			12.51			(.56	)		(3.61	)		(4.17	)		46.68		34.88			555		1.42			1.35			.47
	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	)
Class R-4:	Six months ended 3/31/2009(5)		28.29		.10			(9.07	)		(8.97	)		-			-			-			19.32		(31.71	)		172		1.12	(6)		1.09	(6)		1.01	(6)
	Year ended 9/30/2008		47.20		.32			(14.29	)		(13.97	)		(.77	)		(4.17	)		(4.94	)		28.29		(32.78	)		236		1.07			1.01			.84
	Year ended 9/30/2007		38.73		.35			12.45			12.80			(.72	)		(3.61	)		(4.33	)		47.20		35.41			259		1.06			1.00			.82
	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
Class R-5:	Six months ended 3/31/2009(5)		28.64		.13			(9.18	)		(9.05	)		-			-			-			19.59		(31.60	)		355		.81	(6)		.78	(6)		1.32	(6)
	Year ended 9/30/2008		47.70		.44			(14.45	)		(14.01	)		(.88	)		(4.17	)		(5.05	)		28.64		(32.57	)		440		.77			.70			1.17
	Year ended 9/30/2007		39.10		.48			12.56			13.04			(.83	)		(3.61	)		(4.44	)		47.70		35.77			403		.77			.71			1.11
	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

	Six months ended			Year ended September 30
	March 31, 2009 (5)			2008			2007			2006			2005			2004
Portfolio turnover rate for all classes of shares		31	%		50	%		48	%		45	%		45	%		48	%

(1)Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.

(2)Based on average shares outstanding.

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

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

(5)Unaudited.

(6)Annualized.

(7)Amount less than $.01.

See Notes to Financial Statements

Expense example

unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2008, through March 31, 2009).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 10/1/2008			Ending account value 3/31/2009		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00		$	682.01	$	5.20		1.24	%
Class A -- assumed 5% return		1,000.00			1,018.75		6.24		1.24
Class B -- actual return		1,000.00			679.68		8.42		2.01
Class B -- assumed 5% return		1,000.00			1,014.91		10.10		2.01
Class C -- actual return		1,000.00			679.91		7.96		1.90
Class C -- assumed 5% return		1,000.00			1,015.46		9.55		1.90
Class F-1 -- actual return		1,000.00			682.73		4.61		1.10
Class F-1 -- assumed 5% return		1,000.00			1,019.45		5.54		1.10
Class F-2 -- actual return		1,000.00			683.53		3.57		.85
Class F-2 -- assumed 5% return		1,000.00			1,020.69		4.28		.85
Class 529-A -- actual return		1,000.00			682.56		4.95		1.18
Class 529-A -- assumed 5% return		1,000.00			1,019.05		5.94		1.18
Class 529-B -- actual return		1,000.00			679.64		8.42		2.01
Class 529-B -- assumed 5% return		1,000.00			1,014.91		10.10		2.01
Class 529-C -- actual return		1,000.00			679.54		8.37		2.00
Class 529-C -- assumed 5% return		1,000.00			1,014.96		10.05		2.00
Class 529-E -- actual return		1,000.00			681.42		6.20		1.48
Class 529-E -- assumed 5% return		1,000.00			1,017.55		7.44		1.48
Class 529-F-1 -- actual return		1,000.00			683.02		4.11		.98
Class 529-F-1 -- assumed 5% return		1,000.00			1,020.04		4.94		.98
Class R-1 -- actual return		1,000.00			679.75		8.00		1.91
Class R-1 -- assumed 5% return		1,000.00			1,015.41		9.60		1.91
Class R-2 -- actual return		1,000.00			679.14		9.21		2.20
Class R-2 -- assumed 5% return		1,000.00			1,013.96		11.05		2.20
Class R-3 -- actual return		1,000.00	��		681.21		6.29		1.50
Class R-3 -- assumed 5% return		1,000.00			1,017.45		7.54		1.50
Class R-4 -- actual return		1,000.00			682.92		4.57		1.09
Class R-4 -- assumed 5% return		1,000.00			1,019.50		5.49		1.09
Class R-5 -- actual return		1,000.00			684.00		3.27		.78
Class R-5 -- assumed 5% return		1,000.00			1,021.04		3.93		.78

*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period (182), and divided by 365 (to reflect the one-half year period).

Other share class results

unaudited

Classes B, C, F and 529

Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.

Average annual total returns for periods ended March 31, 2009:
	1 year			5 years			Life of class
Class B shares1 — first sold 3/15/00
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares are
sold within six years of purchase		–49.50	%		–3.66	%		–5.51	%
Not reflecting CDSC		–46.85			–3.36			–5.51
Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase		–47.37			–3.39			0.18
Not reflecting CDSC		–46.84			–3.39			0.18
Class F-1 shares2 — first sold 3/15/01
Not reflecting annual asset-based fee charged by
sponsoring firm		–46.40			–2.61			0.99
Class F-2 shares2 — first sold 8/1/08
Not reflecting annual asset-based fee charged by
sponsoring firm		—			—			–42.19	3
Class 529-A shares4 — first sold 2/19/02
Reflecting 5.75% maximum sales charge		–49.50			–3.80			1.27
Not reflecting maximum sales charge		–46.42			–2.65			2.11
Class 529-B shares1,4 — first sold 2/20/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		–49.53			–3.78			1.14
Not reflecting CDSC		–46.87			–3.47			1.14
Class 529-C shares4 — first sold 2/20/02
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase		–47.41			–3.48			1.14
Not reflecting CDSC		–46.88			–3.48			1.14
Class 529-E shares2,4 — first sold 3/15/02		–46.60			–2.96			0.81
Class 529-F-1 shares2,4 — first sold 9/17/02
Not reflecting annual asset-based fee charged by
sponsoring firm		–46.34			–2.54			5.10

1These shares are no longer available for purchase.

2These shares are sold without any initial or contingent deferred sales charge.

3Results are cumulative total returns; they are not annualized.

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

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 26 to 29 for details.

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

Offices of the fund and of the

investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

6455 Irvine Center Drive

Irvine, CA 92618

Transfer agent for shareholder accounts

American Funds Service Company

(Please write to the address near you.)

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Custodian of assets

State Street Bank and Trust Company

One Lincoln Street

Boston, MA 02111

Counsel

K&L Gates LLP

55 Second Street, Suite 1700

San Francisco, CA 94105

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.

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

A complete March 31, 2009, portfolio of 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. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available on the American Funds website or by calling AFS.

This report is for the information of shareholders of 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, 2009, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

[logo - - American Funds®]

The right choice for the long term®

What makes American Funds different?

For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•A long-term, value-oriented approach

We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.

•An extensive global research effort

Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.

•The multiple portfolio counselor system

Our unique approach to portfolio management, developed 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

•Experienced investment professionals

American Funds portfolio counselors have an average of 25 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.

•A commitment to low management fees

The American Funds provide exceptional value for shareholders, with management fees that are among the lowest in the mutual fund industry.

American Funds span a range of investment objectives

•Growth funds

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

>SMALLCAP World Fund®

•Growth-and-income funds

American Mutual Fund®

Capital World Growth and Income FundSM

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

•Equity-income funds

Capital Income Builder®

The Income Fund of America®

•Balanced fund

American Balanced Fund®

•Bond funds

American High-Income TrustSM

The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

•Tax-exempt bond funds

American High-Income Municipal Bond Fund®

Limited Term Tax-Exempt Bond Fund of AmericaSM

The Tax-Exempt Bond Fund of America®

State-specific tax-exempt funds

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•Money market funds

American Funds Money Market Fund SM

The Cash Management Trust of America®

The Tax-Exempt Money Fund of AmericaSM

The U.S. Treasury Money Fund of AmericaSM

•American Funds Target Date Retirement Series®

The Capital Group Companies

American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust

Lit. No. MFGESR-935-0509P

Litho in USA BBC/L/8094-S16766

Printed on paper containing 10% post-consumer waste

Printed with inks containing soy and/or vegetable oil

ITEM 2 – Code of Ethics

Not applicable for filing of semi-annual reports to shareholders.

ITEM 3 – Audit Committee Financial Expert

Not applicable for filing of semi-annual reports to shareholders.

ITEM 4 – Principal Accountant Fees and Services

Not applicable for filing of semi-annual reports to shareholders.

ITEM 5 – Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.

ITEM 6 – Schedule of Investments

[logo – American Funds®]

SMALLCAP World Fund®

Investment portfolio

March 31, 2009

unaudited

Common stocks — 87.98%	Shares			Value (000)
INDUSTRIALS — 17.07%
MSC Industrial Direct Co., Inc., Class A		3,123,700		$	97,053
Container Corp. of India Ltd.1		6,113,588			87,080
URS Corp.2		1,479,200			59,774
Downer EDI Ltd.1,3		17,026,345			52,864
Resources Connection, Inc.2,3		3,357,500			50,631
Watsco, Inc.		1,430,500			48,680
Ellaktor SA1		8,396,000			42,372
LS Industrial Systems Co., Ltd.1		989,660			39,165
Mine Safety Appliances Co.3		1,922,500			38,488
Michael Page International PLC1		14,629,333			38,392
Flowserve Corp.		650,000			36,478
Beacon Roofing Supply, Inc.2,3		2,539,625			34,006
IDEX Corp.		1,535,000			33,570
Monster Worldwide, Inc.2		4,000,000			32,600
GfK AG1		1,365,500			32,223
Navigant Consulting, Inc.2		2,441,500			31,910
Delachaux SA1		580,045			30,554
SIA Engineering Co. Ltd.1		24,405,000			30,114
MITIE Group PLC1		11,059,000			29,624
Singapore Post Private Ltd.1		54,995,000			28,017
Kaba Holding AG1		166,500			25,553
United Stationers Inc.2		903,700			25,376
Grontmij NV, depository receipts1,3		1,107,000			22,668
Manpower Inc.		707,000			22,292
Astaldi SpA1,3		5,344,954			22,011
De La Rue PLC1		1,549,743			21,552
Koninklijke BAM Groep NV1		2,390,000			21,236
Sintex Industries Ltd.1,3		10,882,726			21,223
Jain Irrigation Systems Ltd.1		3,107,009			20,953
Uponor Oyj1		2,246,600			20,919
Graco Inc.		1,225,200			20,914
TaeWoong Co., Ltd.1		330,500			20,499
Murray & Roberts Holdings Ltd.1		4,750,000			20,493
Avery Dennison Corp.		900,000			20,106
TrueBlue, Inc.2,3		2,423,600			19,995
Pfeiffer Vacuum Technology AG, non-registered shares1		334,000			19,729
Österreichische Post AG1		639,500			18,972
Ennis, Inc.3		2,064,000			18,287
KBR, Inc.		1,248,000			17,235
Brady Corp., Class A, nonvoting shares		974,700			17,184
Herman Miller, Inc.		1,570,000			16,736
Aboitiz Equity Ventures, Inc.1		134,250,000			15,624
BayWa AG1		665,150			15,219
Société BIC SA1		308,000			15,099
Shenzhen Expressway Co. Ltd., Class H1		42,916,000			14,955
Flughafen Wien AG, non-registered shares1		505,000			14,727
Pentair, Inc.		650,000			14,085
Dalian Port (PDA) Co. Ltd., Class H1		42,504,000			13,706
Houston Wire & Cable Co.3		1,678,900			13,011
MTU Aero Engines Holding AG1		546,100			12,789
Pyeong San Co., Ltd.1,2		490,000			12,529
Kaydon Corp.		450,000			12,298
CoStar Group, Inc.2		400,000			12,100
Indutrade AB1		1,155,000			11,821
Joy Global Inc.		550,000			11,715
John Bean Technologies Corp.		1,103,120			11,539
Copa Holdings, SA, Class A		400,458			11,481
ESCO Technologies Inc.2		285,700			11,057
PRONEXUS INC.1		1,627,000			11,007
Goodpack Ltd.1,3		24,678,000			10,709
IVRCL Infrastructures & Projects Ltd.1		4,455,000			10,688
Santos Brasil Participações SA, units		3,876,000			10,603
Grupo Aeroportuario del Pacífico, SAB de CV, Class B (ADR)		563,200			10,278
Wilson Sons Ltd. (BDR)		2,025,000			10,156
Robert Half International Inc.		547,440			9,761
Steelcase Inc., Class A		1,900,000			9,519
Korea Plant Service & Engineering Co., Ltd.1		400,000			9,022
Trakya Cam Sanayii AS1,2		16,186,936			8,879
Continental Airlines, Inc., Class B2		1,000,000			8,810
Actuant Corp., Class A		800,000			8,264
Melco International Development Ltd.1		26,200,000			8,076
Frigoglass SAIC1		1,967,833			7,944
Curtiss-Wright Corp.		268,600			7,534
Corporate Executive Board Co.		498,032			7,221
Permasteelisa SpA1		615,000			6,917
Cintas Corp.		274,000			6,773
Danieli & C. Officine Meccaniche SpA, nonconvertible shares1		1,200,000			6,694
TransDigm Group Inc.2		203,000			6,667
Geberit AG1		74,000			6,629
Hays PLC1		6,355,000			6,600
Corrections Corporation of America2		500,000			6,405
DCC PLC1		422,500			6,392
Kansas City Southern2		500,000			6,355
Ansaldo STS SpA1		390,000			6,190
Heidelberger Druckmaschinen AG1		1,270,000			6,138
Nagarjuna Construction Co. Ltd.1		4,904,544			6,058
S1 Corp.1		179,000			6,056
Alaska Air Group, Inc.2		340,000			5,974
Hopewell Highway Infrastructure Ltd.1		9,912,500			5,589
Kingspan Group PLC1		1,515,000			5,531
Japan Airport Terminal Co. Ltd.1		500,000			5,335
Intertek Group PLC1		415,000			5,264
AirAsia Bhd.1,2		20,250,000			5,239
Lonrho PLC1,2,3		49,660,000			5,157
G-Shank Enterprise Co., Ltd.1		11,512,438			5,075
Zumtobel AG1		690,000			4,985
LECG Corp.2,3		1,863,800			4,734
Landstar System, Inc.		135,000			4,518
Seco Tools AB, Class B1		650,000			4,442
ALL – América Latina Logística SA, units		1,000,000			4,290
BELIMO Holding AG1		6,300			4,255
Altra Holdings, Inc.2		1,081,948			4,198
Bradken Ltd.1		3,587,656			4,143
Korea Electric Terminal Co., Ltd.1		309,710			3,944
Northgate PLC1,3		4,114,822			3,842
Cpl Resources PLC1,3		2,975,986			3,553
Max India Ltd.1,2		1,795,000			3,475
ITE Group PLC1		3,545,000			3,285
J&P-AVAX SA1		1,104,774			2,683
Prysmian SpA1		260,000			2,585
TK Corp.1,2		82,950			1,790
Chen Hsong Holdings Ltd.1		8,614,000			1,473
Aalberts Industries NV1		253,908			1,367
American Shipping Co. ASA1,2		544,600			590
Aker Philadelphia Shipyard ASA1,4		346,000			462
Imagelinx PLC1,2,3		21,385,714			383
Hyunjin Materials Co., Ltd.1,2		11,263			273
BrisConnections Unit Trusts1,2,3		27,300,000			19
					1,872,081
HEALTH CARE — 13.67%
Myriad Genetics, Inc.2		2,288,000			104,035
Inverness Medical Innovations, Inc.2		3,072,700			81,826
Cochlear Ltd.1		2,024,890			70,645
Thoratec Corp.2		2,678,155			68,802
Masimo Corp.2		2,091,200			60,603
American Medical Systems Holdings, Inc.2,3		5,155,400			57,483
Illumina, Inc.2		1,425,000			53,067
NuVasive, Inc.2		1,596,261			50,091
Fisher & Paykel Healthcare Corp. Ltd.1		23,750,690			42,791
Volcano Corp.2,3		2,783,600			40,501
Hikma Pharmaceuticals PLC1		6,769,153			35,026
Millipore Corp.2		600,000			34,446
ResMed Inc2		815,000			28,802
ResMed Inc (CDI)1,2		1,500,000			5,527
Integra LifeSciences Holdings Corp.2		1,370,000			33,880
CardioNet, Inc.2		1,120,770			31,449
Haemonetics Corp.2		567,200			31,241
Nakanishi Inc.1,3		550,100			31,071
Hologic, Inc.2		2,336,000			30,578
Medicis Pharmaceutical Corp., Class A		2,245,000			27,771
ev3 Inc.2		3,900,000			27,690
Charles River Laboratories International, Inc.2		920,000			25,033
SonoSite, Inc.2,3		1,354,100			24,211
Beckman Coulter, Inc.		448,300			22,868
RHÖN-KLINIKUM AG, non-registered shares1		1,165,000			21,641
Mindray Medical International Ltd., Class A (ADR)		1,117,726			20,689
DiaSorin SpA1		877,100			19,561
XenoPort, Inc.2		1,000,000			19,360
Greatbatch, Inc.2		990,400			19,164
Covance Inc.2		535,000			19,062
Acorda Therapeutics, Inc.2		900,000			17,829
Laboratorios Almirall, SA1		2,051,800			17,749
Cougar Biotechnology, Inc.2,4		500,000			16,100
Invacare Corp.		935,000			14,988
Intuitive Surgical, Inc.2		155,000			14,781
Abaxis, Inc.2		834,700			14,390
Vibrac SA1		183,000			12,927
Tsumura & Co.1		490,000			12,654
Applera Corp., Celera Corp.2		1,658,000			12,651
Sonic Healthcare Ltd.1		1,552,967			11,987
Bumrungrad Hospital PCL1		23,355,300			11,805
Ipca Laboratories Ltd.1,3		1,794,000			11,711
PSS World Medical, Inc.2		800,000			11,480
Alexion Pharmaceuticals, Inc.2		300,000			11,298
Tecan Group AG1		415,586			11,093
Auxilium Pharmaceuticals, Inc.2		400,000			11,088
AMAG Pharmaceuticals, Inc.2		300,000			11,031
ZOLL Medical Corp.2		745,000			10,698
Eurand NV2		850,000			9,469
Orion Oyj, Class B1		655,000			9,463
Vital Images, Inc.2,3		792,000			8,926
TranS1 Inc.2,3		1,330,000			8,100
Recordati SpA1		1,300,000			7,069
Gerresheimer AG, non-registered shares1		365,270			6,668
United Therapeutics Corp.2		100,000			6,609
ArthroCare Corp.2		1,329,903			6,517
TECHNE Corp.		100,000			5,471
EGIS Nyrt.1		107,000			5,274
Array BioPharma Inc.2		1,920,000			5,069
Clínica Baviera, SA1		420,000			4,736
ABIOMED, Inc.2		940,491			4,608
Wright Medical Group, Inc.2		350,000			4,561
Vical Inc.2,3		2,250,279			4,321
AS ONE Corp.1		253,000			4,127
Laboratorios Farmacéuticos ROVI, SA1		710,000			3,953
Newron Pharmaceuticals SpA1,2		257,000			3,916
LifeCycle Pharma A/S1,2		2,275,000			3,247
Vision-Sciences, Inc.2,3		2,200,000			2,816
Savient Pharmaceuticals, Inc.2		500,000			2,475
Krka, dd, Novo mesto1		27,820			1,959
Exiqon A/S1,2		450,000			1,051
WuXi PharmaTech (Cayman) Inc. (ADR)2		230,500			1,044
Hythiam, Inc.2		2,700,000			837
A&D Pharma Holdings NV (GDR)1,2		775,200			823
Arpida Ltd.1,2,3		1,231,509			658
AtriCure, Inc.2		163,926			210
Allied Medical Ltd.1,2		147,030			21
					1,499,172
INFORMATION TECHNOLOGY — 12.33%
Kingboard Chemical Holdings Ltd.1,3		59,348,200			123,327
Intersil Corp., Class A3		6,090,000			70,035
IAC/InterActiveCorp2		3,500,000			53,305
SkillSoft PLC (ADR)2,3		7,225,000			48,335
KLA-Tencor Corp.		2,196,000			43,920
AVEVA Group PLC1,3		5,225,000			42,169
Novellus Systems, Inc.2		2,350,000			39,080
Semtech Corp.2		2,746,053			36,660
Digital River, Inc.2		1,194,000			35,605
Hittite Microwave Corp.2		1,065,000			33,228
SRA International, Inc., Class A2		2,250,000			33,075
Fidelity National Information Services, Inc.		1,728,000			31,450
Ultimate Software Group, Inc.2,3		1,755,000			30,291
Verifone Holdings, Inc.2		3,636,500			24,728
VistaPrint Ltd.2		875,000			24,054
Sun Microsystems, Inc.2		3,175,000			23,241
National Instruments Corp.		1,235,653			23,045
ACI Worldwide, Inc.2		1,194,900			22,404
AAC Acoustic Technologies Holdings Inc.1,2		44,865,000			21,126
Internet Brands, Inc., Class A2		3,272,895			19,212
Red Hat, Inc.2		1,064,609			18,993
Advantest Corp.1		1,200,000			18,188
Global Unichip Corp.1		4,120,076			18,169
Perfect World Co., Ltd., Class B (ADR)2		1,285,000			18,054
Varian Semiconductor Equipment Associates, Inc.2		802,500			17,382
Veeco Instruments Inc.2,3		2,566,396			17,118
Logitech International SA2		1,650,000			16,962
FormFactor, Inc.2		900,000			16,218
Echelon Corp.2		2,000,000			16,180
Akamai Technologies, Inc.2		827,000			16,044
Hana Microelectronics PCL1,3		53,925,000			15,368
Trimble Navigation Ltd.2		1,000,000			15,280
Avid Technology, Inc.2		1,633,400			14,929
Neopost SA1		191,077			14,785
Kingboard Laminates Holdings Ltd.1		53,064,236			14,748
ASM Pacific Technology Ltd.1		4,120,000			14,405
Halma PLC1		5,365,000			12,687
Internet Capital Group, Inc.2,3		3,096,000			12,477
Blackboard Inc.2		350,000			11,109
Kapsch TrafficCom AG1		548,989			10,783
Lender Processing Services, Inc.		350,000			10,713
Novell, Inc.2		2,478,000			10,556
Cognex Corp.		750,000			10,013
Heartland Payment Systems, Inc.		1,505,000			9,948
Mentor Graphics Corp.2		2,236,349			9,929
Tripod Technology Corp.1		7,000,000			9,379
Acer Inc.1		6,200,000			9,369
Littelfuse, Inc.2		850,000			9,342
DTS, Inc.2		379,300			9,126
salesforce.com, inc.2		270,000			8,837
SINA Corp.2		355,000			8,254
Renishaw PLC1		2,253,738			8,014
DigiTech Systems Co., Ltd.1,2		435,000			7,695
Omniture, Inc.2		575,000			7,584
DemandTec, Inc.2		845,000			7,394
Compal Electronics, Inc.1		10,200,500			7,341
Intermec, Inc.2		625,000			6,500
Solera Holdings, Inc.2		255,990			6,343
Power Integrations, Inc.		368,307			6,335
SanDisk Corp.2		500,000			6,325
Cadence Design Systems, Inc.2		1,500,000			6,300
Finisar Corp.2		13,321,895			5,862
austriamicrosystems AG, non-registered shares1,3		715,000			5,836
Redington (India) Ltd.1		2,680,868			5,820
Ono Sokki Co., Ltd.1,3		1,609,000			5,355
Techwell, Inc.2		825,000			5,206
Infotech Enterprises Ltd.1,3		3,000,000			5,032
Comverse Technology, Inc.2		860,000			4,936
Rolta India Ltd.1		4,000,000			4,560
TIBCO Software Inc.2		740,854			4,349
Orbotech Ltd.2		1,128,317			4,276
OBIC Co., Ltd.1		33,830			4,242
Dice Holdings, Inc.2		1,427,800			3,969
Wincor Nixdorf AG1		80,000			3,626
Hutchinson Technology Inc.2,3		1,286,035			3,344
Kaboose Inc.2,3		9,700,000			3,304
Delta Networks, Inc.1		14,000,000			3,173
Delta Electronics (Thailand) PCL1		12,150,000			3,157
Wistron Corp.1		2,832,000			3,069
LoopNet, Inc.2		401,500			2,441
THQ Inc.2		771,000			2,344
Monotype Imaging Holdings Inc.2		431,700			1,615
Stratasys, Inc.2		186,216			1,540
DFI, Inc.1		822,966			877
Oakton Ltd.1		1,520,000			830
Insight Enterprises, Inc.2		114,740			351
HSW International, Inc.2,4		815,215			135
HSW International, Inc.1,2,4		294,693			35
					1,352,750
CONSUMER DISCRETIONARY — 12.07%
Jumbo SA1,3		9,689,912			73,440
Café de Coral Holdings Ltd.1,3		31,900,000			62,651
NVR, Inc.2		103,500			44,272
Lions Gate Entertainment Corp.2,3		8,250,000			41,662
Chipotle Mexican Grill, Inc., Class A2		341,806			22,689
Chipotle Mexican Grill, Inc., Class B2		288,000			16,505
Fourlis1,3		4,074,000			37,427
Billabong International Ltd.1		5,895,000			34,906
GEOX SpA1		5,425,880			33,840
Marvel Entertainment, Inc.2		1,100,000			29,205
Trinity Ltd.1,2,3,4		82,337,500			28,897
Pantaloon Retail (India) Ltd.1,3		8,524,816			27,411
Pantaloon Retail (India) Ltd., Class B1,3		551,250			1,271
Ekornes ASA1,3		2,937,598			28,425
Blue Nile, Inc.2,3		941,140			28,375
O’Reilly Automotive, Inc.2		800,000			28,008
priceline.com Inc.2		350,000			27,573
Weight Watchers International, Inc.		1,320,000			24,486
Navitas Ltd.1		15,077,690			24,005
WABCO Holdings Inc.		1,950,000			24,004
lululemon athletica inc.2		2,768,214			23,973
CarMax, Inc.2		1,865,000			23,201
Central European Media Enterprises Ltd., Class A2		2,000,000			22,920
Kuoni Reisen Holding AG, Class B1		93,066			22,518
Virgin Media Inc.2		4,517,500			21,684
DeVry Inc.		450,000			21,681
Timberland Co., Class A2		1,767,000			21,098
Rightmove PLC1		5,174,057			19,370
Choice Hotels International, Inc.		750,000			19,365
CTC Media, Inc.2		4,075,000			18,582
American Public Education, Inc.2		425,000			17,875
Halfords Group PLC1		4,200,000			17,568
Tractor Supply Co.2		456,100			16,447
Nitori Co., Ltd.1		290,000			16,205
Live Nation, Inc.2,3		5,782,000			15,438
Las Vegas Sands Corp.2		5,000,000			15,050
Aristocrat Leisure Ltd.1		6,277,742			14,853
Leggett & Platt, Inc.		1,100,000			14,289
Autoliv AB		750,000			13,927
Grand Canyon Education, Inc.2		800,000			13,808
Lojas Renner SA, ordinary nominative		2,150,000			13,303
Williams-Sonoma, Inc.		1,247,800			12,578
D.R. Horton, Inc.		1,250,000			12,125
Schibsted ASA1		2,029,977			11,841
China Dongxiang (Group) Co., Ltd.1		32,000,000			11,771
REXLot Holdings Ltd.1,2		366,000,000			11,731
Urban Outfitters, Inc.2		675,000			11,050
GOME Electrical Appliances Holding Ltd.1		108,652,000			10,935
Harman International Industries, Inc.		800,000			10,824
Integrated Distribution Services Group Ltd.1		8,775,000			10,160
Hotai Motor Co., Ltd.1		7,162,415			10,013
K12 Inc.2		700,018			9,730
Domino’s Pizza Enterprises Ltd.1,3		4,563,190			9,521
Ascent Media Corp., Class A2		377,264			9,432
TAKKT AG1		1,071,778			9,247
Jackson Hewitt Tax Service Inc.3		1,761,400			9,195
Royal Caribbean Cruises Ltd.		1,100,000			8,811
Bloomsbury Publishing PLC1,3		5,405,000			8,753
Life Time Fitness, Inc.2		690,000			8,666
Dolan Media Co.2		1,034,514			8,142
Boyd Gaming Corp.		2,000,000			7,460
Nishimatsuya Chain Co., Ltd.1		1,000,000			7,089
TOD’S SpA1		162,000			6,894
Bosideng International Holdings Ltd.1		93,188,700			6,615
Peet’s Coffee & Tea, Inc.2		290,000			6,270
Pou Sheng International (Holdings) Ltd.1,2		57,525,000			6,013
P.F. Chang’s China Bistro, Inc.2		250,000			5,720
Restaurant Group PLC1		2,950,000			5,699
American Axle & Manufacturing Holdings, Inc.3		4,300,000			5,676
Bijou Brigitte modische Accessoires AG1		52,000			5,600
USS Co., Ltd.1		100,000			4,400
Titan Industries Ltd.1		275,493			4,247
Banyan Tree Holdings Ltd.1		16,693,000			4,117
ElringKlinger AG1		405,000			4,029
Bob Evans Farms, Inc.		175,000			3,924
Gaming VC Holdings SA1		1,396,800			3,775
Praktiker Bau- und Heimwerkermärkte Holding AG1		605,280			3,178
HUGO BOSS AG1		215,000			3,141
Saks Inc.2		1,457,500			2,726
Office Depot, Inc.2		2,055,000			2,692
Rambler Media Ltd.1,2		600,000			2,220
Galaxy Entertainment Group Ltd.1,2		13,250,000			2,052
Spot Runner, Inc.1,2,4		2,980,544			1,419
Ten Alps PLC1,2,3		3,439,001			1,292
Burani Designer Holding NV (CDI)1		589,428			665
Fontainebleau Resorts LLC, Class A, nonvoting units1,2,4		1,900,000			228
Mobile Travel Guide, Inc.1,2,4		96,033			16
CEC Unet PLC1,2,3		35,100,775			—
					1,323,889
FINANCIALS — 9.78%
Redwood Trust, Inc.3		3,730,000			57,256
Glacier Bancorp, Inc.3		3,250,000			51,058
BOK Financial Corp.		1,367,000			47,230
City National Corp.		1,380,000			46,603
Hopewell Holdings Ltd.1		16,728,500			43,942
Kotak Mahindra Bank Ltd.1		6,221,762			35,022
Daegu Bank, Ltd.1		6,361,090			34,017
Mercury General Corp.		1,000,724			29,722
eHealth, Inc.2,3		1,830,000			29,298
Westamerica Bancorp.		600,000			27,336
Champion Real Estate Investment Trust1		114,378,000			27,310
Ascendas Real Estate Investment Trust1		31,486,550			25,286
Eaton Vance Corp., nonvoting shares		1,100,000			25,135
Hospitality Properties Trust		2,050,000			24,600
IG Group Holdings PLC1		9,476,000			23,799
Topdanmark A/S1,2		235,700			23,254
Dah Sing Financial Holdings Ltd.1		11,649,400			22,703
Northwest Bancorp, Inc.		1,285,616			21,727
Jammu and Kashmir Bank Ltd.1,3		3,149,500			19,599
Banco De Oro Unibank, Inc.1		34,600,000			18,348
Industrial and Commercial Bank of China (Asia) Ltd.1		16,857,137			18,078
Central Pattana PCL1		49,016,000			17,313
China Banking Corp.1		2,410,785			16,279
Indiabulls Real Estate Ltd.1		8,000,000			15,880
Dolphin Capital Investors Ltd.1,2,3		36,765,400			15,788
Busan Bank1		3,518,000			15,198
Brown & Brown, Inc.		775,000			14,655
First Niagara Financial Group, Inc.		1,329,800			14,495
Hargreaves Lansdown PLC1		4,796,084			14,141
Gruppo MutuiOnline SpA1,3		3,160,000			14,140
Portfolio Recovery Associates, Inc.2		515,000			13,823
Banco Compartamos, SA, Institución de Banca Múltiple, Class O		7,250,000			13,760
Banco Cruzeiro do Sol SA, preferred nominative		5,543,100			13,599
Rayonier Inc.		450,000			13,599
Bajaj Holdings & Investment Ltd.1		2,285,000			13,428
Robinsons Land Corp., Class B1,3		142,388,300			13,326
UnionBank of the Philippines1		27,194,600			13,177
JSE Ltd.1		2,745,000			12,962
Home Federal Bancorp, Inc.3		1,384,249			12,084
CapitaRetail China Trust1		24,035,100			11,620
S P Setia Bhd.1		12,550,000			9,668
United Financial Bancorp, Inc.		685,000			8,967
Oslo Børs VPS Holding ASA1		1,002,335			8,929
Banco Macro SA, Class B (ADR)		841,915			8,554
TICON Property Fund1		36,717,400			8,344
Banque Cantonale Vaudoise1		25,000			8,297
Azimut Holding SpA1		1,496,663			7,990
Bolsa Mexicana de Valores, SAB de CV, Series A2		14,350,000			7,965
Banco ABC Brasil SA, preferred nominative		3,060,700			7,522
Hung Poo Real Estate Development Corp.1		9,317,250			6,775
Wing Tai Holdings Ltd.1		12,373,000			5,695
AEON Mall Co., Ltd.1		441,000			5,643
P/F Føroya Banki1,2		242,000			5,266
Banco Daycoval SA, preferred nominative		2,539,300			5,215
Farglory Land Development Co., Ltd.1		6,218,000			5,004
MCB Bank Ltd.1		2,846,250			4,975
Islamic Arab Insurance Co. (Salama)1,2		21,700,000			4,821
Cathay Real Estate Development Co. Ltd.1		17,400,000			4,707
Paraná Banco SA, preferred nominative		2,318,400			4,661
Ascendas India Trust1		12,750,000			4,403
Asya Katilim Bankasi AS, Class B1,2		6,090,009			4,077
Kiatnakin Bank PCL1		12,200,000			3,648
MGIC Investment Corp.		2,350,000			3,337
Bank Sarasin & Cie AG, Class B1		128,894			2,709
National Bank of Pakistan1,2		2,188,374			2,374
Amata Corp. PCL1		21,535,400			1,880
Federal Agricultural Mortgage Corp., Class C		173,249			464
					1,072,480
MATERIALS — 5.93%
AptarGroup, Inc.		2,359,682			73,481
Calgon Carbon Corp.2		2,455,000			34,787
James Hardie Industries NV1		11,500,609			33,713
Aquarius Platinum Ltd.1		7,500,000			21,807
Aquarius Platinum Ltd. (GBP denominated)1		3,468,652			10,187
Symrise AG1		2,612,480			30,928
Croda International PLC1		3,860,000			29,155
Talvivaara Mining Co. Ltd.1,2		8,900,000			27,624
Peter Hambro Mining PLC1		4,076,580			26,986
Valspar Corp.		1,300,000			25,961
Bemis Co., Inc.		1,000,000			20,970
Sealed Air Corp.		1,300,000			17,940
Rhodia SA1		4,875,901			17,883
KazakhGold Group Ltd. (GDR)1,2		1,419,158			9,459
KazakhGold Group Ltd. (GDR)1,2,5		948,000			6,319
Kansai Paint Co., Ltd.1		2,735,000			15,357
United Phosphorus Ltd.1		7,140,000			13,942
FUCHS PETROLUB AG1		332,517			13,323
Mineral Deposits Ltd.1,2,3		16,142,844			7,526
Mineral Deposits Ltd. (CAD denominated)1,2,3		6,300,000			2,937
Mineral Deposits Ltd. (CAD denominated)1,2,3		6,100,000			2,615
RPM International, Inc.		1,000,000			12,730
Intrepid Potash, Inc.2		618,013			11,402
Yamana Gold Inc.		1,200,000			11,188
RTI International Metals, Inc.2		920,000			10,764
LANXESS AG1		625,000			10,629
PT Indocement Tunggal Prakarsa Tbk1		21,125,000			9,598
China Shanshui Cement Group Ltd.1,2		25,200,000			9,186
PT Semen Gresik1		27,150,000			8,817
Rusoro Mining Ltd.2,4		20,000,000			8,714
Gold Wheaton Gold Corp.2,4		42,440,000			8,405
Minerals Technologies Inc.		220,000			7,051
Ambuja Cements Ltd.1		4,811,775			6,712
Timminco Ltd.2		3,215,000			6,494
AMG Advanced Metallurgical Group NV1,2		1,103,726			6,384
Sino-Forest Corp.2		900,000			6,267
Obtala Resources PLC1,2,3,4		7,950,000			3,132
Obtala Resources PLC1,2,3		7,000,000			2,758
Kenmare Resources PLC1,2,3		51,336,000			5,813
Sika AG, non-registered shares1		7,800			5,783
Birla Corp. Ltd.1		1,648,000			5,775
Zep Inc.		518,126			5,300
African Minerals Ltd.1,2		8,201,000			5,085
Northern Iron Ltd.1,2		4,613,597			4,510
Cementir Holding SpA1		1,600,000			4,434
Buzzi Unicem SpA1		372,674			4,181
Lynas Corp. Ltd.1,2		30,165,969			4,167
Eastern Platinum Ltd.2		10,105,450			3,242
Eastern Platinum Ltd.2,4		2,500,000			802
Central African Mining & Exploration Co. PLC1,2		51,546,569			3,549
Polo Resources Ltd.1,2		61,936,200			3,195
Ta Ann Holdings Bhd.1		3,853,600			3,126
Oxus Gold PLC1,2		15,915,000			1,992
Gem Diamonds Ltd.1,2		800,000			1,710
Banro Corp.2,4		890,000			1,445
Mangalam Cement Ltd.1		900,000			1,054
J.K. Cement Ltd.1		945,000			745
Prism Cement Ltd.1		1,291,269			581
Vatukoula Gold Mines PLC1,2,4		54,150,000			447
Zoloto Resources Ltd.2,3		8,175,000			227
Mwana Africa PLC1,2,4		2,353,064			144
					650,438
ENERGY — 4.86%
Heritage Oil Ltd.1,2,3		14,848,000			70,528
BJ Services Co.		5,701,800			56,733
FMC Technologies, Inc.2		1,695,000			53,172
Helmerich & Payne, Inc.		2,075,000			47,248
Concho Resources Inc.2		1,754,810			44,906
Pacific Rubiales Energy Corp.2		8,435,000			32,674
Uranium One Inc.2		13,580,500			27,432
Core Laboratories NV		344,205			25,182
KNM Group Bhd.1,3		231,151,000			24,707
WorleyParsons Ltd.1		1,839,556			23,130
Banpu PCL1		3,755,300			22,967
Oceaneering International, Inc.2		500,000			18,435
Bill Barrett Corp.2		700,000			15,568
Hunting PLC1		2,516,000			14,316
Centennial Coal Co. Ltd.1		5,927,391			8,256
Encore Acquisition Co.2		350,000			8,145
Eurasia Drilling Co. Ltd. (GDR)1		2,190,000			7,767
Value Creation Inc.1,2,4		4,529,354			7,746
Regal Petroleum PLC1,2,3		12,487,000			7,563
Bankers Petroleum Ltd.2		4,567,933			6,368
Bankers Petroleum Ltd.2,4		733,333			1,022
Gulf Keystone Petroleum Ltd.1,2,3,4		23,700,000			3,821
Zhaikmunai LP (GDR)1,2,5		790,000			1,580
Mart Resources, Inc.2,4		12,459,375			1,135
Sterling Energy PLC1,2		42,232,307			957
Oilexco Inc.2		6,808,600			566
Oilexco Inc. (GBP denominated)1,2,4		2,900,000			243
Oilexco Inc.2,4		520,000			43
OPTI Canada Inc.2		932,150			731
High Arctic Energy Services Inc.2		1,923,000			183
					533,124
CONSUMER STAPLES — 3.16%
Lindt & Sprüngli AG1		1,694			27,494
Lindt & Sprüngli AG, participation certificate1		19,166			25,595
MARR SpA1,3		3,380,063			22,839
Hain Celestial Group, Inc.2		1,590,000			22,641
ARYZTA AG1,2		905,000			21,137
Whole Foods Market, Inc.		1,025,000			17,220
Hypermarcas SA, ordinary nominative2		2,150,000			15,824
Bare Escentuals, Inc.2		3,824,400			15,680
First Pacific Co. Ltd.1		44,300,000			15,208
Kernel Holding SA1,2		3,243,300			14,435
Poslovni sistem Mercator, dd1		69,933			13,972
Emmi AG1		136,100			12,057
Thai Union Frozen Products PCL1		18,000,000			10,375
PT BISI International Tbk1,2		74,836,500			10,146
GlaxoSmithKline Consumer Healthcare Ltd.1		635,897			8,845
China Yurun Food Group Ltd.1		6,570,000			8,376
Tassal Group Ltd.1		6,500,000			8,072
Coca-Cola Icecek AS, Class C1		1,672,785			7,940
AMOREPACIFIC Corp.1		17,600			7,831
Origin Enterprises PLC1,2		3,213,300			7,405
Drogasil SA, ordinary nominative		1,563,900			7,130
Universal Robina Corp.1		51,235,000			6,921
China Milk Products Group Ltd.1		30,800,000			6,382
Chattem, Inc.2		100,000			5,605
Fresh Del Monte Produce Inc.2		328,357			5,392
PrimeAg Australia Ltd.1,2		7,000,000			5,259
Gr. Sarantis ABEE1		1,500,000			5,231
Lakshmi Energy and Foods Ltd.1		2,401,000			4,601
Alfa-Beta Vassilopoulos SA1		142,808			4,431
PT Astra Agro Lestari Tbk1		2,420,000			2,963
					347,007
TELECOMMUNICATION SERVICES — 2.53%
tw telecom inc.2		6,300,000			55,125
CenturyTel, Inc.		1,377,400			38,733
Cellcom Israel Ltd.		850,000			18,105
Cellcom Israel Ltd. (ILS denominated)1		855,000			17,667
Partner Communications Co. Ltd.1		2,065,000			31,050
LG Telecom Ltd.1		4,370,000			26,892
DiGi.Com Bhd.1		2,927,500			17,058
NTELOS Holdings Corp.		825,000			14,966
Total Access Communication PCL1		17,046,000			13,026
True Corp. PCL1,2		344,540,000			13,007
Cbeyond, Inc.2		600,000			11,298
Globe Telecom, Inc.1		526,867			9,116
Manitoba Telecom Services Inc.		300,000			7,593
StarHub Ltd1		3,246,840			4,226
QSC AG1,2		42,223			51
					277,913
UTILITIES — 1.60%
Xinao Gas Holdings Ltd.1,3		57,520,000			57,901
Manila Water Co., Inc.1,3		111,206,800			25,422
Glow Energy PCL1		42,550,000			25,231
AES Tietê SA, preferred nominative		2,400,000			18,341
Northumbrian Water Group PLC1		5,270,000			16,457
First Gen Corp.1,2		22,039,000			10,551
CESC Ltd.1		1,746,400			7,315
Acea SpA1		602,485			7,195
Electricity Generating PCL1		2,285,000			4,280
Tanjong PLC1		890,000			3,366
					176,059
MISCELLANEOUS — 4.98%
Other common stocks in initial period of acquisition					546,548
Total common stocks (cost: $14,315,224,000)					9,651,461
Warrants — 0.02%
MATERIALS — 0.02%
Gold Wheaton Gold Corp., warrants, expire 20111,2,4		17,500,000			1,210
Gold Wheaton Gold Corp., warrants, expire 20132,4		3,720,000			192
					1,402
ENERGY — 0.00%
Bankers Petroleum Ltd., warrants, expire 20122,4		366,667			160
FINANCIALS — 0.00%
S P Setia Bhd., warrants, expire 20132		1,875,000			136
INDUSTRIALS — 0.00%
Goodpack Ltd., warrants, expire 20091,2,3		2,459,750			8
Total warrants (cost: $219,000)					1,706
	Shares or
Convertible securities — 0.34%	principal amount
HEALTH CARE — 0.24%
Fluidigm Corp., Series E, convertible preferred1,2,3,4		1,251,055			16,429
BG Medicine, Inc., Series D, convertible preferred1,2,3,4		1,538,462			10,000
					26,429
MATERIALS — 0.08%
Peter Hambro Mining PLC 7.125% convertible debentures 2010	$	10,200,000			8,553
TELECOMMUNICATION SERVICES — 0.01%
tw telecom inc. 2.375% convertible debentures 2026		1,600,000			1,198
CONSUMER DISCRETIONARY — 0.01%
Spot Runner, Inc., Series C, convertible preferred1,2,4		1,626,016			774
Total convertible securities (cost: $42,792,000)					36,954
	Principal amount
Bonds & notes — 0.07%		(000	)
ENERGY — 0.07%
International Coal Group, Inc. 10.25% 2014	$	11,900			7,676
Total bonds & notes (cost: $11,637,000)					7,676
Short-term securities — 12.00%
Freddie Mac 0.21%–0.90% due 4/24–7/20/2009		313,700			313,534
Fannie Mae 0.10%–0.85% due 4/1–7/14/2009		207,600			207,526
U.S. Treasury Bills 0.205%–1.40% due 4/9–8/27/2009		165,000			164,939
Federal Home Loan Bank 0.185%–0.35% due 4/17–6/26/2009		117,700			117,660
BNP Paribas Finance Inc. 0.11%–0.67% due 4/1–4/7/2009		69,700			69,696
Bank of Nova Scotia 0.25% due 4/27/2009		50,000			49,991
Caisse d’Amortissement de la Dette Sociale 0.31% due 5/4/2009		50,000			49,985
Unilever Capital Corp. 0.75% due 4/28/20095		50,000			49,979
Total Capital Canada Ltd. 0.40% due 4/8/20095		46,500			46,496
Rabobank USA Financial Corp. 0.23%–0.30% due 4/29–5/26/2009		40,000			39,988
Denmark (Kingdom of) 0.30% due 6/22/2009		39,000			38,967
International Bank for Reconstruction and Development 0.32% due 5/1/2009		27,200			27,189
Procter & Gamble International Funding S.C.A. 0.15% due 4/7/20095		23,900			23,898
British Columbia (Province of) 0.27% due 6/22/2009		18,300			18,289
Statoil ASA 0.35% due 4/20/20095		18,000			17,991
Canada Bills 0.40% due 7/23/2009		18,000			17,982
Shell International Finance BV 0.30% due 4/30/20095		17,900			17,893
Novartis Finance Corp. 0.20% due 4/2/20095		16,500			16,500
General Electric Capital Corp., FDIC insured, 0.38% due 4/21/2009		16,000			15,996
Wal-Mart Stores Inc. 0.25% due 6/16/20095		12,100			12,093
Total short-term securities (cost: $1,316,354,000)					1,316,592
Total investment securities (cost: $15,686,226,000)					11,014,389
Other assets less liabilities					(44,075	)
Net assets				$	10,970,314

“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

1Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in “Miscellaneous,”  was $4,354,980,000, which represented 39.70% of the net assets of the fund.

2Security did not produce income during the last 12 months.

3Represents an affiliated company as defined under the Investment Company Act of 1940.

4Purchased in a transaction exempt from registration under the Securities Act of 1933. May be subject to legal or contractual restrictions on resale. Further details on these holdings appear below.

	Acquisition date(s)	Cost  (000)		Value  (000)		Percent of net assets
Trinity Ltd.	12/6/2007	$	37,508	$	28,897		.26	%
Fluidigm Corp., Series E, convertible preferred	12/21/2006–10/24/2007		17,515		16,429		.15
Cougar Biotechnology, Inc.	12/17/2007		14,500		16,100		.15
BG Medicine, Inc., Series D, convertible preferred	7/9/2008		10,000		10,000		.09
Gold Wheaton Gold Corp.	6/27/2008–2/24/2009		10,625		8,405		.08
Gold Wheaton Gold Corp., warrants, expire 2011	2/24/2009		47		1,210		.01
Gold Wheaton Gold Corp., warrants, expire 2013	6/27/2008		—		192		.00
Rusoro Mining Ltd.	3/10/2009		9,256		8,714		.08
Value Creation Inc.	8/25/2005–9/1/2006		33,229		7,746		.07
Gulf Keystone Petroleum Ltd.	7/22/2008		13,210		3,821		.04
Obtala Resources PLC	2/26/2009		1,921		3,132		.03
Spot Runner, Inc.	10/25/2006­–3/20/2008		15,071		1,419		.01
Spot Runner, Inc., Series C, convertible preferred	10/25/2006		6,000		774		.01
Banro Corp.	7/26/2005		3,799		1,445		.01
Bankers Petroleum Ltd.	2/22/2007		1,173		1,022		.01
Bankers Petroleum Ltd., warrants, expire 2012	2/22/2007		—		160		.00
Mart Resources, Inc.	1/16/2007–9/7/2007		5,594		1,135		.02
Eastern Platinum Ltd.	4/3/2007		4,100		802		.01
Aker Philadelphia Shipyard ASA	12/5/2007		3,626		462		.00
Vatukoula Gold Mines PLC	6/4/2008		4,519		447		.00
Oilexco Inc. (GBP denominated)	12/15/2005		9,456		243		.00
Oilexco Inc.	3/7/2007		3,454		43		.00
Fontainebleau Resorts LLC, Class A, nonvoting units	10/5/2005–6/1/2007		21,500		228		.00
HSW International, Inc.	10/2/2007­		3,000		135		.00
HSW International, Inc.	12/17/2007­		907		35		.00
Mwana Africa PLC	12/7/2005		1,980		144		.00
Mobile Travel Guide, Inc.	12/17/2007		24		16		.00
Total restricted securities		$	232,014	$	113,156		1.03	%

5Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration,  normally to qualified institutional buyers. The total value of all such securities was $192,749,000, which represented 1.76% of the net assets of the fund.

Key to abbreviations
ADR = American Depositary Receipts	GDR = Global Depositary Receipts	ILS = Israeli shekels
BDR = Brazilian Depositary Receipts	CAD = Canadian dollars
CDI = CREST Depository Interest	GBP = British pounds

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

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing.

MFGEFP-935-0509O-S15788

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 nominating committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of 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 nominating committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating committee.

ITEM 11 – Controls and Procedures

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

ITEM 12 – Exhibits

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

SIGNATURES

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

SMALLCAP WORLD FUND, INC.

By /s/ Paul F. Roye

Paul F. Roye, Executive Vice President and

Principal Executive Officer

Date: June 8, 2009

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

By /s/ Paul F. Roye

Paul F. Roye, Executive Vice President and

Principal Executive Officer

Date: June 8, 2009

By /s/ Neal F. Wellons

Neal F. Wellons, Treasurer and

Principal Financial Officer

Date: June 8, 2009