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, 2011
Patrick F. Quan
Capital Research and Management Company
P.O. Box 7650, One Market, Steuart Tower
San Francisco, California 94120
(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
SMALLCAP World Fund®
[photo of the side of a mirrored-glass building]
Semi-annual report for the six months ended March 31, 2011
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 33 American Funds. American Funds is one of the nation’s largest mutual fund families. For 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, so they may lose value. For current information and month-end results, visit americanfunds.com.
Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2011: | ||||||||||||
1 year | 5 years | 10 years | ||||||||||
Class A shares | ||||||||||||
Reflecting 5.75% maximum sales charge | 13.14 | % | 3.82 | % | 8.25 | % |
The total annual fund operating expense ratio was 1.13% for Class A shares as of the most recent fiscal year-end.
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. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 28 to 33 for details.
Results for other share classes can be found on page 36.
Investing outside the United States may be subject to risks, such as currency fluctuations and political instability. These risks may be heightened in connection with investments in developing countries. 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.
Fellow shareholders:
[photo of the side of a mirrored-glass building]
The first six months of SMALLCAP World Fund’s fiscal year were marked by continued, but uneven, progress in the global economic recovery. For the six months ended March 31, 2011, the fund saw a total return of 12.9%, which included a dividend of 52.1 cents paid on December 28, 2010. Those who took dividends in cash saw a total return of 11.4% for the six-month period.
By comparison, the unmanaged MSCI All Country World Small Cap Index, the fund’s primary benchmark, gained 19.5% for the period. The Lipper Global Small-Cap Funds Average, the fund’s peer group, rose 15.6%. None of the benchmarks include sales charges or taxes. The better results of the index may be attributed to smaller holdings in emerging markets stocks than the fund, as we will discuss later on.
Continued recovery
The first six months of the fund’s fiscal year saw improved economic conditions around the world. Yet a number of concerns, new and old, continue to rein in positive sentiment.
[Begin Sidebar]
Results at a glance | ||||||||||||||||||||
For periods ended March 31, 2011, with all distributions reinvested | ||||||||||||||||||||
Average annual total returns | ||||||||||||||||||||
Lifetime | ||||||||||||||||||||
Total returns | (since | |||||||||||||||||||
6 months | 1 year | 5 years | 10 years | 4/30/90) | ||||||||||||||||
SMALLCAP World Fund | ||||||||||||||||||||
(Class A shares) | 12.9 | % | 20.1 | % | 5.1 | % | 8.9 | % | 10.0 | % | ||||||||||
MSCI All Country World | ||||||||||||||||||||
Small Cap Index1,2 | 19.5 | 24.2 | 5.9 | 11.3 | n/a | |||||||||||||||
Lipper Global Small-Cap | ||||||||||||||||||||
Funds Average3 | 15.6 | 22.6 | 3.7 | 8.5 | 10.2 | |||||||||||||||
1 The market index cited in this report is unmanaged, and its results do not reflect the effect of sales charges, commissions, account fees, expenses or taxes. | ||||||||||||||||||||
2 The MSCI All Country World Small Cap Index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results of smaller capitalization companies in both developed and emerging markets. | ||||||||||||||||||||
3 Results of the Lipper average do not reflect the effect of sales charges, account fees or taxes. |
[End Sidebar]
The economy in the United States has continued its steady recovery. Recent jobs reports have been encouraging. However, a number of unresolved issues may have a long-term impact on this otherwise positive environment — high levels of state and federal debt most notably. As a result, the Federal Reserve continued its Treasury buy-back program during the period, signalling its commitment to shore up the recovery and keep interest rates low.
A more uneven recovery is underway in Western Europe. Germany and the Scandinavian nations saw strong growth, even as Greece, Ireland and Portugal petitioned the European Union for bailout funds.
The result of this economic backdrop has been a strong rise in U.S. equities during the period, given companies’ growing profitability and the low interest rate environment. This rise in U.S. equities came at the expense of emerging markets stocks to some degree, as investors worried about the potential for inflation and rising rates there. European stocks saw gains, but less than those in the United States.
Portfolio review
In all economic environments, SMALLCAP World Fund takes a long-term approach to investing. As such, the fund maintained roughly 20% of its portfolio in emerging markets equities during the period, almost double that of the benchmark index. While this was a drag on returns, we continue to believe in the long-term vitality of these markets, and particularly in the stocks we have selected for the portfolio.
The fund’s investments in consumer discretionary stocks made up 15.5% of net assets at the end of the period, reflecting market gains in this sector as consumer spending gained traction. Industrial stocks were 14.3% of net assets and likewise posted strong returns. Information technology stocks made up 14.5% of net assets and, based on stronger consumer and business spending, helped boost the fund.
[Begin Sidebar]
Where are SMALLCAP’s holdings located?
[begin pie chart]
As of March 31, 2011 | Percent of net assets | |||
United States | 40.9 | % | ||
Asia & Pacific Basin | 25.9 | |||
Europe | 19.7 | |||
Other (including Canada & Latin America) | 7.1 | |||
Short-term securities & other assets less liabilities | 6.4 |
[end pie chart]
[begin pie chart]
As of September 30, 2010 | Percent of net assets | |||
United States | 39.1 | % | ||
Asia & Pacific Basin | 27.9 | |||
Europe | 19.5 | |||
Other (including Canada & Latin America) | 6.5 | |||
Short-term securities & other assets less liabilities | 7.0 |
[end pie chart]
The fund’s largest holding, ENN Energy Holdings, gained 8.5% for the period. Athletic wear retailer lululemon athletica jumped 99.1% in value, quickly becoming the fund’s second largest holding in addition to one of its best-returning stocks. All of the fund’s top 10 holdings produced positive returns for the period, with nine of the top 10 producing returns in excess of 20%.
Roughly 53% of the fund is invested in non-U.S. equities, slightly lower than when the period began. The fund’s holdings in Asian and Pacific Basin companies edged lower, while holdings in Europe, Canada and Latin America grew.
Looking ahead
The global recovery appears to be on solid footing, though it remains uneven and risks remain. High debt levels in the United States and Europe threaten long-term economic stability, while unrest in the Middle East has resulted in soaring energy prices that could curtail economic growth. Yet corporate profit growth has increased, balance sheets are generally sound, and consumer spending around the world has increased.
For the moment, we believe there are numerous opportunities around the world for investment in small companies with sound balance sheets and strong potential.
We continue to use a disciplined, long-term approach in selecting investments for the fund, and we encourage you to take a long-term view of your own investments as well. We appreciate your continued trust and support, and look forward to reporting to you again in six months.
Cordially,
/s/ Gordon Crawford
Gordon Crawford
Vice Chairman of the Board
/s/ Gregory W. Wendt
Gregory W. Wendt
President
May 11, 2011
For current information about the fund, visit americanfunds.com.
Summary investment portfolio March 31, 2011
unaudited
The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
[begin pie chart]
Industry sector diversification | Percent of net assets | |||
Consumer discretionary | 15.48 | % | ||
Information technology | 14.52 | |||
Industrials | 14.25 | |||
Financials | 11.14 | |||
Health care | 10.64 | |||
Other industries | 27.15 | |||
Other asset types | 0.42 | |||
Short-term securities & other assets less liabilities | 6.40 |
[end pie chart]
Country diversification | (percent of net assets) | |||
United States | 40.9 | % | ||
Euro zone* | 7.8 | |||
United Kingdom | 7.7 | |||
China | 5.4 | |||
India | 4.3 | |||
Canada | 3.8 | |||
Australia | 3.1 | |||
Hong Kong | 2.6 | |||
Japan | 2.3 | |||
Brazil | 2.0 | |||
South Korea | 1.9 | |||
Other countries | 11.8 | |||
Short-term securities & other assets less liabilities | 6.4 | |||
*Countries using the euro as a common currency; those represented in the fund's portfolio are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia and Spain. |
Percent | ||||||||||||
Value | of net | |||||||||||
Common stocks - 93.18% | Shares | (000 | ) | assets | ||||||||
Consumer discretionary - 15.48% | ||||||||||||
lululemon athletica inc. (1) | 2,261,414 | $ | 201,379 | .88 | % | |||||||
Virgin Media Inc. | 5,062,500 | 140,687 | .62 | |||||||||
CTC Media, Inc. | 5,125,000 | 120,796 | .53 | |||||||||
Chipotle Mexican Grill, Inc. (1) | 393,000 | 107,041 | .47 | |||||||||
PT Sumber Alfaria Trijaya Tbk (2) | 274,541,000 | 86,705 | .38 | |||||||||
Delticom AG (2) | 898,203 | 81,277 | .36 | |||||||||
Minth Group Ltd. | 44,714,000 | 74,959 | .33 | |||||||||
CarMax, Inc. (1) | 2,257,000 | 72,450 | .32 | |||||||||
Jumbo SA (2) | 9,249,878 | 71,575 | .31 | |||||||||
Modern Times Group MTG AB, Class B | 913,000 | 69,431 | .31 | |||||||||
Other securities | 2,498,014 | 10.97 | ||||||||||
3,524,314 | 15.48 | |||||||||||
Information technology - 14.52% | ||||||||||||
AAC Acoustic Technologies Holdings Inc. (2) | 70,007,000 | 189,000 | .83 | |||||||||
Kingboard Chemical Holdings Ltd. | 32,356,200 | 170,130 | .75 | |||||||||
Compuware Corp. (1) (2) | 11,770,000 | 135,944 | .60 | |||||||||
SINA Corp. (1) | 1,142,000 | 122,240 | .54 | |||||||||
National Instruments Corp. | 3,686,479 | 120,806 | .53 | |||||||||
Hittite Microwave Corp. (1) (2) | 1,884,500 | 120,175 | .53 | |||||||||
Monster Worldwide, Inc. (1) | 6,091,000 | 96,847 | .42 | |||||||||
FactSet Research Systems, Inc. | 670,000 | 70,169 | .31 | |||||||||
Other securities | 2,280,782 | 10.01 | ||||||||||
3,306,093 | 14.52 | |||||||||||
Industrials - 14.25% | ||||||||||||
MSC Industrial Direct Co., Inc., Class A | 2,338,500 | 160,117 | .70 | |||||||||
Container Corp. of India Ltd. | 4,542,191 | 122,230 | .54 | |||||||||
Jain Irrigation Systems Ltd. (2) | 23,537,564 | 94,425 | .41 | |||||||||
Corrections Corporation of America (1) | 3,695,300 | 90,165 | .40 | |||||||||
MTU Aero Engines Holding AG | 1,323,100 | 89,723 | .39 | |||||||||
Intertek Group PLC | 2,702,000 | 88,165 | .39 | |||||||||
Meyer Burger Technology AG (1) | 1,916,576 | 86,491 | .38 | |||||||||
IDEX Corp. | 1,885,000 | 82,280 | .36 | |||||||||
Michael Page International PLC | 9,727,502 | 80,209 | .35 | |||||||||
Herman Miller, Inc. | 2,800,000 | 76,972 | .34 | |||||||||
Other securities | 2,275,566 | 9.99 | ||||||||||
3,246,343 | 14.25 | |||||||||||
Financials - 11.14% | ||||||||||||
East West Bancorp, Inc. (2) | 8,437,515 | 185,288 | .81 | |||||||||
Dah Sing Financial Holdings Ltd. (2) | 18,921,825 | 116,763 | .51 | |||||||||
City National Corp. | 1,680,450 | 95,870 | .42 | |||||||||
YES BANK Ltd. | 13,275,845 | 92,167 | .41 | |||||||||
Manappuram General Finance and Leasing Ltd. (2) | 22,732,050 | 67,694 | ||||||||||
Manappuram General Finance and Leasing Ltd. (2) (3) | 4,474,357 | 13,324 | .36 | |||||||||
Kotak Mahindra Bank Ltd. | 7,170,098 | 73,614 | .32 | |||||||||
Zions Bancorporation | 3,145,000 | 72,524 | .32 | |||||||||
Onex Corp. | 2,000,000 | 70,119 | .31 | |||||||||
Other securities | 1,749,186 | 7.68 | ||||||||||
2,536,549 | 11.14 | |||||||||||
Health care - 10.64% | ||||||||||||
Alere Inc. (1) | 3,443,771 | 134,789 | .59 | |||||||||
Cochlear Ltd. | 1,441,910 | 123,775 | .54 | |||||||||
Endo Pharmaceuticals Holdings Inc. (1) | 3,108,100 | 118,605 | .52 | |||||||||
Fleury SA, ordinary nominative | 5,252,150 | 78,011 | .34 | |||||||||
Integra LifeSciences Holdings Corp. (1) (2) | 1,609,978 | 76,345 | .34 | |||||||||
American Medical Systems Holdings, Inc. (1) | 3,453,000 | 74,723 | .33 | |||||||||
Other securities | 1,816,374 | 7.98 | ||||||||||
2,422,622 | 10.64 | |||||||||||
Materials - 7.84% | ||||||||||||
African Minerals Ltd. (1) (3) | 1,871,500 | 15,026 | ||||||||||
African Minerals Ltd. (1) | 10,821,621 | 86,887 | .45 | |||||||||
Rhodia SA | 2,845,043 | 83,301 | .36 | |||||||||
AptarGroup, Inc. | 1,617,682 | 81,094 | .36 | |||||||||
Kenmare Resources PLC (1) | 95,876,802 | 68,213 | ||||||||||
Kenmare Resources PLC (1) (3) | 14,095,980 | 10,029 | .34 | |||||||||
Harry Winston Diamond Corp. (CAD denominated) (1) (2) | 4,292,400 | 69,157 | ||||||||||
Harry Winston Diamond Corp. (1) (2) | 372,600 | 6,029 | .33 | |||||||||
Other securities | 1,366,885 | 6.00 | ||||||||||
1,786,621 | 7.84 | |||||||||||
Energy - 7.15% | ||||||||||||
Pacific Rubiales Energy Corp. | 4,151,300 | 115,183 | .51 | |||||||||
Comstock Resources, Inc. (1) (2) | 3,049,611 | 94,355 | .41 | |||||||||
Gulf Keystone Petroleum Ltd. (1) (2) (3) | 38,737,632 | 94,147 | .41 | |||||||||
Banpu PCL | 3,377,500 | 85,764 | .38 | |||||||||
InterOil Corp. (1) | 1,092,500 | 81,544 | .36 | |||||||||
Concho Resources Inc. (1) | 725,000 | 77,792 | .34 | |||||||||
Rosetta Resources Inc. (1) | 1,625,000 | 77,252 | .34 | |||||||||
FMC Technologies, Inc. (1) | 815,000 | 77,001 | .34 | |||||||||
Zhaikmunai LP (GDR) (1) (3) | 5,262,500 | 64,992 | ||||||||||
Zhaikmunai LP (GDR) (1) | 353,650 | 4,368 | .30 | |||||||||
Other securities | 855,864 | 3.76 | ||||||||||
1,628,262 | 7.15 | |||||||||||
Consumer staples - 4.30% | ||||||||||||
Drogasil SA, ordinary nominative (2) | 9,482,600 | 74,111 | .33 | |||||||||
Other securities | 905,596 | 3.97 | ||||||||||
979,707 | 4.30 | |||||||||||
Utilities - 1.62% | ||||||||||||
ENN Energy Holdings Ltd. (2) | 69,350,000 | 215,756 | .95 | |||||||||
Other securities | 153,155 | .67 | ||||||||||
368,911 | 1.62 | |||||||||||
Telecommunication services - 1.29% | ||||||||||||
tw telecom inc. (1) | 4,548,000 | 87,322 | .38 | |||||||||
Other securities | 207,294 | .91 | ||||||||||
294,616 | 1.29 | |||||||||||
Miscellaneous - 4.95% | ||||||||||||
Other common stocks in initial period of acquisition | 1,126,600 | 4.95 | ||||||||||
Total common stocks (cost: $15,192,946,000) | 21,220,638 | 93.18 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Preferred stocks - 0.12% | (000 | ) | assets | |||||||||
Information technology - 0.09% | ||||||||||||
Other securities | 20,000 | .09 | ||||||||||
Miscellaneous - 0.03% | ||||||||||||
Other preferred stocks in initial period of acquisition | 7,928 | .03 | ||||||||||
Total preferred stocks (cost: $25,528,000) | 27,928 | .12 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Warrants - 0.05% | (000 | ) | assets | |||||||||
Other - 0.05% | ||||||||||||
Other securities | 10,603 | .05 | ||||||||||
Miscellaneous - 0.00% | ||||||||||||
Other warrants in initial period of acquisition | 895 | .00 | ||||||||||
Total warrants (cost: $3,286,000) | 11,498 | .05 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Convertible securities - 0.23% | (000 | ) | assets | |||||||||
Other - 0.23% | ||||||||||||
Other securities | 53,301 | .23 | ||||||||||
Total convertible securities (cost: $44,838,000) | 53,301 | .23 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Bonds & notes - 0.02% | (000 | ) | assets | |||||||||
Financials - 0.02% | ||||||||||||
Other securities | 3,247 | .02 | ||||||||||
Total bonds & notes (cost: $3,132,000) | 3,247 | .02 | ||||||||||
Principal | Percent | |||||||||||
amount | Value | of net | ||||||||||
Short-term securities - 6.28% | (000 | ) | (000 | ) | assets | |||||||
Freddie Mac 0.15%-0.23% due 8/8-11/17/2011 | $ | 286,400 | $ | 286,175 | 1.26 | |||||||
Commonwealth Bank of Australia 0.255%-0.26% due 5/17-6/14/2011 (3) | 163,750 | 163,685 | .72 | |||||||||
Fannie Mae 0.10%-0.17% due 5/4-5/24/2011 | 104,800 | 104,785 | .46 | |||||||||
Jupiter Securitization Co., LLC 0.21% due 4/13-4/15/2011 (3) | 93,000 | 92,993 | .41 | |||||||||
Nordea North America, Inc. 0.215%-0.225% due 4/25-5/24/2011 | 85,700 | 85,679 | .38 | |||||||||
KfW 0.24% due 6/2-6/7/2011 (3) | 69,700 | 69,676 | .30 | |||||||||
Other securities | 628,147 | 2.75 | ||||||||||
Total short-term securities (cost: $1,431,109,000) | 1,431,140 | 6.28 | ||||||||||
Total investment securities (cost: $16,700,839,000) | 22,747,752 | 99.88 | ||||||||||
Other assets less liabilities | 26,328 | .12 | ||||||||||
Net assets | $ | 22,774,080 | 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. The value of the fund's affiliated-company holdings is either shown in the summary investment portfolio or included in the value of "Other securities" under the respective industry sectors. Further details on such holdings and related transactions during the six months ended March 31, 2011, appear below. |
Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Dividend or interest income (000) | Value of affiliates at 3/31/2011 (000) | |||||||||||||||||||
ENN Energy Holdings Ltd. | 69,350,000 | - | - | 69,350,000 | $ | - | $ | 215,756 | ||||||||||||||||
AAC Acoustic Technologies Holdings Inc. | 70,922,000 | 10,870,000 | 11,785,000 | 70,007,000 | - | 189,000 | ||||||||||||||||||
East West Bancorp, Inc. | 6,937,515 | 1,500,000 | - | 8,437,515 | 156 | 185,288 | ||||||||||||||||||
Compuware Corp. (1) | 11,270,000 | 500,000 | - | 11,770,000 | - | 135,944 | ||||||||||||||||||
Hittite Microwave Corp. (1) | 1,959,000 | 25,500 | 100,000 | 1,884,500 | - | 120,175 | ||||||||||||||||||
Dah Sing Financial Holdings Ltd. | 16,819,400 | 2,102,425 | - | 18,921,825 | - | 116,763 | ||||||||||||||||||
Dah Sing Financial Holdings Ltd., rights, expire 2010 | - | 2,102,425 | 2,102,425 | - | - | - | ||||||||||||||||||
Jain Irrigation Systems Ltd. | 3,925,140 | 19,778,564 | 166,140 | 23,537,564 | 2 | 94,425 | ||||||||||||||||||
Comstock Resources, Inc. (1) | 1,280,000 | 1,769,611 | - | 3,049,611 | - | 94,355 | ||||||||||||||||||
Gulf Keystone Petroleum Ltd. (1) (3) | 51,987,632 | 750,000 | 14,000,000 | 38,737,632 | - | 94,147 | ||||||||||||||||||
PT Sumber Alfaria Trijaya Tbk | - | 274,541,000 | - | 274,541,000 | 224 | 86,705 | ||||||||||||||||||
Delticom AG | 728,265 | 169,938 | - | 898,203 | - | 81,277 | ||||||||||||||||||
Manappuram General Finance and Leasing Ltd. | 19,962,050 | 2,770,000 | - | 22,732,050 | - | 67,694 | ||||||||||||||||||
Manappuram General Finance and Leasing Ltd. (3) | - | 4,474,357 | - | 4,474,357 | - | 13,324 | ||||||||||||||||||
Integra LifeSciences Holdings Corp. (1) | 1,382,590 | 227,388 | - | 1,609,978 | - | 76,345 | ||||||||||||||||||
Harry Winston Diamond Corp. (CAD denominated) (1) | 4,292,400 | - | - | 4,292,400 | - | 69,157 | ||||||||||||||||||
Harry Winston Diamond Corp. (1) | 372,600 | - | - | 372,600 | - | 6,029 | ||||||||||||||||||
Drogasil SA, ordinary nominative | 3,253,500 | 6,386,400 | 157,300 | 9,482,600 | 464 | 74,111 | ||||||||||||||||||
Jumbo SA | 9,249,878 | - | - | 9,249,878 | 2,061 | 71,575 | ||||||||||||||||||
ZOLL Medical Corp. (1) | 1,514,270 | 17,970 | - | 1,532,240 | - | 68,660 | ||||||||||||||||||
Mobile Mini, Inc. (1) | 2,221,600 | 540,000 | - | 2,761,600 | - | 66,334 | ||||||||||||||||||
Emeritus Corp. (1) | 1,765,000 | 800,000 | - | 2,565,000 | - | 65,305 | ||||||||||||||||||
Pipavav Shipyard Ltd. (1) | 32,910,000 | 2,015,000 | - | 34,925,000 | - | 61,752 | ||||||||||||||||||
Lions Gate Entertainment Corp. (1) | 9,100,000 | - | - | 9,100,000 | - | 56,875 | ||||||||||||||||||
Exillon Energy PLC (1) | 7,369,660 | 1,044,545 | - | 8,414,205 | - | 55,342 | ||||||||||||||||||
Northgate PLC (1) | 10,626,805 | - | - | 10,626,805 | - | 54,245 | ||||||||||||||||||
Ekornes ASA | 2,019,750 | - | - | 2,019,750 | - | 54,052 | ||||||||||||||||||
National Financial Partners Corp. (1) | 3,174,800 | - | - | 3,174,800 | - | 46,828 | ||||||||||||||||||
National Financial Partners Corp. 4.00% convertible notes 2017 (3) | $ | 4,000,000 | - | - | $ | 4,000,000 | 80 | 5,345 | ||||||||||||||||
Goodpack Ltd. | 26,360,000 | 3,700,000 | - | 30,060,000 | 1,144 | 46,264 | ||||||||||||||||||
Goodpack Ltd., warrants, expire 2012 (1) | 5,272,000 | - | - | 5,272,000 | - | 4,935 | ||||||||||||||||||
Gem Diamonds Ltd. (1) | 10,255,000 | 806,300 | - | 11,061,300 | - | 49,685 | ||||||||||||||||||
Savient Pharmaceuticals, Inc. (1) | 2,326,345 | 2,200,655 | 232,800 | 4,294,200 | - | 45,519 | ||||||||||||||||||
Savient Pharmaceuticals, Inc. 4.75% convertible notes 2018 | - | $ | 3,400,000 | - | $ | 3,400,000 | 25 | 4,003 | ||||||||||||||||
JSE Ltd. | 3,990,234 | 551,011 | - | 4,541,245 | - | 46,990 | ||||||||||||||||||
Schweitzer-Mauduit International, Inc. | - | 920,000 | - | 920,000 | 138 | 46,561 | ||||||||||||||||||
Cadence Pharmaceuticals, Inc. (1) | - | 5,042,279 | - | 5,042,279 | - | 46,439 | ||||||||||||||||||
China High Precision Automation Group Ltd. (4) | 34,179,000 | 28,691,000 | - | 62,870,000 | 405 | 45,504 | ||||||||||||||||||
Avid Technology, Inc. (1) | 2,039,944 | - | 11,100 | 2,028,844 | - | 45,243 | ||||||||||||||||||
Coal of Africa Ltd. (1) | 27,975,000 | 9,160,000 | - | 37,135,000 | - | 44,828 | ||||||||||||||||||
Ruinian International Ltd. (4) | 32,400,000 | 30,400,000 | - | 62,800,000 | - | 44,000 | ||||||||||||||||||
Internet Capital Group, Inc. (1) | 3,096,000 | - | - | 3,096,000 | - | 43,963 | ||||||||||||||||||
Hana Microelectronics PCL | 53,925,000 | - | - | 53,925,000 | 2,666 | 42,791 | ||||||||||||||||||
Exponent, Inc. (1) | 936,400 | - | - | 936,400 | - | 41,773 | ||||||||||||||||||
Cox and Kings (India) Ltd. | 2,716,000 | 1,347,950 | - | 4,063,950 | - | 37,691 | ||||||||||||||||||
Cox and Kings (India) Ltd. (GDR) (5) | 165,000 | - | - | 165,000 | - | 1,530 | ||||||||||||||||||
FormFactor, Inc. (1) | 3,715,000 | - | - | 3,715,000 | - | 38,264 | ||||||||||||||||||
Quantum Corp. (1) | 12,568,897 | - | - | 12,568,897 | - | 31,674 | ||||||||||||||||||
Quantum Corp. 3.50% convertible notes 2015 (3) | - | $ | 4,900,000 | - | $ | 4,900,000 | 64 | 4,826 | ||||||||||||||||
Talison Lithium Ltd. (1) | - | 6,425,000 | - | 6,425,000 | - | 34,792 | ||||||||||||||||||
Cline Mining Corp. (1) | - | 9,343,536 | - | 9,343,536 | - | 33,635 | ||||||||||||||||||
LoopNet, Inc. (1) | 2,278,440 | - | 63,800 | 2,214,640 | - | 31,337 | ||||||||||||||||||
SinoTech Energy Ltd. (ADR) (1) | - | 3,820,900 | - | 3,820,900 | - | 30,491 | ||||||||||||||||||
Amtek Engineering Ltd. (1) | - | 30,199,000 | - | 30,199,000 | - | 30,427 | ||||||||||||||||||
Super Group Ltd. | - | 29,500,000 | - | 29,500,000 | - | 30,190 | ||||||||||||||||||
Gran Colombia Gold SA (1) | 45,056,000 | 4,420,000 | 33,792,000 | 15,684,000 | - | 28,472 | ||||||||||||||||||
Gran Colombia Gold SA, warrants, expire 2015 (1) | 22,528,000 | - | 21,146,000 | 1,382,000 | - | 1,169 | ||||||||||||||||||
Ennis, Inc. | 2,065,810 | - | 332,118 | 1,733,692 | 589 | 29,525 | ||||||||||||||||||
CJ CGV Co., Ltd. | - | 1,235,000 | - | 1,235,000 | 225 | 29,160 | ||||||||||||||||||
Tethys Petroleum Ltd. (1) | 11,505,100 | 8,622,400 | 997,200 | 19,130,300 | - | 29,007 | ||||||||||||||||||
Mood Media Corp. (1) (3) | 6,375,000 | - | - | 6,375,000 | - | 19,661 | ||||||||||||||||||
Mood Media Corp. (CDI) (1) (3) | - | 2,375,000 | - | 2,375,000 | - | 7,325 | ||||||||||||||||||
Comfort Systems USA, Inc. | 1,905,000 | - | - | 1,905,000 | 191 | 26,803 | ||||||||||||||||||
Jaguar Mining Inc. (1) | 5,035,000 | - | - | 5,035,000 | - | 26,330 | ||||||||||||||||||
Domino's Pizza Enterprises Ltd. | 4,482,300 | - | 480,000 | 4,002,300 | 420 | 25,667 | ||||||||||||||||||
First Southern Bancorp, Inc. (1) (5) (6) | 1,344,915 | - | - | 1,344,915 | - | 15,924 | ||||||||||||||||||
First Southern Bancorp, Inc., Series C, convertible preferred (1) (5) (6) | 2,299 | - | - | 2,299 | - | 9,415 | ||||||||||||||||||
Houston Wire & Cable Co. | 1,678,900 | - | - | 1,678,900 | 285 | 24,546 | ||||||||||||||||||
ValueVision Media, Inc., Class A (1) | - | 3,686,093 | - | 3,686,093 | - | 23,444 | ||||||||||||||||||
BrisConnections Unit Trusts (1) | 27,300,000 | - | - | 27,300,000 | - | 22,873 | ||||||||||||||||||
Net 1 UEPS Technologies, Inc. (1) | 2,768,873 | - | 129,543 | 2,639,330 | - | 22,698 | ||||||||||||||||||
Infotech Enterprises Ltd. | 6,000,000 | - | - | 6,000,000 | - | 21,763 | ||||||||||||||||||
Pacific Coal, SA (1) (3) | - | 17,000,000 | - | 17,000,000 | - | 19,288 | ||||||||||||||||||
Pacific Coal, SA, warrants, expire 2016 (1) (3) | - | 8,500,000 | - | 8,500,000 | - | 2,017 | ||||||||||||||||||
Pacific Coal, SA, subscription receipts | - | 17,000,000 | 17,000,000 | - | - | - | ||||||||||||||||||
OnMobile Global Ltd. (1) | 2,837,000 | 755,055 | - | 3,592,055 | - | 19,533 | ||||||||||||||||||
CDON Group AB (1) | - | 3,555,515 | - | 3,555,515 | - | 19,265 | ||||||||||||||||||
Fluidigm Corp. (1) (3) (5) | - | 984,195 | - | 984,195 | - | 11,971 | ||||||||||||||||||
Fluidigm Corp. (1) | - | 500,000 | - | 500,000 | - | 7,155 | ||||||||||||||||||
Fluidigm Corp., Series E, convertible preferred | 1,309,740 | - | 1,309,740 | - | - | - | ||||||||||||||||||
Fluidigm Corp., warrant, expires 2011 | 1 | - | 1 | - | - | - | ||||||||||||||||||
Mahindra Lifespace Developers Ltd. (4) | 1,133,612 | 1,023,768 | - | 2,157,380 | - | 18,647 | ||||||||||||||||||
Standard Parking Corp. (1) | 998,000 | 50,600 | - | 1,048,600 | - | 18,623 | ||||||||||||||||||
Pharmacyclics, Inc. (1) (4) | 1,000,000 | 2,062,300 | - | 3,062,300 | - | 18,037 | ||||||||||||||||||
Brait SA | - | 6,347,050 | - | 6,347,050 | - | 17,592 | ||||||||||||||||||
Immersion Corp. (1) | - | 2,254,000 | - | 2,254,000 | - | 17,221 | ||||||||||||||||||
Douglas Dynamics, Inc. | 1,175,000 | - | - | 1,175,000 | 905 | 16,755 | ||||||||||||||||||
School Specialty, Inc. (1) (4) | 810,000 | 343,240 | - | 1,153,240 | - | 16,491 | ||||||||||||||||||
Home Federal Bancorp, Inc. | 1,384,249 | - | - | 1,384,249 | 152 | 16,306 | ||||||||||||||||||
Petrodorado Energy Ltd. (1) | 22,400,000 | 13,000,000 | - | 35,400,000 | - | 16,249 | ||||||||||||||||||
Obtala Resources Ltd. (1) | 8,500,000 | - | - | 8,500,000 | - | 6,630 | ||||||||||||||||||
Obtala Resources Ltd. (1) (3) | 7,950,000 | - | - | 7,950,000 | - | 6,201 | ||||||||||||||||||
EACOM Timber Corp. (1) (3) | 23,000,000 | - | - | 23,000,000 | - | 12,336 | ||||||||||||||||||
Cpl Resources PLC | 2,975,986 | - | - | 2,975,986 | 203 | 11,809 | ||||||||||||||||||
Green Packet Bhd. (1) (3) | 29,583,116 | - | - | 29,583,116 | - | 6,398 | ||||||||||||||||||
Green Packet Bhd. (1) | 23,016,100 | - | - | 23,016,100 | - | 4,977 | ||||||||||||||||||
Bloomsbury Publishing PLC | 5,405,000 | - | - | 5,405,000 | 69 | 11,272 | ||||||||||||||||||
Sirius Minerals PLC (1) | - | 56,804,735 | - | 56,804,735 | - | 10,821 | ||||||||||||||||||
National American University Holdings, Inc. | 1,515,000 | - | - | 1,515,000 | 91 | 10,741 | ||||||||||||||||||
Vital Images, Inc. (1) | 792,000 | - | - | 792,000 | - | 10,700 | ||||||||||||||||||
Tilaknager Industries Ltd. | - | 8,890,000 | - | 8,890,000 | - | 10,675 | ||||||||||||||||||
BG Medicine, Inc. (1) (3) (5) | - | 1,036,634 | - | 1,036,634 | - | 6,794 | ||||||||||||||||||
BG Medicine, Inc. (1) | - | 374,213 | - | 374,213 | - | 2,885 | ||||||||||||||||||
BG Medicine, Inc., warrants, expire 2020 (1) (3) (5) | 57,692 | 28,846 | 34,617 | 51,921 | - | 339 | ||||||||||||||||||
BG Medicine, Inc. 12.00% convertible notes 2011 | $ | 500,000 | $ | 250,000 | $ | 750,000 | - | 46 | - | |||||||||||||||
BG Medicine, Inc., Series D, convertible preferred | 1,538,462 | - | 1,538,462 | - | - | - | ||||||||||||||||||
Imagelinx PLC (1) | 21,385,714 | - | - | 21,385,714 | - | 515 | ||||||||||||||||||
CEC Unet PLC (1) (5) | 35,100,775 | - | - | 35,100,775 | - | - | ||||||||||||||||||
athenahealth, Inc. (1) (7) | 1,894,998 | 107,000 | 516,635 | 1,485,363 | - | - | ||||||||||||||||||
Blue Nile, Inc. (1) (7) | 829,140 | - | 200,000 | 629,140 | - | - | ||||||||||||||||||
CKX, Inc. (7) | 6,070,427 | - | 6,070,427 | - | - | - | ||||||||||||||||||
Duff & Phelps Corp., Class A (7) | 2,205,300 | - | 1,031,408 | 1,173,892 | 282 | - | ||||||||||||||||||
Fourlis (7) | 3,855,540 | - | 2,045,540 | 1,810,000 | - | - | ||||||||||||||||||
Gruppo MutuiOnline SpA (7) | 2,388,968 | - | 1,484,145 | 904,823 | - | - | ||||||||||||||||||
Interline Brands, Inc. (1) (7) | 1,882,000 | - | 582,000 | 1,300,000 | - | - | ||||||||||||||||||
KAB Distribution Inc (7) | 9,700,000 | - | 9,700,000 | - | - | - | ||||||||||||||||||
Maple Energy PLC (7) | 9,390,000 | - | 9,390,000 | - | - | - | ||||||||||||||||||
Masterskill Education Group Bhd. (7) | 24,300,000 | - | 12,917,000 | 11,383,000 | - | - | ||||||||||||||||||
Newron Pharmaceuticals SpA (1) (7) | 257,000 | - | 143,000 | 114,000 | - | - | ||||||||||||||||||
Newron Pharmaceuticals SpA (1) (3) (7) | 142,000 | - | 88,000 | 54,000 | - | - | ||||||||||||||||||
Petroceltic International PLC (1) (7) | 137,014,652 | - | 44,625,652 | 92,389,000 | - | - | ||||||||||||||||||
Petroleum Development Corp. (1) (7) | 1,537,000 | - | 460,000 | 1,077,000 | - | - | ||||||||||||||||||
PixArt Imaging Inc. (7) | 8,415,000 | - | 6,865,000 | 1,550,000 | - | - | ||||||||||||||||||
Regal Petroleum PLC (7) | 21,693,000 | - | 21,693,000 | - | - | - | ||||||||||||||||||
SAF-HOLLAND SA, non-registered shares (1) (7) | 1,655,600 | - | - | 1,655,600 | - | - | ||||||||||||||||||
SeLoger.com (7) | 982,201 | - | 982,201 | - | - | - | ||||||||||||||||||
Shengli Oil & Gas Pipe Holdings Ltd. (7) | 137,365,500 | - | 137,365,500 | - | - | - | ||||||||||||||||||
Thoratec Corp. (1) (7) | 3,201,500 | 215,000 | 2,070,500 | 1,346,000 | - | - | ||||||||||||||||||
TranS1 Inc. (7) | 1,338,731 | - | 1,338,731 | - | - | - | ||||||||||||||||||
$ | 10,887 | $ | 3,942,188 |
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) Security did not produce income during the last 12 months. | |||
(2) Represents an affiliated company as defined under the Investment Company Act of 1940. | |||
(3) Acquired in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $1,053,398,000, which represented 4.63% of the net assets of the fund. | |||
(4) This security was an unaffiliated issuer in its initial period of acquisition at 9/30/2010; it was not publicly disclosed. | |||
(5) Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in "Other securities," was $96,074,000, which represented .42% of the net assets of the fund. | |||
(6) Acquired 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 | Cost | Value | Percent of | ||||||||||
date | (000) | (000) | net assets | ||||||||||
First Southern Bancorp, Inc. | 12/17/2009 | 28,378 | 15,924 | .07 | % | ||||||||
First Southern Bancorp, Inc., Series C, convertible preferred | 12/17/2009 | 2,299 | 9,415 | .04 | |||||||||
Other restricted securities | 106,639 | 44,217 | .20 | ||||||||||
Total restricted securities | $ | 137,316 | $ | 69,556 | .31 | % |
(7) Unaffiliated issuer at 3/31/2011. | |||
Key to abbreviations | |||
ADR = American Depositary Receipts | |||
CDI = CREST Depository Interest | |||
GDR = Global Depositary Receipts | |||
CAD= Canadian dollars | |||
See Notes to Financial Statements |
Financial statements
Statement of assets and liabilities | unaudited | |||||||
at March 31, 2011 | (dollars in thousands) | |||||||
Assets: | ||||||||
Investment securities, at value: | ||||||||
Unaffiliated issuers (cost: $13,525,807) | $ | 18,805,564 | ||||||
Affiliated issuers (cost: $3,175,032) | 3,942,188 | $ | 22,747,752 | |||||
Cash denominated in currencies other than U.S. dollars | ||||||||
(cost: $2,271) | 2,273 | |||||||
Cash | 71 | |||||||
Receivables for: | ||||||||
Sales of investments | 133,448 | |||||||
Sales of fund's shares | 25,346 | |||||||
Dividends and interest | 23,480 | |||||||
Other | 121 | 182,395 | ||||||
22,932,491 | ||||||||
Liabilities: | ||||||||
Payables for: | ||||||||
Purchases of investments | 99,778 | |||||||
Repurchases of fund's shares | 34,961 | |||||||
Investment advisory services | 11,975 | |||||||
Services provided by related parties | 9,106 | |||||||
Directors' deferred compensation | 2,071 | |||||||
Other | 520 | 158,411 | ||||||
Net assets at March 31, 2011 | $ | 22,774,080 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of capital stock | $ | 18,771,919 | ||||||
Distributions in excess of net investment income | (343,760 | ) | ||||||
Accumulated net realized loss | (1,701,372 | ) | ||||||
Net unrealized appreciation | 6,047,293 | |||||||
Net assets at March 31, 2011 | $ | 22,774,080 |
(dollars and shares in thousands, except per-share amounts) | ||||||||||||
Total authorized capital stock - 1,000,000 shares, $.01 par value (574,704 total shares outstanding) | ||||||||||||
Net assets | Shares outstanding | Net asset value per share | ||||||||||
Class A | $ | 16,084,204 | 403,046 | $ | 39.91 | |||||||
Class B | 400,074 | 10,568 | 37.86 | |||||||||
Class C | 995,627 | 26,544 | 37.51 | |||||||||
Class F-1 | 783,581 | 19,805 | 39.56 | |||||||||
Class F-2 | 320,459 | 8,016 | 39.98 | |||||||||
Class 529-A | 673,109 | 16,961 | 39.69 | |||||||||
Class 529-B | 53,078 | 1,387 | 38.27 | |||||||||
Class 529-C | 235,232 | 6,163 | 38.17 | |||||||||
Class 529-E | 38,801 | 991 | 39.14 | |||||||||
Class 529-F-1 | 56,870 | 1,430 | 39.76 | |||||||||
Class R-1 | 49,868 | 1,302 | 38.30 | |||||||||
Class R-2 | 792,599 | 20,687 | 38.31 | |||||||||
Class R-3 | 762,454 | 19,523 | 39.05 | |||||||||
Class R-4 | 572,866 | 14,448 | 39.65 | |||||||||
Class R-5 | 407,368 | 10,110 | 40.29 | |||||||||
Class R-6 | 547,890 | 13,723 | 39.92 | |||||||||
See Notes to Financial Statements |
Statement of operations | unaudited | |||||||
for the six months ended March 31, 2011 | (dollars in thousands) | |||||||
Investment income: | ||||||||
Income: | ||||||||
Dividends (net of non-U.S. taxes of $5,829; | ||||||||
also includes $10,672 from affiliates) | $ | 103,268 | ||||||
Interest (includes $215 from affiliates) | 3,576 | $ | 106,844 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 69,212 | |||||||
Distribution services | 33,737 | |||||||
Transfer agent services | 13,718 | |||||||
Administrative services | 6,185 | |||||||
Reports to shareholders | 781 | |||||||
Registration statement and prospectus | 300 | |||||||
Directors' compensation | 576 | |||||||
Auditing and legal | 35 | |||||||
Custodian | 1,889 | |||||||
State and local taxes | 363 | |||||||
Other | 861 | 127,657 | ||||||
Net investment loss | (20,813 | ) | ||||||
Net realized gain and unrealized appreciation | ||||||||
on investments and currency: | ||||||||
Net realized gain (loss) on: | ||||||||
Investments (includes $52,012 net loss from affiliates) | 995,670 | |||||||
Currency transactions | (1,475 | ) | 994,195 | |||||
Net unrealized appreciation (depreciation) on: | ||||||||
Investments | 1,624,458 | |||||||
Currency translations | (370 | ) | 1,624,088 | |||||
Net realized gain and unrealized appreciation | ||||||||
on investments and currency | 2,618,283 | |||||||
Net increase in net assets resulting | ||||||||
from operations | $ | 2,597,470 | ||||||
(*) 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, 2011* | Year ended September 30, 2010 | |||||||
Operations: | ||||||||
Net investment (loss) income | $ | (20,813 | ) | $ | 64,495 | |||
Net realized gain on investments and currency transactions | 994,195 | 962,332 | ||||||
Net unrealized appreciation on investments and currency translations | 1,624,088 | 2,198,399 | ||||||
Net increase in net assets resulting from operations | 2,597,470 | 3,225,226 | ||||||
Dividends paid to shareholders from net investment income | (282,964 | ) | (103,851 | ) | ||||
Net capital share transactions | 327,340 | (485,003 | ) | |||||
Total increase in net assets | 2,641,846 | 2,636,372 | ||||||
Net assets: | ||||||||
Beginning of period | 20,132,234 | 17,495,862 | ||||||
End of period (including distributions in excess of | ||||||||
net investment income: $(343,760) and $(39,983), respectively) | $ | 22,774,080 | $ | 20,132,234 | ||||
*Unaudited. | ||||||||
See Notes to Financial Statements |
Notes to financial statements
unaudited
1. | 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. In 2009, shareholders approved a proposal to reorganize the fund from a Maryland corporation to a Delaware statutory trust. The reorganization may be completed in 2011; however, the fund reserves the right to delay the implementation.
The fund has 16 share classes consisting of five retail share classes, five 529 college savings plan share classes and six retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The six retirement plan share classes (R-1, R-2, R-3, R-4, R-5 and R-6) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:
Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
Classes A and 529-A | Up to 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, R-5 and R-6 | None | None | None |
*Class B and 529-B shares of the fund are not available for purchase.
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
2. | Significant accounting policies |
The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. 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.
Loan transactions – The fund may enter into loan transactions in which the fund acquires a loan either through an agent, by assignment from another holder, or as a participation interest in another holder's portion of a loan. The loan is often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the sale of the investment. The loan's interest rate and maturity date may change based on the terms of the loan, including potential early payments of principal.
3. | Valuation |
The fund’s investments are reported at fair value as defined by accounting principles generally accepted in the United States of America. The fund generally determines the net asset value of each share class as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Methods and inputs – The fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades.
Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained as of approximately 3:00 p.m. New York time from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Where the investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under guidelines adopted by authority of the fund's board of directors. Market quotations may be considered unreliable if events occur that materially affect the value of securities (particularly equity securities trading 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 inputs may be reviewed in order to make a good faith determination of a security’s fair value. These inputs include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Classifications - The fund classifies its assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of March 31, 2011 (dollars in thousands):
Investment securities: | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Common stocks: | ||||||||||||||||
Consumer discretionary | $ | 3,522,759 | $ | 1,530 | $ | 25 | $ | 3,524,314 | ||||||||
Information technology | 3,306,026 | - | 67 | 3,306,093 | ||||||||||||
Industrials | 3,245,985 | 358 | - | 3,246,343 | ||||||||||||
Financials | 2,509,191 | - | 27,358 | 2,536,549 | ||||||||||||
Health care | 2,403,781 | - | 18,841 | 2,422,622 | ||||||||||||
Materials | 1,781,095 | - | 5,526 | 1,786,621 | ||||||||||||
Energy | 1,615,647 | - | 12,615 | 1,628,262 | ||||||||||||
Consumer staples | 979,707 | - | - | 979,707 | ||||||||||||
Utilities | 368,911 | - | - | 368,911 | ||||||||||||
Telecommunication services | 294,616 | - | - | 294,616 | ||||||||||||
Miscellaneous | 1,126,600 | - | - | 1,126,600 | ||||||||||||
Preferred stocks | 7,928 | - | 20,000 | 27,928 | ||||||||||||
Warrants | 11,159 | - | 339 | 11,498 | ||||||||||||
Convertible securities | 12,074 | 31,812 | 9,415 | 53,301 | ||||||||||||
Bonds & notes | - | 3,247 | - | 3,247 | ||||||||||||
Short-term securities | - | 1,431,140 | - | 1,431,140 | ||||||||||||
Total | $ | 21,185,479 | $ | 1,468,087 | $ | 94,186 | $ | 22,747,752 |
The following table reconciles the valuation of the fund's Level 3 investment securities and related transactions for the six months ended March 31, 2011 (dollars in thousands): | ||||||||||||||||||||||||||||||||
Beginning value at 10/1/2010 | Transfers into Level 3(*) | Purchases | Unrealized depreciation(†) | Transfers out of Level 3(*) | Sales | Net realized loss(†) | Ending value at 3/31/2011 | |||||||||||||||||||||||||
Investment securities | $ | 104,314 | $ | 14,175 | $ | 49,412 | $ | (13,940 | ) | $ | (2,275 | ) | $ | (49,672 | ) | $ | (7,828 | ) | $ | 94,186 | ||||||||||||
Net unrealized depreciation during the period on Level 3 investment securities held at March 31, 2011 (dollars in thousands) (†): | $ | (22,250 | ) | |||||||||||||||||||||||||||||
(*) Transfers into or out of Level 3 are based on the beginning market value of the quarter in which they occurred. | ||||||||||||||||||||||||||||||||
(†) Net realized loss and unrealized depreciation are included in the related amounts on investments in the statement of operations. |
4. | Risk factors |
Investing in the fund may involve certain risks including, but not limited to, those described below.
Market conditions — The prices of, and the income generated by, the securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.
Investing in growth-oriented stocks — Growth-oriented stocks and other equity-type securities may involve larger price swings and greater potential for loss than other types of investments. These risks may be even greater in the case of smaller capitalization stocks.
Investing in small companies — Investing in smaller companies may pose additional risks. For example, it is often more difficult to value or dispose of small company stocks and more difficult to obtain information about smaller companies. In addition, the prices of these stocks may be more volatile than stocks of larger, more established companies.
Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of political, social or economic developments in the country or region in which the issuer operates. These securities may also lose value due to changes in the exchange rate of the country’s currency against the U.S. dollar. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards than those in the U.S. The risks of investing outside the U.S. may be heightened in connection with investments in developing countries.
Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the techniques and risk analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives.
5. | Taxation and distributions |
Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended March 31, 2011, 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 2006, by state tax authorities for tax years before 2005 and by tax authorities outside the U.S. for tax years before 2003.
Non-U.S. taxation – Dividend and interest income are 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 different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; deferred expenses; cost of investments sold; net capital losses; and non-U.S. taxes on capital gains. 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, 2010, the components of distributable earnings on a tax basis were as follows:
(dollars in thousands) | ||||||||
Undistributed ordinary income | $ | 206,213 | ||||||
Capital loss carryforwards*: | ||||||||
Expiring 2017 | $ | (365,461 | ) | |||||
Expiring 2018 | (2,298,979 | ) | (2,664,440 | ) | ||||
*The capital loss carryforwards will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration dates. The fund will not make distributions from capital gains while capital loss carryforwards remain. |
As of March 31, 2011, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:
(dollars in thousands) | ||||
Gross unrealized appreciation on investment securities | $ | 6,663,212 | ||
Gross unrealized depreciation on investment securities | (904,578 | ) | ||
Net unrealized appreciation on investment securities | 5,758,634 | |||
Cost of investment securities | 16,989,118 |
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after September 30, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
Tax-basis distributions paid to shareholders from ordinary income were as follows (dollars in thousands):
Share class | Six months ended March 31, 2011 | Year ended September 30, 2010 | ||||||
Class A | $ | 210,257 | $ | 82,116 | ||||
Class B | 2,673 | - | ||||||
Class C | 7,653 | 320 | ||||||
Class F-1 | 10,417 | 4,116 | ||||||
Class F-2 | 4,577 | 1,894 | ||||||
Class 529-A | 8,269 | 3,021 | ||||||
Class 529-B | 297 | - | ||||||
Class 529-C | 1,537 | - | ||||||
Class 529-E | 393 | 109 | ||||||
Class 529-F-1 | 789 | 331 | ||||||
Class R-1 | 384 | 34 | ||||||
Class R-2 | 5,629 | - | ||||||
Class R-3 | 8,347 | 2,561 | ||||||
Class R-4 | 7,568 | 3,241 | ||||||
Class R-5 | 6,317 | 2,757 | ||||||
Class R-6 | 7,857 | 3,351 | ||||||
Total | $ | 282,964 | $ | 103,851 |
6. | Fees and transactions with related parties |
Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares, and American Funds Service Company® ("AFS"), the fund’s transfer agent.
Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.800% on the first $1 billion of daily net assets and decreasing to 0.595% on such assets in excess of $27 billion. For the six months ended March 31, 2011, the investment advisory services fee was $69,212,000, which was equivalent to an annualized rate of 0.636% 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 on the following page:
Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of 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 with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
For Classes A and 529-A, the board of 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, 2011, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.
Share class | Currently approved limits | Plan limits |
Class A | 0.30% | 0.30% |
Class 529-A | 0.30 | 0.50 |
Classes B and 529-B | 1.00 | 1.00 |
Classes C, 529-C and R-1 | 1.00 | 1.00 |
Class R-2 | 0.75 | 1.00 |
Classes 529-E and R-3 | 0.50 | 0.75 |
Classes F-1, 529-F-1 and R-4 | 0.25 | 0.50 |
Transfer agent services – The fund has a transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC as described below.
Administrative services – The fund has an administrative services agreement with CRMC for all share classes, except Classes A and B, to provide certain services, including transfer agent and recordkeeping services; coordinating, monitoring, assisting and overseeing third-party service providers; and educating advisers and shareholders about the impact of market-related events, tax laws affecting investments, retirement plan restrictions, exchange limitations and other related matters. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services.
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 series of decreasing 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, 2011, were as follows (dollars in thousands):
Administrative services | ||||||||||||||||||||
Share class | Distribution services | Transfer agent services | CRMC administrative services | Transfer agent services | Commonwealth of Virginia administrative services | |||||||||||||||
Class A | $ | 18,434 | $ | 13,362 | Not applicable | Not applicable | Not applicable | |||||||||||||
Class B | 2,024 | 356 | Not applicable | Not applicable | Not applicable | |||||||||||||||
Class C | 4,723 | Included in administrative services | $ | 709 | $ | 155 | Not applicable | |||||||||||||
Class F-1 | 916 | 554 | 52 | Not applicable | ||||||||||||||||
Class F-2 | Not applicable | 197 | 8 | Not applicable | ||||||||||||||||
Class 529-A | 639 | 382 | 74 | $ | 307 | |||||||||||||||
Class 529-B | 263 | 33 | 11 | 26 | ||||||||||||||||
Class 529-C | 1,072 | 134 | 40 | 108 | ||||||||||||||||
Class 529-E | 88 | 22 | 4 | 18 | ||||||||||||||||
Class 529-F-1 | - | 33 | 6 | 26 | ||||||||||||||||
Class R-1 | 237 | 29 | 13 | Not applicable | ||||||||||||||||
Class R-2 | 2,853 | 570 | 1,084 | Not applicable | ||||||||||||||||
Class R-3 | 1,817 | 541 | 324 | Not applicable | ||||||||||||||||
Class R-4 | 671 | 399 | 14 | Not applicable | ||||||||||||||||
Class R-5 | Not applicable | 186 | 5 | Not applicable | ||||||||||||||||
Class R-6 | Not applicable | 119 | 2 | Not applicable | ||||||||||||||||
Total | $ | 33,737 | $ | 13,718 | $ | 3,908 | $ | 1,792 | $ | 485 |
Directors’ deferred compensation – Directors who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation of $576,000, shown on the accompanying financial statements, includes $204,000 in current fees (either paid in cash or deferred) and a net increase of $372,000 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.
7. | Capital share transactions |
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Sales(*) | Reinvestments of dividends and distributions | Repurchases(*) | Net increase (decrease) | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended March 31, 2011 | ||||||||||||||||||||||||||||||||
Class A | $ | 1,239,902 | 32,281 | $ | 203,806 | 5,292 | $ | (1,439,112 | ) | (37,464 | ) | $ | 4,596 | 109 | ||||||||||||||||||
Class B | 19,038 | 524 | 2,622 | 72 | (63,545 | ) | (1,748 | ) | (41,885 | ) | (1,152 | ) | ||||||||||||||||||||
Class C | 116,499 | 3,227 | 7,422 | 205 | (94,896 | ) | (2,632 | ) | 29,025 | 800 | ||||||||||||||||||||||
Class F-1 | 160,489 | 4,225 | 9,871 | 259 | (117,756 | ) | (3,088 | ) | 52,604 | 1,396 | ||||||||||||||||||||||
Class F-2 | 77,087 | 2,000 | 3,911 | 101 | (35,365 | ) | (920 | ) | 45,633 | 1,181 | ||||||||||||||||||||||
Class 529-A | 79,675 | 2,079 | 8,268 | 216 | (27,572 | ) | (721 | ) | 60,371 | 1,574 | ||||||||||||||||||||||
Class 529-B | 2,505 | 68 | 297 | 8 | (7,378 | ) | (201 | ) | (4,576 | ) | (125 | ) | ||||||||||||||||||||
Class 529-C | 28,348 | 767 | 1,536 | 42 | (12,147 | ) | (331 | ) | 17,737 | 478 | ||||||||||||||||||||||
Class 529-E | 4,802 | 127 | 393 | 10 | (1,614 | ) | (43 | ) | 3,581 | 94 | ||||||||||||||||||||||
Class 529-F-1 | 7,820 | 205 | 789 | 20 | (4,361 | ) | (114 | ) | 4,248 | 111 | ||||||||||||||||||||||
Class R-1 | 9,031 | 247 | 380 | 10 | (7,814 | ) | (212 | ) | 1,597 | 45 | ||||||||||||||||||||||
Class R-2 | 120,974 | 3,284 | 5,628 | 152 | (129,009 | ) | (3,499 | ) | (2,407 | ) | (63 | ) | ||||||||||||||||||||
Class R-3 | 143,193 | 3,811 | 8,344 | 221 | (133,223 | ) | (3,539 | ) | 18,314 | 493 | ||||||||||||||||||||||
Class R-4 | 105,894 | 2,768 | 7,564 | 198 | (82,519 | ) | (2,156 | ) | 30,939 | 810 | ||||||||||||||||||||||
Class R-5 | 75,853 | 1,964 | 6,301 | 162 | (62,022 | ) | (1,605 | ) | 20,132 | 521 | ||||||||||||||||||||||
Class R-6 | 97,478 | 2,535 | 7,857 | 204 | (17,904 | ) | (466 | ) | 87,431 | 2,273 | ||||||||||||||||||||||
Total net increase | ||||||||||||||||||||||||||||||||
(decrease) | $ | 2,288,588 | 60,112 | $ | 274,989 | 7,172 | $ | (2,236,237 | ) | (58,739 | ) | $ | 327,340 | 8,545 | ||||||||||||||||||
Year ended September 30, 2010 | ||||||||||||||||||||||||||||||||
Class A | $ | 1,831,865 | 56,548 | $ | 78,893 | 2,504 | $ | (2,553,407 | ) | (79,601 | ) | $ | (642,649 | ) | (20,549 | ) | ||||||||||||||||
Class B | 25,953 | 842 | - | - | (123,854 | ) | (4,048 | ) | (97,901 | ) | (3,206 | ) | ||||||||||||||||||||
Class C | 161,750 | 5,306 | 309 | 10 | (167,005 | ) | (5,525 | ) | (4,946 | ) | (209 | ) | ||||||||||||||||||||
Class F-1 | 239,017 | 7,411 | 3,785 | 121 | (229,350 | ) | (7,215 | ) | 13,452 | 317 | ||||||||||||||||||||||
Class F-2 | 98,591 | 3,047 | 1,549 | 49 | (47,932 | ) | (1,475 | ) | 52,208 | 1,621 | ||||||||||||||||||||||
Class 529-A | 91,398 | 2,844 | 3,020 | 97 | (48,681 | ) | (1,524 | ) | 45,737 | 1,417 | ||||||||||||||||||||||
Class 529-B | 2,502 | 80 | - | - | (10,279 | ) | (329 | ) | (7,777 | ) | (249 | ) | ||||||||||||||||||||
Class 529-C | 33,679 | 1,092 | - | - | (23,126 | ) | (754 | ) | 10,553 | 338 | ||||||||||||||||||||||
Class 529-E | 4,953 | 158 | 109 | 3 | (2,978 | ) | (94 | ) | 2,084 | 67 | ||||||||||||||||||||||
Class 529-F-1 | 10,907 | 341 | 331 | 11 | (6,404 | ) | (201 | ) | 4,834 | 151 | ||||||||||||||||||||||
Class R-1 | 14,676 | 471 | 34 | 1 | (14,029 | ) | (457 | ) | 681 | 15 | ||||||||||||||||||||||
Class R-2 | 202,425 | 6,515 | - | - | (201,145 | ) | (6,522 | ) | 1,280 | (7 | ) | |||||||||||||||||||||
Class R-3 | 224,770 | 7,101 | 2,559 | 83 | (195,218 | ) | (6,179 | ) | 32,111 | 1,005 | ||||||||||||||||||||||
Class R-4 | 170,724 | 5,318 | 3,239 | 103 | (137,357 | ) | (4,321 | ) | 36,606 | 1,100 | ||||||||||||||||||||||
Class R-5 | 111,984 | 3,427 | 2,744 | 86 | (78,067 | ) | (2,424 | ) | 36,661 | 1,089 | ||||||||||||||||||||||
Class R-6 | 106,396 | 3,341 | 3,351 | 107 | (77,684 | ) | (2,444 | ) | 32,063 | 1,004 | ||||||||||||||||||||||
Total net increase | ||||||||||||||||||||||||||||||||
(decrease) | $ | 3,331,590 | 103,842 | $ | 99,923 | 3,175 | $ | (3,916,516 | ) | (123,113 | ) | $ | (485,003 | ) | (16,096 | ) | ||||||||||||||||
* Includes exchanges between share classes of the fund. |
8. | Investment transactions |
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $4,429,553,000 and $4,100,475,000, respectively, during the six months ended March 31, 2011.
Financial highlights(1)
Income (loss) from investment operations(2) | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment (loss) income | Net gains (losses) on securities (both realized and unrealized) | Total from investment operations | Dividends (from net investment income) | Distributions (from capital gains) | Total dividends and distributions | Net asset value, end of period | Total return(3)(4) | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements/ waivers | Ratio of expenses to average net assets after reimbursements/ waivers(4) | Ratio of net (loss) income to average net assets(4) | |||||||||||||||||||||||||||||||||||||||||
Class A: | Six months ended 3/31/2011(5) | $ | 35.82 | $ | (.02 | ) | $ | 4.63 | $ | 4.61 | $ | (.52 | ) | $ | - | $ | (.52 | ) | $ | 39.91 | 12.93 | % | $ | 16,084 | 1.09 | %⁽⁶⁾ | 1.09 | %⁽⁶⁾ | (.11 | )%⁽⁶⁾ | |||||||||||||||||||||||
Year ended 9/30/2010 | 30.26 | .14 | 5.62 | 5.76 | (.20 | ) | - | (.20 | ) | 35.82 | 19.11 | 14,432 | 1.13 | 1.13 | .43 | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 28.46 | .19 | 1.61 | 1.80 | - | - | - | 30.26 | 6.32 | 12,814 | 1.25 | 1.24 | .82 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class B: | Six months ended 3/31/2011(5) | 33.87 | (.16 | ) | 4.39 | 4.23 | (.24 | ) | - | (.24 | ) | 37.86 | 12.51 | 400 | 1.86⁽⁶⁾ | 1.86⁽⁶⁾ | (.87 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 28.66 | (.11 | ) | 5.32 | 5.21 | - | - | - | 33.87 | 18.18 | 397 | 1.89 | 1.89 | (.37 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 27.16 | .01 | 1.49 | 1.50 | - | - | - | 28.66 | 5.52 | 428 | 2.02 | 2.00 | .06 | ||||||||||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||
Class C: | Six months ended 3/31/2011(5) | 33.61 | (.16 | ) | 4.35 | 4.19 | (.29 | ) | - | (.29 | ) | 37.51 | 12.50 | 996 | 1.86⁽⁶⁾ | 1.86⁽⁶⁾ | (.88 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 28.44 | (.10 | ) | 5.28 | 5.18 | (.01 | ) | - | (.01 | ) | 33.61 | 18.19 | 865 | 1.88 | 1.88 | (.32 | ) | ||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 26.93 | .03 | 1.48 | 1.51 | - | - | - | 28.44 | 5.64 | 738 | 1.94 | 1.92 | .13 | ||||||||||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||
Class F-1: | Six months ended 3/31/2011(5) | 35.53 | (.02 | ) | 4.58 | 4.56 | (.53 | ) | - | (.53 | ) | 39.56 | 12.90 | 784 | 1.09⁽⁶⁾ | 1.09⁽⁶⁾ | (.10 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 30.03 | .15 | 5.57 | 5.72 | (.22 | ) | - | (.22 | ) | 35.53 | 19.16 | 654 | 1.10 | 1.10 | .46 | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 28.21 | .21 | 1.61 | 1.82 | - | - | - | 30.03 | 6.45 | 543 | 1.14 | 1.13 | .94 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class F-2: | Six months ended 3/31/2011(5) | 35.93 | .03 | 4.65 | 4.68 | (.63 | ) | - | (.63 | ) | 39.98 | 13.09 | 320 | .82⁽⁶⁾ | .82⁽⁶⁾ | .16⁽⁶⁾ | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 30.39 | .25 | 5.63 | 5.88 | (.34 | ) | - | (.34 | ) | 35.93 | 19.46 | 246 | .81 | .81 | .78 | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 28.47 | .23 | 1.69 | 1.92 | - | - | - | 30.39 | 6.78 | 158 | .87 | .87 | .91 | ||||||||||||||||||||||||||||||||||||||||
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 3/31/2011(5) | 35.63 | (.03 | ) | 4.61 | 4.58 | (.52 | ) | - | (.52 | ) | 39.69 | 12.90 | 673 | 1.14⁽⁶⁾ | 1.14⁽⁶⁾ | (.16 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 30.13 | .13 | 5.58 | 5.71 | (.21 | ) | - | (.21 | ) | 35.63 | 19.06 | 548 | 1.16 | 1.16 | .41 | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 28.32 | .19 | 1.62 | 1.81 | - | - | - | 30.13 | 6.39 | 421 | 1.22 | 1.21 | .84 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class 529-B: | Six months ended 3/31/2011(5) | 34.23 | (.18 | ) | 4.43 | 4.25 | (.21 | ) | - | (.21 | ) | 38.27 | 12.42 | 53 | 1.94⁽⁶⁾ | 1.94⁽⁶⁾ | (.96 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 28.98 | (.13 | ) | 5.38 | 5.25 | - | - | - | 34.23 | 18.12 | 52 | 1.97 | 1.97 | (.44 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 27.47 | .01 | 1.50 | 1.51 | - | - | - | 28.98 | 5.50 | 51 | 2.05 | 2.03 | .02 | ||||||||||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||
Class 529-C: | Six months ended 3/31/2011(5) | 34.19 | (.17 | ) | 4.41 | 4.24 | (.26 | ) | - | (.26 | ) | 38.17 | 12.44 | 235 | 1.94⁽⁶⁾ | 1.94⁽⁶⁾ | (.96 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 28.94 | (.12 | ) | 5.37 | 5.25 | - | - | - | 34.19 | 18.10 | 194 | 1.97 | 1.97 | (.40 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 27.43 | .01 | 1.50 | 1.51 | - | - | - | 28.94 | 5.54 | 155 | 2.04 | 2.03 | .02 | ||||||||||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||
Class 529-E: | Six months ended 3/31/2011(5) | $ | 35.11 | $ | (.08 | ) | $ | 4.53 | $ | 4.45 | $ | (.42 | ) | $ | - | $ | (.42 | ) | $ | 39.14 | 12.73 | % | $ | 39 | 1.43 | ⁽⁶⁾ | 1.43 | ⁽⁶⁾ | (.45 | )⁽⁶⁾ | |||||||||||||||||||||||
Year ended 9/30/2010 | 29.70 | .04 | 5.50 | 5.54 | (.13 | ) | - | (.13 | ) | 35.11 | 18.71 | 31 | 1.46 | 1.46 | .11 | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 28.00 | .12 | 1.58 | 1.70 | - | - | - | 29.70 | 6.07 | 25 | 1.52 | 1.51 | .54 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class 529-F-1: | Six months ended 3/31/2011(5) | 35.72 | .01 | 4.61 | 4.62 | (.58 | ) | - | (.58 | ) | 39.76 | 13.00 | 57 | .93⁽⁶⁾ | .93⁽⁶⁾ | .05⁽⁶⁾ | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 30.20 | .20 | 5.59 | 5.79 | (.27 | ) | - | (.27 | ) | 35.72 | 19.31 | 47 | .95 | .95 | .62 | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 28.33 | .24 | 1.63 | 1.87 | - | - | - | 30.20 | 6.60 | 35 | 1.02 | 1.01 | 1.04 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-1: | Six months ended 3/31/2011(5) | 34.32 | (.16 | ) | 4.43 | 4.27 | (.29 | ) | - | (.29 | ) | 38.30 | 12.49 | 50 | 1.84⁽⁶⁾ | 1.84⁽⁶⁾ | (.86 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 29.05 | (.09 | ) | 5.39 | 5.30 | (.03 | ) | - | (.03 | ) | 34.32 | 18.25 | 43 | 1.87 | 1.87 | (.30 | ) | ||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 27.51 | .02 | 1.52 | 1.54 | - | - | - | 29.05 | 5.60 | 36 | 1.94 | 1.93 | .11 | ||||||||||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||
Class R-2: | Six months ended 3/31/2011(5) | 34.30 | (.16 | ) | 4.44 | 4.28 | (.27 | ) | - | (.27 | ) | 38.31 | 12.47 | 793 | 1.85⁽⁶⁾ | 1.85⁽⁶⁾ | (.87 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 29.03 | (.11 | ) | 5.38 | 5.27 | - | - | - | 34.30 | 18.19 | 712 | 1.93 | 1.93 | (.37 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 27.55 | (.02 | ) | 1.50 | 1.48 | - | - | - | 29.03 | 5.37 | 603 | 2.15 | 2.14 | (.09 | ) | ||||||||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||
Class R-3: | Six months ended 3/31/2011(5) | 35.03 | (.08 | ) | 4.53 | 4.45 | (.43 | ) | - | (.43 | ) | 39.05 | 12.74 | 762 | 1.41⁽⁶⁾ | 1.41⁽⁶⁾ | (.43 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 29.64 | .04 | 5.49 | 5.53 | (.14 | ) | - | (.14 | ) | 35.03 | 18.71 | 667 | 1.44 | 1.44 | .13 | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 27.94 | .12 | 1.58 | 1.70 | - | - | - | 29.64 | 6.05 | 534 | 1.53 | 1.51 | .53 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-4: | Six months ended 3/31/2011(5) | 35.60 | (.02 | ) | 4.61 | 4.59 | (.54 | ) | - | (.54 | ) | 39.65 | 12.94 | 573 | 1.08⁽⁶⁾ | 1.08⁽⁶⁾ | (.10 | )⁽⁶⁾ | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 30.12 | .15 | 5.58 | 5.73 | (.25 | ) | - | (.25 | ) | 35.60 | 19.15 | 486 | 1.09 | 1.09 | .48 | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 28.29 | .20 | 1.63 | 1.83 | - | - | - | 30.12 | 6.47 | 378 | 1.14 | 1.13 | .88 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-5: | Six months ended 3/31/2011(5) | 36.21 | .04 | 4.68 | 4.72 | (.64 | ) | - | (.64 | ) | 40.29 | 13.09 | 407 | .77⁽⁶⁾ | .77⁽⁶⁾ | .21⁽⁶⁾ | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 30.60 | .26 | 5.66 | 5.92 | (.31 | ) | - | (.31 | ) | 36.21 | 19.50 | 347 | .78 | .78 | .79 | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2009 | 28.64 | .28 | 1.68 | 1.96 | - | - | - | 30.60 | 6.84 | 260 | .82 | .80 | 1.26 | ||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-6: | Six months ended 3/31/2011(5) | 35.89 | .05 | 4.63 | 4.68 | (.65 | ) | - | (.65 | ) | 39.92 | 13.12 | 548 | .73⁽⁶⁾ | .73⁽⁶⁾ | .26⁽⁶⁾ | |||||||||||||||||||||||||||||||||||||
Year ended 9/30/2010 | 30.31 | .27 | 5.62 | 5.89 | (.31 | ) | - | (.31 | ) | 35.89 | 19.57 | 411 | .73 | .73 | .84 | ||||||||||||||||||||||||||||||||||||||
Period from 5/1/2009 to 9/30/2009 | 22.33 | .13 | 7.85 | 7.98 | - | - | - | 30.31 | 35.74 | 317 | .33 | .33 | .51 |
Six months ended March 31, | Year ended September 30 | |||||||||||||||||||||||
2011(5) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 22 | % | 45 | % | 56 | % | 50 | % | 48 | % | 45 | % |
(1)Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year. | |||||||||||||
(2)Based on average shares outstanding. | |||||||||||||
(3)Total returns exclude any applicable sales charges, including contingent deferred sales charges. | |||||||||||||
(4)This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes. | |||||||||||||
(5)Unaudited. | |||||||||||||
(6)Annualized. | |||||||||||||
See Notes to Financial Statements |
Expense example
unaudited
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (October 1, 2010, through March 31, 2011).
Actual expenses:
The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
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 10/1/2010 | Ending account value 3/31/2011 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A -- actual return | $ | 1,000.00 | $ | 1,129.25 | $ | 5.79 | 1.09 | % | ||||||||
Class A -- assumed 5% return | 1,000.00 | 1,019.50 | 5.49 | 1.09 | ||||||||||||
Class B -- actual return | 1,000.00 | 1,125.09 | 9.85 | 1.86 | ||||||||||||
Class B -- assumed 5% return | 1,000.00 | 1,015.66 | 9.35 | 1.86 | ||||||||||||
Class C -- actual return | 1,000.00 | 1,125.00 | 9.85 | 1.86 | ||||||||||||
Class C -- assumed 5% return | 1,000.00 | 1,015.66 | 9.35 | 1.86 | ||||||||||||
Class F-1 -- actual return | 1,000.00 | 1,129.00 | 5.79 | 1.09 | ||||||||||||
Class F-1 -- assumed 5% return | 1,000.00 | 1,019.50 | 5.49 | 1.09 | ||||||||||||
Class F-2 -- actual return | 1,000.00 | 1,130.87 | 4.36 | .82 | ||||||||||||
Class F-2 -- assumed 5% return | 1,000.00 | 1,020.84 | 4.13 | .82 | ||||||||||||
Class 529-A -- actual return | 1,000.00 | 1,129.02 | 6.05 | 1.14 | ||||||||||||
Class 529-A -- assumed 5% return | 1,000.00 | 1,019.25 | 5.74 | 1.14 | ||||||||||||
Class 529-B -- actual return | 1,000.00 | 1,124.22 | 10.27 | 1.94 | ||||||||||||
Class 529-B -- assumed 5% return | 1,000.00 | 1,015.26 | 9.75 | 1.94 | ||||||||||||
Class 529-C -- actual return | 1,000.00 | 1,124.41 | 10.28 | 1.94 | ||||||||||||
Class 529-C -- assumed 5% return | 1,000.00 | 1,015.26 | 9.75 | 1.94 | ||||||||||||
Class 529-E -- actual return | 1,000.00 | 1,127.27 | 7.58 | 1.43 | ||||||||||||
Class 529-E -- assumed 5% return | 1,000.00 | 1,017.80 | 7.19 | 1.43 | ||||||||||||
Class 529-F-1 -- actual return | 1,000.00 | 1,130.02 | 4.94 | .93 | ||||||||||||
Class 529-F-1 -- assumed 5% return | 1,000.00 | 1,020.29 | 4.68 | .93 | ||||||||||||
Class R-1 -- actual return | 1,000.00 | 1,124.87 | 9.75 | 1.84 | ||||||||||||
Class R-1 -- assumed 5% return | 1,000.00 | 1,015.76 | 9.25 | 1.84 | ||||||||||||
Class R-2 -- actual return | 1,000.00 | 1,124.70 | 9.80 | 1.85 | ||||||||||||
Class R-2 -- assumed 5% return | 1,000.00 | 1,015.71 | 9.30 | 1.85 | ||||||||||||
Class R-3 -- actual return | 1,000.00 | 1,127.37 | 7.48 | 1.41 | ||||||||||||
Class R-3 -- assumed 5% return | 1,000.00 | 1,017.90 | 7.09 | 1.41 | ||||||||||||
Class R-4 -- actual return | 1,000.00 | 1,129.43 | 5.73 | 1.08 | ||||||||||||
Class R-4 -- assumed 5% return | 1,000.00 | 1,019.55 | 5.44 | 1.08 | ||||||||||||
Class R-5 -- actual return | 1,000.00 | 1,130.94 | 4.09 | .77 | ||||||||||||
Class R-5 -- assumed 5% return | 1,000.00 | 1,021.09 | 3.88 | .77 | ||||||||||||
Class R-6 -- actual return | 1,000.00 | 1,131.21 | 3.88 | .73 | ||||||||||||
Class R-6 -- assumed 5% return | 1,000.00 | 1,021.29 | 3.68 | .73 | ||||||||||||
*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period). |
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, 2011: | ||||||||||||
10 years1/ | ||||||||||||
1 year | 5 years | Life of class | ||||||||||
Class B shares2 | ||||||||||||
Reflecting applicable contingent deferred sales charge | ||||||||||||
(CDSC), maximum of 5%, payable only if shares | ||||||||||||
are sold within six years of purchase | 14.16 | % | 3.92 | % | 8.22 | % | ||||||
Not reflecting CDSC | 19.16 | 4.25 | 8.22 | |||||||||
Class C shares | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
if shares are sold within one year of purchase | 18.17 | 4.25 | 8.02 | |||||||||
Not reflecting CDSC | 19.17 | 4.25 | 8.02 | |||||||||
Class F-1 shares3 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | 20.06 | 5.08 | 8.88 | |||||||||
Class F-2 shares3 — first sold 8/1/08 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | 20.40 | — | 7.76 | |||||||||
Class 529-A shares4 — first sold 2/19/02 | ||||||||||||
Reflecting 5.75% maximum sales charge | 13.12 | 3.79 | 9.53 | |||||||||
Not reflecting maximum sales charge | 20.01 | 5.03 | 10.24 | |||||||||
Class 529-B shares2,4 — first sold 2/20/02 | ||||||||||||
Reflecting applicable CDSC, maximum of 5%, payable | ||||||||||||
only if shares are sold within six years of purchase | 14.03 | 3.83 | 9.33 | |||||||||
Not reflecting CDSC | 19.03 | 4.16 | 9.33 | |||||||||
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 | 18.06 | 4.17 | 9.24 | |||||||||
Not reflecting CDSC | 19.06 | 4.17 | 9.24 | |||||||||
Class 529-E shares3,4 — first sold 3/15/02 | 19.65 | 4.70 | 9.13 | |||||||||
Class 529-F-1 shares3,4 — first sold 9/17/02 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | 20.27 | 5.22 | 13.35 |
1Applicable to Classes B, C and F-1 shares only. All other share classes reflect results for the life of the class. |
2These shares are not available for purchase. |
3These shares are sold without any initial or contingent deferred sales charge. |
4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee. |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 28 to 33 for details that include expense ratios for all share classes.
For information regarding the differences among the various share classes, refer to the fund’s prospectus.
Offices
Offices of the fund and of the investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
6455 Irvine Center Drive
Irvine, CA 92618
Transfer agent for shareholder accounts
American Funds Service Company
(Write to the address near you.)
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Counsel
K&L Gates LLP
Four Embarcadero Center, Suite 1200
San Francisco, CA 94111-5994
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 and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
A complete March 31, 2011, 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 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 or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after June 30, 2011, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
What makes American Funds different?
For 80 years, we have followed a consistent philosophy to benefit our investors. Our 33 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 more than 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 27 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 funds |
American Balanced Fund® |
American Funds Global Balanced FundSM |
•Bond funds |
American Funds Mortgage FundSM |
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 Funds Short-Term Tax-Exempt Bond FundSM |
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 |
American Funds Tax-Exempt Fund of New YorkSM |
The Tax-Exempt Fund of California® |
The Tax-Exempt Fund of Maryland® |
The Tax-Exempt Fund of Virginia® |
•Money market fund |
American Funds Money Market Fund® |
•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-935-0511P
Litho in USA BBC/ALD/8094-S26155
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
SMALLCAP World Fund®
Investment portfolio
March 31, 2011
unaudited
Common stocks — 93.18% | Shares | Value (000) | ||||||
CONSUMER DISCRETIONARY — 15.48% | ||||||||
lululemon athletica inc.1 | 2,261,414 | $ | 201,379 | |||||
Virgin Media Inc. | 5,062,500 | 140,687 | ||||||
CTC Media, Inc. | 5,125,000 | 120,796 | ||||||
Chipotle Mexican Grill, Inc.1 | 393,000 | 107,041 | ||||||
PT Sumber Alfaria Trijaya Tbk2 | 274,541,000 | 86,705 | ||||||
Delticom AG2 | 898,203 | 81,277 | ||||||
Minth Group Ltd. | 44,714,000 | 74,959 | ||||||
CarMax, Inc.1 | 2,257,000 | 72,450 | ||||||
Jumbo SA2 | 9,249,878 | 71,575 | ||||||
Modern Times Group MTG AB, Class B | 913,000 | 69,431 | ||||||
Mr Price Group Ltd. | 7,486,480 | 67,782 | ||||||
John Wiley & Sons, Inc., Class A | 1,330,983 | 67,667 | ||||||
Liberty Media Corp., Series A1 | 800,000 | 62,080 | ||||||
Tiffany & Co. | 947,000 | 58,184 | ||||||
Lions Gate Entertainment Corp.1,2 | 9,100,000 | 56,875 | ||||||
Brunswick Corp. | 2,222,600 | 56,521 | ||||||
Melco Crown Entertainment Ltd. (ADR)1 | 7,225,000 | 54,910 | ||||||
Ekornes ASA2 | 2,019,750 | 54,052 | ||||||
Pantaloon Retail (India) Ltd. | 8,524,816 | 49,453 | ||||||
Pantaloon Retail (India) Ltd., Class B | 551,250 | 2,224 | ||||||
Mekonomen AB | 1,333,068 | 50,688 | ||||||
Stella International Holdings Ltd. | 22,732,500 | 50,675 | ||||||
SuperGroup PLC1 | 2,137,500 | 49,995 | ||||||
ASOS PLC1 | 1,806,305 | 49,492 | ||||||
AutoNation, Inc.1 | 1,375,000 | 48,634 | ||||||
Tractor Supply Co. | 737,800 | 44,165 | ||||||
TOD’S SpA | 367,000 | 43,247 | ||||||
Mando Corp. | 256,000 | 40,490 | ||||||
Cox and Kings (India) Ltd.2 | 4,063,950 | 37,691 | ||||||
Cox and Kings (India) Ltd. (GDR)2,3 | 165,000 | 1,530 | ||||||
Paddy Power PLC | 858,266 | 37,585 | ||||||
Hankook Tire Co., Ltd. | 1,106,840 | 36,173 | ||||||
Navitas Ltd. | 8,125,000 | 35,970 | ||||||
Capella Education Co.1 | 719,000 | 35,799 | ||||||
DreamWorks Animation SKG, Inc., Class A1 | 1,236,000 | 34,522 | ||||||
Blue Nile, Inc.1 | 629,140 | 33,967 | ||||||
Great Wall Motor Co. Ltd., Class H | 18,277,000 | 33,788 | ||||||
Clicks Group Ltd. | 5,325,000 | 33,501 | ||||||
Domino’s Pizza UK & IRL PLC | 4,826,500 | 33,131 | ||||||
Williams-Sonoma, Inc. | 793,000 | 32,117 | ||||||
Boyd Gaming Corp.1 | 3,349,000 | 31,380 | ||||||
CFAO | 832,000 | 31,229 | ||||||
Rightmove PLC | 2,038,594 | 31,068 | ||||||
New Oriental Education & Technology Group Inc. (ADR)1 | 295,000 | 29,521 | ||||||
CJ CGV Co., Ltd.2 | 1,235,000 | 29,160 | ||||||
Harman International Industries, Inc. | 600,000 | 28,092 | ||||||
WMS Industries Inc.1 | 782,000 | 27,644 | ||||||
GEOX SpA | 4,346,080 | 27,347 | ||||||
Scholastic Corp. | 1,000,000 | 27,040 | ||||||
Mood Media Corp.1,2,4 | 6,375,000 | 19,661 | ||||||
Mood Media Corp. (CDI)1,2,4 | 2,375,000 | 7,325 | ||||||
Jubilant FoodWorks Ltd.1 | 2,220,098 | 26,841 | ||||||
Golden Eagle Retail Group Ltd. | 11,982,000 | 25,848 | ||||||
Domino’s Pizza Enterprises Ltd.2 | 4,002,300 | 25,667 | ||||||
Sotheby’s Holdings, Inc. | 475,000 | 24,985 | ||||||
Dollarama Inc.1 | 800,000 | 24,524 | ||||||
Leggett & Platt, Inc. | 990,000 | 24,255 | ||||||
HUGO BOSS AG | 283,000 | 23,663 | ||||||
Halfords Group PLC | 4,200,000 | 23,460 | ||||||
ValueVision Media, Inc., Class A1,2 | 3,686,093 | 23,444 | ||||||
TAKKT AG | 1,456,778 | 23,226 | ||||||
Timberland Co., Class A1 | 544,110 | 22,466 | ||||||
Tesla Motors, Inc.1 | 797,200 | 22,082 | ||||||
Aristocrat Leisure Ltd. | 6,350,000 | 21,346 | ||||||
Tupperware Brands Corp. | 350,000 | 20,898 | ||||||
Signet Jewelers Ltd.1 | 450,000 | 20,709 | ||||||
Café de Coral Holdings Ltd. | 8,758,000 | 20,469 | ||||||
Urban Outfitters, Inc.1 | 675,000 | 20,135 | ||||||
Megastudy Co., Ltd. | 125,531 | 19,328 | ||||||
CDON Group AB1,2 | 3,555,515 | 19,265 | ||||||
K12 Inc.1 | 560,000 | 18,872 | ||||||
Lojas Renner SA, ordinary nominative | 580,000 | 18,789 | ||||||
REXLot Holdings Ltd. | 165,000,000 | 18,242 | ||||||
Shopper’s Stop Ltd. | 2,340,000 | 18,108 | ||||||
SAF-HOLLAND SA, non-registered shares1 | 1,655,600 | 18,067 | ||||||
HT Media Ltd. | 5,385,000 | 18,047 | ||||||
Shimano Inc. | 350,700 | 17,518 | ||||||
Group 1 Automotive, Inc. | 400,000 | 17,120 | ||||||
Billabong International Ltd. | 2,148,631 | 16,780 | ||||||
Parkson Retail Group Ltd. | 11,990,500 | 16,494 | ||||||
Parkson Holdings Bhd. | 8,390,322 | 15,790 | ||||||
Schibsted ASA | 535,000 | 15,701 | ||||||
Strayer Education, Inc. | 119,200 | 15,554 | ||||||
Fourlis | 1,810,000 | 15,391 | ||||||
Fielmann AG | 157,500 | 14,877 | ||||||
Youngone Corp. | 1,555,000 | 14,743 | ||||||
P.F. Chang’s China Bistro, Inc. | 300,000 | 13,857 | ||||||
Headlam Group PLC | 2,809,685 | 13,511 | ||||||
Sky-mobi Ltd. (ADR)1 | 1,080,610 | 13,291 | ||||||
Ocado Group PLC1 | 3,185,708 | 11,652 | ||||||
RadioShack Corp. | 775,000 | 11,633 | ||||||
Bloomsbury Publishing PLC2 | 5,405,000 | 11,272 | ||||||
National American University Holdings, Inc.2 | 1,515,000 | 10,741 | ||||||
United Auto Group, Inc.1 | 529,554 | 10,602 | ||||||
Education Management Corp.1 | 468,800 | 9,817 | ||||||
Trinity Ltd. | 10,467,900 | 9,730 | ||||||
D.B. Corp Ltd. | 1,720,000 | 9,642 | ||||||
J D Wetherspoon PLC1 | 1,375,000 | 9,364 | ||||||
Gourmet Master Co., Ltd.1 | 1,139,000 | 8,870 | ||||||
Intercontinental Hotels Group PLC | 430,678 | 8,830 | ||||||
Little Sheep Group Ltd., Class H | 11,996,000 | 7,973 | ||||||
Bijou Brigitte modische Accessoires AG | 52,000 | 7,244 | ||||||
Masterskill Education Group Bhd. | 11,383,000 | 7,216 | ||||||
Praktiker Bau- und Heimwerkermärkte Holding AG | 605,280 | 7,137 | ||||||
Toll Corp.1 | 300,000 | 5,931 | ||||||
Cinema City International NV1 | 400,000 | 5,353 | ||||||
Corinthian Colleges, Inc.1 | 1,134,800 | 5,016 | ||||||
Dixons Retail PLC1 | 24,553,542 | 4,951 | ||||||
Cheil Worldwide Inc. | 250,000 | 3,305 | ||||||
GVC Holdings PLC | 1,392,400 | 2,881 | ||||||
DO & CO Restaurants & Catering AG | 65,000 | 2,715 | ||||||
PRIMEDIA Inc. | 41,940 | 204 | ||||||
Ten Alps PLC1 | 3,439,001 | 172 | ||||||
Five Star Travel Corp.1,3,5 | 96,033 | 25 | ||||||
CEC Unet PLC1,2,3 | 35,100,775 | — | ||||||
Spot Runner, Inc.1,3,5 | 2,980,544 | — | ||||||
Fontainebleau Resorts LLC, Class A, nonvoting units1,3,5 | 1,900,000 | — | ||||||
3,524,314 | ||||||||
INFORMATION TECHNOLOGY — 14.52% | ||||||||
AAC Acoustic Technologies Holdings Inc.2 | 70,007,000 | 189,000 | ||||||
Kingboard Chemical Holdings Ltd. | 32,356,200 | 170,130 | ||||||
Compuware Corp.1,2 | 11,770,000 | 135,944 | ||||||
SINA Corp.1 | 1,142,000 | 122,240 | ||||||
National Instruments Corp. | 3,686,479 | 120,806 | ||||||
Hittite Microwave Corp.1,2 | 1,884,500 | 120,175 | ||||||
Monster Worldwide, Inc.1 | 6,091,000 | 96,847 | ||||||
FactSet Research Systems, Inc. | 670,000 | 70,169 | ||||||
AVEVA Group PLC | 2,627,500 | 68,073 | ||||||
Digital River, Inc.1 | 1,791,000 | 67,037 | ||||||
eAccess Ltd. | 114,800 | 63,072 | ||||||
Kingdee International Software Group Co. Ltd. | 96,542,000 | 60,567 | ||||||
Vistaprint NV1 | 1,115,000 | 57,869 | ||||||
Kingboard Laminates Holdings Ltd. | 67,009,736 | 55,909 | ||||||
OpenTable, Inc.1 | 504,400 | 53,643 | ||||||
AOL Inc.1 | 2,585,000 | 50,485 | ||||||
Kapsch TrafficCom AG | 548,989 | 48,627 | ||||||
VTech Holdings Ltd. | 4,279,000 | 48,547 | ||||||
China High Precision Automation Group Ltd.2 | 62,870,000 | 45,504 | ||||||
MICROS Systems, Inc.1 | 919,000 | 45,426 | ||||||
Avid Technology, Inc.1,2 | 2,028,844 | 45,243 | ||||||
Hana Microelectronics PCL2 | 53,925,000 | 42,791 | ||||||
Microchip Technology Inc. | 1,100,000 | 41,811 | ||||||
Dialog Semiconductor PLC1 | 1,997,300 | 41,454 | ||||||
GSI Commerce, Inc.1 | 1,400,000 | 40,978 | ||||||
Global Payments Inc. | 800,000 | 39,136 | ||||||
centrotherm photovoltaics AG1 | 649,938 | 38,538 | ||||||
FormFactor, Inc.1,2 | 3,715,000 | 38,264 | ||||||
Limelight Networks, Inc.1 | 5,278,700 | 37,795 | ||||||
Fidessa group PLC | 1,295,000 | 36,355 | ||||||
Rovi Corp.1 | 676,100 | 36,273 | ||||||
Neopost SA | 412,691 | 36,151 | ||||||
Tripod Technology Corp. | 7,980,000 | 35,142 | ||||||
Cirrus Logic, Inc.1 | 1,629,668 | 34,272 | ||||||
Semtech Corp.1 | 1,320,000 | 33,026 | ||||||
Trimble Navigation Ltd.1 | 650,000 | 32,851 | ||||||
China Wireless Technologies Ltd. | 86,300,000 | 32,285 | ||||||
MKS Instruments, Inc. | 965,000 | 32,134 | ||||||
RichTek Technology Corp. | 4,605,000 | 31,868 | ||||||
Quantum Corp.1,2 | 12,568,897 | 31,674 | ||||||
Akamai Technologies, Inc.1 | 827,000 | 31,426 | ||||||
LoopNet, Inc.1,2 | 2,214,640 | 31,337 | ||||||
Autodesk, Inc.1 | 705,000 | 31,098 | ||||||
Renesas Electronics Corp.1 | 3,650,000 | 31,068 | ||||||
Halma PLC | 5,365,000 | 30,166 | ||||||
Delta Electronics (Thailand) PCL | 33,935,900 | 30,014 | ||||||
RealPage, Inc.1 | 1,044,000 | 28,950 | ||||||
ULVAC, Inc. | 1,175,000 | 27,743 | ||||||
Genpact Ltd.1 | 1,905,387 | 27,590 | ||||||
Novellus Systems, Inc.1 | 736,000 | 27,328 | ||||||
Ralink Technology Corp. | 8,465,700 | 27,061 | ||||||
Heartland Payment Systems, Inc. | 1,423,949 | 24,962 | ||||||
Wistron Corp. | 15,438,752 | 24,466 | ||||||
Red Hat, Inc.1 | 531,145 | 24,109 | ||||||
DTS, Inc.1 | 503,900 | 23,497 | ||||||
Net 1 UEPS Technologies, Inc.1,2 | 2,639,330 | 22,698 | ||||||
Infotech Enterprises Ltd.2 | 6,000,000 | 21,763 | ||||||
Jabil Circuit, Inc. | 1,044,000 | 21,329 | ||||||
Wintek Corp.1 | 11,500,000 | 20,375 | ||||||
Littelfuse, Inc. | 350,000 | 19,985 | ||||||
OnMobile Global Ltd.1,2 | 3,592,055 | 19,533 | ||||||
OBIC Co., Ltd. | 102,830 | 19,508 | ||||||
Yaskawa Electric Corp. | 1,500,000 | 17,781 | ||||||
Youku.com Inc., Class A (ADR)1 | 371,000 | 17,626 | ||||||
Playtech Ltd. | 3,187,000 | 17,587 | ||||||
Immersion Corp.1,2 | 2,254,000 | 17,221 | ||||||
Lender Processing Services, Inc. | 528,000 | 16,996 | ||||||
Camelot Information Systems Inc. (ADR)1 | 1,008,000 | 16,723 | ||||||
KLA-Tencor Corp. | 340,650 | 16,137 | ||||||
Comverse Technology, Inc.1 | 2,050,000 | 15,395 | ||||||
Spectris PLC | 680,000 | 14,868 | ||||||
Ultimate Software Group, Inc.1 | 250,000 | 14,687 | ||||||
THQ Inc.1 | 2,738,033 | 12,485 | ||||||
Terremark Worldwide, Inc.1 | 641,016 | 12,179 | ||||||
SemiLEDS Corp.1 | 759,150 | 11,949 | ||||||
Envestnet, Inc.1 | 875,000 | 11,760 | ||||||
SEEK Ltd. | 1,657,173 | 11,587 | ||||||
SuccessFactors, Inc.1 | 292,500 | 11,434 | ||||||
Green Packet Bhd.1,2,4 | 29,583,116 | 6,398 | ||||||
Green Packet Bhd.1,2 | 23,016,100 | 4,977 | ||||||
Dolby Laboratories, Inc., Class A1 | 218,400 | 10,747 | ||||||
Liquidity Services, Inc.1 | 598,170 | 10,683 | ||||||
Cadence Design Systems, Inc.1 | 735,504 | 7,171 | ||||||
Global Unichip Corp. | 2,204,307 | 7,009 | ||||||
PixArt Imaging Inc. | 1,550,000 | 6,378 | ||||||
Sterlite Technologies Ltd. | 4,803,401 | 6,307 | ||||||
Redington (India) Ltd. | 2,498,255 | 4,484 | ||||||
Oakton Ltd. | 1,520,000 | 3,616 | ||||||
Trony Solar Holdings Co. Ltd.1 | 4,952,000 | 3,228 | ||||||
Ubisoft Entertainment SA1 | 285,000 | 2,912 | ||||||
Maxlinear, Inc., Class A1 | 149,400 | 1,221 | ||||||
HSW International, Inc.1 | 81,521 | 258 | ||||||
HSW International, Inc.1,3,5 | 29,470 | 67 | ||||||
Cognex Corp. | 3,700 | 105 | ||||||
3,306,093 | ||||||||
INDUSTRIALS — 14.25% | ||||||||
MSC Industrial Direct Co., Inc., Class A | 2,338,500 | 160,117 | ||||||
Container Corp. of India Ltd. | 4,542,191 | 122,230 | ||||||
Jain Irrigation Systems Ltd.2 | 23,537,564 | 94,425 | ||||||
Corrections Corporation of America1 | 3,695,300 | 90,165 | ||||||
MTU Aero Engines Holding AG | 1,323,100 | 89,723 | ||||||
Intertek Group PLC | 2,702,000 | 88,165 | ||||||
Meyer Burger Technology AG1 | 1,916,576 | 86,491 | ||||||
IDEX Corp. | 1,885,000 | 82,280 | ||||||
Michael Page International PLC | 9,727,502 | 80,209 | ||||||
Herman Miller, Inc. | 2,800,000 | 76,972 | ||||||
SIA Engineering Co. Ltd. | 20,776,000 | 66,753 | ||||||
Mobile Mini, Inc.1,2 | 2,761,600 | 66,334 | ||||||
Pipavav Shipyard Ltd.1,2 | 34,925,000 | 61,752 | ||||||
BELIMO Holding AG1 | 27,578 | 60,020 | ||||||
Meggitt PLC | 10,612,081 | 58,375 | ||||||
AirAsia Bhd.1 | 64,000,000 | 56,842 | ||||||
Northgate PLC1,2 | 10,626,805 | 54,245 | ||||||
OSG Corp. | 3,760,000 | 54,244 | ||||||
Johnson Electric Holdings Ltd. | 87,119,500 | 51,072 | ||||||
Nabtesco Corp. | 1,850,000 | 46,528 | ||||||
Goodpack Ltd.2 | 30,060,000 | 46,264 | ||||||
Watsco, Inc. | 653,500 | 45,555 | ||||||
Uponor Oyj | 2,521,600 | 42,991 | ||||||
Exponent, Inc.1,2 | 936,400 | 41,773 | ||||||
PT Sarana Menara Nusantara Tbk1 | 34,850,000 | 40,023 | ||||||
MITIE Group PLC | 12,509,000 | 39,432 | ||||||
Heidelberger Druckmaschinen AG, non-registered shares1 | 7,517,000 | 35,571 | ||||||
Beacon Roofing Supply, Inc.1 | 1,710,000 | 35,004 | ||||||
Chemring Group PLC | 3,090,082 | 34,278 | ||||||
Graco Inc. | 725,000 | 32,980 | ||||||
Regus PLC | 17,206,004 | 31,715 | ||||||
Serco Group PLC | 3,490,000 | 31,241 | ||||||
AMR Corp.1 | 4,800,000 | 31,008 | ||||||
TrueBlue, Inc.1 | 1,843,100 | 30,946 | ||||||
Amtek Engineering Ltd.1,2 | 30,199,000 | 30,427 | ||||||
Singapore Post Private Ltd. | 32,395,000 | 29,812 | ||||||
Ennis, Inc.2 | 1,733,692 | 29,525 | ||||||
THK Co., Ltd. | 1,100,000 | 27,665 | ||||||
Société BIC SA | 308,000 | 27,377 | ||||||
Andritz AG | 293,600 | 27,375 | ||||||
Comfort Systems USA, Inc.2 | 1,905,000 | 26,803 | ||||||
Ritchie Bros. Auctioneers Inc. | 950,000 | 26,742 | ||||||
Interline Brands, Inc.1 | 1,300,000 | 26,520 | ||||||
Austal Ltd. | 8,200,000 | 25,784 | ||||||
Frigoglass SAIC | 1,607,833 | 25,771 | ||||||
Zumtobel AG | 740,000 | 25,285 | ||||||
easyJet PLC1 | 4,489,100 | 24,550 | ||||||
Houston Wire & Cable Co.2 | 1,678,900 | 24,546 | ||||||
Ellaktor SA | 5,451,818 | 23,952 | ||||||
Landstar System, Inc. | 515,700 | 23,557 | ||||||
BrisConnections Unit Trusts1,2 | 27,300,000 | 22,873 | ||||||
Robert Half International Inc. | 745,000 | 22,797 | ||||||
Tiger Airways Holdings Ltd.1 | 19,500,000 | 22,432 | ||||||
Flughafen Wien AG, non-registered shares | 352,700 | 22,368 | ||||||
Implenia AG1 | 655,000 | 22,035 | ||||||
Steelcase Inc., Class A | 1,900,000 | 21,622 | ||||||
AeroVironment, Inc.1 | 600,000 | 20,982 | ||||||
China Automation Group Ltd. | 27,000,000 | 20,965 | ||||||
WABCO Holdings Inc.1 | 340,000 | 20,958 | ||||||
Wavin NV1 | 1,355,058 | 20,932 | ||||||
Dalian Port (PDA) Co. Ltd., Class H | 50,604,000 | 20,232 | ||||||
United Stationers Inc. | 278,000 | 19,752 | ||||||
Globaltrans Investment PLC (GDR) | 1,070,000 | 19,677 | ||||||
Corporate Executive Board Co. | 465,000 | 18,772 | ||||||
Standard Parking Corp.1,2 | 1,048,600 | 18,623 | ||||||
AIA Engineering Ltd. | 2,301,093 | 17,975 | ||||||
Wienerberger AG1 | 868,000 | 17,492 | ||||||
Mine Safety Appliances Co. | 474,300 | 17,393 | ||||||
Polypore International, Inc.1 | 300,000 | 17,274 | ||||||
TransDigm Group Inc.1 | 203,000 | 17,017 | ||||||
Douglas Dynamics, Inc.2 | 1,175,000 | 16,755 | ||||||
G&K Services, Inc., Class A | 503,600 | 16,745 | ||||||
School Specialty, Inc.1,2 | 1,153,240 | 16,491 | ||||||
KBR, Inc. | 435,000 | 16,430 | ||||||
United Continental Holdings, Inc.1 | 714,000 | 16,415 | ||||||
SAI Global Ltd. | 3,158,843 | 16,369 | ||||||
Knight Transportation, Inc. | 848,000 | 16,324 | ||||||
S1 Corp. | 314,000 | 16,116 | ||||||
Geberit AG | 74,000 | 16,113 | ||||||
Hays PLC | 7,755,000 | 14,468 | ||||||
Vossloh AG | 100,000 | 13,377 | ||||||
Westport Innovations Inc.1 | 600,000 | 13,188 | ||||||
OJSC Center for Cargo Container Traffic TransContainer (GDR)1 | 1,230,000 | 12,915 | ||||||
EACOM Timber Corp.1,2,4 | 23,000,000 | 12,336 | ||||||
Cpl Resources PLC2 | 2,975,986 | 11,809 | ||||||
Seco Tools AB, Class B1 | 650,000 | 11,534 | ||||||
DCC PLC | 320,000 | 10,190 | ||||||
KEPCO Plant Service & Engineering Co., Ltd. | 285,000 | 10,055 | ||||||
Charter International PLC | 750,000 | 9,721 | ||||||
Sintex Industries Ltd. | 2,790,452 | 9,505 | ||||||
ITE Group PLC | 2,413,465 | 9,420 | ||||||
Norwegian Air Shuttle ASA1 | 469,809 | 9,132 | ||||||
Pfeiffer Vacuum Technology AG, non-registered shares | 64,000 | 8,978 | ||||||
Lonking Holdings Ltd. | 12,670,000 | 8,910 | ||||||
Interserve PLC | 1,945,000 | 8,588 | ||||||
Kaba Holding AG | 19,000 | 7,923 | ||||||
Teleperformance SA | 200,000 | 7,541 | ||||||
Burckhardt Compression Holding AG | 22,440 | 7,067 | ||||||
Prysmian SpA | 260,000 | 5,579 | ||||||
Downer EDI Ltd. | 418,355 | 1,640 | ||||||
Imagelinx PLC1,2 | 21,385,714 | 515 | ||||||
American Shipping Co. ASA1,3 | 381,069 | 358 | ||||||
Aker Philadelphia Shipyard ASA1,4 | 346,000 | 251 | ||||||
3,246,343 | ||||||||
FINANCIALS — 11.14% | ||||||||
East West Bancorp, Inc.2 | 8,437,515 | 185,288 | ||||||
Dah Sing Financial Holdings Ltd.2 | 18,921,825 | 116,763 | ||||||
City National Corp. | 1,680,450 | 95,870 | ||||||
YES BANK Ltd. | 13,275,845 | 92,167 | ||||||
Manappuram General Finance and Leasing Ltd.2 | 22,732,050 | 67,694 | ||||||
Manappuram General Finance and Leasing Ltd.2,4 | 4,474,357 | 13,324 | ||||||
Kotak Mahindra Bank Ltd. | 7,170,098 | 73,614 | ||||||
Zions Bancorporation | 3,145,000 | 72,524 | ||||||
Onex Corp. | 2,000,000 | 70,119 | ||||||
Daegu Bank, Ltd. | 3,288,420 | 53,960 | ||||||
Cullen/Frost Bankers, Inc. | 841,000 | 49,636 | ||||||
Osaka Securities Exchange Co., Ltd. | 9,830 | 49,339 | ||||||
Banco Cruzeiro do Sul SA, preferred nominative | 5,473,100 | 49,111 | ||||||
JSE Ltd.2 | 4,541,245 | 46,990 | ||||||
National Financial Partners Corp.1,2 | 3,174,800 | 46,828 | ||||||
SVB Financial Group1 | 801,400 | 45,624 | ||||||
IG Group Holdings PLC | 6,137,203 | 44,954 | ||||||
Internet Capital Group, Inc.1,2 | 3,096,000 | 43,963 | ||||||
Hospitality Properties Trust | 1,850,000 | 42,827 | ||||||
Rayonier Inc. | 675,000 | 42,059 | ||||||
Northwest Bancshares, Inc. | 3,337,500 | 41,852 | ||||||
Capitol Federal Financial, Inc. | 3,700,000 | 41,699 | ||||||
TISCO Financial Group PCL | 31,317,000 | 40,382 | ||||||
Banco Industrial e Comercial SA, preferred nominative | 4,934,100 | 38,381 | ||||||
BOK Financial Corp. | 710,000 | 36,693 | ||||||
Savills PLC | 5,942,825 | 34,139 | ||||||
Sonae Sierra Brasil SA, ordinary nominative1 | 2,250,000 | 31,973 | ||||||
PT Agung Podomoro Land Tbk1 | 813,489,000 | 30,830 | ||||||
First Republic Bank1 | 979,655 | 30,281 | ||||||
Bolsa Mexicana de Valores, SAB de CV, Series A | 14,240,000 | 29,942 | ||||||
First American Financial Corp. | 1,722,900 | 28,428 | ||||||
Sterling Financial Corp.1,4 | 1,666,668 | 27,917 | ||||||
BS Financial Group Inc.1 | 1,920,000 | 27,830 | ||||||
Banco ABC Brasil SA, preferred nominative | 3,639,000 | 27,638 | ||||||
Synovus Financial Corp. | 11,505,554 | 27,613 | ||||||
Topdanmark A/S1 | 164,900 | 27,393 | ||||||
Eaton Vance Corp., nonvoting shares | 750,000 | 24,180 | ||||||
Popular, Inc.1 | 8,050,000 | 23,425 | ||||||
CapitalSource Inc. | 3,300,000 | 23,232 | ||||||
Colony Financial, Inc. | 1,195,000 | 22,502 | ||||||
Dah Sing Banking Group Ltd. | 14,300,000 | 22,134 | ||||||
Starwood Property Trust, Inc. | 980,000 | 21,854 | ||||||
National Penn Bancshares, Inc. | 2,781,549 | 21,529 | ||||||
Banca Generali SpA | 1,413,000 | 21,507 | ||||||
Robinsons Land Corp., Class B | 76,676,700 | 20,353 | ||||||
Hellenic Exchanges SA | 2,259,000 | 19,849 | ||||||
SKS Microfinance Ltd.1 | 1,659,549 | 19,502 | ||||||
Duff & Phelps Corp., Class A | 1,173,892 | 18,759 | ||||||
Janus Capital Group Inc. | 1,500,000 | 18,705 | ||||||
Mahindra Lifespace Developers Ltd.2 | 2,157,380 | 18,647 | ||||||
Banco Daycoval SA, preferred nominative | 2,490,000 | 18,607 | ||||||
Noah Holdings Ltd. (ADR)1 | 1,260,000 | 18,434 | ||||||
Portfolio Recovery Associates, Inc.1 | 208,000 | 17,707 | ||||||
Brait SA2 | 6,347,050 | 17,592 | ||||||
Paraná Banco SA, preferred nominative | 2,318,400 | 16,998 | ||||||
Home Federal Bancorp, Inc.2 | 1,384,249 | 16,306 | ||||||
Compartamos, SAB de CV1 | 9,000,000 | 16,200 | ||||||
First Southern Bancorp, Inc.1,2,3,5 | 1,344,915 | 15,924 | ||||||
Old Republic International Corp. | 1,235,000 | 15,672 | ||||||
Oslo Børs VPS Holding ASA | 1,002,335 | 15,406 | ||||||
AEON Mall Co., Ltd. | 705,000 | 15,137 | ||||||
Banco Panamericano SA, preferred nominative | 4,209,100 | 14,979 | ||||||
Bao Viet Holdings | 4,137,486 | 14,752 | ||||||
Home BancShares, Inc. | 643,700 | 14,644 | ||||||
Kiatnakin Bank PCL | 12,200,000 | 14,219 | ||||||
Midland Holdings Ltd. | 17,996,000 | 13,997 | ||||||
First Niagara Financial Group, Inc. | 1,000,000 | 13,580 | ||||||
Ascendas India Trust | 17,459,000 | 13,228 | ||||||
Redwood Trust, Inc. | 850,000 | 13,217 | ||||||
Canadian Western Bank | 375,000 | 12,049 | ||||||
Frasers Centrepoint Trust | 9,800,000 | 11,818 | ||||||
Jyske Bank A/S1 | 258,619 | 11,517 | ||||||
First Michigan Bancorp, Inc.1,3,5 | 1,650,000 | 11,434 | ||||||
ARA Asset Management Ltd. | 8,046,000 | 11,234 | ||||||
PT Summarecon Agung Tbk | 84,285,000 | 11,228 | ||||||
First Horizon National Corp. | 916,309 | 10,272 | ||||||
Oriental Financial Group Inc.4 | 802,863 | 10,076 | ||||||
CenterState Banks, Inc. | 1,375,400 | 9,628 | ||||||
Laurentian Bank of Canada | 135,400 | 7,070 | ||||||
Gruppo MutuiOnline SpA | 904,823 | 6,386 | ||||||
Islamic Arab Insurance Co. (Salama)1 | 21,700,000 | 4,207 | ||||||
Banner Corp. | 509,867 | 1,208 | ||||||
2,536,549 | ||||||||
HEALTH CARE — 10.64% | ||||||||
Alere Inc.1 | 3,443,771 | 134,789 | ||||||
Cochlear Ltd. | 1,441,910 | 123,775 | ||||||
Endo Pharmaceuticals Holdings Inc.1 | 3,108,100 | 118,605 | ||||||
Fleury SA, ordinary nominative | 5,252,150 | 78,011 | ||||||
Integra LifeSciences Holdings Corp.1,2 | 1,609,978 | 76,345 | ||||||
American Medical Systems Holdings, Inc.1 | 3,453,000 | 74,723 | ||||||
ZOLL Medical Corp.1,2 | 1,532,240 | 68,660 | ||||||
Hikma Pharmaceuticals PLC | 5,689,153 | 67,354 | ||||||
athenahealth, Inc.1 | 1,485,363 | 67,034 | ||||||
Emeritus Corp.1,2 | 2,565,000 | 65,305 | ||||||
Incyte Corp.1 | 3,696,300 | 58,586 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 24,427,695 | 58,524 | ||||||
Grifols, SA | 3,290,000 | 57,350 | ||||||
VCA Antech, Inc.1 | 2,195,100 | 55,273 | ||||||
Omega Pharma NV | 1,141,350 | 54,939 | ||||||
Accretive Health, Inc.1 | 1,900,179 | 52,749 | ||||||
Ansell Ltd. | 3,700,000 | 51,742 | ||||||
Intuitive Surgical, Inc.1 | 155,000 | 51,686 | ||||||
Myriad Genetics, Inc.1 | 2,528,820 | 50,956 | ||||||
Sysmex Corp. | 1,434,000 | 50,719 | ||||||
Cadence Pharmaceuticals, Inc.1,2 | 5,042,279 | 46,439 | ||||||
Savient Pharmaceuticals, Inc.1,2 | 4,294,200 | 45,519 | ||||||
Hologic, Inc.1 | 1,965,000 | 43,623 | ||||||
NuVasive, Inc.1 | 1,697,136 | 42,971 | ||||||
ArthroCare Corp.1 | 1,280,000 | 42,675 | ||||||
Insulet Corp.1 | 1,995,000 | 41,137 | ||||||
Top Glove Corp. Bhd. | 21,224,000 | 37,700 | ||||||
Thoratec Corp.1 | 1,346,000 | 34,902 | ||||||
Hill-Rom Holdings, Inc. | 909,900 | 34,558 | ||||||
Invacare Corp. | 1,089,400 | 33,902 | ||||||
BioMarin Pharmaceutical Inc.1 | 1,340,000 | 33,674 | ||||||
Tecan Group AG | 415,586 | 32,781 | ||||||
Bangkok Dusit Medical Services PCL | 17,080,000 | 29,224 | ||||||
ResMed Inc.1 | 693,500 | 20,805 | ||||||
ResMed Inc. (CDI)1 | 1,980,000 | 5,960 | ||||||
Illumina, Inc.1 | 380,000 | 26,627 | ||||||
Greatbatch, Inc.1 | 990,400 | 26,206 | ||||||
Covance Inc.1 | 473,392 | 25,904 | ||||||
JSC Pharmstandard (GDR)1 | 839,163 | 23,455 | ||||||
Nakanishi Inc. | 226,000 | 22,687 | ||||||
Genomma Lab Internacional, SAB de CV, Series B1 | 9,535,000 | 21,588 | ||||||
Virbac SA | 128,000 | 21,338 | ||||||
MEDICA SA1 | 1,070,000 | 21,078 | ||||||
St.Shine Optical Co. Ltd. | 1,660,000 | 20,435 | ||||||
Wright Medical Group, Inc.1 | 1,154,485 | 19,638 | ||||||
Sonic Healthcare Ltd. | 1,552,967 | 19,244 | ||||||
Fluidigm Corp.1,2,3,4 | 984,195 | 11,971 | ||||||
Fluidigm Corp.1,2 | 500,000 | 7,155 | ||||||
Pharmacyclics, Inc.1,2 | 3,062,300 | 18,037 | ||||||
Kinetic Concepts, Inc.1 | 330,000 | 17,959 | ||||||
Nobel Biocare Holding AG | 770,000 | 15,962 | ||||||
Abaxis, Inc.1 | 534,700 | 15,421 | ||||||
Tsumura & Co. | 490,000 | 15,375 | ||||||
ARIAD Pharmaceuticals, Inc.1 | 2,000,000 | 15,040 | ||||||
TECHNE Corp. | 200,000 | 14,320 | ||||||
Codexis, Inc.1 | 1,100,100 | 13,047 | ||||||
EGIS Nyrt. | 107,000 | 11,377 | ||||||
Volcano Corp.1 | 439,000 | 11,238 | ||||||
Vital Images, Inc.1,2 | 792,000 | 10,700 | ||||||
BG Medicine, Inc.1,2,3,4 | 1,036,634 | 6,794 | ||||||
BG Medicine, Inc.1,2 | 374,213 | 2,885 | ||||||
RHÖN-KLINIKUM AG, non-registered shares | 415,000 | 8,999 | ||||||
Odontoprev SA, ordinary nominative | 537,600 | 8,785 | ||||||
Ipca Laboratories Ltd. | 1,295,000 | 8,729 | ||||||
Auxilium Pharmaceuticals, Inc.1 | 338,300 | 7,263 | ||||||
Merck Ltd. | 299,383 | 3,969 | ||||||
Array BioPharma Inc.1 | 1,114,800 | 3,411 | ||||||
Krka, dd, Novo mesto | 19,856 | 1,688 | ||||||
Newron Pharmaceuticals SpA1 | 114,000 | 832 | ||||||
Newron Pharmaceuticals SpA1,4 | 54,000 | 394 | ||||||
Allied Medical Ltd.1,3,5 | 147,030 | 76 | ||||||
2,422,622 | ||||||||
MATERIALS — 7.84% | ||||||||
African Minerals Ltd.1,4 | 1,871,500 | 15,026 | ||||||
African Minerals Ltd.1 | 10,821,621 | 86,887 | ||||||
Rhodia SA | 2,845,043 | 83,301 | ||||||
AptarGroup, Inc. | 1,617,682 | 81,094 | ||||||
FUCHS PETROLUB AG | 377,860 | 51,023 | ||||||
FUCHS PETROLUB AG, preference shares | 193,500 | 28,794 | ||||||
Kenmare Resources PLC1 | 95,876,802 | 68,213 | ||||||
Kenmare Resources PLC1,4 | 14,095,980 | 10,029 | ||||||
Harry Winston Diamond Corp. (CAD denominated)1,2 | 4,292,400 | 69,157 | ||||||
Harry Winston Diamond Corp.1,2 | 372,600 | 6,029 | ||||||
Aquarius Platinum Ltd. | 8,611,111 | 48,008 | ||||||
Aquarius Platinum Ltd. (GBP denominated) | 1,931,493 | 10,708 | ||||||
African Petroleum Corp. Ltd.1 | 52,451,550 | 55,881 | ||||||
OCI Materials Co., Ltd. | 455,000 | 55,664 | ||||||
Talvivaara Mining Co. PLC1 | 5,473,800 | 51,062 | ||||||
Gem Diamonds Ltd.1,2 | 11,061,300 | 49,685 | ||||||
Schweitzer-Mauduit International, Inc.2 | 920,000 | 46,561 | ||||||
Coal of Africa Ltd.1,2 | 37,135,000 | 44,828 | ||||||
Eastern Platinum Ltd.1,4 | 8,160,000 | 10,942 | ||||||
Eastern Platinum Ltd.1 | 19,121,450 | 25,640 | ||||||
Talison Lithium Ltd.1,2 | 6,425,000 | 34,792 | ||||||
Midas Holdings Ltd. | 48,467,000 | 28,838 | ||||||
Midas Holdings Ltd. (HKD denominated) | 10,000,000 | 5,914 | ||||||
James Hardie Industries SE1 | 5,500,000 | 34,702 | ||||||
OCI Co. Ltd. | 75,514 | 34,007 | ||||||
Cline Mining Corp.1,2 | 9,343,536 | 33,635 | ||||||
Arkema SA | 348,000 | 31,608 | ||||||
China Shanshui Cement Group Ltd. | 33,787,000 | 31,535 | ||||||
Croda International PLC | 1,072,000 | 28,857 | ||||||
RPM International, Inc. | 1,200,000 | 28,476 | ||||||
Gran Colombia Gold SA1,2 | 15,684,000 | 28,472 | ||||||
Martin Marietta Materials, Inc. | 300,000 | 26,901 | ||||||
Vicat S.A. | 316,000 | 26,875 | ||||||
Chr. Hansen Holding A/S | 1,164,000 | 26,461 | ||||||
Jaguar Mining Inc.1,2 | 5,035,000 | 26,330 | ||||||
Symrise AG | 865,046 | 25,365 | ||||||
Huabao International Holdings Ltd. | 16,490,000 | 25,354 | ||||||
Yingde Gases Group Co. Ltd.1 | 28,381,000 | 23,753 | ||||||
Sino-Forest Corp.1 | 900,000 | 23,486 | ||||||
Huntsman Corp. | 1,325,000 | 23,028 | ||||||
Steel Dynamics, Inc. | 1,100,000 | 20,647 | ||||||
PT Indocement Tunggal Prakarsa Tbk | 10,995,000 | 20,645 | ||||||
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd.1 | 40,920,000 | 19,938 | ||||||
Mineral Deposits Ltd.1 | 1,494,360 | 11,222 | ||||||
Mineral Deposits Ltd. (CAD denominated)1 | 1,012,800 | 7,543 | ||||||
Sika AG, non-registered shares | 6,750 | 16,256 | ||||||
Yamana Gold Inc. | 1,200,000 | 14,828 | ||||||
AK Steel Holding Corp. | 905,000 | 14,281 | ||||||
Teranga Gold Corp. (CDI)1 | 2,881,757 | 7,452 | ||||||
Teranga Gold Corp.1 | 2,567,079 | 6,699 | ||||||
Baja Mining Corp.1,4 | 13,000,000 | 14,079 | ||||||
Obtala Resources Ltd.1,2 | 8,500,000 | 6,630 | ||||||
Obtala Resources Ltd.1,2,4 | 7,950,000 | 6,201 | ||||||
Titan Cement Co. SA | 491,500 | 12,273 | ||||||
Buzzi Unicem SpA | 822,777 | 11,987 | ||||||
Mountain Province Diamonds Inc.1,4 | 1,904,762 | 11,690 | ||||||
Shree Cement Ltd. | 250,000 | 11,605 | ||||||
Sirius Minerals PLC1,2 | 56,804,735 | 10,821 | ||||||
Balchem Corp. | 259,000 | 9,718 | ||||||
Calgon Carbon Corp.1 | 600,000 | 9,528 | ||||||
PT Indah Kiat Pulp & Paper Tbk1 | 47,250,000 | 9,225 | ||||||
Siam City Cement PCL | 1,300,000 | 8,940 | ||||||
TFS Corporation Ltd | 9,851,120 | 8,253 | ||||||
Rusoro Mining Ltd.1,4 | 20,000,000 | 7,117 | ||||||
Rusoro Mining Ltd.1 | 1,437,000 | 511 | ||||||
Vatukoula Gold Mines PLC1,4 | 3,214,081 | 6,973 | ||||||
Allied Gold Ltd.1 | 10,073,137 | 6,827 | ||||||
Cheil Industries Inc. | 57,000 | 6,054 | ||||||
China Forestry Holdings Co., Ltd.3 | 29,142,000 | 5,526 | ||||||
AZ Electronic Materials SA (CDI)1 | 1,100,000 | 4,869 | ||||||
Engro Corp. Ltd. | 1,993,200 | 4,803 | ||||||
Central Asia Metals PLC1 | 3,986,000 | 4,684 | ||||||
Greatview Aseptic Packaging Co. Ltd.1 | 6,757,000 | 4,335 | ||||||
Hummingbird Resources PLC1,4 | 1,650,000 | 4,182 | ||||||
Birla Corp. Ltd. | 484,500 | 3,680 | ||||||
European Nickel PLC1 | 12,450,000 | 3,046 | ||||||
J.K. Cement Ltd. | 945,000 | 2,988 | ||||||
Cape Lambert Resources Ltd. | 4,043,491 | 2,279 | ||||||
Mwana Africa PLC1,4 | 11,500,000 | 1,365 | ||||||
1,786,621 | ||||||||
ENERGY — 7.15% | ||||||||
Pacific Rubiales Energy Corp. | 4,151,300 | 115,183 | ||||||
Comstock Resources, Inc.1,2 | 3,049,611 | 94,355 | ||||||
Gulf Keystone Petroleum Ltd.1,2,4 | 38,737,632 | 94,147 | ||||||
Banpu PCL | 3,377,500 | 85,764 | ||||||
InterOil Corp.1 | 1,092,500 | 81,544 | ||||||
Concho Resources Inc.1 | 725,000 | 77,792 | ||||||
Rosetta Resources Inc.1 | 1,625,000 | 77,252 | ||||||
FMC Technologies, Inc.1 | 815,000 | 77,001 | ||||||
Zhaikmunai LP (GDR)1,4 | 5,262,500 | 64,992 | ||||||
Zhaikmunai LP (GDR)1 | 353,650 | 4,368 | ||||||
Heritage Oil Ltd. | 13,488,000 | 61,472 | ||||||
Cimarex Energy Co. | 481,500 | 55,488 | ||||||
Exillon Energy PLC1,2 | 8,414,205 | 55,342 | ||||||
Core Laboratories NV | 540,000 | 55,172 | ||||||
Petroleum Development Corp.1 | 1,077,000 | 51,707 | ||||||
Sterling Resources Ltd.1 | 7,525,000 | 33,763 | ||||||
Gran Tierra Energy Inc.1 | 3,950,000 | 31,877 | ||||||
SinoTech Energy Ltd. (ADR)1,2 | 3,820,900 | 30,491 | ||||||
Tethys Petroleum Ltd.1,2 | 19,130,300 | 29,007 | ||||||
Bill Barrett Corp.1 | 700,000 | 27,937 | ||||||
Schoeller-Bleckmann Oilfield Equipment AG | 279,415 | 27,470 | ||||||
Harvest Natural Resources, Inc.1 | 1,650,000 | 25,146 | ||||||
Oasis Petroleum Inc.1 | 783,049 | 24,760 | ||||||
Miclyn Express Offshore Ltd. | 13,550,000 | 24,036 | ||||||
Dockwise Ltd.1 | 882,752 | 24,023 | ||||||
Goodrich Petroleum Corp.1 | 995,000 | 22,109 | ||||||
Pacific Coal, SA1,2,4 | 17,000,000 | 19,288 | ||||||
WorleyParsons Ltd. | 589,556 | 18,892 | ||||||
Oceaneering International, Inc.1 | 205,000 | 18,337 | ||||||
Nautical Petroleum PLC1 | 2,793,408 | 18,238 | ||||||
Eurasia Drilling Co. Ltd. (GDR) | 535,000 | 18,190 | ||||||
Aurelian Oil & Gas PLC1 | 15,450,701 | 17,970 | ||||||
Approach Resources Inc.1 | 527,900 | 17,737 | ||||||
Petroplus Holdings AG1 | 1,094,781 | 17,283 | ||||||
BPZ Resources, Inc.1 | 3,162,400 | 16,792 | ||||||
Petrodorado Energy Ltd.1,2 | 35,400,000 | 16,249 | ||||||
Petroceltic International PLC1 | 92,389,000 | 15,562 | ||||||
Zodiac Exploration Inc.1 | 13,920,000 | 15,076 | ||||||
Frontier Oil Corp. | 500,000 | 14,660 | ||||||
Value Creation Inc.1,3,5 | 4,529,354 | 12,615 | ||||||
Petroleum Geo-Services ASA1 | 760,000 | 12,183 | ||||||
BNK Petroleum Inc.1,4 | 2,000,000 | 9,696 | ||||||
BNK Petroleum Inc.1 | 90,380 | 438 | ||||||
Borders & Southern Petroleum PLC1 | 10,017,000 | 9,963 | ||||||
Faroe Petroleum PLC1 | 2,350,000 | 6,409 | ||||||
High Arctic Energy Services Inc.1 | 1,923,000 | 486 | ||||||
1,628,262 | ||||||||
CONSUMER STAPLES — 4.30% | ||||||||
Lindt & Sprüngli AG | 1,369 | 44,513 | ||||||
Lindt & Sprüngli AG, participation certificate | 11,121 | 32,122 | ||||||
Drogasil SA, ordinary nominative2 | 9,482,600 | 74,111 | ||||||
Ruinian International Ltd.2 | 62,800,000 | 44,000 | ||||||
Ralcorp Holdings, Inc.1 | 635,900 | 43,515 | ||||||
Strauss Group Ltd. | 2,643,350 | 43,103 | ||||||
China Yurun Food Group Ltd. | 11,360,000 | 38,117 | ||||||
Kernel Holding SA1 | 1,523,150 | 38,084 | ||||||
FANCL Corp. | 2,567,000 | 35,953 | ||||||
Emami Ltd. | 3,950,000 | 35,483 | ||||||
Davide Campari-Milano SpA | 5,120,000 | 34,641 | ||||||
CP ALL PCL | 25,948,500 | 34,318 | ||||||
TreeHouse Foods, Inc.1 | 580,000 | 32,985 | ||||||
Emmi AG | 136,100 | 30,969 | ||||||
PZ Cussons PLC | �� | 5,905,000 | 30,929 | |||||
MARR SpA | 2,499,899 | 30,752 | ||||||
Super Group Ltd.2 | 29,500,000 | 30,190 | ||||||
Hite Brewery Co., Ltd. | 305,000 | 30,168 | ||||||
Nong Shim Co., Ltd. | 113,716 | 25,191 | ||||||
Church & Dwight Co., Inc. | 290,174 | 23,022 | ||||||
Bizim Toptan Satis Magazalari AS1 | 1,100,000 | 22,441 | ||||||
Coca-Cola Icecek AS, Class C | 1,672,785 | 20,963 | ||||||
Eurocash SA | 1,877,000 | 20,617 | ||||||
Godrej Consumer Products Ltd. | 2,493,150 | 20,434 | ||||||
AMOREPACIFIC Corp. | 17,600 | 16,767 | ||||||
Origin Enterprises PLC | 3,213,300 | 16,622 | ||||||
Poslovni sistem Mercator, dd | 62,112 | 15,404 | ||||||
Asian Citrus Holdings Ltd. | 12,890,000 | 14,334 | ||||||
Viscofan, SA, non-registered shares | 339,000 | 13,452 | ||||||
Philip Morris CR as | 22,200 | 13,368 | ||||||
Raia SA, ordinary nominative1 | 850,000 | 13,276 | ||||||
Wumart Stores, Inc., Class H | 5,205,000 | 11,349 | ||||||
Tilaknager Industries Ltd.2 | 8,890,000 | 10,675 | ||||||
Pesquera Exalmar SA, Class A1 | 7,050,000 | 10,303 | ||||||
Synutra International, Inc.1 | 848,900 | 9,762 | ||||||
Petra Foods Ltd. | 6,683,000 | 8,483 | ||||||
Milkiland NV1 | 460,000 | 6,520 | ||||||
Tassal Group Ltd. | 1,576,086 | 2,771 | ||||||
979,707 | ||||||||
UTILITIES — 1.62% | ||||||||
ENN Energy Holdings Ltd.2 | 69,350,000 | 215,756 | ||||||
Hyflux Ltd | 23,403,000 | 40,104 | ||||||
Greenko Group PLC1 | 5,512,587 | 18,792 | ||||||
Manila Water Co., Inc. | 41,200,000 | 17,239 | ||||||
KSK Energy Ventures Ltd.1 | 7,000,000 | 15,869 | ||||||
Glow Energy PCL | 10,850,000 | 15,067 | ||||||
Caparo Energy Ltd.1,4 | 6,540,000 | 12,603 | ||||||
CESC Ltd. | 1,746,400 | 12,152 | ||||||
Orient Green Power Co. Ltd.1 | 20,396,000 | 11,571 | ||||||
Thai Tap Water Supply PCL | 49,600,000 | 9,758 | ||||||
368,911 | ||||||||
TELECOMMUNICATION SERVICES — 1.29% | ||||||||
tw telecom inc.1 | 4,548,000 | 87,322 | ||||||
Telephone and Data Systems, Inc. | 1,700,000 | 57,290 | ||||||
Telephone and Data Systems, Inc., special common shares | 310,000 | 9,151 | ||||||
MetroPCS Communications, Inc.1 | 2,961,670 | 48,098 | ||||||
Leap Wireless International, Inc.1 | 2,720,500 | 42,140 | ||||||
Total Access Communication PCL | 14,946,000 | 23,720 | ||||||
Daisy Group PLC1 | 10,000,000 | 14,919 | ||||||
Partner Communications Co. Ltd. | 630,000 | 11,976 | ||||||
294,616 | ||||||||
MISCELLANEOUS — 4.95% | ||||||||
Other common stocks in initial period of acquisition | 1,126,600 | |||||||
Total common stocks (cost: $15,192,946,000) | 21,220,638 | |||||||
Preferred stocks — 0.12% | ||||||||
INFORMATION TECHNOLOGY — 0.09% | ||||||||
Angie’s List, Inc., Series D1,3,5 | 282,158 | 20,000 | ||||||
MISCELLANEOUS — 0.03% | ||||||||
Other preferred stocks in initial period of acquisition | 7,928 | |||||||
Total preferred stocks (cost: $25,528,000) | 27,928 | |||||||
Warrants — 0.05% | ||||||||
INDUSTRIALS — 0.02% | ||||||||
Goodpack Ltd., warrants, expire 20121,2 | 5,272,000 | 4,935 | ||||||
INFORMATION TECHNOLOGY — 0.01% | ||||||||
Kingboard Chemical Holdings Ltd., warrants, expire 20121 | 2,604,420 | 2,143 | ||||||
ENERGY — 0.01% | ||||||||
Pacific Coal, SA, warrants, expire 20161,2,4 | 8,500,000 | 2,017 | ||||||
MATERIALS — 0.01% | ||||||||
Gran Colombia Gold SA, warrants, expire 20151,2 | 1,382,000 | 1,169 | ||||||
HEALTH CARE — 0.00% | ||||||||
BG Medicine, Inc., warrants, expire 20201,2,3,4 | 51,921 | 339 | ||||||
MISCELLANEOUS — 0.00% | ||||||||
Other warrants in initial period of acquisition | 895 | |||||||
Total warrants (cost: $3,286,000) | 11,498 | |||||||
Shares or | ||||||||
Convertible securities — 0.23% | principal amount | |||||||
FINANCIALS — 0.11% | ||||||||
Synovus Financial Corp. 8.25% convertible preferred 2013, units | 522,700 | 12,074 | ||||||
First Southern Bancorp, Inc., Series C, convertible preferred1,2,3,5 | 2,299 | 9,415 | ||||||
National Financial Partners Corp. 4.00% convertible notes 20172,4 | $ | 4,000,000 | 5,345 | |||||
26,834 | ||||||||
ENERGY — 0.04% | ||||||||
Harvest Natural Resources, Inc. 8.25% convertible notes 2013 | $ | 3,000,000 | 8,325 | |||||
INDUSTRIALS — 0.03% | ||||||||
AMR Corp. 6.25% convertible notes 2014 | $ | 7,000,000 | 7,403 | |||||
INFORMATION TECHNOLOGY — 0.02% | ||||||||
Quantum Corp. 3.50% convertible notes 20152,4 | $ | 4,900,000 | 4,826 | |||||
HEALTH CARE — 0.02% | ||||||||
Savient Pharmaceuticals, Inc. 4.75% convertible notes 20182 | $ | 3,400,000 | 4,003 | |||||
TELECOMMUNICATION SERVICES — 0.01% | ||||||||
tw telecom inc. 2.375% convertible debentures 2026 | $ | 1,600,000 | 1,910 | |||||
CONSUMER DISCRETIONARY — 0.00% | ||||||||
Spot Runner, Inc., Series C, convertible preferred1,3,5 | 1,626,016 | — | ||||||
Total convertible securities (cost: $44,838,000) | 53,301 | |||||||
Principal amount | ||||||||
Bonds & notes — 0.02% | (000 | ) | ||||||
FINANCIALS — 0.02% | ||||||||
CIT Group Inc., Term Loan 3, 6.25% 20156,7,8 | $ | 3,191 | 3,247 | |||||
Total bonds & notes (cost: $3,132,000) | $ | 3,247 | ||||||
Short-term securities — 6.28% | ||||||||
Freddie Mac 0.15%–0.23% due 8/8–11/17/2011 | $ | 286,400 | 286,175 | |||||
Commonwealth Bank of Australia 0.255%–0.26% due 5/17–6/14/20114 | 163,750 | 163,685 | ||||||
Fannie Mae 0.10%–0.17% due 5/4–5/24/2011 | 104,800 | 104,785 | ||||||
Jupiter Securitization Co., LLC 0.21% due 4/13–4/15/20114 | 93,000 | 92,993 | ||||||
Nordea North America, Inc. 0.215%–0.225% due 4/25–5/24/2011 | 85,700 | 85,679 | ||||||
KfW 0.24% due 6/2–6/7/20114 | 69,700 | 69,676 | ||||||
Private Export Funding Corp. 0.23% due 6/17/20114 | 67,600 | 67,573 | ||||||
Coca-Cola Co. 0.19% due 4/21/20114 | 64,400 | 64,393 | ||||||
Federal Home Loan Bank 0.125% due 6/15/2011 | 59,000 | 58,985 | ||||||
Toronto-Dominion Holdings USA Inc. 0.22% due 4/27/20114 | 50,000 | 49,992 | ||||||
PepsiCo Inc. 0.17% due 5/9/20114 | 50,000 | 49,991 | ||||||
European Investment Bank 0.25% due 6/24/2011 | 50,000 | 49,970 | ||||||
U.S. Treasury Bill 0.163% due 7/7/2011 | 46,900 | 46,887 | ||||||
Credit Suisse New York Branch 0.23% due 5/5/2011 | 41,700 | 41,691 | ||||||
Straight-A Funding LLC 0.25% due 4/12/20114 | 40,500 | 40,496 | ||||||
UBS Finance (Delaware) LLC 0.205% due 4/8/2011 | 34,500 | 34,498 | ||||||
Rabobank USA Financial Corp. 0.24% due 7/5/2011 | 28,200 | 28,182 | ||||||
Nestlé Finance International Ltd. 0.17% due 5/3/2011 | 27,300 | 27,296 | ||||||
Deutsche Bank Financial LLC 0.23% due 4/14/2011 | 20,900 | 20,898 | ||||||
Cisco Systems, Inc. 0.18% due 4/15/20114 | 14,500 | 14,499 | ||||||
Electricité de France 0.23% due 4/11/20114 | 12,200 | 12,199 | ||||||
Caisse d’Amortissement de la Dette Sociale 0.21% due 5/12/20114 | 10,600 | 10,597 | ||||||
Barclays U.S. Funding Corp. 0.10% due 4/1/2011 | 10,000 | 10,000 | ||||||
Total short-term securities (cost: $1,431,109,000) | 1,431,140 | |||||||
Total investment securities (cost: $16,700,839,000) | 22,747,752 | |||||||
Other assets less liabilities | 26,328 | |||||||
Net assets | $ | 22,774,080 |
“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.
1Security did not produce income during the last 12 months.
2Represents an affiliated company as defined under the Investment Company Act of 1940.
3Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities was $96,074,000, which represented .42% of the net assets of the fund.
4Acquired in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,053,398,000, which represented 4.63% of the net assets of the fund.
5Acquired 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 and on the next page.
Acquisition | Cost | Value | Percent of | ||||||||||
date(s) | (000 | ) | (000 | ) | net assets | ||||||||
First Southern Bancorp, Inc. | 12/17/2009 | $ | 28,378 | $ | 15,924 | .07 | % | ||||||
First Southern Bancorp, Inc., Series C, convertible preferred | 12/17/2009 | 2,299 | 9,415 | .04 | |||||||||
Angie’s List, Inc., Series D | 3/15/2011 | 20,000 | 20,000 | .09 | |||||||||
Value Creation Inc. | 8/25/2005–9/1/2006 | 33,229 | 12,615 | .06 | |||||||||
First Michigan Bancorp, Inc. | 4/28/2010 | $ | 9,900 | $ | 11,434 | .05 | % | ||||||
Allied Medical Ltd. | 8/26/2005–11/15/2005 | 8 | 76 | .00 | |||||||||
HSW International, Inc. | 12/17/2007 | 907 | 67 | .00 | |||||||||
Five Star Travel Corp. | 12/17/2007 | 24 | 25 | .00 | |||||||||
Fontainebleau Resorts LLC, Class A, nonvoting units | 10/5/2005–6/1/2007 | 21,500 | — | .00 | |||||||||
Spot Runner, Inc. | 10/25/2006–3/20/2008 | 15,071 | — | .00 | |||||||||
Spot Runner, Inc., Series C, convertible preferred | 10/25/2006 | 6,000 | — | .00 | |||||||||
Total restricted securities | $ | 137,316 | $ | 69,556 | .31 | % |
6Coupon rate may change periodically.
7Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
8Loan participations and assignments; may be subject to legal or contractual restrictions on resale. The total value of all such loans was $3,247,000, which represented .01% of the net assets of the fund.
Key to abbreviations
ADR = American Depositary Receipts
CDI = CREST Depository Interest
GDR = Global Depositary Receipts
CAD = Canadian dollars
GBP = British pounds
HKD = Hong Kong dollars
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
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 and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.
MFGEFP-935-0511O-S25582
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 and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of 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 and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
ITEM 11 – Controls and Procedures
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
(b) | There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12 – Exhibits
(a)(1) | Not applicable for filing of semi-annual reports to shareholders. |
(a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SMALLCAP WORLD FUND, INC. | |
By /s/ Paul F. Roye | |
Paul F. Roye, Executive Vice President and Principal Executive Officer | |
Date: May 31, 2011 |
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: May 31, 2011 |
By /s/ Jeffrey P. Regal |
Jeffrey P. Regal, Treasurer and Principal Financial Officer |
Date: May 31, 2011 |