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, 2012
Patrick F. Quan
SMALLCAP World Fund, Inc.
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 a large metal globe sculpture at Columbus Circle, New York, NY - mirrored office building in the background]
Semi-annual report for the six months ended March 31, 2012
SMALLCAP World Fund seeks long-term growth of capital through investments in smaller companies in the United States and around the world.
This fund is one of the American Funds. American Funds is one of the nation’s largest mutual fund families. For more than 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 curent 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, 2012: | ||||||||||||
1 year | 5 years | 10 years | ||||||||||
Class A shares | ||||||||||||
Reflecting 5.75% maximum sales charge | –8.09 | % | 0.28 | % | 7.54 | % |
The total annual fund operating expense ratio was 1.09% for Class A shares as of the prospectus dated December 1, 2011.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. See americanfunds.com for more information.
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.
[photo of a large metal globe sculpture at Columbus Circle, New York, NY - mirrored office building in the background]
Fellow investors:
A rally in global equity markets, spurred by signs of economic improvement and accommodative monetary policies around the world, marked the first six months of SMALLCAP World Fund’s current fiscal year. For the six months ended March 31, 2012, the fund returned 23.7%, which included a dividend payment of 10.6 cents a share. Those taking dividends in cash saw a return of 23.3%.
By way of comparison, the unmanaged MSCI All Country World Small Cap Index gained 22.3% for the period, while the fund’s peer group, as measured by the Lipper Global Small-Cap Funds Average, rose 21.2%. Neither benchmark includes sales charges or taxes.
Market overview
The beginning of the fund’s fiscal year coincided with the beginnings of a sharp rally in equities around the world. Positive economic news and accommodative monetary policy and liquidity efforts in the United States and elsewhere led to a renewed interest in stocks, particularly small-capitalization securities and emerging markets shares.
[Begin Sidebar]
Results at a glance | ||||||||||||||||||||
For periods ended March 31, 2012, 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) | 23.7 | % | –2.5 | % | 1.5 | % | 8.2 | % | 9.4 | % | ||||||||||
MSCI All Country World | ||||||||||||||||||||
Small Cap Index* | 22.3 | –3.6 | 2.2 | 10.1 | n/a | |||||||||||||||
Lipper Global Small-Cap | ||||||||||||||||||||
Funds Average | 21.2 | –2.5 | 0.3 | 7.6 | 9.3 | |||||||||||||||
*This index is unmanaged and, therefore, has no expenses. It 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. This index was not in existence as of the date the fund began investment operations; therefore, lifetime results are not available. |
[End Sidebar]
The economy in the U.S. continued to grow and add jobs throughout the period, though modestly, while corporations reported generally strong earnings. The Federal Reserve signaled that it would keep rates at their current low levels for the foreseeable future, possibly for the next few years.
Overseas, the European Central Bank (ECB), which had long resisted any major stimulus program, changed course and provided about $1.3 trillion in low-interest loans to struggling banks, particularly in Spain and Italy. This effort, combined with some small headway in dealing with debt crises in Greece and Italy, also added to investors’ enthusiasm for stocks.
Finally, emerging markets stocks joined in this global rally after being sold off sharply in 2011.
The fund’s holdings
Emerging markets stocks have long been part of SMALLCAP’s portfolio. These shares detracted from returns in the 2011 fiscal year, but the fund’s portfolio counselors remained convinced that companies with strong balance sheets within these economies would ultimately do well over the long term. Over the past six months, this investment philosophy has been borne out by the marketplace, though these shares — and small caps in general — likely will continue to see volatility in the months ahead.
The fund’s holdings in consumer discretionary stocks provided strong returns for the quarter, as demand for consumer goods rose throughout the world, especially in emerging markets. Likewise, the fund’s energy sector holdings saw gains, buoyed by rising energy prices in many areas of the world. The utilities sector lagged to a degree.
[Begin Sidebar]
Where are SMALLCAP’s holdings located? |
[begin pie chart]
As of March 31, 2012 | Percent of net assets | |||||
n | United States | 43.5 | % | |||
n | Asia & Pacific Basin | 22.4 | ||||
n | Europe | 20.7 | ||||
n | Other (including Canada & Latin America) | 6.7 | ||||
n | Short-term securities & other assets less liabilities | 6.7 |
[end pie chart]
[begin pie chart]
As of September 30, 2011 | Percent of net assets | |||||
n | United States | 39.7 | % | |||
n | Asia & Pacific Basin | 23.8 | ||||
n | Europe | 20.0 | ||||
n | Other (including Canada & Latin America) | 7.2 | ||||
n | Short-term securities & other assets less liabilities | 9.3 |
[end pie chart]
[End Sidebar]
Overall, nearly 50% of the fund is invested in non-U.S. equities, little changed since the period began. The fund’s holdings in Asian shares contributed to the fund’s returns for the period, particularly shares in companies from Hong Kong and China. Eastern European shares lagged somewhat during the period.
Looking ahead
We are gratified with the fund’s return for the first half of the fiscal year, but would caution that returns such as these are likely not sustainable with the continued uncertainties surrounding the global economy. We expect volatility to continue to be an issue in the coming months, as it has been for the past three-and-a-half years.
While the economy in the U.S. has indeed shown modest growth, the federal government remains burdened with massive debt, and the Federal Reserve has few outlets available to provide further stimulus. The upcoming election cycle may also add to domestic volatility. Overseas, the European debt crisis is by no means resolved. The ECB’s actions have provided short-term relief, but difficult decisions remain with regard to some nations’ extraordinary debt levels.
As always, we continue to take a disciplined, long-term approach to investing, and we urge you to consider a similar long-term view with regard to your own personal investments. We thank you for your continued support and trust, 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 10, 2012
For more information about the fund, visit americanfunds.com.
[Begin Sidebar]
We are deeply saddened by the loss of Jon B. Lovelace Jr., chairman emeritus and former portfolio counselor of Capital Research and Management Company and former chairman of The Capital Group Companies.
Nearly every aspect of the Capital Group bears some stamp of Jon’s leadership and service from 1951 until 2005. He was one of the principal architects of our Multiple Portfolio Counselor System, an early proponent of international investing, the founder of New Perspective Fund and Capital Income Builder and a standard-bearer of the Capital Group’s mission to serve investors.
Though he never sought the spotlight, his accomplishments in life, work and philanthropy will long be remembered.
[End Sidebar]
Summary investment portfolio March 31, 2012
unaudited
The following summary investment portfolio is designed to streamline the report and help investors better focus on the 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 | 18.32 | % | ||
Industrials | 13.43 | |||
Health care | 13.16 | |||
Information technology | 12.03 | |||
Financials | 8.88 | |||
Other industries | 26.66 | |||
Other securities | 0.79 | |||
Short-term securities & other assets less liabilities | 6.73 |
[end pie chart]
Country diversification | Percent of net assets | |||
United States | 43.5 | % | ||
United Kingdom | 8.5 | |||
Euro zone* | 7.9 | |||
China | 3.8 | |||
India | 3.7 | |||
Australia | 3.1 | |||
Canada | 2.9 | |||
Hong Kong | 2.5 | |||
Brazil | 2.2 | |||
Japan | 2.1 | |||
Indonesia | 1.6 | |||
Other countries | 11.5 | |||
Short-term securities & other assets less liabilities | 6.7 | |||
*Countries using the euro as a common currency; those represented in the fund's portfolio are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Slovenia and Spain. |
Percent | ||||||||||||
Value | of net | |||||||||||
Common stocks - 92.48% | Shares | (000 | ) | assets | ||||||||
Consumer discretionary - 18.32% | ||||||||||||
lululemon athletica inc. (1) | 2,442,100 | $ | 182,376 | .91 | ||||||||
Mr Price Group Ltd. | 10,577,613 | 130,086 | .65 | |||||||||
Virgin Media Inc. | 5,062,500 | 126,461 | .63 | |||||||||
Chipotle Mexican Grill, Inc. (1) | 298,000 | 124,564 | .62 | |||||||||
Lions Gate Entertainment Corp. (1) (2) | 8,000,000 | 111,360 | .55 | |||||||||
Delticom AG (2) | 946,921 | 100,906 | .50 | |||||||||
Paddy Power PLC | 1,546,226 | 97,377 | .48 | |||||||||
DSW Inc., Class A | 1,557,000 | 85,277 | .42 | |||||||||
Liberty Media Corp., Class A (1) | 938,912 | 82,765 | .41 | |||||||||
TOD'S SpA | 718,225 | 80,799 | .40 | |||||||||
CTC Media, Inc. | 6,787,000 | 78,933 | .39 | |||||||||
CarMax, Inc. (1) | 2,257,000 | 78,205 | .39 | |||||||||
Tesla Motors, Inc. (1) | 1,916,355 | 71,365 | .36 | |||||||||
Other securities | 2,332,573 | 11.61 | ||||||||||
3,683,047 | 18.32 | |||||||||||
Industrials - 13.43% | ||||||||||||
MSC Industrial Direct Co., Inc., Class A | 2,147,500 | 178,844 | .89 | |||||||||
Intertek Group PLC | 2,702,000 | 108,522 | .54 | |||||||||
MTU Aero Engines Holding AG | 1,138,000 | 91,657 | .46 | |||||||||
Chart Industries, Inc. (1) | 1,106,000 | 81,103 | .40 | |||||||||
Michael Page International PLC | 9,727,502 | 74,684 | .37 | |||||||||
Other securities | 2,165,391 | 10.77 | ||||||||||
2,700,201 | 13.43 | |||||||||||
Health care - 13.16% | ||||||||||||
Regeneron Pharmaceuticals, Inc. (1) | 1,368,820 | 159,632 | .79 | |||||||||
Pharmacyclics, Inc. (1) (2) | 4,299,474 | 119,353 | .59 | |||||||||
Endo Pharmaceuticals Holdings Inc. (1) | 2,664,100 | 103,181 | .51 | |||||||||
Intuitive Surgical, Inc. (1) | 155,000 | 83,971 | .42 | |||||||||
AMERIGROUP Corp. (1) | 1,227,029 | 82,554 | .41 | |||||||||
Fleury SA, ordinary nominative | 6,190,750 | 81,732 | .41 | |||||||||
Incyte Corp. (1) | 4,052,400 | 78,211 | .39 | |||||||||
Cochlear Ltd. | 1,138,910 | 73,026 | .36 | |||||||||
Sysmex Corp. | 1,764,000 | 71,182 | .36 | |||||||||
Other securities | 1,792,434 | 8.92 | ||||||||||
2,645,276 | 13.16 | |||||||||||
Information technology - 12.03% | ||||||||||||
AAC Technologies Holdings Inc. | 58,436,000 | 158,778 | .79 | |||||||||
National Instruments Corp. | 3,686,479 | 105,138 | .52 | |||||||||
Compuware Corp. (1) | 10,362,622 | 95,232 | .47 | |||||||||
Hittite Microwave Corp. (1) (2) | 1,659,950 | 90,152 | .45 | |||||||||
Dialog Semiconductor PLC (1) (2) | 3,434,421 | 83,892 | .42 | |||||||||
Elster Group SE (ADR) (1) | 5,141,400 | 81,285 | .40 | |||||||||
Kingboard Chemical Holdings Ltd. | 22,804,200 | 79,728 | .40 | |||||||||
SINA Corp. (1) | 1,135,000 | 73,775 | .37 | |||||||||
Vistaprint NV (1) (2) | 1,860,000 | 71,889 | .36 | |||||||||
Other securities | 1,578,817 | 7.85 | ||||||||||
2,418,686 | 12.03 | |||||||||||
Financials - 8.88% | ||||||||||||
East West Bancorp, Inc. | 4,462,771 | 103,045 | .51 | |||||||||
Onex Corp. | 2,637,700 | 97,078 | .49 | |||||||||
Kotak Mahindra Bank Ltd. | 7,170,098 | 76,754 | .38 | |||||||||
Brait SE (1) (2) | 27,468,288 | 74,516 | .37 | |||||||||
YES BANK Ltd. | 10,065,832 | 72,868 | .36 | |||||||||
Assured Guaranty Ltd. | 4,330,000 | 71,532 | .36 | |||||||||
Other securities | 1,288,462 | 6.41 | ||||||||||
1,784,255 | 8.88 | |||||||||||
Materials - 6.98% | ||||||||||||
African Petroleum Corp. Ltd. (1) | 69,088,868 | 121,661 | .61 | |||||||||
AptarGroup, Inc. | 1,893,442 | 103,704 | .52 | |||||||||
Chr. Hansen Holding A/S | 3,676,000 | 95,136 | .47 | |||||||||
Kenmare Resources PLC (1) | 109,972,782 | 88,215 | .44 | |||||||||
African Minerals Ltd. (1) | 8,638,121 | 76,544 | .38 | |||||||||
James Hardie Industries SE | 9,282,744 | 73,847 | .37 | |||||||||
Other securities | 843,232 | 4.19 | ||||||||||
1,402,339 | 6.98 | |||||||||||
Energy - 6.68% | ||||||||||||
Ophir Energy PLC (1) | 18,733,200 | 152,067 | .76 | |||||||||
InterOil Corp. (1) (2) | 2,626,200 | 135,013 | .67 | |||||||||
Gulf Keystone Petroleum Ltd. (1) (3) | 25,856,814 | 108,461 | .54 | |||||||||
Pacific Rubiales Energy Corp. | 3,546,300 | 103,603 | .51 | |||||||||
Other securities | 844,317 | 4.20 | ||||||||||
1,343,461 | 6.68 | |||||||||||
Consumer staples - 5.02% | ||||||||||||
PT Sumber Alfaria Trijaya Tbk (1) (2) | 238,268,000 | 130,287 | .65 | |||||||||
Raia Drogasil SA, ordinary nominative | 8,424,812 | 81,920 | .41 | |||||||||
Other securities | 796,021 | 3.96 | ||||||||||
1,008,228 | 5.02 | |||||||||||
Utilities - 1.80% | ||||||||||||
ENN Energy Holdings Ltd. (2) | 57,213,000 | 197,450 | .98 | |||||||||
Other securities | 163,677 | .82 | ||||||||||
361,127 | 1.80 | |||||||||||
Telecommunication services - 1.19% | ||||||||||||
Other securities | 239,682 | 1.19 | ||||||||||
Miscellaneous - 4.99% | ||||||||||||
Other common stocks in initial period of acquisition | 1,002,971 | 4.99 | ||||||||||
Total common stocks (cost: $14,521,207,000) | 18,589,273 | 92.48 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Preferred stocks - 0.08% | (000 | ) | assets | |||||||||
Financials - 0.08% | ||||||||||||
Other securities | 16,450 | .08 | ||||||||||
Total preferred stocks (cost: $13,738,000) | 16,450 | .08 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Warrants - 0.02% | (000 | ) | assets | |||||||||
Other - 0.02% | ||||||||||||
Other securities | 4,882 | .02 | ||||||||||
Total warrants (cost: $2,398,000) | 4,882 | .02 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Convertible securities - 0.45% | (000 | ) | assets | |||||||||
Other - 0.45% | ||||||||||||
Other securities | 89,661 | .45 | ||||||||||
Total convertible securities (cost: $87,979,000) | 89,661 | .45 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Bonds & notes - 0.24% | (000 | ) | assets | |||||||||
Other - 0.24% | ||||||||||||
Other securities | 48,772 | .24 | ||||||||||
Total bonds & notes (cost: $41,611,000) | 48,772 | .24 | ||||||||||
Principal | Percent | |||||||||||
amount | Value | of net | ||||||||||
Short-term securities - 6.72% | (000 | ) | (000 | ) | assets | |||||||
Fannie Mae 0.055%-0.20% due 5/2-10/2/2012 | 310,890 | 310,766 | 1.55 | |||||||||
U.S. Treasury Bills 0.055%-0.131% due 4/5-8/16/2012 | 280,000 | 279,937 | 1.39 | |||||||||
Federal Home Loan Bank 0.085%-0.20% due 4/11-12/20/2012 | 170,164 | 170,109 | .85 | |||||||||
Freddie Mac 0.07%-0.17% due 6/4/2012-1/9/2013 | 101,225 | 101,144 | .50 | |||||||||
Hydro-Québec 0.13% due 5/22/2012 (3) | 50,000 | 49,977 | ||||||||||
Québec (Province of) 0.13% due 5/30/2012 (3) | 21,700 | 21,688 | .36 | |||||||||
Other securities | 417,241 | 2.07 | ||||||||||
Total short-term securities (cost: $1,350,899,000) | 1,350,862 | 6.72 | ||||||||||
Total investment securities (cost: $16,017,832,000) | 20,099,900 | 99.99 | ||||||||||
Other assets less liabilities | 1,203 | .01 | ||||||||||
Net assets | $ | 20,101,103 | 100.00 | % |
As permitted by U.S. Securities and Exchange Commission regulations, "Miscellaneous" securities include holdings in their first year 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, 2012, appear below. |
Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Dividend or interest income (000) | Value of affiliates at 3/31/2012 (000) | |||||||||||||||||||
ENN Energy Holdings Ltd. | 56,813,000 | 400,000 | - | 57,213,000 | $ | - | $ | 197,450 | ||||||||||||||||
InterOil Corp. (1) | 2,626,200 | - | - | 2,626,200 | - | 135,013 | ||||||||||||||||||
PT Sumber Alfaria Trijaya Tbk (1) | 274,541,000 | - | 36,273,000 | 238,268,000 | - | 130,287 | ||||||||||||||||||
Pharmacyclics, Inc. (1) | 3,845,871 | 781,429 | 327,826 | 4,299,474 | - | 119,353 | ||||||||||||||||||
Lions Gate Entertainment Corp. (1) | 9,100,000 | - | 1,100,000 | 8,000,000 | - | 111,360 | ||||||||||||||||||
Delticom AG | 939,921 | 7,000 | - | 946,921 | - | 100,906 | ||||||||||||||||||
Hittite Microwave Corp. (1) | 2,009,950 | - | 350,000 | 1,659,950 | - | 90,152 | ||||||||||||||||||
Dialog Semiconductor PLC (1) | 2,028,800 | 1,405,621 | - | 3,434,421 | - | 83,892 | ||||||||||||||||||
Brait SE (1) | 32,252,268 | 2,331,433 | 7,115,413 | 27,468,288 | - | 74,516 | ||||||||||||||||||
Vistaprint NV (1) | 1,670,000 | 190,000 | - | 1,860,000 | - | 71,889 | ||||||||||||||||||
Schweitzer-Mauduit International, Inc. | 445,000 | 583,500 | - | 1,028,500 | 227 | 71,028 | ||||||||||||||||||
Beacon Roofing Supply, Inc. (1) | 2,604,800 | 11,338 | - | 2,616,138 | - | 67,392 | ||||||||||||||||||
Emeritus Corp. (1) | 3,250,000 | 290,000 | - | 3,540,000 | - | 62,516 | ||||||||||||||||||
BELIMO Holding AG | 22,800 | 8,100 | - | 30,900 | - | 59,698 | ||||||||||||||||||
Pipavav Defence and Offshore Engineering Co. Ltd. (1) | 42,066,000 | - | 6,335,000 | 35,731,000 | - | 56,109 | ||||||||||||||||||
Angie's List, Inc. (1) (4) (5) | - | 2,261,888 | - | 2,261,888 | - | 37,173 | ||||||||||||||||||
Angie's List, Inc. (1) | - | 962,450 | - | 962,450 | - | 18,181 | ||||||||||||||||||
Angie's List, Inc., Series D, convertible preferred | 282,736 | - | 282,736 | - | - | - | ||||||||||||||||||
National Financial Partners Corp. (1) | 3,174,800 | - | - | 3,174,800 | - | 48,067 | ||||||||||||||||||
National Financial Partners Corp. 4.00% convertible notes 2017 | $ | 4,000,000 | - | - | $ | 4,000,000 | 80 | 5,435 | ||||||||||||||||
PT Ace Hardware Indonesia Tbk (6) | 74,365,500 | 30,024,500 | - | 104,390,000 | - | 50,802 | ||||||||||||||||||
Comstock Resources, Inc. (1) | 3,078,111 | - | - | 3,078,111 | - | 48,727 | ||||||||||||||||||
Gem Diamonds Ltd. (1) | 11,061,300 | - | - | 11,061,300 | - | 48,389 | ||||||||||||||||||
Goodpack Ltd. | 30,060,000 | - | - | 30,060,000 | 692 | 42,326 | ||||||||||||||||||
Goodpack Ltd., warrants, expire 2012 (1) | 5,272,000 | - | - | 5,272,000 | - | 4,446 | ||||||||||||||||||
Exponent, Inc. (1) | 936,400 | - | - | 936,400 | - | 45,434 | ||||||||||||||||||
Coupons.com Inc., Series B, convertible preferred (1) (4) (5) | 8,191,724 | - | - | 8,191,724 | - | 45,000 | ||||||||||||||||||
ArthroCare Corp. (1) | 1,445,400 | 159,200 | - | 1,604,600 | - | 43,084 | ||||||||||||||||||
Super Group Ltd. | 29,500,000 | - | - | 29,500,000 | - | 42,359 | ||||||||||||||||||
Coal of Africa Ltd. (1) | 36,442,569 | 9,150,000 | 2,867,569 | 42,725,000 | - | 42,028 | ||||||||||||||||||
Orthofix International NV (1) | 1,090,100 | 20,000 | - | 1,110,100 | - | 41,718 | ||||||||||||||||||
Quantum Corp. (1) | 12,568,897 | 1,130,200 | - | 13,699,097 | - | 35,892 | ||||||||||||||||||
Quantum Corp. 3.50% convertible notes 2015 | $ | 4,900,000 | - | - | $ | 4,900,000 | 86 | 4,961 | ||||||||||||||||
NuVasive, Inc. (1) | 1,786,936 | 591,000 | - | 2,377,936 | - | 40,044 | ||||||||||||||||||
Synageva BioPharma Corp. (1) | - | 1,101,873 | - | 1,101,873 | - | 39,524 | ||||||||||||||||||
Mood Media Corp. (1) (3) | 6,375,000 | - | - | 6,375,000 | - | 24,287 | ||||||||||||||||||
Mood Media Corp. (CDI) (GBP denominated) (1) (3) | 2,375,000 | 1,335,000 | - | 3,710,000 | - | 14,134 | ||||||||||||||||||
Domino's Pizza Enterprises Ltd. | 4,002,300 | - | - | 4,002,300 | 559 | 37,727 | ||||||||||||||||||
Borders & Southern Petroleum PLC (1) | 20,265,000 | 14,000,000 | - | 34,265,000 | - | 37,406 | ||||||||||||||||||
Northgate PLC (1) | 10,626,805 | - | - | 10,626,805 | - | 35,831 | ||||||||||||||||||
Cox and Kings (India) Ltd. | 8,542,900 | 2,049,100 | - | 10,592,000 | - | 33,900 | ||||||||||||||||||
Cox and Kings (India) Ltd. (GDR) (4) | 330,000 | - | - | 330,000 | - | 1,056 | ||||||||||||||||||
Manappuram Finance Ltd. | 54,812,814 | 3,180,000 | - | 57,992,814 | 587 | 34,663 | ||||||||||||||||||
CDON Group AB (1) | 3,828,000 | 236,563 | 221,647 | 3,842,916 | - | 32,819 | ||||||||||||||||||
CJ CGV Co., Ltd. | 1,235,000 | - | - | 1,235,000 | 268 | 28,884 | ||||||||||||||||||
Colony Financial, Inc. | 1,495,000 | 200,000 | - | 1,695,000 | 1,153 | 27,764 | ||||||||||||||||||
Comfort Systems USA, Inc. | 2,476,000 | - | - | 2,476,000 | 248 | 27,013 | ||||||||||||||||||
Ennis, Inc. | 1,733,692 | - | 74,016 | 1,659,676 | 537 | 26,256 | ||||||||||||||||||
Exillon Energy PLC (1) | 9,619,660 | - | - | 9,619,660 | - | 26,034 | ||||||||||||||||||
BrisConnections Unit Trusts (1) | 27,300,000 | - | - | 27,300,000 | - | 25,451 | ||||||||||||||||||
Falkland Oil and Gas Ltd. (1) | 14,225,000 | 10,000,000 | - | 24,225,000 | - | 24,993 | ||||||||||||||||||
Houston Wire & Cable Co. | 1,678,900 | - | - | 1,678,900 | 302 | 23,320 | ||||||||||||||||||
SPS Commerce, Inc. (1) | 777,000 | 61,500 | - | 838,500 | - | 22,539 | ||||||||||||||||||
Cadence Pharmaceuticals, Inc. (1) | 5,042,279 | 950,000 | - | 5,992,279 | - | 22,171 | ||||||||||||||||||
First Southern Bancorp, Inc. (1) (4) (5) | 1,344,915 | - | - | 1,344,915 | - | 12,911 | ||||||||||||||||||
First Southern Bancorp, Inc., Series C, convertible preferred (1) (4) (5) | 2,299 | - | - | 2,299 | - | 9,148 | ||||||||||||||||||
Standard Parking Corp. (1) | 1,048,600 | - | - | 1,048,600 | - | 21,496 | ||||||||||||||||||
Fluidigm Corp. (1) | 1,484,234 | - | 133,499 | 1,350,735 | - | 21,247 | ||||||||||||||||||
Frigoglass SAIC | 3,052,380 | - | - | 3,052,380 | - | 20,029 | ||||||||||||||||||
Powerland AG, non-registered shares (1) | 1,200,000 | - | - | 1,200,000 | - | 19,317 | ||||||||||||||||||
Autoneum Holding AG (1) | 298,000 | 28,606 | - | 326,606 | - | 18,434 | ||||||||||||||||||
Douglas Dynamics, Inc. | 1,175,000 | - | - | 1,175,000 | 482 | 16,156 | ||||||||||||||||||
Home Loan Servicing Solutions, Ltd. | - | 1,121,600 | - | 1,121,600 | 90 | 15,635 | ||||||||||||||||||
Greenko Group PLC (1) | 7,034,000 | 643,931 | - | 7,677,931 | - | 15,474 | ||||||||||||||||||
Home Federal Bancorp, Inc. | 1,384,249 | - | - | 1,384,249 | 152 | 14,022 | ||||||||||||||||||
Mvelaserve Ltd. | 8,572,000 | 622,800 | - | 9,194,800 | 419 | 13,784 | ||||||||||||||||||
Mahindra Lifespace Developers Ltd. | 2,157,380 | - | - | 2,157,380 | - | 13,505 | ||||||||||||||||||
POLYTEC Holding AG, non-registered shares (1) | 1,450,500 | - | - | 1,450,500 | - | 13,263 | ||||||||||||||||||
Ellie Mae, Inc. (1) (6) | 1,019,700 | 108,266 | - | 1,127,966 | - | 12,588 | ||||||||||||||||||
Immersion Corp. (1) | 2,254,000 | - | - | 2,254,000 | - | 12,307 | ||||||||||||||||||
Gran Colombia Gold SA (1) | 29,495,000 | 680,000 | - | 30,175,000 | - | 12,101 | ||||||||||||||||||
Gran Colombia Gold SA, warrants, expire 2015 (1) | 1,086,500 | - | - | 1,086,500 | - | 185 | ||||||||||||||||||
Mothercare PLC | 2,300,000 | 2,180,000 | - | 4,480,000 | 140 | 11,895 | ||||||||||||||||||
Savient Pharmaceuticals, Inc. (1) | 4,294,200 | 400,000 | - | 4,694,200 | - | 10,233 | ||||||||||||||||||
Savient Pharmaceuticals, Inc. 4.75% convertible notes 2018 | $ | 820,000 | - | - | $ | 820,000 | 19 | 344 | ||||||||||||||||
BG Medicine, Inc. (1) | 1,462,603 | - | - | 1,462,603 | - | 10,268 | ||||||||||||||||||
Green Packet Bhd. (1) | 52,599,216 | - | - | 52,599,216 | - | 9,873 | ||||||||||||||||||
Tilaknager Industries Ltd. | 8,890,000 | - | - | 8,890,000 | - | 9,720 | ||||||||||||||||||
Bloomsbury Publishing PLC | 5,405,000 | - | - | 5,405,000 | 77 | 9,423 | ||||||||||||||||||
Petrodorado Energy Ltd. (1) | 38,400,000 | - | - | 38,400,000 | - | 8,855 | ||||||||||||||||||
China High Precision Automation Group Ltd. (4) | 63,500,000 | 3,922,000 | - | 67,422,000 | 477 | 8,682 | ||||||||||||||||||
OnMobile Global Ltd. (1) | 7,184,110 | - | - | 7,184,110 | - | 8,475 | ||||||||||||||||||
ValueVision Media, Inc., Class A (1) | 3,846,293 | 29,000 | - | 3,875,293 | - | 8,022 | ||||||||||||||||||
U.S. Auto Parts Network, Inc. (1) | 1,980,000 | - | - | 1,980,000 | - | 7,148 | ||||||||||||||||||
Afferro Mining Inc. (1) | 6,460,000 | - | - | 6,460,000 | - | 6,768 | ||||||||||||||||||
Pacific Coal, SA (1) (3) | 17,000,000 | - | - | 17,000,000 | - | 5,965 | ||||||||||||||||||
Pacific Coal, SA (1) | - | 1,280,000 | - | 1,280,000 | - | 449 | ||||||||||||||||||
Pacific Coal, SA, warrants, expire 2016 (1) (3) | 8,500,000 | - | - | 8,500,000 | - | 213 | ||||||||||||||||||
Obtala Resources Ltd. (1) | 8,500,000 | - | 525,000 | 7,975,000 | - | 4,018 | ||||||||||||||||||
Obtala Resources Ltd. (1) (3) | 7,950,000 | - | 3,000,000 | 4,950,000 | - | 2,494 | ||||||||||||||||||
Talwalkars Better Value Fitness Ltd. | 1,446,000 | - | - | 1,446,000 | - | 4,341 | ||||||||||||||||||
School Specialty, Inc. (1) | 1,153,240 | - | - | 1,153,240 | - | 4,083 | ||||||||||||||||||
EACOM Timber Corp. (1) (3) | 26,200,000 | - | - | 26,200,000 | - | 2,889 | ||||||||||||||||||
Imagelinx PLC (1) | 20,935,714 | - | 250,000 | 20,685,714 | - | 248 | ||||||||||||||||||
CEC Unet PLC (1) (4) | 35,100,775 | - | - | 35,100,775 | - | - | ||||||||||||||||||
AAC Technologies Holdings Inc. (7) | 50,475,000 | 10,961,000 | 3,000,000 | 58,436,000 | - | - | ||||||||||||||||||
Cline Mining Corp. (1) (7) | 14,300,300 | - | 4,942,500 | 9,357,800 | - | - | ||||||||||||||||||
Compuware Corp. (1) (7) | 11,770,000 | - | 1,407,378 | 10,362,622 | - | - | ||||||||||||||||||
Cpl Resources PLC (7) | 2,465,986 | - | 2,465,986 | - | 84 | - | ||||||||||||||||||
Gevo, Inc. (1) (7) | 1,304,030 | 75,000 | 151,586 | 1,227,444 | - | - | ||||||||||||||||||
Hana Microelectronics PCL (7) | 53,925,000 | - | 23,000,000 | 30,925,000 | 1,004 | - | ||||||||||||||||||
Harvest Natural Resources, Inc. (1) (7) | 2,035,000 | - | 321,008 | 1,713,992 | - | - | ||||||||||||||||||
Harvest Natural Resources, Inc. 8.25% convertible notes 2013 (7) | $ | 3,000,000 | - | - | $ | 3,000,000 | 124 | - | ||||||||||||||||
Heritage Oil Ltd. (1) (7) | 13,488,000 | - | 1,870,000 | 11,618,000 | - | - | ||||||||||||||||||
ICG Group, Inc. (1) (7) | 3,096,000 | - | 1,959,000 | 1,137,000 | - | - | ||||||||||||||||||
Infotech Enterprises Ltd. (7) | 5,680,000 | - | 1,280,000 | 4,400,000 | 145 | - | ||||||||||||||||||
Integra LifeSciences Holdings Corp. (1) (7) | 1,429,793 | - | 390,000 | 1,039,793 | - | - | ||||||||||||||||||
Jaguar Mining Inc. (7) | 5,035,000 | - | 5,035,000 | - | - | - | ||||||||||||||||||
JSE Ltd. (7) | 4,745,245 | 355,000 | 5,100,245 | - | - | - | ||||||||||||||||||
Jumbo SA (7) | 6,754,932 | - | 1,189,793 | 5,565,139 | 1,584 | - | ||||||||||||||||||
Kapsch TrafficCom AG (7) | 653,561 | - | 145,360 | 508,201 | - | - | ||||||||||||||||||
National American University Holdings, Inc. (7) | 1,515,000 | - | 315,000 | 1,200,000 | 88 | - | ||||||||||||||||||
Ophir Energy PLC (1) (7) | 17,465,000 | 2,038,200 | 770,000 | 18,733,200 | - | - | ||||||||||||||||||
Pace PLC (6) (7) | 12,183,500 | 4,700,000 | 16,883,500 | - | 208 | - | ||||||||||||||||||
QSR Brands Bhd (7) | 14,905,000 | - | 760,400 | 14,144,600 | - | - | ||||||||||||||||||
Real Nutriceutical Group Ltd. (7) | 62,800,000 | - | 23,400,000 | 39,400,000 | - | - | ||||||||||||||||||
SinoTech Energy Ltd. (ADR) (7) | 3,820,900 | - | 3,820,900 | - | - | - | ||||||||||||||||||
Sirius Minerals PLC (1) (7) | 56,804,735 | - | 4,500,000 | 52,304,735 | - | - | ||||||||||||||||||
Talison Lithium Ltd. (1) (7) | 5,354,100 | - | 3,474,100 | 1,880,000 | - | - | ||||||||||||||||||
$ | 9,832 | $ | 3,017,407 |
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 Rule 144A or section 4(2) of 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 $691,576,000, which represented 3.44% of the net assets of the fund. | |||
(4) Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in "Other securities," was $187,474,000, which represented .93% of the net assets of the fund. | |||
(5) Acquired through a private placement 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 | ||||||||||
Coupons.com Inc., Series B, convertible preferred | 6/1/2011 | $ | 45,000 | $ | 45,000 | .22 | % | ||||||
Angie's List, Inc. | 3/15/2011 | 20,000 | 37,173 | .19 | |||||||||
First Southern Bancorp, Inc. | 12/17/2009 | 28,378 | 12,911 | .06 | |||||||||
First Southern Bancorp, Inc., Series C, convertible preferred | 12/17/2009 | 2,299 | 9,148 | .05 | |||||||||
Other restricted securities | 54,536 | 14,487 | .07 | ||||||||||
Total restricted securities | $ | 150,213 | $ | 118,719 | .59 | % |
(6) This security was an unaffiliated issuer in its initial period of acquisition at 9/30/2011; it was not publicly disclosed. | |||
(7) Unaffiliated issuer at 3/31/2012. | |||
Key to abbreviations | |||
ADR = American Depositary Receipts | |||
CDI = CREST Depository Interest | |||
GDR = Global Depositary Receipts | |||
GBP = British pounds | |||
See Notes to Financial Statements |
Financial statements
Statement of assets and liabilities | unaudited | |||||||
at March 31, 2012 | (dollars in thousands) | |||||||
Assets: | ||||||||
Investment securities, at value: | ||||||||
Unaffiliated issuers (cost: $13,153,758) | $ | 17,082,493 | ||||||
Affiliated issuers (cost: $2,864,074) | 3,017,407 | $ | 20,099,900 | |||||
Cash denominated in currencies other than U.S. dollars | ||||||||
(cost: $9,942) | 9,826 | |||||||
Cash | 636 | |||||||
Unrealized appreciation on open forward currency contracts | 134 | |||||||
Receivables for: | ||||||||
Sales of investments | 129,230 | |||||||
Sales of fund's shares | 19,162 | |||||||
Dividends and interest | 23,712 | 172,104 | ||||||
20,282,600 | ||||||||
Liabilities: | ||||||||
Payables for: | ||||||||
Purchases of investments | 122,051 | |||||||
Repurchases of fund's shares | 36,596 | |||||||
Investment advisory services | 10,806 | |||||||
Services provided by related parties | 9,349 | |||||||
Directors' deferred compensation | 2,197 | |||||||
Other | 498 | 181,497 | ||||||
Net assets at March 31, 2012 | $ | 20,101,103 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of capital stock | $ | 16,889,129 | ||||||
Distributions in excess of net investment income | (193,404 | ) | ||||||
Accumulated net realized loss | (677,076 | ) | ||||||
Net unrealized appreciation | 4,082,454 | |||||||
Net assets at March 31, 2012 | $ | 20,101,103 |
(dollars and shares in thousands, except per-share amounts) | ||||||||||||
Total authorized capital stock - 1,000,000 shares, $.01 par value (521,989 total shares outstanding) | ||||||||||||
Net assets | Shares outstanding | Net asset value per share | ||||||||||
Class A | $ | 13,980,957 | 360,470 | $ | 38.79 | |||||||
Class B | 262,834 | 7,176 | 36.63 | |||||||||
Class C | 826,637 | 22,777 | 36.29 | |||||||||
Class F-1 | 656,544 | 17,070 | 38.46 | |||||||||
Class F-2 | 323,271 | 8,324 | 38.83 | |||||||||
Class 529-A | 677,477 | 17,571 | 38.56 | |||||||||
Class 529-B | 35,713 | 965 | 37.00 | |||||||||
Class 529-C | 225,253 | 6,105 | 36.90 | |||||||||
Class 529-E | 37,640 | 990 | 38.04 | |||||||||
Class 529-F-1 | 52,300 | 1,354 | 38.62 | |||||||||
Class R-1 | 39,901 | 1,076 | 37.07 | |||||||||
Class R-2 | 680,129 | 18,347 | 37.07 | |||||||||
Class R-3 | 709,295 | 18,683 | 37.97 | |||||||||
Class R-4 | 554,772 | 14,398 | 38.53 | |||||||||
Class R-5 | 387,642 | 9,902 | 39.15 | |||||||||
Class R-6 | 650,738 | 16,781 | 38.78 | |||||||||
See Notes to Financial Statements |
Statement of operations | unaudited | |||||||
for the six months ended March 31, 2012 | (dollars in thousands) | |||||||
Investment income: | ||||||||
Income: | ||||||||
Dividends (net of non-U.S. taxes of $3,197; | ||||||||
also includes $9,523 from affiliates) | $ | 82,273 | ||||||
Interest (includes $309 from affiliates) | 6,804 | $ | 89,077 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 59,460 | |||||||
Distribution services | 27,642 | |||||||
Transfer agent services | 20,007 | |||||||
Administrative services | 1,416 | |||||||
Reports to shareholders | 1,004 | |||||||
Registration statement and prospectus | 207 | |||||||
Directors' compensation | 369 | |||||||
Auditing and legal | 35 | |||||||
Custodian | 1,696 | |||||||
State and local taxes | 255 | |||||||
Other | 578 | 112,669 | ||||||
Net investment loss | (23,592 | ) | ||||||
Net realized gain and unrealized appreciation | ||||||||
on investments, forward currency contracts and currency: | ||||||||
Net realized gain (loss) on: | ||||||||
Investments (net of non-U.S. taxes of $32; also includes $85,417 net loss from affiliates) | 442,422 | |||||||
Forward currency contracts | (779 | ) | ||||||
Currency transactions | (2,669 | ) | 438,974 | |||||
Net unrealized appreciation on: | ||||||||
Investments | 3,515,527 | |||||||
Forward currency contracts | 24 | |||||||
Currency translations | 813 | 3,516,364 | ||||||
Net realized gain and unrealized appreciation | ||||||||
on investments, forward currency contracts and currency | 3,955,338 | |||||||
Net increase in net assets resulting | ||||||||
from operations | $ | 3,931,746 | ||||||
(*) 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, 2012* | Year ended September 30, 2011 | |||||||
Operations: | ||||||||
Net investment (loss) income | $ | (23,592 | ) | $ | 34,121 | |||
Net realized gain on investments, forward currency contracts and currency transactions | 438,974 | 1,751,885 | ||||||
Net unrealized appreciation (depreciation) on investments, forward currency contracts and currency translations | 3,516,364 | (3,857,115 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 3,931,746 | (2,071,109 | ) | |||||
Dividends paid to shareholders from net investment income | (53,307 | ) | (282,965 | ) | ||||
Net capital share transactions | (831,323 | ) | (724,173 | ) | ||||
Total increase (decrease) in net assets | 3,047,116 | (3,078,247 | ) | |||||
Net assets: | ||||||||
Beginning of period | 17,053,987 | 20,132,234 | ||||||
End of period (including distributions in excess of | ||||||||
net investment income: $(193,404) and $(116,505), respectively) | $ | 20,101,103 | $ | 17,053,987 | ||||
*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. Shareholders approved a proposal to reorganize the fund from a Maryland corporation to a Delaware statutory trust. The reorganization may be completed in 2012; however, the fund reserves the right to delay the implementation.
The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes and six retirement plan share classes. The 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The retirement plan share classes (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. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations – Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.
Dividends and distributions to shareholders – Dividends and distributions paid to shareholders are recorded on the ex-dividend date.
Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors 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 |
Capital Research and Management Company ("CRMC"), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Methods and inputs – The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s 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 on 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 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 |
When the fund’s 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 on the previous page 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. Forward currency contracts are valued at the mean of representative quoted bid and asked prices, generally based on prices supplied by one or more pricing vendors.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund’s board of directors as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission ("SEC") rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as 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. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. 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.
Processes and structure– The fund’s board of directors has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair value process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of directors with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications – The fund’s investment adviser classifies the fund’s 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. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’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 tables present the fund’s valuation levels as of March 31, 2012 (dollars in thousands):
Investment securities: | Level 1(*) | Level 2 | Level 3 | Total | ||||||||||||
Common stocks: | ||||||||||||||||
Consumer discretionary | $ | 3,681,965 | $ | 1,056 | $ | 26 | $ | 3,683,047 | ||||||||
Industrials | 2,699,776 | 425 | - | 2,700,201 | ||||||||||||
Health care | 2,645,276 | - | - | 2,645,276 | ||||||||||||
Information technology | 2,346,068 | 63,809 | 8,809 | 2,418,686 | ||||||||||||
Financials | 1,752,466 | 4,544 | 27,245 | 1,784,255 | ||||||||||||
Materials | 1,400,406 | - | 1,933 | 1,402,339 | ||||||||||||
Energy | 1,338,814 | 4,647 | - | 1,343,461 | ||||||||||||
Consumer staples | 1,008,228 | - | - | 1,008,228 | ||||||||||||
Utilities | 361,127 | - | - | 361,127 | ||||||||||||
Telecommunication services | 239,682 | - | - | 239,682 | ||||||||||||
Miscellaneous | 1,002,971 | - | - | 1,002,971 | ||||||||||||
Preferred stocks | 16,450 | - | - | 16,450 | ||||||||||||
Warrants | 4,878 | - | 4 | 4,882 | ||||||||||||
Convertible securities | - | 35,513 | 54,148 | 89,661 | ||||||||||||
Bonds & notes | - | 48,772 | - | 48,772 | ||||||||||||
Short-term securities | - | 1,350,862 | - | 1,350,862 | ||||||||||||
Total | $ | 18,498,107 | $ | 1,509,628 | $ | 92,165 | $ | 20,099,900 | ||||||||
(*) Securities with a market value of $8,053,931,000, which represented 40.07% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. | ||||||||||||||||
Forward currency contracts(†): | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Unrealized appreciation on open forward currency contracts | $ | - | $ | 134 | $ | - | $ | 134 | ||||||||
(†) Forward currency contracts are not included in the investment portfolio. |
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 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 than about larger 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, economic or market developments in the countries or regions in which the issuer operates. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. 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, and may be more difficult to value, than those in the U.S. The risks of investing outside the U.S. may be heightened in connection with investments in emerging market countries.
Management – The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and 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 investment 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, 2012, 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 2007, by state tax authorities for tax years before 2006 and by tax authorities outside the U.S. for tax years before 2004.
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.; cost of investments sold; net capital losses; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.
The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of September 30, 2011, the components of distributable earnings on a tax basis were as follows:
(dollars in thousands) | ||||
Undistributed ordinary income | $ | 6,478 | ||
Post-October currency loss deferrals (realized during the period November 1, 2010, through September 30, 2011)* | (5,436 | ) | ||
Capital loss carryforward expiring 2018† | (1,092,682 | ) | ||
*These deferrals are considered incurred in the subsequent year. | ||||
†The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains. |
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.
As of March 31, 2012, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:
(dollars in thousands) | ||||
Gross unrealized appreciation on investment securities | 5,502,763 | |||
Gross unrealized depreciation on investment securities | (1,583,644 | ) | ||
Net unrealized appreciation on investment securities | 3,919,119 | |||
Cost of investment securities | 16,180,781 |
Tax-basis distributions paid to shareholders from ordinary income were as follows (dollars in thousands):
Share class | Six months ended March 31, 2012 | Year ended September 30, 2011 | ||||||
Class A | $ | 38,933 | $ | 210,258 | ||||
Class B | - | 2,673 | ||||||
Class C | - | 7,653 | ||||||
Class F-1 | 1,913 | 10,417 | ||||||
Class F-2 | 1,886 | 4,577 | ||||||
Class 529-A | 1,827 | 8,269 | ||||||
Class 529-B | - | 297 | ||||||
Class 529-C | - | 1,537 | ||||||
Class 529-E | 6 | 393 | ||||||
Class 529-F-1 | 243 | 789 | ||||||
Class R-1 | - | 384 | ||||||
Class R-2 | - | 5,629 | ||||||
Class R-3 | - | 8,347 | ||||||
Class R-4 | 1,787 | 7,568 | ||||||
Class R-5 | 2,345 | 6,317 | ||||||
Class R-6 | 4,367 | 7,857 | ||||||
Total | $ | 53,307 | $ | 282,965 |
6. | Fees and transactions with related parties |
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 fund has an investment advisory and service agreement with CRMC that 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, 2012, the investment advisory services fee was $59,460,000, which was equivalent to an annualized rate of 0.641% of average daily net assets.
Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:
Distribution services – The fund has 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, distribution-related expenses include 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, 2012, 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 shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
During the period October 1, 2011, through December 31, 2011, only Class A and B shares were subject to the shareholder services agreement with AFS. During this period, AFS and other third parties were compensated for providing transfer agent services to Class C, F, R and 529 shares through the fees paid by the fund to CRMC under the fund’s administrative services agreement with CRMC as described in the administrative services section below; CRMC paid for any transfer agent services expenses in excess of 0.10% of the respective average daily net assets of each of such share classes.
Effective January 1, 2012, the shareholder services agreement with AFS was modified to include Class C, F, R and 529 shares and payment for transfer agent services for such classes under the administrative services agreement terminated. Under this structure, transfer agent services expenses for some classes may exceed 0.10% of average daily net assets, resulting in an increase in expenses paid by some share classes.
For the six months ended March 31, 2012, the total transfer agent services fee paid under these agreements was $20,007,000, of which $18,660,000 was paid by the fund to AFS and $1,347,000 was paid by the fund to CRMC through its administrative services agreement with the fund. Amounts paid to CRMC by the fund were then paid by CRMC to AFS and other third parties.
Administrative services – The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, F, R and 529 shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders.
During the period October 1, 2011, through December 31, 2011, the agreement applied only to Class C, F, R and 529 shares. The agreement also required CRMC to arrange for the provision of transfer agent services for such share classes, which paid CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) of their respective average daily net assets. During this period, up to 0.05% of these fees were used to compensate CRMC for performing administrative services; all other amounts paid under this agreement were used to compensate AFS and other third parties for transfer agent services.
Effective January 1, 2012, the administrative services agreement with CRMC was modified to include Class A shares. Under the revised agreement, Class A shares pay an annual fee of 0.01% and Class C, F, R and 529 shares pay an annual fee of 0.05% of their respective average daily net assets to CRMC for administrative services. Fees for transfer agent services are no longer included as part of the administrative services fee paid by the fund to CRMC.
For the six months ended March 31, 2012, total fees paid to CRMC for performing administrative services were $1,416,000.
529 plan services – Each 529 share class is subject to service fees to compensate 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. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.
Class-specific expenses under the agreements described above for the six months ended March 31, 2012, were as follows (dollars in thousands):
Share class | Distribution services | Transfer agent services | Administrative services | 529 plan services | ||||||||||||
Class A | $ | 15,031 | $ | 15,137 | $ | 334 | Not applicable | |||||||||
Class B | 1,330 | 324 | Not applicable | Not applicable | ||||||||||||
Class C | 3,861 | 871 | 52 | Not applicable | ||||||||||||
Class F-1 | 768 | 440 | 73 | Not applicable | ||||||||||||
Class F-2 | Not applicable | 154 | 70 | Not applicable | ||||||||||||
Class 529-A | 617 | 495 | 111 | $ | 304 | |||||||||||
Class 529-B | 180 | 36 | 6 | 18 | ||||||||||||
Class 529-C | 1,019 | 184 | 37 | 102 | ||||||||||||
Class 529-E | 85 | 21 | 7 | 17 | ||||||||||||
Class 529-F-1 | - | 40 | 9 | 24 | ||||||||||||
Class R-1 | 184 | 26 | 11 | Not applicable | ||||||||||||
Class R-2 | 2,341 | 1,332 | 162 | Not applicable | ||||||||||||
Class R-3 | 1,607 | 626 | 173 | Not applicable | ||||||||||||
Class R-4 | 619 | 236 | 137 | Not applicable | ||||||||||||
Class R-5 | Not applicable | 83 | 89 | Not applicable | ||||||||||||
Class R-6 | Not applicable | 2 | 145 | Not applicable | ||||||||||||
Total class-specific expenses | $ | 27,642 | $ | 20,007 | $ | 1,416 | $ | 465 |
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 $369,000, shown on the accompanying financial statements, includes $208,000 in current fees (either paid in cash or deferred) and a net increase of $161,000 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 | Repurchases(*) | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended March 31, 2012 | ||||||||||||||||||||||||||||||||
Class A | $ | 607,537 | 17,166 | $ | 38,004 | 1,144 | $ | (1,295,215 | ) | (37,091 | ) | $ | (649,674 | ) | (18,781 | ) | ||||||||||||||||
Class B | 3,971 | 117 | - | - | (62,522 | ) | (1,887 | ) | (58,551 | ) | (1,770 | ) | ||||||||||||||||||||
Class C | 40,851 | 1,229 | - | - | (100,714 | ) | (3,080 | ) | (59,863 | ) | (1,851 | ) | ||||||||||||||||||||
Class F-1 | 85,465 | 2,448 | 1,888 | 57 | (143,407 | ) | (4,152 | ) | (56,054 | ) | (1,647 | ) | ||||||||||||||||||||
Class F-2 | 44,673 | 1,274 | 1,659 | 50 | (51,146 | ) | (1,442 | ) | (4,814 | ) | (118 | ) | ||||||||||||||||||||
Class 529-A | 49,732 | 1,425 | 1,827 | 55 | (42,356 | ) | (1,219 | ) | 9,203 | 261 | ||||||||||||||||||||||
Class 529-B | 533 | 16 | - | - | (8,450 | ) | (254 | ) | (7,917 | ) | (238 | ) | ||||||||||||||||||||
Class 529-C | 14,922 | 445 | - | - | (17,927 | ) | (539 | ) | (3,005 | ) | (94 | ) | ||||||||||||||||||||
Class 529-E | 2,592 | 76 | 6 | - | (3,076 | ) | (89 | ) | (478 | ) | (13 | ) | ||||||||||||||||||||
Class 529-F-1 | 5,289 | 152 | 241 | 7 | (5,768 | ) | (168 | ) | (238 | ) | (9 | ) | ||||||||||||||||||||
Class R-1 | 4,406 | 130 | - | - | (6,965 | ) | (208 | ) | (2,559 | ) | (78 | ) | ||||||||||||||||||||
Class R-2 | 85,060 | 2,515 | - | - | (117,322 | ) | (3,499 | ) | (32,262 | ) | (984 | ) | ||||||||||||||||||||
Class R-3 | 106,762 | 3,094 | - | - | (119,302 | ) | (3,477 | ) | (12,540 | ) | (383 | ) | ||||||||||||||||||||
Class R-4 | 86,281 | 2,470 | 1,787 | 54 | (78,028 | ) | (2,247 | ) | 10,040 | 277 | ||||||||||||||||||||||
Class R-5 | 40,619 | 1,143 | 2,339 | 70 | (41,510 | ) | (1,180 | ) | 1,448 | 33 | ||||||||||||||||||||||
Class R-6 | 60,907 | 1,811 | 4,365 | 132 | (29,331 | ) | (826 | ) | 35,941 | 1,117 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 1,239,600 | 35,511 | $ | 52,116 | 1,569 | $ | (2,123,039 | ) | (61,358 | ) | $ | (831,323 | ) | (24,278 | ) | ||||||||||||||||
Year ended September 30, 2011 | ||||||||||||||||||||||||||||||||
Class A | $ | 1,922,326 | 50,077 | $ | 203,807 | 5,292 | $ | (3,014,552 | ) | (79,055 | ) | $ | (888,419 | ) | (23,686 | ) | ||||||||||||||||
Class B | 24,791 | 681 | 2,622 | 72 | (127,584 | ) | (3,527 | ) | (100,171 | ) | (2,774 | ) | ||||||||||||||||||||
Class C | 171,892 | 4,755 | 7,422 | 205 | (216,944 | ) | (6,076 | ) | (37,630 | ) | (1,116 | ) | ||||||||||||||||||||
Class F-1 | 260,253 | 6,850 | 9,871 | 259 | (254,515 | ) | (6,801 | ) | 15,609 | 308 | ||||||||||||||||||||||
Class F-2 | 137,267 | 3,565 | 3,911 | 101 | (78,246 | ) | (2,059 | ) | 62,932 | 1,607 | ||||||||||||||||||||||
Class 529-A | 130,579 | 3,422 | 8,269 | 215 | (64,866 | ) | (1,714 | ) | 73,982 | 1,923 | ||||||||||||||||||||||
Class 529-B | 3,244 | 88 | 297 | 8 | (14,777 | ) | (405 | ) | (11,236 | ) | (309 | ) | ||||||||||||||||||||
Class 529-C | 44,815 | 1,217 | 1,536 | 42 | (27,072 | ) | (745 | ) | 19,279 | 514 | ||||||||||||||||||||||
Class 529-E | 7,209 | 191 | 393 | 10 | (3,528 | ) | (95 | ) | 4,074 | 106 | ||||||||||||||||||||||
Class 529-F-1 | 13,390 | 349 | 789 | 21 | (12,312 | ) | (326 | ) | 1,867 | 44 | ||||||||||||||||||||||
Class R-1 | 14,215 | 388 | 380 | 10 | (18,364 | ) | (501 | ) | (3,769 | ) | (103 | ) | ||||||||||||||||||||
Class R-2 | 206,507 | 5,625 | 5,628 | 152 | (264,845 | ) | (7,196 | ) | (52,710 | ) | (1,419 | ) | ||||||||||||||||||||
Class R-3 | 257,737 | 6,846 | 8,344 | 221 | (263,153 | ) | (7,031 | ) | 2,928 | 36 | ||||||||||||||||||||||
Class R-4 | 185,035 | 4,848 | 7,564 | 198 | (173,952 | ) | (4,563 | ) | 18,647 | 483 | ||||||||||||||||||||||
Class R-5 | 133,964 | 3,502 | 6,301 | 163 | (127,944 | ) | (3,385 | ) | 12,321 | 280 | ||||||||||||||||||||||
Class R-6 | 185,314 | 4,927 | 7,857 | 204 | (35,048 | ) | (917 | ) | 158,123 | 4,214 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 3,698,538 | 97,331 | $ | 274,991 | 7,173 | $ | (4,697,702 | ) | (124,396 | ) | $ | (724,173 | ) | (19,892 | ) | ||||||||||||||||
*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 $2,967,188,000 and $3,489,037,000, respectively, during the six months ended March 31, 2012.
9. | Forward currency contracts |
The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.
On a daily basis, the fund’s investment adviser values forward currency contracts based on the applicable exchange rate and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the fund’s statement of operations.
As of March 31, 2012, the fund had an open forward currency contract to sell currency, as shown in the following table. The open forward currency contract shown is generally indicative of the level of activity over the prior 12-month period.
(amounts in thousands) | ||||||
Contract amount | Unrealized appreciation at | |||||
Settlement date | Counterparty | Receive | Deliver | 3/31/2012 | ||
Sales: | ||||||
Australian dollars | 4/30/2012 | Barclays Bank PLC | $9,217 | A$8,800 | $ 134 |
Financial highlights
Income (loss) from investment operations(1) | 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(2)(3) | 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(3) | Ratio of net (loss) income to average net assets(3) | |||||||||||||||||||||||||||||||||||||||||
Class A: | Six months ended 3/31/2012(4)(5) | $ | 31.45 | $ | (.03 | ) | $ | 7.48 | $ | 7.45 | $ | (.11 | ) | $ | - | $ | (.11 | ) | $ | 38.79 | 23.73 | % | $ | 13,981 | 1.15 | %(6) | 1.15 | %(6) | (.19 | )%(6) | |||||||||||||||||||||||
Year ended 9/30/2011 | 35.82 | .09 | (3.94 | ) | (3.85 | ) | (.52 | ) | - | (.52 | ) | 31.45 | (11.01 | ) | 11,926 | 1.09 | 1.09 | .23 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class B: | Six months ended 3/31/2012(4)(5) | 29.72 | (.16 | ) | 7.07 | 6.91 | - | - | - | 36.63 | 23.25 | 263 | 1.92 | (6) | 1.92 | (6) | (.97 | )(6) | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 33.87 | (.20 | ) | (3.71 | ) | (3.91 | ) | (.24 | ) | - | (.24 | ) | 29.72 | (11.68 | ) | 266 | 1.86 | 1.86 | (.55 | ) | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class C: | Six months ended 3/31/2012(4)(5) | 29.44 | (.16 | ) | 7.01 | 6.85 | - | - | - | 36.29 | 23.27 | 827 | 1.92 | (6) | 1.92 | (6) | (.96 | )(6) | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 33.61 | (.19 | ) | (3.69 | ) | (3.88 | ) | (.29 | ) | - | (.29 | ) | 29.44 | (11.70 | ) | 725 | 1.86 | 1.86 | (.53 | ) | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class F-1: | Six months ended 3/31/2012(4)(5) | 31.18 | (.02 | ) | 7.41 | 7.39 | (.11 | ) | - | (.11 | ) | 38.46 | 23.76 | 656 | 1.10 | (6) | 1.10 | (6) | (.14 | )(6) | |||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 35.53 | .10 | (3.92 | ) | (3.82 | ) | (.53 | ) | - | (.53 | ) | 31.18 | (11.02 | ) | 583 | 1.08 | 1.08 | .25 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class F-2: | Six months ended 3/31/2012(4)(5) | 31.54 | .02 | 7.49 | 7.51 | (.22 | ) | - | (.22 | ) | 38.83 | 23.94 | 323 | .83 | (6) | .83 | (6) | .13 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 35.93 | .20 | (3.96 | ) | (3.76 | ) | (.63 | ) | - | (.63 | ) | 31.54 | (10.79 | ) | 266 | .82 | .82 | .53 | |||||||||||||||||||||||||||||||||||
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(4) | 33.66 | .08 | (5.27 | ) | (5.19 | ) | - | - | - | 28.47 | (15.42 | ) | 8 | .14 | .13 | .26 | |||||||||||||||||||||||||||||||||||||
Class 529-A: | Six months ended 3/31/2012(4)(5) | 31.27 | (.04 | ) | 7.44 | 7.40 | (.11 | ) | - | (.11 | ) | 38.56 | 23.71 | 677 | 1.18 | (6) | 1.18 | (6) | (.22 | )(6) | |||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 35.63 | .08 | (3.92 | ) | (3.84 | ) | (.52 | ) | - | (.52 | ) | 31.27 | (11.05 | ) | 541 | 1.14 | 1.14 | .20 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class 529-B: | Six months ended 3/31/2012(4)(5) | 30.03 | (.18 | ) | 7.15 | 6.97 | - | - | - | 37.00 | 23.21 | 36 | 2.01 | (6) | 2.01 | (6) | (1.06 | )(6) | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 34.23 | (.23 | ) | (3.76 | ) | (3.99 | ) | (.21 | ) | - | (.21 | ) | 30.03 | (11.78 | ) | 36 | 1.95 | 1.95 | (.63 | ) | |||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||
Class 529-C: | Six months ended 3/31/2012(4)(5) | 29.95 | (.17 | ) | 7.12 | 6.95 | - | - | - | 36.90 | 23.21 | 225 | 1.99 | (6) | 1.99 | (6) | (1.03 | )(6) | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 34.19 | (.22 | ) | (3.76 | ) | (3.98 | ) | (.26 | ) | - | (.26 | ) | 29.95 | (11.77 | ) | 186 | 1.94 | 1.94 | (.61 | ) | |||||||||||||||||||||||||||||||||
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 | ) | |||||||||||||||||||||||||||||||||||
Class 529-E: | Six months ended 3/31/2012(4)(5) | $ | 30.79 | $ | (.08 | ) | $ | 7.34 | $ | 7.26 | $ | (.01 | ) | $ | - | $ | (.01 | ) | $ | 38.04 | 23.57 | % | $ | 38 | 1.45 | %(6) | 1.45 | %(6) | (.48 | )%(6) | |||||||||||||||||||||||
Year ended 9/30/2011 | 35.11 | (.03 | ) | (3.87 | ) | (3.90 | ) | (.42 | ) | - | (.42 | ) | 30.79 | (11.32 | ) | 31 | 1.43 | 1.43 | (.08 | ) | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class 529-F-1: | Six months ended 3/31/2012(4)(5) | 31.35 | - | (7) | 7.45 | 7.45 | (.18 | ) | - | (.18 | ) | 38.62 | 23.85 | 52 | .98 | (6) | .98 | (6) | (.02 | )(6) | |||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 35.72 | .15 | (3.94 | ) | (3.79 | ) | (.58 | ) | - | (.58 | ) | 31.35 | (10.90 | ) | 43 | .94 | .94 | .40 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-1: | Six months ended 3/31/2012(4)(5) | 30.07 | (.15 | ) | 7.15 | 7.00 | - | - | - | 37.07 | 23.28 | 40 | 1.87 | (6) | 1.87 | (6) | (.91 | )(6) | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 34.32 | (.19 | ) | (3.77 | ) | (3.96 | ) | (.29 | ) | - | (.29 | ) | 30.07 | (11.68 | ) | 35 | 1.84 | 1.84 | (.52 | ) | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-2: | Six months ended 3/31/2012(4)(5) | 30.07 | (.16 | ) | 7.16 | 7.00 | - | - | - | 37.07 | 23.28 | 680 | 1.90 | (6) | 1.90 | (6) | (.94 | )(6) | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 34.30 | (.20 | ) | (3.76 | ) | (3.96 | ) | (.27 | ) | - | (.27 | ) | 30.07 | (11.72 | ) | 581 | 1.86 | 1.86 | (.54 | ) | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-3: | Six months ended 3/31/2012(4)(5) | 30.73 | (.08 | ) | 7.32 | 7.24 | - | - | - | 37.97 | 23.56 | 709 | 1.43 | (6) | 1.43 | (6) | (.47 | )(6) | |||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 35.03 | (.03 | ) | (3.84 | ) | (3.87 | ) | (.43 | ) | - | (.43 | ) | 30.73 | (11.28 | ) | 586 | 1.41 | 1.41 | (.08 | ) | |||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-4: | Six months ended 3/31/2012(4)(5) | 31.25 | (.02 | ) | 7.43 | 7.41 | (.13 | ) | - | (.13 | ) | 38.53 | 23.77 | 555 | 1.08 | (6) | 1.08 | (6) | (.12 | )(6) | |||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 35.60 | .10 | (3.91 | ) | (3.81 | ) | (.54 | ) | - | (.54 | ) | 31.25 | (10.98 | ) | 441 | 1.07 | 1.07 | .26 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-5: | Six months ended 3/31/2012(4)(5) | 31.80 | .03 | 7.56 | 7.59 | (.24 | ) | - | (.24 | ) | 39.15 | 24.00 | 388 | .78 | (6) | .78 | (6) | .18 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 36.21 | .22 | (3.99 | ) | (3.77 | ) | (.64 | ) | - | (.64 | ) | 31.80 | (10.74 | ) | 314 | .77 | .77 | .56 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-6: | Six months ended 3/31/2012(4)(5) | 31.52 | .04 | 7.48 | 7.52 | (.26 | ) | - | (.26 | ) | 38.78 | 24.00 | 651 | .73 | (6) | .73 | (6) | .23 | (6) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2011 | 35.89 | .24 | (3.96 | ) | (3.72 | ) | (.65 | ) | - | (.65 | ) | 31.52 | (10.68 | ) | 494 | .72 | .72 | .64 | |||||||||||||||||||||||||||||||||||
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(4) | 22.33 | .13 | 7.85 | 7.98 | - | - | - | 30.31 | 35.74 | 317 | .33 | .33 | .51 |
Six months ended March 31, | Year ended September 30 | |||||||||||||||||||||||
2012(4)(5) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 18 | % | 39 | % | 45 | % | 56 | % | 50 | % | 48 | % |
(1)Based on average shares outstanding. | |||||||
(2)Total returns exclude any applicable sales charges, including contingent deferred sales charges. | |||||||
(3)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. | |||||||
(4)Based on operations for the period shown and, accordingly, is not representative of a full year. | |||||||
(5)Unaudited. | |||||||
(6)Annualized. | |||||||
(7)Amount less than $.01. | |||||||
See Notes to Financial Statements |
Expense example
unaudited
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (October 1, 2011, through March 31, 2012).
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 10/1/2011 | Ending account value 3/31/2012 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A -- actual return | $ | 1,000.00 | $ | 1,237.32 | $ | 6.43 | 1.15 | % | ||||||||
Class A -- assumed 5% return | 1,000.00 | 1,019.25 | 5.81 | 1.15 | ||||||||||||
Class B -- actual return | 1,000.00 | 1,232.49 | 10.72 | 1.92 | ||||||||||||
Class B -- assumed 5% return | 1,000.00 | 1,015.40 | 9.67 | 1.92 | ||||||||||||
Class C -- actual return | 1,000.00 | 1,232.66 | 10.72 | 1.92 | ||||||||||||
Class C -- assumed 5% return | 1,000.00 | 1,015.40 | 9.67 | 1.92 | ||||||||||||
Class F-1 -- actual return | 1,000.00 | 1,237.57 | 6.15 | 1.10 | ||||||||||||
Class F-1 -- assumed 5% return | 1,000.00 | 1,019.50 | 5.55 | 1.10 | ||||||||||||
Class F-2 -- actual return | 1,000.00 | 1,239.38 | 4.65 | .83 | ||||||||||||
Class F-2 -- assumed 5% return | 1,000.00 | 1,020.85 | 4.19 | .83 | ||||||||||||
Class 529-A -- actual return | 1,000.00 | 1,237.08 | 6.60 | 1.18 | ||||||||||||
Class 529-A -- assumed 5% return | 1,000.00 | 1,019.10 | 5.96 | 1.18 | ||||||||||||
Class 529-B -- actual return | 1,000.00 | 1,232.10 | 11.22 | 2.01 | ||||||||||||
Class 529-B -- assumed 5% return | 1,000.00 | 1,014.95 | 10.13 | 2.01 | ||||||||||||
Class 529-C -- actual return | 1,000.00 | 1,232.05 | 11.10 | 1.99 | ||||||||||||
Class 529-C -- assumed 5% return | 1,000.00 | 1,015.05 | 10.02 | 1.99 | ||||||||||||
Class 529-E -- actual return | 1,000.00 | 1,235.69 | 8.10 | 1.45 | ||||||||||||
Class 529-E -- assumed 5% return | 1,000.00 | 1,017.75 | 7.31 | 1.45 | ||||||||||||
Class 529-F-1 -- actual return | 1,000.00 | 1,238.47 | 5.48 | .98 | ||||||||||||
Class 529-F-1 -- assumed 5% return | 1,000.00 | 1,020.10 | 4.95 | .98 | ||||||||||||
Class R-1 -- actual return | 1,000.00 | 1,232.80 | 10.44 | 1.87 | ||||||||||||
Class R-1 -- assumed 5% return | 1,000.00 | 1,015.65 | 9.42 | 1.87 | ||||||||||||
Class R-2 -- actual return | 1,000.00 | 1,232.80 | 10.61 | 1.90 | ||||||||||||
Class R-2 -- assumed 5% return | 1,000.00 | 1,015.50 | 9.57 | 1.90 | ||||||||||||
Class R-3 -- actual return | 1,000.00 | 1,235.58 | 7.99 | 1.43 | ||||||||||||
Class R-3 -- assumed 5% return | 1,000.00 | 1,017.85 | 7.21 | 1.43 | ||||||||||||
Class R-4 -- actual return | 1,000.00 | 1,237.70 | 6.04 | 1.08 | ||||||||||||
Class R-4 -- assumed 5% return | 1,000.00 | 1,019.60 | 5.45 | 1.08 | ||||||||||||
Class R-5 -- actual return | 1,000.00 | 1,239.96 | 4.37 | .78 | ||||||||||||
Class R-5 -- assumed 5% return | 1,000.00 | 1,021.10 | 3.94 | .78 | ||||||||||||
Class R-6 -- actual return | 1,000.00 | 1,240.03 | 4.09 | .73 | ||||||||||||
Class R-6 -- assumed 5% return | 1,000.00 | 1,021.35 | 3.69 | .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 366 (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, 2012: | ||||||||||||
10 years/ | ||||||||||||
1 year | 5 years | Life of class1 | ||||||||||
Class B shares2 | ||||||||||||
Reflecting applicable contingent deferred sales charge | ||||||||||||
(CDSC), maximum of 5%, payable only if shares are | ||||||||||||
sold within six years of purchase | –8.09 | % | 0.35 | % | 7.52 | % | ||||||
Not reflecting CDSC | –3.25 | 0.71 | 7.52 | |||||||||
Class C shares | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
if shares are sold within one year of purchase | –4.22 | 0.72 | 7.35 | |||||||||
Not reflecting CDSC | –3.25 | 0.72 | 7.35 | |||||||||
Class F-1 shares3 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | –2.46 | 1.51 | 8.19 | |||||||||
Class F-2 shares3 — first sold 8/1/08 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | –2.22 | — | 4.93 | |||||||||
Class 529-A shares4 | ||||||||||||
Reflecting 5.75% maximum sales charge | –8.14 | 0.26 | 7.52 | |||||||||
Not reflecting maximum sales charge | –2.54 | 1.45 | 8.16 | |||||||||
Class 529-B shares2,4 | ||||||||||||
Reflecting applicable CDSC, maximum of 5%, payable | ||||||||||||
only if shares are sold within six years of purchase | –8.15 | 0.27 | 7.41 | |||||||||
Not reflecting CDSC | –3.32 | 0.63 | 7.41 | |||||||||
Class 529-C shares4 | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
if shares are sold within one year of purchase | –4.29 | 0.63 | 7.25 | |||||||||
Not reflecting CDSC | –3.33 | 0.63 | 7.25 | |||||||||
Class 529-E shares3,4 | –2.79 | 1.16 | 7.82 | |||||||||
Class 529-F-1 shares3,4 — first sold 9/17/02 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | –2.35 | 1.65 | 11.59 |
1Applicable to Class F-2 and 529-F-1 shares only. All other share classes reflect 10-year results. |
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. When applicable, investment results reflect fee waivers, without which results would have been lower. See americanfunds.com for more information.
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 investment objectives, risks, charges and expenses. This and other important information is contained in the fund 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 800/421-4225 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, 2012, 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, 2012, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
The American Funds difference
Since 1931, American Funds has helped investors pursue long-term investment success. Our consistent approach — in combination with a proven system — has resulted in a superior long-term track record.
Consistent approach
We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. Our portfolio counselors average 25 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1
Proven system
Our system combines individual accountability with teamwork. Each fund is divided into portions that are managed by investment professionals with varied backgrounds, ages and investment styles. An extensive global research effort is the backbone of our system.
Superior long-term track record
Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 60% of 10-year periods and 67% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3
1 As of 12/31/11. |
2 Based on Class A share results for periods through 12/31/11. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date. |
3 Based on management fees for the 20-year period ended 12/31/11 versus comparable Lipper categories, excluding funds of funds. |
American Funds span a range of investment objectives
•Growth funds |
Emphasis on long-term growth through stocks |
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 |
Emphasis on long-term growth and dividends through stocks |
American Mutual Fund® |
Capital World Growth and Income Fund® |
Fundamental InvestorsSM |
International Growth and Income FundSM |
The Investment Company of America® |
Washington Mutual Investors FundSM |
•Equity-income funds |
Emphasis on above-average income and growth through stocks and/or bonds |
Capital Income Builder® |
The Income Fund of America® |
•Balanced funds |
Emphasis on long-term growth and current income through stocks and bonds |
American Balanced Fund® |
American Funds Global Balanced FundSM |
•Bond funds |
Emphasis on current income through bonds |
American Funds Mortgage Fund® |
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 |
Emphasis on tax-exempt current income through municipal bonds |
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 York® |
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 Portfolio SeriesSM |
American Funds Global Growth PortfolioSM |
American Funds Growth PortfolioSM |
American Funds Growth and Income PortfolioSM |
American Funds Balanced PortfolioSM |
American Funds Income PortfolioSM |
American Funds Tax-Advantaged Income PortfolioSM |
American Funds Preservation PortfolioSM |
American Funds Tax-Exempt Preservation PortfolioSM |
•American Funds Target Date Retirement Series® |
American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust
Lit. No. MFGESR-935-0512P
Litho in USA BBC/ALD/8094-S28732
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, 2012
unaudited
Common stocks — 92.48% | Shares | Value (000) | ||||||
CONSUMER DISCRETIONARY — 18.32% | ||||||||
lululemon athletica inc.1 | 2,442,100 | $ | 182,376 | |||||
Mr Price Group Ltd. | 10,577,613 | 130,086 | ||||||
Virgin Media Inc. | 5,062,500 | 126,461 | ||||||
Chipotle Mexican Grill, Inc.1 | 298,000 | 124,564 | ||||||
Lions Gate Entertainment Corp.1,2 | 8,000,000 | 111,360 | ||||||
Delticom AG2 | 946,921 | 100,906 | ||||||
Paddy Power PLC | 1,546,226 | 97,377 | ||||||
DSW Inc., Class A | 1,557,000 | 85,277 | ||||||
Liberty Media Corp., Class A1 | 938,912 | 82,765 | ||||||
TOD’S SpA | 718,225 | 80,799 | ||||||
CTC Media, Inc. | 6,787,000 | 78,933 | ||||||
CarMax, Inc.1 | 2,257,000 | 78,205 | ||||||
Tesla Motors, Inc.1 | 1,916,355 | 71,365 | ||||||
Tiffany & Co. | 947,000 | 65,466 | ||||||
ASOS PLC1 | 2,269,955 | 64,701 | ||||||
Statoil Fuel & Retail ASA | 9,200,000 | 58,643 | ||||||
Minth Group Ltd. | 48,240,000 | 55,908 | ||||||
Melco Crown Entertainment Ltd. (ADR)1 | 4,000,000 | 54,440 | ||||||
John Wiley & Sons, Inc., Class A | 1,134,283 | 53,981 | ||||||
Jubilant FoodWorks Ltd.1 | 2,220,098 | 51,255 | ||||||
PT Ace Hardware Indonesia Tbk2 | 104,390,000 | 50,802 | ||||||
Dollarama Inc. | 1,005,000 | 46,872 | ||||||
CTS Eventim AG | 1,166,600 | 40,298 | ||||||
Halfords Group PLC | 7,840,000 | 38,950 | ||||||
Mood Media Corp.1,2,3 | 6,375,000 | 24,287 | ||||||
Mood Media Corp. (CDI) (GBP denominated)1,2,3 | 3,710,000 | 14,134 | ||||||
Rightmove PLC | 1,632,594 | 37,917 | ||||||
Domino’s Pizza Enterprises Ltd.2 | 4,002,300 | 37,727 | ||||||
Brunswick Corp. | 1,447,535 | 37,274 | ||||||
Mekonomen AB | 1,145,943 | 36,808 | ||||||
Stella International Holdings Ltd. | 15,020,000 | 36,440 | ||||||
Scholastic Corp. | 1,000,000 | 35,280 | ||||||
Cox and Kings (India) Ltd.2 | 10,592,000 | 33,900 | ||||||
Cox and Kings (India) Ltd. (GDR)2,4 | 330,000 | 1,056 | ||||||
Domino’s Pizza UK & IRL PLC | 4,826,500 | 33,319 | ||||||
CDON Group AB1,2 | 3,842,916 | 32,819 | ||||||
Café de Coral Holdings Ltd. | 11,698,000 | 32,538 | ||||||
Gourmet Master Co., Ltd. | 3,920,450 | 32,477 | ||||||
New Oriental Education & Technology Group Inc. (ADR)1 | 1,180,000 | 32,403 | ||||||
HUGO BOSS AG | 280,231 | 32,299 | ||||||
Domino’s Pizza, Inc. | 850,000 | 30,855 | ||||||
Parkson Retail Group Ltd. | 26,990,500 | 30,829 | ||||||
Golden Eagle Retail Group Ltd. | 11,982,000 | 30,612 | ||||||
Tractor Supply Co. | 337,800 | 30,591 | ||||||
Hyundai Home Shopping Co., Ltd. | 256,200 | 30,299 | ||||||
QSR Brands Bhd | 14,144,600 | 29,550 | ||||||
CJ CGV Co., Ltd.2 | 1,235,000 | 28,884 | ||||||
Churchill Downs Inc. | 500,000 | 27,950 | ||||||
Jumbo SA | 5,565,139 | 27,165 | ||||||
Boyd Gaming Corp.1 | 3,349,000 | 26,256 | ||||||
SuperGroup PLC1 | 2,640,500 | 26,017 | ||||||
Ekornes ASA | 1,445,850 | 25,135 | ||||||
DreamWorks Animation SKG, Inc., Class A1 | 1,340,000 | 24,723 | ||||||
Jarden Corp. | 575,000 | 23,132 | ||||||
Leggett & Platt, Inc. | 990,000 | 22,780 | ||||||
Francesca’s Holdings Corp.1 | 720,017 | 22,760 | ||||||
TAKKT AG | 1,456,778 | 22,538 | ||||||
Group 1 Automotive, Inc. | 400,000 | 22,468 | ||||||
HT Media Ltd. | 8,179,036 | 22,428 | ||||||
YOOX SpA1 | 1,387,000 | 22,032 | ||||||
Media Prima Bhd. | 25,155,000 | 22,006 | ||||||
Wendy’s Co. | 4,123,000 | 20,656 | ||||||
Fielmann AG | 210,000 | 20,191 | ||||||
Schibsted ASA | 535,000 | 19,823 | ||||||
Powerland AG, non-registered shares1,2 | 1,200,000 | 19,317 | ||||||
Signet Jewelers Ltd. | 400,000 | 18,912 | ||||||
Sotheby’s Holdings, Inc. | 475,000 | 18,687 | ||||||
Autoneum Holding AG1,2 | 326,606 | 18,434 | ||||||
Shopper’s Stop Ltd. | 2,340,000 | 17,854 | ||||||
Navitas Ltd. | 4,625,000 | 17,007 | ||||||
Lennar Corp., Class A | 619,000 | 16,824 | ||||||
PT Indomobil Sukses Internasional Tbk1 | 10,000,000 | 16,514 | ||||||
Sportingbet PLC | 26,600,000 | 16,061 | ||||||
Entertainment One Ltd.1 | 6,218,282 | 15,666 | ||||||
Toll Corp.1 | 634,000 | 15,210 | ||||||
Modern Times Group MTG AB, Class B | 275,000 | 15,147 | ||||||
Parkson Holdings Bhd. | 8,390,322 | 14,707 | ||||||
Penske Automotive Group, Inc. | 596,054 | 14,681 | ||||||
CFAO | 330,000 | 14,181 | ||||||
LeapFrog Enterprises, Inc., Class A1 | 1,695,599 | 14,175 | ||||||
Mando Corp. | 94,100 | 13,828 | ||||||
Hongkong and Shanghai Hotels, Ltd. | 10,031,959 | 13,642 | ||||||
Dixons Retail PLC1 | 45,223,542 | 13,498 | ||||||
Mandarin Oriental International Ltd. | 8,250,000 | 13,324 | ||||||
Headlam Group PLC | 2,809,685 | 13,303 | ||||||
POLYTEC Holding AG, non-registered shares1,2 | 1,450,500 | 13,263 | ||||||
Focus Media Holding Ltd. (ADR) | 500,000 | 12,560 | ||||||
REXLot Holdings Ltd. | 140,000,000 | 12,440 | ||||||
Ocado Group PLC1 | 6,533,708 | 11,966 | ||||||
Mothercare PLC2 | 4,480,000 | 11,895 | ||||||
P.F. Chang’s China Bistro, Inc. | 300,000 | 11,856 | ||||||
Home Retail Group PLC | 6,335,000 | 11,551 | ||||||
Winnebago Industries, Inc.1 | 1,161,516 | 11,383 | ||||||
Daily Mail and General Trust PLC, Class A, nonvoting | 1,540,000 | 11,121 | ||||||
Hankook Tire Co., Ltd. | 286,840 | 10,620 | ||||||
Michael Kors Holdings Ltd.1 | 225,300 | 10,497 | ||||||
Giordano International Ltd. | 13,600,000 | 10,455 | ||||||
Intercontinental Hotels Group PLC | 430,678 | 10,009 | ||||||
Youngone Corp. | 517,890 | 9,873 | ||||||
Bloomsbury Publishing PLC2 | 5,405,000 | 9,423 | ||||||
ValueVision Media, Inc., Class A1,2 | 3,875,293 | 8,022 | ||||||
D.B. Corp Ltd. | 1,841,206 | 7,940 | ||||||
SHW AG, non-registered shares1 | 230,000 | 7,884 | ||||||
OfficeMax Inc.1 | 1,360,000 | 7,779 | ||||||
China Zenix Auto International Ltd. (ADR) | 2,152,000 | 7,704 | ||||||
CJ Home Shopping Co., Ltd. | 33,000 | 7,572 | ||||||
National American University Holdings, Inc. | 1,200,000 | 7,560 | ||||||
D.R. Horton, Inc. | 490,000 | 7,433 | ||||||
zooplus AG, non-registered shares1 | 130,000 | 7,221 | ||||||
K-Swiss Inc., Class A1 | 1,750,000 | 7,175 | ||||||
U.S. Auto Parts Network, Inc.1,2 | 1,980,000 | 7,148 | ||||||
Home Inns & Hotels Management Inc. (ADR)1 | 255,000 | 6,505 | ||||||
Smith & Wesson Holding Corp.1 | 830,000 | 6,433 | ||||||
Harman International Industries, Inc. | 137,000 | 6,413 | ||||||
Blue Nile, Inc.1 | 188,265 | 6,209 | ||||||
Bijou Brigitte modische Accessoires AG | 52,000 | 5,153 | ||||||
Aristocrat Leisure Ltd. | 1,550,000 | 4,849 | ||||||
Talwalkars Better Value Fitness Ltd.2 | 1,446,000 | 4,341 | ||||||
Cinema City International NV1 | 400,000 | 4,118 | ||||||
School Specialty, Inc.1,2 | 1,153,240 | 4,083 | ||||||
Cheil Worldwide Inc. | 250,000 | 3,994 | ||||||
Balkrishna Industries Ltd. | 759,246 | 3,850 | ||||||
T4F Entretenimento SA, ordinary nominative1 | 412,500 | 3,774 | ||||||
GVC Holdings PLC | 1,392,400 | 3,051 | ||||||
Thomas Cook Group PLC | 6,414,936 | 2,309 | ||||||
GEOX SpA | 591,000 | 1,931 | ||||||
Pantaloon Retail (India) Ltd., Class B | 128,575 | 238 | ||||||
Fourlis1 | 96,365 | 176 | ||||||
Ten Alps PLC1 | 3,439,001 | 124 | ||||||
Five Star Travel Corp.1,4,5 | 96,033 | 26 | ||||||
CEC Unet PLC1,2,4 | 35,100,775 | — | ||||||
Spot Runner, Inc.1,4,5 | 2,980,544 | — | ||||||
Fontainebleau Resorts LLC, Class A, nonvoting units1,4,5 | 1,900,000 | — | ||||||
3,683,047 | ||||||||
INDUSTRIALS — 13.43% | ||||||||
MSC Industrial Direct Co., Inc., Class A | 2,147,500 | 178,844 | ||||||
Intertek Group PLC | 2,702,000 | 108,522 | ||||||
MTU Aero Engines Holding AG | 1,138,000 | 91,657 | ||||||
Chart Industries, Inc.1 | 1,106,000 | 81,103 | ||||||
Michael Page International PLC | 9,727,502 | 74,684 | ||||||
Beacon Roofing Supply, Inc.1,2 | 2,616,138 | 67,392 | ||||||
IDEX Corp. | 1,535,000 | 64,670 | ||||||
Herman Miller, Inc. | 2,800,000 | 64,288 | ||||||
BELIMO Holding AG2 | 30,900 | 59,698 | ||||||
Nabtesco Corp. | 2,840,000 | 58,262 | ||||||
Meggitt PLC | 8,891,695 | 57,444 | ||||||
Pipavav Defence and Offshore Engineering Co. Ltd.1,2 | 35,731,000 | 56,109 | ||||||
MITIE Group PLC | 12,509,000 | 55,923 | ||||||
Polypore International, Inc.1 | 1,565,000 | 55,025 | ||||||
Corrections Corporation of America1 | 1,998,900 | 54,590 | ||||||
Moog Inc., Class A1 | 1,192,800 | 51,159 | ||||||
Mills Estruturas e Serviços de Engenharia SA, ordinary nominative | 3,943,000 | 50,328 | ||||||
AirAsia Bhd. | 44,000,000 | 49,551 | ||||||
PT Sarana Menara Nusantara Tbk1 | 34,850,000 | 47,831 | ||||||
Exponent, Inc.1,2 | 936,400 | 45,434 | ||||||
Watsco, Inc. | 611,286 | 45,260 | ||||||
Goodpack Ltd.2 | 30,060,000 | 42,326 | ||||||
Johnson Electric Holdings Ltd. | 63,859,500 | 39,719 | ||||||
Huntington Ingalls Industries, Inc.1 | 965,131 | 38,837 | ||||||
Northgate PLC1,2 | 10,626,805 | 35,831 | ||||||
Container Corp. of India Ltd. | 1,840,000 | 34,487 | ||||||
Blount International, Inc.1 | 1,950,500 | 32,534 | ||||||
Dynasty Ceramic PCL | 15,378,000 | 32,526 | ||||||
SIA Engineering Co. Ltd. | 9,833,000 | 31,524 | ||||||
Société BIC SA | 308,000 | 30,907 | ||||||
Landstar System, Inc. | 509,250 | 29,394 | ||||||
Uponor Oyj | 2,521,600 | 29,057 | ||||||
Harmonic Drive Systems Inc. | 1,148,600 | 28,934 | ||||||
Andritz AG | 293,600 | 28,734 | ||||||
Comfort Systems USA, Inc.2 | 2,476,000 | 27,013 | ||||||
Ennis, Inc.2 | 1,659,676 | 26,256 | ||||||
BrisConnections Unit Trusts1,2 | 27,300,000 | 25,451 | ||||||
Waste Connections, Inc. | 754,000 | 24,528 | ||||||
TransDigm Group Inc.1 | 203,000 | 23,499 | ||||||
Houston Wire & Cable Co.2 | 1,678,900 | 23,320 | ||||||
Regus PLC | 12,718,620 | 23,110 | ||||||
Robert Half International Inc. | 745,000 | 22,573 | ||||||
Jain Irrigation Systems Ltd. | 11,470,000 | 22,164 | ||||||
Globaltrans Investment PLC (GDR) | 1,279,446 | 21,879 | ||||||
TrueBlue, Inc.1 | 1,223,000 | 21,867 | ||||||
Masco Corp. | 1,625,000 | 21,726 | ||||||
Standard Parking Corp.1,2 | 1,048,600 | 21,496 | ||||||
Graco Inc. | 400,000 | 21,224 | ||||||
AIA Engineering Ltd. | 2,915,050 | 21,048 | ||||||
CoStar Group, Inc.1 | 300,000 | 20,715 | ||||||
Frigoglass SAIC2 | 3,052,380 | 20,029 | ||||||
THK Co., Ltd. | 911,100 | 18,526 | ||||||
Danieli & C. Officine Meccaniche SpA, nonconvertible shares | 1,171,903 | 17,411 | ||||||
Cebu Air, Inc. | 10,800,000 | 16,879 | ||||||
Tegma Gestão Logística SA, ordinary nominative | 981,200 | 16,389 | ||||||
SAI Global Ltd. | 3,158,843 | 16,360 | ||||||
Steelcase Inc., Class A | 1,690,000 | 16,224 | ||||||
Douglas Dynamics, Inc.2 | 1,175,000 | 16,156 | ||||||
AeroVironment, Inc.1 | 600,000 | 16,086 | ||||||
Geberit AG | 74,000 | 15,485 | ||||||
KBR, Inc. | 435,000 | 15,464 | ||||||
Austal Ltd. | 7,888,056 | 15,320 | ||||||
Heidelberger Druckmaschinen AG, non-registered shares1 | 7,517,000 | 15,068 | ||||||
OSG Corp. | 980,000 | 14,824 | ||||||
Mvelaserve Ltd.2 | 9,194,800 | 13,784 | ||||||
Chemring Group PLC | 2,090,000 | 13,623 | ||||||
WABCO Holdings Inc.1 | 221,000 | 13,366 | ||||||
Mine Safety Appliances Co. | 324,000 | 13,310 | ||||||
Boer Power Holdings Ltd. | 31,753,000 | 12,676 | ||||||
Westport Innovations Inc.1 | 300,000 | 12,276 | ||||||
American Science and Engineering, Inc. | 175,000 | 11,734 | ||||||
ITE Group PLC | 3,165,000 | 11,239 | ||||||
Ritchie Bros. Auctioneers Inc. | 450,000 | 10,692 | ||||||
Hays PLC | 7,755,000 | 10,463 | ||||||
Zumtobel AG | 740,000 | 10,452 | ||||||
Wienerberger AG | 868,000 | 10,177 | ||||||
Praj Industries Ltd. | 5,942,291 | 9,355 | ||||||
Mobile Mini, Inc.1 | 417,600 | 8,820 | ||||||
Haitian International Holdings Ltd. | 7,580,000 | 8,502 | ||||||
United Stationers Inc. | 272,000 | 8,440 | ||||||
Pfeiffer Vacuum Technology AG, non-registered shares | 64,000 | 7,251 | ||||||
China Automation Group Ltd. | 27,000,000 | 7,162 | ||||||
S1 Corp. | 146,700 | 6,836 | ||||||
Amtek Engineering Ltd. | 10,502,400 | 5,974 | ||||||
SATS Ltd. | 3,000,000 | 5,942 | ||||||
MISUMI Group Inc. | 241,500 | 5,873 | ||||||
Teleperformance SA | 200,000 | 5,715 | ||||||
Carborundum Universal Ltd. | 1,800,000 | 5,505 | ||||||
Ellaktor SA | 3,102,118 | 4,923 | ||||||
Prysmian SpA | 260,000 | 4,570 | ||||||
TD Power Systems Ltd.1 | 873,843 | 4,196 | ||||||
Meyer Burger Technology AG1 | 195,000 | 3,186 | ||||||
Amara Raja Batteries Ltd. | 414,443 | 2,384 | ||||||
Aker Philadelphia Shipyard ASA1,4 | 346,000 | 425 | ||||||
Downer EDI Ltd.1 | 86,915 | 362 | ||||||
Imagelinx PLC1,2 | 20,685,714 | 248 | ||||||
American Shipping Co. ASA1 | 381,069 | 66 | ||||||
2,700,201 | ||||||||
HEALTH CARE — 13.16% | ||||||||
Regeneron Pharmaceuticals, Inc.1 | 1,368,820 | 159,632 | ||||||
Pharmacyclics, Inc.1,2 | 4,299,474 | 119,353 | ||||||
Endo Pharmaceuticals Holdings Inc.1 | 2,664,100 | 103,181 | ||||||
Intuitive Surgical, Inc.1 | 155,000 | 83,971 | ||||||
AMERIGROUP Corp.1 | 1,227,029 | 82,554 | ||||||
Fleury SA, ordinary nominative | 6,190,750 | 81,732 | ||||||
Incyte Corp.1 | 4,052,400 | 78,211 | ||||||
Cochlear Ltd. | 1,138,910 | 73,026 | ||||||
Sysmex Corp. | 1,764,000 | 71,182 | ||||||
Grifols, SA, Class A1 | 3,290,000 | 70,206 | ||||||
Amylin Pharmaceuticals, Inc.1 | 2,713,300 | 67,724 | ||||||
athenahealth, Inc.1 | 894,698 | 66,315 | ||||||
Emeritus Corp.1,2 | 3,540,000 | 62,516 | ||||||
Thoratec Corp.1 | 1,816,000 | 61,217 | ||||||
Alere Inc.1 | 2,332,171 | 60,660 | ||||||
VCA Antech, Inc.1 | 2,575,000 | 59,766 | ||||||
Hikma Pharmaceuticals PLC | 5,189,153 | 56,357 | ||||||
Sirona Dental Systems, Inc.1 | 1,033,900 | 53,287 | ||||||
BioMarin Pharmaceutical Inc.1 | 1,457,500 | 49,919 | ||||||
Align Technology, Inc.1 | 1,800,000 | 49,590 | ||||||
ZOLL Medical Corp.1 | 516,424 | 47,836 | ||||||
ArthroCare Corp.1,2 | 1,604,600 | 43,084 | ||||||
Hologic, Inc.1 | 1,965,000 | 42,346 | ||||||
Orthofix International NV1,2 | 1,110,100 | 41,718 | ||||||
Myriad Genetics, Inc.1 | 1,749,000 | 41,381 | ||||||
Illumina, Inc.1 | 781,600 | 41,120 | ||||||
NuVasive, Inc.1,2 | 2,377,936 | 40,044 | ||||||
Synageva BioPharma Corp.1,2 | 1,101,873 | 39,524 | ||||||
Integra LifeSciences Holdings Corp.1 | 1,039,793 | 36,070 | ||||||
Ironwood Pharmaceuticals, Inc., Class A1 | 2,671,100 | 35,552 | ||||||
Medivation, Inc.1 | 464,000 | 34,670 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 18,500,000 | 33,931 | ||||||
Bangkok Dusit Medical Services PCL | 11,395,000 | 32,043 | ||||||
GN Store Nord AS | 2,938,199 | 31,359 | ||||||
St.Shine Optical Co. Ltd. | 2,330,000 | 30,236 | ||||||
Wright Medical Group, Inc.1 | 1,523,485 | 29,434 | ||||||
Hill-Rom Holdings, Inc. | 817,068 | 27,298 | ||||||
Nobel Biocare Holding AG | 2,150,000 | 26,890 | ||||||
ABIOMED, Inc.1 | 1,166,873 | 25,893 | ||||||
Dendreon Corp.1 | 2,377,000 | 25,327 | ||||||
Volcano Corp.1 | 827,011 | 23,446 | ||||||
Virbac SA | 145,000 | 23,052 | ||||||
Idenix Pharmaceuticals, Inc.1 | 2,300,000 | 22,517 | ||||||
Cadence Pharmaceuticals, Inc.1,2 | 5,992,279 | 22,171 | ||||||
Fluidigm Corp.1,2 | 1,350,735 | 21,247 | ||||||
CFR Pharmaceuticals SA | 82,425,400 | 20,581 | ||||||
Sagent Pharmaceuticals, Inc.1 | 1,113,500 | 19,898 | ||||||
Apollo Hospitals Enterprise Ltd. | 1,580,000 | 19,812 | ||||||
Ansell Ltd. | 1,200,000 | 18,484 | ||||||
Exelixis, Inc.1 | 3,540,000 | 18,337 | ||||||
China Kanghui Holdings (ADR)1 | 939,900 | 17,867 | ||||||
Emergent BioSolutions Inc.1 | 1,105,000 | 17,680 | ||||||
Invacare Corp. | 973,300 | 16,128 | ||||||
JSC Pharmstandard (GDR)1 | 824,610 | 14,629 | ||||||
Achillion Pharmaceuticals, Inc.1 | 1,500,000 | 14,370 | ||||||
MEDICA SA | 765,000 | 12,534 | ||||||
HealthStream, Inc.1 | 500,000 | 11,595 | ||||||
Human Genome Sciences, Inc.1 | 1,380,000 | 11,371 | ||||||
Abaxis, Inc.1 | 389,000 | 11,332 | ||||||
Genomma Lab Internacional, SAB de CV, Series B1 | 6,020,000 | 10,973 | ||||||
BG Medicine, Inc.1,2 | 1,462,603 | 10,268 | ||||||
Savient Pharmaceuticals, Inc.1,2 | 4,694,200 | 10,233 | ||||||
Covance Inc.1 | 200,000 | 9,526 | ||||||
Tsumura & Co. | 315,000 | 9,099 | ||||||
Ipca Laboratories Ltd. | 1,295,000 | 8,521 | ||||||
Centene Corp.1 | 165,000 | 8,080 | ||||||
MicroPort Scientific Corp. | 13,000,000 | 6,094 | ||||||
Krka, dd, Novo mesto | 86,820 | 5,805 | ||||||
Amplifon SpA | 1,075,000 | 5,549 | ||||||
Codexis, Inc.1 | 1,200,000 | 4,380 | ||||||
Merck Ltd.1 | 299,383 | 3,542 | ||||||
2,645,276 | ||||||||
INFORMATION TECHNOLOGY — 12.03% | ||||||||
AAC Technologies Holdings Inc. | 58,436,000 | 158,778 | ||||||
National Instruments Corp. | 3,686,479 | 105,138 | ||||||
Compuware Corp.1 | 10,362,622 | 95,232 | ||||||
Hittite Microwave Corp.1,2 | 1,659,950 | 90,152 | ||||||
Dialog Semiconductor PLC1,2 | 3,434,421 | 83,892 | ||||||
Elster Group SE (ADR)1 | 5,141,400 | 81,285 | ||||||
Kingboard Chemical Holdings Ltd. | 22,804,200 | 79,728 | ||||||
SINA Corp.1 | 1,135,000 | 73,775 | ||||||
Vistaprint NV1,2 | 1,860,000 | 71,889 | ||||||
FactSet Research Systems, Inc. | 670,000 | 66,357 | ||||||
Bankrate, Inc.1 | 2,433,730 | 60,235 | ||||||
Monster Worldwide, Inc.1 | 5,827,600 | 56,819 | ||||||
MICROS Systems, Inc.1 | 1,024,000 | 56,617 | ||||||
Angie’s List, Inc.1,2,4,5 | 2,261,888 | 37,173 | ||||||
Angie’s List, Inc.1,2 | 962,450 | 18,181 | ||||||
AOL Inc.1 | 2,845,000 | 53,970 | ||||||
Kapsch TrafficCom AG | 508,201 | 43,040 | ||||||
Fidessa group PLC | 1,496,000 | 39,602 | ||||||
Dolby Laboratories, Inc., Class A1 | 1,035,400 | 39,407 | ||||||
AVEVA Group PLC | 1,472,500 | 39,027 | ||||||
International Rectifier Corp.1 | 1,666,000 | 38,435 | ||||||
Quantum Corp.1,2 | 13,699,097 | 35,892 | ||||||
OBIC Co., Ltd. | 158,330 | 32,098 | ||||||
Autodesk, Inc.1 | 705,000 | 29,836 | ||||||
Delta Electronics (Thailand) PCL | 33,935,900 | 28,601 | ||||||
Kingdee International Software Group Co. Ltd. | 117,250,000 | 28,235 | ||||||
Semtech Corp.1 | 960,000 | 27,322 | ||||||
Trimble Navigation Ltd.1 | 500,000 | 27,210 | ||||||
Power Integrations, Inc. | 727,100 | 26,990 | ||||||
Global Payments Inc.4 | 561,116 | 26,636 | ||||||
Littelfuse, Inc. | 400,000 | 25,080 | ||||||
Active Network, Inc.1 | 1,480,000 | 24,908 | ||||||
Cardtronics, Inc.1 | 942,600 | 24,743 | ||||||
Cirrus Logic, Inc.1 | 1,029,668 | 24,506 | ||||||
MercadoLibre, Inc. | 249,400 | 24,389 | ||||||
Kingboard Laminates Holdings Ltd. | 49,319,236 | 23,308 | ||||||
Neopost SA | 353,891 | 22,759 | ||||||
Zebra Technologies Corp., Class A1 | 550,000 | 22,649 | ||||||
Info Edge (India) Ltd. | 1,580,000 | 22,609 | ||||||
SPS Commerce, Inc.1,2 | 838,500 | 22,539 | ||||||
Red Hat, Inc.1 | 370,000 | 22,159 | ||||||
Hana Microelectronics PCL | 30,925,000 | 21,953 | ||||||
Quest Software, Inc.1 | 860,000 | 20,012 | ||||||
Hamamatsu Photonics K.K. | 525,000 | 19,821 | ||||||
Spectris PLC | 680,000 | 19,610 | ||||||
Avid Technology, Inc.1 | 1,742,153 | 19,164 | ||||||
Rovi Corp.1 | 577,400 | 18,794 | ||||||
KLA-Tencor Corp. | 340,650 | 18,538 | ||||||
Ultimate Software Group, Inc.1 | 250,000 | 18,320 | ||||||
SEEK Ltd. | 2,500,000 | 18,231 | ||||||
Zillow, Inc., Class A1 | 500,000 | 17,795 | ||||||
Yaskawa Electric Corp. | 1,690,000 | 15,885 | ||||||
SciQuest, Inc.1 | 1,015,500 | 15,476 | ||||||
NCC Group PLC | 1,031,000 | 14,842 | ||||||
Jabil Circuit, Inc. | 550,000 | 13,816 | ||||||
Logitech International SA1 | 1,700,000 | 13,260 | ||||||
Youku.com Inc., Class A (ADR)1 | 600,000 | 13,194 | ||||||
Liquidity Services, Inc.1 | 290,136 | 12,998 | ||||||
Infotech Enterprises Ltd. | 4,400,000 | 12,895 | ||||||
Ellie Mae, Inc.1,2 | 1,127,966 | 12,588 | ||||||
Demand Media, Inc.1 | 1,731,660 | 12,555 | ||||||
Genpact Ltd.1 | 760,000 | 12,388 | ||||||
Immersion Corp.1,2 | 2,254,000 | 12,307 | ||||||
OpenTable, Inc.1 | 285,000 | 11,534 | ||||||
Halma PLC | 1,865,000 | 11,354 | ||||||
Green Packet Bhd.1,2 | 52,599,216 | 9,873 | ||||||
Wintek Corp. | 12,649,133 | 9,814 | ||||||
Maxwell Technologies, Inc.1 | 525,000 | 9,623 | ||||||
Tangoe, Inc.1 | 500,000 | 9,405 | ||||||
Playtech Ltd. | 1,524,421 | 8,882 | ||||||
Tripod Technology Corp. | 2,645,800 | 8,875 | ||||||
DTS, Inc.1 | 292,000 | 8,824 | ||||||
Cadence Design Systems, Inc.1 | 735,504 | 8,708 | ||||||
China High Precision Automation Group Ltd.2,4 | 67,422,000 | 8,682 | ||||||
OnMobile Global Ltd.1,2 | 7,184,110 | 8,475 | ||||||
Comverse Technology, Inc.1 | 1,190,000 | 8,175 | ||||||
RealPage, Inc.1 | 348,000 | 6,671 | ||||||
FormFactor, Inc.1 | 1,180,000 | 6,584 | ||||||
Universal Display Corp.1 | 180,000 | 6,575 | ||||||
ULVAC, Inc.1 | 575,000 | 6,315 | ||||||
Ubisoft Entertainment SA1 | 285,000 | 2,103 | ||||||
Oakton Ltd. | 1,502,075 | 1,953 | ||||||
Remark Media, Inc.1 | 81,521 | 491 | ||||||
Remark Media, Inc.1,4,5 | 29,470 | 127 | ||||||
2,418,686 | ||||||||
FINANCIALS — 8.88% | ||||||||
East West Bancorp, Inc. | 4,462,771 | 103,045 | ||||||
Onex Corp. | 2,637,700 | 97,078 | ||||||
Kotak Mahindra Bank Ltd. | 7,170,098 | 76,754 | ||||||
Brait SE1,2 | 27,468,288 | 74,516 | ||||||
YES BANK Ltd. | 10,065,832 | 72,868 | ||||||
Assured Guaranty Ltd. | 4,330,000 | 71,532 | ||||||
SVB Financial Group1 | 985,900 | 63,433 | ||||||
Greenhill & Co., Inc. | 1,299,000 | 56,688 | ||||||
National Financial Partners Corp.1,2 | 3,174,800 | 48,067 | ||||||
Cullen/Frost Bankers, Inc. | 815,000 | 47,425 | ||||||
Financial Engines, Inc.1 | 2,075,000 | 46,397 | ||||||
Banco Cruzeiro do Sul SA, preferred nominative | 5,458,100 | 40,305 | ||||||
First Republic Bank1 | 1,109,655 | 36,552 | ||||||
Rayonier Inc. | 815,000 | 35,933 | ||||||
Savills PLC | 5,942,825 | 35,883 | ||||||
Sterling Financial Corp.1,3 | 1,666,668 | 34,800 | ||||||
Sterling Financial Corp.1 | 24,500 | 512 | ||||||
Manappuram Finance Ltd.2 | 57,992,814 | 34,663 | ||||||
First American Financial Corp. | 1,980,700 | 32,939 | ||||||
Northwest Bancshares, Inc. | 2,502,500 | 31,782 | ||||||
PT Agung Podomoro Land Tbk1 | 813,489,000 | 31,137 | ||||||
Robinsons Land Corp. | 76,825,550 | 29,524 | ||||||
Bolsa Mexicana de Valores, SAB de CV, Series A | 14,240,000 | 28,750 | ||||||
Capitol Federal Financial, Inc. | 2,375,000 | 28,167 | ||||||
Colony Financial, Inc.2 | 1,695,000 | 27,764 | ||||||
Banco ABC Brasil SA, preferred nominative | 3,639,000 | 26,473 | ||||||
Security Bank Corp. | 7,090,000 | 23,614 | ||||||
IndusInd Bank Ltd. | 3,700,000 | 23,361 | ||||||
CapitalSource Inc. | 3,300,000 | 21,780 | ||||||
Dah Sing Financial Holdings Ltd. | 6,041,250 | 20,927 | ||||||
Starwood Property Trust, Inc. | 980,000 | 20,600 | ||||||
BOK Financial Corp. | 365,000 | 20,542 | ||||||
BS Financial Group Inc. | 1,623,080 | 19,052 | ||||||
Banca Generali SpA | 1,413,000 | 18,958 | ||||||
TISCO Financial Group PCL | 14,000,000 | 18,833 | ||||||
DDR Corp. | 1,225,000 | 17,885 | ||||||
Old Republic International Corp. | 1,635,000 | 17,249 | ||||||
Paraná Banco SA, preferred nominative | 2,318,400 | 16,612 | ||||||
IG Group Holdings PLC | 2,210,700 | 15,912 | ||||||
Sonae Sierra Brasil SA, ordinary nominative | 1,000,000 | 15,832 | ||||||
Redwood Trust, Inc. | 1,410,000 | 15,792 | ||||||
Home Loan Servicing Solutions, Ltd.2 | 1,121,600 | 15,635 | ||||||
Popular, Inc.1 | 7,370,000 | 15,109 | ||||||
Bao Viet Holdings | 4,137,486 | 14,883 | ||||||
Talmer Bancorp, Inc., Class A1,4,5 | 1,791,805 | 14,334 | ||||||
Home Federal Bancorp, Inc.2 | 1,384,249 | 14,022 | ||||||
Hospitality Properties Trust | 515,000 | 13,632 | ||||||
Mahindra Lifespace Developers Ltd.2 | 2,157,380 | 13,505 | ||||||
First Southern Bancorp, Inc.1,2,4,5 | 1,344,915 | 12,911 | ||||||
Oslo Børs VPS Holding ASA | 1,002,335 | 11,441 | ||||||
Primerica, Inc. | 450,000 | 11,345 | ||||||
CenterState Banks, Inc. | 1,375,400 | 11,223 | ||||||
Canadian Western Bank | 375,000 | 10,970 | ||||||
VZ Holding AG | 96,000 | 10,954 | ||||||
ICG Group, Inc.1 | 1,137,000 | 10,176 | ||||||
Noah Holdings Ltd. (ADR) | 1,260,000 | 10,055 | ||||||
Midland Holdings Ltd. | 18,890,000 | 9,925 | ||||||
Fibra Uno Administración, SA de CV | 4,361,700 | 8,588 | ||||||
Siam Future Development PCL | 31,354,087 | 7,775 | ||||||
Chongqing Rural Commercial Bank Co., Ltd., Class H1 | 15,565,000 | 7,436 | ||||||
ING Vysya Bank Ltd. | 1,050,000 | 7,319 | ||||||
PT Summarecon Agung Tbk | 42,142,500 | 7,236 | ||||||
GSW Immobilien AG, non-registered shares1 | 202,333 | 6,993 | ||||||
Laurentian Bank of Canada | 120,700 | 5,615 | ||||||
Zions Bancorporation | 235,000 | 5,043 | ||||||
Banco Daycoval SA, preferred nominative | 900,000 | 4,797 | ||||||
Islamic Arab Insurance Co. (Salama)1,4 | 21,260,331 | 4,544 | ||||||
Oriental Financial Group Inc. | 354,179 | 4,286 | ||||||
Hellenic Exchanges SA | 976,082 | 3,879 | ||||||
Globe Trade Center SA1 | 1,618,000 | 3,487 | ||||||
ARA Asset Management Ltd. | 2,224,200 | 2,707 | ||||||
Frasers Centrepoint Trust | 1,783,000 | 2,156 | ||||||
Banco Industrial e Comercial SA, preferred nominative | 328,800 | 1,297 | ||||||
Territorial Bancorp Inc. | 50,000 | 1,041 | ||||||
1,784,255 | ||||||||
MATERIALS — 6.98% | ||||||||
African Petroleum Corp. Ltd.1 | 69,088,868 | 121,661 | ||||||
AptarGroup, Inc. | 1,893,442 | 103,704 | ||||||
Chr. Hansen Holding A/S | 3,676,000 | 95,136 | ||||||
Kenmare Resources PLC1 | 109,972,782 | 88,215 | ||||||
African Minerals Ltd.1 | 8,638,121 | 76,544 | ||||||
James Hardie Industries SE | 9,282,744 | 73,847 | ||||||
Schweitzer-Mauduit International, Inc.2 | 1,028,500 | 71,028 | ||||||
FUCHS PETROLUB AG, preference shares | 580,500 | 32,498 | ||||||
FUCHS PETROLUB AG | 358,647 | 18,894 | ||||||
Gem Diamonds Ltd.1,2 | 11,061,300 | 48,389 | ||||||
Ube Industries, Ltd. | 16,703,000 | 45,405 | ||||||
Coal of Africa Ltd.1,2 | 42,725,000 | 42,028 | ||||||
Harry Winston Diamond Corp.1 | 2,141,900 | 31,524 | ||||||
Vicat S.A. | 471,650 | 31,329 | ||||||
OCI Materials Co., Ltd. | 455,000 | 27,628 | ||||||
Yingde Gases Group Co. Ltd. | 22,694,250 | 25,776 | ||||||
PT Indocement Tunggal Prakarsa Tbk | 10,995,000 | 22,185 | ||||||
Symrise AG | 757,046 | 21,910 | ||||||
Aquarius Platinum Ltd. | 8,611,111 | 19,891 | ||||||
Yip’s Chemical Holdings Ltd. | 26,835,000 | 19,352 | ||||||
Yamana Gold Inc. | 1,200,000 | 18,720 | ||||||
Croda International PLC | 554,500 | 18,679 | ||||||
Arkema SA | 191,000 | 17,798 | ||||||
Cape Lambert Resources Ltd.1 | 31,980,132 | 17,723 | ||||||
Sinofert Holdings Ltd. | 70,222,000 | 17,091 | ||||||
Sirius Minerals PLC1 | 52,304,735 | 16,732 | ||||||
Talvivaara Mining Co. PLC1 | 4,300,000 | 16,562 | ||||||
Shree Cement Ltd. | 250,000 | 15,798 | ||||||
Huntsman Corp. | 1,028,400 | 14,408 | ||||||
Chu Kong Petroleum and Natural Gas Steel Pipe Holdings Ltd. | 40,920,000 | 14,333 | ||||||
Cline Mining Corp.1 | 9,357,800 | 14,166 | ||||||
Mineral Deposits Ltd.1 | 1,039,790 | 6,764 | ||||||
Mineral Deposits Ltd. (CAD denominated)1 | 1,012,800 | 6,448 | ||||||
Siam City Cement PCL | 1,300,000 | 12,895 | ||||||
Gran Colombia Gold SA1,2 | 30,175,000 | 12,101 | ||||||
United Phosphorus Ltd. | 4,730,000 | 12,079 | ||||||
Sika AG, non-registered shares | 5,530 | 11,970 | ||||||
Greatview Aseptic Packaging Co. Ltd.1 | 21,633,000 | 11,366 | ||||||
Eastern Platinum Ltd.1 | 19,121,450 | 7,669 | ||||||
Eastern Platinum Ltd.1,3 | 8,160,000 | 3,272 | ||||||
Mountain Province Diamonds Inc.1,3 | 1,904,762 | 10,045 | ||||||
Titan Cement Co. SA | 491,500 | 9,079 | ||||||
Duluth Metals Ltd.1 | 3,850,000 | 8,762 | ||||||
J.K. Cement Ltd. | 2,384,938 | 7,549 | ||||||
AK Steel Holding Corp. | 905,000 | 6,842 | ||||||
Talison Lithium Ltd.1 | 1,880,000 | 6,804 | ||||||
Afferro Mining Inc.1,2 | 6,460,000 | 6,768 | ||||||
Obtala Resources Ltd.1,2 | 7,975,000 | 4,018 | ||||||
Obtala Resources Ltd.1,2,3 | 4,950,000 | 2,494 | ||||||
Frutarom Industries Ltd. | 650,000 | 6,331 | ||||||
Allied Gold Mining PLC1 | 3,160,522 | 6,016 | ||||||
PT Indah Kiat Pulp & Paper Tbk1 | 46,614,500 | 5,913 | ||||||
TFS Corporation Ltd | 8,906,498 | 5,074 | ||||||
China Shanshui Cement Group Ltd. | 5,450,000 | 4,302 | ||||||
Midas Holdings Ltd. | 13,467,000 | 4,071 | ||||||
Scotts Miracle-Gro Co., Class A | 67,290 | 3,644 | ||||||
Hummingbird Resources PLC1 | 1,650,000 | 3,497 | ||||||
Vatukoula Gold Mines PLC1 | 3,214,081 | 3,187 | ||||||
EACOM Timber Corp.1,2,3 | 26,200,000 | 2,889 | ||||||
Engro Corp. Ltd. | 2,591,160 | 2,838 | ||||||
Birla Corp. Ltd. | 484,500 | 2,709 | ||||||
Mwana Africa PLC1,3 | 29,857,130 | 2,400 | ||||||
China Forestry Holdings Co., Ltd.4 | 29,142,000 | 1,781 | ||||||
Rusoro Mining Ltd.1,3 | 20,000,000 | 1,404 | ||||||
Rusoro Mining Ltd.1 | 1,437,000 | 101 | ||||||
Sino-Forest Corp.1,4 | 900,000 | 152 | ||||||
Gurit Holding AG, non-registered shares | 264 | 151 | ||||||
1,402,339 | ||||||||
ENERGY — 6.68% | ||||||||
Ophir Energy PLC1 | 18,733,200 | 152,067 | ||||||
InterOil Corp.1,2 | 2,626,200 | 135,013 | ||||||
Gulf Keystone Petroleum Ltd.1,3 | 25,856,814 | 108,461 | ||||||
Pacific Rubiales Energy Corp. | 3,546,300 | 103,603 | ||||||
Concho Resources Inc.1 | 583,000 | 59,513 | ||||||
Oasis Petroleum Inc.1 | 1,848,049 | 56,975 | ||||||
Rosetta Resources Inc.1 | 1,155,000 | 56,318 | ||||||
Zhaikmunai LP (GDR)1,3 | 4,669,500 | 52,252 | ||||||
Zhaikmunai LP (GDR)1 | 353,650 | 3,957 | ||||||
Comstock Resources, Inc.1,2 | 3,078,111 | 48,727 | ||||||
Schoeller-Bleckmann Oilfield Equipment AG | 479,000 | 44,099 | ||||||
Core Laboratories NV | 317,100 | 41,721 | ||||||
Borders & Southern Petroleum PLC1,2 | 34,265,000 | 37,406 | ||||||
Kodiak Oil & Gas Corp.1 | 3,500,000 | 34,860 | ||||||
Cimarex Energy Co. | 421,500 | 31,811 | ||||||
Miclyn Express Offshore Ltd. | 13,550,000 | 31,440 | ||||||
Heritage Oil Ltd.1 | 11,618,000 | 26,035 | ||||||
Exillon Energy PLC1,2 | 9,619,660 | 26,034 | ||||||
Falkland Oil and Gas Ltd.1,2 | 24,225,000 | 24,993 | ||||||
Kværner ASA1 | 8,316,276 | 23,658 | ||||||
Laredo Petroleum Holdings, Inc.1 | 955,900 | 22,406 | ||||||
BPZ Resources, Inc.1 | 4,562,400 | 18,386 | ||||||
Banpu PCL | 905,000 | 17,835 | ||||||
Legacy Oil + Gas Inc.1 | 1,878,600 | 17,440 | ||||||
Oceaneering International, Inc. | 295,000 | 15,898 | ||||||
Americas Petrogas Inc.1 | 3,080,000 | 10,993 | ||||||
Americas Petrogas Inc.1,3,4 | 1,400,000 | 4,647 | ||||||
Bill Barrett Corp.1 | 550,000 | 14,305 | ||||||
Harvest Natural Resources, Inc.1 | 1,713,992 | 12,135 | ||||||
Sterling Resources Ltd.1 | 7,525,000 | 12,071 | ||||||
Gevo, Inc.1 | 1,227,444 | 11,280 | ||||||
Tethys Petroleum Ltd.1 | 12,161,000 | 10,242 | ||||||
Tethys Petroleum Ltd. (GBP denominated)1 | 1,147,487 | 1,005 | ||||||
Bonanza Creek Energy, Inc.1 | 480,000 | 10,488 | ||||||
HollyFrontier Corp. | 325,000 | 10,449 | ||||||
Goodrich Petroleum Corp.1 | 520,000 | 9,890 | ||||||
BNK Petroleum Inc.1 | 3,763,380 | 6,188 | ||||||
BNK Petroleum Inc.1,3 | 2,000,000 | 3,288 | ||||||
Dockwise Ltd.1 | 441,372 | 9,107 | ||||||
Petrodorado Energy Ltd.1,2 | 38,400,000 | 8,855 | ||||||
Pacific Coal, SA1,2,3 | 17,000,000 | 5,965 | ||||||
Pacific Coal, SA1,2 | 1,280,000 | 449 | ||||||
Aurelian Oil & Gas PLC1 | 17,960,000 | 5,745 | ||||||
Saras SpA1 | 2,360,000 | 3,157 | ||||||
LNG Energy Ltd.1,3 | 13,000,000 | 1,368 | ||||||
Zodiac Exploration Inc.1 | 9,728,000 | 926 | ||||||
�� | 1,343,461 | |||||||
CONSUMER STAPLES — 5.02% | ||||||||
PT Sumber Alfaria Trijaya Tbk1,2 | 238,268,000 | 130,287 | ||||||
Raia Drogasil SA, ordinary nominative | 8,424,812 | 81,920 | ||||||
CP ALL PCL | 25,948,500 | 55,093 | ||||||
PZ Cussons PLC | 11,445,000 | 54,864 | ||||||
Hypermarcas SA, ordinary nominative | 6,156,500 | 43,338 | ||||||
Super Group Ltd.2 | 29,500,000 | 42,359 | ||||||
Wumart Stores, Inc., Class H | 18,815,000 | 41,383 | ||||||
Lindt & Sprüngli AG, participation certificate | 6,998 | 22,482 | ||||||
Lindt & Sprüngli AG | 466 | 17,343 | ||||||
Emami Ltd. | 4,940,000 | 39,199 | ||||||
Brazil Pharma SA, ordinary nominative1 | 6,345,400 | 37,194 | ||||||
Kernel Holding SA1 | 1,523,150 | 33,244 | ||||||
FANCL Corp. | 2,267,000 | 30,511 | ||||||
Emmi AG | 136,100 | 29,702 | ||||||
MARR SpA | 2,499,899 | 28,207 | ||||||
Coca-Cola Icecek AS, Class C | 2,117,785 | 27,032 | ||||||
Bizim Toptan Satis Magazalari AS | 1,929,500 | 26,361 | ||||||
USANA Health Sciences, Inc.1 | 667,000 | 24,899 | ||||||
Eurocash SA | 2,117,000 | 23,835 | ||||||
Davide Campari-Milano SpA | 3,500,000 | 23,830 | ||||||
Strauss Group Ltd.1 | 1,557,278 | 18,968 | ||||||
AMOREPACIFIC Corp. | 17,600 | 18,624 | ||||||
Origin Enterprises PLC | 3,213,300 | 16,071 | ||||||
Viscofan, SA, non-registered shares | 339,000 | 15,169 | ||||||
Philip Morris CR as | 22,200 | 13,856 | ||||||
Petra Foods Ltd. | 6,683,000 | 12,919 | ||||||
Real Nutriceutical Group Ltd. | 39,400,000 | 12,633 | ||||||
Fresh Market, Inc.1 | 250,900 | 12,031 | ||||||
Ralcorp Holdings, Inc.1 | 157,300 | 11,654 | ||||||
Church & Dwight Co., Inc. | 200,000 | 9,838 | ||||||
Tilaknager Industries Ltd.2 | 8,890,000 | 9,720 | ||||||
Pesquera Exalmar SA, Class A | 6,795,305 | 8,409 | ||||||
TreeHouse Foods, Inc.1 | 130,000 | 7,735 | ||||||
HITEJINRO CO., LTD. | 303,039 | 6,887 | ||||||
Central European Distribution Corp.1 | 1,338,000 | 6,837 | ||||||
Sundrug Co., Ltd. | 194,900 | 6,028 | ||||||
Godrej Consumer Products Ltd. | 605,237 | 5,704 | ||||||
Milkiland NV1 | 378,096 | 2,062 | ||||||
1,008,228 | ||||||||
UTILITIES — 1.80% | ||||||||
ENN Energy Holdings Ltd.2 | 57,213,000 | 197,450 | ||||||
Manila Water Co., Inc. | 81,300,900 | 43,931 | ||||||
Glow Energy PCL | 19,930,000 | 39,731 | ||||||
Energy World Corp. Ltd.1 | 39,693,382 | 32,276 | ||||||
Greenko Group PLC1,2 | 7,677,931 | 15,474 | ||||||
Mytrah Energy Ltd.1 | 7,918,000 | 14,564 | ||||||
Equatorial Energia SA, ordinary nominative | 1,740,000 | 13,059 | ||||||
Hyflux Ltd | 3,903,000 | 4,642 | ||||||
361,127 | ||||||||
TELECOMMUNICATION SERVICES — 1.19% | ||||||||
Telephone and Data Systems, Inc. | 3,039,069 | 70,355 | ||||||
tw telecom inc.1 | 2,645,000 | 58,613 | ||||||
Leap Wireless International, Inc.1 | 3,308,000 | 28,879 | ||||||
MetroPCS Communications, Inc.1 | 2,961,670 | 26,714 | ||||||
Total Access Communication PCL | 9,964,000 | 26,485 | ||||||
eAccess Ltd. | 86,275 | 19,231 | ||||||
Hutchison Telecommunications Hong Kong Holdings Ltd. | 22,200,000 | 9,405 | ||||||
239,682 | ||||||||
MISCELLANEOUS — 4.99% | ||||||||
Other common stocks in initial period of acquisition | 1,002,971 | |||||||
Total common stocks (cost: $14,521,207,000) | 18,589,273 | |||||||
Preferred stocks — 0.08% | ||||||||
FINANCIALS — 0.08% | ||||||||
Zions Bancorporation, Series C, 9.50% noncumulative depositary shares | 631,000 | 16,450 | ||||||
Total preferred stocks (cost: $13,738,000) | 16,450 | |||||||
Warrants — 0.02% | ||||||||
INDUSTRIALS — 0.02% | ||||||||
Goodpack Ltd., warrants, expire 20121,2 | 5,272,000 | 4,446 | ||||||
ENERGY — 0.00% | ||||||||
Pacific Coal, SA, warrants, expire 20161,2,3 | 8,500,000 | 213 | ||||||
MATERIALS — 0.00% | ||||||||
Gran Colombia Gold SA, warrants, expire 20151,2 | 1,086,500 | 185 | ||||||
Duluth Exploration Ltd., warrants, expire 20131,4 | 43,753 | 4 | ||||||
189 | ||||||||
INFORMATION TECHNOLOGY — 0.00% | ||||||||
Kingboard Chemical Holdings Ltd., warrants, expire 20121 | 1,946,120 | 34 | ||||||
Total warrants (cost: $2,398,000) | 4,882 | |||||||
Shares or | Value | |||||||
Convertible securities — 0.45% | principal amount | (000 | ) | |||||
CONSUMER DISCRETIONARY — 0.23% | ||||||||
Coupons.com Inc., Series B, convertible preferred1,2,4,5 | 8,191,724 | $ | 45,000 | |||||
Spot Runner, Inc., Series C, convertible preferred1,4,5 | 1,626,016 | — | ||||||
45,000 | ||||||||
ENERGY — 0.12% | ||||||||
Halcón Resources Corp. 8.00% convertible preferred 20181,3,4 | 244 | 20,828 | ||||||
Harvest Natural Resources, Inc. 8.25% convertible notes 2013 | $ | 3,000,000 | 3,945 | |||||
24,773 | ||||||||
FINANCIALS — 0.07% | ||||||||
First Southern Bancorp, Inc., Series C, convertible preferred1,2,4,5 | 2,299 | 9,148 | ||||||
National Financial Partners Corp. 4.00% convertible notes 20172 | $ | 4,000,000 | 5,435 | |||||
14,583 | ||||||||
INFORMATION TECHNOLOGY — 0.03% | ||||||||
Quantum Corp. 3.50% convertible notes 20152 | $ | 4,900,000 | 4,961 | |||||
HEALTH CARE — 0.00% | ||||||||
Savient Pharmaceuticals, Inc. 4.75% convertible notes 20182 | $ | 820,000 | 344 | |||||
Total convertible securities (cost: $87,979,000) | 89,661 | |||||||
Principal amount | ||||||||
Bonds & notes — 0.24% | (000 | ) | ||||||
TELECOMMUNICATION SERVICES — 0.17% | ||||||||
Clearwire Communications and Clearwire Finance, Inc., Series B, 12.00% 20153 | $ | 22,585 | 22,359 | |||||
Clearwire Communications and Clearwire Finance, Inc., Series A, 12.00% 20153 | 11,200 | 11,088 | ||||||
33,447 | ||||||||
FINANCIALS — 0.08% | ||||||||
First Niagara Financial Group, Inc. 7.25% 2021 | 11,100 | 11,898 | ||||||
Synovus Financial Corp. 5.125% 2017 | 3,715 | 3,427 | ||||||
15,325 | ||||||||
Total bonds & notes (cost: $41,611,000) | 48,772 | |||||||
Short-term securities — 6.72% | ||||||||
Fannie Mae 0.055%–0.20% due 5/2–10/2/2012 | 310,890 | 310,766 | ||||||
U.S. Treasury Bills 0.055%–0.131% due 4/5–8/16/2012 | 280,000 | 279,937 | ||||||
Federal Home Loan Bank 0.085%–0.20% due 4/11–12/20/2012 | 170,164 | 170,109 | ||||||
Freddie Mac 0.07%–0.17% due 6/4/2012–1/9/2013 | 101,225 | 101,144 | ||||||
Hydro-Québec 0.13% due 5/22/20123 | 50,000 | 49,977 | ||||||
Québec (Province of) 0.13% due 5/30/20123 | 21,700 | 21,688 | ||||||
Jupiter Securitization Co., LLC 0.12% due 4/12/20123 | 65,000 | 64,997 | ||||||
Svenska Handelsbanken Inc. 0.28% due 5/17/20123 | 50,000 | 49,986 | ||||||
ANZ National (International) Ltd. 0.32% due 5/21/20123 | 47,000 | 46,979 | ||||||
Old Line Funding, LLC 0.24% due 6/15/20123 | 40,039 | 40,028 | ||||||
Private Export Funding Corp. 0.20% due 7/30/20123 | 35,000 | 34,944 | ||||||
Barclays U.S. Funding Corp. 0.10% due 4/2/2012 | 32,250 | 32,250 | ||||||
Regents of the University of California 0.17% due 6/18/2012 | 30,196 | 30,183 | ||||||
Province of Ontario 0.08% due 4/13/2012 | 25,000 | 24,997 | ||||||
Toyota Motor Credit Corp. 0.19% due 5/15/2012 | 25,000 | 24,994 | ||||||
Standard Chartered Bank 0.45% due 5/17/20123 | 25,000 | 24,988 | ||||||
Toronto-Dominion Holdings USA Inc. 0.17% due 5/14/20123 | 13,200 | 13,198 | ||||||
Paccar Financial Corp. 0.12% due 4/5/2012 | 11,100 | 11,100 | ||||||
NetJets Inc. 0.12% due 5/2/20123 | 10,000 | 9,999 | ||||||
BHP Billiton Finance (USA) Limited 0.15% due 4/23/20123 | 8,600 | 8,598 | ||||||
Total short-term securities (cost: $1,350,899,000) | 1,350,862 | |||||||
Total investment securities (cost: $16,017,832,000) | 20,099,900 | |||||||
Other assets less liabilities | �� | 1,203 | ||||||
Net assets | $ | 20,101,103 |
As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year 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.
3Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of 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 $691,576,000, which represented 3.44% of the net assets of the fund.
4Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities was $187,474,000, which represented .93% of the net assets of the fund.
5Acquired through a private placement 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(s) | (000 | ) | (000 | ) | net assets | ||||||||
Coupons.com Inc., Series B, convertible preferred | 6/1/2011 | $ | 45,000 | $ | 45,000 | .22 | % | ||||||
Angie’s List, Inc. | 3/15/2011 | 20,000 | 37,173 | .19 | |||||||||
First Southern Bancorp, Inc. | 12/17/2009 | 28,378 | 12,911 | .06 | |||||||||
First Southern Bancorp, Inc., Series C, convertible preferred | 12/17/2009 | 2,299 | 9,148 | .05 | |||||||||
Talmer Bancorp, Inc. | 4/28/2010–2/14/2012 | 11,034 | 14,334 | .07 | |||||||||
Remark Media, Inc. | 12/17/2007 | 907 | 127 | .00 | |||||||||
Five Star Travel Corp. | 12/17/2007 | 24 | 26 | .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 | $ | 150,213 | $ | 118,719 | .59 | % |
Key to abbreviations
ADR = American Depositary Receipts
CDI = CREST Depository Interest
GDR = Global Depositary Receipts
CAD = Canadian dollars
GBP = British pounds
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 investment objectives, risks, charges and expenses. This and other important information is contained in the fund 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 800/421-4225 or visit the American Funds website at americanfunds.com.
MFGEFP-935-0512O-S29458
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, 2012 |
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, 2012 |
By /s/ Jeffrey P. Regal |
Jeffrey P. Regal, Treasurer and Principal Financial Officer |
Date: May 31, 2012 |