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, 2015
Michael W. Stockton
SMALLCAP World Fund, Inc.
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)
Copies to:
Mark D. Perlow
K&L Gates LLP
Four Embarcadero Center, Suite 1200
San Francisco, California 94111
(Counsel for the Registrant)
ITEM 1 – Reports to Stockholders
 | SMALLCAP World Fund® Semi-annual report
for the six months ended
March 31, 2015 |
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 more than 40 offered by one of the nation’s largest mutual fund families, American Funds, from Capital Group. For more than 80 years, Capital has invested with a long-term focus based on thorough research and attention to risk.
Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For current information and month-end results, visit americanfunds.com.
Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2015:
| Class A shares | | 1 year | | 5 years | | 10 years |
| | | | | | | |
| Reflecting 5.75% maximum sales charge | | –0.10% | | 9.80% | | 8.34% |
For other share class results, visit americanfunds.com and americanfundsretirement.com.
The total annual fund operating expense ratio was 1.07% for Class A shares as of the prospectus dated December 1, 2014.
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. Visit americanfunds.com for more information.
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. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
Fellow investors:
A strong showing from U.S. equities and continued economic improvement both here and in certain overseas markets helped SMALLCAP World Fund post strong absolute returns in the first half of its current fiscal year.
For the six-month period ended March 31, 2015, the fund posted a total return of 8.38%. This figure includes the reinvestment of a one-time capital gain payment, made on December 26, 2014, of $4.75 a share.
By way of comparison, the MSCI All Country World Small Cap Index — an unmanaged index of global small-cap equities that does not include fees or expenses — returned 6.22%, while the fund’s peer group, as represented by the Lipper Global Small-/Mid-Cap Funds Average, gained 3.83%.
We are gratified by these short-term results, but remain focused on long-term investing on behalf of our shareholders, and note that the fund maintains its advantage over its benchmark and peer group over longer periods of time, as seen in the table below.
Results at a glance
For periods ended March 31, 2015, with all distributions reinvested
| | | Cumulative total returns | | Average annual total returns |
| | | 6 months | | 1 year | | 5 years | | 10 years | | Lifetime
(since 4/30/90) |
| SMALLCAP World Fund (Class A shares) | | | 8.38 | % | | | 6.01 | % | | | 11.12 | % | | | 8.98 | % | | | 9.86 | % |
| MSCI All Country World Small Cap Index* | | | 6.22 | | | | 3.23 | | | | 11.00 | | | | 8.61 | | | | n/a | |
| Lipper Global Small-/Mid-Cap Funds Average | | | 3.83 | | | | 0.46 | | | | 9.65 | | | | 7.41 | | | | 9.50 | |
| * | The market index is unmanaged and, therefore, has no expenses. Investors cannot invest directly in an index. The market index is a free float-adjusted market capitalization weighted index that is designed to measure equity market results of smaller capitalization companies in both developed and emerging markets. Results reflect dividends net of withholding taxes. This index was not in existence as of the date the fund began investment operations; therefore, lifetime results are not available. |
Market overview
Over the first six months of SMALLCAP’s fiscal year, the U.S. equity markets continued to climb higher, though not without volatility. The economy, while perhaps lackluster compared to previous recoveries, is still providing growth and opportunities.
The economic picture is more muddled overseas, and this has been reflected in equity markets. The divergence in health among European stock markets remains wide — some have made strong gains, others lag considerably. The strong U.S. dollar further served to weaken returns for some European-listed equities, along with international companies focused on exports to the U.S.
In all of this, the U.S. Federal Reserve has intimated it may raise rates sometime this year. There are numerous theories as to how this will affect both domestic and overseas equities, and the portfolio managers within the fund have multiple viewpoints on the matter.
The fund’s holdings
The fund’s U.S. holdings, at roughly 49% of the fund as of March 31, were underweight compared to the MSCI All Country World Small Cap Index, though the fund’s return from its American holdings outpaced that of the index. This, we believe, is reflective of our bottom-up philosophy. The fund also saw strong returns from equities in Belgium, Denmark, Japan and Thailand, while equities from Brazil, Greece, Mexico and Russia hampered returns during the period.
Where are SMALLCAP’s holdings located?
| As of March 31, 2015 | Percent of net assets |
| ▀ | United States | | | 48.9 | % |
| ▀ | Asia & Pacific Basin | | | 21.9 | |
| ▀ | Europe | | | 19.7 | |
| ▀ | Other (including Canada & Latin America) | | | 4.8 | |
| ▀ | Short-term securities & other assets less liabilities | | | 4.7 | |
| As of September 30, 2014 | Percent of net assets |
| ▀ | United States | | | 46.0 | % |
| ▀ | Asia & Pacific Basin | | | 21.9 | |
| ▀ | Europe | | | 18.5 | |
| ▀ | Other (including Canada & Latin America) | | | 5.1 | |
| ▀ | Short-term securities & other assets less liabilities | | | 8.5 | |
Among sectors, health care stocks provided strong returns, particularly those in the biotech area. Consumer discretionary shares, particularly Netflix and zulily, weighed on relative returns.
The fund held 4.7% of its total holdings in cash as of March 31. While this can detract from total returns in strong equity markets, we feel having cash on hand can provide the capital necessary to take advantage of investment opportunities on behalf of our shareholders. Each portfolio manager has the leeway to determine how much cash he or she wishes to have on hand.
Looking ahead
While we are aware of the many varying views as to the effect of rising interest rates, we nonetheless believe the U.S. economy has room to continue growing over the coming quarters. The Federal Reserve remains accommodative, even with the potential of a handful of modest interest rate hikes through the rest of 2015.
Overseas, questions remain regarding the economic health of China and other emerging markets, along with continued concern about several smaller European markets. With that said, we continue to find interesting potential investments among the thousands of listed small companies around the world. Our mission is to find those opportunities we believe will deliver robust returns over the long term — everything from a fast-growing retailer in Taiwan to a California biotechnology company to a British industrial company with very high profitability. We will continue to work hard to uncover these potential investments for the fund’s shareholders.
We thank you for your continued faith and trust, and look forward to reporting to you again in six months.
Cordially,
 |  |
Jonathan Knowles
Vice Chairman of the Board | Gregory W. Wendt
President |
May 12, 2015
For current information about the fund, visit americanfunds.com.
| Summary investment portfolio March 31, 2015 | unaudited |
| | |
| Industry sector diversification | Percent of net assets |
| Country diversification by domicile | | Percent of
net assets |
| United States | | | 48.90 | % |
| United Kingdom | | | 10.00 | |
| Euro zone* | | | 6.06 | |
| India | | | 4.81 | |
| Japan | | | 4.63 | |
| China | | | 2.81 | |
| Canada | | | 2.55 | |
| Hong Kong | | | 2.48 | |
| Taiwan | | | 1.54 | |
| Other countries | | | 11.52 | |
| Short-term securities & other assets less liabilities | | | 4.70 | |
| * | 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, Portugal, Slovenia and Spain. |
| Common stocks 94.56% | | Shares | | | Value
(000) | |
| Health care 18.85% | | | | | | | | |
| Incyte Corp.1 | | | 4,367,600 | | | $ | 400,334 | |
| Endo International PLC1 | | | 2,900,518 | | | | 260,176 | |
| Endo International PLC (CAD denominated)1 | | | 100,000 | | | | 9,005 | |
| bluebird bio, Inc.1,2 | | | 2,091,565 | | | | 252,598 | |
| Molina Healthcare, Inc.1,2 | | | 3,488,100 | | | | 234,714 | |
| Synageva BioPharma Corp.1,2 | | | 2,179,974 | | | | 212,613 | |
| Centene Corp.1 | | | 2,970,000 | | | | 209,949 | |
| Myriad Genetics, Inc.1,2 | | | 5,780,656 | | | | 204,635 | |
| BioMarin Pharmaceutical Inc.1 | | | 1,296,500 | | | | 161,570 | |
| Hikma Pharmaceuticals PLC3 | | | 4,840,153 | | | | 152,483 | |
| EXACT Sciences Corp.1,2 | | | 6,605,000 | | | | 145,442 | |
| GW Pharmaceuticals PLC (ADR)1,2 | | | 1,565,700 | | | | 142,682 | |
| Kite Pharma, Inc.1 | | | 1,546,200 | | | | 89,185 | |
| Kite Pharma, Inc.1,4 | | | 481,446 | | | | 27,770 | |
| Brookdale Senior Living Inc.1 | | | 3,046,750 | | | | 115,045 | |
| athenahealth, Inc.1 | | | 929,371 | | | | 110,958 | |
| Juno Therapeutics, Inc.1,3,5 | | | 2,132,501 | | | | 109,360 | |
| | | Shares | | | Value
(000) | |
| Spire Healthcare Group PLC1,3 | | | 17,738,990 | | | $ | 98,331 | |
| Sysmex Corp.3 | | | 1,698,000 | | | | 94,381 | |
| Zeltiq Aesthetics, Inc.1,2 | | | 3,002,044 | | | | 92,553 | |
| Other securities | | | | | | | 1,996,852 | |
| | | | | | | | 5,120,636 | |
| | | | | | | | | |
| Consumer discretionary 18.48% | | | | | | | | |
| Netflix, Inc.1 | | | 812,043 | | | | 338,370 | |
| Domino’s Pizza, Inc.2 | | | 3,125,769 | | | | 314,296 | |
| Lions Gate Entertainment Corp.2 | | | 6,996,000 | | | | 237,304 | |
| Paddy Power PLC3 | | | 2,229,500 | | | | 191,095 | |
| Ted Baker PLC2,3 | | | 3,154,993 | | | | 116,931 | |
| Dollarama Inc. | | | 2,078,000 | | | | 116,160 | |
| John Wiley & Sons, Inc., Class A | | | 1,740,530 | | | | 106,416 | |
| Mr Price Group Ltd.3 | | | 4,926,826 | | | | 105,372 | |
| Melco International Development Ltd.3 | | | 59,147,000 | | | | 99,837 | |
| Other securities | | | | | | | 3,392,264 | |
| | | | | | | | 5,018,045 | |
| | | | | | | | | |
| Industrials 13.38% | | | | | | | | |
| AA PLC1,2,3 | | | 43,792,318 | | | | 261,265 | |
| Moog Inc., Class A1 | | | 2,572,800 | | | | 193,089 | |
| Hoshizaki Electric Co., Ltd.3 | | | 2,780,700 | | | | 181,316 | |
| ITT Corp. | | | 3,508,121 | | | | 140,009 | |
| Loomis AB, Class B3 | | | 3,690,452 | | | | 113,050 | |
| Northgate PLC2,3 | | | 10,626,805 | | | | 93,170 | |
| Spirax-Sarco Engineering PLC3 | | | 1,781,000 | | | | 89,966 | |
| MonotaRO Co., Ltd.3 | | | 2,460,600 | | | | 89,339 | |
| Other securities | | | | | | | 2,472,762 | |
| | | | | | | | 3,633,966 | |
| | | | | | | | | |
| Information technology 13.13% | | | | | | | | |
| Qorvo, Inc.1 | | | 3,884,370 | | | | 309,584 | |
| AAC Technologies Holdings Inc.3 | | | 29,127,750 | | | | 179,204 | |
| Kakaku.com, Inc.3 | | | 9,426,000 | | | | 156,354 | |
| Demandware, Inc.1,2 | | | 2,486,056 | | | | 151,401 | |
| Palo Alto Networks, Inc.1 | | | 1,014,350 | | | | 148,176 | |
| Zynga Inc., Class A1 | | | 47,635,000 | | | | 135,760 | |
| Finisar Corp.1,2 | | | 5,318,000 | | | | 113,486 | |
| Topcon Corp.3 | | | 4,063,110 | | | | 99,691 | |
| Hamamatsu Photonics KK3 | | | 3,083,200 | | | | 93,318 | |
| Halma PLC3 | | | 8,614,967 | | | | 89,216 | |
| Other securities | | | | | | | 2,088,878 | |
| | | | | | | | 3,565,068 | |
| | | | | | | | | |
| Financials 10.25% | | | | | | | | |
| SVB Financial Group1 | | | 1,305,700 | | | | 165,876 | |
| Umpqua Holdings Corp. | | | 6,904,541 | | | | 118,620 | |
| Validus Holdings, Ltd. | | | 2,813,000 | | | | 118,427 | |
| Financial Engines, Inc. | | | 2,520,930 | | | | 105,450 | |
| ING Vysya Bank Ltd.3 | | | 7,018,649 | | | | 104,885 | |
| GT Capital Holdings, Inc.3 | | | 3,485,200 | | | | 104,101 | |
| Kotak Mahindra Bank Ltd.3 | | | 4,940,000 | | | | 103,528 | |
| Common stocks (continued) | | Shares | | | Value
(000) | |
| Financials (continued) | | | | | | | | |
| Haversham Holdings PLC1,2,3 | | | 42,870,000 | | | $ | 101,749 | |
| PacWest Bancorp | | | 1,942,149 | | | | 91,067 | |
| Other securities | | | | | | | 1,771,085 | |
| | | | | | | | 2,784,788 | |
| | | | | | | | | |
| Consumer staples 5.63% | | | | | | | | |
| Emami Ltd.3 | | | 8,965,000 | | | | 143,819 | |
| Emmi AG2,3 | | | 286,000 | | | | 98,831 | |
| Pinnacle Foods Inc. | | | 2,389,050 | | | | 97,497 | |
| Super Group Ltd.2,3 | | | 89,194,000 | | | | 96,796 | |
| Raia Drogasil SA, ordinary nominative | | | 10,577,374 | | | | 94,918 | |
| Other securities | | | | | | | 998,695 | |
| | | | | | | | 1,530,556 | |
| | | | | | | | | |
| Materials 4.15% | | | | | | | | |
| Chr. Hansen Holding A/S3 | | | 2,617,000 | | | | 120,203 | |
| James Hardie Industries PLC (CDI)3 | | | 9,733,929 | | | | 112,552 | |
| Other securities | | | | | | | 893,272 | |
| | | | | | | | 1,126,027 | |
| | | | | | | | | |
| Energy 3.04% | | | | | | | | |
| InterOil Corp.1 | | | 2,344,500 | | | | 108,175 | |
| Diamondback Energy, Inc.1 | | | 1,180,950 | | | | 90,744 | |
| Other securities | | | | | | | 628,230 | |
| | | | | | | | 827,149 | |
| | | | | | | | | |
| Utilities 1.45% | | | | | | | | |
| ENN Energy Holdings Ltd.3 | | | 20,923,000 | | | | 128,274 | |
| Other securities | | | | | | | 264,822 | |
| | | | | | | | 393,096 | |
| | | | | | | | | |
| Telecommunication services 1.25% | | | | | | | | |
| Other securities | | | | | | | 339,585 | |
| |
| Miscellaneous 4.95% | | | | | | | | |
| Other common stocks in initial period of acquisition | | | | | | | 1,343,517 | |
| | | | | | | | | |
| Total common stocks (cost: $18,262,925,000) | | | | | | | 25,682,433 | |
| |
| Preferred securities 0.01% | | | | | | | | |
| Other 0.01% | | | | | | | | |
| Other securities | | | | | | | 2,664 | |
| | | | | | | | | |
| Total preferred securities (cost: $1,515,000) | | | | | | | 2,664 | |
| |
| Rights & warrants 0.05% | | | | | | | | |
| Other 0.05% | | | | | | | | |
| Other securities | | | | | | | 13,565 | |
| | | Shares | | | Value
(000) | |
| Miscellaneous 0.00% | | | | | | | | |
| Other rights & warrants in initial period of acquisition | | | | | | $ | 1,281 | |
| | | | | | | | | |
| Total rights & warrants (cost: $927,000) | | | | | | | 14,846 | |
| |
| Convertible stocks 0.52% | | | | | | | | |
| Other 0.52% | | | | | | | | |
| Other securities | | | | | | | 139,921 | |
| | | | | | | | | |
| Total convertible stocks (cost: $127,587,000) | | | | | | | 139,921 | |
| | | | | | | | | |
| Bonds, notes & other debt instruments 0.16% | | Principal amount
(000) | | | | | |
| Other bonds & notes 0.16% | | | | | | | | |
| Other securities | | | | | | | 44,248 | |
| | | | | | | | | |
| Total bonds, notes & other debt instruments (cost: $43,179,000) | | | | | | | 44,248 | |
| |
| Short-term securities 5.36% | | | | | | | | |
| Federal Home Loan Bank 0.06%–0.19% due 4/24/2015–11/16/2015 | | $ | 325,600 | | | | 325,442 | |
| Freddie Mac 0.10%–0.17% due 6/16/2015–12/1/2015 | | | 227,400 | | | | 227,339 | |
Mitsubishi UFJ Trust and Banking Corp. 0.24%–0.25%
due 5/6/2015–6/3/20155 | | | 78,700 | | | | 78,680 | |
| Victory Receivables Corp. 0.18% due 5/20/20155 | | | 50,000 | | | | 49,986 | |
| Other securities | | | | | | | 773,710 | |
| | | | | | | | | |
| Total short-term securities (cost: $1,455,085,000) | | | | | | | 1,455,157 | |
| Total investment securities 100.66% (cost: $19,891,218,000) | | | | | | | 27,339,269 | |
| Other assets less liabilities (0.66)% | | | | | | | (178,752 | ) |
| | | | | | | | | |
| Net assets 100.00% | | | | | | $ | 27,160,517 | |
This 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.
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.
Forward currency contracts
The fund has entered into forward currency contracts as shown in the following table. The average notional amount of open forward currency contracts was $163,506,000 over the prior 12-month period.
| | | | | | | Contract amount | | Unrealized
appreciation
(depreciation) | |
| | | Settlement date | | Counterparty | | Receive
(000) | | Deliver
(000) | | at 3/31/2015
(000) | |
| Sales: | | | | | | | | | | | | | |
| Australian dollars | | 4/23/2015 | | Barclays Bank PLC | | $2,206 | | A$2,900 | | | | $1 | |
| Australian dollars | | 5/1/2015 | | HSBC Bank | | $26,286 | | A$33,400 | | | | 895 | |
| Australian dollars | | 5/28/2015 | | UBS AG | | $3,037 | | A$4,000 | | | | 1 | |
| British pounds | | 4/20/2015 | | Citibank | | $6,028 | | £4,000 | | | | 95 | |
| British pounds | | 4/22/2015 | | HSBC Bank | | $2,010 | | £1,360 | | | | (7 | ) |
| British pounds | | 4/22/2015 | | HSBC Bank | | $2,948 | | £2,000 | | | | (18 | ) |
| British pounds | | 4/23/2015 | | HSBC Bank | | $6,321 | | £4,290 | | | | (42 | ) |
| British pounds | | 5/11/2015 | | Barclays Bank PLC | | $31,237 | | £21,063 | | | | 1 | |
| Canadian dollars | | 4/9/2015 | | UBS AG | | $28,632 | | C$34,000 | | | | 1,790 | |
| Canadian dollars | | 4/13/2015 | | Bank of America, N.A. | | $2,836 | | C$3,370 | | | | 175 | |
| Euros | | 4/15/2015 | | HSBC Bank | | $8,503 | | €7,726 | | | | 194 | |
| Euros | | 4/20/2015 | | Citibank | | $9,859 | | €9,200 | | | | (36 | ) |
| Euros | | 4/22/2015 | | HSBC Bank | | $3,941 | | €3,750 | | | | (93 | ) |
| Japanese yen | | 4/9/2015 | | UBS AG | | $6,460 | | ¥768,000 | | | | 56 | |
| Japanese yen | | 4/9/2015 | | HSBC Bank | | $9,990 | | ¥1,200,000 | | | | (17 | ) |
| Japanese yen | | 4/14/2015 | | UBS AG | | $9,204 | | ¥1,117,300 | | | | (114 | ) |
| Japanese yen | | 4/16/2015 | | Bank of America, N.A. | | $5,977 | | ¥725,000 | | | | (70 | ) |
| Japanese yen | | 4/20/2015 | | Citibank | | $3,004 | | ¥364,000 | | | | (31 | ) |
| Japanese yen | | 4/23/2015 | | JPMorgan Chase | | $9,313 | | ¥1,125,000 | | | | (70 | ) |
| Japanese yen | | 4/27/2015 | | Bank of America, N.A. | | $49,603 | | ¥5,940,000 | | | | 55 | |
| Japanese yen | | 4/27/2015 | | UBS AG | | $7,307 | | ¥875,000 | | | | 8 | |
| Japanese yen | | 5/19/2015 | | Bank of New York Mellon | | $5,243 | | ¥625,000 | | | | 28 | |
| | | | | | | | | | | | | $2,801 | |
Investments in affiliates
A company is 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, 2015, appear below.
| | | Beginning
shares | | | Additions | | | Reductions | | | Ending
shares | | | Dividend
income
(000) | | | Value of
affiliates at
3/31/2015
(000) | |
| Domino’s Pizza, Inc. | | | 3,218,769 | | | | — | | | | 93,000 | | | | 3,125,769 | | | $ | 1,774 | | | $ | 314,296 | |
| AA PLC1,3 | | | 44,319,669 | | | | — | | | | 527,351 | | | | 43,792,318 | | | | — | | | | 261,265 | |
| bluebird bio, Inc.1 | | | 2,287,565 | | | | — | | | | 196,000 | | | | 2,091,565 | | | | — | | | | 252,598 | |
| Lions Gate Entertainment Corp. | | | 7,146,000 | | | | — | | | | 150,000 | | | | 6,996,000 | | | | 838 | | | | 237,304 | |
| Molina Healthcare, Inc.1 | | | 3,488,100 | | | | — | | | | — | | | | 3,488,100 | | | | — | | | | 234,714 | |
| Synageva BioPharma Corp.1 | | | 2,190,074 | | | | 35,000 | | | | 45,100 | | | | 2,179,974 | | | | — | | | | 212,613 | |
| Myriad Genetics, Inc.1 | | | 5,725,556 | | | | 120,000 | | | | 64,900 | | | | 5,780,656 | | | | — | | | | 204,635 | |
| Demandware, Inc.1 | | | 1,803,000 | | | | 683,056 | | | | — | | | | 2,486,056 | | | | — | | | | 151,401 | |
| EXACT Sciences Corp.1,6 | | | 3,001,000 | | | | 3,604,000 | | | | — | | | | 6,605,000 | | | | — | | | | 145,442 | |
| GW Pharmaceuticals PLC (ADR)1 | | | 1,215,600 | | | | 350,100 | | | | — | | | | 1,565,700 | | | | — | | | | 142,682 | |
| Ted Baker PLC3 | | | 3,154,993 | | | | — | | | | — | | | | 3,154,993 | | | | 570 | | | | 116,931 | |
| Finisar Corp.1 | | | 4,833,000 | | | | 485,000 | | | | — | | | | 5,318,000 | | | | — | | | | 113,486 | |
| Haversham Holdings PLC1,3 | | | — | | | | 42,870,000 | | | | — | | | | 42,870,000 | | | | — | | | | 101,749 | |
| Emmi AG3 | | | 240,600 | | | | 45,400 | | | | — | | | | 286,000 | | | | — | | | | 98,831 | |
| Super Group Ltd.3 | | | 89,194,000 | | | | — | | | | — | | | | 89,194,000 | | | | — | | | | 96,796 | |
| Northgate PLC3 | | | 10,626,805 | | | | — | | | | — | | | | 10,626,805 | | | | 718 | | | | 93,170 | |
| Zeltiq Aesthetics, Inc.1 | | | 3,002,044 | | | | — | | | | — | | | | 3,002,044 | | | | — | | | | 92,553 | |
| King Slide Works Co., Ltd.3 | | | 4,913,000 | | | | 659,000 | | | | — | | | | 5,572,000 | | | | — | | | | 83,840 | |
| CONMED Corp. | | | 710,000 | | | | 925,000 | | | | — | | | | 1,635,000 | | | | 391 | | | | 82,551 | |
| WHA Corp. PCL, foreign3 | | | — | | | | 77,735,590 | | | | — | | | | 77,735,590 | | | | — | | | | 75,164 | |
| WHA Corp. PCL, warrants, expire 20201 | | | — | | | | 6,909,830 | | | | — | | | | 6,909,830 | | | | — | | | | 1,656 | |
| HKBN Ltd.1,3 | | | — | | | | 59,297,000 | | | | — | | | | 59,297,000 | | | | — | | | | 73,733 | |
| Wizz Air Holdings PLC1,3 | | | — | | | | 3,498,684 | | | | — | | | | 3,498,684 | | | | — | | | | 72,088 | |
| Ocular Therapeutix, Inc.1,6 | | | 735,000 | | | | 970,700 | | | | — | | | | 1,705,700 | | | | — | | | | 71,614 | |
| Intrepid Potash, Inc.1 | | | 4,895,000 | | | | 745,352 | | | | — | | | | 5,640,352 | | | | — | | | | 65,146 | |
| Kaveri Seed Co. Ltd.3 | | | 3,470,177 | | | | 660,793 | | | | — | | | | 4,130,970 | | | | 328 | | | | 64,953 | |
| Continental Building Products, Inc.1 | | | 2,705,000 | | | | — | | | | — | | | | 2,705,000 | | | | — | | | | 61,106 | |
| Takeuchi Mfg. Co., Ltd.3 | | | 1,232,300 | | | | 74,000 | | | | — | | | | 1,306,300 | | | | 267 | | | | 59,208 | |
| eMemory Technology Inc.3 | | | — | | | | 5,358,000 | | | | — | | | | 5,358,000 | | | | — | | | | 58,201 | |
| Galapagos NV1,3 | | | 2,422,427 | | | | — | | | | — | | | | 2,422,427 | | | | — | | | | 57,491 | |
| Coupons.com Inc.1 | | | 4,587,996 | | | | 293,617 | | | | — | | | | 4,881,613 | | | | — | | | | 57,310 | |
| Cox & Kings Ltd.3 | | | 9,592,000 | | | | 1,425,346 | | | | 610,000 | | | | 10,407,346 | | | | — | | | | 53,850 | |
| Cox & Kings Ltd. (GDR)3 | | | 330,000 | | | | — | | | | — | | | | 330,000 | | | | — | | | | 1,707 | |
| Iridium Communications Inc.1 | | | 4,889,615 | | | | — | | | | — | | | | 4,889,615 | | | | — | | | | 47,478 | |
| Iridium Communications Inc., Series A, convertible preferred5 | | | 60,000 | | | | — | | | | — | | | | 60,000 | | | | — | | | | 7,486 | |
| POYA International Co., Ltd.3 | | | 4,712,660 | | | | 630,000 | | | | — | | | | 5,342,660 | | | | — | | | | 50,776 | |
| Stock Spirits Group PLC3 | | | 16,000,000 | | | | — | | | | — | | | | 16,000,000 | | | | — | | | | 49,061 | |
| | | Beginning
shares | | | Additions | | | Reductions | | | Ending
shares | | | Dividend
income
(000) | | | Value of
affiliates at
3/31/2015
(000) | |
| zooplus AG, non-registered shares1,3 | | | 148,400 | | | | 379,378 | | | | — | | | | 527,778 | | | $ | — | | | $ | 48,330 | |
| OM Group, Inc. | | | 1,560,000 | | | | — | | | | — | | | | 1,560,000 | | | | 246 | | | | 46,847 | |
| Xoom Corp.1 | | | 3,035,570 | | | | 40,235 | | | | — | | | | 3,075,805 | | | | — | | | | 45,184 | |
| Installed Building Products, Inc.1 | | | 2,068,345 | | | | — | | | | — | | | | 2,068,345 | | | | — | | | | 45,007 | |
| Tele Columbus AG1,3 | | | — | | | | 2,976,000 | | | | — | | | | 2,976,000 | | | | — | | | | 43,803 | |
| Neovasc Inc. (CAD denominated)1 | | | 4,277,000 | | | | — | | | | — | | | | 4,277,000 | | | | — | | | | 38,497 | |
| Neovasc Inc.1 | | | — | | | | 503,836 | | | | — | | | | 503,836 | | | | — | | | | 4,534 | |
| Inphi Corp.1 | | | 1,785,699 | | | | 555,000 | | | | — | | | | 2,340,699 | | | | — | | | | 41,735 | |
| Repco Home Finance Ltd.3 | | | 4,040,440 | | | | — | | | | 231,083 | | | | 3,809,357 | | | | — | | | | 38,963 | |
| TravelCenters of America LLC1 | | | 2,023,750 | | | | — | | | | — | | | | 2,023,750 | | | | — | | | | 35,294 | |
| RIB Software AG3 | | | 2,476,356 | | | | — | | | | — | | | | 2,476,356 | | | | 4 | | | | 34,822 | |
| XenoPort, Inc.1 | | | 4,769,000 | | | | — | | | | — | | | | 4,769,000 | | | | — | | | | 33,955 | |
| Century Communities, Inc.1 | | | — | | | | 1,716,000 | | | | — | | | | 1,716,000 | | | | — | | | | 33,170 | |
| Actua Corp1 | | | 2,094,000 | | | | — | | | | — | | | | 2,094,000 | | | | — | | | | 32,436 | |
| Flexion Therapeutics, Inc.1 | | | 979,252 | | | | 440,000 | | | | — | | | | 1,419,252 | | | | — | | | | 31,962 | |
| NCC Group PLC3,6 | | | 5,665,000 | | | | 5,175,000 | | | | — | | | | 10,840,000 | | | | 126 | | | | 31,529 | |
| Manappuram Finance Ltd.3 | | | 54,930,986 | | | | — | | | | — | | | | 54,930,986 | | | | 798 | | | | 28,460 | |
| ARC Document Solutions, Inc.1 | | | 3,734,755 | | | | — | | | | 830,804 | | | | 2,903,951 | | | | — | | | | 26,803 | |
| EVINE Live Inc., Class A1 | | | 3,987,540 | | | | — | | | | — | | | | 3,987,540 | | | | — | | | | 26,756 | |
| ChemoCentryx, Inc.1 | | | 3,426,800 | | | | 40,440 | | | | — | | | | 3,467,240 | | | | — | | | | 26,178 | |
| VST Industries Ltd.3 | | | 1,003,400 | | | | — | | | | — | | | | 1,003,400 | | | | — | | | | 25,179 | |
| Domo, Inc., Series D-2, convertible preferred3,4 | | | — | | | | 2,965,036 | | | | — | | | | 2,965,036 | | | | — | | | | 25,000 | |
| KEYW Holding Corp.1 | | | 2,836,400 | | | | — | | | | — | | | | 2,836,400 | | | | — | | | | 23,344 | |
| Sinmag Equipment Corp.3,6 | | | 75,000 | | | | 3,725,000 | | | | — | | | | 3,800,000 | | | | — | | | | 22,393 | |
| Suprema Inc.3 | | | 868,200 | | | | — | | | | — | | | | 868,200 | | | | — | | | | 21,668 | |
| Sirius Minerals Plc1,3 | | | 139,533,460 | | | | 19,004,300 | | | | — | | | | 158,537,760 | | | | — | | | | 20,753 | |
| Sirius Minerals Plc, warrants, expire 20151,3 | | | 40,000,000 | | | | — | | | | — | | | | 40,000,000 | | | | — | | | | 89 | |
| Papa Murphy’s Holdings, Inc.1 | | | 1,102,000 | | | | 24,400 | | | | — | | | | 1,126,400 | | | | — | | | | 20,433 | |
| Beauty Community PCL, foreign registered3 | | | — | | | | 15,000,000 | | | | — | | | | 15,000,000 | | | | — | | | | 19,682 | |
| J. Kumar Infraprojects Ltd.3 | | | 1,780,000 | | | | — | | | | — | | | | 1,780,000 | | | | — | | | | 19,404 | |
| Mahindra Lifespace Developers Ltd.3 | | | 2,157,380 | | | | — | | | | — | | | | 2,157,380 | | | | — | | | | 16,240 | |
| Greenko Group PLC1,3 | | | 9,748,155 | | | | — | | | | — | | | | 9,748,155 | | | | — | | | | 15,042 | |
| Trupanion, Inc.1 | | | — | | | | 1,822,500 | | | | — | | | | 1,822,500 | | | | — | | | | 14,580 | |
| Delphi Energy Corp.1,6 | | | 6,713,685 | | | | 5,721,315 | | | | — | | | | 12,435,000 | | | | — | | | | 14,334 | |
| MagnaChip Semiconductor Corp.1 | | | 1,200,000 | | | | 1,155,000 | | | | — | | | | 2,355,000 | | | | — | | | | 12,882 | |
| ITT Educational Services, Inc.1 | | | 1,519,000 | | | | 350,000 | | | | — | | | | 1,869,000 | | | | — | | | | 12,691 | |
| Tribhovandas Bhimji Zaveri Ltd.3 | | | 4,335,732 | | | | — | | | | — | | | | 4,335,732 | | | | — | | | | 10,133 | |
| Mytrah Energy Ltd.1,3 | | | 10,418,000 | | | | — | | | | — | | | | 10,418,000 | | | | — | | | | 10,122 | |
| Talwalkars Better Value Fitness Ltd.3 | | | 1,694,000 | | | | — | | | | — | | | | 1,694,000 | | | | — | | | | 10,109 | |
| Adaptimmune Therapeutics Ltd., Series A, convertible preferred3,4 | | | — | | | | 16,938,900 | | | | — | | | | 16,938,900 | | | | — | | | | 9,951 | |
| | | Beginning
shares | | | Additions | | | Reductions | | | Ending
shares | | | Dividend
income
(000) | | | Value of
affiliates at
3/31/2015
(000) | |
| Lekoil Ltd. (CDI)1,3 | | | 14,070,000 | | | | 5,360,400 | | | | — | | | | 19,430,400 | | | $ | — | | | $ | 6,769 | |
| Lekoil Ltd. (CDI)1,5 | | | 5,360,400 | | | | — | | | | 5,360,400 | | | | — | | | | — | | | | — | |
| BNK Petroleum Inc.1 | | | 12,804,914 | | | | — | | | | — | | | | 12,804,914 | | | | — | | | | 5,662 | |
| Mood Media Corp.1 | | | 6,375,000 | | | | — | | | | — | | | | 6,375,000 | | | | — | | | | 3,171 | |
| Mood Media Corp. (CDI)1 | | | 3,710,000 | | | | — | | | | — | | | | 3,710,000 | | | | — | | | | 1,845 | |
| iEnergizer Ltd.1,3 | | | 7,650,500 | | | | — | | | | — | | | | 7,650,500 | | | | — | | | | 4,313 | |
| Savannah Petroleum PLC1,3 | | | 7,844,000 | | | | — | | | | — | | | | 7,844,000 | | | | — | | | | 3,433 | |
| GI Dynamics, Inc. (CDI)1,3 | | | 30,320,000 | | | | — | | | | — | | | | 30,320,000 | | | | — | | | | 3,134 | |
| San Leon Energy PLC1,3 | | | 155,300,000 | | | | — | | | | — | | | | 155,300,000 | | | | — | | | | 2,988 | |
| Cape Lambert Resources Ltd.3 | | | 47,330,825 | | | | — | | | | — | | | | 47,330,825 | | | | — | | | | 2,160 | |
| Powerland AG, non-registered shares1,3 | | | 1,200,000 | | | | — | | | | 44,824 | | | | 1,155,176 | | | | — | | | | 372 | |
| 7-Eleven Malaysia Holdings Bhd.3,7 | | | 76,209,600 | | | | — | | | | 32,753,800 | | | | 43,455,800 | | | | 600 | | | | — | |
| Achillion Pharmaceuticals, Inc.1,7 | | | 4,930,000 | | | | 185,000 | | | | 2,790,000 | | | | 2,325,000 | | | | — | | | | — | |
| Boer Power Holdings Ltd.3,7 | | | 39,202,000 | | | | — | | | | 5,000,000 | | | | 34,202,000 | | | | 843 | | | | — | |
| China High Precision | | | | | | | | | | | | | | | | | | | | | | | | |
| Automation Group Ltd.3,7 | | | 53,032,000 | | | | — | | | | 53,032,000 | | | | — | | | | — | | | | — | |
| Duluth Metals Ltd.1,7 | | | 7,024,000 | | | | — | | | | 7,024,000 | | | | — | | | | — | | | | — | |
| Five Below, Inc.1,7 | | | 2,530,694 | | | | 467,000 | | | | 2,133,694 | | | | 864,000 | | | | — | | | | — | |
| Frigoglass SAIC1,3,7 | | | 3,052,380 | | | | — | | | | 588,362 | | | | 2,464,018 | | | | — | | | | — | |
| Gem Diamonds Ltd.1,3,7 | | | 7,625,000 | | | | — | | | | 4,365,090 | | | | 3,259,910 | | | | — | | | | — | |
| Houston Wire & Cable Co.7 | | | 1,150,000 | | | | — | | | | 281,906 | | | | 868,094 | | | | 276 | | | | — | |
| Mistras Group, Inc.7 | | | 1,460,000 | | | | — | | | | 1,460,000 | | | | — | | | | — | | | | — | |
| Mothercare PLC3,7 | | | 4,450,000 | | | | 4,005,000 | | | | — | | | | 8,455,000 | | | | — | | | | — | |
| Stock Building Supply Holdings, Inc.1,7 | | | 1,785,000 | | | | — | | | | 1,205,778 | | | | 579,222 | | | | — | | | | — | |
| Tethys Petroleum Ltd.1,7 | | | 12,161,000 | | | | — | | | | — | | | | 12,161,000 | | | | — | | | | — | |
| Tethys Petroleum Ltd. (GBP denominated)1,3,7 | | | 4,647,487 | | | | — | | | | — | | | | 4,647,487 | | | | — | | | | — | |
| Tilaknager Industries Ltd.7 | | | 8,270,086 | | | | — | | | | 8,270,086 | | | | — | | | | — | | | | — | |
| TriQuint Semiconductor, Inc.1,7 | | | 9,012,000 | | | | — | | | | 9,012,000 | | | | — | | | | — | | | | — | |
| Ultragenyx Pharmaceutical Inc.1,7 | | | 1,628,457 | | | | — | | | | 216,987 | | | | 1,411,470 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | $ | 7,779 | | | $ | 5,017,026 | |
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 | Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in “Miscellaneous“ and “Other securities,“ was $11,457,583,000, which represented 42.18% of the net assets of the fund. This amount includes $11,139,444,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
| 4 | 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. |
| 5 | 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 $846,958,000, which represented 3.12% of the net assets of the fund. |
| 6 | This security was an unaffiliated issuer in its initial period of acquisition at 9/30/2014; it was not publicly disclosed. |
| 7 | Unaffiliated issuer at 3/31/2015. |
| Private placement securities | | Acquisition
date(s) | | Cost
(000) | | | Value
(000) | | | Percent
of net
assets | |
| Kite Pharma, Inc. | | 4/24/2014-6/24/2014 | | $ | 7,366 | | | $ | 27,770 | | | | .10 | % |
| Adaptimmune Therapeutics Ltd., Series A, convertible preferred | | 2/23/2015 | | | 10,000 | | | | 9,951 | | | | .04 | |
| Other private placement securities | | | | | 132,008 | | | | 150,959 | | | | .56 | |
| Total private placement securities | | | | $ | 149,374 | | | $ | 188,680 | | | | .70 | % |
Key to abbreviations and symbols
ADR = American Depositary Receipts
CDI = CREST Depository Interest
GDR = Global Depositary Receipts
A$ = Australian dollars
CAD/C$ = Canadian dollars
€ = Euros
GBP/£ = British pounds
¥ = Japanese yen
See Notes to Financial Statements
| Financial statements | |
| | |
| Statement of assets and liabilities | unaudited |
| at March 31, 2015 | (dollars in thousands) |
| Assets: | | | |
| Investment securities, at value: | | | | | | | | |
| Unaffiliated issuers (cost: $16,137,367) | | $ | 22,322,243 | | | | | |
| Affiliated issuers (cost: $3,753,851) | | | 5,017,026 | | | $ | 27,339,269 | |
| Cash denominated in currencies other than U.S. dollars (cost: $689) | | | | | | | 689 | |
| Cash | | | | | | | 7,006 | |
| Unrealized appreciation on open forward currency contracts | | | | | | | 3,299 | |
| Receivables for: | | | | | | | | |
| Sales of investments | | | 67,850 | | | | | |
| Sales of fund’s shares | | | 24,475 | | | | | |
| Closed forward currency contracts | | | 45 | | | | | |
| Dividends and interest | | | 25,058 | | | | | |
| Other | | | 290 | | | | 117,718 | |
| | | | | | | | 27,467,981 | |
| | | | | | | | | |
| Liabilities: | | | | | | | | |
| Unrealized depreciation on open forward currency contracts | | | | | | | 498 | |
| Payables for: | | | | | | | | |
| Purchases of investments | | | 235,393 | | | | | |
| Repurchases of fund’s shares | | | 27,251 | | | | | |
| Investment advisory services | | | 14,401 | | | | | |
| Services provided by related parties | | | 9,728 | | | | | |
| Directors’ deferred compensation | | | 3,340 | | | | | |
| Other | | | 16,853 | | | | 306,966 | |
| Net assets at March 31, 2015 | | | | | | $ | 27,160,517 | |
| | | | | | | | | |
| Net assets consist of: | | | | | | | | |
| Capital paid in on shares of capital stock | | | | | | $ | 19,569,874 | |
| Accumulated net investment loss | | | | | | | (181,340 | ) |
| Undistributed net realized gain | | | | | | | 336,246 | |
| Net unrealized appreciation | | | | | | | 7,435,737 | |
| Net assets at March 31, 2015 | | | | | | $ | 27,160,517 | |
See Notes to Financial Statements
(dollars and shares in thousands, except per-share amounts)
Total authorized capital stock — 1,000,000 shares,
$.01 par value (572,884 total shares outstanding)
| | | | | | Shares | | | Net asset value | |
| | | Net assets | | | outstanding | | | per share | |
| Class A | | $ | 17,744,764 | | | | 371,651 | | | $ | 47.75 | |
| Class B | | | 97,436 | | | | 2,216 | | | | 43.96 | |
| Class C | | | 903,904 | | | | 20,853 | | | | 43.35 | |
| Class F-1 | | | 654,537 | | | | 13,843 | | | | 47.28 | |
| Class F-2 | | | 1,394,118 | | | | 28,989 | | | | 48.09 | |
| Class 529-A | | | 1,000,128 | | | | 21,134 | | | | 47.32 | |
| Class 529-B | | | 13,763 | | | | 310 | | | | 44.39 | |
| Class 529-C | | | 294,042 | | | | 6,664 | | | | 44.12 | |
| Class 529-E | | | 51,870 | | | | 1,120 | | | | 46.32 | |
| Class 529-F-1 | | | 85,677 | | | | 1,798 | | | | 47.65 | |
| Class R-1 | | | 39,920 | | | | 897 | | | | 44.53 | |
| Class R-2 | | | 696,431 | | | | 15,642 | | | | 44.52 | |
| Class R-2E | | | 17 | | | | — | * | | | 47.80 | |
| Class R-3 | | | 827,140 | | | | 17,887 | | | | 46.24 | |
| Class R-4 | | | 754,744 | | | | 15,924 | | | | 47.40 | |
| Class R-5 | | | 491,413 | | | | 10,107 | | | | 48.62 | |
| Class R-6 | | | 2,110,613 | | | | 43,849 | | | | 48.13 | |
| * | Amount less than one thousand. |
See Notes to Financial Statements
| Statement of operations | unaudited |
| for the six months ended March 31, 2015 | (dollars in thousands) |
| Investment income: | | | | | | | | |
| Income: | | | | | | | | |
| Dividends (net of non-U.S. taxes of $4,415; also includes $7,779 from affiliates) | | $ | 109,040 | | | | | |
| Interest (net of non-U.S. taxes of $70) | | | 1,708 | | | $ | 110,748 | |
| Fees and expenses*: | | | | | | | | |
| Investment advisory services | | | 81,590 | | | | | |
| Distribution services | | | 34,121 | | | | | |
| Transfer agent services | | | 21,646 | | | | | |
| Administrative services | | | 3,053 | | | | | |
| Reports to shareholders | | | 952 | | | | | |
| Registration statement and prospectus | | | 709 | | | | | |
| Directors’ compensation | | | 301 | | | | | |
| Auditing and legal | | | 83 | | | | | |
| Custodian | | | 1,739 | | | | | |
| State and local taxes | | | 3 | | | | | |
| Other | | | 710 | | | | 144,907 | |
| Net investment loss | | | | | | | (34,159 | ) |
| | | | | | | | | |
| Net realized gain and unrealized appreciation on investments, forward currency contracts and currency: | | | | | | | | |
| Net realized gain on: | | | | | | | | |
| Investments (net of non-U.S. taxes of $21; also includes $18,342 net loss from affiliates) | | | 386,337 | | | | | |
| Forward currency contracts | | | 17,581 | | | | | |
| Currency transactions | | | 443 | | | | 404,361 | |
| Net unrealized appreciation (depreciation) on: | | | | | | | | |
| Investments (net of non-U.S. taxes of $14,573) | | | 1,731,118 | | | | | |
| Forward currency contracts | | | (2,476 | ) | | | | |
| Currency translations | | | (82 | ) | | | 1,728,560 | |
| Net realized gain and unrealized appreciation on investments, forward currency contracts and currency | | | | | | | 2,132,921 | |
| Net increase in net assets resulting from operations | | | | | | $ | 2,098,762 | |
| * | Additional information related to class-specific fees and expenses is included in the Notes to Financial Statement. |
See Notes to Financial Statements
Statements of changes in net assets
(dollars in thousands)
| | | Six months ended | | | Year ended | |
| | | March 31, | | | September 30, | |
| | | 2015* | | | 2014 | |
| | | | | | | | | |
| Operations: | | | | | | | | |
| Net investment loss | | $ | (34,159 | ) | | $ | (6,006 | ) |
| Net realized gain on investments, forward currency contracts and currency transactions | | | 404,361 | | | | 2,602,946 | |
| Net unrealized appreciation (depreciation) on investments, forward currency contracts and currency translations | | | 1,728,560 | | | | (1,519,670 | ) |
| Net increase in net assets resulting from operations | | | 2,098,762 | | | | 1,077,270 | |
| | | | | | | | | |
| Distributions paid to shareholders from net realized gain on investments | | | (2,489,778 | ) | | | (1,231,152 | ) |
| | | | | | | | | |
| Net capital share transactions | | | 1,913,377 | | | | 1,351,365 | |
| | | | | | | | | |
| Total increase in net assets | | | 1,522,361 | | | | 1,197,483 | |
| | | | | | | | | |
| Net assets: | | | | | | | | |
| Beginning of period | | | 25,638,156 | | | | 24,440,673 | |
| End of period (including accumulated net investment loss: $(181,340) and $(147,181), respectively) | | $ | 27,160,517 | | | $ | 25,638,156 | |
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 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 the next 12 months; however, the fund reserves the right to delay the implementation.
The fund has 17 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 (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and seven retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described further in the following table:
| 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-2E, 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 the assets, dividends and liquidation proceeds of the fund. 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, transfer agent and administrative 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 share class.
2. Significant accounting policies
The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser 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 in this section, 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, transfer agent and administrative services, are charged directly to the respective share class.
Dividends and distributions to shareholders — Dividends and distributions 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. 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 in the fund’s statement of operations. 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.
3. Valuation
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. 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, 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 deemed to be not representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask 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 for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Forward currency contracts are valued at the mean of representative quoted bid and ask 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 valuation guidelines adopted by authority of the
fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission 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 trustees 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 valuation 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 trustees 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, 2015 (dollars in thousands):
| | | Investment securities |
| | | | Level 1 | | | | Level 2* | | | | Level 3 | | | | Total | |
| Assets: | | | | | | | | | | | | | | | | |
| Common stocks: | | | | | | | | | | | | | | | | |
| Health care | | $ | 4,264,642 | | | $ | 764,893 | | | $ | 91,101 | | | $ | 5,120,636 | |
| Consumer discretionary | | | 2,527,206 | | | | 2,490,818 | | | | 21 | | | | 5,018,045 | |
| Industrials | | | 1,353,134 | | | | 2,280,832 | | | | — | | | | 3,633,966 | |
| Information technology | | | 2,103,074 | | | | 1,445,339 | | | | 16,655 | | | | 3,565,068 | |
| Financials | | | 1,601,219 | | | | 1,183,569 | | | | — | | | | 2,784,788 | |
| Consumer staples | | | 448,836 | | | | 1,081,720 | | | | — | | | | 1,530,556 | |
| Materials | | | 529,584 | | | | 596,443 | | | | — | | | | 1,126,027 | |
| Energy | | | 595,823 | | | | 230,377 | | | | 949 | | | | 827,149 | |
| Utilities | | | 45,931 | | | | 347,165 | | | | — | | | | 393,096 | |
| Telecommunication services | | | 139,584 | | | | 200,001 | | | | — | | | | 339,585 | |
| Miscellaneous | | | 761,442 | | | | 582,075 | �� | | | — | | | | 1,343,517 | |
| Preferred securities | | | 2,664 | | | | — | | | | — | | | | 2,664 | |
| Rights & warrants | | | 1,656 | | | | 1,370 | | | | 11,820 | | | | 14,846 | |
| Convertible stocks | | | — | | | | 7,486 | | | | 132,435 | | | | 139,921 | |
| Bonds, notes & other debt instruments | | | — | | | | 44,248 | | | | — | | | | 44,248 | |
| Short-term securities | | | — | | | | 1,455,157 | | | | — | | | | 1,455,157 | |
| Total | | $ | 14,374,795 | | | $ | 12,711,493 | | | $ | 252,981 | | | $ | 27,339,269 | |
| | | | | | | | | | | | | | | | | |
| | | Other investments† |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Assets: | | | | | | | | | | | | | | | | |
| Unrealized appreciation on open forward currency contracts | | $ | — | | | $ | 3,299 | | | $ | — | | | $ | 3,299 | |
| Liabilities: | | | | | | | | | | | | | | | | |
| Unrealized depreciation on open forward currency contracts | | | — | | | | (498 | ) | | | — | | | | (498 | ) |
| Total | | $ | — | | | $ | 2,801 | | | $ | — | | | $ | 2,801 | |
| * | Securities with a value of $9,723,830,000, which represented 35.80% of the net assets of the fund, transferred from Level 1 to Level 2 since the prior fiscal year-end, primarily due to significant market movements following the close of local trading. |
| | |
| † | 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 – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations.
Issuer risks — The prices of, and the income generated by, securities held by the fund may also decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.
Investing in growth-oriented stocks — Growth-oriented common stocks and other equity-type securities (such as preferred stocks, convertible preferred stocks and convertible bonds) 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. Furthermore, smaller companies often have limited product lines, operating histories, markets and/or financial resources, may be dependent on one or a few key persons for management, and can be more susceptible to losses. Moreover, the prices of their 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 adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers are domiciled or operate. 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 accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.
Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, developing countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and
on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, there may be increased settlement risks for transactions in local securities.
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. Certain investment techniques
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 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.
The following tables present the financial statement impacts resulting from the fund’s use of forward currency contracts as of, or for the six months ended, March 31, 2015 (dollars in thousands):
| | | Assets | | | Liabilities | |
| Contract | | Location on statement of assets and liabilities | | Value | | | Location on statement of assets and liabilities | | Value | |
| Forward currency | | Unrealized appreciation on open forward currency contracts | | $ | 3,299 | | | Unrealized depreciation on open forward currency contracts | | $ | 498 | |
| | | | | | | | | | | | | |
| Forward currency | | Receivables for closed forward currency contracts | | | 45 | | | Payables for closed forward currency contracts | | | — | |
| | | | | $ | 3,344 | | | | | $ | 498 | |
| | | Net realized gain | | | Net unrealized depreciation | |
| Contract | | Location on statement of operations | | Value | | | Location on statement of operations | | Value | |
| Forward currency | | Net realized gain on forward currency contracts | | $ | 17,581 | | | Net unrealized depreciation on forward currency contracts | | $ | (2,476 | ) |
Collateral — The fund participates in a collateral program due to its use of forward currency contracts. The program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligations.
Rights of offset — The fund has entered into enforceable master netting agreements with certain counterparties for forward currency contracts, where on any date amounts payable by each party to the other (in the same currency with respect to the same transaction) may be closed or offset by each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statement of assets and liabilities.
The following table presents the fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the fund’s statement of assets and liabilities. The net amount column shows the impact of offsetting on the fund’s statement of assets and liabilities as of March 31, 2015 (dollars in thousands) if close-out netting was exercised:
| | | Gross amounts
recognized in the | | Gross amounts not offset in the
statement of assets and liabilities and
subject to a master netting agreement | | | | |
| Counterparty | | statement of assets
and liabilities | | Available
to offset | | | Non-cash
collateral* | | | Cash
collateral | | | Net
amount | |
| Assets: | | | | | | | | | | | | | | | |
| Bank of America, N.A. | | $ | 276 | | $ | (70 | ) | | $ | — | | | $ | — | | | $ | 206 | |
| Bank of New York Mellon | | | 28 | | | — | | | | — | | | | — | | | | 28 | |
| Barclays Bank PLC | | | 1 | | | — | | | | — | | | | — | | | | 1 | |
| Citibank | | | 95 | | | (68 | ) | | | — | | | | — | | | | 27 | |
| HSBC Bank | | | 1,089 | | | (177 | ) | | | — | | | | — | | | | 912 | |
| UBS AG | | | 1,855 | | | (113 | ) | | | (1,306 | ) | | | — | | | | 436 | |
| Total | | $ | 3,344 | | $ | (428 | ) | | $ | (1,306 | ) | | $ | — | | | $ | 1,610 | |
| Liabilities: | | | | | | | | | | | | | | | | | | | |
| Bank of America, N.A. | | $ | 70 | | $ | (70 | ) | | $ | — | | | $ | — | | | $ | — | |
| Citibank | | | 68 | | | (68 | ) | | | — | | | | — | | | | — | |
| HSBC Bank | | | 177 | | | (177 | ) | | | — | | | | — | | | | — | |
| JPMorgan Chase | | | 70 | | | — | | | | — | | | | — | | | | 70 | |
| UBS AG | | | 113 | | | (113 | ) | | | — | | | | — | | | | — | |
| Total | | $ | 498 | | $ | (428 | ) | | $ | — | | | $ | — | | | $ | 70 | |
| * | Non-cash collateral is shown on a settlement basis. |
6. 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, 2015, 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 2010, by state tax authorities for tax years before 2009 and by tax authorities outside the U.S. for tax years before 2007.
Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
Distributions — Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; deferred expenses; cost of investments sold; 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, 2014, the components of distributable earnings on a tax basis were as follows (dollars in thousands):
| Undistributed long-term capital gains | | $ | 2,452,874 | |
As of March 31, 2015, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows (dollars in thousands):
| Gross unrealized appreciation on investment securities | | $ | 8,950,705 | |
| Gross unrealized depreciation on investment securities | | | (1,649,947 | ) |
| Net unrealized appreciation on investment securities | | | 7,300,758 | |
| Cost of investment securities | | | 20,038,511 | |
No distributions from ordinary income were paid to shareholders during the six months ended March 31, 2015, or for the year ended September 30, 2014. Tax-basis distributions paid to shareholders from long-term capital gains were as follows (dollars in thousands):
| Share class | | Six months ended
March 31,
2015 | | | Year ended
September 30,
2014 | |
| Class A | | $ | 1,620,297 | | | $ | 819,310 | |
| Class B | | | 11,193 | | | | 8,984 | |
| Class C | | | 91,765 | | | | 48,666 | |
| Class F-1 | | | 60,500 | | | | 45,043 | |
| Class F-2 | | | 118,437 | | | | 32,777 | |
| Class 529-A | | | 91,366 | | | | 44,604 | |
| Class 529-B | | | 1,553 | | | | 1,211 | |
| Class 529-C | | | 28,795 | | | | 14,431 | |
| Class 529-E | | | 4,863 | | | | 2,446 | |
| Class 529-F-1 | | | 7,765 | | | | 3,680 | |
| Class R-1 | | | 3,940 | | | | 2,147 | |
| Class R-2 | | | 69,423 | | | | 37,717 | |
| Class R-2E* | | | 1 | | | | — | |
| Class R-3 | | | 78,623 | | | | 42,124 | |
| Class R-4 | | | 69,525 | | | | 34,905 | |
| Class R-5 | | | 43,654 | | | | 27,390 | |
| Class R-6 | | | 188,078 | | | | 65,717 | |
| Total | | $ | 2,489,778 | | | $ | 1,231,152 | |
| * | Class R-2E shares were offered beginning August 29, 2014. |
7. 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. CRMC, AFD and AFS are considered related parties to the fund.
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, 2015, the investment advisory services fee was $81,590,000, which was equivalent to an annualized rate of 0.630% 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 further described below:
Distribution services — The fund has plans of distribution for all share classes, except Class F-2, R-5 and R-6 shares. 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 in this section. 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 Class A and 529-A shares, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These share 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, 2015, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.
| | 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 | |
| | Class R-2E | | | 0.60 | | | | 0.85 | |
| | 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.
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, 529 and R shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders. Under the agreement, Class A shares pay an annual fee of 0.01% and Class C, F, 529 and R shares pay an annual fee of 0.05% of their respective average daily net assets.
529 plan services — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration 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 0.05% on such assets in excess of $70 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 in the fund’s statement of operations. Virginia529 is not considered a related party to the fund.
For the six months ended March 31, 2015, class-specific expenses under the agreements were as follows (dollars in thousands):
| | Share class | | Distribution
services | | | Transfer agent
services | | | Administrative
services | | | 529 plan
services |
| | Class A | | | $20,168 | | | | $16,178 | | | | $849 | | | Not applicable |
| | Class B | | | 536 | | | | 108 | | | | Not applicable | | | Not applicable |
| | Class C | | | 4,392 | | | | 846 | | | | 221 | | | Not applicable |
| | Class F-1 | | | 779 | | | | 349 | | | | 156 | | | Not applicable |
| | Class F-2 | | | Not applicable | | | | 719 | | | | 315 | | | Not applicable |
| | Class 529-A | | | 1,023 | | | | 729 | | | | 238 | | | $423 |
| | Class 529-B | | | 75 | | | | 14 | | | | 4 | | | 7 |
| | Class 529-C | | | 1,398 | | | | 230 | | | | 71 | | | 126 |
| | Class 529-E | | | 123 | | | | 25 | | | | 12 | | | 22 |
| | Class 529-F-1 | | | — | | | | 63 | | | | 20 | | | 36 |
| | Class R-1 | | | 192 | | | | 24 | | | | 10 | | | Not applicable |
| | Class R-2 | | | 2,531 | | | | 1,232 | | | | 170 | | | Not applicable |
| | Class R-2E | | | — | * | | | — | * | | | — | * | | Not applicable |
| | Class R-3 | | | 1,996 | | | | 679 | | | | 200 | | | Not applicable |
| | Class R-4 | | | 908 | | | | 343 | | | | 182 | | | Not applicable |
| | Class R-5 | | | Not applicable | | | | 100 | | | | 116 | | | Not applicable |
| | Class R-6 | | | Not applicable | | | | 7 | | | | 489 | | | Not applicable |
| | Total class-specific expenses | | | $34,121 | | | | $21,646 | | | | $3,053 | | | $614 |
| * | Amount less than one thousand. |
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 $301,000 in the fund’s statement of operations includes $194,000 in current fees (either paid in cash or deferred) and a net increase of $107,000 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, AFD and AFS. No affiliated officers or directors received any compensation directly from the fund.
8. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
| | | Sales1 | | | Reinvestments of
distributions | | | Repurchases1 | | | Net increase
(decrease) | |
| Share class | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Six months ended March 31, 2015 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | $ | 747,451 | | | | 15,809 | | | $ | 1,593,439 | | | | 35,036 | | | $ | (1,210,668 | ) | | | (25,604 | ) | | $ | 1,130,222 | | | | 25,241 | |
| Class B | | | 702 | | | | 15 | | | | 11,120 | | | | 265 | | | | (31,884 | ) | | | (733 | ) | | | (20,062 | ) | | | (453 | ) |
| Class C | | | 56,781 | | | | 1,315 | | | | 90,963 | | | | 2,199 | | | | (111,460 | ) | | | (2,588 | ) | | | 36,284 | | | | 926 | |
| Class F-1 | | | 72,138 | | | | 1,545 | | | | 59,775 | | | | 1,328 | | | | (91,978 | ) | | | (1,973 | ) | | | 39,935 | | | | 900 | |
| Class F-2 | | | 228,409 | | | | 4,812 | | | | 113,364 | | | | 2,477 | | | | (141,736 | ) | | | (2,987 | ) | | | 200,037 | | | | 4,302 | |
| Class 529-A | | | 50,686 | | | | 1,082 | | | | 91,347 | | | | 2,026 | | | | (60,879 | ) | | | (1,300 | ) | | | 81,154 | | | | 1,808 | |
| Class 529-B | | | 164 | | | | 4 | | | | 1,551 | | | | 36 | | | | (4,434 | ) | | | (101 | ) | | | (2,719 | ) | | | (61 | ) |
| Class 529-C | | | 15,281 | | | | 348 | | | | 28,786 | | | | 683 | | | | (22,970 | ) | | | (522 | ) | | | 21,097 | | | | 509 | |
| Class 529-E | | | 2,980 | | | | 65 | | | | 4,861 | | | | 110 | | | | (4,191 | ) | | | (91 | ) | | | 3,650 | | | | 84 | |
| Class 529-F-1 | | | 8,343 | | | | 176 | | | | 7,763 | | | | 171 | | | | (9,086 | ) | | | (192 | ) | | | 7,020 | | | | 155 | |
| Class R-1 | | | 3,664 | | | | 83 | | | | 3,930 | | | | 93 | | | | (6,193 | ) | | | (140 | ) | | | 1,401 | | | | 36 | |
| Class R-2 | | | 70,109 | | | | 1,585 | | | | 69,391 | | | | 1,633 | | | | (115,075 | ) | | | (2,606 | ) | | | 24,425 | | | | 612 | |
| Class R-2E | | | 8 | | | | — | 2 | | | — | | | | — | | | | — | | | | — | | | | 8 | | | | — | 2 |
| Class R-3 | | | 81,702 | | | | 1,782 | | | | 78,595 | | | | 1,783 | | | | (128,764 | ) | | | (2,806 | ) | | | 31,533 | | | | 759 | |
| Class R-4 | | | 71,062 | | | | 1,514 | | | | 69,524 | | | | 1,540 | | | | (102,622 | ) | | | (2,178 | ) | | | 37,964 | | | | 876 | |
| Class R-5 | | | 53,803 | | | | 1,119 | | | | 43,649 | | | | 943 | | | | (53,461 | ) | | | (1,113 | ) | | | 43,991 | | | | 949 | |
| Class R-6 | | | 270,270 | | | | 5,738 | | | | 188,059 | | | | 4,106 | | | | (180,892 | ) | | | (3,990 | ) | | | 277,437 | | | | 5,854 | |
| Total net increase (decrease) | | $ | 1,733,553 | | | | 36,992 | | | $ | 2,456,117 | | | | 54,429 | | | $ | (2,276,293 | ) | | | (48,924 | ) | | $ | 1,913,377 | | | | 42,497 | |
| | | Sales1 | | | Reinvestments of
distributions | | | Repurchases1 | | | Net increase
(decrease) | |
| Share class | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | | | Amount | | | Shares | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Year ended September 30, 2014 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Class A | | $ | 1,773,336 | | | | 35,700 | | | $ | 806,618 | | | | 16,543 | | | $ | (2,096,014 | ) | �� | | (42,216 | ) | | $ | 483,940 | | | | 10,027 | |
| Class B | | | 3,569 | | | | 77 | | | | 8,918 | | | | 195 | | | | (75,332 | ) | | | (1,622 | ) | | | (62,845 | ) | | | (1,350 | ) |
| Class C | | | 142,256 | | | | 3,097 | | | | 48,176 | | | | 1,067 | | | | (203,684 | ) | | | (4,439 | ) | | | (13,252 | ) | | | (275 | ) |
| Class F-1 | | | 282,255 | | | | 5,746 | | | | 44,660 | | | | 924 | | | | (570,459 | ) | | | (11,619 | ) | | | (243,544 | ) | | | (4,949 | ) |
| Class F-2 | | | 693,213 | | | | 13,899 | | | | 30,757 | | | | 629 | | | | (132,925 | ) | | | (2,668 | ) | | | 591,045 | | | | 11,860 | |
| Class 529-A | | | 111,968 | | | | 2,271 | | | | 44,594 | | | | 921 | | | | (101,340 | ) | | | (2,052 | ) | | | 55,222 | | | | 1,140 | |
| Class 529-B | | | 635 | | | | 13 | | | | 1,211 | | | | 26 | | | | (10,160 | ) | | | (216 | ) | | | (8,314 | ) | | | (177 | ) |
| Class 529-C | | | 35,995 | | | | 770 | | | | 14,425 | | | | 314 | | | | (38,441 | ) | | | (821 | ) | | | 11,979 | | | | 263 | |
| Class 529-E | | | 5,793 | | | | 119 | | | | 2,446 | | | | 51 | | | | (6,380 | ) | | | (131 | ) | | | 1,859 | | | | 39 | |
| Class 529-F-1 | | | 15,345 | | | | 309 | | | | 3,679 | | | | 76 | | | | (12,328 | ) | | | (248 | ) | | | 6,696 | | | | 137 | |
| Class R-1 | | | 9,478 | | | | 202 | | | | 2,139 | | | | 46 | | | | (13,283 | ) | | | (282 | ) | | | (1,666 | ) | | | (34 | ) |
| Class R-2 | | | 144,638 | | | | 3,074 | | | | 37,700 | | | | 816 | | | | (219,917 | ) | | | (4,681 | ) | | | (37,579 | ) | | | (791 | ) |
| Class R-2E3 | | | 10 | | | | — | 2 | | | — | | | | — | | | | — | | | | — | | | | 10 | | | | — | 2 |
| Class R-3 | | | 199,353 | | | | 4,114 | | | | 42,110 | | | | 885 | | | | (259,313 | ) | | | (5,358 | ) | | | (17,850 | ) | | | (359 | ) |
| Class R-4 | | | 191,098 | | | | 3,875 | | | | 34,902 | | | | 721 | | | | (207,103 | ) | | | (4,203 | ) | | | 18,897 | | | | 393 | |
| Class R-5 | | | 119,562 | | | | 2,382 | | | | 27,377 | | | | 554 | | | | (243,151 | ) | | | (4,893 | ) | | | (96,212 | ) | | | (1,957 | ) |
| Class R-6 | | | 709,607 | | | | 14,300 | | | | 65,717 | | | | 1,344 | | | | (112,345 | ) | | | (2,256 | ) | | | 662,979 | | | | 13,388 | |
| Total net increase (decrease) | | $ | 4,438,111 | | | | 89,948 | | | $ | 1,215,429 | | | | 25,112 | | | $ | (4,302,175 | ) | | | (87,705 | ) | | $ | 1,351,365 | | | | 27,355 | |
| 1 | Includes exchanges between share classes of the fund. |
| 2 | Amount less than one thousand. |
| 3 | Class R-2E shares were offered beginning August 29, 2014. |
9. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $4,147,907,000 and $3,756,629,000, respectively, during the six months ended March 31, 2015.
Financial highlights
| | | | | | Income (loss) from investment operations1 |
| | | Net asset | | | Net | | | Net gains (losses) | | | | |
| | | value, | | | investment | | | on securities | | | Total from | |
| | | beginning | | | income | | | (both realized | | | investment | |
| | | of period | | | (loss) | | | and unrealized) | | | operations | |
| Class A: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | $ | 48.66 | | | $ | (.06 | ) | | $ | 3.90 | | | $ | 3.84 | |
| Year ended 9/30/2014 | | | 48.91 | | | | .01 | | | | 2.17 | | | | 2.18 | |
| Year ended 9/30/2013 | | | 39.27 | | | | .06 | | | | 10.12 | | | | 10.18 | |
| Year ended 9/30/2012 | | | 31.45 | | | | .08 | | | | 7.85 | | | | 7.93 | |
| Year ended 9/30/2011 | | | 35.82 | | | | .09 | | | | (3.94 | ) | | | (3.85 | ) |
| Year ended 9/30/2010 | | | 30.26 | | | | .14 | | | | 5.62 | | | | 5.76 | |
| Class B: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 45.33 | | | | (.22 | ) | | | 3.60 | | | | 3.38 | |
| Year ended 9/30/2014 | | | 46.06 | | | | (.36 | ) | | | 2.06 | | | | 1.70 | |
| Year ended 9/30/2013 | | | 36.95 | | | | (.26 | ) | | | 9.56 | | | | 9.30 | |
| Year ended 9/30/2012 | | | 29.72 | | | | (.20 | ) | | | 7.43 | | | | 7.23 | |
| Year ended 9/30/2011 | | | 33.87 | | | | (.20 | ) | | | (3.71 | ) | | | (3.91 | ) |
| Year ended 9/30/2010 | | | 28.66 | | | | (.11 | ) | | | 5.32 | | | | 5.21 | |
| Class C: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 44.77 | | | | (.23 | ) | | | 3.56 | | | | 3.33 | |
| Year ended 9/30/2014 | | | 45.54 | | | | (.36 | ) | | | 2.02 | | | | 1.66 | |
| Year ended 9/30/2013 | | | 36.60 | | | | (.26 | ) | | | 9.45 | | | | 9.19 | |
| Year ended 9/30/2012 | | | 29.44 | | | | (.19 | ) | | | 7.35 | | | | 7.16 | |
| Year ended 9/30/2011 | | | 33.61 | | | | (.19 | ) | | | (3.69 | ) | | | (3.88 | ) |
| Year ended 9/30/2010 | | | 28.44 | | | | (.10 | ) | | | 5.28 | | | | 5.18 | |
| Class F-1: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 48.23 | | | | (.05 | ) | | | 3.85 | | | | 3.80 | |
| Year ended 9/30/2014 | | | 48.51 | | | | — | | | | 2.15 | | | | 2.15 | |
| Year ended 9/30/2013 | | | 38.94 | | | | .09 | | | | 10.03 | | | | 10.12 | |
| Year ended 9/30/2012 | | | 31.18 | | | | .09 | | | | 7.78 | | | | 7.87 | |
| Year ended 9/30/2011 | | | 35.53 | | | | .10 | | | | (3.92 | ) | | | (3.82 | ) |
| Year ended 9/30/2010 | | | 30.03 | | | | .15 | | | | 5.57 | | | | 5.72 | |
| Class F-2: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 48.92 | | | | .01 | | | | 3.91 | | | | 3.92 | |
| Year ended 9/30/2014 | | | 49.03 | | | | .15 | | | | 2.17 | | | | 2.32 | |
| Year ended 9/30/2013 | | | 39.38 | | | | .21 | | | | 10.12 | | | | 10.33 | |
| Year ended 9/30/2012 | | | 31.54 | | | | .20 | | | | 7.86 | | | | 8.06 | |
| Year ended 9/30/2011 | | | 35.93 | | | | .20 | | | | (3.96 | ) | | | (3.76 | ) |
| Year ended 9/30/2010 | | | 30.39 | | | | .25 | | | | 5.63 | | | | 5.88 | |
| Class 529-A: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 48.29 | | | | (.07 | ) | | | 3.85 | | | | 3.78 | |
| Year ended 9/30/2014 | | | 48.59 | | | | (.03 | ) | | | 2.16 | | | | 2.13 | |
| Year ended 9/30/2013 | | | 39.03 | | | | .04 | | | | 10.05 | | | | 10.09 | |
| Year ended 9/30/2012 | | | 31.27 | | | | .07 | | | | 7.80 | | | | 7.87 | |
| Year ended 9/30/2011 | | | 35.63 | | | | .08 | | | | (3.92 | ) | | | (3.84 | ) |
| Year ended 9/30/2010 | | | 30.13 | | | | .13 | | | | 5.58 | | | | 5.71 | |
| Dividends and distributions | | | | | | | | | | | | | | | | |
| Dividends | | | | | | Total | | | | | | | | | | | | Ratio of | | | Ratio of net | |
| (from net | | | Distributions | | | dividends | | | Net asset | | | | | | Net assets, | | | expenses | | | income (loss) | |
| investment | | | (from capital | | | and | | | value, end | | | Total | | | end of period | | | to average | | | to average | |
| income) | | | gains) | | | distributions | | | of period | | | return2,3 | | | (in millions) | | | net assets | | | net assets | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | — | | | $ | (4.75 | ) | | $ | (4.75 | ) | | $ | 47.75 | | | | 8.38 | % | | $ | 17,745 | | | | 1.10 | %6 | | | (.24 | )%6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 48.66 | | | | 4.43 | | | | 16,857 | | | | 1.07 | | | | .02 | |
| | (.54 | ) | | | — | | | | (.54 | ) | | | 48.91 | | | | 26.29 | | | | 16,454 | | | | 1.13 | | | | .15 | |
| | (.11 | ) | | | — | | | | (.11 | ) | | | 39.27 | | | | 25.26 | | | | 13,557 | | | | 1.14 | | | | .23 | |
| | (.52 | ) | | | — | | | | (.52 | ) | | | 31.45 | | | | (11.01 | ) | | | 11,926 | | | | 1.09 | | | | .23 | |
| | (.20 | ) | | | — | | | | (.20 | ) | | | 35.82 | | | | 19.11 | | | | 14,432 | | | | 1.13 | | | | .43 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 43.96 | | | | 7.95 | | | | 97 | | | | 1.85 | 6 | | | (1.00 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 45.33 | | | | 3.66 | | | | 121 | | | | 1.83 | | | | (.77 | ) |
| | (.19 | ) | | | — | | | | (.19 | ) | | | 46.06 | | | | 25.29 | | | | 185 | | | | 1.89 | | | | (.63 | ) |
| | — | | | | — | | | | — | | | | 36.95 | | | | 24.33 | | | | 214 | | | | 1.90 | | | | (.58 | ) |
| | (.24 | ) | | | — | | | | (.24 | ) | | | 29.72 | | | | (11.68 | ) | | | 266 | | | | 1.86 | | | | (.55 | ) |
| | — | | | | — | | | | — | | | | 33.87 | | | | 18.18 | | | | 397 | | | | 1.89 | | | | (.37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 43.35 | | | | 7.95 | | | | 904 | | | | 1.90 | 6 | | | (1.04 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 44.77 | | | | 3.61 | | | | 892 | | | | 1.87 | | | | (.79 | ) |
| | (.25 | ) | | | — | | | | (.25 | ) | | | 45.54 | | | | 25.26 | | | | 920 | | | | 1.93 | | | | (.65 | ) |
| | — | | | | — | | | | — | | | | 36.60 | | | | 24.32 | | | | 779 | | | | 1.93 | | | | (.56 | ) |
| | (.29 | ) | | | — | | | | (.29 | ) | | | 29.44 | | | | (11.70 | ) | | | 725 | | | | 1.86 | | | | (.53 | ) |
| | (.01 | ) | | | — | | | | (.01 | ) | | | 33.61 | | | | 18.19 | | | | 865 | | | | 1.88 | | | | (.32 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 47.28 | | | | 8.37 | | | | 655 | | | | 1.07 | 6 | | | (.21 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 48.23 | | | | 4.42 | | | | 624 | | | | 1.09 | | | | — | |
| | (.55 | ) | | | — | | | | (.55 | ) | | | 48.51 | | | | 26.33 | | | | 868 | | | | 1.07 | | | | .21 | |
| | (.11 | ) | | | — | | | | (.11 | ) | | | 38.94 | | | | 25.30 | | | | 655 | | | | 1.12 | | | | .25 | |
| | (.53 | ) | | | — | | | | (.53 | ) | | | 31.18 | | | | (11.02 | ) | | | 583 | | | | 1.08 | | | | .25 | |
| | (.22 | ) | | | — | | | | (.22 | ) | | | 35.53 | | | | 19.16 | | | | 654 | | | | 1.10 | | | | .46 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 48.09 | | | | 8.51 | | | | 1,394 | | | | .82 | 6 | | | .03 | 6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 48.92 | | | | 4.72 | | | | 1,208 | | | | .81 | | | | .31 | |
| | (.68 | ) | | | — | | | | (.68 | ) | | | 49.03 | | | | 26.68 | | | | 629 | | | | .82 | | | | .48 | |
| | (.22 | ) | | | — | | | | (.22 | ) | | | 39.38 | | | | 25.69 | | | | 344 | | | | .83 | | | | .55 | |
| | (.63 | ) | | | — | | | | (.63 | ) | | | 31.54 | | | | (10.79 | ) | | | 266 | | | | .82 | | | | .53 | |
| | (.34 | ) | | | — | | | | (.34 | ) | | | 35.93 | | | | 19.46 | | | | 246 | | | | .81 | | | | .78 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 47.32 | | | | 8.32 | | | | 1,000 | | | | 1.17 | 6 | | | (.31 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 48.29 | | | | 4.37 | | | | 933 | | | | 1.15 | | | | (.05 | ) |
| | (.53 | ) | | | — | | | | (.53 | ) | | | 48.59 | | | | 26.18 | | | | 884 | | | | 1.19 | | | | .09 | |
| | (.11 | ) | | | — | | | | (.11 | ) | | | 39.03 | | | | 25.22 | | | | 689 | | | | 1.19 | | | | .19 | |
| | (.52 | ) | | | — | | | | (.52 | ) | | | 31.27 | | | | (11.05 | ) | | | 541 | | | | 1.14 | | | | .20 | |
| | (.21 | ) | | | — | | | | (.21 | ) | | | 35.63 | | | | 19.06 | | | | 548 | | | | 1.16 | | | | .41 | |
See page 38 for footnotes.
Financial highlights (continued)
| | | | | | Income (loss) from investment operations1 |
| | | Net asset | | | Net | | | Net gains (losses) | | | | |
| | | value, | | | investment | | | on securities | | | Total from | |
| | | beginning | | | income | | | (both realized | | | investment | |
| | | of period | | | (loss) | | | and unrealized) | | | operations | |
| Class 529-B: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | $ | 45.75 | | | $ | (.25 | ) | | $ | 3.64 | | | $ | 3.39 | |
| Year ended 9/30/2014 | | | 46.52 | | | | (.42 | ) | | | 2.08 | | | | 1.66 | |
| Year ended 9/30/2013 | | | 37.30 | | | | (.30 | ) | | | 9.66 | | | | 9.36 | |
| Year ended 9/30/2012 | | | 30.03 | | | | (.23 | ) | | | 7.50 | | | | 7.27 | |
| Year ended 9/30/2011 | | | 34.23 | | | | (.23 | ) | | | (3.76 | ) | | | (3.99 | ) |
| Year ended 9/30/2010 | | | 28.98 | | | | (.13 | ) | | | 5.38 | | | | 5.25 | |
| Class 529-C: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 45.50 | | | | (.24 | ) | | | 3.61 | | | | 3.37 | |
| Year ended 9/30/2014 | | | 46.27 | | | | (.40 | ) | | | 2.06 | | | | 1.66 | |
| Year ended 9/30/2013 | | | 37.20 | | | | (.29 | ) | | | 9.60 | | | | 9.31 | |
| Year ended 9/30/2012 | | | 29.95 | | | | (.21 | ) | | | 7.46 | | | | 7.25 | |
| Year ended 9/30/2011 | | | 34.19 | | | | (.22 | ) | | | (3.76 | ) | | | (3.98 | ) |
| Year ended 9/30/2010 | | | 28.94 | | | | (.12 | ) | | | 5.37 | | | | 5.25 | |
| Class 529-E: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 47.41 | | | | (.13 | ) | | | 3.79 | | | | 3.66 | |
| Year ended 9/30/2014 | | | 47.87 | | | | (.14 | ) | | | 2.11 | | | | 1.97 | |
| Year ended 9/30/2013 | | | 38.45 | | | | (.06 | ) | | | 9.91 | | | | 9.85 | |
| Year ended 9/30/2012 | | | 30.79 | | | | (.03 | ) | | | 7.70 | | | | 7.67 | |
| Year ended 9/30/2011 | | | 35.11 | | | | (.03 | ) | | | (3.87 | ) | | | (3.90 | ) |
| Year ended 9/30/2010 | | | 29.70 | | | | .04 | | | | 5.50 | | | | 5.54 | |
| Class 529-F-1: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 48.53 | | | | (.02 | ) | | | 3.89 | | | | 3.87 | |
| Year ended 9/30/2014 | | | 48.73 | | | | .08 | | | | 2.15 | | | | 2.23 | |
| Year ended 9/30/2013 | | | 39.14 | | | | .13 | | | | 10.07 | | | | 10.20 | |
| Year ended 9/30/2012 | | | 31.35 | | | | .14 | | | | 7.83 | | | | 7.97 | |
| Year ended 9/30/2011 | | | 35.72 | | | | .15 | | | | (3.94 | ) | | | (3.79 | ) |
| Year ended 9/30/2010 | | | 30.20 | | | | .20 | | | | 5.59 | | | | 5.79 | |
| Class R-1: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 45.85 | | | | (.22 | ) | | | 3.65 | | | | 3.43 | |
| Year ended 9/30/2014 | | | 46.56 | | | | (.35 | ) | | | 2.07 | | | | 1.72 | |
| Year ended 9/30/2013 | | | 37.40 | | | | (.23 | ) | | | 9.66 | | | | 9.43 | |
| Year ended 9/30/2012 | | | 30.07 | | | | (.17 | ) | | | 7.50 | | | | 7.33 | |
| Year ended 9/30/2011 | | | 34.32 | | | | (.19 | ) | | | (3.77 | ) | | | (3.96 | ) |
| Year ended 9/30/2010 | | | 29.05 | | | | (.09 | ) | | | 5.39 | | | | 5.30 | |
| Class R-2: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 45.84 | | | | (.21 | ) | | | 3.64 | | | | 3.43 | |
| Year ended 9/30/2014 | | | 46.56 | | | | (.35 | ) | | | 2.06 | | | | 1.71 | |
| Year ended 9/30/2013 | | | 37.39 | | | | (.23 | ) | | | 9.67 | | | | 9.44 | |
| Year ended 9/30/2012 | | | 30.07 | | | | (.18 | ) | | | 7.50 | | | | 7.32 | |
| Year ended 9/30/2011 | | | 34.30 | | | | (.20 | ) | | | (3.76 | ) | | | (3.96 | ) |
| Year ended 9/30/2010 | | | 29.03 | | | | (.11 | ) | | | 5.38 | | | | 5.27 | |
| Dividends and distributions | | | | | | | | | | | | | | | | |
| Dividends | | | | | | Total | | | | | | | | | | | | Ratio of | | | Ratio of net | |
| (from net | | | Distributions | | | dividends | | | Net asset | | | | | | Net assets, | | | expenses | | | income (loss) | |
| investment | | | (from capital | | | and | | | value, end | | | Total | | | end of period | | | to average | | | to average | |
| income) | | | gains) | | | distributions | | | of period | | | return2,3 | | | (in millions) | | | net assets | | | net assets | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | — | | | $ | (4.75 | ) | | $ | (4.75 | ) | | $ | 44.39 | | | | 7.90 | % | | $ | 14 | | | | 1.97 | %6 | | | (1.12 | )%6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 45.75 | | | | 3.53 | | | | 17 | | | | 1.95 | | | | (.89 | ) |
| | (.14 | ) | | | — | | | | (.14 | ) | | | 46.52 | | | | 25.17 | | | | 25 | | | | 1.99 | | | | (.73 | ) |
| | — | | | | — | | | | — | | | | 37.30 | | | | 24.21 | | | | 30 | | | | 2.01 | | | | (.68 | ) |
| | (.21 | ) | | | — | | | | (.21 | ) | | | 30.03 | | | | (11.78 | ) | | | 36 | | | | 1.95 | | | | (.63 | ) |
| | — | | | | — | | | | — | | | | 34.23 | | | | 18.12 | | | | 52 | | | | 1.97 | | | | (.44 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 44.12 | | | | 7.90 | | | | 294 | | | | 1.95 | 6 | | | (1.10 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 45.50 | | | | 3.53 | | | | 280 | | | | 1.94 | | | | (.85 | ) |
| | (.24 | ) | | | — | | | | (.24 | ) | | | 46.27 | | | | 25.21 | | | | 273 | | | | 1.98 | | | | (.70 | ) |
| | — | | | | — | | | | — | | | | 37.20 | | | | 24.21 | | | | 222 | | | | 2.00 | | | | (.62 | ) |
| | (.26 | ) | | | — | | | | (.26 | ) | | | 29.95 | | | | (11.77 | ) | | | 186 | | | | 1.94 | | | | (.61 | ) |
| | — | | | | — | | | | — | | | | 34.19 | | | | 18.10 | | | | 194 | | | | 1.97 | | | | (.40 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 46.32 | | | | 8.21 | | | | 52 | | | | 1.40 | 6 | | | (.54 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 47.41 | | | | 4.10 | | | | 49 | | | | 1.39 | | | | (.30 | ) |
| | (.43 | ) | | | — | | | | (.43 | ) | | | 47.87 | | | | 25.90 | | | | 48 | | | | 1.43 | | | | (.15 | ) |
| | (.01 | ) | | | — | | | | (.01 | ) | | | 38.45 | | | | 24.90 | | | | 38 | | | | 1.45 | | | | (.07 | ) |
| | (.42 | ) | | | — | | | | (.42 | ) | | | 30.79 | | | | (11.32 | ) | | | 31 | | | | 1.43 | | | | (.08 | ) |
| | (.13 | ) | | | — | | | | (.13 | ) | | | 35.11 | | | | 18.71 | | | | 31 | | | | 1.46 | | | | .11 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 47.65 | | | | 8.47 | | | | 86 | | | | .95 | 6 | | | (.10 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 48.53 | | | | 4.57 | | | | 80 | | | | .94 | | | | .16 | |
| | (.61 | ) | | | — | | | | (.61 | ) | | | 48.73 | | | | 26.43 | | | | 73 | | | | .98 | | | | .30 | |
| | (.18 | ) | | | — | | | | (.18 | ) | | | 39.14 | | | | 25.51 | | | | 53 | | | | .99 | | | | .39 | |
| | (.58 | ) | | | — | | | | (.58 | ) | | | 31.35 | | | | (10.90 | ) | | | 43 | | | | .94 | | | | .40 | |
| | (.27 | ) | | | — | | | | (.27 | ) | | | 35.72 | | | | 19.31 | | | | 47 | | | | .95 | | | | .62 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 44.53 | | | | 7.98 | | | | 40 | | | | 1.83 | 6 | | | (.97 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 45.85 | | | | 3.66 | | | | 39 | | | | 1.82 | | | | (.74 | ) |
| | (.27 | ) | | | — | | | | (.27 | ) | | | 46.56 | | | | 25.37 | | | | 42 | | | | 1.84 | | | | (.57 | ) |
| | — | | | | — | | | | — | | | | 37.40 | | | | 24.38 | | | | 37 | | | | 1.86 | | | | (.50 | ) |
| | (.29 | ) | | | — | | | | (.29 | ) | | | 30.07 | | | | (11.68 | ) | | | 35 | | | | 1.84 | | | | (.52 | ) |
| | (.03 | ) | | | — | | | | (.03 | ) | | | 34.32 | | | | 18.25 | | | | 43 | | | | 1.87 | | | | (.30 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 44.52 | | | | 7.98 | | | | 696 | | | | 1.82 | 6 | | | (.96 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 45.84 | | | | 3.64 | | | | 689 | | | | 1.83 | | | | (.75 | ) |
| | (.27 | ) | | | — | | | | (.27 | ) | | | 46.56 | | | | 25.41 | | | | 736 | | | | 1.83 | | | | (.55 | ) |
| | — | | | | — | | | | — | | | | 37.39 | | | | 24.34 | | | | 647 | | | | 1.89 | | | | (.52 | ) |
| | (.27 | ) | | | — | | | | (.27 | ) | | | 30.07 | | | | (11.72 | ) | | | 581 | | | | 1.86 | | | | (.54 | ) |
| | — | | | | — | | | | — | | | | 34.30 | | | | 18.19 | | | | 712 | | | | 1.93 | | | | (.37 | ) |
See page 38 for footnotes.
Financial highlights (continued)
| | | | | | Income (loss) from investment operations1 |
| | | Net asset | | | Net | | | Net gains (losses) | | | | |
| | | value, | | | investment | | | on securities | | | Total from | |
| | | beginning | | | income | | | (both realized | | | investment | |
| | | of period | | | (loss) | | | and unrealized) | | | operations | |
| Class R-2E: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | $ | 48.67 | | | $ | (.02 | ) | | $ | 3.90 | | | $ | 3.88 | |
| Period from 8/29/2014 to 9/30/20144,9 | | | 50.83 | | | | (.01 | ) | | | (2.15 | ) | | | (2.16 | ) |
| Class R-3: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 47.34 | | | | (.12 | ) | | | 3.77 | | | | 3.65 | |
| Year ended 9/30/2014 | | | 47.79 | | | | (.14 | ) | | | 2.12 | | | | 1.98 | |
| Year ended 9/30/2013 | | | 38.39 | | | | (.05 | ) | | | 9.89 | | | | 9.84 | |
| Year ended 9/30/2012 | | | 30.73 | | | | (.02 | ) | | | 7.68 | | | | 7.66 | |
| Year ended 9/30/2011 | | | 35.03 | | | | (.03 | ) | | | (3.84 | ) | | | (3.87 | ) |
| Year ended 9/30/2010 | | | 29.64 | | | | .04 | | | | 5.49 | | | | 5.53 | |
| Class R-4: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 48.33 | | | | (.05 | ) | | | 3.87 | | | | 3.82 | |
| Year ended 9/30/2014 | | | 48.59 | | | | .02 | | | | 2.15 | | | | 2.17 | |
| Year ended 9/30/2013 | | | 39.03 | | | | .09 | | | | 10.04 | | | | 10.13 | |
| Year ended 9/30/2012 | | | 31.25 | | | | .11 | | | | 7.80 | | | | 7.91 | |
| Year ended 9/30/2011 | | | 35.60 | | | | .10 | | | | (3.91 | ) | | | (3.81 | ) |
| Year ended 9/30/2010 | | | 30.12 | | | | .15 | | | | 5.58 | | | | 5.73 | |
| Class R-5: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 49.39 | | | | .02 | | | | 3.96 | | | | 3.98 | |
| Year ended 9/30/2014 | | | 49.46 | | | | .15 | | | | 2.21 | | | | 2.36 | |
| Year ended 9/30/2013 | | | 39.71 | | | | .22 | | | | 10.22 | | | | 10.44 | |
| Year ended 9/30/2012 | | | 31.80 | | | | .22 | | | | 7.93 | | | | 8.15 | |
| Year ended 9/30/2011 | | | 36.21 | | | | .22 | | | | (3.99 | ) | | | (3.77 | ) |
| Year ended 9/30/2010 | | | 30.60 | | | | .26 | | | | 5.66 | | | | 5.92 | |
| Class R-6: | | | | | | | | | | | | | | | | |
| Six months ended 3/31/20154,5 | | | 48.93 | | | | .03 | | | | 3.92 | | | | 3.95 | |
| Year ended 9/30/2014 | | | 49.00 | | | | .21 | | | | 2.15 | | | | 2.36 | |
| Year ended 9/30/2013 | | | 39.34 | | | | .25 | | | | 10.12 | | | | 10.37 | |
| Year ended 9/30/2012 | | | 31.52 | | | | .24 | | | | 7.84 | | | | 8.08 | |
| Year ended 9/30/2011 | | | 35.89 | | | | .24 | | | | (3.96 | ) | | | (3.72 | ) |
| Year ended 9/30/2010 | | | 30.31 | | | | .27 | | | | 5.62 | | | | 5.89 | |
| | | Six months | | | | | | | | | | | | | | | |
| | | ended | | | | | | | | | |
| | | March 31, | | Year ended September 30 | |
| | | 20152, 4, 5 | | 2014 | | 2013 | | 2012 | | 2011 | | 2010 |
| Portfolio turnover rate for all share classes | | | 15 | % | | | 38 | % | | | 37 | % | | | 35 | % | | | 39 | % | | | 45 | % |
See Notes to Financial Statements
| Dividends and distributions | | | | | | | | | | | | | | | | |
| Dividends | | | | | | Total | | | | | | | | | | | | Ratio of | | | Ratio of net | |
| (from net | | | Distributions | | | dividends | | | Net asset | | | | | | Net assets, | | | expenses | | | income (loss) | |
| investment | | | (from capital | | | and | | | value, end | | | Total | | | end of period | | | to average | | | to average | |
| income) | | | gains) | | | distributions | | | of period | | | return2,3 | | | (in millions) | | | net assets | | | net assets | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | — | | | $ | (4.75 | ) | | $ | (4.75 | ) | | $ | 47.80 | | | | 8.47 | %7 | | $ | — | 8 | | | .94 | %6,7 | | | (.09 | )%6,7 |
| | — | | | | — | | | | — | | | | 48.67 | | | | (4.25 | )10 | | | — | 8 | | | .08 | 2,10 | | | (.01 | )2,10 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 46.24 | | | | 8.20 | | | | 827 | | | | 1.38 | 6 | | | (.52 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 47.34 | | | | 4.12 | | | | 811 | | | | 1.39 | | | | (.30 | ) |
| | (.44 | ) | | | — | | | | (.44 | ) | | | 47.79 | | | | 25.90 | | | | 836 | | | | 1.40 | | | | (.12 | ) |
| | — | | | | — | | | | — | | | | 38.39 | | | | 24.92 | | | | 694 | | | | 1.42 | | | | (.05 | ) |
| | (.43 | ) | | | — | | | | (.43 | ) | | | 30.73 | | | | (11.28 | ) | | | 586 | | | | 1.41 | | | | (.08 | ) |
| | (.14 | ) | | | — | | | | (.14 | ) | | | 35.03 | | | | 18.71 | | | | 667 | | | | 1.44 | | | | .13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 47.40 | | | | 8.39 | | | | 755 | | | | 1.05 | 6 | | | (.20 | )6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 48.33 | | | | 4.46 | | | | 727 | | | | 1.06 | | | | .03 | |
| | (.57 | ) | | | — | | | | (.57 | ) | | | 48.59 | | | | 26.31 | | | | 712 | | | | 1.07 | | | | .21 | |
| | (.13 | ) | | | — | | | | (.13 | ) | | | 39.03 | | | | 25.38 | | | | 550 | | | | 1.08 | | | | .30 | |
| | (.54 | ) | | | — | | | | (.54 | ) | | | 31.25 | | | | (10.98 | ) | | | 441 | | | | 1.07 | | | | .26 | |
| | (.25 | ) | | | — | | | | (.25 | ) | | | 35.60 | | | | 19.15 | | | | 486 | | | | 1.09 | | | | .48 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 48.62 | | | | 8.55 | | | | 491 | | | | .75 | 6 | | | .10 | 6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 49.39 | | | | 4.78 | | | | 452 | | | | .76 | | | | .29 | |
| | (.69 | ) | | | — | | | | (.69 | ) | | | 49.46 | | | | 26.72 | | | | 550 | | | | .77 | | | | .51 | |
| | (.24 | ) | | | — | | | | (.24 | ) | | | 39.71 | | | | 25.77 | | | | 384 | | | | .78 | | | | .60 | |
| | (.64 | ) | | | — | | | | (.64 | ) | | | 31.80 | | | | (10.74 | ) | | | 314 | | | | .77 | | | | .56 | |
| | (.31 | ) | | | — | | | | (.31 | ) | | | 36.21 | | | | 19.50 | | | | 347 | | | | .78 | | | | .79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | — | | | | (4.75 | ) | | | (4.75 | ) | | | 48.13 | | | | 8.57 | | | | 2,111 | | | | .71 | 6 | | | .15 | 6 |
| | — | | | | (2.43 | ) | | | (2.43 | ) | | | 48.93 | | | | 4.82 | | | | 1,859 | | | | .71 | | | | .41 | |
| | (.71 | ) | | | — | | | | (.71 | ) | | | 49.00 | | | | 26.80 | | | | 1,206 | | | | .72 | | | | .57 | |
| | (.26 | ) | | | — | | | | (.26 | ) | | | 39.34 | | | | 25.79 | | | | 768 | | | | .73 | | | | .67 | |
| | (.65 | ) | | | — | | | | (.65 | ) | | | 31.52 | | | | (10.68 | ) | | | 494 | | | | .72 | | | | .64 | |
| | (.31 | ) | | | — | | | | (.31 | ) | | | 35.89 | | | | 19.57 | | | | 411 | | | | .73 | | | | .84 | |
See page 38 for footnotes.
Financial highlights (continued)
| 1 | Based on average shares outstanding. |
| 2 | Not annualized. |
| 3 | Total returns exclude any applicable sales charges, including contingent deferred sales charges. |
| 4 | Based on operations for the period shown and, accordingly, is not representative of a full year. |
| 5 | Unaudited. |
| 6 | Annualized. |
| 7 | Although the fund has a plan of distribution for Class R-2E shares, fees for distribution services are not paid by the fund on accounts for which a broker-dealer (or other financial intermediary) has not been assigned, including amounts invested in the fund by CRMC and/or its affiliates. If fees for distribution services were charged on these assets, fund expenses would be higher and net income and total return would be lower. |
| 8 | Amount less than $1 million. |
| 9 | Class R-2E shares were offered beginning August 29, 2014. |
| 10 | Class R-2E assets consisted solely of seed capital invested by CRMC; therefore, certain fees were not accrued. |
As a fund shareholder, 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, 2014, through March 31, 2015).
Actual expenses:
The first line of each share class in the table on the following 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 following 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:
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 on the following page 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 | | | Ending | | | | | | | |
| | | account value | | | account value | | | Expenses paid | | | Annualized | |
| | | 10/1/2014 | | | 3/31/2015 | | | during period* | | | expense ratio | |
| Class A - actual return | | $ | 1,000.00 | | | $ | 1,083.78 | | | $ | 5.71 | | | | 1.10 | % |
| Class A - assumed 5% return | | | 1,000.00 | | | | 1,019.45 | | | | 5.54 | | | | 1.10 | |
| Class B - actual return | | | 1,000.00 | | | | 1,079.53 | | | | 9.59 | | | | 1.85 | |
| Class B - assumed 5% return | | | 1,000.00 | | | | 1,015.71 | | | | 9.30 | | | | 1.85 | |
| Class C - actual return | | | 1,000.00 | | | | 1,079.46 | | | | 9.85 | | | | 1.90 | |
| Class C - assumed 5% return | | | 1,000.00 | | | | 1,015.46 | | | | 9.55 | | | | 1.90 | |
| Class F-1 - actual return | | | 1,000.00 | | | | 1,083.70 | | | | 5.56 | | | | 1.07 | |
| Class F-1 - assumed 5% return | | | 1,000.00 | | | | 1,019.60 | | | | 5.39 | | | | 1.07 | |
| Class F-2 - actual return | | | 1,000.00 | | | | 1,085.05 | | | | 4.26 | | | | .82 | |
| Class F-2 - assumed 5% return | | | 1,000.00 | | | | 1,020.84 | | | | 4.13 | | | | .82 | |
| Class 529-A - actual return | | | 1,000.00 | | | | 1,083.15 | | | | 6.08 | | | | 1.17 | |
| Class 529-A - assumed 5% return | | | 1,000.00 | | | | 1,019.10 | | | | 5.89 | | | | 1.17 | |
| Class 529-B - actual return | | | 1,000.00 | | | | 1,079.03 | | | | 10.21 | | | | 1.97 | |
| Class 529-B - assumed 5% return | | | 1,000.00 | | | | 1,015.11 | | | | 9.90 | | | | 1.97 | |
| Class 529-C - actual return | | | 1,000.00 | | | | 1,079.04 | | | | 10.11 | | | | 1.95 | |
| Class 529-C - assumed 5% return | | | 1,000.00 | | | | 1,015.21 | | | | 9.80 | | | | 1.95 | |
| Class 529-E - actual return | | | 1,000.00 | | | | 1,082.13 | | | | 7.27 | | | | 1.40 | |
| Class 529-E - assumed 5% return | | | 1,000.00 | | | | 1,017.95 | | | | 7.04 | | | | 1.40 | |
| Class 529-F-1 - actual return | | | 1,000.00 | | | | 1,084.70 | | | | 4.94 | | | | .95 | |
| Class 529-F-1 - assumed 5% return | | | 1,000.00 | | | | 1,020.19 | | | | 4.78 | | | | .95 | |
| Class R-1 - actual return | | | 1,000.00 | | | | 1,079.76 | | | | 9.49 | | | | 1.83 | |
| Class R-1 - assumed 5% return | | | 1,000.00 | | | | 1,015.81 | | | | 9.20 | | | | 1.83 | |
| Class R-2 - actual return | | | 1,000.00 | | | | 1,079.79 | | | | 9.44 | | | | 1.82 | |
| Class R-2 - assumed 5% return | | | 1,000.00 | | | | 1,015.86 | | | | 9.15 | | | | 1.82 | |
| Class R-2E - actual return | | | 1,000.00 | | | | 1,084.68 | | | | 4.89 | | | | .94 | |
| Class R-2E - assumed 5% return | | | 1,000.00 | | | | 1,020.24 | | | | 4.73 | | | | .94 | |
| Class R-3 - actual return | | | 1,000.00 | | | | 1,082.02 | | | | 7.16 | | | | 1.38 | |
| Class R-3 - assumed 5% return | | | 1,000.00 | | | | 1,018.05 | | | | 6.94 | | | | 1.38 | |
| Class R-4 - actual return | | | 1,000.00 | | | | 1,083.94 | | | | 5.46 | | | | 1.05 | |
| Class R-4 - assumed 5% return | | | 1,000.00 | | | | 1,019.70 | | | | 5.29 | | | | 1.05 | |
| Class R-5 - actual return | | | 1,000.00 | | | | 1,085.49 | | | | 3.90 | | | | .75 | |
| Class R-5 - assumed 5% return | | | 1,000.00 | | | | 1,021.19 | | | | 3.78 | | | | .75 | |
| Class R-6 - actual return | | | 1,000.00 | | | | 1,085.67 | | | | 3.69 | | | | .71 | |
| Class R-6 - assumed 5% return | | | 1,000.00 | | | | 1,021.39 | | | | 3.58 | | | | .71 | |
| * | The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period). |
This page was intentionally left blank.
This page was intentionally left blank.
This page was intentionally left blank.
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 92618-4518
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, 2015, 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, 2015, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
The American Funds Advantage
Since 1931, American Funds, part of Capital Group, has helped investors pursue long-term investment success. Our consistent approach — in combination with The Capital SystemSM — has resulted in a superior long-term track record.
| | Aligned with investor success |
| | We base our decisions on a long-term perspective, which we believe aligns our goals with the interests of our clients. Our portfolio managers average 27 years of investment experience, including 22 years at our company, reflecting a career commitment to our long-term approach.1 |
| | |
| | The Capital SystemSM |
| | Our investment process, The Capital System, combines individual accountability with teamwork. Each fund is divided into portions that are managed independently by investment professionals with diverse backgrounds, ages and investment approaches. 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 54% of 10-year periods and 57% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3 |
| | 1 | Portfolio manager experience as of December 31, 2014. |
| | 2 | Based on Class A share results for rolling periods through December 31, 2014. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date (except SMALLCAP World Fund, for which the Lipper average was used). |
| | 3 | On average, our management fees were in the lowest quintile 70% of the time, based on the 20-year period ended December 31, 2014, versus comparable Lipper categories, excluding funds of funds. |
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, 2015
Common stocks 94.56%
Health care 18.85% | Shares | Value
(000) |
| Incyte Corp.1 | 4,367,600 | $400,334 |
| Endo International PLC1 | 2,900,518 | 260,176 |
| Endo International PLC (CAD denominated)1 | 100,000 | 9,005 |
| bluebird bio, Inc.1,2 | 2,091,565 | 252,598 |
| Molina Healthcare, Inc.1,2 | 3,488,100 | 234,714 |
| Synageva BioPharma Corp.1,2 | 2,179,974 | 212,613 |
| Centene Corp.1 | 2,970,000 | 209,949 |
| Myriad Genetics, Inc.1,2 | 5,780,656 | 204,635 |
| BioMarin Pharmaceutical Inc.1 | 1,296,500 | 161,570 |
| Hikma Pharmaceuticals PLC3 | 4,840,153 | 152,483 |
| EXACT Sciences Corp.1,2 | 6,605,000 | 145,442 |
| GW Pharmaceuticals PLC (ADR)1,2 | 1,565,700 | 142,682 |
| Kite Pharma, Inc.1 | 1,546,200 | 89,185 |
| Kite Pharma, Inc.1,4 | 481,446 | 27,770 |
| Brookdale Senior Living Inc.1 | 3,046,750 | 115,045 |
| athenahealth, Inc.1 | 929,371 | 110,958 |
| Juno Therapeutics, Inc.1,3,5 | 1,831,501 | 91,101 |
| Juno Therapeutics, Inc.1 | 301,000 | 18,259 |
| Spire Healthcare Group PLC1,3 | 17,738,990 | 98,331 |
| Sysmex Corp.3 | 1,698,000 | 94,381 |
| Zeltiq Aesthetics, Inc.1,2 | 3,002,044 | 92,553 |
| Ultragenyx Pharmaceutical Inc.1 | 1,411,470 | 87,638 |
| Alnylam Pharmaceuticals, Inc.1 | 833,700 | 87,055 |
| Illumina, Inc.1 | 450,800 | 83,687 |
| CONMED Corp.2 | 1,635,000 | 82,551 |
| Ocular Therapeutix, Inc.1,2 | 1,705,700 | 71,614 |
| Intuitive Surgical, Inc.1 | 135,000 | 68,179 |
| Agios Pharmaceuticals, Inc.1 | 698,000 | 65,821 |
| Hologic, Inc.1 | 1,965,000 | 64,894 |
| Galapagos NV1,2,3 | 2,422,427 | 57,491 |
| Teleflex Inc. | 460,700 | 55,666 |
| NuVasive, Inc.1 | 1,184,000 | 54,452 |
| HeartWare International, Inc.1 | 596,993 | 52,398 |
| Prothena Corp. PLC1 | 1,263,214 | 48,179 |
| Fisher & Paykel Healthcare Corp. Ltd.3 | 9,663,437 | 47,455 |
| ACADIA Pharmaceuticals Inc.1 | 1,443,000 | 47,027 |
| Pharmacyclics, Inc.1 | 183,656 | 47,007 |
| Neurocrine Biosciences, Inc.1 | 1,150,200 | 45,674 |
| Neovasc Inc. (CAD denominated)1,2 | 4,277,000 | 38,497 |
| Neovasc Inc.1,2 | 503,836 | 4,534 |
| Team Health Holdings, Inc.1 | 727,000 | 42,537 |
| Novadaq Technologies Inc.1 | 2,505,948 | 40,697 |
| INC Research Holdings, Inc., Class A1 | 1,216,216 | 39,807 |
| PerkinElmer, Inc. | 745,000 | 38,099 |
| Virbac SA3 | 160,200 | 37,858 |
| BTG PLC1,3 | 3,350,000 | 35,385 |
| XenoPort, Inc.1,2 | 4,769,000 | 33,955 |
SMALLCAP World Fund — Page 1 of 16
Common stocks
Health care (continued) | Shares | Value
(000) |
| Insulet Corp.1 | 1,012,700 | $33,774 |
| Flexion Therapeutics, Inc.1,2 | 1,419,252 | 31,962 |
| Nihon Kohden Corp.3 | 1,113,000 | 30,354 |
| KYTHERA Biopharmaceuticals, Inc.1 | 587,300 | 29,453 |
| Fleury SA, ordinary nominative | 5,825,000 | 29,202 |
| ChemoCentryx, Inc.1,2 | 3,467,240 | 26,178 |
| Genomma Lab Internacional, SAB de CV, Series B1 | 27,263,000 | 25,827 |
| Tong Ren Tang Technologies Co., Ltd., Class H3 | 16,820,000 | 24,739 |
| AAC Holdings, Inc.1 | 800,000 | 24,464 |
| QIAGEN NV1,3 | 968,751 | 24,446 |
| Glenmark Pharmaceuticals Ltd.3 | 1,921,103 | 24,190 |
| Zafgen, Inc.1 | 605,000 | 23,964 |
| Ironwood Pharmaceuticals, Inc., Class A1 | 1,475,000 | 23,600 |
| Achillion Pharmaceuticals, Inc.1 | 2,325,000 | 22,925 |
| Eurofins Scientific SE, non-registered shares3 | 73,500 | 19,813 |
| Orexigen Therapeutics, Inc.1 | 2,407,400 | 18,850 |
| Thoratec Corp.1 | 435,000 | 18,222 |
| Genmab A/S1,3 | 235,000 | 17,680 |
| Celldex Therapeutics, Inc.1 | 627,000 | 17,475 |
| Gerresheimer AG, non-registered shares3 | 310,000 | 17,118 |
| Grifols, SA, Class B (ADR) | 308,200 | 10,112 |
| Grifols, SA, Class A, non-registered shares3 | 135,000 | 5,797 |
| Castlight Health, Inc., Class B1 | 1,969,767 | 15,285 |
| Krka, dd, Novo mesto3 | 231,262 | 15,263 |
| Trupanion, Inc.1,2 | 1,822,500 | 14,580 |
| Circassia Pharmaceuticals PLC1,3 | 3,260,000 | 13,531 |
| Mesoblast Ltd.1,3 | 4,700,000 | 12,947 |
| Wright Medical Group, Inc.1 | 438,485 | 11,313 |
| PT Siloam International Hospitals Tbk1,3 | 10,213,800 | 10,466 |
| MD Medical Group Investments PLC (GDR)3 | 1,868,188 | 8,780 |
| CYBERDYNE Inc.1,3 | 254,000 | 6,631 |
| Pharmstandard OJSC (GDR)1,3 | 891,206 | 3,737 |
| GI Dynamics, Inc. (CDI)1,2,3 | 30,320,000 | 3,134 |
| OTCPharm PJSC1,3 | 924,610 | 2,883 |
| | | 5,120,636 |
| Consumer discretionary 18.48% | | |
| Netflix, Inc.1 | 812,043 | 338,370 |
| Domino’s Pizza, Inc.2 | 3,125,769 | 314,296 |
| Lions Gate Entertainment Corp.2 | 6,996,000 | 237,304 |
| Paddy Power PLC3 | 2,229,500 | 191,095 |
| Ted Baker PLC2,3 | 3,154,993 | 116,931 |
| Dollarama Inc. | 2,078,000 | 116,160 |
| John Wiley & Sons, Inc., Class A | 1,740,530 | 106,416 |
| Mr Price Group Ltd.3 | 4,926,826 | 105,372 |
| Melco International Development Ltd.3 | 59,147,000 | 99,837 |
| Rightmove PLC3 | 1,962,000 | 87,103 |
| Brinker International, Inc. | 1,412,500 | 86,953 |
| Inchcape PLC3 | 6,465,600 | 75,978 |
| ASOS PLC1,3 | 1,369,755 | 73,295 |
| YOOX SpA1,3 | 2,621,469 | 72,500 |
| Eclat Textile Co., Ltd.3 | 5,490,160 | 71,975 |
| Gentex Corp. | 3,909,134 | 71,537 |
| Penske Automotive Group, Inc. | 1,345,000 | 69,254 |
| Jarden Corp.1 | 1,293,750 | 68,439 |
SMALLCAP World Fund — Page 2 of 16
Common stocks
Consumer discretionary (continued) | Shares | Value
(000) |
| L’Occitane International SA3 | 21,620,000 | $61,660 |
| Matahari Department Store Tbk PT3 | 40,820,000 | 61,327 |
| TOD’S SpA3 | 655,000 | 59,440 |
| Tiffany & Co. | 667,000 | 58,703 |
| Domino’s Pizza Enterprises Ltd.3 | 2,084,956 | 58,701 |
| Tesla Motors, Inc.1 | 303,200 | 57,235 |
| Cedar Fair, LP | 990,000 | 56,826 |
| Entertainment One Ltd.3 | 12,659,782 | 56,735 |
| Sotheby’s Holdings, Inc. | 1,320,000 | 55,783 |
| Cox & Kings Ltd.2,3 | 10,407,346 | 53,850 |
| Cox & Kings Ltd. (GDR)2,3 | 330,000 | 1,707 |
| Jubilant FoodWorks Ltd.1,3 | 2,220,098 | 52,435 |
| ASKUL Corp.3 | 2,193,600 | 51,676 |
| POYA International Co., Ltd.2,3 | 5,342,660 | 50,776 |
| Lands’ End, Inc.1 | 1,400,000 | 50,232 |
| zooplus AG, non-registered shares1,2,3 | 527,778 | 48,330 |
| Chow Sang Sang Holdings International Ltd.3 | 21,564,000 | 46,723 |
| OSIM International Ltd3 | 32,224,000 | 45,965 |
| Brunello Cucinelli SpA3 | 2,573,331 | 45,280 |
| Installed Building Products, Inc.1,2 | 2,068,345 | 45,007 |
| Ocado Group PLC1,3 | 8,533,708 | 44,507 |
| Tele Columbus AG1,2,3 | 2,976,000 | 43,803 |
| Moncler SpA3 | 2,597,230 | 43,538 |
| Nord Anglia Education, Inc.1 | 1,910,000 | 43,395 |
| Jumbo SA3 | 4,087,964 | 42,494 |
| START TODAY Co., Ltd.3 | 1,450,000 | 38,219 |
| Poundland Group PLC3 | 6,904,506 | 37,347 |
| TravelCenters of America LLC1,2 | 2,023,750 | 35,294 |
| Standard Pacific Corp.1 | 3,754,000 | 33,786 |
| Century Communities, Inc.1,2 | 1,716,000 | 33,170 |
| Estácio Participações SA, ordinary nominative | 5,675,000 | 32,967 |
| Eros International PLC, Class A1 | 1,871,666 | 32,698 |
| Skechers USA, Inc., Class A1 | 437,000 | 31,425 |
| Five Below, Inc.1 | 864,000 | 30,732 |
| Rentrak Corp.1 | 550,000 | 30,558 |
| Ctrip.com International, Ltd. (ADR)1 | 512,000 | 30,013 |
| Boyd Gaming Corp.1 | 2,049,000 | 29,096 |
| Daily Mail and General Trust PLC, Class A, nonvoting3 | 2,210,000 | 28,912 |
| Brunswick Corp. | 560,000 | 28,812 |
| Greene King PLC3 | 2,190,000 | 27,152 |
| EVINE Live Inc., Class A1,2 | 3,987,540 | 26,756 |
| Chipotle Mexican Grill, Inc.1 | 39,890 | 25,950 |
| Mothercare PLC3 | 8,455,000 | 25,862 |
| PT Multipolar Tbk3 | 351,330,000 | 25,605 |
| Titan Co. Ltd.3 | 3,760,000 | 25,520 |
| Stella International Holdings Ltd.3 | 10,549,500 | 25,192 |
| Hathway Cable and Datacom Ltd.1,3,5 | 35,250,000 | 25,149 |
| Six Flags Entertainment Corp. | 500,000 | 24,205 |
| Homeinns Hotel Group (ADR)1 | 1,006,000 | 23,812 |
| Pacific Textiles Holdings Ltd.3 | 17,000,000 | 23,532 |
| Arcos Dorados Holdings Inc., Class A | 4,735,000 | 23,344 |
| Zee Entertainment Enterprises Ltd.3 | 3,885,000 | 21,191 |
| Papa Murphy’s Holdings, Inc.1,2 | 1,126,400 | 20,433 |
| Lennar Corp., Class A | 394,000 | 20,413 |
| Beauty Community PCL, foreign registered2,3 | 15,000,000 | 19,682 |
SMALLCAP World Fund — Page 3 of 16
Common stocks
Consumer discretionary (continued) | Shares | Value
(000) |
| zulily, inc., Class A1 | 1,500,700 | $19,494 |
| I.T Limited3 | 57,710,000 | 19,207 |
| Toll Brothers, Inc.1 | 471,800 | 18,561 |
| Cie. Plastic Omnium SA3 | 678,658 | 17,864 |
| Merida Industry Co., Ltd.3 | 2,217,600 | 17,409 |
| Navitas Ltd.3 | 4,625,000 | 17,177 |
| Melco Crown Entertainment Ltd. (ADR) | 800,000 | 17,168 |
| China Lodging Group, Ltd. (ADR)1 | 840,000 | 16,548 |
| B2W - Cia. Digital, ordinary nominative1 | 2,600,800 | 16,257 |
| World Wrestling Entertainment, Inc., Class A | 1,140,000 | 15,971 |
| Major Cineplex Group PCL3 | 15,220,000 | 15,314 |
| Cavco Industries, Inc.1 | 204,000 | 15,312 |
| Zhongsheng Group Holdings Ltd.3 | 22,854,000 | 15,118 |
| Qunar Cayman Islands Ltd., Class B (ADR)1 | 365,000 | 15,056 |
| TAKKT AG3 | 801,778 | 14,690 |
| Intercontinental Hotels Group PLC3 | 371,045 | 14,482 |
| SHW AG, non-registered shares3 | 300,000 | 14,362 |
| Playmates Toys Ltd.3 | 57,268,000 | 13,983 |
| D.R. Horton, Inc. | 490,000 | 13,955 |
| Dick Smith Holdings Ltd.3 | 9,090,940 | 13,476 |
| American Axle & Manufacturing Holdings, Inc.1 | 505,000 | 13,044 |
| Valeo SA, non-registered shares3 | 86,000 | 12,856 |
| ITT Educational Services, Inc.1,2 | 1,869,000 | 12,691 |
| PARADISE Co., Ltd.3 | 581,000 | 12,671 |
| Topps Tiles PLC3 | 7,000,000 | 12,105 |
| HUGO BOSS AG3 | 99,231 | 12,083 |
| Techtronic Industries Co. Ltd.3 | 3,570,000 | 12,024 |
| DSW Inc., Class A | 320,000 | 11,802 |
| GVC Holdings PLC3 | 1,663,694 | 11,737 |
| William Hill PLC3 | 2,047,800 | 11,255 |
| DO & CO AG, non-registered shares3 | 150,000 | 11,130 |
| Gourmet Master Co. Ltd.3 | 2,478,000 | 11,053 |
| Sitoy Group Holdings Ltd.3 | 16,545,800 | 10,578 |
| Parkson Retail Asia Ltd.3 | 23,182,000 | 10,135 |
| Tribhovandas Bhimji Zaveri Ltd.2,3 | 4,335,732 | 10,133 |
| Talwalkars Better Value Fitness Ltd.2,3 | 1,694,000 | 10,109 |
| Café de Coral Holdings Ltd.3 | 2,820,000 | 10,089 |
| Ace Hardware Indonesia Tbk PT3 | 174,400,000 | 9,800 |
| Hankook Tire Co., Ltd.3 | 233,473 | 9,525 |
| Murphy USA Inc.1 | 125,000 | 9,046 |
| Ripley Corp SA | 17,726,000 | 8,545 |
| Weight Watchers International, Inc.1 | 1,100,000 | 7,689 |
| Samsonite International SA3 | 2,175,000 | 7,539 |
| POLYTEC Holding AG, non-registered shares3 | 834,369 | 7,263 |
| Texhong Textile Group Ltd.3 | 6,350,000 | 7,085 |
| GAEC Educação SA, ordinary nominative | 1,450,000 | 6,915 |
| International Housewares Retail Co. Ltd.3 | 29,700,000 | 6,666 |
| PT Astra Otoparts Tbk3 | 22,795,300 | 6,272 |
| Central European Media Enterprises Ltd., Class A1 | 2,220,000 | 5,905 |
| Mood Media Corp.1,2 | 6,375,000 | 3,171 |
| Mood Media Corp. (CDI)1,2 | 3,710,000 | 1,845 |
| NagaCorp Ltd.3 | 7,330,000 | 4,872 |
| Fox Factory Holding Corp.1 | 308,096 | 4,726 |
| Fourlis Holdings SA1,3 | 1,326,355 | 3,844 |
| Dixons Carphone PLC3 | 615,000 | 3,763 |
SMALLCAP World Fund — Page 4 of 16
Common stocks
Consumer discretionary (continued) | Shares | Value
(000) |
| Minth Group Ltd.3 | 1,824,000 | $3,597 |
| China Zenix Auto International Ltd. (ADR)1 | 2,152,000 | 2,561 |
| Phorm Corp. Ltd.1,3 | 15,890,000 | 2,092 |
| eLong, Inc. (ADR)1 | 50,415 | 868 |
| Career Education Corp.1 | 134,967 | 679 |
| Mulberry Group PLC3 | 51,890 | 658 |
| Powerland AG, non-registered shares1,2,3 | 1,155,176 | 372 |
| Ten Alps PLC1,3 | 3,439,001 | 34 |
| Strayer Education, Inc.1 | 423 | 23 |
| Five Star Travel Corp.1,3,5 | 96,033 | 21 |
| | | 5,018,045 |
| Industrials 13.38% | | |
| AA PLC1,2,3 | 43,792,318 | 261,265 |
| Moog Inc., Class A1 | 2,572,800 | 193,089 |
| Hoshizaki Electric Co., Ltd.3 | 2,780,700 | 181,316 |
| ITT Corp. | 3,508,121 | 140,009 |
| Loomis AB, Class B3 | 3,690,452 | 113,050 |
| Northgate PLC2,3 | 10,626,805 | 93,170 |
| Spirax-Sarco Engineering PLC3 | 1,781,000 | 89,966 |
| MonotaRO Co., Ltd.3 | 2,460,600 | 89,339 |
| King Slide Works Co., Ltd.2,3 | 5,572,000 | 83,840 |
| Oshkosh Corp. | 1,605,900 | 78,352 |
| Havells India Ltd.3 | 16,048,000 | 78,177 |
| Wizz Air Holdings PLC1,2,3 | 3,498,684 | 72,088 |
| IDEX Corp. | 875,000 | 66,351 |
| American Airlines Group Inc. | 1,213,000 | 64,022 |
| Continental Building Products, Inc.1,2 | 2,705,000 | 61,106 |
| BELIMO Holding AG3 | 28,050 | 60,867 |
| Takeuchi Mfg. Co., Ltd.2,3 | 1,306,300 | 59,208 |
| Waste Connections, Inc. | 1,206,000 | 58,057 |
| Japan Airport Terminal Co. Ltd.3 | 940,000 | 56,979 |
| PARK24 Co., Ltd.3 | 2,765,000 | 56,633 |
| Gujarat Pipavav Port Ltd.1,3 | 14,381,091 | 55,569 |
| Flughafen Zürich AG3 | 68,400 | 53,884 |
| Generac Holdings Inc.1 | 1,099,300 | 53,525 |
| NORMA Group SE, non-registered shares3 | 1,051,339 | 52,974 |
| Clean Harbors, Inc.1 | 930,700 | 52,845 |
| Johnson Electric Holdings Ltd.3 | 14,528,875 | 51,201 |
| Boer Power Holdings Ltd.3 | 34,202,000 | 50,936 |
| Exponent, Inc. | 535,000 | 47,561 |
| MITIE Group PLC3 | 11,527,502 | 47,146 |
| Landstar System, Inc. | 691,000 | 45,813 |
| Watsco, Inc. | 350,000 | 43,995 |
| Masco Corp. | 1,625,000 | 43,387 |
| TransDigm Group Inc. | 190,000 | 41,557 |
| JetBlue Airways Corp.1 | 2,100,000 | 40,425 |
| Michael Page International PLC3 | 5,170,000 | 39,935 |
| Alliance Global Group, Inc.3 | 66,295,000 | 39,258 |
| Orbital ATK, Inc. | 449,000 | 34,407 |
| Dätwyler Holding Inc., non-registered shares3 | 240,000 | 33,477 |
| CIMC Enric Holdings Ltd.3 | 31,276,000 | 30,403 |
| Amara Raja Batteries Ltd.3 | 2,173,886 | 28,914 |
| Meggitt PLC3 | 3,470,000 | 28,192 |
| Rotork PLC3 | 745,000 | 27,286 |
SMALLCAP World Fund — Page 5 of 16
Common stocks
Industrials (continued) | Shares | Value
(000) |
| Grupo Aeroportuario del Centro Norte, SAB de CV, Series B | 5,550,000 | $27,030 |
| ARC Document Solutions, Inc.1,2 | 2,903,951 | 26,803 |
| Summit Ascent Holdings Ltd.1,3 | 48,620,000 | 25,923 |
| Rheinmetall AG3 | 510,000 | 24,680 |
| Graco Inc. | 340,000 | 24,534 |
| Carborundum Universal Ltd.3 | 7,985,000 | 24,320 |
| Chart Industries, Inc.1 | 670,700 | 23,525 |
| KEYW Holding Corp.1,2 | 2,836,400 | 23,344 |
| Virgin America Inc.1 | 767,000 | 23,317 |
| BTS Rail Mass Transit Growth Infrastructure Fund3 | 71,183,700 | 22,753 |
| Sinmag Equipment Corp.2,3 | 3,800,000 | 22,393 |
| Intertek Group PLC3 | 577,000 | 21,361 |
| WageWorks, Inc.1 | 400,000 | 21,332 |
| Robert Half International Inc. | 337,000 | 20,395 |
| Regus PLC3 | 6,205,000 | 20,027 |
| J. Kumar Infraprojects Ltd.2,3 | 1,780,000 | 19,404 |
| The Brink’s Co. | 701,000 | 19,369 |
| Bossard Holding AG3 | 157,920 | 18,742 |
| Shun Tak Holdings Ltd.3 | 37,460,000 | 18,077 |
| Alaska Air Group, Inc. | 260,000 | 17,207 |
| AKR Corporindo Tbk PT3 | 40,759,000 | 15,961 |
| AirAsia Bhd.3 | 24,750,000 | 15,902 |
| Geberit AG3 | 41,000 | 15,391 |
| PayPoint PLC3 | 1,220,000 | 14,816 |
| DKSH Holding AG3 | 179,551 | 14,638 |
| Teleperformance SA3 | 204,247 | 14,000 |
| Aeroflot - Russian Airlines OJSC3 | 23,429,000 | 13,639 |
| Harmonic Drive Systems Inc.3 | 610,000 | 13,471 |
| Shanghai Industrial Holdings Ltd.3 | 4,185,000 | 12,880 |
| China Shipping Container Lines Co., Ltd., Class H1,3 | 35,460,000 | 11,237 |
| Okabe Co., Ltd.3 | 1,208,000 | 11,165 |
| Orient Overseas (International) Ltd.3 | 1,753,000 | 10,707 |
| USG Corp.1 | 397,000 | 10,600 |
| Stock Building Supply Holdings, Inc.1 | 579,222 | 10,461 |
| Briggs & Stratton Corp. | 500,000 | 10,270 |
| Pegasus Hava Tasimaciligi AS1,3 | 1,095,000 | 10,193 |
| Andritz AG3 | 170,000 | 10,166 |
| Advisory Board Co.1 | 172,819 | 9,208 |
| Houston Wire & Cable Co. | 868,094 | 8,447 |
| COSCO Pacific Ltd.3 | 5,990,000 | 7,857 |
| Avianca Holdings SA, preferred, restricted-voting (ADR) | 666,700 | 7,547 |
| Globaltrans Investment PLC (GDR)3 | 1,631,761 | 7,386 |
| TD Power Systems Ltd.3 | 1,072,405 | 6,148 |
| Jungheinrich AG, nonvoting preferred3 | 85,000 | 5,483 |
| Pfeiffer Vacuum Technology AG, non-registered shares3 | 64,000 | 5,448 |
| Mills Estruturas e Serviços de Engenharia SA, ordinary nominative | 2,110,401 | 5,244 |
| Frigoglass SAIC1,3 | 2,464,018 | 4,186 |
| China Automation Group Ltd.1,3 | 27,000,000 | 3,169 |
| Zuiko Corp.3 | 71,300 | 2,725 |
| Cebu Air, Inc.3 | 795,360 | 1,511 |
| | | 3,633,966 |
SMALLCAP World Fund — Page 6 of 16
Common stocks
Information technology 13.13% | Shares | Value
(000) |
| Qorvo, Inc.1 | 3,884,370 | $309,584 |
| AAC Technologies Holdings Inc.3 | 29,127,750 | 179,204 |
| Kakaku.com, Inc.3 | 9,426,000 | 156,354 |
| Demandware, Inc.1,2 | 2,486,056 | 151,401 |
| Palo Alto Networks, Inc.1 | 1,014,350 | 148,176 |
| Zynga Inc., Class A1 | 47,635,000 | 135,760 |
| Finisar Corp.1,2 | 5,318,000 | 113,486 |
| Topcon Corp.3 | 4,063,110 | 99,691 |
| Hamamatsu Photonics KK3 | 3,083,200 | 93,318 |
| Halma PLC3 | 8,614,967 | 89,216 |
| CDW Corp. | 2,060,000 | 76,714 |
| Semiconductor Manufacturing International Corp.1,3 | 787,175,000 | 75,752 |
| Hermes Microvision Inc.3 | 1,298,000 | 74,681 |
| 58.com Inc., Class A (ADR)1 | 1,128,000 | 59,649 |
| National Instruments Corp. | 1,819,628 | 58,301 |
| eMemory Technology Inc.2,3 | 5,358,000 | 58,201 |
| Coupons.com Inc.1,2 | 4,881,613 | 57,310 |
| MercadoLibre, Inc. | 451,000 | 55,256 |
| Zebra Technologies Corp., Class A1 | 568,900 | 51,608 |
| Playtech PLC3 | 4,189,000 | 48,318 |
| Zoopla Property Group PLC3 | 17,336,200 | 46,474 |
| Xoom Corp.1,2 | 3,075,805 | 45,184 |
| Alcatel-Lucent1,3 | 11,726,125 | 44,377 |
| QIWI PLC, Class B (ADR) | 1,788,000 | 42,948 |
| Inphi Corp.1,2 | 2,340,699 | 41,735 |
| Dolby Laboratories, Inc., Class A | 1,041,856 | 39,757 |
| ASM International NV3 | 851,500 | 39,296 |
| JUST EAT PLC1,3 | 5,940,000 | 38,407 |
| Cray Inc.1 | 1,303,772 | 36,610 |
| Ellie Mae, Inc.1 | 652,000 | 36,062 |
| EPAM Systems, Inc.1 | 588,300 | 36,057 |
| Autodesk, Inc.1 | 605,000 | 35,477 |
| FireEye, Inc.1 | 894,188 | 35,097 |
| RIB Software AG2,3 | 2,476,356 | 34,822 |
| Cypress Semiconductor Corp.1 | 2,385,000 | 33,652 |
| Veeco Instruments Inc.1 | 1,089,209 | 33,275 |
| JDS Uniphase Corp.1 | 2,489,000 | 32,656 |
| Actua Corp1,2 | 2,094,000 | 32,436 |
| Hana Microelectronics PCL3 | 23,935,000 | 32,335 |
| NCC Group PLC2,3 | 10,840,000 | 31,529 |
| Pandora Media, Inc.1 | 1,925,000 | 31,204 |
| TravelSky Technology Ltd., Class H3 | 25,420,000 | 29,248 |
| SUNeVision Holdings Ltd.3 | 89,298,000 | 29,122 |
| Nemetschek AG3 | 223,268 | 28,954 |
| Silicon Laboratories Inc.1 | 539,992 | 27,415 |
| OBIC Co., Ltd.3 | 632,500 | 26,878 |
| LendingClub Corp.1,3,5 | 1,474,744 | 26,081 |
| Atmel Corp. | 3,077,840 | 25,331 |
| Knowles Corp.1 | 1,296,091 | 24,976 |
| ASM Pacific Technology Ltd.3 | 2,314,700 | 24,069 |
| Cornerstone OnDemand, Inc.1 | 795,749 | 22,989 |
| Criteo SA (ADR)1 | 560,000 | 22,120 |
| Spectris PLC3 | 680,000 | 21,780 |
| Suprema Inc.2,3 | 868,200 | 21,668 |
| Trimble Navigation Ltd.1 | 840,000 | 21,168 |
SMALLCAP World Fund — Page 7 of 16
Common stocks
Information technology (continued) | Shares | Value
(000) |
| Wix.com Ltd.1 | 1,100,000 | $21,076 |
| KLA-Tencor Corp. | 340,650 | 19,856 |
| CoStar Group, Inc.1 | 100,000 | 19,783 |
| Gogo Inc.1 | 1,000,000 | 19,060 |
| YY Inc., Class A (ADR)1 | 309,000 | 16,857 |
| Good Technology Corp.1,3,4 | 3,636,364 | 16,655 |
| Domino Printing Sciences PLC3 | 1,200,000 | 16,635 |
| Semtech Corp.1 | 620,000 | 16,520 |
| Cvent, Inc.1 | 569,500 | 15,969 |
| Persistent Systems Ltd.3 | 1,335,163 | 15,237 |
| Ixia1 | 1,245,000 | 15,102 |
| ON Semiconductor Corp.1 | 1,230,000 | 14,895 |
| Taiyo Yuden Co., Ltd.3 | 960,000 | 14,001 |
| MagnaChip Semiconductor Corp.1,2 | 2,355,000 | 12,882 |
| SciQuest, Inc.1 | 740,000 | 12,528 |
| M/A-COM Technology Solutions Holdings, Inc.1 | 326,004 | 12,147 |
| Alten SA, non-registered shares3 | 250,000 | 11,481 |
| VTech Holdings Ltd.3 | 685,000 | 9,762 |
| NHN Entertainment Corp.1,3 | 151,000 | 9,703 |
| Ultimate Software Group, Inc.1 | 55,700 | 9,466 |
| Tableau Software, Inc., Class A1 | 100,000 | 9,252 |
| Cognex Corp. | 161,202 | 7,994 |
| Jay Mart PCL3 | 22,812,500 | 7,357 |
| Goldpac Group Ltd.3 | 12,000,000 | 7,075 |
| Tangoe, Inc.1 | 422,400 | 5,829 |
| iEnergizer Ltd.1,2,3 | 7,650,500 | 4,313 |
| Remark Media, Inc.1 | 108,065 | 464 |
| | | 3,565,068 |
| Financials 10.25% | | |
| SVB Financial Group1 | 1,305,700 | 165,876 |
| Umpqua Holdings Corp. | 6,904,541 | 118,620 |
| Validus Holdings, Ltd. | 2,813,000 | 118,427 |
| Financial Engines, Inc. | 2,520,930 | 105,450 |
| ING Vysya Bank Ltd.3 | 7,018,649 | 104,885 |
| GT Capital Holdings, Inc.3 | 3,485,200 | 104,101 |
| Kotak Mahindra Bank Ltd.3 | 4,940,000 | 103,528 |
| Haversham Holdings PLC1,2,3 | 42,870,000 | 101,749 |
| PacWest Bancorp | 1,942,149 | 91,067 |
| Outfront Media Inc. | 2,640,929 | 79,017 |
| WHA Corp. PCL, foreign2,3 | 77,735,590 | 75,164 |
| East West Bancorp, Inc. | 1,855,000 | 75,053 |
| HCC Insurance Holdings, Inc. | 1,257,000 | 71,234 |
| Onex Corp. | 1,179,100 | 68,472 |
| First Republic Bank | 1,141,825 | 65,187 |
| Shriram Transport Finance Co. Ltd.3 | 3,595,363 | 63,977 |
| VZ Holding AG3 | 263,200 | 51,378 |
| Talmer Bancorp, Inc., Class A | 3,234,028 | 49,529 |
| EFG International AG3 | 3,757,378 | 46,306 |
| Altisource Residential Corp. | 2,188,650 | 45,655 |
| Avanza Bank Holding AB3 | 1,280,526 | 44,679 |
| Janus Capital Group Inc. | 2,543,000 | 43,714 |
| Cathay General Bancorp, Inc. | 1,510,000 | 42,959 |
| Fibra Uno Administración, SA de CV | 15,355,891 | 40,681 |
| Repco Home Finance Ltd.2,3 | 3,809,357 | 38,963 |
SMALLCAP World Fund — Page 8 of 16
Common stocks
Financials (continued) | Shares | Value
(000) |
| Kemper Corp. | 1,000,000 | $38,960 |
| Great Western Bancorp, Inc. | 1,617,000 | 35,590 |
| GRUH Finance Ltd.3 | 8,619,701 | 33,765 |
| Genworth Mortgage Insurance Australia Ltd.3 | 12,815,157 | 32,107 |
| Foxtons Group PLC3 | 9,596,590 | 29,211 |
| Mercury General Corp. | 500,000 | 28,875 |
| Manappuram Finance Ltd.2,3 | 54,930,986 | 28,460 |
| Inversiones La Construcción SA | 2,334,000 | 27,318 |
| Texas Capital Bancshares, Inc.1 | 557,700 | 27,132 |
| Grupo Financiero Galicia SA, Class B (ADR) | 1,113,000 | 25,766 |
| Endurance Specialty Holdings Ltd. | 400,000 | 24,456 |
| Old Republic International Corp. | 1,635,000 | 24,427 |
| Land and Houses PCL, nonvoting depository receipt3 | 80,350,000 | 23,999 |
| Kenedix, Inc.3 | 5,703,000 | 23,262 |
| Chailease Holding Co. Ltd.3 | 9,317,000 | 23,190 |
| Redwood Trust, Inc. | 1,276,320 | 22,808 |
| GRIVALIA PROPERTIES Real Estate Investments Co. SA3 | 2,791,674 | 22,778 |
| Cerved Information Solutions SPA, non-registered shares1,3 | 3,301,037 | 22,002 |
| CenterState Banks, Inc. | 1,802,399 | 21,467 |
| LSL Property Services PLC3 | 4,166,350 | 20,918 |
| Bank of the Ozarks, Inc. | 555,000 | 20,496 |
| Signature Bank1 | 157,800 | 20,448 |
| RenaissanceRe Holdings Ltd. | 205,000 | 20,445 |
| ICRA Ltd.3 | 300,000 | 19,209 |
| Sino-Ocean Land Holdings Ltd.3 | 30,764,317 | 18,617 |
| RE/MAX Holdings, Inc., Class A | 550,000 | 18,265 |
| City Union Bank Ltd.3 | 11,545,000 | 17,872 |
| CRISIL Ltd.3 | 535,000 | 17,217 |
| Bank of Ireland1,3 | 45,456,798 | 17,202 |
| K. Wah International Holdings Ltd.3 | 34,759,947 | 17,152 |
| Greenhill & Co., Inc. | 420,000 | 16,653 |
| Mahindra Lifespace Developers Ltd.2,3 | 2,157,380 | 16,240 |
| Numis Corp. PLC3 | 4,549,282 | 16,033 |
| Banca Generali SpA3 | 493,000 | 15,439 |
| Tokyo Tatemono Co., Ltd.3 | 2,037,000 | 14,928 |
| Macquarie Mexican REIT | 8,661,000 | 13,588 |
| Square 1 Financial, Inc., Class A1 | 435,788 | 11,666 |
| Clifton Bancorp Inc. | 816,606 | 11,522 |
| Altisource Asset Management Corp.1 | 56,153 | 10,396 |
| Tune Ins Holdings Bhd.3 | 18,416,000 | 9,941 |
| Soundwill Holdings Ltd.3 | 5,690,000 | 9,297 |
| Bao Viet Holdings3 | 6 | — |
| | | 2,784,788 |
| Consumer staples 5.63% | | |
| Emami Ltd.3 | 8,965,000 | 143,819 |
| Emmi AG2,3 | 286,000 | 98,831 |
| Pinnacle Foods Inc. | 2,389,050 | 97,497 |
| Super Group Ltd.2,3 | 89,194,000 | 96,796 |
| Raia Drogasil SA, ordinary nominative | 10,577,374 | 94,918 |
| Puregold Price Club, Inc.3 | 94,980,900 | 88,206 |
| Glanbia PLC3 | 4,737,600 | 87,935 |
| Kaveri Seed Co. Ltd.2,3 | 4,130,970 | 64,953 |
| Nu Skin Enterprises, Inc., Class A | 944,200 | 56,850 |
| Hypermarcas SA, ordinary nominative1 | 8,592,600 | 53,038 |
SMALLCAP World Fund — Page 9 of 16
Common stocks
Consumer staples (continued) | Shares | Value
(000) |
| Herbalife Ltd. | 1,160,500 | $49,623 |
| Stock Spirits Group PLC2,3 | 16,000,000 | 49,061 |
| COSMOS Pharmaceutical Corp.3 | 242,200 | 37,888 |
| LT Group, Inc.3 | 101,570,000 | 36,976 |
| Sprouts Farmers Market, Inc.1 | 998,000 | 35,160 |
| Diplomat Pharmacy, Inc.1 | 941,777 | 32,567 |
| Emperador Inc.3 | 118,013,800 | 31,391 |
| PZ Cussons PLC3 | 6,175,000 | 31,189 |
| Fresh Del Monte Produce Inc. | 750,000 | 29,183 |
| Petra Foods Ltd.3 | 9,183,000 | 25,528 |
| VST Industries Ltd.2,3 | 1,003,400 | 25,179 |
| Pigeon Corp.3 | 279,000 | 23,488 |
| HITEJINRO CO., LTD.3 | 1,141,679 | 22,814 |
| Davide Campari-Milano SpA3 | 3,150,000 | 21,933 |
| Karex Bhd.3 | 15,575,500 | 19,313 |
| Lenta Ltd. (GDR)1,3 | 2,097,000 | 16,251 |
| Lenta Ltd. (GDR)1,3,5 | 348,700 | 2,702 |
| 7-Eleven Malaysia Holdings Bhd.3 | 43,455,800 | 18,755 |
| Del Monte Pacific Ltd.3 | 66,733,314 | 17,149 |
| Origin Enterprises PLC3 | 1,910,000 | 16,771 |
| Kernel Holding SA1,3 | 1,642,578 | 15,980 |
| Eurocash SA3 | 1,762,000 | 15,221 |
| CALBEE, Inc.3 | 350,000 | 15,215 |
| Real Nutriceutical Group Ltd.3 | 39,400,000 | 11,297 |
| Sundrug Co., Ltd.3 | 194,900 | 10,135 |
| Treasury Wine Estates Ltd.3 | 2,506,860 | 9,744 |
| Coca-Cola Icecek AS, Class C3 | 567,512 | 9,581 |
| Convenience Retail Asia Ltd.3 | 12,810,000 | 8,096 |
| O’Key Group SA (GDR)3 | 1,545,300 | 5,739 |
| R.E.A. Holdings PLC3 | 800,000 | 3,784 |
| | | 1,530,556 |
| Materials 4.15% | | |
| Chr. Hansen Holding A/S3 | 2,617,000 | 120,203 |
| James Hardie Industries PLC (CDI)3 | 9,733,929 | 112,552 |
| AptarGroup, Inc. | 1,266,579 | 80,453 |
| PolyOne Corp. | 2,049,000 | 76,530 |
| Intrepid Potash, Inc.1,2 | 5,640,352 | 65,146 |
| Silgan Holdings Inc. | 1,011,500 | 58,798 |
| OM Group, Inc.2 | 1,560,000 | 46,847 |
| Yingde Gases Group Co. Ltd.3 | 46,640,000 | 34,785 |
| Stillwater Mining Co.1 | 2,665,000 | 34,432 |
| Lundin Mining Corp.1 | 7,410,000 | 29,896 |
| United States Steel Corp. | 1,123,000 | 27,401 |
| Arkema SA3 | 345,000 | 27,231 |
| Nampak Ltd.3 | 7,828,075 | 26,217 |
| Stella-Jones Inc. | 825,000 | 25,899 |
| FUCHS PETROLUB SE3 | 717,294 | 25,828 |
| Mayr-Melnhof Karton AG, non-registered shares3 | 240,300 | 24,800 |
| CPMC Holdings Ltd.3 | 46,500,000 | 24,455 |
| Huhtamäki Oyj3 | 724,000 | 22,517 |
| CCL Industries Inc., Class B, non-voting | 200,000 | 22,502 |
| Lenzing AG3 | 328,000 | 22,068 |
| Valspar Corp. | 249,800 | 20,991 |
| UPL Ltd.3 | 2,950,000 | 20,836 |
SMALLCAP World Fund — Page 10 of 16
Common stocks
Materials (continued) | Shares | Value
(000) |
| Sirius Minerals Plc1,2,3 | 158,537,760 | $20,753 |
| Symrise AG3 | 320,500 | 20,272 |
| Boral Ltd.3 | 4,160,000 | 20,220 |
| Mountain Province Diamonds Inc.1 | 4,964,264 | 18,657 |
| Croda International PLC3 | 422,000 | 17,130 |
| Synthomer PLC3 | 3,600,000 | 16,410 |
| Constellium NV, Class A1 | 524,000 | 10,648 |
| Yip’s Chemical Holdings Ltd.3 | 15,054,000 | 8,474 |
| Greatview Aseptic Packaging Co. Ltd.3 | 16,320,000 | 8,473 |
| Platinum Group Metals Ltd.1 | 13,475,000 | 7,341 |
| ArtGo Mining Holdings Ltd.1,3 | 40,427,000 | 6,783 |
| Gem Diamonds Ltd.1,3 | 3,259,910 | 6,641 |
| Kenmare Resources PLC1,3 | 109,972,782 | 5,947 |
| Cape Lambert Resources Ltd.2,3 | 47,330,825 | 2,160 |
| Marrone Bio Innovations, Inc.1 | 450,000 | 1,741 |
| Kennady Diamonds Inc.1 | 372,952 | 1,034 |
| Sundance Resources Ltd.1,3 | 58,500,000 | 929 |
| Hummingbird Resources PLC1,3 | 1,650,000 | 759 |
| Rusoro Mining Ltd.1 | 21,437,000 | 677 |
| Eastern Platinum Ltd.1 | 486,500 | 591 |
| African Minerals Ltd.1,3 | 11,233,121 | — |
| | | 1,126,027 |
| Energy 3.04% | | |
| InterOil Corp.1 | 2,344,500 | 108,175 |
| Diamondback Energy, Inc.1 | 1,180,950 | 90,744 |
| Oasis Petroleum Inc.1 | 3,906,900 | 55,556 |
| Ophir Energy PLC1,3 | 23,575,318 | 46,999 |
| Peyto Exploration & Development Corp. | 1,742,800 | 46,730 |
| Nostrum Oil & Gas PLC1,3 | 5,023,150 | 41,542 |
| Paramount Resources Ltd.1 | 1,590,500 | 39,180 |
| Veresen Inc. | 2,680,600 | 35,303 |
| Concho Resources Inc.1 | 279,500 | 32,400 |
| Keyera Corp. | 476,200 | 31,676 |
| Petronet LNG Ltd.3 | 10,460,000 | 28,666 |
| Oil States International, Inc.1 | 707,500 | 28,137 |
| Parsley Energy, Inc., Class A1 | 1,752,300 | 28,002 |
| Synergy Resources Corp.1 | 1,777,323 | 21,061 |
| SBM Offshore NV1,3 | 1,516,670 | 18,875 |
| WorleyParsons Ltd.3 | 2,135,000 | 15,512 |
| Memorial Resource Development Corp.1 | 844,713 | 14,985 |
| Exillon Energy PLC1,3 | 7,684,660 | 14,808 |
| Delphi Energy Corp.1,2 | 12,435,000 | 14,334 |
| Tourmaline Oil Corp.1 | 410,000 | 12,408 |
| Falkland Oil and Gas Ltd.1,3 | 24,225,000 | 10,845 |
| Clayton Williams Energy, Inc.1 | 201,000 | 10,177 |
| Genel Energy PLC1,3 | 1,304,800 | 9,101 |
| Gulf Keystone Petroleum Ltd.1,3,5 | 15,715,000 | 8,504 |
| C&J Energy Services, Ltd.1 | 666,000 | 7,413 |
| Frank’s International NV | 395,000 | 7,386 |
| Amerisur Resources PLC1,3 | 16,000,000 | 7,112 |
| Lekoil Ltd. (CDI)1,2,3 | 19,430,400 | 6,769 |
| Gulf Marine Services PLC3 | 3,400,000 | 6,310 |
| BNK Petroleum Inc.1,2 | 12,804,914 | 5,662 |
| Core Laboratories NV | 40,000 | 4,180 |
SMALLCAP World Fund — Page 11 of 16
Common stocks
Energy (continued) | Shares | Value
(000) |
| Savannah Petroleum PLC1,2,3 | 7,844,000 | $3,433 |
| KrisEnergy Ltd.1,3 | 8,407,400 | 3,301 |
| San Leon Energy PLC1,2,3 | 155,300,000 | 2,988 |
| Africa Oil Corp. (SEK denominated)1,3 | 823,400 | 1,201 |
| Africa Oil Corp.1 | 700,067 | 1,017 |
| Tethys Petroleum Ltd.1 | 12,161,000 | 1,248 |
| Tethys Petroleum Ltd. (GBP denominated)1,3 | 4,647,487 | 439 |
| Borders & Southern Petroleum PLC1,3 | 20,265,000 | 1,686 |
| Cairn Energy PLC1,3 | 723,600 | 1,676 |
| Range Resources Ltd.1,3 | 100,000,000 | 949 |
| African Petroleum Corp. Ltd.1,3 | 14,458,909 | 610 |
| Esrey Energy Ltd.1 | 650,000 | 49 |
| | | 827,149 |
| Utilities 1.45% | | |
| ENN Energy Holdings Ltd.3 | 20,923,000 | 128,274 |
| CESC Ltd.3 | 6,615,832 | 63,815 |
| Manila Water Co., Inc.3 | 81,300,900 | 49,230 |
| Ratchaburi Electricity Generating Holding PCL3 | 10,079,800 | 18,968 |
| Ratchaburi Electricity Generating Holding PCL, nonvoting depository receipts3 | 7,945,000 | 14,951 |
| Infraestructura Energética Nova, SAB de CV | 5,297,600 | 28,910 |
| Huadian Fuxin Energy Corp. Ltd., Class H3 | 40,770,000 | 19,937 |
| NRG Yield, Inc., Class A | 335,523 | 17,021 |
| Greenko Group PLC1,2,3 | 9,748,155 | 15,042 |
| Energy World Corp. Ltd.1,3 | 47,700,000 | 13,914 |
| CT Environmental Group Ltd.3 | 11,988,000 | 12,912 |
| Mytrah Energy Ltd.1,2,3 | 10,418,000 | 10,122 |
| | | 393,096 |
| Telecommunication services 1.25% | | |
| HKBN Ltd.1,2,3 | 59,297,000 | 73,733 |
| Iridium Communications Inc.1,2 | 4,889,615 | 47,478 |
| Orange Polska SA3 | 16,935,000 | 42,533 |
| Cogent Communications Holdings, Inc. | 1,135,000 | 40,099 |
| Reliance Communications Ltd.1,3 | 28,138,000 | 26,634 |
| Total Access Communication PCL3 | 9,964,000 | 25,094 |
| Telephone and Data Systems, Inc. | 850,637 | 21,181 |
| RingCentral, Inc., Class A1 | 1,135,000 | 17,399 |
| Globe Telecom, Inc.3 | 365,000 | 16,405 |
| United States Cellular Corp.1 | 375,900 | 13,427 |
| Hutchison Telecommunications Hong Kong Holdings Ltd.3 | 28,662,000 | 13,276 |
| NewSat Ltd.1,3 | 26,555,563 | 2,326 |
| Let’s GOWEX, SA, non-registered shares1,3 | 106,245 | — |
| | | 339,585 |
| Miscellaneous 4.95% | | |
| Other common stocks in initial period of acquisition | | 1,343,517 |
| Total common stocks (cost: $18,262,925,000) | | 25,682,433 |
Preferred securities 0.01%
Consumer discretionary 0.01% | | |
| Zee Entertainment Enterprises Ltd., 6.00% preferred, expires 2022 | 194,670,000 | 2,488 |
SMALLCAP World Fund — Page 12 of 16
Preferred securities
Consumer staples 0.00% | Shares | Value
(000) |
| R.E.A. Holdings PLC 9.00% | 96,000 | $176 |
| Total preferred securities (cost: $1,515,000) | | 2,664 |
Rights & warrants 0.05%
Information technology 0.04% | | |
| Foursquare Labs, Inc., warrants, expire 20331,3,4 | 1,163,990 | 11,820 |
| Financials 0.01% | | |
| WHA Corp. PCL, warrants, expire 20201,2 | 6,909,830 | 1,656 |
| Materials 0.00% | | |
| Sirius Minerals Plc, warrants, expire 20151,2,3 | 40,000,000 | 89 |
| Miscellaneous 0.00% | | |
| Other rights & warrants in initial period of acquisition | | 1,281 |
| Total rights & warrants (cost: $927,000) | | 14,846 |
Convertible stocks 0.52%
Information technology 0.26% | | |
| Domo, Inc., Series D-2, convertible preferred2,3,4 | 2,965,036 | 25,000 |
| DocuSign, Inc., Series E, convertible preferred3,4 | 1,236,304 | 22,216 |
| DocuSign, Inc., Series B, convertible preferred3,4 | 66,593 | 1,197 |
| DocuSign, Inc., Series D, convertible preferred3,4 | 47,810 | 859 |
| DocuSign, Inc., Series B1, convertible preferred3,4 | 19,947 | 359 |
| Foursquare Labs, Inc., Series D, convertible preferred3,4 | 1,551,988 | 20,000 |
| | | 69,631 |
| Health care 0.23% | | |
| Proteus Digital Health, Inc., Series G, convertible preferred3,4 | 3,044,139 | 40,000 |
| Adaptimmune Therapeutics Ltd., Series A, convertible preferred2,3,4 | 16,938,900 | 9,951 |
| Stem CentRx, Inc., Series F-1, convertible preferred3,4 | 332,000 | 7,853 |
| Natera, Inc., Series F, convertible preferred3,4 | 638,569 | 5,000 |
| | | 62,804 |
| Telecommunication services 0.03% | | |
| Iridium Communications Inc., Series A, convertible preferred2,5 | 60,000 | 7,486 |
| Total convertible stocks (cost: $127,587,000) | | 139,921 |
Bonds, notes & other debt instruments 0.16%
U.S. Treasury bonds & notes 0.12%
U.S. Treasury 0.12% | Principal amount
(000) | |
| U.S. Treasury 0.25% 2015 | $19,700 | 19,706 |
| U.S. Treasury 0.25% 2015 | 12,907 | 12,914 |
| Total U.S. Treasury bonds & notes | | 32,620 |
SMALLCAP World Fund — Page 13 of 16
Bonds, notes & other debt instruments
Corporate bonds & notes 0.04%
Telecommunication services 0.03% | Principal amount
(000) | Value
(000) |
| NII Capital Corp. 10.00% 20166 | $12,125 | $5,941 |
| NII Capital Corp. 8.875% 20196 | 1,025 | 492 |
| NII Capital Corp. 7.625% 20216 | 4,000 | 1,260 |
| | | 7,693 |
| Consumer discretionary 0.01% | | |
| Central European Media Enterprises Ltd., First Lien, 15.00% 20177 | 3,892 | 3,935 |
| Total corporate bonds & notes | | 11,628 |
| Total bonds, notes & other debt instruments (cost: $43,179,000) | | 44,248 |
| Short-term securities 5.36% | | |
| AstraZeneca PLC 0.11% due 6/3/20155 | 24,400 | 24,393 |
| Australia & New Zealand Banking Group, Ltd. 0.16% due 4/27/20155 | 25,000 | 24,998 |
| Bank of Nova Scotia 0.16% due 5/13/20155 | 49,600 | 49,596 |
| Chariot Funding, LLC 0.22% due 4/23/20155 | 31,600 | 31,597 |
| Fannie Mae 0.12%–0.20% due 4/1/2015–12/14/2015 | 78,100 | 78,022 |
| Federal Farm Credit Banks 0.11% due 4/13/2015 | 40,000 | 40,000 |
| Federal Home Loan Bank 0.06%–0.19% due 4/24/2015–11/16/2015 | 325,600 | 325,442 |
| Freddie Mac 0.10%–0.17% due 6/16/2015–12/1/2015 | 227,400 | 227,339 |
| General Electric Co. 0.08% due 4/1/2015 | 1,850 | 1,850 |
| KfW 0.14%–0.15% due 4/23/2015–4/27/20155 | 71,700 | 71,698 |
| Mitsubishi UFJ Trust and Banking Corp. 0.24%–0.25% due 5/6/2015–6/3/20155 | 78,700 | 78,680 |
| Novartis Finance Corp. 0.10% due 4/7/20155 | 50,000 | 49,999 |
| Old Line Funding, LLC 0.17%–0.21% due 4/8/2015–4/27/20155 | 35,800 | 35,798 |
| Procter & Gamble Co. 0.10% due 6/19/20155 | 35,000 | 34,992 |
| Province of Ontario 0.12% due 4/30/2015 | 62,700 | 62,694 |
| Reckitt Benckiser Treasury Services PLC 0.25% due 7/23/20155 | 25,800 | 25,780 |
| Sumitomo Mitsui Banking Corp. 0.24%–0.25% due 5/11/2015–5/27/20155 | 62,900 | 62,884 |
| Svenska Handelsbanken Inc. 0.20% due 4/13/20155 | 15,600 | 15,599 |
| Thunder Bay Funding, LLC 0.27% due 7/20/20155 | 50,000 | 49,959 |
| Toronto-Dominion Holdings USA Inc. 0.15%–0.27% due 5/26/2015–9/2/20155 | 80,000 | 79,955 |
| Toyota Motor Credit Corp. 0.15% due 5/14/2015 | 33,900 | 33,896 |
| Victory Receivables Corp. 0.18% due 5/20/20155 | 50,000 | 49,986 |
| Total short-term securities (cost: $1,455,085,000) | | 1,455,157 |
| Total investment securities 100.66% (cost: $19,891,218,000) | | 27,339,269 |
| Other assets less liabilities (0.66)% | | (178,752) |
| Net assets 100.00% | | $27,160,517 |
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.
SMALLCAP World Fund — Page 14 of 16
Forward currency contracts
The fund has entered into forward currency contracts as shown in the following table. The average notional amount of open forward currency contracts was $163,506,000 over the prior 12-month period.
| | Settlement
date | Counterparty | Contract amount | Unrealized
appreciation
(depreciation)
at 3/31/2015
(000) |
Receive
(000) | Deliver
(000) |
| Sales: | | | | | |
| Australian dollars | 4/23/2015 | Barclays Bank PLC | $2,206 | A$2,900 | $1 |
| Australian dollars | 5/1/2015 | HSBC Bank | $26,286 | A$33,400 | 895 |
| Australian dollars | 5/28/2015 | UBS AG | $3,037 | A$4,000 | 1 |
| British pounds | 4/20/2015 | Citibank | $6,028 | £4,000 | 95 |
| British pounds | 4/22/2015 | HSBC Bank | $2,010 | £1,360 | (7) |
| British pounds | 4/22/2015 | HSBC Bank | $2,948 | £2,000 | (18) |
| British pounds | 4/23/2015 | HSBC Bank | $6,321 | £4,290 | (42) |
| British pounds | 5/11/2015 | Barclays Bank PLC | $31,237 | £21,063 | 1 |
| Canadian dollars | 4/9/2015 | UBS AG | $28,632 | C$34,000 | 1,790 |
| Canadian dollars | 4/13/2015 | Bank of America, N.A. | $2,836 | C$3,370 | 175 |
| Euros | 4/15/2015 | HSBC Bank | $8,503 | €7,726 | 194 |
| Euros | 4/20/2015 | Citibank | $9,859 | €9,200 | (36) |
| Euros | 4/22/2015 | HSBC Bank | $3,941 | €3,750 | (93) |
| Japanese yen | 4/9/2015 | UBS AG | $6,460 | ¥768,000 | 56 |
| Japanese yen | 4/9/2015 | HSBC Bank | $9,990 | ¥1,200,000 | (17) |
| Japanese yen | 4/14/2015 | UBS AG | $9,204 | ¥1,117,300 | (114) |
| Japanese yen | 4/16/2015 | Bank of America, N.A. | $5,977 | ¥725,000 | (70) |
| Japanese yen | 4/20/2015 | Citibank | $3,004 | ¥364,000 | (31) |
| Japanese yen | 4/23/2015 | JPMorgan Chase | $9,313 | ¥1,125,000 | (70) |
| Japanese yen | 4/27/2015 | Bank of America, N.A. | $49,603 | ¥5,940,000 | 55 |
| Japanese yen | 4/27/2015 | UBS AG | $7,307 | ¥875,000 | 8 |
| Japanese yen | 5/19/2015 | Bank of New York Mellon | $5,243 | ¥625,000 | 28 |
| | | | | | $2,801 |
SMALLCAP World Fund — Page 15 of 16
| 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 | Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in “Miscellaneous,“ was $11,457,583,000, which represented 42.18% of the net assets of the fund. This amount includes $11,139,444,000 related to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading. |
| 4 | 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. |
| 5 | 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 was $846,958,000, which represented 3.12% of the net assets of the fund. |
| 6 | Scheduled interest and/or principal payment was not received. |
| 7 | Payment in kind; the issuer has the option of paying additional securities in lieu of cash. |
| Private placement securities | Acquisition
date(s) | Cost
(000) | Value
(000) | Percent
of net
assets |
| Proteus Digital Health, Inc., Series G, convertible preferred | 5/6/2014-7/23/2014 | $40,000 | $40,000 | .15% |
| Foursquare Labs, Inc., Series D, convertible preferred | 12/3/2013 | 20,000 | 20,000 | .07 |
| Foursquare Labs, Inc., warrants, expire 2033 | 12/3/2013 | — | 11,820 | .04 |
| Kite Pharma, Inc. | 4/24/2014-6/24/2014 | 7,366 | 27,770 | .10 |
| Domo, Inc., Series D-2, convertible preferred | 3/31/2015 | 25,000 | 25,000 | .09 |
| DocuSign, Inc., Series E, convertible preferred | 2/28/2014 | 16,236 | 22,216 | .08 |
| DocuSign, Inc., Series B, convertible preferred | 2/28/2014 | 875 | 1,197 | .00 |
| DocuSign, Inc., Series D, convertible preferred | 2/28/2014 | 628 | 859 | .00 |
| DocuSign, Inc., Series B1, convertible preferred | 2/28/2014 | 262 | 359 | .00 |
| Good Technology Corp. | 8/27/2012 | 20,000 | 16,655 | .06 |
| Adaptimmune Therapeutics Ltd., Series A, convertible preferred | 2/23/2015 | 10,000 | 9,951 | .04 |
| Stem CentRx, Inc., Series F-1, convertible preferred | 6/10/2014 | 4,007 | 7,853 | .03 |
| Natera, Inc., Series F, convertible preferred | 11/24/2014 | 5,000 | 5,000 | .02 |
| Total private placement securities | | $149,374 | $188,680 | .70% |
| Key to abbreviations and symbols |
| ADR = American Depositary Receipts |
| CDI = CREST Depository Receipts |
| GDR = Global Depositary Receipts |
| A$ = Australian dollars |
| CAD/C$ = Canadian dollars |
| € = Euros |
| GBP/£ = British pounds |
| ¥ = Japanese yen |
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.
| MFGEFPX-035-0515O-S42177 | SMALLCAP World Fund — Page 16 of 16 |
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 our internal control over financial reporting during the quarter ended March 31, 2015, which were identified in connection with management's evaluation required by paragraph (d) of Rule 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting, other than as provided below. Effective November 10, 2014, the SMALLCAP World Fund, Inc.’s investment adviser implemented a new accounting system. In connection with introducing this new system, additional automated and manual controls were implemented and some existing controls were modified. None of these changes were in response to any identified deficiency or weakness in the SMALLCAP World Fund, Inc.’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 29, 2015 |
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 29, 2015 |
| /s/ Jeffrey P. Regal |
Jeffrey P. Regal, Treasurer and Principal Financial Officer |
| |
| Date: May 29, 2015 |
