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, 2006
Chad L. Norton
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)
Copies to:
Julie Allecta, Esq.
Paul, Hastings, Janofsky & Walker LLP
55 Second Street
Twenty-Fourth Floor
San Francisco, California 94105
(Counsel for the Registrant)
ITEM 1 - Reports to Stockholders
[Logo - American Funds®]
The right choice for the long term®
SMALLCAP World Fund
Semi-annual report for the six months ended March 31, 2006
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SMALLCAP World Fund® seeks long-term growth of capital through investments in smaller companies in the United States and around the world.
This fund is one of the 29 American Funds. The organization ranks among the nation’s three largest mutual fund families. For nearly 75 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.
Figures shown are past results for Class A shares and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. For the most current information and month-end results, visit americanfunds.com. Fund results shown, unless otherwise indicated, are at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower.
Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2006:
Class A shares | 1 year | 5 years | 10 years | |||||||
Reflecting 5.75% maximum sales charge | +23.36 | % | +11.54 | % | +9.00 | % |
The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on page 26 for details.
Results for other share classes can be found on page 4. Please see the inside back cover for important information about other share classes.
Investing outside the United States is subject to additional risks, such as currency fluctuations and political instability, which are detailed in the fund’s prospectus. Investing in small-capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies.
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Fellow shareholders:
SMALLCAP World Fund recorded healthy gains for the six-month period ended March 31, 2006. Global equity markets continued to strengthen, and small cap stocks maintained their dominance over large caps in the United States and around the world.
The fund returned 17.3% in the period, including reinvested dividends of $0.41 per share and a capital gain distribution of $0.68 per share. That was ahead of its peer group, as measured by the Lipper Global Small-Cap Funds Average, which rose 16.1%, and the S&P/Citigroup Global/World Indexes, which gained 17.2%. Having a global focus helped the fund: U.S. small cap stocks, as tracked by the Russell 2000 Index, rose 15.2% in the period. SMALLCAP also did notably better than the large cap Standard & Poor’s 500 Composite Index, which reported a 6.4% total return for the period. All the preceding market indexes are unmanaged.
[Begin Sidebar]
Results at a glance
For periods ended March 31, 2006 (with all distributions reinvested)
Total returns | Average annual total returns | |||||||||||||||
6 months | 1 year | 5 years | 10 years | Lifetime* | ||||||||||||
SMALLCAP World Fund | +17.3 | % | +30.9 | % | +12.9 | % | +9.7 | % | +11.6 | % | ||||||
S&P/Citigroup | ||||||||||||||||
Global/World Indexes | +17.2 | +30.7 | +18.1 | +10.4 | +10.5 | |||||||||||
Lipper Global Small-Cap | ||||||||||||||||
Funds Average | +16.1 | +29.3 | +12.8 | +10.3 | +11.8 |
*Since April 30, 1990.
All market indexes cited in this report are unmanaged and include reinvestment of all distributions. Returns for the S&P/Citigroup Global/World Indexes reflect a combination of the S&P/Citigroup Global Index and two S&P/Citigroup World indexes that corresponds to the market capitalization ranges used by the fund during comparable periods. The S&P/Citigroup Global Index, which tracks more than 7,000 publicly traded stocks around the world with market capitalizations less than $2 billion, has been used since May 2004. This index better reflects the fund’s investments in developing countries during this period. The S&P/Citigroup World indexes, which only include stocks in developed countries and reflect market capitalizations less than $1.5 billion and less than $1.2 billion, were used from 2000 to April 2004 and from 1990 to 1999, respectively.
[End Sidebar]
We are pleased to report that fiscal 2006 is off to a solid start; however, we have not forgotten the painful stock market conditions and our disappointing fund results of the early years of this decade. We caution investors that small cap stocks likely will not continue to outstrip the broad market by the magnitude they have for the last five years. This keeps us ever-mindful of the necessity of a long-term view.
Portfolio review
SMALLCAP World Fund has a mandate to select the very best research ideas, wherever in the world they may be. In fact, the fund this year has more assets invested outside the United States than at any time since the fund’s inception. U.S. equity assets now make up 38.5% of the fund, down from the 43.5% a year ago and 50.2% as of September 30, 2003. The United States remains our core; however, on a relative basis, we see more compelling opportunities in small companies elsewhere, most notably in the Asia-Pacific region. In fact, we have 32.2% of our assets invested in that large region— including Korea, India, Japan, China and Indonesia — up from 29.7% a year ago.
Some of the world’s regional economies were strong contributors to the fund’s positive results in the period. Brazilian stocks, although currently only 3% of the fund’s net assets, were in this category. The stock of Lojas Renner, a Brazilian department-store retailer, was up 120% in the six-month period, and Cyrela Brazil Realty, a real estate developer, rose 115%. Submarino.com, an Amazon-style Internet retailer selling books, CDs and electronics, saw a gain of 98%.
Korea was also a standout for the period. Of our top 10 holdings, three are Korean — Daegu Bank stock rose 53.6% in the six months and the commercial Pusan Bank stock rose 33.6%; NHN, an Internet information services firm, jumped 81.2%. While many of our Korean holdings were up, a few were not. Dongbu, a Korean construction company, was down 20.3% for the period.
[Begin Sidebar]
Where are SMALLCAP’s holdings located?
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As of March 31, 2006 | Percent of net assets | |||
United States | 38.6 | % | ||
Asia & Pacific Basin | 32.2 | |||
Europe | 11.7 | |||
Other (including Canada & Latin America) | 8.7 | |||
Short-term securities & other assets less liabilities | 8.8 | |||
[end pie chart] [begin pie chart] As of September 30, 2005 | Percent of net assets | |||
United States | 43.0 | % | ||
Asia & Pacific Basin | 29.7 | |||
Europe | 12.3 | |||
Other (including Canada & Latin America) | 6.5 | |||
Short-term securities & other assets less liabilities | 8.5 |
[end pie chart]
[End Sidebar]
We’re also hopeful about companies in the strengthening economies of Germany and Japan, which had been in recession a few years ago. German stocks returned 18.9% in the period and Japanese company stocks rose 19.5%, according to MSCI market indexes, in dollar terms with gross dividends reinvested. One of our holdings, Interhyp, a German mortgage broker, rose 80.0%; the stock price of Sanken Electric, a Japanese electronics manufacturer, increased 48.9%.
The value of research
SMALLCAP World Fund takes a company-by-company approach to building the investment portfolio, thoroughly examining each of our stock selections. We could not be as confident in our picks without our rigorous research network, which has expanded and matured in the past few years. Our analysts are on the ground, visiting company managements in countries as diverse as Brazil, India, China and Croatia. This hands-on expertise allows them to develop a deep knowledge of the companies and their managements, which is particularly important when dealing with less-well-known companies. Recently, an analyst recommended the National Bank of Pakistan after visits with management and extensive research; we invested, and the stock rose 93.0% in this six-month period. Thorough research does not guarantee success at all times, however. Some of our holdings that fell in price include Quicksilver Resources, a natural gas and crude oil production company and our eighth-largest holding, down 19.1%; and U.K. music promoter Sanctuary Group, down 95.8%. Through the ups and downs, however, we believe our painstaking, intensive research process will continue to uncover many potentially rewarding small-company stocks.
Looking ahead
The lessons we have learned since the fund began in 1990 remain with us, reminding us of the importance of a cautious approach based on thoughtful research. We focus on small companies — now defined as those with a market capitalization of $3.5 billion or less — with experienced management, solid product lines, good execution and strong balance sheets. We recently increased our upper limit for purchasing small cap stocks from $2 billion, to better reflect current market dynamics. Over the fund’s lifetime, we have revisited this definition (the limit was $1 billion when we began the fund) and may do so again in the future. We think our portfolio consists of some of the most promising small companies in the world, for this year and the years ahead.
We thank you for putting your trust in us.
Cordially,
/s/ Gordon Crawford
Gordon Crawford
Vice Chairman and
Principal Executive Officer
/s/ Gregory W. Wendt
Gregory W. Wendt
President
May 8, 2006
For current information about the fund, visit americanfunds.com.
Other share class results
unaudited
Class B, Class C, Class F and Class 529
Figures shown are past results and are not predictive of results in future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For the most current information and month-end results, visit americanfunds.com.
Average annual total returns for periods ended March 31, 2006: | ||||||||||
1 year | 5 years | Life of class | ||||||||
Class B shares— first sold 3/15/00 | ||||||||||
Reflecting applicable contingent deferred sales | ||||||||||
charge (CDSC), maximum of 5%, payable only | ||||||||||
if shares are sold within six years of purchase | +24.86 | % | +11.74 | % | -0.07 | % | ||||
Not reflecting CDSC | +29.86 | % | +11.99 | % | -0.07 | % | ||||
Class C shares— first sold 3/15/01 | ||||||||||
Reflecting CDSC, maximum of 1%, payable only if | ||||||||||
shares are sold within one year of purchase | +28.85 | % | +11.92 | % | +11.13 | % | ||||
Not reflecting CDSC | +29.85 | % | +11.92 | % | +11.13 | % | ||||
Class F shares*— first sold 3/15/01 | ||||||||||
Not reflecting annual asset-based fee charged by | ||||||||||
sponsoring firm | +30.86 | % | +12.83 | % | +12.02 | % | ||||
Class 529-A shares†— first sold 2/19/02 | ||||||||||
Reflecting 5.75% maximum sales charge | +23.30 | % | — | +15.27 | % | |||||
Not reflecting maximum sales charge | +30.84 | % | — | +16.94 | % | |||||
Class 529-B shares†— first sold 2/20/02 | ||||||||||
Reflecting applicable CDSC, maximum of 5%, | ||||||||||
payable only if shares are sold within six | ||||||||||
years of purchase | +24.70 | % | — | +15.41 | % | |||||
Not reflecting CDSC | +29.70 | % | — | +15.72 | % | |||||
Class 529-C shares†— first sold 2/20/02 | ||||||||||
Reflecting CDSC, maximum of 1%, payable only if | ||||||||||
shares are sold within one year of purchase | +28.73 | % | — | +15.74 | % | |||||
Not reflecting CDSC | +29.73 | % | — | +15.74 | % | |||||
Class 529-E shares*†— first sold 3/15/02 | +30.40 | % | — | +14.87 | % | |||||
Class 529-F shares*†— first sold 9/17/02 | ||||||||||
Not reflecting annual asset-based fee charged by | ||||||||||
sponsoring firm | +31.02 | % | — | +25.92 | % |
The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on page 26 for details.
*These shares are sold without any initial or contingent deferred sales charge.
† Results shown do not reflect the $10 initial account setup fee and an annual $10 account maintenance fee.
Summary investment portfolio, March 31, 2006
unaudited
The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings. For details on how to obtain a complete schedule of portfolio holdings, please see the inside back cover.
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Industry sector diversification | Percent of net assets | ||||||
Consumer discretionary | 19.52% | ||||||
Information technology | 15.64 | ||||||
Industrials | 13.11 | ||||||
Health care | 10.68 | ||||||
Financials | 9.14 | ||||||
Other industries | 23.09 | ||||||
Short-term securities & other assets less liabilities | 8.82 |
[end pie chart]
Shares | Market | Percent | ||||||||
value | of net | |||||||||
Common stocks - 91.05% | (000 | ) | assets | |||||||
Consumer discretionary - 19.52% | ||||||||||
Michaels Stores, Inc. | 5,300,000 | $ | 199,174 | 1.09 | % | |||||
Aristocrat Leisure Ltd. | 10,545,000 | 103,984 | .57 | |||||||
Cheil Industries Inc. | 2,575,000 | 94,350 | .51 | |||||||
Orient-Express Hotels Ltd. | 2,326,000 | 91,249 | .50 | |||||||
Lions Gate Entertainment Corp., USD denominated (1) | 4,100,000 | 41,615 | ||||||||
Lions Gate Entertainment Corp. (1) | 3,628,500 | 36,935 | .43 | |||||||
Lojas Renner SA | 1,380,000 | 75,284 | .41 | |||||||
Cyrela Brazil Realty SA, ordinary nominative | 4,185,500 | 74,615 | .41 | |||||||
Schibsted ASA | 2,525,000 | 69,578 | .38 | |||||||
Central European Media Enterprises Ltd. (1) | 963,500 | 66,106 | .36 | |||||||
Big Lots, Inc. (1) | 4,271,400 | 59,629 | .33 | |||||||
Korea Kumho Petrochemical Co., Ltd. | 1,810,940 | 58,898 | .32 | |||||||
CarMax, Inc. (1) | 1,800,000 | 58,824 | .32 | |||||||
Other securities | 2,541,433 | 13.89 | ||||||||
3,571,674 | 19.52 | |||||||||
Information technology - 15.64% | ||||||||||
CNET Networks, Inc. (1) | 10,655,000 | 151,408 | .83 | |||||||
Kingboard Chemical Holdings Ltd. | 45,946,000 | 138,855 | .76 | |||||||
NHN Corp. (1) | 443,000 | 136,785 | .75 | |||||||
Integrated Device Technology, Inc. (1) | 7,854,000 | 116,710 | .64 | |||||||
Semtech Corp. (1) | 5,900,000 | 105,551 | .57 | |||||||
PMC-Sierra, Inc. (1) | 8,202,700 | 100,811 | .55 | |||||||
Cymer, Inc. (1) | 2,060,000 | 93,606 | .51 | |||||||
Chartered Semiconductor Manufacturing Ltd (1) | 84,762,000 | 82,334 | .45 | |||||||
Varian Semiconductor Equipment Associates, Inc. (1) | 2,325,000 | 65,286 | .36 | |||||||
ValueClick, Inc. (1) | 3,600,000 | 60,912 | .33 | |||||||
Other securities | 1,810,485 | 9.89 | ||||||||
2,862,743 | 15.64 | |||||||||
Industrials - 13.11% | ||||||||||
Downer EDI Ltd. | 18,988,390 | 120,526 | .66 | |||||||
ALL - América Latina Logística, units | 1,766,550 | 109,440 | .60 | |||||||
United Stationers Inc. (1) | 1,712,200 | 90,918 | .50 | |||||||
JetBlue Airways Corp. (1) | 8,250,000 | 88,440 | .48 | |||||||
Samsung Engineering Co., Ltd. | 2,587,640 | 87,355 | .48 | |||||||
Container Corp. of India Ltd. | 2,641,794 | 85,849 | .47 | |||||||
Corrections Corporation of America (1) | 1,850,000 | 83,620 | .46 | |||||||
Buhrmann NV | 4,543,600 | 80,407 | .44 | |||||||
GS Engineering & Construction Co. Ltd. | 1,320,107 | 78,533 | .43 | |||||||
MSC Industrial Direct Co., Inc. | 1,275,000 | 68,876 | .37 | |||||||
LS Industrial Systems Co., Ltd. | 1,950,000 | 67,034 | .36 | |||||||
Lincoln Electric Holdings, Inc. | 1,080,000 | 58,309 | .32 | |||||||
Acuity Brands, Inc. | 1,449,500 | 57,980 | .32 | |||||||
Other securities | 1,323,030 | 7.22 | ||||||||
2,400,317 | 13.11 | |||||||||
Health care - 10.68% | ||||||||||
Medicis Pharmaceutical Corp. | 3,545,000 | 115,567 | .63 | |||||||
Advanced Medical Optics, Inc. (1) | 2,415,000 | 112,636 | .62 | |||||||
Kyphon Inc. (1) | 2,994,600 | 111,399 | .61 | |||||||
Alfresa Holdings Corp. | 1,467,000 | 89,102 | .49 | |||||||
IDEXX Laboratories, Inc. (1) | 720,000 | 62,179 | .34 | |||||||
ArthroCare Corp. (1) | 1,282,000 | 61,305 | .33 | |||||||
Myogen, Inc. (1) | 1,640,000 | 59,417 | .32 | |||||||
FoxHollow Technologies, Inc. (1) | 1,900,200 | 58,051 | .32 | |||||||
Other securities | 1,284,209 | 7.02 | ||||||||
1,953,865 | 10.68 | |||||||||
Financials - 9.14% | ||||||||||
Daegu Bank, Ltd. | 10,399,890 | 194,275 | 1.06 | |||||||
Pusan Bank | 11,477,500 | 167,744 | .92 | |||||||
HDFC Bank Ltd. | 5,206,500 | 90,628 | .50 | |||||||
Housing Development Finance Corp. Ltd. | 2,212,480 | 66,494 | .36 | |||||||
MCB Bank Ltd. | 16,465,080 | 61,737 | .34 | |||||||
Other securities | 1,091,626 | 5.96 | ||||||||
1,672,504 | 9.14 | |||||||||
Materials - 6.21% | ||||||||||
Yamana Gold Inc. (1) | 8,815,000 | 81,194 | .44 | |||||||
Hyundai Steel Co. | 2,645,000 | 78,811 | .43 | |||||||
Hanwha Chemical Corp. | 5,641,930 | 72,005 | .40 | |||||||
Dongkuk Steel Mill Co., Ltd. | 3,355,000 | 66,471 | .36 | |||||||
Fuji Seal International, Inc. | 2,091,900 | 62,018 | .34 | |||||||
Other securities | 776,074 | 4.24 | ||||||||
1,136,573 | 6.21 | |||||||||
Energy - 5.98% | ||||||||||
OPTI Canada Inc. (1) | 4,373,000 | 165,875 | ||||||||
OPTI Canada Inc. (1) (2) | 210,000 | 7,966 | .95 | |||||||
Quicksilver Resources Inc. (1) | 3,399,150 | 131,411 | .72 | |||||||
WorleyParsons Ltd. | 8,900,189 | 119,864 | .65 | |||||||
Bill Barrett Corp. (1) | 1,893,500 | 61,709 | .34 | |||||||
First Calgary Petroleums Ltd., GBP denominated (1) | 4,800,000 | 36,707 | ||||||||
First Calgary Petroleums Ltd. (1) | 3,146,000 | 23,586 | .33 | |||||||
Other securities | 547,083 | 2.99 | ||||||||
1,094,201 | 5.98 | |||||||||
Consumer staples - 2.63% | ||||||||||
AMOREPACIFIC Corp. | 157,250 | 61,501 | .34 | |||||||
Other securities | 419,410 | 2.29 | ||||||||
480,911 | 2.63 | |||||||||
Utilities - 1.79% | ||||||||||
Perusahaan Gas Negara (Persero) Tbk. (3) | 75,458,000 | 83,259 | .45 | |||||||
Other securities | 244,588 | 1.34 | ||||||||
327,847 | 1.79 | |||||||||
Telecommunication services - 1.42% | ||||||||||
TIM Participações SA, preferred nominative (ADR) | 1,872,428 | 69,336 | .38 | |||||||
Other securities | 191,437 | 1.04 | ||||||||
260,773 | 1.42 | |||||||||
Miscellaneous - 4.93% | ||||||||||
Other common stocks in initial period of acquisition | 902,318 | 4.93 | ||||||||
Total common stocks (cost: $11,825,906,000) | 16,663,726 | 91.05 | ||||||||
Rights & warrants - 0.07% | ||||||||||
Other securities | 13,423 | .07 | ||||||||
Total rights & warrants (cost: $568,000) | 13,423 | .07 | ||||||||
Convertible securities - 0.01% | ||||||||||
Other - 0.00% | ||||||||||
Other securities | 52 | .00 | ||||||||
Miscellaneous - 0.01% | ||||||||||
Other convertible securities in initial period of acquisition | 1,842 | .01 | ||||||||
Total convertible securities (cost: $20,775,000) | 1,894 | .01 | ||||||||
Bonds & notes - 0.05% | ||||||||||
Other securities | 7,890 | .05 | ||||||||
Total bonds & notes (cost: $9,339,000) | 7,890 | .05 | ||||||||
Short-term securities - 8.56% | Principal amount | ) | ||||||||
ING (U.S.) Funding LLC 4.55%-4.81% due 4/13-6/2/2006 | $ | 98,600 | 98,139 | |||||||
Mont Blanc Capital Corp. 4.66%-4.70% due 4/19-5/22/2006 (2) | 78,894 | 78,591 | .96 | |||||||
Amsterdam Funding Corp. 4.55%-4.70% due 4/4-5/16/2006 (2) | 145,630 | 145,238 | .79 | |||||||
Old Line Funding, LLC 4.53%-4.68% due 4/5-5/12/2006 (2) | 101,578 | 101,244 | .55 | |||||||
BASF AG 4.49%-4.67% due 4/13-5/16/2006 (2) | 97,800 | 97,414 | .53 | |||||||
American Honda Finance Corp. 4.57%-4.60% due 4/24-5/8/2006 | 85,900 | 85,548 | .47 | |||||||
U.S. Treasury Bills 4.325%-4.55% due 4/20-5/4/2006 | 76,800 | 76,562 | .42 | |||||||
Barclays U.S. Funding Corp. 4.72%-4.775% due 5/17-5/25/2006 (4) | 68,000 | 67,587 | .37 | |||||||
Shell International Finance B.V. 4.50%-4.51% due 4/3-4/11/2006 | 65,300 | 65,244 | .36 | |||||||
Alcon Capital Corp. 4.695% due 5/17/2006 (2) | 39,200 | 38,971 | ||||||||
Nestlé Capital Corp. 4.52% due 4/4/2006 (2) | 21,500 | 21,489 | .33 | |||||||
Other securities | 691,586 | 3.78 | ||||||||
Total short-term securities (cost: $1,567,482,000) | 1,567,613 | 8.56 | ||||||||
Total investment securities (cost: $13,424,070,000) | 18,254,546 | 99.74 | ||||||||
Other assets less liabilities | 47,744 | .26 | ||||||||
Net assets | $ | 18,302,290 | 100.00 | % | ||||||
"Miscellaneous" securities include holdings in their initial period of acquisition that have not previously been publicly disclosed. | ||||||||||
"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio. |
Investments in affiliates
A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares of that company. Some of the fund's affiliated holdings listed below are also among the fund's largest holdings and are shown in the preceding summary investment portfolio. Affiliated companies not among the fund's largest holdings are included in the marketvalue of "Other securities" under their respective industry sectors. Further details on these holdings and related transactions during the six months ended March 31, 2006, appear below.
Company | Beginning shares | Purchases | Sales | Ending shares | Dividend income | Market value of affiliates | |||||||||||||
(000 | ) | (000 | ) | ||||||||||||||||
Daegu Bank, Ltd. | 10,339,890 | 60,000 | - | 10,399,890 | $ | 3,429 | $ | 194,275 | |||||||||||
OPTI Canada Inc. (1) | 4,373,000 | - | - | 4,373,000 | - | 165,875 | |||||||||||||
OPTI Canada Inc. (1) (2) | - | 210,000 | - | 210,000 | - | 7,966 | |||||||||||||
OPTI Canada Inc., warrants, expire 2008 (1) (2) | 105,000 | - | - | 105,000 | - | 1,624 | |||||||||||||
OPTI Canada Inc., Series C, 5.00% convertible preferred | 210,000 | - | 210,000 | - | - | - | |||||||||||||
Pusan Bank | 10,370,500 | 1,107,000 | - | 11,477,500 | 3,462 | 167,744 | |||||||||||||
CNET Networks, Inc. (1) | 10,655,000 | - | - | 10,655,000 | - | 151,408 | |||||||||||||
Kingboard Chemical Holdings Ltd. | 45,946,000 | - | - | 45,946,000 | - | 138,855 | |||||||||||||
Kingboard Chemical Holdings Ltd., warrants, expire 2006 (1) | 3,988,200 | - | - | 3,988,200 | - | 1,850 | |||||||||||||
Downer EDI Ltd. | 18,701,412 | 286,978 | - | 18,988,390 | 1,595 | 120,526 | |||||||||||||
Medicis Pharmaceutical Corp. | 2,450,000 | 1,095,000 | - | 3,545,000 | 210 | 115,567 | |||||||||||||
Kyphon Inc. (1) | 1,656,500 | 1,338,100 | - | 2,994,600 | - | 111,399 | |||||||||||||
Semtech Corp. (1) | 5,900,000 | - | - | 5,900,000 | - | 105,551 | |||||||||||||
Cheil Industries Inc. | 2,495,000 | 80,000 | - | 2,575,000 | 1,592 | 94,350 | |||||||||||||
Cymer, Inc. (1) | 2,060,000 | - | - | 2,060,000 | - | 93,606 | |||||||||||||
United Stationers Inc. (1) | 1,712,200 | - | - | 1,712,200 | - | 90,918 | |||||||||||||
Samsung Engineering Co., Ltd. | 2,587,640 | - | - | 2,587,640 | 853 | 87,355 | |||||||||||||
Lions Gate Entertainment Corp., USD denominated (1) | 3,800,000 | 300,000 | - | 4,100,000 | - | 41,615 | |||||||||||||
Lions Gate Entertainment Corp. (1) | 2,728,500 | 900,000 | - | 3,628,500 | - | 36,935 | |||||||||||||
Lojas Renner SA | 1,380,000 | - | - | 1,380,000 | 1,582 | 75,284 | |||||||||||||
Hanwha Chemical Corp. | 6,492,000 | - | 850,070 | 5,641,930 | 1,873 | 72,005 | |||||||||||||
LS Industrial Systems Co., Ltd. | 1,950,000 | - | - | 1,950,000 | 964 | 67,034 | |||||||||||||
Fuji Seal International, Inc. | 1,811,900 | 280,000 | - | 2,091,900 | 167 | 62,018 | |||||||||||||
ArthroCare Corp. (1) | - | 1,282,000 | - | 1,282,000 | - | 61,305 | |||||||||||||
Korea Kumho Petrochemical Co., Ltd. | 1,810,940 | - | - | 1,810,940 | 970 | 58,898 | |||||||||||||
FoxHollow Technologies, Inc. (1) | - | 1,900,200 | - | 1,900,200 | - | 58,051 | |||||||||||||
Power Integrations, Inc. (1) | 2,300,000 | - | - | 2,300,000 | - | 56,994 | |||||||||||||
Wright Medical Group, Inc. (1) | 2,000,000 | 736,000 | - | 2,736,000 | - | 54,036 | |||||||||||||
Sino-Forest Corp. (1) | 6,022,800 | 3,400,000 | - | 9,422,800 | - | 52,883 | |||||||||||||
Xinao Gas Holdings Ltd. | 43,066,000 | 13,372,000 | - | 56,438,000 | - | 52,369 | |||||||||||||
JUMBO SA | 2,852,797 | 256,746 | - | 3,109,543 | 736 | 51,636 | |||||||||||||
GSI Commerce, Inc. (1) | 2,794,491 | - | - | 2,794,491 | - | 47,506 | |||||||||||||
Wing Tai Holdings Ltd. | 38,478,000 | 1,522,000 | - | 40,000,000 | 575 | 47,021 | |||||||||||||
ORCO PROPERTY GROUP SA | - | 437,000 | - | 437,000 | - | 46,745 | |||||||||||||
Indiabulls Financial Services Ltd. | - | 8,604,292 | 535,000 | 8,069,292 | 283 | 46,351 | |||||||||||||
Unibet Group PLC (SDR) | 1,370,850 | 399,150 | - | 1,770,000 | - | 44,972 | |||||||||||||
Restaurant Group PLC | 14,062,000 | - | 1,562,445 | 12,499,555 | 3,924 | 44,100 | |||||||||||||
Fourlis | 3,310,000 | - | - | 3,310,000 | - | 44,052 | |||||||||||||
Ekornes ASA | 2,020,598 | 110,000 | - | 2,130,598 | - | 43,910 | |||||||||||||
Marchex, Inc. (1) | 1,328,500 | 671,500 | - | 2,000,000 | - | 43,000 | |||||||||||||
Manhattan Associates, Inc. (1) | 1,950,000 | - | - | 1,950,000 | - | 42,900 | |||||||||||||
Golden Star Resources Ltd. (1) | - | 13,420,000 | - | 13,420,000 | - | 42,430 | |||||||||||||
CESC Ltd. (GDR) (1) (2) | 3,320,000 | - | - | 3,320,000 | - | 25,616 | |||||||||||||
CESC Ltd. | - | 2,005,000 | - | 2,005,000 | - | 15,470 | |||||||||||||
Keryx Biopharmaceuticals, Inc. (1) | - | 2,000,000 | - | 2,000,000 | - | 38,220 | |||||||||||||
Veeco Instruments, Inc. (1) | 1,598,523 | - | - | 1,598,523 | - | 37,326 | |||||||||||||
STX Shipbuilding Co., Ltd. | 1,493,000 | 373,399 | - | 1,866,399 | 769 | 36,498 | |||||||||||||
STX Shipbuilding Co., Ltd., rights, expire 2005 | 373,399 | - | 373,399 | - | - | - | |||||||||||||
DELTA HOLDING SA | 2,404,000 | - | - | 2,404,000 | - | 36,423 | |||||||||||||
National Finance PCL | 86,650,000 | - | - | 86,650,000 | 569 | 36,137 | |||||||||||||
Kenmare Resources PLC (1) | 39,316,000 | - | - | 39,316,000 | - | 32,970 | |||||||||||||
Kenmare Resources PLC, warrants, expire 2009 (1) | 5,775,000 | - | - | 5,775,000 | - | 2,849 | |||||||||||||
Connetics Corp. (1) | 2,000,000 | - | - | 2,000,000 | - | 33,860 | |||||||||||||
Saxon Capital, Inc. | 2,520,000 | 720,000 | - | 3,240,000 | 5,079 | 33,826 | |||||||||||||
O2Micro International Ltd. (ADR) (1) | 2,495,000 | 560,000 | - | 3,055,000 | - | 32,475 | |||||||||||||
Citi Trends, Inc. (1) | - | 804,816 | - | 804,816 | - | 31,999 | |||||||||||||
IBT Education Ltd. | - | 20,257,368 | - | 20,257,368 | 599 | 31,747 | |||||||||||||
Gateway Distriparks Ltd. | - | 3,389,867 | - | 3,389,867 | 115 | 19,323 | |||||||||||||
Gateway Distriparks Ltd. (GDR) (2) | - | 2,135,000 | - | 2,135,000 | 72 | 12,170 | |||||||||||||
NuVasive, Inc. (1) | - | 1,659,000 | - | 1,659,000 | - | 31,272 | |||||||||||||
Kakaku.com, Inc. | 6,179 | 1,641 | - | 7,820 | 13 | 30,889 | |||||||||||||
ValueVision Media, Inc. (1) | 1,800,000 | 600,000 | - | 2,400,000 | - | 30,672 | |||||||||||||
Hudson Highland Group, Inc. (1) | 1,244,000 | 330,000 | - | 1,574,000 | - | 29,812 | |||||||||||||
Apollo Hospitals Enterprise Ltd. | 1,433,400 | 1,108,974 | - | 2,542,374 | - | 28,968 | |||||||||||||
Apollo Hospitals Enterprise Ltd. (GDR) | 1,053,100 | - | 1,053,100 | - | - | - | |||||||||||||
Bloomsbury Publishing PLC | 4,655,000 | - | - | 4,655,000 | 49 | 28,316 | |||||||||||||
WD-40 Co. | 900,000 | - | - | 900,000 | 396 | 27,765 | |||||||||||||
Nien Made Enterprise Co., Ltd. | - | 22,100,000 | - | 22,100,000 | - | 27,649 | |||||||||||||
Ballast Nedam NV (1) | 628,753 | - | - | 628,753 | - | 26,826 | |||||||||||||
GES International | - | 42,700,000 | - | 42,700,000 | 1,551 | 26,418 | |||||||||||||
Billing Services Group PLC (1) | 16,548,800 | - | - | 16,548,800 | - | 26,283 | |||||||||||||
Knot, Inc. (1) (2) | 1,200,000 | - | - | 1,200,000 | - | 21,720 | |||||||||||||
Knot, Inc. (1) | 178,820 | - | - | 178,820 | - | 3,237 | |||||||||||||
Banro Corp. (1) (2) | 1,750,000 | - | - | 1,750,000 | - | 19,568 | |||||||||||||
Echelon Corp. (1) | 2,000,000 | - | - | 2,000,000 | - | 18,880 | |||||||||||||
Bankers Petroleum Ltd. (1) | 9,400,000 | 13,703,800 | - | 23,103,800 | - | 18,410 | |||||||||||||
SFA Engineering Corp. | 437,500 | 116,200 | - | 553,700 | 502 | 18,293 | |||||||||||||
PGG Wrightson Ltd. | - | 16,195,000 | - | 16,195,000 | 413 | 18,215 | |||||||||||||
Nabi Biopharmaceuticals (1) | 3,050,000 | - | - | 3,050,000 | - | 17,202 | |||||||||||||
Halla Engineering & Construction Corp. | 626,000 | - | - | 626,000 | 258 | 16,655 | |||||||||||||
NTELOS Holdings Corp. (1) | - | 1,150,000 | - | 1,150,000 | - | 16,111 | |||||||||||||
Kyeryong Construction Industrial Co., Ltd. | 469,250 | - | - | 469,250 | 309 | 15,817 | |||||||||||||
Ichia Technologies, Inc. | 16,995,177 | - | - | 16,995,177 | - | 15,363 | |||||||||||||
Spark Networks PLC (GDR) (1) | 747,000 | 553,000 | - | 1,300,000 | - | 8,336 | |||||||||||||
Spark Networks PLC (1) (2) | 1,103,000 | - | - | 1,103,000 | - | 6,896 | |||||||||||||
Plantynet Co., Ltd. | - | 268,800 | - | 268,800 | 49 | 14,635 | |||||||||||||
RNB Retail and Brands AB | - | 2,100,000 | - | 2,100,000 | 39 | 14,183 | |||||||||||||
Gaming VC Holdings SA | 2,023,800 | - | - | 2,023,800 | - | 13,999 | |||||||||||||
Career Technology (MFG.) Co., Ltd. | 5,255,894 | 8,100,000 | - | 13,355,894 | - | 12,300 | |||||||||||||
Sharper Image Corp. (1) | 950,000 | - | - | 950,000 | - | 12,169 | |||||||||||||
KEC Corp. | 5,235,400 | - | - | 5,235,400 | 151 | 11,639 | |||||||||||||
SupportSoft, Inc. (1) | - | 2,476,000 | - | 2,476,000 | - | 10,969 | |||||||||||||
Aricom PLC (1) | 2,593,134 | 7,300,000 | - | 9,893,134 | - | 10,488 | |||||||||||||
Can Do Co., Ltd. | 7,900 | - | - | 7,900 | 61 | 10,200 | |||||||||||||
Regal Petroleum PLC (1) | 4,670,000 | 3,147,000 | - | 7,817,000 | - | 10,189 | |||||||||||||
Eastern Platinum Ltd. (1) | 4,087,500 | 474,200 | - | 4,561,700 | - | 5,355 | |||||||||||||
Eastern Platinum Ltd. (1) (2) | - | 3,500,000 | - | 3,500,000 | - | 3,492 | |||||||||||||
Eastern Platinum Ltd., warrants, expire 2008 (1) | 2,043,750 | - | - | 2,043,750 | - | 771 | |||||||||||||
Eastern Platinum Ltd., warrants, expire 2009 (1) (2) | - | 1,750,000 | - | 1,750,000 | - | 141 | |||||||||||||
Energem Resources Inc. (1) | 8,002,500 | - | - | 8,002,500 | - | 9,394 | |||||||||||||
Energem Resources Inc., warrants, expire 2008 (1) | 1,200,000 | - | - | 1,200,000 | - | 1 | |||||||||||||
Kiryung Electronics Co., Ltd. | 1,780,000 | - | - | 1,780,000 | - | 9,215 | |||||||||||||
Interflex Co., Ltd. | 799,000 | - | - | 799,000 | 66 | 6,735 | |||||||||||||
FirstAfrica Oil PLC (1) | 96,515,000 | - | - | 96,515,000 | - | 6,710 | |||||||||||||
TICON Property Fund | - | 24,700,000 | - | 24,700,000 | 114 | 6,422 | |||||||||||||
Phoenix PDE Co., Ltd. | 1,500,000 | - | - | 1,500,000 | 124 | 6,392 | |||||||||||||
Silicon Graphics, Inc. (1) | 14,000,000 | - | - | 14,000,000 | - | 6,118 | |||||||||||||
Ultraframe PLC (1) | 6,330,000 | - | - | 6,330,000 | - | 4,263 | |||||||||||||
Vision-Sciences, Inc. (1) | 1,884,500 | - | - | 1,884,500 | - | 3,298 | |||||||||||||
LTG Technologies PLC (1) | 17,785,714 | - | - | 17,785,714 | - | 2,473 | |||||||||||||
Infoteria Corp. (1) (2) | 2,672 | - | 95 | 2,577 | - | 876 | |||||||||||||
ZOOTS (1) (2) | 25,173 | - | - | 25,173 | - | 234 | |||||||||||||
Allion Healthcare, Inc. (1) (5) | 864,221 | 214,100 | 278,321 | 800,000 | - | - | |||||||||||||
Atheros Communications, Inc. (5) | 3,180,000 | - | 3,180,000 | - | - | - | |||||||||||||
Blue Nile, Inc. (1) (5) | 400,000 | 585,375 | 125,000 | 860,375 | - | - | |||||||||||||
Brooks Automation, Inc. (1) (5) | 2,725,000 | - | - | 2,725,000 | - | - | |||||||||||||
Capital Lease Funding, Inc. (5) | 1,630,000 | 165,000 | 795,000 | 1,000,000 | 559 | - | |||||||||||||
Centennial Bank Holdings, Inc. (1) (2) (5) | 2,700,000 | - | - | 2,700,000 | - | - | |||||||||||||
Conexant Systems, Inc. (5) | 24,000,000 | - | 24,000,000 | - | - | - | |||||||||||||
Delta Petroleum Corp. (1) (5) | 3,217,500 | - | 750,000 | 2,467,500 | - | - | |||||||||||||
Expro International Group PLC (5) | 4,600,000 | - | 1,424,548 | 3,175,452 | 276 | - | |||||||||||||
Hanil Cement Co., Ltd. (5) | 491,700 | - | 200,000 | 291,700 | 325 | - | |||||||||||||
Horizon Health Corp. (1) (5) | - | 968,900 | 356,069 | 612,831 | - | - | |||||||||||||
iVillage Inc. (5) | 4,690,000 | - | 4,690,000 | - | - | - | |||||||||||||
NutriSystem, Inc. (1) (5) | 1,706,800 | - | 623,000 | 1,083,800 | - | - | |||||||||||||
Paddy Power PLC (5) | 2,521,700 | - | 2,521,700 | - | - | - | |||||||||||||
Quicksilver Resources Inc. (1) (5) | 4,099,150 | - | 700,000 | 3,399,150 | - | - | |||||||||||||
Sanctuary Group PLC (1) (5) | 23,546,700 | 14,295,000 | 23,428,967 | 14,412,733 | - | - | |||||||||||||
Tetra Tech, Inc. (1) (5) | 3,162,500 | - | 1,243,500 | 1,919,000 | - | - | |||||||||||||
Toho Pharmaceutical Co., Ltd. (5) | 2,615,000 | - | - | 2,615,000 | 208 | - | |||||||||||||
UrAsia Energy Ltd. (1) (5) | - | 22,000,000 | - | 22,000,000 | - | - | |||||||||||||
Vail Resorts, Inc. (5) | 2,050,000 | - | 2,050,000 | - | - | - | |||||||||||||
$ | 34,881 | $ | 4,122,062 |
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single item. | ||||||||||
(1) Security did not produce income during the last 12 months. | ||||||||||
(2) Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities, including those in "Other securities" in the summary investment portfolio, was $958,851,000, which represented 5.24% of the net assets of the fund. | ||||||||||
(3) Valued under fair value procedures adopted by authority of the board of directors. | ||||||||||
(4) This security, or a portion of this security, has been segregated to cover funding requirements on investment transactions settling in the future. | ||||||||||
(5) Unaffiliated issuer at 3/31/2006. | ||||||||||
ADR = American Depositary Receipts | ||||||||||
GDR = Global Depositary Receipts | ||||||||||
SDR = Swedish Depositary Receipts | ||||||||||
See Notes to Financial Statements |
Financial statements | |||||||
Statement of assets and liabilities at March 31, 2006 | unaudited | ||||||
(dollars and shares in thousands, except per-share amounts) | |||||||
Assets: | |||||||
Investment securities at market: | |||||||
Unaffiliated issuers (cost: $10,350,788) | $ | 14,132,484 | |||||
Affiliated issuers (cost: $3,073,282) | 4,122,062 | $ | 18,254,546 | ||||
Cash denominated in non-U.S. currencies | |||||||
(cost: $16,932) | 17,126 | ||||||
Cash | 417 | ||||||
Receivables for: | |||||||
Sales of investments | 116,822 | ||||||
Sales of fund's shares | 47,952 | ||||||
Dividends and interest | 31,406 | 196,180 | |||||
18,468,269 | |||||||
Liabilities: | |||||||
Payables for: | |||||||
Purchases of investments | 124,638 | ||||||
Repurchases of fund's shares | 13,344 | ||||||
Investment advisory services | 8,663 | ||||||
Services provided by affiliates | 6,029 | ||||||
Deferred directors' compensation | 1,159 | ||||||
Other fees and expenses | 12,146 | 165,979 | |||||
Net assets at March 31, 2006 | $ | 18,302,290 | |||||
Net assets consist of: | |||||||
Capital paid in on shares of capital stock | $ | 12,882,881 | |||||
Distributions in excess of net investment income | (177,543 | ) | |||||
Undistributed net realized gain | 776,976 | ||||||
Net unrealized appreciation | 4,819,976 | ||||||
Net assets at March 31, 2006 | $ | 18,302,290 |
Total authorized capital stock - 800,000 shares, $0.01 par value (464,226 total shares outstanding) | ||||||||||
Net assets | Shares outstanding | Net asset value per share* | ||||||||
Class A | $ | 15,289,481 | 386,461 | $ | 39.56 | |||||
Class B | 572,636 | 14,981 | 38.22 | |||||||
Class C | 641,000 | 16,856 | 38.03 | |||||||
Class F | 376,386 | 9,569 | 39.33 | |||||||
Class 529-A | 255,027 | 6,464 | 39.45 | |||||||
Class 529-B | 44,755 | 1,159 | 38.61 | |||||||
Class 529-C | 105,839 | 2,741 | 38.61 | |||||||
Class 529-E | 16,363 | 418 | 39.15 | |||||||
Class 529-F | 16,989 | 431 | 39.43 | |||||||
Class R-1 | 18,889 | 488 | 38.73 | |||||||
Class R-2 | 373,099 | 9,628 | 38.75 | |||||||
Class R-3 | 280,679 | 7,179 | 39.10 | |||||||
Class R-4 | 106,455 | 2,700 | 39.43 | |||||||
Class R-5 | 204,692 | 5,151 | 39.74 | |||||||
* Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Class A and 529-A, for which the maximum offering prices per share were $41.97 and $41.86, respectively. | ||||||||||
See Notes to Financial Statements |
Statement of operations for the six months ended March 31, 2006 | unaudited | ||||||
(dollars in thousands) | |||||||
Investment income: | |||||||
Income: | |||||||
Dividends (net of non-U.S. | |||||||
taxes of $8,501; also includes | |||||||
$34,881 from affiliates) | $ | 90,366 | |||||
Interest | 27,581 | $ | 117,947 | ||||
Fees and expenses:(*) | |||||||
Investment advisory services | 51,275 | ||||||
Distribution services | 24,793 | ||||||
Transfer agent services | 8,640 | ||||||
Administrative services | 2,524 | ||||||
Reports to shareholders | 575 | ||||||
Registration statement and prospectus | 386 | ||||||
Postage, stationery and supplies | 1,068 | ||||||
Directors' compensation | 261 | ||||||
Auditing and legal | 44 | ||||||
Custodian | 3,108 | ||||||
State and local taxes | 283 | ||||||
Other | 163 | ||||||
Total fees and expenses before reimbursements/waivers | 93,120 | ||||||
Less reimbursement/waiver of fees and expenses: | |||||||
Investment advisory services | 5,128 | ||||||
Administrative services | 315 | ||||||
Total fees and expenses after reimbursements/waivers | 87,677 | ||||||
Net investment income | 30,270 | ||||||
Net realized gain and unrealized | |||||||
appreciation on investments | |||||||
and non-U.S. currency: | |||||||
Net realized gain (loss) on: | |||||||
Investments (including $94,867 net gain from affiliates) | 931,621 | ||||||
Non-U.S. currency transactions | (1,698 | ) | 929,923 | ||||
Net unrealized appreciation on: | |||||||
Investments | 1,657,409 | ||||||
Non-U.S. currency translations | 687 | 1,658,096 | |||||
Net realized gain and | |||||||
unrealized appreciation | |||||||
on investments and non-U.S. currency | 2,588,019 | ||||||
Net increase in net assets resulting | |||||||
from operations | $ | 2,618,289 | |||||
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements. | |||||||
See Notes to Financial Statements | |||||||
Statements of changes in net assets | (dollars in thousands) | ||||||
Six months ended March 31, | Year ended September 30, | ||||||
2006* | 2005 | ||||||
Operations: | |||||||
Net investment income | $ | 30,270 | $ | 88,739 | |||
Net realized gain on investments and | |||||||
non-U.S. currency transactions | 929,923 | 1,240,219 | |||||
Net unrealized appreciation | |||||||
on investments and non-U.S. currency translations | 1,658,096 | 1,634,043 | |||||
Net increase in net assets | |||||||
resulting from operations | 2,618,289 | 2,963,001 | |||||
Dividends and distributions paid to | |||||||
shareholders: | |||||||
Dividends from net investment income and non-U.S. currency gains | (171,202 | ) | (119,377 | ) | |||
Distributions from net realized gain | |||||||
on investments | (293,823 | ) | - | ||||
Total dividends and distributions paid | |||||||
to shareholders | (465,025 | ) | (119,377 | ) | |||
Capital share transactions | 1,457,825 | 823,855 | |||||
Total increase in net assets | 3,611,089 | 3,667,479 | |||||
Net assets: | |||||||
Beginning of period | 14,691,201 | 11,023,722 | |||||
End of period (including | |||||||
distributions in excess of | |||||||
net investment income: $177,543 and $36,611, | |||||||
respectively) | $ | 18,302,290 | $ | 14,691,201 | |||
*Unaudited. | |||||||
See Notes to Financial Statements |
Notes to financial statements
unaudited
1. | Organization and significant accounting policies |
Organization - SMALLCAP World Fund, Inc. (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks long-term growth of capital through investments in smaller companies in the U.S. and around the world.
The fund offers 14 share classes consisting of four retail share classes, five CollegeAmerica® savings plan share classes and five retirement plan share classes. The CollegeAmerica savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) can be utilized to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The fund’s share classes are described below:
Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
Class A and 529-A | Up to 5.75% | None (except 1% for certain redemptions within one year of purchase without an initial sales charge) | None |
Class B and 529-B | None | Declines from 5% to 0% for redemptions within six years of purchase | Class B and 529-B convert to Class A and 529-A, respectively, after eight years |
Class C | None | 1% for redemptions within one year of purchase | Class C converts to Class F after 10 years |
Class 529-C | None | 1% for redemptions within one year of purchase | None |
Class 529-E | None | None | None |
Class F and 529-F | None | None | None |
Class R-1, R-2, R-3, R-4 and R-5 | None | None | None |
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
Significant accounting policies - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:
Security valuation - Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Forward currency contracts are valued at the mean of representative quoted bid and asked prices. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith under procedures adopted by authority of the fund's board of directors. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. If events occur that materially affect the value of securities (particularly non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities are fair valued.
Security transactions and related investment income - Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations - Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.
Dividends and distributions to shareholders - Dividends and distributions paid to shareholders are recorded on the ex-dividend date.
Non-U.S. currency translation - Assets and liabilities, including investment securities, denominated in non-U.S. currencies are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. In the accompanying financial statements, the effects of changes in non-U.S. exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in non-U.S. currencies are disclosed separately.
Forward currency contracts - The fund may enter into forward currency contracts, which represent agreements to exchange non-U.S. currencies on specific future dates at predetermined rates. The fund enters into these contracts to manage its exposure to changes in non-U.S. exchange rates arising from investments denominated in non-U.S. currencies. 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 non-U.S. exchange rates. Due to these risks, the fund could incur losses up to the entire contract amount, which may exceed the net unrealized value shown on the accompanying financial statements. On a daily basis, the fund values forward currency contracts based on the applicable exchange rates and records unrealized gains or losses. The fund records realized gains or losses at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency.
2. | Non-U.S. investments |
Investment risk - The risks of investing in securities of non-U.S. issuers may include, but are not limited to, investment and repatriation restrictions; revaluation of currencies; adverse political, social and economic developments; government involvement in the private sector; limited and less reliable investor information; lack of liquidity; certain local tax law considerations; and limited regulation of the securities markets.
Taxation - Dividend and interest income is recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities. For the six months ended March 31, 2006, non-U.S. taxes paid on realized gains were $1,834,000. As of March 31, 2006, non-U.S. taxes provided on unrealized gains were $11,276,000.
3. Federal income taxation and distributions
The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made.
Distributions - Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in non-U.S. securities; deferred expenses; cost of investments sold; non-U.S. taxes on capital gains; and income on certain investments. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. As of March 31, 2006, the cost of investment securities for federal income tax purposes was $13,587,627,000.
As of March 31, 2006, the components of distributable earnings on a tax basis were as follows (dollars in thousands):
Distributions in excess of net investment income and non-U.S. currency losses | $ (14,099) |
Undistributed short-term capital gains | 207,990 |
Undistributed long-term capital gains | 569,983 |
Gross unrealized appreciation on investment securities | 5,424,722 |
Gross unrealized depreciation on investment securities | (757,803) |
Net unrealized appreciation on investment securities | 4,666,919 |
Distributions in excess of net investment income and non-U.S. currency losses above include non-U.S. currency losses of $3,907,000, that were realized during the period November 1, 2004, through September 30, 2005. During the six months ended March 31, 2006, the fund realized, on a tax basis, a net capital gain of $929,535,000.
The tax character of distributions paid to shareholders was as follows (dollars in thousands):
Six months ended March 31, 2006 | Year ended September 30, 2005 | ||||||||||||||||||
Ordinary income | Long-term capital gains | Total distributions paid | Ordinary income | Long-term capital gains | Total distributions paid | ||||||||||||||
Share class | |||||||||||||||||||
Class A | $ | 149,399 | $ | 247,784 | $ | 397,183 | $ | 109,685 | - | $ | 109,685 | ||||||||
Class B | 3,425 | 9,479 | 12,904 | 1,283 | - | 1,283 | |||||||||||||
Class C | 3,828 | 9,871 | 13,699 | 1,395 | - | 1,395 | |||||||||||||
Class F | 3,420 | 5,484 | 8,904 | 1,691 | - | 1,691 | |||||||||||||
Class 529-A | 2,333 | 3,813 | 6,146 | 1,252 | - | 1,252 | |||||||||||||
Class 529-B | 238 | 714 | 952 | 73 | - | 73 | |||||||||||||
Class 529-C | 599 | 1,653 | 2,252 | 159 | - | 159 | |||||||||||||
Class 529-E | 129 | 249 | 378 | 57 | - | 57 | |||||||||||||
Class 529-F | 167 | 268 | 435 | 83 | - | 83 | |||||||||||||
Class R-1 | 115 | 273 | 388 | 34 | - | 34 | |||||||||||||
Class R-2 | 2,333 | 5,629 | 7,962 | 841 | - | 841 | |||||||||||||
Class R-3 | 2,104 | 4,041 | 6,145 | 925 | - | 925 | |||||||||||||
Class R-4 | 961 | 1,515 | 2,476 | 307 | - | 307 | |||||||||||||
Class R-5 | 2,151 | 3,050 | 5,201 | 1,592 | - | 1,592 | |||||||||||||
Total | $ | 171,202 | $ | 293,823 | $ | 465,025 | $ | 119,377 | - | $ | 119,377 |
4. Fees and transactions with related parties
Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Service Company ("AFS"), the fund’s transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal underwriter of the fund’s shares.
Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.800% on the first billion of daily net assets and decreasing to 0.595% on such assets in excess of $27 billion. CRMC is currently waiving 10% of investment advisory services fees. During the six months ended March 31, 2006, total investment advisory services fees waived by CRMC were $5,128,000. As a result, the fee shown on the accompanying financial statements of $51,275,000, which was equivalent to an annualized rate of 0.647%, was reduced to $46,147,000, or 0.582% of average daily net assets.
Class-specific fees and expenses - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:
Distribution services - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the board of directors approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted below/on the following page. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
For Class A and 529-A, the board of directors has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of March 31, 2006, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A.
Share class | Currently approved limits | Plan limits |
Class A | 0.30% | 0.30% |
Class 529-A | 0.30 | 0.50 |
Class B and 529-B | 1.00 | 1.00 |
Class C, 529-C and R-1 | 1.00 | 1.00 |
Class R-2 | 0.75 | 1.00 |
Class 529-E and R-3 | 0.50 | 0.75 |
Class F, 529-F and R-4 | 0.25 | 0.50 |
Transfer agent services - The fund has a transfer agent agreement with AFS for Class A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.
Administrative services - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Class A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. For the six months ended March 31, 2006, the total administrative services fees paid by CRMC were $2,000, $304,000, and $9,000 for Class R-1, R-2, and R-3, respectively. Administrative services fees are presented gross of any payments made by CRMC. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the CollegeAmerica plan. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.
Expenses under the agreements described above/on the previous page for the six months ended March 31, 2006, were as follows (dollars in thousands):
Share class | Distribution services | Transfer agent services | Administrative services | ||
CRMC administrative services | Transfer agent services | Commonwealth of Virginia administrative services | |||
Class A | $16,655 | $8,298 | Not applicable | Not applicable | Not applicable |
Class B | 2,473 | 342 | Not applicable | Not applicable | Not applicable |
Class C | 2,594 | Included in administrative services | $390 | $95 | Not applicable |
Class F | 368 | 145 | 45 | Not applicable | |
Class 529-A | 188 | 109 | 25 | $103 | |
Class 529-B | 189 | 20 | 11 | 19 | |
Class 529-C | 435 | 46 | 22 | 44 | |
Class 529-E | 33 | 7 | 2 | 7 | |
Class 529-F | - | 7 | 2 | 7 | |
Class R-1 | 74 | 10 | 7 | Not applicable | |
Class R-2 | 1,127 | 224 | 705 | Not applicable | |
Class R-3 | 553 | 165 | 157 | Not applicable | |
Class R-4 | 104 | 61 | 4 | Not applicable | |
Class R-5 | Not applicable | 83 | 2 | Not applicable | |
Total | $24,793 | $8,640 | $1,267 | $1,077 | $180 |
Deferred directors’compensation - Since the adoption of the deferred compensation plan in 1993, directors who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation of $261,000, shown on the accompanying financial statements, includes $15,000 in current fees (either paid in cash or deferred) and a net increase of $246,000 in the value of the deferred amounts.
Affiliated officers and directors- Officers and certain directors of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or directors received any compensation directly from the fund.
5. Capital share transactions
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Share class | Sales(*) | Reinvestments of dividends and distributions | Repurchases(*) | Net increase | |||||||||||||||||||||
Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||
Six months ended March 31, 2006 | |||||||||||||||||||||||||
Class A | $ | 1,389,057 | 38,063 | $ | 381,588 | 10,807 | $ | (838,502 | ) | (23,209 | ) | $ | 932,143 | 25,661 | |||||||||||
Class B | 62,137 | 1,759 | 12,553 | 367 | (26,442 | ) | (755 | ) | 48,248 | 1,371 | |||||||||||||||
Class C | 135,012 | 3,832 | 13,251 | 390 | (36,140 | ) | (1,037 | ) | 112,123 | 3,185 | |||||||||||||||
Class F | 104,847 | 2,884 | 7,921 | 226 | (30,539 | ) | (847 | ) | 82,229 | 2,263 | |||||||||||||||
Class 529-A | 47,299 | 1,303 | 6,144 | 174 | (5,366 | ) | (147 | ) | 48,077 | 1,330 | |||||||||||||||
Class 529-B | 5,260 | 148 | 952 | 27 | (622 | ) | (17 | ) | 5,590 | 158 | |||||||||||||||
Class 529-C | 17,950 | 505 | 2,251 | 65 | (3,293 | ) | (93 | ) | 16,908 | 477 | |||||||||||||||
Class 529-E | 3,133 | 87 | 378 | 11 | (515 | ) | (14 | ) | 2,996 | 84 | |||||||||||||||
Class 529-F | 3,167 | 88 | 435 | 12 | (1,015 | ) | (28 | ) | 2,587 | 72 | |||||||||||||||
Class R-1 | 5,913 | 167 | 387 | 11 | (1,857 | ) | (53 | ) | 4,443 | 125 | |||||||||||||||
Class R-2 | 97,832 | 2,736 | 7,955 | 229 | (32,620 | ) | (915 | ) | 73,167 | 2,050 | |||||||||||||||
Class R-3 | 87,158 | 2,411 | 6,115 | 175 | (30,880 | ) | (862 | ) | 62,393 | 1,724 | |||||||||||||||
Class R-4 | 35,255 | 974 | 2,476 | 71 | (9,698 | ) | (264 | ) | 28,033 | 781 | |||||||||||||||
Class R-5 | 41,999 | 1,155 | 4,905 | 138 | (8,016 | ) | (220 | ) | 38,888 | 1,073 | |||||||||||||||
Total net increase | |||||||||||||||||||||||||
(decrease) | $ | 2,036,019 | 56,112 | $ | 447,311 | 12,703 | $ | (1,025,505 | ) | (28,461 | ) | $ | 1,457,825 | 40,354 | |||||||||||
Year ended September 30, 2005 | |||||||||||||||||||||||||
Class A | $ | 1,764,979 | 56,402 | $ | 104,783 | 3,514 | $ | (1,571,969 | ) | (50,360 | ) | $ | 297,793 | 9,556 | |||||||||||
Class B | 82,691 | 2,739 | 1,249 | 43 | (42,411 | ) | (1,396 | ) | 41,529 | 1,386 | |||||||||||||||
Class C | 157,635 | 5,220 | 1,347 | 47 | (54,448 | ) | (1,800 | ) | 104,534 | 3,467 | |||||||||||||||
Class F | 123,722 | 3,962 | 1,525 | 51 | (41,375 | ) | (1,331 | ) | 83,872 | 2,682 | |||||||||||||||
Class 529-A | 56,362 | 1,807 | 1,252 | 42 | (6,921 | ) | (220 | ) | 50,693 | 1,629 | |||||||||||||||
Class 529-B | 7,446 | 245 | 73 | 2 | (1,115 | ) | (36 | ) | 6,404 | 211 | |||||||||||||||
Class 529-C | 23,292 | 760 | 159 | 6 | (3,018 | ) | (98 | ) | 20,433 | 668 | |||||||||||||||
Class 529-E | 3,861 | 125 | 57 | 2 | (311 | ) | (10 | ) | 3,607 | 117 | |||||||||||||||
Class 529-F | 3,591 | 116 | 82 | 3 | (547 | ) | (17 | ) | 3,126 | 102 | |||||||||||||||
Class R-1 | 6,890 | 224 | 34 | 1 | (1,901 | ) | (62 | ) | 5,023 | 163 | |||||||||||||||
Class R-2 | 127,485 | 4,134 | 841 | 29 | (42,526 | ) | (1,375 | ) | 85,800 | 2,788 | |||||||||||||||
Class R-3 | 101,847 | 3,299 | 925 | 31 | (29,495 | ) | (950 | ) | 73,277 | 2,380 | |||||||||||||||
Class R-4 | 46,825 | 1,502 | 307 | 10 | (10,087 | ) | (321 | ) | 37,045 | 1,191 | |||||||||||||||
Class R-5 | 25,084 | 791 | 1,405 | 47 | (15,770 | ) | (506 | ) | 10,719 | 332 | |||||||||||||||
Total net increase | |||||||||||||||||||||||||
(decrease) | $ | 2,531,710 | 81,326 | $ | 114,039 | 3,828 | $ | (1,821,894 | ) | (58,482 | ) | $ | 823,855 | 26,672 | |||||||||||
(*) Includes exchanges between share classes of the fund. |
6. Investment transactions
The fund made purchases and sales of investment securities, excluding short-term securities, of $3,776,819,000 and $3,138,209,000, respectively, during the six months ended March 31, 2006.
Financial highlights(1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from investment operations(2) | Dividends and distributions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss | ) | Net gains (losses) on securities (both realized and unrealized | ) | Total from investment operations | Dividends (from net investment income | ) | Distributions (from capital gains | ) | Total dividends and distributions | Net asset value, end of period | Total return(3 | ) | Net assets, end of period (in millions | ) | Ratio of expenses to average net assets before reimbursements/ waivers | Ratio of expenses to average net assets after reimbursements/ waivers | (4 | ) | Ratio of net income (loss) to average net assets | ||||||||||||||||||||||||||||||||||||||
Class A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | $ | 34.77 | $ | .08 | $ | 5.80 | $ | 5.88 | $ | (.41 | ) | $ | (.68 | ) | $ | (1.09 | ) | $ | 39.56 | 17.29 | % | $ | 15,289 | 1.09 | % | (6 | ) | 1.03 | % | (6 | ) | .46 | % | (6 | ) | |||||||||||||||||||||
Year ended 9/30/2005 | 27.82 | .24 | 7.02 | 7.26 | (.31 | ) | - | (.31 | ) | 34.77 | 26.28 | 12,544 | 1.09 | 1.04 | .76 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.22 | .02 | 4.61 | 4.63 | (.03 | ) | - | (.03 | ) | 27.82 | 19.95 | 9,771 | 1.12 | 1.12 | .06 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.53 | (.01 | ) | 5.70 | 5.69 | - | - | - | 23.22 | 32.46 | 7,833 | 1.19 | 1.19 | (.07 | ) | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2002 | 18.62 | (.07 | ) | (.98 | ) | (1.05 | ) | (.04 | ) | - | (.04 | ) | 17.53 | (5.69 | ) | 6,283 | 1.17 | 1.17 | (.32 | ) | ||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2001 | 40.24 | - | (7 | ) | (16.33 | ) | (16.33 | ) | - | (5.29 | ) | (5.29 | ) | 18.62 | (44.95 | ) | 7,265 | 1.09 | 1.09 | (.01 | ) | |||||||||||||||||||||||||||||||||||||
Class B: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 33.59 | (.05 | ) | 5.61 | 5.56 | (.25 | ) | (.68 | ) | (.93 | ) | 38.22 | 16.87 | 573 | 1.86 | (6 | ) | 1.79 | (6 | ) | (.31 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 26.90 | - | (7 | ) | 6.79 | 6.79 | (.10 | ) | - | (.10 | ) | 33.59 | 25.31 | 457 | 1.86 | 1.81 | (.01 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 22.60 | (.18 | ) | 4.48 | 4.30 | - | - | - | 26.90 | 19.03 | 329 | 1.88 | 1.88 | (.69 | ) | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.20 | (.16 | ) | 5.56 | 5.40 | - | - | - | 22.60 | 31.40 | 201 | 1.97 | 1.97 | (.85 | ) | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2002 | 18.38 | (.23 | ) | (.95 | ) | (1.18 | ) | - | - | - | 17.20 | (6.42 | ) | 118 | 1.95 | 1.95 | (1.09 | ) | ||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2001 | 40.08 | (.21 | ) | (16.20 | ) | (16.41 | ) | - | (5.29 | ) | (5.29 | ) | 18.38 | (45.38 | ) | 86 | 1.89 | 1.89 | (.81 | ) | ||||||||||||||||||||||||||||||||||||||
Class C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 33.45 | (.06 | ) | 5.58 | 5.52 | (.26 | ) | (.68 | ) | (.94 | ) | 38.03 | 16.85 | 641 | 1.90 | (6 | ) | 1.84 | (6 | ) | (.35 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 26.82 | (.02 | ) | 6.78 | 6.76 | (.13 | ) | - | (.13 | ) | 33.45 | 25.27 | 457 | 1.90 | 1.85 | (.05 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 22.54 | (.19 | ) | 4.47 | 4.28 | - | - | - | 26.82 | 18.99 | 274 | 1.92 | 1.91 | (.71 | ) | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.15 | (.16 | ) | 5.55 | 5.39 | - | - | - | 22.54 | 31.43 | 124 | 1.97 | 1.97 | (.85 | ) | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2002 | 18.33 | (.22 | ) | (.95 | ) | (1.17 | ) | (.01 | ) | - | (.01 | ) | 17.15 | (6.42 | ) | 56 | 1.96 | 1.96 | (1.08 | ) | ||||||||||||||||||||||||||||||||||||||
Period from 3/15/2001 to 9/30/2001 | 23.06 | (.16 | ) | (4.57 | ) | (4.73 | ) | - | - | - | 18.33 | (20.51 | ) | 17 | 2.11 | (6 | ) | 2.11 | (6 | ) | (1.11 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||
Class F: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 34.58 | .09 | 5.76 | 5.85 | (.42 | ) | (.68 | ) | (1.10 | ) | 39.33 | 17.31 | 376 | 1.09 | (6 | ) | 1.02 | (6 | ) | .48 | (6 | ) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.70 | .23 | 6.98 | 7.21 | (.33 | ) | - | (.33 | ) | 34.58 | 26.23 | 253 | 1.12 | 1.07 | .72 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.16 | .02 | 4.58 | 4.60 | (.06 | ) | - | (.06 | ) | 27.70 | 19.90 | 128 | 1.15 | 1.14 | .06 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.48 | (.01 | ) | 5.69 | 5.68 | - | - | - | 23.16 | 32.49 | 57 | 1.18 | 1.18 | (.06 | ) | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2002 | 18.60 | (.07 | ) | (.98 | ) | (1.05 | ) | (.07 | ) | - | (.07 | ) | 17.48 | (5.73 | ) | 24 | 1.20 | 1.20 | (.32 | ) | ||||||||||||||||||||||||||||||||||||||
Period from 3/15/2001 to 9/30/2001 | 23.27 | (.03 | ) | (4.64 | ) | (4.67 | ) | - | - | - | 18.60 | (20.07 | ) | 7 | 1.23 | (6 | ) | 1.23 | (6 | ) | (.21 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||
Class 529-A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 34.68 | .08 | 5.79 | 5.87 | (.42 | ) | (.68 | ) | (1.10 | ) | 39.45 | 17.30 | 255 | 1.13 | (6 | ) | 1.07 | (6 | ) | .43 | (6 | ) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.79 | .22 | 7.00 | 7.22 | (.33 | ) | - | (.33 | ) | 34.68 | 26.19 | 178 | 1.14 | 1.08 | .71 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.24 | .02 | 4.60 | 4.62 | (.07 | ) | - | (.07 | ) | 27.79 | 19.90 | 97 | 1.14 | 1.14 | .06 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.53 | .01 | 5.70 | 5.71 | - | - | - | 23.24 | 32.57 | 42 | 1.11 | 1.11 | .03 | |||||||||||||||||||||||||||||||||||||||||||||
Period from 2/19/2002 to 9/30/2002 | 21.68 | (.03 | ) | (4.12 | ) | (4.15 | ) | - | - | - | 17.53 | (19.14 | ) | 15 | 1.18 | (6 | ) | 1.18 | (6 | ) | (.25 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||
Class 529-B: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 33.93 | (.08 | ) | 5.67 | 5.59 | (.23 | ) | (.68 | ) | (.91 | ) | 38.61 | 16.78 | 45 | 1.98 | (6 | ) | 1.92 | (6 | ) | (.43 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.20 | (.05 | ) | 6.87 | 6.82 | (.09 | ) | - | (.09 | ) | 33.93 | 25.11 | 34 | 2.02 | 1.96 | (.17 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 22.88 | (.23 | ) | 4.55 | 4.32 | - | - | - | 27.20 | 18.88 | 22 | 2.04 | 2.04 | (.84 | ) | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.43 | (.19 | ) | 5.64 | 5.45 | - | - | - | 22.88 | 31.27 | 10 | 2.09 | 2.09 | (.95 | ) | |||||||||||||||||||||||||||||||||||||||||||
Period from 2/20/2002 to 9/30/2002 | 21.82 | (.14 | ) | (4.25 | ) | (4.39 | ) | - | - | - | 17.43 | (20.12 | ) | 3 | 2.08 | (6 | ) | 2.08 | (6 | ) | (1.15 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||
Class 529-C: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 33.94 | (.07 | ) | 5.67 | 5.60 | (.25 | ) | (.68 | ) | (.93 | ) | 38.61 | 16.81 | 106 | 1.97 | (6 | ) | 1.91 | (6 | ) | (.41 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.21 | (.05 | ) | 6.87 | 6.82 | (.09 | ) | - | (.09 | ) | 33.94 | 25.13 | 77 | 2.00 | 1.95 | (.16 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 22.89 | (.22 | ) | 4.54 | 4.32 | - | - | - | 27.21 | 18.87 | 43 | 2.03 | 2.03 | (.83 | ) | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.44 | (.18 | ) | 5.63 | 5.45 | - | - | - | 22.89 | 31.25 | 20 | 2.07 | 2.07 | (.94 | ) | |||||||||||||||||||||||||||||||||||||||||||
Period from 2/20/2002 to 9/30/2002 | 21.82 | (.14 | ) | (4.24 | ) | (4.38 | ) | - | - | - | 17.44 | (20.07 | ) | 7 | 2.05 | (6 | ) | 2.05 | (6 | ) | (1.12 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||
Class 529-E: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 34.42 | .02 | 5.74 | 5.76 | (.35 | ) | (.68 | ) | (1.03 | ) | 39.15 | 17.10 | 16 | 1.45 | (6 | ) | 1.39 | (6 | ) | .11 | (6 | ) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.58 | .12 | 6.96 | 7.08 | (.24 | ) | - | (.24 | ) | 34.42 | 25.81 | 12 | 1.47 | 1.42 | .37 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.09 | (.08 | ) | 4.59 | 4.51 | (.02 | ) | - | (.02 | ) | 27.58 | 19.52 | 6 | 1.50 | 1.49 | (.29 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.50 | (.07 | ) | 5.66 | 5.59 | - | - | - | 23.09 | 31.94 | 3 | 1.53 | 1.53 | (.38 | ) | |||||||||||||||||||||||||||||||||||||||||||
Period from 3/15/2002 to 9/30/2002 | 23.21 | (.06 | ) | (5.65 | ) | (5.71 | ) | - | - | - | 17.50 | (24.60 | ) | 1 | 1.51 | (6 | ) | 1.51 | (6 | ) | (.60 | ) | (6 | ) | ||||||||||||||||||||||||||||||||||
Class 529-F: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | $ | 34.64 | $ | .11 | $ | 5.79 | $ | 5.90 | $ | (.43 | ) | $ | (.68 | ) | $ | (1.11 | ) | $ | 39.43 | 17.40 | % | $ | 17 | .95 | % | (6 | ) | .89 | % | (6 | ) | .61 | % | (6 | ) | |||||||||||||||||||||
Year ended 9/30/2005 | 27.72 | .23 | 6.99 | 7.22 | (.30 | ) | - | (.30 | ) | 34.64 | 26.22 | 12 | 1.11 | 1.06 | .74 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.20 | (.01 | ) | 4.60 | 4.59 | (.07 | ) | - | (.07 | ) | 27.72 | 19.81 | 7 | 1.25 | 1.24 | (.04 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.53 | (.02 | ) | 5.69 | 5.67 | - | - | - | 23.20 | 32.34 | 3 | 1.27 | 1.27 | (.10 | ) | |||||||||||||||||||||||||||||||||||||||||||
Period from 9/17/2002 to 9/30/2002 | 18.24 | - | (7 | ) | (.71 | ) | (.71 | ) | - | - | - | 17.53 | (3.89 | ) | - | (8 | ) | .04 | .04 | .01 | ||||||||||||||||||||||||||||||||||||||
Class R-1: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 34.07 | (.06 | ) | 5.69 | 5.63 | (.29 | ) | (.68 | ) | (.97 | ) | 38.73 | 16.85 | 19 | 1.93 | (6 | ) | 1.84 | (6 | ) | (.34 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.34 | (.01 | ) | 6.90 | 6.89 | (.16 | ) | - | (.16 | ) | 34.07 | 25.27 | 12 | 1.97 | 1.85 | (.05 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.00 | (.19 | ) | 4.55 | 4.36 | (.02 | ) | - | (.02 | ) | 27.34 | 18.98 | 6 | 2.01 | 1.91 | (.71 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.49 | (.16 | ) | 5.67 | 5.51 | - | - | - | 23.00 | 31.50 | 2 | 2.43 | 1.93 | (.78 | ) | |||||||||||||||||||||||||||||||||||||||||||
Period from 6/19/2002 to 9/30/2002 | 21.60 | (.04 | ) | (4.07 | ) | (4.11 | ) | - | - | - | 17.49 | (19.03 | ) | - | (8 | ) | 7.56 | .54 | (.22 | ) | ||||||||||||||||||||||||||||||||||||||
Class R-2: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 34.09 | (.06 | ) | 5.68 | 5.62 | (.28 | ) | (.68 | ) | (.96 | ) | 38.75 | 16.82 | 373 | 2.08 | (6 | ) | 1.81 | (6 | ) | (.32 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.36 | (.01 | ) | 6.90 | 6.89 | (.16 | ) | - | (.16 | ) | 34.09 | 25.28 | 258 | 2.17 | 1.82 | (.03 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.00 | (.18 | ) | 4.56 | 4.38 | (.02 | ) | - | (.02 | ) | 27.36 | 19.05 | 131 | 2.30 | 1.88 | (.67 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.49 | (.15 | ) | 5.66 | 5.51 | - | - | - | 23.00 | 31.50 | 46 | 2.59 | 1.89 | (.75 | ) | |||||||||||||||||||||||||||||||||||||||||||
Period from 5/31/2002 to 9/30/2002 | 22.62 | (.05 | ) | (5.08 | ) | (5.13 | ) | - | - | - | 17.49 | (22.68 | ) | 2 | .85 | .63 | (.29 | ) | ||||||||||||||||||||||||||||||||||||||||
Class R-3: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 34.39 | .01 | 5.73 | 5.74 | (.35 | ) | (.68 | ) | (1.03 | ) | 39.10 | 17.10 | 281 | 1.50 | (6 | ) | 1.43 | (6 | ) | .07 | (6 | ) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.58 | .11 | 6.96 | 7.07 | (.26 | ) | - | (.26 | ) | 34.39 | 25.75 | 188 | 1.51 | 1.44 | .36 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.12 | (.08 | ) | 4.59 | 4.51 | (.05 | ) | - | (.05 | ) | 27.58 | 19.52 | 85 | 1.55 | 1.49 | (.28 | ) | |||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.51 | (.07 | ) | 5.68 | 5.61 | - | - | - | 23.12 | 32.04 | 30 | 1.67 | 1.51 | (.37 | ) | |||||||||||||||||||||||||||||||||||||||||||
Period from 6/20/2002 to 9/30/2002 | 21.43 | (.02 | ) | (3.90 | ) | (3.92 | ) | - | - | - | 17.51 | (18.29 | ) | 2 | .52 | .42 | (.11 | ) | ||||||||||||||||||||||||||||||||||||||||
Class R-4: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 34.68 | .08 | 5.78 | 5.86 | (.43 | ) | (.68 | ) | (1.11 | ) | 39.43 | 17.28 | 106 | 1.12 | (6 | ) | 1.05 | (6 | ) | .45 | (6 | ) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.79 | .23 | 7.01 | 7.24 | (.35 | ) | - | (.35 | ) | 34.68 | 26.25 | 67 | 1.12 | 1.06 | .74 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.22 | .02 | 4.61 | 4.63 | (.06 | ) | - | (.06 | ) | 27.79 | 19.95 | 20 | 1.13 | 1.13 | .07 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.53 | - | (7 | ) | 5.69 | 5.69 | - | - | - | 23.22 | 32.46 | 10 | 1.17 | 1.16 | (.02 | ) | ||||||||||||||||||||||||||||||||||||||||||
Period from 7/24/2002 to 9/30/2002 | 18.55 | (.01 | ) | (1.01 | ) | (1.02 | ) | - | - | - | 17.53 | (5.50 | ) | - | (8 | ) | .70 | .21 | (.03 | ) | ||||||||||||||||||||||||||||||||||||||
Class R-5: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended 3/31/2006 | (5 | ) | 34.93 | .14 | 5.83 | 5.97 | (.48 | ) | (.68 | ) | (1.16 | ) | 39.74 | 17.49 | 205 | .82 | (6 | ) | .75 | (6 | ) | .75 | (6 | ) | ||||||||||||||||||||||||||||||||||
Year ended 9/30/2005 | 27.97 | .33 | 7.05 | 7.38 | (.42 | ) | - | (.42 | ) | 34.93 | 26.62 | 142 | .81 | .76 | 1.04 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2004 | 23.33 | .10 | 4.64 | 4.74 | (.10 | ) | - | (.10 | ) | 27.97 | 20.34 | 105 | .82 | .81 | .36 | |||||||||||||||||||||||||||||||||||||||||||
Year ended 9/30/2003 | 17.55 | .05 | 5.73 | 5.78 | - | - | - | 23.33 | 32.93 | 72 | .83 | .83 | .28 | |||||||||||||||||||||||||||||||||||||||||||||
Period from 5/15/2002 to 9/30/2002 | 23.36 | - | (7 | ) | (5.81 | ) | (5.81 | ) | - | - | - | 17.55 | (24.87 | ) | 53 | .31 | .31 | .01 |
Six months ended March 31, | Year ended September 30 | ||||||||||||||||||
2006(5 | ) | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||
Portfolio turnover rate for all classes of shares | 21 | % | 45 | % | 48 | % | 49 | % | 51 | % | 60 | % |
(1) Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year. |
(2) Based on average shares outstanding. |
(3) Total returns exclude all sales charges, including contingent deferred sales charges. |
(4) The ratios in this column reflect the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for |
investment advisory services for all share classes. In addition, during the start-up period for the retirement plan share classes (except Class R-5), CRMC agreed to |
pay a portion of the fees related to transfer agent services. |
(5) Unaudited. |
(6) Annualized. |
(7) Amount less than $.01. |
(8) Amount less than $1 million. |
See Notes to Financial Statements |
Expense example
unaudited
As a shareholder of the fund, you incur two types of costs: (1) transaction costs such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2005, through March 31, 2006).
Actual expenses:
The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and Class 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and Class 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above/on the previous page. In addition, your ending account value would also be lower by the amount of these fees.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning account value 10/1/2005 | Ending account value 3/31/2006 | Expenses paid during period* | Annualized expense ratio | ||||||||||
Class A -- actual return | $ | 1,000.00 | $ | 1,172.87 | $ | 5.58 | 1.03 | % | |||||
Class A -- assumed 5% return | 1,000.00 | 1,019.80 | 5.19 | 1.03 | |||||||||
Class B -- actual return | 1,000.00 | 1,168.65 | 9.68 | 1.79 | |||||||||
Class B -- assumed 5% return | 1,000.00 | 1,016.01 | 9.00 | 1.79 | |||||||||
Class C -- actual return | 1,000.00 | 1,168.47 | 9.95 | 1.84 | |||||||||
Class C -- assumed 5% return | 1,000.00 | 1,015.76 | 9.25 | 1.84 | |||||||||
Class F -- actual return | 1,000.00 | 1,173.10 | 5.53 | 1.02 | |||||||||
Class F -- assumed 5% return | 1,000.00 | 1,019.85 | 5.14 | 1.02 | |||||||||
Class 529-A -- actual return | 1,000.00 | 1,172.97 | 5.80 | 1.07 | |||||||||
Class 529-A -- assumed 5% return | 1,000.00 | 1,019.60 | 5.39 | 1.07 | |||||||||
Class 529-B -- actual return | 1,000.00 | 1,167.76 | 10.38 | 1.92 | |||||||||
Class 529-B -- assumed 5% return | 1,000.00 | 1,015.36 | 9.65 | 1.92 | |||||||||
Class 529-C -- actual return | 1,000.00 | 1,168.11 | 10.32 | 1.91 | |||||||||
Class 529-C -- assumed 5% return | 1,000.00 | 1,015.41 | 9.60 | 1.91 | |||||||||
Class 529-E -- actual return | 1,000.00 | 1,171.02 | 7.52 | 1.39 | |||||||||
Class 529-E -- assumed 5% return | 1,000.00 | 1,018.00 | 6.99 | 1.39 | |||||||||
Class 529-F -- actual return | 1,000.00 | 1,174.03 | 4.82 | .89 | |||||||||
Class 529-F -- assumed 5% return | 1,000.00 | 1,020.49 | 4.48 | .89 | |||||||||
Class R-1 -- actual return | 1,000.00 | 1,168.48 | 9.95 | 1.84 | |||||||||
Class R-1 -- assumed 5% return | 1,000.00 | 1,015.76 | 9.25 | 1.84 | |||||||||
Class R-2 -- actual return | 1,000.00 | 1,168.24 | 9.78 | 1.81 | |||||||||
Class R-2 -- assumed 5% return | 1,000.00 | 1,015.91 | 9.10 | 1.81 | |||||||||
Class R-3 -- actual return | 1,000.00 | 1,170.97 | 7.74 | 1.43 | |||||||||
Class R-3 -- assumed 5% return | 1,000.00 | 1,017.80 | 7.19 | 1.43 | |||||||||
Class R-4 -- actual return | 1,000.00 | 1,172.85 | 5.69 | 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 | 1,174.91 | 4.07 | .75 | |||||||||
Class R-5 -- assumed 5% return | 1,000.00 | 1,021.19 | 3.78 | .75 | |||||||||
* Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (182), and divided by 365 (to reflect the one-half year period). |
Offices
Offices of the fund and of the
investment adviser
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
135 South State College Boulevard
Brea, CA 92821-5823
Transfer agent for shareholder accounts
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 25065
Santa Ana, CA 92799-5065
P.O. Box 659522
San Antonio, TX 78265-9522
P.O. Box 6007
Indianapolis, IN 46206-6007
P.O. Box 2280
Norfolk, VA 23501-2280
Custodian of assets
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02110-2804
Counsel
Paul, Hastings, Janofsky & Walker LLP
55 Second Street
San Francisco, CA 94105-3441
Independent registered public
accounting firm
Deloitte & Touche LLP
695 Town Center Drive
Suite 1200
Costa Mesa, CA 92626-7188
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
There are several ways to invest in SMALLCAP World Fund. Class A shares are subject to a 5.75% maximum up-front sales charge that declines for accounts (and aggregated investments) of $25,000 or more and is eliminated for purchases of $1 million or more. Other share classes, which are generally not available for certain employer-sponsored retirement plans, have no up-front sales charges but are subject to additional annual expenses and fees. Annualized expenses for Class B shares were 0.76 percentage points higher than for Class A shares; Class B shares convert to Class A shares after eight years of ownership. If redeemed within six years, Class B shares may also be subject to a contingent deferred sales charge (“CDSC”) of up to 5% that declines over time. Class C shares were subject to annualized expenses 0.81 percentage points higher than those for Class A shares and a 1% CDSC if redeemed within the first year after purchase. Class C shares convert to Class F shares after 10 years. Class F shares, which are available only through certain fee-based programs offered by broker-dealer firms and registered investment advisers, had lower annualized expenses (by 0.01 percentage points) than did Class A shares, and an annual asset-based fee charged by the sponsoring firm. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class.
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s prospectus, which can be obtained from your financial adviser and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Guidelines” — which describes how we vote proxies relating to portfolio securities — is available free of charge on the U.S. Securities and Exchange Commission (SEC) website at sec.gov, on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the SEC for the 12 months ended June 30 by August 31. The report also is available on the SEC and American Funds websites.
A complete March 31, 2006, portfolio of SMALLCAP World Fund’s investments is available free
of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).
SMALLCAP World Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS.
This report is for the information of shareholders of SMALLCAP World Fund, but it may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after June 30, 2006, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
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The right choice for the long term®
What makes American Funds different?
For nearly 75 years, we have followed a consistent philosophy that we firmly believe is in our investors’ best interests. The range of opportunities offered by our family of just 29 carefully conceived, broadly diversified funds has attracted over 35 million shareholder accounts.
Our unique combination of strengths includes these five factors:
• A long-term, value-oriented approach
We buy stocks and bonds of well-managed companies at reasonable prices and hold them for the long term.
• An extensive global research effort
American Funds investment professionals search the world to gain a comprehensive understanding of companies and markets.
• The multiple portfolio counselor system
Our unique method of portfolio management, developed nearly 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.
• Experienced investment professionals
American Funds portfolio counselors have an average of 23 years of investment experience, providing a wealth of knowledge and experience that few organizations have.
• A commitment to low operating expenses
The American Funds provide exceptional value for shareholders, with operating expenses that are among the lowest in the mutual fund industry.
29 mutual funds, consistent philosophy, consistent results
• Growth funds
AMCAP Fund®
EuroPacific Growth Fund®
The Growth Fund of America®
The New Economy Fund®
New Perspective Fund®
New World FundSM
> SMALLCAP World Fund®
• Growth-and-income funds
American Mutual Fund®
Capital World Growth and Income FundSM
Fundamental InvestorsSM
The Investment Company of America®
Washington Mutual Investors FundSM
• Equity-income funds
Capital Income Builder®
The Income Fund of America®
• Balanced fund
American Balanced Fund®
• Bond funds
American High-Income TrustSM
The Bond Fund of AmericaSM
Capital World Bond Fund®
Intermediate Bond Fund of America®
U.S. Government Securities FundSM
• Tax-exempt bond funds
American High-Income Municipal Bond Fund®
Limited Term Tax-Exempt Bond Fund of AmericaSM
The Tax-Exempt Bond Fund of America®
State-specific tax-exempt funds
The Tax-Exempt Fund of California®
The Tax-Exempt Fund of Maryland®
The Tax-Exempt Fund of Virginia®
• Money market funds
The Cash Management Trust of America®
The Tax-Exempt Money Fund of AmericaSM
The U.S. Treasury Money Fund of AmericaSM
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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
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SMALLCAP World Fund®
Investment portfolio
March 31, 2006
unaudited
Common stocks — 91.05% | Shares | Market value (000) | |||||
CONSUMER DISCRETIONARY — 19.52% | |||||||
Michaels Stores, Inc. | 5,300,000 | $ | 199,174 | ||||
Aristocrat Leisure Ltd. | 10,545,000 | 103,984 | |||||
Cheil Industries Inc.1 | 2,575,000 | 94,350 | |||||
Orient-Express Hotels Ltd. | 2,326,000 | 91,249 | |||||
Lions Gate Entertainment Corp., USD denominated1,2 | 4,100,000 | 41,615 | |||||
Lions Gate Entertainment Corp.1,2 | 3,628,500 | 36,935 | |||||
Lojas Renner SA1 | 1,380,000 | 75,284 | |||||
Cyrela Brazil Realty SA, ordinary nominative | 4,185,500 | 74,615 | |||||
Schibsted ASA | 2,525,000 | 69,578 | |||||
Central European Media Enterprises Ltd.2 | 963,500 | 66,106 | |||||
Big Lots, Inc.2 | 4,271,400 | 59,629 | |||||
Korea Kumho Petrochemical Co., Ltd.1 | 1,810,940 | 58,898 | |||||
CarMax, Inc.2 | 1,800,000 | 58,824 | |||||
GOME Electrical Appliances Holding Ltd. | 51,163,000 | 57,035 | |||||
Kuoni Reisen Holding AG2 | 106,500 | 55,206 | |||||
Triarc Companies, Inc., Class B | 2,150,000 | 37,582 | |||||
Triarc Companies, Inc., Class A | 950,000 | 17,318 | |||||
Life Time Fitness, Inc.2 | 1,140,000 | 53,409 | |||||
JUMBO SA1 | 3,109,543 | 51,636 | |||||
NutriSystem, Inc.2 | 1,083,800 | 51,502 | |||||
Tupperware Brands Corp. | 2,500,000 | 51,475 | |||||
Submarino SA, ordinary nominative | 1,946,900 | 50,360 | |||||
Hürriyet Gazetecilik ve Matbaacilik AS | 13,115,985 | 50,315 | |||||
Laureate Education, Inc.2 | 921,600 | 49,195 | |||||
GSI Commerce, Inc.1,2 | 2,794,491 | 47,506 | |||||
Select Comfort Corp.2 | 1,200,000 | 47,460 | |||||
Tractor Supply Co.2 | 681,700 | 45,224 | |||||
Unibet Group PLC (SDR)1 | 1,770,000 | 44,972 | |||||
Restaurant Group PLC1 | 12,499,555 | 44,100 | |||||
Fourlis1 | 3,310,000 | 44,052 | |||||
Ekornes ASA1 | 2,130,598 | 43,910 | |||||
P.F. Chang’s China Bistro, Inc.2 | 775,000 | 38,200 | |||||
Shuffle Master, Inc.2 | 1,030,000 | 36,812 | |||||
SEEK Ltd. | 12,697,300 | 36,254 | |||||
Children’s Place Retail Stores, Inc.2 | 600,000 | 34,740 | |||||
Café de Coral Holdings Ltd. | 23,750,000 | 34,587 | |||||
Fossil, Inc.2 | 1,835,000 | 34,094 | |||||
Fisher & Paykel Appliances Holdings Ltd. | 13,080,000 | 34,085 | |||||
Arbitron Inc. | 1,001,060 | 33,856 | |||||
Furniture Brands International, Inc. | 1,350,000 | 33,088 | |||||
Bijou Brigitte modische Accessoires AG | 114,700 | 32,811 | |||||
Citi Trends, Inc.1,2 | 804,816 | 31,999 | |||||
Williams-Sonoma, Inc.2 | 750,000 | 31,800 | |||||
IBT Education Ltd.1 | 20,257,368 | 31,747 | |||||
CKE Restaurants, Inc. | 1,800,000 | 31,320 | |||||
Praktiker Bau- und Heimwerkermärkte Holding AG2 | 1,066,200 | 31,003 | |||||
Ameristar Casinos, Inc. | 1,200,000 | 30,948 | |||||
ValueVision Media, Inc.1,2 | 2,400,000 | 30,672 | |||||
Blue Nile, Inc.2 | 860,375 | 30,277 | |||||
Valassis Communications, Inc.2 | 1,000,000 | 29,370 | |||||
Cedar Fair, L.P. | 1,000,000 | 29,250 | |||||
Blyth, Inc. | 1,370,000 | 28,797 | |||||
Bloomsbury Publishing PLC1 | 4,655,000 | 28,316 | |||||
Pinnacle Entertainment, Inc.2 | 1,000,000 | 28,170 | |||||
Hyatt Regency SA | 2,034,330 | 27,666 | |||||
Nien Made Enterprise Co., Ltd.1 | 22,100,000 | 27,649 | |||||
REX HOLDINGS CO., LTD | 7,488 | 27,224 | |||||
Trigano SA | 473,000 | 26,568 | |||||
Photo-Me International PLC | 15,000,000 | 25,549 | |||||
Halfords Group PLC | 4,200,000 | 24,673 | |||||
Applebee’s International, Inc. | 1,000,000 | 24,550 | |||||
Modern Times Group MTG AB2 | 500,000 | 23,542 | |||||
Cheng Shin Rubber (Xiamen) Ind., Ltd. | 32,078,016 | 23,456 | |||||
Nishimatsuya Chain Co., Ltd. | 1,092,000 | 23,191 | |||||
Alma Media Corp. | 2,368,478 | 22,852 | |||||
Impact 21 Co., Ltd. | 890,000 | 22,832 | |||||
La-Z-Boy Inc. | 1,300,000 | 22,100 | |||||
VistaPrint Ltd.2 | 730,568 | 21,807 | |||||
Lifestyle International Holdings Ltd. | 12,640,000 | 21,666 | |||||
Kumho Industrial Co., Ltd. | 900,000 | 21,583 | |||||
Denny’s Corp.2 | 4,500,000 | 21,420 | |||||
Rossi Residencial SA, ordinary nominative | 1,755,500 | 21,021 | |||||
Bright Horizons Family Solutions, Inc.2 | 520,000 | 20,140 | |||||
OSIM International Ltd. | 16,650,000 | 20,088 | |||||
Bob Evans Farms, Inc. | 650,000 | 19,311 | |||||
Pantaloon Retail (India) Ltd. | 421,524 | 18,599 | |||||
Bilia AB | 785,000 | 18,329 | |||||
Largan Precision Co., Ltd. | 1,125,000 | 18,292 | |||||
Nitori Co., Ltd. | 351,000 | 18,278 | |||||
Nobia AB | 627,000 | 16,294 | |||||
Journal Communications, Inc. | 1,203,500 | 14,923 | |||||
O’Charley’s Inc.2 | 791,500 | 14,611 | |||||
Zee Telefilms Ltd. | 2,700,000 | 14,508 | |||||
Palm Harbor Homes, Inc.2 | 663,906 | 14,228 | |||||
RNB Retail and Brands AB1 | 2,100,000 | 14,183 | |||||
JJB Sports PLC | 4,390,500 | 14,060 | |||||
Sonic Corp.2 | 400,000 | 14,052 | |||||
Carpetright PLC | 692,213 | 14,016 | |||||
Gaming VC Holdings SA1 | 2,023,800 | 13,999 | |||||
JB Hi-Fi Ltd. | 4,050,000 | 13,911 | |||||
Prime Success International Group Ltd. | 20,200,000 | 13,537 | |||||
Zumiez Inc.2 | 210,000 | 12,831 | |||||
McCarthy & Stone PLC | 917,900 | 12,778 | |||||
Sanctuary Group PLC2 | 14,412,733 | 12,713 | |||||
Pumpkin Patch Ltd. | 4,970,107 | 12,371 | |||||
SA D’Ieteren NV | 40,681 | 12,174 | |||||
Sharper Image Corp.1,2 | 950,000 | 12,169 | |||||
YBM Sisa.com Inc. | 461,268 | 11,845 | |||||
Levitt Corp. | 500,000 | 11,020 | |||||
Haseko Corp.2 | 2,830,000 | 10,674 | |||||
Next Media Ltd. | 18,520,000 | 10,502 | |||||
BEC World PCL | 31,500,000 | 10,218 | |||||
Can Do Co., Ltd.1 | 7,900 | 10,200 | |||||
Formosa International Hotels Corp. | 4,889,000 | 9,805 | |||||
NEXEN Tire Co., Ltd. | 460,000 | 9,469 | |||||
Premier Image Technology Corp. | 6,155,000 | 8,289 | |||||
GEOX SpA | 591,000 | 7,881 | |||||
Rinnai Corp. | 230,000 | 6,897 | |||||
Restoration Hardware, Inc.2 | 1,200,000 | 6,828 | |||||
Nokian Renkaat Oyj | 370,000 | 6,525 | |||||
Fontainebleau Resorts, LLC, units2,3,4 | 650,000 | 6,500 | |||||
ElringKlinger AG | 135,000 | 6,483 | |||||
Build-A-Bear Workshop, Inc.2 | 203,500 | 6,237 | |||||
Nien Hsing Textile Co., Ltd. | 7,861,000 | 4,875 | |||||
Zhejiang Glass Co. Ltd. | 11,499,400 | 2,816 | |||||
MEDION AG | 13,202 | 172 | |||||
3,571,674 | |||||||
INFORMATION TECHNOLOGY — 15.64% | |||||||
CNET Networks, Inc.1,2 | 10,655,000 | 151,408 | |||||
Kingboard Chemical Holdings Ltd.1 | 45,946,000 | 138,855 | |||||
NHN Corp.2 | 443,000 | 136,785 | |||||
Integrated Device Technology, Inc.2 | 7,854,000 | 116,710 | |||||
Semtech Corp.1,2 | 5,900,000 | 105,551 | |||||
PMC-Sierra, Inc.2 | 8,202,700 | 100,811 | |||||
Cymer, Inc.1,2 | 2,060,000 | 93,606 | |||||
Chartered Semiconductor Manufacturing Ltd2 | 84,762,000 | 82,334 | |||||
Varian Semiconductor Equipment Associates, Inc.2 | 2,325,000 | 65,286 | |||||
ValueClick, Inc.2 | 3,600,000 | 60,912 | |||||
MKS Instruments, Inc.2 | 2,472,444 | 57,929 | |||||
Power Integrations, Inc.1,2 | 2,300,000 | 56,994 | |||||
NCsoft Corp.2 | 743,200 | 54,539 | |||||
Fairchild Semiconductor International, Inc.2 | 2,665,000 | 50,822 | |||||
Venture Corp. Ltd. | 5,969,600 | 47,275 | |||||
National Instruments Corp. | 1,337,500 | 43,629 | |||||
Marchex, Inc.1,2 | 2,000,000 | 43,000 | |||||
Manhattan Associates, Inc.1,2 | 1,950,000 | 42,900 | |||||
Novell, Inc.2 | 5,394,100 | 41,427 | |||||
Spansion Inc.2 | 2,755,100 | 40,775 | |||||
MacDonald, Dettwiler and Associates Ltd.2 | 1,000,000 | 38,986 | |||||
Brooks Automation, Inc.2 | 2,725,000 | 38,804 | |||||
Veeco Instruments, Inc.1,2 | 1,598,523 | 37,326 | |||||
Unimicron Technology Corp. | 24,515,000 | 35,700 | |||||
Cypress Semiconductor Corp.2 | 2,000,000 | 33,900 | |||||
Vishay Intertechnology, Inc.2 | 2,350,000 | 33,464 | |||||
Mentor Graphics Corp.2 | 3,000,000 | 33,150 | |||||
Rogers Corp.2 | 600,000 | 32,688 | |||||
O2Micro International Ltd. (ADR)1,2 | 3,055,000 | 32,475 | |||||
Littelfuse, Inc.2 | 950,000 | 32,424 | |||||
Intersil Corp. | 1,107,105 | 32,017 | |||||
ProMOS Technologies Inc. | 92,506,000 | 31,680 | |||||
Kakaku.com, Inc.1 | 7,820 | 30,889 | |||||
Bankrate, Inc.2 | 709,100 | 30,888 | |||||
Cree, Inc.2 | 936,000 | 30,710 | |||||
aQuantive, Inc.2 | 1,300,000 | 30,602 | |||||
Hittite Microwave Corp.2 | 874,200 | 29,469 | |||||
AAC Acoustic Technologies Holdings Inc.2 | 29,907,000 | 27,944 | |||||
Sanken Electric Co., Ltd. | 1,625,000 | 27,815 | |||||
Verifone Holdings, Inc.2 | 900,000 | 27,261 | |||||
GES International1 | 42,700,000 | 26,418 | |||||
Billing Services Group PLC1,2 | 16,548,800 | 26,283 | |||||
Knot, Inc.1,2,3 | 1,200,000 | 21,720 | |||||
Knot, Inc.1,2 | 178,820 | 3,237 | |||||
Wintek Corp. | 18,160,000 | 24,933 | |||||
ASM Pacific Technology Ltd. | 3,840,000 | 22,913 | |||||
Hana Microelectronics PCL | 29,216,100 | 22,752 | |||||
Net 1 UEPS Technologies, Inc.2 | 775,000 | 21,933 | |||||
Orbotech Ltd.2 | 887,000 | 21,847 | |||||
SPSS Inc.2 | 689,100 | 21,817 | |||||
PDF Solutions, Inc.2 | 1,100,000 | 20,812 | |||||
Echelon Corp.1,2 | 2,000,000 | 18,880 | |||||
SFA Engineering Corp.1 | 553,700 | 18,293 | |||||
Himax Technologies, Inc. (ADR)2 | 2,000,000 | 17,500 | |||||
Radiant Op-to Electronics Corp. | 7,025,000 | 17,296 | |||||
Sunplus Technology Co., Ltd. | 12,301,000 | 16,965 | |||||
FormFactor, Inc.2 | 425,000 | 16,711 | |||||
Ichia Technologies, Inc.1 | 16,995,177 | 15,363 | |||||
Lawson Software, Inc.2 | 2,000,000 | 15,340 | |||||
Spark Networks PLC (GDR)1,2 | 1,300,000 | 8,336 | |||||
Spark Networks PLC1,2,3,4 | 1,103,000 | 6,896 | |||||
Plantynet Co., Ltd.1 | 268,800 | 14,635 | |||||
TTM Technologies, Inc.2 | 1,000,000 | 14,490 | |||||
Vaisala Oyj | 423,295 | 13,853 | |||||
Reunert Ltd. | 1,215,000 | 13,465 | |||||
Winbond Electronics Corp.2 | 45,000,000 | 13,106 | |||||
InfoSpace.com, Inc.2 | 450,000 | 12,578 | |||||
Unisteel Technology Ltd. | 9,655,000 | 12,365 | |||||
Career Technology (MFG.) Co., Ltd.1 | 13,355,894 | 12,300 | |||||
Moser Baer India Ltd. | 2,350,000 | 12,080 | |||||
KEC Corp.1 | 5,235,400 | 11,639 | |||||
SupportSoft, Inc.1,2 | 2,476,000 | 10,969 | |||||
Gateway, Inc.2 | 5,000,000 | 10,950 | |||||
Simmtech Co., Ltd. | 1,020,000 | 10,110 | |||||
Faraday Technology Corp. | 6,165,968 | 10,006 | |||||
Rotork PLC | 797,581 | 9,634 | |||||
Kiryung Electronics Co., Ltd.1 | 1,780,000 | 9,215 | |||||
Mtekvision Co., Ltd. | 319,710 | 8,950 | |||||
SkillSoft PLC (ADR)2 | 1,696,800 | 8,891 | |||||
Toshiba Ceramics Co., Ltd. | 2,181,000 | 8,522 | |||||
Vanguard International Semiconductor Corp. | 10,044,495 | 7,345 | |||||
Siliconware Precision Industries Co., Ltd. | 5,550,000 | 7,235 | |||||
Taiflex Scientific Co., Ltd. | 4,267,750 | 7,189 | |||||
Interflex Co., Ltd.1 | 799,000 | 6,735 | |||||
Phoenix PDE Co., Ltd.1 | 1,500,000 | 6,392 | |||||
Advanced Analogic Technologies Inc.2 | 544,600 | 6,208 | |||||
Silicon Graphics, Inc.1,2 | 14,000,000 | 6,118 | |||||
NAVTEQ Corp.2 | 119,500 | 6,053 | |||||
DK UIL Co., Ltd. | 564,600 | 6,043 | |||||
Renishaw PLC | 352,108 | 5,483 | |||||
Jahwa Electronics Co., Ltd. | 620,000 | 5,220 | |||||
Min Aik Technology Co., Ltd. | 2,360,000 | 3,466 | |||||
Koei Co., Ltd. | 135,360 | 2,811 | |||||
Avid Technology, Inc.2 | 33,400 | 1,452 | |||||
Infoteria Corp.1,2,3,4 | 2,577 | 876 | |||||
ClearSpeed Technology Ltd.2,3,4 | 2,300,000 | 252 | |||||
MMC AS2,3,4 | 4,150,000 | 63 | |||||
Orbiscom Ltd.2,3,4 | 3,905,874 | 59 | |||||
diCarta2,3,4 | 103,135 | — | |||||
2,862,743 | |||||||
INDUSTRIALS — 13.11% | |||||||
Downer EDI Ltd.1 | 18,988,390 | 120,526 | |||||
ALL - América Latina Logística, units | 1,766,550 | 109,440 | |||||
United Stationers Inc.1,2 | 1,712,200 | 90,918 | |||||
JetBlue Airways Corp.2 | 8,250,000 | 88,440 | |||||
Samsung Engineering Co., Ltd.1 | 2,587,640 | 87,355 | |||||
Container Corp. of India Ltd. | 2,641,794 | 85,849 | |||||
Corrections Corporation of America2 | 1,850,000 | 83,620 | |||||
Buhrmann NV | 4,543,600 | 80,407 | |||||
GS Engineering & Construction Co. Ltd. | 1,320,107 | 78,533 | |||||
MSC Industrial Direct Co., Inc. | 1,275,000 | 68,876 | |||||
LS Industrial Systems Co., Ltd.1 | 1,950,000 | 67,034 | |||||
Lincoln Electric Holdings, Inc. | 1,080,000 | 58,309 | |||||
Acuity Brands, Inc. | 1,449,500 | 57,980 | |||||
Daelim Industrial Co., Ltd. | 701,640 | 55,605 | |||||
Minebea Co., Ltd. | 6,783,000 | 46,845 | |||||
Sumitomo Heavy Industries, Ltd. | 4,500,000 | 43,234 | |||||
SembCorp Logistics Ltd. | 36,632,926 | 40,116 | |||||
Michael Page International PLC | 6,416,190 | 38,026 | |||||
Tetra Tech, Inc.2 | 1,919,000 | 36,634 | |||||
STX Shipbuilding Co., Ltd.1 | 1,866,399 | 36,498 | |||||
Hyundai Mipo Dockyard Co., Ltd. | 409,370 | 35,224 | |||||
Gateway Distriparks Ltd.1 | 3,389,867 | 19,323 | |||||
Gateway Distriparks Ltd. (GDR)1,3,4 | 2,135,000 | 12,170 | |||||
Federal Signal Corp. | 1,676,100 | 31,008 | |||||
K&F Industries Holdings, Inc.2 | 1,800,000 | 29,880 | |||||
Hudson Highland Group, Inc.1,2 | 1,574,000 | 29,812 | |||||
Seco Tools AB | 445,000 | 29,082 | |||||
AGCO Corp.2 | 1,400,000 | 29,036 | |||||
Wilh. Wilhelmsen ASA | 799,600 | 27,588 | |||||
Ballast Nedam NV1,2 | 628,753 | 26,826 | |||||
KCI Konecranes International Corp. | 1,531,240 | 26,355 | |||||
G&K Services, Inc. | 613,009 | 26,077 | |||||
Uponor Oyj | 960,100 | 25,113 | |||||
Trakya Cam Sanayii AS | 5,335,000 | 22,850 | |||||
Kelly Services, Inc. | 800,000 | 21,736 | |||||
Hyundai Engineering & Construction Co., Ltd.2 | 420,000 | 21,419 | |||||
SembCorp Marine Ltd | 11,540,000 | 20,348 | |||||
ChoicePoint Inc.2 | 450,000 | 20,138 | |||||
Max India Ltd.2 | 999,986 | 19,939 | |||||
Hong Kong Aircraft Engineering Co. Ltd. | 2,052,000 | 18,988 | |||||
SIRVA, Inc.2 | 2,173,400 | 18,539 | |||||
Aditya Birla Nuvo | 1,059,100 | 17,810 | |||||
Oslo Børs Holding ASA | 245,000 | 16,831 | |||||
Nexans SA | 215,000 | 16,744 | |||||
Halla Engineering & Construction Corp.1 | 626,000 | 16,655 | |||||
Copa Holdings, SA2 | 725,000 | 16,566 | |||||
EnerSys2 | 1,200,000 | 16,560 | |||||
OSG CORP. | 775,000 | 16,491 | |||||
Hyundai Development Co. | 357,000 | 16,333 | |||||
Hi-P International Ltd. | 16,886,000 | 16,298 | |||||
Bradken Ltd. | 4,389,221 | 16,019 | |||||
Kyeryong Construction Industrial Co., Ltd.1 | 469,250 | 15,817 | |||||
CoStar Group, Inc.2 | 300,000 | 15,567 | |||||
Spirax-Sarco Engineering PLC | 930,000 | 15,541 | |||||
Royal Boskalis Westminster NV | 236,600 | 15,286 | |||||
Steelcase Inc. | 775,000 | 13,950 | |||||
Chen Hsong Holdings Ltd. | 22,396,000 | 13,854 | |||||
Aboitiz Equity Ventures | 134,250,000 | 13,412 | |||||
Latécoère SA | 323,626 | 13,180 | |||||
Geberit AG | 13,750 | 13,127 | |||||
Goodpack Ltd. | 10,448,000 | 12,088 | |||||
ZENON Environmental Inc.2 | 575,000 | 11,804 | |||||
Royal Group Technologies Ltd.2 | 1,200,000 | 11,197 | |||||
Permasteelisa SpA | 615,000 | 11,108 | |||||
Noritz Corp. | 560,000 | 10,846 | |||||
Aker American Shipping ASA2 | 604,800 | 10,803 | |||||
Stork NV | 184,800 | 10,313 | |||||
Harbin Power Equipment Co. Ltd. | 12,196,000 | 10,295 | |||||
Italian-Thai Development PCL | 57,220,000 | 10,238 | |||||
Rollins, Inc. | 500,000 | 10,120 | |||||
Intertek Group PLC | 700,000 | 10,007 | |||||
Fu Sheng Industrial Co., Ltd. | 8,323,000 | 9,822 | |||||
NEPES Corp.2 | 701,634 | 9,207 | |||||
Curtiss-Wright Corp. | 134,300 | 8,891 | |||||
Shenzhen Expressway Co., Ltd.2 | 19,422,000 | 7,634 | |||||
Sino-Thai Engineering and Construction PCL | 30,400,000 | 7,435 | |||||
Dongbu Corp. | 415,000 | 7,368 | |||||
Anhui Expressway Co. Ltd. | 12,000,000 | 6,959 | |||||
Krones AG | 55,000 | 6,654 | |||||
Northgate PLC | 332,000 | 6,549 | |||||
Techem AG | 145,600 | 6,399 | |||||
Korea Electric Terminal Co., Ltd. | 350,000 | 5,548 | |||||
Cummins India Ltd. | 882,496 | 4,723 | |||||
Ultraframe PLC1,2 | 6,330,000 | 4,263 | |||||
Ansaldo STS SpA2 | 390,000 | 4,202 | |||||
LTG Technologies PLC1,2 | 17,785,714 | 2,473 | |||||
Moatech Co., Ltd. | 292,600 | 1,400 | |||||
ZOOTS1,2,3,4 | 25,173 | 234 | |||||
2,400,317 | |||||||
HEALTH CARE — 10.68% | |||||||
Medicis Pharmaceutical Corp.1 | 3,545,000 | $ | 115,567 | ||||
Advanced Medical Optics, Inc.2 | 2,415,000 | 112,636 | |||||
Kyphon Inc.1,2 | 2,994,600 | 111,399 | |||||
Alfresa Holdings Corp. | 1,467,000 | 89,102 | |||||
IDEXX Laboratories, Inc.2 | 720,000 | 62,179 | |||||
ArthroCare Corp.1,2 | 1,282,000 | 61,305 | |||||
Myogen, Inc.2 | 1,640,000 | 59,417 | |||||
FoxHollow Technologies, Inc.1,2 | 1,900,200 | 58,051 | |||||
Wright Medical Group, Inc.1,2 | 2,736,000 | 54,036 | |||||
Vertex Pharmaceuticals Inc.2 | 1,413,911 | 51,735 | |||||
Psychiatric Solutions, Inc.2 | 1,500,000 | 49,695 | |||||
STERIS Corp. | 1,750,000 | 43,190 | |||||
Hologic, Inc.2 | 708,034 | 39,190 | |||||
Alexion Pharmaceuticals, Inc.2 | 1,100,000 | 38,962 | |||||
Toho Pharmaceutical Co., Ltd. | 2,615,000 | 38,474 | |||||
Keryx Biopharmaceuticals, Inc.1,2 | 2,000,000 | 38,220 | |||||
Nobel Biocare Holding AG | 156,000 | 34,720 | |||||
Nuvelo, Inc.2 | 1,930,315 | 34,398 | |||||
Connetics Corp.1,2 | 2,000,000 | 33,860 | |||||
Fisher & Paykel Healthcare Corp. Ltd. | 12,600,000 | 32,060 | |||||
NuVasive, Inc.1,2 | 1,659,000 | 31,272 | |||||
Rhön-Klinikum AG | 705,200 | 30,216 | |||||
Apollo Hospitals Enterprise Ltd.1 | 2,542,374 | 28,968 | |||||
Theravance, Inc.2 | 1,000,000 | 28,040 | |||||
Extendicare Inc. | 1,250,000 | 26,497 | |||||
ResMed Inc2 | 452,000 | 19,879 | |||||
ResMed Inc, AUD denominated2 | 1,500,000 | 6,548 | |||||
Valeant Pharmaceuticals International | 1,650,000 | 26,153 | |||||
ZymoGenetics, Inc.2 | 1,200,000 | 25,944 | |||||
Idenix Pharmaceuticals, Inc.2 | 1,900,000 | 25,783 | |||||
Diagnósticos da América SA2 | 950,000 | 24,595 | |||||
Cochlear Ltd. | 637,000 | 24,223 | |||||
Par Pharmaceutical Companies, Inc.2 | 850,000 | 23,953 | |||||
PSS World Medical, Inc.2 | 1,175,000 | 22,666 | |||||
Greatbatch, Inc.2 | 990,400 | 21,700 | |||||
Nektar Therapeutics2 | 1,000,000 | 20,380 | |||||
CV Therapeutics, Inc.2 | 887,000 | 19,585 | |||||
Nakanishi Inc. | 189,000 | 19,266 | |||||
Haemonetics Corp.2 | 350,000 | 17,769 | |||||
Hythiam, Inc.2 | 1,928,000 | 17,718 | |||||
Nabi Biopharmaceuticals1,2 | 3,050,000 | 17,202 | |||||
LifePoint Hospitals, Inc.2 | 550,000 | 17,105 | |||||
Adams Respiratory Therapeutics, Inc.2 | 397,600 | 15,813 | |||||
Salix Pharmaceuticals, Ltd.2 | 950,000 | 15,685 | |||||
AtheroGenics, Inc.2 | 900,000 | 14,688 | |||||
Human Genome Sciences, Inc.2 | 1,300,000 | 14,131 | |||||
BioMarin Pharmaceutical Inc.2 | 1,000,000 | 13,420 | |||||
CONMED Corp.2 | 700,000 | 13,405 | |||||
United Therapeutics Corp.2 | 200,000 | 13,256 | |||||
Genmab A/S2 | 400,000 | 12,677 | |||||
Horizon Health Corp.2 | 612,831 | 12,134 | |||||
I-Flow Corp.2 | 900,000 | 11,988 | |||||
Tecan Group Ltd., Männedorf | 215,586 | 11,489 | |||||
Cubist Pharmaceuticals, Inc.2 | 500,000 | 11,485 | |||||
HealthSpring, Inc.2 | 600,000 | 11,166 | |||||
Allion Healthcare, Inc.2 | 800,000 | 10,848 | |||||
Penwest Pharmaceuticals Co.2 | 500,000 | 10,845 | |||||
MGI PHARMA, Inc.2 | 600,000 | 10,500 | |||||
Triad Hospitals, Inc.2 | 250,000 | 10,475 | |||||
Adeza Biomedical Corp.2 | 481,000 | 10,164 | |||||
Amplifon SpA | 107,598 | 9,405 | |||||
QIAGEN NV2 | 611,558 | 9,043 | |||||
Discovery Laboratories, Inc.2 | 1,200,000 | 8,796 | |||||
Immucor, Inc.2 | 300,000 | 8,607 | |||||
NPS Pharmaceuticals, Inc.2 | 905,900 | 7,736 | |||||
ICOS Corp.2 | 350,000 | 7,718 | |||||
American Healthways, Inc.2 | 150,000 | 7,641 | |||||
Panacos Pharmaceuticals, Inc.2 | 1,000,000 | 7,560 | |||||
Cytokinetics, Inc.2 | 853,500 | 6,222 | |||||
Vision-Sciences, Inc.1,2 | 1,884,500 | 3,298 | |||||
Allied Medical Ltd.2,4 | 147,030 | 12 | |||||
1,953,865 | |||||||
FINANCIALS — 9.14% | |||||||
Daegu Bank, Ltd.1 | 10,399,890 | 194,275 | |||||
Pusan Bank1 | 11,477,500 | 167,744 | |||||
HDFC Bank Ltd. | 5,206,500 | 90,628 | |||||
Housing Development Finance Corp. Ltd. | 2,212,480 | 66,494 | |||||
MCB Bank Ltd. | 16,465,080 | 61,737 | |||||
Wing Tai Holdings Ltd.1 | 40,000,000 | 47,021 | |||||
ORCO PROPERTY GROUP SA1 | 437,000 | 46,745 | |||||
Indiabulls Financial Services Ltd.1 | 8,069,292 | 46,351 | |||||
National Bank of Pakistan | 9,737,000 | 45,830 | |||||
Sumitomo Real Estate Sales Co., Ltd. | 700,000 | 44,895 | |||||
First Niagara Financial Group, Inc. | 3,050,000 | 44,713 | |||||
IndyMac Bancorp, Inc. | 1,000,000 | 40,930 | |||||
Ascendas Real Estate Investment Trust | 28,187,550 | 37,844 | |||||
National Finance PCL1 | 86,650,000 | 36,137 | |||||
Fulton Financial Corp. | 2,021,708 | 34,773 | |||||
Kotak Mahindra Bank Ltd. | 5,493,262 | 34,487 | |||||
Saxon Capital, Inc.1 | 3,240,000 | 33,826 | |||||
Centennial Bank Holdings, Inc.2,3 | 2,700,000 | 31,590 | |||||
Topdanmark A/S2 | 235,700 | 29,573 | |||||
Central Pattana PCL | 58,943,000 | 28,679 | |||||
Umpqua Holdings Corp. | 924,700 | 26,354 | |||||
Allgreen Properties Ltd. | 25,770,000 | 24,872 | |||||
Hong Kong Exchanges and Clearing Ltd. | 3,714,000 | 22,401 | |||||
Crescent Real Estate Equities Co. | 1,000,000 | 21,070 | |||||
Globe Trade Center SA2 | 235,000 | 21,042 | |||||
Kiatnakin Finance PCL | 24,270,900 | 20,619 | |||||
Sparebanken Rogaland | 658,145 | 20,396 | |||||
Bursa Malaysia Bhd. | 12,250,000 | 19,629 | |||||
Banco Nossa Caixa SA, ordinary nominative | 873,000 | 19,333 | |||||
Banco de Oro Universal Bank | 28,000,000 | 18,648 | |||||
Federal Agricultural Mortgage Corp. | 630,000 | 18,535 | |||||
United Mizrahi Bank Ltd.2 | 3,150,000 | 18,399 | |||||
Alabama National BanCorporation | 253,760 | 17,357 | |||||
Kensington Group PLC | 800,000 | 16,518 | |||||
Interhyp AG2 | 131,900 | 14,656 | |||||
Siam City Bank PCL | 22,335,822 | 13,972 | |||||
Montpelier Re Holdings Ltd. | 844,200 | 13,760 | |||||
UTI Bank Ltd. | 868,355 | 6,951 | |||||
UTI Bank Ltd. (GDR) | 802,645 | 6,421 | |||||
Sterling Bancshares, Inc. | 720,000 | 12,996 | |||||
Dah Sing Financial Holdings Ltd. | 1,600,000 | 12,599 | |||||
First Regional Bancorp2,3 | 124,014 | 11,053 | |||||
First Regional Bancorp2 | 15,800 | 1,408 | |||||
Jeonbuk Bank | 1,300,000 | 12,457 | |||||
Amata Corp. PCL | 26,800,000 | 12,074 | |||||
Capital Lease Funding, Inc. | 1,000,000 | 11,090 | |||||
Wintrust Financial Corp. | 190,000 | 11,052 | |||||
AmericanWest Bancorporation2 | 410,000 | 10,853 | |||||
China Banking Corp. | 750,000 | 10,064 | |||||
South Financial Group, Inc. | 370,000 | 9,675 | |||||
SinoPac Holdings | 17,671,000 | 8,969 | |||||
Sparebanken Midt-Norge | 650,000 | 7,814 | |||||
Western Alliance Bancorporation2 | 201,000 | 7,467 | |||||
CapitaCommercial Trust Management Ltd. | 6,634,000 | 7,347 | |||||
Public Financial Holdings Ltd. | 7,937,000 | 6,751 | |||||
Nasdaq Stock Market, Inc2 | 142,300 | 5,698 | |||||
Golden Land Property Development PLC2 | 14,845,457 | 3,669 | |||||
Golden Land Property Development PLC, nonvoting depositary receipt2 | 5,154,543 | 1,274 | |||||
Union Bank Ltd. | 1,569,160 | 1,648 | |||||
Echo Investment SA2 | 15,000 | 1,341 | |||||
1,672,504 | |||||||
MATERIALS — 6.21% | |||||||
Yamana Gold Inc.2 | 8,815,000 | 81,194 | |||||
Hyundai Steel Co. | 2,645,000 | 78,811 | |||||
Hanwha Chemical Corp.1 | 5,641,930 | 72,005 | |||||
Dongkuk Steel Mill Co., Ltd. | 3,355,000 | 66,471 | |||||
Fuji Seal International, Inc.1 | 2,091,900 | 62,018 | |||||
Sino-Forest Corp.1,2 | 9,422,800 | 52,883 | |||||
James Hardie Industries Ltd. | 7,423,446 | 50,360 | |||||
Asian Paints Ltd. | 3,150,461 | 45,759 | |||||
Fortescue Metals Group Ltd.2 | 9,717,045 | 43,459 | |||||
Golden Star Resources Ltd.1,2 | 13,420,000 | 42,430 | |||||
Peter Hambro Mining PLC2 | 1,690,000 | 40,005 | |||||
AptarGroup, Inc. | 600,000 | 33,150 | |||||
Kenmare Resources PLC1,2 | 39,316,000 | 32,970 | |||||
Coeur d’Alene Mines Corp.2 | 5,000,000 | 32,800 | |||||
Hecla Mining Co.2 | 4,740,800 | 31,337 | |||||
Bema Gold Corp.2 | 7,025,000 | 31,059 | |||||
Central African Mining & Exploration Co. PLC2 | 23,921,569 | 25,361 | |||||
Hanil Cement Co., Ltd. | 291,700 | 20,776 | |||||
Hindalco Industries Ltd. | 5,000,000 | 20,537 | |||||
Banro Corp.1,2,3 | 1,750,000 | 19,568 | |||||
PT Indocement Tunggal Prakarsa2,4 | 37,750,000 | 18,896 | |||||
Sungshin Cement Co., Ltd. | 956,500 | 17,671 | |||||
Northern Orion Resources Inc.2,3 | 2,800,000 | 12,619 | |||||
Northern Orion Resources Inc.2 | 1,100,000 | 4,958 | |||||
Owens-Illinois, Inc.2 | 1,000,000 | 17,370 | |||||
Senomyx, Inc.2 | 1,024,400 | 16,862 | |||||
S&B Industrial Minerals SA | 1,344,000 | 15,965 | |||||
Associated Cement Companies Ltd. | 830,000 | 14,596 | |||||
PT Semen Gresik4 | 5,000,000 | 14,070 | |||||
Ballarat Goldfields NL2 | 29,795,000 | 9,808 | |||||
Ballarat Goldfields NL2,3 | 10,250,000 | 3,374 | |||||
Cementerie del Tirreno S.p.A. | 1,600,000 | 11,628 | |||||
Anhui Conch Cement Co. Ltd. | 7,900,000 | 11,403 | |||||
Hung Hing Printing Group Ltd. | 17,199,000 | 10,916 | |||||
Aricom PLC1,2 | 9,893,134 | 10,488 | |||||
European Minerals Corp., GBP denominated2 | 6,880,000 | 6,696 | |||||
European Minerals Corp.2 | 3,300,000 | 3,082 | |||||
Energem Resources Inc.1,2 | 8,002,500 | 9,394 | |||||
Symyx Technologies, Inc.2 | 325,000 | 9,015 | |||||
Eastern Platinum Ltd.1,2 | 4,561,700 | 5,355 | |||||
Eastern Platinum Ltd.1,2,3,4 | 3,500,000 | 3,492 | |||||
Minara Resources Ltd. | 5,073,334 | 8,277 | |||||
Adastra Minerals Inc.2,3 | 2,625,000 | 6,478 | |||||
Mwana Africa PLC2,3 | 5,980,000 | 6,080 | |||||
Ivanhoe Mines Ltd.2 | 282,700 | 2,689 | |||||
Oriel Resources PLC2,3 | 5,000,000 | 2,433 | |||||
Thistle Mining Inc., GBP denominated2 | 22,625 | 5 | |||||
Thistle Mining Inc.2,4 | 30,000 | — | |||||
1,136,573 | |||||||
ENERGY — 5.98% | |||||||
OPTI Canada Inc.1,2 | 4,373,000 | 165,875 | |||||
OPTI Canada Inc.1,2,3 | 210,000 | 7,966 | |||||
Quicksilver Resources Inc.2 | 3,399,150 | 131,411 | |||||
WorleyParsons Ltd. | 8,900,189 | 119,864 | |||||
Bill Barrett Corp.2 | 1,893,500 | 61,709 | |||||
First Calgary Petroleums Ltd., GBP denominated2 | 4,800,000 | 36,707 | |||||
First Calgary Petroleums Ltd.2 | 3,146,000 | 23,586 | |||||
UrAsia Energy Ltd.2 | 22,000,000 | 56,550 | |||||
CARBO Ceramics Inc. | 923,700 | 52,568 | |||||
Delta Petroleum Corp.2 | 2,467,500 | 51,867 | |||||
Denbury Resources Inc.2 | 1,440,000 | 45,605 | |||||
Expro International Group PLC | 3,175,452 | 40,895 | |||||
Oilexco Inc.2 | 6,808,600 | 27,419 | |||||
Oilexco Inc., GBP denominated2,3 | 2,900,000 | 11,744 | |||||
Southwestern Energy Co.2 | 905,600 | 29,151 | |||||
BA Energy Inc.2,3,4 | 1,071,430 | 25,705 | |||||
Hydril Co.2 | 317,500 | 24,749 | |||||
Encore Acquisition Co.2 | 760,500 | 23,575 | |||||
Synenco Energy Inc.2,3 | 1,100,000 | 22,950 | |||||
Warren Resources, Inc.2 | 1,505,000 | 22,425 | |||||
San Juan Basin Royalty Trust | 520,000 | 21,294 | |||||
China Oilfield Services Ltd. | 40,179,100 | 20,454 | |||||
Bankers Petroleum Ltd.1,2 | 23,103,800 | 18,410 | |||||
FMC Technologies, Inc.2 | 350,000 | 17,927 | |||||
Caspian Energy Inc., GBP denominated2 | 3,450,000 | 9,946 | |||||
Caspian Energy Inc.2 | 450,000 | 1,272 | |||||
Regal Petroleum PLC1,2 | 7,817,000 | 10,189 | |||||
FirstAfrica Oil PLC1,2 | 96,515,000 | 6,710 | |||||
Banpu PCL | 1,480,400 | 5,678 | |||||
1,094,201 | |||||||
CONSUMER STAPLES — 2.63% | |||||||
Lindt & Sprüngli AG, participation certificate | 19,166 | $ | 35,581 | ||||
Lindt & Sprüngli AG | 1,694 | 32,929 | |||||
AMOREPACIFIC Corp. | 157,250 | 61,501 | |||||
Coca-Cola West Japan Co. Ltd. | 1,655,200 | 39,299 | |||||
DELTA HOLDING SA1 | 2,404,000 | 36,423 | |||||
BJ’s Wholesale Club, Inc.2 | 948,000 | 29,871 | |||||
Anadolu Efes Biracılık ve Malt Sanayii AS¸ | 900,000 | 28,827 | |||||
IAWS Group PLC | 1,650,000 | 28,619 | |||||
WD-40 Co.1 | 900,000 | 27,765 | |||||
China Mengniu Dairy Co. | 23,216,000 | 25,881 | |||||
Delta and Pine Land Co. | 800,000 | 24,128 | |||||
Fresh Del Monte Produce Inc. | 1,100,000 | 23,265 | |||||
PGG Wrightson Ltd.1 | 16,195,000 | 18,215 | |||||
Church & Dwight Co., Inc. | 474,500 | 17,519 | |||||
Herbalife Ltd.2 | 475,000 | 16,041 | |||||
Cawachi Ltd. | 250,000 | 9,833 | |||||
LG Household & Health Care Ltd. | 134,640 | 9,423 | |||||
American Italian Pasta Co. | 900,000 | 5,634 | |||||
Crown Confectionery Co., Ltd. | 36,000 | 5,021 | |||||
Diamond Foods, Inc. | 240,000 | 4,121 | |||||
Winn-Dixie Stores, Inc.2 | 3,500,000 | 1,015 | |||||
480,911 | |||||||
UTILITIES — 1.79% | |||||||
Perusahaan Gas Negara (Persero) Tbk.4 | 75,458,000 | 83,259 | |||||
Xinao Gas Holdings Ltd.1 | 56,438,000 | 52,369 | |||||
AES Tietê SA, preferred nominative | 1,649,875,000 | 45,766 | |||||
CESC Ltd. (GDR)1,2,3,4 | 3,320,000 | 25,616 | |||||
CESC Ltd.1 | 2,005,000 | 15,470 | |||||
Reliance Energy Ltd. | 2,259,500 | 31,073 | |||||
Tata Power Co. Ltd. | 2,108,047 | 27,602 | |||||
Northumbrian Water Group PLC | 3,425,000 | 14,212 | |||||
Electricity Generating PCL, nonvoting depositary receipt | 4,250,500 | 8,590 | |||||
Electricity Generating PCL | 2,285,000 | 4,618 | |||||
Kot Addu Power Co., Ltd. | 13,700,000 | 10,021 | |||||
E1 Corp. | 240,000 | 9,251 | |||||
327,847 | |||||||
TELECOMMUNICATION SERVICES — 1.42% | |||||||
TIM Participações SA, preferred nominative (ADR) | 1,872,428 | 69,336 | |||||
LG Telecom Ltd.2 | 6,370,000 | 53,630 | |||||
Digi International Inc.2 | 21,760,200 | 49,937 | |||||
Telemig Celular Participações SA, preferred nominative | 5,185,172,400 | 12,465 | |||||
Telemig Celular Participações SA, preferred nominative (ADR) | 163,000 | 7,769 | |||||
NTELOS Holdings Corp.1,2 | 1,150,000 | 16,111 | |||||
PT Indosat Tbk (ADR) | 564,000 | 15,843 | |||||
Neustar, Inc.2 | 483,340 | 14,984 | |||||
GLOBE TELECOM, Inc. | 526,867 | 9,082 | |||||
Partner Communications Co. Ltd. | 935,000 | 7,213 | |||||
Partner Communications Co. Ltd. (ADR) | 125,000 | 942 | |||||
Unwired Group Ltd.2 | 12,400,000 | 3,461 | |||||
260,773 | |||||||
MISCELLANEOUS — 4.93% | |||||||
Other common stocks in initial period of acquisition | $ | 902,318 | |||||
Total common stocks (cost: $11,825,906,000) | 16,663,726 | ||||||
Rights & warrants — 0.07% | |||||||
MATERIALS — 0.05% | |||||||
Northern Orion Resources Inc., warrants, expire 20082,3 | 1,400,000 | 4,138 | |||||
Kenmare Resources PLC, warrants, expire 20091,2 | 5,775,000 | 2,849 | |||||
European Minerals Corp., warrants, expire 20102 | 3,440,000 | 1,179 | |||||
European Minerals Corp., warrants, expire 20112 | 1,650,000 | 566 | |||||
Eastern Platinum Ltd., warrants, expire 20081,2 | 2,043,750 | 771 | |||||
Eastern Platinum Ltd., warrants, expire 20091,2,3,4 | 1,750,000 | 141 | |||||
Oriel Resources PLC, warrants, expire 20102,3 | 2,500,000 | 304 | |||||
Energem Resources Inc., warrants, expire 20081,2,4 | 1,200,000 | 1 | |||||
9,949 | |||||||
INFORMATION TECHNOLOGY — 0.01% | |||||||
Kingboard Chemical Holdings Ltd., warrants, expire 20061,2 | 3,988,200 | 1,850 | |||||
ENERGY — 0.01% | |||||||
OPTI Canada Inc., warrants, expire 20081,2,3,4 | 105,000 | 1,624 | |||||
BA Energy Inc., warrants, expire 20062,3,4 | 1,071,430 | — | |||||
1,624 | |||||||
FINANCIALS — 0.00% | |||||||
Public Financial Holdings Ltd., rights, expire 20062,4 | 3,968,500 | — | |||||
Total rights & warrants (cost: $568,000) | 13,423 | ||||||
Convertible securities — 0.01% | |||||||
TELECOMMUNICATION SERVICES — 0.00% | |||||||
Multiplex, Inc., Series C, convertible preferred2,3,4 | 1,358,696 | 52 | |||||
INFORMATION TECHNOLOGY — 0.00% | |||||||
Meet World Trade, Series C, convertible preferred2,3,4 | 389,416 | — | |||||
Socratic Technologies, Inc., Series A, convertible preferred2,3,4 | 375,000 | — | |||||
MISCELLANEOUS — 0.01% | |||||||
Other convertible securities in initial period of acquisition | 1,842 | ||||||
Total convertible secuities (cost: $20,775,000) | 1,894 | ||||||
Principal amount | Market value | ||||||
Bonds & notes — 0.05% | (000 | ) | (000 | ) | |||
CONSUMER STAPLES — 0.05% | |||||||
Winn-Dixie Stores, Inc. 8.875% 20085 | $ | 9,925 | $ | 7,890 | |||
Total bonds & notes (cost: $9,339,000) | 7,890 | ||||||
Short-term securities — 8.56% | |||||||
ING (U.S.) Funding LLC 4.55%-4.81% due 4/13-6/2/2006 | 98,600 | 98,139 | |||||
Mont Blanc Capital Corp. 4.66%-4.70% due 4/19-5/22/20063 | 78,894 | 78,591 | |||||
Amsterdam Funding Corp. 4.55%-4.70% due 4/4-5/16/20063 | 145,630 | 145,238 | |||||
Old Line Funding, LLC 4.53%-4.68% due 4/5-5/12/20063 | 101,578 | 101,244 | |||||
BASF AG 4.49%-4.67% due 4/13-5/16/20063 | 97,800 | 97,414 | |||||
American Honda Finance Corp. 4.57%-4.60% due 4/24-5/8/2006 | 85,900 | 85,548 | |||||
U.S. Treasury Bills 4.325%-4.55% due 4/20-5/4/2006 | 76,800 | 76,562 | |||||
Barclays U.S. Funding Corp. 4.72%-4.775% due 5/17-5/25/20066 | 68,000 | 67,587 | |||||
Shell International Finance BV 4.50%-4.51% due 4/3-4/11/2006 | 65,300 | 65,244 | |||||
Alcon Capital Corp 4.695% due 5/17/20063 | 39,200 | 38,971 | |||||
Nestlé Capital Corp. 4.52% due 4/4/20063 | 21,500 | 21,489 | |||||
Spintab AB (Swedmortgage) 4.54%-4.73% due 4/6-5/19/2006 | 57,100 | 56,922 | |||||
BNP Paribas Finance Inc. 4.71% due 5/15/2006 | 57,200 | 56,870 | |||||
Stadshypotek Delaware Inc. 4.69%-4.77% due 5/10-5/23/20063 | 53,600 | 53,275 | |||||
Toyota Motor Credit Corp. 4.68% due 5/11/2006 | 51,600 | 51,340 | |||||
UBS Finance (Delaware) LLC 4.57% due 4/3/2006 | 50,000 | 49,981 | |||||
Swedish Export Credit Corp. 4.65%-4.76% due 5/10-5/24/2006 | 50,000 | 49,706 | |||||
Total Capital SA 4.52%-4.61% due 4/6-4/28/20063 | 47,100 | 46,968 | |||||
Canadian Imperial Holdings Inc. 4.53% due 4/10/2006 | 40,000 | 39,954 | |||||
BMW U.S. Capital Corp. 4.70% due 5/17/20063 | 38,900 | 38,661 | |||||
Barton Capital LLC 4.53%-4.57% due 4/3-4/10/20063 | 31,418 | 31,401 | |||||
Fannie Mae 4.745% due 6/21/2006 | 30,000 | 29,675 | |||||
HSBC USA Inc. 4.80% due 5/25/2006 | 27,400 | 27,199 | |||||
Siemens Capital Co. LLC 4.56% due 4/28/2006 | 25,000 | 24,916 | |||||
Canada Government 4.71% due 5/26/2006 | 25,000 | 24,822 | |||||
Statoil ASA 4.56% due 4/6/2006 | 24,000 | 23,982 | |||||
Allied Irish Banks N.A. Inc. 4.64% due 5/2/20063 | 18,500 | 18,424 | |||||
National Australia Funding (Delaware) Inc. 4.68% due 4/10/20063 | 18,400 | 18,376 | |||||
ANZ (Delaware) Inc. 4.58% due 4/18/2006 | 16,600 | 16,562 | |||||
Bank of Ireland 4.78% due 5/23/20063 | 13,400 | 13,306 | |||||
ATT Inc. 4.85% due 4/3/20063 | 9,800 | 9,796 | |||||
Freddie Mac 4.52% due 5/9/20066 | 9,500 | 9,450 | |||||
Total short-term securities (cost: $1,567,482,000) | 1,567,613 | ||||||
Total investment securities (cost: $13,424,070,000) | 18,254,546 | ||||||
Other assets less liabilities | 47,744 | ||||||
Net assets | $ | 18,302,290 |
“Miscellaneous” securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.
1 Represents an affiliated company as defined under the Investment Company Act of 1940.
2 Security did not produce income during the last 12 months.
3Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require
registration. The total value of all such restricted securities was $958,851,000, which represented 5.24% of the net assets of the fund.
4Valued under fair value procedures adopted by authority of the board of directors.
5 Company not making scheduled interest payments; bankruptcy proceedings pending.
6 This security, or a portion of this security, has been segregated to cover funding requirements on investment transactions settling in the future.
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
SDR = Swedish Depositary Receipts
MFGEFP-935-0506-S4563
ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 8 - Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 10 - Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a Committee on Governance comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the Board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full Board of Directors. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the Board. Such suggestions must be sent in writing to the Committee on Governance of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the Committee on Governance.
ITEM 11 - Controls and Procedures
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
(b) | There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12 - Exhibits
(a)(1) | Not applicable for filing of semi-annual reports to shareholders. |
(a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
SMALLCAP WORLD FUND, INC. | |
By /s/ Gordon Crawford | |
Gordon Crawford, Vice Chairman and PEO | |
Date: June 8, 2006 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By /s/ Gordon Crawford |
Gordon Crawford, Vice Chairman and PEO |
Date: June 8, 2006 |
By /s/ David A. Pritchett |
David A. Pritchett, Treasurer and PFO |
Date: June 8, 2006 |