American Funds Capital World Growth & Income Fund Class F-1 Shs (CWGFX) N-CSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-07338

Capital World Growth and Income 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: November 30

Date of reporting period: November 30, 2007

Vincent P. Corti

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

Copies to:

Kathryn A. Sanders

O’Melveny & Myers LLP

400 South Hope Street, 10th Floor

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 – Reports to Stockholders

[logo - American Funds^®]

The right choice for the long term^®

Capital World Growth

and Income Fund

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A strategy for global investing

Annual report for the year ended November 30, 2007

Capital World Growth and Income Fund^SM seeks long-term capital growth while providing current income. It invests on a global basis in a diversified portfolio consisting primarily of common stocks and other equity securities.

This fund is one of the 30 American Funds. American Funds is one of the nation’s largest mutual fund families. For 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.

Contents
Letter to shareholders	1
The value of a long-term perspective	4
Feature article
A strategy for global investing	6
Summary investment portfolio	10
Financial statements	14
Board of directors and other officers	30
What makes American Funds different?	back cover

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

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended December 31, 2007 (the most recent calendar quarter-end):
	1 year			5 years			10 years
Class A shares
Reflecting 5.75% maximum sales charge		10.76	%		20.89	%		13.07	%

The total annual fund operating expense ratio for Class A shares as of the most recent fiscal year-end was 0.73%. This figure does not reflect a fee waiver currently in effect; therefore, the actual expense ratio is lower.

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 actual expenses, with the waiver applied. Fund results would have been lower without the waiver. Please see the Financial Highlights table on pages 22 and 23 for details.

The fund’s 30-day yield for Class A shares as of December 31, 2007, reflecting the 5.75% maximum sales charge and calculated in accordance with the Securities and Exchange Commission formula, was 2.62% (2.58% without the fee waiver).

Results for other share classes can be found on page 5.

Investing outside the United States may be subject to additional risks, such as currency fluctuations and political instability, which are detailed in the fund’s prospectus.

Fellow shareholders:

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Capital World Growth and Income Fund recorded strong gains for the recent fiscal year, aided by careful stock selection and a steady strengthening of major currencies against the U.S. dollar.

For the 12 months ended November 30, 2007, the fund produced a total return of 21.2%. Over the same period, the unmanaged MSCI World Index, the fund’s primary benchmark, recorded a 13.3% return, while the Lipper Global Funds Index, a peer group measure of the 30 largest global funds, returned 12.7%. Over longer time frames, the fund has consistently done better than either of these references, as shown in the table below.

During the fiscal year, shareholders received quarterly dividends totaling $1.10 a share, representing an income return of 2.7%. In addition, the fund made a capital gain distribution of approximately $1.80 a share in December 2006.

A look at global markets

Capital World Growth and Income Fund mainly invests in developed markets, most of which enjoyed favorable economic conditions during the year, lending stocks a welcome tailwind. During the second half, however, many of these same markets experienced heightened volatility, as troubles in the U.S. mortgage market seeped broadly throughout the financial sector and roused concerns about the sustainability of global economic growth.

Volatility was especially pronounced in the U.S. stock market, where indexes touched record highs in July and October, only to be followed by significant corrections in August and November. Investors grappled with the consequences of a weak housing market, rising mortgage defaults and a challenging credit environment. In the midst of the turmoil, the Federal Reserve began lowering its target loan rates to stimulate lending and help avert a recession. Though the economy continued to exhibit signs of surprising resilience throughout the fiscal year, dimmer outlooks for 2008 increasingly weighed on stocks and bonds alike. Nonetheless, U.S. stocks produced a respectable 7.9% return* for the fiscal year and accounted for 18.2% of the fund’s assets.

*Country returns are based on MSCI indexes, expressed in U.S. dollars (except where noted), and with gross dividends reinvested.

[Begin Sidebar]

Results at a glance

For periods ended November 30, 2007, with all distributions reinvested
				Average annual total returns
	Total returns									Lifetime
	1 year			5 years			10 years			(since 3/26/93)
Capital World Growth and
Income Fund (Class A shares)		21.2	%		21.9	%		14.0	%		15.1	%
MSCI World Index*		13.3			16.7			7.7			10.0
Lipper Global Funds Index†		12.7			16.3			8.0			9.8
* The MSCI World Index is a market capitalization index that is designed to measure global developed-market equity results. The index consists of 23 developed-country indexes, including the United States. The index is unmanaged and includes reinvested dividends and/or distributions, but does not reflect the effect of sales charges, commissions, expenses or taxes.
† Lipper Global Funds Index is an equally weighted index of 30 funds that invest at least 25% of their portfolios in securities traded outside the United States and that may own U.S. securities as well. The results of the underlying funds in the index include the reinvestment of dividends and capital gain distributions, as well as brokerage commissions paid by the funds for portfolio transactions, but do not reflect the effect of sales charges or taxes.

[End Sidebar]

In Europe, stepped-up economic growth set the stage for hefty returns in many of its markets. Germany, the continent’s largest economy, helped power results with its most substantial expansion in years. Stocks were also bolstered by improved corporate earnings and outlooks. In all markets, results were boosted by currency gains, as the euro, the British pound and other regional currencies continued to strengthen against the U.S. dollar. On a currency-adjusted basis, all markets, except Belgium (+4.9%) and Ireland (–8.3%), provided better returns than did the United States, with Finland (+59.8%), Germany (+39.2%) and Norway (+38.8%) topping the list. Europe houses nearly half of our portfolio holdings, as shown in the table at right.

Impressive double-digit returns were also the norm in other developed markets where the fund invests. These include South Korea (+34.2%), Taiwan (+12.1%), Australia (+39.0%) and Canada (+25.9%). In general, thriving exports and solid domestic growth helped fuel results; the latter two returns also benefited significantly from local currencies that strengthened against the U.S. dollar. Of the major Asia/Pacific markets, only Japan posted weak results with a 2.3% return. The country’s substantial exports and improving business climate could not overcome sluggish domestic demand and weak economic growth.

The developing markets of the world house a small but meaningful portion of fund assets. In many instances, the companies we buy in developed markets have burgeoning operations in developing economies. In other cases, we invest directly in these markets. Among the fund’s largest exposures are Brazil and India, where markets returned 89.2% and 66.0%, respectively.

Choice distinctions

Capital World Growth and Income Fund clearly benefited from strength in most global markets and from rising currency valuations. The fund also benefited from its individual stock selection — carefully considered choices of which stocks we want to own and which markets we want to be in. These choices differentiate the fund from the MSCI World Index and much of its peer group, a distinction reflected in the geographic distribution table on the facing page and, more importantly, in the results table on the previous page. To learn more about the fund’s stock selection process, please read our feature article, “A strategy for global investing,” beginning on page 6.

The table below identifies the fund’s 10 largest holdings as of fiscal year-end. These holdings also represent our portfolio counselors’ highest conviction investment ideas. Only two of the names (RWE and Microsoft) are new to the list this year. Not surprisingly, the majority of these companies are based in Europe where all are widely recognized brand names. As noted, returns for these holdings varied considerably, though all made positive contributions to results.

Of course, not all holdings posted positive returns. Many of the fund’s financial holdings posted weak results for the year, bruised by concerns about exposure to U.S. mortgage-backed securities. While the weakness mainly affected U.S. financial companies, some companies outside of the U.S. were tainted through direct and indirect investments alike. Results for other sectors were generally positive, and a breakdown of holdings by sector can be found in the summary portfolio, beginning on page 10.

[Begin Sidebar]

Largest equity holdings
(as of November 30, 2007)
		Percent of			12-month
Company	Country	net assets			return
E.ON	Germany		2.4	%		59.2	%
Banco Santander	Spain		1.9			18.3
RWE	Germany		1.9			20.8
Bayer	Germany		1.5			60.3
Royal Dutch Shell	United Kingdom		1.5			13.4
Diageo	United Kingdom		1.5			17.1
Microsoft	United States		1.4			14.6
Novo Nordisk	Denmark		1.4			64.9
Roche Holding	Switzerland		1.3			5.7
Koninklijke KPN	Netherlands		1.3			34.4

[End Sidebar]

Looking ahead

For the past few years, steady expansion of the broader global economy has provided a sustained tailwind for many regional markets and multinational companies. However, ongoing difficulties in the financial sector, fueled by weakness in U.S. housing markets and in mortgage-backed securities, could lead to continued volatility in equity markets and slower global growth, especially if the U.S. economy slips into recession. Similarly, the strengthening of foreign currencies, which has helped boost returns on international investments over the past few years, could have a lesser impact on future returns if the pace of global expansion weakens significantly in the year ahead.

With these concerns in mind, the fund’s portfolio counselors remain focused on fundamental security selection, continually evaluating each company’s long-term prospects in light of changing economic conditions and industry trends. This scrutiny has helped the fund weather past market weaknesses and contributed to its long-term record of success.

Finally, we take this opportunity to welcome new shareholders and thank long-time shareholders for their continued support. During the past year, we have experienced tremendous growth: fund assets have risen about 42%, while the number of shareholders has increased nearly 30%. We are honored by the confidence you have placed in us, and we look forward to keeping you apprised of the fund’s progress.

Cordially,

/s/ Gina H. Despres
Gina H. Despres

Vice Chairman of the Board

/s/ Stephen E. Bepler
Stephen E. Bepler

President

January 4, 2008

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

[Begin Sidebar]

[begin piechart]

Where the fund’s assets were invested*
The Americas	22.6	%
Asia/Pacific	18.2	%
Bonds, short-term
securities & other assets less liabilities	11.9	%
Europe	46.5	%
Other	0.8	%

[end piechart]

	Capital World Growth and Income Fund			MSCI World Index†
Europe		46.5	%		34.3	%
Germany		10.3			4.4
United Kingdom		8.4			11.1
France		8.2			5.2
Switzerland		3.5			3.3
Spain		3.1			2.2
Netherlands		2.9			1.4
Italy		1.7			1.9
Sweden		1.5			1.1
Denmark		1.4			.4
Greece		1.3			.4
Finland		1.1			1.0
Norway		1.0			.5
Belgium		.6			.6
Other Europe		1.5			.8
The Americas		22.6			50.7
United States		18.2			46.8
Brazil		2.8			—
Canada		1.1			3.9
Mexico		.5			—
Asia/Pacific		18.2			15.0
Taiwan		3.3			—
South Korea		3.0			—
Australia		2.7			3.3
Japan		2.4			10.0
Hong Kong		1.5			1.1
Singapore		1.4			.5
India		1.3			—
China		.7			—
Other Asia/Pacific		1.9			.1
Other		.8			—
Bonds, short-term securities
& other assets less liabilities		11.9			—
Total		100.0	%		100.0	%
*Percent of net assets by country as of November 30, 2007.
†The MSCI World Index is weighted by market capitalization.

[End Sidebar]

The value of a long-term perspective

How a $10,000 investment has grown since March 26, 1993

Fund results shown are for Class A shares and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com. Fund figures reflect deduction of the maximum sales charge of 5.75% on the $10,000 investment.¹Thus, the net amount invested was $9,425.

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	Capital World Growth and Income Fund, with dividends reinvested1,2		Capital World Growth and Income Fund, with dividends excluded1,3			MSCl World Index, with dividends reinvested4		U.S. Consumer Price Index  (inflation)5
3/26/1993	$	9,425	$	9,425		$	10,000	$	10,000
5/31/1993		9,719		9,719			10,837		10,042
8/31/1993		10,401		10,313			11,475		10,084
11/30/1993		10,782		10,625			10,924		10,153
2/28/1994		11,615		11,388			12,062		10,216
5/31/1994		11,315		11,044	��		11,936		10,272
8/31/1994		12,038		11,656			12,501		10,376
11/30/1994		11,592		11,131			11,982		10,425
2/28/1995		11,860		11,293			12,097		10,508
5/31/1995		12,788		12,094			13,242		10,599
8/31/1995		13,412		12,557			13,598		10,648
11/30/1995		13,841		12,850			14,260		10,696
2/29/1996		14,700		13,553			15,042		10,787
5/31/1996		15,327		14,031			15,673		10,905
8/31/1996		15,414		13,947			15,379		10,954
11/30/1996		17,118		15,362			17,004		11,045
2/28/1997		17,849		15,936			17,136		11,114
5/31/1997		18,908		16,782			18,427		11,149
8/31/1997		19,755		17,380			18,892		11,198
11/30/1997		19,917		17,414			19,212		11,247
2/28/1998		21,881		19,050			21,351		11,274
5/31/1998		22,801		19,763			22,198		11,337
8/31/1998		19,885		17,104			19,671		11,379
11/30/1998		23,007		19,676			23,138		11,421
2/28/1999		23,904		20,375			24,151		11,455
5/31/1999		25,004		21,214			25,203		11,574
8/31/1999		26,177		22,063			26,263		11,636
11/30/1999		27,396		23,014			28,141		11,720
2/29/2000		29,908		25,027			28,765		11,825
5/31/2000		30,124		25,119			28,718		11,943
8/31/2000		31,516		26,121			29,799		12,033
11/30/2000		29,142		24,016			26,067		12,124
2/28/2001		30,810		25,334			24,728		12,242
5/31/2001		31,113		25,404			24,514		12,375
8/31/2001		29,274		23,786			22,316		12,361
11/30/2001		28,613		23,111			21,975		12,354
2/28/2002		28,826		23,225			21,266		12,382
5/31/2002		30,788		24,700			21,514		12,521
8/31/2002		26,985		21,503			18,550		12,584
11/30/2002		27,405		21,693			18,697		12,625
2/28/2003		25,681		20,237			16,961		12,751
5/31/2003		29,144		22,806			19,487		12,779
8/31/2003		31,622		24,576			20,680		12,855
11/30/2003		35,220		27,230			22,391		12,848
2/29/2004		39,110		30,063			24,603		12,967
5/31/2004		37,996		29,064			24,197		13,169
8/31/2004		38,489		29,275			24,018		13,196
11/30/2004		43,044		32,485			26,414		13,301
2/28/2005		45,627		34,128			27,680		13,357
5/31/2005		44,120		32,857			27,074		13,538
8/31/2005		47,417		35,102			28,507		13,677
11/30/2005		49,405		36,422			29,519		13,760
2/28/2006		53,238		38,938			31,500		13,837
5/31/2006		54,442		39,665			32,097		14,102
8/31/2006		56,740		41,006			33,164		14,199
11/30/2006		60,955		43,831			35,678		14,032
2/28/2007		62,462		44,658			36,674		14,171
5/31/2007		69,460		49,420			40,162		14,481
8/31/2007		69,153		48,779			38,979		14,479
11/30/2007		73,901		51,855			40,406		14,636

[end mountain chart]

Year ended
November 30		1993	6	1994			1995		1996		1997		1998		1999		2000
Total value
Dividends
reinvested	$	144			295			421		506		488		478		440		577
Value at year-end1	$	10,782			11,592			13,841		17,118		19,917		23,007		27,396		29,142
WGI total return		7.8	%		7.5			19.4		23.7		16.4		15.5		19.1		6.4
Year ended
November 30	2001			2002			2003		2004		2005		2006		2007
Total value
Dividends
reinvested		578			569			679		914		1,043		1,315		1,633
Value at year-end1		28,613			27,405			35,220		43,044		49,405		60,955		73,901
WGI total return		(1.8	)		(4.2	)		28.5		22.2		14.8		23.4		21.2

Average annual total return for fund’s lifetime 14.6%²

¹ As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $25,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.

² Includes reinvested dividends of $10,080 and reinvested capital gain distributions of $15,453.

³ Results calculated with capital gains reinvested.

⁴ The MSCI World Index is unmanaged and includes reinvested dividends, but does not reflect the effect of sales charges, commissions or expenses.

⁵ Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics.

⁶ For the period March 26, 1993 (when the fund began operations), through November 30, 1993.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment (for periods ended November 30, 2007)*
	1 year			5 years			10 years
Class A shares		14.27	%		20.51	%		13.34	%
*Assumes reinvestment of all distributions and payment of the maximum 5.75% sales charge.

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 pages 22 and 23 for details.

Other share class results

Class B, Class C, Class F and Class 529

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

Average annual total returns for periods ended December 31, 2007 (the most recent calendar quarter-end):
	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		11.63	%		21.20	%		11.28	%
Not reflecting CDSC		16.63			21.39			11.28
Class C shares— first sold 3/15/01
Reflecting CDSC, maximum of 1%,
payable only if shares are sold within
one year of purchase		15.59			21.32			13.37
Not reflecting CDSC		16.59			21.32			13.37
Class F shares*— first sold 3/15/01
Not reflecting annual asset-based fee
charged by sponsoring firm		17.50			22.28			14.26
Class 529-A shares†— first sold 2/15/02
Reflecting 5.75% maximum sales charge		10.71			20.80			16.11
Not reflecting maximum sales charge		17.46			22.25			17.29
Class 529-B shares†— first sold 2/21/02
Reflecting applicable CDSC, maximum of 5%,
payable only if shares are sold
within six years of purchase		11.47			21.01			16.55
Not reflecting CDSC		16.47			21.20			16.63
Class 529-C shares†— first sold 2/22/02
Reflecting CDSC, maximum of 1%,
payable only if shares are sold within
one year of purchase		15.49			21.21			16.63
Not reflecting CDSC		16.49			21.21			16.63
Class 529-E shares*†— first sold 3/4/02		17.08			21.84			16.40
Class 529-F shares*†— first sold 9/17/02
Not reflecting annual asset-based fee
charged by sponsoring firm		17.67			22.32			21.70
* 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.

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 pages 22 and 23 for details.

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

[photo of a train inside a train station]

A strategy for global investing

Global investing has flourished in recent years as investors reach beyond their borders to beef up portfolios. International buyers have steadily increased their purchases of U.S. securities, even as Americans are investing more of their savings overseas. In fact, roughly one in four debt securities and one in five equities today are owned by an investor outside the local issuing market, according to a recent report by McKinsey & Company.

Investing across borders brings new opportunities for growth and diversification, but it can also increase the risk profile of a portfolio. In this article, we’ll take a closer look at how Capital World Growth and Income Fund approaches global investing, and how that has helped to limit risks over extended time periods.

Expanding portfolio opportunities

Global investing has been nourished by the lowering of trade and regulatory barriers, the formation of currency unions and the advancement of developing economies. As goods and services move more freely from one country to another, so does capital. This process enables corporations to expand operations, which, in turn, can help to advance trade and grow earnings. The result has been a world of new opportunities, not only for enterprising companies, but also for individuals eager to diversify their portfolios and access burgeoning markets.

While opportunities abound, investing beyond one’s borders also introduces challenges and risks that may not be well understood — even by successful corporations. Among them are differing market practices, and legal and accounting standards. Liquidity (the ability to readily buy or sell a security) can vary from country to country, and the ability to research and monitor companies may be hampered by language barriers and poor disclosure. The prospectus for Capital World Growth and Income Fund provides a more complete listing of the potential risks attached to global investing.

The scope of these obstacles may be daunting, but they should not be a deterrent. Instead, investors can take a lesson from savvy corporate pioneers. Expanding global businesses know that an experienced partner and a reliable strategy can help navigate the impediments and maximize the benefits of venturing overseas. With Capital World Growth and Income Fund, your experienced partner is the fund’s adviser, Capital Research and Management Company (CRMC). The fund’s strategy is to invest primarily in attractively valued, well-established companies that pay dividends and have good long-term growth potential. Let’s take a closer look at this pairing and see how it has served shareholders over extended time periods.

[Begin Sidebar]

European highlights

[photo of Joerg Sponer]

Joerg Sponer

Investment analyst – European banks

Financials have always been a significant portion of portfolio holdings. Currently, a handful of European banks embody some of our highest conviction ideas in this sector. Joerg notes, “Major banks are good candidates for the fund because most are well-run companies with solid growth prospects. They also tend to pay attractive dividends.”

Earlier this decade, European banks were weakened by loan exposures to troubled telecom and technology companies. This led to high loan loss provisions and extensive cost restructuring. Since then, many of these banks have repaired their balance sheets and experienced strong earnings growth, aided by rising economic growth throughout Europe.

“We have been particularly attracted to banks that have potential for sustainable earnings growth from investments in developing countries. Banco Santander, a major Spanish bank, is one example. About 40% of its earnings come from Latin American holdings, notably banks in Brazil, Chile and Mexico. UniCredito Italiano is another example. This bank has numerous investments in Eastern Europe, where economies are experiencing robust growth as a result of the expanded European Monetary Union.” •

[photo of Caroline Randall]

Caroline Randall

Investment analyst – European utilities

Two German utilities, RWE and E.ON, are among the fund’s largest holdings. “These companies have benefited from aggressive cost cutting by management in recent years,” notes Caroline. “And a management’s practices and strategies are an important part of our company analysis.”

“From a fundamental perspective, both E.ON and RWE have steady and defensive earnings growth. This is because rising wholesale electricity prices are locked in with contracts.” As a result, both companies generate healthy cash flows that allow them to reward shareholders with relatively high dividend yields. “Dividends are a key measure of a company’s fundamental health and shareholder friendliness. They also help the fund meet its income objective.”

“I typically look for companies that have conservative balance sheets. This affords them a measure of flexibility in difficult times and sufficient room to grow as opportunities emerge. E.ON and RWE are both solid A-rated credits, and their managements are keen to preserve those credit profiles going forward.” •

[photo of David Riley]

David Riley

Investment analyst – European telecoms

“Our increased exposure to European telecoms is fairly recent,” explains David, “and comes from our fundamental reassessment of management and business prospects.”

In 1999 and 2000, European telecommunications companies ran into difficulties in racing to grow through acquisitions and from overpaying for mobile spectrums in auctions. Many companies seriously overstretched their balance sheets, leading to drastic stock price corrections. “As a result, many managers lost their jobs,” adds David, “and many companies had to raise new equity and implement tough balance sheet restructuring.”

Changes engineered by new management teams are beginning to show results. “Balance sheets are in much better shape today, and this means that prospects for shareholders are much better. Our largest holdings, KPN, France Telecom and Vodafone, now generate significant free cash flow, which allows for dividend growth and share buybacks. In most cases, our European telecom stock holdings offer dividend yields higher than 4% with excellent dividend growth prospects.”

“Our main European holdings are classic value propositions: beaten up, underappreciated companies that have implemented tough measures to restore financial strength and win back shareholder confidence.” •

[End Sidebar]

[Begin Pull Quote]

“Our main European holdings are classic value propositions: beaten up, under-appreciated companies that have implemented tough measures to restore financial strength and win back shareholder confidence.” — DAVID RILEY

[photo of a person holding a leather suitcase]

[End Pull Quote]

Decades of global experience

One advantage of a truly global portfolio is that it may invest in any company, in any market, wherever a compelling opportunity may be found. To do this successfully, however, requires a comprehensive understanding of world markets — not just those overseas, but domestic markets as well.

CRMC has been investing in U.S. stocks for nearly eight decades. It was also a pioneer in international investing more than 50 years ago — a time when most Americans were not investing in stocks of any kind. Capital was quick to recognize the potential for global investing, as well as the need to provide a framework with which to assess the vastly disparate markets of the world. To remedy this, Capital International (an affiliate of CRMC) launched the Capital International Indices, which provided a single source of information about the investment universe in international equities and several benchmark indexes for overseas markets. In 1986, Morgan Stanley partnered with Capital International, and the indexes were renamed MSCI. Its flagship, the MSCI World Index, serves as the primary benchmark for this fund and is the leading measure of global stock markets.

Today, CRMC employs more than 165 investment professionals who operate out of research offices worldwide. On a regular basis, these portfolio counselors and investment analysts meet with the heads of companies in their offices, their factories and their stores — wherever their operations may be located — to gain a better idea of the businesses and their prospects for growth. The research process may be time-consuming, but decades of investment experience have taught us that there is no substitute for evaluating a company inside and out, both on paper and in person.

A conservative approach

Building on the knowledge and experience of CRMC, Capital World Growth and Income Fund offers its shareholders a distinctly conservative approach to global investing. This approach recognizes the scope of risks attached to investing in multiple markets and strives to limit those risks through thorough research, broad diversification, a value orientation and an emphasis on well-established, well-run companies.

The fund’s portfolio is constructed company by company, one stock at a time, based on the fundamental analysis of our investment analysts. This process emphasizes the quantifiable merits of each holding and is indifferent to country or sector weightings. In other words, the fund is not modeled on indexes or allocation metrics. This company focus affords a great deal of leeway as to where the fund invests and helps portfolio counselors and analysts focus on longer term company trends instead of short-term market fluctuations. Additionally, this focus is enhanced by the participation of investment analysts who manage a portion of the fund’s assets by investing directly in their highest conviction recommendations.

Not all companies with sound fundamentals end up in the portfolio. Instead, portfolio counselors and analysts concentrate on larger companies with proven track records, such as the demonstrated ability to adapt to changing business conditions. Additionally, they gravitate toward company stocks that are undervalued by the market. This may occur when established companies pursue new business opportunities or restructure sluggish operations. The sidebar on page 7 highlights several recent examples culled from the portfolio.

Finding companies that meet these criteria can be a challenge, but that challenge is made easier by the fund’s global reach and its multiple portfolio counselor system. Because the portfolio is managed by several counselors — each manages a portion of the assets independently — the fund benefits from a variety of investment opinions and styles. Each portfolio counselor is free to concentrate on his or her best investment ideas. In most cases, these are generated by the fund’s analysts, who focus on industries and regions, but collectively canvas the world. The result is a portfolio of broad diversification generated by multiple opinions, high-conviction ideas and extensive research.

A time-tested strategy

The success of any investment strategy is measured in results. Over time, Capital World Growth and Income Fund has established an impressive track record, as evidenced by the results table on page 1. On a relative basis, the fund has delivered better returns over extended time periods than its primary benchmark or its peer group measure. Nonetheless, there have been periods when the fund lagged these reference points. Typically, these lagging periods have been relatively short in duration, lasting a month, quarter or year.

Part of the reason for these lags is that Capital World Growth and Income Fund does not chase short-term trends. Its investment strategy is designed for long-term investors seeking a measured approach to global investing. This strategy has not only delivered good long-term returns, it has done so with a considerably lower degree of volatility than its peer group or the leading global indexes, as can be seen in the diagram below.

Of course, we cannot promise that fund results will always produce such favorable comparisons. As we noted earlier, global investing is inherently subject to greater risks because of its international exposures. At the same time, those very risks compel us to maintain our fundamental analytic scrutiny and conservative investment strategy. We believe that this approach will continue to provide competitive results for our long-term investors. •

Fund results shown are past results for Class A shares and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices will vary, so investors may lose money. For 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.

[Begin Sidebar]

How WGI stacks up
(Lifetime results as of 11/30/07)	Average annual total return			Standard deviation
Capital World Growth and Income Fund (WGI)		15.06	%		11.73
MSCI World Index		9.98			13.11
Lipper Global Funds Index		9.80			13.12
MSCI EAFE Index		9.58			14.17
S&P 500		10.54			13.68
MSCI ACWI (All Country World Index) ex USA		10.08			14.49

Returns calculated from 3/26/93 at net asset value, with all distributions reinvested. Standard deviation calculated from 3/31/93, the month-end closest to the fund’s inception (see below).

[photo of the inside of a train station]

Higher returns, lower volatility

Over its lifetime, Capital World Growth and Income Fund has delivered attractive returns with relatively low volatility, as shown in the table above and plotted in the diagram at right. For comparison, results are also shown for five major indexes.

Standard deviation is a common measure of volatility reflecting how returns have varied from the mean over time. A low number signifies lower volatility.

[begin scatter chart]

	Volatility	Average annual total return
WGI	11.73%	15.06%
S&P 500	13.68%	10.54%
MSCI World Index	13.11%	9.98%
MSCI EAFE Index	14.17%	9.58%
MSCI ACWI ex USA Index	14.49%	10.08%
S&P/Citigroup Global/World Indexes	14.44%	11.33%
Lipper Global Funds Index	13.12%	9.80%

[end scatter chart]

Volatility measured by annualized standard deviation (based on monthly returns) over the fund’s lifetime, calculated at net asset value by Lipper. Standard & Poor’s 500 Composite Index is a measure of large-company U.S. stocks. MSCI World Index measures 23 developed-country stock markets. MSCI ACWI (All Country World Index) ex USA measures 47 developed- and developing-country indexes. MSCI EAFE Index measures 21 developed markets in Europe, Australasia and the Far East. Lipper Global Funds Index measures the 30 largest global mutual funds. Indexes are unmanaged and include reinvested distributions, but do not reflect the effect of sales charges, commissions or expenses.

[End Sidebar]

Summary investment portfolio,November 30, 2007

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

[begin pie chart]

	Percent
	of net
Industry sector diversification	assets
Financials		20.13	%
Telecommunication services		9.63
Consumer discretionary		8.41
Utilities		8.05
Energy		7.41
Other industries		34.17
Convertible securities		.33
Bonds & notes		.01
Short-term securities & other assets less liabilities		11.86

[end pie chart]

Country diversification (percent of net assets)
Euro zone	29.7	%
United States	18.2
United Kingdom	8.4
Switzerland	3.5
Taiwan	3.3
South Korea	3.0
Brazil	2.8
Australia	2.7
Japan	2.4
Other countries	14.1
Bonds, short-term securities & other assets less liabilities	11.9
*Countries using the euro as a common currency; those represented in the fund's portfolio are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands and Spain.

	Shares			Market			Percent
				value			of net
Common stocks  - 87.80%					(000	)	assets
Financials  - 20.13%
Banco Santander, SA		99,504,804		$	2,136,761			1.89	%
HSBC Holdings PLC (United Kingdom)		48,207,769			823,136
HSBC Holdings PLC (Hong Kong)		19,779,200			335,559			1.02
UniCredito Italiano SpA		99,312,640			848,101			.75
AXA SA		18,457,722			756,171			.67
Bank of America Corp.		15,403,650			710,570			.63
Citigroup Inc.		21,062,500			701,381			.62
Banco Itaú Holding Financeira SA, preferred nominative		25,062,300			693,529			.61
BNP Paribas SA		5,892,870			666,859			.59
Banco Bradesco SA, preferred nominative		20,697,838			658,378			.58
Shinhan Financial Group Co., Ltd.		11,967,200			651,126			.57
Lloyds TSB Group PLC		59,635,000			607,272			.54
Fannie Mae		3,265,000			125,441			.11
Other securities					13,096,620			11.55
					22,810,904			20.13
Telecommunication services  - 9.63%
Koninklijke KPN NV		81,518,700			1,501,820			1.33
Vodafone Group PLC		297,822,328			1,116,303			.98
AT&T Inc.		27,715,874			1,059,024			.93
France Télécom SA		26,826,626			1,021,114			.90
Singapore Telecommunications Ltd.		268,448,810			720,120			.64
Verizon Communications Inc.		14,500,000			626,545			.55
Telenor ASA (1)		26,355,000			613,234			.54
Telefónica, SA		17,753,500			596,596			.53
Other securities					3,660,334			3.23
					10,915,090			9.63
Consumer discretionary  - 8.41%
Vivendi SA		25,536,300			1,175,764			1.04
DaimlerChrysler		8,914,000			909,370			.80
Renault SA		5,977,331			871,933			.77
Cie. Générale des Etablissements Michelin, Class B		7,169,000			852,070			.75
OPAP (Greek Organization of Football Prognostics) SA		15,949,410			621,360			.55
Other securities					5,098,978			4.50
					9,529,475			8.41
Utilities  - 8.05%
E.ON AG		13,038,214			2,664,419			2.35
RWE AG		15,427,700			2,113,129			1.86
SUEZ SA		12,417,260			828,356			.73
Veolia Environnement		7,548,877			699,462			.62
Other securities					2,811,730			2.49
					9,117,096			8.05
Energy  - 7.41%
Royal Dutch Shell PLC, Class B		20,949,312			841,252
Royal Dutch Shell PLC, Class A (ADR)		5,220,000			425,065
Royal Dutch Shell PLC, Class A		7,850,000			317,451
Royal Dutch Shell PLC, Class B (ADR)		1,142,148			92,103			1.48
TOTAL SA		10,079,000			816,514
TOTAL SA (ADR)		2,250,000			182,070			.88
Chevron Corp.		9,376,962			823,016			.73
Petróleo Brasileiro SA - Petrobras, preferred nominative (ADR)		8,481,000			688,403			.61
Other securities					4,215,447			3.71
					8,401,321			7.41
Materials  - 7.22%
Bayer AG, non-registered shares		20,853,500			1,723,323			1.52
China Steel Corp.		574,730,229			757,044			.67
Linde AG		4,639,800			608,562			.54
Other securities					5,092,146			4.49
					8,181,075			7.22
Consumer staples  - 6.19%
Diageo PLC		73,775,587			1,658,858			1.46
Nestlé SA		1,774,500			853,760			.75
Tesco PLC		77,505,563			763,739			.67
Other securities					3,736,976			3.31
					7,013,333			6.19
Health care  - 5.98%
Novo Nordisk A/S, Class B		12,087,200			1,539,301			1.36
Roche Holding AG		7,984,016			1,524,504			1.35
Abbott Laboratories		10,206,000			586,947			.52
Other securities					3,118,967			2.75
					6,769,719			5.98
Information technology  - 5.54%
Microsoft Corp.		48,104,000			1,616,294			1.43
Taiwan Semiconductor Manufacturing Co. Ltd.		369,563,212			694,112
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		16,194,748			160,652			.75
Other securities					3,806,860			3.36
					6,277,918			5.54
Industrials  - 5.14%
General Electric Co.		24,040,100			920,495			.81
Siemens AG		5,248,992			798,563			.70
United Parcel Service, Inc., Class B		9,183,600			676,648			.60
Other securities					3,432,414			3.03
					5,828,120			5.14
MISCELLANEOUS  -  4.10%
Other common stocks in initial period of acquisition					4,643,427			4.10
Total common stocks (cost: $74,469,001,000)					99,487,478			87.80
Convertible securities  - 0.33%
Other - 0.33%
Other securities					378,008			.33
Total convertible securities (cost: $400,171,000)					378,008			.33
Bonds & notes  - 0.01%
Other - 0.01%
Other securities					10,169			.01
Total bonds & notes (cost: $14,955,000)					10,169			.01
	Principal
	amount
Short-term securities  - 11.67%		(000	)
Federal Home Loan Bank 4.17%-4.68% due 12/4/2007-5/9/2008	$	1,968,678			1,953,530			1.72
Fannie Mae 4.12%-4.67% due 12/3/2007-5/2/2008		1,061,274			1,054,277			.93
Freddie Mac 4.23%-4.91% due 12/4/2007-3/20/2008		984,470			978,553			.86
General Electric Capital Corp. 4.83%-4.88% due 2/5-2/28/2008		500,000			494,910			.44
HSBC USA Inc. 4.82%-5.05% due 1/3-2/27/2008		150,000			148,513			.13
Other securities					8,593,897			7.59
					13,223,680			11.67
Total short-term securities (cost: $13,221,462,000)					13,223,680			11.67
Total investment securities (cost: $88,105,589,000)					113,099,335			99.81
Other assets less liabilities					210,322			.19
Net assets				$	113,309,657			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, including securities purchased in transactions exempt from registration under the Securities Act of 1933.  Some of these securities (with aggregate value of $3,697,102,000, which represented 3.26% of the net assets of the fund) may be resold in the United States in transactions exempt from registration, normally to qualified institutional buyers.  One of these securities (with market value of $39,912,000, which represented .04% of the net asset of the fund) may be subject to legal or contractual restrictions on resale.  Also includes securities (with aggregate value of $790,020,000), which were valued under fair value procedures adopted by authority of the board of directors.

Investments in affiliates

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the

fund's holdings in that company represent 5% or more of the outstanding voting shares of that company.

The market value of the fund's holdings in affiliated companies is included in "Other securities"

under their respective industry sectors in the preceding summary investment portfolio. Further details on these

holdings and related transactions during the year ended November 30, 2007, appear below.

	Beginning shares						Ending  shares		Dividend income			Market value of affiliates at 11/30/07
			Additions		Reductions					(000	)		(000	)
James Hardie Industries NV		23,136,900		2,575,000		2,327,553		23,384,347	$	6,103		$	129,893
Spark Infrastructure		56,535,632		-		-		56,535,632		7,076			98,449
Koninklijke DSM NV (2)		10,097,356		13,769		6,431,000		3,680,125		11,686			-
									$	24,865		$	228,342
(2)Unaffiliated issuer at 11/30/2007.

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

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

ADR = American Depositary Receipts

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities
at November 30, 2007	(dollars and shares in thousands, except per-share amounts)
Assets:
Investment securities at market:
Unaffiliated issuers (cost: $87,926,827)	$	112,870,993
Affiliated issuers (cost: $178,762)		228,342	$	113,099,335
Cash denominated in non-U.S. currencies (cost: $6,434)				6,443
Cash				16,107
Receivables for:
Sales of investments		311,143
Sales of fund's shares		274,897
Dividends and interest		214,265
Other		509		800,814
				113,922,699
Liabilities:
Payables for:
Purchases of investments		427,486
Repurchases of fund's shares		80,647
Investment advisory services		30,603
Services provided by affiliates		69,734
Directors' deferred compensation		1,795
Other		2,777		613,042
Net assets at November 30, 2007			$	113,309,657
Net assets consist of:
Capital paid in on shares of capital stock			$	79,579,695
Undistributed net investment income				894,607
Undistributed net realized gain				7,840,064
Net unrealized appreciation				24,995,291
Net assets at November 30, 2007			$	113,309,657

Total authorized capital stock - 4,000,000 shares, $.01 par value (2,336,802 total shares outstanding)
	Net assets		Shares outstanding		Net asset value per share*
						*
Class A	$	82,898,974		1,707,218	$	48.56
Class B		4,731,389		98,018		48.27
Class C		9,909,486		205,958		48.11
Class F		6,406,389		132,132		48.48
Class 529-A		1,791,273		36,961		48.46
Class 529-B		214,372		4,440		48.28
Class 529-C		502,446		10,410		48.27
Class 529-E		82,466		1,704		48.40
Class 529-F		42,870		884		48.50
Class R-1		153,400		3,181		48.22
Class R-2		1,245,863		25,895		48.11
Class R-3		1,901,083		39,341		48.32
Class R-4		1,508,942		31,126		48.48
Class R-5		1,920,704		39,534		48.58
(*) 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 $51.52 and $51.42, respectively.
See Notes to Financial Statements

Statement of operations
for the year ended November 30, 2007	(dollars in thousands)
Investment income:
Income:
Dividends (net of non-U.S. taxes of $247,997; also includes $24,865 from affiliates)	$	2,936,106
Interest (net of non-U.S. taxes of $1,325)		402,467		$	3,338,573
Fees and expenses(*):
Investment advisory services		360,645
Distribution services		331,668
Transfer agent services		65,825
Administrative services		31,842
Reports to shareholders		2,483
Registration statement and prospectus		3,906
Postage, stationery and supplies		6,422
Directors' compensation		964
Auditing and legal		321
Custodian		16,815
State and local taxes		813
Other		2,457
Total fees and expenses before reimbursements/waivers		824,161
Less reimbursements/waivers of fees and expenses:
Investment advisory services		36,064
Administrative services		191
Total fees and expenses after reimbursements/waivers					787,906
Net investment income					2,550,667
Net realized gain and unrealized appreciation on investments and non-U.S. currency:
Net realized gain (loss) on:
Investments (including $69,359 net gain from affiliates)		8,118,979
Non-U.S. currency transactions		(16,777	)		8,102,202
Net unrealized appreciation on:
Investments		7,632,204
Non-U.S. currency translations		881			7,633,085
Net realized gain and unrealized appreciation on investments and non-U.S. currency					15,735,287
Net increase in net assets resulting from operations				$	18,285,954
(*) 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)
	Year ended November 30,
	2007			2006
Operations:
Net investment income	$	2,550,667		$	1,523,017
Net realized gain on investments and non-U.S. currency transactions		8,102,202			3,643,487
Net unrealized appreciation on investments and non-U.S. currency translations		7,633,085			8,412,601
Net increase in net assets resulting from operations		18,285,954			13,579,105
Dividends and distributions paid to shareholders:
Dividends from net investment income and non-U.S. currency gain		(2,206,736	)		(1,457,079	)
Distributions from net realized gain on investments		(3,391,660	)		(2,018,554	)
Total dividends and distributions paid to shareholders		(5,598,396	)		(3,475,633	)
Net capital share transactions		20,657,667			18,681,372
Total increase in net assets		33,345,225			28,784,844
Net assets:
Beginning of year		79,964,432			51,179,588
End of year (including undistributed net investment income: $894,607 and $541,515, respectively)	$	113,309,657		$	79,964,432
See Notes to Financial Statements

Notes to financial statements

1.   Organization and significant accounting policies

Organization– Capital World Growth and Income 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 while providing current income. It invests on a global basis in a diversified portfolio consisting primarily of common stocks and other equity securities.

The fund offers 14 share classes consisting of four retail share classes, five 529 college savings plan share classes and five retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) 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.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under procedures adopted by authority of the fund's board of directors. Market quotations may be considered unreliable if events occur that materially affect the value of securities (particularly non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions.

Security transactions and related investment income– Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. 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. On 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.

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 year ended November 30, 2007, there were no non-U.S. taxes paid on realized gains. As of November 30, 2007, non-U.S. taxes provided on unrealized gains were $660,000.

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. Therefore, no federal income tax provision is required.

The fund adopted the provisions of Financial Accounting Standards Board Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes, on June 29, 2007. The implementation of FIN 48 resulted in no material liability for unrecognized tax benefits and no material change to the beginning net asset value of the fund.

As of and during the period ended November 30, 2007, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2003, by state tax authorities for tax years before 2002 and by non-U.S. tax authorities for tax years before 2001.

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; and unrealized appreciation of certain investments in non-U.S. securities. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes. The fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

During the year ended November 30, 2007, the fund reclassified $9,808,000 from undistributed net realized gain to undistributed net investment income; and reclassified $647,000 from undistributed net investment income and $247,735,000 from undistributed net realized gain to capital paid in on shares of capital stock to align financial reporting with tax reporting.

As of November 30, 2007, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Undistributed ordinary income	$1,089,932
Post-October non-U.S. currency loss deferrals (realized during the period November 1, 2007, through November 30, 2007)*	(1,940)
Undistributed long-term capital gain	7,678,336
Gross unrealized appreciation on investment securities	26,871,031
Gross unrealized depreciation on investment securities	(1,907,147)
Net unrealized appreciation on investment securities	24,963,884
Cost of investment securities	88,135,451
*These deferrals are considered incurred in the subsequent year.

The tax character of distributions paid to shareholders was as follows (dollars in thousands):

	Year ended November 30, 2007						Year ended November 30, 2006
	Ordinary income		Long-term capital gains		Total distributions paid		Ordinary income		Long-term capital gains		Total distributions paid
Share class
Class A	$	1,721,055	$	2,548,941	$	4,269,996	$	1,173,972	$	1,566,910	$	2,740,882
Class B		68,890		146,714		215,604		44,562		85,725		130,287
Class C		134,662		281,690		416,352		79,181		151,292		230,473
Class F		124,060		177,513		301,573		74,253		96,470		170,723
Class 529-A		33,526		46,762		80,288		18,835		23,467		42,302
Class 529-B		2,797		6,071		8,868		1,627		3,250		4,877
Class 529-C		6,343		13,111		19,454		3,386		6,522		9,908
Class 529-E		1,397		2,269		3,666		819		1,202		2,021
Class 529-F		790		958		1,748		411		472		883
Class R-1		1,869		3,716		5,585		950		1,761		2,711
Class R-2		16,676		34,264		50,940		9,296		17,522		26,818
Class R-3		30,911		49,179		80,090		16,829		25,037		41,866
Class R-4		26,793		36,915		63,708		14,171		17,707		31,878
Class R-5		36,967		43,557		80,524		18,787		21,217		40,004
Total	$	2,206,736	$	3,391,660	$	5,598,396	$	1,457,079	$	2,018,554	$	3,475,633

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 ^SM ("AFS"), the fund’s transfer agent, and American Funds Distributors, ^SM Inc. ("AFD"), the principal underwriter of the fund’s shares.

Investment advisory services– The Investment Advisory and Service Agreement with CRMC provided for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.600% on the first $500 million of daily net assets and decreasing to 0.352% on such assets in excess of $89 billion. The board of directors approved an amended agreement effective November 1, 2007, decreasing the annual rate on net assets in excess of $115 billion from a rate of 0.352% to a rate of 0.350%. CRMC is currently waiving 10% of investment advisory services fees. During the year ended November 30, 2007, total investment advisory services fees waived by CRMC were $36,064,000. As a result, the fee shown on the accompanying financial statements of $360,645,000, which was equivalent to an annualized rate of 0.372%, was reduced to $324,581,000, or 0.335% 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. 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 November 30, 2007, 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 year ended November 30, 2007, the total administrative services fees paid by CRMC were $1,000 and $190,000 for Class R-1 and R-2, 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 529 college savings 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 on the previous page for the year ended November 30, 2007, 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	$166,230	$62,070	Not applicable	Not applicable	Not applicable
Class B	41,164	3,755	Not applicable	Not applicable	Not applicable
Class C	82,688	Included in administrative services	$10,449	$1,147	Not applicable
Class F	13,135		4,452	540	Not applicable
Class 529-A	2,814		1,244	154	$ 1,450
Class 529-B	1,789		154	39	179
Class 529-C	4,057		348	73	406
Class 529-E	343		59	7	69
Class 529-F	-		27	3	32
Class R-1	1,170		133	51	Not applicable
Class R-2	7,734		1,524	2,943	Not applicable
Class R-3	7,613		2,244	829	Not applicable
Class R-4	2,931		1,730	78	Not applicable
Class R-5	Not applicable		1,451	27	Not applicable
Total	$331,668	$65,825	$23,815	$5,891	$2,136

Directors’ deferred 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 $964,000, shown on the accompanying financial statements, includes $584,000 in current fees (either paid in cash or deferred) and a net increase of $380,000 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
Year ended November 30, 2007
Class A	$	15,978,646		355,806	$	4,099,199		95,975	$	(6,840,224	)		(151,977	)	$	13,237,621		299,804
Class B		881,784		19,769		207,589		4,902		(336,173	)		(7,510	)		753,200		17,161
Class C		2,710,096		60,784		397,080		9,401		(848,748	)		(19,024	)		2,258,428		51,161
Class F		2,141,030		47,429		270,384		6,335		(868,636	)		(19,236	)		1,542,778		34,528
Class 529-A		503,152		11,260		80,275		1,878		(73,953	)		(1,641	)		509,474		11,497
Class 529-B		47,577		1,066		8,865		209		(7,205	)		(161	)		49,237		1,114
Class 529-C		154,535		3,463		19,450		459		(29,004	)		(647	)		144,981		3,275
Class 529-E		21,196		476		3,666		86		(4,780	)		(106	)		20,082		456
Class 529-F		16,788		374		1,748		41		(2,097	)		(47	)		16,439		368
Class R-1		76,159		1,695		5,485		129		(29,883	)		(667	)		51,761		1,157
Class R-2		507,400		11,416		50,887		1,204		(241,974	)		(5,404	)		316,313		7,216
Class R-3		877,597		19,552		79,978		1,879		(394,129	)		(8,779	)		563,446		12,652
Class R-4		791,684		17,589		63,687		1,488		(363,024	)		(8,070	)		492,347		11,007
Class R-5		771,389		17,126		76,610		1,784		(146,439	)		(3,265	)		701,560		15,645
Total net increase
(decrease)	$	25,479,033		567,805	$	5,364,903		125,770	$	(10,186,269	)		(226,534	)	$	20,657,667		467,041
Year ended November 30, 2006
Class A	$	14,421,402		369,802	$	2,627,089		71,294	$	(4,325,381	)		(110,788	)	$	12,723,110		330,308
Class B		943,607		24,326		125,519		3,435		(215,465	)		(5,546	)		853,661		22,215
Class C		2,294,884		59,263		220,045		6,037		(525,031	)		(13,562	)		1,989,898		51,738
Class F		1,570,048		40,122		153,458		4,169		(500,309	)		(12,866	)		1,223,197		31,425
Class 529-A		364,872		9,376		42,297		1,148		(35,371	)		(904	)		371,798		9,620
Class 529-B		42,008		1,083		4,877		134		(3,838	)		(99	)		43,047		1,118
Class 529-C		109,350		2,814		9,908		271		(13,867	)		(356	)		105,391		2,729
Class 529-E		17,366		448		2,021		55		(2,281	)		(58	)		17,106		445
Class 529-F		8,449		217		883		24		(1,622	)		(42	)		7,710		199
Class R-1		40,698		1,045		2,653		73		(11,512	)		(297	)		31,839		821
Class R-2		355,459		9,179		26,793		735		(121,626	)		(3,134	)		260,626		6,780
Class R-3		515,578		13,241		41,837		1,141		(184,147	)		(4,734	)		373,268		9,648
Class R-4		427,872		10,967		31,844		864		(136,093	)		(3,500	)		323,623		8,331
Class R-5		401,305		10,365		37,512		1,015		(81,719	)		(2,098	)		357,098		9,282
Total net increase
(decrease)	$	21,512,898		552,248	$	3,326,736		90,395	$	(6,158,262	)		(157,984	)	$	18,681,372		484,659
* 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 $38,161,711,000 and $27,354,083,000, respectively, during the year ended November 30, 2007.

Financial highlights

			Income from investment operations(1)						Dividends and distributions
	Net asset value, beginning of year		Net investment income (2)		Net gains on securities (both realized and unrealized)		Total from investment operations		Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of year		Total return (3) (4)			Net assets, end of year (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 to average net assets (2) (4)
Class A:
Year ended 11/30/2007	$	42.82	$	1.24	$	7.40	$	8.64	$	(1.10	)	$	(1.80	)	$	(2.90	)	$	48.56		21.23	%	$	82,899		.73	%		.69	%		2.75	%
Year ended 11/30/2006		36.99		.96		7.26		8.22		(.95	)		(1.44	)		(2.39	)		42.82		23.38			60,265		.73			.69			2.44
Year ended 11/30/2005		33.80		.84		3.95		4.79		(.80	)		(.80	)		(1.60	)		36.99		14.78			39,841		.76			.73			2.41
Year ended 11/30/2004		28.62		.70		5.50		6.20		(.73	)		(.29	)		(1.02	)		33.80		22.21			25,137		.77			.77			2.28
Year ended 11/30/2003		22.80		.65		5.73		6.38		(.56	)		-			(.56	)		28.62		28.52			14,703		.81			.81			2.70
Class B:
Year ended 11/30/2007		42.58		.89		7.36		8.25		(.76	)		(1.80	)		(2.56	)		48.27		20.29			4,731		1.50			1.46			1.98
Year ended 11/30/2006		36.79		.64		7.24		7.88		(.65	)		(1.44	)		(2.09	)		42.58		22.40			3,443		1.53			1.49			1.65
Year ended 11/30/2005		33.63		.56		3.93		4.49		(.53	)		(.80	)		(1.33	)		36.79		13.91			2,158		1.55			1.52			1.62
Year ended 11/30/2004		28.50		.46		5.47		5.93		(.51	)		(.29	)		(.80	)		33.63		21.25			1,265		1.55			1.55			1.52
Year ended 11/30/2003		22.72		.45		5.72		6.17		(.39	)		-			(.39	)		28.50		27.52			537		1.58			1.58			1.85
Class C:
Year ended 11/30/2007		42.46		.87		7.32		8.19		(.74	)		(1.80	)		(2.54	)		48.11		20.22			9,910		1.55			1.51			1.94
Year ended 11/30/2006		36.69		.62		7.22		7.84		(.63	)		(1.44	)		(2.07	)		42.46		22.35			6,572		1.58			1.54			1.60
Year ended 11/30/2005		33.54		.54		3.93		4.47		(.52	)		(.80	)		(1.32	)		36.69		13.83			3,781		1.61			1.57			1.56
Year ended 11/30/2004		28.43		.45		5.45		5.90		(.50	)		(.29	)		(.79	)		33.54		21.17			1,836		1.62			1.61			1.46
Year ended 11/30/2003		22.68		.42		5.71		6.13		(.38	)		-			(.38	)		28.43		27.40			615		1.65			1.65			1.71
Class F:
Year ended 11/30/2007		42.76		1.23		7.38		8.61		(1.09	)		(1.80	)		(2.89	)		48.48		21.22			6,406		.75			.71			2.73
Year ended 11/30/2006		36.94		.94		7.26		8.20		(.94	)		(1.44	)		(2.38	)		42.76		23.35			4,174		.76			.72			2.41
Year ended 11/30/2005		33.75		.81		3.95		4.76		(.77	)		(.80	)		(1.57	)		36.94		14.72			2,445		.82			.78			2.35
Year ended 11/30/2004		28.59		.68		5.48		6.16		(.71	)		(.29	)		(1.00	)		33.75		22.09			1,243		.86			.85			2.21
Year ended 11/30/2003		22.78		.61		5.75		6.36		(.55	)		-			(.55	)		28.59		28.43			470		.89			.89			2.49
Class 529-A:
Year ended 11/30/2007		42.75		1.21		7.37		8.58		(1.07	)		(1.80	)		(2.87	)		48.46		21.13			1,791		.80			.76			2.69
Year ended 11/30/2006		36.93		.93		7.26		8.19		(.93	)		(1.44	)		(2.37	)		42.75		23.33			1,089		.79			.75			2.39
Year ended 11/30/2005		33.75		.81		3.94		4.75		(.77	)		(.80	)		(1.57	)		36.93		14.68			585		.83			.80			2.33
Year ended 11/30/2004		28.59		.68		5.48		6.16		(.71	)		(.29	)		(1.00	)		33.75		22.08			272		.86			.85			2.21
Year ended 11/30/2003		22.78		.63		5.73		6.36		(.55	)		-			(.55	)		28.59		28.43			93		.87			.87			2.55
Class 529-B:
Year ended 11/30/2007		42.59		.84		7.37		8.21		(.72	)		(1.80	)		(2.52	)		48.28		20.15			214		1.61			1.58			1.87
Year ended 11/30/2006		36.80		.60		7.23		7.83		(.60	)		(1.44	)		(2.04	)		42.59		22.25			142		1.64			1.60			1.53
Year ended 11/30/2005		33.64		.51		3.93		4.44		(.48	)		(.80	)		(1.28	)		36.80		13.71			81		1.70			1.67			1.46
Year ended 11/30/2004		28.51		.40		5.48		5.88		(.46	)		(.29	)		(.75	)		33.64		21.02			44		1.75			1.74			1.32
Year ended 11/30/2003		22.74		.40		5.73		6.13		(.36	)		-			(.36	)		28.51		27.28			18		1.78			1.78			1.64
Class 529-C:
Year ended 11/30/2007		42.59		.84		7.36		8.20		(.72	)		(1.80	)		(2.52	)		48.27		20.17			503		1.61			1.57			1.88
Year ended 11/30/2006		36.80		.60		7.24		7.84		(.61	)		(1.44	)		(2.05	)		42.59		22.27			304		1.63			1.59			1.54
Year ended 11/30/2005		33.63		.51		3.94		4.45		(.48	)		(.80	)		(1.28	)		36.80		13.73			162		1.69			1.65			1.47
Year ended 11/30/2004		28.50		.41		5.47		5.88		(.46	)		(.29	)		(.75	)		33.63		21.04			80		1.74			1.73			1.34
Year ended 11/30/2003		22.74		.41		5.71		6.12		(.36	)		-			(.36	)		28.50		27.25			29		1.76			1.76			1.66
Class 529-E:
Year ended 11/30/2007		42.69		1.07		7.38		8.45		(.94	)		(1.80	)		(2.74	)		48.40		20.76			83		1.10			1.07			2.38
Year ended 11/30/2006		36.89		.81		7.23		8.04		(.80	)		(1.44	)		(2.24	)		42.69		22.92			53		1.11			1.08			2.06
Year ended 11/30/2005		33.71		.69		3.94		4.63		(.65	)		(.80	)		(1.45	)		36.89		14.31			30		1.17			1.13			1.99
Year ended 11/30/2004		28.56		.57		5.48		6.05		(.61	)		(.29	)		(.90	)		33.71		21.67			14		1.21			1.20			1.86
Year ended 11/30/2003		22.77		.54		5.73		6.27		(.48	)		-			(.48	)		28.56		27.97			5		1.23			1.23			2.17
Class 529-F:
Year ended 11/30/2007	$	42.78	$	1.31	$	7.36	$	8.67	$	(1.15	)	$	(1.80	)	$	(2.95	)	$	48.50		21.36	%	$	43		.60	%		.57	%		2.89	%
Year ended 11/30/2006		36.95		1.00		7.27		8.27		(1.00	)		(1.44	)		(2.44	)		42.78		23.55			22		.61			.58			2.56
Year ended 11/30/2005		33.75		.83		3.94		4.77		(.77	)		(.80	)		(1.57	)		36.95		14.74			12		.76			.73			2.40
Year ended 11/30/2004		28.59		.65		5.49		6.14		(.69	)		(.29	)		(.98	)		33.75		21.98			6		.96			.95			2.12
Year ended 11/30/2003		22.80		.61		5.72		6.33		(.54	)		-			(.54	)		28.59		28.31			1		.98			.98			2.48
Class R-1:
Year ended 11/30/2007		42.55		.87		7.34		8.21		(.74	)		(1.80	)		(2.54	)		48.22		20.20			153		1.56			1.52			1.93
Year ended 11/30/2006		36.78		.62		7.21		7.83		(.62	)		(1.44	)		(2.06	)		42.55		22.31			86		1.60			1.56			1.58
Year ended 11/30/2005		33.63		.53		3.93		4.46		(.51	)		(.80	)		(1.31	)		36.78		13.78			44		1.63			1.58			1.54
Year ended 11/30/2004		28.50		.44		5.48		5.92		(.50	)		(.29	)		(.79	)		33.63		21.18			17		1.67			1.64			1.44
Year ended 11/30/2003		22.75		.38		5.77		6.15		(.40	)		-			(.40	)		28.50		27.43			5		1.78			1.66			1.48
Class R-2:
Year ended 11/30/2007		42.46		.86		7.33		8.19		(.74	)		(1.80	)		(2.54	)		48.11		20.18			1,246		1.59			1.53			1.93
Year ended 11/30/2006		36.70		.62		7.20		7.82		(.62	)		(1.44	)		(2.06	)		42.46		22.34			793		1.70			1.54			1.59
Year ended 11/30/2005		33.55		.54		3.93		4.47		(.52	)		(.80	)		(1.32	)		36.70		13.83			437		1.79			1.57			1.56
Year ended 11/30/2004		28.45		.45		5.45		5.90		(.51	)		(.29	)		(.80	)		33.55		21.15			201		1.93			1.60			1.47
Year ended 11/30/2003		22.73		.43		5.71		6.14		(.42	)		-			(.42	)		28.45		27.44			57		2.23			1.62			1.72
Class R-3:
Year ended 11/30/2007		42.63		1.07		7.36		8.43		(.94	)		(1.80	)		(2.74	)		48.32		20.77			1,901		1.10			1.07			2.39
Year ended 11/30/2006		36.83		.80		7.24		8.04		(.80	)		(1.44	)		(2.24	)		42.63		22.86			1,138		1.13			1.09			2.05
Year ended 11/30/2005		33.67		.69		3.94		4.63		(.67	)		(.80	)		(1.47	)		36.83		14.34			628		1.15			1.12			2.00
Year ended 11/30/2004		28.53		.57		5.47		6.04		(.61	)		(.29	)		(.90	)		33.67		21.67			285		1.20			1.19			1.87
Year ended 11/30/2003		22.77		.50		5.75		6.25		(.49	)		-			(.49	)		28.53		27.90			76		1.29			1.24			1.98
Class R-4:
Year ended 11/30/2007		42.76		1.21		7.38		8.59		(1.07	)		(1.80	)		(2.87	)		48.48		21.13			1,509		.81			.77			2.69
Year ended 11/30/2006		36.94		.92		7.26		8.18		(.92	)		(1.44	)		(2.36	)		42.76		23.28			860		.82			.78			2.35
Year ended 11/30/2005		33.76		.79		3.96		4.75		(.77	)		(.80	)		(1.57	)		36.94		14.68			435		.84			.81			2.29
Year ended 11/30/2004		28.60		.68		5.49		6.17		(.72	)		(.29	)		(1.01	)		33.76		22.10			182		.85			.84			2.22
Year ended 11/30/2003		22.81		.55		5.80		6.35		(.56	)		-			(.56	)		28.60		28.36			25		.90			.89			2.18
Class R-5:
Year ended 11/30/2007		42.84		1.36		7.38		8.74		(1.20	)		(1.80	)		(3.00	)		48.58		21.49			1,921		.50			.47			3.01
Year ended 11/30/2006		37.01		1.04		7.26		8.30		(1.03	)		(1.44	)		(2.47	)		42.84		23.63			1,023		.52			.48			2.64
Year ended 11/30/2005		33.81		.91		3.96		4.87		(.87	)		(.80	)		(1.67	)		37.01		15.06			541		.54			.50			2.63
Year ended 11/30/2004		28.63		.76		5.51		6.27		(.80	)		(.29	)		(1.09	)		33.81		22.49			287		.54			.54			2.48
Year ended 11/30/2003		22.81		.70		5.74		6.44		(.62	)		-			(.62	)		28.63		28.82			110		.56			.56			2.88

	Year ended November 30
	2007			2006			2005			2004			2003
Portfolio turnover rate for all classes of shares		30	%		30	%		26	%		21	%		27	%

(1) Based on average shares outstanding.

(2) For the year ended November 30, 2007, this column reflects the impact of a corporate action event that resulted in a one-time increase to net investment income.  If the corporate action had not occurred, the Class A net investment income per share and ratio of net income to average net assets would have been lower by $0.13 and 0.29%, respectively.  The impact to the other share classes would have been approximately the same.

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

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

See Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Capital World Growth and Income Fund, Inc.:

In our opinion, the accompanying statement of assets and liabilities, including the summary investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Capital World Growth and Income Fund, Inc. (the "Fund") at November 30, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities owned at November 30, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Los Angeles, California

January 8, 2008

Tax information                               

                                                                                                 unaudited

We are required to advise you within 60 days of the fund’s fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. The fund hereby designates the following amounts for the fund’s fiscal year ended November 30, 2007:

Long-term capital gains	$	3,391,660,000
Foreign taxes		242,772,000
Foreign source income		2,925,118,000
Qualified dividend income		100	%
Corporate dividends received deduction	$	575,654,000
U.S. government income that may be exempt from state taxation		18,225,000

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2008, to determine the calendar year amounts to be included on their 2007 tax returns. Shareholders should consult their tax advisers.

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 (June 1, 2007, through November 30, 2007).

Actual expenses:

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

Hypothetical example for comparison purposes:

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

Notes:

There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and 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.

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 6/1/2007		Ending account value 11/30/2007		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,063.95	$	3.47		.67	%
Class A -- assumed 5% return		1,000.00		1,021.71		3.40		.67
Class B -- actual return		1,000.00		1,059.86		7.49		1.45
Class B -- assumed 5% return		1,000.00		1,017.80		7.33		1.45
Class C -- actual return		1,000.00		1,059.57		7.74		1.50
Class C -- assumed 5% return		1,000.00		1,017.55		7.59		1.50
Class F -- actual return		1,000.00		1,063.92		3.62		.70
Class F -- assumed 5% return		1,000.00		1,021.56		3.55		.70
Class 529-A -- actual return		1,000.00		1,063.50		3.88		.75
Class 529-A -- assumed 5% return		1,000.00		1,021.31		3.80		.75
Class 529-B -- actual return		1,000.00		1,059.26		8.10		1.57
Class 529-B -- assumed 5% return		1,000.00		1,017.20		7.94		1.57
Class 529-C -- actual return		1,000.00		1,059.29		8.10		1.57
Class 529-C -- assumed 5% return		1,000.00		1,017.20		7.94		1.57
Class 529-E -- actual return		1,000.00		1,061.99		5.48		1.06
Class 529-E -- assumed 5% return		1,000.00		1,019.75		5.37		1.06
Class 529-F -- actual return		1,000.00		1,064.62		2.90		.56
Class 529-F -- assumed 5% return		1,000.00		1,022.26		2.84		.56
Class R-1 -- actual return		1,000.00		1,059.63		7.80		1.51
Class R-1 -- assumed 5% return		1,000.00		1,017.50		7.64		1.51
Class R-2 -- actual return		1,000.00		1,059.53		7.85		1.52
Class R-2 -- assumed 5% return		1,000.00		1,017.45		7.69		1.52
Class R-3 -- actual return		1,000.00		1,061.88		5.48		1.06
Class R-3 -- assumed 5% return		1,000.00		1,019.75		5.37		1.06
Class R-4 -- actual return		1,000.00		1,063.65		3.93		.76
Class R-4 -- assumed 5% return		1,000.00		1,021.26		3.85		.76
Class R-5 -- actual return		1,000.00		1,065.02		2.38		.46
Class R-5 -- assumed 5% return		1,000.00		1,022.76		2.33		.46

*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period (183), and divided by 365(to reflect the one-half year period).

Approval of Investment Advisory and Service Agreement

The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through October 31, 2008. The agreement was amended to add an additional advisory fee breakpoint if and when the fund’s net assets exceed $115 billion. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund under the agreement and other agreements, as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of the fund in light of its objective of providing long-term growth of capital with current income. They compared the fund’s total returns with those of other relevant funds (including the other funds that are the basis of the Lipper index for the category in which the fund is included) and market data such as relevant market indices. This report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee concluded that the fund’s short- and long-term results have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses remain significantly below those of most other relevant funds. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase and the 10% advisory fee waiver in effect since April 2005. In addition, they reviewed information regarding the advisory fees paid by institutional clients of an affiliate of CRMC with investment mandates similar to those of the fund. They noted that, although the fees paid by those clients generally were lower than those paid by the fund, the differences appropriately reflected the significant investment, operational and regulatory differences between advising mutual funds and institutional clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

4. Ancillary benefits

The board and the committee considered a variety of other benefits received by CRMC and its affiliates as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC’s institutional management affiliates. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments and attract and retain qualified personnel. They noted information previously received regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure and the impact of CRMC’s current 10% advisory fee waiver, reflecting benefits that may accrue from growth in assets. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

Board of directors and other officers

“Independent” directors
	Year first
	elected
	a director
Name and age	of the fund1	Principal occupation(s) during past five years
Joseph C. Berenato, 61	2005	Chairman of the Board, President and CEO, Ducommun Incorporated (aerospace components manufacturer)
H. Frederick Christie, 74	1993	Private investor; former President and CEO, The Mission Group (non-utility holding company, subsidiary of Southern California Edison Company)
Robert J. Denison, 66	2005	Chair, First Security Management (private investment)
Koichi Itoh, 67	2005	Executive Chairman of the Board, Itoh Building Co., Ltd. (building management); former President, Autosplice KK (electronics)
Merit E. Janow, 49	2001	Professor, Columbia University, School of International and Public Affairs; former Member, World Trade Organization Appellate Body
Mary Myers Kauppila, 53	1993	Private investor; Chairman of the Board and CEO,
Chairman of the Board		Ladera Management Company (venture capital and
(Independent and Non-Executive)		agriculture); former owner and President, Energy Investment, Inc.
Gail L. Neale, 72	1993	President, The Lovejoy Consulting Group, Inc. (a pro bono consulting group advising nonprofit organizations)
Robert J. O’Neill, Ph.D., 71	1993	Member of the Board of Directors, The Lowy Institute
		for International Policy Studies, Sydney, Australia;
		former Planning Director and acting CEO, United
		States Studies Centre, University of Sydney,
		Australia; former Deputy Chairman of the Council and
		Chairman of the International Advisory Panel,
		Graduate School of Government, University of
		Sydney, Australia; former Chairman of the Council,
		Australian Strategic Policy Institute; former Chichele
		Professor of the History of War and Fellow, All Souls
		College, University of Oxford; former Chairman of the
		Council, International Institute for Strategic Studies
Donald E. Petersen, 81	1993	Retired; former Chairman of the Board and CEO, Ford Motor Company
Stefanie Powers, 65	1993–1996	Actor, Producer; Co-founder and President of The
	1997	William Holden Wildlife Foundation; conservation consultant to Land Rover and Jaguar North America; author of The Jaguar Conservation Trust
Steadman Upham, 58	2001	President and Professor of Anthropology, The University of Tulsa; former President and Professor of Archaeology, Claremont Graduate University
Charles Wolf, Jr., Ph.D., 83	1993	Senior Economic Adviser and Corporate Chair in International Economics, The RAND Corporation; former Dean, The RAND Graduate School
“Independent” directors
	Number of
	portfolios
	in fund
	complex2
	overseen by
Name and age	director	Other directorships3 held by director
Joseph C. Berenato, 61	6	Ducommun Incorporated
H. Frederick Christie, 74	21	AECOM Technology Corporation; Ducommun Incorporated; IHOP Corporation; Southwest Water Company
Robert J. Denison, 66	5	None
Koichi Itoh, 67	5	None
Merit E. Janow, 49	4	The Nasdaq Stock Market, Inc.
Mary Myers Kauppila, 53	6	None
Chairman of the Board
(Independent and Non-Executive)
Gail L. Neale, 72	4	None
Robert J. O’Neill, Ph.D., 71	3	None
Donald E. Petersen, 81	2	None
Stefanie Powers, 65	2	None
Steadman Upham, 58	14	None
Charles Wolf, Jr., Ph.D., 83	2	None
“Interested” directors4
	Year first
	elected a
	director or	Principal occupation(s) during past five years and
Name, age and	officer of	positions held with affiliated entities or the principal
position with fund	the fund1	underwriter of the fund
Gina H. Despres, 66	1999	Senior Vice President, Capital Research and
Vice Chairman of the Board		Management Company; Senior Vice President, Capital Strategy Research, Inc.5
Paul G. Haaga, Jr., 59	1993	Vice Chairman of the Board, Capital Research and Management Company; Senior Vice President — Fixed Income, Capital Reasearch and Management Company; Director, The Capital Group Companies, Inc.5
“Interested” directors4
	Number of
	portfolios
	in fund
	complex2
Name, age and	overseen by
position with fund	director	Other directorships3 held by director
Gina H. Despres, 66	4	None
Vice Chairman of the Board
Paul G. Haaga, Jr., 59	14	None

The statement of additional information includes additional information about fund directors and is available without charge upon request by calling American Funds Service Company at 800/421-0180. The address for all directors and officers of the fund is 333 South Hope Street, Los Angeles,

CA 90071, Attention: Fund Secretary.

Other officers

	Year first
	elected	Principal occupation(s) during past five years and
Name, age and	an officer	positions held with affiliated entities
position with fund	of the fund1	or the principal underwriter of the fund
Stephen E. Bepler, 65	1993	Senior Vice President — Capital Research Global
President		Investors, Capital Research Company5
Darcy B. Kopcho, 55	2006	Senior Vice President — Capital Research Global
Executive Vice President		Investors, Capital Research and Management
		Company; Director, Capital Research and
		Management Company
Mark E. Denning, 50	1993	Senior Vice President — Capital Research Global
Senior Vice President		Investors, Capital Research Company;5 Director,
		Capital Research and Management Company;
		Director, Capital International Limited5
Michael J. Thawley, 57	2007	Senior Vice President, Capital Research and
Senior Vice President		Management Company; Senior Vice President,
		Capital Strategy Research, Inc.;5 former Australian
		Ambassador to the United States
Jeanne K. Carroll, 59	2001	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company5
Timothy P. Dunn, 46	2007	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research and Management
		Company
Alwyn Heong, 47	2007	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company;5
		Director, Capital Research Company5
David M. Riley, 40	2007	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research and Management
		Company
Andrew B. Suzman, 40	2003	Senior Vice President — Capital World Investors,
Vice President		Capital Research Company;5 Director, Capital
		Research Company5
Vincent P. Corti, 51	1993	Vice President — Fund Business Management
Secretary		Group, Capital Research and Management Company
Jeffrey P. Regal, 36	2003	Vice President — Fund Business Management Group, Capital Research and Management Company
Treasurer
Sheryl F. Johnson, 39	2003	Vice President — Fund Business Management Group, Capital Research and Management Company
Assistant Treasurer
1 Directors and officers of the fund serve until their resignation, removal or retirement.
2 Capital Research and Management Company manages the American Funds, consisting of 30 funds. Capital Research and Management Company also manages American Funds Insurance Series,® which is composed of 15 funds and serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series,® Inc., which is composed of nine funds and is available to investors in tax-deferred retirement plans and IRAs; and Endowments, which is composed of two portfolios and is available to certain nonprofit organizations.
3 This includes all directorships (other than those in the American Funds) that are held by each director as a director of a public company or a registered investment company.
4 “Interested persons” within the meaning of the 1940 Act, on the basis of their affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter).
5 Company affiliated with Capital Research and Management Company.

Offices

Offices of the fund and of the investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

6455 Irvine Center Drive

Irvine, CA 92618

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

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

Counsel

O’Melveny & Myers LLP

400 South Hope Street

Los Angeles, CA 90071-2899

Independent registered public accounting firm

PricewaterhouseCoopers LLP

350 South Grand Avenue

Los Angeles, CA 90071-2889

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

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

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

A complete November 30, 2007, portfolio of Capital World Growth and Income Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

Capital World Growth and Income 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 Capital World Growth and Income Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after March 31, 2008, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

[logo - American Funds^®]

The right choice for the long term^®

What makes American Funds different?

For 75 years, we have followed a consistent philosophy to benefit our investors. Our 30 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 40 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•A long-term, value-oriented approach

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

•An extensive global research effort

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

•The multiple portfolio counselor system

Our unique 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 24 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.

American Funds span a range of investment objectives

•Growth funds

Emphasis on long-term growth through stocks

AMCAP Fund^®

EuroPacific Growth Fund^®

The Growth Fund of America^®

The New Economy Fund^®

New Perspective Fund^®

New World Fund^SM

SMALLCAP World Fund^®

•Growth-and-income funds

Emphasis on long-term growth and dividends through stocks

American Mutual Fund^®

>Capital World Growth and Income Fund^SM

Fundamental Investors^SM

The Investment Company of America^®

Washington Mutual Investors Fund^SM

•Equity-income funds

Emphasis on above-average income and growth through stocks and/or bonds

Capital Income Builder^®

The Income Fund of America^®

•Balanced fund

Emphasis on long-term growth and current income through stocks and bonds

American Balanced Fund^®

•Bond funds

Emphasis on current income through bonds

American High-Income Trust^SM

The Bond Fund of America^SM

Capital World Bond Fund^®

Intermediate Bond Fund of America^®

Short-Term Bond Fund of America^SM

U.S. Government Securities Fund^SM

•Tax-exempt bond funds

Emphasis on tax-free current income through municipal bonds

American High-Income Municipal Bond Fund^®

Limited Term Tax-Exempt Bond Fund of America^SM

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 America^SM

The U.S. Treasury Money Fund of America^SM

•American Funds Target Date Retirement Series^®

The Capital Group Companies

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

Lit. No. MFGEAR-933-0108P

Litho in USA WG/Q/8072-S10050

Printed on recycled paper

ITEM 2 – Code of Ethics

The Registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer.  The Registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics.  Such request can be made to American Funds Service Company at 800/421-0180 or to the Secretary of the Registrant, 333 South Hope Street, Los Angeles, California 90071.

ITEM 3 – Audit Committee Financial Expert

The Registrant’s board has determined that Robert J. Denison, a member of the Registrant’s audit committee, is an “audit committee financial expert” and "independent," as such terms are defined in this Item. This designation will not increase the designee’s duties, obligations or liability as compared to his or her duties, obligations and liability as a member of the audit committee and of the board, nor will it reduce the responsibility of the other audit committee members.  There may be other individuals who, through education or experience, would qualify as "audit committee financial experts" if the board had designated them as such.  Most importantly, the board believes each member of the audit committee contributes significantly to the effective oversight of the Registrant’s financial statements and condition.

ITEM 4 – Principal Accountant Fees and Services

Registrant:
	a)  Audit Fees:
		2006	$101,000
		2007	$108,000
	b)  Audit-Related Fees:
		2006	None
		2007	None
	c)  Tax Fees:
		2006	$7,000
		2007	$7,000
		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.
	d)  All Other Fees:
		2006	None
		2007	None
Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
	a)  Not Applicable
	b)  Audit-Related Fees:
		2006	None
		2007	None
	c)  Tax Fees:
		2006	$4,000
		2007	$4,000
		The tax fees consist of consulting services relating to the Registrant’s investments.
	d)  All Other Fees:
		2006	None
		2007	None

The Registrant’s audit committee will pre-approve all audit and permissible non-audit services that the committee considers compatible with maintaining the independent registered public accounting firm’s independence.  The pre-approval requirement will extend to all non-audit services provided to the Registrant, the investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant. The committee will not delegate its responsibility to pre-approve these services to the investment adviser. The committee may delegate to one or more committee members the authority to review and pre-approve audit and permissible non-audit services.  Actions taken under any such delegation will be reported to the full committee at its next meeting. The pre-approval requirement is waived with respect to non-audit services if certain conditions are met. The pre-approval requirement was not waived for any of the non-audit services listed above provided to the Registrant, adviser, and affiliates.

Aggregate non-audit fees paid to the Registrant’s auditors, including fees for all services billed to the Registrant and the adviser and affiliates that provide ongoing services to the Registrant were $21,000 for fiscal year 2006 and $11,000 for fiscal year 2007. The non-audit services represented by these amounts were brought to the attention of the committee and considered to be compatible with maintaining the auditors’ independence.

ITEM 5 – Audit Committee of Listed Registrants

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

ITEM 6 – Schedule of Investments

[logo – American Funds®]

Capital World Growth and Income Fund^SM

Investment portfolio

November 30, 2007

Common stocks — 87.80%	Shares			Market value (000)
FINANCIALS — 20.13%
Banco Santander, SA		99,504,804		$	2,136,761
HSBC Holdings PLC (United Kingdom)		48,207,769			823,136
HSBC Holdings PLC (Hong Kong)		19,779,200			335,559
UniCredito Italiano SpA		99,312,640			848,101
AXA SA		18,457,722			756,171
Bank of America Corp.		15,403,650			710,570
Citigroup Inc.		21,062,500			701,381
Banco Itaú Holding Financeira SA, preferred nominative		25,062,300			693,529
BNP Paribas SA		5,892,870			666,859
Banco Bradesco SA, preferred nominative		20,697,838			658,378
Shinhan Financial Group Co., Ltd.		11,967,200			651,126
Lloyds TSB Group PLC		59,635,000			607,272
ING Groep NV, depository receipts		15,016,834			584,368
Intesa Sanpaolo SpA		61,300,000			490,036
HBOS PLC		28,518,000			468,165
BOC Hong Kong (Holdings) Ltd.		178,884,500			467,514
National Bank of Greece SA		6,905,285			464,906
UBS AG		8,861,622			449,127
Commonwealth Bank of Australia		8,446,685			444,240
Swedbank AB, Class A		11,863,000			383,880
Hana Financial Holdings		8,035,000			378,277
Woori Finance Holdings Co., Ltd.		19,155,960			368,224
Hang Seng Bank Ltd.		18,267,400			347,917
QBE Insurance Group Ltd.		12,167,137			347,794
Banco Bilbao Vizcaya Argentaria, SA		13,786,500			343,977
Wachovia Corp.		7,515,000			323,145
JPMorgan Chase & Co.		6,850,000			312,497
Kookmin Bank		4,272,000			308,059
ICICI Bank Ltd.		10,186,803			303,902
ICICI Bank Ltd. (ADR)		4,000			242
AMP Ltd.		33,288,704			297,616
OTP Bank PLC		5,127,000			255,413
OTP Bank PLC (GDR)		365,000			36,956
Commerzbank U.S. Finance, Inc.		7,071,000			281,074
Sun Hung Kai Properties Ltd.		12,910,000			267,269
Société Générale		1,663,412			257,604
Chuo Mitsui Trust Holdings, Inc.		29,097,000			246,540
Fortis SA/NV		8,614,100			231,223
Westfield Group		12,658,787			228,136
Unibanco-União de Bancos Brasileiros SA, units (GDR)		1,405,200			210,387
Credit Suisse Group		3,381,362			204,182
Sampo Oyj, Class A		6,825,000			200,418
DBS Group Holdings Ltd		14,105,000			196,011
Royal Bank of Scotland Group PLC		20,114,642			189,933
DnB NOR ASA		10,936,100			171,751
Hypo Real Estate Holding AG		3,119,099			165,756
Washington Mutual, Inc.		8,405,000			163,898
NIPPONKOA Insurance Co., Ltd.		16,911,000			161,580
Grupo Financiero Banorte, SAB de CV, Series O		36,848,252			159,961
Crédit Agricole SA		4,400,000			155,023
St. George Bank Ltd.		4,864,729			154,970
EFG Eurobank Ergasias SA		4,380,923			154,608
Fannie Mae		3,265,000			125,441
Krung Thai Bank PCL		374,386,000			111,716
Bank of the Philippine Islands1		74,868,075			110,276
Allied Capital Corp.		3,798,000			92,405
Sumitomo Mitsui Financial Group, Inc.		10,769			92,314
Siam Commercial Bank PCL		35,000,000			88,928
ORIX Corp.		430,000			87,558
Freddie Mac		2,450,000			85,922
Wells Fargo & Co.		2,522,000			81,788
Samsung Fire & Marine Insurance Co., Ltd.		321,530			79,964
Willis Group Holdings Ltd.		1,625,000			64,903
Erste Bank der oesterreichischen Sparkassen AG		838,900			61,094
National City Corp.		2,994,000			59,161
Mitsui Sumitomo Insurance Co., Ltd.		5,394,000			58,588
Sompo Japan Insurance Inc.		6,000,000			57,977
Kimco Realty Corp.		1,467,779			57,963
FirstRand Ltd.		16,700,000			53,075
Marsh & McLennan Companies, Inc.		2,000,000			50,240
Deutsche Börse AG		262,000			49,275
Mizuho Financial Group, Inc.		9,168			49,170
Millea Holdings, Inc.		1,383,000			48,494
GAGFAH SA		2,797,851			47,400
iStar Financial, Inc.		1,550,000			45,369
Public Bank Bhd.		13,761,400			43,797
Bank of China Ltd., Class H		80,000,000			41,611
Developers Diversified Realty Corp.		900,000			39,969
Bank Hapoalim BM1		7,455,000			37,275
Admiral Group PLC		1,700,000			36,406
PT Bank Central Asia Tbk		45,000,000			34,116
Hongkong Land Holdings Ltd.		6,650,500			32,987
Aioi Insurance Co. Ltd.		5,561,000			30,828
Cathay Financial Holding Co., Ltd.		12,750,000			28,610
Korea Exchange Bank		1,740,000			27,211
Sun Life Financial Inc.		365,000			19,251
XL Capital Ltd., Class A		180,000			10,535
Discovery Holdings Ltd.		937,442			3,865
					22,810,904
TELECOMMUNICATION SERVICES — 9.63%
Koninklijke KPN NV		81,518,700			1,501,820
Vodafone Group PLC		297,822,328			1,116,303
AT&T Inc.		27,715,874			1,059,024
France Télécom SA		26,826,626			1,021,114
Singapore Telecommunications Ltd.		268,448,810			720,120
Verizon Communications Inc.		14,500,000			626,545
Telenor ASA2		26,355,000			613,234
Telefónica, SA		17,753,500			596,596
Philippine Long Distance Telephone Co.1		4,826,520			351,819
Philippine Long Distance Telephone Co. (ADR)		1,650,000			119,839
TeliaSonera AB		43,921,700			420,865
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, Class B		368,927,000			399,851
Telekom Austria AG, non-registered shares		9,188,947			269,567
América Móvil, SAB de CV, Series L (ADR)		4,350,800			268,270
Telekomunikacja Polska SA		28,069,100			253,204
Far EasTone Telecommunications Co., Ltd.		192,780,000			250,946
Telekom Malaysia Bhd.		62,105,500			199,506
Taiwan Mobile Co., Ltd.		130,173,000			175,904
MTN Group Ltd.		7,149,841			145,428
Sprint Nextel Corp., Series 1		8,800,000			136,576
Teléfonos de México, SAB de CV, Class L (ADR)		3,623,474			135,047
Advanced Info Service PCL		47,485,900			129,772
Chunghwa Telecom Co., Ltd.		61,710,000			123,171
Hutchison Telecommunications International Ltd.		50,000,000			70,250
Portugal Telecom, SGPS, SA		3,800,000			51,892
Turkcell Iletisim Hizmetleri AS		4,100,000			44,493
Globe Telecom, Inc.1		1,200,880			43,173
Magyar Telekom Telecommunications PLC		5,243,600			27,521
Bouygues SA		280,000			25,143
Embarq Corp.		275,000			14,011
Bell Aliant Regional Communications Income Fund		140,400			4,086
					10,915,090
CONSUMER DISCRETIONARY — 8.41%
Vivendi SA		25,536,300			1,175,764
DaimlerChrysler		8,914,000			909,370
Renault SA		5,977,331			871,933
Cie. Générale des Etablissements Michelin, Class B		7,169,000			852,070
OPAP (Greek Organization of Football Prognostics) SA		15,949,410			621,360
Continental AG		4,164,050			543,047
Hyundai Motor Co.		5,957,468			448,363
Hyundai Motor Co., nonvoting preferred, Series 2		1,407,550			49,680
General Motors Corp.		13,824,600			412,388
Target Corp.		6,508,000			390,870
Lotte Shopping Co.		765,815			311,466
Esprit Holdings Ltd.		17,724,200			265,869
British Sky Broadcasting Group PLC		19,950,000			256,507
Lowe’s Companies, Inc.		10,415,000			254,230
Honda Motor Co., Ltd.		6,749,000			228,738
Mediaset SpA		20,485,000			200,566
DSG International PLC		64,137,800			148,569
H & M Hennes & Mauritz AB, Class B		2,310,000			144,783
William Hill PLC		12,645,800			134,627
Toyota Motor Corp.		2,239,000			125,936
Ford Motor Co.2		16,000,000			120,160
YUM! Brands, Inc.		3,000,000			111,450
Kingfisher PLC		31,274,599			97,987
KangwonLand Inc.		3,781,280			95,271
Carnival Corp., units		2,100,000			94,752
Idearc Inc.		5,000,000			94,600
Aristocrat Leisure Ltd.		8,517,734			82,461
Hyundai Mobis Co., Ltd.		850,070			79,579
Pou Chen Corp.		80,774,268			72,726
LG Electronics Inc.		566,005			58,887
D.R. Horton, Inc.		4,800,000			57,456
Swatch Group Ltd, non-registered shares		117,350			32,961
Swatch Group Ltd		295,873			16,228
Kesa Electricals PLC		8,297,598			40,285
Gestevisión Telecinco SA		1,295,000			35,084
Yue Yuen Industrial (Holdings) Ltd.		8,867,500			28,243
News Corp., Class A		1,219,458			25,694
Li & Fung Ltd.		5,094,000			20,281
Shangri-La Asia Ltd.		4,108,000			11,791
PT Multimédia-Serviços de Telecomunicações e Multimédia, SGPS, SA		535,243			7,443
					9,529,475
UTILITIES — 8.05%
E.ON AG		13,038,214			2,664,419
RWE AG		15,427,700			2,113,129
SUEZ SA		12,417,260			828,356
Veolia Environnement		7,548,877			699,462
NTPC Ltd.		83,308,670			499,114
Electricité de France SA		3,713,093			452,593
Fortum Oyj		8,000,000			344,757
Exelon Corp.		3,475,000			281,718
Cia. Energética de Minas Gerais-Cemig, preferred nominative		11,234,650			239,415
Dominion Resources, Inc.		3,935,622			185,879
Tokyo Gas Co., Ltd.		30,025,000			149,394
Electric Power Development Co., Ltd.		4,080,000			147,474
Spark Infrastructure3		56,535,632			98,449
Public Service Enterprise Group Inc.		800,000			76,592
Southern Co.		1,440,000			54,173
FirstEnergy Corp.		780,000			53,477
Hong Kong and China Gas Co. Ltd.		17,761,300			52,464
PPL Corp.		1,000,000			50,960
Hongkong Electric Holdings Ltd.		8,000,000			41,764
Ameren Corp.		700,000			37,695
Entergy Corp.		206,000			24,625
Ratchaburi Electricity Generating Holding PCL		15,258,000			21,187
					9,117,096
ENERGY — 7.41%
Royal Dutch Shell PLC, Class B		20,949,312			841,252
Royal Dutch Shell PLC, Class A (ADR)		5,220,000			425,065
Royal Dutch Shell PLC, Class A		7,850,000			317,451
Royal Dutch Shell PLC, Class B (ADR)		1,142,148			92,103
Petróleo Brasileiro SA-Petrobras, preferred nominative (ADR)		8,481,000			688,403
Petróleo Brasileiro SA-Petrobras, ordinary nominative (ADR)		3,680,000			354,384
TOTAL SA		10,079,000			816,514
TOTAL SA (ADR)		2,250,000			182,070
Chevron Corp.		9,376,962			823,016
Oil & Natural Gas Corp. Ltd.		18,828,306			556,531
PetroChina Co. Ltd., Class H		270,836,000			522,437
Sasol Ltd.		8,346,971			424,456
ENI SpA		8,500,000			303,840
Canadian Natural Resources, Ltd.		4,674,400			303,827
Hess Corp.		3,950,000			281,319
ConocoPhillips		3,450,000			276,138
Canadian Oil Sands Trust		5,550,205			201,381
Canadian Oil Sands Trust4		1,100,000			39,912
Husky Energy Inc.		6,030,000			239,497
China National Offshore Oil Corp.		72,112,900			132,992
Motor Oil (Hellas) Corinth Refineries SA		5,000,000			107,810
PTT Exploration and Production PCL		22,521,000			101,136
Reliance Industries Ltd.		1,250,000			90,242
Caltex Australia Ltd.		4,164,181			81,141
Türkiye Petrol Rafinerileri AS		2,897,290			75,533
Marathon Oil Corp.		1,340,000			74,906
SBM Offshore NV		840,000			29,275
Schlumberger Ltd.		200,000			18,690
					8,401,321
MATERIALS — 7.22%
Bayer AG, non-registered shares		20,853,500			1,723,323
China Steel Corp.		574,730,229			757,044
Linde AG		4,639,800			608,562
Syngenta AG		2,226,000			549,301
Akzo Nobel NV		5,942,000			456,704
Formosa Plastics Corp.		151,376,870			410,991
Dow Chemical Co.		8,000,000			335,520
Nitto Denko Corp.		6,184,000			319,958
K+S AG		1,441,600			294,513
BASF AG		2,073,000			288,134
POSCO		345,480			220,240
Israel Chemicals Ltd.1		18,812,189			199,762
Impala Platinum Holdings Ltd.		5,619,112			196,740
Fording Canadian Coal Trust		5,575,000			190,052
Barrick Gold Corp. (CAD denominated)		2,931,540			118,342
Barrick Gold Corp.		1,630,000			66,031
Koninklijke DSM NV		3,680,125			183,586
Lonza Group Ltd.		1,500,000			175,704
International Paper Co.		4,720,500			159,317
James Hardie Industries NV3		23,384,347			129,893
Boral Ltd.		22,080,960			124,795
ArcelorMittal		1,610,000			119,046
Weyerhaeuser Co.		1,375,000			100,622
Norsk Hydro ASA		5,579,500			77,139
Taiwan Cement Corp.		50,124,000			73,093
UPM-Kymmene Corp.		2,784,000			58,926
Sinopec Shanghai Petrochemical Co. Ltd., Class H		92,438,000			57,458
Packaging Corp. of America		1,800,000			50,922
Makhteshim-Agan Industries Ltd.1,2		5,235,000			44,506
Sonoco Products Co.		1,200,000			36,456
Stora Enso Oyj, Class R (ADR)		1,086,300			17,946
Sappi Ltd.		1,239,000			17,014
Smurfit-Stone Container Corp.2		974,200			10,726
JFE Holdings, Inc.		155,000			8,453
Evraz Group SA (GDR)		3,500			256
					8,181,075
CONSUMER STAPLES — 6.19%
Diageo PLC		73,775,587			1,658,858
Nestlé SA		1,774,500			853,760
Tesco PLC		77,505,563			763,739
PepsiCo, Inc.		6,310,000			487,006
Coca-Cola Co.		5,750,000			357,075
Altria Group, Inc.		4,494,000			348,555
Koninklijke Ahold NV2		21,404,800			304,861
Groupe Danone SA		2,846,000			251,556
Kraft Foods Inc., Class A		6,460,736			223,218
SABMiller PLC		6,562,216			186,837
Reynolds American Inc.		2,470,282			172,969
Wal-Mart Stores, Inc.		3,378,000			161,806
ConAgra Foods, Inc.		5,910,000			147,868
Kellogg Co.		2,375,000			128,345
Foster’s Group Ltd.		19,686,570			109,353
Archer Daniels Midland Co.		3,000,000			109,050
Imperial Tobacco Group PLC		2,000,000			103,477
L’Oréal SA		711,000			99,002
Scottish & Newcastle PLC		6,053,900			92,970
Shoppers Drug Mart Corp.		1,565,000			85,959
Tingyi (Cayman Islands) Holding Corp.		54,070,000			77,218
InBev		843,500			74,074
Wesfarmers Ltd.		1,600,000			61,268
Woolworths Ltd.		1,504,849			44,913
Procter & Gamble Co.		601,700			44,526
UST Inc.		655,900			37,977
Avon Products, Inc.		660,000			27,093
					7,013,333
HEALTH CARE — 5.98%
Novo Nordisk A/S, Class B		12,087,200			1,539,301
Roche Holding AG		7,984,016			1,524,504
Abbott Laboratories		10,206,000			586,947
Pfizer Inc		24,061,700			571,706
Merck & Co., Inc.		6,135,000			364,174
Bristol-Myers Squibb Co.		9,512,700			281,861
Wyeth		4,977,000			244,371
Daiichi Sankyo Co., Ltd.		7,805,000			244,126
Merck KGaA		1,643,820			213,942
Schering-Plough Corp.		6,000,000			187,800
GlaxoSmithKline PLC		6,980,000			184,947
Medtronic, Inc.		3,500,000			177,975
AstraZeneca PLC (Sweden)		3,593,100			172,431
UCB SA		3,510,000			167,222
Chugai Pharmaceutical Co., Ltd.		6,500,000			113,431
Cochlear Ltd.		812,000			53,989
Smith & Nephew PLC		4,283,600			51,243
Richter Gedeon NYRT		219,500			49,105
Johnson & Johnson		600,000			40,644
					6,769,719
INFORMATION TECHNOLOGY — 5.54%
Microsoft Corp.		48,104,000			1,616,294
Taiwan Semiconductor Manufacturing Co. Ltd.		369,563,212			694,112
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		16,194,748			160,652
Nokia Corp. (ADR)		11,969,800			470,772
Nokia Corp.		2,571,000			102,839
Samsung Electronics Co., Ltd.		576,900			353,984
Delta Electronics, Inc.		95,536,217			328,669
Oracle Corp.2		14,090,000			284,336
International Business Machines Corp.		2,420,000			254,536
Acer Inc.		118,605,500			249,967
Cisco Systems, Inc.2		8,275,000			231,865
Intel Corp.		8,042,900			209,759
Lite-On Technology Corp.		103,818,542			179,547
Toshiba Corp.		18,303,000			148,813
HOYA Corp.		4,033,000			140,322
Redecard SA, ordinary nominative		6,632,700			121,026
Murata Manufacturing Co., Ltd.		1,982,000			115,590
Automatic Data Processing, Inc.		2,500,000			112,650
Ibiden Co., Ltd.		1,200,000			94,429
Hewlett-Packard Co.		1,800,000			92,088
Seagate Technology		2,600,000			67,054
Compal Electronics, Inc.		43,000,000			49,644
Powerchip Semiconductor Corp.		121,054,350			46,711
Microchip Technology Inc.		1,340,000			38,579
AU Optronics Corp.		14,741,000			28,555
Samsung SDI Co., Ltd.		400,000			27,498
Hon Hai Precision Industry Co., Ltd.		4,140,000			26,432
Tyco Electronics Ltd.		468,750			17,527
Mediatek Incorporation		1,050,000			13,668
					6,277,918
INDUSTRIALS — 5.14%
General Electric Co.		24,040,100			920,495
Siemens AG		5,248,992			798,563
United Parcel Service, Inc., Class B		9,183,600			676,648
United Technologies Corp.		6,345,000			474,416
Sandvik AB		17,453,000			317,340
Deutsche Post AG		8,719,720			296,858
Singapore Technologies Engineering Ltd.		103,500,000			270,485
PACCAR Inc		5,246,200			265,510
Scania AB, Class B		9,860,400			247,827
Wolseley PLC		16,534,500			236,233
Macquarie Airports		56,630,327			216,700
Keppel Corp. Ltd.		15,000,000			138,966
ComfortDelGro Corp. Ltd.		95,600,000			126,242
Schneider Electric SA		877,087			122,707
Wienerberger AG		2,056,874			116,578
Atlas Copco AB, Class A		7,407,105			109,373
AB Volvo, Class B		5,677,500			97,211
Fraport AG		1,076,100			83,262
Finmeccanica SpA		2,740,000			81,988
Cintra, Concesiones de Infraestructuras de Transporte, SA		4,011,000			64,187
Cintra, Concesiones de Infraestructuras de Transporte, SA1		200,550			3,209
ELLINIKI TECHNODOMIKI TEB SA		4,795,000			63,300
SembCorp Industries Ltd		9,350,000			36,200
Singapore Post Private Ltd.		43,500,000			32,781
Tyco International Ltd.		468,750			18,811
China International Marine Containers (Group) Co. Ltd., Class B		4,099,877			7,108
Nippon Express Co., Ltd.		715,000			3,635
Contax Participações SA, ordinary nominative		38,107			1,487
					5,828,120
MISCELLANEOUS — 4.10%
Other common stocks in initial period of acquisition					4,643,427
Total common stocks (cost: $74,469,001,000)					99,487,478
	Shares or			Market value
Convertible securities — 0.33%	principal amount				(000	)
CONSUMER DISCRETIONARY — 0.33%
Ford Motor Co. 4.25% convertible notes 2036	$	137,400,000		$	147,534
Ford Motor Co. Capital Trust II 6.50% cumulative convertible trust preferred 2032		6,499,555			230,474
					378,008
Total convertible securities (cost: $400,171,000)					378,008
	Principal amount
Bonds & notes — 0.01%		(000	)
CONSUMER DISCRETIONARY — 0.01%
Delphi Automotive Systems Corp. 6.55% 20065	$	14,955			10,169
Total bonds & notes (cost: $14,955,000)					10,169
Short-term securities — 11.67%
Federal Home Loan Bank 4.17%–4.68% due 12/4/2007–5/9/2008		1,968,678			1,953,530
Fannie Mae 4.12%–4.67% due 12/3/2007–5/2/2008		1,061,274			1,054,277
Freddie Mac 4.23%–4.91% due 12/4/2007–3/20/2008		984,470			978,553
General Electric Capital Corp. 4.83%–4.88% due 2/5–2/28/2008		500,000			494,910
Danske Corp. 4.79%–5.57% due 12/6/2007–1/29/20086		355,000			353,736
Bank of America Corp. 4.77%–5.45% due 12/3/2007–2/27/2008		339,900			337,185
JPMorgan Chase & Co. 4.85%–5.06% due 1/17–2/14/2008		328,900			326,011
AstraZeneca PLC 4.82%–4.95% due 12/10/2007–2/21/20086		313,500			310,566
Barclays U.S. Funding Corp. 4.695%–5.09% due 1/15–3/26/2008		302,400			299,598
Calyon North America Inc. 4.78%–5.03% due 1/15–2/27/2008		300,000			297,380
ING (U.S.) Funding LLC 4.71%–5.50% due 12/13/2007–2/27/2008		245,000			243,204
Mont Blanc Capital Corp. 5.20% due 12–18–20076		50,000			49,877
BP Capital Markets PLC 4.47%–4.77% due 1/28–3/17/20086		294,500			291,090
Société Générale North America, Inc. 5.03%–5.135% due 12/27/2007–1/22/2008		180,000			178,884
Société Générale 5.00% due 1/25/2008		100,000			99,986
UBS Finance (Delaware) LLC 5.005%–5.46% due 1/14–2/20/2008		269,100			266,677
CAFCO, LLC 5.00%–5.30% due 1/8–1/22/20086		185,100			183,841
Citigroup Funding Inc. 5.61% due 12/18/2007		66,300			66,136
Toronto-Dominion Bank 4.77%–5.05% due 1/23–2/8/2008		200,000			199,895
Toronto-Dominion Holdings USA Inc. 5.09% due 12/11/20076		50,000			49,923
Swedish Export Credit Corp. 4.67%–4.82% due 1/15–2/29/2008		250,000			247,730
BNP Paribas Finance Inc. 4.60%–4.917% due 1/16–2/25/2008		244,500			242,238
Svenska Handelsbanken Inc. 4.665%–5.60% due 12/7/2007–2/7/2008		223,900			222,623
Wal-Mart Stores Inc. 4.70%–4.71% due 1/29/20086		205,800			204,054
Canadian Imperial Bank of Commerce 4.85%–5.57% due 12/18/2007–3/5/2008		150,000			149,960
Canadian Imperial Holdings Inc. 5.56% due 12/7/2007		50,000			49,951
GlaxoSmithKline Finance PLC 4.77%–4.78% due 12/17/2007–1/11/20086		200,000			199,212
CBA (Delaware) Finance Inc. 5.00%–5.56% due 12/12/2007–2/4/2008		200,000			198,675
Nestlé Capital Corp. 4.75%–5.26% due 12/19/2007–2/12/20086		150,000			148,821
Alcon Capital Corp. 4.50% due 3/6/20086		50,000			49,316
Coca-Cola Co. 4.50%–4.70% due 1/25–2/8/20086		192,500			190,870
Bank of Ireland 5.06%–5.62% due 12/7/2007–2/12/20086		186,600			185,772
Rabobank USA Financial Corp. 4.64%–4.84% due 1/30–2/14/2008		186,600			184,878
Allied Irish Banks North America Inc. 5.065%–5.57% due 12/10/2007–2/11/20086		182,000			180,798
Procter & Gamble International Funding S.C.A. 4.47%–4.75% due 1/10–3/6/20086		170,000			168,127
Dexia Delaware LLC 5.00%–5.05% due 12/4/2007–1/14/2008		164,100			163,566
U.S. Treasury Bills 4.09%–4.133% due 12/6–12/27/2007		150,000			149,793
ANZ National (International) Ltd. 4.87%–5.63% due 12/12/2007–2/21/20086		150,000			149,174
Electricité de France 4.69%–4.95% due 1/7–3/3/2008		150,000			148,828
HSBC USA Inc. 4.82%–5.05% due 1/3–2/27/2008		150,000			148,513
HBOS Treasury Services PLC 4.725%–4.845% due 2/25–3/25/2008		150,000			147,944
Westpac Banking Corp. 4.655%–5.01% due 1/24–2/7/20086		141,000			139,748
Toyota Motor Credit Corp. 4.49%–4.78% due 1/4–3/19/2008		117,500			116,310
Toyota Credit de Puerto Rico Corp. 5.25% due 1/8/2008		20,000			19,896
BASF AG 4.75%–4.77% due 1/14–1/16/20086		135,000			134,161
American Honda Finance Corp. 4.48%–4.75% due 12/11/2007–2/8/2008		131,490			130,945
Eksportfinans ASA 4.55%–4.75% due 1/22–3/10/20086		127,800			126,351
Siemens Capital Co. LLC 4.80% due 12/13–12/26/20076		125,000			124,740
American General Finance Corp. 4.88% due 1/30/2008		75,000			74,349
International Lease Finance Corp. 4.85% due 1/30/2008		45,000			44,612
Swedbank Mortgage AB 5.04%–5.37% due 1/18–1/23/2008		108,900			108,139
Credit Suisse New York Branch 5.30%–5.57% due 12/6/2007–1/18/2008		104,900			104,516
Thunder Bay Funding, LLC 4.95%–5.07% due 12/5/2007–1/15/20086		100,000			99,635
Liberty Street Funding Corp. 5.10%–5.11% due 12/17–12/19/20076		96,400			96,149
IBM International Group Capital LLC 4.70% due 1/10/20086		85,200			84,733
KfW International Finance Inc. 4.48% due 12/19/20076		75,000			74,823
Total Capital SA 4.78%–4.81% due 12/21–12/31/20076		51,800			51,620
BMW U.S. Capital LLC 4.73% due 12/5/20076		50,000			49,965
Lloyds Bank PLC 4.71% due 2/28/2008		50,000			49,364
Wells Fargo & Co. 4.56% due 12/19/2007		16,700			16,660
Federal Farm Credit Banks 4.37% due 3/25/2008		11,000			10,862
Total short-term securities (cost: $13,221,462,000)					13,223,680
Total investment securities (cost: $88,105,589,000)				$	113,099,335
Other assets less liabilities					210,322
Net assets				$	113,309,657

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

¹ Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $790,020,000.

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

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

⁴ Purchased in a transaction exempt from registration under the Securities Act of 1933. This security (acquired 2/28/2003 with a cost of $5,113,000) may be subject to legal or contractual restrictions on resale.

⁵ Scheduled interest and/or principal payment was not received.

⁶ Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the United States in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $3,697,102,000, which represented 3.26% of the net assets of the fund.

ADR = American Depositary Receipts

GDR = Global Depositary Receipts

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

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

MFGEFP-933-0108O-S10907

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of

Capital World Growth and Income Fund, Inc.:

We have audited, in accordance with standards of the Public Company Accounting Oversight Board (United States), the financial statements of Capital World Growth and Income Fund, Inc. as of November 30, 2007, and for the year then ended and have issued our unqualified report thereon dated January 8, 2008 (which report and financial statements are included in Item 1 of this Certified Shareholder Report on Form N-CSR). Our audit included an audit of the Fund's investment portfolio (the “Portfolio”) as of November 30, 2007 appearing in Item 6 of this Form N-CSR. The Portfolio is the responsibility of the Fund's management. Our responsibility is to express an opinion on the Portfolio based on our audit.

In our opinion, the Portfolio referred to above, when read in conjunction with the financial statements of the Fund referred to above, presents fairly, in all material respects, the information set forth therein.

PricewaterhouseCoopers LLP

Los Angeles, California

January 8, 2008

ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.

ITEM 10 – Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors since the Registrant last submitted a proxy statement to its shareholders.  The procedures are as follows.  The Registrant has a nominating committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of directors. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating committee.

ITEM 11 – Controls and Procedures

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

ITEM 12 – Exhibits

(a)(1)	The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.
(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.

CAPITAL WORLD GROWTH AND INCOME FUND, INC.

By /s/ Gina H. Despres

Gina H. Despres, Vice Chairman and

Principal Executive Officer

Date: February 7, 2008

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/ Gina H. Despres

Gina H. Despres, Vice Chairman and

Principal Executive Officer

Date: February 7, 2008

By /s/ Jeffrey P. Regal

Jeffrey P. Regal, Treasurer and

Principal Financial Officer

Date: February 7, 2008