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, 2010

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

 

Capital World Growth and Income FundSM

[photo of shipping containers on a container barge heading towards the Cooper River Bridge, Mount Pleasant, SC]

Special feature

Connecting the dots

u See page 6

Annual report for the year ended November 30, 2010

Capital World Growth and Income 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.

This fund is one of the 32 American Funds. American Funds is one of the nation’s largest mutual fund families. For nearly 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

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

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended December 31, 2010 (the most recent calendar quarter-end):
Class A shares	1 year			5 years			10 years
Reflecting 5.75% maximum sales charge		1.52	%		3.54	%		7.18	%

The total annual fund operating expense ratio was 0.79% for Class A shares as of the most recent fiscal year-end.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 26 and 27 for details.

The fund’s 30-day yield for Class A shares as of December 31, 2010, reflecting the 5.75% maximum sales charge and calculated in accordance with the Securities and Exchange Commission formula, was 2.26%.

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

Equity investments are subject to market fluctuations. Investing outside the United States may be subject to additional risks, such as currency fluctuations, periods of illiquidity, price volatility and political instability. These risks may be heightened in connection with investments in developing countries. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

Fellow shareholders:

In a period marked by turbulence in global stock markets, Capital World Growth and Income Fund provided shareholders steady income and modest gains during the fiscal year ended November 30, 2010. The fund earned a total return of 2.57%, but trailed its primary benchmark, the unmanaged MSCI World Index, a broad measure of global developed stock markets, which rose 6.52%. At the same time, the fund’s peer group, as measured by the Lipper Global Funds Index, gained 8.73%.

The fund’s total return includes the reinvestment of dividends. During the fiscal year, the fund paid dividends totaling 88 cents a share, including a special dividend of 8 cents a share paid in December 2009. These dividends represented an income return of 2.63% for those who reinvested them and 2.60% for those investors who took their dividends in cash.

The fund invested a sizeable portion of its assets in the stocks of European companies, many of which pay higher dividends than their U.S. or Asian counterparts. This focus was one of the reasons the fund trailed its benchmark and its peer group.

In the spring of 2010, Greece’s financial problems sparked Europe’s sovereign debt crisis. Financial markets tumbled as concerns spread that the euro zone might disintegrate. When it appeared that the Greek debt crisis was resolved, markets rallied and remained strong through October. In November, however, Ireland’s deteriorating finances sparked new worries about the financial stability of several European countries and the markets once again retreated, giving back most of their gains.

[Begin Sidebar]

Results at a glance
For periods ended November 30, 2010, with all distributions reinvested
	Total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime
										(since 3/26/93)
Capital World Growth and
Income Fund (Class A shares)		2.57	%		4.20	%		7.61	%		11.11	%
MSCI World Index*		6.52			1.99			2.25			6.91
Lipper Global Funds Index†		8.73			2.70			2.81			7.03
*The MSCI World Index is weighted by market capitalization and is designed to measure equity market results of developed markets. The index consists of more than 20 developed-market country indexes, including the United States. The index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or taxes.
† Lipper Global Funds Index is an equally weighted index of 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 and other fund expenses, but do not reflect the effect of sales charges, account fees or taxes.

[End Sidebar]

[photo of shipping containers on a container barge heading towards the Cooper River Bridge, Mount Pleasant, SC]


[Begin Sidebar]

In this report
Special feature
6	Connecting the dots
	How Capital World Growth and Income Fund uses an integrated global research effort to build a portfolio
Contents
1	Letter to shareholders
4	The value of a long-term perspective
12	Summary investment portfolio
17	Financial statements
34	Board of directors and
	other officers

[End Sidebar]

The stocks of European financial institutions and utilities were especially hard hit during the downturn. Banco Santander, the fund’s ninth-largest holding at 1.45% of net assets, lost 44.64% during the fund’s fiscal year. It averaged 2.27% of the fund’s portfolio over the course of the year. Similarly, GDF SUEZ, the French utility, lost 20.51%. It was the fund’s seventh-largest holding, accounting for 1.68% of the portfolio over the course of the year.

The fund was also hurt by the euro’s 13.5% decline against the U.S. dollar over the fiscal year. The loss dampened the fund’s returns by lowering the value of its European holdings when translated in dollars. For example, Germany’s stock market, as measured by the MSCI World Index, gained 19.26% in euros, but only 3.40% in dollars.

The euro’s decline not only undermined gains but also exaggerated declines. Spain’s 18.75% loss translated into a 29.55% drop in dollars. The euro’s weakness even turned the Netherlands’ 10.24% gain into a 4.42% decline when measured in dollars.

While Europe’s sovereign debt troubles and the slow economic recovery in the United States were major themes in the fund’s fiscal year, they were far from being the only story. In fact, there were many reasons for investors to be optimistic about the future.

Many corporations in Europe, the United States and Asia are flush with cash, have strong balance sheets and are generating solid profits. Growth in emerging markets is also providing a boost to earnings. In many cases, however, we believe that the stock prices of these companies haven’t kept pace with the growth in earnings. In this environment, we are finding many attractive opportunities around the world.

During the fiscal year just ended, Capital World Growth and Income Fund’s investments in stocks of companies in the industrials, consumer staples, telecommunication services and consumer discretionary sectors contributed to positive results.

Still, not all the fund’s holdings gained value. Among the top 10 holdings, only three were up — two in the United States and one in Mexico. Of the 10 largest holdings, Philip Morris International had the highest 12-month return, an 18.3% gain, while the Mexico-based telecommunications company América Móvil rose 16.7%.

European companies, though, endured a more difficult period. The fund’s largest individual holding, the German pharmaceutical company Bayer, lost 5.06%.

The debt crisis partially overshadowed growth in Asian countries, notably India and China. The Chinese market gained 6.08% and India gained 16.34%, as measured by the respective MSCI indexes in U.S. dollars. Taiwan, which accounted for 3.8% of the portfolio, rose 18.44%.

Although China and India accounted for a small portion of the fund’s total portfolio, we are watching developments there closely. Growth in Asia could easily translate into orders for goods and services from European and North American companies, helping boost the fortunes of some of the fund’s holdings.

While we’re pleased that the fund provided solid income and a modest total return, we urge investors to focus on the long term. Global stock markets will always fluctuate and investors should not put too much faith in a single year’s result, as month-to-month movements can greatly influence short-term results.

[Begin Sidebar]

Largest equity holdings
(as of November 30, 2010)
		Percent of			12-month
Company	Country	net assets			return
Bayer	Germany		2.46	%		−5.06	%
Microsoft	United States		2.20			−14.28
Novartis	Switzerland		2.03			−4.41
AT&T	United States		1.84			3.16
Philip Morris International	United States		1.79			18.30
América Móvil	Mexico		1.74			16.70
GDF SUEZ	France		1.68			−20.51
BP	United Kingdom		1.65			−29.80
Banco Santander	Spain		1.45			−44.64
Merck	United States		1.38			−4.81

[End Sidebar]

Rather, we believe it is important to judge a fund over a full market cycle or a minimum of five years. As the chart on page 1 shows, Capital World Growth and Income Fund has provided investors with strong results over long periods of time.

We look forward to reporting to you again in six months.

Cordially,

/s/ Gina H. Despres

Gina H. Despres

Vice Chairman of the Board

/s/ Mark E. Denning

Mark E. Denning

President

January 7, 2011

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

[Begin Sidebar]

Where the fund’s assets were invested*
	Capital World Growth and Income Fund			MSCI World Index†
Europe		41.4	%		28.6	%
United Kingdom		9.0			9.7
France		7.4			4.3
Germany		6.0			3.7
Switzerland		5.9			3.5
Sweden		3.5			1.4
Spain		2.1			1.5
Belgium		1.2			.4
Turkey		1.0			—
Italy		1.0			1.2
Austria		.8			.1
Finland		.7			.5
Netherlands		.7			1.1
Czech Republic		.6			—
Other Europe		1.5			1.2
The Americas		32.7			54.9
United States		27.7			49.6
Brazil		2.2			—
Mexico		1.7			—
Canada		1.1			5.3
Asia/Pacific		18.7			16.1
Taiwan		3.8			—
Japan		3.4			10.0
China		3.1			—
Australia		2.8			3.9
Hong Kong		2.1			1.4
Singapore		1.8			.8
South Korea		.5			—
Other Asia/Pacific		1.2			—
Other		.6			.4
Bonds & notes, short-term securities
& other assets less liabilities		6.6			—
Total		100.0	%		100.0	%
*Percent of net assets by country as of November 30, 2010.
†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 reflect deduction of the maximum sales charge of 5.75% on the $10,000 investment.1 Thus, the net amount invested was $9,425. 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. For current information and month-end results, visit americanfunds.com.

[begin mountain chart]

	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
2/29/2008		68,239		47,576		36,661		14,742
5/31/2008		72,079		50,003		38,897		15,086
8/31/2008		62,945		43,205		34,468		15,257
11/30/2008		43,044		29,332		23,053		14,793
2/28/2009		37,793		25,467		19,517		14,777
5/31/2009		48,929		32,760		25,525		14,892
8/31/2009		54,724		36,119		28,731		15,030
11/30/2009		59,179		38,880		30,576		15,065
2/28/2010		56,711		37,062		30,286		15,093
5/31/2010		53,709		34,946		29,148		15,193
8/31/2010		56,114		36,050		29,325		15,203
11/30/2010		60,701		38,822		32,571		15,237

[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	2008
Total value
Dividends
reinvested		578		569		679		914		1,043	1,315	1,633	1,918
Value at year-end1		28,613		27,405		35,220		43,044		49,405	60,955	73,901	43,044
WGI total return		(1.8	)	(4.2	)	28.5		22.2		14.8	23.4	21.2	(41.8	)
Year ended
November 30		2009		2010
Total value
Dividends							Average annual total return or fund’s lifetime
reinvested		1,711		1,555
Value at year-end1		59,179		60,701
WGI total return		37.5		2.6				10.7	2

1As 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.

2Includes reinvested dividends of $15,265 and reinvested capital gain distributions of $20,534.

3Results calculated with capital gains reinvested.

4The MSCI World Index is unmanaged, and its results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or taxes.

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

6For 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, 2010)*
	1 year			5 years			10 years
Class A shares		–3.33	%		2.98	%		6.98	%
*Assumes reinvestment of all distributions and payment of the maximum 5.75% sales charge.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 26 and 27 for details.

Other share class results

Classes B, C, F and 529

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

Average annual total returns for periods ended December 31, 2010 (the most recent calendar quarter-end):
							10 years1/
	1 year			5 years			Life of class
Class B shares2
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares
are sold within six years of purchase		1.89	%		3.62	%		7.15	%
Not reflecting CDSC		6.89			3.96			7.15
Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		5.87			3.92			7.39
Not reflecting CDSC		6.87			3.92			7.39
Class F-1 shares3 — first sold 3/15/01
Not reflecting annual asset-based fee charged
by sponsoring firm		7.71			4.76			8.24
Class F-2 shares3 — first sold 8/1/08
Not reflecting annual asset-based fee charged
by sponsoring firm		7.99			—			0.49
Class 529-A shares4 — first sold 2/15/02
Reflecting 5.75% maximum sales charge		1.51			3.48			8.77
Not reflecting maximum sales charge		7.68			4.71			9.50
Class 529-B shares2,4 — first sold 2/21/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		1.80			3.51			8.86
Not reflecting CDSC		6.80			3.85			8.86
Class 529-C shares4 — first sold 2/22/02
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		5.81			3.86			8.78
Not reflecting CDSC		6.81			3.86			8.78
Class 529-E shares3,4 — first sold 3/4/02		7.36			4.39			8.80
Class 529-F-1 shares3,4 — first sold 9/17/02
Not reflecting annual asset-based fee charged
by sponsoring firm		7.90			4.92			11.65

1Applicable to Class B shares only. All other share classes reflect results for the life of the class.

2These shares are not available for purchase.

3These shares are sold without any initial or contingent deferred sales charge.

4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 26 and 27 for details that include expense ratios for all share classes.

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

[Begin Sidebar]

[photo of a container barge traveling on the Willamette River, Portland, OR]

Connecting the dots

How Capital World Growth and Income Fund uses an integrated global research effort to build a portfolio

[End Sidebar]

At 11 p.m. on a recent night, Sung Lee, one of eight portfolio counselors who manages assets in Capital World Growth and Income Fund, went to the office of his home in Tokyo and dialed into a conference call. Sung was joined by other investment professionals in Europe, the United States and Asia. Was it an emergency, turmoil in the global markets or a need for quick action on a security that brought Sung to the phone at such a late hour? Investors in the fund may be surprised to learn that, no, for Sung the late call was business as usual. Indeed, Sung hooks into similar calls three nights a week. He’s joined by analysts and portfolio counselors in different cities and time zones around the world — 2 p.m. in London, 9 a.m. in New York, and 6 a.m. in Los Angeles — to discuss ideas, trends and companies, and to share their thoughts.

The late hours can be tough, but it’s worth it, Sung says.

“One of the most basic but most important things we do is share information with each other,” Sung said of the investment professionals at Capital Research Global Investors (CRGI), a division of Capital Research and Management Company (CRMC), the investment adviser to Capital World Growth and Income Fund. “I’m based in Tokyo and, naturally, I’m more familiar with companies based in Asia. But we invest around the world and I have to have a global perspective. So I rely on my colleagues to keep me informed about companies in other parts of the world. We invest around the world, so we have to take a world view.”

Most investors understand the global nature of business today. A quick look at just how important overseas markets are to some U.S. companies considered as “American as apple pie” underscores the point. (For these examples, we purposely looked beyond the fund’s portfolio to avoid the appearance of promoting a fund holding.)

[Begin Sidebar]

Tupperware – In early 2010, The Wall Street Journal reported Tupperware’s chief executive as saying that in the future as much as 70% of the firm’s sales could come from emerging markets.

Buick – GM now sells more Buicks in China than in the United States.

Nike – It started with a University of Oregon track coach and a waffle iron in the 1970s and grew to become a global brand with more than 50% of its sales coming from outside the United States.

[End Sidebar]

The need to look around the globe for opportunities is growing. In 2010, Standard & Poor’s noted that “seven years ago, U.S. equities made up 57.6% of the world equity market,” but today the U.S. portion is only 42.8%. In addition, S&P reported that the U.S. share of all goods and services produced in the world has fallen from about 30% six years ago to about 17% today.

Investment professionals also need to search the globe to meet the fund’s second objective — income. Some companies outside the U.S. pay substantially higher dividends than their U.S. counterparts. For example, since 1995, two years after the fund was launched, the yield generated by stocks in the United Kingdom has been at least 50% higher every year than the yield on U.S. stocks as measured by stock indexes compiled by the Financial Times. Yields also have been consistently higher in Australia and Hong Kong than in the U.S.

Perhaps the first step to finding the best investment opportunities is to look beyond the obvious. Many economists predict that in the next decade, the emerging markets countries such as China, India and Brazil will drive global economic growth.

[Begin Sidebar]

[photo from above, looking down on people on a trading floor]

Seeking income outside the United States

Dividends have always played an important role in generating a fund’s total return. In fact, since December 31, 1929, dividends have accounted for 46% of the average annual total return generated by stocks, as measured by Standard & Poor’s 500 Composite Index as of November 30, 2010.

Since 1993, the year Capital World Growth and Income Fund was launched, companies domiciled outside the United States have generally paid higher dividends than their U.S. counterparts. As the chart below shows, dividend yields in stock markets outside the U.S., as measured by FTSE indexes for United Kingdom, Asia/Pacific and the World, have generally been higher than U.S. dividend yields over the fund’s lifetime.

[begin line chart]

	1993		1994		1995		1996		1997		1998		1999		2000		2001		2002		2003		2004		2005		2006		2007		2008		2009
United Kingdom	3.49	%	4.18	%	4.14	%	3.87	%	3.30	%	2.91	%	2.22	%	2.24	%	2.65	%	3.61	%	3.20	%	3.16	%	3.08	%	3.07	%	3.16	%	4.51	%	3.32	%
World	2.2	%	2.3	%	2.2	%	2.1	%	1.8	%	1.6	%	1.3	%	1.4	%	1.7	%	2.3	%	1.9	%	2.0	%	2.0	%	2.1	%	2.3	%	3.9	%	2.4	%
Asia/Pacific	1.1	%	1.1	%	1.2	%	1.3	%	1.7	%	1.5	%	0.9	%	1.2	%	1.5	%	1.8	%	1.6	%	1.7	%	1.7	%	1.8	%	2.1	%	3.9	%	2.4	%
United States	2.8	%	3.0	%	2.2	%	2.0	%	1.6	%	1.3	%	1.1	%	1.1	%	1.4	%	1.8	%	1.6	%	1.6	%	1.8	%	1.7	%	1.9	%	2.9	%	1.9	%

[end line chart]

Source: FactSet and Capital Group analysis

[End Sidebar]

[Begin Sidebar]

[photo of the inside of a train station]

Is this a good time to own stocks?

Over the lifetime of Capital World Growth and Income Fund, there have always been reasons to worry, reasons not to invest, reasons to sit on the sidelines or reasons to redeem shares. Below is a list, year-by-year, of events that gave investors pause followed by rate of growth for developed economies (as measured by the International Monetary Fund), the U.S. growth rate and the fund’s total return for that year after deducting the maximum sales charge. Investors who have stayed the course have been rewarded: a $10,000 investment in Capital World Growth and Income Fund when the fund began operations in 1993, with dividends reinvested, would have been worth $60,701 on November 30, 2010, at the end of the fund’s fiscal year.

		Developed- world GDP			12-month U.S. GDP			Fund total return
1993	General Motors —
	$23.5 billion loss for 1992		1.4	%		2.8	%		7.8	%
1994	Bond market selloff		3.4			4.1			7.5
1995	Oklahoma City
	Federal Building bombed		2.8			2.5			19.4
1996	AT&T cuts payroll by 40,000		2.9			3.7			23.7
1997	Asian financial crisis		3.4			4.5			16.4
1998	Russian financial crisis		2.6			4.3			15.5
1999	President Clinton impeached		3.6			4.8			19.1
2000	Shares of Qualcomm hit $650		4.1			4.1			6.4
2001	9/11		1.4			1.1			−1.8
2002	WorldCom collapses		1.7			1.8			−4.2
2003	Invasion of Iraq		1.9			2.5			28.5
2004	Indonesian tsunami		3.2			3.6			22.2
2005	Hurricane Katrina		2.6			3.0			14.8
2006	Ford Motor Co. cuts
	30,000 jobs		3.0			2.7			23.4
2007	Subprime mortgage crisis		2.7			1.9			21.2
2008	Troubled Asset Relief Program		0.2			0.0			−41.8
2009	General Motors bankrupt		−3.2			−2.6			37.5

[End Sidebar]

At first glance, it might seem that the best way to take advantage of these burgeoning economies would be to invest in companies in those countries. But investment decisions aren’t usually so straightforward, says Larry Solomon, an information technology analyst at CRGI’s San Francisco office. In fact, rapidly growing Asian economies may prove more beneficial for a German automaker or a European pharmaceutical company than for domestic Chinese firms. For example, Chinese sales now account for over one-quarter of profits earned by BMW and Mercedes. Swiss drug maker Novartis, eyeing opportunities in China, recently agreed to acquire a Chinese vaccine maker.

“When we look at a company, we have to know what the drivers are for the company in every market in the world. The only way to do that is to have a globally integrated research effort because the drivers aren’t always obvious,” Larry says.

Nor does looking at growth rates, or even sales, in a country always tell you the whole story, notes Joe Matt, a CRGI consumer products analyst. The Chinese market offers a good example, he says. “Many companies grow in China, but some companies grow more rapidly and some grow more profitably than others.”

Multinational cosmetic companies, for example, are seeing solid sales growth in China and India but those sales aren’t necessarily boosting their profits. “There is so much local competition in India and China. Multinationals tend to have higher margins in Latin America and Russia, where local competition isn’t as formidable,” Joe says.

Thus, the portfolio counselors’ ability to “connect the dots” among companies and industries around the world can directly determine which securities are added to the fund’s portfolio. But how do the investment professionals “connect the dots?” The two most important elements are talk and travel.

Traveling the globe in search of investment opportunities is nothing new to CRMC, which has been investing in stocks outside the U.S. for more than 50 years. (CRMC is the investment adviser to the American Funds family of funds and CRGI is one of two investment management divisions within CRMC.)

Today, about 60% of CRMC’s research efforts are focused on companies outside the United States. In fact, as part of its integrated, global research network, CRMC has offices around the world — Los Angeles, San Francisco, New York, Washington, D.C., London, Geneva, Tokyo, Hong Kong, Singapore, Beijing and Mumbai.

Analysts in these offices focus on companies in their regions. For example, the auto industry is a global business, but within CRGI one analyst will follow the North American auto industry, while another studies the European industry and still another focuses on automakers in Asia.

“While these research offices are spread around the world, we make sure they aren’t treated like far-off islands,” says Mark Denning, president of Capital World Growth and Income Fund. “We try to make things as seamless as possible, so we spend a lot of time communicating with our colleagues around the world.”

The key ingredient in balancing a regional focus with a global view is CRGI’s cluster system. Analysts are grouped in “clusters” and hold regular conference calls to discuss individual companies and industry trends. In all, CRGI has 15 different clusters ranging from autos and trucks, to consumer staples, oil and gas, utilities and others.

[Begin Sidebar]

A global reach

During the 12 months ended November 30, 2009, Capital World Growth and Income Fund’s investment professionals visited companies around the world. The map below shows the countries visited by investment professionals for Capital Research and Management Company (CRMC), the investment adviser to the American Funds, and CRMC’s research offices around the globe.

[illustration of a world map]

Research offices

San Francisco	(1975)
Los Angeles	(1931)
New York	(1943)
Washington, D.C.	(1974)
London	(1979)
Geneva	(1962)
Mumbai	(2008)
Beijing	(2009)
Tokyo	(1982)
Hong Kong	(1983)
Singapore	(1989)

Countries visited in 2009
The Americas
	Bermuda
	Brazil
	Canada
	Chile
	Columbia
	Mexico
	Peru
	United States
Pacific Basin, South Asia
	Australia
	China
	Hong Kong
	India
	Indonesia
	Japan
	Malaysia
	Singapore
	South Korea
	Taiwan
	Thailand
	Vietnam
Western Europe
	Austria
	Belgium
	Denmark
	Finland
	France
	Germany
	Greece
	Ireland
	Italy
	Monaco
	Netherlands
	Norway
	Portugal
	Spain
	Sweden
	Switzerland
	United Kingdom
Eastern Europe and Central Asia
	Czech Republic
	Estonia
	Hungary
	Lithuania
	Poland
	Romania
	Russia
	Turkey
Africa and Middle East
	Angola
	Bahrain
	Israel
	Kuwait
	Morocco
	Saudi Arabia
	South Africa
	United Arab Emirates
	Zimbabwe

[End Sidebar]

“If you’re following a tech company in the U.S., you’ve got to know what’s going on with tech companies in Taiwan and China,” Mark says. “The same is true with consumer products. Right now there’s an American consumer products company that’s cutting prices right, left and center. We have to know what that means for its European competitors.”

In addition to calls focused strictly on industries, the fund’s investment professionals regularly dial into global conference calls centered on broad investment ideas, themes and regions. Joyce Gordon, a Los Angeles-based portfolio counselor for the fund, says she has investment calls almost every day. For example, one call focuses just on the conditions in the United States, another on bonds, and a third on global trends.

The constant communication can lead to the discovery of good opportunities, Joyce notes. Recently, our mining industry analyst, who’s been following the industry for 20 years, mentioned that the companies he followed were doing so well that they were going to increase their capital spending. After hearing that, the mining equipment analyst became even more interested in the prospects for mining equipment stocks. After thoroughly researching the companies, he recommended one and it was added to the fund’s portfolio.

“That shows the strength of our global coverage and the strength we have across industries,” Joyce said.

Of course, in the investment business, the analysts and portfolio counselors can’t just phone it in. They have to hit the road. Indeed, it would be hard to overestimate the value of visiting a company in person, Mark says. “When you travel halfway around the globe to visit a company, the managers want to give you a bit of time. When you see them in their offices, you get a different perspective than you do when you’re attending an investment conference with a thousand other investment professionals.”

Joyce spends about half her time traveling to visit companies. The insights she gains are invaluable, she says, and she offered a recent example:

Joyce and a group of other investment professionals were meeting with companies in Asia. She’d been calling on one firm for many years and knew the management well. “Whenever we visited in the past, the chairman was always very excited to talk about his company,” Joyce said. “But the last time, we really got the sense something was changing. Trends we had been seeing at similar companies led us to a decision to sell the stock. Not long after our visit, the company issued a profit warning and the stock dropped. The company’s growth did slow down and the stock price lagged. While it is subtle, that kind of insight isn’t something you can get from reading an annual report or talking to someone on the phone.”

[Begin Sidebar]

Investment clusters: A way to see the forest and the trees

[photo of a man and woman walking on a train platform]

The investment professionals who manage the assets of Capital World Growth and Income Fund face interesting questions every day: How do you see the forest and the individual trees at the same time? How can an analyst thoroughly research every company while simultaneously keeping an eye on the whole industry? The task is even more difficult when you consider that the forest, or in this case the industry, probably is spread around the world.

Capital Research Global Investors (CRGI) resolves this dilemma, in part, by dividing industries into regions — one analyst may follow an industry in North America, another in Europe and a third in Asia.

But in today’s global economy, analysts must know what’s happening around the world, not just in a single region. To solve this dilemma, CRGI’s analysts meet regularly with their colleagues around the world in small groups, or clusters, to discuss their industries. There are 15 clusters within CRGI ranging from autos and trucks to media and the Internet, to consumer staples, to chemicals. In addition to the clusters, there are weekly meetings on broad topics attended by industry analysts and portfolio counselors. (Analysts follow specific industries while portfolio counselors are generalists and can invest across industries.)

One such group, nicknamed Yield Dogs because of the members’ belief that “dividends ought to grow,” focuses on dividend-paying companies around the world with an eye to producing income, one of the primary objectives of the fund.

“We do a lot of calls where we’ll discuss an industry globally,” says Joyce Gordon, a portfolio counselor in Capital World Growth and Income Fund and a member of the Yield Dogs. “Recently, we talked about the telecom industry. A lot of telecom companies are paying solid dividends and we want to compare them company-to-company around the world so we can make the best investment decisions.”

Another cluster group, which calls itself the Tech Zeppelins and consists of technology company analysts, meets twice a month. They meet that often because the technology industry moves so fast.

“In the old days, you had these dominant U.S. tech companies,” says Dylan Yolles, a CRGI portfolio counselor who followed the technology industry as an analyst for a number of years. Those days are long gone, he said. Today it’s a global industry.

“Now you have to have a complete view of the global supply chain. Every time Apple sells an iPad, it has an impact on the companies in Asia that supply its components,” Dylan said.

At the same time, analysts following component companies in Asia need to know what U.S.-based firms, such as Apple, are planning and if their business is growing.

In addition to the regularly scheduled calls, the analysts distribute their research notes and report to other analysts and portfolio counselors. They also gather annually for face-to-face meetings to share information about the companies they follow.

In a global economy, being able to see the forest and the trees isn’t a luxury; it’s a necessity. The cluster system provides the CRGI analysts with the tools to help make that tough task a lot easier.

[End Sidebar]

[Begin Pull Quote]

[photo of a 2 Euro coin on top of a financial newspaper]

“When we look at a company, we have to know what the drivers are for the company in every market in the world. The only way to do that is to have a globally integrated research effort because the drivers aren’t always obvious.”

– Larry Solomon, information technology analyst

[End Pull Quote]

A global outlook, a regional focus and a worldwide search for growth opportunities all drive the constant communication among the fund’s investment professionals. “So while it’s not fun taking an hour call at 11 p.m. three nights a week, it’s worth the effort,” Sung says.

“We’re trying to put the best ideas possible to work in the fund’s portfolio. Of course we want diversification, but we also want the highest conviction ideas at the lowest possible price. That often means that I’m choosing among different types of companies around the world. I might be choosing between a food company in Japan and a shoe company in China.”

To make those choices, the investment professionals rely on CRGI’s integrated global research to connect the dots. n

Summary investment portfolio  November 30, 2010

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

[begin pie chart]

	Percent
	of net
Industry sector diversification	assets
Financials		13.74	%
Information technology		11.44
Industrials		10.79
Telecommunication services		9.97
Consumer staples		9.71
Other industries		37.13
Bonds & notes		1.25
Convertible securities, preferred stocks & rights		.66
Short-term securities & other assets less liabilities		5.31

[end pie chart]

Country diversification (percent of net assets)
United States	27.7	%
Euro zone*	20.7
United Kingdom	9.0
Switzerland	5.9
Taiwan	3.8
Sweden	3.5
Japan	3.4
China	3.1
Australia	2.8
Brazil	2.2
Other countries	11.3
Bonds & notes, short-term securities & other assets less liabilities	6.6
*Countries using the euro as a common currency; those represented in the fund's portfolio are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal and Spain.

							Percent
				Value			of net
Common stocks  - 92.78%	Shares				(000	)	assets
Financials  - 13.74%
Banco Santander, SA		117,391,276		$	1,112,372			1.45	%
A leading Spanish bank, with a strong franchise in Latin America and the U.K.
Société Générale		15,500,748			718,412			.93
Has retail, corporate and investment banking operations around the world, with particular strength in Europe.
Prudential PLC		80,563,580			711,776			.93
Major life insurance and pension provider with operations in the U.S., U.K. and Asia-Pacific region.
Industrial and Commercial Bank of China Ltd., Class H		913,711,000			710,720			.92
A state-owned commercial bank in China and one of the world's largest banks.
Credit Suisse Group AG		13,192,087			486,858			.63
One of the world's largest private banks, and a provider of investment banking, insurance and asset management services.
HSBC Holdings PLC (Hong Kong)		26,720,033			271,670
HSBC Holdings PLC (United Kingdom)		20,476,231			206,482			.62
One of the world's largest international banking and financial services organizations.
China Construction Bank Corp., Class H		470,890,000			425,099			.55
Major China-based commercial bank.
Banco Bradesco SA, preferred nominative		20,693,435			405,155			.53
One of the largest private banks in Brazil.
Other securities					5,518,706			7.18
					10,567,250			13.74
Information technology  - 11.44%
Microsoft Corp.		67,005,000			1,689,196			2.20
A world leader in software and Internet technologies. Its products include the Windows operating system and Office software.
MediaTek Inc.		49,577,999			635,125			.83
Manufactures optical storage media for PCs and DVDs.
Taiwan Semiconductor Manufacturing Co. Ltd.		199,564,051			415,070
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		20,226,531			217,435			.82
One of the world's largest semiconductor manufacturers.
Nintendo Co., Ltd.		1,717,800			466,550			.61
Makes video game machines and software.
Google Inc., Class A (1)		801,800			445,568			.58
One of the most frequently used website search engines in the world.
Acer Inc.  (2)		147,294,687			434,890			.57
Leading computer manufacturer based in Taiwan.
Canon, Inc.		9,129,100			430,330			.56
One of the world's premier manufacturers of cameras, copiers, printers and optical equipment.
Oracle Corp.		14,867,000			402,004			.52
Major supplier of database management software. Also develops business applications and provides consulting and support.
Other securities					3,661,200			4.75
					8,797,368			11.44
Industrials  - 10.79%
AB Volvo, Class B (1)		45,489,080			660,392			.86
One of Sweden's major manufacturers of trucks, buses, and marine and aerospace engines.
ASSA ABLOY AB, Class B		22,535,000			604,962			.79
Manufactures mechanical, electromagnetic and electronic locks and security systems.
Siemens AG		5,205,000			569,493			.74
A major worldwide producer of electrical and electronic equipment used in industrial and professional applications.
Union Pacific Corp.		5,806,100			523,188			.68
Operates the largest railroad in the U.S.; also delivers freight to Canada and Mexico.
Other securities					5,939,235			7.72
					8,297,270			10.79
Telecommunication services  - 9.97%
AT&T Inc.		50,919,000			1,415,039			1.84
Global provider of telecommunication services, including local and long-distance, Internet and wireless communications.
América Móvil, SAB de CV, Series L (ADR)		23,692,599			1,337,684			1.74
Latin America's largest cellular communications provider.
TeliaSonera AB		72,730,000			560,508			.73
Telecommunications company serving the Nordic and Baltic regions, and mobile communications provider serving northern and eastern Europe and Spain.
Singapore Telecommunications Ltd.		198,909,810			467,013			.61
Telecommunications company primarily serving Singapore and Australia, with interests in other countries.
Turkcell Iletisim Hizmetleri AS		60,733,000			411,913			.53
Owner and operator of GSM network in Turkey.
Other securities					3,479,661			4.52
					7,671,818			9.97
Consumer staples  - 9.71%
Philip Morris International Inc.		24,271,000			1,380,777			1.79
One of the world's largest international tobacco companies.
Wesfarmers Ltd.		27,072,090			816,343			1.06
Australia-based retailer that operates home improvement and convenient stores, and has a presence in coal and natural gas production, and insurance.
Altria Group, Inc.		31,667,300			760,015			.99
The world's largest tobacco company. The group also owns a large interest in the global brewer SABMiller.
Kraft Foods Inc., Class A		21,541,339			651,625			.85
This food and beverage giant is known for signature brands such as Kraft cheeses, Nabisco and Oscar Mayer.
Nestlé SA		11,073,330			601,853			.78
Global packaged food and beverage company based in Switzerland.
Anheuser-Busch InBev NV		10,765,150			585,847
Anheuser-Busch InBev NV, VVPR STRIPS (1)		3,247,475			17			.76
One of the world's largest brewers.
Other securities					2,675,206			3.48
					7,471,683			9.71
Consumer discretionary  - 8.79%
Honda Motor Co., Ltd.		15,022,700			540,307			.70
Develops, manufactures and sells automobiles, motorcycles and power equipment globally.
DIRECTV, Class A (1)		12,917,000			536,443			.70
Digital television services provider in the United States, Latin America and the Caribbean.
Daimler AG (1)		8,238,158			533,287			.69
One of the world's largest automakers and heavy truck manufacturers.
Home Depot, Inc.		15,310,000			462,515			.60
The world's largest home improvement retailer.
Cie. Générale des Établissements Michelin, Class B		5,738,000			388,201			.50
One of the world's largest tire makers. Its brands include Uniroyal and Goodrich.
Other securities					4,303,160			5.60
					6,763,913			8.79
Health care  - 8.06%
Bayer AG		26,028,000			1,890,307			2.46
Makes pharmaceuticals and over-the-counter medicines, and develops medical diagnostic equipment.
Novartis AG		29,404,063			1,560,072			2.03
One of the world's largest pharmaceutical companies.
Merck & Co., Inc.		30,694,900			1,058,053			1.38
Among the world's largest pharmaceutical companies, and a leader in cardiovascular medicine.
Roche Holding AG		4,591,100			630,353			.82
A world leader in pharmaceuticals and diagnostic research.
Other securities					1,056,315			1.37
					6,195,100			8.06
Energy  - 6.81%
BP PLC		191,366,121			1,267,884			1.65
One of the world's largest oil companies.
Royal Dutch Shell PLC, Class B		17,777,849			527,611
Royal Dutch Shell PLC, Class A		7,850,000			236,350
Royal Dutch Shell PLC, Class A (ADR)		3,504,000			212,588
Royal Dutch Shell PLC, Class B (ADR)		689,599			41,590			1.32
A global group of energy and oil companies.
ConocoPhillips		11,233,200			675,901			.88
This global oil and natural gas company also produces plastics and chemicals.
Eni SpA		29,153,000			586,552			.76
One of the world's leading oil and gas companies.
Other securities					1,691,771			2.20
					5,240,247			6.81
Utilities  - 4.98%
GDF SUEZ		38,941,860			1,291,514			1.68
Major natural gas and electricity company based in France.
Scottish and Southern Energy PLC		36,238,336			631,310			.82
One of the U.K.'s largest gas and electricity companies.
CEZ, a s		10,016,000			391,324			.51
Electricity company based in the Czech Republic.
Other securities					1,514,097			1.97
					3,828,245			4.98
Materials  - 3.67%
ArcelorMittal		11,782,654			371,426			.48
One of the world's largest steel producers.
Other securities					2,451,755			3.19
					2,823,181			3.67
Miscellaneous -  4.82%
Other common stocks in initial period of acquisition					3,708,832			4.82
Total common stocks (cost: $63,646,208,000)					71,364,907			92.78
							Percent
				Value			of net
Preferred stocks  - 0.30%					(000	)	assets
Financials - 0.29%
Other securities					222,236			.29
Miscellaneous - 0.01%
Other preferred stocks in initial period of acquisition					9,667			.01
Total preferred stocks (cost: $181,645,000)					231,903			.30
							Percent
				Value			of net
Rights - 0.05%					(000	)	assets
Miscellaneous -  0.05%
Other rights in initial period of acquisition					35,212			.05
Total rights (cost: $0)					35,212			.05
							Percent
				Value			of net
Convertible securities  - 0.31%					(000	)	assets
Other - 0.22%
Other securities					167,435			.22
Miscellaneous -  0.09%
Other convertible securities in initial period of acquisition					72,607			.09
Total convertible securities (cost: $205,473,000)					240,042			.31
	Principal						Percent
	amount			Value			of net
Bonds & notes  - 1.25%		(000	)		(000	)	assets
Energy  - 0.20%
BP Capital Markets PLC 3.125%-5.25% 2012-2015	$	58,965			60,680			.08
Other securities					92,315			.12
					152,995			.20
Telecommunication services  - 0.15%
América Móvil, SAB de CV 8.46% 2036	MXN286,400				21,485			.03
Other securities					94,198			.12
					115,683			.15
Other - 0.90%
Other securities					690,175			.90
Total bonds & notes (cost: $830,138,000)					958,853			1.25
	Principal						Percent
	amount			Value			of net
Short-term securities  - 4.92%		(000	)		(000	)	assets
Freddie Mac 0.17%-0.40% due 12/6/2010-6/21/2011	$	1,060,400			1,059,821			1.38
Fannie Mae 0.185%-0.49% due 12/1/2010-5/16/2011		504,500			504,292			.65
Other securities					2,223,981			2.89
Total short-term securities (cost: $3,787,912,000)					3,788,094			4.92
Total investment securities (cost: $68,651,376,000)					76,619,011			99.61
Other assets less liabilities					303,184			.39
Net assets				$	76,922,195			100.00	%

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

"Other securities" include all issues that are not disclosed separately in the summary investment portfolio. Some of these securities (with an aggregate value of  $1,483,192,000, which represented 1.93% of the net assets of the fund) may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.

"Miscellaneous" and "Other securities" include securities which were valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities was $29,877,000, which represented .04% of the net assets of the fund.

Investments in affiliates

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund's affiliated-company holdings is either shown in the summary investment portfolio or included in the value of "Other securities" under the respective industry sectors. Further details on such holdings and related transactions during the year ended November 30, 2010, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Dividend income (000)		Value of affiliates at 11/30/2010 (000)
Acer Inc.		103,076,451		44,218,236		-		147,294,687	$	9,827	$	434,890
Compal Electronics, Inc.		-		287,352,418		-		287,352,418		15,836		357,276
ComfortDelGro Corp. Ltd.		135,100,000		-		-		135,100,000		5,312		155,528
Kesa Electricals PLC		26,593,098		-		-		26,593,098		2,413		67,961
Air France (1) (3)		15,541,220		754,800		4,570,204		11,725,816		-		-
									$	33,388	$	1,015,655

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

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

(2) Represents an affiliated company as defined under the Investment Company Act of 1940.

(3) Unaffiliated issuer at 11/30/2010.

Key to abbreviations

ADR = American Depositary Receipts

MXN = Mexican pesos

The descriptions of the companies shown in the summary investment portfolio, which were obtained from published reports and other sources believed to be reliable, are supplemental and are not covered by the Report of Independent Registered Public Accounting Firm.

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities
at November 30, 2010	(dollars in thousands)
Assets:
Investment securities, at value:
Unaffiliated issuers (cost: $67,689,196)	$	75,603,356
Affiliated issuers (cost: $962,180)		1,015,655	$	76,619,011
Cash denominated in currencies other than U.S. dollars
(cost: $65,460)				64,501
Cash				1,347
Receivables for:
Sales of investments		311,084
Sales of fund's shares		59,620
Dividends and interest		196,861		567,565
				77,252,424
Liabilities:
Payables for:
Purchases of investments		147,162
Repurchases of fund's shares		98,126
Investment advisory services		24,930
Services provided by related parties		55,991
Directors' deferred compensation		983
Non-U.S. taxes		1,744
Other		1,293		330,229
Net assets at November 30, 2010			$	76,922,195
Net assets consist of:
Capital paid in on shares of capital stock			$	83,902,454
Undistributed net investment income				502,148
Accumulated net realized loss				(15,448,111	)
Net unrealized appreciation				7,965,704
Net assets at November 30, 2010			$	76,922,195

(dollars and shares in thousands, except per-share amounts)
Total authorized capital stock - 4,000,000 shares, $.01 par value (2,282,972 total shares outstanding)
	Net assets		Shares outstanding		Net asset value per share
Class A	$	52,156,388		1,545,428	$	33.75
Class B		2,459,194		73,343		33.53
Class C		5,775,300		172,924		33.40
Class F-1		3,826,979		113,599		33.69
Class F-2		1,463,973		43,383		33.75
Class 529-A		1,972,384		58,586		33.67
Class 529-B		167,180		4,986		33.53
Class 529-C		525,974		15,695		33.51
Class 529-E		87,070		2,590		33.61
Class 529-F-1		59,020		1,752		33.70
Class R-1		268,537		8,026		33.46
Class R-2		1,259,047		37,708		33.39
Class R-3		2,310,403		68,849		33.56
Class R-4		2,061,986		61,219		33.68
Class R-5		1,370,449		40,584		33.77
Class R-6		1,158,311		34,300		33.77
See Notes to Financial Statements

Statement of operations
for the year ended November 30, 2010	(dollars in thousands)
Investment income:
Income:
Dividends (net of non-U.S. taxes of $212,649; also includes $33,388 from affiliates)	$	2,531,845
Interest (net of non-U.S. taxes of $70)		112,816		$	2,644,661
Fees and expenses*:
Investment advisory services		294,012
Distribution services		262,258
Transfer agent services		82,003
Administrative services		38,877
Reports to shareholders		4,317
Registration statement and prospectus		2,982
Directors' compensation		811
Auditing and legal		271
Custodian		13,398
State and local taxes		863
Other		3,894			703,686
Net investment income					1,940,975
Net realized gain and unrealized depreciation on investments and currency:
Net realized gain (loss) on:
Investments (includes $26,058 net loss from affiliates)		735,270
Currency transactions		(7,061	)		728,209
Net unrealized depreciation on:
Investments (net of non-U.S. taxes of $1,744)		(986,658	)
Currency translations		(5,184	)		(991,842	)
Net realized gain and unrealized depreciation on investments and currency					(263,633	)
Net increase in net assets resulting from operations				$	1,677,342
(*) 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
		2010			2009
Operations:
Net investment income	$	1,940,975		$	1,826,732
Net realized gain (loss) on investments and currency transactions		728,209			(11,514,127	)
Net unrealized (depreciation) appreciation on investments and currency translations		(991,842	)		31,597,239
Net increase in net assets resulting from operations		1,677,342			21,909,844
Dividends paid to shareholders from net investment income		(1,992,126	)		(2,362,285	)
Net capital share transactions		(3,819,339	)		(3,027,646	)
Total (decrease) increase in net assets		(4,134,123	)		16,519,913
Net assets:
Beginning of year		81,056,318			64,536,405
End of year (including undistributed net investment income: $502,148 and $559,176, respectively)	$	76,922,195		$	81,056,318
See Notes to Financial Statements

Notes to financial statements

1.   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. In 2009, shareholders approved a proposal to reorganize the fund from a Maryland corporation to a Delaware statutory trust. The reorganization may be completed in 2011; however, the fund reserves the right to delay the implementation.

The fund has 16 share classes consisting of five retail share classes, five 529 college savings plan share classes and six retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The six retirement plan share classes (R-1, R-2, R-3, R-4, R-5 and R-6) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 5.75%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4, R-5 and R-6	None	None	None

*Class B and 529-B shares of the fund are not available for purchase.

Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds.Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.

2.   Significant accounting policies

The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.

Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities.Dividend income is recognized on the ex-dividend date and interest income is recognizedon an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

Class allocations – Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.

Dividends and distributions to shareholders –Dividends and distributions paid to shareholders are recorded on the ex-dividend date.

Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates in effect on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.

3.   Valuation

The fund’s investments are reported at fair value as defined by accounting principles generally accepted in the United States of America. The fund generally determines its net asset value as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs – The fund uses the following methods and inputs to establish the fair value of its assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.

Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades.

Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained as of approximately 3:00 p.m. New York time from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.

Fixed-income class	Examples of standard inputs
All	Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”)
Corporate bonds & notes; convertible securities	Standard inputs and underlying equity of the issuer
Bonds & notes of governments & government agencies	Standard inputs and interest rate volatilities
Mortgage-backed; asset-backed obligations	Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information

Where the investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type.

Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.

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

Classifications - The fund classifies its assets and liabilities into three levels based on the inputs used to value the assets or liabilities.Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment . For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.The following table presentsthe fund’s valuation levels as of November 30, 2010 (dollars in thousands):

Investment securities:	Level 1		Level 2		Level 3		Total
Common stocks:
Financials	$	10,567,250	$	-	$	-	$	10,567,250
Information technology		8,797,368		-		-		8,797,368
Industrials		8,297,270		-		-		8,297,270
Telecommunication services		7,671,818		-		-		7,671,818
Consumer staples		7,471,683		-		-		7,471,683
Consumer discretionary		6,763,913		-		-		6,763,913
Health care		6,195,100		-		-		6,195,100
Energy		5,240,247		-		-		5,240,247
Utilities		3,828,245		-		-		3,828,245
Materials		2,823,181		-		-		2,823,181
Miscellaneous		3,708,832		-		-		3,708,832
Preferred stocks		-		231,903		-		231,903
Rights		21,709		13,503		-		35,212
Convertible securities		10,910		229,132		-		240,042
Bonds & notes		-		958,853		-		958,853
Short-term securities		-		3,788,094		-		3,788,094
Total	$	71,397,526	$	5,221,485	$	-	$	76,619,011

4.   Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of political, social or economic developments in the country or region in which the issuer operates. These securities may also lose value due to changes in the exchange rate of the country’s currency against the U.S. dollar. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards than those in the U.S. These risks may be heightened in connection with investments in developing countries.

Investing in developing countries— Investing in countries with developing economies and/or markets may involve risks in addition to and greater than those generally associated with investing in developed countries. For instance, developing countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be more unstable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid than securities issued in countries with more developed economies or markets. Because these markets may not be as mature, there may be increased settlement risks for transactions in local securities.

Investing in growth-oriented stocks — Growth-oriented stocks and other equity-type securities may involve larger price swings and greater potential for loss than other types of investments.

Investing in income-oriented stocks — Income provided by the fund may be affected by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests.

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives.

5.   Taxation and distributions

Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended November 30, 2010, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2006, by state tax authorities for tax years before 2005 and by tax authorities outside the U.S. for tax years before 2003.

Non-U.S. taxation – Dividend and interest income 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.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in securities outside the U.S.; and net capital losses.The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realize d gains are recorded by the fund for financial reporting purposes.

During the year ended November 30, 2010, the fund reclassified $5,589,000 from undistributed net investment income to accumulated net realized loss; and reclassified $288,000 from undistributed net investment income to capital paid in on shares of capital stock to align financial reporting with tax reporting.

As of November 30, 2010, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows:

	(dollars in thousands)
Undistributed ordinary income				$	793,497
Post-October currency loss deferrals (realized during the period November 1, 2010, through November 30, 2010)*					(127	)
Capital loss carryforwards†:
Expiring 2016	$	(2,362,223	)
Expiring 2017		(13,178,426	)		(15,540,649	)
Gross unrealized appreciation on investment securities					12,545,579
Gross unrealized depreciation on investment securities					(4,783,795	)
Net unrealized appreciation on investment securities					7,761,784
Cost of investment securities					68,857,227
*These deferrals are considered incurred in the subsequent year.
†Reflects the utilization of capital loss carryforwards of $366,527,000. The capital loss carryforwards will be used to offset any capital gains realized by the fund in future years through the expiration dates. The fund will not make distributions from capital gains while capital loss carryforwards remain.

Ordinary income distributions paid to shareholders from net investment income and currency gains were as follows (dollars in thousands):

	Year ended November 30
Share class	2010		2009
Class A	$	1,419,723	$	1,709,423
Class B		50,896		76,151
Class C		114,584		158,321
Class F-1		105,936		130,498
Class F-2		36,252		20,416
Class 529-A		48,684		49,808
Class 529-B		3,202		4,336
Class 529-C		9,293		10,753
Class 529-E		1,932		2,049
Class 529-F-1		1,481		1,373
Class R-1		4,714		4,509
Class R-2		23,840		27,566
Class R-3		53,063		55,202
Class R-4		51,259		49,554
Class R-5		42,415		55,468
Class R-6*		24,852		6,858
Total	$	1,992,126	$	2,362,285
*Class R-6 was offered beginning May 1, 2009.

6.   Fees and transactions with related parties

Capital Research and Management Company ("CRMC"), the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares, and American Funds Service Company® ("AFS"), the fund’s transfer agent.

Investment advisory services - The Investment Advisory and Service Agreement with CRMC providesfor monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.600% on the first $500 million of daily net assets and decreasing to 0.350% on such assets in excess of $115 billion. For the year ended November 30, 2010, the investment advisory services fee was $294,012,000, which was equivalent to an annualized rate of 0.376% of average dailynet 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 Classes F-2, R-5 and R-6. Under the plans, the board of directors approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted below. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans.All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compens ate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Classes A and 529-A, the board of directors has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30%is not exceeded. As of November 30, 2010, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.

Share class	Currently approved limits	Plan limits
Class A	0.30%	0.30%
Class 529-A	0.30	0.50
Classes B and 529-B	1.00	1.00
Classes C, 529-C and R-1	1.00	1.00
Class R-2	0.75	1.00
Classes 529-E and R-3	0.50	0.75
Classes F-1, 529-F-1 and R-4	0.25	0.50

Transfer agent services –The fund hasa transfer agent agreement with AFS for Classes A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC as described below.

Administrative services – The fund has an administrative services agreement with CRMC for all share classes, except Classes A and B, to provide certain services, including transfer agent and recordkeeping services; coordinating, monitoring, assisting and overseeing third-party service providers; and educating advisers and shareholders about the impact of market-related events, tax laws affecting investments, retirement plan restrictions, exchange limitations and other related matters. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services.

Each 529 share class is subject to an additional administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan.The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonw ealth of Virginia is not considered a related party.

Expenses under the agreements described above for the year ended November 30, 2010, were as follows (dollars in thousands):

					Administrative services
Share class	Distribution services		Transfer agent services		CRMC administrative services		Transfer agent services		Commonwealth of Virginia administrative services
Class A	$	125,940	$	77,991	Not applicable		Not applicable		Not applicable
Class B		26,800		4,012	Not applicable		Not applicable		Not applicable
Class C		60,603	Included in administrative services		$	9,096	$	1,494	Not applicable
Class F-1		9,833				5,266		444	Not applicable
Class F-2	Not applicable					1,698		72	Not applicable
Class 529-A		3,917				1,888		329	$	1,868
Class 529-B		1,757				177		62		176
Class 529-C		5,038				511		149		506
Class 529-E		416				84		15		83
Class 529-F-1		-				54		9		53
Class R-1		2,447				325		58	Not applicable
Class R-2		9,390				1,859		3,405	Not applicable
Class R-3		11,224				3,301		1,085	Not applicable
Class R-4		4,893				2,861		85	Not applicable
Class R-5	Not applicable					1,405		31	Not applicable
Class R-6	Not applicable					424		4	Not applicable
Total	$	262,258	$	82,003	$	28,949	$	7,242	$	2,686

Directors’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, directors who are unaffiliated with CRMCmay 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 $811,000, shown on the accompanying financial statements, includes $697,000 in current fees (either paid in cash or deferred) and a net increase of $114,000 in the val ue of the deferred amounts.

Affiliated officers and directors – Officers and certain directors of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or directors received any compensation directly from the fund.

7.   Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):

	Sales(*)				Reinvestments of dividends				Repurchases(*)						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Year ended November 30, 2010
Class A	$	5,025,669		150,761	$	1,358,119		41,656	$	(10,048,693	)		(305,718	)	$	(3,664,905	)		(113,301	)
Class B		52,990		1,592		49,546		1,535		(626,783	)		(19,087	)		(524,247	)		(15,960	)
Class C		596,548		18,046		106,619		3,322		(1,322,532	)		(40,591	)		(619,365	)		(19,223	)
Class F-1		978,714		29,455		97,778		3,005		(1,374,973	)		(41,920	)		(298,481	)		(9,460	)
Class F-2		698,708		21,193		27,783		853		(427,295	)		(13,136	)		299,196			8,910
Class 529-A		317,567		9,573		48,676		1,498		(189,211	)		(5,763	)		177,032			5,308
Class 529-B		5,201		157		3,201		99		(28,879	)		(881	)		(20,477	)		(625	)
Class 529-C		95,231		2,881		9,291		289		(68,610	)		(2,102	)		35,912			1,068
Class 529-E		15,153		457		1,931		60		(10,259	)		(312	)		6,825			205
Class 529-F-1		17,414		526		1,480		46		(8,429	)		(256	)		10,465			316
Class R-1		89,203		2,707		4,682		146		(42,709	)		(1,305	)		51,176			1,548
Class R-2		334,541		10,184		23,736		739		(365,536	)		(11,183	)		(7,259	)		(260	)
Class R-3		708,772		21,473		52,527		1,624		(655,398	)		(19,946	)		105,901			3,151
Class R-4		703,102		21,219		51,110		1,573		(532,522	)		(16,122	)		221,690			6,670
Class R-5		410,246		12,349		42,052		1,285		(672,851	)		(20,322	)		(220,553	)		(6,688	)
Class R-6		742,101		22,472		24,849		766		(139,199	)		(4,234	)		627,751			19,004
Total net increase
(decrease)	$	10,791,160		325,045	$	1,903,380		58,496	$	(16,513,879	)		(502,878	)	$	(3,819,339	)		(119,337	)
Year ended November 30, 2009
Class A	$	5,634,311		202,086	$	1,632,579		60,039	$	(10,857,239	)		(407,937	)	$	(3,590,349	)		(145,812	)
Class B		146,474		5,569		73,743		2,731		(572,222	)		(21,521	)		(352,005	)		(13,221	)
Class C		663,023		23,791		149,763		5,564		(1,340,195	)		(51,270	)		(527,409	)		(21,915	)
Class F-1		1,062,501		38,240		114,839		4,234		(1,703,989	)		(63,851	)		(526,649	)		(21,377	)
Class F-2		983,737		34,325		13,832		487		(153,120	)		(5,313	)		844,449			29,499
Class 529-A		245,229		8,767		49,793		1,831		(156,871	)		(5,846	)		138,151			4,752
Class 529-B		11,926		462		4,336		160		(14,889	)		(562	)		1,373			60
Class 529-C		81,220		2,922		10,746		397		(58,574	)		(2,176	)		33,392			1,143
Class 529-E		12,904		465		2,048		75		(8,500	)		(317	)		6,452			223
Class 529-F-1		11,134		397		1,373		51		(6,695	)		(243	)		5,812			205
Class R-1		71,826		2,580		4,454		164		(31,923	)		(1,164	)		44,357			1,580
Class R-2		359,598		13,225		27,535		1,019		(256,621	)		(9,388	)		130,512			4,856
Class R-3		677,243		24,411		55,047		2,027		(438,046	)		(15,794	)		294,244			10,644
Class R-4		618,187		22,241		49,529		1,816		(418,241	)		(15,026	)		249,475			9,031
Class R-5		597,447		21,560		53,891		1,991		(852,656	)		(31,119	)		(201,318	)		(7,568	)
Class R-6(†)		426,564		15,423		6,858		234		(11,555	)		(361	)		421,867			15,296
Total net increase
(decrease)	$	11,603,324		416,464	$	2,250,366		82,820	$	(16,881,336	)		(631,888	)	$	(3,027,646	)		(132,604	)
(*) Includes exchanges between share classes of the fund.
(†) Class R-6 was offered beginning May 1, 2009.

8.   Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $18,376,923,000 and $22,714,376,000, respectively, during the year ended November 30, 2010.

Financial highlights(1)

				Income (loss) from investment operations(2)								Dividends and distributions
		Net asset value, beginning of period		Net investment income(3)		Net (losses) 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 period		Total return(4) (5)			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers(5)			Ratio of net income to average net assets(3) (5)
Class A:
Year ended 11/30/2010		$	33.80	$	.86	$	(.03	)	$	.83		$	(.88	)	$	-			$	(.88	)	$	33.75		2.57	%	$	52,156		.79	%		.79	%		2.59	%
Year ended 11/30/2009			25.50		.78		8.52			9.30			(1.00	)		-				(1.00	)		33.80		37.48			56,058		.83			.83			2.80
Year ended 11/30/2008			48.56		1.27		(19.81	)		(18.54	)		(1.18	)		(3.34	)			(4.52	)		25.50		(41.75	)		46,011		.75			.71			3.28
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
Class B:
Year ended 11/30/2010			33.58		.60		(.03	)		.57			(.62	)		-				(.62	)		33.53		1.80			2,459		1.56			1.56			1.82
Year ended 11/30/2009			25.34		.57		8.46			9.03			(.79	)		-				(.79	)		33.58		36.43			2,999		1.61			1.61			2.04
Year ended 11/30/2008			48.27		.96		(19.69	)		(18.73	)		(.86	)		(3.34	)	��		(4.20	)		25.34		(42.21	)		2,598		1.52			1.48			2.51
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
Class C:
Year ended 11/30/2010			33.45		.59		(.02	)		.57			(.62	)		-				(.62	)		33.40		1.78			5,775		1.59			1.59			1.80
Year ended 11/30/2009			25.25		.56		8.43			8.99			(.79	)		-				(.79	)		33.45		36.42			6,428		1.61			1.61			2.01
Year ended 11/30/2008			48.11		.95		(19.63	)		(18.68	)		(.84	)		(3.34	)			(4.18	)		25.25		(42.23	)		5,405		1.56			1.52			2.47
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
Class F-1:
Year ended 11/30/2010			33.74		.86		(.03	)		.83			(.88	)		-				(.88	)		33.69		2.58			3,827		.80			.80			2.60
Year ended 11/30/2009			25.46		.79		8.50			9.29			(1.01	)		-				(1.01	)		33.74		37.49			4,152		.82			.81			2.83
Year ended 11/30/2008			48.48		1.27		(19.78	)		(18.51	)		(1.17	)		(3.34	)			(4.51	)		25.46		(41.76	)		3,677		.76			.72			3.30
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
Class F-2:
Year ended 11/30/2010			33.79		.94		(.02	)		.92			(.96	)		-				(.96	)		33.75		2.86			1,464		.54			.54			2.84
Year ended 11/30/2009			25.51		.72		8.64			9.36			(1.08	)		-				(1.08	)		33.79		37.80			1,165		.58			.58			2.42
Period from 8/1/2008 to 11/30/2008			38.34		.23		(12.79	)		(12.56	)		(.27	)		-				(.27	)		25.51		(32.95	)		127		.18			.17			.83
Class 529-A:
Year ended 11/30/2010			33.72		.84		(.02	)		.82			(.87	)		-				(.87	)		33.67		2.54			1,972		.84			.84			2.54
Year ended 11/30/2009			25.45		.77		8.49			9.26			(.99	)		-				(.99	)		33.72		37.41			1,796		.87			.86			2.75
Year ended 11/30/2008			48.46		1.24		(19.76	)		(18.52	)		(1.15	)		(3.34	)			(4.49	)		25.45		(41.77	)		1,235		.80			.77			3.23
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
Class 529-B:
Year ended 11/30/2010			33.58		.57		(.02	)		.55			(.60	)		-				(.60	)		33.53		1.72			167		1.65			1.65			1.74
Year ended 11/30/2009			25.35		.54		8.46			9.00			(.77	)		-				(.77	)		33.58		36.29			188		1.70			1.69			1.95
Year ended 11/30/2008			48.28		.92		(19.70	)		(18.78	)		(.81	)		(3.34	)			(4.15	)		25.35		(42.26	)		140		1.62			1.58			2.41
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
Class 529-C:
Year ended 11/30/2010			33.57		.58		(.03	)		.55			(.61	)		-				(.61	)		33.51		1.71			526		1.64			1.64			1.75
Year ended 11/30/2009			25.34		.54		8.47			9.01			(.78	)		-				(.78	)		33.57		36.32			491		1.69			1.68			1.93
Year ended 11/30/2008			48.27		.92		(19.69	)		(18.77	)		(.82	)		(3.34	)			(4.16	)		25.34		(42.27	)		342		1.61			1.58			2.42
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
Class 529-E:
Year ended 11/30/2010			33.67		.74		(.03	)		.71			(.77	)		-				(.77	)		33.61		2.21			87		1.13			1.13			2.25
Year ended 11/30/2009			25.41		.68		8.49			9.17			(.91	)		-				(.91	)		33.67		37.03			80		1.18			1.17			2.43
Year ended 11/30/2008			48.40		1.12		(19.74	)		(18.62	)		(1.03	)		(3.34	)			(4.37	)		25.41		(41.97	)		55		1.11			1.07			2.92
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
Class 529-F-1:
Year ended 11/30/2010		$	33.75	$	.91	$	(.02	)	$	.89		$	(.94	)	$	-			$	(.94	)	$	33.70		2.74	%	$	59		.63	%		.63	%		2.75	%
Year ended 11/30/2009			25.47		.82		8.50			9.32			(1.04	)		-				(1.04	)		33.75		37.68			49		.68			.67			2.93
Year ended 11/30/2008			48.50		1.31		(19.76	)		(18.45	)		(1.24	)		(3.34	)			(4.58	)		25.47		(41.66	)		31		.61			.57			3.44
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
Class R-1:
Year ended 11/30/2010			33.52		.60		(.02	)		.58			(.64	)		-				(.64	)		33.46		1.80			269		1.56			1.56			1.84
Year ended 11/30/2009			25.31		.57		8.45			9.02			(.81	)		-				(.81	)		33.52		36.45			217		1.58			1.58			2.02
Year ended 11/30/2008			48.22		.96		(19.67	)		(18.71	)		(.86	)		(3.34	)			(4.20	)		25.31		(42.21	)		124		1.52			1.48			2.54
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
Class R-2:
Year ended 11/30/2010			33.45		.59		(.03	)		.56			(.62	)		-				(.62	)		33.39		1.77			1,259		1.57			1.57			1.81
Year ended 11/30/2009			25.25		.55		8.43			8.98			(.78	)		-				(.78	)		33.45		36.34			1,270		1.66			1.66			1.95
Year ended 11/30/2008			48.11		.93		(19.62	)		(18.69	)		(.83	)		(3.34	)			(4.17	)		25.25		(42.24	)		836		1.59			1.55			2.45
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
Class R-3:
Year ended 11/30/2010			33.61		.75		(.02	)		.73			(.78	)		-				(.78	)		33.56		2.27			2,311		1.10			1.10			2.29
Year ended 11/30/2009			25.37		.69		8.48			9.17			(.93	)		-				(.93	)		33.61		37.07			2,208		1.13			1.13			2.47
Year ended 11/30/2008			48.32		1.12		(19.70	)		(18.58	)		(1.03	)		(3.34	)			(4.37	)		25.37		(41.95	)		1,397		1.09			1.05			2.95
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
Class R-4:
Year ended 11/30/2010			33.73		.85		(.02	)		.83			(.88	)		-				(.88	)		33.68		2.56			2,062		.81			.81			2.58
Year ended 11/30/2009			25.46		.78		8.50			9.28			(1.01	)		-				(1.01	)		33.73		37.46			1,840		.83			.83			2.76
Year ended 11/30/2008			48.48		1.23		(19.75	)		(18.52	)		(1.16	)		(3.34	)			(4.50	)		25.46		(41.77	)		1,159		.79			.76			3.25
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
Class R-5:
Year ended 11/30/2010			33.81		.95		(.02	)		.93			(.97	)		-				(.97	)		33.77		2.89			1,371		.50			.50			2.85
Year ended 11/30/2009			25.51		.88		8.51			9.39			(1.09	)		-				(1.09	)		33.81		37.89			1,598		.53			.53			3.18
Year ended 11/30/2008			48.58		1.35		(19.80	)		(18.45	)		(1.28	)		(3.34	)			(4.62	)		25.51		(41.61	)		1,399		.50			.46			3.54
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
Class R-6:
Year ended 11/30/2010			33.82		.98		(.04	)		.94			(.99	)		-				(.99	)		33.77		2.92			1,158		.46			.46			2.97
Period from 5/1/2009 to 11/30/2009			26.05		.51		7.85			8.36			(.59	)		-				(.59	)		33.82		32.50			517		.49	(6)		.49	(6)		2.84	(6)

	Year ended November 30
	2010			2009			2008			2007			2006
Portfolio turnover rate for all share classes		25	%		44	%		37	%		30	%		30	%

(1)Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.

(2)Based on average shares outstanding.

(3)For the year ended November 30, 2007, this column reflects the impact of corporate action events that resulted in a one-time increase to net investment income.  If the corporate action events 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 similar.

(4)Total returns exclude any applicable sales charges, including contingent deferred sales charges.

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

(6)Annualized.

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, 2010, 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 re sponsibility 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, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Los Angeles, California

January 7, 2011

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, 2010:

Foreign taxes	$0.09 per share
Foreign source income	$0.92 per share
Qualified dividend income			100	%
Corporate dividends received deduction		$	691,774,000
U.S. government income that may be exempt from state taxation		$	750,000

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2011, to determine the calendar year amounts to be included on their 2010 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, 2010, through November 30, 2010).

Actual expenses:

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

Hypothetical example for comparison purposes:

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

Notes:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In additi on, your ending account value would be lower by the amount of these fees.

Note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning account value 6/1/2010		Ending account value 11/30/2010		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,130.15	$	4.17		.78	%
Class A -- assumed 5% return		1,000.00		1,021.16		3.95		.78
Class B -- actual return		1,000.00		1,125.97		8.26		1.55
Class B -- assumed 5% return		1,000.00		1,017.30		7.84		1.55
Class C -- actual return		1,000.00		1,125.71		8.42		1.58
Class C -- assumed 5% return		1,000.00		1,017.15		7.99		1.58
Class F-1 -- actual return		1,000.00		1,130.03		4.27		.80
Class F-1 -- assumed 5% return		1,000.00		1,021.06		4.05		.80
Class F-2 -- actual return		1,000.00		1,131.57		2.89		.54
Class F-2 -- assumed 5% return		1,000.00		1,022.36		2.74		.54
Class 529-A -- actual return		1,000.00		1,129.93		4.43		.83
Class 529-A -- assumed 5% return		1,000.00		1,020.91		4.20		.83
Class 529-B -- actual return		1,000.00		1,125.54		8.74		1.64
Class 529-B -- assumed 5% return		1,000.00		1,016.85		8.29		1.64
Class 529-C -- actual return		1,000.00		1,125.40		8.74		1.64
Class 529-C -- assumed 5% return		1,000.00		1,016.85		8.29		1.64
Class 529-E -- actual return		1,000.00		1,128.19		6.03		1.13
Class 529-E -- assumed 5% return		1,000.00		1,019.40		5.72		1.13
Class 529-F-1 -- actual return		1,000.00		1,130.97		3.37		.63
Class 529-F-1 -- assumed 5% return		1,000.00		1,021.91		3.19		.63
Class R-1 -- actual return		1,000.00		1,125.69		8.31		1.56
Class R-1 -- assumed 5% return		1,000.00		1,017.25		7.89		1.56
Class R-2 -- actual return		1,000.00		1,125.84		8.31		1.56
Class R-2 -- assumed 5% return		1,000.00		1,017.25		7.89		1.56
Class R-3 -- actual return		1,000.00		1,128.56		5.82		1.09
Class R-3 -- assumed 5% return		1,000.00		1,019.60		5.52		1.09
Class R-4 -- actual return		1,000.00		1,130.07		4.27		.80
Class R-4 -- assumed 5% return		1,000.00		1,021.06		4.05		.80
Class R-5 -- actual return		1,000.00		1,131.70		2.67		.50
Class R-5 -- assumed 5% return		1,000.00		1,022.56		2.54		.50
Class R-6 -- actual return		1,000.00		1,132.00		2.41		.45
Class R-6 -- assumed 5% return		1,000.00		1,022.81		2.28		.45
*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365(to reflect the one-half year period).

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, 2011. 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 considered, among other things, the impact of current market conditions on the fund and CRMC. 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 be nefits 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, in each case as available at the time of the related board and committee meetings. 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 long-term results have been satisfactory and that CRMC’s record in managing the fund indicated that its conti nued 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. In addition, they reviewed information regarding the advisory fees paid by clients of an affiliate of CRMC. They noted that, to the extent there were differences among the advisory fees paid by those clients and the advisory fees paid by the fund, the differences appropriately reflected the investment, operational and regulatory differences between advising the fund and the other 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 retu rn 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 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 a nd 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 termination of CRMC’s 10% advisory fee waiver effective December 31, 2008. 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” directors1
	Year first
	elected a
	director of
Name and age	the fund2	Principal occupation(s) during past five years
Joseph C. Berenato, 64	2005	Chairman, Ducommun Incorporated (aerospace
		components manufacturer); former CEO, Ducommun
		Incorporated
Robert J. Denison, 69	2005	Chair, First Security Management (private investment)
Mary Anne Dolan, 63	2010	Founder and President, MAD Ink (communications
		company)
R. Clark Hooper, 64	2010	Private investor; former President, Dumbarton Group
		LLC (securities industry consulting)
Koichi Itoh, 70	2005	Chairman of the Board, Itoh Building Co., Ltd.
		(building management)
Merit E. Janow, 52	2001	Professor, Columbia University, School of
Chairman of the Board		International and Public Affairs; former Member,
(Independent and Non-Executive)		World Trade Organization Appellate Body
Leonade D. Jones, 63	2010	Retired, former Treasurer, The Washington Post
		Company
Gail L. Neale, 75	1993	President, The Lovejoy Consulting Group, Inc. (a pro
		bono consulting group advising nonprofit organizations)
Robert J. O’Neill, Ph.D., 74	1993	Member of the Board of Directors, The Lowy Institute
		for International Policy Studies, Sydney, Australia;
		Chariman, Academic Advisory Committee, United States
		Studies Centre, University of Sydney; Chairman of Directors, Forty Seven Friends Pty Ltd (a not-for-profit supporting a local art and craft center in Australia); former Planning Director and acting CEO, United States Studies Centre, University of Sydney; former Deputy Chairman of the Council and Chairman of the International Advisory Panel, Graduate School of Government, University of Sydney
Stefanie Powers, 68	1993–1996	Actor, producer, author, entrepreneur; Co-founder and
	1997	President of The William Holden Wildlife Foundation;
		conservation consultant to Land Rover and Jaguar
		North America; founder of The Jaguar Conservation
		Trust
Christopher E. Stone, 54	2009	Daniel and Florence Guggenheim Professor of the
		Practice of Criminal Justice, John F. Kennedy School
		of Government, Harvard University
Steadman Upham, Ph.D., 61	2001	President and Professor of Anthropology,
		The University of Tulsa
“Independent” directors1
	Number of
	portfolios
	in fund
	complex3
	overseen by
Name and age	director	Other directorships4 held by director
Joseph C. Berenato, 64	6	None
Robert J. Denison, 69	7	None
Mary Anne Dolan, 63	9	None
R. Clark Hooper, 64	46	JPMorgan Value Opportunities Fund, Inc.;
		The Swiss Helvetia Fund, Inc.
Koichi Itoh, 70	6	None
Merit E. Janow, 52	43	The NASDAQ Stock Market LLC;
Chairman of the Board		Trimble Navigation Limited
(Independent and Non-Executive)
Leonade D. Jones, 63	9	None
Gail L. Neale, 75	5	None
Robert J. O’Neill, Ph.D., 74	3	None
Stefanie Powers, 68	3	None
Christopher E. Stone, 54	6	None
Steadman Upham, Ph.D., 61	43	None

H. Frederick Christie, Donald E. Petersen and Charles Wolf, Jr., directors since 1993, each retired from the board in December 2010. The directors thank Messrs. Christie, Petersen and Wolf for their dedication and long service to the fund.

“Interested” directors5
	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
position with fund	the fund2	principal underwriter of the fund
Gina H. Despres, 69	1999	Senior Vice President, Capital Research and
Vice Chairman of the Board		Management Company; Senior Vice President,
		Capital Strategy Research, Inc.6
Mark E. Denning, 53	1993	Senior Vice President — Capital Research Global
President		Investors, Capital Research Company;6 Director,
		Capital Research and Management Company;
		Director, Capital International Limited6
“Interested” directors5
	Number of
	portfolios
	in fund
	complex3
Name, age and	overseen by
position with fund	director	Other directorships4 held by director
Gina H. Despres, 69	4	None
Vice Chairman of the Board
Mark E. Denning, 53	1	None
President

Other officers
	Year first
	elected	Principal occupation(s) during past five years
Name, age and	an officer	and positions held with affiliated entities
position with fund	of the fund1	or the principal underwriter of the fund
Stephen E. Bepler, 68	1993	Senior Vice President — Capital Research Global
Senior Vice President		Investors, Capital Research Company6
Michael J. Thawley, 60	2007	Senior Vice President, Capital Research and
Senior Vice President		Management Company; Senior Vice President,
		Capital Strategy Research, Inc.;6 former Australian
		Ambassador to the United States
L. Alfonso Barroso, 39	2010	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company6
Jeanne K. Carroll, 62	2001	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company6
Sung Lee, 44	2008	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company;6 Director,
		The Capital Group Companies, Inc.6
Jesper Lyckeus, 43	2008	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company6
David M. Riley, 43	2007	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research and Management
		Company
Donald H. Rolfe, 38	2008	Vice President and Associate Counsel — Fund
Vice President		Business Management Group, Capital Research and
		Management Company
Alexander G. Sheynkman, 47	2010	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company6
Christopher M. Thomsen, 40	2010	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company6
Vincent P. Corti, 54	1993	Vice President — Fund Business Management
Secretary		Group, Capital Research and Management Company
Neal F. Wellons, 39	2008	Vice President — Fund Business Management
Treasurer		Group, Capital Research and Management Company
Tanya Schneider, 38	2008	Assistant Vice President — Fund Business
Assistant Secretary		Management Group, Capital Research and
		Management Company
Dori Laskin, 59	2010	Vice President — Fund Business Management
Assistant Treasurer		Group, Capital Research and Management Company
Jeffrey P. Regal, 39	2003	Vice President — Fund Business Management
Assistant Treasurer		Group, Capital Research and Management Company

The fund’s statement of additional information includes further details about fund directors and is available without charge upon request by calling American Funds Service Company at 800/421-0180 or by visiting the American Funds website at americanfunds.com. The address for all directors and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

1The term “independent” director refers to a director who is not an “interested person” of the fund within the meaning of the Investment Company Act of 1940.

2Directors and officers of the fund serve until their resignation, removal or retirement.

3Capital Research and Management Company manages the American Funds, consisting of 32 funds. Capital Research and Management Company also manages American Funds Insurance Series,® which is composed of 16 funds and serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series,® Inc., which is composed of 10 funds and is available through tax-deferred retirement plans and IRAs; and Endowments,SM which is available to certain nonprofit organizations.

4This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company) that are held by each director as a director of a public company or a registered investment company.

5“Interested persons” within the meaning of the Investment Company Act of 1940, 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).

6Company 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

(Write to the address near you.)

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 summary prospectus and prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.

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

A complete November 30, 2010, 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. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of shareholders of Capital World Growth and Income Fund, but it also may be used as sales literature when preceded or accompanied by the current summary prospectus or prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after March 31, 2011, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

 

What makes American Funds different?

For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our 32 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•A long-term, value-oriented approach

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

•An extensive global research effort

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

•The multiple portfolio counselor system

Our unique approach to portfolio management, developed more than 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

•Experienced investment professionals

American Funds portfolio counselors have an average of 26 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.

•A commitment to low management fees

The American Funds provide exceptional value for shareholders, with management fees that are among the lowest in the mutual fund industry.

American Funds span a range of investment objectives

•Growth funds

Emphasis on long-term growth through stocks

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

SMALLCAP World Fund®

•Growth-and-income funds

Emphasis on long-term growth and dividends through stocks

American Mutual Fund®

>Capital World Growth and Income FundSM

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

•Equity-income funds

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

Capital Income Builder®

The Income Fund of America®

•Balanced 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 Funds Mortgage FundSM

American High-Income TrustSM

The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

•Tax-exempt bond funds

Emphasis on tax-exempt current income through municipal bonds

American Funds Short-Term Tax-Exempt Bond FundSM

American High-Income Municipal Bond Fund®

Limited Term Tax-Exempt Bond Fund of AmericaSM

The Tax-Exempt Bond Fund of America®

State-specific tax-exempt funds

American Funds Tax-Exempt Fund of New YorkSM

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•Money market fund

American Funds Money Market Fund®

•American Funds Target Date Retirement Series®

The Capital Group Companies

American FundsCapital Research and ManagementCapital InternationalCapital GuardianCapital Bank and Trust

Lit. No. MFGEAR-933-0111P

Litho in USA WG/Q/8072-S26177

Printed on paper containing 10% post-consumer waste

Printed with inks containing soy and/or vegetable oil

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 Joseph C. Berenato, 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:
		2009	$124,000
		2010	$87,000
	b)  Audit-Related Fees:
		2009	None
		2010	None
	c)  Tax Fees:
		2009	$8,000
		2010	$8,000
		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.
	d)  All Other Fees:
		2009	None
		2010	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)  Audit Fees:
		Not Applicable
	b)  Audit-Related Fees:
		2009	None
		2010	None
	c)  Tax Fees:
		2009	$9,000
		2010	$23,000
		The tax fees consist of consulting services relating to the Registrant’s investments.
	d)  All Other Fees:
		2009	$2,000
		2010	$1,000
		The other fees consist of subscription services related to an accounting research tool.

All audit and permissible non-audit services that the Registrant’s audit committee considers compatible with maintaining the independent registered public accounting firm’s independence are required to be pre-approved by the committee.  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-audi t 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, adviser and affiliates that provide ongoing services to the Registrant, were $19,000 for fiscal year 2009 and $32,000 for fiscal year 2010. 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

Capital World Growth and Income FundSM

Investment portfolio

November 30, 2010

Common stocks — 92.78%	Shares			Value (000)
FINANCIALS — 13.74%
Banco Santander, SA		117,391,276		$	1,112,372
Société Générale		15,500,748			718,412
Prudential PLC		80,563,580			711,776
Industrial and Commercial Bank of China Ltd., Class H		913,711,000			710,720
Credit Suisse Group AG		13,192,087			486,858
HSBC Holdings PLC (Hong Kong)		26,720,033			271,670
HSBC Holdings PLC (United Kingdom)		20,476,231			206,482
China Construction Bank Corp., Class H		470,890,000			425,099
Banco Bradesco SA, preferred nominative		20,693,435			405,155
Banco Santander (Brasil) SA, units (ADR)		12,694,425			165,662
Banco Santander (Brasil) SA, units		12,694,450			163,993
JPMorgan Chase & Co.		8,690,000			324,832
Bank of China Ltd., Class H		584,872,000			313,334
BNP Paribas SA		5,072,771			300,263
Wells Fargo & Co.		10,725,000			291,827
Deutsche Bank AG		5,998,618			284,947
UBS AG1		19,006,333			284,626
Bank of America Corp.		24,935,871			273,048
Itaú Unibanco Holding SA, preferred nominative (ADR)		8,888,045			207,358
Itaú Unibanco Holding SA, preferred nominative		1,771,000			40,541
CapitaMall Trust, units		144,633,700			201,557
Ping An Insurance (Group) Co. of China, Ltd., Class H		17,085,000			197,141
Canadian Imperial Bank of Commerce (CIBC)		2,500,000			192,514
Sun Hung Kai Properties Ltd.		11,313,000			187,066
Vienna Insurance Group		3,679,891			171,029
Lloyds Banking Group PLC1		180,591,537			169,692
China Life Insurance Co. Ltd., Class H		38,085,000			163,570
Link Real Estate Investment Trust		40,887,500			128,216
Sampo Oyj, Class A		5,041,151			123,152
Erste Bank der oesterreichischen Sparkassen AG		3,103,701			121,406
Hang Seng Bank Ltd.		7,000,000			115,118
DnB NOR ASA		9,068,033			110,936
Aviva PLC		19,952,000			110,048
Bank of New York Mellon Corp.		4,000,000			107,960
Barclays PLC		24,591,602			97,980
Deutsche Börse AG		1,580,000			95,552
UniCredit SpA		44,540,800			86,204
Kimco Realty Corp.		4,132,329			68,845
Weyerhaeuser Co.		3,359,686			56,073
Discover Financial Services		3,000,000			54,840
Zurich Financial Services AG		230,000			51,172
Admiral Group PLC		1,873,310			44,524
Chimera Investment Corp.		9,665,000			38,660
PT Bank Rakyat Indonesia (Persero) Tbk		32,390,000			37,646
CapitaMalls Asia Ltd.		19,710,000			29,408
Kerry Properties Ltd.		4,932,405			24,900
ICICI Bank Ltd.		934,200			23,253
ICICI Bank Ltd. (ADR)		4,000			200
AXA SA		1,095,082			15,721
Starwood Property Trust, Inc.		750,000			14,970
GAGFAH SA		1,919,471			14,825
First American Financial Corp.		672,255			9,526
Banco do Brasil SA, ordinary nominative		238,200			4,571
					10,567,250
INFORMATION TECHNOLOGY — 11.44%
Microsoft Corp.		67,005,000			1,689,196
MediaTek Inc.		49,577,999			635,125
Taiwan Semiconductor Manufacturing Co. Ltd.		199,564,051			415,070
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		20,226,531			217,435
Nintendo Co., Ltd.		1,717,800			466,550
Google Inc., Class A1		801,800			445,568
Acer Inc.2		147,294,687			434,890
Canon, Inc.		9,129,100			430,330
Oracle Corp.		14,867,000			402,004
Compal Electronics, Inc.2		287,352,418			357,276
Delta Electronics, Inc.		77,605,920			344,972
Redecard SA, ordinary nominative		25,757,700			335,754
Cielo SA, ordinary nominative		33,722,700			293,052
Telefonaktiebolaget LM Ericsson, Class B		27,901,615			287,830
QUALCOMM Inc.		5,630,000			263,146
Quanta Computer Inc.		115,473,850			226,913
HOYA CORP.		8,438,000			199,028
Automatic Data Processing, Inc.		4,040,000			180,063
Corning Inc.		9,130,000			161,236
Wistron Corp.		72,075,028			146,124
Siliconware Precision Industries Co., Ltd.		139,165,000			144,952
Accenture PLC, Class A		2,770,000			119,996
Maxim Integrated Products, Inc.		4,898,000			113,879
Intel Corp.		5,000,000			105,600
Nokia Corp.		5,971,000			55,146
Nokia Corp. (ADR)		4,169,800			38,487
Yahoo! Inc.1		5,400,000			85,158
Analog Devices, Inc.		1,563,700			55,605
International Business Machines Corp.		337,000			47,672
Microchip Technology Inc.		1,340,000			45,037
Murata Manufacturing Co., Ltd.		665,700			40,647
CoreLogic, Inc.		672,255			12,242
AOL Inc.1		57,273			1,385
					8,797,368
INDUSTRIALS — 10.79%
AB Volvo, Class B1		45,489,080			660,392
ASSA ABLOY AB, Class B		22,535,000			604,962
Siemens AG		5,205,000			569,493
Union Pacific Corp.		5,806,100			523,188
United Technologies Corp.		4,850,000			365,059
Schneider Electric SA		2,596,806			364,550
Jardine Matheson Holdings Ltd.		7,128,000			308,215
CSX Corp.		4,706,355			286,193
Lockheed Martin Corp.		4,185,000			284,747
Norfolk Southern Corp.		4,550,872			273,826
PACCAR Inc		5,000,000			269,300
BAE Systems PLC		51,437,000			264,265
Komatsu Ltd.		9,500,000			263,126
Qantas Airways Ltd.1		99,829,960			251,657
3M Co.		2,965,000			249,001
Air France1		11,725,816			204,947
Legrand SA		5,035,000			192,182
General Electric Co.		12,000,000			189,960
Singapore Technologies Engineering Ltd.		76,260,000			188,289
United Parcel Service, Inc., Class B		2,410,100			169,020
KONE Oyj, Class B		3,040,000			158,987
ComfortDelGro Corp. Ltd.2		135,100,000			155,528
Kühne + Nagel International AG		1,174,050			150,551
Ryanair Holdings PLC (ADR)		4,900,000			149,597
SGS SA		81,707			133,756
Southwest Airlines Co.		9,433,300			125,652
Eaton Corp.		1,200,000			115,680
Waste Management, Inc.		3,300,302			113,035
Geberit AG		500,000			100,981
FirstGroup PLC		16,327,000			91,882
Asahi Glass Co., Ltd.		8,105,000			90,357
Deutsche Post AG		5,565,000			89,176
MAp Group		28,909,681			84,238
General Dynamics Corp.		860,000			56,837
Alstom SA		1,255,000			51,698
Singapore Post Private Ltd.		43,500,000			38,217
Jiangsu Expressway Co. Ltd., Class H		34,260,000			37,282
Finmeccanica SpA		2,740,000			30,961
Ellaktor SA		4,795,000			19,482
Deutsche Lufthansa AG1		851,044			18,112
Contax Participações SA, ordinary nominative		152,400			2,889
					8,297,270
TELECOMMUNICATION SERVICES — 9.97%
AT&T Inc.		50,919,000			1,415,039
América Móvil, SAB de CV, Series L (ADR)		23,692,599			1,337,684
TeliaSonera AB		72,730,000			560,508
Singapore Telecommunications Ltd.		198,909,810			467,013
Turkcell Iletisim Hizmetleri AS		60,733,000			411,913
France Télécom SA		17,997,060			364,433
Qwest Communications International Inc.		43,960,000			307,720
CenturyLink, Inc.		6,629,126			284,986
Vodafone Group PLC		109,859,500			274,691
Telefónica, SA		12,346,007			262,662
BCE Inc.		7,540,000			254,945
Telekom Austria AG, non-registered shares		18,337,970			254,699
Belgacom SA		6,313,403			213,606
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, Class B		227,397,000			200,111
Philippine Long Distance Telephone Co. (ADR)		1,650,000			89,694
Philippine Long Distance Telephone Co.		1,515,475			82,712
OJSC Mobile TeleSystems (ADR)		8,014,842			168,071
Türk Telekomünikasyon AS, Class D		39,150,000			163,483
Millicom International Cellular SA		1,625,000			141,017
Koninklijke KPN NV		6,496,400			92,633
Telefónica 02 Czech Republic, AS		4,222,000			81,598
Advanced Info Service PCL		25,877,600			77,470
Magyar Telekom Telecommunications PLC		23,008,374			57,920
Telecom Italia SpA, nonvoting		35,000,000			36,618
Teléfonos de México, SAB de CV, Class L (ADR)		1,798,300			28,773
Bezeq — The Israel Telecommunication Corp. Ltd.		7,640,000			20,390
China Mobile Ltd.		1,608,000			16,038
Maxis Bhd.		3,228,000			5,391
					7,671,818
CONSUMER STAPLES — 9.71%
Philip Morris International Inc.		24,271,000			1,380,777
Wesfarmers Ltd.		27,072,090			816,343
Altria Group, Inc.		31,667,300			760,015
Kraft Foods Inc., Class A		21,541,339			651,625
Nestlé SA		11,073,330			601,853
Anheuser-Busch InBev NV		10,765,150			585,847
Anheuser-Busch InBev NV, VVPR STRIPS1		3,247,475			17
Danone SA		5,938,845			347,865
Diageo PLC		18,070,000			321,544
Tingyi (Cayman Islands) Holding Corp.		86,020,000			212,915
Pernod Ricard SA		2,304,997			187,868
Coca-Cola Co.		2,925,900			184,829
Procter & Gamble Co.		3,000,000			183,210
Wilmar International Ltd.		37,193,000			169,578
Lorillard, Inc.		2,109,000			167,834
Foster’s Group Ltd.		29,036,411			157,247
Kellogg Co.		2,468,400			121,519
PepsiCo, Inc.		1,850,500			119,598
SABMiller PLC		3,580,000			113,264
Avon Products, Inc.		3,855,000			110,099
Imperial Tobacco Group PLC		2,000,000			58,672
L’Oréal SA		508,100			54,036
Tesco PLC		7,435,000			47,913
Shoppers Drug Mart Corp.		1,185,000			43,669
Koninklijke Ahold NV		3,400,597			41,096
Molson Coors Brewing Co., Class B		681,000			32,450
					7,471,683
CONSUMER DISCRETIONARY — 8.79%
Honda Motor Co., Ltd.		15,022,700			540,307
DIRECTV, Class A1		12,917,000			536,443
Daimler AG1		8,238,158			533,287
Home Depot, Inc.		15,310,000			462,515
Cie. Générale des Établissements Michelin, Class B		5,738,000			388,201
Virgin Media Inc.1		13,558,000			345,458
British Sky Broadcasting Group PLC		24,542,000			275,043
Renault SA1		4,572,831			239,686
OPAP SA		14,822,910			238,587
Li & Fung Ltd.		37,014,000			230,709
General Motors Co.1		6,540,100			223,671
Bayerische Motoren Werke AG, nonvoting preferred		2,580,000			123,460
Bayerische Motoren Werke AG		1,329,800			99,996
McDonald’s Corp.		2,500,000			195,750
Toyota Motor Corp.		4,765,300			183,346
Johnson Controls, Inc.		4,690,000			170,904
Hyundai Motor Co.		1,101,000			163,811
Vivendi SA		6,293,400			153,539
H & M Hennes & Mauritz AB, Class B		4,508,000			152,171
Comcast Corp., Class A		7,540,000			150,800
Industria de Diseño Textil, SA		1,922,696			144,904
Target Corp.		2,427,500			138,222
Lowe’s Companies, Inc.		4,600,000			104,420
adidas AG, non-registered shares		1,475,000			92,591
Whitbread PLC		3,040,000			79,866
YUM! Brands, Inc.		1,590,000			79,627
Staples, Inc.		3,500,000			77,035
News Corp., Class A		5,590,458			76,254
Marks and Spencer Group PLC		12,818,187			74,289
Kesa Electricals PLC2		26,593,098			67,961
Kingfisher PLC		16,730,999			61,157
Swatch Group Ltd, non-registered shares		98,900			39,712
Swatch Group Ltd		282,155			20,438
Esprit Holdings Ltd.		12,283,418			59,399
Limited Brands, Inc.		1,500,000			50,505
Intercontinental Hotels Group PLC		2,760,000			48,941
Myer Holdings Ltd.		8,300,000			29,038
Carnival Corp., units		600,000			24,786
Aristocrat Leisure Ltd.		8,517,734			21,227
TUI Travel PLC		5,996,138			19,679
Dixons Retail PLC1		39,752,154			15,582
Stella International Holdings Ltd.		7,392,500			14,966
D.R. Horton, Inc.		1,200,000			12,048
Fairfax Media Ltd.		2,728,050			3,582
					6,763,913
HEALTH CARE — 8.06%
Bayer AG		26,028,000			1,890,307
Novartis AG		29,404,063			1,560,072
Merck & Co., Inc.		30,694,900			1,058,053
Roche Holding AG		4,591,100			630,353
Abbott Laboratories		5,195,000			241,619
Johnson & Johnson		3,177,000			195,544
Merck KGaA		2,218,920			173,219
Eli Lilly and Co.		4,000,000			134,640
UCB SA		3,510,000			113,494
Teva Pharmaceutical Industries Ltd. (ADR)		2,120,000			106,085
Lonza Group Ltd.		656,299			50,646
Orion Oyj, Class B		2,024,201			41,068
					6,195,100
ENERGY — 6.81%
BP PLC		191,366,121			1,267,884
Royal Dutch Shell PLC, Class B		17,777,849			527,611
Royal Dutch Shell PLC, Class A		7,850,000			236,350
Royal Dutch Shell PLC, Class A (ADR)		3,504,000			212,588
Royal Dutch Shell PLC, Class B (ADR)		689,599			41,590
ConocoPhillips		11,233,200			675,901
Eni SpA		29,153,000			586,552
Woodside Petroleum Ltd.		9,041,282			363,541
Sasol Ltd.		5,337,000			237,250
EOG Resources, Inc.		2,148,500			191,109
Canadian Oil Sands Trust		5,257,800			142,950
Canadian Oil Sands Trust3		1,100,000			29,907
China National Offshore Oil Corp.		51,839,900			112,424
Devon Energy Corp.		1,500,000			105,855
Chevron Corp.		1,035,000			83,804
OAO Gazprom (ADR)		3,732,000			83,000
Husky Energy Inc.		3,456,000			82,381
Canadian Natural Resources, Ltd.		2,080,000			80,015
TOTAL SA		1,199,000			58,076
Schlumberger Ltd.		700,000			54,138
OAO LUKOIL (ADR)		618,000			34,175
Banpu PCL		740,000			18,506
Petróleo Brasileiro SA — Petrobras, preferred nominative (ADR)		500,000			14,640
					5,240,247
UTILITIES — 4.98%
GDF SUEZ		38,941,860			1,291,514
Scottish and Southern Energy PLC		36,238,336			631,310
CEZ, a s		10,016,000			391,324
SUEZ Environnement Co.		18,353,183			326,856
Public Service Enterprise Group Inc.		6,795,000			209,490
Dominion Resources, Inc.		4,456,422			185,075
FirstEnergy Corp.		4,495,000			157,819
E.ON AG		4,200,000			120,512
NTPC Ltd.		29,619,270			118,774
Exelon Corp.		3,000,000			118,110
Hongkong Electric Holdings Ltd.		17,289,500			111,217
RWE AG		1,500,000			93,382
PPL Corp.		2,260,000			57,427
China Resources Power Holdings Co. Ltd.		8,800,000			15,435
					3,828,245
MATERIALS — 3.67%
ArcelorMittal		11,782,654			371,426
Syngenta AG		1,130,900			313,247
BASF SE		3,368,000			251,380
Dow Chemical Co.		8,059,400			251,292
Akzo Nobel NV		4,544,884			244,416
Linde AG		1,479,000			206,572
CRH PLC		9,380,729			163,167
Koninklijke DSM NV		3,157,500			154,209
Rautaruukki Oyj		6,689,570			121,394
POSCO		211,230			82,805
Holcim Ltd		1,240,908			79,933
Israel Chemicals Ltd.		5,090,000			73,317
Praxair, Inc.		763,120			70,245
Sherwin-Williams Co.		870,000			64,528
OneSteel Ltd.		23,851,217			57,154
voestalpine AG		1,397,000			56,695
Shin-Etsu Chemical Co., Ltd.		1,030,000			50,337
Usinas Siderúrgicas de Minas Gerais SA — USIMINAS, Class A, preferred nominative		4,125,500			44,994
Rio Tinto PLC		695,000			44,101
Air Products and Chemicals, Inc.		500,000			43,110
Givaudan SA		35,132			35,215
Makhteshim-Agan Industries Ltd.1		5,235,000			21,569
Impala Platinum Holdings Ltd.		417,500			11,915
Huabao International Holdings Ltd.		6,414,000			10,160
					2,823,181
MISCELLANEOUS — 4.82%
Other common stocks in initial period of acquisition					3,708,832
Total common stocks (cost: $63,646,208,000)					71,364,907
Preferred stocks — 0.30%
FINANCIALS — 0.29%
Mizuho Capital Investment (USD) 2 Ltd. 14.95%3,4		88,082,000			114,704
JPMorgan Chase & Co., Series I, 7.90%4		41,090,000			43,863
Wells Fargo & Co., Series K, 7.98%4		32,933,000			34,744
Lloyds Banking Group PLC 6.657% preference shares1,3,4		30,300,000			20,453
Barclays Bank PLC, Series RCI, 14.00%4		4,520,000			8,472
					222,236
MISCELLANEOUS — 0.01%
Other preferred stocks in initial period of acquisition					9,667
Total preferred stocks (cost: $181,645,000)					231,903
				Value
Rights — 0.05%					(000	)
MISCELLANEOUS — 0.05%
Other rights in initial period of acquisition				$	35,212
Total rights (cost: $0)					35,212
Convertible securities — 0.31%	Shares or principal amount
CONSUMER DISCRETIONARY — 0.15%
MGM Resorts International 4.25% convertible notes 20153	$	95,995,000			95,515
Johnson Controls, Inc. 11.50% convertible preferred 2012, units5		92,500			16,374
					111,889
INDUSTRIALS — 0.05%
JetBlue Airways Corp., Series A, 6.75% convertible notes 2039	$	3,995,000			6,497
JetBlue Airways Corp., Series B, 6.75% convertible notes 2039	$	3,925,000			6,717
JetBlue Airways Corp., Series A, convertible notes 5.50% 2038	$	3,250,000			5,379
JetBlue Airways Corp., Series B, convertible notes 5.50% 2038	$	3,240,000			5,625
Continental Airlines, Inc. 6.00% convertible preferred 2030		253,000			10,057
AMR Corp. 6.25% convertible notes 2014	$	5,985,000			7,122
					41,397
FINANCIALS — 0.02%
National Financial Partners Corp. 4.00% convertible notes 20173	$	7,000,000			8,068
Old Republic International Corp. 8.00% convertible notes 2012	$	5,000,000			6,081
					14,149
MISCELLANEOUS — 0.09%
Other convertible securities in initial period of acquisition					72,607
Total convertible securities (cost: $205,473,000)					240,042
	Principal amount
Bonds & notes — 1.25%		(000	)
FINANCIALS — 0.44%
ProLogis 7.625% 2014	$	10,830			12,496
ProLogis 6.25% 2017		10,000			10,596
ProLogis 6.625% 2018		24,507			26,515
ProLogis 7.375% 2019		20,568			23,154
ProLogis 6.875% 2020		30,225			33,121
Westfield Group 5.40% 20123		965			1,028
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 5.125% 20143		12,360			13,385
Westfield Group 5.70% 20163		690			764
Westfield Group 7.125% 20183		21,869			25,612
Regions Financial Corp. 6.375% 2012		30,584			29,676
Regions Financial Corp. 7.75% 2014		7,745			7,558
Regions Bank 7.50% 2018		3,300			3,185
HBOS PLC 6.75% 20183		36,490			35,005
Developers Diversified Realty Corp. 5.50% 2015		3,744			3,817
Developers Diversified Realty Corp. 9.625% 2016		3,650			4,394
Developers Diversified Realty Corp. 7.50% 2017		10,210			11,473
Developers Diversified Realty Corp. 7.875% 2020		8,075			9,270
Simon Property Group, LP 5.25% 2016		3,540			3,940
Simon Property Group, LP 6.10% 2016		860			990
Simon Property Group, LP 5.875% 2017		165			187
Simon Property Group, LP 6.125% 2018		890			1,028
Simon Property Group, LP 10.35% 2019		11,635			16,283
AXA SA 8.60% 2030		8,000			9,198
AXA SA 6.463% (undated)3,4		12,740			11,721
ERP Operating LP 6.625% 2012		500			534
ERP Operating LP 5.20% 2013		2,500			2,700
ERP Operating LP 5.25% 2014		9,508			10,505
ERP Operating LP 5.125% 2016		2,886			3,177
ERP Operating LP 5.375% 2016		1,020			1,135
ERP Operating LP 5.75% 2017		2,055			2,300
Standard Chartered Bank 6.40% 20173		8,451			9,363
Discover Financial Services 6.45% 2017		3,057			3,264
Discover Financial Services 10.25% 2019		4,334			5,450
Wachovia Capital Trust III 5.80% (undated)4		8,675			7,374
Capital One Capital III 7.686% 20364		165			166
					340,364
BONDS & NOTES OF GOVERNMENTS OUTSIDE THE U.S. — 0.21%
Brazil (Federal Republic of) 6.00% 20156	BRL83,883				48,694
Argentina (Republic of) 7.00% 2015	$	48,910			44,036
United Mexican States Government, Series M30, 10.00% 2036	MXN324,200				32,564
South Korean Government 5.50% 2017	KRW29,568,800				27,660
Uruguay (Republic of) 3.70% 20376,7	UYU98,117				5,399
					158,353
ENERGY — 0.20%
Gazprom OJSC 5.092% 20153	$	8,500			8,585
Gazprom OJSC, Series 13, 6.605% 2018	€	6,133			8,429
Gazprom OJSC 8.146% 2018	$	6,335			7,214
Gazprom OJSC, Series 9, 6.51% 2022		31,023			31,411
Gazprom OJSC, Series 2, 8.625% 2034		1,272			1,501
Gazprom OJSC 7.288% 2037		33,210			34,455
Gazprom OJSC 7.288% 20373		365			379
BP Capital Markets PLC 3.125% 2012		48,310			49,424
BP Capital Markets PLC 5.25% 2013		3,335			3,628
BP Capital Markets PLC 3.875% 2015		7,320			7,628
Petroplus Finance Ltd. 6.75% 20143		375			341
					152,995
CONSUMER DISCRETIONARY — 0.15%
DaimlerChrysler North America Holding Corp., Series E, 5.75% 2011		53,904			55,927
DaimlerChrysler North America Holding Corp. 6.50% 2013		23,675			27,068
Virgin Media Finance PLC, Series 1, 9.50% 2016		15,725			17,651
Marks and Spencer Group PLC 6.25% 20173		100			108
Marks and Spencer Group PLC 7.125% 20373		15,550			15,729
					116,483
TELECOMMUNICATION SERVICES — 0.15%
MTS International Funding Ltd. 8.625% 20203		54,120			60,479
MTS International Funding Ltd. 8.625% 2020		2,810			3,140
Nextel Communications, Inc., Series F, 5.95% 2014		31,525			30,579
América Móvil, SAB de CV 8.46% 2036	MXN286,400				21,485
					115,683
MATERIALS — 0.08%
CRH America Inc. 6.95% 2012	$	13,200			13,963
CRH America, Inc. 6.00% 2016		1,260			1,390
CRH America, Inc. 8.125% 2018		15,540			18,516
International Paper Co. 9.375% 2019		14,675			19,191
ArcelorMittal 9.85% 2019		8,000			10,143
					63,203
CONSUMER STAPLES — 0.02%
British American Tobacco International Finance PLC 8.125% 20133		9,000			10,649
CVS Caremark Corp. 6.943% 20307		1,001			1,123
					11,772
Total bonds & notes (cost: $830,138,000)					958,853
	Principal amount			Value
Short-term securities — 4.92%		(000	)		(000	)
Freddie Mac 0.17%–0.40% due 12/6/2010–6/21/2011	$	1,060,400		$	1,059,821
Fannie Mae 0.185%–0.49% due 12/1/2010–5/16/2011		504,500			504,292
U.S. Treasury Bills 0.135%–0.156% due 12/9/2010–4/14/2011		350,700			350,619
Commonwealth Bank of Australia 0.25%–0.26% due 12/29/2010–2/14/20113		255,500			255,404
Deutsche Bank Financial LLC 0.23%–0.26% due 1/3–2/10/2011		230,900			230,810
National Australia Funding (Delaware) Inc. 0.25%–0.265% due 1/5–4/1/20113		228,200			228,120
Bank of America Corp. 0.28% due 1/11–1/19/2011		199,800			199,736
International Bank for Reconstruction and Development 0.19% due 2/23–3/1/2011		173,300			173,219
ANZ National (International) Ltd. 0.265%–0.27% due 1/20–2/28/20113		167,800			167,707
Straight-A Funding LLC 0.25% due 1/6–2/15/20113		114,291			114,240
Westpac Banking Corp. 0.25% due 2/1/20113		97,700			97,635
Bank of Nova Scotia 0.245% due 12/7/2010		93,200			93,196
Credit Suisse New York Branch 0.26% due 2/18/2011		75,000			74,947
Nordea North America, Inc. 0.24%–0.26% due 2/15–3/9/2011		64,800			64,758
Hewlett-Packard Co. 0.21% due 12/2/20103		50,000			49,999
NetJets Inc. 0.20% due 12/16/20103		45,100			45,096
Jupiter Securitization Co., LLC 0.24% due 12/16/20103		33,400			33,396
John Deere Credit Ltd. 0.22% due 12/2/20103		29,800			29,800
Federal Home Loan Bank 0.26% due 12/15/2010		15,300			15,299
Total short-term securities (cost: $3,787,912,000)					3,788,094
Total investment securities (cost: $68,651,376,000)					76,619,011
Other assets less liabilities					303,184
Net assets				$	76,922,195

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

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

2Represents an affiliated company as defined under the Investment Company Act of 1940.

3Acquired in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,483,192,000, which represented 1.93% of the net assets of the fund.

4Coupon rate may change periodically.

5Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities, including those in “Miscellaneous,” was $29,877,000, which represented .04% of the net assets of the fund.

6Index-linked bond whose principal amount moves with a government retail price index.

7Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

Key to abbreviations and symbol

ADR = American Depositary Receipts

BRL = Brazilian reais

€ = Euros

KRW = South Korean won

MXN = Mexican pesos

UYU = Uruguayan pesos

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

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

MFGEFP-933-0111O-S25561

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. (the "Fund") as of November 30, 2010, and for the year then ended and have issued our unqualified report thereon dated January 7, 2011 (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, 2010 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 7, 2011

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

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

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

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

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

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

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

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

ITEM 11 – Controls and Procedures

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

ITEM 12 – Exhibits

(a)(1)	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 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: January 31, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By /s/ Gina H. Despres

Gina H. Despres, Vice Chairman and

Principal Executive Officer

Date: January 31, 2011

By /s/ Neal F. Wellons

Neal F. Wellons, Treasurer and

Principal Financial Officer

Date: January 31, 2011