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: May 31, 2012
Vincent P. Corti
Capital World Growth and Income Fund, Inc.
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 Fund®
[photo from above of a boat in open water]
Semi-annual report for the six months ended May 31, 2012
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 more than 40 offered by American Funds, which is one of the nation’s largest mutual fund families. For more than 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.
Fund results shown in this report, unless otherwise indicated, are for Class A shares at net asset value. If a sales charge (maximum 5.75%) had been deducted, the results would have been lower. Results are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. Investing for short periods makes losses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value. For 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 June 30, 2012 (the most recent calendar quarter-end): | ||||||||||||
Class A shares | 1 year | 5 years | 10 years | |||||||||
Reflecting 5.75% maximum sales charge | –11.34 | % | –2.88 | % | 7.70 | % |
The total annual fund operating expense ratio was 0.79% for Class A shares as of the prospectus dated February 1, 2012.
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.
The fund’s 30-day yield for Class A shares as of June 30, 2012, reflecting the 5.75% maximum sales charge and calculated in accordance with the U.S. Securities and Exchange Commission formula, was 2.49%.
Results for other share classes can be found on page 36.
Investing outside the United States may be subject to risks, such as currency fluctuations, periods of illiquidity and price volatility. These risks may be heightened in connection with investments in developing countries. Refer to the fund prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.
Fellow investors:
[photo from above of a boat in open water]
The first half of the fiscal year was characterized by ongoing market volatility, pronounced swings in investor sentiment and uneven economic reports from countries in both the developed and developing worlds.
For the six months ended May 31, 2012, Capital World Growth and Income Fund managed a gain of 1.13%. This includes an income return of 1.23% based on reinvested dividends totaling 40 cents a share. Investors who took dividends in cash recorded a similar income return.
The fund’s total return slightly exceeded the 0.80% gain of the unmanaged MSCI ACWI (All Country World Index), which measures a broad range of developed- and developing-country stock markets. This index became the fund’s primary benchmark in the fiscal year ended November 30, 2011, replacing the unmanaged MSCI World Index, which focuses on developed markets. The fund’s return during the first half was in line with the 1.07% return of the MSCI World Index. The Lipper Global Funds Index, a peer group measure, declined 0.88%.
[Begin Sidebar]
Results at a glance | ||||||||||||||||
For periods ended May 31, 2012, with all distributions reinvested | ||||||||||||||||
Total returns | Average annual total returns | |||||||||||||||
Lifetime | ||||||||||||||||
1 year | 5 years | 10 years | (since 3/26/93) | |||||||||||||
Capital World Growth and | ||||||||||||||||
Income Fund (Class A shares) | –12.55 | % | –2.64 | % | 7.04 | % | 10.20 | % | ||||||||
MSCI ACWI (All Country World Index)* | –11.81 | –3.17 | 5.09 | 6.55 | ||||||||||||
MSCI World Index* | –10.50 | –3.51 | 4.55 | 6.52 | ||||||||||||
Lipper Global Funds Index | –14.96 | –3.89 | 4.10 | 6.29 | ||||||||||||
*Because Capital World Growth and Income Fund invests in companies in both the developed and developing markets, its most appropriate benchmark is the MSCI ACWI (All Country World Index), which is designed to measure more than 40 developed- and emerging-market country indexes. The MSCI World Index measures more than 20 developed-market country indexes. The indexes are weighted by market capitalization. Both are unmanaged and, therefore, have no expenses. |
[End Sidebar]
As you can see on page 1, Capital World Growth and Income Fund continues to compare favorably to its peers and benchmarks over longer time frames.
The global investing environment
For the third consecutive year, investor attention focused largely on Europe’s government debt crisis. Equity markets rose during the early months of the period as investors welcomed a series of steps taken by European leaders to address the crisis. These included a new fiscal treaty among European Union nations, the provision of additional bailout funds for Greece and other seriously indebted nations, and measures taken by the European Central Bank to support European banks.
However, most European stock markets turned negative in April and May as several developments triggered a reversal in investor sentiment. First-quarter data showed that the U.K. and Spanish economies had both contracted, and they joined seven other European nations in recession. What’s more, the Spanish and Italian governments struggled to meet their financing needs. In Greece, inconclusive election results impeded the country’s ability to form a coalition government and enact fiscal austerity measures. This further raised investor anxiety over whether European leaders could reach a long-term solution to the crisis.
Europe’s difficulties were also reflected in the weakening euro, which fell significantly against the U.S. dollar. On a dollar-adjusted basis, struggling nations Greece (–29.0%)*, Spain (–30.8%), Portugal (–23.4%) and Italy (–19.9%) sustained some of the steepest losses for the six-month period. Europe’s two largest markets, Germany (–4.8%) and France (–8.7%), also lost ground in U.S. dollar terms.
In the developing markets, a slowdown in China’s economy was more pronounced than many investors expected. Leaders in Beijing said in May that they would shift their focus from containing the country’s overheating property market toward promoting overall growth. The economies of India and Brazil also showed signs of slowing.
In the United States, after starting the period with three consecutive months of stronger-than-expected job market growth, the economy also began to show signs of slowing down. Nevertheless, corporate balance sheets remained strong and company earnings reports were generally positive during the period. For the reporting period, U.S. stocks rose 6.3%.
Inside the portfolio
Changing circumstances in Europe and shifts in investor sentiment were reflected in the mixed results produced by the fund’s investments. Holdings in companies based in the U.S. strongly supported the fund’s overall positive result. For example, Home Depot (+25.8%), biotechnology company Amgen (+20.1%), AT&T (+17.9%), Microsoft (+14.1%) and tobacco makers Altria (+12.2%) and Philip Morris International (+10.9%) — which were among the fund’s 10 largest holdings — all made positive contributions.
*Country returns are based on MSCI indexes, expressed in U.S. dollars (except where noted), and assume the reinvestment of dividends. |
[Begin Sidebar]
Where the fund’s assets were invested | ||||||||
Percent of net assets by country as of May 31, 2012 | ||||||||
Capital World Growth and Income Fund | MSCI ACWI (All Country World Index)* | |||||||
Europe | 37.5 | % | 23.4 | % | ||||
Euro zone† | 14.5 | 9.3 | ||||||
United Kingdom | 10.9 | 8.1 | ||||||
Switzerland | 5.9 | 3.0 | ||||||
Sweden | 3.9 | 1.1 | ||||||
Russia | .9 | .7 | ||||||
Turkey | .7 | .2 | ||||||
Other Europe | .7 | 1.0 | ||||||
The Americas | 37.4 | 55.1 | ||||||
United States | 34.7 | 47.9 | ||||||
Mexico | 1.0 | .6 | ||||||
Brazil | .9 | 1.7 | ||||||
Canada | .8 | 4.4 | ||||||
Other Americas | — | .5 | ||||||
Asia/Pacific | 16.8 | 20.2 | ||||||
China | 2.7 | 2.3 | ||||||
Hong Kong | 2.6 | 1.0 | ||||||
Taiwan | 2.5 | 1.4 | ||||||
Australia | 2.2 | 3.1 | ||||||
South Korea | 1.9 | 1.9 | ||||||
Japan | 1.6 | 7.8 | ||||||
Singapore | 1.5 | .7 | ||||||
Other Asia/Pacific | 1.8 | 2.0 | ||||||
Other | .5 | 1.3 | ||||||
Bonds & notes, short-term securities | ||||||||
& other assets less liabilities | 7.8 | — | ||||||
Total | 100.0 | % | 100.0 | % | ||||
*The MSCI ACWI (All Country World Index) is weighted by market capitalization. | ||||||||
†Countries using the euro as a common currency: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. |
[End Sidebar]
It is important to remember, however, that in building the portfolio we focus chiefly on individual companies rather than geographies or economic sectors. As you can see in the table on page 3, our efforts have resulted in a broadly diversified portfolio that includes companies domiciled in markets all around the world. We believe our research-based approach leads us to companies that can fare well over the long run regardless of their domicile or current economic conditions. For example, despite the slowdown in China, Bank of China (+17.7%) and Chinese Internet company NetEase (+38.3%) made strong contributions. Similarly, British hospitality company InterContinental Hotels (+35.5%), Belgian-based beverage maker Anheuser-Busch InBev (+13.2%) and Swedish building products manufacturer ASSA ABLOY (+5.1%) helped the fund’s overall result despite Europe’s woes.
However, the mixed results of the period were reflected in the fund’s top holdings. Oil companies BP (–16.3%) and Royal Dutch Shell (–11.1%) — the fund’s third- and seventh-largest positions, respectively — finished in negative territory, reflecting a slide in energy prices during the six months. Likewise, European pharmaceutical companies Bayer (–3.8%) and Novartis (–3.8%) — the fund’s largest holding — also lost ground.
A look ahead
The near-term outlook remains cloudy, as the global economy and world markets continue to face a number of serious challenges. With growth slowing in China, Europe grappling with its structural problems, and the United States facing fiscal issues of its own at the end of 2012, we expect continued volatility ahead.
Europe’s sovereign debt crisis and economic slowdown have begun to impact other parts of the world economy, including many developing markets. Nevertheless, there are reasons for optimism. While Europe’s troubles will not be resolved quickly, we are encouraged that European governments appear to be grappling seriously with these issues. A Greek election after the close of the period led to the formation of a government that supported the country’s bailout agreement with the European Union, although Greek leaders are seeking some amendments. We continue to follow developments in Europe closely.
[Begin Sidebar]
Largest equity holdings | |||||||||
(as of May 31, 2012) | |||||||||
Percent of | 6-month | ||||||||
Company | Country | net assets | return | ||||||
Novartis | Switzerland | 2.71 | % | –3.75 | % | ||||
Philip Morris International | United States | 2.52 | 10.85 | ||||||
BP | United Kingdom | 1.85 | –16.30 | ||||||
Altria | United States | 1.82 | 12.20 | ||||||
Bayer | Germany | 1.63 | –3.75 | ||||||
Home Depot | United States | 1.57 | 25.80 | ||||||
Royal Dutch Shell | United Kingdom | 1.55 | –11.08 | ||||||
AT&T | United States | 1.49 | 17.91 | ||||||
Microsoft | United States | 1.48 | 14.11 | ||||||
Amgen | United States | 1.22 | 20.05 |
[End Sidebar]
Growth has clearly slowed in China. Even so, it has proceeded at a robust pace relative to many of the world’s developed economies. There persists an enormous desire for continued development and change among the expanding middle classes in China and elsewhere in Asia, and we remain confident about prospects for those regions over the longer term.
We continue to focus on companies that we believe are well-positioned to benefit from long-term growth trends — whether they are domiciled in Europe, China or anywhere else in the world — and that often reward investors with regular dividend payments. (For an in-depth look at how we are finding potential long-term opportunity in Europe — particularly among companies with global operations — see our annual report for the year ended November 30, 2011.)
As always, we thank you for the confidence you have placed in us and your commitment to long-term investing.
Cordially,
/s/ Michael Thawley
Michael Thawley
Vice Chairman of the Board
/s/ Mark E. Denning
Mark E. Denning
President
July 11, 2012
For current information about the fund, visit americanfunds.com.
Summary investment portfolio May 31, 2012
unaudited
[begin pie chart]
Industry sector diversification | Percent of net ssets | |||
Consumer discretionary | 13.01 | |||
Industrials | 12.49 | |||
Consumer staples | 11.81 | |||
Financials | 10.57 | |||
Health care | 9.10 | |||
Other industries | 34.91 | |||
Bonds & notes | 2.05 | |||
Convertible securities & preferred stocks | 0.32 | |||
Short-term securities & other assets less liabilities | 5.74 |
[end pie chart]
Country diversification | Percent of net assets | |||
United States | 34.7 | |||
Euro zone* | 14.5 | |||
United Kingdom | 10.9 | |||
Switzerland | 5.9 | |||
Sweden | 3.9 | |||
China | 2.7 | |||
Hong Kong | 2.6 | |||
Taiwan | 2.5 | |||
Australia | 2.2 | |||
South Korea | 1.9 | |||
Other countries | 10.4 | |||
Bonds & notes, short-term securities & other assets less liabilities | 7.8 | |||
*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 - 91.89% | Shares | (000 | ) | assets | ||||||||
Consumer discretionary - 13.01% | ||||||||||||
Home Depot, Inc. | 20,605,800 | $ | 1,016,690 | 1.57 | ||||||||
DIRECTV, Class A (1) | 13,893,000 | 617,544 | .95 | |||||||||
Comcast Corp., Class A | 16,952,600 | 490,100 | .75 | |||||||||
General Motors Co. (1) | 18,646,450 | 413,951 | .64 | |||||||||
Virgin Media Inc. (2) | 15,757,000 | 347,127 | .53 | |||||||||
British Sky Broadcasting Group PLC | 30,336,000 | 321,666 | .50 | |||||||||
Other securities | 5,240,991 | 8.07 | ||||||||||
8,448,069 | 13.01 | |||||||||||
Industrials - 12.49% | ||||||||||||
ASSA ABLOY AB, Class B | 22,535,000 | 583,500 | .90 | |||||||||
AB Volvo, Class B | 41,589,080 | 466,872 | .72 | |||||||||
United Parcel Service, Inc., Class B | 5,635,000 | 422,287 | .65 | |||||||||
Union Pacific Corp. | 3,770,700 | 420,056 | .65 | |||||||||
Schneider Electric SA | 7,425,754 | 395,466 | .61 | |||||||||
Jardine Matheson Holdings Ltd. | 7,978,000 | 386,135 | .59 | |||||||||
KONE Oyj, Class B | 6,020,000 | 335,936 | .52 | |||||||||
Other securities | 5,101,359 | 7.85 | ||||||||||
8,111,611 | 12.49 | |||||||||||
Consumer staples - 11.81% | ||||||||||||
Philip Morris International Inc. | 19,361,300 | 1,636,223 | 2.52 | |||||||||
Altria Group, Inc. | 36,697,300 | 1,181,286 | 1.82 | |||||||||
Kraft Foods Inc., Class A | 18,615,500 | 712,415 | 1.10 | |||||||||
Anheuser-Busch InBev NV | 8,158,534 | 552,319 | .85 | |||||||||
Wesfarmers Ltd. | 17,071,520 | 485,578 | .75 | |||||||||
Nestlé SA | 8,092,030 | 458,605 | .71 | |||||||||
Lorillard, Inc. | 2,846,000 | 351,766 | .54 | |||||||||
Other securities | 2,289,875 | 3.52 | ||||||||||
7,668,067 | 11.81 | |||||||||||
Financials - 10.57% | ||||||||||||
Industrial and Commercial Bank of China Ltd., Class H | 676,073,470 | 411,138 | .63 | |||||||||
HSBC Holdings PLC (Hong Kong) | 26,720,033 | 210,860 | ||||||||||
HSBC Holdings PLC (United Kingdom) | 20,476,231 | 160,788 | .57 | |||||||||
Wells Fargo & Co. | 10,000,000 | 320,500 | .50 | |||||||||
Other securities | 5,755,788 | 8.87 | ||||||||||
6,859,074 | 10.57 | |||||||||||
Health care - 9.10% | ||||||||||||
Novartis AG | 33,907,063 | 1,761,066 | 2.71 | |||||||||
Bayer AG | 16,752,000 | 1,059,306 | 1.63 | |||||||||
Amgen Inc. | 11,415,000 | 793,571 | 1.22 | |||||||||
Abbott Laboratories | 9,875,000 | 610,176 | .94 | |||||||||
Merck & Co., Inc. | 9,000,000 | 338,220 | .52 | |||||||||
Roche Holding AG | 2,133,033 | 332,906 | .51 | |||||||||
Other securities | 1,014,432 | 1.57 | ||||||||||
5,909,677 | 9.10 | |||||||||||
Telecommunication services - 8.86% | ||||||||||||
AT&T Inc. | 28,380,000 | 969,745 | 1.49 | |||||||||
América Móvil, SAB de CV, Series L (ADR) | 28,772,798 | 677,887 | 1.04 | |||||||||
Verizon Communications Inc. | 13,059,500 | 543,798 | .84 | |||||||||
TeliaSonera AB | 72,730,000 | 443,318 | .68 | |||||||||
Vodafone Group PLC | 160,657,500 | 428,357 | .66 | |||||||||
Koninklijke KPN NV | 43,194,798 | 408,322 | .63 | |||||||||
OJSC Mobile TeleSystems (ADR) | 20,592,280 | 342,655 | .53 | |||||||||
Other securities | 1,940,136 | 2.99 | ||||||||||
5,754,218 | 8.86 | |||||||||||
Information technology - 8.22% | ||||||||||||
Microsoft Corp. | 32,804,019 | 957,549 | 1.48 | |||||||||
Samsung Electronics Co. Ltd. | 596,600 | 612,144 | .94 | |||||||||
HTC Corp. | 30,988,050 | 446,424 | .69 | |||||||||
Oracle Corp. | 13,337,000 | 353,030 | .54 | |||||||||
Other securities | 2,964,143 | 4.57 | ||||||||||
5,333,290 | 8.22 | |||||||||||
Energy - 5.92% | ||||||||||||
BP PLC | 197,684,626 | 1,203,148 | 1.85 | |||||||||
Royal Dutch Shell PLC, Class B | 19,090,746 | 611,550 | ||||||||||
Royal Dutch Shell PLC, Class A | 6,815,000 | 210,922 | ||||||||||
Royal Dutch Shell PLC, Class A (ADR) | 2,570,000 | 159,803 | ||||||||||
Royal Dutch Shell PLC, Class B (ADR) | 344,800 | 22,188 | 1.55 | |||||||||
Other securities | 1,632,936 | 2.52 | ||||||||||
3,840,547 | 5.92 | |||||||||||
Utilities - 5.04% | ||||||||||||
National Grid PLC | 60,699,199 | 608,072 | .94 | |||||||||
SSE PLC | 21,180,336 | 431,869 | .67 | |||||||||
GDF SUEZ | 21,585,815 | 426,386 | .66 | |||||||||
Other securities | 1,803,510 | 2.77 | ||||||||||
3,269,837 | 5.04 | |||||||||||
Materials - 4.80% | ||||||||||||
Dow Chemical Co. | 14,407,000 | 447,481 | .69 | |||||||||
Other securities | 2,665,750 | 4.11 | ||||||||||
3,113,231 | 4.80 | |||||||||||
Miscellaneous - 2.07% | ||||||||||||
Other common stocks in initial period of acquisition | 1,345,273 | 2.07 | ||||||||||
Total common stocks (cost: $55,428,422,000) | 59,652,894 | 91.89 | ||||||||||
Percent | ||||||||||||
�� | Value | of net | ||||||||||
Preferred stocks - 0.01% | (000 | ) | assets | |||||||||
Financials - 0.01% | ||||||||||||
Other securities | 9,729 | .01 | ||||||||||
Total preferred stocks (cost: $9,150,000) | 9,729 | .01 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Rights - 0.00% | (000 | ) | assets | |||||||||
Miscellaneous - 0.00% | ||||||||||||
Other rights in initial period of acquisition | 823 | .00 | ||||||||||
Total rights (cost: $1,025,000) | 823 | .00 | ||||||||||
Percent | ||||||||||||
Value | of net | |||||||||||
Convertible securities - 0.31% | (000 | ) | assets | |||||||||
Other - 0.27% | ||||||||||||
Other securities | 172,692 | .27 | ||||||||||
Miscellaneous - 0.04% | ||||||||||||
Other convertible securities in initial period of acquisition | 26,002 | .04 | ||||||||||
Total convertible securities (cost: $225,303,000) | 198,694 | .31 | ||||||||||
Principal | Percent | |||||||||||
amount | Value | of net | ||||||||||
Bonds & notes - 2.05% | (000 | ) | (000 | ) | assets | |||||||
Bonds & notes of U.S. government - 0.54% | ||||||||||||
U.S. Treasury 1.875%-4.75% 2014-2041 | $ | 330,415 | 350,678 | .54 | ||||||||
Telecommunication services - 0.39% | ||||||||||||
América Móvil, SAB de CV 8.46% 2036 | MXN 286,400 | 19,474 | .03 | |||||||||
Other securities | 231,026 | .36 | ||||||||||
250,500 | .39 | |||||||||||
Energy - 0.14% | ||||||||||||
BP Capital Markets PLC 3.875%-5.25% 2013-2015 | $ | 10,655 | 11,367 | .02 | ||||||||
Other securities | 82,876 | .12 | ||||||||||
94,243 | .14 | |||||||||||
Other - 0.98% | ||||||||||||
Other securities | 633,694 | .98 | ||||||||||
Total bonds & notes (cost: $1,213,268,000) | 1,329,115 | 2.05 | ||||||||||
Principal | Percent | |||||||||||
amount | Value | of net | ||||||||||
Short-term securities - 5.38% | (000 | ) | (000 | ) | assets | |||||||
Freddie Mac 0.07%-0.19% due 6/4/2012-4/26/2013 | 1,111,125 | 1,110,624 | 1.71 | |||||||||
Fannie Mae 0.065%-0.21% due 6/1/2012-1/7/2013 | 591,295 | 591,087 | .91 | |||||||||
Federal Home Loan Bank 0.07%-0.25% due 6/19/2012-4/8/2013 | 513,150 | 512,967 | .79 | |||||||||
U.S. Treasury Bills 0.10%-0.185% due 6/28/2012-4/4/2013 | 415,800 | 415,598 | .64 | |||||||||
Other securities | 862,203 | 1.33 | ||||||||||
Total short-term securities (cost: $3,492,405,000) | 3,492,479 | 5.38 | ||||||||||
Total investment securities (cost: $60,369,573,000) | 64,683,734 | 99.64 | ||||||||||
Other assets less liabilities | 234,650 | .36 | ||||||||||
Net assets | $ | 64,918,384 | 100.00 | % |
As permitted by U.S. Securities and Exchange Commission ("SEC") regulations, "Miscellaneous" securities include holdings in their first year of acquisition that have not previously been publicly disclosed. | |||
"Other securities" include all issues that are not disclosed separately in the summary investment portfolio, including securities which were valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities was $57,122,000, which represented .09% of the net assets of the fund. Some of "Other securities" (with an aggregate value of $1,116,046,000, which represented 1.72% of the net assets of the fund) were acquired in transactions exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933 and may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. |
Investments in affiliates | ||||||
A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund's affiliated-company holdings is either shown in the summary investment portfolio or included in the value of "Other securities" under the respective industry sectors. Further details on such holdings and related transactions during the six months ended May 31, 2012, appear below. |
Beginning shares or principal amount | Additions | Reductions | Ending shares or principal amount | Dividend or interest income (000) | Value of affiliates at 5/31/2012 (000) | |||||||||||||||||||
Virgin Media Inc. | 15,757,000 | - | - | 15,757,000 | $ | 1,260 | $ | 347,127 | ||||||||||||||||
Virgin Media Inc. 6.50% convertible notes 2016 | $ | 7,100,000 | - | - | $ | 7,100,000 | 231 | 9,913 | ||||||||||||||||
Qantas Airways Ltd. (1) | 125,158,600 | - | - | 125,158,600 | - | 181,656 | ||||||||||||||||||
ComfortDelGro Corp. Ltd. | 135,100,000 | - | - | 135,100,000 | 3,607 | 154,118 | ||||||||||||||||||
Kesa Electricals PLC | 26,593,098 | - | - | 26,593,098 | 785 | 20,083 | ||||||||||||||||||
OPAP SA (3) | 16,055,910 | - | 4,546,478 | 11,509,432 | - | - | ||||||||||||||||||
$ | 5,883 | $ | 712,897 |
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 5/31/2012. | |||
Key to abbreviations | |||
ADR = American Depositary Receipts | |||
MXN = Mexican pesos | |||
See Notes to Financial Statements |
Financial statements
Statement of assets and liabilities | unaudited | |||||||
at May 31, 2012 | (dollars in thousands) | �� | ||||||
Assets: | ||||||||
Investment securities, at value: | ||||||||
Unaffiliated issuers (cost: $59,497,801) | $ | 63,970,837 | ||||||
Affiliated issuers (cost: $871,772) | 712,897 | $ | 64,683,734 | |||||
Cash denominated in currencies other than U.S. dollars | ||||||||
(cost: $16,924) | 16,924 | |||||||
Cash | 171 | |||||||
Unrealized appreciation on open forward currency contracts | 22,386 | |||||||
Receivables for: | ||||||||
Sales of investments | 94,560 | |||||||
Sales of fund's shares | 51,301 | |||||||
Closed forward currency contracts | 39,078 | |||||||
Dividends and interest | 318,788 | 503,727 | ||||||
65,226,942 | ||||||||
Liabilities: | ||||||||
Payables for: | ||||||||
Purchases of investments | 128,064 | |||||||
Repurchases of fund's shares | 111,489 | |||||||
Investment advisory services | 21,613 | |||||||
Services provided by related parties | 46,139 | |||||||
Directors' deferred compensation | 1,060 | |||||||
Other | 193 | 308,558 | ||||||
Net assets at May 31, 2012 | $ | 64,918,384 | ||||||
Net assets consist of: | ||||||||
Capital paid in on shares of capital stock | $ | 74,105,210 | ||||||
Undistributed net investment income | 875,280 | |||||||
Accumulated net realized loss | (14,390,020 | ) | ||||||
Net unrealized appreciation | 4,327,914 | |||||||
Net assets at May 31, 2012 | $ | 64,918,384 |
(dollars and shares in thousands, except per-share amounts) | ||||||||||||
Total authorized capital stock - 4,000,000 shares, | ||||||||||||
$.01 par value (1,997,923 total shares outstanding) | ||||||||||||
Net assets | Shares outstanding | Net asset value per share | ||||||||||
Class A | $ | 43,069,848 | 1,323,519 | $ | 32.54 | |||||||
Class B | 1,499,352 | 46,355 | 32.34 | |||||||||
Class C | 4,224,994 | 131,191 | 32.20 | |||||||||
Class F-1 | 3,398,880 | 104,625 | 32.49 | |||||||||
Class F-2 | 1,383,196 | 42,507 | 32.54 | |||||||||
Class 529-A | 2,046,265 | 63,047 | 32.46 | |||||||||
Class 529-B | 115,899 | 3,584 | 32.34 | |||||||||
Class 529-C | 526,426 | 16,294 | 32.31 | |||||||||
Class 529-E | 88,677 | 2,736 | 32.41 | |||||||||
Class 529-F-1 | 67,967 | 2,092 | 32.48 | |||||||||
Class R-1 | 269,204 | 8,346 | 32.26 | |||||||||
Class R-2 | 1,068,578 | 33,195 | 32.19 | |||||||||
Class R-3 | 2,112,287 | 65,287 | 32.35 | |||||||||
Class R-4 | 1,900,388 | 58,514 | 32.48 | |||||||||
Class R-5 | 1,253,215 | 38,488 | 32.56 | |||||||||
Class R-6 | 1,893,208 | 58,143 | 32.56 | |||||||||
See Notes to Financial Statements |
Statement of operations | unaudited | |||||||
for the six months ended May 31, 2012 | (dollars in thousands) | |||||||
Investment income: | ||||||||
Income: | ||||||||
Dividends (net of non-U.S. taxes of $102,964; | ||||||||
also includes $5,652 from affiliates) | $ | 1,288,236 | ||||||
Interest (includes $231 from affiliates) | 50,555 | $ | 1,338,791 | |||||
Fees and expenses*: | ||||||||
Investment advisory services | 130,894 | |||||||
Distribution services | 110,215 | |||||||
Transfer agent services | 55,678 | |||||||
Administrative services | 7,066 | |||||||
Reports to shareholders | 2,464 | |||||||
Registration statement and prospectus | 447 | |||||||
Directors' compensation | 300 | |||||||
Auditing and legal | 71 | |||||||
Custodian | 3,083 | |||||||
State and local taxes | 565 | |||||||
Other | 1,682 | 312,465 | ||||||
Net investment income | 1,026,326 | |||||||
Net realized gain and unrealized depreciation | ||||||||
on investments, forward currency contracts and currency: | ||||||||
Net realized gain on: | ||||||||
Investments (net of non-U.S. taxes of $14; also includes $123,492 net loss from affiliates) | 217,890 | |||||||
Forward currency contracts | 64,024 | |||||||
Currency transactions | 170 | 282,084 | ||||||
Net unrealized (depreciation) appreciation on: | ||||||||
Investments | (446,087 | ) | ||||||
Forward currency contracts | 23,055 | |||||||
Currency translations | (9,502 | ) | (432,534 | ) | ||||
Net realized gain and unrealized depreciation | ||||||||
on investments, forward currency contracts and currency | (150,450 | ) | ||||||
Net increase in net assets resulting | ||||||||
from operations | $ | 875,876 | ||||||
(*) Additional information related to class-specific fees and expenses is included | ||||||||
in the Notes to Financial Statements. | ||||||||
See Notes to Financial Statements | ||||||||
Statements of changes in net assets | ||||||||
(dollars in thousands) | ||||||||
Six months ended May 31, 2012* | Year ended November 30, 2011 | |||||||
Operations: | ||||||||
Net investment income | $ | 1,026,326 | $ | 1,987,803 | ||||
Net realized gain on investments, forward currency contracts and currency transactions | 282,084 | 837,186 | ||||||
Net unrealized depreciation on investments, forward currency contracts and currency translations | (432,534 | ) | (3,205,256 | ) | ||||
Net increase (decrease) in net assets resulting from operations | 875,876 | (380,267 | ) | |||||
Dividends paid to shareholders from net investment income | (793,505 | ) | (1,908,500 | ) | ||||
Net capital share transactions | (3,344,415 | ) | (6,453,000 | ) | ||||
Total decrease in net assets | (3,262,044 | ) | (8,741,767 | ) | ||||
Net assets: | ||||||||
Beginning of period | 68,180,428 | 76,922,195 | ||||||
End of period (including undistributed | ||||||||
net investment income: $875,280 and $642,459, respectively) | $ | 64,918,384 | $ | 68,180,428 | ||||
*Unaudited. | ||||||||
See Notes to Financial Statements |
Notes to financial statements
unaudited
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. Shareholders approved a proposal to reorganize the fund from a Maryland corporation to a Delaware statutory trust. The reorganization may be completed in 2012; however, the fund reserves the right to delay the implementation.
The fund has 16 share classes consisting of five retail share classes (Classes A, B and C, as well as two F share classes, F-1 and F-2), five 529 college savings plan share classes (Classes 529-A, 529-B, 529-C, 529-E and 529-F-1) and six retirement plan share classes (Classes R-1, R-2, R-3, R-4, R-5 and R-6). The 529 college savings plan share classes can be used to save for college education. The retirement plan share classes are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are further described below:
Share class | Initial sales charge | Contingent deferred sales charge upon redemption | Conversion feature |
Classes A and 529-A | Up to 5.75% | None (except 1% for certain redemptions within one year of purchase without an initial sales charge) | None |
Classes B and 529-B* | None | Declines from 5% to 0% for redemptions within six years of purchase | Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years |
Class C | None | 1% for redemptions within one year of purchase | Class C converts to Class F-1 after 10 years |
Class 529-C | None | 1% for redemptions within one year of purchase | None |
Class 529-E | None | None | None |
Classes F-1, F-2 and 529-F-1 | None | None | None |
Classes R-1, R-2, R-3, R-4, R-5 and R-6 | None | None | None |
*Class B and 529-B shares of the fund are not available for purchase.
Holders of all share classes have equal pro rata rights to assets, dividends and liquidation proceeds. Each share class has identical voting rights, except for the exclusive right to vote on matters affecting only its class. Share classes have different fees and expenses ("class-specific fees and expenses"), primarily due to different arrangements for distribution, administrative and shareholder services. Differences in class-specific fees and expenses will result in differences in net investment income and, therefore, the payment of different per-share dividends by each class.
2. | Significant accounting policies |
The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.
Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.
Class allocations – Income, fees and expenses (other than class-specific fees and expenses) and realized and unrealized gains and losses are allocated daily among the various share classes based on their relative net assets. Class-specific fees and expenses, such as distribution, administrative and shareholder services, are charged directly to the respective share class.
Dividends and distributions to shareholders – Dividends and distributions paid to shareholders are recorded on the ex-dividend date.
Currency translation – Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. On the accompanying financial statements, the effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.
3. | Valuation |
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds & notes; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
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 |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or not deemed to be representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund’s board of directors as further described below. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission (“SEC”) rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure – The fund’s board of directors has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair valuation decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of directors with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.
Classifications – The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of May 31, 2012 (dollars in thousands):
Investment securities | |||||||||||||||||
Level 1(*) | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Consumer discretionary | $ | 8,448,069 | $ | - | $ | - | $ | 8,448,069 | |||||||||
Industrials | 8,111,611 | - | - | 8,111,611 | |||||||||||||
Consumer staples | 7,610,945 | 57,122 | - | 7,668,067 | |||||||||||||
Financials | 6,859,074 | - | - | 6,859,074 | |||||||||||||
Health care | 5,909,677 | - | - | 5,909,677 | |||||||||||||
Telecommunication services | 5,754,218 | - | - | 5,754,218 | |||||||||||||
Information technology | 5,333,290 | - | - | 5,333,290 | |||||||||||||
Energy | 3,840,547 | - | - | 3,840,547 | |||||||||||||
Utilities | 3,269,837 | - | - | 3,269,837 | |||||||||||||
Materials | 3,113,231 | - | - | 3,113,231 | |||||||||||||
Miscellaneous | 1,345,273 | - | - | 1,345,273 | |||||||||||||
Preferred stocks | - | 9,729 | - | 9,729 | |||||||||||||
Rights | 823 | - | - | 823 | |||||||||||||
Convertible securities | 69,374 | 129,320 | - | 198,694 | |||||||||||||
Bonds & notes | - | 1,329,115 | - | 1,329,115 | |||||||||||||
Short-term securities | - | 3,492,479 | - | 3,492,479 | |||||||||||||
Total | $ | 59,665,969 | $ | 5,017,765 | $ | - | $ | 64,683,734 | |||||||||
Other investments(†) | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Unrealized appreciation on open forward currency contracts | $ | - | $ | 22,386 | $ | - | $ | 22,386 | |||||||||
(*) Securities with a market value of $33,307,646,000, which represented 51.31% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading. | |||||||||||||||||
(†) Forward currency contracts are not included in the investment portfolio. |
4. | Risk factors |
Investing in the fund may involve certain risks including, but not limited to, those described below.
Market conditions – The prices of, and the income generated by, the 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, economic or market developments in the countries or regions in which the issuer operates. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the U.S. The risks of investing outside the U.S. may be heightened in connection with investments in emerging and developing countries.
Investing in emerging and 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, emerging and developing countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Additionally, there may be increased settlement risks for transactions in local securities.
Investing in growth-oriented stocks – Growth-oriented stocks 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 reduced 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 investment results to lag relevant benchmarks or other funds with similar objectives.
5. | Taxation and distributions |
Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.
As of and during the period ended May 31, 2012, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.
The fund is not subject to examination by U.S. federal tax authorities for tax years before 2007, by state tax authorities for tax years before 2006 and by tax authorities outside the U.S. for tax years before 2005.
Non-U.S. taxation – Dividend and interest income are recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.
Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; unrealized appreciation of certain investments in securities outside the U.S.; cost of investments sold; 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 realized gains are recorded by the fund for financial reporting purposes.
The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of November 30, 2011, the components of distributable earnings on a tax basis were as follows:
(dollars in thousands) | ||||||||
Undistributed ordinary income | $ | 910,838 | ||||||
Capital loss carryforwards*: | ||||||||
Expiring 2016 | $ | (1,291,317 | ) | |||||
Expiring 2017 | (13,178,426 | ) | (14,469,743 | ) | ||||
Post-October capital loss deferrals (realized during the period November 1, 2011, through November 30, 2011)† | (296,734 | ) | ||||||
*The capital loss carryforwards will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration dates. The fund will not make distributions from capital gains while capital loss carryforwards remain. | ||||||||
†These deferrals are considered incurred in the subsequent year. |
Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after November 30, 2011, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
As of May 31, 2012, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:
(dollars in thousands) | ||||
Gross unrealized appreciation on investment securities | $ | 11,072,129 | ||
Gross unrealized depreciation on investment securities | (6,904,457 | ) | ||
Net unrealized appreciation on investment securities | 4,167,672 | |||
Cost of investment securities | 60,516,062 |
Tax-basis distributions paid to shareholders from ordinary income were as follows (dollars in thousands):
Share class | Six months ended May 31, 2012 | Year ended November 30, 2011 | ||||||
Class A | $ | 549,455 | $ | 1,340,861 | ||||
Class B | 14,241 | 40,785 | ||||||
Class C | 37,819 | 99,005 | ||||||
Class F-1 | 39,719 | 97,133 | ||||||
Class F-2 | 18,932 | 44,057 | ||||||
Class 529-A | 24,395 | 53,362 | ||||||
Class 529-B | 991 | 2,679 | ||||||
Class 529-C | 4,218 | 9,646 | ||||||
Class 529-E | 958 | 2,092 | ||||||
Class 529-F-1 | 868 | 1,770 | ||||||
Class R-1 | 2,375 | 5,238 | ||||||
Class R-2 | 9,507 | 22,987 | ||||||
Class R-3 | 23,413 | 53,891 | ||||||
Class R-4 | 24,019 | 54,813 | ||||||
Class R-5 | 17,406 | 40,150 | ||||||
Class R-6 | 25,189 | 40,031 | ||||||
Total | $ | 793,505 | $ | 1,908,500 |
6. | Fees and transactions with related parties |
CRMC, the fund’s investment adviser, is the parent company of American Funds Distributors,® Inc. ("AFD"), the principal underwriter of the fund’s shares, and American Funds Service Company® ("AFS"), the fund’s transfer agent.
Investment advisory services – The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.600% on the first $500 million of daily net assets and decreasing to 0.350% on such assets in excess of $115 billion. For the six months ended May 31, 2012, the investment advisory services fee was $130,894,000, which was equivalent to an annualized rate of 0.379% of average daily net assets.
Class-specific fees and expenses – Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described on the following page:
Distribution services – The fund has plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of directors approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted below. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.
For Classes A and 529-A, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of May 31, 2012, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.
Share class | Currently approved limits | Plan limits |
Class A | 0.30% | 0.30% |
Class 529-A | 0.30 | 0.50 |
Classes B and 529-B | 1.00 | 1.00 |
Classes C, 529-C and R-1 | 1.00 | 1.00 |
Class R-2 | 0.75 | 1.00 |
Classes 529-E and R-3 | 0.50 | 0.75 |
Classes F-1, 529-F-1 and R-4 | 0.25 | 0.50 |
Transfer agent services – The fund has a shareholder services agreement with AFS under which the fund compensates AFS for providing transfer agent services to each of the fund’s share classes. These services include recordkeeping, shareholder communications and transaction processing. In addition, the fund reimburses AFS for amounts paid to third parties for performing transfer agent services on behalf of fund shareholders.
During the period December 1, 2011, through December 31, 2011, only Class A and B shares were subject to the shareholder services agreement with AFS. During this period, AFS and other third parties were compensated for providing transfer agent services to Class C, F, R and 529 shares through the fees paid by the fund to CRMC under the fund’s administrative services agreement with CRMC as described in the administrative services section on the following page; CRMC paid for any transfer agent services expenses in excess of 0.10% of the respective average daily net assets of each of such share classes.
Effective January 1, 2012, the shareholder services agreement with AFS was modified to include Class C, F, R and 529 shares and payment for transfer agent services for such classes under the administrative services agreement terminated. Under this structure, transfer agent services expenses for some classes may exceed 0.10% of average daily net assets, resulting in an increase in expenses paid by some share classes.
For the six months ended May 31, 2012, the total transfer agent services fee paid under these agreements was $55,678,000, of which $54,082,000 was paid by the fund to AFS and $1,596,000 was paid by the fund to CRMC through its administrative services agreement with the fund. Amounts paid to CRMC by the fund were then paid by CRMC to AFS and other third parties.
Administrative services – The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to Class A, C, F, R and 529 shares. These services include, but are not limited to, coordinating, monitoring, assisting and overseeing third parties that provide services to fund shareholders.
During the period December 1, 2011, through December 31, 2011, the agreement applied only to Class C, F, R and 529 shares. The agreement also required CRMC to arrange for the provision of transfer agent services for such share classes, which paid CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) of their respective average daily net assets. During this period, up to 0.05% of these fees were used to compensate CRMC for performing administrative services; all other amounts paid under this agreement were used to compensate AFS and other third parties for transfer agent services.
Effective January 1, 2012, the administrative services agreement with CRMC was modified to include Class A shares. Under the revised agreement, Class A shares pay an annual fee of 0.01% and Class C, F, R and 529 shares pay an annual fee of 0.05% of their respective average daily net assets to CRMC for administrative services. Fees for transfer agent services are no longer included as part of the administrative services fee paid by the fund to CRMC.
For the six months ended May 31, 2012, total fees paid to CRMC for performing administrative services were $7,066,000.
529 plan services – Each 529 share class is subject to service fees to compensate the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. The fee is included in other expenses on the accompanying financial statements. The Commonwealth of Virginia is not considered a related party.
Class-specific expenses under the agreements described above for the six months ended May 31, 2012, were as follows (dollars in thousands):
Share class | Distribution services | Transfer agent services | Administrative services | 529 plan services | ||||||||||||
Class A | $ | 54,724 | $ | 40,633 | $ | 1,931 | Not applicable | |||||||||
Class B | 8,633 | 1,555 | Not applicable | Not applicable | ||||||||||||
Class C | 23,100 | 3,934 | 1,031 | Not applicable | ||||||||||||
Class F-1 | 4,116 | 1,718 | 782 | Not applicable | ||||||||||||
Class F-2 | Not applicable | 642 | 361 | Not applicable | ||||||||||||
Class 529-A | 2,269 | 1,390 | 500 | $ | 1,060 | |||||||||||
Class 529-B | 644 | 97 | 30 | 64 | ||||||||||||
Class 529-C | 2,732 | 388 | 129 | 274 | ||||||||||||
Class 529-E | 232 | 40 | 23 | 46 | ||||||||||||
Class 529-F-1 | - | 45 | 17 | 35 | ||||||||||||
Class R-1 | 1,429 | 150 | 74 | Not applicable | ||||||||||||
Class R-2 | 4,256 | 2,056 | 292 | Not applicable | ||||||||||||
Class R-3 | 5,580 | 1,718 | 579 | Not applicable | ||||||||||||
Class R-4 | 2,500 | 983 | 517 | Not applicable | ||||||||||||
Class R-5 | Not applicable | 322 | 329 | Not applicable | ||||||||||||
Class R-6 | Not applicable | 7 | 471 | Not applicable | ||||||||||||
Total class-specific expenses | $ | 110,215 | $ | 55,678 | $ | 7,066 | $ | 1,479 |
Directors’ deferred compensation – Directors who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation of $300,000, shown on the accompanying financial statements, includes $227,000 in current fees (either paid in cash or deferred) and a net increase of $73,000 in the value of the deferred amounts.
Affiliated officers and directors – Officers and certain directors of the fund are or may be considered to be affiliated with CRMC, AFS and AFD. No affiliated officers or directors received any compensation directly from the fund.
7. | Capital share transactions |
Capital share transactions in the fund were as follows (dollars and shares in thousands):
Sales(*) | Reinvestments of dividends | Repurchases(*) | Net (decrease) increase | |||||||||||||||||||||||||||||
Share class | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | ||||||||||||||||||||||||
Six months ended May 31, 2012 | ||||||||||||||||||||||||||||||||
Class A | $ | 1,503,290 | 44,285 | $ | 534,916 | 16,343 | $ | (4,628,058 | ) | (137,085 | ) | $ | (2,589,852 | ) | (76,457 | ) | ||||||||||||||||
Class B | 5,991 | 177 | 14,009 | 435 | (361,984 | ) | (10,769 | ) | (341,984 | ) | (10,157 | ) | ||||||||||||||||||||
Class C | 133,814 | 3,969 | 36,504 | 1,137 | (642,615 | ) | (19,200 | ) | (472,297 | ) | (14,094 | ) | ||||||||||||||||||||
Class F-1 | 680,978 | 20,422 | 38,673 | 1,184 | (621,220 | ) | (18,463 | ) | 98,431 | 3,143 | ||||||||||||||||||||||
Class F-2 | 223,180 | 6,612 | 16,365 | 499 | (256,756 | ) | (7,624 | ) | (17,211 | ) | (513 | ) | ||||||||||||||||||||
Class 529-A | 148,767 | 4,412 | 24,388 | 747 | (147,697 | ) | (4,395 | ) | 25,458 | 764 | ||||||||||||||||||||||
Class 529-B | 1,175 | 35 | 990 | 31 | (20,727 | ) | (620 | ) | (18,562 | ) | (554 | ) | ||||||||||||||||||||
Class 529-C | 44,101 | 1,310 | 4,217 | 130 | (48,368 | ) | (1,449 | ) | (50 | ) | (9 | ) | ||||||||||||||||||||
Class 529-E | 6,912 | 205 | 957 | 29 | (8,320 | ) | (249 | ) | (451 | ) | (15 | ) | ||||||||||||||||||||
Class 529-F-1 | 9,287 | 274 | 868 | 26 | (8,287 | ) | (246 | ) | 1,868 | 54 | ||||||||||||||||||||||
Class R-1 | 19,561 | 581 | 2,366 | 74 | (28,100 | ) | (835 | ) | (6,173 | ) | (180 | ) | ||||||||||||||||||||
Class R-2 | 133,960 | 3,982 | 9,495 | 295 | (199,837 | ) | (5,968 | ) | (56,382 | ) | (1,691 | ) | ||||||||||||||||||||
Class R-3 | 258,869 | 7,669 | 23,366 | 719 | (329,495 | ) | (9,778 | ) | (47,260 | ) | (1,390 | ) | ||||||||||||||||||||
Class R-4 | 236,907 | 6,972 | 24,011 | 735 | (331,087 | ) | (9,849 | ) | (70,169 | ) | (2,142 | ) | ||||||||||||||||||||
Class R-5 | 151,073 | 4,443 | 17,378 | 529 | (188,162 | ) | (5,552 | ) | (19,711 | ) | (580 | ) | ||||||||||||||||||||
Class R-6 | 296,570 | 8,831 | 22,673 | 689 | (149,313 | ) | (4,479 | ) | 169,930 | 5,041 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 3,854,435 | 114,179 | $ | 771,176 | 23,602 | $ | (7,970,026 | ) | (236,561 | ) | $ | (3,344,415 | ) | (98,780 | ) | ||||||||||||||||
Year ended November 30, 2011 | ||||||||||||||||||||||||||||||||
Class A | $ | 3,731,263 | 105,624 | $ | 1,298,014 | 37,014 | $ | (10,080,108 | ) | (288,090 | ) | $ | (5,050,831 | ) | (145,452 | ) | ||||||||||||||||
Class B | 27,094 | 768 | 39,855 | 1,137 | (650,444 | ) | (18,736 | ) | (583,495 | ) | (16,831 | ) | ||||||||||||||||||||
Class C | 368,672 | 10,513 | 94,784 | 2,715 | (1,415,495 | ) | (40,867 | ) | (952,039 | ) | (27,639 | ) | ||||||||||||||||||||
Class F-1 | 755,450 | 21,487 | 91,386 | 2,611 | (1,263,249 | ) | (36,215 | ) | (416,413 | ) | (12,117 | ) | ||||||||||||||||||||
Class F-2 | 505,685 | 14,269 | 36,670 | 1,048 | (547,202 | ) | (15,680 | ) | (4,847 | ) | (363 | ) | ||||||||||||||||||||
Class 529-A | 317,733 | 9,049 | 53,346 | 1,525 | (239,957 | ) | (6,877 | ) | 131,122 | 3,697 | ||||||||||||||||||||||
Class 529-B | 3,553 | 101 | 2,679 | 76 | (35,665 | ) | (1,025 | ) | (29,433 | ) | (848 | ) | ||||||||||||||||||||
Class 529-C | 90,796 | 2,597 | 9,643 | 276 | (78,585 | ) | (2,265 | ) | 21,854 | 608 | ||||||||||||||||||||||
Class 529-E | 14,564 | 415 | 2,092 | 60 | (10,923 | ) | (314 | ) | 5,733 | 161 | ||||||||||||||||||||||
Class 529-F-1 | 18,633 | 532 | 1,770 | 51 | (10,449 | ) | (297 | ) | 9,954 | 286 | ||||||||||||||||||||||
Class R-1 | 60,237 | 1,727 | 5,191 | 148 | (47,902 | ) | (1,375 | ) | 17,526 | 500 | ||||||||||||||||||||||
Class R-2 | 292,234 | 8,381 | 22,951 | 658 | (414,012 | ) | (11,861 | ) | (98,827 | ) | (2,822 | ) | ||||||||||||||||||||
Class R-3 | 575,962 | 16,411 | 53,757 | 1,539 | (702,642 | ) | (20,122 | ) | (72,923 | ) | (2,172 | ) | ||||||||||||||||||||
Class R-4 | 545,123 | 15,505 | 54,784 | 1,566 | (617,735 | ) | (17,634 | ) | (17,828 | ) | (563 | ) | ||||||||||||||||||||
Class R-5 | 334,435 | 9,533 | 40,062 | 1,144 | (427,170 | ) | (12,193 | ) | (52,673 | ) | (1,516 | ) | ||||||||||||||||||||
Class R-6 | 714,337 | 20,910 | 39,935 | 1,144 | (114,152 | ) | (3,252 | ) | 640,120 | 18,802 | ||||||||||||||||||||||
Total net increase (decrease) | $ | 8,355,771 | 237,822 | $ | 1,846,919 | 52,712 | $ | (16,655,690 | ) | (476,803 | ) | $ | (6,453,000 | ) | (186,269 | ) | ||||||||||||||||
*Includes exchanges between share classes of the fund. |
8. | Investment transactions |
The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $6,255,780,000 and $8,671,123,000, respectively, during the six months ended May 31, 2012.
9. | Forward currency contracts |
The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates. To reduce these risks, the fund has entered into a collateral program with certain counterparties. The program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. The purpose of the collateral is to cover potential losses that could occur in the event that either party can not meet their contractual obligations.
On a daily basis, the fund’s investment adviser values forward currency contracts based on the applicable exchange rate and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed or offset by another contract with the same broker for the same settlement date and currency. Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the fund’s statement of operations.
As of May 31, 2012, the fund had open forward currency contracts to sell currencies, as shown in the following table. The open forward currency contracts shown are generally indicative of the level of activity over the prior 12-month period.
(amounts in thousands) | |||||||||||||||
Contract amount | Unrealized appreciation at 5/31/2012 | ||||||||||||||
Settlement date | Counterparty | Receive | Deliver | ||||||||||||
Sales: | |||||||||||||||
Australian dollars | 6/29/2012 | Barclays Bank PLC | $ | 136,053 | $ | A139,000 | $ | 1,029 | |||||||
Euros | 6/7/2012 | HSBC Bank | $ | 164,389 | € | 125,000 | 9,824 | ||||||||
Euros | 6/13/2012 | UBS AG | $ | 108,094 | € | 83,450 | 4,903 | ||||||||
Euros | 6/22/2012 | UBS AG | $ | 213,732 | € | 168,000 | 5,980 | ||||||||
Euros | 7/2/2012 | UBS AG | $ | 216,900 | € | 175,000 | 479 | ||||||||
Euros | 7/3/2012 | JPMorgan Chase | $ | 216,569 | € | 175,000 | 145 | ||||||||
Euros | 7/9/2012 | Citibank | $ | 147,203 | € | 119,000 | 26 | ||||||||
$ | 22,386 |
Financial highlights
Income (loss) from investment operations(1) | Dividends and distributions | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income(2) | 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(3)(4) | Net assets, end of period (in millions) | Ratio of expenses to average net assets before reimbursements/ waivers | Ratio of expenses to average net assets after reimbursements/ waivers(4) | Ratio of net income to average net assets(2)(4) | |||||||||||||||||||||||||||||||||||||||||
Class A: | Six months ended 5/31/2012(5)(6) | $ | 32.57 | $ | .52 | $ | (.15 | ) | $ | .37 | $ | (.40 | ) | $ | - | $ | (.40 | ) | $ | 32.54 | 1.13 | % | $ | 43,070 | .82 | %(7) | .82 | %(7) | 3.05 | %(7) | |||||||||||||||||||||||
Year ended 11/30/2011 | 33.75 | .94 | (1.22 | ) | (.28 | ) | (.90 | ) | - | (.90 | ) | 32.57 | (.99 | ) | 45,595 | .79 | .79 | 2.67 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class B: | Six months ended 5/31/2012(5)(6) | 32.37 | .37 | (.13 | ) | .24 | (.27 | ) | - | (.27 | ) | 32.34 | .74 | 1,499 | 1.58 | (7) | 1.58 | (7) | 2.21 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.53 | .67 | (1.21 | ) | (.54 | ) | (.62 | ) | - | (.62 | ) | 32.37 | (1.74 | ) | 1,829 | 1.56 | 1.56 | 1.90 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class C: | Six months ended 5/31/2012(5)(6) | 32.23 | .38 | (.14 | ) | .24 | (.27 | ) | - | (.27 | ) | 32.20 | .71 | 4,225 | 1.61 | (7) | 1.61 | (7) | 2.24 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.40 | .65 | (1.21 | ) | (.56 | ) | (.61 | ) | - | (.61 | ) | 32.23 | (1.77 | ) | 4,683 | 1.58 | 1.58 | 1.87 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class F-1: | Six months ended 5/31/2012(5)(6) | 32.51 | .52 | (.14 | ) | .38 | (.40 | ) | - | (.40 | ) | 32.49 | 1.17 | 3,399 | .80 | (7) | .80 | (7) | 3.08 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.69 | .93 | (1.22 | ) | (.29 | ) | (.89 | ) | - | (.89 | ) | 32.51 | (1.02 | ) | 3,299 | .80 | .80 | 2.66 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class F-2: | Six months ended 5/31/2012(5)(6) | 32.56 | .57 | (.15 | ) | .42 | (.44 | ) | - | (.44 | ) | 32.54 | 1.26 | 1,383 | .54 | (7) | .54 | (7) | 3.36 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.75 | 1.02 | (1.22 | ) | (.20 | ) | (.99 | ) | - | (.99 | ) | 32.56 | (.75 | ) | 1,401 | .54 | .54 | 2.91 | |||||||||||||||||||||||||||||||||||
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(5) | 38.34 | .23 | (12.79 | ) | (12.56 | ) | (.27 | ) | - | (.27 | ) | 25.51 | (32.95 | ) | 127 | .18 | .17 | .83 | |||||||||||||||||||||||||||||||||||
Class 529-A: | Six months ended 5/31/2012(5)(6) | 32.49 | .51 | (.15 | ) | .36 | (.39 | ) | - | (.39 | ) | 32.46 | 1.11 | 2,046 | .89 | (7) | .89 | (7) | 3.02 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.67 | .91 | (1.21 | ) | (.30 | ) | (.88 | ) | - | (.88 | ) | 32.49 | (1.06 | ) | 2,023 | .85 | .85 | 2.61 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class 529-B: | Six months ended 5/31/2012(5)(6) | 32.36 | .36 | (.13 | ) | .23 | (.25 | ) | - | (.25 | ) | 32.34 | .69 | 116 | 1.69 | (7) | 1.69 | (7) | 2.13 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.53 | .63 | (1.21 | ) | (.58 | ) | (.59 | ) | - | (.59 | ) | 32.36 | (1.84 | ) | 134 | 1.65 | 1.65 | 1.80 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class 529-C: | Six months ended 5/31/2012(5)(6) | 32.34 | .37 | (.14 | ) | .23 | (.26 | ) | - | (.26 | ) | 32.31 | .71 | 527 | 1.68 | (7) | 1.68 | (7) | 2.22 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.51 | .63 | (1.20 | ) | (.57 | ) | (.60 | ) | - | (.60 | ) | 32.34 | (1.84 | ) | 527 | 1.65 | 1.65 | 1.81 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Financial highlights | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class 529-E: | Six months ended 5/31/2012(5)(6) | $ | 32.44 | $ | .47 | $ | (.15 | ) | $ | .32 | $ | (.35 | ) | $ | - | $ | (.35 | ) | $ | 32.41 | .98 | % | $ | 89 | 1.13 | %(7) | 1.13 | %(7) | 2.77 | %(7) | |||||||||||||||||||||||
Year ended 11/30/2011 | 33.61 | .82 | (1.21 | ) | (.39 | ) | (.78 | ) | - | (.78 | ) | 32.44 | (1.31 | ) | 89 | 1.12 | 1.12 | 2.33 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class 529-F-1: | Six months ended 5/31/2012(5)(6) | 32.51 | .55 | (.15 | ) | .40 | (.43 | ) | - | (.43 | ) | 32.48 | 1.18 | 68 | .68 | (7) | .68 | (7) | 3.24 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.70 | .98 | (1.21 | ) | (.23 | ) | (.96 | ) | - | (.96 | ) | 32.51 | (.84 | ) | 66 | .64 | .64 | 2.81 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-1: | Six months ended 5/31/2012(5)(6) | 32.29 | .39 | (.14 | ) | .25 | (.28 | ) | - | (.28 | ) | 32.26 | .77 | 269 | 1.56 | (7) | 1.56 | (7) | 2.33 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.46 | .66 | (1.20 | ) | (.54 | ) | (.63 | ) | - | (.63 | ) | 32.29 | (1.75 | ) | 275 | 1.56 | 1.56 | 1.90 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-2: | Six months ended 5/31/2012(5)(6) | 32.22 | .39 | (.14 | ) | .25 | (.28 | ) | - | (.28 | ) | 32.19 | .77 | 1,069 | 1.56 | (7) | 1.56 | (7) | 2.32 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.39 | .66 | (1.20 | ) | (.54 | ) | (.63 | ) | - | (.63 | ) | 32.22 | (1.75 | ) | 1,124 | 1.56 | 1.56 | 1.90 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-3: | Six months ended 5/31/2012(5)(6) | 32.38 | .47 | (.15 | ) | .32 | (.35 | ) | - | (.35 | ) | 32.35 | .99 | 2,112 | 1.10 | (7) | 1.10 | (7) | 2.79 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.56 | .82 | (1.21 | ) | (.39 | ) | (.79 | ) | - | (.79 | ) | 32.38 | (1.32 | ) | 2,159 | 1.10 | 1.10 | 2.36 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-4: | Six months ended 5/31/2012(5)(6) | 32.50 | .52 | (.14 | ) | .38 | (.40 | ) | - | (.40 | ) | 32.48 | 1.14 | 1,900 | .80 | (7) | .80 | (7) | 3.08 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.68 | .93 | (1.22 | ) | (.29 | ) | (.89 | ) | - | (.89 | ) | 32.50 | (.98 | ) | 1,972 | .80 | .80 | 2.66 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-5: | Six months ended 5/31/2012(5)(6) | 32.59 | .58 | (.16 | ) | .42 | (.45 | ) | - | (.45 | ) | 32.56 | 1.29 | 1,253 | .50 | (7) | .50 | (7) | 3.39 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.77 | 1.04 | (1.22 | ) | (.18 | ) | (1.00 | ) | - | (1.00 | ) | 32.59 | (.71 | ) | 1,273 | .50 | .50 | 2.95 | |||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||
Class R-6: | Six months ended 5/31/2012(5)(6) | 32.59 | .59 | (.16 | ) | .43 | (.46 | ) | - | (.46 | ) | 32.56 | 1.32 | 1,893 | .45 | (7) | .45 | (7) | 3.50 | (7) | |||||||||||||||||||||||||||||||||
Year ended 11/30/2011 | 33.77 | 1.03 | (1.19 | ) | (.16 | ) | (1.02 | ) | - | (1.02 | ) | 32.59 | (.65 | ) | 1,731 | .45 | .45 | 2.97 | |||||||||||||||||||||||||||||||||||
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(5) | 26.05 | .51 | 7.85 | 8.36 | (.59 | ) | - | (.59 | ) | 33.82 | 32.50 | 517 | .49 | (7) | .49 | (7) | 2.84 | (7) |
Six months ended May 31, | Year ended November 30 | |||||||||||||||||||||||
2012(5)(6) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
Portfolio turnover rate for all share classes | 10 | % | 27 | % | 25 | % | 44 | % | 37 | % | 30 | % |
(1)Based on average shares outstanding. | ||||||||||||||
(2)For the year ended November 30, 2007, this column reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event 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 $.13 and .29 percentage points, respectively. The impact to the other share classes would have been similar. | ||||||||||||||
(3)Total returns exclude any applicable sales charges, including contingent deferred sales charges. | ||||||||||||||
(4)This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the 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. | ||||||||||||||
(5)Based on operations for the period shown and, accordingly, is not representative of a full year. | ||||||||||||||
(6)Unaudited. | ||||||||||||||
(7)Annualized. | ||||||||||||||
See Notes to Financial Statements |
Expense example
unaudited
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (December 1, 2011, through May 31, 2012).
Actual expenses:
The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes:
The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.
Notes:
There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.
Note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning account value 12/1/2011 | Ending account value 5/31/2012 | Expenses paid during period* | Annualized expense ratio | |||||||||||||
Class A -- actual return | $ | 1,000.00 | $ | 1,011.31 | $ | 4.12 | .82 | % | ||||||||
Class A -- assumed 5% return | 1,000.00 | 1,020.90 | 4.14 | .82 | ||||||||||||
Class B -- actual return | 1,000.00 | 1,007.36 | 7.93 | 1.58 | ||||||||||||
Class B -- assumed 5% return | 1,000.00 | 1,017.10 | 7.97 | 1.58 | ||||||||||||
Class C -- actual return | 1,000.00 | 1,007.09 | 8.08 | 1.61 | ||||||||||||
Class C -- assumed 5% return | 1,000.00 | 1,016.95 | 8.12 | 1.61 | ||||||||||||
Class F-1 -- actual return | 1,000.00 | 1,011.74 | 4.02 | .80 | ||||||||||||
Class F-1 -- assumed 5% return | 1,000.00 | 1,021.00 | 4.04 | .80 | ||||||||||||
Class F-2 -- actual return | 1,000.00 | 1,012.64 | 2.72 | .54 | ||||||||||||
Class F-2 -- assumed 5% return | 1,000.00 | 1,022.30 | 2.73 | .54 | ||||||||||||
Class 529-A -- actual return | 1,000.00 | 1,011.06 | 4.47 | .89 | ||||||||||||
Class 529-A -- assumed 5% return | 1,000.00 | 1,020.55 | 4.50 | .89 | ||||||||||||
Class 529-B -- actual return | 1,000.00 | 1,006.87 | 8.48 | 1.69 | ||||||||||||
Class 529-B -- assumed 5% return | 1,000.00 | 1,016.55 | 8.52 | 1.69 | ||||||||||||
Class 529-C -- actual return | 1,000.00 | 1,007.10 | 8.43 | 1.68 | ||||||||||||
Class 529-C -- assumed 5% return | 1,000.00 | 1,016.60 | 8.47 | 1.68 | ||||||||||||
Class 529-E -- actual return | 1,000.00 | 1,009.83 | 5.68 | 1.13 | ||||||||||||
Class 529-E -- assumed 5% return | 1,000.00 | 1,019.35 | 5.70 | 1.13 | ||||||||||||
Class 529-F-1 -- actual return | 1,000.00 | 1,011.78 | 3.42 | .68 | ||||||||||||
Class 529-F-1 -- assumed 5% return | 1,000.00 | 1,021.60 | 3.44 | .68 | ||||||||||||
Class R-1 -- actual return | 1,000.00 | 1,007.74 | 7.83 | 1.56 | ||||||||||||
Class R-1 -- assumed 5% return | 1,000.00 | 1,017.20 | 7.87 | 1.56 | ||||||||||||
Class R-2 -- actual return | 1,000.00 | 1,007.68 | 7.83 | 1.56 | ||||||||||||
Class R-2 -- assumed 5% return | 1,000.00 | 1,017.20 | 7.87 | 1.56 | ||||||||||||
Class R-3 -- actual return | 1,000.00 | 1,009.93 | 5.53 | 1.10 | ||||||||||||
Class R-3 -- assumed 5% return | 1,000.00 | 1,019.50 | 5.55 | 1.10 | ||||||||||||
Class R-4 -- actual return | 1,000.00 | 1,011.43 | 4.02 | .80 | ||||||||||||
Class R-4 -- assumed 5% return | 1,000.00 | 1,021.00 | 4.04 | .80 | ||||||||||||
Class R-5 -- actual return | 1,000.00 | 1,012.91 | 2.52 | .50 | ||||||||||||
Class R-5 -- assumed 5% return | 1,000.00 | 1,022.50 | 2.53 | .50 | ||||||||||||
Class R-6 -- actual return | 1,000.00 | 1,013.17 | 2.26 | .45 | ||||||||||||
Class R-6 -- assumed 5% return | 1,000.00 | 1,022.75 | 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 366 (to reflect the one-half year period). |
Other share class results
unaudited
Classes B, C, F and 529
Fund results shown are for past periods and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com.
Average annual total returns for periods ended June 30, 2012 | ||||||||||||
(the most recent calendar quarter-end): | 10 years/ | |||||||||||
1 year | 5 years | Life of class1 | ||||||||||
Class B shares2 | ||||||||||||
Reflecting applicable contingent deferred sales charge | ||||||||||||
(CDSC), maximum of 5%, payable only if shares | ||||||||||||
are sold within six years of purchase | –11.23 | % | –2.80 | % | 7.67 | % | ||||||
Not reflecting CDSC | –6.66 | –2.47 | 7.67 | |||||||||
Class C shares | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
if shares are sold within one year of purchase | –7.57 | –2.50 | 7.46 | |||||||||
Not reflecting CDSC | –6.66 | –2.50 | 7.46 | |||||||||
Class F-1 shares3 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | –5.93 | –1.72 | 8.31 | |||||||||
Class F-2 shares3 — first sold 8/1/08 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | –5.67 | — | 0.17 | |||||||||
Class 529-A shares4 | ||||||||||||
Reflecting 5.75% maximum sales charge | –11.40 | –2.93 | 7.63 | |||||||||
Not reflecting maximum sales charge | –5.98 | –1.77 | 8.27 | |||||||||
Class 529-B shares2,4 | ||||||||||||
Reflecting applicable CDSC, maximum of 5%, payable | ||||||||||||
only if shares are sold within six years of purchase | –11.31 | –2.89 | 7.54 | |||||||||
Not reflecting CDSC | –6.74 | –2.57 | 7.54 | |||||||||
Class 529-C shares4 | ||||||||||||
Reflecting CDSC, maximum of 1%, payable only | ||||||||||||
if shares are sold within one year of purchase | –7.64 | –2.56 | 7.38 | |||||||||
Not reflecting CDSC | –6.72 | –2.56 | 7.38 | |||||||||
Class 529-E shares3,4 | –6.25 | –2.06 | 7.93 | |||||||||
Class 529-F-1 shares3,4 — first sold 9/17/02 | ||||||||||||
Not reflecting annual asset-based fee charged | ||||||||||||
by sponsoring firm | –5.77 | –1.57 | 9.71 |
1Applicable to Class F-2 and 529-F-1 shares only. All other share classes reflect 10-year results. |
2These shares are not available for purchase. |
3These shares are sold without any initial or contingent deferred sales charge. |
4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee. |
Investment results assume all distributions are reinvested and reflect applicable fees and expenses. When applicable, investment results reflect fee waivers, without which results would have been lower. Visit americanfunds.com for more information.
For information regarding the differences among the various share classes, refer to the fund’s prospectus.
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
Counsel
O’Melveny & Myers LLP
400 South Hope Street
Los Angeles, CA 90071-2899
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
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 investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.
“American Funds Proxy Voting Procedures and Principles” — which describes how we vote proxies relating to portfolio securities — is available on the American Funds website or upon request by calling AFS. The fund files its proxy voting record with the U.S. Securities and Exchange Commission (SEC) for the 12 months ended June 30 by August 31. The proxy voting record is available free of charge on the SEC website at sec.gov and on the American Funds website.
A complete May 31, 2012, 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 prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after September 30, 2012, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.
The American Funds difference
Since 1931, American Funds has helped investors pursue long-term investment success. Our consistent approach — in combination with a proven system — has resulted in a superior long-term track record.
Consistent approach
We base our decisions on a long-term perspective because we believe it is the best way to achieve superior long-term investment results. Our portfolio counselors average 25 years of investment experience, including 21 years at our company, reflecting a career commitment to our long-term approach.1
Proven system
Our system combines individual accountability with teamwork. Each fund is divided into portions that are managed by investment professionals with varied backgrounds, ages and investment styles. An extensive global research effort is the backbone of our system.
Superior long-term track record
Our equity funds have beaten their Lipper peer indexes in 91% of 10-year periods and 96% of 20-year periods. Our fixed-income funds have beaten their Lipper indexes in 60% of 10-year periods and 67% of 20-year periods.2 Our fund management fees have been among the lowest in the industry.3
1As of 12/31/11. |
2Based on Class A share results for periods through 12/31/11. Periods covered are the shorter of the fund’s lifetime or since the comparable Lipper index inception date. |
3Based on management fees for the 20-year period ended 12/31/11 versus comparable Lipper categories, excluding funds of funds. |
American Funds span a range of investment objectives
•Growth funds |
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 |
American Mutual Fund® |
Capital World Growth and Income Fund® |
Fundamental InvestorsSM |
International Growth and Income FundSM |
The Investment Company of America® |
Washington Mutual Investors FundSM |
•Equity-income funds |
Capital Income Builder® |
The Income Fund of America® |
•Balanced funds |
American Balanced Fund® |
American Funds Global Balanced FundSM |
•Bond funds |
American Funds Mortgage Fund® |
American High-Income Trust® |
The Bond Fund of America® |
Capital World Bond Fund® |
Intermediate Bond Fund of America® |
Short-Term Bond Fund of America® |
U.S. Government Securities Fund® |
•Tax-exempt bond funds |
American Funds Short-Term Tax-Exempt Bond Fund® |
American High-Income Municipal Bond Fund® |
Limited Term Tax-Exempt Bond Fund of America® |
The Tax-Exempt Bond Fund of America® |
State-specific tax-exempt funds |
American Funds Tax-Exempt Fund of New York® |
The Tax-Exempt Fund of California® |
The Tax-Exempt Fund of Maryland® |
The Tax-Exempt Fund of Virginia® |
•Money market fund |
American Funds Money Market Fund® |
•American Funds Portfolio SeriesSM |
American Funds Global Growth PortfolioSM |
American Funds Growth PortfolioSM |
American Funds Growth and Income PortfolioSM |
American Funds Balanced PortfolioSM |
American Funds Income PortfolioSM |
American Funds Tax-Advantaged Income PortfolioSM |
American Funds Preservation PortfolioSM |
American Funds Tax-Exempt Preservation PortfolioSM |
•American Funds Target Date Retirement Series® |
The Capital Group Companies
American Funds Capital Research and Management Capital International Capital Guardian Capital Bank and Trust
Lit. No. MFGESR-933-0712P
Litho in USA AGD/ALD/6269-S33485
Printed on paper containing 10% post-consumer waste
Printed with inks containing soy and/or vegetable oil
ITEM 2 – Code of Ethics
Not applicable for filing of semi-annual reports to shareholders.
ITEM 3 – Audit Committee Financial Expert
Not applicable for filing of semi-annual reports to shareholders.
ITEM 4 – Principal Accountant Fees and Services
Not applicable for filing of semi-annual reports to shareholders.
ITEM 5 – Audit Committee of Listed Registrants
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6 – Schedule of Investments
Capital World Growth and Income Fund®
Investment portfolio
May 31, 2012
unaudited
Common stocks — 91.89% | Shares | Value (000) | ||||||
CONSUMER DISCRETIONARY — 13.01% | ||||||||
Home Depot, Inc. | 20,605,800 | $ | 1,016,690 | |||||
DIRECTV, Class A1 | 13,893,000 | 617,544 | ||||||
Comcast Corp., Class A | 16,952,600 | 490,100 | ||||||
General Motors Co.1 | 18,646,450 | 413,951 | ||||||
Virgin Media Inc.2 | 15,757,000 | 347,127 | ||||||
British Sky Broadcasting Group PLC | 30,336,000 | 321,666 | ||||||
Bayerische Motoren Werke AG | 2,463,100 | 186,088 | ||||||
Bayerische Motoren Werke AG, nonvoting preferred | 2,500,652 | 128,073 | ||||||
News Corp., Class A | 16,255,458 | 312,105 | ||||||
Time Warner Cable Inc. | 3,600,000 | 271,440 | ||||||
Amazon.com, Inc.1 | 1,261,900 | 268,671 | ||||||
Cie. Générale des Établissements Michelin, Class B | 4,515,618 | 263,823 | ||||||
Daimler AG | 5,297,500 | 245,180 | ||||||
SJM Holdings Ltd. | 125,050,000 | 222,016 | ||||||
Kingfisher PLC | 49,438,999 | 214,871 | ||||||
H & M Hennes & Mauritz AB, Class B | 7,088,000 | 210,557 | ||||||
Hyundai Motor Co. | 876,000 | 181,101 | ||||||
Renault SA | 4,242,638 | 177,761 | ||||||
Whitbread PLC | 5,884,096 | 168,947 | ||||||
Honda Motor Co., Ltd. | 4,897,000 | 156,984 | ||||||
Marks and Spencer Group PLC | 30,596,187 | 156,271 | ||||||
adidas AG | 2,031,300 | 151,179 | ||||||
NEXT PLC | 3,235,000 | 151,019 | ||||||
Intercontinental Hotels Group PLC | 6,007,029 | 141,278 | ||||||
YUM! Brands, Inc. | 1,948,000 | 137,061 | ||||||
WPP PLC | 11,106,000 | 132,482 | ||||||
McDonald’s Corp. | 1,300,000 | 116,142 | ||||||
Cie. Financière Richemont SA, Class A, non-registered shares | 2,031,000 | 115,732 | ||||||
Magna International Inc., Class A | 2,791,300 | 112,489 | ||||||
Li & Fung Ltd. | 61,188,000 | 112,261 | ||||||
Swatch Group Ltd, non-registered shares | 291,400 | 112,048 | ||||||
Ford Motor Co. | 10,568,000 | 111,598 | ||||||
NIKE, Inc., Class B | 1,000,000 | 108,180 | ||||||
SES SA, Class A (FDR) | 4,341,486 | 97,031 | ||||||
Wynn Macau, Ltd. | 38,400,000 | 94,200 | ||||||
Johnson Controls, Inc. | 2,772,325 | 83,558 | ||||||
OPAP SA1 | 11,509,432 | 61,195 | ||||||
William Hill PLC | 13,067,600 | 54,478 | ||||||
Modern Times Group MTG AB, Class B | 1,223,000 | 49,260 | ||||||
Nordstrom, Inc. | 1,000,000 | 47,370 | ||||||
Aristocrat Leisure Ltd. | 8,517,734 | 24,311 | ||||||
D.R. Horton, Inc. | 1,400,000 | 23,240 | ||||||
Kesa Electricals PLC2 | 26,593,098 | 20,083 | ||||||
Stella International Holdings Ltd. | 6,227,000 | 15,837 | ||||||
Dixons Retail PLC1 | 23,103,600 | 5,071 | ||||||
8,448,069 | ||||||||
INDUSTRIALS — 12.49% | ||||||||
ASSA ABLOY AB, Class B | 22,535,000 | 583,500 | ||||||
AB Volvo, Class B | 41,589,080 | 466,872 | ||||||
United Parcel Service, Inc., Class B | 5,635,000 | 422,287 | ||||||
Union Pacific Corp. | 3,770,700 | 420,056 | ||||||
Schneider Electric SA | 7,425,754 | 395,466 | ||||||
Jardine Matheson Holdings Ltd. | 7,978,000 | 386,135 | ||||||
KONE Oyj, Class B | 6,020,000 | 335,936 | ||||||
Atlas Copco AB, Class A | 10,865,000 | 218,811 | ||||||
Atlas Copco AB, Class B | 6,161,000 | 110,507 | ||||||
VINCI SA | 7,335,500 | 293,017 | ||||||
Lockheed Martin Corp. | 3,305,000 | 273,654 | ||||||
CSX Corp. | 11,068,865 | 231,229 | ||||||
Komatsu Ltd. | 9,500,000 | 227,680 | ||||||
United Technologies Corp. | 2,950,000 | 218,624 | ||||||
Hutchison Port Holdings Trust3 | 240,182,000 | 171,730 | ||||||
Hutchison Port Holdings Trust | 53,700,000 | 38,395 | ||||||
PACCAR Inc | 5,000,000 | 187,850 | ||||||
Emerson Electric Co. | 3,960,000 | 185,209 | ||||||
Qantas Airways Ltd.1,2 | 125,158,600 | 181,656 | ||||||
Singapore Technologies Engineering Ltd | 76,260,000 | 175,174 | ||||||
Capita PLC | 17,495,000 | 166,633 | ||||||
General Dynamics Corp. | 2,435,000 | 155,864 | ||||||
ComfortDelGro Corp. Ltd.2 | 135,100,000 | 154,118 | ||||||
General Electric Co. | 8,000,000 | 152,720 | ||||||
Ryanair Holdings PLC (ADR)1 | 4,900,000 | 150,430 | ||||||
Legrand SA | 4,933,124 | 148,409 | ||||||
SGS SA | 81,707 | 147,289 | ||||||
Bureau Veritas SA | 1,596,369 | 137,384 | ||||||
Danaher Corp. | 2,500,000 | 129,925 | ||||||
Brambles Ltd. | 19,966,803 | 129,535 | ||||||
Kühne + Nagel International AG | 1,174,050 | 124,736 | ||||||
Waste Management, Inc. | 3,800,000 | 123,272 | ||||||
Siemens AG | 1,387,000 | 114,066 | ||||||
Masco Corp. | 8,193,354 | 103,810 | ||||||
Southwest Airlines Co. | 11,233,300 | 101,437 | ||||||
Eaton Corp. | 2,000,000 | 85,320 | ||||||
3M Co. | 1,000,000 | 84,410 | ||||||
Republic Services, Inc. | 3,000,000 | 79,080 | ||||||
W.W. Grainger, Inc. | 400,000 | 77,460 | ||||||
United Continental Holdings, Inc.1 | 3,000,000 | 75,510 | ||||||
Geberit AG | 323,000 | 62,515 | ||||||
Norfolk Southern Corp. | 712,000 | �� | 46,650 | |||||
BAE Systems PLC | 8,383,616 | 35,248 | ||||||
Contax Participações SA, ordinary nominative | 152,400 | 2,002 | ||||||
8,111,611 | ||||||||
CONSUMER STAPLES — 11.81% | ||||||||
Philip Morris International Inc. | 19,361,300 | 1,636,223 | ||||||
Altria Group, Inc. | 36,697,300 | 1,181,286 | ||||||
Kraft Foods Inc., Class A | 18,615,500 | 712,415 | ||||||
Anheuser-Busch InBev NV | 8,158,534 | 552,319 | ||||||
Anheuser-Busch InBev NV, VVPR STRIPS1 | 3,247,475 | 4 | ||||||
Wesfarmers Ltd. | 17,071,520 | 485,578 | ||||||
Nestlé SA | 8,092,030 | 458,605 | ||||||
Lorillard, Inc. | 2,846,000 | 351,766 | ||||||
British American Tobacco PLC | 5,352,000 | 252,280 | ||||||
Danone SA | 3,651,535 | 234,290 | ||||||
Tingyi (Cayman Islands) Holding Corp. | 86,020,000 | 204,146 | ||||||
Diageo PLC | 8,470,500 | 201,957 | ||||||
Imperial Tobacco Group PLC | 4,990,000 | 180,114 | ||||||
Pernod Ricard SA | 1,665,800 | 162,721 | ||||||
Coca-Cola Co. | 2,169,400 | 162,119 | ||||||
SABMiller PLC | 3,580,000 | 132,144 | ||||||
Cia. de Bebidas das Américas — AmBev, preferred nominative (ADR) | 3,256,609 | 124,891 | ||||||
Colgate-Palmolive Co. | 1,175,000 | 115,503 | ||||||
Reynolds American Inc. | 2,725,000 | 114,014 | ||||||
ConAgra Foods, Inc. | 3,968,712 | 99,813 | ||||||
L’Oréal SA, bonus shares4 | 508,100 | 57,122 | ||||||
L’Oréal SA | 129,000 | 14,503 | ||||||
Wilmar International Ltd. | 24,035,000 | 68,266 | ||||||
Koninklijke Ahold NV | 3,400,597 | 39,950 | ||||||
Wm Morrison Supermarkets PLC | 8,750,000 | 37,247 | ||||||
Treasury Wine Estates Ltd. | 7,212,137 | 31,052 | ||||||
Ralcorp Holdings, Inc.1 | 486,558 | 30,921 | ||||||
China Resources Enterprise, Ltd. | 6,112,000 | 19,332 | ||||||
Molson Coors Brewing Co., Class B | 194,700 | 7,486 | ||||||
7,668,067 | ||||||||
FINANCIALS — 10.57% | ||||||||
Industrial and Commercial Bank of China Ltd., Class H | 676,073,470 | 411,138 | ||||||
HSBC Holdings PLC (Hong Kong) | 26,720,033 | 210,860 | ||||||
HSBC Holdings PLC (United Kingdom) | 20,476,231 | 160,788 | ||||||
Wells Fargo & Co. | 10,000,000 | 320,500 | ||||||
Société Générale1 | 15,917,580 | 316,094 | ||||||
China Construction Bank Corp., Class H | 440,805,735 | 305,549 | ||||||
AIA Group Ltd. | 90,414,996 | 294,722 | ||||||
Prudential PLC | 27,590,000 | 288,297 | ||||||
Citigroup Inc. | 10,794,000 | 286,149 | ||||||
Siam Commercial Bank PCL | 62,695,100 | 276,871 | ||||||
Bank of China Ltd., Class H | 716,815,200 | 276,141 | ||||||
Deutsche Börse AG | 5,549,600 | 264,293 | ||||||
Westfield Group | 26,688,000 | 236,311 | ||||||
JPMorgan Chase & Co. | 7,084,000 | 234,835 | ||||||
Credit Suisse Group AG | 10,451,050 | 198,079 | ||||||
Agricultural Bank of China, Class H | 467,211,000 | 189,014 | ||||||
Woori Finance Holdings Co., Ltd. | 20,047,350 | 186,843 | ||||||
Link Real Estate Investment Trust | 46,643,000 | 179,083 | ||||||
Deutsche Bank AG | 4,398,618 | 158,190 | ||||||
Itaú Unibanco Holding SA, preferred nominative (ADR) | 8,888,045 | 128,610 | ||||||
Itaú Unibanco Holding SA, preferred nominative | 1,771,000 | 25,729 | ||||||
UBS AG | 13,245,246 | 149,313 | ||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H | 19,902,000 | 146,543 | ||||||
BNP Paribas SA | 4,533,726 | 144,213 | ||||||
Toronto-Dominion Bank | 1,870,000 | 143,158 | ||||||
Sampo Oyj, Class A | 4,225,974 | 97,402 | ||||||
Banco Santander (Brasil) SA, units | 5,867,550 | 47,421 | ||||||
Banco Santander (Brasil) SA, units (ADR) | 5,867,550 | 46,647 | ||||||
Hang Seng Bank Ltd. | 7,000,000 | 90,459 | ||||||
Banco Santander, SA | 16,701,194 | 88,696 | ||||||
DNB ASA | 9,068,033 | 81,710 | ||||||
Samsung Card Co., Ltd. | 2,855,000 | 80,310 | ||||||
Nordea Bank AB | 10,482,000 | 77,484 | ||||||
Kimco Realty Corp. | 4,132,329 | 74,175 | ||||||
Willis Group Holdings PLC | 2,095,800 | 73,919 | ||||||
UniCredit SpA1 | 22,329,006 | 68,417 | ||||||
Weyerhaeuser Co.1 | 3,359,686 | 66,891 | ||||||
State Street Corp. | 1,500,000 | 61,815 | ||||||
Canadian Imperial Bank of Commerce (CIBC) | 878,258 | 61,283 | ||||||
KB Financial Group Inc. | 1,870,000 | 58,465 | ||||||
BB&T Corp. | 1,400,000 | 42,308 | ||||||
CapitaMall Trust, units | 29,601,000 | 41,693 | ||||||
ICICI Bank Ltd. | 2,245,000 | 31,312 | ||||||
Sun Hung Kai Properties Ltd. | 2,615,000 | 29,615 | ||||||
Bank of New York Mellon Corp. | 1,416,261 | 28,835 | ||||||
Old Republic International Corp. | 2,500,000 | 24,675 | ||||||
CapitaCommercial Trust | 18,093,000 | 17,270 | ||||||
Starwood Property Trust, Inc. | 750,000 | 15,030 | ||||||
AXA SA | 1,095,082 | 12,296 | ||||||
Ascendas Real Estate Investment Trust | 6,049,000 | 9,623 | ||||||
6,859,074 | ||||||||
HEALTH CARE — 9.10% | ||||||||
Novartis AG | 33,907,063 | 1,761,066 | ||||||
Bayer AG | 16,752,000 | 1,059,306 | ||||||
Amgen Inc. | 11,415,000 | 793,571 | ||||||
Abbott Laboratories | 9,875,000 | 610,176 | ||||||
Merck & Co., Inc. | 9,000,000 | 338,220 | ||||||
Roche Holding AG | 2,133,033 | 332,906 | ||||||
UCB SA | 3,510,000 | 164,555 | ||||||
Eli Lilly and Co. | 4,000,000 | 163,800 | ||||||
Gilead Sciences, Inc.1 | 2,786,000 | 139,161 | ||||||
GlaxoSmithKline PLC | 5,756,100 | 127,569 | ||||||
Edwards Lifesciences Corp.1 | 1,030,000 | 87,931 | ||||||
Grifols, SA, Class A1 | 3,538,000 | 80,255 | ||||||
Sonic Healthcare Ltd. | 4,875,000 | 57,935 | ||||||
Boston Scientific Corp.1 | 10,000,000 | 57,400 | ||||||
St. Jude Medical, Inc. | 1,000,000 | 38,420 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 22,838,000 | 35,282 | ||||||
Orion Oyj, Class B | 2,024,201 | 35,216 | ||||||
Stryker Corp. | 523,000 | 26,908 | ||||||
5,909,677 | ||||||||
TELECOMMUNICATION SERVICES — 8.86% | ||||||||
AT&T Inc. | 28,380,000 | 969,745 | ||||||
América Móvil, SAB de CV, Series L (ADR) | 28,772,798 | 677,887 | ||||||
Verizon Communications Inc. | 13,059,500 | 543,798 | ||||||
TeliaSonera AB | 72,730,000 | 443,318 | ||||||
Vodafone Group PLC | 160,657,500 | 428,357 | ||||||
Koninklijke KPN NV | 43,194,798 | 408,322 | ||||||
OJSC Mobile TeleSystems (ADR) | 20,592,280 | 342,655 | ||||||
Singapore Telecommunications Ltd. | 131,789,810 | 317,048 | ||||||
Turkcell Iletisim Hizmetleri AS1 | 67,063,000 | 292,743 | ||||||
CenturyLink, Inc. | 5,400,600 | 211,812 | ||||||
Sprint Nextel Corp., Series 11 | 62,896,000 | 161,643 | ||||||
Millicom International Cellular SA (SDR) | 1,840,000 | 157,418 | ||||||
SOFTBANK CORP. | 4,475,000 | 139,915 | ||||||
Türk Telekomünikasyon AS, Class D | 39,150,000 | 133,947 | ||||||
Advanced Info Service PCL | 17,251,800 | 97,063 | ||||||
France Télécom SA | 7,577,060 | 95,189 | ||||||
Philippine Long Distance Telephone Co. (ADR) | 877,673 | 47,105 | ||||||
Philippine Long Distance Telephone Co. | 693,790 | 37,317 | ||||||
MTN Group Ltd. | 5,102,000 | 80,802 | ||||||
Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, Class B | 54,204,000 | 44,978 | ||||||
Telefónica Czech Republic, AS | 2,300,000 | 42,026 | ||||||
Telefónica, SA | 2,831,007 | 31,284 | ||||||
KT Corp. (ADR) | 2,523,000 | 29,393 | ||||||
BCE Inc. | 512,500 | 20,453 | ||||||
5,754,218 | ||||||||
INFORMATION TECHNOLOGY — 8.22% | ||||||||
Microsoft Corp. | 32,804,019 | 957,549 | ||||||
Samsung Electronics Co. Ltd. | 596,600 | 612,144 | ||||||
HTC Corp. | 30,988,050 | 446,424 | ||||||
Oracle Corp. | 13,337,000 | 353,030 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) | 10,049,998 | 137,986 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 34,708,766 | 98,959 | ||||||
MediaTek Inc. | 26,327,889 | 232,865 | ||||||
Automatic Data Processing, Inc. | 4,040,000 | 210,686 | ||||||
Compal Electronics, Inc. | 193,262,106 | 199,426 | ||||||
HOYA Corp. | 9,103,000 | 195,280 | ||||||
Quanta Computer Inc. | 64,097,850 | 167,503 | ||||||
Accenture PLC, Class A | 2,605,000 | 148,746 | ||||||
Maxim Integrated Products, Inc. | 5,723,000 | 143,991 | ||||||
Intel Corp. | 5,000,000 | 129,200 | ||||||
Delta Electronics, Inc. | 45,150,873 | 125,856 | ||||||
Analog Devices, Inc. | 2,970,186 | 108,026 | ||||||
Amadeus IT Holding, SA, Class A | 3,415,000 | 62,559 | ||||||
Amadeus IT Holding, SA, Class A, non-registered shares | 2,400,000 | 43,965 | ||||||
Nokia Corp. | 34,971,000 | 91,845 | ||||||
Nokia Corp. (ADR) | 4,169,800 | 11,133 | ||||||
Canon, Inc. | 2,520,300 | 101,314 | ||||||
Telefonaktiebolaget LM Ericsson, Class B | 11,877,220 | 100,878 | ||||||
Apple Inc.1 | 158,000 | 91,281 | ||||||
QUALCOMM Inc. | 1,560,000 | 89,404 | ||||||
Redecard SA, ordinary nominative | 5,700,000 | 87,612 | ||||||
Yahoo! Inc.1 | 5,400,000 | 82,296 | ||||||
Siliconware Precision Industries Co., Ltd. | 66,700,000 | 72,626 | ||||||
NetEase, Inc. (ADR)1 | 1,099,270 | 68,551 | ||||||
Nintendo Co., Ltd. | 552,300 | 64,350 | ||||||
Google Inc., Class A1 | 70,000 | 40,660 | ||||||
Murata Manufacturing Co., Ltd. | 665,700 | 34,576 | ||||||
International Business Machines Corp. | 117,000 | 22,569 | ||||||
5,333,290 | ||||||||
ENERGY — 5.92% | ||||||||
BP PLC | 197,684,626 | 1,203,148 | ||||||
Royal Dutch Shell PLC, Class B | 19,090,746 | 611,550 | ||||||
Royal Dutch Shell PLC, Class A | 6,815,000 | 210,922 | ||||||
Royal Dutch Shell PLC, Class A (ADR) | 2,570,000 | 159,803 | ||||||
Royal Dutch Shell PLC, Class B (ADR) | 344,800 | 22,188 | ||||||
Eni SpA | 13,200,000 | 254,620 | ||||||
OAO Gazprom (ADR) | 27,399,000 | 240,152 | ||||||
EOG Resources, Inc. | 1,680,000 | 166,824 | ||||||
Chevron Corp. | 1,295,000 | 127,311 | ||||||
Occidental Petroleum Corp. | 1,443,000 | 114,387 | ||||||
Apache Corp. | 1,159,036 | 94,322 | ||||||
Devon Energy Corp. | 1,500,000 | 89,280 | ||||||
ConocoPhillips | 1,650,000 | 86,064 | ||||||
Canadian Natural Resources, Ltd. | 2,785,000 | 79,976 | ||||||
SeaDrill Ltd. | 2,400,000 | 79,164 | ||||||
Husky Energy Inc. | 3,456,000 | 77,997 | ||||||
Woodside Petroleum Ltd. | 2,215,164 | 69,416 | ||||||
China National Offshore Oil Corp. | 26,554,900 | 48,036 | ||||||
Schlumberger Ltd. | 700,000 | 44,275 | ||||||
Türkiye Petrol Rafinerileri AS | 1,390,181 | 25,869 | ||||||
Nexen Inc. | 1,135,000 | 17,740 | ||||||
EnCana Corp. | 880,000 | 17,503 | ||||||
3,840,547 | ||||||||
UTILITIES — 5.04% | ||||||||
National Grid PLC | 60,699,199 | 608,072 | ||||||
SSE PLC | 21,180,336 | 431,869 | ||||||
GDF SUEZ | 21,585,815 | 426,386 | ||||||
CEZ, a s | 7,629,000 | 269,626 | ||||||
PT Perusahaan Gas Negara (Persero) Tbk | 669,350,000 | 263,468 | ||||||
Dominion Resources, Inc. | 4,456,422 | 232,001 | ||||||
FirstEnergy Corp. | 4,495,000 | 210,321 | ||||||
Public Service Enterprise Group Inc. | 5,000,000 | 155,950 | ||||||
Exelon Corp. | 3,000,000 | 110,940 | ||||||
Power Assets Holdings Ltd. | 15,109,500 | 105,609 | ||||||
NTPC Ltd. | 29,619,270 | 77,427 | ||||||
E.ON AG | 4,200,000 | 76,757 | ||||||
Cia. Energética de Minas Gerais — CEMIG, preferred nominative (ADR) | 3,961,987 | 68,265 | ||||||
PG&E Corp. | 1,401,000 | 61,224 | ||||||
SUEZ Environnement Co. | 5,418,252 | 58,850 | ||||||
RWE AG | 1,500,000 | 54,780 | ||||||
LIGHT SA, ordinary nominative | 3,291,100 | 38,674 | ||||||
Power Grid Corp. of India Ltd. | 10,378,641 | 19,618 | ||||||
3,269,837 | ||||||||
MATERIALS — 4.80% | ||||||||
Dow Chemical Co. | 14,407,000 | 447,481 | ||||||
Syngenta AG | 963,500 | 308,487 | ||||||
BASF SE | 3,287,000 | 229,150 | ||||||
Amcor Ltd. | 30,684,007 | 223,273 | ||||||
Israel Chemicals Ltd. | 20,435,000 | 211,692 | ||||||
Akzo Nobel NV | 4,238,000 | 193,576 | ||||||
Praxair, Inc. | 1,763,120 | 187,314 | ||||||
Linde AG | 1,119,000 | 171,710 | ||||||
ArcelorMittal | 12,079,654 | 166,915 | ||||||
CRH PLC | 9,019,913 | 151,683 | ||||||
Koninklijke DSM NV | 3,054,000 | 145,292 | ||||||
Svenska Cellulosa AB SCA, Class B | 7,879,199 | 112,149 | ||||||
Formosa Plastics Corp. | 27,785,000 | 72,702 | ||||||
Holcim Ltd | 1,240,908 | 65,919 | ||||||
Sherwin-Williams Co. | 500,000 | 64,820 | ||||||
POSCO | 211,230 | 64,787 | ||||||
Ube Industries, Ltd. | 25,200,000 | 57,887 | ||||||
Rautaruukki Oyj | 6,689,570 | 45,742 | ||||||
K+S AG | 1,068,000 | 42,589 | ||||||
Nitto Denko Corp. | 1,041,400 | 42,262 | ||||||
PT Semen Gresik (Persero) Tbk | 31,188,000 | 36,331 | ||||||
voestalpine AG | 1,397,000 | 34,893 | ||||||
Alumina Ltd. | 20,000,000 | 19,190 | ||||||
Usinas Siderúrgicas de Minas Gerais SA — USIMINAS, Class A, preferred nominative | 4,125,500 | 17,387 | ||||||
3,113,231 | ||||||||
MISCELLANEOUS — 2.07% | ||||||||
Other common stocks in initial period of acquisition | 1,345,273 | |||||||
Total common stocks (cost: $55,428,422,000) | 59,652,894 | |||||||
Preferred stocks — 0.01% | Shares | |||||||
FINANCIALS — 0.01% | ||||||||
Citigroup Inc. 7.875% preferred | 366,000 | 9,729 | ||||||
Total preferred stocks (cost: $9,150,000) | 9,729 | |||||||
Rights — 0.00% | ||||||||
MISCELLANEOUS — 0.00% | ||||||||
Other rights in initial period of acquisition | 823 | |||||||
Total rights (cost: $1,025,000) | 823 | |||||||
Shares or | ||||||||
Convertible securities — 0.31% | principal amount | |||||||
CONSUMER DISCRETIONARY — 0.11% | ||||||||
General Motors Co., Series B, 4.75% convertible preferred 2013 | 1,558,603 | 57,232 | ||||||
Virgin Media Inc. 6.50% convertible notes 20162 | $ | 7,100,000 | 9,913 | |||||
TUI Travel PLC 6.00% convertible notes 2014 | £ | 1,800,000 | 2,636 | |||||
69,781 | ||||||||
INDUSTRIALS — 0.09% | ||||||||
United Continental Holdings, Inc. 6.00% convertible notes 2029 | $ | 7,575,000 | 22,649 | |||||
United Continental Holdings, Inc. 4.50% convertible debentures 2015 | $ | 4,700,000 | 7,015 | |||||
United Continental Holdings, Inc. 6.00% convertible preferred 2030 | 397,000 | 14,546 | ||||||
JetBlue Airways Corp., Series B, 6.75% convertible notes 2039 | $ | 3,925,000 | 5,181 | |||||
JetBlue Airways Corp., Series A, convertible notes 5.50% 2038 | $ | 3,250,000 | 4,176 | |||||
JetBlue Airways Corp., Series B, convertible notes 5.50% 2038 | $ | 3,240,000 | 4,370 | |||||
57,937 | ||||||||
TELECOMMUNICATION SERVICES — 0.04% | ||||||||
Clearwire Corp. 8.25% convertible notes 20403 | $ | 44,385,000 | 26,409 | |||||
CONSUMER STAPLES — 0.02% | ||||||||
Alliance One International, Inc. 5.50% convertible notes 2014 | $ | 11,000,000 | 9,955 | |||||
FINANCIALS — 0.01% | ||||||||
National Financial Partners Corp. 4.00% convertible notes 2017 | $ | 7,000,000 | 8,610 | |||||
MISCELLANEOUS — 0.04% | ||||||||
Other convertible securities in initial period of acquisition | 26,002 | |||||||
Total convertible securities (cost: $225,303,000) | 198,694 | |||||||
Principal amount | ||||||||
Bonds & notes — 2.05% | (000 | ) | ||||||
FINANCIALS — 0.70% | ||||||||
Prologis, Inc. 6.25% 2017 | $ | 4,620 | 5,199 | |||||
Prologis, Inc. 6.625% 2018 | 13,907 | 16,126 | ||||||
Prologis, Inc. 6.625% 2019 | 1,600 | 1,867 | ||||||
Prologis, Inc. 7.375% 2019 | 21,933 | 26,800 | ||||||
Prologis, Inc. 6.875% 2020 | 20,380 | 24,344 | ||||||
Mizuho Capital Investment (USD) 2 Ltd, junior subordinated 14.95% (undated)3,5 | 60,000 | 74,006 | ||||||
HBOS PLC 6.75% 20183 | 36,490 | 33,488 | ||||||
Lloyds Banking Group PLC, junior subordinated 6.657% preference shares (undated)3,5,6 | 30,300 | 18,028 | ||||||
Regions Financial Corp. 4.875% 2013 | 6,035 | 6,141 | ||||||
Regions Financial Corp. 7.75% 2014 | 24,300 | 26,487 | ||||||
Regions Financial Corp. 5.20% 2015 | 15,295 | 15,563 | ||||||
Regions Bank, junior subordinated 7.50% 2018 | 2,475 | 2,778 | ||||||
JPMorgan Chase & Co., Series I, junior subordinated 7.90% (undated)5 | 41,090 | 44,714 | ||||||
Westfield Group 5.40% 20123 | 530 | 537 | ||||||
Westfield Group 6.75% 20193 | 18,040 | 21,512 | ||||||
WEA Finance LLC 4.625% 20213 | 19,975 | 21,143 | ||||||
Developers Diversified Realty Corp. 5.50% 2015 | 3,744 | 3,959 | ||||||
Developers Diversified Realty Corp. 9.625% 2016 | 3,650 | 4,449 | ||||||
Developers Diversified Realty Corp. 7.50% 2017 | 10,210 | 11,740 | ||||||
Developers Diversified Realty Corp. 7.875% 2020 | 8,075 | 9,690 | ||||||
Simon Property Group, LP 5.25% 2016 | 3,540 | 4,000 | ||||||
Simon Property Group, LP 6.10% 2016 | 860 | 993 | ||||||
Simon Property Group, LP 5.875% 2017 | 165 | 193 | ||||||
Simon Property Group, LP 6.125% 2018 | 890 | 1,061 | ||||||
Simon Property Group, LP 10.35% 2019 | 11,635 | 16,395 | ||||||
ERP Operating LP 5.125% 2016 | 2,886 | 3,191 | ||||||
ERP Operating LP 5.75% 2017 | 2,055 | 2,381 | ||||||
ERP Operating LP 4.625% 2021 | 13,215 | 14,445 | ||||||
HVB Funding Trust I, junior subordinated 8.741% 20313 | 9,650 | 7,527 | ||||||
HVB Funding Trust III, junior subordinated 9.00% 20313 | 3,171 | 2,505 | ||||||
Discover Financial Services 6.45% 2017 | 3,057 | 3,484 | ||||||
Discover Financial Services 10.25% 2019 | 4,334 | 5,907 | ||||||
Standard Chartered Bank 6.40% 20173 | 8,451 | 9,261 | ||||||
AXA SA 8.60% 2030 | 8,000 | 8,702 | ||||||
Barclays Bank PLC, Series RCI, junior subordinated 14.00% (undated)5 | £ | 4,520 | 7,906 | |||||
Capital One Capital III 7.686% 20365 | $ | 165 | 167 | |||||
456,689 | ||||||||
BONDS & NOTES OF U.S. GOVERNMENT — 0.54% | ||||||||
U.S. Treasury 1.875% 2014 | 301,000 | 309,410 | ||||||
U.S. Treasury 4.375% 2041 | 14,855 | 20,263 | ||||||
U.S. Treasury 4.75% 2041 | 14,560 | 21,005 | ||||||
350,678 | ||||||||
TELECOMMUNICATION SERVICES — 0.39% | ||||||||
Nextel Communications, Inc., Series F, 5.95% 2014 | 31,525 | 31,525 | ||||||
Nextel Communications, Inc., Series D, 7.375% 2015 | 40,000 | 39,300 | ||||||
Sprint Nextel Corp. 9.125% 20173 | 35,000 | 34,825 | ||||||
Sprint Nextel Corp. 11.50% 20213 | 55,550 | 58,744 | ||||||
MTS International Funding Ltd. 8.625% 20203 | 29,865 | 33,187 | ||||||
MTS International Funding Ltd. 8.625% 2020 | 12,430 | 13,813 | ||||||
Clearwire Communications and Clearwire Finance, Inc., Series A, 12.00% 20153 | 2,500 | 2,194 | ||||||
Clearwire Communications and Clearwire Finance, Inc. 12.00% 20173 | 22,500 | 17,438 | ||||||
América Móvil, SAB de CV 8.46% 2036 | MXN286,400 | 19,474 | ||||||
250,500 | ||||||||
BONDS & NOTES OF GOVERNMENTS OUTSIDE THE U.S. — 0.16% | ||||||||
United Mexican States Government, Series M30, 10.00% 2036 | 552,900 | 49,625 | ||||||
German Government, Series 8, 4.75% 2040 | € | 14,545 | 29,832 | |||||
Polish Government, Series 1021, 5.75% 2021 | PLN85,665 | 24,737 | ||||||
104,194 | ||||||||
ENERGY — 0.14% | ||||||||
Gazprom OJSC 8.146% 2018 | $ | 4,415 | 5,200 | |||||
Gazprom OJSC, Series 9, 6.51% 2022 | 30,710 | 33,314 | ||||||
Gazprom OJSC, Series 2, 8.625% 2034 | 1,015 | 1,280 | ||||||
Gazprom OJSC 7.288% 2037 | 38,175 | 42,622 | ||||||
Gazprom OJSC 7.288% 20373 | 365 | 408 | ||||||
BP Capital Markets PLC 5.25% 2013 | 3,335 | 3,538 | ||||||
BP Capital Markets PLC 3.875% 2015 | 7,320 | 7,829 | ||||||
Petroplus Finance Ltd. 6.75% 20143 | 375 | 52 | ||||||
94,243 | ||||||||
MATERIALS — 0.05% | ||||||||
CRH America, Inc. 6.00% 2016 | 1,260 | 1,388 | ||||||
CRH America, Inc. 8.125% 2018 | 15,540 | 18,623 | ||||||
ArcelorMittal 9.85% 2019 | 8,000 | 9,489 | ||||||
29,500 | ||||||||
CONSUMER STAPLES — 0.04% | ||||||||
Hypermarcas SA 6.50% 20213 | 10,970 | 10,202 | ||||||
Hypermarcas SA 6.50% 2021 | 7,000 | 6,510 | ||||||
British American Tobacco International Finance PLC 8.125% 20133 | 9,000 | 9,881 | ||||||
26,593 | ||||||||
CONSUMER DISCRETIONARY — 0.03% | ||||||||
Marks and Spencer Group PLC 6.25% 20173 | 100 | 112 | ||||||
Marks and Spencer Group PLC 7.125% 20373 | 15,550 | 16,606 | ||||||
16,718 | ||||||||
Total bonds & notes (cost: $1,213,268,000) | 1,329,115 | |||||||
Short-term securities — 5.38% | ||||||||
Freddie Mac 0.07%–0.19% due 6/4/2012–4/26/2013 | 1,111,125 | 1,110,624 | ||||||
Fannie Mae 0.065%–0.21% due 6/1/2012–1/7/2013 | 591,295 | 591,087 | ||||||
Federal Home Loan Bank 0.07%–0.25% due 6/19/2012–4/8/2013 | 513,150 | 512,967 | ||||||
U.S. Treasury Bills 0.10%–0.185% due 6/28/2012–4/4/2013 | 415,800 | 415,598 | ||||||
Québec (Province of) 0.15%–0.18% due 7/12–9/6/20123 | 141,000 | 140,930 | ||||||
Federal Farm Credit Banks 0.18%–0.21% due 12/28/2012–4/9/2013 | 80,800 | 80,686 | ||||||
Straight-A Funding LLC 0.15%–0.18% due 7/19–7/25/20123 | 80,089 | 80,069 | ||||||
Nestlé Finance International Ltd. 0.16%–0.19% due 6/11–7/19/2012 | 79,300 | 79,292 | ||||||
Thunder Bay Funding, LLC 0.18% due 6/26–7/16/20123 | 57,019 | 57,004 | ||||||
Old Line Funding, LLC 0.24% due 7/24/20123 | 17,300 | 17,297 | ||||||
International Bank for Reconstruction and Development 0.08% due 6/7/2012 | 65,000 | 64,999 | ||||||
Siemens Capital Co. LLC 0.13%–0.15% due 6/20–6/25/20123 | 60,000 | 59,994 | ||||||
Jupiter Securitization Co., LLC 0.25% due 6/7/20123 | 50,000 | 49,997 | ||||||
Variable Funding Capital Company LLC 0.15% due 7/13/20123 | 50,000 | 49,991 | ||||||
British Columbia (Province of) 0.15% due 8/8/2012 | 50,000 | 49,987 | ||||||
Svenska Handelsbanken Inc. 0.24% due 8/1/20123 | 50,000 | 49,977 | ||||||
BASF AG 0.16%–0.18% due 6/29–8/9/20123 | 41,000 | 40,992 | ||||||
American Honda Finance Corp. 0.17% due 7/5/2012 | 25,000 | 24,995 | ||||||
Province of Ontario 0.15% due 7/19/2012 | 16,000 | 15,993 | ||||||
Total short-term securities (cost: $3,492,405,000) | 3,492,479 | |||||||
Total investment securities (cost: $60,369,573,000) | 64,683,734 | |||||||
Other assets less liabilities | 234,650 | |||||||
Net assets | $ | 64,918,384 |
As permitted by U.S. Securities and Exchange Commission (“SEC”) regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.
1Security did not produce income during the last 12 months. |
2Represents an affiliated company as defined under the Investment Company Act of 1940. |
3Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $1,116,046,000, which represented 1.72% of the net assets of the fund. |
4Valued under fair value procedures adopted by authority of the board of directors. The total value of all such securities was $57,122,000, which represented .09% of the net assets of the fund. |
5Coupon rate may change periodically. |
6Scheduled interest and/or principal payment was not received. |
Key to abbreviations and symbols
ADR = American Depositary Receipts
FDR = Fiduciary Depositary Receipts
SDR = Swedish Depositary Receipts
€ = Euros
£ = British pounds
MXN = Mexican pesos
PLN = Polish zloty
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-4225 or visit the American Funds website at americanfunds.com.
MFGEFP-933-0712O-S32890
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 8 – Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
ITEM 10 – Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors since the Registrant last submitted a proxy statement to its shareholders. The procedures are as follows. The Registrant has a nominating and governance committee comprised solely of persons who are not considered ‘‘interested persons’’ of the Registrant within the meaning of the Investment Company Act of 1940, as amended. The committee periodically reviews such issues as the board’s composition, responsibilities, committees, compensation and other relevant issues, and recommends any appropriate changes to the full board of directors. While the committee normally is able to identify from its own resources an ample number of qualified candidates, it will consider shareholder suggestions of persons to be considered as nominees to fill future vacancies on the board. Such suggestions must be sent in writing to the nominating and governance committee of the Registrant, c/o the Registrant’s Secretary, and must be accompanied by complete biographical and occupational data on the prospective nominee, along with a written consent of the prospective nominee for consideration of his or her name by the nominating and governance committee.
ITEM 11 – Controls and Procedures
(a) | The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule. |
(b) | There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
ITEM 12 – Exhibits
(a)(1) | Not applicable for filing of semi-annual reports to shareholders. |
(a)(2) | The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CAPITAL WORLD GROWTH AND INCOME FUND, INC. | |
By /s/ Michael J. Thawley | |
Michael J. Thawley, Vice Chairman and Principal Executive Officer | |
Date: July 31, 2012 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By /s/ Michael J. Thawley |
Michael J. Thawley, Vice Chairman and Principal Executive Officer |
Date: July 31, 2012 |
By /s/ Neal F. Wellons |
Neal F. Wellons, Treasurer and Principal Financial Officer |
Date: July 31, 2012 |