American Funds Capital World Growth and Income Fund (CWGIX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

Certified Shareholder Report of

Registered Management Investment Companies

Investment Company Act File Number: 811-07338

Capital World Growth and Income Fund, Inc.

(Exact Name of Registrant as specified in charter)

333 South Hope Street

Los Angeles, California 90071

(Address of principal executive offices)

Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: November 30

Date of reporting period: May 31, 2006

Vincent P. Corti

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(name and address of agent for service)

Copies to:

Kathryn A. Sanders

O’Melveny & Myers LLP

400 South Hope Street

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 - Reports to Stockholders

[Logo - American Funds^®]

The right choice for the long term^®

Capital World Growth and Income Fund

[photo of a woman walking through terraced rice fields]

Semi-annual report for the six months ended May 31, 2006

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

This fund is one of the 29 American Funds. The organization ranks among the nation’s three largest mutual fund families. For nearly 75 years, Capital Research and Management Company,^SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

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

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended June 30, 2006 (the most recent calendar quarter):

	1 year	5 years	10 years
Class A shares
Reflecting 5.75% maximum sales charge	+14.52%	+11.04%	+12.91%

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 24-27 for details.

The fund’s 30-day yield for Class A shares as of June 30, 2006, reflecting the 5.75% maximum sales charge and calculated in accordance with the Securities and Exchange Commission formula, was 2.35%, which reflects a fee waiver (2.32% without the fee waiver).

Results for other share classes can be found on page 6. Please see the back cover for important information about other share classes.

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

Fellow shareholders:

[photo of a woman walking through terraced rice fields]

Global stock markets logged solid gains during most of the fund’s fiscal first-half. But in the final weeks of this reporting period, growing concerns about interest rates and inflation sent stock prices lower, reducing gains worldwide.

Despite the recent downturn, Capital World Growth and Income Fund recorded a total return of 10.2% for the six months ended May 31, 2006. Fund results exceeded its benchmark, the unmanaged MSCI World Index,^SM which returned 8.7%, and that of its peer group reference, the Lipper Global Funds Index, which posted a 9.2% return. Comparative results for longer time periods are shown in the table below.

During the six-month period, shareholders received dividends totaling 45 cents a share and a capital gains distribution (in December 2005) of approximately $1.44 a share. The fund’s dividends provided an income return of 1.2% for the period, equivalent to 2.4% annualized.

[Begin Sidebar]

Results at a glance

(as of May 31, 2006, with all distributions reinvested)

			Average annual total returns
								Lifetime
	1 year			5 years		10 years		(since 3/26/93	)
Capital World Growth
and Income Fund	+23.4	%		+11.8	%	+13.5	%	+14.2	%
MSCI World Index*	+18.6			+5.5		+7.4		+9.3
Lipper Global Funds Index†	+20.3			+5.7		+7.5		+9.2

*MSCI World Index is a market capitalization index that is designed to measure global developed-market equity results. The index consists of 23 developed-country indexes, including the United States. This index is unmanaged and includes reinvested dividends and/or distributions, but does not reflect sales charges, commissions, expenses or taxes.

^†Lipper Global Funds Index is an equally weighted index of funds that invest at least 25% of their portfolios in securities traded outside the United States and may own U.S. securities as well. The results of the underlying funds in the index include the reinvestment of dividends and capital gain distributions, as well as brokerage commissions paid by the funds for portfolio transactions, but do not reflect sales charges or taxes.

[End Sidebar]

A look at global markets

The current fiscal year began December 1, 2005, amid a strengthening global expansion. Rising demand in economies throughout Asia, Europe and the Americas was driving commodity prices higher and attracting broad investor interest. As a result, stock markets around the world rose as if synchronized, many of them approaching levels not seen since 2000.

Then, in early May, investor enthusiasm waned amid mounting evidence of rising inflation. This raised expectations for higher interest rates, not just in the United States — a key driver of the global expansion — but in other countries as well. Investors worried that a sustained rise in rates could stifle economic growth. Stock markets traded lower, and few countries were spared as the selloff extended into June. Stock indexes in developing countries suffered the largest declines, though they had also experienced the largest gains over the previous 12 months.

In the United States, the Federal Reserve raised the federal funds rate a quarter point, to 5.00%, in May, its 16th consecutive rate increase since June 2004. Stock prices retreated as members of the Fed opined that additional increases may be necessary. For the reporting period, U.S. stocks returned 2.5%.* The U.S. stock market is home to 19.6% of the fund’s assets.

*Country returns are based on MSCI indexes for the six months ended May 31, 2006, assume reinvestment of gross dividends, and are expressed in U.S. dollar terms, except where noted.

In the euro zone (the 12 European countries that share a single currency), the European Central Bank raised its key lending rate twice, a quarter point each, during the reporting period, and again in early June, bringing it to 2.75%. Although economic growth throughout Europe has been less robust than in the United States, stock market gains have been substantially higher. For fund shareholders, returns from euro zone and other European investments were magnified by currency trends. All major European currencies strengthened against the U.S. dollar, producing double-digit market gains when translated back into dollars, despite the effects of the May selloff. European investments account for 38.8% of the fund’s assets.

In Japan, the central bank set the stage for higher interest rates following years of ultra-low rates that helped nurture its stagnant economy back to growth. Signs of sustained growth helped lift Japanese stocks to multiyear highs this spring, prior to the May retreat. As in Europe, currency trends boosted returns for fund shareholders. In U.S. dollar terms, Japanese stocks rose 11.9% for the period.

[Begin Sidebar]

Where the fund’s assets were invested

Percent of net assets by region as of May 31, 2006

[begin pie chart]

The Americas	24.2	%
Asia/Pacific	24.9	%
Bonds, cash & equivalents	10.2	%
Europe	38.8	%
Other	1.9	%

[end pie chart]

	Capital World Growth and Income Fund		MSCI World Index*
The Americas	24.2	%	52.9	%
United States	19.6		49.4
Canada	1.8		3.5
Brazil	1.7		—
Mexico	1.1		—
Europe	38.8	%	31.9	%
United Kingdom	9.0		11.4
France	8.2		4.6
Germany	5.3		3.3
Netherlands	3.9		1.6
Switzerland	2.9		3.3
Italy	2.1		1.8
Spain	2.0		1.8
Belgium	1.2		.6
Finland	.9		.7
Norway	.7		.4
Austria	.7		.2
Sweden	.6		1.1
Denmark	.5		.3
Greece	.5		.3
Other Europe	.3		.5
Asia/Pacific	24.9	%	15.2	%
Japan	6.9		11.6
Taiwan	5.0		—
Korea	4.6		—
Australia	2.8		2.4
Hong Kong	1.9		.7
India	1.2		—
Singapore	1.0		.4
Other Asia/Pacific	1.5		.1
Other	1.9	%	—
Bonds, cash & equivalents	10.2	%	—

*The MSCI World Index is weighted by market capitalization.

[End Sidebar]

Returns based on stock selection

While Capital World Growth and Income Fund invests primarily in stocks based in developed countries, it has broad exposure to a variety of markets, as shown in the table on page 3. Moreover, many of the established companies that dominate the fund’s portfolio operate in and rely on markets well beyond the borders of the countries in which they are domiciled. Yet it is the relative strengths of the fund’s individual holdings — not simply the markets they inhabit — that helped produce good results. For the most part, the fund focuses on value-oriented stocks that also pay attractive dividends.

During the reporting period, approximately 75% of the fund’s portfolio holdings registered positive returns. The gains were widespread, including investments in virtually every industry sector shown in the summary investment portfolio beginning on page 7.

Among the fund’s 10 largest holdings (tabled below), only Altria posted a share price decline for the period, albeit a small one at -0.6%. Six of these holdings logged double-digit gains: Diageo (+13.9%), E.ON (+21.3%), Koninklijke KPN (+16.0%), Fortis (+22.8%), Veolia Environnement (+29.7%) and Vivendi (+23.8%). The diversity of this group echoes the broader diversity of the portfolio.

[Begin Sidebar]

10 Largest equity holdings

(as of May 31, 2006)

Company	Country	Percent of net assets
Royal Dutch Shell	United Kingdom	2.1%
Altria Group	United States	1.4
Roche Holding	Switzerland	1.3
Diageo	United Kingdom	1.2
TOTAL	France	1.1
E.ON	Germany	1.0
Koninklijke KPN	The Netherlands	1.0
Fortis	Belgium	.9
Veolia Environnement	France	.9
Vivendi	France	.9

[End Sidebar]

Looking ahead

For the balance of the fiscal year, uncertainty about the global expansion could bring more volatility to stock markets around the world. The outlook for equities will likely be tethered to the evolving outlook for inflation and interest rates, especially in the largest global economies. Despite recent market corrections, we remain positive in our outlook for global growth; though the pace of the expansion may slow somewhat in the months ahead, many corporations will continue to grow earnings and pay attractive dividends. Identifying those companies is the ongoing goal of our global research effort.

The correction that began in May has proved unnerving for some investors, particularly those whose focus is short term. However, the portfolio counselors of Capital World Growth and Income Fund typically take a long-term view on investment decisions and, consequently, find a silver lining in the recent selloff: Stocks that were overvalued on a fundamental basis have become more reasonably priced of late, opening up a broader array of investment opportunities for the fund.

Over its 13-year lifetime, Capital World Growth and Income Fund has weathered several market corrections and still rewarded its shareholders with above-average returns. Professional investors understand that market corrections may be healthy, even necessary, for the long-term growth of capital and income. We encourage you to maintain a patient perspective on your own investments and never lose sight of your financial goals.

We look forward to reporting to you at fiscal year-end.

Cordially,

/s/ Gina H. Despres

Gina H. Despres

Vice Chairman of the Board

/s/ Stephen E. Bepler

Stephen E. Bepler

President

July 10, 2006

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

Other share class results                              unaudited

Class B, Class C, Class F and Class 529

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

Average annual total returns for periods ended June 30, 2006
(the most recent calendar quarter):
	1 year		5 years		Life of class
Class B shares— first sold 3/15/00
Reflecting applicable contingent deferred sales
charge (CDSC), maximum of 5%, payable only
if shares are sold within six years of purchase	+15.57	%	+11.24	%	+9.06	%
Not reflecting CDSC	+20.57	%	+11.50	%	+9.06	%
Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase	+19.51	%	+11.42	%	+11.28	%
Not reflecting CDSC	+20.51	%	+11.42	%	+11.28	%
Class F shares*— first sold 3/15/01
Not reflecting annual asset-based fee charged
by sponsoring firm	+21.46	%	+12.28	%	+12.15	%
Class 529-A shares†— first sold 2/15/02
Reflecting 5.75% maximum sales charge	+14.45	%	—		+14.17	%
Not reflecting maximum sales charge	+21.45	%	—		+15.73	%
Class 529-B shares†— first sold 2/21/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase	+15.42	%	—		+14.89	%
Not reflecting CDSC	+20.42	%	—		+15.18	%
Class 529-C shares†— first sold 2/22/02
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase	+19.44	%	—		+15.18	%
Not reflecting CDSC	+20.44	%	—		+15.18	%
Class 529-E shares*†— first sold 3/4/02	+21.02	%	—		+14.65	%
Class 529-F shares*†— first sold 9/17/02
Not reflecting annual asset-based fee charged by
sponsoring firm	+21.70	%	—		+21.52	%

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 24-27 for details.

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

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

Summary investment portfolio May 31, 2006                       unaudited

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

Industry sector diversification (percent of net assets)

[begin pie chart]

Financials                     21.88%

Consumer discretionary 11.09%

Consumer staples           8.09%

Materials                        7.98%

Energy                           7.41%

Bonds & notes                0.57%

Convertible securities       0.35%

Other industries              33.04%

Short-term securities &

 other assets less liabilities 9.59%

[end pie chart]

Summary investment portfolio, May 31, 2006							unaudited
					Market		Percent
					value		of net
Common stocks - 89.49%		Shares			(000	)	assets
Financials - 21.88%
Fortis (Netherlands) (1)		16,414,100		$	599,148
Fortis (Belgium) (1)		300,000			10,970		.93	%
HSBC Holdings PLC (United Kingdom) (1)		25,382,269			441,821
HSBC Holdings PLC (Hong Kong) (1)		5,810,000			101,564		.83
UniCredito Italiano SpA (Italy) (1)		54,600,000			416,354
UniCredito Italiano SpA (Germany) (1)		13,500,000			103,056		.79
Lloyds TSB Group PLC (1)		54,820,000			517,275		.79
Cathay Financial Holding Co., Ltd. (1)		233,824,000			514,449		.78
Société Générale (1)		3,309,750			511,315		.78
BNP Paribas (1)		5,382,270			502,857		.77
Banco Santander Central Hispano, SA (1)		32,860,604			475,804		.72
Citigroup Inc.		9,384,500			462,656		.70
Sun Hung Kai Properties Ltd. (1)		43,445,000			449,640		.68
Kookmin Bank (1)		5,410,000			440,132		.67
ING Groep NV (1)		10,546,834			413,860		.63
Banco Itaú Holding Financeira SA, preferred nominative		13,614,400			355,951		.54
Shinhan Financial Group Co., Ltd. (1)		7,336,300			340,596		.52
UBS AG (1)		2,830,811			321,245		.49
Washington Mutual, Inc.		6,885,000			316,090		.48
Mizuho Financial Group, Inc. (1)		38,452			311,546		.47
Other securities					6,776,237		10.31
					14,382,566		21.88
Consumer discretionary - 11.09%
Vivendi SA (1)		16,172,400			581,711		.89
Hyundai Motor Co. (1)		5,430,000			420,824		.64
Toyota Motor Corp. (1)		6,009,300			318,476		.49
Continental AG (1)		2,907,050			318,419		.48
Target Corp.		6,304,000			308,392		.47
Other securities					5,338,870		8.12
					7,286,692		11.09
Consumer staples - 8.09%								��
Altria Group, Inc.		12,290,500			889,218		1.35
Diageo PLC (1)		49,931,000			820,804		1.25
Tesco PLC (1)		77,505,563			465,481		.71
Nestlé SA (1)		1,445,200			432,543		.66
Other securities					2,707,563		4.12
					5,315,609		8.09
Materials - 7.98%
China Steel Corp. (1)		527,276,000			501,971		.77
Bayer AG (1)		10,908,700			491,019		.75
Barrick Gold Corp., USD denominated		14,000,000			428,540
Barrick Gold Corp.		1,931,540			58,941		.74
Gold Fields Ltd. (1)		20,000,000			441,249		.67
Other securities					3,326,310		5.05
					5,248,030		7.98
Energy - 7.41%
Royal Dutch Shell PLC, Class B (1)		20,949,312			722,154
Royal Dutch Shell PLC, Class A (ADR)		5,220,000			346,138
Royal Dutch Shell PLC, Class A (1)		7,850,000			259,610
Royal Dutch Shell PLC, Class B (ADR)		1,142,148			79,048		2.14
TOTAL SA (1)		8,818,000			574,478
TOTAL SA (ADR)		2,250,000			146,722		1.10
Other securities					2,741,050		4.17
					4,869,200		7.41
Telecommunication services - 6.67%
Koninklijke KPN NV (1)		54,969,620			632,145		.96
AT&T Inc.		21,061,824			548,871		.84
Telekom Austria AG (1)		18,952,750			423,780		.65
Chunghwa Telecom Co., Ltd. (ADR)		9,979,600			204,482
Chunghwa Telecom Co., Ltd. (1)		98,046,000			183,817		.59
Other securities					2,391,174		3.63
					4,384,269		6.67
Information technology - 6.26%
Microsoft Corp.		20,244,000			458,527		.70
Nokia Corp. (1)		13,498,750			289,223
Nokia Corp. (ADR)		7,250,300			155,664		.68
Taiwan Semiconductor Manufacturing Co. Ltd. (1)		117,774,665			220,995
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		19,202,984			181,852		.61
Other securities					2,806,083		4.27
					4,112,344		6.26
Health care - 6.25%
Roche Holding AG (1)		5,341,066			833,547		1.27
AstraZeneca PLC (Sweden) (1)		7,079,800			375,069
AstraZeneca PLC (United Kingdom) (1)		3,317,000			175,575		.84
Novo Nordisk A/S, Class B (1)		5,893,100			365,129		.55
Other securities					2,357,886		3.59
					4,107,206		6.25
Utilities - 5.47%
E.ON AG (1)		5,952,714			687,514		1.05
Veolia Environnement (1)		10,550,000			586,315		.89
Electricité de France SA (1) (2)		9,461,000			516,286		.79
Other securities					1,802,161		2.74
					3,592,276		5.47
Industrials - 5.04%
General Electric Co.		14,790,000			506,705		.77
United Parcel Service, Inc., Class B		4,591,700			369,862		.56
Tyco International Ltd.		13,560,000			367,612		.56
Other securities					2,070,629		3.15
					3,314,808		5.04
Miscellaneous - 3.35%
Other common stocks in initial period of acquisition					2,199,385		3.35
Total common stocks (cost: $47,746,308,000)					58,812,385		89.49
Convertible securities - 0.35%
Other - 0.35%
Other securities					232,291		.35
Total convertible securities (cost: $281,996,000)					232,291		.35
Bonds & notes - 0.57%
Other - 0.57%
Other securities					374,186		.57
Total bonds & notes (cost: $378,172,000)					374,186		.57
		Principal
		amount
Short-term securities - 9.48%		(000	)
Barton Capital LLC 4.81%-5.01% due 6/5-7/21/2006 (3)	$	191,950			191,474
Société Générale North America Inc. 5.05% due 8/17/2006		43,500			43,026		.36
Abbey National North America LLC 4.82%-5.00% due 6/8-7/21/2006		200,000			199,036		.30
Shell International Finance BV 4.84%-4.85% due 6/9-6/30/2006		108,050			107,712		.16
Total Capital SA 4.87%-5.04% due 7/11-8/3/2006 (3)		104,600			103,832		.16
Other securities					5,588,423		8.50
Total short-term securities (cost: $6,233,293,000)					6,233,503		9.48
Total investment securities (cost: $54,639,769,000)					65,652,365		99.89
Other assets less liabilities					69,083		.11
Net assets				$	65,721,448		100.00	%

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

"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio.

Investments in affiliates:

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares of that company.  Further details on these holdings and related transactions during the six months ended May 31, 2006, appear below.

Company	Beginning shares	Purchases	Sales	Ending shares		Dividend income			Market  value of affiliate at 5/31/06
						(000	)		(000	)
Mediceo Paltac Holdings Co., Ltd. (4)	14,930,500	-	12,930,500	2,000,000	$	920		$	-
Asahi Diamond Industrial Co., Ltd. (4)	3,950,000		3,950,000	-		164			-
					$	1,084		$	-

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) Valued under fair value procedures adopted by authority of the board of directors. At May 31, 2006, 267 of the fund's securities, including those in "Other securities" and "Miscellaneous" in the summary investment portfolio (with aggregate value of $41,090,210,000), were fair valued under procedures that took into account significant price changes that occurred between the close of trading in those securities and and the close of regular trading on the New York Stock Exchange.

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

(3) Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities, including those in "Other securities" in the summary investment portfolio, was $2,891,416,000, which represented 4.40% of the net assets of the fund.

(4) Unaffiliated issuer at 5/31/2006

ADR = American Depositary Receipts

See Notes to Financial Statements

Financial statements
Statement of assets and liabilities			unaudited
at May 31, 2006	(dollars and shares in thousands, except per-share amounts)
Assets:
Investment securities at market (cost:$54,639,769)		$	65,652,365
Cash denominated in non-U.S. currencies
(cost: $6,439)			6,608
Cash			1,799
Receivables for:
Sales of investments	115,524
Sales of fund's shares	191,110
Dividends and interest	168,792
Other assets	435		475,861
			66,136,633
Liabilities:
Payables for:
Purchases of investments	302,213
Repurchases of fund's shares	47,057
Investment advisory services	19,498
Services provided by affiliates	40,090
Deferred directors' compensation	1,157
Other fees and expenses	5,170		415,185
Net assets at May 31, 2006		$	65,721,448
Net assets consist of:
Capital paid in on shares of capital stock		$	51,670,151
Undistributed net investment income			565,824
Undistributed net realized gain			2,469,502
Net unrealized appreciation			11,015,971
Net assets at May 31, 2006		$	65,721,448

Total authorized capital stock - 4,000,000 shares, $.01 par value (1,698,044 total shares outstanding)
		Net assets	Shares outstanding		Net asset value per share(*	)
Class A	$	50,225,758	1,296,131	$	38.75
Class B		2,843,481	73,789		38.54
Class C		5,259,735	136,899		38.42
Class F		3,257,811	84,183		38.70
Class 529-A		837,590	21,650		38.69
Class 529-B		111,695	2,898		38.55
Class 529-C		232,513	6,033		38.54
Class 529-E		42,217	1,093		38.63
Class 529-F		17,208	445		38.71
Class R-1		63,803	1,657		38.51
Class R-2		613,944	15,974		38.43
Class R-3		872,115	22,607		38.58
Class R-4		615,233	15,899		38.70
Class R-5		728,345	18,786		38.77
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Class A and 529-A, for which the maximum offering prices per share were $41.11 and $41.05, respectively.
See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended May 31, 2006		(dollars in thousands)
Investment income:
Income:
Dividends (net of non-U.S. taxes of $84,993; also includes $1,084 from affiliates)	$	871,864
Interest (net of non-U.S. taxes of $302)		160,686		$	1,032,550
Fees and expenses(*):
Investment advisory services		114,735
Distribution services		98,957
Transfer agent services		21,713
Administrative services		9,326
Reports to shareholders		2,382
Registration statement and prospectus		3,322
Postage, stationery and supplies		2,206
Directors' compensation		416
Auditing and legal		50
Custodian		7,315
State and local taxes		550
Other		163
Total fees and expenses before reimbursements/waivers		261,135
Less reimbursement/waiver of fees and expenses:
Investment advisory services		11,474
Administrative services		373
Total fees and expenses after reimbursements/waivers					249,288
Net investment income					783,262
Net realized gain and unrealized
appreciation on investments and non-U.S. currency:
Net realized gain (loss) on:
Investments (including $81,485 net gain from affiliates)		2,485,664
Non-U.S. currency transactions		(12,697	)		2,472,967
Net unrealized appreciation:
Investments		2,058,151
Non-U.S. currency translations		8,215			2,066,366
Net realized gain and unrealized appreciation
on investments and non-U.S. currency					4,539,333
Net increase in net assets resulting from operations				$	5,322,595
(*) 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,			Year ended November 30,
		2006*			2005
Operations:
Net investment income	$	783,262		$	933,122
Net realized gain on investments and non-U.S. currency transactions		2,472,967			2,076,338
Net unrealized appreciation on investments and non-U.S. currency translations		2,066,366			2,701,924
Net increase in net assets resulting from operations		5,322,595			5,711,384
Dividends and distributions paid to shareholders:
Dividends from net investment income and non-U.S. currency gains		(628,676	)		(831,717	)
Distributions from net realized gain on investments		(2,018,538	)		(736,061	)
Total dividends and distributions paid to shareholders		(2,647,214	)		(1,567,778	)
Capital share transactions		11,866,479			16,167,034
Total increase in net assets		14,541,860			20,310,640
Net assets:
Beginning of period		51,179,588			30,868,948
End of period (including undistributed net investment
income: $565,824 and $411,238, respectively)	$	65,721,448		$	51,179,588
*Unaudited.
See Notes to Financial Statements

Notes to financial statements     unaudited

1.    Organization and significant accounting policies

Organization - Capital World Growth and Income Fund, Inc. (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks long-term growth of capital while providing current income. It invests on a global basis in a diversified portfolio consisting primarily of common stocks and other equity securities.

The fund offers 14 share classes consisting of four retail share classes, five CollegeAmerica® savings plan share classes and five retirement plan share classes. The CollegeAmerica savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) can be utilized to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights.The fund’s share classes are described below:

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

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

Significant accounting policies - The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of the significant accounting policies followed by the fund:

Security valuation - Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Forward currency contracts are valued at the mean of representative quoted bid and asked prices. Securities and other assets for which representative market quotations are not readily available are fair valued as determined in good faith under procedures adopted by authority of the fund's board of directors. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; and changes in overall market conditions. If events occur that materially affect the value of securities (particularly non-U.S. securities) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange, the securities are fair valued.

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

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

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

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

Forward currency contracts - The fund may enter into forward currency contracts, which represent agreements to exchange non-U.S. currencies on specific future dates at predetermined rates. The fund enters into these contracts to manage its exposure to changes in non-U.S. exchange rates arising from investments denominated in non-U.S. currencies. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in non-U.S. exchange rates. Due to these risks, the fund could incur losses up to the entire contract amount, which may exceed the net unrealized value shown on the accompanying financial statements. On a daily basis, the fund values forward currency contracts based on the applicable exchange rates and records unrealized gains or losses. The fund records realized gains or losses at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency.

2.    Non-U.S. investments

Investment risk - The risks of investing in securities of non-U.S.issuers may include, but are not limited to, investment and repatriation restrictions; revaluation of currencies; adverse political, social and economic developments; government involvement in the private sector; limited and less reliable investor information; lack of liquidity; certain local tax law considerations; and limited regulation of the securities markets.

Taxation - Dividend and interest income is recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities. For the six months ended May 31, 2006, non-U.S. taxes paid on realized gains were $4,745,000. As of May 31, 2006, non-U.S. taxes provided on unrealized gains were $3,708,000.

3. Federal income taxation and distributions

The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made.

Distributions - Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as non-U.S. currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; unrealized appreciation of certain investments in non-U.S. securities; deferred expenses; and non-U.S. taxes on capital gains.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, 2005, the fund had tax basis undistributed ordinary income of $463,826,000 and undistributed long-term capital gain of $2,017,391,000.

As of May 31, 2006, the tax basis unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):

Gross unrealized appreciation on investment securities	11,756,817
Gross unrealized depreciation on investment securities	(798,206	)
Net unrealized appreciation on investment securities	10,958,611
Cost of investment securities	54,693,754

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

	Six months ended May 31, 2006						Year ended November 30, 2005
		Ordinary income		Long-term capital gains		Total distributions paid		Ordinary income		Long-term capital gains		Total distributions paid
Share class
Class A	$	511,555	$	1,566,893	$	2,078,448	$	695,208	$	597,794	$	1,293,002
Class B		18,754		85,724		104,478		24,114		30,413		54,527
Class C		32,407		151,301		183,708		36,850		44,527		81,377
Class F		31,411		96,470		127,881		37,021		29,845		66,866
Class 529-A		7,712		23,462		31,174		8,386		6,540		14,926
Class 529-B		663		3,250		3,913		771		1,066		1,837
Class 529-C		1,354		6,522		7,876		1,463		1,924		3,387
Class 529-E		337		1,202		1,539		372		348		720
Class 529-F		165		472		637		173		136		309
Class R-1		376		1,761		2,137		378		417		795
Class R-2		3,616		17,522		21,138		4,127		4,873		9,000
Class R-3		6,933		25,037		31,970		7,637		6,848		14,485
Class R-4		5,686		17,707		23,393		5,766		4,494		10,260
Class R-5		7,707		21,215		28,922		9,451		6,836		16,287
Total	$	628,676	$	2,018,538	$	2,647,214	$	831,717	$	736,061	$	1,567,778

4. Fees and transactions with related parties

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

Investment advisory services - The Investment Advisory and Service Agreement with CRMC providesfor monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.600% on the first $500 million of daily net assets and decreasing to 0.360% on such assets in excess of $55 billion. CRMC is currently waiving 10% of investment advisory services fees. During the six months ended May 31, 2006, total investment advisory services fees waived by CRMC were $11,474,000. As a result, the fee shown on the accompanying financial statements of $114,735,000, which was equivalent to an annualized rate of 0.382%, was reduced to $103,261,000, or 0.343% of average daily net assets.

Class-specific fees and expenses - Expenses that are specific to individual share classes are accrued directly to the respective share class. The principal class-specific fees and expenses are described below:

Distribution services - The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the board of directors approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted on the following page. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Class A and 529-A, the board of directors has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of May 31, 2006, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A.

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

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

Administrative services - The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Class A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. For the six months ended May 31, 2006, the total administrative services fees paid by CRMC were $2,000 and $371,000 for Class R-1 and R-2, respectively. Administrative services fees are presented gross of any payments made by CRMC. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the CollegeAmerica plan.Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described on the previous page for the six months ended May 31, 2006, were as follows (dollars in thousands):

Share class	Distribution services	Transfer agent services	Administrative services
			CRMC administrative services	Transfer agent services	Commonwealth of Virginia administrative services
Class A	$52,080	$20,370	Not applicable	Not applicable	Not applicable
Class B	12,831	1,343	Not applicable	Not applicable	Not applicable
Class C	23,237	Included in administrative services	$3,239	$466	Not applicable
Class F	3,649		1,200	202	Not applicable
Class 529-A	630		294	47	$368
Class 529-B	496		40	21	50
Class 529-C	1,014		81	33	102
Class 529-E	93		15	3	19
Class 529-F	-		6	1	7
Class R-1	274		37	15	Not applicable
Class R-2	2,031		403	1,094	Not applicable
Class R-3	1,937		570	269	Not applicable
Class R-4	685		398	14	Not applicable
Class R-5	Not applicable		325	7	Not applicable
Total	$98,957	$21,713	$6,608	$2,172	$546

Deferred directors’ compensation - Since the adoption of the deferred compensation plan in 1993, directors who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation of $416,000, shown on the accompanying financial statements, includes $248,000 in current fees (either paid in cash or deferred) and a net increase of $168,000 in the value of the deferred amounts.

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

5. Capital share transactions

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

Share class		Sales*			Reinvestments of dividends and distributions			Repurchases*					Net increase
		Amount	Shares		Amount	Shares		Amount		Shares			Amount	Shares
Six months ended May 31, 2006
Class A	$	8,277,346	215,478	$	1,998,393	54,743	$	(1,971,289	)	(51,196	)	$	8,304,450	219,025
Class B		567,125	14,821		100,787	2,779		(94,028	)	(2,453	)		573,884	15,147
Class C		1,337,066	35,064		175,922	4,864		(232,787	)	(6,088	)		1,280,201	33,840
Class F		793,280	20,632		115,662	3,172		(223,044	)	(5,800	)		685,898	18,004
Class 529-A		204,936	5,359		31,170	855		(15,650	)	(408	)		220,456	5,806
Class 529-B		24,231	635		3,913	108		(2,007	)	(53	)		26,137	690
Class 529-C		59,822	1,566		7,876	217		(5,978	)	(156	)		61,720	1,627
Class 529-E		10,332	271		1,539	42		(893	)	(23	)		10,978	290
Class 529-F		5,028	131		637	18		(798	)	(21	)		4,867	128
Class R-1		20,763	543		2,091	58		(5,618	)	(147	)		17,236	454
Class R-2		190,586	4,997		21,120	584		(57,622	)	(1,506	)		154,084	4,075
Class R-3		263,372	6,882		31,950	880		(84,335	)	(2,196	)		210,987	5,566
Class R-4		199,592	5,207		23,364	641		(66,599	)	(1,737	)		156,357	4,111
Class R-5		168,563	4,384		27,364	749		(36,703	)	(954	)		159,224	4,179
Total net increase
(decrease)	$	12,122,042	315,970	$	2,541,788	69,710	$	(2,797,351	)	(72,738	)	$	11,866,479	312,942
Year ended November 30, 2005
Class A	$	12,618,355	365,651	$	1,233,618	37,169	$	(2,402,093	)	(69,476	)	$	11,449,880	333,344
Class B		771,268	22,485		52,649	1,601		(105,101	)	(3,053	)		718,816	21,033
Class C		1,825,841	53,327		77,734	2,368		(252,790	)	(7,366	)		1,650,785	48,329
Class F		1,192,571	34,617		60,518	1,823		(244,123	)	(7,086	)		1,008,966	29,354
Class 529-A		269,162	7,812		14,925	449		(16,248	)	(470	)		267,839	7,791
Class 529-B		30,143	878		1,836	56		(1,444	)	(42	)		30,535	892
Class 529-C		71,464	2,080		3,387	103		(5,354	)	(155	)		69,497	2,028
Class 529-E		12,937	376		720	22		(845	)	(24	)		12,812	374
Class 529-F		5,383	156		309	10		(538	)	(16	)		5,154	150
Class R-1		29,691	862		785	24		(6,536	)	(189	)		23,940	697
Class R-2		245,528	7,163		8,993	273		(52,505	)	(1,525	)		202,016	5,911
Class R-3		387,808	11,277		14,477	437		(107,696	)	(3,135	)		294,589	8,579
Class R-4		276,049	7,971		10,259	308		(65,161	)	(1,888	)		221,147	6,391
Class R-5		257,382	7,460		14,806	445		(61,130	)	(1,783	)		211,058	6,122
Total net increase
(decrease)	$	17,993,582	522,115	$	1,495,016	45,088	$	(3,321,564	)	(96,208	)	$	16,167,034	470,995
* Includes exchanges between share classes of the fund.

6. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities, of $17,134,245,000 and $8,999,478,000, respectively, during the six months ended May 31, 2006.

Financial highlights	(1)
						Income (loss) from investment operations(2)									Dividends and distributions
					Net asset value, beginning of period		Net investment income		Net gains (losses) on securities (both realized and unrealized	)		Total from investment operations			Dvidends (from net investment income	)		Distributions (from capital gains	)		Total dividends and distributions			Net asset value, end of period	Total return(3	)		Net assets, end of period (in millions	)			Ratio of expenses to average net assets before reimbursements/ waivers				Ratio of expenses to average net assets after reimbursements/ waivers		(4	)	Ratio of net income to average net assets
Class A:
Six months ended 5/31/2006		(5	)	$	36.99	$	.52	$	3.13		$	3.65		$	(.45	)	$	(1.44	)	$	(1.89	)	$	38.75	10.19	%	$	50,226				.75	%	(6	)	.71	%	(6	)	2.71	%	(6	)
Year ended 11/30/2005					33.80		.84		3.95			4.79			(.80	)		(.80	)		(1.60	)		36.99	14.78			39,841				.76				.73				2.41
Year ended 11/30/2004					28.62		.70		5.50			6.20			(.73	)		(.29	)		(1.02	)		33.80	22.21			25,137				.77				.77				2.28
Year ended 11/30/2003					22.80		.65		5.73			6.38			(.56	)		-			(.56	)		28.62	28.52			14,703				.81				.81				2.70
Year ended 11/30/2002					24.29		.52		(1.53	)		(1.01	)		(.48	)		-			(.48	)		22.80	(4.22	)		10,016				.82				.82				2.22
Year ended 11/30/2001					28.29		.53		(.90	)		(.37	)		(.50	)		(3.13	)		(3.63	)		24.29	(1.81	)		10,346				.78				.78				2.05
Class B:
Six months ended 5/31/2006		(5	)		36.79		.37		3.12			3.49			(.30	)		(1.44	)		(1.74	)		38.54	9.77			2,843				1.54		(6	)	1.50		(6	)	1.94		(6	)
Year ended 11/30/2005					33.63		.56		3.93			4.49			(.53	)		(.80	)		(1.33	)		36.79	13.91			2,158				1.55				1.52				1.62
Year ended 11/30/2004					28.50		.46		5.47			5.93			(.51	)		(.29	)		(.80	)		33.63	21.25			1,265				1.55				1.55				1.52
Year ended 11/30/2003					22.72		.45		5.72			6.17			(.39	)		-			(.39	)		28.50	27.52			537				1.58				1.58				1.85
Year ended 11/30/2002					24.21		.27		(1.45	)		(1.18	)		(.31	)		-			(.31	)		22.72	(4.93	)		219				1.59				1.59				1.47
Year ended 11/30/2001					28.21		.31		(.87	)		(.56	)		(.31	)		(3.13	)		(3.44	)		24.21	(2.57	)		126				1.56				1.56				1.21
Class C:
Six months ended 5/31/2006		(5	)		36.69		.36		3.10			3.46			(.29	)		(1.44	)		(1.73	)		38.42	9.74			5,260				1.60		(6	)	1.56		(6	)	1.91		(6	)
Year ended 11/30/2005					33.54		.54		3.93			4.47			(.52	)		(.80	)		(1.32	)		36.69	13.83			3,781				1.61				1.57				1.56
Year ended 11/30/2004					28.43		.45		5.45			5.90			(.50	)		(.29	)		(.79	)		33.54	21.17			1,836				1.62				1.61				1.46
Year ended 11/30/2003					22.68		.42		5.71			6.13			(.38	)		-			(.38	)		28.43	27.40			615				1.65				1.65				1.71
Year ended 11/30/2002					24.18		.20		(1.40	)		(1.20	)		(.30	)		-			(.30	)		22.68	(4.95	)		179				1.65				1.65				1.43
Period from 3/15/2001 to 11/30/2001					25.35		.12		(1.15	)		(1.03	)		(.14	)		-			(.14	)		24.18	(4.08	)		50				1.78		(6	)	1.78		(6	)	.73		(6	)
Class F:
Six months ended 5/31/2006		(5	)		36.94		.52		3.12			3.64			(.44	)		(1.44	)		(1.88	)		38.70	10.19			3,258				.78		(6	)	.74		(6	)	2.71		(6	)
Year ended 11/30/2005					33.75		.81		3.95			4.76			(.77	)		(.80	)		(1.57	)		36.94	14.72			2,445				.82				.78				2.35
Year ended 11/30/2004					28.59		.68		5.48			6.16			(.71	)		(.29	)		(1.00	)		33.75	22.09			1,243				.86				.85				2.21
Year ended 11/30/2003					22.78		.61		5.75			6.36			(.55	)		-			(.55	)		28.59	28.43			470				.89				.89				2.49
Year ended 11/30/2002					24.27		.31		(1.34	)		(1.03	)		(.46	)		-			(.46	)		22.78	(4.29	)		147				.91				.91				2.17
Period from 3/15/2001 to 11/30/2001					25.40		.27		(1.15	)		(.88	)		(.25	)		-			(.25	)		24.27	(3.45	)		47				.92		(6	)	.92		(6	)	1.55		(6	)
Class 529-A:
Six months ended 5/31/2006		(5	)		36.93		.52		3.12			3.64			(.44	)		(1.44	)		(1.88	)		38.69	10.19			838				.80		(6	)	.76		(6	)	2.71		(6	)
Year ended 11/30/2005					33.75		.81		3.94			4.75			(.77	)		(.80	)		(1.57	)		36.93	14.68			585				.83				.80				2.33
Year ended 11/30/2004					28.59		.68		5.48			6.16			(.71	)		(.29	)		(1.00	)		33.75	22.08			272				.86				.85				2.21
Year ended 11/30/2003					22.78		.63		5.73			6.36			(.55	)		-			(.55	)		28.59	28.43			93				.87				.87				2.55
Period from 2/15/2002 to 11/30/2002					24.29		.36		(1.47	)		(1.11	)		(.40	)		-			(.40	)		22.78	(4.61	)		28				1.03		(6	)	1.03		(6	)	2.08		(6	)
Class 529-B:
Six months ended 5/31/2006		(5	)		36.80		.35		3.12			3.47			(.28	)		(1.44	)		(1.72	)		38.55	9.70			112				1.66		(6	)	1.62		(6	)	1.84		(6	)
Year ended 11/30/2005					33.64		.51		3.93			4.44			(.48	)		(.80	)		(1.28	)		36.80	13.71			81				1.70				1.67				1.46
Year ended 11/30/2004					28.51		.40		5.48			5.88			(.46	)		(.29	)		(.75	)		33.64	21.02			44				1.75				1.74				1.32
Year ended 11/30/2003					22.74		.40		5.73			6.13			(.36	)		-			(.36	)		28.51	27.28			18				1.78				1.78				1.64
Period from 2/21/2002 to 11/30/2002					23.96		.23		(1.13	)		(.90	)		(.32	)		-			(.32	)		22.74	(3.82	)		5				1.79		(6	)	1.79		(6	)	1.31		(6	)
Class 529-C:
Six months ended 5/31/2006		(5	)		36.80		.36		3.10			3.46			(.28	)		(1.44	)		(1.72	)		38.54	9.70			232				1.64		(6	)	1.61		(6	)	1.87		(6	)
Year ended 11/30/2005					33.63		.51		3.94			4.45			(.48	)		(.80	)		(1.28	)		36.80	13.73			162				1.69				1.65				1.47
Year ended 11/30/2004					28.50		.41		5.47			5.88			(.46	)		(.29	)		(.75	)		33.63	21.04			80				1.74				1.73				1.34
Year ended 11/30/2003					22.74		.41		5.71			6.12			(.36	)		-			(.36	)		28.50	27.25			29				1.76				1.76				1.66
Period from 2/22/2002 to 11/30/2002					23.98		.23		(1.15	)		(.92	)		(.32	)		-			(.32	)		22.74	(3.90	)		8				1.77		(6	)	1.77		(6	)	1.33		(6	)
Class 529-E:
Six months ended 5/31/2006		(5	)		36.89		.45		3.11			3.56			(.38	)		(1.44	)		(1.82	)		38.63	9.96			42				1.13		(6	)	1.09		(6	)	2.37		(6	)
Year ended 11/30/2005					33.71		.69		3.94			4.63			(.65	)		(.80	)		(1.45	)		36.89	14.31			30				1.17				1.13				1.99
Year ended 11/30/2004					28.56		.57		5.48			6.05			(.61	)		(.29	)		(.90	)		33.71	21.67			14				1.21				1.20				1.86
Year ended 11/30/2003					22.77		.54		5.73			6.27			(.48	)		-			(.48	)		28.56	27.97			5				1.23				1.23				2.17
Period from 3/4/2002 to 11/30/2002					25.12		.31		(2.28	)		(1.97	)		(.38	)		-			(.38	)		22.77	(7.88	)		1				1.23		(6	)	1.23		(6	)	1.85		(6	)
Class 529-F:
Six months ended 5/31/2006		(5	)		36.95		.55		3.12			3.67			(.47	)		(1.44	)		(1.91	)		38.71	10.27			17				.63		(6	)	.59		(6	)	2.89		(6	)
Year ended 11/30/2005					33.75		.83		3.94			4.77			(.77	)		(.80	)		(1.57	)		36.95	14.74			12				.76				.73				2.40
Year ended 11/30/2004					28.59		.65		5.49			6.14			(.69	)		(.29	)		(.98	)		33.75	21.98			6				.96				.95				2.12
Year ended 11/30/2003					22.80		.61		5.72			6.33			(.54	)		-			(.54	)		28.59	28.31			1				.98				.98				2.48
Period from 9/17/2002 to 11/30/2002					21.79		.08		1.07			1.15			(.14	)		-			(.14	)		22.80	5.33			-		(7	)	.20				.20				.39
Class R-1:
Six months ended 5/31/2006		(5	)	$	36.78	$	.37	$	3.09		$	3.46		$	(.29	)	$	(1.44	)	$	(1.73	)	$	38.51	9.71	%	$	64				1.62	%	(6	)	1.57	%	(6	)	1.92	%	(6	)
Year ended 11/30/2005					33.63		.53		3.93			4.46			(.51	)		(.80	)		(1.31	)		36.78	13.78			44				1.63				1.58				1.54
Year ended 11/30/2004					28.50		.44		5.48			5.92			(.50	)		(.29	)		(.79	)		33.63	21.18			17				1.67				1.64				1.44
Year ended 11/30/2003					22.75		.38		5.77			6.15			(.40	)		-			(.40	)		28.50	27.43			5				1.78				1.66				1.48
Period from 6/7/2002 to 11/30/2002					25.08		.14		(2.37	)		(2.23	)		(.10	)		-			(.10	)		22.75	(8.85	)		-		(7	)	1.41				.80				.66
Class R-2:
Six months ended 5/31/2006		(5	)		36.70		.36		3.09			3.45			(.28	)		(1.44	)		(1.72	)		38.43	9.71			614				1.73		(6	)	1.56		(6	)	1.91		(6	)
Year ended 11/30/2005					33.55		.54		3.93			4.47			(.52	)		(.80	)		(1.32	)		36.70	13.83			437				1.79				1.57				1.56
Year ended 11/30/2004					28.45		.45		5.45			5.90			(.51	)		(.29	)		(.80	)		33.55	21.15			201				1.93				1.60				1.47
Year ended 11/30/2003					22.73		.43		5.71			6.14			(.42	)		-			(.42	)		28.45	27.44			57				2.23				1.62				1.72
Period from 6/7/2002 to 11/30/2002					25.08		.13		(2.35	)		(2.22	)		(.13	)		-			(.13	)		22.73	(8.80	)		5				.93				.79				.61
Class R-3:
Six months ended 5/31/2006		(5	)		36.83		.45		3.12			3.57			(.38	)		(1.44	)		(1.82	)		38.58	9.96			872				1.15		(6	)	1.11		(6	)	2.36		(6	)
Year ended 11/30/2005					33.67		.69		3.94			4.63			(.67	)		(.80	)		(1.47	)		36.83	14.34			628				1.15				1.12				2.00
Year ended 11/30/2004					28.53		.57		5.47			6.04			(.61	)		(.29	)		(.90	)		33.67	21.67			285				1.20				1.19				1.87
Year ended 11/30/2003					22.77		.50		5.75			6.25			(.49	)		-			(.49	)		28.53	27.90			76				1.29				1.24				1.98
Period from 6/6/2002 to 11/30/2002					25.42		.17		(2.52	)		(2.35	)		(.30	)		-			(.30	)		22.77	(9.25	)		5				.69				.60				.80
Class R-4:
Six months ended 5/31/2006		(5	)		36.94		.51		3.12			3.63			(.43	)		(1.44	)		(1.87	)		38.70	10.16			615				.83		(6	)	.79		(6	)	2.68		(6	)
Year ended 11/30/2005					33.76		.79		3.96			4.75			(.77	)		(.80	)		(1.57	)		36.94	14.68			435				.84				.81				2.29
Year ended 11/30/2004					28.60		.68		5.49			6.17			(.72	)		(.29	)		(1.01	)		33.76	22.10			182				.85				.84				2.22
Year ended 11/30/2003					22.81		.55		5.80			6.35			(.56	)		-			(.56	)		28.60	28.36			25				.90				.89				2.18
Period from 6/27/2002 to 11/30/2002					23.78		.20		(1.02	)		(.82	)		(.15	)		-			(.15	)		22.81	(3.42	)		2				.46				.38				.92
Class R-5:
Six months ended 5/31/2006		(5	)		37.01		.57		3.12			3.69			(.49	)		(1.44	)		(1.93	)		38.77	10.30			728				.53		(6	)	.49		(6	)	2.97		(6	)
Year ended 11/30/2005					33.81		.91		3.96			4.87			(.87	)		(.80	)		(1.67	)		37.01	15.06			541				.54				.50				2.63
Year ended 11/30/2004					28.63		.76		5.51			6.27			(.80	)		(.29	)		(1.09	)		33.81	22.49			287				.54				.54				2.48
Year ended 11/30/2003					22.81		.70		5.74			6.44			(.62	)		-			(.62	)		28.63	28.82			110				.56				.56				2.88
Period from 5/15/2002 to 11/30/2002					26.11		.30		(3.27	)		(2.97	)		(.33	)		-			(.33	)		22.81	(11.37	)		53				.56		(6	)	.56		(6	)	2.48		(6	)

	Six months ended May 31,		Year ended November 30
	2006(5	)	2005		2004		2003		2002		2001
Portfolio turnover rate for all classes of shares	17	%	26	%	21	%	27	%	32	%	45	%

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

(2) Based on average shares outstanding.

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

(4) The ratios in this column reflect the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown,

CRMC reduced fees for investment advisory services for all share classes. In addition, during the start-up period for the retirement plan

share classes (except Class R-5), CRMC agreed to pay a portion of the fees related to transfer agent services.

(5) Unaudited.

(6) Annualized.

(7) Amount less than $1 million.

See Notes to Financial Statements

Expense example unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2005, through May 31, 2006).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and Class 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds. There are some account fees that are charged to certain types of accounts, such as Individual Retirement Accounts and CollegeAmerica accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually) that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F and Class 529-F shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would also be lower by the amount of these fees.

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

	Beginning account value 12/1/2005		Ending account value 5/31/2006		Expenses paid during period*		Annualized expense ratio
Class A -- actual return	$	1,000.00	$	1,101.93	$	3.72		.71	%
Class A -- assumed 5% return		1,000.00		1,021.39		3.58		.71
Class B -- actual return		1,000.00		1,097.66		7.84		1.50
Class B -- assumed 5% return		1,000.00		1,017.45		7.54		1.50
Class C -- actual return		1,000.00		1,097.35		8.16		1.56
Class C -- assumed 5% return		1,000.00		1,017.15		7.85		1.56
Class F -- actual return		1,000.00		1,101.94		3.88		.74
Class F -- assumed 5% return		1,000.00		1,021.24		3.73		.74
Class 529-A -- actual return		1,000.00		1,101.85		3.98		.76
Class 529-A -- assumed 5% return		1,000.00		1,021.14		3.83		.76
Class 529-B -- actual return		1,000.00		1,096.98		8.47		1.62
Class 529-B -- assumed 5% return		1,000.00		1,016.85		8.15		1.62
Class 529-C -- actual return		1,000.00		1,097.04		8.42		1.61
Class 529-C -- assumed 5% return		1,000.00		1,016.90		8.10		1.61
Class 529-E -- actual return		1,000.00		1,099.60		5.71		1.09
Class 529-E -- assumed 5% return		1,000.00		1,019.50		5.49		1.09
Class 529-F -- actual return		1,000.00		1,102.69		3.09		.59
Class 529-F -- assumed 5% return		1,000.00		1,021.99		2.97		.59
Class R-1 -- actual return		1,000.00		1,097.11		8.21		1.57
Class R-1 -- assumed 5% return		1,000.00		1,017.10		7.90		1.57
Class R-2 -- actual return		1,000.00		1,097.06		8.16		1.56
Class R-2 -- assumed 5% return		1,000.00		1,017.15		7.85		1.56
Class R-3 -- actual return		1,000.00		1,099.65		5.81		1.11
Class R-3 -- assumed 5% return		1,000.00		1,019.40		5.59		1.11
Class R-4 -- actual return		1,000.00		1,101.63		4.14		.79
Class R-4 -- assumed 5% return		1,000.00		1,020.99		3.98		.79
Class R-5 -- actual return		1,000.00		1,103.05		2.57		.49
Class R-5 -- assumed 5% return		1,000.00		1,022.49		2.47		.49
* Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (182), and divided by 365 (to reflect the one-half year period).

Offices of the fund and of the

investment adviser

Capital Research and

Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

135 South State College

Boulevard

Brea, CA 92821-5823

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Transfer agent for shareholder accounts

American Funds Service Company

(Please write to the address

nearest you.)

P.O. Box 25065

Santa Ana, CA 92799-5065

P.O. Box 659522

San Antonio, TX 78265-9522

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Custodian of assets

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

Independent registered public

accounting firm

PricewaterhouseCoopers LLP

350 South Grand Avenue

Los Angeles, CA 90071-2889

There are several ways to invest in Capital World Growth and Income Fund. Class A shares are subject to a 5.75% maximum up-front sales charge that declines for accounts (and aggregated investments) of $25,000 or more and is eliminated for purchases of $1 million or more. Other share classes, which are generally not available for certain employer-sponsored retirement plans, have no up-front sales charges but are subject to additional annual expenses and fees. Annualized expenses for Class B shares were 0.79 percentage points higher than for Class A shares; Class B shares convert to Class A shares after eight years of ownership. If redeemed within six years, Class B shares may also be subject to a contingent deferred sales charge (“CDSC”) of up to 5% that declines over time. Class C shares were subject to annualized expenses 0.85 percentage points higher than those for Class A shares and a 1% CDSC if redeemed within the first year after purchase. Class C shares convert to Class F shares after 10 years. Class F shares, which are available only through certain fee-based programs offered by broker-dealer firms and registered investment advisers, had higher annualized expenses (by 0.03 percentage points) than did Class A shares, and an annual asset-based fee charged by the sponsoring firm. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class.

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

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

A complete May 31, 2006, portfolio of Capital World Growth and Income Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

Capital World Growth and Income Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. (800/SEC-0330). Additionally, the list of portfolio holdings also is available by calling AFS.

This report is for the information of shareholders of Capital World Growth and Income Fund, but it may also be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after September 30, 2006, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

The Capital Group Companies

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

Lit. No. MFGESR-933-0706P

Litho in USA WG/LPT/6269-S7470

Printed on recycled paper

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

[Logo - American Funds®]

Capital World Growth and Income Fund^SM

Investment portfolio

May 31, 2006

unaudited

Common stocks — 89.49%	Shares			Market value (000)
FINANCIALS — 21.88%
Fortis (Netherlands)1		16,414,100		$	599,148
Fortis (Belgium)1		300,000			10,970
HSBC Holdings PLC (United Kingdom)1		25,382,269			441,821
HSBC Holdings PLC (Hong Kong)1		5,810,000			101,564
UniCredito Italiano SpA (Italy)1		54,600,000			416,354
UniCredito Italiano SpA (Germany)1		13,500,000			103,056
Lloyds TSB Group PLC1		54,820,000			517,275
Cathay Financial Holding Co., Ltd.1		233,824,000			514,449
Société Générale1		3,309,750			511,315
BNP Paribas1		5,382,270			502,857
Banco Santander Central Hispano, SA1		32,860,604			475,804
Citigroup Inc.		9,384,500			462,656
Sun Hung Kai Properties Ltd.1		43,445,000			449,640
Kookmin Bank1		5,410,000			440,132
ING Groep NV1		10,546,834			413,860
Banco Itaú Holding Financeira SA, preferred nominative		13,614,400			355,951
Shinhan Financial Group Co., Ltd.1		7,336,300			340,596
UBS AG1		2,830,811			321,245
Washington Mutual, Inc.		6,885,000			316,090
Mizuho Financial Group, Inc.1		38,452			311,546
ABN AMRO Holding NV1		9,637,744			267,245
J.P. Morgan Chase & Co.		6,150,000			262,236
Swire Pacific Ltd., Class A1		25,175,000			238,229
Commerzbank U.S. Finance, Inc.1		6,241,000			235,069
Hypo Real Estate Holding AG1		3,119,099			197,677
Sumitomo Mitsui Financial Group, Inc.1		18,650			190,370
Mitsubishi UFJ Financial Group, Inc.1		13,842			189,187
Mitsui Trust Holdings, Inc.1		14,662,000			175,149
AXA1		4,520,000			157,465
Banco Bradesco SA, preferred nominative		5,162,800			156,178
Fannie Mae		3,045,000			151,489
Freddie Mac		2,500,000			150,100
Crédit Agricole SA1		4,000,000			149,528
NIPPONKOA Insurance Co., Ltd.1		16,911,000			147,027
Credit Suisse Group1		2,470,000			143,198
ICICI Bank Ltd.1		12,288,703			142,923
ICICI Bank Ltd. (ADR)		4,000			106
Hana Financial Holdings1		3,156,250			142,562
DnB NOR ASA1		10,936,100			141,164
Bank of America Corp.		2,828,300			136,890
Suruga Bank Ltd.1		9,565,000			134,357
FirstRand Ltd.1		50,000,000			132,411
Commerce Bancorp, Inc.		3,166,000			124,392
Royal Bank of Scotland Group PLC1		3,573,667			115,473
Allied Capital Corp.		3,798,000			114,244
Hang Lung Properties Ltd.1		62,709,000			110,736
Unibail Holding1		647,000			106,681
Macquarie Bank Ltd.1		2,200,000			106,464
Zurich Financial Services1,2		456,519			103,582
Chinatrust Financial Holding Co., Ltd.1		123,881,294			98,911
Willis Group Holdings Ltd.		2,750,000			95,563
Hongkong Land Holdings Ltd.1		25,421,800			94,641
Unibanco-União de Bancos Brasileiros SA, units (GDR)		1,410,000			90,000
Grupo Financiero Banorte, SA de CV		36,848,252			87,495
Woori Finance Holdings Co., Ltd.1		4,197,660			86,526
Wachovia Corp.		1,500,000			80,250
ForeningsSparbanken AB, Class A1		3,000,000			78,651
Sompo Japan Insurance Inc.1		6,000,000			76,220
Allianz AG1		460,000			71,660
Fubon Financial Holding Co., Ltd.1		78,744,000			69,546
QBE Insurance Group Ltd.1		4,139,000			67,077
Mitsui Sumitomo Insurance Co., Ltd.1		5,394,000			65,787
Wells Fargo & Co.		976,000			64,777
AEON Mall Co., Ltd.1		1,319,900			58,873
Bank of the Philippine Islands1		58,693,075			58,276
Samsung Fire & Marine Insurance Co., Ltd.1		402,030			56,463
Marsh & McLennan Companies, Inc.		2,000,000			56,060
Westpac Banking Corp.1		3,122,000			54,140
Storebrand ASA1		4,895,000			52,739
National Savings and Commercial Bank Ltd. (GDR)1		736,923			49,618
St. George Bank Ltd.1		2,229,729			49,343
Millea Holdings, Inc.1		2,766			48,661
Developers Diversified Realty Corp.		900,000			46,035
Commonwealth Bank of Australia1		1,373,675			44,798
CapitaLand Ltd.1		17,000,000			44,318
Hysan Development Co. Ltd.1		17,007,011			43,482
Mitsui Fudosan Co., Ltd.1		2,050,000			42,000
Brookfield Asset Management Inc., Class A		997,500			40,730
DBS Group Holdings Ltd.1		3,620,000			39,825
Aioi Insurance Co. Ltd.1		5,561,000			37,806
Malayan Banking Bhd.1		11,439,300			34,358
Deutsche Börse AG1		262,000			34,104
Banco Bilbao Vizcaya Argentaria, SA1		1,580,000			32,828
Nippon Building Fund, Inc.1		3,050			31,226
PNC Financial Services Group, Inc.		425,000			29,287
U.S. Bancorp		930,000			28,709
Kimco Realty Corp.		785,000			28,142
Wharf (Holdings) Ltd.1		7,800,000			27,848
Erste Bank der oesterreichischen Sparkassen AG1		380,000			21,730
Montpelier Re Holdings Ltd.		1,305,000			20,332
Hang Lung Group Ltd.1		8,767,000			20,280
PT Bank Rakyat Indonesia1		47,000,000			20,089
PT Bank Mandiri (Persero) Tbk1		101,200,000			18,576
Bank Hapoalim Ltd.1		3,355,000			15,691
Sun Life Financial Inc.		365,000			14,977
KASIKORNBANK PCL, nonvoting depositary receipt1		8,578,400			14,014
XL Capital Ltd., Class A		180,000			11,390
Security Capital European Realty1,2,3		15,843			253
					14,382,566
CONSUMER DISCRETIONARY — 11.09%
Vivendi SA1		16,172,400		$	581,711
Hyundai Motor Co.1		5,430,000			420,824
Hyundai Motor Co., nonvoting preferred, Series 21		1,877,550			88,620
Toyota Motor Corp.1		6,009,300			318,476
Continental AG1		2,907,050			318,419
Target Corp.		6,304,000			308,392
SEGA SAMMY HOLDINGS INC.1		6,890,000			273,805
Accor SA1		4,610,000			271,096
Lowe’s Companies, Inc.		4,330,000			269,672
Compagnie Générale des Etablissements Michelin, Class B1		3,759,000			246,802
Mediaset SpA1		20,550,000			238,701
Ford Motor Co.		27,000,000			193,320
British Sky Broadcasting Group PLC1		18,655,000			185,816
LG Electronics Inc.1		2,548,000			184,561
Volkswagen AG, nonvoting preferred1		3,360,000			169,387
Yue Yuen Industrial (Holdings) Ltd.1		60,815,000			166,573
DSG International PLC1		42,082,596			153,655
Publishing & Broadcasting Ltd.1		10,565,000			147,934
Best Buy Co., Inc.		2,598,000			137,694
News Corp. Inc., Class A		6,719,458			128,140
General Motors Corp.		4,740,000			127,648
NOK Corp.1		4,175,000			127,231
H & M Hennes & Mauritz AB, Class B1		3,407,000			123,602
Harrah’s Entertainment, Inc.		1,620,000			123,185
Kingfisher PLC1		28,730,197			121,989
Aristocrat Leisure Ltd.1		11,934,960			121,354
Carnival Corp., units		2,850,000			113,744
KangwonLand Inc.1		6,400,140			113,337
Pioneer Corp.1		6,612,500			109,462
Honda Motor Co., Ltd.1		1,650,000			107,959
Grupo Televisa, SA, ordinary participation certificates (ADR)		5,328,000			97,982
Pou Chen Corp.1		105,000,000			91,296
Kia Motors Corp.1		5,000,000			84,889
Limited Brands, Inc.		3,107,517			84,400
William Hill PLC1		6,834,800			78,836
Nitori Co., Ltd.1		1,526,900			78,421
Daito Trust Construction Co., Ltd.1		1,410,000			76,684
Canon Marketing Japan Inc.1		3,507,500			74,383
Gestevisión Telecinco SA1		2,865,000			69,217
Daimaru, Inc.1		4,534,000			60,844
Kesa Electricals PLC1		10,147,598			56,332
Bridgestone Corp.1		2,690,000			55,040
Kohl’s Corp.2		1,000,000			53,690
Rank Group PLC1		12,500,000			48,437
Swatch Group Ltd, non-registered shares1		173,750			28,288
Swatch Group Ltd1		436,873			14,796
Toyoda Gosei Co., Ltd.1		1,800,000			42,461
Fuji Heavy Industries Ltd.1		6,919,000			40,946
Tabcorp Holdings Ltd.1		3,560,355			40,873
Truworths International Ltd.1		9,750,000			35,060
HYUNDAI MOBIS1		299,070			23,605
Travis Perkins PLC1		800,000			22,908
Li & Fung Ltd.1		10,332,000			21,237
Métropole Télévision1		310,000			10,040
Takashimaya Co., Ltd.1		219,000			2,918
TI Automotive Ltd., Class A1,2		1,068,000			0
					7,286,692
CONSUMER STAPLES — 8.09%
Altria Group, Inc.		12,290,500		$	889,218
Diageo PLC1		49,931,000			820,804
Tesco PLC1		77,505,563			465,481
Nestlé SA1		1,445,200			432,543
Foster��s Group Ltd.1		74,116,807			298,310
Seven & I Holdings Co., Ltd.1		7,924,000			273,793
Unilever NV1		7,869,000			178,502
Unilever NV (New York registered)		3,795,000			85,881
Reynolds American Inc.		1,935,141			212,749
Coca-Cola Co.		4,200,000			184,926
Koninklijke Ahold NV1,2		20,756,000			170,167
Fomento Económico Mexicano, SA de CV (ADR)2		1,803,700			154,739
Interbrew SA1		3,000,000			144,353
Groupe Danone1		1,033,000			124,938
Altadis, SA1		2,110,800			100,184
Kellogg Co.		2,050,000			96,555
Imperial Tobacco Group PLC1		3,050,000			93,456
Wal-Mart Stores, Inc.		1,728,000			83,722
Scottish & Newcastle PLC1		6,053,900			56,174
SABMiller PLC1		2,982,216			55,777
Kimberly-Clark de México, SA de CV, Class A, ordinary participation certificates		16,381,100			55,564
PepsiCo, Inc.		900,000			54,414
Gallaher Group PLC1		3,000,000			46,347
L’Oréal SA1		496,000			44,513
METRO AG1		750,000			42,406
UST Inc.		655,900			28,866
Woolworths Ltd.1		1,900,000			26,672
Bunge Ltd.		465,000			26,319
Coca-Cola West Japan Co. Ltd.1		956,500			22,331
Avon Products, Inc.		660,000			20,922
Royal Numico NV1		310,000			13,800
Coca-Cola HBC SA1		352,182			11,183
					5,315,609
MATERIALS — 7.98%
China Steel Corp.1		527,276,000			501,971
Bayer AG1		10,908,700			491,019
Barrick Gold Corp., USD denominated		14,000,000			428,540
Barrick Gold Corp.		1,931,540			58,941
Gold Fields Ltd.1		20,000,000			441,249
AngloGold Ashanti Ltd.1		6,200,000			283,958
Dow Chemical Co.		7,000,000			279,090
Akzo Nobel NV1		4,647,900			251,534
DSM NV1		4,799,729			204,060
Newcrest Mining Ltd.1		12,500,000			190,795
Formosa Plastics Corp.1		120,729,000			181,585
International Paper Co.		4,720,500			160,403
BASF AG1		1,920,000			156,606
James Hardie Industries Ltd.1		21,986,900			140,481
K+S AG1		1,441,600			120,578
Impala Platinum Holdings Ltd.1		702,389			118,185
LG Chem, Ltd.1		2,638,000			107,079
LG Chem, Ltd., nonvoting preferred1		375,000			10,074
Freeport-McMoRan Copper & Gold Inc., Class B		1,750,000			97,982
UPM-Kymmene Corp.1		4,024,000			86,525
Phelps Dodge Corp.		1,000,000			85,690
Alcan Inc.		1,515,000			79,310
Norske Skogindustrier ASA1		5,081,713			73,695
POSCO1		256,730			66,978
Weyerhaeuser Co.		1,040,000			66,518
Ivanhoe Mines Ltd.2		9,000,000			61,302
E.I. du Pont de Nemours and Co.		1,300,000			55,289
Potash Corp. of Saskatchewan Inc.		600,000			54,780
Cía. Vale do Rio Doce, Class A, preferred nominative		2,800,000			53,290
Bowater Inc.		2,000,000			46,280
Nitto Denko Corp.1		578,000			44,402
Alcoa Inc.		1,365,000			43,298
L’Air Liquide1		202,000			42,082
Packaging Corp. of America		1,800,000			38,340
Sonoco Products Co.		1,200,000			38,016
Yara International ASA1		1,131,800			15,463
Sappi Ltd.1		1,239,000			15,372
Stora Enso Oyj, Class R (ADR)		1,086,300			15,208
M-real Oyj, Class B1		2,369,500			12,791
Smurfit-Stone Container Corp.2		974,200			11,661
Formosa Chemicals & Fibre Corp.1		5,940,000			9,278
Arkema SA2		149,500			5,376
Arkema SA (ADR)1,2		56,250			2,023
Cemex, SA de CV, ordinary participation certificates, units (ADR)2		16,377			933
					5,248,030
ENERGY — 7.41%
Royal Dutch Shell PLC, Class B1		20,949,312			722,154
Royal Dutch Shell PLC, Class A (ADR)		5,220,000			346,138
Royal Dutch Shell PLC, Class A1		7,850,000			259,610
Royal Dutch Shell PLC, Class B (ADR)		1,142,148			79,048
TOTAL SA1		8,818,000			574,478
TOTAL SA (ADR)		2,250,000			146,722
Petróleo Brasileiro SA — Petrobras, preferred nominative (ADR)		2,500,000			190,900
Petróleo Brasileiro SA — Petrobras, ordinary nominative (ADR)		2,000,000			173,700
Chevron Corp.		5,013,962			299,785
ENI SpA1		9,390,000			283,448
Oil & Natural Gas Corp. Ltd.1		9,486,000			229,231
Norsk Hydro ASA1		7,329,500			205,344
Canadian Oil Sands Trust3		5,500,000			177,323
Canadian Oil Sands Trust		150,205			4,843
Reliance Industries Ltd.2		8,627,000			178,093
Husky Energy Inc.		3,015,000			177,160
Schlumberger Ltd.		1,540,000			100,978
ConocoPhillips		1,550,000			98,099
Canadian Natural Resources, Ltd.		1,700,000			89,547
Exxon Mobil Corp.		1,400,000			85,274
SK Corp. (Korea)1		1,239,410			83,394
Caltex Australia Ltd.1		4,164,181			60,378
PTT Exploration and Production PCL1		19,620,000			56,924
Transocean Inc.2		695,000			56,552
Marathon Oil Corp.		670,000			50,283
Williams Companies, Inc.		1,935,000			43,731
Sasol Ltd.1		1,100,000			41,358
SBM Offshore NV1		210,000			22,577
Kinder Morgan, Inc.		175,000			17,584
Enbridge Inc.		463,518			14,544
					4,869,200
TELECOMMUNICATION SERVICES — 6.67%
Koninklijke KPN NV1		54,969,620		$	632,145
AT&T Inc.		21,061,824			548,871
Telekom Austria AG1		18,952,750			423,780
Chunghwa Telecom Co., Ltd. (ADR)		9,979,600			204,482
Chunghwa Telecom Co., Ltd.1		98,046,000			183,817
América Móvil SA de CV, Series L (ADR)		7,809,000			255,042
Vodafone Group PLC1		98,432,600			226,870
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, Class B1		292,508,000			226,108
Far EasTone Telecommunications Co., Ltd.1		172,280,000			212,702
Philippine Long Distance Telephone Co.1		2,717,670			102,281
Philippine Long Distance Telephone Co. (ADR)		1,650,000			62,139
Verizon Communications Inc.		4,800,000			149,808
Telekomunikacja Polska SA1		20,858,600			131,603
China Netcom Group Corp. Ltd. (China)1		80,600,000			127,375
BellSouth Corp.		3,569,000			120,525
KT Corp. (ADR)		3,970,000			87,539
KT Corp.1		339,940			14,506
France Télécom, SA1		3,862,960			86,681
Telecom Italia SpA, nonvoting1		31,765,000			81,266
Tele Norte Leste Participações SA, preferred nominative		5,805,997			75,899
Teléfonos de México, SA de CV, Class L (ADR)		3,623,474			71,709
Maxis Communications Bhd.1		25,310,000			61,793
SK Telecom Co., Ltd. (ADR)		2,330,000			60,813
Advanced Info Service PCL1		19,930,900			48,571
COSMOTE Mobile Telecommunications SA1		1,650,000			37,525
China Unicom Ltd.1		40,870,000			36,716
KDDI Corp.1		5,700			35,728
Telefónica, SA1		1,868,729			30,621
Sprint Nextel Corp., Series 1		1,100,000			23,331
Magyar Telekom Telecommunications Co. Ltd.1,2		5,243,600			21,731
Embarq Corp.2		55,000			2,292
					4,384,269
INFORMATION TECHNOLOGY — 6.26%
Microsoft Corp.		20,244,000			458,527
Nokia Corp.1		13,498,750			289,223
Nokia Corp. (ADR)		7,250,300			155,664
Taiwan Semiconductor Manufacturing Co. Ltd.1		117,774,665			220,995
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		19,202,984			181,852
International Business Machines Corp.		3,130,200			250,103
Canon, Inc.1		3,237,700			224,542
Samsung Electronics Co., Ltd.1		321,256			206,542
Hewlett-Packard Co.		6,300,000			203,994
Delta Electronics, Inc.1		69,534,840			194,411
Yahoo! Inc.2		6,125,000			193,489
Powerchip Semiconductor Corp.1,2		280,185,000			189,213
Murata Manufacturing Co., Ltd.1		2,627,000			170,039
ASML Holding NV (New York registered)2		4,145,000			84,309
ASML Holding NV1,2		4,146,000			83,894
Oracle Corp.2		11,690,000			166,232
Toshiba Corp.1		21,150,000			142,055
TDK Corp.1		1,597,200			130,032
Cisco Systems, Inc.2		5,483,000			107,905
Chi Mei Optoelectronics Corp.1		55,210,751			65,380
Seagate Technology2		2,400,000			56,040
Intel Corp.		3,000,000			54,060
Hoya Corp.1		1,348,000			51,506
Samsung SDI Co., Ltd.1		400,000			33,659
Mediatek Incorporation1		2,780,966			31,260
Electrocomponents PLC1		5,787,900			27,439
Motorola, Inc.		1,190,000			25,097
Texas Instruments Inc.		750,000			23,422
Ricoh Co., Ltd.1		1,082,500			21,124
Analog Devices, Inc.		600,000			20,238
livedoor Co., Ltd.1,2		24,137,034			18,172
Corning Inc.2		723,513			17,545
Acer Inc.1		8,650,000			14,133
Kyoden Co., Ltd.1		56,300			248
					4,112,344
HEALTH CARE — 6.25%
Roche Holding AG1		5,341,066			833,547
AstraZeneca PLC (Sweden)1		7,079,800			375,069
AstraZeneca PLC (United Kingdom)1		3,317,000			175,575
Novo Nordisk A/S, Class B1		5,893,100			365,129
Merck KGaA1,2		2,562,000			263,671
Abbott Laboratories		6,160,300			263,045
Sanofi-Aventis1		2,371,700			224,067
Johnson & Johnson		3,407,000			205,170
Smith & Nephew PLC1		20,669,500			169,065
Bristol-Myers Squibb Co.		6,820,000			167,431
Schering-Plough Corp.		8,400,000			160,104
Eli Lilly and Co.		3,000,000			154,920
Pfizer Inc		6,470,000			153,080
WellPoint, Inc.2		1,500,000			107,370
Merck & Co., Inc.		3,000,000			99,870
Aetna Inc.		2,000,000			76,920
Forest Laboratories, Inc.2		1,865,000			69,900
McKesson Corp.		1,285,000			63,608
UnitedHealth Group Inc.		1,025,000			45,059
Chugai Pharmaceutical Co., Ltd.1		1,899,300			41,025
Mediceo Paltac Holdings Co., Ltd.1		2,000,000			38,307
Wyeth		810,000			37,049
Baxter International Inc.		280,220			10,564
Schering AG1		70,074			7,661
					4,107,206
UTILITIES — 5.47%
E.ON AG1		5,952,714			687,514
Veolia Environnement1		10,550,000			586,315
Electricité de France SA1,2		9,461,000			516,286
RWE AG1		3,425,000			292,772
NTPC Ltd.1		115,168,548			280,833
ENDESA, SA1		7,000,000			234,857
Gas Natural SDG, SA1		6,869,500			208,805
Korea Electric Power Corp.1		3,823,280			157,516
Tokyo Gas Co., Ltd.1		24,025,000			118,587
National Grid PLC1		9,828,572			111,753
Scottish Power PLC1		6,349,206			66,447
Exelon Corp.		975,000			55,195
Hong Kong and China Gas Co. Ltd.1		19,118,000			42,878
Dominion Resources, Inc.		567,811			41,212
FirstEnergy Corp.		780,000			40,888
Spark Infrastructure		45,435,632			36,612
Equitable Resources, Inc.		1,050,000			35,332
Ameren Corp.		395,000			19,549
Progress Energy, Inc.		350,000			14,714
PG&E Corp.		330,000			13,094
MDU Resources Group, Inc.		350,000			12,418
Southern Co.		375,000			11,989
Xcel Energy Inc.		357,500			6,710
					3,592,276
INDUSTRIALS — 5.04%
General Electric Co.		14,790,000			506,705
United Parcel Service, Inc., Class B		4,591,700			369,861
Tyco International Ltd.		13,560,000			367,612
Siemens AG1		2,289,500			197,514
United Technologies Corp.		2,847,000			177,995
Singapore Technologies Engineering Ltd.1		98,500,000			176,982
Sandvik AB1		3,000,000			175,593
Qantas Airways Ltd.1		71,274,256			169,325
Deutsche Post AG1		5,265,000			142,973
Nippon Express Co., Ltd.1		26,262,300			131,730
Daewoo Shipbuilding & Marine Engineering Co., Ltd.1		3,502,330			95,305
ComfortDelGro Corp. Ltd.1		95,600,000			88,713
Macquarie Airports1		37,599,049			86,474
Wesfarmers Ltd.1		3,200,000			83,784
Samsung Heavy Industries Co., Ltd.1		3,645,000			76,309
Fraport AG1		1,044,600			71,816
Marubeni Corp.1		13,000,000			70,460
Imperial Holdings Ltd.1		3,170,000			68,248
Mitsubishi Heavy Industries, Ltd.1		13,730,000			60,788
Manpower Inc.		900,000			59,247
Vedior NV1		2,000,000			42,991
SMC Corp.1		241,000			33,568
JS Group Corp.1		1,300,000			27,383
Singapore Post Private Ltd.1		32,160,000			21,698
Contax Participações SA, preferred nominative		15,044,930			10,663
Contax Participações SA, ordinary nominative		762,130			1,021
Contax Participações SA, preferred nominative (ADR)		70,000			50
					3,314,808
MISCELLANEOUS — 3.35%
Other common stocks in initial period of acquisition					2,199,385
Total common stocks (cost: $47,746,308,000)					58,812,385
		Shares or			Market value
Convertible securities — 0.35%		principal amount			(000	)
CONSUMER DISCRETIONARY — 0.14%
Ford Motor Co. Capital Trust II 6.50% cumulative convertible trust preferred 2032		3,250,000		$	94,315
TELECOMMUNICATION SERVICES — 0.07%
Crown Castle International Corp. 6.25% convertible preferred 20122		635,200			34,806
Deutsche Telekom International Finance BV 6.50% convertible bonds 2006		€10,000,000			12,376
					47,182
INFORMATION TECHNOLOGY — 0.07%
Intel Corp. 2.95% convertible debentures 20353	$	30,000,000			24,825
ASML Holding NV 5.50% convertible notes 2010		€12,700,000			21,182
					46,007
INDUSTRIALS — 0.05%
Tyco International Group SA, Series B, 3.125% convertible debentures 2023	$	25,000,000			32,188
MATERIALS — 0.02%
Freeport-McMoRan Copper & Gold Inc., 5.50% convertible preferred		10,000			12,599
Total convertible securities (cost: $281,996,000)					232,291
Bonds & notes — 0.57%		Principal amount (000	)
CONSUMER DISCRETIONARY — 0.34%
General Motors Acceptance Corp. 4.50% 2006	$	7,000			6,985
General Motors Acceptance Corp. 6.125% 2006		10,000			9,966
General Motors Acceptance Corp. 5.968% 20074		9,735			9,642
General Motors Acceptance Corp. 6.039% 20074		10,000			9,876
General Motors Acceptance Corp. 6.125% 2007		10,000			9,902
General Motors Acceptance Corp. 6.15% 2007		5,265			5,194
General Motors Corp. 7.20% 2011		2,695			2,277
General Motors Corp. 7.125% 2013		2,300			1,811
General Motors Corp. 8.25% 2023		12,240			9,272
General Motors Corp. 8.375% 2033		137,760			105,214
R.H. Donnelley Corp., Series A-2, 6.875% 20133		24,225			22,287
R.H. Donnelley Corp., Series A-3, 8.875% 20163		20,600			20,806
Delphi Automotive Systems Corp. 6.55% 20065		14,955			12,375
					225,607
NON-U.S. GOVERNMENT BONDS & NOTES — 0.13%
Indonesia (Republic of) 10.00% 2011		IDR 74,000,000			7,450
Indonesia (Republic of) 13.40% 2011		90,000,000			10,302
Indonesia (Republic of) 9.50% 2015		122,825,000			11,571
Indonesia (Republic of) 11.00% 2020		220,000,000			22,281
Brazilian Treasury Bill 0% 2007		R$80			30,717
					82,321
FINANCIALS — 0.08%
Hopson Development Holdings Ltd. 8.125% 20123	$	50,000			51,250
ENERGY — 0.02%
El Paso Corp. 7.875% 2012		14,500			15,008
Total bonds & notes (cost: $378,172,000)					374,186
		Principal amount			Market value
Short-term securities — 9.48%		(000	)		(000	)
Fannie Mae 4.76%-4.95% due 6/28-8/16/2006	$	263,817		$	261,886
HBOS Treasury Services PLC 4.76%-5.05% due 6/9-8/15/2006		253,100			251,180
Barton Capital LLC 4.81%-5.01% due 6/5-7/21/20063		191,950			191,474
Société Générale North America Inc. 5.05% due 8/17/2006		43,500			43,026
Danske Corp. 4.82%-5.02% due 6/1-7/17/20063		224,300			223,463
Spintab AB (Swedmortgage) 4.76%-5.045% due 6/1-8/15/2006		216,000			214,367
Dexia Delaware LLC 4.855%-5.005% due 6/15-7/7/2006		201,500			200,740
Abbey National North America LLC 4.82%-5.00% due 6/8-7/21/2006		200,000			199,036
Westpac Banking Corp. 5.03%-5.115% due 8/8-9/1/20063		92,300			91,339
Westpac Trust Securities NZ Ltd. 4.88%-4.93% due 6/30-7/11/20063		107,200			106,684
Citigroup Funding Inc. 4.81% due 6/14/2006		74,500			74,365
CAFCO, LLC 4.95%-5.04% due 6/22-7/18/20063		108,200			107,570
IXIS Commercial Paper Corp. 4.85%-4.88% due 6/21-6/29/20063		176,500			175,876
BASF AG 4.89%-5.01% due 6/27-7/25/20063		174,700			173,832
Freddie Mac 4.65%-4.95% due 6/6-8/15/2006		167,100			165,643
Barclays U.S. Funding Corp. 4.89%-5.115% due 6/16-8/14/2006		165,000			163,911
Old Line Funding, LLC 4.84%-5.03% due 6/1-7/17/20063		161,816			161,285
Federal Home Loan Bank 4.65%-4.991% due 6/7-8/16/2006		159,100			157,729
Toronto-Dominion Holdings USA Inc. 4.885%-4.91% due 6/22-7/10/20063		150,000			149,390
Bank of Ireland 4.90%-5.035% due 6/23-8/7/20063		150,000			149,091
American Honda Finance Corp. 4.83%-5.00% due 6/5-7/21/2006		146,125			145,615
Allied Irish Banks N.A. Inc. 4.89%-5.015% due 6/19-7/10/20063		137,700			137,116
Lloyds Bank PLC 4.85%-5.01% due 6/19-8/11/2006		125,000			124,306
Bank of America Corp. 4.92%-5.12% due 6/29-9/1/2006		119,700			118,855
Toyota Motor Credit Corp. 4.91%-5.04% due 6/27-8/2/2006		115,400			114,731
Siemens Capital Co. LLC 4.82%-4.98% due 6/9-6/30/2006		115,000			114,640
ING (U.S.) Funding LLC 4.84%-4.99% due 6/7-7/6/2006		68,800			68,646
Mont Blanc Capital Corp. 5.00% due 6/5/20063		42,803			42,773
Amsterdam Funding Corp. 4.88%-5.01% due 6/1-7/13/20063		110,000			109,810
Canadian Imperial Holdings Inc. 4.76%-4.92% due 6/6-7/10/2006		108,600			108,323
Shell International Finance BV 4.84%-4.85% due 6/9-6/30/2006		108,050			107,712
Total Capital SA 4.87%-5.04% due 7/11-8/3/20063		104,600			103,832
Royal Bank of Scotland PLC 4.82% due 6/23/2006		100,000			99,699
Alcon Capital Corp. 4.845% due 6/22/20063		50,000			49,856
Nestlé Capital Corp. 4.845% due 6/20/20063		49,900			49,765
Calyon North America Inc. 4.905%-4.94% due 6/19-7/19/2006		100,000			99,546
Scotiabank Inc. 4.88% due 6/30/20063		50,000			49,795
Bank of Nova Scotia 5.00% due 7/11/2006		50,000			49,715
Stadshypotek Delaware Inc. 4.955%-5.015% due 7/12-7/20/20063		100,000			99,388
BNP Paribas Finance Inc. 4.93% due 7/20/2006		100,000			99,334
Edison Asset Securitization LLC 4.83%-4.93% due 6/16-6/22/20063		55,800			55,671
General Electric Co. 4.91% due 6/29/2006		33,300			33,169
DaimlerChrysler Revolving Auto Conduit LLC II 4.96%-5.07% due 6/9-8/14/2006		87,286			86,730
Variable Funding Capital Corp. 4.88%-5.02% due 6/6-7/6/20063		80,000			79,724
Preferred Receivables Funding Corp. 5.10% due 8/29/20063		51,673			51,010
Park Avenue Receivables Co., LLC 5.00% due 6/7/20063		24,900			24,876
ANZ (Delaware) Inc. 4.845% due 6/26/2006		40,800			40,656
ANZ National (International) Ltd. 5.07% due 8/2/20063		35,000			34,694
HSBC USA Inc. 4.84% due 6/26/2006		75,000			74,735
Clipper Receivables Co., LLC 4.96% due 7/25/20063		71,500			70,951
Tennessee Valley Authority 4.655% due 6/15/2006		69,200			69,047
Export Development Corp. 4.98% due 7/17/2006		59,100			58,718
Depfa Bank PLC 4.965% due 7/13/20063		55,910			55,590
Rabobank USA Financial Corp. 4.88% due 6/20/2006		50,000			49,865
Caisse d’Amortissement de la Dette Sociale 4.86% due 6/26/2006		50,000			49,824
KfW International Finance Inc. 4.86% due 6/27/20063		50,000			49,817
International Lease Finance Corp. 5.00% due 7/14/2006		50,000			49,707
Swedish Export Credit Corp. 4.93% due 7/19/2006		50,000			49,674
UBS Finance (Delaware) LLC 4.93%-5.00% due 6/8-6/29/2006		49,500			49,372
FCAR Owner Trust I 5.04%-5.06% due 7/17-8/14/2006		44,700			44,329
Total short-term securities (cost: $6,233,293,000)					6,233,503
Total investment securities (cost: $54,639,769,000)					65,652,365
Other assets less liabilities					69,083
Net assets				$	65,721,448

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

¹Valued under fair value procedures adopted by authority of the board of directors. At May 31, 2006, 267 of the fund’s securities, including those in “Miscellaneous” (with aggregate value of $41,090,210,000), were fair valued under procedures that took into account significant price changes that occurred between the close of trading in those securities and the close of regular trading on the New York Stock Exchange.

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

³Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities was $2,891,461,000, which represented 4.40% of the net assets of the fund.

⁴Coupon rate may change periodically.

⁵Company not making scheduled interest payments; bankruptcy proceedings pending.

ADR = American Depositary Receipts

GDR = Global Depositary Receipts

MFGEFP-933-S4572

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

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

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

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

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

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

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

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

ITEM 11 - Controls and Procedures

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

ITEM 12 - Exhibits

(a)(1)	Not applicable for filing of semi-annual reports to shareholders.
(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CAPITAL WORLD GROWTH AND INCOME FUND, INC.

By /s/ Stephen E. Bepler

Stephen E. Bepler, President and PEO

Date: August 8, 2006

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

By /s/ Stephen E. Bepler

Stephen E. Bepler, President and PEO

Date: August 8, 2006

By /s/ Jeffrey P. Regal

Jeffrey P. Regal, Treasurer and PFO

Date: August 8, 2006