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: 811-862
The Growth Fund of America, Inc.
(Exact Name of Registrant as specified in charter)
P.O. Box 7650, One Market, Steuart Tower
San Francisco, California 94120
(Address of principal executive offices)
Registrant's telephone number, including area code: (415) 421-9360
Date of fiscal year end: August 31, 2005
Date of reporting period: February 28, 2005
Patrick F. Quan
Secretary
The Growth Fund of America, Inc.
P.O. Box 7650, One Market, Steuart Tower
San Francisco, California 94120
(name and address of agent for service)
Copies to:
Michael Glazer
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, California 90071
(Counsel for the Registrant)
ITEM 1 - Reports to Stockholders
[logo - AMERICAN FUNDS(R)]
The right choice for the long term(R)
THE GROWTH FUND OF AMERICA
[photo of six girls dressed in soccer uniforms sitting on stadium bleachers
overlooking a playing field]
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED FEBRUARY 28, 2005
THE GROWTH FUND OF AMERICA(R) invests in a wide range of companies that appear
to offer superior opportunities for growth of capital.
This fund is one of the 29 American Funds, the nation's third-largest mutual
fund family. For more than seven decades, Capital Research and Management
Company,SM the American Funds adviser, has invested with a long-term focus based
on thorough research and attention to risk.
FIGURES SHOWN ARE PAST RESULTS FOR CLASS A SHARES AND ARE NOT PREDICTIVE OF
RESULTS IN FUTURE PERIODS. CURRENT AND FUTURE RESULTS MAY BE LOWER OR HIGHER
THAN THOSE SHOWN. SHARE PRICES AND RETURNS WILL VARY, SO INVESTORS MAY LOSE
MONEY. INVESTING FOR SHORT PERIODS MAKES LOSSES MORE LIKELY. INVESTMENTS ARE NOT
FDIC-INSURED, NOR ARE THEY DEPOSITS OF OR GUARANTEED BY A BANK OR ANY OTHER
ENTITY. FOR THE MOST CURRENT INFORMATION AND MONTH-END RESULTS, VISIT
AMERICANFUNDS.COM. FUND RESULTS SHOWN, UNLESS OTHERWISE INDICATED, ARE AT NET
ASSET VALUE. IF A SALES CHARGE (MAXIMUM 5.75%) HAD BEEN DEDUCTED, THE RESULTS
WOULD HAVE BEEN LOWER.
Here are the average annual total returns on a $1,000 investment with all
distributions reinvested for periods ended March 31, 2005 (the most recent
calendar quarter):
CLASS A SHARES 1 YEAR 5 YEARS 10 YEARS
Reflecting 5.75% maximum sales charge +0.12% -2.96% +12.92%
The fund's investment adviser is waiving a portion of its management fees.
Results shown reflect the waiver. Please see the Financial Highlights table on
page 22 for details.
Results for other share classes can be found on page 28.
There are several ways to invest in The Growth Fund of America. 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 0.75 percentage points higher than for Class A shares; Class
B shares convert to Class A shares after eight years of ownership. If redeemed
within six years, Class B shares may also be subject to a contingent deferred
sales charge ("CDSC") of up to 5% that declines over time. Class C shares were
subject to annualized expenses 0.81 percentage points higher than those for
Class A shares and a 1% CDSC if redeemed within the first year after purchase.
Class C shares convert to Class F shares after 10 years. Class F shares, which
are available only through certain fee-based programs offered by broker-dealer
firms and registered investment advisers, had higher annualized expenses (by
0.04 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.
[photo of six girls dressed in soccer uniforms sitting on stadium bleachers
overlooking a playing field]
FELLOW SHAREHOLDERS:
After a period of uncertainty in political and economic events through much of
2004, the stock market staged a recovery beginning in late October and had a
strong result for the six months ended February 28, 2005. Clarity on the outcome
of the U.S. presidential election and successful elections in Iraq had a
positive impact on the stock market. An improving U.S. economy, strong corporate
earnings and weakness of the U.S. dollar also helped power a rise in stock
prices.
Against this backdrop, The Growth Fund of America (GFA) posted a total return of
12.0% for the six-month period. As the table below shows, the fund outpaced the
unmanaged Standard & Poor's 500 Composite Index, a broad measure of U.S. stocks,
which gained 10.0%. In addition, GFA surpassed the Lipper Growth Funds Index but
slightly trailed three other benchmark indexes the fund uses to measure its
progress. These Lipper benchmarks had increases ranging from 10.7% to 13.4%.
For the 12 months ended February 28, The Growth Fund of America produced a total
return of 6.6%, essentially in line with the S&P 500 and outpacing two of its
four Lipper benchmark indexes. In the first half of the 12-month period,
uncertainty about the presidential election, rising interest rates, concern
about the conflict in Iraq and higher crude oil prices held back stock prices.
In the recent six months, some of those concerns abated.
[Begin Sidebar]
RESULTS AT A GLANCE (as of February 28, 2005)
5-year Lifetime
average average
Six-month 1-year annual annual
total total total total
returns returns returns returns*
The Growth Fund of America +12.0% +6.6% -0.8% +15.5%
Standard & Poor's 500 Composite Index+ +10.0 +7.0 -1.0 +12.1
Lipper Capital Appreciation Funds Index +13.4 +6.9 -5.4 +11.9
Lipper Growth Funds Index +10.7 +4.7 -5.6 +10.9
Lipper Multi-Cap Core Funds Index +12.4 +7.8 -0.3 +11.6
Lipper Multi-Cap Growth Funds Index +13.1 +4.4 -10.0 +11.8
*Since Capital Research and Management Company began managing the fund on December 1, 1973.
+Unmanaged.
[End Sidebar]
[close-up photo of six girls dressed in soccer uniforms sitting on stadium
bleachers overlooking a playing field]
Over longer periods, GFA has continued to outpace the general market and its
comparable indexes by significant margins. For its lifetime of just over 31
years, the fund had an average annual total return of 15.5%, compared with 12.1%
for the S&P 500. Its four Lipper benchmark indexes had total returns ranging
from 10.9% to 11.9%.
WHAT HELPED RESULTS
Energy and materials stocks helped GFA's results the most in the recent
six-month period. The rise in crude oil prices benefited the fund's sizable
holding of energy companies, including several Canadian exploration and
production companies. The fund added more shares of energy companies to its
portfolio during the past six months. After experiencing years of relatively low
oil prices, energy companies have been disciplined about costs and spending and
were able to benefit when prices rose. Stronger demand for oil from developing
nations, including China, has helped fuel higher prices.
Developing nations have also had a strong appetite for basic materials; as these
countries grow, they invest in infrastructure. This trend has aided materials
companies, including those in the chemical, metal and paper industries. These
companies have also benefited from strong earnings and increased pricing power.
In addition to increasing its energy holdings over the past six months, the fund
has added to shares of companies involved in materials and technology; it has
reduced its holdings in insurance and media.
U.S.-based multinational corporations have been aided by the falling dollar,
which has made U.S. exports more competitive. The fund's investment outside the
United States and Canada, which amounts to about 13% of its portfolio, was
favorably impacted when these securities were converted from their native
currencies into U.S. dollars.
In December, we were happy to see that Microsoft paid a $3 per share special
dividend to shareholders for a total payout of $32 billion. We hope that more
technology companies will follow Microsoft's example of sharing excess cash with
investors.
WHAT HURT RESULTS
Pharmaceutical manufacturers, which have been a mainstay for the fund in
previous years, lagged in the recent period. A combination of factors
contributed to the industry's slower growth. A few blockbuster drugs were pulled
off the market because of individual product problems, and several drugs under
development did not meet expectations for effectiveness. There were also
concerns about increasing regulation, pricing pressure and looming patent
expirations for popular drugs.
GOING FORWARD
Our outlook has not changed from the views expressed in the annual report six
months ago. We believe modest returns with some volatility are likely in the
future. We will continue our approach of fundamental research, conducted
globally, with a long-term perspective. We warmly welcome our new shareholders
and thank our long-term investors for their continuing support.
/s/ James F. Rothenberg /s/ Donald D. O'Neal
James F. Rothenberg Donald D. O'Neal
Chairman of the Board President
April 8, 2005
For current information about the fund, visit americanfunds.com.
SUMMARY INVESTMENT PORTFOLIO, February 28, 2005 unaudited
The following summary investment portfolio is designed to streamline the report
and help investors better focus on a fund's principal holdings. For details on
how to obtain a complete schedule of portfolio holdings, please see the inside
back cover.
[begin pie chart]
PERCENT
OF NET
INDUSTRY SECTOR DIVERSIFICATION ASSETS
Information Technology 18.46 %
Consumer Discretionary 16.69
Energy 12.80
Health Care 11.36
Industrials 8.43
Other industries 22.69
Cash & equivalents 9.57
[end pie chart]
PERCENT
OF NET
LARGEST EQUITY HOLDINGS ASSETS
Time Warner 2.08 %
Microsoft 1.88
Lowe's Companies 1.84
Altria Group 1.78
Target 1.76
Sanofi-Aventis 1.57
Vodafone 1.47
Tyco 1.21
WellPoint 1.18
Texas Instruments 1.16
Market Percent
Shares value of net
Common stocks - 90.18% (000) assets
Information technology - 18.46%
Microsoft Corp. 73,225,000 $1,843,806 1.88%
Texas Instruments Inc. 43,120,200 1,141,392 1.16
Google Inc., Class A (1) 5,272,100 991,102 1.01
Taiwan Semiconductor Manufacturing Co. Ltd. 534,756,085 946,623 .96
Applied Materials, Inc. (1) 47,165,000 825,387 .84
First Data Corp. 19,440,000 797,429 .81
Corning Inc. (1) 66,145,000 758,683 .77
Linear Technology Corp. 15,175,000 592,735 .60
Samsung Electronics Co., Ltd. 983,800 516,397 .53
Analog Devices, Inc. 13,216,666 485,316 .49
Other securities 9,242,170 9.41
18,141,040 18.46
Consumer discretionary - 16.68%
Time Warner Inc. (1) 118,900,000 2,048,647 2.08
Lowe's Companies, Inc. 30,820,400 1,811,623 1.84
Target Corp. 34,085,000 1,732,200 1.76
Comcast Corp., Class A (1) 23,969,387 780,204
Comcast Corp., Class A, special nonvoting stock (1) 10,050,000 320,193 1.12
IAC/InterActiveCorp (1) 42,750,000 961,875 .98
Carnival Corp., units 15,050,000 818,419 .83
Liberty Media Corp., Class A (1) 80,375,000 815,002 .83
News Corp. Inc., Class A 43,007,500 715,645 .73
Clear Channel Communications, Inc. 21,085,000 701,709 .71
Best Buy Co., Inc. 12,540,800 677,454 .69
Starbucks Corp. (1) 11,329,200 586,966 .60
Other securities 4,427,206 4.51
16,397,143 16.68
Energy - 12.80%
Schlumberger Ltd. 14,698,300 1,108,987 1.13
Devon Energy Corp. 19,280,000 902,111 .92
Transocean Inc. (1) 12,649,900 613,267 .62
Canadian Natural Resources, Ltd. 10,640,000 604,881 .62
Suncor Energy Inc. 15,325,323 593,796 .60
Halliburton Co. 11,905,000 523,463 .53
Other securities 8,237,319 8.38
12,583,824 12.80
Health care - 11.36%
Sanofi-Aventis 19,232,638 1,539,188 1.57
WellPoint, Inc. (1) 9,487,400 1,158,032 1.18
Guidant Corp. 10,062,200 738,465 .75
Other securities 7,731,149 7.86
11,166,834 11.36
Industrials - 8.43%
Tyco International Ltd. 35,675,000 1,194,399 1.21
United Parcel Service, Inc., Class B 12,219,300 946,874 .96
General Electric Co. 26,740,000 941,248 .96
3M Co. 6,940,000 582,544 .59
Illinois Tool Works Inc. 6,450,000 578,887 .59
Boeing Co. 10,400,000 571,688 .58
General Dynamics Corp. 5,120,700 539,466 .55
Southwest Airlines Co. 36,079,877 499,706 .51
Other securities 2,434,586 2.48
8,289,398 8.43
Financials - 6.53%
Freddie Mac 17,102,300 1,060,343 1.08
American International Group, Inc. 15,350,200 1,025,393 1.04
Fannie Mae 16,111,400 941,872 .96
Other securities 3,387,726 3.45
6,415,334 6.53
Consumer staples - 5.41%
Altria Group, Inc. 26,700,000 1,752,855 1.78
Walgreen Co. 21,060,000 902,000 .92
Coca-Cola Co. 15,365,000 657,622 .67
Avon Products, Inc. 11,439,000 489,246 .50
Other securities 1,514,666 1.54
5,316,389 5.41
Materials- 4.20% 4,127,074 4.20
Telecommunication services - 3.85%
Vodafone Group PLC (ADR) 47,085,000 1,237,865
Vodafone Group PLC 78,465,000 205,489 1.47
mm02 PLC (1) 218,743,200 508,740 .52
Other securities 1,828,021 1.86
3,780,115 3.85
Utilities - 0.13% 131,225 .13
Miscellaneous - 2.33%
Other common stocks in initial period of acquisition 2,287,316 2.33
Total common stocks (cost: $72,538,356,000) 88,635,692 90.18
Market Percent
Shares value of net
Convertible securities - 0.11% (000) assets
Total convertible securities (cost: $63,549,000) 102,449 .11
Market Percent
Principal amount value of net
Bonds & notes - 0.14% (000) (000) assets
Telecommunication services - 0.13% 125,777 .13
Consumer discretionary - 0.01%
AOL Time Warner Inc. 5.625% 2005 $ 10,795 10,838 .01
Total bonds & notes (cost: $122,974,000) 136,615 .14
Market Percent
Principal amount value of net
Short-term securities - 9.46% (000) (000) assets
U.S. Treasury Bills 1.915%-2.636% due 3/3-5/26/2005 2,558,200 2,551,850 2.60
Freddie Mac 2.372%-2.61% due 3/14-4/22/2005 648,014 646,691 .66
Federal Home Loan Bank 2.36%-2.585% due 3/11-4/29/2005 601,952 600,253 .61
Edison Asset Securitization LLC 2.40%-2.60% due 3/9-4/13/2005 (2) 123,300 123,101 .23
General Electric Capital Services, Inc. 2.48%-2.52% due 3/18-3/23/2005 100,000 99,858
Fannie Mae 2.42%-2.50% due 3/21-4/8/2005 200,000 199,666 .20
AIG Funding, Inc. 2.65% due 4/27/2005 50,000 49,795 .05
Other securities 5,025,789 5.11
TOTAL SHORT-TERM SECURITIES (cost: $9,297,077,000) 9,297,003 9.46
TOTAL INVESTMENT SECURITIES (cost: $82,021,956,000) 98,171,759 99.89
OTHER ASSETS LESS LIABILITIES 111,296 .11
NET ASSETS $98,283,055 100.00%
"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 required to be disclosed in
the summary investment portfolio.
(1) Security did not produce income during the last 12 months.
(2) Purchased in a private placement transaction; resale may be limited to
qualified institutional buyers; resale to the public may require
registration. The total value of all such restricted securities, including
those included in "Other securities" in the summary investment portfolio,
was $3,058,569,000, which represented 3.11% of the net assets of the fund.
(3) Valued under fair value procedures adopted by authority of the Board of
Directors.
(4) Unaffiliated issuer at 2/28/2005
ADR = American Depositary Receipts
See Notes to Financial Statements
INVESTMENTS IN AFFILIATES:
A company is considered to be an affiliate of the fund under the Investment
Company Act of 1940 if the fund's holdings in that company represent 5% or more
of the outstanding voting shares of that company. The market value of the fund's
holdings in affiliated companies is included in "Other securities" under their
respective indutry sectors in the preceding summary investment portfolio.
Further details on these holdings and related transactions for the six months
ended February 28, 2005 appear below.
Beginning
Company shares or principal Purchases Sales
amount
Burlington Resources Inc. 19,760,000 - -
Forest Laboratories, Inc. (1) 20,311,800 - -
Maxim Integrated Products, Inc. 16,590,000 900,000 -
Qwest Communications International Inc. (1) 7,773,100 110,126,900 -
Qwest Capital Funding, Inc. 7.75% 2031 - 53,800,000 -
U S WEST Capital Funding, Inc. 6.875% 2028 - 36,000,000 -
Qwest Capital Funding, Inc. 7.625% 2021 - 25,000,000 -
U S WEST Capital Funding, Inc. 6.50% 2018 - 25,250,000 -
EOG Resources, Inc. 6,200,000 15,000 -
Xilinx, Inc. 14,800,000 3,050,000 -
Limited Brands, Inc. 20,700,000 - -
USX-U.S. Steel Group - 7,375,000 -
BJ Services Co. 3,000,000 5,975,000 -
Altera Corp. (1) 15,700,000 4,200,000 -
Harrah's Entertainment, Inc. 4,650,000 1,450,000 -
Express Scripts, Inc. (1) 4,710,000 - -
Microchip Technology Inc. 10,225,000 2,530,000 -
Advanced Micro Devices, Inc. (1) 12,000,000 7,800,000 -
ENSCO International Inc. 8,235,000 - -
Rowan Companies, Inc. 6,450,000 - -
American Pharmaceutical Partners, Inc. (1) 3,800,000 - -
Brinker International, Inc. (1) 3,000,000 2,000,000 -
Pogo Producing Co. 3,644,400 - -
Teradyne, Inc. (1) 6,250,000 4,900,000 -
Ceridian Corp. (1) 7,240,900 1,300,000 -
Sabre Holdings Corp., Class A 7,062,811 - -
SINA Corp. (1) 2,552,000 - -
Broadview Networks Holdings Inc., Series E, convertible preferred (1) (2) (3) 1,588,972 - -
Broadview Networks Holdings, Inc., Series E, warrants, expire 2012 (1) (2) (3) 634,116 - -
Broadview Networks Holdings, Inc., Series E, warrants, expire 2012 (1) (2) (3) 96,812 - -
Big Lots, Inc. (1) (4) 7,000,000 - 2,000,000
Ending Dividend/Interest Market
Company shares or principal income value
amount (000) (000)
Burlington Resources Inc. 19,760,000 $ 3,359 $ 980,689
Forest Laboratories, Inc. (1) 20,311,800 - 867,314
Maxim Integrated Products, Inc. 17,490,000 3,318 752,420
Qwest Communications International Inc. (1) 117,900,000 - 459,810
Qwest Capital Funding, Inc. 7.75% 2031 53,800,000 1,437 49,563
U S WEST Capital Funding, Inc. 6.875% 2028 36,000,000 965 30,870
Qwest Capital Funding, Inc. 7.625% 2021 25,000,000 661 23,250
U S WEST Capital Funding, Inc. 6.50% 2018 25,250,000 703 22,094
EOG Resources, Inc. 6,215,000 745 566,311
Xilinx, Inc. 17,850,000 1,686 539,070
Limited Brands, Inc. 20,700,000 30,429 492,246
USX-U.S. Steel Group 7,375,000 572 459,905
BJ Services Co. 8,975,000 908 448,391
Altera Corp. (1) 19,900,000 - 412,726
Harrah's Entertainment, Inc. 6,100,000 3,547 400,099
Express Scripts, Inc. (1) 4,710,000 - 354,616
Microchip Technology Inc. 12,755,000 1,477 350,252
Advanced Micro Devices, Inc. (1) 19,800,000 - 345,510
ENSCO International Inc. 8,235,000 206 331,706
Rowan Companies, Inc. 6,450,000 1,612 204,336
American Pharmaceutical Partners, Inc. (1) 3,800,000 - 198,588
Brinker International, Inc. (1) 5,000,000 - 189,300
Pogo Producing Co. 3,644,400 456 177,154
Teradyne, Inc. (1) 11,150,000 - 171,933
Ceridian Corp. (1) 8,540,900 - 155,871
Sabre Holdings Corp., Class A 7,062,811 1,165 148,884
SINA Corp. (1) 2,552,000 - 72,809
Broadview Networks Holdings Inc., Series E, convertible preferred (1) (2) (3) 1,588,972 - 550
Broadview Networks Holdings, Inc., Series E, warrants, expire 2012 (1) (2) (3) 634,116 - -
Broadview Networks Holdings, Inc., Series E, warrants, expire 2012 (1) (2) (3) 96,812 - -
Big Lots, Inc. (1) (4) 5,000,000 - -
$ 53,246 $ 9,206,267
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES unaudited
at February 28, 2005
(dollars and shares in thousands, except per-share amounts)
Assets:
Investment securities at market:
Unaffiliated issuers (cost: $74,778,065) $88,965,492
Affiliated issuers (cost: $7,243,891) 9,206,267 $98,171,759
Cash denominated in non-U.S. currencies
(cost: $12,540) 13,620
Cash 71
Receivables for:
Sales of investments 271,790
Sales of fund's shares 301,671
Dividends and interest 76,091 649,552
Other assets 280
98,835,282
Liabilities:
Payables for:
Purchases of investments 337,926
Repurchases of fund's shares 127,020
Investment advisory services 20,214
Services provided by affiliates 64,083
Deferred Directors' compensation 1,608
Other fees and expenses 1,376 552,227
Net assets at February 28, 2005 $98,283,055
Net assets consist of:
Capital paid in on shares of capital stock $82,094,706
Undistributed net investment income 88,554
Accumulated net realized loss (51,488)
Net unrealized appreciation 16,151,283
Net assets at February 28, 2005 $98,283,055
[Total authorized capital stock - 5,500,000 shares, $.001 par value (3,623,806
total shares outstanding)
Net assets Shares outstanding Net asset value per share(1)
Class A $60,837,727 2,230,976 $27.27
Class B 5,567,787 210,290 26.48
Class C 5,998,603 227,129 26.41
Class F 9,665,838 356,201 27.14
Class 529-A 1,111,635 40,888 27.19
Class 529-B 283,358 10,632 26.65
Class 529-C 362,642 13,602 26.66
Class 529-E 60,499 2,236 27.06
Class 529-F 23,349 860 27.15
Class R-1 94,763 3,537 26.79
Class R-2 1,245,439 46,507 26.78
Class R-3 4,881,431 180,940 26.98
Class R-4 5,966,711 219,968 27.13
Class R-5 2,183,273 80,040 27.28
(1) Maximum offering price and redemption price per share were equal to the net
asset value per share for all share classes, except for classes A and
529-A, for which the maximum offering prices per share were $28.93 and
$28.85, respectively.
See Notes to Financial Statements
STATEMENT OF OPERATIONS
for the six months ended February 28, 2005
Investment income: unaudited
Income: (dollars in thousands)
Dividends (net of non-U.S. withholding
tax of $2,810; also includes
$49,480 from affiliates) $569,751
Interest (also includes $3,766 from affiliates) 102,572 $672,323
Fees and expenses:
Investment advisory services 127,767
Distribution services 158,410
Transfer agent services 37,176
Administrative services 24,155
Reports to shareholders 1,524
Registration statement and prospectus 3,586
Postage, stationery and supplies 5,030
Directors' compensation 296
Auditing and legal 68
Custodian 2,775
State and local taxes 1
Other 199
Total expenses before reimbursement/waiver 360,987
Reimbursement/waiver of expenses 6,604 354,383
Net investment income 317,940
Net realized gain and unrealized
appreciation on investments
and non-U.S. currency:
Net realized gain (loss) on:
Investments (includes $4,559 net loss from affiliates) 368,531
Non-U.S. currency transactions (1,240) 367,291
Net unrealized appreciation on:
Investments 9,143,116
Non-U.S. currency translations 545 9,143,661
Net realized gain and
unrealized appreciation
on investments and non-U.S. currency 9,510,952
Net increase in net assets resulting
from operations $9,828,892
See Notes to Financial Statements
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Six months Year ended
ended February 28, August 31,
2005(*) 2004
Operations:
Net investment income $317,940 $57,036
Net realized gain on investments and
non-U.S. currency transactions 367,291 1,517,009
Net unrealized appreciation
on investments and non-U.S. currency translations 9,143,661 2,933,858
Net increase in net assets
resulting from operations 9,828,892 4,507,903
Dividends paid to shareholders from net investment income (281,649) (20,306)
Capital share transactions 9,536,940 21,009,117
Total increase in net assets 19,084,183 25,496,714
Net assets:
Beginning of period 79,198,872 53,702,158
End of period (including
undistributed
net investment income: $88,554 and $52,263,
respectively) $98,283,055 $79,198,872
(*)Unaudited
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS unaudited
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - The Growth Fund of America, Inc. (the "fund") is registered under
the Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund invests in a wide range of companies that appear to
offer superior opportunities for growth of capital.
The fund offers 14 share classes consisting of four retail share classes, five
CollegeAmerica(R) 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) are sponsored by the Commonwealth of Virginia and 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 Conversion feature
charge upon redemption
Classes A and 529-A Up to 5.75% None (except 1% for None
certain redemptions
within one year of
purchase without an
initial sales charge)
Classes B and 529-B None Declines from 5% to zero Classes B and 529-B convert to
for redemptions within classes A and 529-A, respectively,
six years of purchase after eight years
Class C None 1% for redemptions within Class C converts to Class F
one year of purchase after 10 years
Class 529-C None 1% for redemptions within None
one year of purchase
Class 529-E None None None
Classes F and 529-F None None None
Classes R-1, R-2, R-3, None None None
R-4 and R-5
Holders of all share classes have equal pro rata rights to assets, dividends and
liquidation. 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.
CollegeAmerica is a registered trademark of the Virginia College Savings
Plan.(SM)
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 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 purchased with greater than 60 days to maturity
with 60 days or less remaining to maturity is determined based on the
market value on the 61st day. The ability of the issuers of the debt
securities held by the fund to meet their obligations may be affected
by economic developments in a specific industry, state or region.
Securities and other assets for which representative market quotations
are not readily available 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; significant events occurring after the close of
trading in the security; and changes in overall market conditions.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are recorded by the fund as of the date the trades are
executed with brokers. Realized gains and losses from security
transactions are determined based on the specific identified cost of
the securities. Dividend income is recognized on the ex-dividend date
and interest income is recognized on an accrual basis. Market
discounts, premiums and original issue discounts on fixed-income
securities are amortized daily over the expected life of the security.
CLASS ALLOCATIONS - Income, fees and expenses (other than
class-specific fees and expenses) and realized and unrealized gains and
losses are allocated daily among the various share classes based on
their relative net assets. Class-specific fees and expenses, such as
distribution, administrative and shareholder services, are charged
directly to the respective share class.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and
distributions paid to shareholders are recorded on the ex-dividend
date.
NON-U.S. CURRENCY TRANSLATION - Assets and liabilities, including
investment securities, denominated in non-U.S. currencies are
translated into U.S. dollars at the exchange rates in effect at the end
of the reporting period. 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.
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 income is recorded net of non-U.S. taxes paid.
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;
deferred expenses; cost of investments sold; and net capital losses. The fiscal
year in which amounts are distributed may differ from the year in which the net
investment income and net realized gains are recorded by the fund. As of
February 28, 2005, the cost of investment securities for federal income tax
purposes was $82,034,609,000.
As of February 28, 2005, the components of distributable earnings on a tax basis
were as follows (dollars in thousands):
Undistributed net investment income and currency gains $88,812
Accumulated short-term capital losses (378,703)
Undistributed long-term capital gains 341,108
Gross unrealized appreciation on investment securities 18,312,021
Gross unrealized depreciation on investment securities (2,174,871)
Net unrealized appreciation on investment securities 16,137,150
Accumulated short-term capital losses above include a capital loss carryforward
of $405,043,000 expiring in 2011. The capital loss carryforward will be used to
offset any capital gains realized by the fund in the current year or in
subsequent years through the expiration date. The fund will not make
distributions from capital gains while capital loss carryforwards remain. During
the six months ended February 28, 2005, the fund realized, on a tax basis, a net
capital gain of $367,448,000.
Ordinary income distributions paid to shareholders from net investment income
and currency gains were as follows (dollars in thousands):
SHARE CLASS SIX MONTHS ENDED FEBRUARY 28, 2005 YEAR ENDED AUGUST 31, 2004
Class A $ 196,961 $ 11,834
Class B - -
Class C - -
Class F 33,311 4,078
Class 529-A 3,700 640
Class 529-B - -
Class 529-C - -
Class 529-E 20 -
Class 529-F 69 9
Class R-1 - -
Class R-2 - -
Class R-3 9,434 1,019
Class R-4 24,656 1,782
Class R-5 13,498 944
Total $ 281,649 $ 20,306
(*) Amount less than one thousand.
4. FEES AND TRANSACTIONS WITH RELATED PARTIES
Capital Research and Management Company ("CRMC"), the fund's investment adviser,
is the parent company of American Funds Service Company ("AFS"), the fund's
transfer agent, and American Funds Distributors, Inc. ("AFD"), the principal
underwriter of the fund's shares.
INVESTMENT ADVISORY SERVICES - The Investment Advisory and Service Agreement
with CRMC provides for monthly fees accrued daily. These fees are based on a
declining series of annual rates beginning with 0.50% on the first $1 billion of
daily net assets and decreasing to 0.260% on such assets in excess of $89
billion. During the six months ended February 28, 2005, CRMC reduced investment
advisory services fees by $6,388,000. As a result, the fee shown on the
accompanying financial statements of $127,767,000, which was equivalent to an
annualized rate of 0.287%, was reduced to $121,379,000, or 0.273% 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. The plans
provide for annual expenses, based on a percentage of average daily net
assets, ranging from 0.25% to 1.00% as noted on the following page. In
some cases, the Board of Directors has approved expense amounts lower
than plan limits. 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 for
providing certain shareholder services. Expenses in excess of these
amounts, up to approved limits, may be used to compensate dealers and
wholesalers for shares sold.
For classes A and 529-A, the Board of Directors has also approved the
reimbursement of dealer and wholesaler commissions paid by AFD for
certain shares sold without a sales charge. Each class reimburses AFD
for amounts billed within the prior 15 months but only to the extent
that the overall annual expense limit of 0.25% is not exceeded. As of
February 28, 2005, unreimbursed expenses subject to reimbursement
totaled $12,418,000 for Class A. There were no unreimbursed expenses
subject to reimbursement for Class 529-A.
SHARE CLASS CURRENTLY APPROVED LIMITS PLAN LIMITS
Class A 0.25% 0.25%
Class 529-A 0.25 0.50
Classes B and 529-B 1.00 1.00
Classes C, 529-C and R-1 1.00 1.00
Class R-2 0.75 1.00
Classes 529-E and R-3 0.50 0.75
Classes F, 529-F and R-4 0.25 0.50
TRANSFER AGENT SERVICES - The fund has a transfer agent agreement with
AFS for classes A and B. Under this agreement, these share classes
compensate AFS for transfer agent services including shareholder
recordkeeping, communications and transaction processing. AFS is also
compensated for certain transfer agent services provided to all other
share classes from the administrative services fees paid to CRMC
described below.
ADMINISTRATIVE SERVICES - The fund has an administrative services
agreement with CRMC to provide transfer agent and other related
shareholder services for all classes of shares other than classes A and
B. Each relevant class pays CRMC annual fees of 0.15% (0.10% for Class
R-5) based on its respective average daily net assets. Each relevant
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. During the six months ended February 28,
2005, CRMC agreed to pay a portion of these fees for Class R-2. For the
six months ended February 28, 2005, the total fees paid by CRMC were
$216,000 for Class R-2. 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 in 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 February 28, 2005, were as follows (dollars in
thousands):
`
SHARE CLASS DISTRIBUTION TRANSFER AGENT ADMINISTRATIVE SERVICES
SERVICES SERVICES
CRMC TRANSFER AGENT COMMONWEALTH OF
ADMINISTRATIVE SERVICES VIRGINIA
SERVICES ADMINISTRATIVE
SERVICES
Class A $70,978 $34,081 Not applicable Not applicable Not applicable
Class B 26,043 3,095 Not applicable Not applicable Not applicable
Class C 27,034 Included $4,055 $714 Not applicable
in
administrative
services
Class F 10,507 Included 6,304 483 Not applicable
in
administrative
services
Class 529-A 702 Included 717 87 $ 478
in
administrative
services
Class 529-B 1,256 Included 188 60 125
in
administrative
services
Class 529-C 1,580 Included 237 63 158
in
administrative
services
Class 529-E 131 Included 39 5 26
in
administrative
services
Class 529-F 25 Included 15 2 10
in
administrative
services
Class R-1 367 Included 55 15 Not applicable
in
administrative
services
Class R-2 3,917 Included 783 1,611 Not applicable
in
administrative
services
Class R-3 9,964 Included 2,989 470 Not applicable
in
administrative
services
Class R-4 5,906 Included 3,544 51 Not applicable
in
administrative
services
Class R-5 Not applicable Included 854 17 Not applicable
in
administrative
services
Total $158,410 $37,176 $19,780 $3,578 $797
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 $296,000, shown on the accompanying
financial statements, includes $165,000 in current fees (either paid in cash or
deferred) and a net increase of $131,000 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):
Reinvestments of dividends
Share class Sales(1) and distributions
Amount Shares Amount Shares
Six months ended February 28, 2005
Class A $5,934,087 225,715 $ 188,687 7,093
Class B 435,035 17,104 - -
Class C 933,438 36,640 - -
Class F 2,069,706 79,111 28,586 1,080
Class 529-A 213,184 8,105 3,700 140
Class 529-B 41,612 1,619 - -
Class 529-C 65,205 2,528 - -
Class 529-E 12,053 461 20 1
Class 529-F 6,294 242 69 3
Class R-1 39,783 1,537 - -
Class R-2 387,352 15,011 - -
Class R-3 1,714,389 65,861 9,421 358
Class R-4 2,636,925 101,616 24,612 930
Class R-5 1,044,538 39,861 13,271 499
Total net increase
(decrease) $15,533,601 595,411 $ 268,366 10,104
Year ended August 31,2004
Class A $13,997,627 571,535 $ 11,368 479
Class B 1,361,390 57,197 - -
Class C 2,272,540 95,568 - -
Class F 4,026,826 165,027 3,553 150
Class 529-A 396,211 16,197 640 27
Class 529-B 94,663 3,934 - -
Class 529-C 135,685 5,626 - -
Class 529-E 21,280 876 - -
Class 529-F 10,194 420 9 -*
Class R-1 45,559 1,891 - -
Class R-2 652,292 26,868 - -
Class R-3 2,767,267 113,203 1,018 43
Class R-4 3,346,408 136,236 1,779 75
Class R-5 1,025,373 41,161 907 38
Total net increase
(decrease) $30,153,315 1,235,739 $ 19,274 812
Share class Repurchases(1) Net increase
Amount Shares Amount Shares
Six months ended February 28, 2005
Class A $ (3,886,004) (147,781) $2,236,770 85,027
Class B (218,334) (8,575) 216,701 8,529
Class C (326,780) (12,831) 606,658 23,809
Class F (560,059) (21,455) 1,538,233 58,736
Class 529-A (21,206) (806) 195,678 7,439
Class 529-B (3,518) (136) 38,094 1,483
Class 529-C (8,671) (336) 56,534 2,192
Class 529-E (1,472) (56) 10,601 406
Class 529-F (553) (21) 5,810 224
Class R-1 (9,651) (374) 30,132 1,163
Class R-2 (108,576) (4,210) 278,776 10,801
Class R-3 (402,868) (15,444) 1,320,942 50,775
Class R-4 (496,087) (18,948) 2,165,450 83,598
Class R-5 (221,248) (8,444) 836,561 31,916
Total net increase
(decrease) $ (6,265,027) (239,417) $9,536,940 366,098
Year ended August 31,2004
Class A $ (6,407,752) (261,061) $7,601,243 310,953
Class B (337,205) (14,098) 1,024,185 43,099
Class C (430,258) (18,004) 1,842,282 77,564
Class F (824,402) (33,759) 3,205,977 131,418
Class 529-A (23,708) (964) 373,143 15,260
Class 529-B (4,482) (185) 90,181 3,749
Class 529-C (8,634) (359) 127,051 5,267
Class 529-E (1,490) (62) 19,790 814
Class 529-F (487) (20) 9,716 400
Class R-1 (13,212) (547) 32,347 1,344
Class R-2 (118,354) (4,877) 533,938 21,991
Class R-3 (399,246) (16,323) 2,369,039 96,923
Class R-4 (439,571) (17,816) 2,908,616 118,495
Class R-5 (154,671) (6,245) 871,609 34,954
Total net increase
(decrease) $ (9,163,472) (374,320) $21,009,117 862,231
(*) Amount less than one thousand.
(1) Includes exchanges between share classes of the fund.
6. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding short-term
securities, of $18,111,984,000 and $9,800,959,000, respectively, during the six
months ended February 28, 2005.
The fund receives a reduction in its custodian fee equal to the amount of
interest calculated on certain cash balances held at the custodian bank. For the
six months ended February 28, 2005, the custodian fee of $2,775,000, shown on
the accompanying financial statements, includes $58,000 that was offset by this
reduction, rather than paid in cash.
Financial highlights(1)
Income (loss) from investment operations(2)
Net
Net asset gains (losses)
value, Net on securities Total from
beginning investment (both realized investment
of period income (loss) and unrealized) operations
Class A:
Six months ended 2/28/2005(5) $24.43 $.11 $2.82 $2.93
Year ended 8/31/2004 22.49 .05 1.90 1.95
Year ended 8/31/2003 18.57 .06 3.88 3.94
Year ended 8/31/2002 23.20 .04 (4.62) (4.58)
Year ended 8/31/2001 35.91 .15 (8.62) (8.47)
Year ended 8/31/2000 26.20 .18 12.77 12.95
Class B:
Six months ended 2/28/2005(5) 23.73 .01 2.74 2.75
Year ended 8/31/2004 22.00 (.13) 1.86 1.73
Year ended 8/31/2003 18.28 (.09) 3.81 3.72
Year ended 8/31/2002 22.98 (.13) (4.57) (4.70)
Year ended 8/31/2001 35.79 (.07) (8.56) (8.63)
Period from 3/15/2000 to 8/31/2000 32.44 -(7) 3.35 3.35
Class C:
Six months ended 2/28/2005(5) 23.68 -(7) 2.73 2.73
Year ended 8/31/2004 21.96 (.14) 1.86 1.72
Year ended 8/31/2003 18.26 (.10) 3.80 3.70
Year ended 8/31/2002 22.95 (.13) (4.56) (4.69)
Period from 3/15/2001 to 8/31/2001 23.78 (.08) (.75) (.83)
Class F:
Six months ended 2/28/2005(5) 24.33 .10 2.81 2.91
Year ended 8/31/2004 22.41 .04 1.90 1.94
Year ended 8/31/2003 18.53 .05 3.87 3.92
Year ended 8/31/2002 23.19 .03 (4.61) (4.58)
Period from 3/15/2001 to 8/31/2001 23.92 .02 (.75) (.73)
Class 529-A:
Six months ended 2/28/2005(5) 24.38 .10 2.81 2.91
Year ended 8/31/2004 22.47 .04 1.90 1.94
Year ended 8/31/2003 18.56 .07 3.88 3.95
Period from 2/15/2002 to 8/31/2002 22.62 .01 (4.07) (4.06)
Class 529-B:
Six months ended 2/28/2005(5) 23.91 (.01) 2.75 2.74
Year ended 8/31/2004 22.20 (.18) 1.89 1.71
Year ended 8/31/2003 18.48 (.12) 3.84 3.72
Period from 2/15/2002 to 8/31/2002 22.62 (.08) (4.06) (4.14)
Class 529-C:
Six months ended 2/28/2005(5) 23.91 (.01) 2.76 2.75
Year ended 8/31/2004 22.21 (.17) 1.87 1.70
Year ended 8/31/2003 18.48 (.12) 3.85 3.73
Period from 2/15/2002 to 8/31/2002 22.62 (.08) (4.06) (4.14)
Class 529-E:
Six months ended 2/28/2005(5) 24.22 .06 2.79 2.85
Year ended 8/31/2004 22.37 (.05) 1.90 1.85
Year ended 8/31/2003 18.55 (.02) 3.87 3.85
Period from 3/1/2002 to 8/31/2002 22.95 (.02) (4.38) (4.40)
Class 529-F:
Six months ended 2/28/2005(5) 24.34 .09 2.81 2.90
Year ended 8/31/2004 22.45 .02 1.89 1.91
Period from 9/16/2002 to 8/31/2003 18.39 .03 4.06 4.09
Financial highlights
Income (loss) from investment operations(2)
Net
Net asset gains(losses)
value, Net on securities Total from
beginning investment (both realized investment
of period income (loss) and unrealized) operations
Class R-1:
Six months ended 2/28/2005(5) $24.02 $ -(7) $2.77 $2.77
Year ended 8/31/2004 22.28 (.15) 1.89 1.74
Year ended 8/31/2003 18.53 (.11) 3.87 3.76
Period from 6/6/2002 to 8/31/2002 21.08 (.03) (2.52) (2.55)
Class R-2:
Six months ended 2/28/2005(5) 24.01 .01 2.76 2.77
Year ended 8/31/2004 22.26 (.14) 1.89 1.75
Year ended 8/31/2003 18.53 (.10) 3.86 3.76
Period from 5/21/2002 to 8/31/2002 22.11 (.03) (3.55) (3.58)
Class R-3:
Six months ended 2/28/2005(5) 24.18 .07 2.79 2.86
Year ended 8/31/2004 22.35 (.03) 1.88 1.85
Year ended 8/31/2003 18.55 (.02) 3.86 3.84
Period from 5/21/2002 to 8/31/2002 22.11 (.01) (3.55) (3.56)
Class R-4:
Six months ended 2/28/2005(5) 24.35 .10 2.81 2.91
Year ended 8/31/2004 22.44 .05 1.90 1.95
Year ended 8/31/2003 18.57 .05 3.87 3.92
Period from 5/28/2002 to 8/31/2002 22.01 .01 (3.45) (3.44)
Class R-5:
Six months ended 2/28/2005(5) 24.50 .15 2.82 2.97
Year ended 8/31/2004 22.52 .12 1.91 2.03
Year ended 8/31/2003 18.58 .11 3.89 4.00
Period from 5/15/2002 to 8/31/2002 22.40 .03 (3.85) (3.82)
Dividends and distributions
Dividends
(from net Distributions Total Net asset
investment (from capital dividends and value, end Total
income) gains) distributions of period return(3)
Class A:
Six months ended 2/28/2005(5) $(.09) $- $(.09) $27.27 12.00%
Year ended 8/31/2004 (.01) - (.01) 24.43 8.65
Year ended 8/31/2003 (.02) - (.02) 22.49 21.23
Year ended 8/31/2002 (.05) - (.05) 18.57 (19.80)
Year ended 8/31/2001 (.15) (4.09) (4.24) 23.20 (25.28)
Year ended 8/31/2000 (.04) (3.20) (3.24) 35.91 53.51
Class B:
Six months ended 2/28/2005(5) - - - 26.48 11.59
Year ended 8/31/2004 - - - 23.73 7.86
Year ended 8/31/2003 - - - 22.00 20.35
Year ended 8/31/2002 - - - 18.28 (20.45)
Year ended 8/31/2001 (.09) (4.09) (4.18) 22.98 (25.83)
Period from 3/15/2000 to 8/31/2000 - - - 35.79 10.33
Class C:
Six months ended 2/28/2005(5) - - - 26.41 11.53
Year ended 8/31/2004 - - - 23.68 7.83
Year ended 8/31/2003 - - - 21.96 20.26
Year ended 8/31/2002 - - - 18.26 (20.44)
Period from 3/15/2001 to 8/31/2001 - - - 22.95 (3.49)
Class F:
Six months ended 2/28/2005(5) (.10) - (.10) 27.14 11.98
Year ended 8/31/2004 (.02) - (.02) 24.33 8.66
Year ended 8/31/2003 (.04) - (.04) 22.41 21.22
Year ended 8/31/2002 (.08) - (.08) 18.53 (19.83)
Period from 3/15/2001 to 8/31/2001 - - - 23.19 (3.05)
Class 529-A:
Six months ended 2/28/2005(5) (.10) - (.10) 27.19 11.95
Year ended 8/31/2004 (.03) - (.03) 24.38 8.63
Year ended 8/31/2003 (.04) - (.04) 22.47 21.35
Period from 2/15/2002 to 8/31/2002 - - - 18.56 (17.95)
Class 529-B:
Six months ended 2/28/2005(5) - - - 26.65 11.46
Year ended 8/31/2004 - - - 23.91 7.70
Year ended 8/31/2003 - - - 22.20 20.13
Period from 2/15/2002 to 8/31/2002 - - - 18.48 (18.30)
Class 529-C:
Six months ended 2/28/2005(5) - - - 26.66 11.50
Year ended 8/31/2004 - - - 23.91 7.65
Year ended 8/31/2003 - - - 22.21 20.18
Period from 2/15/2002 to 8/31/2002 - - - 18.48 (18.30)
Class 529-E:
Six months ended 2/28/2005(5) (.01) - (.01) 27.06 11.77
Year ended 8/31/2004 - - - 24.22 8.27
Year ended 8/31/2003 (.03) - (.03) 22.37 20.78
Period from 3/1/2002 to 8/31/2002 - - - 18.55 (19.17)
Class 529-F:
Six months ended 2/28/2005(5) (.09) - (.09) 27.15 11.92
Year ended 8/31/2004 (.02) - (.02) 24.34 8.53
Period from 9/16/2002 to 8/31/2003 (.03) - (.03) 22.45 22.27
Dividends and distributions
Dividends
(from net Distributions Total Net asset
investment (from capital dividends and value, end Total
income) gains) distributions of period return
Class R-1:
Six months ended 2/28/2005(5) $ - $ - $ - $26.79 11.53%
Year ended 8/31/2004 - - - 24.02 7.81
Year ended 8/31/2003 (.01) - (.01) 22.28 20.29
Period from 6/6/2002 to 8/31/2002 - - - 18.53 (12.10)
Class R-2:
Six months ended 2/28/2005(5) - - - 26.78 11.54
Year ended 8/31/2004 - - - 24.01 7.86
Year ended 8/31/2003 (.03) - (.03) 22.26 20.29
Period from 5/21/2002 to 8/31/2002 - - - 18.53 (16.19)
Class R-3:
Six months ended 2/28/2005(5) (.06) - (.06) 26.98 11.83
Year ended 8/31/2004 (.02) - (.02) 24.18 8.28
Year ended 8/31/2003 (.04) - (.04) 22.35 20.75
Period from 5/21/2002 to 8/31/2002 - - - 18.55 (16.10)
Class R-4:
Six months ended 2/28/2005(5) (.13) - (.13) 27.13 11.94
Year ended 8/31/2004 (.04) - (.04) 24.35 8.70
Year ended 8/31/2003 (.05) - (.05) 22.44 21.19
Period from 5/28/2002 to 8/31/2002 - - - 18.57 (15.63)
Class R-5:
Six months ended 2/28/2005(5) (.19) - (.19) 27.28 12.15
Year ended 8/31/2004 (.05) - (.05) 24.50 9.02
Year ended 8/31/2003 (.06) - (.06) 22.52 21.61
Period from 5/15/2002 to 8/31/2002 - - - 18.58 (17.05)
Ratio of expenses Ratio of expenses
to average to average Ratio of
Net assets, net assets net assets net income (loss)
end of period before reimbursements/ after reimbursements/ to average
(in millions) waivers waivers(4) net assets
Class A:
Six months ended 2/28/2005(5) $60,838 .69%(6) .67%(6) .84%(6)
Year ended 8/31/2004 52,432 .70 .70 .20
Year ended 8/31/2003 41,267 .76 .76 .28
Year ended 8/31/2002 30,644 .75 .75 .18
Year ended 8/31/2001 34,312 .71 .71 .56
Year ended 8/31/2000 40,671 .70 .70 .58
Class B:
Six months ended 2/28/2005(5) 5,568 1.44(6) 1.42(6) .09(6)
Year ended 8/31/2004 4,788 1.44 1.44 (.55)
Year ended 8/31/2003 3,490 1.53 1.53 (.49)
Year ended 8/31/2002 2,170 1.52 1.52 (.60)
Year ended 8/31/2001 1,437 1.48 1.48 (.29)
Period from 3/15/2000 to 8/31/2000 424 .66 .66 (.01)
Class C:
Six months ended 2/28/2005(5) 5,999 1.5(6) 1.48(6) .03(6)
Year ended 8/31/2004 4,814 1.50 1.50 (.60)
Year ended 8/31/2003 2,762 1.55 1.55 (.52)
Year ended 8/31/2002 1,370 1.55 1.55 (.63)
Period from 3/15/2001 to 8/31/2001 385 .80 .80 (.34)
Class F:
Six months ended 2/28/2005(5) 9,666 .72(6) .71(6) .80(6)
Year ended 8/31/2004 7,237 .72 .72 .17
Year ended 8/31/2003 3,721 .75 .75 .28
Year ended 8/31/2002 1,576 .77 .77 .15
Period from 3/15/2001 to 8/31/2001 350 .38 .38 .08
Class 529-A:
Six months ended 2/28/2005(5) 1,112 .73(6) .72(6) .78(6)
Year ended 8/31/2004 815 .74 .74 .16
Year ended 8/31/2003 409 .67 .67 .36
Period from 2/15/2002 to 8/31/2002 144 .86(6) .86(6) .07(6)
Class 529-B:
Six months ended 2/28/2005(5) 283 1.62(6) 1.60(6) (.10)(6)
Year ended 8/31/2004 219 1.62 1.62 (.72)
Year ended 8/31/2003 120 1.66 1.66 (.63)
Period from 2/15/2002 to 8/31/2002 39 1.66(6) 1.66(6) (.74)(6)
Class 529-C:
Six months ended 2/28/2005(5) 363 1.61(6) 1.59(6) (.09)(6)
Year ended 8/31/2004 273 1.61 1.61 (.71)
Year ended 8/31/2003 136 1.65 1.65 (.61)
Period from 2/15/2002 to 8/31/2002 45 1.64(6) 1.64(6) (.72)(6)
Class 529-E:
Six months ended 2/28/2005(5) 60 1.09(6) 1.07(6) .43(6)
Year ended 8/31/2004 44 1.09 1.09 (.19)
Year ended 8/31/2003 23 1.11 1.11 (.08)
Period from 3/1/2002 to 8/31/2002 6 .56 .56 (.10)
Class 529-F:
Six months ended 2/28/2005(5) 23 .84(6) .82(6) .68(6)
Year ended 8/31/2004 16 .84 .84 .07
Period from 9/16/2002 to 8/31/2003 5 .86(6) .86(6) .16(6)
Financial highlights
Ratio of expenses Ratio of expenses
to average to average Ratio of
Net assets, net assets net assets net income (loss)
end of period before reimbursements/ after reimbursements/ to average
(in millions) waivers waivers(4) net assets
Class R-1:
Six months ended 2/28/2005(5) $95 1.50%(6) 1.49%(6) 0.01%(6)
Year ended 8/31/2004 57 1.51 1.51 (.61)
Year ended 8/31/2003 23 1.59 1.53 (.53)
Period from 6/6/2002 to 8/31/2002 1 .46 .36 (.16)
Class R-2:
Six months ended 2/28/2005(5) 1,245 1.52(6) 1.46(6) .04(6)
Year ended 8/31/2004 857 1.60 1.48 (.57)
Year ended 8/31/2003 305 1.82 1.49 (.49)
Period from 5/21/2002 to 8/31/2002 8 .49 .42 (.17)
Class R-3:
Six months ended 2/28/2005(5) 4,881 .98(6) .97 (6) .53(6)
Year ended 8/31/2004 3,148 1.05 1.05 (.14)
Year ended 8/31/2003 743 1.11 1.11 (.11)
Period from 5/21/2002 to 8/31/2002 11 .33 .31 (.06)
Class R-4:
Six months ended 2/28/2005(5) 5,967 .71 (6) .70(6) .81(6)
Year ended 8/31/2004 3,320 .71 .71 .20
Year ended 8/31/2003 401 .74 .74 .26
Period from 5/28/2002 to 8/31/2002 3 .25 .20 .05
Class R-5:
Six months ended 2/28/2005(5) 2,183 .41(6) .40(6) 1.11(6)
Year ended 8/31/2004 1,179 .41 .41 .50
Year ended 8/31/2003 297 .43 .43 .56
Period from 5/15/2002 to 8/31/2002 95 .13 .13 .14
Six months ended
February 28, Year ended August 31
2005(5) 2004 2003 2002 2001
Portfolio turnover rate for all classes of shares 12% 19% 25% 30% 36%
(1) Based on operations for the period 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 the six months ended 2/28/2005,
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 one cent.
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
(September 1, 2004 through February 28, 2005).
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 0.50% to 3.00% 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 shareholders, 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
0.50% to 3.00% 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 ENDING EXPENSES ANNUALIZED
ACCOUNT ACCOUNT PAID DURING EXPENSE RATIO
VALUE VALUE PERIOD(1)
9/1/2004 2/28/2005
Class A -- actual return $ 1,000.00 1,120.01 $3.52 .67%
Class A -- assumed 5% return 1,000.00 1,021.47 3.36 .67
Class B -- actual return 1,000.00 1,115.89 7.45 1.42
Class B -- assumed 5% return 1,000.00 1,017.75 7.10 1.42
Class C -- actual return 1,000.00 1,115.29 7.76 1.48
Class C -- assumed 5% return 1,000.00 1,017.46 7.40 1.48
Class F -- actual return 1,000.00 1,119.80 3.73 .71
Class F -- assumed 5% return 1,000.00 1,021.27 3.56 .71
Class 529-A -- actual return 1,000.00 1,119.49 3.78 .72
Class 529-A -- assumed 5% return 1,000.00 1,021.22 3.61 .72
Class 529-B -- actual return 1,000.00 1,114.61 8.39 1.60
Class 529-B -- assumed 5% return 1,000.00 1,016.86 8.00 1.60
Class 529-C -- actual return 1,000.00 1,115.03 8.34 1.59
Class 529-C -- assumed 5% return 1,000.00 1,016.91 7.95 1.59
Class 529-E -- actual return 1,000.00 1,117.69 5.62 1.07
Class 529-E -- assumed 5% return 1,000.00 1,019.49 5.36 1.07
Class 529-F -- actual return 1,000.00 1,119.23 4.31 .82
Class 529-F -- assumed 5% return 1,000.00 1,020.73 4.11 .82
Class R-1 -- actual return 1,000.00 1,115.32 7.81 1.49
Class R-1 -- assumed 5% return 1,000.00 1,017.41 7.45 1.49
Class R-2 -- actual return 1,000.00 1,115.36 7.66 1.46
Class R-2 -- assumed 5% return 1,000.00 1,017.55 7.30 1.46
Class R-3 -- actual return 1,000.00 1,118.35 5.09 .97
Class R-3 -- assumed 5% return 1,000.00 1,019.98 4.86 .97
Class R-4 -- actual return 1,000.00 1,119.41 3.68 .70
Class R-4 -- assumed 5% return 1,000.00 1,021.32 3.51 .70
Class R-5 -- actual return 1,000.00 1,121.45 2.10 .40
Class R-5 -- assumed 5% return 1,000.00 1,022.81 2.01 .40
(1) 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 (181), and divided by 365 (to reflect the one-half year period).
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.
Returns for periods ended March 31, 2005
(the most recent calendar quarter): 1 year 5 years Life of class
Class B shares
Reflecting applicable contingent deferred sales charge (CDSC), maximum of 5%,
payable only if shares
are sold within six years of purchase +0.42% -2.89% -1.63%(1)
Not reflecting CDSC +5.42% -2.55% -1.46%(1)
Class C shares
Reflecting CDSC, maximum of 1%, payable only if
shares are sold within one year of purchase +4.39% -- +2.25%(2)
Not reflecting CDSC +5.39% -- +2.25%(2)
Class F shares(3)
Not reflecting annual asset-based fee charged by
sponsoring firm +6.18% -- +3.07%(2)
Class 529-A shares
Reflecting 5.75% maximum sales charge +0.08% -- +3.84%(4)
Not reflecting maximum sales charge +6.21% -- +5.83%(4)
Class 529-B shares
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase +0.25% -- +4.01%(4)
Not reflecting CDSC +5.25% -- +4.89%(4)
Class 529-C shares
Reflecting applicable CDSC, maximum of 1%, payable
only if shares are sold within one year of purchase +4.25% -- +4.90%(4)
Not reflecting CDSC +5.25% -- +4.90%(4)
Class 529-E shares(3) +5.79% -- +5.05%(5)
Class 529-F shares(3)
Not reflecting annual asset-based fee charged by
sponsoring firm +6.05% -- +16.19%(6)
The fund's investment adviser is waiving a portion of its management fees.
Results shown reflect the waiver. Please see the Financial Highlights table on
page 22 for details.
(1) Average annual total return from March 15, 2000, when Class B shares were
first sold.
(2) Average annual total return from March 15, 2001, when Class C and Class F
shares were first sold.
(3) These shares are sold without any initial or contingent deferred sales
charge.
(4) Average annual total return from February 15, 2002, when Class 529-A, Class
529-B and Class 529-C shares were first sold.
(5) Average annual total return from March 1, 2002, when Class 529-E shares
were first sold.
(6) Average annual total return from September 16, 2002, when Class 529-F
shares were first sold.
OFFICE OF THE FUND
One Market
Steuart Tower, Suite 1800
Mailing address: P.O. Box 7650
San Francisco, CA 94120-7650
INVESTMENT ADVISER
Capital Research and Management Company
333 South Hope Street
Los Angeles, CA 90071-1406
135 South State College Boulevard
Brea, CA 92821-5823
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 25065 Santa Ana, CA 92799-5065
P.O. Box 659522 San Antonio, TX 78265-9522
P.O. Box 6007 Indianapolis, IN 46206-6007
P.O. Box 2280 Norfolk, VA 23501-2280
CUSTODIAN OF ASSETS
State Street Bank and Trust Company
225 Franklin Street
Boston, MA 02105-1713
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
515 South Flower Street
Los Angeles, CA 90071-2228
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
Two California Plaza
350 South Grand Avenue
Los Angeles, CA 90071-3462
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, CA 90071-1406
INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES
AND EXPENSES OF THE AMERICAN FUNDS AND COLLEGEAMERICA. THIS AND OTHER IMPORTANT
INFORMATION IS CONTAINED IN THE FUND'S PROSPECTUS AND THE COLLEGEAMERICA PROGRAM
DESCRIPTION, 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 WWW.SEC.GOV, ON THE AMERICAN
FUNDS WEBSITE OR UPON REQUEST BY CALLING AFS. THE FUND'S PROXY VOTING RECORD FOR
THE 12 MONTHS ENDED JUNE 30, 2004, IS ALSO AVAILABLE ON THE SEC AND AMERICAN
FUNDS WEBSITES.
A complete February 28, 2005, portfolio of The Growth Fund of America's
investments is available free of charge on the SEC website or upon request by
calling AFS.
The Growth Fund of America 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. Forms
N-Q are available free of charge on the SEC website or upon request by calling
AFS. You may also review or, for a fee, copy the forms at the SEC's Public
Reference Room in Washington, D.C. (800/SEC-0330).
This report is for the information of shareholders of The Growth Fund of
America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the fund. If used as
sales material after June 30, 2005, this report must be accompanied by an
American Funds statistical update for the most recently completed calendar
quarter.
[logo - AMERICAN FUNDS(R)]
The right choice for the long term(R)
WHAT MAKES AMERICAN FUNDS DIFFERENT?
For more than 70 years, we have followed a consistent philosophy that we firmly
believe is in our investors' best interests. The range of opportunities offered
by our family of just 29 carefully conceived, broadly diversified funds has
attracted over 30 million shareholder accounts.
OUR UNIQUE COMBINATION OF STRENGTHS INCLUDES THESE FIVE FACTORS:
o A LONG-TERM, VALUE-ORIENTED APPROACH
Rather than follow fads, we pursue a consistent strategy, focusing on each
investment's long-term potential.
o AN UNPARALLELED GLOBAL RESEARCH EFFORT
American Funds draws on one of the industry's most globally integrated
research networks.
o THE MULTIPLE PORTFOLIO COUNSELOR SYSTEM
Every American Fund is divided among a number of portfolio counselors. Each
takes responsibility for a portion independently, within each fund's
objectives; in most cases, research analysts manage a portion as well. Over
time this method has contributed to a consistency of results and continuity
of management.
o EXPERIENCED INVESTMENT PROFESSIONALS
The recent market decline was not the first for most of the portfolio
counselors who serve the American Funds. More than half of them were in the
investment business before the sharp market decline of 1987.
o A COMMITMENT TO LOW OPERATING EXPENSES
American Funds' operating expenses are among the lowest in the mutual fund
industry. Our portfolio turnover rates are low as well, keeping transaction
costs and tax consequences contained.
29 MUTUAL FUNDS, CONSISTENT PHILOSOPHY, CONSISTENT RESULTS
o GROWTH FUNDS
AMCAP Fund(R)
EuroPacific Growth Fund(R)
> THE GROWTH FUND OF AMERICA(R)
The New Economy Fund(R)
New Perspective Fund(R)
New World FundSM
SMALLCAP World Fund(R)
o GROWTH-AND-INCOME FUNDS
American Mutual Fund(R)
Capital World Growth and Income FundSM
Fundamental InvestorsSM
The Investment Company of America(R)
Washington Mutual Investors FundSM
o EQUITY-INCOME FUNDS
Capital Income Builder(R)
The Income Fund of America(R)
o BALANCED FUND
American Balanced Fund(R)
o BOND FUNDS
American High-Income TrustSM
The Bond Fund of AmericaSM
Capital World Bond Fund(R)
Intermediate Bond Fund of America(R)
U.S. Government Securities FundSM
o TAX-EXEMPT BOND FUNDS
American High-Income Municipal Bond Fund(R)
Limited Term Tax-Exempt Bond Fund of AmericaSM
The Tax-Exempt Bond Fund of America(R)
STATE-SPECIFIC TAX-EXEMPT FUNDS
The Tax-Exempt Fund of California(R)
The Tax-Exempt Fund of Maryland(R)
The Tax-Exempt Fund of Virginia(R)
o MONEY MARKET FUNDS
The Cash Management Trust of America(R)
The Tax-Exempt Money Fund of AmericaSM
The U.S. Treasury Money Fund of AmericaSM
THE CAPITAL GROUP COMPANIES
American Funds
Capital Research and Management
Capital International
Capital Guardian
Capital Bank and Trust
Lit. No. MFGESR-905-0405P
Litho in USA AGD/GRS/8084-S1936
Printed on recycled paper
ITEM 2 - Code of Ethics
Not applicable for filing of Semiannual Reports to Shareholders.
ITEM 3 - Audit Committee Financial Expert
Not applicable for filing of Semiannual Reports to Shareholders.
ITEM 4 - Principal Accountant Fees and Services
Not applicable for filing of Semiannual Reports to Shareholders.
ITEM 5 - Audit Committee of Listed Registrants
Not applicable.
ITEM 6 - Schedule of Investments
[logo - AMERICAN FUNDS (r)]
THE GROWTH FUND OF AMERICA
INVESTMENT PORTFOLIO
February 28, 2005
unaudited
Market value
Common stocks -- 90.18% Shares (000)
INFORMATION TECHNOLOGY -- 18.46%
Microsoft Corp. 73,225,000 $1,843,806
Texas Instruments Inc. 43,120,200 1,141,392
Google Inc., Class A(1) 5,272,100 991,102
Taiwan Semiconductor Manufacturing Co. Ltd. 534,756,085 946,623
Applied Materials, Inc.(1) 47,165,000 825,387
First Data Corp. 19,440,000 797,429
Corning Inc.(1) 66,145,000 758,683
Maxim Integrated Products, Inc.(2) 17,490,000 752,420
Linear Technology Corp. 15,175,000 592,735
Xilinx, Inc.(2) 17,850,000 539,070
Samsung Electronics Co., Ltd. 983,800 516,397
Analog Devices, Inc. 13,216,666 485,316
Yahoo! Inc.(1) 14,450,554 466,319
Cisco Systems, Inc.(1) 24,364,500 424,430
Altera Corp.(1,2) 19,900,000 412,726
KLA-Tencor Corp.(1) 8,100,000 400,221
Microchip Technology Inc.(2) 12,755,000 350,252
Advanced Micro Devices, Inc.(1,2) 19,800,000 345,510
Micron Technology, Inc.(1) 28,510,000 327,865
Automatic Data Processing, Inc. 7,500,000 322,200
Sun Microsystems, Inc.(1) 71,546,700 301,927
Intuit Inc.(1) 6,334,900 271,134
International Business Machines Corp. 2,515,000 232,839
EMC Corp.(1) 17,700,000 224,082
CDW Corp. 3,500,000 201,145
Murata Manufacturing Co., Ltd. 3,524,000 194,916
Flextronics International Ltd.(1) 14,075,000 187,901
AU Optronics Corp. 115,400,000 180,510
Rohm Co., Ltd. 1,757,000 176,877
ASML Holding NV (New York registered)(1) 9,625,000 176,330
Teradyne, Inc.(1,2) 11,150,000 171,933
Cadence Design Systems, Inc.(1) 12,400,000 170,872
Ceridian Corp.(1,2) 8,540,900 155,871
Solectron Corp.(1) 30,470,600 150,829
Sabre Holdings Corp., Class A(2) 7,062,811 148,884
Fujitsu Ltd. 22,260,000 146,554
QUALCOMM Inc.(1) 4,000,000 144,440
Hirose Electric Co., Ltd. 1,265,000 140,421
VeriSign, Inc.(1) 4,752,500 130,314
Nortel Networks Corp.(1) 44,300,000 118,724
Hewlett-Packard Co. 5,638,500 117,281
Dell Inc.(1) 2,857,800 114,569
Hoya Corp. 1,051,000 114,152
Hon Hai Precision Industry Co., Ltd. 22,884,974 106,433
Mediatek Incorporation 12,416,759 93,116
Compuware Corp.(1) 13,000,000 87,880
Freescale Semiconductor, Inc., Class A(1) 4,500,000 85,050
Lucent Technologies Inc.(1) 27,500,000 84,425
SINA Corp.(1,2) 2,552,000 72,809
Paychex, Inc. 2,273,019 72,577
National Instruments Corp. 2,250,000 64,260
Agere Systems Inc., Class A(1) 36,821,247 60,387
Oracle Corp.(1) 4,475,000 57,772
Alcatel (ADR)(1) 4,000,000 51,960
Jabil Circuit, Inc.(1) 1,640,000 42,164
Sanmina-SCI Corp.(1) 4,570,000 25,363
Motorola, Inc. 1,276,500 19,990
Cypress Semiconductor Corp.(1) 300,000 4,224
VIA Technologies, Inc.(1) 417,384 242
18,141,040
CONSUMER DISCRETIONARY -- 16.68%
Time Warner Inc.(1) 118,900,000 2,048,647
Lowe's Companies, Inc. 30,820,400 1,811,623
Target Corp. 34,085,000 1,732,200
Comcast Corp., Class A(1) 23,969,387 780,204
Comcast Corp., Class A, special nonvoting stock(1) 10,050,000 320,193
IAC/InterActiveCorp(1) 42,750,000 961,875
Carnival Corp., units 15,050,000 818,419
Liberty Media Corp., Class A(1) 80,375,000 815,002
News Corp. Inc., Class A 43,007,500 715,645
Clear Channel Communications, Inc. 21,085,000 701,709
Best Buy Co., Inc. 12,540,800 677,454
Starbucks Corp.(1) 11,329,200 586,966
Limited Brands, Inc.(2) 20,700,000 492,246
Harrah's Entertainment, Inc.(2) 6,100,000 400,099
Gap, Inc. 18,703,700 398,950
International Game Technology 9,200,000 280,232
Liberty Media International, Inc., Class A(1) 5,576,386 241,067
UnitedGlobalCom, Inc., Class A(1) 25,200,000 234,360
Michaels Stores, Inc. 6,700,000 213,663
Brinker International, Inc.(1,2) 5,000,000 189,300
Walt Disney Co. 6,472,000 180,828
Fox Entertainment Group, Inc., Class A(1) 4,545,000 151,348
Harley-Davidson Motor Co. 2,407,200 148,958
Ross Stores, Inc. 5,225,000 146,300
Toys "R" Us, Inc.(1) 6,000,000 137,220
Yamada Denki Co., Ltd. 2,640,000 131,368
Magna International Inc., Class A 1,701,000 125,789
A. H. Belo Corp., Class A 4,850,000 114,460
Toyota Motor Corp. 2,730,000 106,326
Interpublic Group of Companies, Inc.(1) 7,700,000 101,178
Outback Steakhouse, Inc. 2,159,500 96,983
Lennar Corp., Class A 1,500,000 91,230
TJX Companies, Inc. 3,000,000 73,260
Dana Corp. 5,000,000 72,100
Gentex Corp. 2,000,000 67,820
Big Lots, Inc.(1) 5,000,000 58,350
CarMax, Inc.(1) 1,547,000 51,051
Viacom Inc., Class B, nonvoting 1,175,000 41,007
Viacom Inc., Class A 250,000 8,822
McDonald's Corp. 1,300,000 43,004
MGM Mirage, Inc.(1) 386,100 28,637
Circuit City Stores, Inc. 80,000 1,250
16,397,143
ENERGY -- 12.80%
Schlumberger Ltd. 14,698,300 1,108,987
Burlington Resources Inc.(2) 19,760,000 980,689
Devon Energy Corp. 19,280,000 902,111
Transocean Inc.(1) 12,649,900 613,267
Canadian Natural Resources, Ltd. 10,640,000 604,881
Suncor Energy Inc. 15,325,323 593,796
EOG Resources, Inc.(2) 6,215,000 566,311
Halliburton Co. 11,905,000 523,463
LUKoil Holding (ADR) 3,320,000 463,970
Petro-Canada 8,150,000 451,559
BJ Services Co.(2) 8,975,000 448,391
Baker Hughes Inc. 9,241,900 436,957
Noble Corp. 6,675,000 380,942
Apache Corp. 5,936,160 373,266
ENSCO International Inc.(2) 8,235,000 331,706
Diamond Offshore Drilling, Inc. 6,425,000 318,037
BG Group PLC 40,291,737 316,168
Nexen Inc. 6,251,609 316,105
MOL Magyar Olaj- es Gazipari Rt. 3,325,000 292,771
Cross Timbers Oil Co. 6,150,000 279,948
Valero Energy Corp. 3,750,000 267,150
Occidental Petroleum Corp. 3,000,000 210,810
Shell Canada Ltd. 2,980,000 206,780
Rowan Companies, Inc.(2) 6,450,000 204,336
Premcor Inc. 3,560,000 195,373
Weatherford International Ltd.(1) 3,000,000 178,830
Pogo Producing Co.(2) 3,644,400 177,154
Imperial Oil Ltd. 2,013,822 145,503
Norsk Hydro ASA (ADR) 1,567,800 135,317
Unocal Corp. 2,345,000 126,864
Exxon Mobil Corp. 1,900,000 120,289
Anadarko Petroleum Corp. 1,500,000 115,290
Repsol International Finance BV 4,000,000 108,968
Murphy Oil Corp. 878,000 87,835
12,583,824
HEALTH CARE -- 11.36%
Sanofi-Aventis 19,232,638 1,539,188
WellPoint, Inc.(1) 9,487,400 1,158,032
Forest Laboratories, Inc.(1,2) 20,311,800 867,314
Guidant Corp. 10,062,200 738,465
Amgen Inc.(1) 7,660,000 471,933
Biogen Idec Inc.(1) 11,686,000 451,664
Medtronic, Inc. 8,080,000 421,130
Cardinal Health, Inc. 7,188,400 420,881
Eli Lilly and Co. 7,000,000 392,000
Express Scripts, Inc.(1,2) 4,710,000 354,616
AstraZeneca PLC (Sweden) 7,468,000 295,096
AstraZeneca PLC (ADR) 1,072,000 42,601
Roche Holding AG 3,130,000 330,339
Gilead Sciences, Inc.(1) 9,500,000 328,225
Genentech, Inc.(1) 6,500,000 306,800
Aetna Inc. 2,020,000 294,960
Sepracor Inc.(1) 4,250,000 273,997
AmerisourceBergen Corp. 3,650,000 218,635
Allergan, Inc. 2,725,000 204,865
Novo Nordisk A/S, Class B 3,630,000 201,670
American Pharmaceutical Partners, Inc.(1,2) 3,800,000 198,588
Merck & Co., Inc. 6,000,000 190,200
Elan Corp., PLC (ADR)(1) 16,718,000 133,744
Medco Health Solutions, Inc.(1) 2,330,000 103,499
Abbott Laboratories 2,250,000 103,477
Caremark Rx, Inc.(1) 2,700,000 103,356
AMERIGROUP Corp.(1) 2,440,000 97,258
Amylin Pharmaceuticals, Inc.(1) 4,500,000 96,390
Applera Corp. - Applied Biosystems Group 4,100,000 84,214
Applera Corp. - Celera Genomics Group(1) 528,800 5,875
Lincare Holdings Inc.(1) 2,200,000 89,276
Affymetrix, Inc.(1) 2,000,000 85,460
Celgene Corp.(1) 3,100,000 84,862
Pfizer Inc 3,125,000 82,156
OSI Pharmaceuticals, Inc.(1) 1,500,000 81,945
Boston Scientific Corp.(1) 2,320,000 75,771
St. Jude Medical, Inc.(1) 1,876,200 73,359
Chugai Pharmaceutical Co., Ltd. 3,944,900 57,682
ImClone Systems Inc.(1) 750,000 33,195
IDEXX Laboratories, Inc.(1) 510,000 28,279
ICOS Corp.(1) 1,000,000 22,120
Millennium Pharmaceuticals, Inc.(1) 1,825,000 15,695
Schering-Plough Corp. 278,200 5,272
Andrx Group(1) 122,500 2,750
11,166,834
INDUSTRIALS -- 8.43%
Tyco International Ltd. 35,675,000 1,194,399
United Parcel Service, Inc., Class B 12,219,300 946,874
General Electric Co. 26,740,000 941,248
3M Co. 6,940,000 582,544
Illinois Tool Works Inc. 6,450,000 578,887
Boeing Co. 10,400,000 571,688
General Dynamics Corp. 5,120,700 539,466
Southwest Airlines Co. 36,079,877 499,706
Ryanair Holdings PLC (ADR)(1) 6,243,900 272,921
Raytheon Co. 6,700,000 256,208
FedEx Corp. 2,550,000 249,339
Burlington Northern Santa Fe Corp. 3,950,000 198,567
Robert Half International Inc. 6,610,000 192,814
Caterpillar Inc. 2,000,000 190,100
Northrop Grumman Corp. 3,182,000 168,328
Monster Worldwide Inc.(1) 5,775,000 166,609
Lockheed Martin Corp. 2,800,000 165,816
Allied Waste Industries, Inc.(1) 14,000,000 115,080
Manpower Inc. 2,500,000 109,250
Mitsubishi Corp. 7,400,000 100,909
Deere & Co. 1,200,000 85,332
JetBlue Airways Corp.(1) 4,144,000 74,675
Bombardier Inc., Class B 24,271,050 52,168
United Rentals, Inc.(1) 1,927,600 36,470
8,289,398
FINANCIALS -- 6.53%
Freddie Mac 17,102,300 1,060,343
American International Group, Inc. 15,350,200 1,025,393
Fannie Mae 16,111,400 941,872
Citigroup Inc. 8,160,000 389,395
UFJ Holdings, Inc.(1) 63,984 353,902
XL Capital Ltd., Class A 4,665,000 349,875
Mitsubishi Estate Co., Ltd. 25,294,000 307,885
Mizuho Financial Group, Inc. 57,000 278,182
Bank of New York Co., Inc. 9,195,000 278,149
SunTrust Banks, Inc. 3,521,800 255,119
Capital One Financial Corp. 2,500,000 191,700
Wells Fargo & Co. 2,730,000 162,107
Berkshire Hathaway Inc., Class A(1) 1,650 148,830
Marsh & McLennan Companies, Inc. 4,413,700 144,107
Chubb Corp. 1,500,000 118,665
Sumitomo Realty & Development Co., Ltd. 7,472,000 95,599
American Express Co. 1,700,000 92,055
Aon Corp. 3,218,600 78,888
Protective Life Corp. 1,500,000 59,940
City National Corp. 675,000 46,204
Mitsui Sumitomo Insurance Co., Ltd. 4,176,000 37,124
6,415,334
CONSUMER STAPLES -- 5.41%
Altria Group, Inc. 26,700,000 1,752,855
Walgreen Co. 21,060,000 902,000
Coca-Cola Co. 15,365,000 657,622
Avon Products, Inc. 11,439,000 489,246
PepsiCo, Inc. 6,275,000 337,972
Anheuser-Busch Companies, Inc. 6,980,000 331,201
Kerry Group PLC, Class A 8,965,824 219,181
Procter & Gamble Co. 3,520,000 186,877
Wm. Wrigley Jr. Co. 1,630,000 108,493
Wal-Mart Stores, Inc. 2,050,000 105,801
Whole Foods Market, Inc. 974,800 100,229
General Mills, Inc. 1,235,000 64,677
SYSCO Corp. 1,750,000 60,235
5,316,389
MATERIALS -- 4.20%
USX-U.S. Steel Group(2) 7,375,000 459,905
Barrick Gold Corp. 16,860,000 419,814
Rio Tinto PLC 11,875,000 418,838
Freeport-McMoRan Copper & Gold Inc., Class B 9,596,000 401,305
Inco Ltd.(1) 9,280,000 385,120
BHP Billiton Ltd. 19,516,661 295,664
Newmont Mining Corp. 6,366,900 286,638
Phelps Dodge Corp. 2,500,000 266,125
CRH PLC 8,733,400 244,743
CONSOL Energy Inc.(3) 3,700,000 169,608
CONSOL Energy Inc. 800,000 36,672
Potash Corp. of Saskatchewan Inc. 1,904,000 169,113
Cia. Vale do Rio Doce, ordinary nominative (ADR) 3,700,100 129,504
Newcrest Mining Ltd. 8,700,000 118,784
Nitto Denko Corp. 2,111,000 115,347
Placer Dome Inc. 5,800,000 99,732
Sealed Air Corp.(1) 1,580,000 82,587
Dow Chemical Co. 500,000 27,575
4,127,074
TELECOMMUNICATION SERVICES -- 3.85%
Vodafone Group PLC (ADR) 47,085,000 1,237,865
Vodafone Group PLC 78,465,000 205,489
mm02 PLC(1) 218,743,200 508,740
Qwest Communications International Inc.(1,2) 117,900,000 459,810
Sprint Corp. - FON Group 17,084,750 404,567
Telefonica, SA (ADR) 5,000,000 275,750
Telefonica, SA 6,000,000 110,505
Telephone and Data Systems, Inc. 1,993,100 174,396
KDDI Corp. 30,000 154,163
France Telecom, SA 4,600,000 138,966
Telenor ASA 11,900,000 109,864
3,780,115
UTILITIES -- 0.13%
Questar Corp. 2,475,000 131,225
MISCELLANEOUS -- 2.33%
Other common stocks in initial period of acquisition 2,287,316
Total common stocks (cost: $72,538,356,000) 88,635,692
Market value
Rights & warrants -- 0.00% Shares (000)
TELECOMMUNICATION SERVICES -- 0.00%
Broadview Networks Holdings, Inc., Series E, warrants, expire 2012(1,2,3,4) 634,116 --
Broadview Networks Holdings, Inc., Series E, warrants, expire 2012(1,2,3,4) 96,812 --
Total rights & warrants (cost: $0) --
Convertible securities -- 0.11%
FINANCIALS -- 0.11%
SMFG Finance (Cayman) Ltd. 2.25% mandatorily exchangeable preferred 2005, (Japan) 4,572,000,000 $101,394
TELECOMMUNICATION SERVICES -- 0.00%
Broadview Networks Holdings, Inc., Series E, convertible preferred(1,2,3,4) 1,588,972 550
INFORMATION TECHNOLOGY -- 0.00%
ProAct Technologies Corp., Series C, convertible preferred(1,3,4) 6,500,000 505
Total convertible securities (cost: $63,549,000) 102,449
Principal amount
Bonds & notes -- 0.14% (000)
TELECOMMUNICATION SERVICES -- 0.13%
Qwest Capital Funding, Inc. 7.75% 2031(2) 53,800 49,563
U S WEST Capital Funding, Inc. 6.875% 2028(2) 36,000 30,870
Qwest Capital Funding, Inc. 7.625% 2021(2) 25,000 23,250
U S WEST Capital Funding, Inc. 6.50% 2018(2) 25,250 22,094
125,777
CONSUMER DISCRETIONARY -- 0.01%
AOL Time Warner Inc. 5.625% 2005 10,795 10,838
Total bonds & notes (cost: $122,974,000) 136,615
Principal amount Market value
Short-term securities -- 9.46% (000) (000)
U.S. Treasury Bills 1.915%-2.636% due 3/3-5/26/2005 $2,558,200 $2,551,850
Freddie Mac 2.372%-2.61% due 3/14-4/22/2005 648,014 646,691
Federal Home Loan Bank 2.36%-2.585% due 3/11-4/29/2005 601,952 600,253
International Bank for Reconstruction and Development 2.30%-2.495% due 3/7-4/25/2005 372,400 371,887
Park Avenue Receivables Co., LLC 2.58%-2.59% due 4/5-4/8/2005(3) 138,200 137,834
Preferred Receivables Funding Corp. 2.53%-2.57% due 3/22-4/1/2005(3) 125,000 124,770
Wells Fargo & Co. 2.42%-2.57% due 3/4-4/18/2005 250,000 249,995
Clipper Receivables Co., LLC 2.50%-2.60% due 3/11-4/11/2005(3) 247,604 247,079
Ranger Funding Co. LLC 2.52%-2.53% due 3/16/2005(3) 158,344 158,166
Bank of America Corp. 2.53%-2.59% due 3/28-4/8/2005 81,000 80,817
Coca-Cola Co. 2.32%-2.54% due 3/1-4/4/2005 234,000 233,768
Edison Asset Securitization LLC 2.40%-2.60% due 3/9-4/13/2005(3) 123,300 123,101
General Electric Capital Services, Inc. 2.48%-2.52% due 3/18-3/23/2005 100,000 99,858
CAFCO, LLC 2.41%-2.68% due 3/2-4/26/2005(3) 156,400 155,933
Ciesco LLC 2.70% due 5/2/2005(3) 31,400 31,251
Citicorp 2.35% due 3/1/2005 25,000 24,998
Federal Farm Credit Banks 2.04%-2.68% due 3/8-5/26/2005 210,500 209,876
Variable Funding Capital Corp 2.49%-2.60% due 3/16-4/13/2005(3) 206,000 205,530
Fannie Mae 2.42%-2.50% due 3/21-4/8/2005 200,000 199,666
New Center Asset Trust Plus 2.43%-2.72% due 3/18-5/3/2005 140,000 139,640
New Center Asset Trust 2.41% due 3/16/2005 40,000 39,956
Gannett Co. 2.44%-2.58% due 3/7-4/18/2005(3) 172,400 172,160
Wal-Mart Stores Inc. 2.41%-2.49% due 3/8-4/12/2005(3) 155,764 155,509
Tenessee Valley Authority 2.32%-2.505% due 3/3-4/7/2005 152,600 152,472
Exxon Asset Management Co. 2.48%-2.49% due 3/18-4/1/2005(3) 100,000 99,828
Exxon Project Investment Corp. 2.48% due 4/6/2005(3) 50,000 49,872
Procter & Gamble Co. 2.35%-2.57% due 3/9-4/26/2005(3) 142,600 142,251
DuPont (E.I.) de Nemours & Co. 2.30%-2.52% due 3/2-3/30/2005 142,400 142,212
BellSouth Corp. 2.49%-2.57% due 3/11-4/8/2005(3) 125,800 125,570
FCAR Owner Trust I 2.37%-2.50% due 3/4-3/18/2005 125,000 124,903
Three Pillars Funding, LLC 2.44%-2.53% due 3/10-3/17/2005(3) 112,669 112,567
Pfizer Inc 2.12%-2.61% due 3/3-4/15/2005(3) 111,300 110,986
Abbott Laboratories Inc. 2.47%-2.59% due 3/1-4/12/2005(3) 101,875 101,659
International Business Machines Corp. 2.32%-2.44% due 3/8-3/22/2005 100,000 99,899
PepsiCo Inc. 2.47%-2.50% due 3/9-3/28/2005(3) 99,820 99,709
Hewlett-Packard Co. 2.65%-2.66% due 4/27-4/29/2005(3) 100,000 99,576
Caterpillar Financial Services Corp. 2.34%-2.53% due 3/7-4/11/2005 92,000 91,922
Private Export Funding Corp. 2.10%-2.56% due 3/14-4/19/2005(3) 72,200 72,073
Triple-A One Funding Corp. 2.45%-2.61% due 3/22-4/25/2005(3) 64,944 64,752
American Express Credit Corp. 2.52%-2.64% due 4/4-4/27/2005 60,000 59,794
SBC Communications Inc. 2.35%-2.48% due 3/7-3/22/2005(3) 52,098 52,048
Anheuser-Busch Cos. Inc. 2.37% due 3/10/2005(3) 50,000 49,967
ChevronTexaco Funding Corp. 2.47% due 3/30/2005 50,000 49,897
HSBC USA Inc. 2.59% due 4/8/2005 50,000 49,863
AIG Funding, Inc. 2.65% due 4/27/2005 50,000 49,795
NetJets Inc. 2.38%-2.39% due 3/14-3/18/2005(3) 45,000 44,951
Harley-Davidson Funding Corp. 2.48%-2.50% due 3/24-4/4/2005(3) 40,100 40,020
Harvard University 2.32% due 3/4/2005 40,000 39,990
USAA Capital Corp. 2.48%-2.67% due 3/4-5/16/2005 39,400 39,245
Medtronic Inc. 2.44% due 3/4/2005(3) 38,800 38,789
3M Co. 2.61% due 4/20/2005 35,000 34,878
Pitney Bowes Inc. 2.47% due 3/8/2005(3) 25,000 24,986
Colgate-Palmolive Co. 2.48% due 3/16/2005(3) 25,000 24,972
First Data Corp. 2.50% due 3/16/2005 25,000 24,972
Hershey Foods Corp. 2.42% due 3/2/2005(3) 22,000 21,997
TOTAL SHORT-TERM SECURITIES (COST: $9,297,077,000) $ 9,297,003
TOTAL INVESTMENT SECURITIES (COST: $82,021,956,000) 98,171,759
OTHER ASSETS LESS LIABILITIES 111,296
NET ASSETS $98,283,055
"Miscellaneous" securities include holdings in their initial period of
acquisition that have not previously been publicly disclosed.
(1) Security did not produce income during the last 12 months.
(2) Represents an affiliated company as defined under the Investment Act
of 1940.
(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 was
$3,058,569,000, which represented 3.11% of the net assets of the fund.
(4) Valued under fair value procedures adopted by authority of the Board
of Directors.
ADR = American Depositary Receipts
ITEM 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 8 - Portfolio Managers of Closed-End Management Investment Companies
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers
Not applicable to this Registrant, insofar as the Registrant is not a closed-end
management investment company.
ITEM 10 - Submission of Matters to a Vote of Security Holders
There have been no material changes to the procedures by which shareholders may
recommend nominees to the Registrant's Board of Directors since the Registrant
last submitted a proxy statement to its shareholders. The procedures are as
follows. The Registrant has a nominating committee comprised solely of persons
who are not considered ``interested persons'' of the Registrant within the
meaning of the Investment Company Act of 1940, as amended. The committee
periodically reviews such issues as the Board's composition, responsibilities,
committees, compensation and other relevant issues, and recommends any
appropriate changes to the full Board of Directors. While the committee normally
is able to identify from its own resources an ample number of qualified
candidates, it will consider shareholder suggestions of persons to be considered
as nominees to fill future vacancies on the Board. Such suggestions must be sent
in writing to the nominating committee of the Registrant, c/o the Registrant's
Secretary, and must be accompanied by complete biographical and occupational
data on the prospective nominee, along with a written consent of the prospective
nominee for consideration of his or her name by the nominating committee.
ITEM 11 - Controls and Procedures
(a) The Registrant's Principal Executive Officer and Principal Financial
Officer have concluded, based on their evaluation of the Registrant's
disclosure controls and procedures (as such term is defined in Rule 30a-3
under the Investment Company Act of 1940), that such controls and
procedures are adequate and reasonably designed to achieve the purposes
described in paragraph (c) of such rule.
(b) There were no changes in the Registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940) that occurred during the Registrant's second fiscal quarter of the
period covered by this report that has materially affected, or is
reasonably likely to materially affect, the Registrant's internal control
over financial reporting.
ITEM 12 - Exhibits
(a)(1)The Code of Ethics - not applicable for filing of Semiannual 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.
THE GROWTH FUND OF AMERICA, INC.
By /s/ James F. Rothenberg
- -------------------------------------
James F. Rothenberg, Chairman and PEO
Date: May 6, 2005
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/ James F. Rothenberg
- -------------------------------------
James F. Rothenberg, Chairman and PEO
Date: May 6, 2005
By /s/ Sheryl F. Johnson
- ------------------------------------
Sheryl F. Johnson, Treasurer and PFO
Date: May 6, 2005