N-Q 1 eupac_nq.htm N-Q

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM N-Q

Quarterly Schedule of Portfolio Holdings of

Registered Management Investment Company

 

Investment Company Act File Number: 811-03734

 

 

 

EuroPacific Growth Fund

(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: March 31

 

Date of reporting period: June 30, 2014

 

 

 

 

 

Michael W. Stockton

EuroPacific Growth Fund

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

 

 

Copies to:

Mark D. Perlow

K&L Gates LLP

Four Embarcadero Center, Suite 1200

San Francisco, California 94111

(Counsel for the Registrant)

 
 

ITEM 1 – Schedule of Investments

 

AF_ColorLogo_Letterhead

 

 

 

 

EuroPacific Growth Fund

Investment Portfolio

June 30, 2014

 

 

unaudited

Common stocks  91.11%    
    Value
Financials  20.58% Shares (000)
     
Prudential PLC 93,463,984 $2,144,987
Barclays PLC 538,697,757 1,961,861
HDFC Bank Ltd. 81,545,429 1,113,869
HDFC Bank Ltd. (ADR) 7,663,015 358,782
AIA Group Ltd. 234,591,200 1,178,949
Housing Development Finance Corp. Ltd.1 62,275,570 1,027,710
AXA SA 39,998,157 956,001
Mizuho Financial Group, Inc. 442,850,000 909,262
Commerzbank AG, non-registered shares1 56,740,233 891,932
Société Générale 15,528,896 813,443
Bankia, SA1 389,975,203 756,134
ORIX Corp. 44,952,700 745,033
Axis Bank Ltd. 23,224,864 740,960
ICICI Bank Ltd. 31,318,399 738,452
UniCredit SpA 84,464,437 707,244
Fairfax Financial Holdings Ltd.2 826,291 390,425
Fairfax Financial Holdings Ltd.(CAD denominated)2 525,000 249,066
Bank of Ireland1,2 1,824,159,953 614,643
ING Groep NV, depository receipts1 39,990,000 561,820
Investment AB Kinnevik, Class B 12,801,828 545,676
Brookfield Asset Management Inc., Class A 12,150,993 534,887
Sumitomo Mitsui Financial Group, Inc. 12,025,000 503,767
Credit Suisse Group AG1 17,134,374 489,995
Sberbank of Russia (ADR) 21,040,000 213,135
Sberbank of Russia (ADR) 13,760,875 139,948
Sberbank of Russia (GDR)3 11,167,686 113,129
BNP Paribas SA 6,668,298 452,390
Banco Santander, SA1 43,215,656 451,507
Kotak Mahindra Bank Ltd. 30,067,137 441,696
Eurobank Ergasias SA1,2 800,389,651 404,414
Hana Financial Group Inc. 10,668,630 395,408
China Overseas Land & Investment Ltd. 147,592,000 358,011
Henderson Land Development Co. Ltd. 58,365,116 341,512
Banca Monte dei Paschi di Siena SPA1 169,519,543 328,454
Banca Monte dei Paschi di Siena SPA1 2,050,000 3,972
UBS AG1 16,549,020 303,623
Sun Hung Kai Properties Ltd. 22,052,550 302,460
Sampo Oyj, Class A 5,976,655 302,393
Deutsche Bank AG 8,318,333 292,674
Link Real Estate Investment Trust 45,863,471 246,762
Ping An Insurance (Group) Co. of China, Ltd., Class H 28,674,000 221,981
Aegon NV 24,562,997 214,384
Grupo Financiero Santander México, SAB de CV, Class B (ADR) 14,998,300 199,177
Resona Holdings, Inc. 27,900,000 162,489
Svenska Handelsbanken AB, Class A 3,269,000 160,036
Common stocks    
    Value
Financials  (continued) Shares (000)
     
HSBC Holdings PLC 15,045,000 $       152,578
Siam Commercial Bank PCL 25,212,200 130,897
Cheung Kong (Holdings) Ltd. 6,310,000 111,946
Daito Trust Construction Co., Ltd. 897,700 105,539
Royal Bank of Scotland Group PLC1 17,920,061 100,715
Toronto-Dominion Bank 1,900,000 97,809
Assicurazioni Generali SpA 4,410,000 96,678
Shinsei Bank, Ltd. 42,327,000 95,262
Bancolombia SA (ADR) 1,530,000 88,434
MS&AD Insurance Group Holdings, Inc. 2,658,000 64,203
Daiwa Securities Group Inc. 7,200,000 62,331
Investor AB, Class B 1,557,614 58,444
Industrial and Commercial Bank of China Ltd., Class H 87,810,255 55,516
Itaú Unibanco Holding SA, preferred nominative (ADR) 3,653,053 52,531
Türkiye Garanti Bankasi AS 11,754,411 45,995
Kerry Properties Ltd. 9,888,500 34,576
Global Logistic Properties Ltd. 3,607,000 7,810
Banco Santander (Brasil) SA, units (ADR) 532,100 3,682
Ayala Land, Inc., preference shares4 481,283,600 1,103
    26,350,502
     
Consumer discretionary  12.89%    
     
Volkswagen AG, nonvoting preferred 4,205,986 1,104,625
Liberty Global PLC, Class A1 12,011,000 531,126
Liberty Global PLC, Class C1 11,364,070 480,814
Toyota Motor Corp. 16,326,200 980,491
Rakuten, Inc. 65,173,300 842,129
Honda Motor Co., Ltd. 22,404,250 782,230
Industria de Diseño Textil, SA 4,984,000 767,084
Altice SA1 8,021,952 558,889
Sands China Ltd. 93,499,200 706,335
Naspers Ltd., Class N 5,580,917 657,011
Li & Fung Ltd. 397,500,100 588,783
Ctrip.com International, Ltd. (ADR)1,2 8,414,000 538,833
Publicis Groupe SA 5,422,969 459,946
Tata Motors Ltd. 55,477,262 397,828
Renault SA 3,922,922 354,690
Galaxy Entertainment Group Ltd. 44,110,000 352,862
adidas AG 3,474,000 351,872
Kering SA 1,471,508 322,692
Carnival PLC 8,445,000 319,117
Numericable Group SA, non-registered shares1 5,188,179 309,032
Hyundai Mobis Co., Ltd. 1,014,500 284,758
JD.com, Inc., Class A (ADR)1 9,929,000 283,076
Fuji Media Holdings, Inc.2 15,354,000 266,749
Melco Crown Entertainment Ltd. (ADR) 7,314,000 261,183
Nokian Renkaat Oyj2 6,677,000 260,570
Hyundai Motor Co. 1,146,000 259,940
H & M Hennes & Mauritz AB, Class B 5,513,000 240,931
Burberry Group PLC 8,922,000 226,441
Paddy Power PLC2 3,204,000 210,587
Mahindra & Mahindra Ltd. 10,840,000 206,761
Hero MotoCorp Ltd. 4,638,863 203,205
ASOS PLC1 3,937,471 199,462
Common stocks    
    Value
Consumer discretionary  (continued) Shares (000)
     
Panasonic Corp. 16,201,400 $       197,350
LVMH Moët Hennessey-Louis Vuitton SA 980,000 188,942
Daimler AG 1,910,000 178,891
PT Astra International Tbk 284,194,000 174,400
Mr Price Group Ltd. 10,047,345 170,819
TOD’S SpA 1,224,376 155,834
Cie. Générale des Établissements Michelin 1,291,975 154,372
Techtronic Industries Co. Ltd. 43,815,000 140,483
Shangri-La Asia Ltd. 73,102,000 114,505
Bayerische Motoren Werke AG 829,435 105,193
Accor SA 1,740,000 90,514
Genting Singapore PLC 80,300,000 85,652
Nissan Motor Co., Ltd. 8,475,000 80,396
SEGA SAMMY HOLDINGS INC. 3,820,000 75,152
Kingfisher PLC 11,730,678 72,072
MGM China Holdings Ltd. 18,300,000 63,515
Kia Motors Corp. 994,660 55,641
Whitbread PLC 655,225 49,440
JCDecaux SA 1,216,000 45,373
    16,508,596
     
Information technology  12.69%    
     
Samsung Electronics Co. Ltd. 1,549,100 2,024,027
Samsung Electronics Co. Ltd., nonvoting preferred 48,800 51,125
Baidu, Inc., Class A (ADR)1 8,030,900 1,500,252
Tencent Holdings Ltd. 94,946,500 1,448,012
Taiwan Semiconductor Manufacturing Co. Ltd. 302,957,649 1,283,547
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR) 5,822,723 124,548
Murata Manufacturing Co., Ltd.2 14,705,400 1,376,259
Nintendo Co., Ltd.2 10,185,600 1,219,095
Naver Corp. 1,250,006 1,031,582
ASML Holding NV 8,496,811 791,275
Infineon Technologies AG2 56,470,947 705,906
ARM Holdings PLC 38,430,700 579,436
Yandex NV, Class A1 16,210,400 577,739
Gemalto NV2 4,804,745 498,041
Alcatel-Lucent1 133,730,799 477,571
Quanta Computer Inc. 116,646,530 339,884
Infosys Ltd. 5,794,000 313,620
NetEase, Inc. (ADR) 3,532,167 276,780
Hexagon AB, Class B 8,190,111 264,033
Samsung SDI Co., Ltd. 1,418,520 227,120
Trend Micro Inc. 6,270,000 206,411
Delta Electronics, Inc. 23,955,603 174,504
Mail.Ru Group Ltd. (GDR)1 3,787,000 133,492
Mail.Ru Group Ltd. (GDR)1,3 735,000 25,909
SAP AG 1,722,500 133,026
STMicroelectronics NV 13,780,000 123,629
OMRON Corp. 2,450,000 103,267
TDK Corp. 1,680,000 78,772
Spectris PLC 1,856,000 70,515
Keyence Corp. 159,500 69,583
ASM Pacific Technology Ltd. 2,389,000 26,108
    16,255,068
Common stocks    
    Value
Health care  12.17% Shares (000)
     
Novo Nordisk A/S, Class B 122,081,900 $    5,618,837
Bayer AG 21,088,384 2,978,593
Novartis AG 27,160,725 2,459,412
UCB SA2 11,334,824 959,649
Roche Holding AG 2,623,000 782,345
Teva Pharmaceutical Industries Ltd. (ADR) 12,810,300 671,516
Sysmex Corp.2 13,183,600 495,174
Fresenius SE & Co. KGaA 3,241,909 483,423
Grifols, SA, Class A, non-registered shares 5,467,614 298,836
Grifols, SA, Class B, non-registered shares 1,915,000 83,517
Grifols, SA, Class B (ADR) 1,770,739 78,001
Fresenius Medical Care AG & Co. KGaA 3,322,000 223,301
William Demant Holding A/S1 2,237,266 203,147
Merck KGaA 1,686,000 146,345
Sonova Holding AG 377,715 57,628
Sonic Healthcare Ltd. 2,948,000 48,174
    15,587,898
     
Industrials  8.39%    
     
Airbus Group NV 15,521,890 1,040,177
Rolls-Royce Holdings PLC1 51,682,535 945,525
Ryanair Holdings PLC (ADR)1 16,627,920 927,838
International Consolidated Airlines Group, SA (CDI)1,2 111,313,540 705,810
Deutsche Lufthansa AG2 27,172,815 583,417
ASSA ABLOY AB, Class B 9,770,500 497,186
KONE Oyj, Class B 10,988,000 458,598
Jardine Matheson Holdings Ltd. 7,280,400 431,801
Babcock International Group PLC 20,939,478 416,412
Geberit AG 1,055,000 370,344
SMC Corp. 1,348,700 360,923
Schneider Electric SE 3,690,342 347,406
Hutchison Whampoa Ltd. 23,802,000 325,533
easyJet PLC 13,037,574 304,566
Mitsubishi Heavy Industries, Ltd. 45,041,000 280,992
Air France-KLM1,2 19,500,720 245,715
Siemens AG 1,850,000 244,328
Meggitt PLC 27,160,517 235,201
Bureau Veritas SA 8,354,000 231,871
VINCI SA 2,926,000 218,759
Komatsu Ltd. 9,200,000 213,597
Wolseley PLC 3,626,904 198,813
Marubeni Corp. 25,800,000 188,715
Canadian Pacific Railway Ltd. 824,000 149,278
FANUC CORP. 835,000 143,995
Kubota Corp. 9,800,000 138,915
China State Construction International Holdings Ltd. 77,638,000 136,235
Experian PLC 7,450,000 125,969
SGS SA 38,834 93,056
DP World Ltd. 3,487,145 68,697
ITOCHU Corp. 4,400,000 56,507
Andritz AG 555,000 32,074
Alstom SA 742,476 27,069
Nabtesco Corp. 111,700 2,470
    10,747,792
Common stocks    
    Value
Consumer staples  7.57% Shares (000)
     
Associated British Foods PLC 38,306,738 $  1,998,868
British American Tobacco PLC 25,170,999 1,498,240
Nestlé SA 15,566,799 1,205,953
Pernod Ricard SA 9,194,053 1,104,092
Alimentation Couche-Tard Inc., Class B 21,626,800 592,429
Japan Tobacco Inc. 15,147,100 552,176
SABMiller PLC 9,338,000 541,438
Seven & i Holdings Co., Ltd. 8,289,000 349,217
OJSC Magnit (GDR) 5,520,000 325,680
ITC Ltd. 58,045,737 313,705
Anheuser-Busch InBev NV 2,189,450 251,533
Wal-Mart de México, SAB de CV, Series V 65,671,436 175,650
Asahi Group Holdings, Ltd. 4,795,000 150,517
Shoprite Holdings Ltd. 9,506,643 137,661
Imperial Tobacco Group PLC 2,200,000 99,022
Hengan International Group Co. Ltd. 7,587,500 79,885
Orion Corp. 84,500 77,418
Unilever NV, depository receipts 1,493,000 65,328
PT Indofood Sukses Makmur Tbk 87,140,000 49,248
Charoen Pokphand Foods PCL 58,240,000 48,900
Treasury Wine Estates Ltd. 7,363,000 34,784
Kirin Holdings Co., Ltd. 1,825,000 26,356
Coca-Cola HBC AG (CDI)1 944,000 21,681
    9,699,781
     
Telecommunication services  3.97%    
     
SoftBank Corp. 35,063,300 2,610,754
MTN Group Ltd. 21,215,700 446,836
KDDI Corp. 4,954,000 302,164
China Telecom Corp. Ltd., Class H 555,080,000 271,438
China Unicom (Hong Kong) Ltd. 152,990,000 236,481
Reliance Communications Ltd. 91,597,000 222,806
Intouch Holdings PCL, nonvoting depository receipts 70,218,800 158,482
Intouch Holdings PCL 27,182,200 61,349
Iliad SA 657,500 198,745
TeliaSonera AB 22,175,000 161,993
Swisscom AG 191,000 111,029
Vodafone Group PLC 28,084,200 93,723
OJSC Mobile TeleSystems (ADR) 4,447,250 87,789
OJSC MegaFon (GDR)1,3 2,270,600 71,524
Axiata Group Bhd. 23,020,000 49,969
    5,085,082
     
Materials  3.69%    
     
Syngenta AG 1,963,315 731,262
First Quantum Minerals Ltd.2 29,972,181 640,987
Linde AG 2,164,239 460,230
Rio Tinto PLC 6,038,000 321,215
Chr. Hansen Holding A/S2 7,573,000 318,923
Amcor Ltd. 28,815,000 283,395
Anhui Conch Cement Co. Ltd., Class H 71,416,000 245,105
K+S AG 7,000,000 230,186
Grasim Industries Ltd. (GDR)4 1,915,953 109,281
Common stocks    
    Value
Materials  (continued) Shares (000)
     
Grasim Industries Ltd. 1,544,513 $       88,095
Fortescue Metals Group Ltd. 47,565,000 195,104
BASF SE 1,650,500 192,170
L’Air Liquide SA4 999,522 134,948
L’Air Liquide SA, bonus shares4 286,111 38,629
ArcelorMittal 9,028,000 133,881
Glencore PLC 23,100,000 128,701
LG Chem, Ltd. 410,800 120,179
Akzo Nobel NV 1,290,000 96,710
UltraTech Cement Ltd. 2,171,165 93,566
Impala Platinum Holdings Ltd. 6,177,600 62,084
Givaudan SA1 34,832 58,093
Koninklijke DSM NV 515,979 37,580
    4,720,324
     
Energy  2.55%    
     
BG Group PLC 33,293,000 703,674
Royal Dutch Shell PLC, Class A (EUR denominated) 4,573,000 189,357
Royal Dutch Shell PLC, Class B 2,785,000 121,182
Royal Dutch Shell PLC, Class A 2,110,000 87,333
Royal Dutch Shell PLC, Class B (ADR) 988,700 86,027
Royal Dutch Shell PLC, Class A (ADR) 1,000,000 82,370
Reliance Industries Ltd. 24,871,800 419,899
KunLun Energy Co. Ltd. 183,706,000 302,922
BP PLC 23,618,164 208,123
Pacific Rubiales Energy Corp. 8,086,800 164,305
OJSC Gazprom (ADR)1 18,750,000 163,406
TOTAL SA 2,100,000 151,771
Oil Search Ltd. 14,500,000 132,216
Enbridge Inc. 2,599,520 123,343
INPEX CORP. 6,600,000 100,331
Technip SA 754,308 82,516
CNOOC Ltd. 39,400,100 70,764
Eni SpA 2,568,000 70,257
    3,259,796
     
Utilities  1.78%    
     
Power Grid Corp. of India Ltd.2 296,023,422 685,119
China Resources Gas Group Ltd.2 118,420,000 372,813
Power Assets Holdings Ltd. 41,066,500 358,982
National Grid PLC 18,749,517 269,538
ENN Energy Holdings Ltd. 34,250,000 246,145
Cheung Kong Infrastructure Holdings Ltd. 21,780,000 150,204
PT Perusahaan Gas Negara (Persero) Tbk 258,300,000 121,470
Hong Kong and China Gas Co. Ltd. 31,986,963 69,996
    2,274,267
     
Miscellaneous  4.83%    
     
Other common stocks in initial period of acquisition   6,189,654
Total common stocks (cost: $74,903,111,000)   116,678,760
Rights & warrants  0.00%    
    Value
Miscellaneous  0.00%   (000)
     
Other rights & warrants in initial period of acquisition   $           2,394
Total rights & warrants (cost: $0)   2,394
Bonds, notes & other debt instruments  0.52%    
  Principal amount  
U.S. Treasury bonds & notes  0.52% (000)  
     
     
U.S. Treasury 0.25% 20155 $   392,300 392,814
U.S. Treasury 0.25% 2015 145,000 145,155
U.S. Treasury 0.25% 2015 135,000 135,179
    673,148
Total bonds, notes & other debt instruments (cost: $672,339,000)   673,148
     
Short-term securities  8.53%    
     
Federal Home Loan Bank 0.043%–0.16% due 7/2/2014–4/27/2015 3,796,824 3,796,271
Freddie Mac 0.07%–0.17% due 7/16/2014–6/16/2015 2,878,075 2,876,862
Fannie Mae 0.055%–0.15% due 7/29/2014–1/5/2015 1,329,000 1,328,794
Federal Farm Credit Banks 0.11%–0.16% due 7/7/2014–3/19/2015 295,000 294,933
Toronto-Dominion Holdings USA Inc. 0.11%–0.17% due 7/14/2014–9/8/20143 220,000 219,982
Mitsubishi UFJ Trust and Banking Corp. 0.17%–0.18% due 7/14/2014–7/21/20143 121,300 121,291
Bank of Tokyo-Mitsubishi UFJ, Ltd. 0.14%–0.17% due 7/9/2014–7/18/2014 75,600 75,596
Bank of Nova Scotia 0.155%–0.195% due 7/8/2014–8/21/2014 190,000 189,982
International Bank for Reconstruction and Development 0.095%–0.13% due 8/22/2014–1/2/2015 180,000 179,951
Nordea Bank AB 0.14%–0.215% due 7/2/2014–8/26/20143 170,600 170,577
Sumitomo Mitsui Banking Corp. 0.12%–0.21% due 7/8/2014–7/17/20143 170,500 170,491
U.S. Treasury Bills 0.123%–0.136%  due 8/21/2014–3/5/2015 152,900 152,883
Mizuho Funding LLC 0.18%–0.225% due 7/2/2014–7/25/20143 146,400 146,387
BNZ International Funding Ltd. 0.16%–0.205% due 9/22/2014–10/17/20143 100,000 99,948
National Australia Funding (Delaware) Inc. 0.125% due 7/21/20143 40,900 40,898
Commonwealth Bank of Australia 0.13%–0.14% due 8/26/2014–9/2/20143 113,400 113,375
Siemens Capital Co. LLC 0.09% due 7/24/20143 100,000 99,994
GlaxoSmithKline Finance PLC 0.12% due 8/5/20143 75,000 74,990
Kells Funding, LLC 0.20%–0.23% due 8/18/2014–10/3/20143 75,000 74,979
Coca-Cola Co. 0.14%–0.17% due 7/31/2014–10/16/20143 73,045 73,024
BASF AG 0.09% due 7/30/20143 68,000 67,996
Australia & New Zealand Banking Group, Ltd. 0.145%–0.16% due 9/15/2014–9/16/20143 65,200 65,174
KfW 0.10%–0.11% due 7/15/2014–7/23/20143 64,300 64,298
Nestlé Finance International Ltd. 0.12% due 7/7/2014 58,000 58,000
Total Capital Canada Ltd. 0.08% due 7/14/20143 53,000 52,998
Svenska Handelsbanken Inc. 0.155%–0.20% due 8/4/2014–10/22/20143 51,500 51,481
Standard Chartered Bank 0.19% due 8/19/20143 50,000 49,991
Export Development Canada 0.12% due 10/8/2014 50,000 49,986
Electricité de France 0.18% due 10/2/20143 50,000 49,971
Thunder Bay Funding, LLC 0.17% due 10/15/20143 40,052 40,027
Reckitt Benckiser Treasury Services PLC 0.25% due 12/10/20143 40,000 39,966
Canadian Imperial Bank of Commerce 0.16% due 7/31/2014 30,000 30,002
Total short-term securities (cost: $10,920,233,000)   10,921,098
Total investment securities (cost: $86,495,683,000)   128,275,400
Other assets less liabilities   (207,599)
Net assets   128,067,801

 

 

 

As permitted by U.S. Securities and Exchange Commission regulations, “Miscellaneous” securities include holdings in their first year of acquisition that have not previously been publicly disclosed.

 

 

Forward currency contracts

 

The fund has entered into forward currency contracts to sell currencies as shown in the following table. The average notional amount of open forward currency contracts was $2,917,181,000 over the prior 12-month period.

 

          Unrealized
          (depreciation)
      Contract amount appreciation
      Receive Deliver at 6/30/2014
  Settlement date Counterparty (000) (000) (000)
           
Sales:          
Australian dollars 7/18/2014 UBS AG  $36,258  A$39,300  $        (747)
Euros 7/9/2014 HSBC Bank $146,112  €106,365  461
Euros 7/10/2014 JPMorgan Chase $88,446  €65,000  (563)
Euros 7/16/2014 UBS AG  $40,064  €29,560  (415)
Euros 7/16/2014 HSBC Bank $68,158  €50,000  (312)
Euros 7/23/2014 Bank of America, N.A.  $216,875  €160,000  (2,234)
Euros 7/30/2014 Citibank                                          $76,115  €55,900  (439)
Japanese yen 7/10/2014 Bank of New York Mellon $26,597  ¥2,750,000  (327)
Japanese yen 7/11/2014 Bank of America, N.A.  $160,338  ¥16,300,000  (577)
Japanese yen 7/11/2014 JPMorgan Chase $64,805  ¥6,686,950  (1,118)
Japanese yen 7/14/2014 HSBC Bank $572,536  ¥58,258,446  (2,611)
Japanese yen 7/15/2014 Barclays Bank PLC  $410,003  ¥41,957,500  (4,219)
Japanese yen 7/22/2014 Barclays Bank PLC  $323,626  ¥33,042,500  (2,602)
Japanese yen 7/31/2014 Bank of America, N.A.  $64,407  ¥6,545,000  (217)
Swiss francs 7/14/2014 Citibank                                          $145,687  CHF130,280  (1,241)
           $(17,161)

 

Investments in affiliates

 

A company is 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. Further details on these holdings and related transactions during the three months ended June 30, 2014, appear below.

 

            Value of
          Dividend or affiliates at
  Beginning shares     Ending shares or interest income 6/30/2014
  or principal amount Additions Reductions principal amount (000) (000)
             
Murata Manufacturing Co., Ltd.     14,705,400  — —  14,705,400 $          — $1,376,259
Nintendo Co., Ltd.     10,185,600 — —  10,185,600 —  1,219,095
UCB SA     9,315,505  2,019,319 —  11,334,824  13,589  959,649
Infineon Technologies AG     56,470,947 — —  56,470,947 —  705,906
International Consolidated            
Airlines Group, SA (CDI)1  111,313,540 — —  111,313,540 —  705,810
Power Grid Corp. of India Ltd.     296,023,422 — —  296,023,422 —  685,119
First Quantum Minerals Ltd.     29,232,081  740,100 —  29,972,181  2,138  640,987
Fairfax Financial Holdings Ltd.     826,291 — —  826,291 —  390,425
Fairfax Financial Holdings Ltd.               
(CAD denominated)  525,000 — —  525,000 —  249,066  
Bank of Ireland1  1,871,511,153  247,148,800  294,500,000  1,824,159,953 —  614,643
Bank of Ireland 10.24% (unaudited)    €5,190,000 —  €5,190,000  — 122  —
Deutsche Lufthansa AG     27,172,815 — —  27,172,815  14,354  583,417
Ctrip.com International, Ltd. (ADR)1    8,414,000 — —  8,414,000    —   538,833
Gemalto NV     4,804,745 — —  4,804,745  2,119  498,041
Sysmex Corp.     13,183,600 — —  13,183,600  694  495,174
Eurobank Ergasias SA1   —  800,389,651 —  800,389,651 —  404,414
China Resources Gas Group Ltd.     91,800,000  26,620,000 —  118,420,000  3,055  372,813
Chr. Hansen Holding A/S     7,573,000 — —  7,573,000 —  318,923
Fuji Media Holdings, Inc.     6,769,000  8,585,000 —  15,354,000  (241)  266,749
Nokian Renkaat Oyj     6,677,000 — —  6,677,000  11,355  260,570
Air France-KLM1  11,477,262  8,023,458 —  19,500,720 —  245,715
Paddy Power PLC     3,077,308  126,692  —  3,204,000 —  210,587
Carnival PLC6  9,745,000 —  1,300,000  8,445,000  2,436 —
NetEase, Inc. (ADR)6  6,959,167 —  3,427,000  3,532,167  2,182 —
           $51,803  $11,742,195

 

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

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

3Acquired in a transaction exempt from registration under Rule 144A or section 4(2) of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $2,098,400,000, which represented 1.64% of the net assets of the fund.

4Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $283,961,000, which represented .22% of the net assets of the fund.

5A portion of this security was pledged as collateral. The total value of pledged collateral was $6,858,000, which represented less than .01% of the net assets of the fund.

6Unaffiliated issuer at 6/30/2014.

 

 

Valuation disclosures

 

Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. generally accepted accounting principles. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers. Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date.

 

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

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

Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.

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

 

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

Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. Forward currency contracts are valued at the mean of representative quoted bid and ask prices, generally based on prices supplied by one or more pricing vendors.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair valuation guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees with supplemental information to support the changes. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.

The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews, including an annual control self-evaluation program facilitated by the investment adviser’s compliance group.

Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following tables present the fund’s valuation levels as of June 30, 2014 (dollars in thousands):

 

      Investment securities
             
      Level 1* Level 2 Level 3 Total
             
Assets:            
  Common stocks:        
    Financials  $26,349,399 $—  $1,103  $26,350,502
     Consumer discretionary  16,508,596 — —  16,508,596
     Information technology  16,255,068 — —  16,255,068
     Health care  15,587,898 — —  15,587,898
     Industrials  10,747,792 — —  10,747,792
     Consumer staples  9,699,781 — —  9,699,781
     Telecommunication services  5,085,082 — —  5,085,082
     Materials  4,437,466 282,858 —  4,720,324
     Energy $        3,259,796 $                     — $          —  $       3,259,796
     Utilities  2,274,267 — —  2,274,267
     Miscellaneous  6,189,654 — —  6,189,654
   Rights & warrants  2,394 — —  2,394
   Bonds, notes & other debt instruments                                              —  673,148 —  673,148
   Short-term securities                                              —  10,921,098 —  10,921,098
Total     $116,397,193 $11,877,104 $1,103 $128,275,400
             
             
      Other investments†
             
      Level 1 Level 2 Level 3 Total
             
Assets:            
  Unrealized appreciation on open forward currency contracts $— $        461 $— $         461
Liabilities:            
  Unrealized depreciation on open forward currency contracts — (17,622) — (17,622)
Total     $— $(17,161) $— $(17,161)

 

*Securities with a value of $102,167,991,000, which represented 79.78% of the net assets of the fund, transferred from Level 2 to Level 1 since the prior fiscal year-end, primarily due to a lack of significant market movements following the close of local trading.

†Forward currency contracts are not included in the investment portfolio.

Federal income tax information (dollars in thousands)
   
Gross unrealized appreciation on investment securities $42,014,331
Gross unrealized depreciation on investment securities (1,273,513)
Net unrealized appreciation on investment securities 40,740,818
Cost of investment securities for federal income tax purposes 87,534,582

 

 

Key to abbreviations and symbols

 

ADR = American Depositary Receipts

CDI = CREST Depository Interest

GDR = Global Depositary Receipts

A$ = Australian dollars

CAD = Canadian dollars

CHF = Swiss francs

€ = Euros

¥ = Japanese yen

 

 

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

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the American Funds website at americanfunds.com.

 

 

MFGEFPX-016-0814O-S42158

ITEM 2 – Controls and Procedures

 

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.

 

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

 

ITEM 3 – Exhibits

 

The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Section 302 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.

 

  EUROPACIFIC GROWTH FUND
   
  By /s/ Michael J. Thawley
 

Michael J. Thawley, Vice Chairman and

Principal Executive Officer

   
  Date: August 28, 2014

 

 

 

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

 

 

By /s/ Michael J. Thawley

Michael J. Thawley, Vice Chairman and

Principal Executive Officer

 
Date: August 28, 2014

 

 

 

By /s/ Brian C. Janssen

Brian C. Janssen, Treasurer and

Principal Financial Officer

 
Date: August 28, 2014