N-Q 1 wgi_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: 811-07338

 

 

 

Capital World Growth and Income 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: November 30

 

Date of reporting period: February 28, 2015

 

 

 

 

 

Michael W. Stockton

Capital World Growth and Income Fund

333 South Hope Street

Los Angeles, California 90071

(Name and Address of Agent for Service)

 

 

Copies to:

Kathryn A. Sanders

O’Melveny & Myers LLP

400 South Hope Street, 10th Floor

Los Angeles, California 90071

(Counsel for the Registrant)

 
 

ITEM 1 – Schedule of Investments

 

Capital World Growth and Income Fund®
Investment portfolio
February 28, 2015
unaudited
Common stocks 93.82%
Health care 17.88%
Shares Value
(000)
Amgen Inc. 20,167,700 $3,180,850
Novartis AG1 24,150,054 2,468,582
Bayer AG 12,312,929 1,819,488
Gilead Sciences, Inc.1 17,395,225 1,800,928
AbbVie Inc. 18,377,843 1,111,859
Thermo Fisher Scientific Inc. 4,466,200 580,606
St. Jude Medical, Inc. 8,644,800 576,435
Alexion Pharmaceuticals, Inc.1 2,974,400 536,492
Stryker Corp. 5,081,000 481,425
Medtronic PLC 5,907,000 458,324
Roche Holding AG 1,287,700 349,564
ResMed Inc. 5,259,000 338,469
GlaxoSmithKline PLC 14,081,000 335,106
Takeda Pharmaceutical Co. Ltd. 6,012,500 307,750
UnitedHealth Group Inc. 2,669,200 303,301
UCB SA 3,251,500 248,698
Aetna Inc. 2,415,000 240,413
Teva Pharmaceutical Industries Ltd. (ADR) 3,150,000 179,613
Grifols, SA, Class B, preferred nonvoting, non-registered shares 4,586,090 151,909
Grifols, SA, Class B (ADR) 604,061 19,789
Boston Scientific Corp.1 8,208,800 138,729
Edwards Lifesciences Corp.1 1,030,000 137,011
Sonic Healthcare Ltd. 7,365,000 111,877
Fisher & Paykel Healthcare Corp. Ltd. 19,839,600 102,796
Teleflex Inc. 649,000 78,977
    16,058,991
Financials 15.58%    
Prudential PLC 44,995,500 1,131,953
UBS Group AG1 54,899,786 964,568
Barclays PLC 210,840,000 836,223
Société Générale 15,191,989 702,380
AIA Group Ltd. 107,377,596 632,016
Link Real Estate Investment Trust 82,739,002 528,067
Siam Commercial Bank PCL 98,079,600 514,213
American International Group, Inc. 8,011,800 443,293
Wharf (Holdings) Ltd. 60,579,000 441,701
China Construction Bank Corp., Class H 530,590,735 441,258
HSBC Holdings PLC (HKD denominated) 30,203,501 271,823
HSBC Holdings PLC (GBP denominated) 9,858,953 87,869
HDFC Bank Ltd. 20,872,488 355,952
Industrial and Commercial Bank of China Ltd., Class H 464,912,535 339,282
Agricultural Bank of China, Class H 676,010,000 335,573
Ventas, Inc. 4,461,115 332,219
Credit Suisse Group AG 13,483,897 329,124
Aberdeen Asset Management PLC 39,427,682 285,239
Deutsche Börse AG 3,464,600 282,638
Capital World Growth and Income Fund — Page 1 of 13

unaudited
Common stocks
Financials (continued)
Shares Value
(000)
Fibra Uno Administración, SA de CV 100,317,382 $281,782
American Campus Communities, Inc.2 6,763,000 279,109
Crown Castle International Corp. 3,066,792 264,695
Sampo Oyj, Class A 4,035,974 203,692
BB&T Corp. 4,850,000 184,542
Mizuho Financial Group, Inc. 97,110,000 178,999
PICC Property and Casualty Co. Ltd., Class H 82,210,000 176,169
HCP, Inc. 4,102,796 173,794
Lloyds Banking Group PLC1 140,630,100 171,518
Sun Hung Kai Properties Ltd. 10,766,166 168,798
CIT Group Inc. 3,405,000 157,481
Assicurazioni Generali SpA 7,181,400 147,869
Citigroup Inc. 2,750,000 144,155
ING Groep NV, depository receipts1 9,625,000 143,845
UniCredit SpA 21,504,067 143,061
BNP Paribas SA 2,413,303 140,675
ICICI Bank Ltd. 25,286,000 137,159
Progressive Corp. 4,995,000 133,117
Mitsubishi UFJ Financial Group, Inc. 18,500,000 120,271
RSA Insurance Group PLC 17,840,557 118,133
Woori Bank1 12,625,314 109,050
Starwood Property Trust, Inc. 4,415,000 107,726
Sumitomo Mitsui Financial Group, Inc. 2,669,600 106,215
CME Group Inc., Class A 1,104,500 105,955
Bankia, SA1 70,000,000 101,677
Grupo Financiero Santander México, SAB de CV, Class B (ADR) 8,834,208 97,265
Wells Fargo & Co. 1,585,700 86,880
Cheung Kong (Holdings) Ltd. 4,340,000 85,896
Svenska Handelsbanken AB, Class A 1,500,000 75,567
Sumitomo Mitsui Trust Holdings, Inc. 17,903,000 74,156
Goldman Sachs Group, Inc. 358,600 68,059
KASIKORNBANK PCL, nonvoting depository receipts 9,503,500 63,788
Housing Development Finance Corp. Ltd. 1,898,334 41,385
Eurobank Ergasias SA1 233,151,667 35,744
Samsung Card Co., Ltd. 1,034,892 35,359
Public Storage 145,000 28,597
Weyerhaeuser Co.1 500,000 17,555
JPMorgan Chase & Co. 235,000 14,401
Bank of the Philippine Islands 4,100,000 8,969
Digital Realty Trust, Inc. 70,000 4,647
    13,993,146
Consumer discretionary 9.91%    
Toyota Motor Corp. 11,871,000 800,133
Volkswagen AG, nonvoting preferred 2,661,146 671,529
Home Depot, Inc. 5,528,800 634,430
Netflix, Inc.1 1,149,142 545,739
Amazon.com, Inc.1 1,193,500 453,721
Kingfisher PLC 75,892,698 428,128
General Motors Co. 10,220,897 381,342
ProSiebenSat.1 Media AG 7,042,525 345,934
Renault SA 3,429,223 329,447
Daimler AG 3,065,250 296,744
Comcast Corp., Class A 4,883,000 289,952
Barratt Developments PLC 32,954,418 262,269
Capital World Growth and Income Fund — Page 2 of 13

unaudited
Common stocks
Consumer discretionary (continued)
Shares Value
(000)
Nissan Motor Co., Ltd. 20,296,000 $214,455
DIRECTV1 2,338,800 207,218
HUGO BOSS AG 1,552,115 199,743
Intercontinental Hotels Group PLC 4,735,901 193,755
Kering SA 933,863 190,197
Daily Mail and General Trust PLC, Class A, nonvoting 13,740,000 181,049
Whitbread PLC 2,202,208 178,664
Bayerische Motoren Werke AG 1,412,100 178,564
Johnson Controls, Inc. 3,357,325 170,586
MGM Resorts International1 7,643,000 166,082
SJM Holdings Ltd. 113,915,000 164,796
Galaxy Entertainment Group Ltd. 31,910,000 162,105
Priceline Group Inc.1 89,000 110,136
Industria de Diseño Textil, SA 3,110,000 97,743
WPP PLC 3,983,700 94,406
Merlin Entertainments PLC 14,247,563 92,626
Sands China Ltd. 20,099,100 91,739
Hyundai Motor Co. 608,100 88,925
Inchcape PLC 7,730,000 87,834
Wynn Resorts, Ltd. 547,800 78,061
NIKE, Inc., Class B 800,000 77,696
RTL Group SA, non-registered shares 770,000 76,258
Melco Crown Entertainment Ltd. (ADR) 3,125,584 75,076
Prada SpA 10,700,000 64,359
MGM China Holdings Ltd. 27,670,000 64,075
Wynn Macau, Ltd. 14,418,000 37,830
Darden Restaurants, Inc. 500,000 32,000
Stella International Holdings Ltd. 7,635,500 19,788
Darty PLC 16,230,500 16,976
Panasonic Corp. 1,312,000 16,397
Liberty Global PLC, Class A1 244,181 13,200
Ladbrokes PLC 6,727,723 12,329
Carnival Corp., units 250,000 10,997
    8,905,033
Industrials 9.75%    
Lockheed Martin Corp. 3,712,600 742,706
ASSA ABLOY AB, Class B 10,231,389 614,227
General Dynamics Corp. 3,538,700 491,101
Ryanair Holdings PLC (ADR) 6,417,407 406,543
Boeing Co. 2,668,000 402,468
Precision Castparts Corp. 1,609,261 348,083
easyJet PLC 12,604,810 337,046
CSX Corp. 9,485,865 325,460
Nielsen NV 6,786,891 306,835
Edenred SA 11,169,000 304,717
Jardine Matheson Holdings Ltd. 4,638,600 299,190
BAE Systems PLC 36,286,200 298,029
Deutsche Post AG 7,475,000 254,544
Babcock International Group PLC 16,114,999 251,279
Union Pacific Corp. 2,069,400 248,866
ComfortDelGro Corp. Ltd.2 107,837,500 232,632
General Electric Co. 8,850,000 230,011
Waste Management, Inc. 4,200,000 228,816
Danaher Corp. 2,500,000 218,200
Capital World Growth and Income Fund — Page 3 of 13

unaudited
Common stocks
Industrials (continued)
Shares Value
(000)
Aena, SA, non-registered shares1 2,300,784 $213,854
Cummins Inc. 1,495,000 212,634
United Parcel Service, Inc., Class B 2,000,000 203,460
KONE Oyj, Class B 4,350,000 200,459
Bunzl PLC 5,965,586 174,621
Emerson Electric Co. 3,000,000 173,760
Airbus Group NV 2,436,870 150,884
Norfolk Southern Corp. 1,139,710 124,411
PACCAR Inc 1,885,000 120,734
Andritz AG 1,558,341 89,896
Kühne + Nagel International AG 615,000 89,539
ITOCHU Corp. 7,535,000 84,405
Industries Qatar QSC 1,869,119 79,566
SGS SA 36,826 74,513
Bureau Veritas SA 3,113,476 73,376
Singapore Technologies Engineering Ltd 24,920,000 64,181
Siemens AG 356,000 39,766
United Technologies Corp. 300,000 36,573
Granite Construction Inc. 314,790 10,426
Contax Participações SA, units 152,400 472
    8,758,283
Information technology 9.43%    
Google Inc., Class A1 1,177,372 662,425
Google Inc., Class C1 1,042,129 581,925
Texas Instruments Inc. 19,056,531 1,120,524
Oracle Corp. 17,578,000 770,268
Samsung Electronics Co. Ltd. 382,750 473,228
Quanta Computer Inc. 123,486,595 312,206
Quanta Computer Inc. (GDR)3 922,125 11,657
Accenture PLC, Class A 3,415,000 307,452
Delta Electronics, Inc. 47,488,873 306,965
Motorola Solutions, Inc. 4,215,104 286,374
MediaTek Inc. 18,309,000 275,757
TE Connectivity Ltd. 3,492,400 251,907
AAC Technologies Holdings Inc. 37,127,000 245,812
Taiwan Semiconductor Manufacturing Co. Ltd. 50,123,000 240,201
Analog Devices, Inc. 3,970,186 232,415
Apple Inc. 1,737,000 223,135
Automatic Data Processing, Inc. 2,505,000 222,544
Western Union Co. 11,294,000 220,459
Baidu, Inc., Class A (ADR)1 1,033,300 210,535
Maxim Integrated Products, Inc. 5,723,000 196,843
Hewlett-Packard Co. 4,675,000 162,877
STMicroelectronics NV 17,570,000 156,900
ASML Holding NV 1,425,600 154,124
Yahoo! Inc.1 3,423,798 151,606
Cisco Systems, Inc. 4,505,000 132,943
HOYA Corp. 2,763,000 111,502
Tata Consultancy Services Ltd. 2,426,146 104,510
Murata Manufacturing Co., Ltd. 742,500 91,521
Avago Technologies Ltd. 592,000 75,551
Alibaba Group Holding Ltd. (ADR)1 747,780 63,651
Nintendo Co., Ltd. 540,000 57,690
Capital World Growth and Income Fund — Page 4 of 13

unaudited
Common stocks
Information technology (continued)
Shares Value
(000)
Microsoft Corp. 975,000 $42,754
Broadcom Corp., Class A 200,000 9,046
    8,467,307
Consumer staples 7.43%    
Altria Group, Inc. 32,084,500 1,806,037
Philip Morris International Inc. 15,049,500 1,248,507
Nestlé SA 8,454,443 659,790
Imperial Tobacco Group PLC 8,533,000 420,635
Japan Tobacco Inc. 12,677,400 399,742
Thai Beverage PCL 634,924,000 326,116
Pernod Ricard SA 2,187,223 259,324
Wal-Mart de México, SAB de CV, Series V 89,492,012 219,361
Lorillard, Inc. 2,820,000 192,944
British American Tobacco PLC 3,134,700 183,030
SABMiller PLC 2,864,000 162,493
Associated British Foods PLC 3,307,511 159,572
Coca-Cola Co. 2,893,800 125,302
Tingyi (Cayman Islands) Holding Corp. 45,500,000 114,398
Reckitt Benckiser Group PLC 982,500 88,886
Danone SA 1,248,646 87,094
Unilever NV, depository receipts 1,994,613 86,828
Kraft Foods Group, Inc. 787,166 50,426
Orion Corp. 49,000 43,038
Treasury Wine Estates Ltd. 7,212,137 30,601
Mondelez International, Inc. 351,600 12,986
    6,677,110
Energy 5.74%    
BP PLC 182,213,649 1,260,412
Royal Dutch Shell PLC, Class A (GBP denominated) 11,414,100 373,227
Royal Dutch Shell PLC, Class B 7,471,787 254,411
Royal Dutch Shell PLC, Class A (ADR) 897,500 58,670
Royal Dutch Shell PLC, Class A (EUR denominated) 1,686,000 55,205
Royal Dutch Shell PLC, Class B (ADR) 344,800 23,498
Canadian Natural Resources, Ltd. 19,672,930 572,201
EOG Resources, Inc. 3,782,000 339,321
Eni SpA 14,555,300 271,686
Eni SpA (ADR) 253,148 9,435
Kinder Morgan, Inc. 5,864,000 240,483
Spectra Energy Corp 5,970,000 211,875
Suncor Energy Inc. 6,690,327 200,854
Schlumberger Ltd. 2,200,000 185,152
BG Group PLC 12,285,000 181,696
Golar LNG Ltd. 4,319,771 133,999
Exxon Mobil Corp. 1,510,000 133,695
Chesapeake Energy Corp. 7,500,000 125,100
John Wood Group PLC 11,399,500 117,122
LUKOIL OJSC (ADR) 2,187,200 105,861
Baker Hughes Inc. 1,085,000 67,823
ConocoPhillips 1,015,400 66,204
National Oilwell Varco Inc. 1,165,000 63,318
Southwestern Energy Co.1 2,423,363 60,778
Capital World Growth and Income Fund — Page 5 of 13

unaudited
Common stocks
Energy (continued)
Shares Value
(000)
Gazprom OJSC (ADR) 6,870,000 $34,281
Devon Energy Corp. 200,000 12,318
    5,158,625
Telecommunication services 5.39%    
Verizon Communications Inc. 28,925,053 1,430,344
SoftBank Corp. 10,643,500 655,471
China Mobile Ltd. 33,178,000 450,883
CenturyLink, Inc. 10,822,000 409,721
TeliaSonera AB 59,453,215 377,600
Singapore Telecommunications Ltd. 90,916,810 281,520
Advanced Info Service PCL 26,925,800 194,052
China Unicom (Hong Kong) Ltd. 105,540,000 177,719
MTN Group Ltd. 7,227,000 128,006
Intouch Holdings PCL 30,879,500 75,695
Intouch Holdings PCL, nonvoting depository receipts 12,405,000 30,408
TDC A/S 13,219,000 104,568
BCE Inc. 2,345,000 102,628
AT&T Inc. 2,809,300 97,089
OJSC Mobile TeleSystems (ADR) 9,690,039 95,931
Deutsche Telekom AG 4,644,420 86,640
KDDI Corp. 1,146,000 79,418
MegaFon OJSC (GDR) 1,840,000 32,402
T-Mobile US, Inc.1 910,000 30,057
    4,840,152
Utilities 4.72%    
SSE PLC 26,852,353 652,103
Dominion Resources, Inc. 5,767,422 415,774
EDP - Energias de Portugal, SA 103,410,508 408,034
Fortum Oyj 17,677,665 402,765
National Grid PLC 27,759,411 379,965
Duke Energy Corp. 4,038,000 317,185
ENDESA, SA 14,273,060 288,619
PT Perusahaan Gas Negara (Persero) Tbk 682,108,000 274,426
Sempra Energy 2,278,000 246,480
NextEra Energy, Inc. 1,798,952 186,120
Power Grid Corp. of India Ltd. 64,038,000 162,776
Exelon Corp. 4,535,300 153,837
CMS Energy Corp. 4,081,300 143,376
GDF SUEZ 3,372,030 74,998
Power Assets Holdings Ltd. 6,169,500 63,478
NRG Energy, Inc. 2,247,500 53,895
FirstEnergy Corp. 317,678 11,112
    4,234,943
Materials 3.10%    
Amcor Ltd. 32,684,007 348,867
Praxair, Inc. 2,463,120 315,033
Syngenta AG 768,000 270,514
Rio Tinto PLC 5,122,300 252,425
BASF SE 2,615,000 250,639
Vale SA, Class A, preferred nominative 32,212,400 210,040
Vale SA, Class A, preferred nominative (ADR) 5,444,600 35,227
Sherwin-Williams Co. 660,000 188,232
Capital World Growth and Income Fund — Page 6 of 13

unaudited
Common stocks
Materials (continued)
Shares Value
(000)
Koninklijke DSM NV 3,313,600 $185,033
Akzo Nobel NV 2,467,000 183,310
ArcelorMittal 15,699,654 171,646
Fortescue Metals Group Ltd. 59,191,874 115,169
Glencore PLC 20,885,000 96,811
Celanese Corp., Series A 1,320,000 75,385
Linde AG 309,000 62,864
Monsanto Co. 203,200 24,471
    2,785,666
Miscellaneous 4.89%    
Other common stocks in initial period of acquisition   4,390,319
Total common stocks (cost: $62,557,378,000)   84,269,575
Preferred securities 0.00%
Financials 0.00%
   
Citigroup Inc. 7.875% preferred 122,000 3,240
Total preferred securities (cost: $3,050,000)   3,240
Convertible stocks 0.02%
Financials 0.02%
   
Bank of America Corp., Series L, 7.25% convertible preferred 13,000 15,210
Total convertible stocks (cost: $10,438,000)   15,210
Convertible bonds 0.06%
Telecommunication services 0.03%
Principal amount
(000)
 
Clearwire Corp. 8.25% convertible notes 20404 $26,556 29,079
Financials 0.03%    
Bank of Ireland 10.00% convertible notes 2016 23,175 28,276
Total convertible bonds (cost: $57,011,000)   57,355
Bonds, notes & other debt instruments 0.88%
Corporate bonds & notes 0.49%
Telecommunication services 0.17%
   
Altice Finco SA, First Lien, 7.75% 20224 $6,750 6,986
América Móvil, SAB de CV 6.45% 2022 MXN63,350 4,180
América Móvil, SAB de CV 8.46% 2036 55,000 3,784
MTS International Funding Ltd. 8.625% 2020 $29,630 30,149
MTS International Funding Ltd. 8.625% 20204 6,190 6,298
Numericable Group SA, First Lien, 6.00% 20224 21,500 21,903
Numericable Group SA, First Lien, 6.25% 20244 8,000 8,222
Sprint Nextel Corp. 9.125% 2017 27,750 30,742
Sprint Nextel Corp. 11.50% 2021 33,950 42,098
    154,362
Capital World Growth and Income Fund — Page 7 of 13

unaudited
Bonds, notes & other debt instruments
Corporate bonds & notes (continued)
Financials 0.15%
Principal amount
(000)
Value
(000)
AXA SA 8.60% 2030 $8,000 $11,123
Barclays Bank PLC, Series RCI, junior subordinated 14.00% (undated)5 £4,520 9,532
Developers Diversified Realty Corp. 7.875% 2020 $8,075 10,051
Discover Financial Services 10.25% 2019 4,334 5,541
ERP Operating LP 5.125% 2016 2,886 3,012
ERP Operating LP 5.75% 2017 2,055 2,256
HBOS PLC 6.75% 20184 36,490 40,941
Lloyds Banking Group PLC, junior subordinated 6.657% preference shares (undated)4,5 30,300 34,163
Simon Property Group, LP 6.125% 2018 890 1,011
Simon Property Group, LP 10.35% 2019 5,170 6,719
Standard Chartered Bank 6.40% 20174 8,451 9,319
    133,668
Materials 0.10%    
ArcelorMittal 4.50% 20155 16,500 16,706
ArcelorMittal 10.60% 20195 20,000 24,775
ArcelorMittal 7.00% 20225 24,365 27,598
CRH America, Inc. 6.00% 2016 1,260 1,350
CRH America, Inc. 8.125% 2018 15,540 18,601
FMG Resources 6.875% 20184,6 2,444 2,456
    91,486
Energy 0.05%    
BP Capital Markets PLC 3.875% 2015 7,320 7,325
Gazprom OJSC 8.146% 2018 4,415 4,457
Gazprom OJSC, Series 9, 6.51% 2022 30,710 28,216
Gazprom OJSC, Series 2, 8.625% 2034 1,015 1,057
Gazprom OJSC 7.288% 2037 2,740 2,566
    43,621
Consumer discretionary 0.02%    
Marks and Spencer Group PLC 6.25% 20174 100 112
Marks and Spencer Group PLC 7.125% 20374 15,550 19,722
    19,834
Total corporate bonds & notes   442,971
Bonds & notes of governments & government agencies outside the U.S. 0.25%    
Argentina (Republic of) 7.00% 2015 52,025 51,876
Argentina (Republic of) 7.00% 2017 54,000 52,818
Colombia (Republic of), Series B, 10.00% 2024 COP144,465,000 71,605
India (Republic of) 8.60% 2028 INR530,000 9,226
United Mexican States Government, Series M20, 10.00% 2024 MXN250,000 22,193
United Mexican States Government, Series M20, 8.50% 2029 210,000 17,437
    225,155
U.S. Treasury bonds & notes 0.14%
U.S. Treasury 0.14%
   
U.S. Treasury 0.25% 2015 $67,700 67,738
U.S. Treasury 0.375% 20167 55,000 55,069
Total U.S. Treasury bonds & notes   122,807
Total bonds, notes & other debt instruments (cost: $718,764,000)   790,933
Capital World Growth and Income Fund — Page 8 of 13

unaudited
Short-term securities 5.17% Principal amount
(000)
Value
(000)
Bank of Nova Scotia 0.20% due 7/13/2015–7/23/20154 $153,600 $153,475
Bank of Tokyo-Mitsubishi UFJ, Ltd. 0.14%–0.16% due 3/4/2015–3/5/2015 97,600 97,598
CAFCO, LLC 0.20% due 3/5/2015 25,000 25,000
Coca-Cola Co. 0.17%–0.20% due 5/1/2015–5/27/20154 50,000 49,987
Credit Suisse New York Branch 0.26% due 3/16/2015 25,000 24,998
Electricité de France 0.17%–0.19% due 4/7/2015–6/18/20154 199,900 199,818
Fannie Mae 0.08%–0.18% due 4/15/2015–12/14/2015 486,200 486,056
Federal Farm Credit Banks 0.09%–0.15% due 3/26/2015–9/8/2015 200,000 199,933
Federal Home Loan Bank 0.07%–0.17% due 3/6/2015–11/2/2015 740,560 740,342
Freddie Mac 0.07%–0.19% due 4/1/2015–11/23/2015 1,061,100 1,060,739
Jupiter Securitization Co., LLC 0.20%–0.25% due 5/5/2015–6/3/20154 150,000 149,929
Mizuho Funding LLC 0.21%–0.22% due 3/11/2015–4/13/20154 100,000 99,985
National Australia Bank Ltd. 0.15%–0.16% due 6/2/2015–6/4/20154 158,500 158,430
Nestlé Capital Corp. 0.20% due 7/2/20154 52,000 51,980
Nordea Bank AB 0.17%–0.24% due 3/3/2015–6/8/20154 189,700 189,631
Old Line Funding, LLC 0.17%–0.22% due 4/6/2015–4/9/20154 106,560 106,542
Rabobank USA Financial Corp. 0.20% due 4/13/2015 50,000 49,990
Sumitomo Mitsui Banking Corp. 0.15%–0.22% due 3/9/2015–4/24/20154 125,000 124,981
Svenska Handelsbanken Inc. 0.14%–0.19% due 3/19/2015–6/23/20154 216,850 216,746
Thunder Bay Funding, LLC 0.22%–0.27% due 4/1/2015–7/24/20154 89,000 88,943
Toronto-Dominion Holdings USA Inc. 0.13%–0.42% due 3/12/2015–11/20/20154 170,200 170,065
Victory Receivables Corp. 0.17% due 3/20/20154 84,800 84,792
Westpac Banking Corp. 0.23% due 5/27/2015–5/28/20154 110,300 110,246
Total short-term securities (cost: $4,639,801,000)   4,640,206
Total investment securities 99.95% (cost: $67,986,442,000)   89,776,519
Other assets less liabilities 0.05%   47,897
Net assets 100.00%   $89,824,416
Capital World Growth and Income Fund — Page 9 of 13

unaudited
Forward currency contracts

The fund has entered into forward currency contracts as shown in the following table. The average notional amount of open forward currency contracts was $459,202,000 over the prior 12-month period.
      Contract amount Unrealized
appreciation
(depreciation)
at 2/28/2015
(000)
  Settlement
date
Counterparty Receive
(000)
Deliver
(000)
Sales:          
Australian dollars 3/23/2015 UBS AG $15,457 A$19,000 $634
Australian dollars 3/25/2015 Bank of America, N.A. $63,911 A$82,000 (54)
Euros 3/13/2015 Bank of America, N.A. $84,917 €75,000 973
Euros 3/17/2015 JPMorgan Chase $116,443 €102,886 1,282
Euros 3/23/2015 Bank of America, N.A. $5,118 €4,500 81
South Korean won 3/26/2015 Citibank $35,499 KRW39,500,000 (448)
          $2,468
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. Further details on these holdings and related transactions during the three months ended February 28, 2015, appear below.
  Beginning
shares
Additions Reductions Ending
shares
Dividend
income
(000)
Value of
affiliates at
2/28/2015
(000)
American Campus Communities, Inc. 6,763,000 6,763,000 $2,260 $279,109
ComfortDelGro Corp. Ltd. 124,903,000 2,686,500 19,752,000 107,837,500 232,632
          $2,260 $511,741
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.
1 Security did not produce income during the last 12 months.
2 Represents an affiliated company as defined under the Investment Company Act of 1940.
3 Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities was $11,657,000, which represented .01% of the net assets of the fund.
4 Acquired 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 $2,134,751,000, which represented 2.38% of the net assets of the fund.
5 Coupon rate may change periodically.
6 Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.
7 A portion of this security was pledged as collateral. The total value of pledged collateral was $20,602,000, which represented .02% of the net assets of the fund.
Capital World Growth and Income Fund — Page 10 of 13

unaudited
Valuation disclosures

Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value of each share class of the fund is generally determined as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open. 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
Mortgage-backed; asset-backed obligations Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or deemed to be not 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.
Capital World Growth and Income Fund — Page 11 of 13

unaudited
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 February 28, 2015 (dollars in thousands):
  Investment securities
  Level 1 Level 2 Level 3 Total
Assets:        
Common stocks:        
Health care $16,058,991 $ $ $16,058,991
Financials 13,993,146 13,993,146
Consumer discretionary 8,905,033 8,905,033
Industrials 8,758,283 8,758,283
Information technology 8,455,650 11,657 8,467,307
Consumer staples 6,677,110 6,677,110
Energy 5,158,625 5,158,625
Telecommunication services 4,840,152 4,840,152
Utilities 4,234,943 4,234,943
Materials 2,785,666 2,785,666
Miscellaneous 4,390,319 4,390,319
Preferred securities 3,240 3,240
Convertible stocks 15,210 15,210
Convertible bonds 57,355 57,355
Bonds, notes & other debt instruments 790,933 790,933
Short-term securities 4,640,206 4,640,206
Total $84,276,368 $5,500,151 $— $89,776,519
    
  Other investments*
  Level 1 Level 2 Level 3 Total
Assets:        
Unrealized appreciation on open forward currency contracts $ $2,970 $ $2,970
Liabilities:        
Unrealized depreciation on open forward currency contracts (502) (502)
Total $— $2,468 $— $2,468
* Forward currency contracts are not included in the investment portfolio.
Capital World Growth and Income Fund — Page 12 of 13

unaudited
Federal income tax information (dollars in thousands)

Gross unrealized appreciation on investment securities $23,611,424
Gross unrealized depreciation on investment securities (2,091,917)
Net unrealized appreciation on investment securities 21,519,507
Cost of investment securities 68,257,012
    
Key to abbreviations and symbols  
ADR = American Depositary Receipts  
GDR = Global Depositary Receipts  
A$ = Australian dollars  
EUR/€ = Euros  
GBP = British pounds  
HKD = Hong Kong dollars  
KRW = South Korean won  
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-033-0415O-S42186 Capital World Growth and Income Fund — Page 13 of 13

 

 

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 our internal control over financial reporting during the quarter ended February 28, 2015, which were identified in connection with management's evaluation required by paragraph (d) of Rule 13a-15 and 15d-15 under the Exchange Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting, other than as provided below.

 

Effective November 10, 2014, the Capital World Growth and Income Fund’s investment adviser implemented a new accounting system. In connection with introducing this new system, additional automated and manual controls were implemented and some existing controls were modified. None of these changes were in response to any identified deficiency or weakness in the Capital World Growth and Income Fund’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.

 

  CAPITAL WORLD GROWTH AND INCOME FUND
   
  By /s/ Donald H. Rolfe
 

Donald H. Rolfe, Executive Vice President and

Principal Executive Officer

   
  Date: April 28, 2015

 

 

 

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/ Donald H. Rolfe

Donald H. Rolfe, Executive Vice President and

Principal Executive Officer

 
Date: April 28, 2015

 

 

 

By /s/ Neal F. Wellons

Neal F. Wellons, Treasurer and

Principal Financial Officer

 
Date: April 28, 2015