Unassociated Document

Fundamental InvestorsSM

[photo of machine gears] 

Semi-annual report for the six months ended June 30, 2011

Fundamental Investors seeks long-term growth of capital and income.

This fund is one of the 33 American Funds. American Funds is one of the nation’s largest mutual fund families. For 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

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

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended June 30, 2011:

Class A shares	1 year			5 years			10 years

Reflecting 5.75% maximum sales charge		23.54	%		2.68	%		5.00	%

The total annual fund operating expense ratio was 0.64% for Class A shares as of the most recent fiscal year-end.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Applicable fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 28 to 34 for details.

Results for other share classes can be found on page 6.

Investing outside the United States may be subject to risks such as currency fluctuations, periods of illiquidity, price volatility and political instability. These risks may be heightened in connection with investments in developing countries. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

Fellow shareholders:

[photo of machine gears]

For the six months ended June 30, 2011, Fundamental Investors gained 6.1%. This return includes quarterly dividends totaling 24 cents a share paid during the period.

The fund’s results were on par with those of its primary benchmark, the unmanaged Standard & Poor’s 500 Composite Index (S&P 500) which gained 6.0%, but exceeded the 5.3% return of its growth-and-income fund peers, as measured by the Lipper Growth and Income Funds Index.

Results for the fund also topped those of the unmanaged MSCI World Index, a measure of stock markets in more than 20 developed nations, which rose 5.6%. Though not one of the fund’s principal benchmarks, we include results for this index because Fundamental Investors is able to invest up to 30% of its assets outside the United States and Canada, and we believe it provides context for the global investing environment.

[Begin Sidebar]

Results at a glance
For periods ended June 30, 2011, with all distributions reinvested

	Total returns						Average annual total returns
	6 months			12 months			5 years			10 years			Lifetime1
Fundamental Investors
(Class A shares)		6.1	%		31.1	%		3.9	%		5.6	%		12.5	%
Standard & Poor’s 500
Composite Index2		6.0			30.7			2.9			2.7			11.3
Lipper Growth and
Income Funds Index3		5.3			28.8			2.3			3.3			10.7
MSCI World Index2		5.6			31.2			2.8			4.5			10.5

1 Since Capital Research and Management Company began managing the fund on August 1, 1978.
2 The market indexes are unmanaged and their results do not reflect the effect of sales charges, commissions, account fees, expenses or taxes.
3 Results do not reflect the effect of sales charges, account fees or taxes.

[End Sidebar]

The last few years have underscored the importance of maintaining a long-term perspective. Staying the course amid volatile conditions like those experienced during the past decade can be difficult. But a review of the 10-year results shown in the table on the previous page reveals that even in a period marked by two steep market downturns, the fund posted solid results and meaningfully outpaced all its benchmark indexes. Overall, Fundamental Investors cumulatively gained 72.8% for the 10 years ended June 30, 2011 — more than double the 30.8% registered by the S&P 500.

Substantive returns amid challenging conditions

The period began with global markets on the rise, powered by robust corporate earnings and broad indications that a worldwide economic recovery was in progress. Despite the concerns and challenges created by civil unrest in many oil-rich nations in the Middle East and North Africa, as well as the tragic and widespread impact of the Japanese earthquake and tsunami, most indexes climbed. However, toward the end of the period and after its close, the combination of slowing global growth, ongoing government debt crises in Europe, inflation concerns in certain developing countries and the U.S. debt ceiling standoff drove markets sharply lower. The S&P downgrade of the U.S. credit rating on August 5 added to the uncertainty.

A mixed impact

Shifting economic and market circumstances exerted a varied effect on the fund’s portfolio. In keeping with the pattern described in the most recent annual report, fund results were largely attributable to solid returns across its broad base of holdings rather than to those of its larger investments — only three of which gained more than the wider market.

Positive contributions were made by companies from a range of sectors. They included many retailers, chemical producers, pharmaceutical manufacturers, aerospace and defense firms, and media companies.

[Begin Sidebar]

Fundamental Investors’ 10 largest holdings

Company	Percent of net assets

Merck		2.6	%
Home Depot		2.3
Suncor		2.1
Union Pacific		1.8
Dow Chemical		1.6
Verizon		1.5
Bristol-Myers Squibb		1.5
Microsoft		1.3
Royal Dutch Shell		1.2
Texas Instruments		1.2

[End Sidebar]

Areas of relative weakness for the fund included financials, metals and mining, and Internet software and services.

The fund’s holdings in companies based outside the United States strongly supported results. Thanks to a combination of price appreciation and selective additions, they stood at 22.8% of fund assets at period end, up from 19.2% when we last reported to you.

Designed for diversification

The fund’s breadth of holdings — it has investments in more than 200 companies — is a natural outgrowth of our unique investment approach, known as the multiple portfolio counselor system. Each of the fund’s six portfolio counselors is allocated a portion of fund assets to invest according to his or her highest convictions. Because counselors have differing styles and outlooks on markets, no two invest in the same group of companies. Thus, in contrast to a portfolio built from a single point of view, multiple perspectives are captured within a single portfolio. As a result, solid results have not historically been as dependent on specific market or economic conditions.

An evolving portfolio

Although they have the freedom to think and act independently, one point of view currently shared by several portfolio counselors is the belief that an improvement in living standards worldwide will be a key driver of economic growth. Accordingly, during the six months, individual counselors continued to build positions in a number of energy, chemicals, media and semiconductor manufacturing companies they feel stand to benefit from this macroeconomic trend.

We reduced some of our positions in the consumer discretionary and pharmaceuticals areas. However, acting on the guidance of seasoned analysts, we rotated some of the proceeds from those sales into companies within the same sectors whose prospects we believe to be more attractive. We also significantly trimmed our investments among financial companies.

Dividends on the rise

Recently, profit growth, improved cash flows and healthier balance sheets have led many companies to pass additional cash through to shareholders in the form of dividend increases. This has been a welcome development for the fund, as dividend income has historically constituted a meaningful component of its total return.

Cautious but prepared to act

As mentioned before, we believe that new investment opportunities will emerge as global living standards continue to improve. Notwithstanding this belief, we are facing some very significant challenges — both at home and abroad.

We navigate these conditions as we always have — by working closely with our extensive global research network to identify solid individual companies we believe can withstand near-term challenges to capture long-term opportunities.

We appreciate your commitment to Fundamental Investors.

Sincerely,

/s/ James F. Rothenberg

James F. Rothenberg

Vice Chairman

/s/ Dina N. Perry

Dina N. Perry

President

August 12, 2011

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

The fund’s 30-day yield for Class A shares as of July 31, 2011, calculated in accordance with the U.S. Securities and Exchange Commission formula, was 1.48%. The fund’s distribution rate for Class A shares as of that date was 1.43%. Both reflect the 5.75% maximum sales charge. The SEC yield reflects the rate at which the fund is earning income on its current portfolio of securities while the distribution rate reflects the fund’s past dividends paid to shareholders. Accordingly, the fund’s SEC yield and distribution rate may differ.

Other share class results

Classes B, C, F and 529

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

Average annual total returns for periods ended June 30, 2011:
							10 years1/
	1 year			5 years			Life of class
Class B shares2
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares
are sold within six years of purchase		25.08	%		2.76	%		4.98	%
Not reflecting CDSC		30.08			3.12			4.98

Class C shares
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		29.00			3.08			4.76
Not reflecting CDSC		30.00			3.08			4.76

Class F-1 shares3
Not reflecting annual asset-based fee charged
by sponsoring firm		31.02			3.90			5.59

Class F-2 shares3 — first sold 8/1/08
Not reflecting annual asset-based fee charged
by sponsoring firm		31.37			—			3.59

Class 529-A shares4 — first sold 2/15/02
Reflecting 5.75% maximum sales charge		23.47			2.63			6.23
Not reflecting maximum sales charge		31.00			3.85			6.90

Class 529-B shares2,4 — first sold 2/19/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		24.95			2.64			6.33
Not reflecting CDSC		29.95			3.00			6.33

Class 529-C shares4 — first sold 2/15/02
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		28.96			3.01			6.02
Not reflecting CDSC		29.96			3.01			6.02

Class 529-E shares3,4 — first sold 3/7/02		30.64			3.54			5.97

Class 529-F-1 shares3,4 — first sold 9/23/02
Not reflecting annual asset-based fee charged
by sponsoring firm		31.29			4.06			10.23

1Applicable to Classes B, C and F-1 shares only. All other share classes reflect results for the life of the class.

2These shares are not available for purchase.

3These shares are sold without any initial or contingent deferred sales charge.

4Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

For information regarding the differences among the various share classes, refer to the fund’s prospectus.

Summary investment portfolio June 30, 2011

unaudited

The following summary investment portfolio is designed to streamline the report and help investors better focus on the fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.

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Industry sector diversification	(percent of net assets)
Information technology		14.75	%
Energy		13.46
Industrials		13.38
Consumer discretionary		12.10
Financials		10.49
Other industries		31.63
Convertible securities and bonds & notes		0.04
Short-term securities & other assets less liabilities		4.15

[end pie chart]

Country diversification	(percent of net assets)
United States		73.0	%
Euro zone*		6.9
Canada		4.9
United Kingdom		3.8
Switzerland		2.3
Other countries		4.9
Short-term securities & other assets less liabilities		4.2

*Countries using the euro as a common currency; those represented in the fund’s portfolio are France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain.

							Percent
				Value			of net
Common stocks - 95.81%	Shares				(000	)	assets

Information technology - 14.75%
Microsoft Corp.		25,920,000		$	673,920			1.27	%
Texas Instruments Inc.		19,270,300			632,644			1.19
Apple Inc. (1)		1,663,800			558,488			1.05
Google Inc., Class A (1)		1,032,000			522,584			.99
Samsung Electronics Co. Ltd. (2)		606,500			471,396			.89
EMC Corp. (1)		16,875,000			464,906			.88
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		24,234,400			305,596
Taiwan Semiconductor Manufacturing Co. Ltd. (2)		55,025,000			139,272			.84
Oracle Corp.		12,407,950			408,346			.77
Intuit Inc. (1)		6,450,000			334,497			.63
Other securities					3,305,029			6.24
					7,816,678			14.75

Energy - 13.46%
Suncor Energy Inc.		28,723,361			1,125,764			2.13
Royal Dutch Shell PLC, Class B (ADR)		5,562,700			399,124
Royal Dutch Shell PLC, Class A (ADR)		3,630,000			258,202			1.24
Occidental Petroleum Corp.		4,784,244			497,753			.94
Tenaris SA (ADR)		10,060,000			460,044			.87
ConocoPhillips		5,500,000			413,545			.78
FMC Technologies, Inc. (1)		8,200,000			367,278			.69
Chevron Corp.		3,547,763			364,852			.69
Baker Hughes Inc.		4,500,000			326,520			.62
Other securities					2,912,048			5.50
					7,125,130			13.46

Industrials - 13.38%
Union Pacific Corp.		8,885,000			927,594			1.75
Schneider Electric SA (2)		3,242,272			541,693			1.02
Lockheed Martin Corp.		6,558,200			531,017			1.00
Parker Hannifin Corp.		5,750,000			516,005			.98
General Electric Co.		22,000,000			414,920			.78
Deere & Co.		4,000,000			329,800			.62
Other securities					3,820,406			7.23
					7,081,435			13.38

Consumer discretionary - 12.10%
Home Depot, Inc.		33,878,000			1,227,061			2.32
Amazon.com, Inc. (1)		2,620,000			535,764			1.01
Walt Disney Co.		11,800,000			460,672			.87
Starbucks Corp.		11,000,000			434,390			.82
Virgin Media Inc.		13,385,000			400,613			.76
Time Warner Inc.		10,775,000			391,887			.74
Comcast Corp., Class A		13,465,000			341,203			.64
Other securities					2,616,591			4.94
					6,408,181			12.10

Financials - 10.49%
American Express Co.		9,770,000			505,109			.95
Citigroup Inc.		11,560,000			481,358			.91
Wells Fargo & Co.		15,195,200			426,377			.81
ACE Ltd.		5,700,000			375,174			.71
Marsh & McLennan Companies, Inc.		10,865,000			338,879			.64
Other securities					3,426,782			6.47
					5,553,679			10.49

Health care - 9.33%
Merck & Co., Inc.		39,176,664			1,382,544			2.61
Bristol-Myers Squibb Co.		27,050,000			783,368			1.48
Baxter International Inc.		10,175,000			607,346			1.15
Roche Holding AG (2)		3,000,000			501,897			.95
Pfizer Inc		17,470,000			359,882			.68
Other securities					1,302,239			2.46
					4,937,276			9.33

Materials - 8.77%
Dow Chemical Co.		23,607,900			849,884			1.61
Syngenta AG (2)		1,760,000			594,142			1.12
Potash Corp. of Saskatchewan Inc.		6,900,000			393,231			.74
Other securities					2,803,284			5.30
					4,640,541			8.77

Consumer staples - 6.01%
Philip Morris International Inc.		8,250,000			550,852			1.04
Altria Group, Inc.		16,535,100			436,692			.82
Other securities					2,192,804			4.15
					3,180,348			6.01

Telecommunication services - 2.89%
Verizon Communications Inc.		21,305,000			793,185			1.50
AT&T Inc.		11,000,000			345,510			.65
Other securities					389,805			.74
					1,528,500			2.89

Utilties - 2.64%
Other securities					1,400,572			2.64

Miscellaneous - 1.99%
Other common stocks in initial period of acquisition					1,053,973			1.99


Total common stocks (cost: $38,972,604,000)					50,726,313			95.81



							Percent
				Value			of net
Convertible securities - 0.03%					(000	)	assets


Industrials - 0.03%
Other securities					17,461			.03


Total convertible securities (cost: $12,275,000)					17,461			.03



							Percent
				Value			of net
Bonds & notes - 0.01%					(000	)	assets


Mortgage-backed obligations - 0.01%
Other securities					5,599			.01


Total bonds & notes (cost: $5,865,000)					5,599			.01



	Principal						Percent
	amount			Value			of net
Short-term securities - 3.57%		(000	)		(000	)	assets


Fannie Mae 0.10%-0.21% due 8/9/2011-2/1/2012	$	465,171			465,049			.88
Freddie Mac 0.115%-0.20% due 7/18-12/15/2011		402,200			402,138			.76
U.S. Treasury Bills 0.07%-0.258% due 7/21/2011-5/3/2012		369,000			368,917			.70
Google Inc. 0.12% due 8/31/2011 (3)		25,000			24,992			.05
Other securities					627,281			1.18

Total short-term securities (cost: $1,888,076,000)					1,888,377			3.57


Total investment securities (cost: $40,878,820,000)					52,637,750			99.42
Other assets less liabilities					306,153			.58

Net assets				$	52,943,903			100.00	%

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.

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

Investments in affiliates
A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund's holdings in affiliated companies is included in "Other securities" under the respective industry sectors in the summary investment portfolio. Further details on these holdings and related transactions during the six months ended June 30, 2011, appear below.

	Beginning shares		Additions		Reductions		Ending shares		Dividend income (000)		Value of affiliate at 6/30/2011 (000)
Grafton Group PLC, units (2)		15,037,000		-		-		15,037,000	$	940	$	73,587
Strayer Education, Inc. (4)		760,000		-		760,000		-		760		-
									$	1,700	$	73,587

The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.

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

(2) Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $7,804,905,000, which represented 14.74% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.

(3) Acquired in a transaction exempt from registration under 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 $548,875,000, which represented 1.04% of the net assets of the fund.

(4) Unaffiliated issuer at 6/30/2011.

Key to abbreviation

ADR = American Depositary Receipts

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities			unaudited
at June 30, 2011	(dollars in thousands)

Assets:
Investment securities, at value:
Unaffiliated issuers (cost: $40,716,037)	$	52,564,163
Affiliated issuer (cost: $162,783)		73,587	$	52,637,750
Cash denominated in currencies other than U.S. dollars
(cost: $2,781)				2,781
Cash				303
Receivables for:
Sales of investments	$	231,725
Sales of fund's shares		64,634
Dividends and interest		131,468		427,827
				53,068,661
Liabilities:
Payables for:
Purchases of investments		2,945
Repurchases of fund's shares		88,325
Investment advisory services		10,688
Services provided by related parties		18,979
Trustees' deferred compensation		3,029
Non-U.S. taxes		304
Other		488		124,758
Net assets at June 30, 2011			$	52,943,903

Net assets consist of:
Capital paid in on shares of beneficial interest			$	44,696,977
Undistributed net investment income				309,223
Accumulated net realized loss				(3,822,390	)
Net unrealized appreciation				11,760,093
Net assets at June 30, 2011			$	52,943,903

	(dollars and shares in thousands, except per-share amounts)
Shares of beneficial interest issued and outstanding (no stated par value) -
unlimited shares authorized (1,368,201 total shares outstanding)
		Net assets		Shares outstanding		Net asset value per share
Class A		$	34,455,919		890,009	$	38.71
Class B			689,620		17,859		38.62
Class C			2,143,255		55,565		38.57
Class F-1			4,742,871		122,575		38.69
Class F-2			1,016,380		26,255		38.71
Class 529-A			1,032,986		26,706		38.68
Class 529-B			60,571		1,566		38.67
Class 529-C			295,010		7,632		38.65
Class 529-E			45,480		1,177		38.66
Class 529-F-1			42,938		1,111		38.66
Class R-1			155,065		4,020		38.57
Class R-2			669,311		17,355		38.57
Class R-3			2,368,660		61,302		38.64
Class R-4			2,404,955		62,222		38.65
Class R-5			1,516,090		39,147		38.73
Class R-6			1,304,792		33,700		38.72

See Notes to Financial Statements

Statement of operations				unaudited
for the six months ended June 30, 2011	(dollars in thousands)

Investment income:
Income:
Dividends (net of non-U.S. taxes of $29,213;
also includes $1,700 from affiliates)	$	614,108
Interest		3,398		$	617,506

Fees and expenses*:
Investment advisory services		65,398
Distribution services		75,139
Transfer agent services		21,883
Administrative services		13,861
Reports to shareholders		790
Registration statement and prospectus		503
Trustees' compensation		560
Auditing and legal		19
Custodian		723
Other		1,038			179,914
Net investment income					437,592


Net realized gain and unrealized appreciation
on investments and currency:
Net realized gain on:
Investments (including $53,809 net loss from affiliates)		840,524
Currency transactions		276			840,800
Net unrealized appreciation on:
Investments (net of non-U.S. taxes of $304)		1,773,646
Currency translations		299			1,773,945
Net realized gain and unrealized appreciation
on investments and currency					2,614,745
Net increase in net assets resulting
from operations				$	3,052,337

(*) Additional information related to class-specific fees and expenses is included
in the Notes to Financial Statements.

See Notes to Financial Statements




Statements of changes in net assets
		(dollars in thousands)
	Six months			Year ended
	ended June 30,			December 31,
		2011*			2010
Operations:
Net investment income	$	437,592		$	785,321
Net realized gain on investments and currency transactions		840,800			367,901
Net unrealized appreciation on investments and currency translations		1,773,945			4,934,637
Net increase in net assets resulting from operations		3,052,337			6,087,859

Dividends paid to shareholders from net investment income		(312,352	)		(750,387	)

Net capital share transactions		383,360			(634,803	)

Total increase in net assets		3,123,345			4,702,669

Net assets:
Beginning of period		49,820,558			45,117,889
End of period (including undistributed
net investment income: $309,223 and $183,983, respectively)	$	52,943,903		$	49,820,558

*Unaudited.

See Notes to Financial Statements

Notes to financial statements

unaudited

1.	Organization

American Funds Fundamental Investors (the “trust”) is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company and has initially issued one series of shares, Fundamental Investors (the “fund”). The fund seeks long-term growth of capital and income.

The fund has 16 share classes consisting of five retail share classes, five 529 college savings plan share classes and six retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F-1) can be used to save for college education. The six retirement plan share classes (R-1, R-2, R-3, R-4, R-5 and R-6) are generally offered only through eligible employer-sponsored retirement plans. The fund’s share classes are described below:

Share class	Initial sales charge	Contingent deferred sales charge upon redemption	Conversion feature
Classes A and 529-A	Up to 5.75%	None (except 1% for certain redemptions within one year of purchase without an initial sales charge)	None
Classes B and 529-B*	None	Declines from 5% to 0% for redemptions within six years of purchase	Classes B and 529-B convert to Classes A and 529-A, respectively, after eight years
Class C	None	1% for redemptions within one year of purchase	Class C converts to Class F-1 after 10 years
Class 529-C	None	1% for redemptions within one year of purchase	None
Class 529-E	None	None	None
Classes F-1, F-2 and 529-F-1	None	None	None
Classes R-1, R-2, R-3, R-4, R-5 and R-6	None	None	None

*Class B and 529-B shares of the fund are not available for purchase.

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

2.	Significant accounting policies

The financial statements have been prepared to comply with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. The fund follows the significant accounting policies described below, as well as the valuation policies described in the next section on valuation.

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

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

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

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

Valuation

The fund’s investments are reported at fair value as defined by accounting principles generally accepted in the United States of America. The fund generally determines the net asset value of each share class as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Methods and inputs – The fund uses the following methods and inputs to establish the fair value of its 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 purchased with more than 60 days left to maturity, are generally valued at prices obtained as of approximately 3:00 p.m. New York time, or relevant local time for securities trading outside U.S. time zones, 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

Where the 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 asked prices that are reasonably and timely available (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 generally 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 fair value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under guidelines adopted by authority of the fund's board of trustees. Market quotations may be considered unreliable if events occur that materially affect the value of securities (particularly equity securities trading outside the U.S.) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange. Various inputs may be reviewed in order to make a good faith determination of a security’s fair value. These inputs 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. 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.

Classifications - The fund classifies its 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. Level 3 values are based on significant unobservable inputs that reflect the fund’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 table presents the fund’s valuation levels as of June 30, 2011 (dollars in thousands):

Investment securities:	Level 1		Level 2			Level 3		Total
Common stocks:
Information technology	$	7,024,983	$	791,695	*	$	-	$	7,816,678
Energy		6,612,447		512,683	*		-		7,125,130
Industrials		5,499,657		1,581,778	*		-		7,081,435
Consumer discretionary		5,481,372		926,809	*		-		6,408,181
Financials		5,061,968		491,711	*		-		5,553,679
Health care		4,163,682		773,594	*		-		4,937,276
Materials		3,495,911		1,144,630	*		-		4,640,541
Consumer staples		2,438,339		742,009	*		-		3,180,348
Telecommunication services		1,138,695		389,805	*		-		1,528,500
Utilities		1,126,074		274,498	*		-		1,400,572
Miscellaneous		878,280		175,693	*		-		1,053,973
Convertible securities		-		17,461			-		17,461
Bonds & notes		-		5,599			-		5,599
Short-term securities		-		1,888,377			-		1,888,377
Total	$	42,921,408	$	9,716,342		$	-	$	52,637,750

(*) Includes certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading; therefore, $7,804,905,000 of investment securities were classified as Level 2 instead of Level 1.

4.	Risk factors

Investing in the fund may involve certain risks including, but not limited to, those described below.

Market conditions — The prices of, and the income generated by, the common stocks and other securities held by the fund may decline due to market conditions and other factors, including those directly involving the issuers of securities held by the fund.

Investing in growth-oriented stocks — Growth-oriented stocks may involve larger price swings and greater potential for loss than other types of investments.

Investing in income-oriented stocks — Income provided by the fund may be reduced by changes in the dividend policies of, and the capital resources available at, the companies in which the fund invests.

Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations outside the U.S., may lose value because of political, social or economic developments in the country or region in which the issuer operates. These securities may also lose value due to changes in the exchange rate of the country’s currency against the U.S. dollar. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different settlement and accounting practices and different regulatory, legal and reporting standards than those in the U.S. These risks may be heightened in connection with investments in developing countries.

Management — The investment adviser to the fund actively manages the fund’s investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the investment adviser in this process may not produce the desired results. This could cause the fund to lose value or its results to lag relevant benchmarks or other funds with similar objectives.

5.	Taxation and distributions

Federal income taxation – The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to mutual funds and intends to distribute substantially all of its net taxable income and net capital gains each year. The fund is not subject to income taxes to the extent such distributions are made. Therefore, no federal income tax provision is required.

As of and during the period ended June 30, 2011, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2007, by state tax authorities for tax years before 2006 and by tax authorities outside the U.S. for tax years before 2005.

Non-U.S. taxation –Dividend income is recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to different treatment for items such as currency gains and losses; short-term capital gains and losses; and net capital losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund for financial reporting purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of December 31, 2010, the components of distributable earnings on a tax basis were as follows:

	(dollars in thousands)
Undistributed ordinary income				$	232,529
Capital loss carryforwards*:
Expiring 2016	$	(1,512,929	)
Expiring 2017		(3,190,744	)		(4,703,673	)
*The capital loss carryforwards will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration dates. The fund will not make distributions from capital gains while capital loss carryforwards remain.

Under the Regulated Investment Company Modernization Act of 2010 (the “Act”), net capital losses recognized after December 31, 2010, may be carried forward indefinitely, and their character is retained as short-term and/or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. As a transition rule, the Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.

As of June 30, 2011, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

(dollars in thousands)
Gross unrealized appreciation on investment securities	$	12,968,142
Gross unrealized depreciation on investment securities		(1,216,199	)
Net unrealized appreciation on investment securities		11,751,943
Cost of investment securities		40,885,807

Tax-basis distributions paid to shareholders from ordinary income were as follows (dollars in thousands):

Share class	Six months ended June 30, 2011		Year ended December 31, 2010
Class A	$	215,156	$	522,129
Class B		1,765		6,978
Class C		4,867		17,623
Class F-1		28,457		66,841
Class F-2		7,206		14,478
Class 529-A		5,983		13,222
Class 529-B		123		531
Class 529-C		590		2,047
Class 529-E		202		485
Class 529-F-1		288		595
Class R-1		364		1,147
Class R-2		1,670		5,371
Class R-3		10,812		26,995
Class R-4		14,153		29,941
Class R-5		11,221		26,478
Class R-6		9,495		15,526
Total	$	312,352	$	750,387

6.	Fees and transactions with related parties

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

Investment advisory services – The fund has an investment advisory and service agreement with CRMC that provides for monthly fees accrued daily. These fees are based on a series of decreasing annual rates beginning with 0.390% on the first $1 billion of daily net assets and decreasing to 0.232% on such assets in excess of $55 billion. For the six months ended June 30, 2011, the investment advisory services fee was $65,398,000, which was equivalent to an annualized rate of 0.251% 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 plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of trustees approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted below. In some cases, the board of trustees has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Classes A and 529-A, distribution-related expenses include the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25% is not exceeded.

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-1, 529-F-1 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 as described below.

Administrative services – The fund has an administrative services agreement with CRMC for all share classes, except Classes A and B, to provide certain services, including transfer agent and recordkeeping services; coordinating, monitoring, assisting and overseeing third-party service providers; and educating advisers and shareholders about the impact of market-related events, tax laws affecting investments, retirement plan restrictions, exchange limitations and other related matters. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services.

Each 529 share class is subject to an additional administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described above for the six months ended June 30, 2011, were as follows (dollars in thousands):

					Administrative services
Share class	Distribution services		Transfer agent services		CRMC administrative services		Transfer agent services		Commonwealth of Virginia administrative services
Class A	$	40,389	$	21,429	Not applicable		Not applicable		Not applicable
Class B		3,616		454	Not applicable		Not applicable		Not applicable
Class C		10,723	Included in administrative services		$	1,609	$	234	Not applicable
Class F-1		5,707				3,216		138	Not applicable
Class F-2	Not applicable					725		20	Not applicable
Class 529-A		1,037				492		78	$	492
Class 529-B		311				31		10		31
Class 529-C		1,412				142		36		141
Class 529-E		109				21		4		22
Class 529-F-1		-				20		3		20
Class R-1		752				103		16	Not applicable
Class R-2		2,480				483		780	Not applicable
Class R-3		5,755				1,691		554	Not applicable
Class R-4		2,848				1,687		28	Not applicable
Class R-5	Not applicable					731		9	Not applicable
Class R-6	Not applicable					290		4	Not applicable
Total	$	75,139	$	21,883	$	11,241	$	1,914	$	706

Trustees’ deferred compensation – Trustees 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. Trustees’ compensation of $560,000, shown on the accompanying financial statements, includes $207,000 in current fees (either paid in cash or deferred) and a net increase of $353,000 in the value of the deferred amounts.

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

7.	Capital share transactions

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

	Sales(*)				Reinvestments of dividends and distributions				Repurchases(*)						Net (decrease) increase
Share class	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Six months ended June 30, 2011
Class A	$	2,098,005		54,770	$	207,967		5,442	$	(2,750,670	)		(71,836	)	$	(444,698	)		(11,624	)
Class B		23,528		615		1,759		46		(120,849	)		(3,170	)		(95,562	)		(2,509	)
Class C		191,543		5,018		4,697		123		(248,258	)		(6,502	)		(52,018	)		(1,361	)
Class F-1		715,223		18,669		27,287		715		(567,705	)		(14,847	)		174,805			4,537
Class F-2		198,818		5,184		5,959		156		(125,704	)		(3,288	)		79,073			2,052
Class 529-A		102,251		2,674		5,982		157		(42,562	)		(1,113	)		65,671			1,718
Class 529-B		2,103		55		123		3		(8,448	)		(222	)		(6,222	)		(164	)
Class 529-C		28,926		758		590		16		(14,340	)		(376	)		15,176			398
Class 529-E		4,346		114		202		5		(2,097	)		(54	)		2,451			65
Class 529-F-1		6,818		177		288		7		(3,043	)		(79	)		4,063			105
Class R-1		24,445		643		363		10		(15,711	)		(412	)		9,097			241
Class R-2		103,988		2,726		1,668		44		(102,192	)		(2,675	)		3,464			95
Class R-3		350,320		9,178		10,807		283		(290,179	)		(7,592	)		70,948			1,869
Class R-4		489,721		12,838		14,148		371		(265,581	)		(6,935	)		238,288			6,274
Class R-5		200,881		5,254		11,196		293		(191,774	)		(5,039	)		20,303			508
Class R-6		336,671		8,810		9,485		248		(47,635	)		(1,239	)		298,521			7,819
Total net increase
(decrease)	$	4,877,587		127,483	$	302,521		7,919	$	(4,796,748	)		(125,379	)	$	383,360			10,023

Year ended December 31, 2010
Class A	$	3,363,931		100,692	$	502,448		15,020	$	(5,287,374	)		(159,761	)	$	(1,420,995	)		(44,049	)
Class B		33,827		1,016		6,834		203		(276,082	)		(8,334	)		(235,421	)		(7,115	)
Class C		298,138		8,974		16,968		504		(381,354	)		(11,579	)		(66,248	)		(2,101	)
Class F-1		1,239,671		37,371		63,906		1,912		(1,301,972	)		(39,467	)		1,605			(184	)
Class F-2		366,241		10,977		11,752		351		(222,407	)		(6,699	)		155,586			4,629
Class 529-A		157,006		4,699		13,220		395		(73,466	)		(2,219	)		96,760			2,875
Class 529-B		2,618		78		530		16		(17,463	)		(523	)		(14,315	)		(429	)
Class 529-C		45,797		1,371		2,047		61		(25,887	)		(781	)		21,957			651
Class 529-E		7,077		211		485		14		(3,288	)		(99	)		4,274			126
Class 529-F-1		9,722		292		595		18		(4,787	)		(142	)		5,530			168
Class R-1		50,584		1,528		1,142		34		(25,889	)		(784	)		25,837			778
Class R-2		176,158		5,322		5,364		159		(168,070	)		(5,082	)		13,452			399
Class R-3		708,464		21,359		26,982		804		(495,947	)		(14,982	)		239,499			7,181
Class R-4		683,852		20,549		29,929		894		(418,514	)		(12,755	)		295,267			8,688
Class R-5		365,246		11,013		26,411		789		(400,796	)		(11,927	)		(9,139	)		(125	)
Class R-6		330,441		10,094		15,526		464		(94,419	)		(2,889	)		251,548			7,669
Total net increase
(decrease)	$	7,838,773		235,546	$	724,139		21,638	$	(9,197,715	)		(278,023	)	$	(634,803	)		(20,839	)

* Includes exchanges between share classes of the fund.

8.	Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $9,461,119,000 and $8,093,007,000, respectively, during the six months ended June 30, 2011.

Financial highlights(1)

				Income (loss) from investment operations(2)								Dividends and distributions
		Net asset value, beginning of period		Net investment income (3)(4)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return(5)(6)			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers(6)			Ratio of net income to average net assets(3)(4)(6)

Class A:	Six months ended 6/30/2011(7)	$	36.70	$	.33	$	1.92		$	2.25		$	(.24	)	$	-		$	(.24	)	$	38.71		6.14	%	$	34,456		.63	% (8)		.63	%(8)		1.74	%(8)
	Year ended 12/31/2010		32.73		.59		3.95			4.54			(.57	)		-			(.57	)		36.70		14.05			33,089		.64			.64			1.78
	Year ended 12/31/2009		24.98		.44		7.79			8.23			(.48	)		-			(.48	)		32.73		33.36			30,954		.69			.69			1.60
	Year ended 12/31/2008		42.45		.60		(17.23	)		(16.63	)		(.58	)		(.26	)		(.84	)		24.98		(39.70	)		24,443		.63			.61			1.70
	Year ended 12/31/2007		40.05		1.03		4.39			5.42			(.95	)		(2.07	)		(3.02	)		42.45		13.55			38,877		.60			.57			2.40
	Year ended 12/31/2006		35.40		.62		6.16			6.78			(.56	)		(1.57	)		(2.13	)		40.05		19.24			32,187		.61			.58			1.60

Class B:	Six months ended 6/30/2011(7)		36.60		.18		1.93			2.11			(.09	)		-			(.09	)		38.62		5.77			690		1.39	(8)		1.39	(8)		.96	(8)
	Year ended 12/31/2010		32.64		.33		3.94			4.27			(.31	)		-			(.31	)		36.60		13.18			746		1.41			1.41			1.01
	Year ended 12/31/2009		24.92		.23		7.76			7.99			(.27	)		-			(.27	)		32.64		32.30			897		1.46			1.46			.85
	Year ended 12/31/2008		42.35		.34		(17.20	)		(16.86	)		(.31	)		(.26	)		(.57	)		24.92		(40.14	)		924		1.39			1.37			.94
	Year ended 12/31/2007		39.96		.70		4.38			5.08			(.62	)		(2.07	)		(2.69	)		42.35		12.70			1,667		1.36			1.33			1.63
	Year ended 12/31/2006		35.33		.32		6.14			6.46			(.26	)		(1.57	)		(1.83	)		39.96		18.33			1,417		1.38			1.35			.83

Class C:	Six months ended 6/30/2011(7)		36.56		.18		1.92			2.10			(.09	)		-			(.09	)		38.57		5.74			2,143		1.44	(8)		1.44	(8)		.93	(8)
	Year ended 12/31/2010		32.61		.32		3.94			4.26			(.31	)		-			(.31	)		36.56		13.13			2,081		1.44			1.44			.98
	Year ended 12/31/2009		24.90		.22		7.75			7.97			(.26	)		-			(.26	)		32.61		32.26			1,925		1.48			1.48			.81
	Year ended 12/31/2008		42.31		.32		(17.17	)		(16.85	)		(.30	)		(.26	)		(.56	)		24.90		(40.16	)		1,468		1.43			1.41			.90
	Year ended 12/31/2007		39.92		.70		4.36			5.06			(.60	)		(2.07	)		(2.67	)		42.31		12.65			2,053		1.41			1.38			1.62
	Year ended 12/31/2006		35.30		.30		6.13			6.43			(.24	)		(1.57	)		(1.81	)		39.92		18.23			1,380		1.43			1.41			.77

Class F-1:	Six months ended 6/30/2011(7)		36.68		.33		1.91			2.24			(.23	)		-			(.23	)		38.69		6.13			4,743		.66	(8)		.66	(8)		1.72	(8)
	Year ended 12/31/2010		32.72		.59		3.93			4.52			(.56	)		-			(.56	)		36.68		14.01			4,330		.66			.66			1.77
	Year ended 12/31/2009		24.97		.45		7.79			8.24			(.49	)		-			(.49	)		32.72		33.40			3,868		.67			.67			1.61
	Year ended 12/31/2008		42.43		.60		(17.22	)		(16.62	)		(.58	)		(.26	)		(.84	)		24.97		(39.69	)		2,932		.62			.60			1.72
	Year ended 12/31/2007		40.03		1.06		4.36			5.42			(.95	)		(2.07	)		(3.02	)		42.43		13.55			3,235		.61			.58			2.45
	Year ended 12/31/2006		35.39		.62		6.15			6.77			(.56	)		(1.57	)		(2.13	)		40.03		19.21			1,815		.61			.58			1.58

Class F-2:	Six months ended 6/30/2011(7)		36.70		.37		1.92			2.29			(.28	)		-			(.28	)		38.71		6.26			1,016		.42	(8)		.42	(8)		1.97	(8)
	Year ended 12/31/2010		32.73		.67		3.95			4.62			(.65	)		-			(.65	)		36.70		14.32			888		.40			.40			2.03
	Year ended 12/31/2009		24.98		.49		7.81			8.30			(.55	)		-			(.55	)		32.73		33.72			641		.43			.43			1.69
	Period from 8/1/2008 to 12/31/2008		37.09		.23		(11.97	)		(11.74	)		(.37	)		-			(.37	)		24.98		(31.78	)		92		.17			.16			.88

Class 529-A:	Six months ended 6/30/2011(7)		36.67		.32		1.92			2.24			(.23	)		-			(.23	)		38.68		6.11			1,033		.69	(8)		.69	(8)		1.69	(8)
	Year ended 12/31/2010		32.71		.58		3.93			4.51			(.55	)		-			(.55	)		36.67		13.98			916		.69			.69			1.74
	Year ended 12/31/2009		24.97		.43		7.78			8.21			(.47	)		-			(.47	)		32.71		33.30			723		.73			.73			1.55
	Year ended 12/31/2008		42.42		.58		(17.21	)		(16.63	)		(.56	)		(.26	)		(.82	)		24.97		(39.71	)		485		.68			.65			1.66
	Year ended 12/31/2007		40.02		1.03		4.36			5.39			(.92	)		(2.07	)		(2.99	)		42.42		13.49			643		.66			.64			2.37
	Year ended 12/31/2006		35.38		.60		6.15			6.75			(.54	)		(1.57	)		(2.11	)		40.02		19.16			414		.66			.63			1.55

Class 529-B:	Six months ended 6/30/2011(7)		36.66		.16		1.92			2.08			(.07	)		-			(.07	)		38.67		5.69			61		1.50	(8)		1.50	(8)		.86	(8)
	Year ended 12/31/2010		32.69		.30		3.95			4.25			(.28	)		-			(.28	)		36.66		13.09			63		1.50			1.50			.92
	Year ended 12/31/2009		24.96		.20		7.77			7.97			(.24	)		-			(.24	)		32.69		32.16			71		1.55			1.55			.74
	Year ended 12/31/2008		42.41		.30		(17.22	)		(16.92	)		(.27	)		(.26	)		(.53	)		24.96		(40.20	)		54		1.50			1.47			.84
	Year ended 12/31/2007		40.01		.66		4.38			5.04			(.57	)		(2.07	)		(2.64	)		42.41		12.57			80		1.48			1.46			1.53
	Year ended 12/31/2006		35.37		.27		6.16			6.43			(.22	)		(1.57	)		(1.79	)		40.01		18.18			60		1.50			1.47			.71

Class 529-C:	Six months ended 6/30/2011(7)		36.64		.17		1.92			2.09			(.08	)		-			(.08	)		38.65		5.70			295		1.49	(8)		1.49	(8)		.89	(8)
	Year ended 12/31/2010		32.69		.31		3.93			4.24			(.29	)		-			(.29	)		36.64		13.05			265		1.49			1.49			.94
	Year ended 12/31/2009		24.95		.20		7.78			7.98			(.24	)		-			(.24	)		32.69		32.22			215		1.55			1.55			.74
	Year ended 12/31/2008		42.40		.30		(17.22	)		(16.92	)		(.27	)		(.26	)		(.53	)		24.95		(40.21	)		147		1.49			1.47			.85
	Year ended 12/31/2007		40.00		.67		4.37			5.04			(.57	)		(2.07	)		(2.64	)		42.40		12.58			195		1.48			1.45			1.56
	Year ended 12/31/2006		35.37		.28		6.14			6.42			(.22	)		(1.57	)		(1.79	)		40.00		18.16			126		1.49			1.47			.71

Class 529-E:	Six months ended 6/30/2011(7)	$	36.65	$	.27	$	1.91		$	2.18		$	(.17	)	$	-		$	(.17	)	$	38.66		5.97	%	$	45		.98	%(8)		.98	%(8)		1.41	%(8)
	Year ended 12/31/2010		32.69		.48		3.94			4.42			(.46	)		-			(.46	)		36.65		13.66			41		.98			.98			1.45
	Year ended 12/31/2009		24.95		.34		7.78			8.12			(.38	)		-			(.38	)		32.69		32.89			32		1.04			1.04			1.24
	Year ended 12/31/2008		42.40		.48		(17.21	)		(16.73	)		(.46	)		(.26	)		(.72	)		24.95		(39.90	)		21		.98			.96			1.36
	Year ended 12/31/2007		40.00		.88		4.38			5.26			(.79	)		(2.07	)		(2.86	)		42.40		13.14			29		.97			.95			2.05
	Year ended 12/31/2006		35.36		.48		6.15			6.63			(.42	)		(1.57	)		(1.99	)		40.00		18.80			20		.97			.95			1.23

Class 529-F-1:	Six months ended 6/30/2011(7)		36.65		.36		1.92			2.28			(.27	)		-			(.27	)		38.66		6.23			43		.48	(8)		.48	(8)		1.91	(8)
	Year ended 12/31/2010		32.69		.65		3.93			4.58			(.62	)		-			(.62	)		36.65		14.22			37		.48			.48			1.95
	Year ended 12/31/2009		24.95		.48		7.78			8.26			(.52	)		-			(.52	)		32.69		33.56			27		.54			.54			1.74
	Year ended 12/31/2008		42.39		.64		(17.19	)		(16.55	)		(.63	)		(.26	)		(.89	)		24.95		(39.59	)		20		.48			.46			1.84
	Year ended 12/31/2007		40.00		1.13		4.33			5.46			(1.00	)		(2.07	)		(3.07	)		42.39		13.69			20		.47			.45			2.62
	Year ended 12/31/2006		35.36		.67		6.15			6.82			(.61	)		(1.57	)		(2.18	)		40.00		19.40			11		.47			.45			1.73

Class R-1:	Six months ended 6/30/2011(7)		36.56		.18		1.92			2.10			(.09	)		-			(.09	)		38.57		5.75			155		1.42	(8)		1.42	(8)		.96	(8)
	Year ended 12/31/2010		32.62		.33		3.93			4.26			(.32	)		-			(.32	)		36.56		13.13			138		1.43			1.43			1.01
	Year ended 12/31/2009		24.90		.22		7.76			7.98			(.26	)		-			(.26	)		32.62		32.30			98		1.47			1.47			.80
	Year ended 12/31/2008		42.31		.32		(17.18	)		(16.86	)		(.29	)		(.26	)		(.55	)		24.90		(40.16	)		61		1.43			1.41			.91
	Year ended 12/31/2007		39.93		.72		4.33			5.05			(.60	)		(2.07	)		(2.67	)		42.31		12.62			57		1.44			1.42			1.67
	Year ended 12/31/2006		35.31		.29		6.13			6.42			(.23	)		(1.57	)		(1.80	)		39.93		18.19			23		1.47			1.43			.74

Class R-2:	Six months ended 6/30/2011(7)		36.56		.19		1.92			2.11			(.10	)		-			(.10	)		38.57		5.76			669		1.39	(8)		1.39	(8)		.98	(8)
	Year ended 12/31/2010		32.61		.33		3.93			4.26			(.31	)		-			(.31	)		36.56		13.15			631		1.42			1.42			1.00
	Year ended 12/31/2009		24.89		.21		7.76			7.97			(.25	)		-			(.25	)		32.61		32.22			550		1.52			1.52			.77
	Year ended 12/31/2008		42.30		.30		(17.17	)		(16.87	)		(.28	)		(.26	)		(.54	)		24.89		(40.19	)		366		1.49			1.47			.85
	Year ended 12/31/2007		39.92		.70		4.34			5.04			(.59	)		(2.07	)		(2.66	)		42.30		12.61			471		1.46			1.40			1.62
	Year ended 12/31/2006		35.29		.30		6.14			6.44			(.24	)		(1.57	)		(1.81	)		39.92		18.26			291		1.54			1.41			.77

Class R-3:	Six months ended 6/30/2011(7)		36.63		.27		1.92			2.19			(.18	)		-			(.18	)		38.64		5.98			2,369		.96	(8)		.96	(8)		1.42	(8)
	Year ended 12/31/2010		32.67		.49		3.94			4.43			(.47	)		-			(.47	)		36.63		13.69			2,177		.96			.96			1.47
	Year ended 12/31/2009		24.94		.36		7.77			8.13			(.40	)		-			(.40	)		32.67		32.93			1,707		.99			.99			1.29
	Year ended 12/31/2008		42.38		.48		(17.20	)		(16.72	)		(.46	)		(.26	)		(.72	)		24.94		(39.89	)		1,058		.98			.95			1.37
	Year ended 12/31/2007		39.98		.92		4.34			5.26			(.79	)		(2.07	)		(2.86	)		42.38		13.17			1,157		.97			.94			2.12
	Year ended 12/31/2006		35.35		.47		6.14			6.61			(.41	)		(1.57	)		(1.98	)		39.98		18.75			525		.99			.96			1.21

Class R-4:	Six months ended 6/30/2011(7)		36.64		.33		1.91			2.24			(.23	)		-			(.23	)		38.65		6.14			2,405		.66	(8)		.66	(8)		1.73	(8)
	Year ended 12/31/2010		32.68		.59		3.93			4.52			(.56	)		-			(.56	)		36.64		14.02			2,050		.66			.66			1.77
	Year ended 12/31/2009		24.95		.44		7.77			8.21			(.48	)		-			(.48	)		32.68		33.31			1,545		.69			.69			1.58
	Year ended 12/31/2008		42.39		.58		(17.19	)		(16.61	)		(.57	)		(.26	)		(.83	)		24.95		(39.70	)		942		.67			.65			1.68
	Year ended 12/31/2007		39.99		1.05		4.34			5.39			(.92	)		(2.07	)		(2.99	)		42.39		13.51			879		.66			.64			2.42
	Year ended 12/31/2006		35.36		.59		6.14			6.73			(.53	)		(1.57	)		(2.10	)		39.99		19.12			438		.67			.65			1.52

Class R-5:	Six months ended 6/30/2011(7)		36.71		.38		1.93			2.31			(.29	)		-			(.29	)		38.73		6.31			1,516		.36	(8)		.36	(8)		2.01	(8)
	Year ended 12/31/2010		32.74		.69		3.94			4.63			(.66	)		-			(.66	)		36.71		14.37			1,419		.36			.36			2.06
	Year ended 12/31/2009		24.99		.52		7.79			8.31			(.56	)		-			(.56	)		32.74		33.75			1,269		.39			.39			1.92
	Year ended 12/31/2008		42.46		.69		(17.23	)		(16.54	)		(.67	)		(.26	)		(.93	)		24.99		(39.53	)		1,077		.37			.35			1.98
	Year ended 12/31/2007		40.06		1.18		4.34			5.52			(1.05	)		(2.07	)		(3.12	)		42.46		13.81			1,014		.37			.34			2.73
	Year ended 12/31/2006		35.41		.71		6.16			6.87			(.65	)		(1.57	)		(2.22	)		40.06		19.50			481		.38			.35			1.83

Class R-6:	Six months ended 6/30/2011(7)		36.70		.40		1.92			2.32			(.30	)		-			(.30	)		38.72		6.34			1,305		.31	(8)		.31	(8)		2.11	(8)
	Year ended 12/31/2010		32.74		.71		3.93			4.64			(.68	)		-			(.68	)		36.70		14.39			950		.32			.32			2.13
	Period from 5/1/2009 to 12/31/2009		25.63		.37		7.17			7.54			(.43	)		-			(.43	)		32.74		29.60			596		.35	(8)		.35	(8)		1.87	(8)

	Six months ended June 30,			Year ended December 31
	2011(7)			2010			2009			2008			2007			2006

Portfolio turnover rate for all share classes		16	%		32	%		30	%		29	%		27	%		21	%

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

(2)Based on average shares outstanding.

(3)For the year ended December 31, 2007, this column reflects the impact of corporate action events that resulted in a one-time increase to net investment income. If the corporate action events had not occurred, the Class A net investment income per share and ratio of net income to average net assets would have been lower by $.39 and .90 percentage points, respectively. The impact to the other share classes would have been similar.

(4)For the year ended December 31, 2010, this column reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action event had not occurred, the Class A net investment income per share and ratio of net income to average net assets would have been lower by $.07 and .21 percentage points, respectively. The impact to the other share classes would have been similar.

(5)Total returns exclude any applicable sales charges, including contingent deferred sales charges.

(6)This column reflects the impact, if any, of certain reimbursements/waivers from CRMC. During some of the periods shown, CRMC reduced fees for investment advisory services. In addition, during some of the periods shown, CRMC paid a portion of the fund's transfer agent fees for certain retirement plan share classes.

(7)Unaudited.

(8)Annualized.

See Notes to Financial Statements

Expense example

unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period (January 1, 2011, through June 30, 2011).

Actual expenses:

The first line of each share class in the table on the next page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses paid during period" to estimate the expenses you paid on your account during this period.

Hypothetical example for comparison purposes:

The second line of each share class in the table on the next page provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio for the share class and an assumed rate of return of 5.00% per year before expenses, which is not the actual return of the share class. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5.00% hypothetical example with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Notes:

There are some account fees that are charged to certain types of accounts, such as individual retirement accounts and 529 college savings plan accounts (generally, a $10 fee is charged to set up the account and an additional $10 fee is charged to the account annually), that would increase the amount of expenses paid on your account. In addition, retirement plan participants may be subject to certain fees charged by the plan sponsor, and Class F-1, F-2 and 529-F-1 shareholders may be subject to fees charged by financial intermediaries, typically ranging from 0.75% to 1.50% of assets annually depending on services offered. You can estimate the impact of these fees by adding the amount of the fees to the total estimated expenses you paid on your account during the period as calculated above. In addition, your ending account value would be lower by the amount of these fees.

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

	Beginning account value 1/1/2011		Ending account value 6/30/2011		Expenses paid during period*		Annualized expense ratio

Class A -- actual return	$	1,000.00	$	1,061.39	$	3.22		.63	%
Class A -- assumed 5% return		1,000.00		1,021.67		3.16		.63
Class B -- actual return		1,000.00		1,057.72		7.09		1.39
Class B -- assumed 5% return		1,000.00		1,017.90		6.95		1.39
Class C -- actual return		1,000.00		1,057.36		7.35		1.44
Class C -- assumed 5% return		1,000.00		1,017.65		7.20		1.44
Class F-1 -- actual return		1,000.00		1,061.31		3.37		.66
Class F-1 -- assumed 5% return		1,000.00		1,021.52		3.31		.66
Class F-2 -- actual return		1,000.00		1,062.55		2.15		.42
Class F-2 -- assumed 5% return		1,000.00		1,022.71		2.11		.42
Class 529-A -- actual return		1,000.00		1,061.15		3.53		.69
Class 529-A -- assumed 5% return		1,000.00		1,021.37		3.46		.69
Class 529-B -- actual return		1,000.00		1,056.89		7.65		1.50
Class 529-B -- assumed 5% return		1,000.00		1,017.36		7.50		1.50
Class 529-C -- actual return		1,000.00		1,057.04		7.60		1.49
Class 529-C -- assumed 5% return		1,000.00		1,017.41		7.45		1.49
Class 529-E -- actual return		1,000.00		1,059.67		5.00		.98
Class 529-E -- assumed 5% return		1,000.00		1,019.93		4.91		.98
Class 529-F-1 -- actual return		1,000.00		1,062.30		2.45		.48
Class 529-F-1 -- assumed 5% return		1,000.00		1,022.41		2.41		.48
Class R-1 -- actual return		1,000.00		1,057.47		7.24		1.42
Class R-1 -- assumed 5% return		1,000.00		1,017.75		7.10		1.42
Class R-2 -- actual return		1,000.00		1,057.63		7.09		1.39
Class R-2 -- assumed 5% return		1,000.00		1,017.90		6.95		1.39
Class R-3 -- actual return		1,000.00		1,059.82		4.90		.96
Class R-3 -- assumed 5% return		1,000.00		1,020.03		4.81		.96
Class R-4 -- actual return		1,000.00		1,061.37		3.37		.66
Class R-4 -- assumed 5% return		1,000.00		1,021.52		3.31		.66
Class R-5 -- actual return		1,000.00		1,063.10		1.84		.36
Class R-5 -- assumed 5% return		1,000.00		1,023.01		1.81		.36
Class R-6 -- actual return		1,000.00		1,063.37		1.59		.31
Class R-6 -- assumed 5% return		1,000.00		1,023.26		1.56		.31

*The “expenses paid during period” are equal to the “annualized expense ratio,” multiplied by the average account value over the period, multiplied by the number of days in the period, and divided by 365 (to reflect the one-half year period).

Office of the fund

One Market

Steuart Tower, Suite 2000

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

6455 Irvine Center Drive

Irvine, CA 92618

Transfer agent for shareholder accounts

American Funds Service Company

(Write to the address near you.)

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Custodian of assets

State Street Bank and Trust Company

One Lincoln Street

Boston, MA 02111

Counsel

K&L Gates LLP

Four Embarcadero Center, Suite 1200

San Francisco, CA 94111-5994

Independent registered public accounting firm

Deloitte & Touche LLP

695 Town Center Drive

Suite 1200

Costa Mesa, CA 92626-7188

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. This and other important information is contained in the fund’s 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 800/421-0180 or visit the American Funds website at americanfunds.com.

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

A complete June 30, 2011, portfolio of Fundamental Investors’ investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

Fundamental Investors files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Additional information regarding the operation of the Public Reference Room may be obtained by calling the SEC’s Office of Investor Education and Advocacy at 800/SEC-0330. Additionally, the list of portfolio holdings is available by calling AFS.

This report is for the information of shareholders of Fundamental Investors, but it also may be used as sales literature when preceded or accompanied by the current prospectus or summary prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after September 30, 2011, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

What makes American Funds different?

For 80 years, we have followed a consistent philosophy to benefit our investors. Our 33 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•A long-term, value-oriented approach

We seek to buy securities at reasonable prices relative to their prospects and hold them for the long term.

•An extensive global research effort

Our investment professionals travel the world to find the best investment opportunities and gain a comprehensive understanding of companies and markets.

•The multiple portfolio counselor system

Our unique approach to portfolio management, developed more than 50 years ago, blends teamwork with individual accountability and has provided American Funds with a sustainable method of achieving fund objectives.

•Experienced investment professionals

American Funds portfolio counselors have an average of 27 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.

•A commitment to low management fees

The American Funds provide exceptional value for shareholders, with management fees that are among the lowest in the mutual fund industry.

American Funds span a range of investment objectives

•Growth funds

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

SMALLCAP World Fund®

•Growth-and-income funds

American Mutual Fund®

Capital World Growth and Income FundSM

>Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

•Equity-income funds

Capital Income Builder®

The Income Fund of America®

•Balanced funds

American Balanced Fund®

American Funds Global Balanced FundSM

•Bond funds

American Funds Mortgage FundSM

American High-Income TrustSM

The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

•Tax-exempt bond funds

American Funds Short-Term Tax-Exempt Bond FundSM

American High-Income Municipal Bond Fund®

Limited Term Tax-Exempt Bond Fund of AmericaSM

The Tax-Exempt Bond Fund of America®

State-specific tax-exempt funds

American Funds Tax-Exempt Fund of New YorkSM

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•Money market fund

American Funds Money Market Fund®

•American Funds Target Date Retirement Series®

The Capital Group Companies

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

Lit. No. MFGESR-910-0811P

Litho in USA KBDA/ALD/8083-S28721

Printed on paper containing 10% post-consumer waste

Printed with inks containing soy and/or vegetable oil

ITEM 2 – Code of Ethics

Fundamental InvestorsSM

Investment portfolio

June 30, 2011

unaudited

Common stocks — 95.81%	Shares			Value (000)

INFORMATION TECHNOLOGY — 14.75%
Microsoft Corp.		25,920,000		$	673,920
Texas Instruments Inc.		19,270,300			632,644
Apple Inc.1		1,663,800			558,488
Google Inc., Class A1		1,032,000			522,584
Samsung Electronics Co. Ltd.2		606,500			471,396
EMC Corp.1		16,875,000			464,906
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		24,234,400			305,596
Taiwan Semiconductor Manufacturing Co. Ltd.2		55,025,000			139,272
Oracle Corp.		12,407,950			408,346
Intuit Inc.1		6,450,000			334,497
Maxim Integrated Products, Inc.		12,687,000			324,280
Corning Inc.		17,790,000			322,888
Avago Technologies Ltd.		8,280,000			314,640
First Solar, Inc.1		2,109,800			279,063
Yahoo! Inc.1		16,610,000			249,814
FLIR Systems, Inc.		6,050,000			203,945
Amphenol Corp.		3,750,000			202,462
Fidelity National Information Services, Inc.		5,583,600			171,919
Microchip Technology Inc.		4,500,000			170,595
Xilinx, Inc.		4,500,000			164,115
Analog Devices, Inc.		4,000,000			156,560
TE Connectivity Ltd.		3,845,000			141,342
Visa Inc., Class A		1,520,269			128,098
Automatic Data Processing, Inc.		2,010,000			105,887
Infineon Technologies AG2		9,070,000			101,776
Lender Processing Services, Inc.		3,807,500			79,615
Linear Technology Corp.		1,860,000			61,417
KLA-Tencor Corp.		1,170,000			47,362
ASML Holding NV2		1,219,568			44,932
Arm Holdings PLC2		3,135,000			29,650
Mail.ru Group Ltd. (GDR)1,2		140,000			4,669
					7,816,678

ENERGY — 13.46%
Suncor Energy Inc.		28,723,361			1,125,764
Royal Dutch Shell PLC, Class B (ADR)		5,562,700			399,124
Royal Dutch Shell PLC, Class A (ADR)		3,630,000			258,202
Occidental Petroleum Corp.		4,784,244			497,753
Tenaris SA (ADR)		10,060,000			460,044
ConocoPhillips		5,500,000			413,545
FMC Technologies, Inc.1		8,200,000			367,278
Chevron Corp.		3,547,763			364,852
Baker Hughes Inc.		4,500,000			326,520
Denbury Resources Inc.1		13,830,000			276,600
Subsea 7 SA1,2		10,340,000			264,499
Crescent Point Energy Corp.		5,454,200			252,054
Schlumberger Ltd.		2,800,000			241,920
Hess Corp.		3,000,000			224,280
Concho Resources Inc.1		2,365,000			217,225
Talisman Energy Inc.		9,750,000			199,777
Murphy Oil Corp.		2,740,000			179,908
CONSOL Energy Inc.		3,700,000			179,376
Imperial Oil Ltd.		3,608,739			168,080
Cenovus Energy Inc.		4,400,000			166,064
Technip SA2		1,225,000			131,220
TOTAL SA2		1,850,000			106,997
Oceaneering International, Inc.		2,449,764			99,215
Noble Energy, Inc.		800,000			71,704
Petróleo Brasileiro SA – Petrobras, ordinary nominative (ADR)		1,960,000			66,366
Apache Corp.		460,300			56,796
INPEX CORP.2		1,350			9,967
					7,125,130

INDUSTRIALS — 13.38%
Union Pacific Corp.		8,885,000			927,594
Schneider Electric SA2		3,242,272			541,693
Lockheed Martin Corp.		6,558,200			531,017
Parker Hannifin Corp.		5,750,000			516,005
General Electric Co.		22,000,000			414,920
Deere & Co.		4,000,000			329,800
CSX Corp.		12,075,000			316,606
Boeing Co.		4,200,000			310,506
Siemens AG2		2,020,000			277,356
Northrop Grumman Corp.		3,966,243			275,059
European Aeronautic Defence and Space Co. EADS NV2		8,000,000			267,771
Vallourec SA2		2,150,000			261,810
Joy Global Inc.		2,238,638			213,208
Waste Management, Inc.		5,400,000			201,258
Fastenal Co.		5,000,000			179,950
Honeywell International Inc.		2,800,000			166,852
Precision Castparts Corp.		1,000,000			164,650
Dun & Bradstreet Corp.		2,000,000			151,080
Ingersoll-Rand PLC		3,160,800			143,532
Rockwell Automation		1,500,000			130,140
MTU Aero Engines Holding AG2		1,475,220			117,699
Navistar International Corp.1		2,000,000			112,920
Caterpillar Inc.		1,000,000			106,460
Stericycle, Inc.1		1,000,000			89,120
United Technologies Corp.		870,000			77,004
General Dynamics Corp.		1,000,000			74,520
Grafton Group PLC, units2,3		15,037,000			73,587
PACCAR Inc		1,000,000			51,090
DCC PLC2		1,469,400			41,862
Huntington Ingalls Industries, Inc.1		474,373			16,366
					7,081,435

CONSUMER DISCRETIONARY — 12.10%
Home Depot, Inc.		33,878,000			1,227,061
Amazon.com, Inc.1		2,620,000			535,764
Walt Disney Co.		11,800,000			460,672
Starbucks Corp.		11,000,000			434,390
Virgin Media Inc.		13,385,000			400,613
Time Warner Inc.		10,775,000			391,887
Comcast Corp., Class A		13,465,000			341,203
Industria de Diseño Textil, SA2		2,320,000			211,855
McDonald’s Corp.		2,380,000			200,682
Vivendi SA2		7,000,000			194,660
Intercontinental Hotels Group PLC2		9,110,000			186,430
Johnson Controls, Inc.		4,100,000			170,806
Macy’s, Inc.		5,500,000			160,820
Expedia, Inc.		4,735,000			137,268
Shaw Communications Inc., Class B, nonvoting		6,000,000			136,980
Daimler AG2		1,650,000			124,180
General Motors Co.1		4,000,000			121,440
Marriott International, Inc., Class A		3,352,545			118,982
Hyundai Mobis Co., Ltd.2		313,000			117,459
Chipotle Mexican Grill, Inc.1		379,832			117,060
DIRECTV, Class A1		2,250,000			114,345
Lowe’s Companies, Inc.		4,430,000			103,263
SES SA, Class A (FDR)2		3,287,485			92,225
BorgWarner Inc.1		1,100,000			88,869
Focus Media Holding Ltd. (ADR)1		2,800,000			87,080
Penn National Gaming, Inc.1		1,763,000			71,119
CarMax, Inc.1		875,000			28,936
McGraw-Hill Companies, Inc.		650,000			27,241
Liberty Media Corp., Series A1		65,000			4,891
					6,408,181

FINANCIALS — 10.49%
American Express Co.		9,770,000			505,109
Citigroup Inc.		11,560,000			481,358
Wells Fargo & Co.		15,195,200			426,377
ACE Ltd.		5,700,000			375,174
Marsh & McLennan Companies, Inc.		10,865,000			338,879
Moody’s Corp.		7,660,000			293,761
Bank of America Corp.		24,500,000			268,520
Goldman Sachs Group, Inc.		1,800,000			239,562
Aon Corp.		4,560,000			233,928
Digital Realty Trust, Inc.		3,435,000			212,214
HCP, Inc.		5,349,600			196,277
Weyerhaeuser Co.		8,754,731			191,378
SunTrust Banks, Inc.		6,250,000			161,250
PNC Financial Services Group, Inc.		2,600,000			154,986
AMP Ltd.2		26,993,082			142,148
Industrial and Commercial Bank of China Ltd., Class H2		175,769,000			134,585
XL Group PLC		6,000,000			131,880
New York Community Bancorp, Inc.		8,190,000			122,768
United Overseas Bank Ltd.2		6,889,135			110,684
Jefferies Group, Inc.		5,000,000			102,000
JPMorgan Chase & Co.		2,472,000			101,204
U.S. Bancorp		3,957,000			100,943
Travelers Companies, Inc.		1,500,000			87,570
Cincinnati Financial Corp.		3,000,000			87,540
ICICI Bank Ltd.2		2,600,000			63,729
ICICI Bank Ltd. (ADR)		105,000			5,177
CNO Financial Group, Inc.1		7,900,000			62,489
Canadian Western Bank		1,500,000			47,903
CapitalSource Inc.		6,860,954			44,253
QBE Insurance Group Ltd.2		2,185,000			40,565
Synovus Financial Corp.		17,400,000			36,192
Berkshire Hathaway Inc., Class A1		250			29,026
Hospitality Properties Trust		1,000,000			24,250
					5,553,679

HEALTH CARE — 9.33%
Merck & Co., Inc.		39,176,664			1,382,544
Bristol-Myers Squibb Co.		27,050,000			783,368
Baxter International Inc.		10,175,000			607,346
Roche Holding AG2		3,000,000			501,897
Pfizer Inc		17,470,000			359,882
Cardinal Health, Inc.		5,025,000			228,235
AstraZeneca PLC (United Kingdom)2		3,000,000			149,795
Hospira, Inc.1		2,404,143			136,219
Novartis AG2		1,990,000			121,902
Johnson & Johnson		1,750,000			116,410
Gilead Sciences, Inc.1		2,800,000			115,948
Laboratory Corporation of America Holdings1		1,100,000			106,469
Vertex Pharmaceuticals Inc.1		2,000,000			103,980
Aetna Inc.		1,935,000			85,314
Regeneron Pharmaceuticals, Inc.1		1,220,500			69,215
Medco Health Solutions, Inc.1		926,000			52,338
UnitedHealth Group Inc.		210,000			10,832
Intuitive Surgical, Inc.1		15,000			5,582
					4,937,276

MATERIALS — 8.77%
Dow Chemical Co.		23,607,900			849,884
Syngenta AG2		1,760,000			594,142
Potash Corp. of Saskatchewan Inc.		6,900,000			393,231
Cliffs Natural Resources Inc.		3,260,000			301,387
Rio Tinto PLC2		3,850,000			278,006
E.I. du Pont de Nemours and Co.		5,000,000			270,250
FMC Corp.		2,699,000			232,168
LyondellBasell Industries NV, Class A		5,920,000			228,038
PPG Industries, Inc.		2,166,649			196,710
Ecolab Inc.		3,300,000			186,054
Alcoa Inc.		11,000,000			174,460
CRH PLC2		6,454,299			142,926
Newmont Mining Corp.		2,500,000			134,925
Orica Ltd.2		4,155,000			120,500
MeadWestvaco Corp.		3,350,000			111,589
Praxair, Inc.		690,000			74,789
HudBay Minerals Inc.		5,000,000			74,654
Sigma-Aldrich Corp.		980,000			71,912
Mosaic Co.1		1,000,000			67,730
Steel Dynamics, Inc.		4,080,000			66,300
Nucor Corp.		1,500,000			61,830
Holcim Ltd2		120,000			9,056
					4,640,541

CONSUMER STAPLES — 6.01%
Philip Morris International Inc.		8,250,000			550,852
Altria Group, Inc.		16,535,100			436,692
Costco Wholesale Corp.		3,930,000			319,273
CVS/Caremark Corp.		7,705,000			289,554
Kellogg Co.		3,500,000			193,620
H.J. Heinz Co.		3,500,000			186,480
Kraft Foods Inc., Class A		4,790,000			168,752
British American Tobacco PLC2		3,640,000			159,553
Procter & Gamble Co.		2,355,100			149,714
Unilever NV, depository receipts2		4,290,000			140,541
Diageo PLC2		6,500,000			132,809
Coca-Cola Amatil Ltd.2		10,725,000			131,599
Tingyi (Cayman Islands) Holding Corp.2		39,105,000			121,082
PepsiCo, Inc.		1,400,000			98,602
C&C Group PLC2		8,948,312			46,568
Avon Products, Inc.		1,600,000			44,800
Pernod Ricard SA2		100,000			9,857
					3,180,348

TELECOMMUNICATION SERVICES — 2.89%
Verizon Communications Inc.		21,305,000			793,185
AT&T Inc.		11,000,000			345,510
SOFTBANK CORP.2		4,800,000			181,799
Vodafone Group PLC2		44,500,000			118,264
Portugal Telecom, SGPS, SA2		9,062,280			89,742
					1,528,500

UTILITIES — 2.64%
PG&E Corp.		5,380,000			226,121
Edison International		5,250,000			203,439
American Water Works Co., Inc.		5,000,000			147,250
National Grid PLC2		13,615,000			133,981
NV Energy, Inc.		7,000,000			107,450
Exelon Corp.		2,370,200			101,539
Dominion Resources, Inc.		2,000,000			96,540
PPL Corp.		2,912,201			81,047
GDF SUEZ2		1,950,000			71,364
Duke Energy Corp.		3,500,000			65,905
NextEra Energy, Inc.		1,050,000			60,333
SUEZ Environnement Co.2		2,624,712			52,312
Xcel Energy Inc.		1,500,000			36,450
Electricité de France SA2		428,993			16,841
					1,400,572

MISCELLANEOUS — 1.99%
Other common stocks in initial period of acquisition					1,053,973


Total common stocks (cost: $38,972,604,000)					50,726,313


	Principal amount
Convertible securities — 0.03%		(000	)

INDUSTRIALS — 0.03%
United Continental Holdings, Inc. 4.50% convertible debentures 2015	$	12,275			17,461


Total convertible securities (cost: $12,275,000)					17,461



	Principal amount			Value
Bonds & notes — 0.01%		(000	)		(000	)

MORTGAGE-BACKED OBLIGATIONS4 — 0.01%
ChaseFlex Trust, Series 2007-2, Class A-1, 0.466% 20375	$	8,212		$	5,599


Total bonds & notes (cost: $5,865,000)					5,599


Short-term securities — 3.57%

Fannie Mae 0.10%–0.21% due 8/9/2011–2/1/2012		465,171			465,049
Freddie Mac 0.115%–0.20% due 7/18–12/15/2011		402,200			402,138
U.S. Treasury Bills 0.07%–0.258% due 7/21/2011–5/3/2012		369,000			368,917
Coca-Cola Co. 0.14%–0.22% due 7/12–9/12/20116		222,500			222,472
Johnson & Johnson 0.18%–0.20% due 8/2–8/30/20116		110,300			110,288
Straight-A Funding LLC 0.15%–0.20% due 7/11–8/19/20116		107,000			106,987
Federal Farm Credit Banks 0.14%–0.19% due 2/6–3/8/2012		75,000			74,919
Jupiter Securitization Co., LLC 0.15% due 8/25/20116		26,300			26,294
Falcon Asset Securitization Co., LLC 0.17% due 9/19/20116		20,000			19,994
Google Inc. 0.12% due 8/31/20116		25,000			24,992
Federal Home Loan Bank 0.12% due 11/18/2011		22,490			22,481
Abbott Laboratories 0.07% due 7/26/20116		21,900			21,899
Hewlett-Packard Co. 0.09% due 7/22/20116		8,000			8,000
eBay Inc. 0.15% due 7/20/20116		7,950			7,949
Paccar Financial Corp. 0.16% due 8/12/2011		6,000			5,998

Total short-term securities (cost: $1,888,076,000)					1,888,377


Total investment securities (cost: $40,878,820,000)					52,637,750
Other assets less liabilities					306,153

Net assets				$	52,943,903

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.

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

2Valued under fair value procedures adopted by authority of the board of trustees. The total value of all such securities, including those in “Miscellaneous” was $7,804,905,000, which represented 14.74% of the net assets of the fund. This entire amount relates to certain securities trading outside the U.S. whose values were adjusted as a result of significant market movements following the close of local trading.

3Represents an affiliated company as defined under the Investment Company Act of 1940.

4Principal payments may be made periodically. Therefore, the effective maturity date may be earlier than the stated maturity date.

5Coupon rate may change periodically.

6Acquired in a transaction exempt from registration under 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 $548,875,000, which represented 1.04% of the net assets of the fund.

Key to abbreviation

ADR = American Depositary Receipts

GDR = Global Depositary Receipts

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

MFGEFP-910-0811O-S29481

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

(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.

(a)(1)	Not applicable for filing of semi-annual reports to shareholders.

(a)(2)	The certifications required by Rule 30a-2 of the Investment Company Act of 1940 and Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

	AMERICAN FUNDS FUNDAMENTAL INVESTORS

	By /s/ Paul G. Haaga, Jr.
	Paul G. Haaga, Jr., Executive Vice President and Principal Executive Officer

	Date: August 31, 2011

1.	I have reviewed this report on Form N-CSR of American Funds Fundamental Investors;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

	a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

	d) Disclosed in this report any change in the registrant’s internal control over financial reporting 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; and

5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):

	a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

	b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

1.	I have reviewed this report on Form N-CSR of American Funds Fundamental Investors;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

	a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

	d) Disclosed in this report any change in the registrant’s internal control over financial reporting 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; and

5.	The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's Board of Trustees (or persons performing the equivalent functions):

	a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

	b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

1)	The Registrant's periodic report on Form N-CSR for the period ended June 30, 2011 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2)	The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Principal Executive Officer	Principal Financial Officer

AMERICAN FUNDS FUNDAMENTAL INVESTORS	AMERICAN FUNDS FUNDAMENTAL INVESTORS


/s/ Paul G. Haaga, Jr.	/s/ Jeffrey P. Regal
Paul G. Haaga, Jr., Executive Vice President	Jeffrey P. Regal, Treasurer

Date: August 31, 2011	Date: August 31, 2011