-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GMbDZdqIZiIJ24YuIewczKqk0Opx7HXx4wEWc1DSXejVpt8I5kTVqjlQ1P9QeOf0 MASqLNWR/0ikcPFVUu7cWQ== 0000051931-09-001408.txt : 20091030 0000051931-09-001408.hdr.sgml : 20091030 20091030113320 ACCESSION NUMBER: 0000051931-09-001408 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20090831 FILED AS OF DATE: 20091030 DATE AS OF CHANGE: 20091030 EFFECTIVENESS DATE: 20091030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMCAP FUND INC CENTRAL INDEX KEY: 0000004405 IRS NUMBER: 952482877 STATE OF INCORPORATION: MD FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-01435 FILM NUMBER: 091146766 BUSINESS ADDRESS: STREET 1: 333 S HOPE ST - 55TH FL (MICG) CITY: LOS ANGELES STATE: CA ZIP: 90071 BUSINESS PHONE: 213-486-9200 MAIL ADDRESS: STREET 1: 333 S HOPE ST - 55TH FL (MICG) CITY: LOS ANGELES STATE: CA ZIP: 90071 0000004405 S000008817 AMCAP FUND INC C000024003 Class A AMCPX C000024004 Class R-1 RAFAX C000024005 Class R-2 RAFBX C000024006 Class R-3 RAFCX C000024007 Class R-4 RAFEX C000024008 Class R-5 RAFFX C000024009 Class B AMPBX C000024010 Class C AMPCX C000024011 Class F-1 AMPFX C000024012 Class 529-A CAFAX C000024013 Class 529-B CAFBX C000024014 Class 529-C CAFCX C000024015 Class 529-E CAFEX C000024016 Class 529-F-1 CAFFX C000068557 Class F-2 AMCFX C000076711 Class R-6 RAFGX N-CSRS 1 amcap_ncsr.htm N-CSR Unassociated Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM N-CSR
Certified Shareholder Report of
Registered Management Investment Companies

Investment Company Act File Number: 811-01435



AMCAP Fund, Inc.
(Exact Name of Registrant as Specified in Charter)

333 South Hope Street
Los Angeles, California 90071
(Address of Principal Executive Offices)




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

Date of fiscal year end: February 28 or 29

Date of reporting period: August 31, 2009





Vincent P. Corti
Capital Research and Management Company
333 South Hope Street
Los Angeles, California 90071
(Name and Address of Agent for Service)


Copies to:
Eric A.S. Richards
O’Melveny & Myers LLP
400 South Hope Street, 10th Floor
Los Angeles, California 90071
(Counsel for the Registrant)


 
 

 

ITEM 1 – Reports to Stockholders

[logo - American Funds®]

The right choice for the long term®

AMCAP Fund

[photo of the trunk of a large tree - more trees in the background]
 
Semi-annual report for the six months ended August 31, 2009

AMCAP Fund® seeks long-term growth of capital by investing primarily in U.S. companies with a record of above-average growth.
 
This fund is one of the 30 American Funds. For nearly 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 returns on a $1,000 investment with all distributions reinvested for periods ended September 30, 2009 (the most recent calendar quarter-end):
 
                   
Class A shares
 
1 year
   
5 years
   
10 years
 
                   
Reflecting 5.75% maximum sales charge
                 
                   
Average annual total return
          0.81 %     2.75 %
Cumulative total return
    –4.42 %     4.12 %     31.10 %

The total annual fund operating expense ratio was 0.81% for Class A shares for the 12 months ended September 30, 2009. Note that the expense ratio shown above differs from those shown in the Financial Highlights table on pages 22 to 28 and the Expense Example on pages 29 and 30, which are annualized for the six-month period ended August 31, 2009.
 
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. Fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 22 to 28 for details.

Results for other share classes can be found on page 31.

Equity investments are subject to market fluctuations. 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 the trunk of a large tree - more trees in the background]
 
U.S. stocks rallied sharply during the past six months ended August 31, 2009, as the global financial crisis eased and signs of recovery emerged. Today the U.S. economy has improved but is far from vigorous. A number of fundamental issues in the economy and the markets have yet to be resolved.

AMCAP posted a total return of 46.0% for the six months ended August 31, exceeding the 40.5% total return of the unmanaged Standard & Poor’s 500 Composite Index, a broad measure of mostly large U.S. stocks. AMCAP also outpaced the 45.0% total return of the Lipper Multi-Cap Core Funds Index and the 41.6% total return of the Lipper Growth Funds Index.

While we are pleased to report AMCAP’s strong returns, it is worth pointing out that the past six-month period began just before the market lows and ended close to the near-term market highs. In many ways, this period reflects a bounce back from the deep pessimism of the period leading up to the market’s low on March 9. Progress in the overall market from here will depend on how fast and how pervasively the signs of recovery turn into broad fundamental improvement.
 
Over the longer term, AMCAP continued to exceed the S&P 500 and the fund’s two Lipper peer-group indexes by a significant margin. For its 42-year lifetime, AMCAP provided an average annual return of 11.1%, outpacing the 9.2% of the S&P 500, the 9.0% of the Lipper Multi-Cap Core Funds Index and the 8.2% of the Lipper Growth Funds Index. The table below shows cumulative returns during selected periods. Note that the 10-year period encompasses two of the most severe declines in the postwar period.

Cumulative total returns
                       
                         
For periods ended August 31, 2009
 
Six months
   
1 year
   
5 years
   
10 years
 
                         
AMCAP (Class A shares)
    46.0 %     –10.1 %     8.9 %     33.5 %
Standard & Poor’s 500 Composite Index*
    40.5       –18.2       2.5       –7.7  
Lipper Multi-Cap Core Funds Index
    45.0       –17.0       9.2       9.7  
Lipper Growth Funds Index
    41.6       –19.7       0.6       –17.5  
                                 
*The S&P 500 is unmanaged, and its results do not reflect the effect of sales charges, commissions or expenses.
         
Lipper indexes do not include the effect of sales charges.
                               

Investment results analysis
The past six months ended August 31 was a very strong period for AMCAP. Many stocks bounced back from steep price losses in fiscal 2009 ended February 28, one of the most difficult periods in the fund’s history. Information technology is the fund’s largest industry sector, with 27.5% of the investment portfolio, followed by consumer discretionary stocks (16.3%), health care (11.9%), industrials (11.8%), financials (7.4%), energy (6.6%) and consumer staples (5.7%). AMCAP had 7.1% of its portfolio in cash and equivalents as of August 31.
 
Looking ahead
Signs of an economic recovery in the United States are clear, but uncertainties about the pace and strength of the upturn still exist. Unemployment remains high, and consumer spending has not yet returned to healthy levels. Personal and government debt levels remain high. Loan problems in commercial real estate continue, though there appears to be a recovery beginning in many residential real estate markets.

There is uncertainty about rising taxes and health care. Until these issues are resolved, small businesses may find it difficult to move forward with construction of new plants or make other major capital expenditures. Consumers may take some time to rebuild their balance sheets. Thus, this recovery may take longer than many previous recoveries and be more fragile than past upturns.

As the recovery continues, it is easy to get caught up in the minute-by-minute media coverage of fluctuating news and stock prices. But it is important to realize that underlying the sometimes volatile stock prices are real companies that provide real goods and services, with managements that are working hard, seeking long-term growth and fundamental strength. It’s good to remember that these are the types of companies we have in AMCAP.

At AMCAP, we are pleased to have a large and experienced team of analysts and portfolio counselors to carefully monitor economic conditions, industries and companies during this challenging time. As usual, we will continue to follow our long-term strategy of investing in quality growth companies at attractive prices.

We thank you for taking a long-term perspective on your mutual fund investments and for your continued support of AMCAP Fund.

Cordially,

/s/ Claudia P. Huntington

Claudia P. Huntington
Vice Chairman of the Board


/s/ Timothy D. Armour

Timothy D. Armour
President

October 13, 2009

For current information about the fund, visit americanfunds.com.
 
 
Summary investment portfolio, August 31, 2009
unaudited
 
The following summary investment portfolio is designed to streamline the report and help investors better focus on a fund’s principal holdings. See the inside back cover for details on how to obtain a complete schedule of portfolio holdings.
 
[begin pie chart]
   
Percent of
 
Industry sector diversification
 
net assets
 
       
Information technology     27.51  
Consumer discretionary     16.27  
Health care     11.91  
Industrials     11.77  
Financials     7.40  
Other industries
    18.03  
Short-term securities & other assets less liabilities
    7.11  
[end pie chart]
 
 
               
Percent
 
         
Value
   
of net
 
Common stocks  - 92.89%
 
Shares
      (000 )  
assets
 
                     
Information technology  - 27.51%
                   
Microsoft Corp.
    20,295,000     $ 500,272       2.71 %
Oracle Corp.
    17,920,000       391,910       2.12  
Accenture Ltd, Class A
    10,060,000       331,980       1.80  
Yahoo! Inc. (1)
    21,395,000       312,581       1.69  
SAP AG (2)
    5,163,300       252,375       1.37  
Cisco Systems, Inc. (1)
    11,669,300       252,057       1.37  
Google Inc., Class A (1)
    527,300       243,439       1.32  
Hewlett-Packard Co.
    5,400,000       242,406       1.31  
Corning Inc.
    15,260,000       230,121       1.25  
Apple Inc. (1)
    1,250,000       210,262       1.14  
Automatic Data Processing, Inc.
    4,100,000       157,235       .85  
MasterCard Inc., Class A
    725,000       146,907       .80  
Intel Corp.
    7,000,000       142,240       .77  
Logitech International SA (1)
    7,581,556       138,591       .75  
Other securities
            1,522,685       8.26  
              5,075,061       27.51  
                         
Consumer discretionary  - 16.27%
                       
Omnicom Group Inc.
    7,951,000       288,780       1.57  
Target Corp.
    5,795,600       272,393       1.48  
Johnson Controls, Inc.
    10,621,700       263,099       1.43  
Lowe's Companies, Inc.
    10,999,700       236,494       1.28  
YUM! Brands, Inc.
    5,976,000       204,678       1.11  
Best Buy Co., Inc.
    5,400,000       195,912       1.06  
Time Warner Inc.
    6,300,000       175,833       .95  
O'Reilly Automotive, Inc. (1)
    3,819,800       146,222       .79  
Staples, Inc.
    6,565,000       141,870       .77  
Carnival Corp., units
    4,725,200       138,212       .75  
Other securities
            937,158       5.08  
              3,000,651       16.27  
                         
Health care  - 11.91%
                       
Medtronic, Inc.
    10,030,000       384,149       2.08  
McKesson Corp.
    4,600,000       261,556       1.42  
WellPoint, Inc. (1)
    4,000,000       211,400       1.15  
Aetna Inc.
    6,313,700       179,940       .97  
Hologic, Inc. (1)
    9,370,000       154,137       .83  
Roche Holding AG (2)
    865,000       137,798       .75  
Other securities
            868,079       4.71  
              2,197,059       11.91  
                         
Industrials  - 11.77%
                       
Precision Castparts Corp.
    3,921,621       357,966       1.94  
General Dynamics Corp.
    4,365,000       258,364       1.40  
Robert Half International Inc.
    7,359,000       193,468       1.05  
Manpower Inc.
    3,506,000       181,260       .98  
United Technologies Corp.
    2,850,000       169,176       .92  
United Parcel Service, Inc., Class B
    2,820,000       150,757       .82  
CSX Corp.
    3,242,115       137,790       .75  
Union Pacific Corp.
    2,303,300       137,760       .74  
Other securities
            584,707       3.17  
              2,171,248       11.77  
                         
Financials  - 7.40%
                       
Capital One Financial Corp.
    7,251,200       270,397       1.47  
American Express Co.
    7,500,000       253,650       1.37  
Bank of New York Mellon Corp.
    7,136,000       211,297       1.15  
JPMorgan Chase & Co.
    3,700,000       160,802       .87  
Other securities
            467,932       2.54  
              1,364,078       7.40  
                         
Energy  - 6.63%
                       
Schlumberger Ltd.
    5,740,000       322,588       1.75  
FMC Technologies, Inc. (1)
    3,420,000       163,134       .88  
Other securities
            736,925       4.00  
              1,222,647       6.63  
                         
Consumer staples  - 5.68%
                       
PepsiCo, Inc.
    3,042,481       172,418       .93  
Walgreen Co.
    4,700,000       159,236       .86  
L'Oréal SA (2)
    1,450,000       143,079       .78  
Other securities
            572,886       3.11  
              1,047,619       5.68  
                         
Materials  - 2.02%
                       
Other securities
            372,986       2.02  
                         
                         
Other - 0.56%
                       
Other securities
            102,402       .56  
                         
                         
Miscellaneous  -  3.14%
                       
Other common stocks in initial period of acquisition
            579,831       3.14  
                         
                         
Total common stocks (cost: $15,380,861,000)
            17,133,582       92.89  
                         
                         
                         
Convertible securities  - 0.00%
                       
                         
Miscellaneous  -  0.00%
                       
Other convertible securities in initial period of acquisition
            583       .00  
                         
                         
Total convertible securities (cost: $230,000)
            583       .00  
                         
                         
                         
   
Principal amount
                 
Short-term securities  - 7.41%
    (000 )                
                         
Freddie Mac 0.20%-0.70% due  9/14/2009-5/17/2010
  $ 433,000       432,815       2.35  
U.S. Treasury Bills  0.161%-0.39% due 9/15/2009-2/4/2010
    321,100       321,027       1.74  
Federal Home Loan Bank  0.145-0.56% due 9/2-11/25/2009
    243,553       243,506       1.32  
Other securities
            369,329       2.00  
                         
                         
Total short-term securities (cost: $1,366,560,000)
            1,366,677       7.41  
                         
                         
Total investment securities (cost: $16,747,651,000)
            18,500,842       100.30  
Other assets less liabilities
            (56,068 )     (.30 )
                         
Net assets
          $ 18,444,774       100.00 %
 
"Miscellaneous" securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.
"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio. Some of these securities (with aggregate value of $188,495,000, which represented 1.02% of the net assets of the fund) may be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers.
 
Investments in affiliates
 
A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares of that company. The value of the fund's holdings in affiliated companies is included in "Other securities" under their respective industry sectors in the preceding summary investment portfolio.  Further details on these holdings and related transactions during the six months ended August 31, 2009, appear below.
 
   
Beginning
shares
   
Additions
   
Reductions
   
Ending
shares
     
Dividend
income
 (000)
     
Value of affiliates
at 8/31/09 (000)
 
Harman International Industries, Inc.
    3,320,000       755,900       -       4,075,900     $ -     $ 122,236  
Tractor Supply Co.1
    1,525,000       500,000       -       2,025,000       -       95,296  
Bare Escentuals, Inc.1
    5,735,000       -       -       5,735,000       -       53,221  
Portfolio Recovery Associates, Inc. 1
    975,391       17,609       -       993,000       -       43,613  
Medicis Pharmaceutical Corp., Class A3
    3,625,000       -       3,625,000       -       250       -  
Williams-Sonoma, Inc.3
    6,174,900       173,100       4,448,000       1,900,000       1,524       -  
                                    $ 1,774     $ 314,366  
 
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 directors. The total value of all such securities, including those in “Miscellaneous” and “Other securities,” was $779,800,000, which represented 4.23% 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) Unaffiliated issuer at 8/31/2009.
 
See Notes to Financials Statements
 
 
 
Financial statements
 
Statement of assets and liabilities
       
unaudited
 
at August 31, 2009
    (dollars in thousands)  
             
Assets:
           
 Investment securities, at value:
           
  Unaffiliated issuers (cost: $16,336,489)
  $ 18,186,476        
  Affiliated issuers (cost: $411,162)
    314,366     $ 18,500,842  
 Cash
            121  
 Receivables for:
               
  Sales of investments
    13,520          
  Sales of fund's shares
    22,039          
  Dividends and interest
    25,860       61,419  
              18,562,382  
                 
Liabilities:
               
 Payables for:
               
  Purchases of investments
    62,124          
  Repurchases of fund's shares
    32,918          
  Investment advisory services
    5,080          
  Services provided by affiliates
    13,665          
  Directors' deferred compensation
    1,664          
  Other
    2,157       117,608  
Net assets at August 31, 2009
          $ 18,444,774  
                 
Net assets consist of:
               
 Capital paid in on shares of capital stock
          $ 19,941,299  
 Undistributed net investment income
            47,294  
 Accumulated net realized loss
            (3,297,152 )
 Net unrealized appreciation
            1,753,333  
Net assets at August 31, 2009
          $ 18,444,774  
 
 
(dollars and shares in thousands, except per-share amounts)  
Total authorized capital stock - 2,000,000 shares, $1.00 par value (1,231,646 total shares outstanding)
             
   
Net assets
   
Shares outstanding
   
Net asset value per share*
 
Class A
  $ 12,237,741       812,457     $ 15.06  
Class B
    654,916       45,224       14.48  
Class C
    1,017,691       70,823       14.37  
Class F-1
    1,376,491       91,757       15.00  
Class F-2
    257,221       17,041       15.09  
Class 529-A
    425,151       28,322       15.01  
Class 529-B
    68,324       4,715       14.49  
Class 529-C
    121,997       8,416       14.50  
Class 529-E
    24,713       1,665       14.85  
Class 529-F-1
    17,412       1,159       15.02  
Class R-1
    35,818       2,452       14.61  
Class R-2
    356,984       24,457       14.60  
Class R-3
    507,865       34,120       14.88  
Class R-4
    385,758       25,727       14.99  
Class R-5
    652,182       43,128       15.12  
Class R-6
    304,510       20,183       15.09  
   
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Classes A and 529-A, for which the maximum offering prices per share were $15.98 and $15.93, respectively.
 
                         
See Notes to Financial Statements
                       
 
 
Statement of operations
       
unaudited
 
for the six months ended August 31, 2009
    (dollars in thousands)
             
Investment income:
           
 Income:
           
  Dividends (net of non-U.S.
           
            taxes of $2,607; also includes
           
            $1,774 from affiliates)
  $ 120,350        
  Interest
    2,439     $ 122,789  
                 
 Fees and expenses*:
               
  Investment advisory services
    26,809          
  Distribution services
    25,512          
  Transfer agent services
    11,652          
  Administrative services
    4,572          
  Reports to shareholders
    968          
  Registration statement and prospectus
    2,677          
  Directors' compensation
    660          
  Auditing and legal
    44          
  Custodian
    116          
  State and local taxes
    1          
  Other
    642       73,653  
 Net investment income
            49,136  
                 
Net realized loss and unrealized appreciation
               
 on investments and currency:
               
 Net realized (loss) gain on:
               
  Investments (including $105,659 net loss from affiliates)
    (994,249 )        
  Currency transactions
    80       (994,169 )
 Net unrealized appreciation on:
               
  Investments
    6,774,363          
  Currency translations
    199       6,774,562  
   Net realized loss and unrealized appreciation
               
    on investments and currency
            5,780,393  
Net increase in net assets resulting
               
 from operations
          $ 5,829,529  
                 
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
         
                 
See Notes to Financial Statements
               
                 
                 
                 
Statements of changes in net assets
      (dollars in thousands)
                 
   
Six months ended August 31, 2009*
   
Year ended
February 28, 2009
 
Operations:
               
 Net investment income
  $ 49,136     $ 188,389  
 Net realized loss on investments and currency transactions
    (994,169 )     (2,303,365 )
 Net unrealized appreciation (depreciation) on investments and currency translations
    6,774,562       (7,434,726 )
  Net increase (decrease) in net assets resulting from operations
    5,829,529       (9,549,702 )
                 
Dividends and distributions paid to shareholders:
               
 Dividends from net investment income
    (181,053 )     -  
 Distributions from net realized gain on investments
    -       (938,078 )
  Total dividends and distributions paid to shareholders
    (181,053 )     (938,078 )
                 
                 
Net capital share transactions
    (218,209 )     (1,160,523 )
                 
Total increase (decrease) in net assets
    5,430,267       (11,648,303 )
                 
Net assets:
               
 Beginning of period
    13,014,507       24,662,810  
 End of period (including undistributed
               
  net investment income: $47,294 and $179,211, respectively)
  $ 18,444,774     $ 13,014,507  
                 
*Unaudited.
               
                 
See Notes to Financial Statements
               
 
 
Notes to financial statements                                                                                                    
       unaudited
 
1. Organization and significant accounting policies
 
Organization – AMCAP Fund, Inc. (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks long-term growth of capital by investing primarily in U.S. companies with a record of above-average growth.

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
 
*Effective April 21, 2009, Class B and 529-B shares of the fund are no longer available for purchase.

On May 1, 2009, the fund made an additional retirement plan share class (Class R-6) available for sale pursuant to an amendment to its registration statement filed with the Securities and Exchange Commission (“SEC”). Refer to the fund’s retirement plan prospectus for more details.

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

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

Net asset value – The fund generally determines its net asset value as of approximately 4:00 p.m. New York time each day the New York Stock Exchange is open.

Security valuation – Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from one or more independent pricing vendors when such prices are available. However, where the investment adviser deems it appropriate to do so, such 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. Vendors base bond prices on, among other things, valuation matrices that incorporate dealer-supplied valuations, proprietary pricing models and evaluations of the yield curve as of approximately 3:00 p.m. New York time. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity.

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 directors. Market quotations may be considered unreliable if events occur that materially affect the value of securities (particularly securities 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 factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. 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.

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

The value of the fund's portfolio holdings may fluctuate in response to events specific to the companies or markets in which the fund invests, as well as economic, political or social events in the U.S. or abroad.

The prices of securities held by the fund may decline in response to certain events taking place around the world, including those directly involving the companies whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and commodity price fluctuations.

The growth-oriented, equity-type securities generally purchased by the fund may involve large price swings and potential for loss.

3. 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 August 31, 2009, 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 2005 and by state tax authorities for tax years before 2004.

Non-U.S. taxation – Dividend income is recorded net of non-U.S. taxes paid.

 
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; capital losses related to sales of certain securities within 30 days of purchase; deferred expenses; cost of investments sold; and net capital losses. The fiscal year in which amounts are distributed may differ from the year in which the net investment income and net realized gains are recorded by the fund 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 February 28, 2009, the components of distributable earnings on a tax basis were as follows:

  (dollars in thousands)  
Undistributed ordinary income
  $ 180,952  
Post-October currency loss deferrals (realized during the period November 1, 2008, through February 28, 2009)*
    (181 )
Capital loss carryforward expiring 2017
    (860,717 )
Post-October capital loss deferrals (realized during the period November 1, 2008, through February 28, 2009)*
    (1,442,045 )
         
* These deferrals are considered incurred in the subsequent year.
       
†The capital loss carryforward will be used to offset any capital gains realized by the fund in the current year or in subsequent years through the expiration date. The fund will not make distributions from capital gains while a capital loss carryforward remains.
 

As of August 31, 2009, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

  (dollars in thousands)  
Gross unrealized appreciation on investment securities
  $ 3,073,026  
Gross unrealized depreciation on investment securities
    (1,320,019 )
Net unrealized appreciation on investment securities
    1,753,007  
Cost of investment securities
    16,747,835  

The tax character of distributions paid to shareholders was as follows (dollars in thousands):
 
   
Six months August 31, 2009
   
Year ended February 28, 2009
 
  Share class  
Ordinary
 income
   
Long-term capital gains
   
Total distributions paid
   
Ordinary
income
   
Long-term capital gains
   
Total distributions paid
 
    
                                   
    Class A
  $ 132,921     $ -     $ 132,921     $ -     $ 621,109     $ 621,109  
    Class B
    1,312       -       1,312       -       39,384       39,384  
    Class C
    2,279       -       2,279       -       58,353       58,353  
    Class F-1
    14,462       -       14,462       -       92,611       92,611  
    Class F-2*
    2,791       -       2,791       -       -       -  
    Class 529-A
    4,608       -       4,608       -       18,357       18,357  
    Class 529-B
    204       -       204       -       3,329       3,329  
    Class 529-C
    395       -       395       -       5,770       5,770  
    Class 529-E
    205       -       205       -       1,043       1,043  
    Class 529-F-1
    230       -       230       -       749       749  
    Class R-1
    166       -       166       -       1,617       1,617  
    Class R-2
    1,184       -       1,184       -       16,318       16,318  
    Class R-3
    3,791       -       3,791       -       27,709       27,709  
    Class R-4
    4,322       -       4,322       -       16,070       16,070  
    Class R-5
    9,204       -       9,204       -       35,659       35,659  
    Class R-6
    2,979       -       2,979       -       -       -  
    Total
  $ 181,053     $ -     $ 181,053     $ -     $ 938,078     $ 938,078  
                                                 
                                                 
*Class F-2 was offered beginning August 1, 2008.
                                 
Class R-6 was offered beginning May 1, 2009.
                                 

4. Fees and transactions with related parties

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

Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.485% on the first $1 billion of daily net assets and decreasing to 0.290% on such assets in excess of $27 billion. For the six months ended August 31, 2009, the investment advisory services fee was $26,809,000, which was equivalent to an annualized rate of 0.331% of average daily net assets.

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

Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of directors approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted on the following page In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes 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, the board of directors has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.25% is not exceeded. As of August 31, 2009, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.

Share class
Currently approved limits
Plan limits
Class A
0.25%
0.25%
Class 529-A
0.25
0.50
Classes B and 529-B
1.00
1.00
Classes C, 529-C and R-1
1.00
1.00
Class R-2
0.75
1.00
Classes 529-E and R-3
0.50
0.75
Classes F-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 to provide transfer agent and other related shareholder services for all share classes other than Classes A and B. 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 declining series of 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 on the previous page for the six months ended August 31, 2009, were as follows (dollars in thousands):

Share class
Distribution services
Transfer agent services
Administrative services
CRMC administrative services
Transfer agent services
Commonwealth of Virginia administrative services
Class A
$12,465
$11,052
Not applicable
Not applicable
Not applicable
Class B
 2,985
 600
Not applicable
Not applicable
Not applicable
Class C
 4,490
 
 
 
 
 
 
Included
in
administrative services
$675
$157
Not applicable
Class F-1
1,482
797
83
Not applicable
Class F-2
 Not applicable
 113
 6
Not applicable
Class 529-A
 386
 267
 49
$184
Class 529-B
 302
 44
 14
 30
Class 529-C
 527
 77
 22
 53
Class 529-E
 53
 16
 3
 11
Class 529-F-1
 -
 11
 2
 8
Class R-1
 153
19
 9
Not applicable
Class R-2
 1,153
 231
 579
Not applicable
Class R-3
 1,105
 330
 171
Not applicable
Class R-4
 411
 236
 9
Not applicable
Class R-5
Not applicable
320
3
Not applicable
Class R-6*
Not applicable
43
-
Not applicable
Total
$25,512
$11,652
$3,179
$1,107
$286
*Class R-6 was offered beginning May 1, 2009.
Amount less than one thousand.

Directors’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, directors who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation of $660,000, shown on the accompanying financial statements, includes $218,000 in current fees (either paid in cash or deferred) and a net increase of $442,000 in the value of the deferred amounts.

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

5. Disclosure of fair value measurements

The fund classifies its assets and liabilities into three levels based on the method 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 generally high-quality and liquid; however, they 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 August 31, 2009 (dollars in thousands):
 
Investment securities:
 
Level 1
   
Level 2
   
Level 3
   
Total
 
Common stocks:
                       
Information technology
  $ 4,757,568     $ 317,493 *   $ -     $ 5,075,061  
Consumer discretionary
    2,976,669       23,982 *     -       3,000,651  
Health care
    2,030,840       166,219 *     -       2,197,059  
Industrials
    2,102,469       68,779 *     -       2,171,248  
Financials
    1,364,078       -       -       1,364,078  
Energy
    1,222,647       -       -       1,222,647  
Consumer staples
    904,540       143,079 *     -       1,047,619  
Materials
    372,986       -       -       372,986  
Other
    102,402       -       -       102,402  
Miscellaneous
    519,583       60,248 *     -       579,831  
Convertible securities
    583       -       -       583  
Short-term securities
    -       1,366,677       -       1,366,677  
Total
  $ 16,354,365     $ 2,146,477     $ -     $ 18,500,842  
                                 
                                 
(*) 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, $779,800,000 of investment securities were classified as Level 2 instead of Level 1.
 

6. Capital share transactions

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

Share class
 
Sales(1)
   
Reinvestments of dividends and distributions
   
Repurchases(1)
   
Net (decrease) increase
 
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
 
Six months August 31, 2009
                                               
Class A
  $ 793,170       60,669     $ 126,496       9,398     $ (1,128,382 )     (89,607 )   $ (208,716 )     (19,540 )
Class B
    15,294       1,255       1,266       98       (74,424 )     (6,128 )     (57,864 )     (4,775 )
Class C
    61,482       4,901       2,165       169       (101,023 )     (8,532 )     (37,376 )     (3,462 )
Class F-1
    151,368       11,457       12,582       939       (301,146 )     (24,342 )     (137,196 )     (11,946 )
Class F-2
    139,930       10,304       1,996       148       (21,785 )     (1,748 )     120,141       8,704  
Class 529-A
    26,296       2,019       4,608       343       (20,308 )     (1,588 )     10,596       774  
Class 529-B
    1,408       119       204       16       (3,116 )     (256 )     (1,504 )     (121 )
Class 529-C
    8,601       686       393       30       (7,606 )     (617 )     1,388       99  
Class 529-E
    1,957       152       205       16       (1,436 )     (115 )     726       53  
Class 529-F-1
    1,930       149       230       17       (1,744 )     (133 )     416       33  
Class R-1
    5,387       424       165       13       (4,397 )     (347 )     1,155       90  
Class R-2
    48,563       3,908       1,183       90       (39,355 )     (3,194 )     10,391       804  
Class R-3
    58,262       4,571       3,784       284       (59,975 )     (4,668 )     2,071       187  
Class R-4
    54,073       4,210       4,319       322       (38,201 )     (3,025 )     20,191       1,507  
Class R-5
    105,455       8,042       9,194       681       (323,099 )     (24,501 )     (208,450 )     (15,778 )
Class R-62
    263,078       19,978       2,979       221       (235 )     (16 )     265,822       20,183  
Total net increase
                                                               
   (decrease)
  $ 1,736,254       132,844     $ 171,769       12,785     $ (2,126,232 )     (168,817 )   $ (218,209 )     (23,188 )
                                                                 
Year ended February 28, 2009
                                                         
Class A
  $ 2,031,710       140,956     $ 596,800       34,698     $ (3,325,626 )     (233,947 )   $ (697,116 )     (58,293 )
Class B
    56,893       4,006       38,002       2,299       (203,079 )     (14,362 )     (108,184 )     (8,057 )
Class C
    184,522       13,664       55,790       3,401       (400,253 )     (28,945 )     (159,941 )     (11,880 )
Class F-1
    503,663       35,048       83,010       4,851       (1,051,411 )     (72,303 )     (464,738 )     (32,404 )
Class F-23
    117,839       9,582       -       -       (14,721 )     (1,245 )     103,118       8,337  
Class 529-A
    60,850       4,067       18,352       1,070       (43,463 )     (3,017 )     35,739       2,120  
Class 529-B
    6,477       450       3,329       201       (7,032 )     (509 )     2,774       142  
Class 529-C
    18,181       1,259       5,766       348       (18,794 )     (1,352 )     5,153       255  
Class 529-E
    4,038       281       1,043       61       (2,761 )     (192 )     2,320       150  
Class 529-F-1
    4,736       311       749       44       (3,407 )     (237 )     2,078       118  
Class R-1
    10,855       723       1,609       96       (10,141 )     (705 )     2,323       114  
Class R-2
    100,826       6,952       16,308       977       (107,330 )     (7,410 )     9,804       519  
Class R-3
    144,480       9,603       27,641       1,627       (255,728 )     (17,046 )     (83,607 )     (5,816 )
Class R-4
    130,418       8,744       16,066       938       (232,374 )     (14,267 )     (85,890 )     (4,585 )
Class R-5
    415,141       26,109       35,408       2,051       (174,905 )     (11,887 )     275,644       16,273  
Total net increase
                                                               
   (decrease)
  $ 3,790,629       261,755     $ 899,873       52,662     $ (5,851,025 )     (407,424 )   $ (1,160,523 )     (93,007 )
                                                                 
1Includes exchanges between share classes of the fund.
                                         
2Class R-6 was offered beginning May 1, 2009.
                                                 
3Class F-2 was offered beginning August 1, 2008.
                                                 

7. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $2,594,423,000 and $2,480,117,000, respectively, during the six months ended August 31, 2009.

8. Subsequent events

As of October 13, 2009, the date the financial statements were available to be issued, no subsequent events or transactions had occurred that would have materially impacted the financial statements as presented.
 
 
Financial highlights(1)
 
           
Income (loss) from investment operations(2)
   
Dividends and distributions
                                     
     
Net asset value, beginning of period
   
Net investment income (loss)
   
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(3)(4)
   
Net assets, end of period (in millions)
   
Ratio of expenses to average net assets before reimbursements/
waivers
   
Ratio of expenses to average net assets after reimbursements/
waivers(4)
   
Ratio of net income (loss) to average net assets(4)
 
                                                                                 
Class A:
Six months ended 8/31/2009(5)
  $ 10.44     $ .05     $ 4.73     $ 4.78     $ (.16 )   $ -     $ (.16 )   $ 15.06       46.01 %   $ 12,238       .83 %(6)     .83 %(6)     .69 %(6)
 
Year ended 2/28/2009
    18.41       .16       (7.43 )     (7.27 )     -       (.70 )     (.70 )     10.44       (40.97 )     8,687       .74       .71       1.03  
 
Year ended 2/29/2008
    20.29       .25       (.77 )     (.52 )     (.24 )     (1.12 )     (1.36 )     18.41       (3.14 )     16,387       .68       .65       1.21  
 
Year ended 2/28/2007
    19.48       .18       1.37       1.55       (.16 )     (.58 )     (.74 )     20.29       8.07       17,341       .68       .65       .91  
 
Year ended 2/28/2006
    18.02       .12       1.82       1.94       (.09 )     (.39 )     (.48 )     19.48       10.87       16,091       .68       .65       .66  
 
Year ended 2/28/2005
    17.50       .06       .63       .69       (.04 )     (.13 )     (.17 )     18.02       3.94       13,350       .69       .68       .36  
                                                                                                           
Class B:
Six months ended 8/31/2009(5)
    9.98       - (7)     4.53       4.53       (.03 )     -       (.03 )     14.48       45.40       655       1.60 (6)     1.60 (6)     (.08 )(6)
 
Year ended 2/28/2009
    17.75       .04       (7.11 )     (7.07 )     -       (.70 )     (.70 )     9.98       (41.38 )     499       1.50       1.48       .26  
 
Year ended 2/29/2008
    19.59       .09       (.76 )     (.67 )     (.05 )     (1.12 )     (1.17 )     17.75       (3.92 )     1,031       1.45       1.42       .44  
 
Year ended 2/28/2007
    18.83       .02       1.32       1.34       -       (.58 )     (.58 )     19.59       7.23       1,163       1.46       1.42       .13  
 
Year ended 2/28/2006
    17.48       (.02 )     1.76       1.74       -       (.39 )     (.39 )     18.83       10.04       1,139       1.47       1.44       (.13 )
 
Year ended 2/28/2005
    17.07       (.07 )     .61       .54       -       (.13 )     (.13 )     17.48       3.13       984       1.48       1.47       (.41 )
                                                                                                           
Class C:
Six months ended 8/31/2009(5)
    9.90       - (7)     4.50       4.50       (.03 )     -       (.03 )     14.37       45.51       1,018       1.58 (6)     1.58 (6)     (.06 )(6)
 
Year ended 2/28/2009
    17.63       .03       (7.06 )     (7.03 )     -       (.70 )     (.70 )     9.90       (41.44 )     736       1.52       1.49       .24  
 
Year ended 2/29/2008
    19.46       .08       (.74 )     (.66 )     (.05 )     (1.12 )     (1.17 )     17.63       (3.93 )     1,519       1.50       1.47       .39  
 
Year ended 2/28/2007
    18.72       .01       1.31       1.32       -       (.58 )     (.58 )     19.46       7.16       1,667       1.51       1.48       .07  
 
Year ended 2/28/2006
    17.39       (.03 )     1.75       1.72       -       (.39 )     (.39 )     18.72       9.98       1,607       1.52       1.49       (.18 )
 
Year ended 2/28/2005
    16.99       (.08 )     .61       .53       -       (.13 )     (.13 )     17.39       3.09       1,262       1.54       1.53       (.47 )
                                                                                                           
Class F-1:
Six months ended 8/31/2009(5)
    10.39       .05       4.72       4.77       (.16 )     -       (.16 )     15.00       46.05       1,376       .77 (6)     .77 (6)     .75 (6)
 
Year ended 2/28/2009
    18.31       .16       (7.38 )     (7.22 )     -       (.70 )     (.70 )     10.39       (40.92 )     1,077       .70       .67       1.06  
 
Year ended 2/29/2008
    20.20       .25       (.78 )     (.53 )     (.24 )     (1.12 )     (1.36 )     18.31       (3.19 )     2,492       .68       .65       1.20  
 
Year ended 2/28/2007
    19.40       .18       1.36       1.54       (.16 )     (.58 )     (.74 )     20.20       8.06       2,506       .68       .65       .90  
 
Year ended 2/28/2006
    17.94       .12       1.82       1.94       (.09 )     (.39 )     (.48 )     19.40       10.90       2,132       .71       .68       .63  
 
Year ended 2/28/2005
    17.41       .06       .62       .68       (.02 )     (.13 )     (.15 )     17.94       3.88       1,513       .76       .75       .31  
                                                                                                           
Class F-2:
Six months ended 8/31/2009(5)
    10.46       .06       4.75       4.81       (.18 )     -       (.18 )     15.09       46.19       257       .55 (6)     .55 (6)     .92 (6)
 
Period from 8/1/2008 to 2/28/2009
    16.52       .10       (6.16 )     (6.06 )     -       -       -       10.46       (36.68 )     87       .50 (6)     .48 (6)     1.50 (6)
                                                                                                           
Class 529-A:
Six months ended 8/31/2009(5)
    10.41       .04       4.73       4.77       (.17 )     -       (.17 )     15.01       45.96       425       .88 (6)     .88 (6)     .64 (6)
 
Year ended 2/28/2009
    18.36       .15       (7.40 )     (7.25 )     -       (.70 )     (.70 )     10.41       (40.97 )     287       .79       .76       .98  
 
Year ended 2/29/2008
    20.25       .23       (.78 )     (.55 )     (.22 )     (1.12 )     (1.34 )     18.36       (3.26 )     467       .76       .73       1.12  
 
Year ended 2/28/2007
    19.45       .17       1.36       1.53       (.15 )     (.58 )     (.73 )     20.25       7.99       432       .74       .71       .84  
 
Year ended 2/28/2006
    17.99       .11       1.82       1.93       (.08 )     (.39 )     (.47 )     19.45       10.85       339       .75       .72       .60  
 
Year ended 2/28/2005
    17.46       .06       .62       .68       (.02 )     (.13 )     (.15 )     17.99       3.86       224       .77       .76       .31  
                                                                                                           
Class 529-B:
Six months ended 8/31/2009(5)
    10.00       (.01 )     4.54       4.53       (.04 )     -       (.04 )     14.49       45.38       68       1.69 (6)     1.69 (6)     (.17 )(6)
 
Year ended 2/28/2009
    17.81       .02       (7.13 )     (7.11 )     -       (.70 )     (.70 )     10.00       (41.47 )     48       1.60       1.57       .17  
 
Year ended 2/29/2008
    19.65       .06       (.74 )     (.68 )     (.04 )     (1.12 )     (1.16 )     17.81       (3.99 )     84       1.57       1.54       .31  
 
Year ended 2/28/2007
    18.91       - (7)     1.32       1.32       -       (.58 )     (.58 )     19.65       7.09       84       1.57       1.54       .01  
 
Year ended 2/28/2006
    17.58       (.05 )     1.77       1.72       -       (.39 )     (.39 )     18.91       9.87       73       1.61       1.58       (.27 )
 
Year ended 2/28/2005
    17.20       (.10 )     .61       .51       -       (.13 )     (.13 )     17.58       2.94       56       1.66       1.65       (.59 )
                                                                                                           
Class 529-C:
Six months ended 8/31/2009(5)
    10.00       (.01 )     4.56       4.55       (.05 )     -       (.05 )     14.50       45.38       122       1.68 (6)     1.68 (6)     (.16 )(6)
 
Year ended 2/28/2009
    17.82       .03       (7.15 )     (7.12 )     -       (.70 )     (.70 )     10.00       (41.44 )     83       1.59       1.57       .17  
 
Year ended 2/29/2008
    19.67       .06       (.74 )     (.68 )     (.05 )     (1.12 )     (1.17 )     17.82       (4.00 )     144       1.57       1.54       .31  
 
Year ended 2/28/2007
    18.93       - (7)     1.32       1.32       -       (.58 )     (.58 )     19.67       7.08       136       1.56       1.53       .02  
 
Year ended 2/28/2006
    17.59       (.05 )     1.78       1.73       -       (.39 )     (.39 )     18.93       9.92       110       1.59       1.56       (.25 )
 
Year ended 2/28/2005
    17.21       (.10 )     .61       .51       -       (.13 )     (.13 )     17.59       2.93       76       1.65       1.64       (.58 )
                                                                                                           
Class 529-E:
Six months ended 8/31/2009(5)
  $ 10.28     $ .02     $ 4.68     $ 4.70     $ (.13 )   $ -     $ (.13 )   $ 14.85       45.82 %   $ 25       1.17 %(6)     1.17 %(6)     .35 %(6)
 
Year ended 2/28/2009
    18.20       .10       (7.32 )     (7.22 )     -       (.70 )     (.70 )     10.28       (41.17 )     17       1.09       1.06       .69  
 
Year ended 2/29/2008
    20.07       .17       (.76 )     (.59 )     (.16 )     (1.12 )     (1.28 )     18.20       (3.50 )     27       1.06       1.03       .82  
 
Year ended 2/28/2007
    19.28       .10       1.35       1.45       (.08 )     (.58 )     (.66 )     20.07       7.66       25       1.05       1.02       .54  
 
Year ended 2/28/2006
    17.85       .05       1.80       1.85       (.03 )     (.39 )     (.42 )     19.28       10.46       20       1.08       1.05       .27  
 
Year ended 2/28/2005
    17.37       (.01 )     .62       .61       -       (.13 )     (.13 )     17.85       3.48       14       1.13       1.12       (.05 )
                                                                                                           
Class 529-F-1:
Six months ended 8/31/2009(5)
    10.43       .06       4.73       4.79       (.20 )     -       (.20 )     15.02       46.11       17       .67 (6)     .67 (6)     .85 (6)
 
Year ended 2/28/2009
    18.36       .18       (7.41 )     (7.23 )     -       (.70 )     (.70 )     10.43       (40.86 )     12       .59       .56       1.18  
 
Year ended 2/29/2008
    20.26       .27       (.77 )     (.50 )     (.28 )     (1.12 )     (1.40 )     18.36       (3.07 )     18       .56       .53       1.30  
 
Year ended 2/28/2007
    19.46       .20       1.37       1.57       (.19 )     (.58 )     (.77 )     20.26       8.20       14       .55       .52       1.04  
 
Year ended 2/28/2006
    17.99       .14       1.82       1.96       (.10 )     (.39 )     (.49 )     19.46       10.99       10       .62       .59       .73  
 
Year ended 2/28/2005
    17.46       .04       .62       .66       -       (.13 )     (.13 )     17.99       3.75       6       .88       .87       .20  
                                                                                                           
Class R-1:
Six months ended 8/31/2009(5)
    10.09       - (7)     4.59       4.59       (.07 )     -       (.07 )     14.61       45.40       36       1.56 (6)     1.56 (6)     (.04 )(6)
 
Year ended 2/28/2009
    17.95       .04       (7.20 )     (7.16 )     -       (.70 )     (.70 )     10.09       (41.36 )     24       1.48       1.45       .29  
 
Year ended 2/29/2008
    19.80       .08       (.76 )     (.68 )     (.05 )     (1.12 )     (1.17 )     17.95       (3.93 )     40       1.50       1.47       .39  
 
Year ended 2/28/2007
    19.04       .02       1.32       1.34       -       (.58 )     (.58 )     19.80       7.14       43       1.50       1.47       .09  
 
Year ended 2/28/2006
    17.69       (.03 )     1.77       1.74       -       (.39 )     (.39 )     19.04       9.92       35       1.55       1.51       (.19 )
 
Year ended 2/28/2005
    17.28       (.08 )     .62       .54       -       (.13 )     (.13 )     17.69       3.09       23       1.57       1.54       (.47 )
                                                                                                           
Class R-2:
Six months ended 8/31/2009(5)
    10.08       (.01 )     4.58       4.57       (.05 )     -       (.05 )     14.60       45.38       357       1.66 (6)     1.66 (6)     (.15 )(6)
 
Year ended 2/28/2009
    17.94       .03       (7.19 )     (7.16 )     -       (.70 )     (.70 )     10.08       (41.44 )     238       1.59       1.57       .17  
 
Year ended 2/29/2008
    19.79       .08       (.76 )     (.68 )     (.05 )     (1.12 )     (1.17 )     17.94       (3.95 )     415       1.53       1.47       .38  
 
Year ended 2/28/2007
    19.03       .02       1.32       1.34       -       (.58 )     (.58 )     19.79       7.15       427       1.59       1.46       .09  
 
Year ended 2/28/2006
    17.66       (.03 )     1.79       1.76       -       (.39 )     (.39 )     19.03       10.05       358       1.66       1.48       (.17 )
 
Year ended 2/28/2005
    17.26       (.07 )     .60       .53       -       (.13 )     (.13 )     17.66       3.04       245       1.73       1.51       (.43 )
                                                                                                           
Class R-3:
Six months ended 8/31/2009(5)
    10.29       .03       4.67       4.70       (.11 )     -       (.11 )     14.88       45.81       508       1.11 (6)     1.11 (6)     .41 (6)
 
Year ended 2/28/2009
    18.21       .11       (7.33 )     (7.22 )     -       (.70 )     (.70 )     10.29       (41.15 )     349       1.05       1.02       .70  
 
Year ended 2/29/2008
    20.08       .18       (.78 )     (.60 )     (.15 )     (1.12 )     (1.27 )     18.21       (3.51 )     724       1.04       1.01       .85  
 
Year ended 2/28/2007
    19.28       .11       1.35       1.46       (.08 )     (.58 )     (.66 )     20.08       7.68       747       1.04       1.01       .55  
 
Year ended 2/28/2006
    17.86       .05       1.80       1.85       (.04 )     (.39 )     (.43 )     19.28       10.45       662       1.06       1.02       .29  
 
Year ended 2/28/2005
    17.37       - (7)     .62       .62       -       (.13 )     (.13 )     17.86       3.54       421       1.08       1.07       .01  
                                                                                                           
Class R-4:
Six months ended 8/31/2009(5)
    10.40       .05       4.71       4.76       (.17 )     -       (.17 )     14.99       46.00       386       .79 (6)     .79 (6)     .73 (6)
 
Year ended 2/28/2009
    18.33       .16       (7.39 )     (7.23 )     -       (.70 )     (.70 )     10.40       (40.93 )     252       .73       .70       1.04  
 
Year ended 2/29/2008
    20.22       .24       (.78 )     (.54 )     (.23 )     (1.12 )     (1.35 )     18.33       (3.22 )     528       .73       .70       1.16  
 
Year ended 2/28/2007
    19.42       .17       1.35       1.52       (.14 )     (.58 )     (.72 )     20.22       7.97       555       .73       .70       .85  
 
Year ended 2/28/2006
    17.99       .11       1.81       1.92       (.10 )     (.39 )     (.49 )     19.42       10.79       405       .75       .71       .61  
 
Year ended 2/28/2005
    17.45       .06       .62       .68       (.01 )     (.13 )     (.14 )     17.99       3.85       168       .76       .75       .35  
                                                                                                           
Class R-5:
Six months ended 8/31/2009(5)
    10.50       .07       4.76       4.83       (.21 )     -       (.21 )     15.12       46.27       652       .48 (6)     .48 (6)     1.03 (6)
 
Year ended 2/28/2009
    18.45       .20       (7.45 )     (7.25 )     -       (.70 )     (.70 )     10.50       (40.77 )     619       .43       .40       1.35  
 
Year ended 2/29/2008
    20.35       .30       (.77 )     (.47 )     (.31 )     (1.12 )     (1.43 )     18.45       (2.93 )     787       .43       .40       1.43  
 
Year ended 2/28/2007
    19.55       .23       1.36       1.59       (.21 )     (.58 )     (.79 )     20.35       8.29       514       .43       .40       1.15  
 
Year ended 2/28/2006
    18.07       .17       1.83       2.00       (.13 )     (.39 )     (.52 )     19.55       11.19       359       .44       .41       .90  
 
Year ended 2/28/2005
    17.54       .11       .63       .74       (.08 )     (.13 )     (.21 )     18.07       4.20       274       .45       .44       .62  
                                                                                                           
Class R-6:
Period from 5/1/2009 to 8/31/2009(5)
    13.04       .05       2.16       2.21       (.16 )     -       (.16 )     15.09       17.13       305       .15       .15       .37  
 
   
Six months ended
August 31,
   
Year ended February 28 or 29
 
   
2009(5)
   
2009
   
2008
   
2007
   
2006
   
2005
 
                                     
Portfolio turnover rate for all classes of shares
    17 %     37 %     29 %     20 %     20 %     16 %
 
(1)Based on operations for the periods shown (unless otherwise noted) and, accordingly, may not be representative of a full year.
             
(2)Based on average shares outstanding.
                       
(3)Total returns exclude any applicable sales charges, including contingent deferred sales charges.
                 
(4)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.
(5)Unaudited.
                         
(6)Annualized.
                         
(7)Amount less than $.01.
                       
                           
See Notes to Financial Statements
                       
 
 
 
Expense example
unaudited
 
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2009, through August 31, 2009).
 
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 3/1/2009
   
Ending account value 8/31/2009
   
Expenses paid during period*
   
Annualized expense ratio
 
                         
Class A -- actual return
  $ 1,000.00     $ 1,460.10     $ 5.15       .83 %
Class A -- assumed 5% return
    1,000.00       1,021.02       4.23       .83  
Class B -- actual return
    1,000.00       1,454.02       9.90       1.60  
Class B -- assumed 5% return
    1,000.00       1,017.14       8.13       1.60  
Class C -- actual return
    1,000.00       1,455.12       9.78       1.58  
Class C -- assumed 5% return
    1,000.00       1,017.24       8.03       1.58  
Class F-1 -- actual return
    1,000.00       1,460.54       4.78       .77  
Class F-1 -- assumed 5% return
    1,000.00       1,021.32       3.92       .77  
Class F-2 -- actual return
    1,000.00       1,461.89       3.41       .55  
Class F-2 -- assumed 5% return
    1,000.00       1,022.43       2.80       .55  
Class 529-A -- actual return
    1,000.00       1,459.60       5.46       .88  
Class 529-A -- assumed 5% return
    1,000.00       1,020.77       4.48       .88  
Class 529-B -- actual return
    1,000.00       1,453.77       10.45       1.69  
Class 529-B -- assumed 5% return
    1,000.00       1,016.69       8.59       1.69  
Class 529-C -- actual return
    1,000.00       1,453.80       10.39       1.68  
Class 529-C -- assumed 5% return
    1,000.00       1,016.74       8.54       1.68  
Class 529-E -- actual return
    1,000.00       1,458.17       7.25       1.17  
Class 529-E -- assumed 5% return
    1,000.00       1,019.31       5.96       1.17  
Class 529-F-1 -- actual return
    1,000.00       1,461.09       4.16       .67  
Class 529-F-1 -- assumed 5% return
    1,000.00       1,021.83       3.41       .67  
Class R-1 -- actual return
    1,000.00       1,454.05       9.65       1.56  
Class R-1 -- assumed 5% return
    1,000.00       1,017.34       7.93       1.56  
Class R-2 -- actual return
    1,000.00       1,453.82       10.27       1.66  
Class R-2 -- assumed 5% return
    1,000.00       1,016.84       8.44       1.66  
Class R-3 -- actual return
    1,000.00       1,458.09       6.88       1.11  
Class R-3 -- assumed 5% return
    1,000.00       1,019.61       5.65       1.11  
Class R-4 -- actual return
    1,000.00       1,460.03       4.90       .79  
Class R-4 -- assumed 5% return
    1,000.00       1,021.22       4.02       .79  
Class R-5 -- actual return
    1,000.00       1,462.69       2.98       .48  
Class R-5 -- assumed 5% return
    1,000.00       1,022.79       2.45       .48  
Class R-6 -- actual return
    1,000.00       1,171.30       1.67       .46  
Class R-6 -- assumed 5% return
    1,000.00       1,022.89       2.35       .46  
 
*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).
† The period for the “annualized expense ratio” and “actual return” line is based on the number of days from May 1, 2009 (the initial sale of the share class), through August 31, 2009, and accordingly, is not representative of a full period. The “assumed 5% return” line is based on 184 days.
 
 
Other share class results
unaudited

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
             
Life
 
September 30, 2009 (the most recent calendar quarter-end):
 
1 year
   
5 years
   
of class
 
                   
Class B shares1 — first sold 3/15/00
                 
Reflecting applicable contingent deferred sales charge
                 
(CDSC), maximum of 5%, payable only if shares are
                 
sold within six years of purchase
    –4.31 %     0.88 %     1.15 %
Not reflecting CDSC
    0.69       1.23       1.15  
                         
Class C shares — first sold 3/15/01
                       
Reflecting CDSC, maximum of 1%, payable only
                       
if shares are sold within one year of purchase
    –0.35       1.18       1.31  
Not reflecting CDSC
    0.65       1.18       1.31  
                         
Class F-1 shares2 — first sold 3/16/01
                       
Not reflecting annual asset-based fee charged
                       
by sponsoring firm
    1.49       2.00       2.31  
                         
Class F-2 shares2 — first sold 8/1/08
                       
Not reflecting annual asset-based fee charged
                       
by sponsoring firm
    1.73             –3.50  
                         
Class 529-A shares3 — first sold 2/15/02
                       
Reflecting 5.75% maximum sales charge
    –4.48       0.73       1.89  
Not reflecting maximum sales charge
    1.36       1.93       2.68  
                         
Class 529-B shares1,3 — first sold 2/19/02
                       
Reflecting applicable CDSC, maximum of 5%, payable
                       
only if shares are sold within six years of purchase
    –4.47       0.74       2.04  
Not reflecting CDSC
    0.53       1.09       2.04  
                         
Class 529-C shares3 — first sold 2/19/02
                       
Reflecting CDSC, maximum of 1%, payable only
                       
if shares are sold within one year of purchase
    –0.44       1.10       2.06  
Not reflecting CDSC
    0.56       1.10       2.06  
                         
Class 529-E shares2,3 — first sold 3/7/02
    1.07       1.63       1.85  
                         
Class 529-F-1 shares2,3 — first sold 9/17/02
                       
Not reflecting annual asset-based fee charged
                       
by sponsoring firm
    1.59       2.10       5.72  

 
1These shares are no longer available for purchase.
 
2These shares are sold without any initial or contingent deferred sales charge.
 
3Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

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. Fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 22 to 28 for details.

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

 
Approval of Investment Advisory and Service Agreement

The fund’s board has approved the fund’s Investment Advisory and Service Agreement (the “agreement”) with Capital Research and Management Company (“CRMC”) for an additional one-year term through March 31, 2010. The board approved the agreement following the recommendation of the fund’s Contracts Committee (the “committee”), which is composed of all of the fund’s independent board members. The board and the committee determined that the fund’s advisory fee structure was fair and reasonable in relation to the services provided and that approving the agreement was in the best interests of the fund and its shareholders.

In reaching this decision, the board and the committee took into account information furnished to them throughout the year, as well as information prepared specifically in connection with their review of the agreement and were advised by their independent counsel. They considered the factors discussed below, among others, but did not identify any single issue or particular piece of information that, in isolation, was the controlling factor.

1. Nature, extent and quality of services

The board and the committee considered the depth and quality of CRMC’s investment management process, including its global research capabilities; the experience, capability and integrity of its senior management and other personnel; the low turnover rates of its key personnel; the overall financial strength and stability of its organization; and the ongoing evolution of CRMC’s organizational structure designed to maintain and strengthen these qualities. The board and the committee considered, among other things, the impact of current market conditions on the fund and CRMC. The board and the committee also considered the nature, extent and quality of administrative, compliance and shareholder services provided by CRMC to the fund under the agreement and other agreements as well as the benefits to fund shareholders from investing in a fund that is part of a large family of funds. The board and the committee concluded that the nature, extent and quality of the services provided by CRMC have benefited and should continue to benefit the fund and its shareholders.

2. Investment results

The board and the committee considered the investment results of the fund in light of its objective of providing long-term growth of capital. They compared the fund’s total returns with those of other relevant funds (including the other funds that are the basis of the Lipper index for the category in which the fund is included) and market data such as relevant market indices, in each case as available at the time of the related meetings. In addition to the information reviewed by the board and the committee, this report, including the letter to shareholders and related disclosures, contains certain information about the fund’s investment results. The board and the committee concluded that the fund’s results have been satisfactory and that CRMC’s record in managing the fund indicated that its continued management should benefit the fund and its shareholders.

3. Advisory fees and total expenses

The board and the committee compared the advisory fees and total expense levels of the fund to those of other relevant funds. They observed that the fund’s advisory fees and expenses remain significantly below those of most other relevant funds. The board and the committee also noted the breakpoint discounts in the fund’s advisory fee structure that reduce the level of fees charged by CRMC to the fund as fund assets increase. In addition, they reviewed information regarding the advisory fees paid by institutional clients of an affiliate of CRMC with investment mandates similar to those of the fund. They noted that, although the fees paid by those clients generally were lower than those paid by the fund, the differences appropriately reflected the significant investment, operational and regulatory differences between advising mutual funds and institutional clients. The board and the committee concluded that the fund’s cost structure was fair and reasonable in relation to the services provided, and that the shareholders receive reasonable value in return for the advisory fees and other amounts paid to CRMC by the fund.

4. Ancillary benefits

The board and the committee considered a variety of other benefits received by CRMC and its affiliates as a result of CRMC’s relationship with the fund and the other American Funds, including fees for administrative services provided to certain share classes; fees paid to CRMC’s affiliated transfer agent; sales charges and distribution fees received and retained by the fund’s principal underwriter, an affiliate of CRMC; and possible ancillary benefits to CRMC’s institutional management affiliates. The board and the committee reviewed CRMC’s portfolio trading practices, noting that while CRMC receives the benefit of research provided by broker-dealers executing portfolio transactions on behalf of the fund, it does not obtain third-party research or other services in return for allocating brokerage to such broker-dealers. The board and the committee took these ancillary benefits into account in evaluating the reasonableness of the advisory fees and other amounts paid to CRMC by the fund.

5. Adviser financial information

The board and the committee reviewed information regarding CRMC’s costs of providing services to the American Funds, including personnel, systems and resources of investment, compliance, trading, accounting and other administrative operations. They considered CRMC’s costs and willingness to invest in technology, infrastructure and staff to maintain and expand services and capabilities, respond to industry and regulatory developments and attract and retain qualified personnel. They noted information previously received regarding the compensation structure for CRMC’s investment professionals. The board and the committee also compared CRMC’s profitability to the reported results of several large, publicly held investment management companies. The board and the committee noted the competitiveness and cyclicality of both the mutual fund industry and the capital markets, and the importance in that environment of CRMC’s long-term profitability for maintaining its independence, company culture and management continuity. They further considered the breakpoint discounts in the fund’s advisory fee structure and the impact of the termination of CRMC’s 10% advisory fee waiver effective December 31, 2008. The board and the committee concluded that the fund’s advisory fee structure reflected a reasonable sharing of benefits between CRMC and the fund’s shareholders.

 
Offices of the fund and of the
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
JPMorgan Chase Bank
270 Park Avenue
New York, NY 10017-2070

Counsel
O’Melveny & Myers LLP
400 South Hope Street
Los Angeles, CA 90071-2899

Independent registered public
accounting firm
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, 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 August 31, 2009, portfolio of AMCAP Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

AMCAP Fund files a complete list of its portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. This filing is available free of charge on the SEC website. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. 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 AMCAP Fund, but it also may be used as sales literature when preceded or accompanied by the current prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after December 31, 2009, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

 
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The right choice for the long term®

What makes American Funds different?

For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our 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 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 25 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 fund
American Balanced Fund®

•  Bond funds
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
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 SM

•  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-902-1009P
 
Litho in USA AGD/B/8078-S20691
 
Printed on paper containing 10% post-consumer waste
 
Printed with inks containing soy and/or vegetable oil
 
 
ITEM 2 – Code of Ethics

Not applicable for filing of semi-annual reports to shareholders.


ITEM 3 – Audit Committee Financial Expert

Not applicable for filing of semi-annual reports to shareholders.


ITEM 4 – Principal Accountant Fees and Services

Not applicable for filing of semi-annual reports to shareholders.


ITEM 5 – Audit Committee of Listed Registrants

Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.


ITEM 6 – Schedule of Investments
 
[logo – American Funds®]
 

AMCAP Fund
Investment portfolio

August 31, 2009
unaudited
 
Common stocks — 92.89%
 
Shares
   
Value
(000)
 
             
INFORMATION TECHNOLOGY — 27.51%
           
Microsoft Corp.
    20,295,000     $ 500,272  
Oracle Corp.
    17,920,000       391,910  
Accenture Ltd, Class A
    10,060,000       331,980  
Yahoo! Inc.1
    21,395,000       312,581  
SAP AG2
    5,163,300       252,375  
Cisco Systems, Inc.1
    11,669,300       252,057  
Google Inc., Class A1
    527,300       243,439  
Hewlett-Packard Co.
    5,400,000       242,406  
Corning Inc.
    15,260,000       230,121  
Apple Inc.1
    1,250,000       210,262  
Automatic Data Processing, Inc.
    4,100,000       157,235  
MasterCard Inc., Class A
    725,000       146,907  
Intel Corp.
    7,000,000       142,240  
Logitech International SA1
    7,581,556       138,591  
Global Payments Inc.
    3,105,400       131,793  
NVIDIA Corp.1
    7,400,000       107,448  
McAfee, Inc.1
    2,600,000       103,428  
eBay Inc.1
    4,550,000       100,737  
Intuit Inc.1
    3,600,000       99,972  
Trimble Navigation Ltd.1
    3,800,000       96,748  
QUALCOMM Inc.
    1,900,000       88,198  
Maxim Integrated Products, Inc.
    4,645,000       87,233  
Texas Instruments Inc.
    3,460,000       85,081  
Autodesk, Inc.1
    3,460,000       81,068  
KLA-Tencor Corp.
    2,185,000       68,172  
Xilinx, Inc.
    2,800,000       62,272  
EMC Corp.1
    3,700,000       58,830  
Visa Inc., Class A
    800,000       56,880  
Paychex, Inc.
    1,975,000       55,873  
Intersil Corp., Class A
    3,191,908       47,240  
Verifone Holdings, Inc.1
    4,000,000       46,160  
Linear Technology Corp.
    1,500,000       39,855  
Applied Materials, Inc.
    2,700,000       35,586  
Delta Electronics, Inc.2
    12,562,830       33,526  
HTC Corp.2
    3,150,000       31,592  
Cadence Design Systems, Inc.1
    796,400       4,993  
              5,075,061  
                 
CONSUMER DISCRETIONARY — 16.27%
               
Omnicom Group Inc.
    7,951,000       288,780  
Target Corp.
    5,795,600       272,393  
Johnson Controls, Inc.
    10,621,700       263,099  
Lowe’s Companies, Inc.
    10,999,700       236,494  
YUM! Brands, Inc.
    5,976,000       204,678  
Best Buy Co., Inc.
    5,400,000       195,912  
Time Warner Inc.
    6,300,000       175,833  
O’Reilly Automotive, Inc.1
    3,819,800       146,222  
Staples, Inc.
    6,565,000       141,870  
Carnival Corp., units
    4,725,200       138,212  
Harman International Industries, Inc.3
    4,075,900       122,236  
Harley-Davidson, Inc.
    4,181,900       100,282  
Bed Bath & Beyond Inc.1
    2,700,000       98,496  
Tractor Supply Co.1,3
    2,025,000       95,296  
Expedia, Inc.1
    3,600,000       82,980  
Scripps Networks Interactive, Inc., Class A
    2,429,145       78,875  
Time Warner Cable Inc.1
    2,095,613       77,370  
Comcast Corp., Class A, special nonvoting shares
    5,280,000       77,035  
News Corp., Class A
    5,000,000       53,600  
Texas Roadhouse, Inc., Class A1
    4,195,000       42,747  
Williams-Sonoma, Inc.
    1,900,000       36,347  
Rightmove PLC2
    2,750,000       23,982  
Life Time Fitness, Inc.1
    650,000       20,228  
P.F. Chang’s China Bistro, Inc.1
    500,000       15,955  
Timberland Co., Class A1
    905,000       11,729  
              3,000,651  
                 
HEALTH CARE — 11.91%
               
Medtronic, Inc.
    10,030,000       384,149  
McKesson Corp.
    4,600,000       261,556  
WellPoint, Inc.1
    4,000,000       211,400  
Aetna Inc.
    6,313,700       179,940  
Hologic, Inc.1
    9,370,000       154,137  
Roche Holding AG2
    865,000       137,798  
UnitedHealth Group Inc.
    4,495,284       125,868  
Medco Health Solutions, Inc.1
    2,000,000       110,440  
Schering-Plough Corp.
    3,350,000       94,403  
Abbott Laboratories
    1,850,000       83,675  
Becton, Dickinson and Co.
    1,200,000       83,544  
Beckman Coulter, Inc.
    901,500       61,050  
ResMed Inc1
    1,240,000       56,928  
Myriad Genetics, Inc.1
    1,500,000       45,855  
Allergan, Inc.
    780,000       43,618  
Johnson & Johnson
    500,000       30,220  
Boston Scientific Corp.1
    2,547,890       29,938  
Cochlear Ltd.2
    600,000       28,421  
Amgen Inc.1
    377,700       22,564  
Inverness Medical Innovations, Inc.1
    462,000       16,447  
Integra LifeSciences Holdings Corp.1
    442,000       14,935  
Millipore Corp.1
    196,500       13,014  
Haemonetics Corp.1
    136,000       7,159  
              2,197,059  
                 
INDUSTRIALS — 11.77%
               
Precision Castparts Corp.
    3,921,621       357,966  
General Dynamics Corp.
    4,365,000       258,364  
Robert Half International Inc.
    7,359,000       193,468  
Manpower Inc.
    3,506,000       181,260  
United Technologies Corp.
    2,850,000       169,176  
United Parcel Service, Inc., Class B
    2,820,000       150,757  
CSX Corp.
    3,242,115       137,790  
Union Pacific Corp.
    2,303,300       137,760  
General Electric Co.
    9,104,300       126,550  
Burlington Northern Santa Fe Corp.
    830,200       68,923  
MITIE Group PLC2
    16,331,000       68,779  
MSC Industrial Direct Co., Inc., Class A
    1,660,000       65,587  
Southwest Airlines Co.
    7,385,000       60,409  
Rockwell Collins, Inc.
    1,200,000       55,248  
FedEx Corp.
    790,000       54,281  
Cintas Corp.
    1,180,000       32,379  
Avery Dennison Corp.
    1,000,000       30,900  
Mine Safety Appliances Co.
    810,000       21,651  
              2,171,248  
                 
FINANCIALS — 7.40%
               
Capital One Financial Corp.
    7,251,200       270,397  
American Express Co.
    7,500,000       253,650  
Bank of New York Mellon Corp.
    7,136,000       211,297  
JPMorgan Chase & Co.
    3,700,000       160,802  
State Street Corp.
    2,352,200       123,444  
Wells Fargo & Co.
    4,135,000       113,795  
Arthur J. Gallagher & Co.
    3,525,000       83,789  
M&T Bank Corp.
    1,124,230       69,432  
Portfolio Recovery Associates, Inc.1,3
    993,000       43,613  
PNC Financial Services Group, Inc.
    795,000       33,859  
              1,364,078  
                 
ENERGY — 6.63%
               
Schlumberger Ltd.
    5,740,000       322,588  
FMC Technologies, Inc.1
    3,420,000       163,134  
EOG Resources, Inc.
    1,472,900       106,049  
Smith International, Inc.
    3,750,000       103,387  
Apache Corp.
    1,100,000       93,445  
Baker Hughes Inc.
    2,275,000       78,374  
Chevron Corp.
    1,100,000       76,934  
Hess Corp.
    1,413,000       71,483  
Marathon Oil Corp.
    2,240,000       69,149  
ConocoPhillips
    1,363,000       61,376  
Murphy Oil Corp.
    700,000       39,900  
Devon Energy Corp.
    600,000       36,828  
              1,222,647  
                 
CONSUMER STAPLES — 5.68%
               
PepsiCo, Inc.
    3,042,481       172,418  
Walgreen Co.
    4,700,000       159,236  
L’Oréal SA2
    1,450,000       143,079  
Avon Products, Inc.
    4,262,883       135,858  
CVS/Caremark Corp.
    3,541,521       132,878  
Philip Morris International Inc.
    2,500,000       114,275  
Wal-Mart Stores, Inc.
    1,200,000       61,044  
Bare Escentuals, Inc.1,3
    5,735,000       53,221  
Whole Foods Market, Inc.1
    1,500,000       43,620  
Altria Group, Inc.
    1,750,000       31,990  
              1,047,619  
                 
MATERIALS — 2.02%
               
Barrick Gold Corp.
    2,800,000       97,160  
Monsanto Co.
    1,056,003       88,578  
Vulcan Materials Co.
    1,450,000       72,558  
AptarGroup, Inc.
    2,100,000       72,198  
Potash Corp. of Saskatchewan Inc.
    300,000       26,553  
AK Steel Holding Corp.
    784,400       15,939  
              372,986  
                 
TELECOMMUNICATION SERVICES — 0.56%
               
Telephone and Data Systems, Inc., special common shares
    1,883,600       47,712  
Telephone and Data Systems, Inc.
    1,057,300       27,881  
United States Cellular Corp.1
    734,300       26,809  
              102,402  
                 
MISCELLANEOUS — 3.14%
               
Other common stocks in initial period of acquisition
            579,831  
                 
                 
Total common stocks (cost: $15,380,861,000)
            17,133,582  
                 
                 
                 
Convertible securities — 0.00%
               
                 
MISCELLANEOUS — 0.00%
               
Other convertible securities in initial period of acquisition
            583  
                 
                 
Total convertible securities (cost: $230,000)
            583  
                 
                 
                 
   
Principal amount
         
Short-term securities — 7.41%
    (000 )        
                 
Freddie Mac 0.20%–0.70% due 9/14/2009–5/17/2010
  $ 433,000       432,815  
U.S. Treasury Bills 0.161%–0.39% due 9/15/2009–2/4/2010
    321,100       321,027  
Federal Home Loan Bank 0.145%–0.56% due 9/2–11/25/2009
    243,553       243,506  
Pfizer Inc 0.26%–0.35% due 9/10–12/8/20094
    66,300       66,267  
Fannie Mae 0.22% due 10/26/2009
    49,100       49,088  
Merck & Co. Inc. 0.17% due 9/18/2009
    35,000       34,997  
Eli Lilly and Co. 0.17% due 9/1/20094
    32,700       32,700  
General Electric Capital Corp. 0.20% due 10/9/2009
    31,800       31,793  
Federal Farm Credit Banks 0.21% due 1/27/2010
    25,000       24,973  
Abbott Laboratories 0.20% due 11/9/20094
    23,500       23,488  
NetJets Inc. 0.21% due 10/1/20094
    20,255       20,249  
Bank of America Corp. 0.20% due 9/1/2009
    20,000       20,000  
Yale University 0.28% due 12/1/2009
    20,000       19,983  
Coca-Cola Co. 0.25% due 9/2/20094
    18,500       18,500  
Procter & Gamble International Funding S.C.A. 0.22% due 11/3/20094
    16,100       16,092  
E.I. duPont de Nemours and Co. 0.15% due 9/29/20094
    11,200       11,199  
                 
                 
Total short-term securities (cost: $1,366,560,000)
            1,366,677  
                 
                 
Total investment securities (cost: $16,747,651,000)
            18,500,842  
Other assets less liabilities
            (56,068 )
                 
Net assets
          $ 18,444,774  


“Miscellaneous” securities include holdings in their initial period 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 directors. The total value of all such securities, including those in "Miscellaneous," was $779,800,000, which represented 4.23% 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.
4Purchased 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 $188,495,000, which represented 1.02% of the net assets of the fund.




Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so you may lose money.
 
Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in each fund’s prospectus, which can be obtained from your financial professional and should be read carefully before investing.
 
 
 
 
MFGEFP-902-1009O-S21455
 
 
ITEM 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

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


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

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


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

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


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

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


ITEM 11 – Controls and Procedures

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


ITEM 12 – Exhibits

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


 
 

 

SIGNATURES

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

 
AMCAP FUND, INC.
   
 
By /s/ Claudia P. Huntington
 
Claudia P. Huntington, Vice Chairman and
Principal Executive Officer
   
 
Date: October 30, 2009



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


By /s/ Claudia P. Huntington
Claudia P. Huntington, Vice Chairman and
Principal Executive Officer
 
Date: October 30, 2009



By /s/ Karl C. Grauman
Karl C. Grauman, Treasurer and
Principal Financial Officer
 
Date: October 30, 2009
 
EX-99.CERT 2 amcap_cert302.htm CERT302 Unassociated Document

[logo - American Funds®]
AMCAP Fund, Inc.
333 South Hope Street
Los Angeles, California 90071
Phone (213) 486-9200


CERTIFICATION

I, Claudia P. Huntington, certify that:

1.
I have reviewed this report on Form N-CSR of AMCAP Fund, Inc.;
   
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 Directors (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.
   

Date: October 30, 2009

/s/ Claudia P. Huntington
Claudia P. Huntington, Vice Chairman and
Principal Executive Officer
AMCAP Fund, Inc.

 
 

 

[logo - American Funds®]
AMCAP Fund, Inc.
333 South Hope Street
Los Angeles, California 90071
Phone (213) 486-9200


CERTIFICATION

I, Karl C. Grauman, certify that:

1.
I have reviewed this report on Form N-CSR of AMCAP Fund, Inc.;
   
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 Directors (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.
   

Date: October 30, 2009

/s/ Karl C. Grauman
Karl C. Grauman, Treasurer and
Principal Financial Officer
AMCAP Fund, Inc.
EX-99.906 CERT 3 amcap_cert906.htm CERT906 Unassociated Document
 
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AMCAP Fund, Inc.
333 South Hope Street
Los Angeles, California 90071
Phone (213) 486-9200





CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


CLAUDIA P. HUNTINGTON, Vice Chairman and Principal Executive Officer, and KARL C. GRAUMAN, Treasurer and Principal Financial Officer of AMCAP Fund, Inc. (the "Registrant"), each certify to the best of her or his knowledge that:

1)
The Registrant's periodic report on Form N-CSR for the period ended August 31, 2009 (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
   
AMCAP FUND, INC.
AMCAP FUND, INC.
   
   
/s/ Claudia P. Huntington
/s/ Karl C. Grauman
Claudia P. Huntington, Vice Chairman
Karl C. Grauman, Treasurer
   
Date: October 30, 2009
Date: October 30, 2009


A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to AMCAP FUND, INC. and will be retained by AMCAP FUND, INC. and furnished to the Securities and Exchange Commission (the "Commission") or its staff upon request.

This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission.
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