-----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, IK3XFM1SMd+A+I/UZH/K3zaWlh+Pkq+DpseGcQL3t26RCiM9uCX0lx4k2fNSB5yt PZv0Ay6pt/ou28SIodtPGg== 0000051931-08-000264.txt : 20080606 0000051931-08-000264.hdr.sgml : 20080606 20080606144544 ACCESSION NUMBER: 0000051931-08-000264 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080606 DATE AS OF CHANGE: 20080606 EFFECTIVENESS DATE: 20080606 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW PERSPECTIVE FUND INC CENTRAL INDEX KEY: 0000071516 IRS NUMBER: 952817150 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02333 FILM NUMBER: 08885383 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 0000071516 S000009613 NEW PERSPECTIVE FUND INC C000026302 Class A ANWPX C000026303 Class R-1 RNPAX C000026304 Class R-2 RNPBX C000026305 Class R-3 RNPCX C000026306 Class R-4 RNPEX C000026307 Class R-5 RNPFX C000026308 Class B NPFBX C000026309 Class C NPFCX C000026310 Class F-1 NPFFX C000026311 Class 529-A CNPAX C000026312 Class 529-B CNPBX C000026313 Class 529-C CNPCX C000026314 Class 529-E CNPEX C000026315 Class 529-F-1 CNPFX N-CSRS 1 npf_ncsr.htm N-CSR npf_ncsr.htm
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: 811-02333



New Perspective 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: September 30

Date of reporting period: March 31, 2008





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:
Mark D. Perlow
Kirkpatrick & Lockhart Preston Gates Ellis LLP
55 Second Street, Suite 1700
San Francisco, California  94105
(Counsel for the Registrant)


 
 

 

ITEM 1 – Reports to Stockholders
 
[logo - American Funds®]

The right choice for the long term®

New Perspective Fund
 
[photo of a bee on a flower - another flower nearby]
 
Semi-annual report for the six months ended March 31, 2008

New Perspective Fund® seeks long-term growth of capital through investments all over the world, including the United States. It focuses on opportunities generated by changing global trade patterns and economic and political relationships.

This fund is one of the 30 American Funds. American Funds is one of the nation’s largest mutual fund families. For more than 75 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. For current information and month-end results, visit americanfunds.com.

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended March 31, 2008:

Class A shares
 
1 year
   
5 years
   
10 years
 
                   
Reflecting 5.75% maximum sales charge
    –0.39 %     18.14 %     8.93 %

The total annual fund operating expense ratio for Class A shares as of the most recent fiscal year-end was 0.74%. This figure does not reflect a fee waiver currently in effect; therefore, the actual expense ratio is lower.

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased it to 10% on April 1, 2005. Fund results shown reflect actual expenses, with the waiver applied. Fund results would have been lower without the waiver. Please see the Financial Highlights table on pages 20 to 23 for details.

Results for other share classes can be found on page 4.

Investing outside the United States may be subject to additional risks, such as currency fluctuations and political instability, which are detailed in the fund’s prospectus.
 
[photo of a bee on a flower - another flower nearby]

Fellow shareholders:

For the six months ended March 31, 2008, shares of New Perspective Fund fell 7.3%, a figure that assumes reinvestment of the 67.5 cents-a-share dividend and the approximately $2.27 per share capital gain distribution paid in December 2007.

While into negative territory, the fund fared significantly better than its two primary benchmarks. The unmanaged MSCI World Index, a measure of stock markets in 23 countries, declined 11.1%, as did the Lipper Global Funds Average, a measure of New Perspective’s global fund peers.

The fund’s 12-month advantage was even more pronounced, as New Perspective gained 5.7% while the MSCI World Index and Lipper average lost 2.8% and 2.0%, respectively. Results for the other extended periods shown in the table below demonstrate the fund’s consistency, as well as its advantage over both benchmarks.

Results at a glance (For periods ended March 31, 2008, with all distributions reinvested)
                 
                               
   
Cumulative total returns
   
  Average annual total returns
 
                               
                           
Lifetime
 
   
Six months
   
1 year
   
5 years
   
10 years
   
(since 3/13/73)
 
                               
New Perspective Fund
                             
(Class A shares)
    –7.3 %     5.7 %     19.5 %     9.6 %     13.6 %
MSCI indexes*:
                                       
World Index
    –11.1       –2.8       16.5       5.0       10.2  
USA Index
    –12.2       –4.8       11.6       3.4       10.5  
Lipper Global Funds Average
    –11.1       –2.0       16.5       5.5       12.4  
                                         
*The indexes are unmanaged.
                                       
Source: Lipper. Averages are based on total return and do not reflect the effects of sales charges. New Perspective’s returns do not include sales charges.
 
 
U.S. credit troubles go global

Most stock markets around the globe declined during the six months as deteriorating credit conditions and simultaneous economic slowdowns in the United States, Europe and Japan heightened concern over the health of the world economy.

The U.S. market fell 12.2%* for the period, as investors reacted to fallout from the subprime mortgage crisis and pervasive uncertainty in the bond market, as well as declining corporate profits and harbingers of recession. Despite unprecedented action by the Federal Reserve, credit concerns lingered, peaking in mid-March when Bear Stearns — once the fifth-largest U.S. securities firm — was pushed to the brink of insolvency.

 
*Unless otherwise indicated, country and region returns are based on MSCI indexes and measured in U.S. dollars with gross dividends reinvested.

Elsewhere in the Americas, Canadian stocks were down 6.0%, while Brazil’s market posted a 7.6% gain. Brazil’s gain underscores the fact that the global credit crisis has thus far left many developing markets relatively unscathed.

Conditions in Europe mirrored those in the U.S., with the deepening credit crisis, lowered expectations for corporate profit and threat of an economic downturn all contributing to a six-month drop of 8.9%.

In Japan, the prospect of an already sluggish local economy encountering a global slowdown discouraged investors. Markets slid 13.3% as a result.

Throughout the Pacific Basin, most markets fell. South Korean (–16.7%) and Australian (–14.9%) stocks dipped sharply. By comparison, Taiwan (–2.8%) experienced a more modest decline.

Currency translation boosted results for U.S.-based investors in stocks of companies domiciled outside the U.S. The dollar continued its pattern of weakening against many of the major currencies including the euro, the yen and the Swiss franc, though it strengthened against the Canadian dollar.

Large holdings strengthen results

As might be expected in an environment where virtually no sector was spared, 165 of the fund’s 224 holdings declined in price during the period. Yet as was the case when we reported to you last fall, the fund’s relative success was largely a function of solid stock selection among bigger holdings. In fact, six of New Perspective’s 10 largest investments posted gains. Leading the way were Brazilian energy producer Petrobras (+34.3%), pharmaceutical manufacturer Novo Nordisk (+13.4%), Barrick Gold (+7.9%) and Yahoo! (+7.8%). Drug producers Roche (+3.8%) and Bayer (+0.6%) also edged into positive territory. On the negative side of the ledger, shares of the fund’s largest holding, Microsoft (–3.7%), were down slightly, while General Electric (–10.6%), Nokia (–16.3%) and Cisco (–27.2%) — a position we built throughout the period — lost considerable ground.

Among other large positions outside the top 10, positive contributors included chemical producer Potash (+46.8%), Banco Santander (+2.5%) and consumer products giant Altria Group (+3.2%). Less favorable holdings included cellular telecommunications provider Vodafone (–17.0%), Google
(–22.4%) and industrial conglomerate Siemens (–21.1%).

Difficult conditions for financials

Not surprisingly, the biggest detractors from results could be found among New Perspective’s financial holdings, which suffered from the spate of difficulties in the credit markets. Hardest hit was Citigroup, whose 54.1% decline was due largely to its significant exposure to subprime mortgages. Other sizable fund positions that declined in value were ING (–15.8%), Bank of America (–24.6%) and Japan’s Mizuho Group (–35.5%).

Anticipating challenges within the sector, the fund’s investment professionals have steadily trimmed financials, especially in our holdings outside the U.S., over the past year. As of March 31, 2008, financials made up 8.4% of the fund’s portfolio, down from 15.1% one year ago. That said, there have been exceptions as falling share prices did create opportunity to up our stakes in Citigroup, Bank of America and JPMorgan Chase which, notwithstanding the present difficulty, we believe are solid long-term investment opportunities.

Looking ahead

Though the actions of central banks such as the Federal Reserve have helped steady markets, those measures may have masked the full scope of the challenges facing the global economy and investors. As a result, we are generally cautious.

Mindful of the uncertainty and volatility in the market, we have been particularly patient and selective in reinvesting the proceeds from fund holdings we have sold or trimmed. This fact is evident in the fund’s cash position, which has risen from 4.7% to 11.8% in the past year. In addition to helping blunt the impact of market tremors on fund shareholders, this cash gives us significant opportunity to invest in companies that we believe are on the mend or have been unfairly devalued amid the broad-based market downturn.

We thank you for your continuing commitment to New Perspective Fund.

Sincerely,
 
/s/ Gina H. Despres
Gina H. Despres
Vice Chairman of the Board
 
/s/ Robert W. Lovelace
Robert W. Lovelace
President
 
May 5, 2008

For current information about the fund, visit americanfunds.com.
 
 
Other share class results

Class B, Class C, Class F and Class 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 March 31, 2008:
                 
                   
   
1 year
   
5 years
   
Life of class
 
Class B shares — 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
    0.00 %     18.43 %     4.92 %
Not reflecting CDSC
    4.86       18.63       4.92  
                         
Class C shares — first sold 3/15/01
                       
Reflecting CDSC, maximum of 1%, payable only if
                       
shares are sold within one year of purchase
    3.83       18.56       8.09  
Not reflecting CDSC
    4.80       18.56       8.09  
                         
Class F shares* — first sold 3/15/01
                       
Not reflecting annual asset-based fee charged by
                       
sponsoring firm
    5.65       19.51       8.96  
                         
Class 529-A shares — first sold 2/15/02
                       
Reflecting 5.75% maximum sales charge
    –0.50       18.05       10.27  
Not reflecting maximum sales charge
    5.57       19.46       11.34  
                         
Class 529-B shares — first sold 2/15/02
                       
Reflecting applicable CDSC, maximum of 5%, payable
                       
only if shares are sold within six years of purchase
    –0.12       18.25       10.40  
Not reflecting CDSC
    4.73       18.46       10.40  
                         
Class 529-C shares — first sold 2/15/02
                       
Reflecting CDSC, maximum of 1%, payable only if
                       
shares are sold within one year of purchase
    3.76       18.46       10.41  
Not reflecting CDSC
    4.73       18.46       10.41  
                         
Class 529-E shares* — first sold 3/1/02
    5.26       19.08       10.69  
                         
Class 529-F shares* — first sold 9/17/02
                       
Not reflecting annual asset-based fee charged by
                       
sponsoring firm
    5.80       19.56       16.34  
                         
*These shares are sold without any initial or contingent deferred sales charge.
                       
Results shown do not reflect the $10 initial account setup fee and an annual $10 account maintenance fee.
                       

The fund’s investment adviser waived 5% of its management fees from September 1, 2004, through March 31, 2005, and increased the waiver to 10% on April 1, 2005. Fund results shown reflect the waiver, without which they would have been lower. Please see the Financial Highlights table on pages 20 to 23 for details.

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

 
Summary investment portfolio, March 31, 2008
unaudited
 

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

[begin pie chart]
   
Percent
 
   
of net
 
Industry sector diversification
 
assets
 
       
Information technology
    19.15 %
Industrials
    9.44  
Energy
    8.47  
Financials
    8.42  
Materials
    8.36  
Other industries
    34.41  
Short-term securities & other assets less liabilities
    11.75  
[end pie chart]
 
Country diversification  
 
 (percent of net assets)
 
United States
    30.0 %
Euro zone *
    21.9  
Japan
    6.0  
United Kingdom
    5.9  
Switzerland
    4.1  
Canada
    3.8  
Taiwan
    2.3  
Australia
    2.2  
Other countries
    12.0  
Short-term securities & other assets less liabilities
    11.8  
         
*Countries using the euro as a common currency; those represented in the fund's portfolio are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands and Spain.
 
 

   
Shares
   
Market value (000)
   
Percent of net assets
 
                   
Common stocks  - 88.25%
                 
                   
Information technology  - 19.15%
                 
Microsoft Corp.
    50,855,000     $ 1,443,265       2.56  
Cisco Systems, Inc. (1)
    45,394,700       1,093,558       1.94  
Yahoo! Inc. (1)
    28,509,000       824,765       1.46  
Nokia Corp. (2)
    18,975,416       603,809          
Nokia Corp. (ADR)
    6,244,634       198,767       1.43  
Samsung Electronics Co., Ltd. (2)
    1,219,450       775,144       1.38  
Google Inc., Class A (1)
    1,459,000       642,646       1.14  
Oracle Corp. (1)
    29,263,700       572,398       1.02  
International Business Machines Corp.
    4,687,000       539,661       .96  
Taiwan Semiconductor Manufacturing Co. Ltd. (2)
    194,136,007       404,149          
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)
    6,673,263       68,534       .84  
ASML Holding NV (1)  (2)
    11,893,444       292,540          
ASML Holding NV (New York registered) (1)
    5,387,111       133,654       .76  
Hon Hai Precision Industry Co., Ltd. (2)
    69,696,786       400,176       .71  
High Tech Computer Corp. (2)
    13,545,200       305,078       .54  
Other securities
            2,480,264       4.41  
              10,778,408       19.15  
                         
Industrials  - 9.44%
                       
General Electric Co.
    24,410,500       903,433       1.60  
Schneider Electric SA (2)
    4,425,500       572,646       1.02  
Siemens AG (2)
    4,849,800       526,432       .94  
Other securities
            3,310,204       5.88  
              5,312,715       9.44  
                         
Energy  - 8.47%
                       
Petróleo Brasileiro SA - Petrobras, ordinary nominative (ADR)
    6,817,000       696,084          
Petróleo Brasileiro SA - Petrobras, preferred nominative (ADR)
    2,700,000       228,663       1.64  
Canadian Natural Resources, Ltd.
    6,510,000       445,301       .79  
Reliance Industries Ltd. (1)  (2)
    6,923,000       393,278       .70  
TOTAL SA (2)
    5,014,400       372,949       .66  
Tenaris SA (ADR)
    6,423,218       320,197          
Tenaris SA (2)
    430,000       10,716       .59  
OAO Gazprom (ADR) (2)
    6,367,500       324,996       .58  
Other securities
            1,977,092       3.51  
              4,769,276       8.47  
                         
Financials  - 8.42%
                       
Citigroup Inc.
    22,906,510       490,657       .87  
AXA SA (2)
    11,104,268       401,952       .71  
ING Groep NV, depository receipts (2)
    9,964,057       372,607       .66  
Allianz SE (2)
    1,530,000       303,437       .54  
Other securities
            3,171,182       5.64  
              4,739,835       8.42  
                         
Materials  - 8.36%
                       
Barrick Gold Corp.
    26,904,070       1,168,982       2.08  
Bayer AG, non-registered shares (2)
    11,062,500       886,278       1.57  
Newmont Mining Corp.
    13,750,000       622,875       1.11  
Other securities
            2,028,780       3.60  
              4,706,915       8.36  
                         
Consumer staples  - 8.19%
                       
Tesco PLC (2)
    73,606,011       555,916       .99  
Philip Morris International Inc. (1)
    10,414,400       526,760       .94  
Nestlé SA (2)
    944,000       471,965       .84  
SABMiller PLC (2)
    20,008,508       438,258       .78  
Coca-Cola Co.
    5,400,000       328,698       .58  
PepsiCo, Inc.
    4,325,000       312,265       .55  
Other securities
            1,978,512       3.51  
              4,612,374       8.19  
                         
Consumer discretionary  - 7.41%
                       
Esprit Holdings Ltd. (2)
    34,017,800       407,678       .72  
News Corp., Class A
    21,187,504       397,266       .70  
Honda Motor Co., Ltd. (2)
    13,105,000       375,257       .67  
Toyota Motor Corp. (2)
    6,690,000       336,851       .60  
Other securities
            2,652,979       4.72  
              4,170,031       7.41  
                         
Health care  - 6.77%
                       
Novo Nordisk A/S, Class B (2)
    13,977,200       957,162       1.70  
Roche Holding AG (2)
    4,478,750       843,381       1.50  
Smith & Nephew PLC (2)
    26,812,330       354,574       .63  
Other securities
            1,654,602       2.94  
              3,809,719       6.77  
                         
Telecommunication services  - 4.86%
                       
Vodafone Group PLC (2)
    253,856,934       760,042       1.35  
Koninklijke KPN NV (2)
    41,549,200       703,631       1.25  
Other securities
            1,269,851       2.26  
              2,733,524       4.86  
                         
Utilities  - 2.81%
                       
SUEZ SA (2)
    8,498,335       558,467       .99  
E.ON AG (2)
    1,750,000       323,890       .58  
Other securities
            699,989       1.24  
              1,582,346       2.81  
                         
Miscellaneous  -  4.37%
                       
Other common stocks in initial period of acquisition
            2,460,419       4.37  
                         
                         
Total common stocks (cost: $37,409,333,000)
            49,675,562       88.25  
                         
                         
                         
   
Principal amount (000)
   
Market value (000)
   
Percent of net assets
 
                         
Short-term securities  - 12.13%
                       
                         
Federal Home Loan Bank 1.67%-4.12% due 4/9-12/29/2008
  $ 1,200,583     $ 1,191,576       2.12  
Freddie Mac 1.85%-4.22% due 4/10-9/25/2008
    1,004,059       996,561       1.77  
Fannie Mae 1.86%-4.23% due 4/11-9/17/2008
    461,900       460,211       .82  
General Electric Capital Corp. 2.05%-3.00% due 4/1-12/12/2008
    436,300       432,996       .77  
BASF AG 2.78%-3.50% due 4/7-5/28/2008 (3)
    365,800       364,830       .65  
Nestlé Finance International Ltd. 2.77%-2.83% due 5/14-6/5/2008
    180,700       179,849          
Nestlé Capital Corp. 2.64% due 8/4/2008 (3)
    82,900       82,112       .46  
Siemens Capital Co. LLC 2.10%-2.95% due 5/7-5/29/2008 (3)
    215,300       214,550       .38  
American Honda Finance Corp. 2.10%-2.85% due 4/16-5/8/2008
    197,625       197,288       .35  
IBM International Group Capital LLC 2.72% due 4/25/2008 (3)
    54,000       53,898       .10  
Other securities
            2,651,468       4.71  
                         
Total short-term securities (cost: $6,825,808,000)
            6,825,339       12.13  
                         
                         
Total investment securities (cost: $44,235,141,000)
            56,500,901       100.38  
Other assets less liabilities
            (212,357 )     (.38 )
                         
Net assets
          $ 56,288,544       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.
 
 
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 fund's affiliated holdings listed below are either shown in the preceding summary investment portfolio
or included in the market value of "Other securities" under their respective industry sectors. Further
details on these holdings and related transactions during the six months ended March 31, 2008, appear below.

   
Beginning shares
   
Additions
   
Reductions
   
Ending
shares
   
Dividend
income
 (000)
   
Market value of affiliate at 3/31/08 (000)
 
               
 
                   
Michael Page International PLC
    18,089,000       -       -       18,089,000     $ -     $ 108,475  
Smith & Nephew PLC (4)
    42,912,816       2,330,184       18,430,670       26,812,330       2,030       -  
                                    $ 2,030     $ 108,475  
 
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 $27,788,115,000, which represented 49.37% of the net assets of the fund.
(3) Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the United States in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $1,835,275,000, which represented 3.26% of the net assets of the fund.
(4) Unaffiliated issuer at 3/31/2008.
 
ADR = American Depositary Receipts
 
See Notes to Financial Statements
 
 
Financial statements
unaudited

Statement of assets and liabilities
       
 
 
at March 31, 2008
 
(dollars and shares in thousands, except per-share amounts)
 
             
Assets:
           
  Investment securities at market:
           
    Unaffiliated issuers (cost: $44,098,678)
  $ 56,392,426        
    Affiliated issuer (cost: $136,463)
    108,475     $ 56,500,901  
  Cash
            4,518  
  Receivables for:
               
    Sales of investments
    69,745          
    Sales of fund's shares
    59,011          
    Dividends and interest
    113,884       242,640  
              56,748,059  
Liabilities:
               
  Payables for:
               
    Purchases of investments
    355,845          
    Repurchases of fund's shares
    64,248          
    Investment advisory services
    16,368          
    Services provided by affiliates
    18,542          
    Directors' deferred compensation
    3,725          
    Other
    787       459,515  
Net assets at March 31, 2008
          $ 56,288,544  
                 
Net assets consist of:
               
  Capital paid in on shares of capital stock
          $ 39,853,309  
  Distributions in excess of net investment income
            (11,051 )
  Undistributed net realized gain
            4,179,019  
  Net unrealized appreciation
            12,267,267  
Net assets at March 31, 2008
          $ 56,288,544  
 
Total authorized capital stock - 3,000,000 shares, $.001 par value (1,794,415 total shares outstanding)
       
   
Net assets
   
Shares outstanding
   
Net asset value per share*
 
                     
Class A
  $ 44,681,216       1,420,859     $ 31.45  
Class B
    1,833,622       59,451       30.84  
Class C
    1,899,921       62,026       30.63  
Class F
    1,182,462       37,742       31.33  
Class 529-A
    848,955       27,154       31.26  
Class 529-B
    130,698       4,245       30.79  
Class 529-C
    223,355       7,260       30.76  
Class 529-E
    47,969       1,545       31.04  
Class 529-F
    14,389       460       31.25  
Class R-1
    49,484       1,616       30.61  
Class R-2
    596,290       19,410       30.72  
Class R-3
    1,168,237       37,685       31.00  
Class R-4
    776,602       24,869       31.23  
Class R-5
    2,835,344       90,093       31.47  
(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Class A and 529-A, for which the maximum offering prices per share were $33.37 and $33.17, respectively.
 
                         
See Notes to Financial Statements
                       
                         
 
Statement of operations
       
unaudited
 
for the six months ended March 31, 2008
 
(dollars in thousands)
 
             
Investment income:
           
  Income:
           
    Dividends (net of non-U.S. taxes of $20,429;
           
            also includes $2,030 from affiliate)
  $ 577,141        
    Interest
    145,144     $ 722,285  
                 
  Fees and expenses(*):
               
    Investment advisory services
    113,524          
    Distribution services
    86,991          
    Transfer agent services
    22,783          
    Administrative services
    7,801          
    Reports to shareholders
    694          
    Registration statement and prospectus
    654          
    Postage, stationery and supplies
    2,320          
    Directors' compensation
    115          
    Auditing and legal
    34          
    Custodian
    3,046          
    State and local taxes
    670          
    Other
    109          
    Total fees and expenses before reimbursements/waivers
    238,741          
  Less reimbursements/waivers of fees and expenses:
               
    Investment advisory services
    11,352          
    Administrative services
    16          
    Total fees and expenses after reimbursements/waivers
            227,373  
  Net investment income
            494,912  
                 
Net realized gain and unrealized depreciation on investments and currency:
               
  Net realized gain on:
               
    Investments (including $54,430 net gain from affiliate)
    4,179,841          
    Currency transactions
    1,201       4,181,042  
  Net unrealized depreciation on:
               
    Investments
    (9,197,958 )        
    Currency translations
    (146 )     (9,198,104 )
      Net realized gain and unrealized depreciation on investments and currency
            (5,017,062 )
Net decrease in net assets resulting from operations
          $ (4,522,150 )
                 
(*) Additional information related to class-specific fees and expenses is included in the Notes to Financial Statements.
 
                 
See Notes to Financial Statements
               
                 
                 
                 
Statements of changes in net assets
 
(dollars in thousands)
 
                 
   
Six months
   
Year ended
 
   
ended March 31,
   
September 30,
 
      2008 *  
2007
 
Operations:
               
  Net investment income
  $ 494,912     $ 763,234  
  Net realized gain on investments and
               
    currency transactions
    4,181,042       4,321,639  
  Net unrealized (depreciation) appreciation
               
    on investments and currency translations
    (9,198,104 )     7,449,008  
    Net (decrease) increase in net assets
               
      resulting from operations
    (4,522,150 )     12,533,881  
                 
Dividends and distributions paid to shareholders
               
  Dividends from net investment income
    (1,092,730 )     (751,723 )
  Distributions from net realized gain on investments
    (3,792,236 )     (3,220,774 )
    Total dividends and distributions paid to shareholders
    (4,884,966 )     (3,972,497 )
                 
Net capital share transactions
    4,281,015       3,279,221  
                 
Total (decrease) increase in net assets
    (5,126,101 )     11,840,605  
                 
Net assets:
               
  Beginning of period
    61,414,645       49,574,040  
  End of period (including distributions in excess of and undistributed
               
    net investment income: $(11,051) and $586,767, respectively)
  $ 56,288,544     $ 61,414,645  
                 
*Unaudited.
               
                 
See Notes to Financial Statements
               
 
 

Notes to financial statements           
                                                                                                          unaudited
 
1. Organization and accounting policies
 
Organization – New Perspective 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 through investments all over the world, including the United States. It focuses on opportunities generated by changing global trade patterns and economic and political relationships.

The fund offers 14 share classes consisting of four retail share classes, five 529 college savings plan share classes and five retirement plan share classes. The 529 college savings plan share classes (529-A, 529-B, 529-C, 529-E and 529-F) can be used to save for college education. The five retirement plan share classes (R-1, R-2, R-3, R-4 and R-5) are sold without any sales charges and do not carry any conversion rights. The fund’s share classes are described below:

Share class
Initial sales charge
Contingent deferred sales charge upon redemption
Conversion feature
Class 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
Class B and 529-B
None
Declines from 5% to 0% for redemptions within six years of purchase
Class B and 529-B convert to Class 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 after 10 years
Class 529-C
None
1% for redemptions within one year of purchase
None
Class 529-E
None
None
None
Class F and 529-F
None
None
None
Class R-1, R-2, R-3, R-4 and R-5
None
None
None
 

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:

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 an independent pricing service when such prices are available. However, where the investment adviser deems it appropriate, such securities will be valued at the mean quoted bid and asked prices (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities 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. The ability of the issuers of the debt securities held by the fund to meet their obligations may be affected by economic developments in a specific industry, state or region.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under procedures 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.

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. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. 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.

Forward currency contracts – The fund may enter into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund enters into these contracts to manage its exposure to changes in exchange rates arising from investments denominated in currencies other than U.S. dollars. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates. Due to these risks, the fund could incur losses up to the entire contract amount, which may exceed the net unrealized value shown on the accompanying financial statements. On a daily basis, the fund values forward currency contracts based on the applicable exchange rates and records unrealized gains or losses. The fund records realized gains or losses at the time the forward contract is closed or offset by another contract with the same broker for the same settlement date and currency.
 
2. Investments outside the U.S.
 
Investment risk – The risks of investing in securities of issuers outside the U.S. may include, but are not limited to, investment and repatriation restrictions; revaluation of currencies; adverse political, social and economic developments; government involvement in the private sector; limited and less reliable investor information; lack of liquidity; certain local tax law considerations; and limited regulation of the securities markets.
 
Taxation – Dividend and interest income is recorded net of non-U.S. taxes paid. Gains realized by the fund on the sale of securities in certain countries are subject to non-U.S. taxes. The fund records a liability based on realized and unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities. For the six months ended March 31, 2008, there were no non-U.S. taxes paid on realized gains. As of March 31, 2008, there were no non-U.S. taxes provided on unrealized gains.

3. Federal income taxation and distributions                                                                                                                                

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

As of and during the period ended March 31, 2008, 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 2003, by state tax authorities for tax years before 2002 and by tax authorities outside the U.S. for tax years before 2005.

Distributions – Distributions paid to shareholders are based on net investment income and net realized gains determined on a tax basis, which may differ from net investment income and net realized gains for financial reporting purposes. These differences are due primarily to differing treatment for items such as currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; and unrealized appreciation of certain investments in securities outside the U.S. 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 fund may also designate a portion of the amount paid to redeeming shareholders as a distribution for tax purposes.

The components of distributable earnings on a tax basis are reported as of the fund’s most recent year-end. As of September 30, 2007, the fund had tax basis undistributed ordinary income of $743,174,000, currency loss deferrals (realized during the period November 1, 2006, through September 30, 2007) of $5,452,000 and undistributed long-term capital gain of $3,792,191,000.

As of March 31, 2008, the tax basis unrealized appreciation (depreciation) and cost of investment securities were as follows:

  (dollars in thousands)  
Gross unrealized appreciation on investment securities
  $ 13,932,515  
Gross unrealized depreciation on investment securities
    (1,776,267 )
Net unrealized appreciation on investment securities
    12,156,248  
Cost of investment securities
    44,344,653  

The tax character of distributions paid to shareholders was as follows (dollars in thousands):
 
   
Six months ended March 31, 2008
   
Year ended September 30, 2007
 
   
Ordinary income
   
Long-term capital gains
   
Total distributions paid
   
Ordinary income
   
Long-term capital gains
   
Total distributions paid
 
Share class
                                   
Class A
  $ 897,216     $ 3,015,971     $ 3,913,187     $ 635,630     $ 2,620,221     $ 3,255,851  
Class B
    23,413       128,412       151,825       14,463       112,815       127,278  
Class C
    23,597       129,451       153,048       13,108       103,627       116,735  
Class F
    22,822       76,715       99,537       15,128       62,061       77,189  
Class 529-A
    15,792       54,539       70,331       9,546       40,174       49,720  
Class 529-B
    1,499       8,761       10,260       825       6,977       7,802  
Class 529-C
    2,584       14,692       17,276       1,359       10,945       12,304  
Class 529-E
    773       3,139       3,912       459       2,369       2,828  
Class 529-F
    293       919       1,212       178       668       846  
Class R-1
    610       3,237       3,847       316       2,121       2,437  
Class R-2
    7,234       40,568       47,802       4,236       31,907       36,143  
Class R-3
    19,650       78,957       98,607       11,777       59,847       71,624  
Class R-4
    14,443       49,716       64,159       9,029       39,083       48,112  
Class R-5
    62,804       187,159       249,963       35,669       127,959       163,628  
Total
  $ 1,092,730     $ 3,792,236     $ 4,884,966     $ 751,723     $ 3,220,774     $ 3,972,497  
 
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 SM ("AFS"), the fund’s transfer agent, and American Funds Distributors, SM 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 0.600% on the first $500 million of daily net assets and decreasing to 0.360% on such assets in excess of $55 billion. CRMC is currently waiving 10% of investment advisory services fees. During the six months ended March 31, 2008, total investment advisory services fees waived by CRMC were $11,352,000. As a result, the fee shown on the accompanying financial statements of $113,524,000, which was equivalent to an annualized rate of 0.382%, was reduced to $102,172,000, or 0.344% of average daily net assets.

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

Distribution services – The fund has adopted plans of distribution for all share classes, except Class R-5. Under the plans, the board of directors approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.25% to 1.00% as noted below. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD 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 Class 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 March 31, 2008, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A.

Share class
Currently approved limits
Plan limits
Class A
0.25%
0.25%
Class 529-A
0.25
0.50
Class B and 529-B
1.00
1.00
Class C, 529-C and R-1
1.00
1.00
Class R-2
0.75
1.00
Class 529-E and R-3
0.50
0.75
Class F, 529-F and R-4
0.25
0.50

Transfer agent services The fund has a transfer agent agreement with AFS for Class A and B. Under this agreement, these share classes compensate AFS for transfer agent services including shareholder recordkeeping, communications and transaction processing. AFS is also compensated for certain transfer agent services provided to all other share classes from the administrative services fees paid to CRMC described below.

Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Class A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5) 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. CRMC has agreed to pay AFS on the fund's behalf for a portion of the transfer agent services fees for some of the retirement plan share classes. For the six months ended March 31, 2008, the total administrative services fees paid by CRMC were $16,000 for R-2. Administrative services fees are presented gross of any payments made by CRMC. Each 529 share class is subject to an additional annual administrative services fee of 0.10% of its respective average daily net assets; this fee is payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described above for the six months ended March 31, 2008, 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
$56,247
$21,912
Not applicable
Not applicable
Not applicable
Class B
9,849
871
Not applicable
Not applicable
Not applicable
Class C
9,927
 
 
 
 
 
 
Included
in
administrative services
$1,183
$154
Not applicable
Class F
1,512
574
63
Not applicable
Class 529-A
900
380
48
$ 432
Class 529-B
677
60
16
68
Class 529-C
1,138
100
23
114
Class 529-E
123
22
3
24
Class 529-F
-
7
1
7
Class R-1
249
26
11
Not applicable
Class R-2
2,341
463
863
Not applicable
Class R-3
3,051
888
259
Not applicable
Class R-4
977
565
13
Not applicable
Class R-5
Not applicable
1,428
6
Not applicable
Total
$86,991
$22,783
$5,696
$1,460
$645

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 $115,000, shown on the accompanying financial statements, includes $211,000 in current fees (either paid in cash or deferred) and a net decrease of $96,000 in the value of the deferred amounts.

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

5.  Capital share transactions

Capital share transactions in the fund were as follows (dollars and shares in thousands):
 
Share class
 
Sales(*)
   
Reinvestments of dividends and distributions
   
Repurchases(*)
   
Net increase (decrease)
 
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
 
Six months ended March 31, 2008
                                           
Class A
  $ 2,247,951       66,354     $ 3,736,165       108,044     $ (3,025,581 )     (89,611 )   $ 2,958,535       84,787  
Class B
    67,713       2,036       147,513       4,339       (129,877 )     (3,967 )     85,349       2,408  
Class C
    181,297       5,479       147,457       4,367       (138,692 )     (4,248 )     190,062       5,598  
Class F
    218,897       6,539       87,026       2,525       (147,420 )     (4,429 )     158,503       4,635  
Class 529-A
    84,566       2,509       70,324       2,045       (31,723 )     (941 )     123,167       3,613  
Class 529-B
    7,819       236       10,259       302       (3,966 )     (120 )     14,112       418  
Class 529-C
    24,796       745       17,269       509       (10,676 )     (320 )     31,389       934  
Class 529-E
    4,272       128       3,910       114       (1,991 )     (60 )     6,191       182  
Class 529-F
    2,698       80       1,212       35       (1,349 )     (40 )     2,561       75  
Class R-1
    12,422       380       3,829       113       (8,260 )     (257 )     7,991       236  
Class R-2
    106,043       3,220       47,785       1,411       (103,465 )     (3,135 )     50,363       1,496  
Class R-3
    215,483       6,429       98,562       2,888       (197,774 )     (5,938 )     116,271       3,379  
Class R-4
    233,825       6,946       64,110       1,866       (152,835 )     (4,629 )     145,100       4,183  
Class R-5
    370,761       10,741       245,433       7,095       (224,773 )     (6,877 )     391,421       10,959  
Total net increase
                                                               
   (decrease)
  $ 3,778,543       111,822     $ 4,680,854       135,653     $ (4,178,382 )     (124,572 )   $ 4,281,015       122,903  
                                                                 
Year ended September 30, 2007
                                                         
Class A
  $ 4,103,796       123,196     $ 3,116,283       99,024     $ (5,454,268 )     (162,893 )   $ 1,765,811       59,327  
Class B
    138,487       4,241       123,718       3,992       (205,668 )     (6,256 )     56,537       1,977  
Class C
    333,540       10,257       112,634       3,656       (221,225 )     (6,777 )     224,949       7,136  
Class F
    283,721       8,476       66,895       2,132       (233,169 )     (6,953 )     117,447       3,655  
Class 529-A
    150,526       4,543       49,711       1,587       (45,923 )     (1,374 )     154,314       4,756  
Class 529-B
    14,510       444       7,800       252       (6,317 )     (192 )     15,993       504  
Class 529-C
    42,675       1,306       12,302       397       (16,182 )     (491 )     38,795       1,212  
Class 529-E
    8,451       257       2,827       91       (3,363 )     (101 )     7,915       247  
Class 529-F
    3,856       116       845       27       (1,994 )     (60 )     2,707       83  
Class R-1
    21,118       652       2,420       79       (8,883 )     (271 )     14,655       460  
Class R-2
    194,354       5,958       36,133       1,170       (137,584 )     (4,207 )     92,903       2,921  
Class R-3
    369,758       11,240       71,594       2,302       (252,599 )     (7,652 )     188,753       5,890  
Class R-4
    259,031       7,819       48,104       1,538       (344,584 )     (10,324 )     (37,449 )     (967 )
Class R-5
    714,553       20,884       158,792       5,044       (237,454 )     (7,140 )     635,891       18,788  
Total net increase
                                                               
   (decrease)
  $ 6,638,376       199,389     $ 3,810,058       121,291     $ (7,169,213 )     (214,691 )   $ 3,279,221       105,989  
                                                                 
(*) Includes exchanges between share classes of the fund.
                                                 
 
6. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities, of $11,258,615,000 and $14,496,768,000, respectively, during the six months ended March 31, 2008.
 
 
Financial highlights (1)

 
                  (Loss) income from investment operations(2)       Dividends and distributions                                                        
         
Net asset value, beginning of period
   
Net investment income
   
Net (losses) gains 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 to average net assets (4)
 
Class A:
                                                                                                           
  Six months ended 3/31/2008
    (5 )   $ 36.83     $ .30           $ (2.73 )   $ (2.43 )   $ (.68 )   $ (2.27 )   $ (2.95 )   $ 31.45       (7.34 )%   $ 44,681       .74 %     (6 )     .70 %     (6 )     1.73 %     (6 )
  Year ended 9/30/2007
            31.73       .48             7.18       7.66       (.50 )     (2.06 )     (2.56 )     36.83       25.46       49,213       .74               .70               1.44          
  Year ended 9/30/2006
            29.53       .49             3.93       4.42       (.40 )     (1.82 )     (2.22 )     31.73       15.80       40,517       .75               .71               1.63          
  Year ended 9/30/2005
            24.91       .37             4.51       4.88       (.26 )     -       (.26 )     29.53       19.68       35,342