emgf24b2.htm

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Emerging Markets Growth FundSM

Seeks long-term growth of capital by investing in companies operating in developing countries around the world

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Semi-annual report for the six months ended December 31, 2007

Dear shareholders:

Emerging markets registered solid gains as robust economies in several countries — including China, India, Brazil and Russia — tempered concerns about deteriorating global credit markets and slowing growth in the U.S. Sustained demand for commodities also provided a substantial boost. For the six-month period ended December 31, 2007, the net asset value of the Emerging Markets Growth Fund rose 15.5%, with distributions reinvested, compared to 18.6% for its benchmark.*

The rise in equity markets was characterized by substantial volatility. Stocks fell in August amid credit-related market turmoil in the U.S. and Europe, rallied in September and October along with global markets in response to monetary easing by the U.S. Federal Reserve, then slid again in late November as fears of a global slowdown resurfaced.

Market review

Results diverged significantly by market and by sector. Energy outpaced the other sectors by a wide margin, rising 44% on the back of escalating crude oil prices. Telecommunication services, materials and industrials — all sectors more dependent on demand from developing rather than developed economies — advanced between 20% and 30%. Financials stocks, which largely escaped the problems afflicting Western banks, registered a 15% gain with shares rising sharply in the “BRIC” economies of Brazil, Russia, India and China. Information technology stocks, which tend to rely more on the U.S. economy, fell 4%, while consumer discretionary stocks, which are more susceptible to a cyclical slowdown, rose only 3%.

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EMGF total returns vs. MSCI Emerging Markets Index (stacked) for periods ended 12/31/07 (with distributions reinvested)

							MSCI
	Emerging						Emerging
	Markets						Markets
	Growth Fund			Annualized			Index*			Annualized

6 months		15.5	%		—	%		18.6	%		—	%
12 months		38.6			—			39.4			—
3 years		161.8			37.8			146.9			35.2
5 years		378.8			36.8			383.1			37.0
10 years		284.3			14.4			280.5			14.3
Lifetime		4,844.6			19.8			—	†		—	†
(since 5/30/86)

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*The MSCI Emerging Markets Investable Market Index (“EM IMI”) was adopted as the fund’s benchmark, effective December 1, 2007, as it better reflects the fund’s investment universe. Returns for the “MSCI Emerging Markets Index (stacked)” were calculated using the MSCI Emerging Markets Index with gross dividends from December 31, 1987, to December 31, 2000; the MSCI Emerging Markets Index with net dividends from January 1, 2001, to November 30, 2007; and the MSCI EM IMI with net dividends reinvested from December 1, 2007, to December 31, 2007. For the one-month period ended December 31, 2007, the fund’s return was 1.27%, with dividends reinvested. The MSCI Emerging Markets Index and the MSCI EM IMI gained 0.35% and 0.38%, respectively, over the same one-month period. The indices are unmanaged and do not reflect the effect of sales charges, commissions or expenses.

†MSCI Emerging Markets Index did not start until December 31, 1987.

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Percentage changes for markets and sectors are based on the MSCI Emerging Markets Index, with net dividends reinvested, and are for the six-month period ended December 31, 2007, unless otherwise noted. All returns and stock prices are reflected in U.S. dollars, unless otherwise noted.

Fund results shown in this report are for past periods and are not predictive of results for future periods. The results shown are before taxes on fund distributions and sale of fund shares. 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, please call 800/421-0180, ext. 96245. Investing outside the United States, especially in developing markets, may be subject to additional risks, such as currency and price fluctuations, political instability, differing securities regulations and periods of illiquidity, which are detailed in the fund’s prospectus.

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Materials and industrials benefited as commodities gained and the improved government finances in several countries boosted spending on infrastructure needs, such as transportation and power generation. France’s Lafarge, the world’s largest cement maker, announced plans to acquire the cement division of Egypt’s Orascom Construction, thereby becoming the largest cement producer in the Middle East and highlighting the global trend toward consolidation in the cement industry. The information technology sector declined on continued softness in chip prices, concerns over the impact of a stronger rupee on India’s export-driven technology service providers and expectations of slowing demand from the U.S.

Equity markets surged in the large and vibrant economies of Brazil, Russia, India and China, with gains ranging from 28% for Russia to 48% for India. Countries where economic policies have been moving in a positive direction — Egypt, Turkey and Indonesia — also witnessed a sharp rise in stocks. Mexican stocks fell, however, hampered by close ties to the U.S. economy. Taiwanese equities also declined, weighed down by the weak performance of information technology stocks.

China dominated headlines and investor attention, propelled by a string of successful initial public offerings (IPOs) and the fastest pace of GDP growth in more than a decade. Chinese Internet search engine Alibaba’s issue of the world’s largest Internet-related IPO since Google and PetroChina’s $8.9 billion inaugural offering on the Shanghai stock exchange highlighted surging domestic retail interest in Chinese stocks. Worries about the overvaluation of domestic A-share stocks and the possible deflation of an asset bubble persisted throughout the period, and several large companies, including PetroChina, declined in December.

After announcing in August that mainland residents would be allowed to invest in the Hong Kong stock market, the Chinese government said in September that unspecified limits would be imposed to prevent a disruptive rush to Hong Kong’s lower-priced shares. Longstanding restrictions on capital movement have kept China’s $2.2 trillion in household savings within the mainland, contributing to investor concerns about the market overheating. Authorities allowed the renminbi to appreciate to the highest level on record against the U.S. dollar, with the currency gaining about 4% for the period. Telecommunication services and energy stocks led Chinese markets, with China Mobile among the largest contributors to the MSCI China Index’s 37% advance.

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10 largest equity holdings
				Percent of price
	Percent of net			change for six
	assets as of			months ended
	12/31/07			12/31/07*

América Móvil		3.2	%		–1.0	%
OAO Gazprom		3.0			35.9
Taiwan Semiconductor		2.4			–12.1
Samsung Electronics		2.3			–5.2
Hon Hai Precision		2.1			–14.6
Orascom Construction		1.8			57.8
Telekomunikasi Indonesia		1.6			.1
GOME Electrical Appliances Holding		1.4			65.1
DLF		1.1			109.1
Orascom Telecom Holding		1.1			28.1
Total		20.0	%

*The percentage change is reflected in U.S. dollars. The actual gain or loss on the total position in the fund may differ from the percentage shown.

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India’s domestic stock market touched a record high in October amid strong foreign capital flows, pushing the rupee to its highest level in more than nine years and prompting the nation’s securities regulator to tighten rules for international investors. The economy showed signs of slowing from its heady pace but still maintained an annualized GDP growth of 8.9% in the third quarter. In other developments, a previously agreed-upon civilian nuclear contract with the U.S. fell through in October, setting back prospects for progress in nuclear power generation.

South Korea shares posted mixed results. Strong demand in Asia and the Persian Gulf supported gains in the materials and industrials sectors as steelmakers POSCO and Hyundai Steel led South Korean markets. Consumer discretionary, financials and information technology stocks posted weak results, with Samsung Electronics among the emerging markets’ major detractors to returns. Opposition candidate Lee Myung-bak was elected South Korea’s president in December, ending a decade of liberal rule by Kim Dae-jung and his successor Roh Moo-hyun.

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Where the fund’s assets were invested

	Percent of net assets									MSCI EM Index1						Value of holdings 12/31/07
	12/31/06			6/30/07			12/31/07			6/30/07			12/31/07			(in thousands)
Asia-Pacific
China		9.6	%		10.3	%		9.7	%		12.7	%		15.9	%	$	1,584,330
Hong Kong		1.5			1.1			1.2			—			—			197,362
India		6.5			5.5			7.1			6.4			8.3			1,150,987
Indonesia		3.4			2.2			2.7			1.6			1.7			435,179
Malaysia		3.9			4.4			4.7			2.7			2.5			771,402
Philippines		.8			1.0			1.3			.6			.5			210,198
Singapore		.2			.9			1.3			—			—			205,890
South Korea		11.0			10.3			9.2			15.6			14.3			1,499,084
Sri Lanka		.1			.2			.2			—			—			27,553
Taiwan		11.9			11.2			9.7			12.5			9.9			1,582,072
Thailand		1.5			1.3			1.7			1.4			1.3			271,876
Vietnam		.4			.3			.1			—			—			18,807
		50.8			48.7			48.9			53.5			54.4			7,954,740
Latin America
Argentina		.4			.3			.4			.7			.4			68,957
Brazil		9.6			12.6			7.2			11.2			13.4			1,177,443
Chile		.5			.5			.4			1.6			1.2			62,695
Colombia		.3			.4			.4			.3			.3			57,779
Dominican Republic		—			—			—			—			—			665
Mexico		7.7			6.1			5.9			6.0			4.5			953,516
Peru		.1			—			—			.6			.6			—
Venezuela		—			—			—			—			—			1,239
		18.6			19.9			14.3			20.4			20.4			2,322,294

Eastern Europe and Middle East
Croatia		—			—			.1			—			—			17,034
Czech Republic		.1			—			—			.8			.8			—
Hungary		.4			—			—			1.1			.8			—
Israel		2.5			2.1			1.8			2.3			2.1			297,213
Kazakhstan		.2			.5			.4			—			—			73,065
Oman		.1			.3			.3			—			—			45,404
Pakistan		—			.1			.1			.2			.1			17,449
Poland		.4			.2			.5			1.9			1.7			78,338
Russia		5.3			6.4			11.7			9.5			10.1			1,909,880
Turkey		3.4			2.8			1.7			1.6			1.7			275,206
United Arab Emirates		.1			.1			.1			—			—			18,160
		12.5			12.5			16.7			17.4			17.3			2,731,749
Africa
Egypt		2.0			2.7			3.6			.8			.8			585,469
Morocco		.1			.1			.1			.3			.3			15,291
South Africa		8.7			7.9			6.0			7.5			6.7			975,370
		10.8			10.7			9.7			8.6			7.8			1,576,130
Other markets2
Canada		.4			.5			.5									79,885
Germany		—			.2			.2									24,066
Netherlands		.2			—			.1									15,727
Sweden		.1			.1			—									—
United Kingdom		.7			1.0			1.1									182,862
United States of America		.6			.7			.8									130,479
		2.0			2.5			2.7									433,019
Multinational		.5			.6			.6									100,654
Other3		1.1			1.2			1.4									235,027
Cash & equivalents less liabilities
					3.7			3.9			5.7						922,068
Total net assets		100.0	%		100.0	%		100.0	%							$	16,275,681

1 MSCI Emerging Markets Index also includes Jordan (0.1% at 6/30/07 and 0.1% at 12/31/07). A dash indicates that the market is not included in the index. Source: MSCI.
2 Includes investments in companies incorporated in the region that have significant operations in emerging markets.
3 Includes stocks in initial period of acquisition.

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Percent change in key markets*
	Six months
	ended 12/31/07
	Expressed			Expressed
	in U.S.			in local
	dollars			currency

Asia-Pacific
China		36.7	%		36.4	%
India		48.2			43.4
Indonesia		36.1			41.5
Malaysia		13.5			8.7
Philippines		7.0			–4.5
South Korea		8.7			10.2
Taiwan		–1.8			–3.1
Thailand		19.7			16.8

Latin America
Argentina		–8.1			–6.2
Brazil		36.6			26.3
Chile		–4.3			–9.5
Colombia		3.5			6.7
Mexico		–6.3			–5.3
Peru		16.5			14.4

Eastern Europe and Middle East
Czech Republic		30.2			11.3
Hungary		–7.0			–11.6
Israel		14.5			4.8
Pakistan		–3.0			–1.1
Poland		2.6			–9.4
Russia		28.0			26.7
Turkey		31.7			18.2

Africa
Egypt		38.9			34.7
Morocco		16.4			9.1
South Africa		7.4			4.1

Other markets
Jordan		19.2			19.3

Emerging Markets
	Growth Fund				15.5

*The market indices, compiled by MSCI, are unmanaged and their results include reinvested distributions, but do not reflect the effect of sales charges, commissions or expenses.

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Taiwanese stocks weakened throughout the period, hampered by Taiwan’s export-dependent economy and sharp declines in the information technology, financials and consumer discretionary sectors. Sluggish results from software companies Hon Hai Precision and Taiwan Semiconductor Manufacturing weighed heavily on the market.

Indonesian stocks touched record highs, boosted by rising prices for commodities, particularly palm oil. Malaysian stocks rose 13%, supported by an improving economy. Thai stocks also gained considerably after Thailand relaxed several foreign exchange controls imposed in late 2006 to stem currency appreciation. At the end of the year, Thailand’s first election since the September 2006 military coup that ousted prime minister Thaksin Shinawatra awarded the most seats to the Thaksin-friendly People’s Power Party, though the party fell short of a parliament majority.

Latin American stocks declined for the most part. Brazil, however, posted strong gains, lifted by oil producer Petrobras and mining giant Vale do Rio Doce (CVRD). Brazilian stocks benefited from an expanding domestic economy, declining interest rates and the global commodities boom, especially for agricultural products, which are among the nation’s largest exports. Mexican stocks declined, with materials and consumer discretionary posting the weakest results, hurt by Cemex and media company Grupo Televisa. Former first lady Cristina Fernández de Kirchner was elected president of Argentina in October.

Russian stocks were buoyed by energy giant Gazprom and Russian telecom provider VimpelCom. Gazprom announced a partnership with French company Total in July to develop the Shtokman field, the world’s second-biggest natural gas reserve. President Vladimir Putin accepted a December offer to become Russia’s prime minister under his newly chosen successor, Dmitry Medvedev, indicating that Putin may maintain power after leaving office.

South African stocks did not keep up with the broader emerging markets, dragged down by the consumer discretionary sector and relatively weak results from resource companies. Several major gold stocks, such as Harmony Gold, fell sharply. The South African central bank increased its key interest rate to 11% in an effort to combat inflation, which reached a four-year high of 7.9% in November. On the political front, Jacob Zuma was elected leader of South Africa’s ruling African National Congress, defeating President Thabo Mbeki and raising speculation over the ANC’s candidate for the 2009 presidential election.

Turkish stocks rose more than 30%, bolstered by a resounding parliamentary victory for the ruling AK Party, declining interest rates, improving public finances and greater political stability. Abdullah Gül became Turkey’s president in August, three months after an earlier effort to elect him triggered a political crisis and early elections.

Most emerging markets currencies appreciated against the U.S. dollar, with the Turkish lira, Brazilian real and Chilean peso gaining noticeable ground. Several central banks including South Africa, Mexico, China, India and South Korea raised rates, pressured by rising food and energy prices, though Turkey, Brazil and the Philippines lowered rates.

Portfolio review

Fund results were strong for the six-month period ended December 31, 2007, but were lower than those of its benchmark.* The fund benefited from stock selection in various areas of consumer economies, including food products, beverages, specialty retail, automobiles, and textiles, apparel and luxury goods. Chinese electronics retailer GOME, Hong Kong land company CC Land Holdings and luxury hotel chain Shangri-La Asia were among the top contributors to fund results.

Rising demand for agricultural commodities such as sugar and palm oil, which can be used as an alternative fuel, also benefited fund returns. Palm oil producers IOI of Malaysia and Singapore-based Wilmar contributed to results, while beverage conglomerate United Spirits of India and meat producer Perdigão of Brazil also helped returns.

The fund’s investments in Russia have grown, particularly among steel, and metals and mining companies, including steel group Evraz, Magnitogorsk Iron and Steel Works, Novolipetsk Steel, and potash producer Uralkali. Share prices for these companies rose amidst strong sales and profits, boosted by a robust domestic economy that grew at a 7% annualized rate in 2007.

Against this backdrop, we gradually increased our investments in Russian oil and gas companies over the period on the view that the valuations of many stocks have become attractive relative to oil companies in both the emerging markets and the developed world. We significantly added to our holdings in Gazprom, which was the fund’s second-largest holding at the end of the period. Gazprom is one of the world’s largest gas companies and controls all natural gas exported from Russia.

The fund’s underweight position in the energy sector compared to the MSCI Emerging Markets Index detracted from results, including its lack of sufficient investment in Brazil’s Petrobras and the Indian petrochemicals conglomerate Reliance Industries. The fund’s investment in China Shenhua Energy was beneficial as shares of China’s largest coal producer gained 70% amid growing demand for coal.

Holding relatively few shares of a number of mega-cap stocks that rose sharply during the period, such as Brazilian iron ore producer CVRD, Chinese cellular provider China Mobile and China Life Insurance, also detracted from results.

On the other hand, we held several investments in small- and mid-cap companies and the selection of stocks in these market-capitalization ranges benefited results. Many of these companies are privately run entrepreneurial enterprises catering to domestic demand, and shares rose in the aggregate. However, as investors turned more defensive amid weakening global economies and rising inflationary pressures, mega-cap stocks generally did better than small-cap stocks.

The fund’s overweight position in telecommunication services stocks proved favorable, as telecommunication services and other sectors associated with steady earnings held a comparative advantage during the recent period of market turmoil. However, two of the fund’s largest telecom holdings — Telekom Indonesia and América Móvil — lagged the market. Telekom Indonesia suffered partly due to a rotation by domestic investors out of telecoms and into commodities, but also as a result of increased competition in the wireless business. América Móvil retreated amid a broader sell-off in Mexico, even though the revenues and profits remained strong for the wireless cellular provider. América Móvil was the fund’s largest holding at the end of the period.

Many of the fund’s information technology holdings weighed on results. Shares of Taiwan Semiconductor Manufacturing fell 12%, and those of electronics components manufacturer Hon Hai Precision declined 15% on concerns over rising costs and emerging competition from smaller Chinese manufacturers. Indian technology services provider Infosys Technologies, which derives most of its revenue by selling services to U.S. companies, fell 6% on worries over sales volumes due to the rupee’s sharp appreciation against the U.S. dollar and expectations of a slowing U.S. economy. The decision not to invest in several smaller technology companies that posted double-digit losses helped the portfolio.

Several investments in the industrials sector contributed to returns including construction companies that benefited from the construction boom in the Middle East, such as Orascom Construction of Egypt and Murray & Roberts of South Africa. Mexican toll road company Empresas ICA and Indian wind energy company Suzlon Energy also helped, though the fund’s investment in Malaysian container company Transmile detracted from results. Transmile shares fell after accounting inconsistencies were discovered by auditors.

During the period, we increased our investments in the energy sector and reduced our holdings in financials. In our view, although emerging markets financials stocks have weathered the recent market turmoil better than their developed market counterparts, we believe they could come under some stress should the global economy slow down sharply and credit markets weaken further. Moreover, loan underwriting standards have been lax in some markets and questions remain concerning the quality of banks’ loan books, prompting us to limit investments in this area.

Outlook

Emerging markets equities held their ground during a period of substantial market turbulence, underscoring the resilience of the asset class. In a reversal of the 1997 Asian financial crisis, emerging markets came to be seen as the source of economic and financial market stability, while the U.S. was the epicenter of market troubles. Asian sovereign wealth funds provided a large part of the financing for several troubled Western banks, highlighting the increased participation of emerging markets institutions in global markets and the contribution of the Asian savings pool to financial market stability.

In our view, the greater integration of emerging markets into the global economy and financial system is a positive development. By ensuring multiple levels of global growth across different geographical areas, the chances of avoiding a global slump are higher. Greater integration also ensures the continuation of public policies toward more open trade, more transparent and better regulated capital markets that allow for greater capital formation and ultimately, higher economic growth.

After five continuous years of substantial gains, the question for most investors is whether emerging markets equities can continue to rise further, especially in the face of slowing global growth and financial market volatility. Furthermore, the price-to-earnings ratio of emerging markets stocks, which have traditionally traded at a discount, have become more similar to developed markets, providing little cushion in terms of valuation.

Against this backdrop, we remain cautious toward emerging markets equities in the near term. Although emerging markets economies remain quite robust, we believe they will not escape unscathed in the event of simultaneous economic slowdowns in the U.S., Europe and Japan, which appear increasingly likely. Moreover, if the U.S. enters a recession — a possibility that cannot be ruled out — the repercussions for emerging markets economies will be even greater.

There is no doubt that there is great vibrancy and momentum in domestic economies such as China, India, Brazil, Russia, Malaysia and Indonesia, even though more advanced emerging markets economies, such as South Korea and Taiwan, are growing at a slower pace. In the aggregate, the GDP of emerging markets economies grew at 8.1% in 2007, according to estimates from the International Monetary Fund (IMF) — more than three times the 2.5% rate of major developed economies in the U.S., Europe and Japan over the same period. China was estimated by the IMF to have been the world’s greatest contributor to global growth in 2007. With this degree of momentum, we expect domestic economies to provide some counterbalance to the slowdown in advanced economies, though we recognize this may not be enough to entirely offset the impact of sluggish developed economies. As such, we may see a period of slower economic growth and lower corporate profitability compared to recent years. Rising inflationary pressures and appreciating emerging markets currencies also limit the ability of authorities to use monetary tools to stimulate economies.

With this in mind, we are emphasizing higher quality, cash-generative companies in the fund along with those that have good earnings visibility. We are avoiding the more export-oriented industries, as well as most companies in the financials sector. We continue to like several small- and mid-sized companies based on their entrepreneurial culture and orientation toward domestic economies.

Despite these near-term challenges, the medium-term outlook for emerging markets remains quite positive. Utilizing the boon of recent economic growth, many governments have focused on addressing several economic imbalances by reducing or eliminating fiscal deficits, channeling surplus revenues from high commodity and energy prices into stabilization funds, building up foreign exchanges reserves and keeping inflation within bounds. According to the IMF, the current account surplus of emerging markets in the aggregate stood at $684 billion at the end of 2007, rising from $89 billion at the end of 2001. This compares to a $500 billion current account deficit for the advanced economies, most of it accounted for by the U.S. Large current account surpluses have attracted capital inflows, and policymakers have responded by letting exchange rates appreciate to a degree and by liberalizing capital outflows, while continuing to accumulate reserves.

Stronger fiscal and external account profiles should provide a greater degree of insulation for many emerging markets against financial market volatility and, should it occur, a slide in commodity and energy prices. With that, we also expect to see greater differentiation of returns among industries, markets and individual stocks as domestic and local factors have greater influence than external factors — a phenomenon we observed in this six-month period. We believe this is a good environment for active managers.

We look forward to reporting to you in another six months.

Sincerely,

/s/ Shaw B. Wagener

Shaw B. Wagener

President

December 31, 2007

About the fund and its adviser

Emerging Markets Growth Fund was organized in 1986 by the International Finance Corporation (IFC), an affiliate of the World Bank, as a vehicle for investing in the securities of companies based in developing countries. The premise behind the formation of the fund was that rapid growth in these countries could create very attractive investment opportunities. It also was felt that the availability of equity capital would stimulate the development of capital markets and encourage countries to liberalize their investment regulations.

Capital International, Inc., the fund’s current investment adviser, is one of The Capital Group Companies,SM one of the world’s most experienced investment advisory organizations, with roots dating back to 1931. The Capital Group organization has been involved in international investing since the 1950s. Capital International employs a research-driven approach to investing. Along with its institutional management affiliates, Capital International maintains a global investment research network that employs more than 170 investment professionals based on three continents. They include analysts and portfolio managers, born in over 29 countries, who speak a variety of languages. These professionals travel millions of miles each year, keeping a close watch on industry trends and government actions and scrutinizing thousands of companies.

Over time, the fund’s adviser has devoted increased resources to the task of evaluating and managing investments in developing countries. Currently, there are 22 analysts covering these countries, compared with four in 1986; 19 of these analysts also manage a portion of the fund. Most of the fund’s assets are managed by the six portfolio managers.

Capital International’s research effort focuses heavily on sectors as well as on individual countries. It is an intensive effort that combines company and industry analysis with a political and macroeconomic overview, and we believe it has given Emerging Markets Growth Fund a competitive edge.

Investment portfolio

December 31, 2007

unaudited

	Equity securities
Sector diversification	Common stocks			Preferred stocks			Convertible stocks			Bonds and notes			Percent of net assets
Materials		15.25	%		.48	%		.02	%		-	%		15.75	%
Telecommunication services		11.59			.78			-			-			12.37
Industrials		11.71			-			-			-			11.71
Information technology		11.61			-			-			-			11.61
Financials		11.22			.27			-			.06			11.55
Energy		10.64			.49			-			-			11.13
Consumer discretionary		9.00			-			-			.01			9.01
Consumer staples		5.80			.77			-			-			6.57
Utilities		1.24			.59			-			.03			1.86
Health care		1.23			-			.01			-			1.24
Other		1.24			-			-			.29			1.53
		90.53	%		3.38	%		.03	%		.39	%		94.33	%

Short-term securities														4.28
Excess of cash and receivables over payables														1.39

Net assets														100.00	%

Equity securities			Value
	Shares			(000	)

Argentina - 0.20%
Empresa Distribuidora y Comercializadora Norte SA, Class B (ADR) (1)		1,037,300	$	22,841
Grupo Financiero Galicia SA, Class B (1)		5
Grupo Financiero Galicia SA, Class B (ADR) (1)		1,175,700		8,912
				31,753

Brazil - 7.13%
Anhanguera Educacional Participações SA, units (1)		578,600		12,359
B2W - Cía. Global do Varejo, ordinary nominative		1,158,600		46,240
B2W - Cía. Global do Varejo (GDR) (acquired 10/11/05, cost: $6,746,000) (2)		228,978		18,277
Banco do Estado do Rio Grande do Sul SA, Class B, preferred nominative		3,768,000		23,277
CESP - Cía. Energética de São Paulo, Class B, preferred nominative (1)		402,760		9,832
Cía. de Bebidas das Américas - AmBev, ordinary nominative (ADR)		643,644		43,768
Cía. de Bebidas das Américas - AmBev, preferred nominative (ADR)		1,772,522		125,902
Cía. de Saneamento de Minas Gerais, ordinary nominative		1,444,800		25,177
Cía. Energética de Minas Gerais - CEMIG, preferred nominative		5,276,051		96,387
Cía. Vale do Rio Doce, ordinary nominative (ADR)		8,400		274
Cía. Vale do Rio Doce, Class A, preferred nominative (ADR)		2,309,024		64,606
Companhia de Concessões Rodoviárias, ordinary nominative		3,460,200		53,488
Drogasil SA, ordinary nominative		1,521,000		12,269
Dufry South America Ltd. (BDR) (1)		2,238,500		57,252
Embraer - Empresa Brasileira de Aeronáutica SA, ordinary nominative		1,825,400		20,675
Embraer - Empresa Brasileira de Aeronáutica SA, ordinary nominative (ADR)		1,336,400		60,926
GVT (Holding) SA, ordinary nominative (1)		278,200		5,591
Helbor Empreendimentos SA, ordinary nominative (1)		2,590,000		16,714
Itaúsa - Investimentos Itaú SA, preferred nominative		3,129,274		20,668
LIGHT - Serviços de Eletricidade SA, ordinary nominative		560,613		9,028
Marfrig Frigoríficos e Comércio de Alimentos SA, ordinary nominative		4,673,800		40,065
Marisa SA, ordinary nominative (1)		2,840,600		12,534
New GP Capital Partners, LP, Class B (acquired 1/28/94, cost: $11,955,000) (2) (3) (4)		27,000
Perdigão SA, ordinary nominative		2,256,629		56,143
Petróleo Brasileiro SA - Petrobras, ordinary nominative (ADR)		271,500		31,288
Petróleo Brasileiro SA - Petrobras, preferred nominative (ADR)		833,000		80,151
SLC Agrícola SA (1)		1,274,800		11,823
Telemig Celular Participações SA, preferred nominative (ADR)		549,658		30,863
Telemig Celular SA, Class G, preferred nominative		38,529		13,624
Tele Norte Celular Participações SA, ordinary nominative (1) (4)		184,298		7,541
Tele Norte Celular Participações SA, preferred nominative (1) (4)		453,978		6,760
Tele Norte Leste Participações SA, preferred nominative		963,200		18,490
TIM Participações SA, ordinary nominative		9,498,543		44,849
TIM Participações SA, preferred nominative		16,180,302		55,299
TIM Participações SA, preferred nominative (ADR)		232,600		8,129
Usinas Siderúrgicas de Minas Gerais SA, ordinary nominative		160,700		7,498
Usinas Siderúrgicas de Minas Gerais SA, Class A, preferred nominative		267,247		12,243
				1,160,010

Canada - 0.49%
Banro Corp. (1)		1,063,500		12,214
CIC Energy Corp. (1) (4)		3,080,300		44,221
Platmin Ltd. (1)		2,384,200		22,843
Platmin Ltd. (CDI) (1)		64,200		607
				79,885

Chile - 0.39%
Cía. de Telecomunicaciones de Chile SA (ADR)		4,450,500		33,201
Ripley Corp SA		26,814,261		29,414
Ripley Corp SA, rights expire January 15, 2008		2,088,777		80
				62,695

China - 9.73%
Acorn International, Inc. (ADR) (1)		75,000		700
Advanced Semiconductor Manufacturing Corp. Ltd. (Hong Kong) (1)		8,030,000		395
Alibaba.com Ltd. (Hong Kong) (1)		1,282,500		4,548
Anhui Conch Cement Co. Ltd. (Hong Kong)		6,532,000		56,268
Anhui Conch Cement Co. Ltd., Class A Call Warrants issued by Citigroup, expire January 20, 2010 (acquired 12/21/06, cost: $860,000) (2)		236,600		2,359
Anhui Conch Cement Co. Ltd., Class A Call Warrants issued by Lehman Brothers, expire June 2, 2008 (acquired 5/31/06, cost: $359,000) (2)		96,795		965
ANTA Sports Products Ltd. (Hong Kong) (1)		24,728,600		34,149
Beijing Enterprises Holdings Ltd. (Hong Kong)		6,527,000		30,738
Bio-Treat Technology Ltd. (Singapore)		8,713,911		4,696
BYD Co. Ltd. (Hong Kong)		5,697,000		37,572
China Aoyuan Property Group Ltd. (Hong Kong) (1)		46,469,000		24,522
China Communications Construction Co. Ltd. (Hong Kong)		18,200,000		46,931
China Construction Bank Corp. (Hong Kong)		60,010,600		50,330
China High Speed Transmission Equipment Group Co. Ltd. (Hong Kong) (1)		1,249,000		3,271
China Huiyuan Juice Group Ltd. (Hong Kong) (1)		930,500		968
China Life Insurance Co. Ltd. (Hong Kong)		1,423,000		7,242
China Life Insurance Co. Ltd. (ADR)		486,566		37,222
China Mengniu Dairy Co. (Hong Kong)		18,151,000		66,383
China Merchants Bank Co. Ltd. (Hong Kong)		3,160,500		12,747
China Mobile Ltd. (Hong Kong)		3,206,000		55,555
China Molybdenum Co. Ltd. (Hong Kong) (1)		23,349,000		42,197
China National Offshore Oil Corp. (Hong Kong)		8,935,000		14,998
China Oilfield Services Ltd. (Hong Kong)		2,638,000		5,963
China Overseas Land & Investment Ltd. (Hong Kong)		8,418,083		17,261
China Resources Enterprise Ltd. (Hong Kong)		7,394,000		31,470
China Shenhua Energy Co. Ltd. (Hong Kong)		23,427,500		138,930
China Yurun Food Group Ltd. (Hong Kong)		6,305,000		10,358
COSCO Pacific Ltd. (Hong Kong)		8,917,000		23,556
Country Garden Holdings Co. Ltd. (Hong Kong) (1)		5,659,000		6,520
Ctrip.com International Ltd. (ADR)		1,072,600		61,642
Dalian Port (PDA) Co. Ltd. (Hong Kong)		9,674,000		7,287
GOME Electrical Appliances Holding Ltd. (Hong Kong)		86,821,829		219,584
Industrial and Commercial Bank of China Ltd. (Hong Kong)		110,497,000		78,537
Intime Department Store (Group) Co. Ltd. (Hong Kong) (1)		1,101,500		1,292
Lenovo Group Ltd. (Hong Kong)		79,412,700		70,311
Li Ning Co. Ltd. (Hong Kong)		7,104,000		26,064
New Oriental Education & Technology Group Inc. (ADR) (1)		388,300		31,293
Nine Dragons Paper Industries Co. Ltd. (Hong Kong)		17,069,200		42,879
PetroChina Co. Ltd. (Hong Kong)		22,365,100		39,466
Qinghai Salt Lake Potash Co. Ltd., Class A Call Warrants issued by UBS AG, expire May 10, 2010 (acquired 5/8/07, cost: $14,396,000) (2)		2,865,214		30,543
Semiconductor Manufacturing International Corp. (Hong Kong) (1)		143,843,000		15,011
Shanghai Forte Land Co. Ltd. (Hong Kong)		7,550,000		4,104
Shanghai Prime Machinery Co. Ltd. (Hong Kong)		20,880,000		7,103
Sinofert Holdings Ltd. (Hong Kong)		138,158,300		128,050
Tong Ren Tang Technologies Co. Ltd. (Hong Kong)		804,900		1,491
TPV Technology Ltd. (Hong Kong)		43,528,000		31,449
Wumart Stores, Inc. (Hong Kong)		3,878,384		3,289
Yanzhou Coal Mining Co. Ltd. (Hong Kong)		8,268,000		16,121
				1,584,330

Colombia - 0.35%
Cía. de Cemento Argos SA		1,999,900		8,904
Inversiones Argos SA		7,906,483		47,274
				56,178

Egypt - 3.60%
Commercial International Bank (Egypt) S.A.E		883,146		14,612
Egyptian Company for Mobile Services S.A.E.		2,477,200		91,565
Orascom Construction Industries Co.		2,048,971		212,541
Orascom Construction Industries Co. (GDR)		391,656		82,021
Orascom Telecom Holding S.A.E (GDR)		2,183,900		180,863
Raya Holding Co. for Technology and Communication S.A.E		1,634,700		3,867
				585,469

Germany - 0.15%
C.A.T. oil AG (1)		1,103,502		24,066
				24,066

Hong Kong - 1.21%
C C Land Holdings Ltd.		44,176,300		63,710
Clear Media Ltd. (1)		13,011,000		13,562
Foxconn International Holdings Ltd. (1)		12,769,000		28,490
Kerry Properties Ltd.		447,000		3,565
Kingway Brewery Holdings Ltd.		8,215,300		2,288
Melco International Development Ltd.		443,000		660
Shangri-La Asia Ltd.		27,397,246		85,087
				197,362

India - 7.06%
Ambuja Cements Ltd.		37,137,092		138,416
Apollo Hospitals Enterprise Ltd.		1,222,966		16,225
Apollo Hospitals Enterprise Ltd. (GDR)		233,800		3,102
Bharat Electronics Ltd.		380,971		20,394
Bharat Heavy Electricals Ltd.		751,212		49,105
Bharti Airtel Ltd. (1)		2,727,074		68,605
Cummins India Ltd.		1,182,073		12,459
DLF Ltd.		6,802,923		184,377
GMR Infrastructure Ltd. (1)		2,892,000		18,188
Grasim Industries Ltd.		42,800		3,972
Hotel Leelaventure Ltd.		2,874,100		5,243
Housing Development Finance Corp. Ltd.		1,292,994		93,632
Info Edge (India) Ltd.		4,663		157
Infosys Technologies Ltd.		858,820		38,384
Infrastructure Development Finance Co. Ltd.		8,728,191		50,470
Ishaan Real Estate PLC (1)		2,077,023		4,370
Jammu and Kashmir Bank Ltd.		537,400		11,632
Larsen & Toubro Ltd.		642,219		67,634
McLeod Russel India Ltd. (4)		5,566,169		12,224
Mundra Port and Special Economic Zone Ltd. (1)		9,900		319
Rajesh Exports Ltd.		1,265,191		29,043
Reliance Industries Ltd.		287,193		21,004
SET India Ltd. (acquired 5/15/00, cost: $107,294,000) (1) (2)		284,195		29,519
Shopper's Stop Ltd.		1,005,300		14,155
Shree Cement Ltd.		617,122		20,972
Sobha Developers Ltd.		263,020		6,067
Steel Authority of India Ltd.		439,237		3,155
Suzlon Energy Ltd.		3,005,268		147,617
United Spirits Ltd.		1,455,291		73,350
Wipro Ltd.		365,778		4,865
				1,148,655

Indonesia - 2.67%
PT Astra International Tbk		30,685,000		88,361
PT Bank Mandiri (Persero) Tbk		113,853,500		41,980
PT Bank Rakyat Indonesia (Persero) Tbk		7,686,000		5,999
PT Ciputra Surya Tbk (1)		30,567,500		3,163
PT Jaya Real Property		9,808,000		1,598
PT Medco Energi Internasional Tbk		50,490,500		27,569
PT Perusahaan Gas Negara (Persero) Tbk		3,253,500		5,269
PT Surya Citra Media Tbk		38,277,500		3,832
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, Class B		237,978,402		257,408
				435,179

Israel - 1.83%
"Bezeq" The Israel Telecommunication Corp. Ltd.		31,422,227		58,242
Bank Hapoalim B.M.		7,205,036		35,837
Bank Leumi le-Israel B.M.		4,094,044		19,817
Israel Chemicals Ltd.		4,578,206		58,167
Orbotech Ltd. (1)		425,673		7,471
Partner Communications Co. Ltd.		625,604		13,800
Supersol Ltd.		5,684,048		25,114
Teva Pharmaceutical Industries Ltd. (ADR)		1,694,600		78,765
				297,213

Kazakhstan - 0.45%
OJSC KazMunaiGas Exploration Production (GDR)		2,373,400		73,065
				73,065

Malaysia - 4.74%
AirAsia Bhd. (1)		35,786,500		17,221
Astro All Asia Networks PLC		12,580,200		13,271
Bumiputra-Commerce Holdings Bhd.		46,536,649		153,420
E & O Property Development Bhd. (1)		18,711,300		15,823
EON Capital Bhd.		1,563,400		3,124
Gamuda Bhd.		12,355,600		17,877
Genting Bhd.		4,174,000		9,895
IJM Corp. Bhd.		40,072,114		103,858
IOI Corp. Bhd.		75,620,175		175,787
Mah Sing Group Bhd.		30,938,633		17,901
MISC Bhd.		6,549,700		19,541
Naim Cendera Holdings Bhd.		7,034,300		10,081
Resorts World Bhd.		20,843,500		24,368
S P Setia Bhd. (1)		34,980,450		52,055
Tanjong PLC		3,215,100		17,900
Telekom Malaysia Bhd.		17,556,200		59,194
Transmile Group Bhd. (1) (4)		15,205,500		12,315
UMW Holdings Bhd.		10,145,196		47,771
				771,402

Mexico - 5.86%
América Móvil, SAB de CV, Series A		48,825,000		148,713
América Móvil, SAB de CV, Series L		45,233,020		138,809
América Móvil, SAB de CV, Series L (ADR)		3,787,800		232,533
Carso Infraestructura y Construcción SAB de CV, Series B1 (1)		54,802,200		52,140
CEMEX, SAB de CV, ordinary participation certificates, units (ADR) (1)		2,619,523		67,715
Empresas ICA, SAB de CV, ordinary participation certificates (1)		16,520,851		109,210
Grupo Aeroportuario del Centro Norte, SAB de CV, Series B (ADR)		296,787		7,455
Grupo Famsa, SAB de CV, Series A (1)		5,833,306		18,308
Grupo Financiero Inbursa, SAB de CV		20,551,000		53,421
Grupo Televisa, SAB de CV, ordinary participation certificates (ADR)		966,928		22,984
Impulsora del Desarrollo y el Empleo en America Latina, SAB de CV, Series B1 (1)		40,116,400		52,140
Industrias CH, SAB de CV, Series B (1)		1,930,800		8,141
Kimberly-Clark de México, SAB de CV, Series A		6,463,450		28,348
Wal-Mart de México, SAB de CV, Series V		3,936,395		13,599
				953,516

Morocco - 0.09%
Holcim (Maroc) SA		46,585		15,291
				15,291

Netherlands - 0.10%
Efes Breweries International NV (GDR) (1)		465,304		15,727
				15,727

Oman - 0.28%
BankMuscat (SAOG) (GDR)		2,040,632		45,404


Pakistan - 0.11%
Fauji Fertilizer Co. Ltd.		1,453,600		2,801
Oil and Gas Development Co. Ltd. (GDR)		791,800		14,648
				17,449

Philippines - 1.29%
Ayala Land, Inc.		72,366,696		25,055
Bayan Telecommunications Holdings Corp., Class A (acquired 2/12/98, cost: $1,850,000) (1) (2)		724,790
Bayan Telecommunications Holdings Corp., Class B (acquired 2/12/98, cost: $616,000) (1) (2)		241,431
International Container Terminal Services, Inc.		16,286,388		17,847
Philippine Airlines, Inc. (1)		68,631,450		2,417
Philippine Long Distance Telephone Co.		374,480		28,737
Philippine Long Distance Telephone Co. (ADR)		239,500		18,135
PNOC Energy Development Corp.		564,536,000		89,143
SM Investments Corp.		2,313,829		18,947
SM Prime Holdings, Inc.		40,278,446		9,917
				210,198

Poland - 0.48%
Polski Koncern Naftowy ORLEN SA (1)		2,630,300		54,856
Telekomunikacja Polska SA		2,582,800		23,482
				78,338

Republic of Croatia - 0.10%
HT - Hrvatske telekomunikacije d.d. (GDR) (1)		246,972		17,034
				17,034

Russia - 11.73%
Baring Vostok Private Equity Fund, LP (acquired 12/15/00, cost: $6,189,000) (1) (2) (3) (4) (5)		11,067,256		17,902
Baring Vostok Private Equity Fund III, LP (acquired 3/30/05, cost: $16,849,000) (1) (2) (3) (4) (5)		17,991,464		28,705
Baring Vostok Private Equity Fund IV, LP (acquired 4/25/07, cost: $406,000) (1) (2) (3) (4) (5)		406,137		115
Baring Vostok Fund IV Supplemental Fund, LP (acquired 10/8/07, cost: $69,000) (1) (2) (3) (4) (5)		69,000		69
Evraz Group SA (GDR)		2,331,550		180,592
Integra Group, Class A (GDR) (1)		2,133,110		35,928
JSC Uralkali (1)		9,562,441		73,663
JSC Uralkali (GDR) (1)		488,371		17,988
New Century Capital Partners, LP (acquired 12/7/95, cost: $1,488,000) (1) (2) (3)		5,247,900		5,951
OAO Belon		156,800		14,739
OAO Gazprom		1,334,000		18,672
OAO Gazprom (ADR)		8,204,750		462,025
OAO LUKOIL (ADR)		796,000		68,340
OAO Raspadskaya		3,068,425		19,945
OAO Severstal (GDR)		1,174,300		27,089
OAO TMK		1,212,914		13,160
OAO TMK (GDR)		1,431,305		64,299
OJSC LSR Group (GDR) (1)		1,313,400		18,388
OJSC M.video (1)		5,087,570		35,867
OJSC Magnit (1)		494,894		24,947
OJSC Magnitogorsk Iron and Steel Works (GDR)		7,125,000		118,696
OJSC MMC Norilsk Nickel (ADR)		263,870		70,918
OJSC Mobile TeleSystems (ADR)		883,500		89,931
OJSC Novolipetsk Steel (GDR)		2,347,550		95,127
OJSC OC Rosneft (GDR)		17,759,712		171,473
OJSC OGK-5		72,533,588		12,708
OJSC Pharmstandard (GDR) (1)		1,664,700		45,447
OJSC Power Machines (1)		66,002,565		13,399
OJSC Vimpel-Communications (ADR)		1,209,100		50,299
OJSC VTB Bank (GDR) (1)		1,646,300		16,865
RAO Unified Energy System of Russia (GDR) (1)		8,147		1,059
Sberbank (Savings Bank of the Russian Federation)		12,547,414		52,355
Sberbank (Savings Bank of the Russian Federation) (GDR)		34,500		18,686
X5 Retail Group NV (GDR) (1)		665,050		24,220
				1,909,567

Singapore - 1.26%
Ascendas India Trust		28,651,500		25,520
Banyan Tree Holdings Ltd.		3,782,000		5,362
CapitaRetail China Trust (1)		9,676,000		14,365
Olam International Ltd.		3,732,000		7,340
Straits Asia Resources Ltd.		18,562,000		39,897
Wilmar International Ltd.		24,316,420		90,586
Yanlord Land Group Ltd.		9,953,000		22,820
				205,890

South Africa - 5.99%
Adcorp Holdings Ltd.		868,508		5,083
AngloGold Ashanti Ltd.		659,380		28,291
AngloGold Ashanti Ltd. (ADR)		353,285		15,124
Anglo Platinum Ltd.		392,541		57,929
Anglo Platinum Ltd., 6.38% convertible preferred May 31, 2009		79,068		4,052
ArcelorMittal South Africa Ltd.		568,588		11,356
Aveng Ltd.		7,925,405		70,587
Cashbuild Ltd.		798,830		6,286
Discovery Holdings Ltd.		253,711		1,012
FirstRand Ltd.		4,519,717		13,162
Gold Fields Ltd.		6,630,300		95,162
Gold Fields Ltd. (ADR)		2,169,200		30,803
Harmony Gold Mining Co. Ltd. (1)		5,063,108		52,213
Harmony Gold Mining Co. Ltd. (ADR) (1)		4,330,092		44,643
Impala Platinum Holdings Ltd.		2,015,287		69,569
Massmart Holdings Ltd.		738,602		7,757
MTN Group Ltd.		1,360,016		25,489
Murray & Roberts Holdings Ltd.		5,277,906		78,696
Mvelaphanda Resources Ltd. (1)		3,559,539		21,771
Naspers Ltd., Class N		1,054,658		24,841
Raubex Group Ltd.		1,710,452		11,895
Sappi Ltd.		2,789,306		39,849
Sappi Ltd. (ADR)		605,000		8,724
Sasol Ltd.		1,015,211		50,390
Sasol Ltd. (ADR)		100,900		4,992
South African Private Equity Fund III, LP (acquired 9/23/98, cost: $10,827,000) (2) (3) (4) (5)		27,594		35,843
Standard Bank Group Ltd.		7,903,608		115,704
Truworths International Ltd.		1,200,597		4,745
Wilson Bayly Holmes - Ovcon Ltd.		1,958,005		39,402
				975,370

South Korea - 9.21%
Cheil Communications Inc.		31,970		9,619
Daegu Bank, Ltd.		900,620		14,781
Gmarket Inc. (ADR) (1) (4)		2,503,089		62,327
GS Engineering & Construction Corp.		253,360		41,554
Hana Financial Holdings		383,110		20,744
Hankook Tire Co., Ltd.		3,293,860		62,373
Hite Brewery Co., Ltd.		221,320		33,600
Hynix Semiconductor Inc. (1)		1,840,140		50,405
Hyundai Development Co.		127,544		12,470
Hyundai Mobis Co., Ltd.		109,520		10,176
Hyundai Steel Co.		540,660		44,959
Kookmin Bank		877,895		64,543
Korean Reinsurance Co.		1,129,400		15,648
KT&G Corp.		385,010		32,753
Kumho Industrial Co., Ltd.		128,070		7,623
Kumho Industrial Co., Ltd., rights expire February 22, 2008		15,368		223
LG Household & Health Care Ltd.		40,691		8,474
LG.Philips LCD Co., Ltd. (1)		909,360		48,118
LG.Philips LCD Co., Ltd. (ADR) (1)		400,408		10,403
LG Telecom Ltd.		8,232,645		86,347
Lotte Shopping Co.		58,861		25,777
Lotte Shopping Co. (GDR)		2,900		64
Lotte Shopping Co. (GDR) (acquired 1/27/06, cost: $8,453,000) (2)		408,970		8,969
Macquarie Korea Infrastructure Fund		205,000		1,480
Macquarie Korea Infrastructure Fund (GDR)		4,843,310		33,903
Mirae Asset Securities Co., Ltd.		30,297		5,464
NHN Corp. (1)		216,302		51,293
POSCO		42,740		25,874
Samsung Electronics Co., Ltd.		253,286		148,911
Samsung Electronics Co., Ltd. (GDR)		758,028		219,991
Samsung Engineering Co., Ltd.		790,420		77,997
Samsung Securities Co., Ltd.		107,080		10,166
Samsung Techwin Co., Ltd.		550,160		24,356
Shinhan Financial Group Co., Ltd.		1,449,210		83,174
Shinsegae Co., Ltd.		39,506		30,447
SK Energy Co., Ltd.		461,270		88,747
SK Telecom Co., Ltd.		1,003		266
SK Telecom Co., Ltd. (ADR)		635,000		18,948
Sungshin Cement Co., Ltd. (1)		357,250		6,117
				1,499,084

Sri Lanka - 0.17%
Dialog Telekom Ltd.		149,615,180		27,553
				27,553

Taiwan - 9.72%
Asia Cement Corp.		8,081,481		11,736
AU Optronics Corp.		23,358,993		45,149
AU Optronics Corp. (ADR)		1,097,880		21,079
Cathay Financial Holding Co., Ltd.		21,680,196		44,865
China Steel Corp.		15,027,160		20,022
Chinatrust Financial Holding Co., Ltd. (1)		17,410,000		12,318
CTCI Corp. (4)		34,332,870		24,143
Delta Electronics, Inc.		24,779,922		84,226
EVA Airways Corp. (1)		32,569,648		13,491
Formosa Plastics Corp.		32,635,000		91,171
Fubon Financial Holding Co., Ltd.		18,027,000		15,906
High Tech Computer Corp.		5,878,469		107,579
Hon Hai Precision Industry Co., Ltd.		53,757,468		332,218
Hon Hai Precision Industry Co., Ltd. (GDR)		1,027,342		12,666
InnoLux Display Corp.		29,115		98
MediaTek Incorporation		4,059,761		52,266
Phison Electronics Corp.		1,980,321		13,186
President Chain Store Corp.		5,042,517		13,198
Siliconware Precision Industries Co., Ltd.		3,310,493		5,894
Synnex Technology International Corp.		13,356,355		33,049
Taiwan Cement Corp.		100,766,470		138,477
Taiwan Mobile Co., Ltd.		24,832,000		33,162
Taiwan Semiconductor Manufacturing Co., Ltd.		202,837,176		385,943
Taiwan Semiconductor Manufacturing Co., Ltd. (ADR)		1,052,700		10,485
TECO Electric & Machinery Co., Ltd.		86,872,000		43,150
Test-Rite International Co., Ltd.		16,066,643		9,509
Tong Yang Industry Co., Ltd.		4,618,770		3,856
Tripod Technology Corp.		494,760		1,776
Yageo Corp.		4,163,000		1,454
				1,582,072

Thailand - 1.67%
Advanced Info Service PCL		9,456,700		26,949
Banpu PCL		9,719,200		113,717
Banpu PCL, nonvoting depositary receipt		4,504,100		52,699
Bumrungrad Hospital PCL		34,760,100		41,608
Glow Energy PCL		8,734,800		8,617
Major Cineplex Group PCL		22,938,300		12,867
Rojana Industrial Park PCL		30,256,300		15,419
				271,876

Turkey - 1.67%
Akbank TAŞ		11,215,484		83,267
Aktas Elektrik Ticaret AŞ (1)		4,273
Anadolu Efes Biracilik ve Malt Sanayii AŞ		3,639,971		43,312
Coca-Cola İçecek AŞ, Class C		1,300,245		15,020
Dogan Yayin Holding AŞ (1)		1,735,356		7,017
Migros Türk TAŞ		1,061,595		20,725
Selçuk Ecza Deposu Ticaret ve Sanayi AŞ, Class B (1)		823,420		1,663
Turkcell İletişim Hizmetleri AŞ		3,384,316		37,228
Türkiye Garanti Bankasi AŞ		1,493,989		13,382
Türkiye Petrol Rafinerileri AŞ		360,387		10,548
Yapi ve Kredi Bankasi AŞ (1)		11,148,358		39,268
				271,430

United Arab Emirates - 0.11%
DP World Ltd. (1)		14,885,500		18,160
				18,160

United Kingdom - 1.12%
Ferrexpo PLC (1)		11,936,200		54,188
Gem Diamonds Ltd. (1)		2,443,811		46,405
Kazakhmys PLC		258,790		6,966
Lonmin PLC		588,215		36,169
Nikanor PLC (1)		2,377,704		29,398
Volga Gas PLC (1)		1,382,346		9,736
				182,862

United States of America - 0.80%
CTC Media, Inc. (1)		2,376,000		71,755
Genpact Ltd. (1)		1,700,300		25,896
Net 1 UEPS Technologies, Inc. (1)		237,300		6,967
Sohu.com Inc. (1)		297,400		16,214
Transmeridian Exploration, Inc. (1)		4,847,900		9,647
				130,479

Vietnam - 0.12%
Vietnam Enterprise Investments Ltd., Redeemable (acquired 9/20/01, cost: $3,914,000) (1) (2) (3)		1,415,941		7,505
Vietnam Resource Investments (Holdings) Ltd. (acquired 6/15/07, cost: $11,302,000) (1) (2) (3)		1,108,000		11,302
				18,807

Multinational - 0.62%
Capital International Global Emerging Markets Private Equity Fund, LP (acquired 6/30/99, cost: $6,704,000) (2) (3) (4) (5)		55,951		15,226
Capital International Private Equity Fund IV, LP (acquired 3/29/05, cost: $36,702,000) (2) (3) (4) (5)		45,507		68,305
International Hospital Corp. Holding NV (acquired 9/25/97, cost: $8,011,000) (1) (2) (4)		609,873		4,470
International Hospital Corp. Holding NV, convertible preferred (acquired 2/12/07, cost: $2,035,000) (1) (2) (4)		277,633		2,035
New Asia East Investment Fund Ltd., Class A (acquired 5/23/96, cost: $189,000) (1) (2) (3) (4)		279,240		710
New Asia East Investment Fund Ltd., Class B (acquired 5/23/96, cost: $2,584,000) (1) (2) (3) (4)		3,810,369		9,688
Pan Asia Special Opportunities Fund (Cayman) (acquired 10/18/00, cost: $342,000) (1) (2) (3) (4)		600,000		220
				100,654

Miscellaneous - 1.44%
Equity securities in initial period of acquisition				235,027


Total equity securities (cost: $9,206,200,000)				15,289,050



Bonds and notes	Units or principal		Value
	amount (000)			(000	)

Argentina - 0.23%
Republic of Argentina:
Index-Linked, Payment-in-Kind Bond, 8.18% December 31, 2033 (6)	ARS94,419			31,113
GDP-Linked Bond, 0% December 15, 2035 (7)		216,715		6,091
				37,204

Brazil - 0.11%
Banco BMG SA 8.75% July 1, 2010 (acquired 6/22/05, cost: $10,067,000) (2)	$	10,080		10,130
LIGHT - Serviços de Eletricidade SA 10.236% convertible debentures June 30, 2015 (6)	BRL3,280			4,981
Nota do Tesouro Nacional 10% January 1, 2017		5		2,322
				17,433

Colombia - 0.01%
Republic of Colombia 11.75% March 1, 2010	COP3,100,000			1,601
				1,601

Dominican Republic - 0.00%
Dominican Republic Payment-in-Kind Bond, 9.50% September 27, 2011 (acquired 5/12/05, cost: $661,000) (2)	$	624		665
				665

India - 0.01%
Rajesh Exports Ltd. 0% convertible debentures, February 21, 2012 (7)		1,400		2,332
				2,332

Russia - 0.00%
Russian Federation 7.50% March 31, 2030 (6)		275		313
				313

Turkey - 0.02%
Republic of Turkey:
14.00% January 19, 2011	TRY2,300			1,863
Index-Linked Bond, 10.402% February 15, 2012 (6)		2,060		1,913
				3,776

Venezuela - 0.01%
Republic of Venezuela:
8.50% October 8, 2014	$	195		189
7.65% April 21, 2025		1,225		1,050
				1,239


Total bonds and notes (cost: $54,169,000)				64,563



Short-term securities	Units or principal		Value
	amount (000)			(000	)

Corporate short-term notes - 3.65%
Barclays U.S. Funding Corp. 5.205% due 2/11/08		154,000		153,096
CAFCO LLC 5.375% due 1/14/08		41,000		40,914
Ciesco LLC 5.45% due 1/14/08		63,200		63,066
IBM Capital Inc. 4.24% due 1/14/08		5,000		4,992
International Lease Finance Corp. 4.88% due 1/14/08		73,200		73,061
Liberty Street Funding Co. 5.80%-6.25% due 1/14/08		165,000		164,605
Old Line Funding LLC 6.15% due 1/14/08		69,300		69,134
Thunder Bay Funding LLC 6.15% due 1/14/08		25,154		25,094
				593,962

Federal agency discount notes - 0.63%
Federal Home Loan Bank Discount Corp. 3.15% due 1/2/08		102,500		102,482
				102,482


Total short-term securities (cost: $696,411,000)				696,444


Total investment securities (cost: $9,956,780,000)				16,050,057
Excess of cash and receivables over payables				225,624

Net assets			$	16,275,681

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

(2) Purchased in a private placement transaction (not including purchases of securities that were publicly offered in the primary local market but were not registered under U.S. securites laws); resale to the public may require registration in the country where the primary market is located, and no right to demand registration exists. As of December 31, 2007, the total value and cost of such securities were $309,473,000 and $270,868,000, respectively, and the value represented 1.90% of net assets.

(3) Cost and market value do not include prior distributions to the fund from income or proceeds realized from securities held by the private equity fund. Therefore, the cost and market value may not be indicative of the private equity fund's performance.

(4) This issuer represents investment in an affiliate as defined in the Investment Company Act of 1940. This definition includes, but is not limited to, issuers in which the fund owns more than 5% of the outstanding voting securities. New Asia East Investment Fund Ltd., Capital International Global Emerging Markets Private Equity Fund, LP and Capital International Private Equity Fund IV, LP are also considered affiliates since these issuers have the same investment adviser as the fund (see note 7 in Notes to Financial Statements).

(5) Excludes an unfunded capital commitment representing an agreement which obligates the fund to meet capital calls in the future. Capital calls can only be made if and when certain requirements have been fulfilled; thus, the timing and the amount of such capital calls cannot readily be determined.

(6) Coupon rate may change periodically.

(7) Represents a zero coupon security that may convert to a coupon-bearing security at a later date.

Abbreviations

Securities:

ADR = American Depositary Receipts

BDR = Brazilian Depositary Receipts

CDI = CREST Depository Interest

GDR = Global Depositary Receipts

Non-U.S. currency:

ARS - Argentine Peso

BRL - Brazilian Real

COP - Colombian Peso

TRY - New Turkish Lira

Financial statements

unaudited

Statement of assets and liabilities	(dollars in thousands, except per-share data)
at December 31, 2007


Assets:
Investment securities at market:
Unaffiliated issuers (cost: $9,667,866)	$	15,697,238
Affiliated issuers (cost: $288,914)		352,819		$	16,050,057

Cash					25,835
Receivables for--
Sales of investments		179,395
Sales of fund's shares		4,105
Dividends and interest		38,734
Non-U.S. taxes		21,124			243,358


					16,319,250

Liabilities:
Payables for--
Purchases of investments					32,331
Investment advisory fee					7,948
Directors' compensation					1,414
Other fees and expenses					1,405
Non-U.S. taxes					471

					43,569

Net assets at December 31, 2007 --
Equivalent to $14.41 per share on
1,129,397,713 shares of $0.01 par value
capital stock outstanding (authorized
capital stock -- 2,000,000,000 shares)				$	16,275,681




Net assets consist of:
Capital paid in on shares of capital stock				$	9,484,503
Distributions in excess of net investment income					(285,293	)
Accumulated net realized gain					980,924
Net unrealized appreciation					6,095,547


Net assets at December 31, 2007				$	16,275,681

See Notes to Financial Statements



Statement of operations		(dollars in thousands)
for the six months ended December 31, 2007


Investment income:
Income:
Dividends (net of non-U.S. withholding tax of $18,547;	$	165,127
also includes $1,322 from affiliates)
Interest (includes $54 from affiliates)		20,074		$	185,201

Fees and expenses:
Investment advisory services		48,883
Custodian		4,006
Registration statement and prospectus		17
Auditing and legal		200
Reports to shareholders		11
Directors' compensation		472
Other		52

Total expenses before expense reduction		53,641
Custodian expense reduction		348			53,293

Net investment income					131,908


Realized gain and unrealized
appreciation on investments:
Net realized gain before non-U.S. taxes (includes		2,408,550
$10,452 net gain from affiliates)
Non-U.S. taxes		(347	)

Net realized gain on investments					2,408,203

Net change in unrealized appreciation on investment
securities and other assets and liabilities		(289,904	)
Net change in unrealized appreciation
on open forward currency contracts		(219	)

Net change in unrealized appreciation		(290,123	)
Non-U.S. taxes		12

Net change in unrealized appreciation on
investments					(290,111	)

Net realized gain and net change in unrealized
appreciation on investments					2,118,092

Net increase in net assets resulting
from operations				$	2,250,000



Statement of changes in net assets		(dollars in thousands)
	(unaudited)
	Six months ended			Year ended
	December 31, 2007			June 30, 2007

Operations:
Net investment income	$	131,908		$	180,825
Net realized gain on investments		2,408,203			3,172,778
Net change in unrealized appreciation
on investments		(290,111	)		2,130,184

Net increase in net assets
resulting from operations		2,250,000			5,483,787

Dividends and distributions paid
to shareholders:
Dividends from net
investment income and non-U.S. currency gain		(489,910	)		(283,975	)
Distributions from net
realized gain on investments		(3,778,118	)		(3,155,591	)

Total distributions		(4,268,028	)		(3,439,566	)

Capital share transactions:
Proceeds from shares sold:
4,161,170 and 33,815,767* shares, respectively		72,421			520,168
Proceeds from shares issued in
reinvestment of net investment income dividends
and net realized gain distributions:
297,687,658 and 244,994,225* shares, respectively		4,203,350			3,389,740
Cost of shares repurchased:
76,135,682 and 105,011,870* shares, respectively		(1,365,290	)		(1,671,119	)


Net increase in net assets
resulting from capital share
transactions		2,910,481			2,238,789

Total increase in net assets		892,453			4,283,010

Net assets:
Beginning of period		15,383,228			11,100,218

End of period
(including distributions in excess of net investment
income and undistributed net investment income:
($285,293) and $72,709, respectively)	$	16,275,681		$	15,383,228

See Notes to Financial Statements
*The data reflects a 5-for-1 stock split effective at the close of business on
January 12, 2007.

Notes to financial statements

1. Organization and significant accounting policies

Organization - Emerging Markets Growth Fund, Inc. (the fund) is registered under the Investment Company Act of 1940 as an open-end, interval investment company (open-end interval fund). As an open-end interval fund, the fund offers its shareholders the opportunity to purchase and redeem shares on a periodic basis. The fund’s investment objective is to seek long-term capital growth by investing primarily in equity securities of issuers in developing countries.

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. Bonds and notes 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 at prices for securities of comparable maturity, quality, and type. Short-term securities with original maturities of one year or less maturing within 60 days are valued at amortized cost, which approximates market value. Forward currency contracts are valued at the mean of their representative quoted bid and asked prices.

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 approved by the fund’s board of directors. 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; and changes in overall market conditions. If significant events occur which affect the value of the portfolio securities, appropriate adjustments to closing market prices may be made to reflect these events. Events of this type may include, but are not limited to, significant movements in the U.S. market or unanticipated market closures. At December 31, 2007, 307 securities were fair valued with an aggregate value of $12,081,910,000. Of these 307 securities, 281 securities were fair valued with an aggregate value of $11,823,020,000 due to significant movements in the U.S. market after the close of trading in the markets of these securities.

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 securities 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 bonds, notes, and short-term securities are amortized daily over the expected life of the security.

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 and other assets and liabilities are included with the net realized gain or loss and net change in unrealized appreciation or depreciation on investments.

Unfunded capital commitments - Unfunded capital commitments represent agreements which obligate the fund to meet capital calls in the future. Payment would be made when a capital call is requested. Capital calls can only be made if and when certain requirements have been fulfilled; thus, the timing of such capital calls cannot readily be determined. As of December 31, 2007, unfunded capital commitments totaled $94,009,000.

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 its 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 The face or contract amount in U.S. dollars reflects the total exposure the fund has in that particular contract. 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. As of December 31, 2007, the fund did not have any open forward currency contracts.

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; price fluctuations and revaluations of currencies; adverse political, social and economic developments; government involvement in the private sector; limited and less reliable investor information; lack of liquidity; valuation challenges; 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 taxes in those countries. The fund records an estimated liability based on unrealized gains to provide for potential taxes payable upon the sale of these securities. As of December 31, 2007, accrued non-U.S. taxes on unrealized gains were $471,000.

As of December 31, 2007, the receivable for non-U.S. taxes includes $19,359,000 related to India capital gains taxes that are currently in dispute. The fund has received favorable rulings on $18,398,000 of the amount under dispute, which may be subject to further appeal. Based on the advice of outside counsel, management believes it is more likely than not that the remaining $961,000 in dispute will be resolved in the fund’s favor. Potential tax, interest and penalty amounts relating to these issues, if any, may be assessed in the future. If the disputes are ultimately resolved unfavorably, it will not have a material adverse effect on the fund’s financial position or results of operations.

Currency gains and losses - Net realized currency losses on dividends, interest, reclaimable withholding taxes, forward contracts, and other receivables and payables, on a book basis, were $6,344,000 for the six months ended December 31, 2007.

3. Federal income taxation and distributions

The fund complies with the requirements under Subchapter M of the Internal Revenue Code applicable to regulated investment companies 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.

The fund adopted the provisions of Financial Accounting Standards Board Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes, on July 1, 2007. The implementation of FIN 48 resulted in no material liability for unrecognized tax benefits and no material change to the beginning net asset value of the fund.

As of and during the period ended December 31, 2007, 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 authorities for tax years before 2002 and by tax authorities outside the U.S. for tax years before 1999.

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; cost of investments sold; income on certain investments; and unrealized appreciation or depreciation 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. For the six months ended December 31, 2007, the tax characters of distributions paid to shareholders were ordinary income, short-term realized gain and long-term realized gain in the amounts of $489,910,000, $539,731,000 and $3,238,387,000, respectively. For the year ended June 30, 2007, the tax characters of the distributions paid to shareholders were ordinary income and long-term realized gain in the amounts of $283,975,000 and $3,155,591,000, respectively.

As of December 31, 2007, the tax basis of unrealized appreciation (depreciation) and cost of investments were as follows:


Gross unrealized appreciation on investment securities	$	6,114,527,000
Gross unrealized depreciation on investment securities		(301,600,000	)
Net unrealized appreciation on investment securities		5,812,927,000
Cost of investment securities		10,237,130,000

During the six months ended December 31, 2007, the fund realized, on a tax basis, a net capital gain of $1,944,108,000.

4. Fees and transactions with related parties

Investment advisory services fee– The Investment Advisory and Service Agreement with Capital International, Inc. (CII) provides for monthly management service fees, accrued weekly. CII is wholly owned by Capital Group International, Inc., which is wholly owned by The Capital Group Companies, Inc. These fees are based on an annual rate of 0.90% on the first $400 million of the fund’s net assets; 0.80% of assets in excess of $400 million but not exceeding $1 billion; 0.70% of assets in excess of $1 billion but not exceeding $2 billion; 0.65% of assets in excess of $2 billion but not exceeding $4 billion; 0.625% of assets in excess of $4 billion but not exceeding $6 billion; 0.60% of assets in excess of $6 billion but not exceeding $8 billion; 0.58% of assets in excess of $8 billion but not exceeding $11 billion; 0.56% of assets in excess of $11 billion but not exceeding $15 billion; 0.54% of assets in excess of $15 billion but not exceeding $20 billion; and 0.52% of assets in excess of $20 billion.

Transfer agent fee– The fund has an agreement with American Funds Service CompanySM (AFS), the transfer agent for the fund. AFS is a wholly owned indirect subsidiary of The Capital Group Companies, Inc. Under this agreement, the fund compensates AFS for transfer agency services including shareholder recordkeeping, communications, and transaction processing. Transfer agent fees were $1,000 for the six months ended December 31, 2007. This amount was included in other fees and expenses.

Directors’ compensation – Since the adoption of the deferred compensation plan in 1998, directors who are unaffiliated with CII 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 the American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation on the accompanying financial statements includes $305,000 in current fees (either paid in cash or deferred) and a net increase of $167,000 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 CII. No affiliated officers and directors received any compensation directly from the fund.

5.	Restricted securities

The fund has invested in certain securities for which resale may be limited (for example, in the U.S., to qualified institutional buyers) or which are otherwise restricted. These securities are identified in the investment portfolio. As of December 31, 2007, the total value of restricted securities was $309,473,000, which represents 1.90% of the net assets of the fund.

6.	Investment transactions and other disclosures

The fund made purchases and sales of investment securities, excluding short-term securities, of $4,128,464,000 and $5,710,388,000, respectively, during the six months ended December 31, 2007.

The fund receives an expense reduction in its custodian fee equal to the amount of interest calculated on certain cash balances held at the custodian bank. For the six months ended December 31, 2007, the custodian fee of $4,006,000 was reduced by $348,000, rather than paid in cash.

7.	Transactions with affiliates

If the fund owns more than 5% of the outstanding voting securities of an issuer, the fund’s investment in that issuer represents an investment in an affiliate as defined in the Investment Company Act of 1940. In addition, New Asia East Investment Fund Ltd., Capital International Global Emerging Markets Private Equity Fund, LP and Capital International Private Equity Fund IV, LP are considered affiliates since these issuers have the same investment adviser as the fund. A summary of the fund’s transactions in the securities of affiliated issuers during the six months ended December 31, 2007, is as follows:

									Dividend
									and interest
	Beginning		Purchases/		Sales/		Ending		income			Value
Issuer	shares		Additions		Reductions		shares			(000	)		(000	)

Affiliated issuers:
CIC Energy		2,608,700		471,600		-		3,080,300	$	-		$	44,221
CTCI		33,626,710		706,160		-		34,332,870		1,077			24,143
Gmarket		-		2,503,089		-		2,503,089		-			62,327
McLeod Russel India		5,566,169		-		-		5,566,169		138			12,224
Tele Norte Celular Participações		31,913,830,561		-		31,913,192,285		638,276		-			14,301
Transmile Group		15,205,500		-		-		15,205,500		-			12,315

Affiliated private equity funds/private placements:
Baring Vostok Private Equity Fund		10,539,847		527,409		-		11,067,256		-			17,902
Baring Vostok Private Equity Fund III		16,901,200		1,090,264		-		17,991,464		-			28,705
Baring Vostok Private Equity Fund IV		150,137		325,000		-		475,137		-			184
Capital International Global Emerging
Markets Private Equity Fund		55,905		46		-		55,951		10			15,226
Capital International Private Equity Fund IV		44,370		1,137		-		45,507		44			68,305
International Hospital		887,506		-		-		887,506		-			6,505
New Asia East Investment Fund		4,089,609		-		-		4,089,609		-			10,398
New GP Capital Partners		27,000		-		-		27,000		12			-
Pan Asia Special Opportunities Fund		600,000		-		-		600,000		53			220
South African Private Equity Fund III		27,594		-		-		27,594		42			35,843

Unaffiliated issuers*:
Transmeridian Exploration		5,808,500		337,400		1,298,000		4,847,900		-			-
Vietnam Resource Investments		1,108,000		-		-		1,108,000		-			-
									$	1,376		$	352,819

*Affiliated during the period but no longer affiliated at December 31, 2007.

Financial highlights

	Six months ended			Year ended June 301,3
	December 31,
	20071,2			2007			2006			2005			2004			2003
Net asset value, beginning of
period	$	17.02		$	15.21		$	15.70		$	11.87		$	9.48		$	8.96

Income from investment
operations:
Net investment income		.15			.22			.26			.27			.19			.18
Net realized and unrealized
gain on investments		2.38			6.56			5.05			3.77			2.45			.44

Total income from
investment operations		2.53			6.78			5.31			4.04			2.64			.62


Less distributions:
Dividends from
net investment income		(.59	)		(.41	)		(.50	)		(.21	)		(.25	)		(.10	)
Distributions from
net realized gains		(4.55	)		(4.56	)		(5.30	)		-			-			-

Total distributions		(5.14	)		(4.97	)		(5.80	)		(.21	)		(.25	)		(.10	)

Net asset value, end of period	$	14.41		$	17.02		$	15.21		$	15.70		$	11.87		$	9.48

Total return		15.48	%4		52.08	%		37.88	%		34.34	%		27.89	%		7.14	%

Ratios/supplemental data:
Net assets, end of period
(in millions)	$	16,276		$	15,383		$	11,100		$	13,632		$	15,758		$	16,154
Ratio of expenses to average
net assets		.66	%5		.70	%		.72	%		.71	%		.70	%		.70	%
Ratio of net income to average
net assets		1.62	%5		1.39	%		1.57	%		1.96	%		1.64	%		2.14	%
'Portfolio turnover rate		26.53	%4		52.19	%		38.48	%		29.00	%		35.36	%		33.70	%


1 Starting with the year ended June 30, 2004, the per-share data is based on average shares outstanding.
2 Unaudited.
3 The per share data has been adjusted to reflect a 5-for-1 stock split effective at the close of business on January 12, 2007.
4 Based on operations for the period shown and, accordingly, not representative of a full year's operations.
5 Annualized.

Expense example

unaudited

As a shareholder of the fund, you incur ongoing costs, including investment advisory services 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 funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 through December 31, 2007).

Actual expenses:

The first line of the table below 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 the table below provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. 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% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

	Beginning account value 7/1/2007		Ending account value 12/31/2007		Expenses paid during period*		Annualized expense ratio

Actual return	$	1,000.00	$	1,154.85	$	3.57		.66	%
Hypothetical 5% return before expenses		1,000.00		1,021.82		3.35		.66

* Expenses are equal to the fund’s annualized expense ratio of .66%, multiplied by the average account value over the period, multiplied by the number of days in the period (184), and divided by 366 (to reflect the one-half year period).

Offices of the fund and of the

investment adviser

Capital International, Inc.

11100 Santa Monica Boulevard, 15th Floor

Los Angeles, CA 90025-3302

6455 Irvine Center Drive

Irvine, CA 92618

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

Counsel

Dechert LLP

1775 I Street, N.W.

Washington, D.C. 20006-2401

Independent registered public accounting firm

PricewaterhouseCoopers LLP

350 South Grand Avenue

Los Angeles, CA 90071-2889

The fund’s SAI, Proxy Voting Policy and Procedures and proxy voting record for the 12 months ended June 30 is available free of charge on the U.S. Securities and Exchange Commission (SEC) website at sec.gov or upon request by calling 800/421-0180, ext. 96245.

The 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 or upon request by calling 800/421-0180, ext. 96245. You may also review or, for a fee, copy this filing at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 800/SEC-0330.

This report is for the information of shareholders of Emerging Markets Growth 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.

The Capital Group Companies

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

Lit. No. MFGESR-915-0208P(NLS)

Litho in USA TAG/WS/9099-S10567

Investment results
Emerging Markets Growth Fund (Lifetime: 5/31/86 - 2/29/08)


	EMGF		Index2			EMGF		Index2
	Dividends	Dividends	Dividends	Dividends		Dividends	Dividends	Dividends	Dividends
	in cash %	reinvested %1	in cash %3	reinvested %4		in cash %	reinvested %1	in cash %3	reinvested %4
2007					2006
1st qtr.	4.41	4.41	1.79	2.25	1st qtr.	12.89	12.89	11.51	12.02
2nd qtr.	14.92	14.92	14.06	14.96	2nd qtr.	-4.58	-4.58	-5.11	-4.34
3rd qtr.	11.87	11.87	13.70	14.42	3rd qtr.	7.11	7.11	4.10	4.88
4th qtr.	0.07	3.23	3.38	3.66	4th qtr.	15.74	18.32	17.28	17.60
Year 2007	34.33	38.57	36.48	39.42	Year 2006	33.55	36.53	29.18	32.17
2008					2005
January	-8.19	-8.19	-12.59	-12.74	1st qtr.	2.07	2.07	1.20	1.80
February	4.84	4.84	7.25	7.39	2nd qtr.	5.91	5.91	3.00	4.12
					3rd qtr.	16.33	16.33	17.01	17.95
Lifetime return					4th qtr.	7.20	10.03	6.83	7.18
Cumulative %	2,992.32	4,659.33	__	__	Year 2005	34.79	38.35	30.31	34.00
Annualized %	17.09	19.43	__	__	2004
					1st qtr.	9.13	9.13	8.87	9.59
					2nd qtr.	-10.98	-10.98	-10.34	-9.64
					3rd qtr.	7.65	7.65	7.39	8.14
					4th qtr.	13.66	15.45	16.81	17.24
					Year 2004	18.87	20.74	22.45	25.55







1Total return percentages are calculated from net asset value assuming all dividends are reinvested.
2The inception date is 1/1/88.
3MSCI Emerging Markets Index
4Reflects MSCI Emerging Markets Index with gross dividends reinvested from inception through 12/31/00, MSCI Emerging Markets Index with net dividends reinvested through 11/30/07, and MSCI Emerging Markets Investable Markets Index with net dividends reinvested thereafter.

Investment results
Emerging Markets Growth Fund (Lifetime: 5/31/86 - 2/29/08)


	EMGF		Index2			EMGF		Index2
	Dividends	Dividends	Dividends	Dividends		Dividends	Dividends	Dividends	Dividends
	in cash %	reinvested %1	in cash %3	reinvested %4		in cash %	reinvested %1	in cash %3	reinvested %4
2003					2000
1st qtr.	-6.12	-6.12	-6.79	-6.00	1st qtr.	7.78	7.78	2.04	2.42
2nd qtr.	22.60	22.60	22.19	23.29	2nd qtr.	-10.29	-10.29	-10.79	-10.16
3rd qtr.	14.62	14.62	13.51	14.15	3rd qtr.	-14.86	-14.86	-13.35	-13.00
4th qtr.	12.42	14.85	17.25	17.78	4th qtr.	-16.76	-16.16	-13.53	-13.32
Year 2003	48.31	51.51	51.59	55.82	Year 2000	-31.48	-30.98	-31.80	-30.61
2002					1999
1st qtr.	10.63	10.63	10.72	11.34	1st qtr.	13.37	13.37	11.96	12.44
2nd qtr.	-12.53	-12.53	-9.01	-8.44	2nd qtr.	20.80	20.80	23.62	24.40
3rd qtr.	-16.67	-16.67	-16.78	-16.35	3rd qtr.	-3.01	-3.01	-5.50	-5.15
4th qtr.	10.34	11.71	9.76	10.04	4th qtr.	31.90	33.96	25.15	25.44
Year 2002	-11.04	-9.93	-7.97	-6.17	Year 1999	75.19	77.93	63.70	66.41
2001					1998
1st qtr.	-7.44	-7.44	-6.19	-5.50	1st qtr.	5.26	5.26	5.71	6.19
2nd qtr.	6.99	6.99	3.11	3.93	2nd qtr.	-20.34	-18.95	-24.20	-23.60
3rd qtr.	-24.91	-24.91	-22.14	-21.66	3rd qtr.	-21.89	-21.89	-22.89	-22.01
4th qtr.	27.90	29.86	26.26	26.58	4th qtr.	12.73	12.73	17.30	17.99
Year 2001	-4.89	-3.43	-4.91	-2.61	Year 1998	-26.17	-24.88	-27.52	-25.34

1997					1994
1st qtr.	10.76	10.76	8.04	8.47	1st qtr.	-2.04	-2.04	-9.30	-9.04
2nd qtr.	15.37	16.60	7.68	8.56	2nd qtr.	-5.24	-4.83	-2.05	-1.44
3rd qtr.	-1.10	-1.10	-9.40	-8.97	3rd qtr.	24.02	24.02	20.47	20.76
4th qtr.	-16.49	-14.15	-17.84	-17.52	4th qtr.	-15.05	-14.82	-14.67	-14.39
Year 1997	5.53	9.66	-13.40	-11.59	Year 1994	-2.21	-1.52	-8.67	-7.32
1996					1993
1st qtr.	7.88	7.88	5.77	6.23	1st qtr.	9.64	9.64	5.20	5.55
2nd qtr.	6.14	7.86	3.35	4.18	2nd qtr.	8.26	9.31	7.10	8.27
3rd qtr.	-2.26	-2.26	-4.08	-3.62	3rd qtr.	12.61	12.61	14.84	15.38
4th qtr.	0.43	2.32	-0.89	-0.59	4th qtr.	27.44	27.95	32.36	32.60
Year 1996	12.40	16.37	3.92	6.03	Year 1993	70.35	72.69	71.26	74.84
1995					1992
1st qtr.	-16.54	-16.54	-12.74	-12.38	1st qtr.	20.17	20.17	20.01	20.48
2nd qtr.	11.07	12.04	9.67	10.37	2nd qtr.	-8.65	-7.85	-11.85	-10.87
3rd qtr.	2.20	2.20	-1.06	-0.64	3rd qtr.	-0.54	-0.54	-3.75	-3.30
4th qtr.	-3.59	-2.88	-1.72	-1.35	4th qtr.	1.63	1.98	7.09	7.28
Year 1995	-8.66	-7.19	-6.94	-5.21	Year 1992	10.95	12.32	9.05	11.40

1991					1988
1st qtr.	23.75	23.75	28.66	29.17	1st qtr.	19.34	19.34	20.64	22.05
2nd qtr.	11.36	12.71	3.79	5.09	2nd qtr.	14.87	15.69	10.83	12.18
3rd qtr.	1.96	1.96	2.66	3.28	3rd qtr.	5.07	5.07	0.02	0.99
4th qtr.	14.22	14.90	13.77	14.05	4th qtr.	-3.41	-2.12	0.85	1.56
Year 1991	60.48	63.39	55.97	59.91	Year 1988	39.13	41.98	34.87	40.43
1990					1987
1st qtr.	-5.68	-5.68	-7.85	-7.18	1st qtr.	11.32	11.32	—	—
2nd qtr.	12.17	13.89	18.85	20.03	2nd qtr.	23.33	25.30	—	—
3rd qtr.	-16.73	-16.73	-17.88	-17.19	3rd qtr.	8.70	8.70	—	—
4th qtr.	-0.23	1.67	-4.10	-3.05	4th qtr.	-18.98	-18.14	—	—
Year 1990	-12.11	-9.05	-13.76	-10.55	Year 1987	20.91	24.13	—	—
1989					1986
1st qtr.	16.44	16.44	15.66	16.88	1 mo. To 6/30	0.60	0.60	—	—
2nd qtr.	21.71	23.16	4.68	5.95	3rd qtr.	3.68	4.15	—	—
3rd qtr.	21.72	21.72	21.86	22.80	4th qtr.	6.71	6.71	—	—
4th qtr.	10.14	11.29	7.90	8.48	Year 1986
Year 1989	89.99	94.26	59.19	64.96	(5/30-12/31)	11.30	11.80	—	—


1Total return percentages are calculated from net asset value assuming all dividends are reinvested.
2The inception date is 1/1/88.
3MSCI Emerging Markets Index.
4Reflects MSCI Emerging Markets Index with gross dividends reinvested from inception through 12/31/00, MSCI Emerging Markets Index with net dividends reinvested through 11/30/07, and MSCI Emerging Markets Investable Markets Index with net dividends reinvested thereafter.

Investment results
Emerging Markets Growth Fund (Lifetime: 5/31/86 - 2/29/08)


	EMGF		Index2			EMGF		Index2
	Dividends	Dividends	Dividends	Dividends		Dividends	Dividends	Dividends	Dividends
	in cash %	reinvested %1	in cash %3	reinvested %4		in cash %	reinvested %1	in cash %3	reinvested %4
2007					2006
1st qtr.	4.41	4.41	1.79	2.25	1st qtr.	12.89	12.89	11.51	12.02
2nd qtr.	14.92	14.92	14.06	14.96	2nd qtr.	-4.58	-4.58	-5.11	-4.34
3rd qtr.	11.87	11.87	13.70	14.42	3rd qtr.	7.11	7.11	4.10	4.88
4th qtr.	0.07	3.23	3.38	3.66	4th qtr.	15.74	18.32	17.28	17.60
Year 2007	34.33	38.57	36.48	39.42	Year 2006	33.55	36.53	29.18	32.17
2008					2005
January	-8.19	-8.19	-12.59	-12.74	1st qtr.	2.07	2.07	1.20	1.80
February	4.84	4.84	7.25	7.39	2nd qtr.	5.91	5.91	3.00	4.12
					3rd qtr.	16.33	16.33	17.01	17.95
Lifetime return					4th qtr.	7.20	10.03	6.83	7.18
Cumulative %	2,992.32	4,659.33	__	__	Year 2005	34.79	38.35	30.31	34.00
Annualized %	17.09	19.43	__	__	2004
					1st qtr.	9.13	9.13	8.87	9.59
					2nd qtr.	-10.98	-10.98	-10.34	-9.64
					3rd qtr.	7.65	7.65	7.39	8.14
					4th qtr.	13.66	15.45	16.81	17.24
					Year 2004	18.87	20.74	22.45	25.55




Figures shown above are past results and do not predict future results. Current results may be lower or higher than those shown. Share prices and returns will vary, so you may lose money. Investing for short periods makes loses more likely. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity. For more current information and month-end results, call 800-421-0180, extension 96245.


1Total return percentages are calculated from net asset value assuming all dividends are reinvested.
2The inception date is 1/1/88.
3MSCI Emerging Markets Index
4Reflects MSCI Emerging Markets Index with gross dividends reinvested from inception through 12/31/00, MSCI Emerging Markets Index with net dividends reinvested through 11/30/07, and MSCI Emerging Markets Investable Markets Index with net dividends reinvested thereafter.

Twenty largest holdings
Emerging Markets Growth Fund, Inc.

Ranking			% Total
12/31/07	2/29/08	Security	portfolio	% Index1	Description
1	1	América Móvil	3.4	1.6	Latin America's largest cellular communications provider.
3	2	Taiwan Semiconductor Manufacturing	2.7	1.2	One of the world's largest semiconductor manufacturers.
4	3	Samsung Electronics	2.5	2.2	South Korea's top electronics manufacturer and a global leader in semiconductor production.
2	4	Gazprom	2.3	3.6	The largest gas producer and transporter in the Russian Federation.
6	5	OCI	2.2	0.3	A leading cement producer and construction contractor serving customers in the developing world.
5	6	Hon Hai Precision Industry	2.0	0.9	Top-tier provider of electronic manufacturing services to computer, networking, wireless and consumer equipment makers.
7	7	Telekomunikasi Indonesia	1.9	0.3	The dominant telecommunications services provider in Indonesia.
11	8	Evraz	1.4	0.0	Steel and mining company operating primarily in Russia.
14	9	AmBev	1.3	0.4	The dominant beer producer in Latin America.
15	10	Banpu	1.2	0.1	Thailand-based energy company focused on coal mining and coal-fired power generation.

		Total companies 1 through 10	20.9	10.6

19	11	Taiwan Cement	1.2	0.1	Manufacturer and retailer of cement, concrete and other construction materials.
13	12	Rosneft	1.2	0.2	Russian energy company focused on oil and gas exploration.
45	13	Eurasian Natural Resources	1.2	0.0	Natural resources company based in Kazahkstan.
8	14	GOME Electrical Appliances Holding	1.0	0.1	Electrical appliance and consumer electronic products retailer operating in China.
30	15	Harmony Gold Mining	1.0	0.1	One of South Africa's largest gold mining companies.
16	16	Bumiputra-Commerce Holdings	1.0	0.2	Involved in banking, financial services and real estate management.
27	17	TIM Participacoes	1.0	0.1	Provides cellular phone service in Brazil's southern states.
9	18	DLF Ltd.	0.9	0.1	Major real estate development company based in India.
31	19	Cemig	0.9	0.2	Generates and distributes electricity in the Brazilian state of Minas Gerais.
10	20	Orascom Telecom	0.8	0.2	Provides telecommunications services, including wireless operations, in the Middle East, Africa and Pakistan.

		Total companies 1 through 20	31.1	11.9


1MSCI EMERGING MARKETS IMI

Diversification by sector
Emerging Markets Growth Fund, Inc.


	% Total portfolio	% Total portfolio	% Index1		% Total portfolio	% Total portfolio	% Index1
	12/31/07	2/29/08	2/29/08		12/31/07	2/29/08	2/29/08
ENERGY	11.1	10.3	15.9	HEALTH CARE	1.3	1.2	2.0
Gazprom		2.3		Teva Pharmaceutical Industries		0.5
Banpu		1.2		OTHERS		0.7
Rosneft		1.2
China Shenhua Energy		0.8		FINANCIALS	11.4	10.1	21.0
OTHERS		4.8		Bumiputra-Commerce Holdings		1.0
				DLF Ltd.		0.9
MATERIALS	16.0	17.5	15.7	Industrial and Commercial Bank of China		0.7
Evraz		1.4		Housing Development Finance Corp.		0.6
Taiwan Cement		1.2		OTHERS		6.9
Eurasian Natural Resources		1.2
Harmony Gold Mining		1.0
CEMEX		0.7		INFORMATION TECHNOLOGY	11.4	11.8	10.5
Ambuja Cements		0.7		Taiwan Semiconductor Manufacturing		2.7
OTHERS		11.3		Samsung Electronics		2.5
				Hon Hai Precision Industry		2.0
INDUSTRIALS	11.3	11.7	10.0	High Tech Computer		0.8
OCI		2.2		OTHERS		3.8
Empresas ICA		0.7
Suzlon Energy		0.7
IJM Corp.		0.6		TELECOMMUNICATION SERVICES	12.5	12.4	10.3
CCR		0.5		America Movil		3.4
Embraer		0.5		Telekomunikasi Indonesia		1.9
OTHERS		6.5		TIM Participacoes		1.0
				Orascom Telecom		0.8
CONSUMER DISCRETIONARY	9.1	8.6	6.1	OTHERS		5.3
GOME Electrical Appliances Holding		1.0
Astra International		0.7
Shangri-La Asia		0.6		UTILITIES	1.9	2.4	3.6
OTHERS		6.3		Cemig		0.9
				OTHERS		1.5
CONSUMER STAPLES	6.7	6.5	4.9
AmBev		1.3		OTHER	1.2	1.2	0.0
IOI		0.8		Capital International Private Equity Fund IV		0.4
OTHERS		4.4		OTHERS		0.8
				Total equity	93.9	93.7	100.0
				Fixed income	0.4	0.6
				Cash & equivalents	5.7	5.7
				Total assets	100.0	100.0







1MSCI EMERGING MARKETS IMI				Overweight	MATERIALS
					INDUSTRIALS
					CONSUMER DISCRETIONARY
					CONSUMER STAPLES
					INFORMATION TECHNOLOGY
					TELECOMMUNICATION SERVICES
					OTHER
				Underweight	ENERGY
					HEALTH CARE
					FINANCIALS
					UTILITIES

Diversification by country
Emerging Markets Growth Fund as of February 29, 2008


	% Total portfolio	% IFCG Index1	% IFCI Index2	% MSCI EM Index3		% Total portfolio	% IFCG Index1	% IFCI Index2	% MSCI EM Index3
LATIN AMERICA	16.5	16.3	21.6	21.5	EUROPE/MIDDLE EAST/AFRICA	23.9	27.5	24.4	23.8
BRAZIL	7.9	10.5	14.0	14.1	RUSSIAN FEDERATION	10.0	7.8	10.7	8.9
MEXICO	6.9	3.3	4.7	4.4	SOUTH AFRICA	5.5	4.1	5.7	6.8
CHILE	0.9	1.3	1.7	1.4	ISRAEL	1.9	1.6	2.2	2.3
PERU	0.1	0.5	0.7	0.7	POLAND	0.6	1.2	1.6	1.7
ARGENTINA	0.4	0.4	0.5	0.6	TURKEY	1.1	1.1	1.4	1.4
REPUBLIC OF COLOMBIA	0.3	0.3	0.0	0.3	EGYPT	3.7	0.7	1.0	0.9
SOUTHEAST ASIA	17.5	13.8	14.1	15.1	CZECH REPUBLIC	0.1	0.4	0.5	0.7
INDIA	6.2	8.4	8.2	8.1	HUNGARY	0.0	0.4	0.6	0.7
MALAYSIA	4.7	2.0	2.5	2.7	MOROCCO	0.1	0.5	0.7	0.3
INDONESIA	3.3	1.1	1.5	2.0	JORDAN	0.0	0.3	0.0	0.1
THAILAND	1.8	1.4	1.4	1.6	CROATIA	0.1	0.0	0.0	0.0
PHILIPPINES	1.2	0.6	0.5	0.5	KAZAKHSTAN	0.4	0.0	0.0	0.0
PAKISTAN	0.1	0.3	0.0	0.2	SULTANATE OF OMAN	0.3	0.0	0.0	0.0
SRI LANKA	0.2	0.0	0.0	0.0	UNITED ARAB EMIRATES	0.1	1.7	0.0	0.0
FAR EAST ASIA	29.7	42.4	39.9	39.6	QATAR	0.0	1.0	0.0	0.0
CHINA	9.2	22.8	14.6	14.2	NIGERIA	0.0	0.9	0.0	0.0
SOUTH KOREA	8.6	10.5	14.0	13.9	SAUDI ARABIA	0.0	3.4	0.0	0.0
TAIWAN	10.8	9.1	11.3	11.5	KUWAIT	0.0	2.2	0.0	0.0
HONG KONG	1.1	0.0	0.0	0.0	OMAN	0.0	0.2	0.0	0.0


					OTHERS4	6.1	0.0	0.0	0.0

					Total equity	93.7	100.0	100.0	100.0
					Total fixed income	0.6
					Total cash & equivalents	5.7
					Total assets	100.0

1S&P/International Finance Corporation Global Composite Index
2S&P/International Finance Corporation Investable Composite Index
3MSCI Emerging Markets IMI
4The current period includes 5.7% in companies with substantial business assets in emerging markets but that are domiciled in developed markets, and 0.4% in CII's Private Equity funds.

Diversification by country
Emerging Markets Growth Fund

	% Portfolio											% Index1
	12/31/98	12/31/99	12/31/00	12/31/01	12/31/02	12/31/03	12/31/04	12/31/05	12/31/06	12/31/07	2/29/08	2/29/08
LATIN AMERICA	34.3	27.9	31.4	30.2	29.4	22.5	23.0	19.5	18.2	14.0	16.5	21.5
BRAZIL	11.7	9.2	13.9	10.9	10.6	10.8	12.3	10.3	9.4	7.2	7.9	14.1
MEXICO	10.6	12.5	15.0	17.2	16.3	9.2	8.6	7.3	7.9	5.9	6.9	4.4
CHILE	3.8	1.8	1.2	1.1	1.6	1.4	1.2	0.5	0.5	0.4	0.9	1.4
ARGENTINA	6.7	2.9	0.7	0.2	0.2	0.4	0.3	0.3	0.1	0.2	0.4	0.6
PERU	1.3	1.1	0.3	0.6	0.5	0.4	0.1	0.1	0.0	0.0	0.1	0.7
REPUBLIC OF COLOMBIA	0.0	0.0	0.1	0.1	0.1	0.1	0.2	0.8	0.3	0.3	0.3	0.3
VENEZUELA	0.2	0.4	0.2	0.1	0.1	0.2	0.3	0.2	0.0	0.0	0.0	0.0

SOUTHEAST ASIA	11.6	14.8	14.3	15.7	20.8	22.0	19.6	16.4	16.6	18.0	17.5	15.1
INDIA	5.3	8.2	8.8	9.7	12.3	13.8	10.4	7.9	6.5	7.2	6.2	8.1
MALAYSIA	0.9	1.8	2.0	1.9	3.1	3.2	5.6	3.2	3.9	4.8	4.7	2.7
INDONESIA	1.8	2.7	1.6	1.9	2.5	3.1	2.6	3.0	3.4	2.7	3.3	2.0
THAILAND	0.6	0.6	0.1	0.7	1.9	1.3	0.6	1.9	1.5	1.7	1.8	1.6
PHILIPPINES	2.8	1.4	1.8	1.5	1.0	0.6	0.3	0.3	0.8	1.3	1.2	0.5
PAKISTAN	0.1	0.1	0.0	0.0	0.0	0.0	0.0	0.0	0.1	0.1	0.1	0.2
SRI LANKA	0.1	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.1	0.2	0.2	0.0
VIETNAM	0.0	0.0	0.0	0.0	0.0	0.0	0.1	0.1	0.3	0.0	0.0	0.0

FAR EAST ASIA	13.1	22.0	22.9	31.2	28.2	33.5	33.4	37.5	34.1	30.2	29.7	39.6
SOUTH KOREA	5.3	11.0	10.1	15.2	18.2	18.6	17.6	20.2	11.0	9.2	8.6	13.9
CHINA	0.6	0.6	3.2	4.0	3.2	3.4	3.8	4.4	9.6	10.1	9.2	14.2
TAIWAN	6.6	9.1	8.2	11.8	5.9	10.5	10.5	11.4	11.9	9.7	10.8	11.5
HONG KONG	0.6	1.3	1.4	0.2	0.9	1.0	1.5	1.5	1.6	1.2	1.1	0.0

EUROPE/MIDDLE EAST/AFRICA	14.7	24.7	21.7	16.7	17.1	17.4	17.9	21.7	23.9	26.4	23.9	23.8
RUSSIAN FEDERATION	1.0	1.7	1.9	3.9	5.4	5.6	3.1	3.3	5.6	11.7	10.0	8.9
SOUTH AFRICA	4.7	4.6	5.2	3.3	4.7	6.6	7.7	8.7	8.9	6.0	5.5	6.8
ISRAEL	0.3	2.7	3.6	1.0	0.3	0.5	1.9	4.3	2.5	1.8	1.9	2.3
POLAND	1.5	1.9	2.1	1.8	2.2	0.8	0.4	0.1	0.4	0.5	0.6	1.7
TURKEY	3.9	9.8	6.8	4.8	1.9	2.0	2.4	3.1	3.3	1.7	1.1	1.4
HUNGARY	1.1	2.0	0.6	0.7	1.4	1.0	0.9	0.2	0.3	0.0	0.0	0.7
CZECH REPUBLIC	0.5	0.5	0.3	0.2	0.4	0.4	0.9	0.0	0.1	0.0	0.1	0.7
EGYPT	0.1	0.8	0.6	0.2	0.2	0.2	0.3	1.6	2.1	3.6	3.7	0.9
MOROCCO	0.3	0.1	0.0	0.0	0.1	0.0	0.1	0.1	0.1	0.1	0.1	0.3
JORDAN	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.1
KAZAKHSTAN	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.1	0.3	0.5	0.4	0.0
SULTANATE OF OMAN	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.1	0.1	0.3	0.3	0.0
UNITED ARAB EMIRATES	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.1	0.1	0.1	0.0
NIGERIA	0.1	0.0	0.1	0.1	0.1	0.0	0.0	0.0	0.1	0.0	0.0	0.0
CROATIA	0.9	0.4	0.5	0.5	0.4	0.3	0.2	0.1	0.0	0.1	0.1	0.0
ESTONIA	0.0	0.1	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
GHANA	0.2	0.1	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
BOTSWANA	0.0	0.0	0.0	0.2	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
OTHER2	6.6	7.0	2.8	2.1	0.8	1.2	1.6	2.1	2.6	5.3	6.1	0.0

Total equity	80.3	96.4	93.1	95.9	96.3	96.6	95.5	97.2	95.4	93.9	93.7	100.0
Fixed income	7.6	1.2	0.6	1.5	1.8	1.6	0.9	1.0	0.9	0.4	0.6
Cash & equivalents	12.1	2.4	6.3	2.6	1.9	1.8	3.6	1.8	3.7	5.7	5.7
Total assets	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.00




1MSCI Emerging Markets IMI
2The current period includes 5.7% in companies with substantial business assets in emerging markets but that are domiciled in developed markets, and 0.4% in CII's Private Equity funds.

Investment results
Emerging Markets Growth Fund


	Results as of December 31, 2007
								Calendar
								YTD
	20 years	15 years	10 years	5 years	3 years	1 year	4Q07	2/29/08
	%	%	%	%	%	%	%	%
Emerging Markets Growth Fund
- gross of operating expenses	20.58	15.49	15.22	37.72	38.76	39.48	3.40	- 3.64
- net of operating expenses	19.56	14.62	14.41	36.78	37.82	38.58	3.23	- 3.75

MSCI Emerging Markets IMI with net dividends reinvested	16.22	12.01	14.30	37.03	35.16	39.42	3.66	-6.29

MSCI World Index with net dividends	9.21	10.13	7.39	17.44	13.20	9.42	-2.34	-8.12

MSCI EAFE Index with net dividends	7.66	9.80	8.91	21.90	17.11	11.36	-1.73	-7.92

S&P 500 Index with income reinvested	11.76	10.47	5.91	12.82	8.61	5.49	-3.33	-9.05



Results are in US$. Periods greater than one year are annualized. Gross of operating expenses reflect the investment results of the Emerging Markets Growth Fund after adding back fund operating expenses, such as custodial and investment management fees.
Net of operating expenses total return percentages are calculated from net asset value assuming all distributions are reinvested.
MSCI Emerging Markets IMI with net dividends reinvested reflects MSCI Emerging Markets Index with gross dividends reinvested from inception through 12/31/00, MSCI Emerging Markets Index with net dividends reinvested through 11/30/07, and MSCI Emerging Markets Investable Market Index with net dividends reinvested thereafter.
MSCI World Index with net dividends for U.S. pension plans, charitable trusts, and educational institutions (calucated by Capital International S.A.) MSCI EAFE Index with net dividends for U.S. pension plans, charitable funds, and educational institutions (calculated by Capital International S.A.)
All indices are unmanaged.

Diversification by sector and industry
Emerging Markets Growth Fund, Inc.

	% Total portfolio	% Total portfolio	% Index1		% Total portfolio	% Total portfolio	% Index1
	12/31/07	2/29/08	2/29/08		12/31/07	2/29/08	2/29/08
ENERGY	11.1	10.3	15.9	HEALTH CARE	1.3	1.2	2.0
ENERGY EQUIPMENT & SERVICES	0.6	0.9	0.4	HEALTH CARE EQUIPMENT & SUPPLIES	0.0	0.0	0.1
OIL GAS & CONSUMABLE FUELS	10.5	9.4	15.5	HEALTH CARE PROVIDERS & SERVICES	0.5	0.4	0.2
MATERIALS	16.0	17.5	15.7	PHARMACEUTICALS	0.8	0.8	1.7
CHEMICALS	2.6	1.9	2.4	FINANCIALS	11.4	10.1	21.0
CONSTRUCTION MATERIALS	3.5	3.8	1.6	COMMERCIAL BANKS	6.7	5.8	13.3
CONTAINERS & PACKAGING	0.0	0.0	0.1	THRIFTS & MORTGAGE FINANCE	0.6	0.6	0.4
METALS & MINING	9.3	11.3	11.0	DIVERSIFIED FINANCIAL SERVICES	0.5	0.5	1.9
PAPER & FOREST PRODUCTS	0.6	0.5	0.6	CONSUMER FINANCE	0.0	0.0	0.1
INDUSTRIALS	11.3	11.7	10.0	CAPITAL MARKETS	0.1	0.0	1.0
AEROSPACE & DEFENSE	0.6	0.6	0.2	INSURANCE	0.7	0.7	2.3
BUILDING PRODUCTS	0.0	0.0	0.2	REAL ESTATE INVESTMENT TRUSTS (REITS)	0.1	0.1	0.1
CONSTRUCTION & ENGINEERING	6.6	6.9	2.6	REAL ESTATE MANAGEMENT & DEVELOPMENT	2.7	2.4	1.9
ELECTRICAL EQUIPMENT	1.7	1.6	0.7
INDUSTRIAL CONGLOMERATES	1.0	0.9	2.1	INFORMATION TECHNOLOGY	11.4	11.8	10.5
MACHINERY	0.2	0.2	1.5	INTERNET SOFTWARE & SERVICES	0.4	0.5	0.4
TRADING COMPANIES & DISTRIBUTORS	0.0	0.0	0.4	IT SERVICES	0.4	0.4	1.0
COMMERCIAL SERVICES & SUPPLIES	0.0	0.0	0.1	SOFTWARE	0.0	0.0	0.3
AIR FREIGHT & LOGISTICS	0.1	0.1	0.1	COMMUNICATIONS EQUIPMENT	0.2	0.1	0.2
AIRLINES	0.2	0.2	0.4	COMPUTERS & PERIPHERALS	1.4	1.4	1.6
MARINE	0.1	0.2	0.8	ELECTRONIC EQUIPMENT & INSTRUMENTS	3.6	3.3	2.4
ROAD & RAIL	0.0	0.0	0.2	SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT	5.4	6.1	4.6
TRANSPORTATION INFRASTRUCTURE	0.8	1.0	0.7	TELECOMMUNICATION SERVICES	12.5	12.4	10.3
CONSUMER DISCRETIONARY	9.1	8.6	6.1	DIVERSIFIED TELECOMMUNICATION SERVICES	2.9	3.6	3.3
AUTO COMPONENTS	0.8	0.7	0.4	WIRELESS TELECOMMUNICATION SERVICES	9.6	8.8	7.0
AUTOMOBILES	0.5	0.7	1.0	UTILITIES	1.9	2.4	3.6
HOUSEHOLD DURABLES	0.0	0.0	1.1	ELECTRIC UTILITIES	1.4	1.9	2.0
LEISURE EQUIPMENT & PRODUCTS	0.2	0.1	0.2	GAS UTILITIES	0.0	0.1	0.4
TEXTILES, APPAREL, & LUXURY GOODS	0.8	0.7	0.4	MULTI UTILITIES	0.0	0.0	0.1
HOTELS, RESTAURANTS & LEISURE	1.2	1.4	0.7	WATER UTILITIES	0.2	0.1	0.2
DIVERSIFIED CONSUMER SERVICES	0.3	0.2	0.1	INDEPENDENT POWER PROD & ENERGY TRADERS	0.3	0.3	0.9
MEDIA	1.6	1.5	1.0	OTHER	1.2	1.2	0.0
DISTRIBUTORS	0.3	0.3	0.2	EMERGING MARKET FUNDS/PARTNERSHIPS	1.2	1.2	0.0
INTERNET & CATALOG RETAIL	0.8	0.7	0.1
MULTILINE RETAIL	0.7	0.8	0.5	Total equity	93.9	93.7	100.0
SPECIALTY RETAIL	1.9	1.5	0.4	Total fixed income	0.4	0.6
CONSUMER STAPLES	6.7	6.5	4.9	Total cash and equivalents	5.7	5.7
FOOD & STAPLES RETAILING	1.1	1.1	1.1	Total assets	100.0	100.0
BEVERAGES	2.2	2.4	1.0
FOOD PRODUCTS	2.9	2.6	1.8
TOBACCO	0.2	0.2	0.5
HOUSEHOLD PRODUCTS	0.3	0.2	0.3
PERSONAL PRODUCTS	0.0	0.0	0.2

1MSCI Emerging Markets IMI