wgi_ncsr.htm

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The right choice for the long term®

Capital World Growth and Income Fund

Building on a global footprint

[photo of a wooden post with wooden arrows with city names written on them attached to the wooden post]

Annual report for the year ended November 30, 2009

Capital World Growth and Income FundSM seeks long-term growth of capital while providing current income. It invests on a global basis in a diversified portfolio consisting primarily of common stocks and other equity securities.

This fund is one of the 30 American Funds. American Funds is one of the nation’s largest mutual fund families. For nearly 80 years, Capital Research and Management Company,SM the American Funds adviser, has invested with a long-term focus based on thorough research and attention to risk.

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

Here are the average annual total returns on a $1,000 investment with all distributions reinvested for periods ended December 31, 2009 (the most recent calendar quarter-end):

Class A shares	1 year			5 years			10 years

Reflecting 5.75% maximum sales charge		24.65	%		4.85	%		6.53	%

The total annual fund operating expense ratio was 0.83% for Class A shares as of November 30, 2009.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses. The fund’s investment adviser waived a portion of its management fees from September 1, 2004, through December 31, 2008. Fund results shown reflect the waiver, without which they would have been lower. See the Financial Highlights table on pages 27 and 28 for details.

Results for other share classes can be found on page 5.

The fund’s 30-day yield for Class A shares as of December 31, 2009, reflecting the 5.75% maximum sales charge and calculated in accordance with the Securities and Exchange Commission formula, was 2.26%.

Equity investments are subject to market fluctuations. Investing outside the United States may be subject to additional risks, such as currency fluctuations and political instability. See the prospectus and the Risk Factors section of this report for more information on these and other risks associated with investing in the fund.

In this report

Special feature

6	Building on a global footprint
	Capital World Growth and Income Fund has always provided its shareholders a global footprint, largely by investing in established companies that also have a global footprint. In this article, we’ll take a closer look at what that means for the fund and its prospects in the wake of the recent downturn in markets worldwide.


Contents

1	Letter to shareholders

4	The value of a long-term perspective

12	Summary investment portfolio

17	Financial statements

34	Board of directors and other officers

Fellow shareholders:

[photo of a wooden post with wooden arrows with city names written on them attached to the wooden post]

The downturn in global markets that marred 2008 gave way to a rebound in early 2009 that lasted through the end of the recent fiscal year. As a result, Capital World Growth and Income Fund recorded a total return of 37.5% for the 12 months ended November 30, 2009.

Fund results compared favorably with its benchmarks for the same period. The MSCI World Index, a broad measure of global developed stock markets, rose 32.6%, while the fund’s peer group, as measured by the Lipper Global Funds Index, returned 33.1%. Results for longer time periods are shown in the table below.

The fund’s total return includes the reinvestment of any dividends paid. For the fiscal year, Capital World Growth and Income Fund paid quarterly dividends totaling $1.00 a share, which includes a special dividend of 15 cents a share paid in December 2008. These dividends represent an income return of nearly 4.0% for those who reinvested them or about 3.9% for those who took them in cash.

A look at global markets

The recent fiscal year began December 1, 2008, amid some of the most challenging market conditions in recent history. The severe global selloff that erupted in 2008 coincided with a global recession that affected developed and developing markets alike. One year later, however, the outlook is much different. Most stock markets have recorded extraordinary gains, boosted by government and central bank interventions, stronger-than-expected corporate profits, and signs of stability and recovery in economies throughout the world.

Europe is home to the largest number of companies in the fund’s portfolio, representing about 46.7% of its holdings. The strain of the financial crisis and its economic repercussions varied considerably throughout the region, with the United Kingdom, Germany, France, Spain and Ireland among the hardest hit. Nonetheless, most stock markets reported solid gains for the fiscal year in local currency terms (excepting Ireland and Finland), reflecting the broader global rebound that began in March. In general, markets were buoyed by intensive government interventions and strong export ties to Asia and other developing markets. Additionally, the fund’s returns on most European holdings were boosted significantly — in some cases doubled — by a strengthening of local currencies against the U.S. dollar. Topping the list of regional returns were Norway (up 88.5%), Sweden (77.5%), Belgium (76.0%) and Spain (67.5%).*

*Country returns are based on MSCI indexes, expressed in U.S. dollars (except where noted), and assume the reinvestment of dividends.

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Results at a glance

For periods ended November 30, 2009, with all distributions reinvested

	Total returns			Average annual total returns
	1 year			5 years			10 years			Lifetime
										(since 3/26/93)

Capital World Growth and Income Fund (Class A shares)		37.48	%		6.58	%		8.01	%		11.64	%
MSCI World Index*		32.63			2.97			0.83			6.93
Lipper Global Funds Index†		33.07			3.40			1.83			6.93

*The MSCI World Index is weighted by market capitalization and is designed to measure global developed-market equity results. The index consists of more than 20 developed-country indexes, including the United States. The index is unmanaged and includes reinvested dividends and/or distributions, but does not reflect the effect of sales charges, commissions, expenses or taxes.

† Lipper Global Funds Index is an equally weighted index of funds that invest at least 25% of their portfolios in securities traded outside the United States and that may own U.S. securities as well. The results of the underlying funds in the index include the reinvestment of dividends and capital gain distributions, as well as brokerage commissions paid by the funds for portfolio transactions, but do not reflect the effect of sales charges or taxes.

[End Sidebar]

The United States accounts for 24.6% of portfolio holdings, whereas it represents 48.1% of the MSCI World Index of stock markets. The downturn here was the most severe since the Great Depression of the 1930s, by most accounts. Yet here, too, stocks surprised on the upside, despite the lingering effects of a housing market slump, high unemployment and mounting government debt concerns. For the fiscal year, U.S. stocks gained 26.2%.

The developed markets in other regions initially reacted in a similar fashion to those of the U.S. and Europe, reflecting the global nature of markets. Initial GDP numbers from Hong Kong and Singapore, for example, were worse than many European countries, reflecting the export intensity of these countries; but as the year wore on and the global economy showed signs of stabilization, the financial strength of these economies shone through. Hong Kong and Singapore recorded gains of 62.9% and 76.1%, respectively. Japan, whose industrial production fell 30% peak to trough in a period of extraordinarily strong Yen, saw more modest gains of 14.2%. As in Europe, stronger local currencies versus the U.S. dollar greatly enhanced returns for the fund. The U.S. dollar return of 84.8% from Australia, for example, was more than double the local currency return.

Some of the highest returns for the fiscal year were provided by developing countries, where currency fluctuations also bolstered results. The fund has direct exposure to several of these markets, most prominently Brazil (up 129.2%), China (78.9%) and Taiwan (74.3%).

The fund’s portfolio

While the fund invests mainly in developed markets, it has a significant and growing exposure to developing markets through the companies it holds. In building the portfolio, we focus mainly on individual companies rather than the countries in which they are domiciled. We do consider countries and markets, but mainly at the corporate level by analyzing where each company produces and sells its goods and services.

This “bottom up” perspective means that the fund may have a greater (or lesser) exposure to a given country or market than can be readily quantified in the chart on page 3. To learn more about the global reach of the fund’s holdings and the implications for growth and income, please read our feature article, “Building on a global footprint,” beginning on page 6.

The fund’s largest holdings at the close of the fiscal year are shown in the table below. All but AT&T posted healthy gains for the reporting period, contributing to the fund’s strong return. Nonetheless, AT&T provided the fund with an above-average dividend yield. Strong results from the other companies within the portfolio helped the fund deliver higher returns than either of its benchmarks, as noted in the table on page 1. While strength was evident in a variety of sectors, some of the best returns were from the financial sector, the largest weighting in the portfolio, as detailed on page 12.

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Largest equity holdings
(as of November 30, 2009)
Company	Country	Percent of net assets			12-month return

Microsoft	United States		2.8	%		58.03	%
Banco Santander	Spain		2.6			137.90
Bayer	Germany		2.3			59.02
Novartis	Switzerland		2.0			22.69
GDF Suez	France		1.8			17.71
AT&T	United States		1.7			–0.07
Merck	United States		1.4			45.71
BNP Paribas	France		1.3			66.62
Telefónica	Spain		1.3			49.32
América Móvil	Mexico		1.3			68.10

[End Sidebar]

Looking ahead
While we are certainly pleased with the rebound in stock prices this year, we are also mindful of the various challenges facing some of the larger, developed economies. These include high unemployment, weak real estate markets, rising government debt burdens and sluggish consumer demand. These headwinds may serve to limit stock advances generally in the months ahead, even as the pace of economic recovery improves. On the other hand, valuation levels remain modest by historical standards and relative to both long- and short-term interest rates. In particular, shares of global blue chip companies, the lifeblood of this fund, remain attractive.

More importantly for our shareholders, we are encouraged by the signs of stability and growth that we have seen, especially in the latter half of 2009. We expect that the resilience of developing economies will continue to bolster companies doing business in those markets, and we expect gradual, but steady improvements among developed countries in the year ahead.

As always, Capital World Growth and Income Fund will continue to offer its shareholders a means to participate in the global recovery and expansion through its portfolio of established, brand name companies and its international research efforts.

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

Cordially,

/s/ Gina H. Despres

Gina H. Despres

Vice Chairman of the Board

/s/ Mark E. Denning

Mark E. Denning

President

January 8, 2010

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

[Begin Sidebar]

We take this opportunity to thank Steve Bepler for his many years of leadership and service as President of Capital World Growth and Income Fund. Steve will continue to serve as a portfolio counselor on the fund, but Mark Denning has assumed the responsibilities of President beginning with the 2010 fiscal year. Both Steve and Mark have been with the fund since its inception.

[End Sidebar]

[Begin Sidebar]

Where the fund’s assets were invested*

	Capital World Growth and Income Fund			MSCI World Index†

Europe		46.7	%		31.7	%
France		9.7			5.1
United Kingdom		7.7			10.1
Germany		6.8			3.9
Switzerland		6.0			3.7
Spain		4.8			2.3
Sweden		2.5			1.2
Netherlands		1.6			1.2
Finland		1.4			.5
Italy		1.4			1.7
Belgium		1.1			.5
Austria		.7			.1
Czech Republic		.7			—
Russia		.7			—
Greece		.5			.3
Other Europe		1.1			1.1

The Americas		31.0			52.9
United States		24.6			48.1
Brazil		3.9			—
Mexico		1.5			—
Canada		1.0			4.8

Asia/Pacific		16.0			15.4
Taiwan		3.1			—
Japan		2.8			9.7
Australia		2.7			3.9
China		2.5			—
Hong Kong		1.5			1.1
Singapore		1.5			.7
Other Asia/Pacific		1.9			—

Other		.8			—

Bonds, short-term securities
& other assets less liabilities		5.5			—

Total		100.0	%		100.0	%


*Percent of net assets by country as of November 30, 2009.
† The MSCI World Index is weighted by market capitalization.

[End Sidebar]

The value of a long-term perspective

How a $10,000 investment has grown since March 26, 1993

Fund results shown are for Class A shares and are not predictive of results for future periods. Current and future results may be lower or higher than those shown. Share prices and returns will vary, so investors may lose money. For current information and month-end results, visit americanfunds.com. Fund figures reflect deduction of the maximum sales charge of 5.75% on the $10,000 investment.1 Thus, the net amount invested was $9,425.

[begin mountain chart]

	Capital World Growth and Income Fund, with dividends reinvested1,2		Capital World Growth and Income Fund, with dividends excluded1,3		MSCl World Index, with dividends reinvested4		U.S. Consumer Price Index (inflation)5

3/26/1993	$	9,425	$	9,425	$	10,000	$	10,000
5/31/1993		9,719		9,719		10,837		10,042
8/31/1993		10,401		10,313		11,475		10,084
11/30/1993		10,782		10,625		10,924		10,153
2/28/1994		11,615		11,388		12,062		10,216
5/31/1994		11,315		11,044		11,936		10,272
8/31/1994		12,038		11,656		12,501		10,376
11/30/1994		11,592		11,131		11,982		10,425
2/28/1995		11,860		11,293		12,097		10,508
5/31/1995		12,788		12,094		13,242		10,599
8/31/1995		13,412		12,557		13,598		10,648
11/30/1995		13,841		12,850		14,260		10,696
2/29/1996		14,700		13,553		15,042		10,787
5/31/1996		15,327		14,031		15,673		10,905
8/31/1996		15,414		13,947		15,379		10,954
11/30/1996		17,118		15,362		17,004		11,045
2/28/1997		17,849		15,936		17,136		11,114
5/31/1997		18,908		16,782		18,427		11,149
8/31/1997		19,755		17,380		18,892		11,198
11/30/1997		19,917		17,414		19,212		11,247
2/28/1998		21,881		19,050		21,351		11,274
5/31/1998		22,801		19,763		22,198		11,337
8/31/1998		19,885		17,104		19,671		11,379
11/30/1998		23,007		19,676		23,138		11,421
2/28/1999		23,904		20,375		24,151		11,455
5/31/1999		25,004		21,214		25,203		11,574
8/31/1999		26,177		22,063		26,263		11,636
11/30/1999		27,396		23,014		28,141		11,720
2/29/2000		29,908		25,027		28,765		11,825
5/31/2000		30,124		25,119		28,718		11,943
8/31/2000		31,516		26,121		29,799		12,033
11/30/2000		29,142		24,016		26,067		12,124
2/28/2001		30,810		25,334		24,728		12,242
5/31/2001		31,113		25,404		24,514		12,375
8/31/2001		29,274		23,786		22,316		12,361
11/30/2001		28,613		23,111		21,975		12,354
2/28/2002		28,826		23,225		21,266		12,382
5/31/2002		30,788		24,700		21,514		12,521
8/31/2002		26,985		21,503		18,550		12,584
11/30/2002		27,405		21,693		18,697		12,625
2/28/2003		25,681		20,237		16,961		12,751
5/31/2003		29,144		22,806		19,487		12,779
8/31/2003		31,622		24,576		20,680		12,855
11/30/2003		35,220		27,230		22,391		12,848
2/29/2004		39,110		30,063		24,603		12,967
5/31/2004		37,996		29,064		24,197		13,169
8/31/2004		38,489		29,275		24,018		13,196
11/30/2004		43,044		32,485		26,414		13,301
2/28/2005		45,627		34,128		27,680		13,357
5/31/2005		44,120		32,857		27,074		13,538
8/31/2005		47,417		35,102		28,507		13,677
11/30/2005		49,405		36,422		29,519		13,760
2/28/2006		53,238		38,938		31,500		13,837
5/31/2006		54,442		39,665		32,097		14,102
8/31/2006		56,740		41,006		33,164		14,199
11/30/2006		60,955		43,831		35,678		14,032
2/28/2007		62,462		44,658		36,674		14,171
5/31/2007		69,460		49,420		40,162		14,481
8/31/2007		69,153		48,779		38,979		14,479
11/30/2007		73,901		51,855		40,406		14,636
2/29/2008		68,239		47,576		36,661		14,742
5/31/2008		72,079		50,003		38,897		15,086
8/31/2008		62,945		43,205		34,468		15,257
11/30/2008		43,044		29,332		23,053		14,793
2/28/2009		37,793		25,467		19,517		14,777
5/31/2009		48,929		32,760		25,525		14,892
8/31/2009		54,724		36,119		28,731		15,030
11/30/2009		59,179		38,880		30,576		15,065

[end mountain chart]

Year ended
November 30		1993	6	1994			1995		1996	1997	1998	1999	2000

Total value
Dividends
reinvested	$	144		295			421		506	488	478	440	577
Value at year-end1	$	10,782		11,592			13,841		17,118	19,917	23,007	27,396	29,142
WGI total return		7.8	%	7.5			19.4		23.7	16.4	15.5	19.1	6.4


Year ended
November 30		2001		2002			2003		2004	2005	2006	2007	2008

Total value
Dividends
reinvested		578		569			679		914	1,043	1,315	1,633	1,918
Value at year-end1		28,613		27,405			35,220		43,044	49,405	60,955	73,901	43,044
WGI total return		(1.8	)	(4.2	)		28.5		22.2	14.8	23.4	21.2	(41.8	)


Year ended
November 30		2009

Total value
Dividends						Average
reinvested		1,711				annual total return for
Value at year-end1		59,179			fund’s lifetime
WGI total return		37.5					11.2	%2

1As outlined in the prospectus, the sales charge is reduced for accounts (and aggregated investments) of $25,000 or more and is eliminated for purchases of $1 million or more. There is no sales charge on dividends or capital gain distributions that are reinvested in additional shares.

2Includes reinvested dividends of $13,710 and reinvested capital gain distributions of $20,534.

3Results calculated with capital gains reinvested.

4The MSCI World Index is unmanaged and its results include reinvested dividends, but does not reflect the effect of sales charges, commissions or expenses.

5Computed from data supplied by the U.S. Department of Labor, Bureau of Labor Statistics.

6For the period March 26, 1993 (when the fund began operations), through November 30, 1993.

The results shown are before taxes on fund distributions and sale of fund shares.

Average annual total returns based on a $1,000 investment (for periods ended November 30, 2009)*

	1 year			5 years			10 years

Class A shares		29.56	%		5.32	%		7.37	%

*Assumes reinvestment of all distributions and payment of the maximum 5.75% sales charge.

Other share class results

Classes B, C, F and 529

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

Average annual total returns for periods ended December 31, 2009 (the most recent calendar quarter-end):
	1 year			5 years			Life of class
Class B shares1 — first sold 3/15/00
Reflecting applicable contingent deferred sales charge
(CDSC), maximum of 5%, payable only if shares are
sold within six years of purchase		26.29	%		4.95	%		6.61	%
Not reflecting CDSC		31.29			5.28			6.61

Class C shares — first sold 3/15/01
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		30.26			5.23			7.45
Not reflecting CDSC		31.26			5.23			7.45

Class F-1 shares2 — first sold 3/15/01
Not reflecting annual asset-based fee charged
by sponsoring firm		32.29			6.08			8.30

Class F-2 shares2 — first sold 8/1/08
Not reflecting annual asset-based fee charged
by sponsoring firm		32.65			—			−4.48

Class 529-A shares3 — first sold 2/15/02
Reflecting 5.75% maximum sales charge		24.60			4.79			8.91
Not reflecting maximum sales charge		32.21			6.04			9.73

Class 529-B shares1,3 — first sold 2/21/02
Reflecting applicable CDSC, maximum of 5%, payable
only if shares are sold within six years of purchase		26.15			4.82			9.03
Not reflecting CDSC		31.15			5.15			9.03

Class 529-C shares3 — first sold 2/22/02
Reflecting CDSC, maximum of 1%, payable only
if shares are sold within one year of purchase		30.13			5.16			9.03
Not reflecting CDSC		31.13			5.16			9.03

Class 529-E shares2,3 — first sold 3/4/02		31.80			5.70			8.99

Class 529-F-1 shares2,3 — first sold 9/17/02
Not reflecting annual asset-based fee charged
by sponsoring firm		32.48			6.21			12.17

1 These shares are not available for purchase.
2 These shares are sold without any initial or contingent deferred sales charge.
3 Results shown do not reflect the $10 account setup fee and an annual $10 account maintenance fee.

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

[Begin Sidebar]

[photo of a storefront - racks of postcards and a baskets out in front of the store]

“On the surface, the deep, synchronous market downturn we experienced might suggest that every country and region was suddenly facing the same set of problems, but in reality the situation varied from country to country and region to region.”

– Gina Despres, vice chairman

[End Sidebar]

Building on a global footprint

Capital World Growth and Income Fund has always provided its shareholders a global footprint, largely by investing in established companies that also have a global footprint. In this article, we’ll take a closer look at what that means for the fund and its prospects in the wake of the recent downturn in markets worldwide.

Distinctions in global markets

For many investors, the past year has been one of unusual volatility. The sharp selloffs that rattled markets in 2008 continued into the first few months of 2009, but then gave way to a remarkable rebound that extended through the close of the fund’s fiscal year. Like the downturn, the rebound has been global in scope. It has been fueled, in part, by the economic resilience of developing countries and better-than-expected corporate profits. In many instances, these two factors are related.

Gina Despres, vice chairman of Capital World Growth and Income Fund, notes, “On the surface, the deep, synchronous market downturn we experienced might suggest that every country and region was suddenly facing the same set of problems, but in reality the situation varied from country to country and region to region.”

The United States was and remains the epicenter of the financial crisis that precipitated the downturn. The prominence of its economy and the interconnectedness of global financial markets mean that its problems can and often do lead to financial and economic pressures around the world. Yet many economies and markets, especially in Asia and South America, have rebounded quickly this past year, owing to their inherent strengths and an arm’s length exposure to the mortgage and debt problems that fostered the downturn. It used to be said that when the United States sneezed, the rest of the world caught pneumonia. That was not the case this time.

The portfolio counselors and analysts of Capital World Growth and Income Fund pay close attention to the distinctions of local economies and variations among markets. So do many of the companies in which the fund invests. These variances often give rise to opportunities for savvy investors and businesses alike. Gina adds, “The locus of opportunity is constantly shifting. That’s why our approach is not strictly about seeking a geographically diverse mix of companies, but rather about identifying companies that seek opportunity on a global basis. Diversification invariably results, but that is not the sole objective.”

Shared troubles, shared gains

Though globalization of trade and finance contributed to the synchronous downturn, it also served as part of the safety net helping to diffuse some of the economic damage and buoy companies with international operations. The swift and coordinated efforts of central banks and governments also helped limit damage locally and globally. Portfolio counselor Steve Bepler, who has been with the fund since its inception, offers this perspective: “You really can’t avoid the globalization of world economies. A company like Coca-Cola or Boeing, for example, has more of its sales outside the United States than it does in the United States. So as industries have gotten more global, the idea that you could protect yourself from unanticipated economic cycles and profit cycles by sticking to companies that are domiciled in the U.S. is just not true any more.

“A better thing to do, I would think, would be to try and make it your friend in a certain way — to invest in global companies at a time when, for example, the currency relations are favorable for them to be profitable and where the markets that they’re strong in outside their home market tend to be doing well — rather than focusing on the idea that there’s more risk once you invest outside the United States.”

The company as portal

The portfolio holdings of Capital World Growth and Income Fund are primarily blue chip companies domiciled in the major developed markets of the world. These markets were among the hardest hit during the recent downturn, which was broadly indiscriminate in lowering share prices. Strong companies as well as weak companies suffered severe declines. Yet one year later, many of these larger established companies have rebounded sharply.

Portfolio counselors and analysts give careful consideration to the expected resilience of a company before it becomes a portfolio holding. Their evaluations take into account the quality of its management, its competitive position, the sustainability of its revenues, and prospects for continued growth and income. In a globalized economy, a company’s revenues and prospects are increasingly determined by where it sells its products, rather than where it is domiciled.

To this point (and echoing Steve’s insight), many of the larger holdings in the fund’s portfolio derive a significant amount of their sales from markets outside their home country. This is certainly the case with the fund’s top holding, Microsoft, which derived about 43% of its revenues from outside the U.S., according to a recent filing. Similarly, all of the fund’s top holdings, except AT&T, reported significant sales outside their home country.

Portfolio counselor Jeanne Carroll notes, “Most of the growth in global consumption will likely come from developing countries, and it’s important for investors to participate in that growth. Companies with good products, good technology and good brands have the potential to do well over the long term.”

A company’s global footprint, however, does not rely on sales only. In many instances, thriving businesses diversify operations to be nearer to their end markets (customers) or to access lower cost materials and labor that can be found elsewhere, particularly in developing countries. This decentralization can offer greater business flexibility and a more competitive product, and allows a company to take advantage of variances in economic cycles and currency fluctuations.

Gina adds, “As developing countries’ economies have strengthened and expanded, so have developed-world companies that do business in those places. Developing-country markets represent a steadily growing share of business for companies domiciled in the developed world, and I expect that trend to continue.”

Seeking income amid uncertainty

Growth prospects are not the only criteria governing the selection of companies for the fund’s portfolio. Income is also one of the fund’s objectives, and companies that offer reliable, attractive dividends have prominence in the portfolio.

Last year’s downturn in global markets created a new set of challenges and opportunities for income-oriented investors. On one hand, the sharp decline in share prices elevated the dividend yield on many stocks; on the other hand, some companies were compelled to reduce or eliminate dividends to conserve cash during the recession. Reductions were especially prevalent among financial institutions, the hardest hit sector in many developed markets. Yet discrepancies persist even among financials, which retain a large weighting in the portfolio and count among its largest holdings.

Portfolio counselor David Riley notes, “I was very nervous about dividend stability at the beginning of the year, when we really didn’t know if stocks were going to fall further or not. At this point, however, a sense of normalcy has returned. This makes it possible for chief executives and corporate boards to once again revisit the idea of dividends.”

[Begin Sidebar]

[photo of international postage stamps]

Measuring a global footprint

Percentage of sales and operations outside home economy

[begin bar chart]

Europe	Linde AG (Germany)	89	%
Europe	Nestle (Switzerland)	83
Japan	Honda (Japan)	82
Europe	British Petroleum (United Kingdom)	80
Europe	Roche (Switzerland)	80
U.S.	Coca Cola (United States)	78
Europe	Volvo (Sweden)	77
Europe	Novartis (Switzerland)	71
Europe	Royal Dutch Shell (United Kingdom/Netherlands)	70
Europe	GDF Suez (France)	69
Europe	Telefonica (Spain)	69
Europe	Siemens (Germany)	66
Europe	Bayer (Germany)	55
Europe	Eni SpA (Italy)	53
Europe	France Telecom (France)	52
Emerging markets	America Movil (Mexico)	48
U.S.	Conoco Phillips (United States)	43

[end bar chart]

Source: United Nations Conference on Trade and Development, World Investment Report 2008. Figures based on Transnationality Index (TNI), as of 2006. TNI percentage represents the average of three ratios: foreign sales to total sales, foreign assets to total assets, and foreign employment to total employment.

Determining how much of a company’s business (sales and operations) takes place outside its home economy can be a challenge. Corporate disclosures and reporting standards vary considerably from country to country, and even among industries. Thus, most attempts to measure this data are incomplete, at best.

In the United States, for example, Standard & Poor’s recently issued a report attempting to quantify the status of known foreign sales among its S&P 500 companies. Unfortunately, quantifiable data was available from only 253 companies, or 50.6% of that index. Yet among those 253 companies, some 47.9% of their 2008 sales came from outside the United States, up from 45.8% in 2007 and 43.6% in 2006.

In a similar endeavor, the United Nations Conference on Trade and Development (UNCTD) has developed a Transnationality Index, which attempts to measure the global footprint of major multinational companies. This index assesses a company’s foreign exposure to sales, assets and employees. Four of the fund’s top holdings (Bayer, Novartis, GDF Suez and Telefónica) were ranked among the world’s top 100 non-financial transnational companies (TNCs) in developed countries. América Móvil placed in the top 100 for developing countries, and Banco Santander and BNP Paribas were named in its list of the top 50 financial TNCs.

The table above details some of the fund’s largest holdings that were ranked in the UNCTD report. This listing, while illuminating, is not the final word. Dozens more of the fund’s holdings not in that report have significant global footprints (e.g. Microsoft, Merck and Akzo Nobel) that are well-known to the fund’s analysts. Indeed, we believe that the best way to ascertain a company’s global footprint is to examine it closely wherever it does business, and to look beyond corporate filings to its people, products and operations. These are the kinds of measurements we require before adding a company to the fund’s portfolio.

[End Sidebar]

Companies that have maintained their dividends throughout the downturn are generally well-established businesses with predictable cash flows — the types of companies favored by the fund. Not surprisingly, many of these companies belong to industries that have a tradition of paying attractive dividends and that have a significant weighting in the portfolio. Pharmaceutical companies are a good example and are well represented in the fund’s top holdings. Telecommunications companies, like AT&T, are another.

Additionally, a scattering of companies have actually increased dividends during the past year. Portfolio counselor Joyce Gordon observes, “When you’re looking for stocks that are paying dividends, the turnaround in the markets is pretty evident. There are a few companies — not as many as we’d like, but some — that are increasing their dividends, and that’s encouraging.

“The companies that are increasing dividends are the ones that didn’t run into huge problems as a result of the downturn. They tend to be good companies with a long-term focus and a history of a strong commitment to the dividend. Their businesses aren’t as cyclical, meaning that they weather the boom-and-bust cycle of the marketplace better than others.”

In identifying which companies are most likely to deliver sustainable dividends, portfolio counselors often look overseas first. Many developed markets overseas currently provide higher dividend yields than are generally available in the United States. It has become a part of the culture in many markets, particularly in Europe, where the fund has a significant presence. In many instances, international companies pay dividends annually as a percentage of profits, rather than as a quarterly fixed dividend, which is common in the United States. Thus, while international dividend amounts may fluctuate depending on earnings, the yields tend to be higher.

Research from the ground up

The fund’s 10 counselors build the portfolio one company at a time, with each counselor responsible for only a portion of the fund’s assets. This allows each of them to focus on their highest conviction investment ideas. These ideas are generated by the fund’s investment analysts who, like the portfolio counselors, are based in a variety of offices around the world.

“Like the companies in which we invest, we have long recognized the importance of a global mindset,” explains Gina. “We opened our first office outside the United States in Geneva in 1962, and now have research professionals located around the globe. Our colleagues travel the world, visiting companies and gathering the kind of data and insight that we believe can only be obtained on the ground.”

[Begin Sidebar]

[illistration of a world map]

Dividend yields for developed-world markets

THE AMERICAS
Canada	2.5	%
USA	1.9


EUROPE
Austria	3.7	%
Belgium	2.1
Denmark	1.1
Finland	4.6
France	3.7
Germany	3.6
Greece	2.3
Ireland	2.4
Italy	3.7	%
Netherlands	2.9
Norway	1.9
Portugal	3.7
Spain	4.7
Sweden	2.7
Switzerland	2.3
United Kingdom	3.6

ASIA/PACIFIC
Australia	4.0	%
Hong Kong	2.6
Japan	1.8
New Zealand	5.3
Singapore	3.1

MSCI World Index	2.5	%

Source: MSCI Country Index yields as of 11/30/09

[End Sidebar]

Jeanne adds, “Our analysts have first-hand experience of companies they cover because many of them live in the same countries. They have strong relationships with local companies and a solid knowledge base, which helps us as portfolio counselors to know these companies better and understand local markets better. Because of this, we are less inclined to impose an ‘American’ perspective on the companies we evaluate. Instead, we gain insights that are truly global.”

Maintaining a long-term global view

Despite the strong rebound in global stock markets, financial and economic difficulties persist in many countries, particularly the United States. Yet many other markets and economies around the world have already shown signs of resilience and recovery, and companies that have business interests in these flourishing economies are more likely to thrive as well.

Capital World Growth and Income Fund offers its shareholders the opportunity to participate in thriving economies and markets through its portfolio of established companies and a broad global footprint. The fund, of course, is not immune to global downturns, such as we experienced last year. Nonetheless, its global reach affords shareholders the opportunity to participate in a wide variety of strengthening markets around the globe. n

[Begin Sidebar]

[photo of international travel stickers]

Finding income

Dividend income is an important part of the fund’s investment objective. While not every portfolio holding pays a dividend, most do and many pay a dividend that is well in excess of the MSCI World Index yield of 2.5%. The first table below shows the dividend yield as of fiscal year-end for the fund’s top holdings.

Microsoft	1.8	%
Banco Santander	5.6
Bayer	2.7
Novartis	3.6
GDF Suez	5.0
AT&T	6.1
Merck	4.2
BNP Paribas	1.8
Telefónica	5.2
América Móvil	2.4

Source: MSCI as of 11/30/09

This second table shows the dividend yields for the 10 sectors of the MSCI World Index. While the fund has exposure to all of these sectors, it generally has greater exposure to the companies and industries within those sectors that offer attractive yields. Examples of this are holdings in banks (Financials), pharmaceuticals (Health care), and food, beverage & tobacco (Consumer staples). Of course, the most important determination is the quality of the company itself and its ability to maintain or grow its dividend.

Energy	3.0	%
Materials	1.8
Industrials	2.3
Consumer discretionary	1.9
Consumer staples	2.9
Health care	2.5
Financials	2.4
Information technology	1.1
Telecommunication services	5.3
Utilities	4.7

Source: MSCI as of 11/30/09

[End Sidebar]

Summary investment portfolio, November 30, 2009

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

[begin pie chart]

Industry sector diversification (percent of net assets)

Financials	17.61	%
Information technology	10.35
Telecommunication services	9.39
Health care	8.81
Consumer staples	8.72
Other industries	38.89
Bonds & notes	.88
Convertible securities, preferred stocks & rights	.71
Short-term securities & other assets less liabilities	4.64

[end pie chart]

Country diversification (percent of net assets)
Euro zone*	28.4	%
United States	24.6
United Kingdom	7.7
Switzerland	6.0
Brazil	3.9
Taiwan	3.1
Japan	2.8
Australia	2.7
China	2.5
Sweden	2.5
Other countries	10.3
Bonds, short-term securities & other assets less liabilities	5.5

*Countries using the euro as a common currency; those represented in the fund's portfolio are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands and Spain.

							Percent
				Value			of net
Common stocks - 93.77%	Shares				(000	)	assets

Financials - 17.61%
Banco Santander, SA		121,845,641		$	2,085,666			2.57	%
A leading Spanish bank, with a strong franchise in Latin America and the U.K.
BNP Paribas SA		13,066,156			1,078,102			1.33
This major French bank has operations around the globe.
Société Générale		14,185,748			997,887			1.23
Has retail, corporate and investment banking operations around the world, with particular strength in Europe.
Industrial and Commercial Bank of China Ltd., Class H		973,494,000			822,812			1.02
A state-owned commercial bank in China and one of the world's largest banks.
Prudential PLC		75,209,580			772,738			.95
A leading life insurance and pension provider. Has significant operations in the U.S. and the U.K. and is growing in the Asia/Pacific region.
Banco Bradesco SA, preferred nominative		29,577,179			615,839			.76
One of the largest private banks in Brazil.
HSBC Holdings PLC (Hong Kong)		26,720,033			312,731
HSBC Holdings PLC (United Kingdom)		20,476,231			237,794			.68
One of the world's largest international banking and financial services organizations.
Credit Suisse Group AG		9,295,200			481,233			.59
One of the world's largest private banks, and a provider of investment banking, insurance and asset management services.
AXA SA		19,515,596			464,631			.57
Ranks among the world's largest insurance and financial services companies.
Banco do Brasil SA, ordinary nominative		25,129,500			442,956			.55
Major Brazilian bank with a strong presence in retail banking.
UBS AG (1)		28,501,810			442,113			.55
One of the world's largest financial services companies, providing wealth management, investment banking and asset management.
Wells Fargo & Co.		15,000,000			420,600			.52
One of the largest banks in the U.S. and a leader in online banking.
Other securities					5,099,943			6.29
					14,275,045			17.61



Information technology - 10.35%
Microsoft Corp.		78,288,000			2,302,450			2.84
A world leader in software and Internet technologies. Its products include the Windows operating system and Office software.
Taiwan Semiconductor Manufacturing Co. Ltd.		366,968,311			695,896
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		20,226,531			210,154			1.12
One of the world's largest semiconductor manufacturers.
MediaTek Inc.		40,996,014			645,095			.80
Manufactures optical storage media for PCs and DVDs.
Oracle Corp.		19,997,000			441,534			.54
Major supplier of database management software. Also develops business applications and provides consulting and support.
Redecard SA, ordinary nominative		27,042,200			413,423			.51
Brazil-based provider of credit and debit cards and transaction-related services.
Other securities					3,677,999			4.54
					8,386,551			10.35



Telecommunication services - 9.39%
AT&T Inc.		51,599,030			1,390,078			1.71
Global provider of telecommunication services, including local and long-distance, Internet and wireless communications.
Telefónica, SA		37,505,000			1,075,787			1.33
One of the premier providers of fixed and mobile telephone and Internet services in Spain and Latin America.
América Móvil, SAB de CV, Series L (ADR)		21,729,299			1,051,264			1.30
Latin America's largest cellular communications provider.
France Télécom SA		18,197,060			472,959			.58
The leading provider of Internet and fixed-line and cellular telephone services in France, with international interests.
Singapore Telecommunications Ltd.		185,204,810			392,145			.48
Telecommunications company primarily serving Singapore and Australia, with interests in other countries.
Other securities					3,230,285			3.99
					7,612,518			9.39



Health care - 8.81%
Bayer AG		24,168,000			1,848,736			2.28
Makes pharmaceuticals and over-the-counter medicines, and develops medical diagnostic equipment.
Novartis AG		29,056,063			1,612,779			1.99
One of the world's largest pharmaceutical companies.
Merck & Co., Inc.		30,334,900			1,098,427			1.35
Among the world's largest pharmaceutical companies, and a leader in cardiovascular medicine.
Roche Holding AG		5,451,100			891,692			1.10
A world leader in pharmaceuticals and diagnostic research.
Other securities					1,692,339			2.09
					7,143,973			8.81



Consumer staples - 8.72%
Philip Morris International Inc.		21,605,086			1,038,989			1.28
One of the world's largest international tobacco companies.
Wesfarmers Ltd.		32,635,068			888,097			1.10
Australia-based retailer that operates home improvement and convenient stores, and has a presence in coal and natural gas production, and insurance.
Anheuser-Busch InBev NV		11,132,150			555,123
Anheuser-Busch InBev NV (1)		3,247,475			24			.69
One of the world's largest brewers.
Nestlé SA		10,882,330			514,430			.63
Global packaged food and beverage company based in Switzerland.
Coca-Cola Co.		7,482,000			427,970			.53
The world's largest soft drink maker.
Other securities					3,643,090			4.49
					7,067,723			8.72



Industrials - 8.63%
AB Volvo, Class B		86,870,700			823,310			1.02
One of Sweden's major manufacturers of trucks, buses, and marine and aerospace engines.
Siemens AG		5,588,992			547,179			.67
A major worldwide producer of electrical and electronic equipment used in industrial and professional applications.
Other securities					5,627,423			6.94
					6,997,912			8.63



Consumer discretionary - 8.18%
Industria de Diseño Textil, SA		9,807,876			624,305			.77
Designs and retails up-to-the-minute clothing. Most of its shops are in Europe.
Cie. Générale des Établissements Michelin, Class B		7,579,000			574,186			.71
One of the world's largest tire makers. Its brands include Uniroyal and Goodrich.
Honda Motor Co., Ltd.		14,582,000			456,639			.56
Develops, manufactures and sells automobiles, motorcycles and power equipment globally.
Other securities					4,974,195			6.14
					6,629,325			8.18



Energy - 7.21%
Royal Dutch Shell PLC, Class B		17,777,849			507,237
Royal Dutch Shell PLC, Class A		7,850,000			233,058
Royal Dutch Shell PLC, Class A (ADR)		3,504,000			209,399
Royal Dutch Shell PLC, Class B (ADR)		689,599			39,886			1.22
A global group of energy and oil companies.
BP PLC		78,891,534			744,608			.92
One of the world's largest oil companies.
Eni SpA		29,673,000			734,505			.91
One of the world's leading oil and gas companies.
ConocoPhillips		14,165,000			733,322			.90
This global oil and natural gas company also produces plastics and chemicals.
Petróleo Brasileiro SA - Petrobras, preferred nominative (ADR)		11,173,400			503,473			.62
One of the world's largest oil companies. Engaged in exploration, production, refining, marketing and chemicals.
Other securities					2,137,494			2.64
					5,842,982			7.21



Utilities - 6.55%
GDF Suez		35,887,768			1,497,258			1.85
Major natural gas and electricity company based in France.
Fortum Oyj		22,138,000			560,941			.69
Energy company focused on the Nordic countries, Russia and the Baltic Rim area.
Scottish and Southern Energy PLC		28,634,905			525,389			.65
One of the U.K.'s largest gas and electricity companies, with more than three million customers.
Other securities					2,726,852			3.36
					5,310,440			6.55



Materials - 3.94%
Linde AG		5,780,800			710,092			.88
Major industrial gas company headquartered in Germany.
Akzo Nobel NV		8,819,000			558,714			.69
Manufactures paints, coatings and pharmaceuticals sold around the world.
Syngenta AG		1,484,000			393,458			.48
One of the world's largest agrochemical companies. Develops seeds and crop protection products.
Other securities					1,531,667			1.89
					3,193,931			3.94


Miscellaneous - 4.38%
Other common stocks in initial period of acquisition					3,548,417			4.38


Total common stocks (cost: $67,171,906,000)					76,008,817			93.77




Preferred stocks - 0.30%

Financials - 0.30%
Other securities					240,672			.30


Total preferred stocks (cost: $192,251,000)					240,672			.30




Rights - 0.05%

Miscellaneous - 0.05%
Other rights in initial period of acquisition					38,159			.05


Total rights (cost: $75,085,000)					38,159			.05




Convertible securities - 0.36%

Other - 0.28%
Other securities					232,067			.28


Miscellaneous - 0.08%
Other convertible securities in initial period of acquisition					62,298			.08


Total convertible securities (cost: $315,570,000)					294,365			.36




Bonds & notes - 0.88%

Other - 0.88%
Other securities					715,412			.88


Total bonds & notes (cost: $591,131,000)					715,412			.88


	Principal amount
Short-term securities - 4.58%		(000	)

Freddie Mac 0.17%-1.00% due 12/1/2009-6/23/2010	$	965,500			965,058			1.19
Fannie Mae 0.14%-0.51% due 3/17-10/1/2010		491,700			491,315			.61
GDF SUEZ 0.19% due 12/16-12/21/2009 (2)		239,000			238,978			.30
Eni Finance USA Inc. 0.165%-0.29% due 12/9/2009-5/4/2010 (2)		154,950			154,766			.19
BNP Paribas Finance Inc. 0.24% due 2/10/2010		50,000			49,977			.06
Société Générale North America, Inc. 0.15% due 12/1/2009		41,700			41,700			.05
Novartis Finance Corp. 0.23% due 3/1/2010 (2)		24,000			23,985			.03
Other securities					1,745,067			2.15

Total short-term securities (cost: $3,709,779,000)					3,710,846			4.58


Total investment securities (cost: $72,055,722,000)					81,008,271			99.94
Other assets less liabilities					48,047			.06

Net assets				$	81,056,318			100.00	%

"Miscellaneous" securities include holdings in their initial period of acquisition that have not previously been publicly disclosed.

"Other securities" includes all issues that are not disclosed separately in the summary investment portfolio. One of these securities (which represented less than .01% of the net assets of the fund) was valued under fair value procedures adopted by authority of the board of directors. In addition, one of these securities (with a value of $30,466,000, which represented .04% of the net assets of the fund) may be subject to legal or contractual restrictions on resale.

Investments in affiliates

A company is considered to be an affiliate of the fund under the Investment Company Act of 1940 if the fund's holdings in that company represent 5% or more of the outstanding voting shares. The value of the fund's holdings in affiliated companies is included in "Other securities" under the respective industry sectors in the summary investment portfolio. Further details on these holdings and related transactions during the year ended November 30, 2009, appear below.

									Dividend			Value of affiliates
	Beginning								income			at 11/30/09
	shares		Additions		Reductions		Ending shares			(000	)		(000	)
Air France (1) (3)		14,268,220		1,273,000		-		15,541,220	$	-		$	246,206
ComfortDelGro Corp. Ltd.		135,100,000		-		-		135,100,000		4,651			144,492
Kesa Electricals PLC		26,593,098		-		-		26,593,098		2,080			66,222
James Hardie Industries NV (4)		23,384,347		-		23,384,347		-		-			-
									$	6,731		$	456,920

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

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

(2) Purchased in a transaction exempt from registration under the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities, including those in "Other securities," was $1,386,769,000, which represented 1.71% of the net assets of the fund.

(3) This security was an unaffiliated issuer in its initial period of acquisition at 11/30/2008; it was not publicly disclosed.

(4) Unaffiliated issuer at 11/30/2009.

Key to abbreviation

ADR = American Depositary Receipts

The descriptions of the companies shown in the summary investment portfolio, which were obtained from published reports and other sources believed to be reliable, are supplemental and are not covered by the Report of Independent Registered Public Accounting Firm.

See Notes to Financial Statements

Financial statements

Statement of assets and liabilities
at November 30, 2009	(dollars in thousands)

Assets:
Investment securities, at value:
Unaffiliated issuers (cost: $71,466,155)	$	80,551,351
Affiliated issuers (cost: $589,567)		456,920	$	81,008,271
Cash denominated in currencies other than U.S. dollars
(cost: $24,137)				24,137
Cash				84
Receivables for:
Sales of investments		149,983
Sales of fund's shares		88,688
Dividends and interest		202,582
Other assets		2,683		443,936
				81,476,428
Liabilities:
Payables for:
Purchases of investments		222,889
Repurchases of fund's shares		106,177
Investment advisory services		25,038
Services provided by affiliates		56,821
Directors' deferred compensation		762
Other		8,423		420,110
Net assets at November 30, 2009			$	81,056,318

Net assets consist of:
Capital paid in on shares of capital stock			$	87,721,505
Undistributed net investment income				559,176
Accumulated net realized loss				(16,181,909	)
Net unrealized appreciation				8,957,546
Net assets at November 30, 2009			$	81,056,318

(dollars and shares in thousands, except per-share amounts)
Total authorized capital stock - 4,000,000 shares, $.01 par value (2,402,309 total shares outstanding)
	Net assets		Shares outstanding		Net asset value per share*
Class A	$	56,057,967		1,658,729	$	33.80
Class B		2,998,660		89,303		33.58
Class C		6,427,605		192,147		33.45
Class F-1		4,151,853		123,059		33.74
Class F-2		1,164,934		34,473		33.79
Class 529-A		1,796,406		53,278		33.72
Class 529-B		188,416		5,611		33.58
Class 529-C		491,007		14,627		33.57
Class 529-E		80,309		2,385		33.67
Class 529-F-1		48,448		1,436		33.75
Class R-1		217,124		6,478		33.52
Class R-2		1,269,875		37,968		33.45
Class R-3		2,208,120		65,698		33.61
Class R-4		1,839,950		54,549		33.73
Class R-5		1,598,415		47,272		33.81
Class R-6		517,229		15,296		33.82

(*) Maximum offering price and redemption price per share were equal to the net asset value per share for all share classes, except for Classes A and 529-A, for which the maximum offering prices per share were $35.86 and $35.78, respectively.

See Notes to Financial Statements

Statement of operations
for the year ended November 30, 2009				(dollars in thousands)

Investment income:
Income:
Dividends (net of non-U.S. taxes of $219,869; also includes $6,731 from affiliates)	$	2,343,195
Interest		123,687		$	2,466,882

Fees and expenses*:
Investment advisory services		258,073
Distribution services		225,850
Transfer agent services		86,385
Administrative services		33,263
Reports to shareholders		5,010
Registration statement and prospectus		14,718
Directors' compensation		915
Auditing and legal		281
Custodian		11,998
State and local taxes		999
Other		4,742
Total fees and expenses before waiver		642,234
Less investment advisory services waiver		2,084
Total fees and expenses after waiver					640,150
Net investment income					1,826,732

Net realized loss and unrealized appreciation on investments
and currency:
Net realized (loss) gain on:
Investments (including $5,768 gain from affiliates)		(11,557,904	)
Currency transactions		43,777			(11,514,127	)
Net unrealized appreciation on:
Investments		31,586,661
Currency translations		10,578			31,597,239
Net realized loss and unrealized appreciation on investments and currency					20,083,112
Net increase in net assets resulting
from operations				$	21,909,844

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

See Notes to Financial Statements



Statements of changes in net assets				(dollars in thousands)
	Year ended November 30
		2009			2008
Operations:
Net investment income	$	1,826,732		$	3,193,207
Net realized (loss) on investments and currency transactions		(11,514,127	)		(4,734,532	)
Net unrealized appreciation (depreciation) on investments and currency translations		31,597,239			(47,634,984	)
Net increase (decrease) in net assets resulting from operations		21,909,844			(49,176,309	)


Dividends and distributions paid to shareholders:
Dividends from net investment income		(2,362,285	)		(2,918,988	)
Distributions from net realized gain on investments		-			(7,845,316	)
Total dividends and distributions paid to shareholders		(2,362,285	)		(10,764,304	)


Net capital share transactions		(3,027,646	)		11,167,361

Total increase (decrease) in net assets		16,519,913			(48,773,252	)

Net assets:
Beginning of year		64,536,405			113,309,657
End of year (including undistributed
net investment income: $559,176 and $1,041,713, respectively)	$	81,056,318		$	64,536,405


See Notes to Financial Statements

Notes to financial statements

1. Organization and significant accounting policies

Organization – Capital World Growth and Income Fund, Inc. (the "fund") is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company. The fund seeks long-term growth of capital while providing current income. It invests on a global basis in a diversified portfolio consisting primarily of common stocks and other equity securities.

On November 24, 2009, shareholders approved a proposal to reorganize the fund from a Maryland corporation to a Delaware statutory trust. The reorganization is expected to be completed in 2010; however, the fund reserves the right to delay the implementation. Shareholders also approved amendments to the fund’s Investment Advisory and Service Agreement and amendments to and elimination of certain fundamental investment policies of the fund.

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

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

*Effective April 21, 2009, Class B and 529-B shares of the fund are not available for purchase.

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

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

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

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

Security valuation – Equity securities are valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market in which the security trades. Fixed-income securities, including short-term securities purchased with more than 60 days left to maturity, are valued at prices obtained from one or more independent pricing vendors when such prices are available. However, where the investment adviser deems it appropriate to do so, such securities will be valued in good faith at the mean quoted bid and asked prices that are reasonably and timely available (or bid prices, if asked prices are not available) or at prices for securities of comparable maturity, quality and type. Vendors base bond prices on, among other things, valuation matrices that incorporate dealer-supplied valuations, proprietary pricing models and evaluations of the yield curve as of approximately 3:00 p.m. New York time. Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are valued in the manner described above for either equity or fixed-income securities, depending on which method is deemed most appropriate by the investment adviser. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par when they reach 60 days or less remaining to maturity.

Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the investment adviser are fair valued as determined in good faith under guidelines adopted by authority of the fund's board of directors. Market quotations may be considered unreliable if events occur that materially affect the value of securities (particularly securities outside the U.S.) between the close of trading in those securities and the close of regular trading on the New York Stock Exchange. Various factors may be reviewed in order to make a good faith determination of a security’s fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.

Security transactions and related investment income – Security transactions are recorded by the fund as of the date the trades are executed with brokers. Realized gains and losses from security transactions are determined based on the specific identified cost of the securities. In the event a security is purchased with a delayed payment date, the fund will segregate liquid assets sufficient to meet its payment obligations. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Market discounts, premiums and original issue discounts on fixed-income securities are amortized daily over the expected life of the security.

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

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

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

2. Risk factors

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

The fund is subject to risks, including the possibility that the fund's income and the value of its portfolio holdings may fluctuate in response to events specific to the companies or markets in which the fund invests, as well as economic, political or social events in the U.S. or abroad.

The prices of, and the income generated by, the common stocks and other securities held by the fund may decline in response to certain events taking place around the world, including those directly involving the issuers whose securities are owned by the fund; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; governmental or governmental agency responses to economic conditions; and currency, interest rate and commodity price fluctuations. Investments in securities issued by entities based outside the U.S. may be subject to the risks described above to a greater extent. These investments may also be affected by currency controls; different accounting, auditing, financial reporting, disclosure and regulatory and legal standards and practices; expropriation; changes in tax policy; greater market volatility; different securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payment of dividends. These risks may be heightened in connection with investments in developing countries. Investments in securities issued by entities domiciled in the U.S. may also be subject to many of these risks.

3. Taxation and distributions

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

As of and during the period ended November 30, 2009, the fund did not have a liability for any unrecognized tax benefits. The fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the statement of operations. During the period, the fund did not incur any interest or penalties.

The fund is not subject to examination by U.S. federal tax authorities for tax years before 2005, by state tax authorities for tax years before 2004 and by tax authorities outside the U.S. for tax years before 2002.

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

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

During the year ended November 30, 2009, the fund reclassified $54,446,000 from accumulated net realized loss to undistributed net investment income; and reclassified $1,430,000 from undistributed net investment income to capital paid in on shares of capital stock to align financial reporting with tax reporting.

As of November 30, 2009, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investment securities were as follows:

	(dollars in thousands)
Undistributed ordinary income				$	794,862
Capital loss carryforwards*:
Expiring 2016	$	(2,728,750	)
Expiring 2017		(13,178,426	)		(15,907,176	)
Post-October capital loss deferrals (realized during the period November 1, 2009, through November 30, 2009)†					(362,906	)
Gross unrealized appreciation on investment securities					13,260,201
Gross unrealized depreciation on investment securities					(4,463,213	)
Net unrealized appreciation/(depreciation) on investment securities					8,796,988
Cost of investment securities					72,211,283
*The capital loss carryforwards will be used to offset any capital gains realized by the fund in future years through the expiration dates. The fund will not make distributions from capital gains while capital loss carryforwards remain.
†These deferrals are considered incurred in the subsequent year.

The tax character of distributions paid to shareholders was as follows (dollars in thousands):

	Year ended November 30, 2009						Year ended November 30, 2008
	Ordinary income		Long-term capital gains		Total distributions paid		Ordinary income		Long-term capital gains		Total distributions paid
Share class
Class A	$	1,709,423	$	-	$	1,709,423	$	2,322,238		5,599,974	$	7,922,212
Class B		76,151		-		76,151		97,747		321,740		419,487
Class C		158,321		-		158,321		205,388		677,948		883,336
Class F-1		130,498		-		130,498		189,626		436,957		626,583
Class F-2*		20,416		-		20,416		429		-		429
Class 529-A		49,808		-		49,808		53,323		122,145		175,468
Class 529-B		4,336		-		4,336		4,497		14,634		19,131
Class 529-C		10,753		-		10,753		10,913		34,438		45,351
Class 529-E		2,049		-		2,049		2,148		5,602		7,750
Class 529-F-1		1,373		-		1,373		1,396		2,907		4,303
Class R-1		4,509		-		4,509		3,840		10,685		14,525
Class R-2		27,566		-		27,566		27,134		85,402		112,536
Class R-3		55,202		-		55,202		52,031		129,495		181,526
Class R-4		49,554		-		49,554		47,281		104,313		151,594
Class R-5		55,468		-		55,468		65,469		134,604		200,073
Class R-6†		6,858		-		6,858		-		-		-
Total	$	2,362,285	$	-	$	2,362,285	$	3,083,460	$	7,680,844	$	10,764,304


*Class F-2 was offered beginning August 1, 2008.
†Class R-6 was offered beginning May 1, 2009.

4. Fees and transactions with related parties

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

Investment advisory services - The Investment Advisory and Service Agreement with CRMC provides for monthly fees accrued daily. These fees are based on a declining series of annual rates beginning with 0.600% on the first $500 million of daily net assets and decreasing to 0.350% on such assets in excess of $115 billion. CRMC waived a portion of its investment advisory services fee commencing on September 1, 2004, and terminating on December 31, 2008. During the year ended November 30, 2009, total investment advisory services fees waived by CRMC were $2,084,000. As a result, the fee shown on the accompanying financial statements of $258,073,000, which was equivalent to an annualized rate of 0.379%, was reduced to $255,989,000, or 0.376% of average daily net assets.

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

Distribution services – The fund has adopted plans of distribution for all share classes, except Classes F-2, R-5 and R-6. Under the plans, the board of directors approves certain categories of expenses that are used to finance activities primarily intended to sell fund shares and service existing accounts. The plans provide for payments, based on an annualized percentage of average daily net assets, ranging from 0.30% to 1.00% as noted below. In some cases, the board of directors has limited the amounts that may be paid to less than the maximum allowed by the plans. All share classes with a plan may use up to 0.25% of average daily net assets to pay service fees, or to compensate AFD for paying service fees, to firms that have entered into agreements with AFD to provide certain shareholder services. The remaining amounts available to be paid under each plan are paid to dealers to compensate them for their sales activities.

For Classes A and 529-A, the board of directors has also approved the reimbursement of dealer and wholesaler commissions paid by AFD for certain shares sold without a sales charge. These classes reimburse AFD for amounts billed within the prior 15 months but only to the extent that the overall annual expense limit of 0.30% is not exceeded. As of November 30, 2009, there were no unreimbursed expenses subject to reimbursement for Classes A or 529-A.

Share class	Currently approved limits	Plan limits
Class A	0.30%	0.30%
Class 529-A	0.30	0.50
Classes B and 529-B	1.00	1.00
Classes C, 529-C and R-1	1.00	1.00
Class R-2	0.75	1.00
Classes 529-E and R-3	0.50	0.75
Classes F-1, 529-F-1 and R-4	0.25	0.50

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

Administrative services – The fund has an administrative services agreement with CRMC to provide transfer agent and other related shareholder services for all share classes other than Classes A and B. Each relevant share class pays CRMC annual fees up to 0.15% (0.10% for Class R-5 and 0.05% for Class R-6) based on its respective average daily net assets. Each relevant share class also pays AFS additional amounts for certain transfer agent services. CRMC and AFS may use these fees to compensate third parties for performing these services. Each 529 share class is subject to an additional administrative services fee payable to the Commonwealth of Virginia for the maintenance of the 529 college savings plan. The quarterly fee is based on a declining series of annual rates beginning with 0.10% on the first $30 billion of the net assets invested in Class 529 shares of the American Funds and decreasing to 0.06% on such assets between $120 billion and $150 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 shares of the American Funds for the last month of the prior calendar quarter. Although these amounts are included with administrative services fees on the accompanying financial statements, the Commonwealth of Virginia is not considered a related party.

Expenses under the agreements described on the previous page for the year ended November 30, 2009, were as follows (dollars in thousands):

Share class	Distribution services	Transfer agent services	Administrative services
Share class	Distribution services	Transfer agent services	CRMC administrative services	Transfer agent services	Commonwealth of Virginia administrative services
Class A	$105,943	$81,750	Not applicable	Not applicable	Not applicable
Class B	26,470	4,635	Not applicable	Not applicable	Not applicable
Class C	54,942	Included in administrative services	$8,247	$1,583	Not applicable
Class F-1	8,736		4,684	533	Not applicable
Class F-2	Not applicable		756	44	Not applicable
Class 529-A	2,725		1,696	291	$1,426
Class 529-B	1,570		188	64	157
Class 529-C	3,902		465	134	391
Class 529-E	319		76	13	64
Class 529-F-1	-		45	8	38
Class R-1	1,609		198	60	Not applicable
Class R-2	7,550		1,502	3,376	Not applicable
Class R-3	8,547		2,531	996	Not applicable
Class R-4	3,537		2,081	68	Not applicable
Class R-5	Not applicable		1,406	27	Not applicable
Class R-6*	Not applicable		114	1	Not applicable
Total	$225,850	$86,385	$23,989	$7,198	$2,076

*Class R-6 was offered beginning May 1, 2009.

Directors’ deferred compensation – Since the adoption of the deferred compensation plan in 1993, directors who are unaffiliated with CRMC may elect to defer the cash payment of part or all of their compensation. These deferred amounts, which remain as liabilities of the fund, are treated as if invested in shares of the fund or other American Funds. These amounts represent general, unsecured liabilities of the fund and vary according to the total returns of the selected funds. Directors’ compensation of $915,000, shown on the accompanying financial statements, includes $671,000 in current fees (either paid in cash or deferred) and a net increase of $244,000 in the value of the deferred amounts.

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

5. Disclosure of fair value measurements

The fund classifies its assets and liabilities into three levels based on the method used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Level 3 values are based on significant unobservable inputs that reflect the fund’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are generally high-quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. The following table presents the fund’s valuation levels as of November 30, 2009 (dollars in thousands):

Investment securities:	Level 1		Level 2		Level 3		Total
Common stocks:
Financials	$	14,275,045	$	-	$	-	$	14,275,045
Information technology		8,386,551		-		-		8,386,551
Telecommunication services		7,612,518		-		-		7,612,518
Health care		7,143,973		-		-		7,143,973
Consumer staples		7,067,723		-		-		7,067,723
Industrials		6,997,912		-		-		6,997,912
Consumer discretionary		6,629,325		-		-		6,629,325
Energy		5,842,982		-		-		5,842,982
Utilities		5,310,440		-		-		5,310,440
Materials		3,193,931		-		-		3,193,931
Miscellaneous		3,548,417		-		-		3,548,417
Preferred stocks		-		240,672		-		240,672
Rights		38,159		-		-		38,159
Convertible securities		226,421		67,944		-		294,365
Bonds & notes		-		715,412		-		715,412
Short-term securities		-		3,710,846		-		3,710,846
Total	$	76,273,397	$	4,734,874	$	-	$	81,008,271

The following table reconciles the valuation of the fund's Level 3 investment securities and related transactions for the year ended November 30, 2009 (dollars in thousands):

	Beginning value at 12/1/2008		Net purchases		Net unrealized depreciation (*)			Net transfers out of Level 3			Ending value at 11/30/2009
Investment securities	$	-	$	63,750	$	(38,740	)	$	(25,010	)	$	-

(*) Net unrealized depreciation are included in the related amounts on investments in the statement of operations.

6. Capital share transactions

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

Share class	Sales(1)				Reinvestments of dividends and distributions				Repurchases(1)						Net (decrease) increase
	Amount		Shares		Amount		Shares		Amount			Shares			Amount			Shares
Year ended November 30, 2009
Class A	$	5,634,311		202,086	$	1,632,579		60,039	$	(10,857,239	)		(407,937	)	$	(3,590,349	)		(145,812	)
Class B		146,474		5,569		73,743		2,731		(572,222	)		(21,521	)		(352,005	)		(13,221	)
Class C		663,023		23,791		149,763		5,564		(1,340,195	)		(51,270	)		(527,409	)		(21,915	)
Class F-1		1,062,501		38,240		114,839		4,234		(1,703,989	)		(63,851	)		(526,649	)		(21,377	)
Class F-2		983,737		34,325		13,832		487		(153,120	)		(5,313	)		844,449			29,499
Class 529-A		245,229		8,767		49,793		1,831		(156,871	)		(5,846	)		138,151			4,752
Class 529-B		11,926		462		4,336		160		(14,889	)		(562	)		1,373			60
Class 529-C		81,220		2,922		10,746		397		(58,574	)		(2,176	)		33,392			1,143
Class 529-E		12,904		465		2,048		75		(8,500	)		(317	)		6,452			223
Class 529-F-1		11,134		397		1,373		51		(6,695	)		(243	)		5,812			205
Class R-1		71,826		2,580		4,454		164		(31,923	)		(1,164	)		44,357			1,580
Class R-2		359,598		13,225		27,535		1,019		(256,621	)		(9,388	)		130,512			4,856
Class R-3		677,243		24,411		55,047		2,027		(438,046	)		(15,794	)		294,244			10,644
Class R-4		618,187		22,241		49,529		1,816		(418,241	)		(15,026	)		249,475			9,031
Class R-5		597,447		21,560		53,891		1,991		(852,656	)		(31,119	)		(201,318	)		(7,568	)
Class R-6(2)		426,564		15,423		6,858		234		(11,555	)		(361	)		421,867			15,296
Total net increase
(decrease)	$	11,603,324		416,464	$	2,250,366		82,820	$	(16,881,336	)		(631,888	)	$	(3,027,646	)		(132,604	)

Year ended November 30, 2008
Class A	$	11,961,360		302,293	$	7,623,707		181,028	$	(13,282,179	)		(385,998	)	$	6,302,888			97,323
Class B		635,434		16,074		404,754		9,600		(742,987	)		(21,168	)		297,201			4,506
Class C		1,777,688		44,751		843,376		20,069		(1,950,929	)		(56,716	)		670,135			8,104
Class F-1		2,378,035		60,886		561,629		13,367		(2,130,959	)		(61,949	)		808,705			12,304
Class F-2(3)		171,088		5,477		354		10		(14,535	)		(513	)		156,907			4,974
Class 529-A		452,384		11,541		175,445		4,183		(147,382	)		(4,159	)		480,447			11,565
Class 529-B		42,218		1,084		19,129		454		(15,041	)		(427	)		46,306			1,111
Class 529-C		141,424		3,604		45,344		1,077		(57,059	)		(1,607	)		129,709			3,074
Class 529-E		19,139		497		7,749		185		(8,107	)		(224	)		18,781			458
Class 529-F-1		16,196		413		4,303		103		(6,204	)		(169	)		14,295			347
Class R-1		97,956		2,549		14,333		342		(41,763	)		(1,174	)		70,526			1,717
Class R-2		500,171		13,071		112,394		2,679		(314,287	)		(8,533	)		298,278			7,217
Class R-3		968,403		25,368		180,882		4,318		(514,400	)		(13,973	)		634,885			15,713
Class R-4		884,814		22,799		151,547		3,617		(442,681	)		(12,024	)		593,680			14,392
Class R-5		920,198		23,297		192,108		4,581		(467,688	)		(12,572	)		644,618			15,306
Total net increase
(decrease)	$	20,966,508		533,704	$	10,337,054		245,613	$	(20,136,201	)		(581,206	)	$	11,167,361			198,111

(1)Includes exchanges between share classes of the fund.
(2)Class R-6 was offered beginning May 1, 2009.
(3)Class F-2 was offered beginning August 1, 2008.

7. Investment transactions

The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $27,108,069,000 and $27,129,984,000, respectively, during the year ended November 30, 2009.

8. Subsequent events

As of January 8, 2010, the date the financial statements were available to be issued, no subsequent events or transactions had occurred that would have materially impacted the financial statements as presented.

Financial highlights(1)

			Income (loss) from investment operations(2)								Dividends and distributions
	Net asset value, beginning of period		Net investment income(3)		Net gains (losses) on securities (both realized and unrealized)			Total from investment operations			Dividends (from net investment income)			Distributions (from capital gains)			Total dividends and distributions			Net asset value, end of period		Total return(4) (5)			Net assets, end of period (in millions)		Ratio of expenses to average net assets before reimbursements/ waivers			Ratio of expenses to average net assets after reimbursements/ waivers(5)			Ratio of net income to average net assets(3) (5)
Class A:
Year ended 11/30/2009	$	25.50	$	.78	$	8.52		$	9.30		$	(1.00	)	$	-		$	(1.00	)	$	33.80		37.48	%	$	56,058		.83	%		.83	%		2.80	%
Year ended 11/30/2008		48.56		1.27		(19.81	)		(18.54	)		(1.18	)		(3.34	)		(4.52	)		25.50		(41.75	)		46,011		.75			.71			3.28
Year ended 11/30/2007		42.82		1.24		7.40			8.64			(1.10	)		(1.80	)		(2.90	)		48.56		21.23			82,899		.73			.69			2.75
Year ended 11/30/2006		36.99		.96		7.26			8.22			(.95	)		(1.44	)		(2.39	)		42.82		23.38			60,265		.73			.69			2.44
Year ended 11/30/2005		33.80		.84		3.95			4.79			(.80	)		(.80	)		(1.60	)		36.99		14.78			39,841		.76			.73			2.41
Class B:
Year ended 11/30/2009		25.34		.57		8.46			9.03			(.79	)		-			(.79	)		33.58		36.43			2,999		1.61			1.61			2.04
Year ended 11/30/2008		48.27		.96		(19.69	)		(18.73	)		(.86	)		(3.34	)		(4.20	)		25.34		(42.21	)		2,598		1.52			1.48			2.51
Year ended 11/30/2007		42.58		.89		7.36			8.25			(.76	)		(1.80	)		(2.56	)		48.27		20.29			4,731		1.50			1.46			1.98
Year ended 11/30/2006		36.79		.64		7.24			7.88			(.65	)		(1.44	)		(2.09	)		42.58		22.40			3,443		1.53			1.49			1.65
Year ended 11/30/2005		33.63		.56		3.93			4.49			(.53	)		(.80	)		(1.33	)		36.79		13.91			2,158		1.55			1.52			1.62
Class C:
Year ended 11/30/2009		25.25		.56		8.43			8.99			(.79	)		-			(.79	)		33.45		36.42			6,428		1.61			1.61			2.01
Year ended 11/30/2008		48.11		.95		(19.63	)		(18.68	)		(.84	)		(3.34	)		(4.18	)		25.25		(42.23	)		5,405		1.56			1.52			2.47
Year ended 11/30/2007		42.46		.87		7.32			8.19			(.74	)		(1.80	)		(2.54	)		48.11		20.22			9,910		1.55			1.51			1.94
Year ended 11/30/2006		36.69		.62		7.22			7.84			(.63	)		(1.44	)		(2.07	)		42.46		22.35			6,572		1.58			1.54			1.60
Year ended 11/30/2005		33.54		.54		3.93			4.47			(.52	)		(.80	)		(1.32	)		36.69		13.83			3,781		1.61			1.57			1.56
Class F-1:
Year ended 11/30/2009		25.46		.79		8.50			9.29			(1.01	)		-			(1.01	)		33.74		37.49			4,152		.82			.81			2.83
Year ended 11/30/2008		48.48		1.27		(19.78	)		(18.51	)		(1.17	)		(3.34	)		(4.51	)		25.46		(41.76	)		3,677		.76			.72			3.30
Year ended 11/30/2007		42.76		1.23		7.38			8.61			(1.09	)		(1.80	)		(2.89	)		48.48		21.22			6,406		.75			.71			2.73
Year ended 11/30/2006		36.94		.94		7.26			8.20			(.94	)		(1.44	)		(2.38	)		42.76		23.35			4,174		.76			.72			2.41
Year ended 11/30/2005		33.75		.81		3.95			4.76			(.77	)		(.80	)		(1.57	)		36.94		14.72			2,445		.82			.78			2.35
Class F-2:
Year ended 11/30/2009		25.51		.72		8.64			9.36			(1.08	)		-			(1.08	)		33.79		37.80			1,165		.58			.58			2.42
Period from 8/1/2008 to 11/30/2008		38.34		.23		(12.79	)		(12.56	)		(.27	)		-			(.27	)		25.51		(32.95	)		127		.18			.17			.83
Class 529-A:
Year ended 11/30/2009		25.45		.77		8.49			9.26			(.99	)		-			(.99	)		33.72		37.41			1,796		.87			.86			2.75
Year ended 11/30/2008		48.46		1.24		(19.76	)		(18.52	)		(1.15	)		(3.34	)		(4.49	)		25.45		(41.77	)		1,235		.80			.77			3.23
Year ended 11/30/2007		42.75		1.21		7.37			8.58			(1.07	)		(1.80	)		(2.87	)		48.46		21.13			1,791		.80			.76			2.69
Year ended 11/30/2006		36.93		.93		7.26			8.19			(.93	)		(1.44	)		(2.37	)		42.75		23.33			1,089		.79			.75			2.39
Year ended 11/30/2005		33.75		.81		3.94			4.75			(.77	)		(.80	)		(1.57	)		36.93		14.68			585		.83			.80			2.33
Class 529-B:
Year ended 11/30/2009		25.35		.54		8.46			9.00			(.77	)		-			(.77	)		33.58		36.29			188		1.70			1.69			1.95
Year ended 11/30/2008		48.28		.92		(19.70	)		(18.78	)		(.81	)		(3.34	)		(4.15	)		25.35		(42.26	)		140		1.62			1.58			2.41
Year ended 11/30/2007		42.59		.84		7.37			8.21			(.72	)		(1.80	)		(2.52	)		48.28		20.15			214		1.61			1.58			1.87
Year ended 11/30/2006		36.80		.60		7.23			7.83			(.60	)		(1.44	)		(2.04	)		42.59		22.25			142		1.64			1.60			1.53
Year ended 11/30/2005		33.64		.51		3.93			4.44			(.48	)		(.80	)		(1.28	)		36.80		13.71			81		1.70			1.67			1.46
Class 529-C:
Year ended 11/30/2009		25.34		.54		8.47			9.01			(.78	)		-			(.78	)		33.57		36.32			491		1.69			1.68			1.93
Year ended 11/30/2008		48.27		.92		(19.69	)		(18.77	)		(.82	)		(3.34	)		(4.16	)		25.34		(42.27	)		342		1.61			1.58			2.42
Year ended 11/30/2007		42.59		.84		7.36			8.20			(.72	)		(1.80	)		(2.52	)		48.27		20.17			503		1.61			1.57			1.88
Year ended 11/30/2006		36.80		.60		7.24			7.84			(.61	)		(1.44	)		(2.05	)		42.59		22.27			304		1.63			1.59			1.54
Year ended 11/30/2005		33.63		.51		3.94			4.45			(.48	)		(.80	)		(1.28	)		36.80		13.73			162		1.69			1.65			1.47
Class 529-E:
Year ended 11/30/2009		25.41		.68		8.49			9.17			(.91	)		-			(.91	)		33.67		37.03			80		1.18			1.17			2.43
Year ended 11/30/2008		48.40		1.12		(19.74	)		(18.62	)		(1.03	)		(3.34	)		(4.37	)		25.41		(41.97	)		55		1.11			1.07			2.92
Year ended 11/30/2007		42.69		1.07		7.38			8.45			(.94	)		(1.80	)		(2.74	)		48.40		20.76			83		1.10			1.07			2.38
Year ended 11/30/2006		36.89		.81		7.23			8.04			(.80	)		(1.44	)		(2.24	)		42.69		22.92			53		1.11			1.08			2.06
Year ended 11/30/2005		33.71		.69		3.94			4.63			(.65	)		(.80	)		(1.45	)		36.89		14.31			30		1.17			1.13			1.99

Class 529-F-1:
Year ended 11/30/2009	$	25.47	$	.82	$	8.50		$	9.32		$	(1.04	)	$	-		$	(1.04	)	$	33.75		37.68	%	$	49		.68	%		.67	%		2.93	%
Year ended 11/30/2008		48.50		1.31		(19.76	)		(18.45	)		(1.24	)		(3.34	)		(4.58	)		25.47		(41.66	)		31		.61			.57			3.44
Year ended 11/30/2007		42.78		1.31		7.36			8.67			(1.15	)		(1.80	)		(2.95	)		48.50		21.36			43		.60			.57			2.89
Year ended 11/30/2006		36.95		1.00		7.27			8.27			(1.00	)		(1.44	)		(2.44	)		42.78		23.55			22		.61			.58			2.56
Year ended 11/30/2005		33.75		.83		3.94			4.77			(.77	)		(.80	)		(1.57	)		36.95		14.74			12		.76			.73			2.40
Class R-1:
Year ended 11/30/2009		25.31		.57		8.45			9.02			(.81	)		-			(.81	)		33.52		36.45			217		1.58			1.58			2.02
Year ended 11/30/2008		48.22		.96		(19.67	)		(18.71	)		(.86	)		(3.34	)		(4.20	)		25.31		(42.21	)		124		1.52			1.48			2.54
Year ended 11/30/2007		42.55		.87		7.34			8.21			(.74	)		(1.80	)		(2.54	)		48.22		20.20			153		1.56			1.52			1.93
Year ended 11/30/2006		36.78		.62		7.21			7.83			(.62	)		(1.44	)		(2.06	)		42.55		22.31			86		1.60			1.56			1.58
Year ended 11/30/2005		33.63		.53		3.93			4.46			(.51	)		(.80	)		(1.31	)		36.78		13.78			44		1.63			1.58			1.54
Class R-2:
Year ended 11/30/2009		25.25		.55		8.43			8.98			(.78	)		-			(.78	)		33.45		36.34			1,270		1.66			1.66			1.95
Year ended 11/30/2008		48.11		.93		(19.62	)		(18.69	)		(.83	)		(3.34	)		(4.17	)		25.25		(42.24	)		836		1.59			1.55			2.45
Year ended 11/30/2007		42.46		.86		7.33			8.19			(.74	)		(1.80	)		(2.54	)		48.11		20.18			1,246		1.59			1.53			1.93
Year ended 11/30/2006		36.70		.62		7.20			7.82			(.62	)		(1.44	)		(2.06	)		42.46		22.34			793		1.70			1.54			1.59
Year ended 11/30/2005		33.55		.54		3.93			4.47			(.52	)		(.80	)		(1.32	)		36.70		13.83			437		1.79			1.57			1.56
Class R-3:
Year ended 11/30/2009		25.37		.69		8.48			9.17			(.93	)		-			(.93	)		33.61		37.07			2,208		1.13			1.13			2.47
Year ended 11/30/2008		48.32		1.12		(19.70	)		(18.58	)		(1.03	)		(3.34	)		(4.37	)		25.37		(41.95	)		1,397		1.09			1.05			2.95
Year ended 11/30/2007		42.63		1.07		7.36			8.43			(.94	)		(1.80	)		(2.74	)		48.32		20.77			1,901		1.10			1.07			2.39
Year ended 11/30/2006		36.83		.80		7.24			8.04			(.80	)		(1.44	)		(2.24	)		42.63		22.86			1,138		1.13			1.09			2.05
Year ended 11/30/2005		33.67		.69		3.94			4.63			(.67	)		(.80	)		(1.47	)		36.83		14.34			628		1.15			1.12			2.00
Class R-4:
Year ended 11/30/2009		25.46		.78		8.50			9.28			(1.01	)		-			(1.01	)		33.73		37.46			1,840		.83			.83			2.76
Year ended 11/30/2008		48.48		1.23		(19.75	)		(18.52	)		(1.16	)		(3.34	)		(4.50	)		25.46		(41.77	)		1,159		.79			.76			3.25
Year ended 11/30/2007		42.76		1.21		7.38			8.59			(1.07	)		(1.80	)		(2.87	)		48.48		21.13			1,509		.81			.77			2.69
Year ended 11/30/2006		36.94		.92		7.26			8.18			(.92	)		(1.44	)		(2.36	)		42.76		23.28			860		.82			.78			2.35
Year ended 11/30/2005		33.76		.79		3.96			4.75			(.77	)		(.80	)		(1.57	)		36.94		14.68			435		.84			.81			2.29
Class R-5:
Year ended 11/30/2009		25.51		.88		8.51			9.39			(1.09	)		-			(1.09	)		33.81		37.89			1,598		.53			.53			3.18
Year ended 11/30/2008		48.58		1.35		(19.80	)		(18.45	)		(1.28	)		(3.34	)		(4.62	)		25.51		(41.61	)		1,399		.50			.46			3.54
Year ended 11/30/2007		42.84		1.36		7.38			8.74			(1.20	)		(1.80	)		(3.00	)		48.58		21.49			1,921		.50			.47			3.01
Year ended 11/30/2006		37.01		1.04		7.26			8.30			(1.03	)		(1.44	)		(2.47	)		42.84		23.63			1,023		.52			.48			2.64
Year ended 11/30/2005		33.81		.91		3.96			4.87			(.87	)		(.80	)		(1.67	)		37.01		15.06			541		.54			.50			2.63
Class R-6:
Period from 5/1/2009 to 11/30/2009		26.05		.51		7.85			8.36			(.59	)		-			(.59	)		33.82		32.50			517		.49	(6)		.49	(6)		2.84	(6)

	Year ended November 30
	2009			2008			2007			2006			2005
Portfolio turnover rate for all classes of shares		44	%		37	%		30	%		30	%		26	%

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

(2)Based on average shares outstanding.

(3) For the year ended November 30, 2007, this column reflects the impact of a corporate action event that resulted in a one-time increase to net investment income. If the corporate action had not occurred, the Class A net investment income per share and ratio of net income to average net assets would have been lower by $0.13 and 0.29%, respectively. The impact to the other share classes would have been approximately the same.

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

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

(6)Annualized.

See Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Capital World Growth and Income Fund, Inc.:

In our opinion, the accompanying statement of assets and liabilities, including the summary investment portfolio, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Capital World Growth and Income Fund, Inc. (the "Fund") at November 30, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities owned at November 30, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Los Angeles, California

January 8, 2010

Expense example

unaudited

As a shareholder of the fund, you incur two types of costs: (1) transaction costs, such as initial sales charges on purchase payments and contingent deferred sales charges on redemptions (loads), and (2) ongoing costs, including management fees, distribution and service (12b-1) fees, and other expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund so you can compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2009, through November 30, 2009).

Actual expenses:

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

Hypothetical example for comparison purposes:

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

Notes:

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

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

	Beginning account value 6/1/2009		Ending account value 11/30/2009		Expenses paid during period*		Annualized expense ratio

Class A -- actual return	$	1,000.00	$	1,209.47	$	4.54		.82	%
Class A -- assumed 5% return		1,000.00		1,020.96		4.15		.82
Class B -- actual return		1,000.00		1,204.48		8.84		1.60
Class B -- assumed 5% return		1,000.00		1,017.05		8.09		1.60
Class C -- actual return		1,000.00		1,204.27		8.95		1.62
Class C -- assumed 5% return		1,000.00		1,016.95		8.19		1.62
Class F-1 -- actual return		1,000.00		1,209.21		4.49		.81
Class F-1 -- assumed 5% return		1,000.00		1,021.01		4.10		.81
Class F-2 -- actual return		1,000.00		1,210.56		3.21		.58
Class F-2 -- assumed 5% return		1,000.00		1,022.16		2.94		.58
Class 529-A -- actual return		1,000.00		1,209.03		4.76		.86
Class 529-A -- assumed 5% return		1,000.00		1,020.76		4.36		.86
Class 529-B -- actual return		1,000.00		1,204.04		9.34		1.69
Class 529-B -- assumed 5% return		1,000.00		1,016.60		8.54		1.69
Class 529-C -- actual return		1,000.00		1,204.26		9.28		1.68
Class 529-C -- assumed 5% return		1,000.00		1,016.65		8.49		1.68
Class 529-E -- actual return		1,000.00		1,207.27		6.47		1.17
Class 529-E -- assumed 5% return		1,000.00		1,019.20		5.92		1.17
Class 529-F-1 -- actual return		1,000.00		1,210.41		3.71		.67
Class 529-F-1 -- assumed 5% return		1,000.00		1,021.71		3.40		.67
Class R-1 -- actual return		1,000.00		1,204.84		8.79		1.59
Class R-1 -- assumed 5% return		1,000.00		1,017.10		8.04		1.59
Class R-2 -- actual return		1,000.00		1,204.33		9.01		1.63
Class R-2 -- assumed 5% return		1,000.00		1,016.90		8.24		1.63
Class R-3 -- actual return		1,000.00		1,207.17		6.25		1.13
Class R-3 -- assumed 5% return		1,000.00		1,019.40		5.72		1.13
Class R-4 -- actual return		1,000.00		1,209.32		4.65		.84
Class R-4 -- assumed 5% return		1,000.00		1,020.86		4.26		.84
Class R-5 -- actual return		1,000.00		1,210.84		2.94		.53
Class R-5 -- assumed 5% return		1,000.00		1,022.41		2.69		.53
Class R-6 -- actual return		1,000.00		1,211.53		2.72		.49
Class R-6 -- assumed 5% return		1,000.00		1,022.61		2.48		.49

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

Tax information

unaudited

We are required to advise you within 60 days of the fund’s fiscal year-end regarding the federal tax status of certain distributions received by shareholders during such fiscal year. The fund hereby designates the following amounts for the fund’s fiscal year ended November 30, 2009:

Foreign taxes	$0.09 per share
Foreign source income	$0.84 per share
Qualified dividend income		100	%
Corporate dividends received deduction	$	836,029,000
U.S. government income that may be exempt from state taxation	$	8,431,000

Individual shareholders should refer to their Form 1099 or other tax information, which will be mailed in January 2010, to determine the calendar year amounts to be included on their 2009 tax returns. Shareholders should consult their tax advisers.

Approval of Investment Advisory and Service Agreement

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

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

1. Nature, extent and quality of services

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

2. Investment results

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

3. Advisory fees and total expenses

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

4. Ancillary benefits

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

5. Adviser financial information

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

Board of directors and other officers

“Independent” directors

	Year first
	elected a
	director of
Name and age	the fund1	Principal occupation(s) during past five years

Joseph C. Berenato, 63	2005	Chairman, Ducommun Incorporated (aerospace
		components manufacturer)

H. Frederick Christie, 76	1993	Private investor; former President and CEO,
Chairman of the Board		The Mission Group (non-utility holding company,
(Independent and		subsidiary of Southern California Edison Company)
Non-Executive)

Robert J. Denison, 68	2005	Chair, First Security Management (private investment)

Mary Anne Dolan,4 62	2010	Founder and President, MAD Ink (communications
		company); former Editor-in-Chief, The Los Angeles
		Herald Examiner

R. Clark Hooper,4 63	2010	Private investor; former President, Dumbarton Group,
		LLC (securities industry consulting); former Executive
		Vice President — Policy and Oversight, NASD

Koichi Itoh, 69	2005	Executive Chairman of the Board, Itoh Building Co.,
		Ltd. (building management); former President,
		Autosplice KK (electronics)

Merit E. Janow, 51	2001	Professor, Columbia University, School of
		International and Public Affairs; former Member,
		World Trade Organization Appellate Body

Leonade D. Jones,4 62	2010	Co-founder, VentureThink LLC (developed and
		managed e-commerce businesses) and Versura Inc.
		(education loan exchange); former Treasurer, The
		Washington Post Company

Gail L. Neale, 74	1993	President, The Lovejoy Consulting Group, Inc. (a pro
		bono consulting group advising nonprofit
		organizations)

Robert J. O’Neill, Ph.D., 73	1993	Member of the Board of Directors, The Lowy Institute
		for International Policy Studies, Sydney, Australia;
		Chairman, Academic Advisory Committee, United
		States Studies Centre, University of Sydney,
		Australia; Chairman of Directors, Forty Seven Friends
		Pty Ltd (a not-for-profit supporting a local art and craft
		center in Australia); former Planning Director and
		acting CEO, United States Studies Centre, University
		of Sydney, Australia; former Deputy Chairman of the
		Council and Chairman of the International Advisory
		Panel, Graduate School of Government, University of
		Sydney, Australia; former Chairman of the Council,
		Australian Strategic Policy Institute; former Chichele
		Professor of the History of War and Fellow, All Souls
		College, University of Oxford; former Chairman of the
		Council, International Institute for Strategic Studies

Donald E. Petersen, 83	1993	Retired; former Chairman of the Board and CEO, Ford Motor Company

Stefanie Powers, 67	1993–1996	Actor, Producer; Co-founder and President of The
	1997	William Holden Wildlife Foundation; conservation
		consultant to Land Rover and Jaguar North America;
		author of The Jaguar Conservation Trust

Christopher E. Stone, 53	2009	Daniel and Florence Guggenheim Professor of the
		Practice of Criminal Justice, John F. Kennedy School
		of Government, Harvard University

Steadman Upham, Ph.D., 60	2001	President and Professor of Anthropology, The
		University of Tulsa; former President and Professor of
		Archaeology, Claremont Graduate University

Charles Wolf, Jr., Ph.D., 85	1993	Senior Economic Adviser and Corporate Chair in
		International Economics, The RAND Corporation;
		former Dean, The RAND Graduate School


“Independent” directors

	Number of
	portfolios
	in fund
	complex2
	overseen by
Name and age	director	Other directorships3 held by director

Joseph C. Berenato, 63	6	None

H. Frederick Christie, 76	3	AECOM Technology Corporation;
Chairman of the Board		DineEquity, Inc.;
(Independent and		Ducommun Incorporated;
Non-Executive)		SouthWest Water Company

Robert J. Denison, 68	8	None

Mary Anne Dolan,4 62	9	None

R. Clark Hooper,4 63	44	JPMorgan Value Opportunities Fund, Inc.;
		The Swiss Helvetia Fund, Inc.

Koichi Itoh, 69	6	None

Merit E. Janow, 51	41	The NASDAQ Stock Market LLC;
		Trimble Navigation Limited

Leonade D. Jones,4 62	9	None

Gail L. Neale, 74	5	None

Robert J. O’Neill, Ph.D., 73	3	None

Donald E. Petersen, 83	2	None

Stefanie Powers, 67	3	None

Christopher E. Stone, 53	6	None

Steadman Upham, Ph.D., 60	41	None

Charles Wolf, Jr., Ph.D., 85	2	None

Mary Myers Kauppila retired from the board in September 2009. The directors thank Mrs. Kauppila for her dedication and service to the fund.

“Interested” directors5

	Year first
	elected a
	director or	Principal occupation(s) during past five years and
Name, age and	officer of	positions held with affiliated entities or the
position with fund	the fund1	principal underwriter of the fund

Gina H. Despres, 68	1999	Senior Vice President, Capital Research and
Vice Chairman of the Board		Management Company; Senior Vice President,
		Capital Strategy Research, Inc.6

Mark E. Denning,4 52	1993	Senior Vice President — Capital Research Global
President		Investors, Capital Research Company;6 Director,
		Capital Research and Management Company;
		Director, Capital International Limited6


“Interested” directors5

	Number of
	portfolios
	in fund
	complex2
Name, age and	overseen by
position with fund	director	Other directorships3 held by director

Gina H. Despres, 68	4	None
Vice Chairman of the Board

Mark E. Denning,4 52	1	None
President

Other officers

	Year first
	elected	Principal occupation(s) during past five years and
Name, age and	an officer	positions held with affiliated entities or the
position with fund	of the fund1	principal underwriter of the fund

Stephen E. Bepler, 67	1993	Senior Vice President — Capital Research Global
Senior Vice President		Investors, Capital Research Company6

Michael J. Thawley, 59	2007	Senior Vice President, Capital Research and
Senior Vice President		Management Company; Senior Vice President,
		Capital Strategy Research, Inc.;6 former Australian
		Ambassador to the United States

Jeanne K. Carroll, 61	2001	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company6

Sung Lee, 43	2008	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company;6 Director, The
		Capital Group Companies, Inc.6

Jesper Lyckeus, 42	2008	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research Company6

David M. Riley, 42	2007	Senior Vice President — Capital Research Global
Vice President		Investors, Capital Research and Management
		Company

Donald H. Rolfe, 37	2008	Associate Counsel — Fund Business Management
Vice President		Group, Capital Research and Management Company

Vincent P. Corti, 53	1993	Vice President — Fund Business Management
Secretary		Group, Capital Research and Management Company

Jeffrey P. Regal, 38	2003	Vice President — Fund Business Management
Treasurer		Group, Capital Research and Management Company

Tanya Schneider, 37	2008	Assistant Vice President — Fund Business
Assistant Secretary		Management Group, Capital Research and
		Management Company

Neal F. Wellons, 38	2008	Vice President — Fund Business Management
Assistant Treasurer		Group, Capital Research and Management Company

The fund’s statement of additional information includes additional information about fund directors and is available without charge upon request by calling American Funds Service Company at 800/421-0180. The address for all directors and officers of the fund is 333 South Hope Street, Los Angeles, CA 90071, Attention: Secretary.

1Directors and officers of the fund serve until their resignation, removal or retirement.

2Capital Research and Management Company manages the American Funds, consisting of 30 funds. Capital Research and Management Company also manages American Funds Insurance Series,® which is composed of 16 funds and serves as the underlying investment vehicle for certain variable insurance contracts; American Funds Target Date Retirement Series,® Inc., which is composed of nine funds and is available through tax-deferred retirement plans and IRAs; and Endowments, which is composed of two portfolios and is available to certain nonprofit organizations.

3This includes all directorships (other than those in the American Funds or other funds managed by Capital Research and Management Company) that are held by each director as a director of a public company or a registered investment company.

4Mary Anne Dolan, R. Clark Hooper, Leonade D. Jones and Mark E. Denning were elected to the board by the fund’s shareholders effective January 1, 2010. Paul G. Haaga, Jr. retired from the board on December 31, 2009.

5“Interested persons” within the meaning of the 1940 Act, as amended, on the basis of their affiliation with the fund’s investment adviser, Capital Research and Management Company, or affiliated entities (including the fund’s principal underwriter).

6Company affiliated with Capital Research and Management Company.

Offices

Offices of the fund and of the

investment adviser

Capital Research and Management Company

333 South Hope Street

Los Angeles, CA 90071-1406

6455 Irvine Center Drive

Irvine, CA 92618

Custodian of assets

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017-2070

Transfer agent for shareholder accounts

American Funds Service Company

(Write to the address near you.)

P.O. Box 6007

Indianapolis, IN 46206-6007

P.O. Box 2280

Norfolk, VA 23501-2280

Counsel

O’Melveny & Myers LLP

400 South Hope Street

Los Angeles, CA 90071-2899

Independent registered public accounting firm

PricewaterhouseCoopers LLP

350 South Grand Avenue

Los Angeles, CA 90071-2889

Principal underwriter

American Funds Distributors, Inc.

333 South Hope Street

Los Angeles, CA 90071-1406

Investors should carefully consider the investment objectives, risks, charges and expenses of the American Funds. This and other important information is contained in the fund’s summary prospectus and prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at 800/421-0180 or visit the American Funds website at americanfunds.com.

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

A complete November 30, 2009, portfolio of Capital World Growth and Income Fund’s investments is available free of charge by calling AFS or visiting the SEC website (where it is part of Form N-CSR).

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

This report is for the information of shareholders of Capital World Growth and Income Fund, but it also may be used as sales literature when preceded or accompanied by the current summary prospectus or prospectus, which gives details about charges, expenses, investment objectives and operating policies of the fund. If used as sales material after March 31, 2010, this report must be accompanied by an American Funds statistical update for the most recently completed calendar quarter.

Results of meeting of shareholders (held November 24, 2009)

Shares outstanding (all classes) on record date (August 28, 2009): 2,412,373,940

Total shares voting on November 24, 2009: 1,561,542,903 (64.7% of shares outstanding)

Election of board members
			Percent of					Percent of
			shares			Votes		shares
Director*	Votes for		voting for			withheld		withheld

Joseph C. Berenato		1,518,161,801		97.2	%		43,381,102		2.8	%
Robert J. Denison		1,518,198,699		97.2			43,344,204		2.8
Mark E. Denning		1,518,230,796		97.2			43,312,107		2.8
Gina H. Despres		1,518,233,687		97.2			43,309,216		2.8
Mary Anne Dolan		1,518,115,410		97.2			43,427,493		2.8
R. Clark Hooper		1,518,018,947		97.2			43,523,956		2.8
Koichi Itoh		1,518,118,119		97.2			43,424,784		2.8
Merit E. Janow		1,518,029,040		97.2			43,513,863		2.8
Leonade D. Jones		1,518,074,599		97.2			43,468,304		2.8
Gail L. Neale		1,518,111,818		97.2			43,431,085		2.8
Robert J. O’Neill		1,518,042,638		97.2			43,500,265		2.8
Stefanie Powers		1,517,865,374		97.2			43,677,529		2.8
Christopher E. Stone		1,518,190,275		97.2			43,352,628		2.8
Steadman Upham		1,517,704,383		97.2			43,838,520		2.8

	Votes for		Percent of outstanding shares voting for			Votes against		Percent of outstanding shares voting against			Votes abstaining			Percent of outstanding shares abstaining

To approve an Agreement and Plan of Reorganization		1,208,997,979		50.1	%		33,660,154		1.4	%		318,884,770	†		13.2	%

			Percent of					Percent of						Percent of
			shares			Votes		shares voting			Votes			shares
	Votes for		voting for			against		against			abstaining			abstaining

To update the fund’s fundamental investment policies regarding:
Borrowing		1,205,674,138		77.2	%		37,279,713		2.4	%		318,589,052	†		20.4	%
Issuance of senior securities		1,205,041,912		77.2			36,861,096		2.3			319,639,895	†		20.5
Underwriting		1,206,304,054		77.2			35,334,050		2.3			319,904,799	†		20.5
Investments in real estate or commodities		1,203,334,597		77.1			39,124,460		2.5			319,083,846	†		20.4
Lending		1,202,424,198		77.0			39,709,861		2.5			319,408,844	†		20.5
Industry concentration		1,207,425,199		77.3			34,455,702		2.2			319,662,002	†		20.5
Elimination of certain policies		1,200,840,247		76.9			39,051,329		2.5			321,651,327	†		20.6


To approve a policy allowing CRMC to appoint subsidiary advisers for the fund's day-to-day investment management without additional shareholder approval		1,193,586,063		76.4			47,324,721		3.1			320,632,119	†		20.5


To approve amendments to the fund's Investment Advisory and Service Agreement with CRMC		1,198,359,722		76.7			40,898,011		2.7			322,285,170	†		20.6


To approve a form of Subsidiary Agreement and appointment of one or more subsidiary advisers for the fund		1,194,675,410		76.5			45,562,675		2.9			321,304,818	†		20.6


To consider a shareholder proposal regarding genocide-free investing (broker non-votes = 283,061,290)		143,389,799		11.2			1,068,221,303		83.6			66,870,511			5.2

*H. Frederick Christie, Donald E. Petersen and Charles Wolf, Jr. did not stand for election at the meeting of shareholders because they plan to retire in December 2010.

†Includes broker non-votes.

[logo - American Funds®]

The right choice for the long term®

What makes American Funds different?

For nearly 80 years, we have followed a consistent philosophy to benefit our investors. Our 30 carefully conceived, broadly diversified funds, in addition to the target date retirement series, offer opportunities that have attracted over 50 million shareholder accounts.

Our unique combination of strengths includes these five factors:

•A long-term, value-oriented approach

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

•An extensive global research effort

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

•The multiple portfolio counselor system

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

•Experienced investment professionals

American Funds portfolio counselors have an average of 25 years of investment experience, providing a depth of knowledge and broad perspective that few organizations have.

•A commitment to low management fees

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

American Funds span a range of investment objectives

•Growth funds

Emphasis on long-term growth through stocks

AMCAP Fund®

EuroPacific Growth Fund®

The Growth Fund of America®

The New Economy Fund®

New Perspective Fund®

New World Fund®

SMALLCAP World Fund®

•Growth-and-income funds

Emphasis on long-term growth and dividends through stocks

American Mutual Fund®

>Capital World Growth and Income FundSM

Fundamental InvestorsSM

International Growth and Income FundSM

The Investment Company of America®

Washington Mutual Investors FundSM

•Equity-income funds

Emphasis on above-average income and growth through stocks and/or bonds

Capital Income Builder®

The Income Fund of America®

•Balanced fund

Emphasis on long-term growth and current income through stocks and bonds

American Balanced Fund®

•Bond funds

Emphasis on current income through bonds

American High-Income TrustSM

The Bond Fund of AmericaSM

Capital World Bond Fund®

Intermediate Bond Fund of America®

Short-Term Bond Fund of AmericaSM

U.S. Government Securities FundSM

•Tax-exempt bond funds

Emphasis on tax-exempt current income through municipal bonds

American Funds Short-Term Tax-Exempt Bond FundSM

American High-Income Municipal Bond Fund®

Limited Term Tax-Exempt Bond Fund of AmericaSM

The Tax-Exempt Bond Fund of America®

State-specific tax-exempt funds

The Tax-Exempt Fund of California®

The Tax-Exempt Fund of Maryland®

The Tax-Exempt Fund of Virginia®

•Money market fund

American Funds Money Market FundSM

•American Funds Target Date Retirement Series®

The Capital Group Companies

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

Lit. No. MFGEAR-933-0110P

Litho in USA WG/Q/8072-S20685

Printed on paper containing 10% post-consumer waste

Printed with inks containing soy and/or vegetable oil

ITEM 2 – Code of Ethics

(a)	The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.

(b)	There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

(a)(1)	The Code of Ethics that is the subject of the disclosure required by Item 2 is attached as an exhibit hereto.

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

	CAPITAL WORLD GROWTH AND INCOME FUND, INC.

	By /s/ Gina H. Despres
	Gina H. Despres, Vice Chairman and Principal Executive Officer

	Date: January 29, 2010

Registrant:
	a) Audit Fees:
		2008	$102,000
		2009	$124,000

	b) Audit-Related Fees:
		2008	None
		2009	None

	c) Tax Fees:
		2008	$8,000
		2009	$8,000
		The tax fees consist of professional services relating to the preparation of the Registrant’s tax returns.

	d) All Other Fees:
		2008	None
		2009	None

Adviser and affiliates (includes only fees for non-audit services billed to the adviser and affiliates for engagements that relate directly to the operations and financial reporting of the Registrant and were subject to the pre-approval policies described below):
	a) Audit Fees:
		Not Applicable

	b) Audit-Related Fees:
		2008	None
		2009	None

	c) Tax Fees:
		2008	$5,000
		2009	$9,000
		The tax fees consist of consulting services relating to the Registrant’s investments.

	d) All Other Fees:
		2008	None
		2009	$2,000
		The other fees consist of subscription services related to an accounting research tool.

Common stocks — 93.77%	Shares			Value (000)

FINANCIALS — 17.61%
Banco Santander, SA		121,845,641		$	2,085,666
BNP Paribas SA		13,066,156			1,078,102
Société Générale		14,185,748			997,887
Industrial and Commercial Bank of China Ltd., Class H		973,494,000			822,812
Prudential PLC		75,209,580			772,738
Banco Bradesco SA, preferred nominative		29,577,179			615,839
HSBC Holdings PLC (Hong Kong)		26,720,033			312,731
HSBC Holdings PLC (United Kingdom)		20,476,231			237,794
Credit Suisse Group AG		9,295,200			481,233
AXA SA		19,515,596			464,631
Banco do Brasil SA, ordinary nominative		25,129,500			442,956
UBS AG1		28,501,810			442,113
Wells Fargo & Co.		15,000,000			420,600
UniCredit SpA1		100,248,301			342,143
JPMorgan Chase & Co.		7,740,000			328,873
China Construction Bank Corp., Class H		360,569,000			321,043
M&T Bank Corp.		4,637,700			304,140
Bank of China Ltd., Class H		529,506,000			298,593
Deutsche Bank AG		3,999,079			288,302
Itaú Unibanco Holding SA, preferred nominative (ADR)		8,888,045			197,759
Itaú Unibanco Holding SA, preferred nominative		1,771,000			38,340
Sampo Oyj, Class A		9,845,675			233,374
Canadian Imperial Bank of Commerce (CIBC)		3,500,000			227,777
Bank of New York Mellon Corp.		8,400,000			223,776
Bank of America Corp.		13,256,958			210,123
CapitaMall Trust, units		144,633,700			179,773
Hang Seng Bank Ltd.		12,242,700			179,150
Swire Pacific Ltd., Class A		14,951,500			171,616
Erste Bank der oesterreichischen Sparkassen AG		3,103,701			126,089
Barclays PLC		24,591,602			118,092
Link REIT		40,887,500			102,990
Australia and New Zealand Banking Group Ltd.		5,036,228			101,937
Banco Bilbao Vizcaya Argentaria, SA		4,572,581			86,056
QBE Insurance Group Ltd.		4,132,137			83,977
DnB NOR ASA1		7,419,300			83,297
Komercní banka, AS		365,000			79,626
Unibail-Rodamco SE, non-registered shares		350,000			78,761
Kasikornbank PCL, nonvoting depository receipt		26,250,000			67,956
Swedbank AB, Class A1		3,379,099			32,194
Swedbank AB, Class A, preference shares1		3,256,299			30,535
Grupo Financiero Banorte, SAB de CV, Series O		17,058,553			58,943
China Life Insurance Co. Ltd., Class H		11,150,000			55,826
ING Groep NV, depository receipts1		5,756,000			53,572
NIPPONKOA Insurance Co., Ltd.		8,860,000			52,819
Zurich Financial Services AG		230,000			49,554
Sun Hung Kai Properties Ltd.		3,083,000			45,711
Kimco Realty Corp.		3,632,329			44,750
Lloyds Banking Group PLC1		49,319,034			44,678
Admiral Group PLC		2,051,180			35,748
Kerry Properties Ltd.		4,932,405			25,045
Developers Diversified Realty Corp.		2,032,000			20,564
ICICI Bank Ltd.		934,200			17,462
ICICI Bank Ltd. (ADR)		4,000			149
GAGFAH SA		1,919,471			17,335
Starwood Property Trust, Inc.		750,000			14,550
Westpac Banking Corp.		612,000			13,500
Allied Capital Corp.		3,798,000			13,445
Fortis SA/NV1,2		5,765,000			—
					14,275,045


INFORMATION TECHNOLOGY — 10.35%
Microsoft Corp.		78,288,000			2,302,450
Taiwan Semiconductor Manufacturing Co. Ltd.		366,968,311			695,896
Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)		20,226,531			210,154
MediaTek Inc.		40,996,014			645,095
Oracle Corp.		19,997,000			441,534
Redecard SA, ordinary nominative		27,042,200			413,423
Canon, Inc.		8,949,100			345,633
Nintendo Co., Ltd.		1,346,200			331,163
Cia. Brasileira de Meios de Pagamento, ordinary nominative		33,722,700			316,451
Accenture PLC, Class A		7,600,000			311,904
Automatic Data Processing, Inc.		6,420,000			278,949
Acer Inc.		103,076,451			256,251
Telefonaktiebolaget LM Ericsson, Class B		24,000,000			230,033
Delta Electronics, Inc.		81,913,920			229,827
HOYA CORP.		8,438,000			215,794
HTC Corp.		12,842,075			145,480
Google Inc., Class A1		210,000			122,430
Wistron Corp.		56,470,269			103,581
Hewlett-Packard Co.		2,000,000			98,120
Intel Corp.		5,000,000			96,000
QUALCOMM Inc.		2,030,000			91,350
Siliconware Precision Industries Co., Ltd.		66,700,000			87,774
Nokia Corp. (ADR)		4,169,800			55,292
Nokia Corp.		1,971,000			25,932
Murata Manufacturing Co., Ltd.		1,693,700			80,737
Yahoo! Inc.1		4,156,000			62,215
SAP AG		1,215,000			58,000
Analog Devices, Inc.		1,563,700			46,895
Microchip Technology Inc.		1,340,000			35,175
International Business Machines Corp.		220,000			27,797
Wincor Nixdorf AG		190,000			13,112
Seagate Technology		800,000			12,104
					8,386,551


TELECOMMUNICATION SERVICES — 9.39%
AT&T Inc.		51,599,030			1,390,078
Telefónica, SA		37,505,000			1,075,787
América Móvil, SAB de CV, Series L (ADR)		21,729,299			1,051,264
France Télécom SA		18,197,060			472,959
Singapore Telecommunications Ltd.		185,204,810			392,145
Philippine Long Distance Telephone Co.		4,852,460			265,401
Philippine Long Distance Telephone Co. (ADR)		1,650,000			91,146
Koninklijke KPN NV		18,857,515			334,388
Telekom Austria AG, non-registered shares		18,337,970			318,573
Vodafone Group PLC		109,859,500			247,404
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, Class B		227,397,000			216,683
Verizon Communications Inc.		6,502,200			204,559
CenturyTel, Inc.		5,329,126			189,664
Belgacom SA		4,028,000			152,369
Turkcell Iletisim Hizmetleri AS		24,267,000			147,409
Qwest Communications International Inc.		39,904,000			145,650
Magyar Telekom Telecommunications PLC		32,790,388			130,803
Telekomunikacja Polska SA		21,938,710			127,461
OJSC Mobile TeleSystems (ADR)		2,313,137			115,842
Türk Telekomünikasyon AS, Class D		39,150,000			112,514
Telefónica 02 Czech Republic, AS		4,222,000			101,678
Advanced Info Service PCL		25,877,600			63,097
Telmex Internacional, SAB de CV, Class L (ADR)		3,545,500			54,672
NTT DoCoMo, Inc.		32,900			49,987
Telecom Italia SpA, nonvoting		35,000,000			39,564
Teléfonos de México, SAB de CV, Class L (ADR)		1,798,300			32,280
KDDI Corp.		4,800			25,999
MTN Group Ltd.		1,527,205			24,510
Orascom Telecom Holding SAE (GDR)		712,205			17,093
China Mobile Ltd.		1,608,000			15,064
Globe Telecom, Inc.		320,880			6,475
					7,612,518


HEALTH CARE — 8.81%
Bayer AG		24,168,000			1,848,736
Novartis AG		29,056,063			1,612,779
Merck & Co., Inc.		30,334,900			1,098,427
Roche Holding AG		5,451,100			891,692
Abbott Laboratories		5,195,000			283,076
Merck KGaA		2,218,920			209,083
Johnson & Johnson		3,177,000			199,643
UCB SA		3,510,000			156,128
Pfizer Inc		8,350,000			151,719
Medtronic, Inc.		3,423,800			145,306
Fresenius Medical Care AG & Co. KGaA		2,525,000			134,133
Cochlear Ltd.		2,187,675			126,503
Eli Lilly and Co.		2,000,000			73,460
AstraZeneca PLC (Sweden)		1,472,285			65,776
Teva Pharmaceutical Industries Ltd. (ADR)		1,045,000			55,166
Lonza Group Ltd.		656,299			50,804
Orion Oyj, Class B		2,024,201			41,542
					7,143,973


CONSUMER STAPLES — 8.72%
Philip Morris International Inc.		21,605,086			1,038,989
Wesfarmers Ltd.		32,635,068			888,097
Anheuser-Busch InBev NV		11,132,150			555,123
Anheuser-Busch InBev NV1		3,247,475			24
Nestlé SA		10,882,330			514,430
Coca-Cola Co.		7,482,000			427,970
Pernod Ricard SA		4,398,097			374,702
Danone SA		5,938,845			354,686
Altria Group, Inc.		16,675,000			313,657
Kraft Foods Inc., Class A		10,315,000			274,173
Wilmar International Ltd.		59,702,000			271,804
Tesco PLC		37,435,000			260,106
Diageo PLC		13,751,000			231,521
Reynolds American Inc.		4,470,282			223,335
Tingyi (Cayman Islands) Holding Corp.		86,020,000			213,121
Procter & Gamble Co.		3,000,000			187,050
PepsiCo, Inc.		2,530,000			157,417
SABMiller PLC		5,016,000			145,835
Kellogg Co.		2,468,400			129,788
Avon Products, Inc.		2,870,000			98,298
Foster’s Group Ltd.		18,200,000			93,467
Imperial Tobacco Group PLC		2,000,000			58,082
L’Oréal SA		508,100			55,080
Shoppers Drug Mart Corp.		1,185,000			48,495
Koninklijke Ahold NV		3,400,597			45,807
Sara Lee Corp.		3,400,000			41,276
Colgate-Palmolive Co.		411,000			34,602
Molson Coors Brewing Co., Class B		681,000			30,788
					7,067,723


INDUSTRIALS — 8.63%
AB Volvo, Class B		86,870,700			823,310
Siemens AG		5,588,992			547,179
Union Pacific Corp.		5,878,600			371,880
United Parcel Service, Inc., Class B		6,410,100			368,389
3M Co.		4,560,000			353,126
Lockheed Martin Corp.		4,450,900			343,743
PACCAR Inc		8,520,000			315,922
United Technologies Corp.		4,400,000			295,856
Scania AB, Class B		21,500,000			295,266
Air France1,3		15,541,220			246,206
BAE Systems PLC		43,787,000			235,984
CSX Corp.		4,256,355			202,092
General Electric Co.		12,000,000			192,240
Komatsu Ltd.		9,500,000			187,091
Singapore Technologies Engineering Ltd.		76,260,000			166,981
MAp Group		62,688,416			152,378
ComfortDelGro Corp. Ltd.3		135,100,000			144,492
Deutsche Post AG		6,962,832			130,257
Ryanair Holdings PLC (ADR)1		4,900,000			128,429
KONE Oyj, Class B		3,040,000			122,908
Qantas Airways Ltd.		51,021,413			121,220
Schneider Electric SA		1,072,018			117,225
Deutsche Lufthansa AG		7,000,000			111,630
SGS SA		81,707			104,778
Robert Half International Inc.		4,600,000			102,718
Eaton Corp.		1,600,000			102,240
Waste Management, Inc.		3,000,000			98,520
Southwest Airlines Co.		9,433,300			86,786
ASSA ABLOY AB, Class B		4,720,000			86,496
Geberit AG		500,000			86,221
Northrop Grumman Corp.		1,211,600			66,396
Sandvik AB		4,741,281			55,720
Finmeccanica SpA		2,740,000			45,339
Ellaktor SA		4,795,000			38,485
East Japan Railway Co.		485,000			34,313
Metso Oyj		1,035,000			33,259
Singapore Post Private Ltd.		43,500,000			30,649
Jiangsu Expressway Co. Ltd., Class H		34,260,000			30,372
Vallourec SA		118,000			19,720
Contax Participações SA, ordinary nominative		38,106			2,096
					6,997,912


CONSUMER DISCRETIONARY — 8.18%
Industria de Diseño Textil, SA		9,807,876			624,305
Cie. Générale des Établissements Michelin, Class B		7,579,000			574,186
Honda Motor Co., Ltd.		14,582,000			456,639
H & M Hennes & Mauritz AB, Class B		6,371,875			375,824
OPAP SA		14,822,910			355,130
British Sky Broadcasting Group PLC		40,643,900			353,503
Vivendi SA		12,095,100			348,204
Li & Fung Ltd.		80,709,000			324,940
Daimler AG		6,289,000			318,140
Renault SA1		5,304,131			256,224
Toyota Motor Corp.		6,396,300			255,199
Johnson Controls, Inc.		8,240,000			222,892
Esprit Holdings Ltd.		27,238,432			183,124
Bayerische Motoren Werke AG, nonvoting preferred		2,580,000			84,919
Bayerische Motoren Werke AG		1,675,000			78,966
McDonald’s Corp.		2,000,000			126,500
Whirlpool Corp.		1,563,730			115,966
Lowe’s Companies, Inc.		4,600,000			100,326
Time Warner Inc.4		2,703,333			77,180
Time Warner Inc.		630,000			19,353
Expedia, Inc.1		3,707,600			94,470
Billabong International Ltd.		9,133,367			87,634
Target Corp.		1,847,500			86,019
adidas AG		1,475,000			84,374
Swatch Group Ltd, non-registered shares		232,300			58,491
Swatch Group Ltd		521,655			24,930
Staples, Inc.		3,500,000			81,620
Marks and Spencer Group PLC		12,818,187			81,252
Kesa Electricals PLC3		26,593,098			66,222
Kingfisher PLC		16,730,999			65,188
News Corp., Class A		5,590,458			64,067
Carnival Corp., units1		2,000,000			64,060
Yue Yuen Industrial (Holdings) Ltd.		22,441,000			63,273
Accor SA		1,111,600			59,434
Comcast Corp., Class A		4,000,000			58,680
YUM! Brands, Inc.		1,590,000			56,079
Sherwin-Williams Co.		870,000			52,931
Porsche Automobil Holding SE, nonvoting preferred		688,282			47,859
Aristocrat Leisure Ltd.		8,517,734			31,368
Hyundai Mobis Co., Ltd.		225,000			28,792
Fairfax Media Ltd.		18,000,000			26,893
Limited Brands, Inc.		1,500,000			24,885
DSG international PLC1		39,752,154			23,938
Mattel, Inc.		1,000,000			19,460
KB Home		1,000,000			13,550
D.R. Horton, Inc.		1,200,000			12,336
					6,629,325


ENERGY — 7.21%
Royal Dutch Shell PLC, Class B		17,777,849			507,237
Royal Dutch Shell PLC, Class A		7,850,000			233,058
Royal Dutch Shell PLC, Class A (ADR)		3,504,000			209,399
Royal Dutch Shell PLC, Class B (ADR)		689,599			39,886
BP PLC		78,891,534			744,608
Eni SpA		29,673,000			734,505
ConocoPhillips		14,165,000			733,322
Petróleo Brasileiro SA — Petrobras, preferred nominative (ADR)		11,173,400			503,473
OAO Gazprom (ADR)		14,857,000			337,551
Woodside Petroleum Ltd.		7,360,905			327,912
EOG Resources, Inc.		3,325,000			287,579
Sasol Ltd.		5,737,000			225,373
TOTAL SA		3,314,000			204,882
Canadian Oil Sands Trust		5,257,800			145,621
Canadian Oil Sands Trust5		1,100,000			30,466
China National Offshore Oil Corp.		104,014,900			160,260
Husky Energy Inc.		3,456,000			90,646
OAO LUKOIL (ADR)		1,400,000			81,340
Canadian Natural Resources, Ltd.		1,040,000			69,396
PetroChina Co. Ltd., Class H		36,416,000			45,112
Schlumberger Ltd.		700,000			44,723
Marathon Oil Corp.		1,340,000			43,711
Chevron Corp.		550,000			42,922
					5,842,982


UTILITIES — 6.55%
GDF Suez		35,887,768			1,497,258
Fortum Oyj		22,138,000			560,941
Scottish and Southern Energy PLC		28,634,905			525,389
RWE AG		3,879,500			355,778
CEZ, a s		7,016,000			350,458
Public Service Enterprise Group Inc.		9,795,000			307,171
SUEZ Environnement Co.		13,109,954			291,375
Cia. Energética de Minas Gerais — Cemig, preferred nominative		14,802,676			254,170
FirstEnergy Corp.		4,495,000			193,645
E.ON AG		4,200,000			165,964
Dominion Resources, Inc.		4,456,422			162,125
Exelon Corp.		3,000,000			144,540
NTPC Ltd.		29,619,270			133,838
Hongkong Electric Holdings Ltd.		22,021,500			119,634
Veolia Environnement		3,289,303			111,251
PPL Corp.		2,260,000			68,975
Gas Natural SDG, SA		2,411,864			49,986
China Resources Power Holdings Co. Ltd.		8,800,000			17,942
					5,310,440


MATERIALS — 3.94%
Linde AG		5,780,800			710,092
Akzo Nobel NV		8,819,000			558,714
Syngenta AG		1,484,000			393,458
BASF SE		3,583,000			215,869
Koninklijke DSM NV		3,084,500			151,592
Impala Platinum Holdings Ltd.		6,231,000			144,569
CRH PLC		5,551,167			139,742
Israel Chemicals Ltd.		9,655,000			124,515
POSCO		211,230			101,225
Rautaruukki Oyj		4,696,570			97,655
Holcim Ltd1		1,240,908			89,325
Shin-Etsu Chemical Co., Ltd.		1,522,600			82,823
OneSteel Ltd.		23,534,888			64,519
ArcelorMittal		1,632,654			63,559
Usinas Siderúrgicas de Minas Gerais SA — USIMINAS, Class A, preferred nominative		2,062,750			60,247
Weyerhaeuser Co.		1,375,000			53,542
voestalpine AG		1,397,000			49,544
Givaudan SA		35,132			27,808
Makhteshim-Agan Industries Ltd.		5,235,000			25,456
Huabao International Holdings Ltd.		19,755,000			20,903
Potash Corp. of Saskatchewan Inc.		167,000			18,774
					3,193,931


MISCELLANEOUS — 4.38%
Other common stocks in initial period of acquisition					3,548,417


Total common stocks (cost: $67,171,906,000)					76,008,817



Preferred stocks — 0.30%	Shares

FINANCIALS — 0.30%
Mizuho Capital Investment (USD) 2 Ltd. 14.95%6,7		95,000,000			118,518
JPMorgan Chase & Co., Series I, 7.90%7		41,090,000			40,307
Barclays Bank PLC 14.00%7		15,565,000			32,854
Wells Fargo & Co. 7.98%7		19,074,000			17,787
Wachovia Capital Trust III 5.80%7		8,675,000			6,029
Lloyds Banking Group PLC 6.657% preference shares6,7		30,300,000			16,091
Commerzbank Capital Funding Trust I, Class B, 5.012% noncumulative7		14,250,000			9,086

Total preferred stocks (cost: $192,251,000)					240,672



Rights — 0.05%

MISCELLANEOUS — 0.05%
Other rights in initial period of acquisition					38,159

Total rights (cost: $75,085,000)					38,159


	Shares or
Convertible securities — 0.36%	principal amount

CONSUMER DISCRETIONARY — 0.25%
Ford Motor Co. Capital Trust II 6.50% convertible preferred 2032		5,559,555			196,530
Johnson Controls, Inc. 11.50% convertible preferred 2012, units		92,500			11,562
					208,092


FINANCIALS — 0.03%
Digital Realty Trust, Inc. 5.50% convertible debentures 20296	$	4,800,000			6,174
Digital Realty Trust, Inc., Series D, 5.50% convertible preferred		210,000			6,147
IMMOFINANZ AG 2.75% convertible notes 2014	€	9,800,000			11,654
					23,975


MISCELLANEOUS — 0.08%
Other convertible securities in initial period of acquisition					62,298


Total convertible securities (cost: $315,570,000)					294,365


	Principal amount
Bonds & notes — 0.88%		(000	)

FINANCIALS — 0.40%
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 4.375% 20106	$	10,000			10,146
Westfield Group 5.40% 20126		1,275			1,337
Westfield Capital Corp. Ltd., WT Finance (Australia) Pty Ltd. and WEA Finance LLC 5.125% 20146		14,525			14,807
Westfield Group 7.50% 20146		6,530			7,269
Westfield Group 5.70% 20166		13,081			13,282
Westfield Group 7.125% 20186		21,869			23,577
SLM Corp., Series A, 5.125% 2012		14,667			13,541
SLM Corp., Series A, 5.00% 2013		8,874			7,718
SLM Corp., Series A, 5.375% 2013		4,738			4,242
SLM Corp., Series A, 5.05% 2014		673			560
SLM Corp., Series A, 5.375% 2014		13,915			11,852
SLM Corp., Series A, 5.00% 2015		2,308			1,851
SLM Corp., Series A, 5.00% 2018		6,605			4,685
SLM Corp., Series A, 8.45% 2018		8,760			7,924
SLM Corp., Series A, 5.625% 2033		767			533
Simon Property Group, LP 5.60% 2011		8,750			9,223
Simon Property Group, LP 5.00% 2012		7,510			7,863
Simon Property Group, LP 5.25% 2016		7,075			7,167
Simon Property Group, LP 6.10% 2016		1,725			1,827
Simon Property Group, LP 5.875% 2017		330			344
Simon Property Group, LP 6.125% 2018		1,780			1,879
Simon Property Group, LP 10.35% 2019		11,635			15,039
ProLogis 7.625% 2014		10,830			11,623
ProLogis 5.625% 2015		9,635			9,388
ProLogis 5.625% 2016		6,085			5,785
ProLogis 5.75% 2016		585			563
ProLogis 6.625% 2018		15,075			14,709
SB Capital SA 5.93% 2011		7,000			7,332
SB Capital SA 6.48% 2013		21,600			22,869
HBOS PLC 6.75% 20186		30,755			28,643
ERP Operating LP 6.625% 2012		500			540
ERP Operating LP 5.20% 2013		2,500			2,622
ERP Operating LP 5.25% 2014		9,508			9,827
ERP Operating LP 5.125% 2016		6,356			6,331
ERP Operating LP 5.375% 2016		1,020			1,036
ERP Operating LP 5.75% 2017		3,935			4,039
AXA SA 8.60% 2030		8,000			9,325
Standard Chartered Bank 6.40% 20176		8,451			8,914
Discover Financial Services 6.45% 2017		3,057			2,940
Discover Financial Services 10.25% 2019		4,334			5,098
Developers Diversified Realty Corp. 5.50% 2015		3,744			3,333
Pan Pacific Retail Properties, Inc. 6.125% 2013		1,065			1,131
Kimco Realty Corp., Series C, 4.904% 2015		1,185			1,165
Capital One Capital III 7.686% 20367		165			141
					324,020


CONSUMER DISCRETIONARY — 0.15%
DaimlerChrysler North America Holding Corp., Series E, 5.75% 2011		53,904			57,131
DaimlerChrysler North America Holding Corp. 5.875% 2011		19,850			20,833
DaimlerChrysler North America Holding Corp. 6.50% 2013		23,675			26,161
Marks and Spencer Group PLC 6.25% 20176		100			103
Marks and Spencer Group PLC 7.125% 20376		15,550			15,364
NTL Cable PLC 9.50% 2016		5,450			5,750
					125,342


TELECOMMUNICATION SERVICES — 0.11%
Open Joint Stock Co. Vimpel Communications 8.375% 2011		2,500			2,631
VIP Finance Ireland Ltd. 8.375% 2013		12,605			13,174
Open Joint Stock Co. Vimpel Communications 9.125% 2018		18,280			19,468
Telecom Italia Capital SA, Series B, 5.25% 2013		12,850			13,721
Telecom Italia Capital SA 4.95% 2014		12,050			12,736
OJSC Mobile TeleSystems 8.375% 2010		23,096			23,905
					85,635


ENERGY — 0.08%
Gaz Capital SA, Series 13, 6.605% 2018	€	6,133		$	9,592
Gaz Capital SA 8.146% 2018	$	19,330			20,612
Gaz Capital SA, Series 9, 6.51% 2022		6,603			6,025
Open Joint Stock Co. Gazprom, Series 2, 8.625% 2034		6,737			7,436
Gaz Capital SA 7.288% 2037		19,430			17,949
Husky Energy Inc. 5.90% 2014		490			539
Husky Energy Inc. 7.25% 2019		390			457
					62,610


MATERIALS — 0.08%
CRH America Inc. 6.95% 2012		13,200			14,378
CRH America, Inc. 6.00% 2016		1,260			1,327
CRH America, Inc. 8.125% 2018		15,540			18,233
International Paper Co. 9.375% 2019		14,675			18,237
ArcelorMittal 9.85% 2019		8,000			9,873
					62,048


CONSUMER STAPLES — 0.04%
Altria Group, Inc. 9.70% 2018		6,230			7,720
Altria Group, Inc. 9.25% 2019		13,445			16,443
British American Tobacco International Finance PLC 8.125% 20136		9,000			10,603
CVS Caremark Corp. 6.943% 20308		1,025			1,087
					35,853


MORTGAGE-BACKED OBLIGATIONS8 — 0.02%
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-4, Class 6-A, 5.908% 20367		21,422			14,452


BONDS & NOTES OF GOVERNMENT AGENCIES OUTSIDE THE U.S. — 0.00%
Ireland Government Agency-Guaranteed, Anglo Irish Bank Corp. plc 1.066% 20167	€	6,300			3,123


UTILITIES — 0.00%
Progress Energy, Inc. 7.05% 2019	$	2,000			2,329


Total bonds & notes (cost: $591,131,000)					715,412



Short-term securities — 4.58%

Freddie Mac 0.17%–1.00% due 12/1/2009–6/23/2010		965,500			965,058
Fannie Mae 0.14%–0.51% due 3/17–10/1/2010		491,700			491,315
U.S. Treasury Bills 0.20%–0.23% due 6/17–7/15/2010		300,000			299,734
GDF SUEZ 0.19% due 12/16–12/21/20096		239,000			238,978
International Bank for Reconstruction and Development 0.17%–0.24% due 2/4–3/31/2010		173,100			173,062
Eni Finance USA Inc. 0.165%–0.29% due 12/9/2009–5/4/20106		154,950			154,766
Nestlé Capital Corp. 0.22% due 2/8–3/2/20106		150,000			149,951
KFW 0.21% due 1/19–2/16/20106		125,000			124,964
Procter & Gamble International Funding S.C.A. 0.22%–0.23% due 1/14–1/15/20106		108,900			108,876
Caisse d’Amortissement de la Dette Sociale 0.23%–0.285% due 1/20–3/29/2010		106,100			106,044
Calyon North America Inc. 0.16%–0.26% due 12/1/2009–2/22/2010		97,800			97,778
Canada Bills 0.22% due 3/15–3/24/2010		80,000			79,955
CBA (Delaware) Finance Inc. 0.22%–0.25% due 1/29–2/8/2010		75,000			74,979
National Australia Funding (Delaware) Inc. 0.185%–0.215% due 1/4–1/28/20106		49,000			48,982
BNZ International Funding Ltd. 0.23% due 2/5/20106		25,000			24,989
Old Line Funding, LLC 0.25% due 2/3/20106		50,211			50,187
Straight-A Funding LLC 0.20% due 2/2/20106		50,166			50,153
Rabobank USA Financial Corp. 0.26% due 1/27/2010		50,000			49,986
Toronto-Dominion Holdings USA Inc. 0.20% due 1/22/20106		50,000			49,984
BNP Paribas Finance Inc. 0.24% due 2/10/2010		50,000			49,977
Federal Home Loan Bank 0.583% due 6/8/2010		50,000			49,953
ANZ National (International) Ltd. 0.23%–0.30% due 1/25–1/27/20106		49,600			49,583
Société Générale North America, Inc. 0.15% due 12/1/2009		41,700			41,700
Bank of America Corp. 0.17%–0.26% due 12/14/2009–1/8/2010		39,400			39,392
Export Development Canada 0.20% due 4/8/2010		35,000			34,973
Québec (Province of) 0.18%–0.21% due 12/9/2009–1/11/20106		29,050			29,045
Bank of Nova Scotia 0.19% due 12/4/2009		25,000			24,999
Novartis Finance Corp. 0.23% due 3/1/20106		24,000			23,985
Yale University 0.28% due 12/1/2009		20,000			20,000
Westpac Banking Corp. 0.27% due 1/11/20106		7,500			7,498

Total short-term securities (cost: $3,709,779,000)					3,710,846


Total investment securities (cost: $72,055,722,000)					81,008,271
Other assets less liabilities					48,047

Net assets				$	81,056,318