<PAGE> PAGE 1
000 B000000 07/31/96
000 C000000 0000032859
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 ENDOWMENTS, INC.
001 B000000 811-1884
001 C000000 4154219360
002 A000000 FOUR EMBARCADERO CENTER
002 B000000 SAN FRANCISCO
002 C000000 CA
002 D010000 94111
002 D020000 4125
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
007 C011100 11
007 C011200 12
007 C011300 13
007 C011400 14
007 C011500 15
007 C011600 16
007 C011700 17
007 C011800 18
007 C011900 19
007 C012000 20
007 C012100 21
007 C012200 22
007 C012300 23
007 C012400 24
007 C012500 25
007 C012600 26
007 C012700 27
007 C012800 28
<PAGE> PAGE 2
007 C012900 29
007 C013000 30
008 A000001 CAPITAL RESEARCH AND MANAGEMENT COMPANY
008 B000001 A
008 C000001 801-8055
008 D010001 LOS ANGELES
008 D020001 CA
008 D030001 90071
008 D040001 1402
012 A000001 AMERICAN FUNDS SERVICE COMPANY
012 B000001 84-00316
012 C010001 BREA
012 C020001 CA
012 C030001 92622
012 C040001 2205
013 A000001 DELOITTE & TOUCHE LLP
013 B010001 LOS ANGELES
013 B020001 CA
013 B030001 90017
013 B040001 1532
015 A000001 CHASE MANHATTAN BANK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 38
019 C000000 CRMCFNDGRP
020 A000001 BEAR, STEARNS SECURITIES CORP.
020 B000001 13-3604093
020 C000001 11
020 A000002 CS FIRST BOSTON CORP.
020 B000002 13-5659485
020 C000002 6
020 A000003 CANTOR, FITZGERALD & CO., INC.
020 B000003 13-3680184
020 C000003 5
020 A000004 SMITH BARNEY INC.
020 B000004 13-1912900
020 C000004 4
020 A000005 PAINEWEBBER INC.
020 B000005 13-2638166
020 C000005 3
020 A000006 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
020 B000006 13-5674085
020 C000006 3
020 A000007 INSTINET CORP.
020 B000007 13-3443395
020 C000007 3
<PAGE> PAGE 3
020 A000008 GOLDMAN, SACHS & CO.
020 B000008 13-5108880
020 C000008 2
020 A000009 OPPENHEIMER & CO., INC.
020 B000009 13-2798343
020 C000009 2
020 A000010 SCHRODER WERTHEIM & CO., INC.
020 B000010 13-2697272
020 C000010 2
021 000000 52
022 A000001 ASSOCIATES CORP. OF NORTH AMERICA
022 B000001 74-1494554
022 C000001 180707
022 D000001 0
022 A000002 CS FIRST BOSTON CORP.
022 B000002 13-5659485
022 C000002 29709
022 D000002 2094
022 A000003 GOLDMAN, SACHS & CO.
022 B000003 13-5108880
022 C000003 30201
022 D000003 1595
022 A000004 LEHMAN BROTHERS INC.
022 B000004 13-2518466
022 C000004 20374
022 D000004 0
022 A000005 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000005 13-5674085
022 C000005 18700
022 D000005 996
022 A000006 GENERAL ELECTRIC CAPITAL CORP.
022 B000006 13-1500700
022 C000006 17386
022 D000006 0
022 A000007 MORGAN (J.P.) SECURITIES INC.
022 B000007 13-3224016
022 C000007 9313
022 D000007 1290
022 A000008 MORGAN STANLEY & CO., INC.
022 B000008 13-2655998
022 C000008 7812
022 D000008 80
022 A000009 BANKERS TRUST CO.
022 B000009 13-4941247
022 C000009 4229
022 D000009 0
022 A000010 FORD MOTOR CREDIT CO.
022 B000010 38-1612444
022 C000010 4046
022 D000010 0
023 C000000 337111
<PAGE> PAGE 4
023 D000000 6651
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 556
028 A020000 0
028 A030000 0
028 A040000 530
028 B010000 54
028 B020000 373
028 B030000 0
028 B040000 507
028 C010000 949
028 C020000 0
028 C030000 0
028 C040000 232
028 D010000 193
028 D020000 0
028 D030000 0
028 D040000 1375
028 E010000 149
028 E020000 366
028 E030000 0
028 E040000 328
028 F010000 347
028 F020000 0
028 F030000 0
028 F040000 1423
028 G010000 2248
028 G020000 739
028 G030000 0
028 G040000 4395
028 H000000 0
029 000000 N
030 A000000 0
<PAGE> PAGE 5
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
034 000000 N
035 000000 0
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 N
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 150000
048 A020000 0.500
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 150000
048 K020000 0.400
049 000000 N
050 000000 N
<PAGE> PAGE 6
051 000000 N
052 000000 N
053 A000000 Y
053 B000000 Y
053 C000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 N
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 50000
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
<PAGE> PAGE 7
066 C000000 N
066 D000000 N
066 E000000 Y
066 F000000 N
066 G000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 N
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 N
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 N
070 M010000 Y
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 18036
071 B000000 22376
071 C000000 46569
071 D000000 39
072 A000000 12
072 B000000 730
<PAGE> PAGE 8
072 C000000 1574
072 D000000 0
072 E000000 0
072 F000000 301
072 G000000 0
072 H000000 0
072 I000000 0
072 J000000 3
072 K000000 0
072 L000000 0
072 M000000 0
072 N000000 14
072 O000000 46
072 P000000 0
072 Q000000 0
072 R000000 30
072 S000000 10
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 28
072 X000000 432
072 Y000000 0
072 Z000000 1872
072AA000000 6352
072BB000000 0
072CC010000 0
072CC020000 727
072DD010000 1976
072DD020000 0
072EE000000 3711
073 A010000 0.6100
073 A020000 0.0000
073 B000000 1.1500
073 C000000 0.0000
074 A000000 77
074 B000000 0
074 C000000 12908
074 D000000 0
074 E000000 0
074 F000000 46272
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 79
074 M000000 0
074 N000000 59336
074 O000000 0
074 P000000 25
<PAGE> PAGE 9
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 6
074 S000000 0
074 T000000 59305
074 U010000 3186
074 U020000 0
074 V010000 18.61
074 V020000 0.00
074 W000000 0.0000
074 X000000 143
074 Y000000 0
075 A000000 0
075 B000000 59959
076 000000 0.00
077 A000000 Y
077 B000000 Y
078 000000 N
080 A000000 NATIONAL UNION FIRE INSURANCE COMPANY
080 B000000 CHUBB CUSTOM INSURANCE 2)ICI MUTUAL INSURANCE
080 C000000 65000
081 A000000 Y
081 B000000 51
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
SIGNATURE PATRICK F. QUAN
TITLE SECRETARY
INDEPENDENT AUDITORS' REPORT
Endowments, Inc.:
In planning and performing our audit of the financial statements of
Endowments, Inc. ("the Fund") for the year ended July 31, 1996, we
considered its internal control structure, including procedures for
safeguarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control structure.
The management of the Fund is responsible for establishing and
maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required
to assess the expected benefits and related costs of internal
control structure policies and procedures. Two of the objectives
of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's
authorization and recorded properly to permit preparation of
financial statements in conformity with generally accepted
accounting principles.
Because of inherent limitations in any internal control structure,
errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is
subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure
that might be material weaknesses under standards established by
the American Institute of Certified Public Accountants. A material
weakness is a condition in which the design or operation of the
specific internal control structure elements does not reduce to a
relatively low level the risk that errors and irregularities in
amounts that would be material in relation to the financial
statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their
assigned functions. However, we noted no matters involving the
internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined
above as of July 31, 1996.
This report is intended solely for the information and use of
management and the Securities and Exchange Commission.
Deloitte & Touche LLP
August 30, 1996
Los Angeles, California
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUL-31-1996
<PERIOD-START> AUG-1-1995
<PERIOD-END> JUL-31-1996
<INVESTMENTS-AT-COST> 50,547
<INVESTMENTS-AT-VALUE> 59,180
<RECEIVABLES> 79
<ASSETS-OTHER> 77
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 59,336
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 31
<TOTAL-LIABILITIES> 31
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 42,553
<SHARES-COMMON-STOCK> 3,186,313
<SHARES-COMMON-PRIOR> 3,142,057
<ACCUMULATED-NII-CURRENT> 158
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 4,775
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 8,633
<NET-ASSETS> 59,305
<DIVIDEND-INCOME> 1,574
<INTEREST-INCOME> 731
<OTHER-INCOME> 0
<EXPENSES-NET> 433
<NET-INVESTMENT-INCOME> 1,872
<REALIZED-GAINS-CURRENT> 6,352
<APPREC-INCREASE-CURRENT> (727)
<NET-CHANGE-FROM-OPS> 7,497
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,976
<DISTRIBUTIONS-OF-GAINS> 3,711
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 279,532
<NUMBER-OF-SHARES-REDEEMED> 518,349
<SHARES-REINVESTED> 283,073
<NET-CHANGE-IN-ASSETS> 2,570
<ACCUMULATED-NII-PRIOR> 261
<ACCUMULATED-GAINS-PRIOR> 2,134
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 301
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 433
<AVERAGE-NET-ASSETS> 59,959
<PER-SHARE-NAV-BEGIN> 18.06
<PER-SHARE-NII> .58
<PER-SHARE-GAIN-APPREC> 1.73
<PER-SHARE-DIVIDEND> .61
<PER-SHARE-DISTRIBUTIONS> 1.15
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 18.61
<EXPENSE-RATIO> .007
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
