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AMCAP FUND
Semi-Annual Report for the six months ended August 31, 1995
[The American Funds Group (R)]
AMCAP FUND (R) SEEKS LONG-TERM GROWTH OF CAPITAL BY INVESTING IN GROWING,
PROFITABLE COMPANIES.
ABOUT OUR COVER:
Computer software is a classic example of a growing, profitable business that
appears well-positioned for continued success -- the hallmark of an AMCAP
investment.
[Side Bar]
Fund results in this report were computed without a sales charge unless
otherwise indicated. Here are the total returns and average annual compound
returns with all distributions reinvested for periods ended September 30, 1995
(the most recent calendar quarter), assuming payment of the 5.75% maximum sales
charge at the beginning of the stated periods -- 10 years: +280.80%, or +14.31%
a year; 5 years: +117.70%, or +16.84% a year; 12 months: +17.68%. Sales charges
are lower for accounts of $50,000 or more.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY LOSE MONEY BY INVESTING IN THE FUND. THE SHORTER THE TIME
PERIOD OF YOUR INVESTMENT, THE GREATER THE POSSIBILITY OF LOSS. FUND SHARES ARE
NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY, THE U.S.
GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON.
[End Side Bar]
Fellow Shareholders:
The six months through August 31 were very favorable for growth stocks.
Declining interest rates, low inflation and improving corporate profits came
together to produce a positive environment for equities. As a result, it was
also a rewarding period for investors in AMCAP Fund.
For the first half of the fund's fiscal year, the value of your shares
increased by 17.0% if you reinvested the five-cent dividend and the 17-cent
capital gain distribution, both paid in May. During this period, AMCAP slightly
outpaced the 16.8% total return of the unmanaged Standard & Poor's 500
Composite Index, a widely used gauge of the U.S. stock market.
Technology stocks, AMCAP's largest single area of concentration, again provided
the fund's strongest returns. These stocks benefited from continued growth in
corporate capital spending for computers and related equipment as economies
improved around the world. In addition, the widely publicized introduction in
August of Microsoft's new operating system, Windows 95, brought added attention
and momentum to the computer industry. Its arrival has started a new product
cycle as users worldwide upgrade their computer systems.
As a result of these favorable industry trends and strong earnings, Cisco
Systems, a maker of computer inter-networking systems, rose 95.9%; Texas
Instruments, an electronic technology company that makes integrated circuits,
gained 90.2%; and Intel, a leader in the manufacture of microprocessors,
increased 54.2%. It should be noted that the fund completed the sale of its
Microsoft holding over the past six months. We felt that Microsoft share prices
had reached full value relative to other available investments. Of course, we
may again purchase shares of Microsoft -- an outstanding company -- if they
fall into an acceptable buying range in the future.
MEDIA STOCKS SIZZLE
The fund's broadcast, cable television and entertainment stocks also made a
solid contribution. Their stock prices were aided by mergers and acquisitions
and hopes for broadcast deregulation through new legislation. Beneficiaries of
prospects for deregulation include Infinity Broadcasting, the largest operator
of radio stations in the U.S. (+52.7%), and Comcast, a cable television
operator and our second-largest holding (+36.5%). Capital Cities/ABC, our
fourth- largest holding, which agreed to be acquired by Walt Disney, gained
29.9%. Disney is also one of the fund's significant holdings.
Outside of electronic technology and media, three other companies did
especially well in the recent first half. Medtronic, a leading manufacturer of
heart pacemakers and our third-largest holding, increased 57.3%. Southwest
Airlines, a specialist in low-cost air travel, and Student Loan Marketing
Association, which processes student college loans, both climbed 46.8%. All
three are long-term AMCAP holdings.
Not all stocks in the fund's portfolio prospered over the past six months.
Pricing and margin pressures impacted two of the fund's health maintenance
organizations. Humana, one of the largest health care companies in the U.S.,
fell 23.2% and U.S. Healthcare, the largest HMO in the New York-Philadelphia
corridor, declined 25.1%. Nonetheless, we believe the long-term outlook for
these two companies is solid; the managed health care industry has
good growth prospects and these companies are well-positioned.
FAVORABLE RESULTS
Your fund's return for the recent semi-annual period continues a long-term
record of favorable investment results. Over its 28 1/2 -year history through
August 31, AMCAP has compiled an average compound return, with dividends
reinvested, of 12.7% a year, decisively outpacing the 10.7% compound annual
return of the S&P 500.
Despite results like these, it is always wise to inject a note of caution. It
has been 60 months since the stock market has experienced a correction of 10%
or more. That is one reason why AMCAP has been holding a sizable portion of its
assets in cash and equivalents, amounting to 17% at the end of the fiscal
period. As the fund's results during the period might indicate, the cash
position has not been much of a hindrance. But it should give the fund some
degree of downside protection during a period of market volatility and provide
ready buying power to take advantage of opportunities when they arise.
Notwithstanding the relatively high valuations currently afforded many stocks,
we are still positive on the outlook for the kind of growth companies in which
AMCAP invests. An improving global outlook and rapid technological advances
bode well for the earnings of many of AMCAP's investments, particularly those
in electronic technology and telecommunications. As for the fund's media and
entertainment companies, two-thirds of the world's population is still
relatively unexposed to media products, and U.S. companies are dominant
producers. They should benefit as huge new markets open in Eastern Europe,
India, China, Latin America and in countries that made up the former Soviet
Union. Therefore, we believe that a good deal of that industry's growth is
still ahead.
We look forward to reporting to you again in our annual report next February.
Cordially,
Walter P. Stern
Chairman of the Board
R. Michael Shanahan
President
October 11, 1995
AMCAP FUND INVESTMENT PORTFOLIO
AUGUST 31, 1995
(unaudited)
LARGEST INDUSTRY HOLDINGS
Broadcasting & Publishing 15.77%
Business & Public Services 11.40%
Electronic Components 8.54%
Data Processing & Reproduction 7.20%
Banking 6.00%
Cash & Equivalents 17.06%
Other Industries 34.03%
LARGEST INDIVIDUAL HOLDINGS
Time Warner 3.97%
Comcast 3.41
Medtronic 3.32
Capital Cities/ABC 2.88
Intel 2.81
Federal National Mortgage 2.63
Viacom 2.21
Tele-Communications 2.00
Oracle Systems 1.78
Loctite 1.75
<TABLE>
<CAPTION>
Number Market Value Percent of
COMMON STOCKS of Shares (000) Net Assets
<S> <C> <C> <C>
BROADCASTING & PUBLISHING - 15.77%
Time Warner Inc. 3,216,000 $135,474 3.97 %
Comcast Corp., Class A 760,000 16,150
Comcast Corp., Class A special stock 4,685,625 100,155 3.41
Capital Cities/ABC, Inc. 855,000 98,325 2.88
Viacom Inc., Class B/1/ 1,550,000 75,369 2.21
Tele-Communications, Inc., Series A
TCI Group/1/
(Formerly Tele-Communications, Inc.) 2,714,000 50,209
Tele-Communications, Inc., Series A
Liberty Media Group/1/ 678,500 18,023 2.00
Infinity Broadcasting Corp., Class A/1/ 622,500 22,332 .66
LIN Television Corp./1/ 389,050 14,200 .42
Dow Jones & Co., Inc. 200,000 7,325 .22
BUSINESS & PUBLIC SERVICES - 11.40%
PacifiCare Health Systems, Inc., Class B/1/ 855,000 48,949
PacifiCare Health Systems, Inc., Class A/1/ 150,000 8,213 1.68
Pitney Bowes Inc. 1,375,000 55,859 1.64
Federal Express Corp./1/ 765,000 54,889 1.61
United HealthCare Corp. 1,250,000 52,812 1.55
WMX Technologies, Inc. 1,370,000 40,244 1.18
CUC International Inc./1/ 800,000 27,300 .80
Interpublic Group of Companies, Inc. 550,000 21,381 .63
Avery Dennison Corp. 500,000 20,500 .60
General Motors Corp., Class E 410,000 19,116 .56
Dun & Bradstreet Corp. 325,000 18,809 .55
Humana Inc./1/ 600,000 10,950 .32
U.S. Healthcare, Inc. 300,000 9,600 .28
ELECTRONIC COMPONENTS - 8.54%
Intel Corp. 1,560,000 95,745 2.81
Analog Devices, Inc./1/ 1,425,000 49,341 1.45
Texas Instruments Inc. 600,000 44,925 1.32
Motorola, Inc. 600,000 44,850 1.31
Seagate Technology/1/ 500,000 22,125 .65
ADC Telecommunications, Inc./1/ 460,000 17,825 .52
AMP Inc. 400,000 16,250 .48
DATA PROCESSING & REPRODUCTION - 7.20%
Oracle Systems Corp./1/ 1,512,500 60,689 1.78
International Business Machines Corp. 375,000 38,766 1.14
Sybase, Inc./1/ 1,124,200 36,115 1.06
Solectron Corp./1/ 829,400 29,444 .86
Apple Computer, Inc. 390,000 16,770 .49
Tandem Computers Inc./1/ 1,278,900 15,667 .46
Digital Equipment Corp./1/ 350,000 14,612 .43
Sequent Computer Systems, Inc./1/ 560,000 13,230 .39
Electronic Arts/1/ 200,000 7,600 .22
Cisco Systems, Inc./1/ 100,000 6,562 .19
Silicon Graphics, Inc./1/ 100,000 4,225 .13
Novell, Inc./1/ 100,000 1,800 .05
BANKING - 6.00%
Golden West Financial Corp. 1,246,800 59,535 1.75
Banc One Corp. 1,362,688 45,820 1.34
Norwest Corp. 1,400,000 42,175 1.24
Northern Trust Corp. 675,000 30,375 .89
PNC Bank Corp. 775,000 20,344 .60
SunTrust Banks, Inc. 100,000 6,137 .18
HEALTH & PERSONAL CARE - 5.90%
Medtronic, Inc. 1,200,000 113,250 3.32
Pyxis Corp./1/ 1,550,000 35,069 1.03
Boston Scientific Corp./1/ 550,000 21,862 .64
Amgen Inc./1/ 436,200 20,883 .61
Perrigo Co./1/ 425,000 5,737 .17
Upjohn Co. 100,000 4,238 .13
TELECOMMUNICATIONS - 5.63%
Cellular Communications, Inc.,
preference shares/1/ 1,095,000 59,678 1.75
Telephone and Data Systems, Inc. 1,200,000 49,200 1.44
AirTouch Communications/1/ 1,250,000 40,625 1.19
MCI Communications Corp. 850,000 20,453 .60
AT&T Corp. 150,000 8,475 .25
Cellular Communications of Puerto
Rico, Inc./1/ 249,998 7,687 .23
LIN Broadcasting Corp./1/ 46,100 5,924 .17
FINANCIAL SERVICES - 5.04%
Federal National Mortgage Assn. 940,000 89,652 2.63
Student Loan Marketing Assn. 700,000 37,888 1.11
ADVANTA Corp., Class B 500,000 18,688
ADVANTA Corp., Class A 155,000 6,413 .74
Capital One Financial Corp. 740,000 19,240 .56
LEISURE & TOURISM - 3.83%
Walt Disney Co. 1,000,000 56,125 1.65
Harrah's Entertainment, Inc./1/ 1,130,000 36,019 1.06
Marriott International, Inc. 500,000 17,750 .52
Luby's Cafeterias, Inc. 525,000 10,434 .30
Promus Hotel Corp./1/ 500,000 10,313 .30
BEVERAGES & TOBACCO - 3.08%
Philip Morris Companies Inc. 785,000 58,581 1.72
PepsiCo, Inc. 600,000 27,150 .80
UST Inc. 700,000 19,075 .56
CHEMICALS - 2.29%
Loctite Corp. 1,245,900 59,803 1.75
Nalco Chemical Co. 525,000 18,375 .54
RECREATION & OTHER CONSUMER PRODUCTS - 1.50%
Duracell International Inc. 952,900 42,523 1.25
Hasbro, Inc. 270,000 8,741 .25
INSURANCE - 1.28%
American International Group, Inc. 337,500 27,211 .80
Cincinnati Financial Corp. 315,000 16,380 .48
TRANSPORTATION: AIRLINES - 1.04%
Delta Air Lines, Inc. 210,000 15,619 .46
AMR Corp./1/ 150,000 10,575 .31
Southwest Airlines Co. 350,250 9,063 .27
MERCHANDISING - 0.87%
Toys "R" Us, Inc./1/ 1,000,000 26,000 .77
Lands' End, Inc./1/ 200,000 3,475 .10
FOOD & HOUSEHOLD PRODUCTS - 0.70%
Colgate-Palmolive Co. 350,000 23,800 .70
METALS: STEEL - 0.59%
Worthington Industries, Inc. 1,000,000 20,000 .59
ENERGY SOURCES - 0.50%
Helmerich & Payne, Inc. 600,000 17,175 .50
MACHINERY & ENGINEERING - 0.38%
Thermo Electron Corp./1/ 300,000 12,937 .38
AEROSPACE & MILITARY TECHNOLOGY - 0.23%
General Motors Corp., Class H 200,000 7,975 .23
CONSTRUCTION & HOUSING - 0.11%
Jacobs Engineering Group Inc./1/ 150,000 3,806 .11
MISCELLANEOUS
Other common stocks in initial period of
acquisition 36,125 1.06
--------- -----
TOTAL COMMON STOCKS (cost: $1,732,841,000) 2,827,103 82.94
--------- -----
Principal
Amount
SHORT-TERM SECURITIES (000)
CORPORATE SHORT-TERM NOTES - 16.62%
Xerox Corp. 5.68%-5.75% due 9/12-10/6/95 $70,400 70,098 2.06
U S WEST Communications Inc. 5.63%-5.70%
due 9/13-9/20/95 70,100 69,915 2.05
Wal-Mart Stores Inc. 5.62%-5.71% due 9/7-10/27/95 69,600 69,264 2.03
National Rural Utilities Cooperative Finance Corp.
5.70%-5.80% due 9/12-10/11/95 68,750 68,422 2.01
General Electric Capital Corp.
5.65%-5.87% due 9/8-10/19/95 62,700 62,439 1.83
AT&T Corp. 5.68% due 10/12/95 44,500 44,205 1.30
Hewlett-Packard Co. 5.60%-5.67% due 10/31-11/30/95 41,000 40,442 1.19
Vermont American Corp. 5.70%-5.71%
due 9/15-10/11/95 37,207 37,039 1.09
PACCAR Financial Corp. 5.69%-5.73% due 9/5-11/10/95 35,000 34,748 1.02
American Express Credit Corp. 5.70% due 33,400 33,189 .97
9/21-10/20/95
Chevron Oil Finance Co. 5.73%-5.74% due 9/6-9/8/95 21,700 21,679 .63
Texaco Inc. 5.70%-5.73% due 9/1/95 15,000 14,998 .44
FEDERAL AGENCY DISCOUNT NOTES- 0.71%
Federal Home Loan Mortgage Corp. 5.64% due 9/25/95 24,290 24,195 .71
-------- -----
TOTAL SHORT-TERM SECURITIES (cost:
$590,639,000) 590,633 17.33
-------- -----
TOTAL INVESTMENT SECURITIES (cost:
$2,323,480,000) 3,417,736 100.27
Excess of payables over cash and receivables 9,118 .27
NET ASSETS $3,408,618 100.00 %
</TABLE>
/1/ Non-income-producing securities.
See Notes to Financial Statements
COMMON STOCKS APPEARING IN THE
PORTFOLIO SINCE FEBRUARY 28, 1995
Boston Scientific
Capital One Financial
Cisco Systems
Digital Equipment
Dow Jones
Harrah's Entertainment
PacifiCare Health Systems
Perrigo
Promus Hotel
Seagate Technology
Silicon Graphics
Solectron
Sybase
Thermo Electron
Viacom
COMMON STOCKS ELIMINATED FROM THE
PORTFOLIO SINCE FEBRUARY 28, 1995
Arthur J. Gallagher
Bay Networks
Compaq Computer
Lotus Development
Microsoft
Promus Companies
Signet Banking
AMCAP FUND Financial Statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilities
AT AUGUST 31, 1995 (DOLLARS IN THOUSANDS) (UNAUDITED)
- ------------------------------------------- ----------- ------------
<S> <C> <C>
Assets:
Investment securities at market
(COST: $2,323,480) $3,417,736
Cash 191
Receivables for--
Sales of investments $3,640
Sales of fund's shares 3,548
Dividends and accrued interest 3,178 10,366
----------- ------------
3,428,293
Liabilities:
Payables for--
Purchases of investments 14,592
Repurchases of fund's shares 2,413
Management services 1,151
Accrued expenses 1,519 19,675
----------- ------------
NET ASSETS AT AUGUST 31, 1995--
EQUIVALENT TO $14.12 PER SHARE ON
241,381,041 SHARES OF $1 PAR VALUE
capital stock outstanding (authorized
capital stock--300,000,000 shares) $3,408,618
============
STATEMENT OF OPERATIONS FOR THE SIX
MONTHS ENDED AUGUST 31, 1995 (DOLLARS IN THOUSANDS) (UNAUDITED)
----------- ------------
Investment Income:
Income:
Dividends $ 14,715
Interest 16,987 $ 31,702
-----------
Expenses:
Management services fee 6,464
Distribution expenses 3,000
Transfer agent fee 1,350
Reports to shareholders 151
Registration statement and prospectus 70
Postage, stationery and supplies 335
Directors' fees 52
Auditing and legal fees 44
Custodian fee 51
Other expenses 7 11,524
----------- ------------
Net investment income 20,178
------------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 165,818
Net increase in unrealized
appreciation on investments:
Beginning of period 781,966
End of period 1,094,256
-----------
Net unrealized appreciation
on investments 312,290
------------
Net realized gain and unrealized
appreciation on investments 478,108
------------
Net Increase in Net Assets Resulting
from Operations $ 498,286
============
See Notes to Financial Statements
Statement of Changes in Net
Assets
- --------------------------------------------- ----------- -----------------
SIX MONTHS ENDED YEAR ENDED
AUGUST 31, 1995* FEBRUARY 28, 1995
Operations: ----------- -----------------
Net investment income $ 20,178 $ 33,784
Net realized gain on investments 165,818 131,656
Net unrealized appreciation (depreciation)
on investments 312,290 (72,698)
----------- -----------------
Net increase in net assets resulting
from operations 498,286 92,742
----------- -----------------
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (12,003) (30,685)
Distributions from net realized
gain on investments (40,810) (222,989)
----------- -----------------
Total dividends and distributions (52,813) (253,674)
----------- -----------------
Capital Share Transactions:
Proceeds from shares sold:
16,786,358 AND 35,758,474
shares, respectively 221,328 435,956
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
3,873,887 and 19,996,561 shares,
respectively 49,579 237,314
Cost of shares repurchased:
21,146,202 and 49,806,739
shares, respectively (277,877) (605,581)
----------- -----------------
Net increase(decrease)in net assets
resulting from capital share transactions (6,970) 67,689
----------- -----------------
Total Increase (Decrease) in Net Assets 438,503 (93,243)
Net Assets:
Beginning of period 2,970,115 3,063,358
----------- -----------------
End of period (including undistributed
NET INVESTMENT INCOME OF $15,834 AND
$7,659, RESPECTIVELY) $3,408,618 $2,970,115
=========== =================
</TABLE>
* Unaudited
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. AMCAP Fund, Inc. (the "fund") is registered under the Investment Company
Act of 1940 as an open-end, diversified management investment company. The
following paragraphs summarize the significant accounting policies consistently
followed by the fund in the preparation of its financial statements:
Common stocks traded on a national securities exchange (or reported on the
NASDAQ national market) and securities traded in the over-the-counter market
are stated at the last reported sales price on the day of valuation; other
securities and securities for which no sale was reported on that date, are
stated at the last quoted bid price. Short-term securities with original or
remaining maturities in excess of 60 days are valued at the mean of their
quoted bid and asked prices. Short-term securities with 60 days or less to
maturity are valued at amortized cost, which approximates market value.
Securities for which market quotations are not readily available are valued at
fair value as determined in good faith by the Valuation Committee of the Board
of Directors.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis.
Discounts on securities purchased are amortized over the life of the respective
securities. The fund does not amortize premiums on securities purchased.
Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $51,000 includes $10,000 that was paid by these credits
rather than in cash.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of August 31, 1995, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $1,094,256,000, of which
$1,124,825,000 related to appreciated securities and $30,569,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the six months ended August 31, 1995.
The cost of portfolio securities for book and federal income tax purposes was
$2,323,480,000 at August 31, 1995.
3. The fee of $6,464,000 for management services was paid pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Directors of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.485% of the first $1 billion of average net assets;
0.385% of such assets in excess of $1 billion but not exceeding $2 billion;
0.355% of such assets in excess of $2 billion but not exceeding $3 billion;
0.335% of such assets in excess of $3 billion but not exceeding $5 billion;
0.32% of such assets in excess of $5 billion but not exceeding $8 billion; and
0.31% of such assets in excess of $8 billion.
Pursuant to a Plan of Distribution, the fund may expend up to 0.25% of its
average net assets annually for any activities primarily intended to result in
sales of fund shares, provided the categories of expenses for which
reimbursement is made are approved by the fund's Board of Directors. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the six months ended August 31,
1995, distribution expenses under the Plan were $3,000,000. As of August 31,
1995, accrued and unpaid distribution expenses were $1,398,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $1,350,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $352,000 (after allowances
to dealers) as its portion of the sales charges paid by purchasers of the
fund's shares. Such sales charges are not an expense of the fund and, hence,
are not reflected in the accompanying statement of operations.
Directors who are unaffiliated with CRMC may elect to defer part or all of
the fees earned for services as members of the Board. Amounts deferred are not
funded and are general unsecured liabilities of the fund. As of August 31,
1995, aggregate amounts deferred were $105,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Directors and officers of the fund
are or may be considered to be affiliated with CRMC, AFS, and AFD. No such
persons received any remuneration directly from the fund.
4. As of August 31, 1995, accumulated undistributed net realized gain on
investments was $165,271,000 and additional paid-in capital was $1,891,876,000.
The fund made purchases and sales of investment securities,
excluding short-term securities, of $415,058,000 and $517,390,000,
respectively, during the six months ended August 31, 1995.
AMCAP FUND
Per-Share Data and Ratios
<TABLE>
<CAPTION>
Six months
ended Year February 28 or 29
ended
August 31,
<S> <C> <C> <C> <C> <C> <C>
1995/1/ 1995 1994 1993 1992 1991
--------- ------- ------ ------ ------ ------
Net Asset Value, Beginning
of Period $12.28 $12.98 $13.52 $13.23 $11.57 $10.87
--------- ------- ------ ------ ------ ------
Income from Investment
OPERATIONS:
Net investment income .08 .14 .12 .13 .17 .22
Net realized and unrealized
gain on investments 1.98 .24 1.28 .63 2.10 1.44
--------- ------ ------ ------ ------ ------
Total income from investment
operations 2.06 .38 1.40 .76 2.27 1.66
--------- ------ ------ ------ ------ ------
Less Distributions:
Dividends from net investment
income (.05) (.13) (.12) (.15) (.15) (.25)
Distributions from net realized
gains (.17) (.95) (1.82) (.32) (.46) (.71)
--------- ------ ------ ------ ------ ------
Total distributions (.22) (1.08) (1.94) (.47) (.61) (.96)
--------- ------ ------ ------ ------ ------
Net Asset Value, End of Period $14.12 $12.28 $12.98 $13.52 $13.23 $11.57
========= ====== ====== ====== ====== ======
Total Return/2/ 16.96% 3.41% 11.31% 5.94% 20.41% 16.76%
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $3,409 $2,970 $3,063 $3,016 $2,796 $2,205
Ratio of expenses to average
net assets .36%/3/ .71% .72% .73% .75% .79%
Ratio of net income to
average net assets .64%/3/ 1.16% .89% 1.02% 1.37% 2.08%
Portfolio turnover rate 15.85%/3/ 17.92% 22.18% 14.72% 7.74% 16.32%
</TABLE>
/1/ Unaudited
/2/ This was calculated without deducting a sales charge. The maximum sales
charge is 5.75% of the fund's offering price.
/3/ Based on operations for the period shown and, accordingly, not
representative of a full year's operations.
Directors
Guilford C. Babcock, San Marino, California
Associate Professor of Finance,
School of Business Administration,
University of Southern California
Charles H. Black, Pacific Palisades, California
Private investor and consultant;
former Executive Vice President and Director,
KaiserSteel Corporation
Martin Fenton, Jr., San Diego, California
Chairman of the Board,
Senior Resource Group, Inc.
(senior living centers management)
Herbert Hoover III, Pasadena, California
Private investor
Gail L. Neale, Middlebury, Vermont
Executive Vice President of the Salzburg
Seminar; former Director of Development and
of the Capital Campaign, Hampshire College
Kirk P. Pendleton, Southampton, Pennsylvania
President, Cairnwood, Inc.
(venture capital investment)
James W. Ratzlaff, San Francisco, California
Vice Chairman of the Board,
Capital Research and Management Company
Henry E. Riggs, Claremont, California
President and Professor of Engineering,
Harvey Mudd College
R. Michael Shanahan, Los Angeles, California
President of the fund
Chairman of the Board,
Capital Research and Management Company
Walter P. Stern, New York, New York
Chairman of the Board of the fund
Chairman of the Board,
Capital Group International, Inc.
Charles Wolf, Jr., Ph.D., Santa Monica, California
Dean, The RAND Graduate School;
Senior Economic Adviser,
The RAND Corporation
Chairman Emeritus
James D. Fullerton, Pasadena, California
Retired; former Chairman of the Board,
The Capital Group Companies, Inc.
Other Officers
Gordon Crawford, Los Angeles, California
Senior Vice President of the fund
Senior Vice President and Director,
Capital Research Company
Paul G. Haaga, Jr., Los Angeles, California
Senior Vice President of the fund
Senior Vice President and Director,
Capital Research and Management Company
Gregory W. Wendt, San Francisco, California
Vice President of the fund
Vice President, Capital Research Company
Julie F. Williams, Los Angeles, California
Secretary of the fund
Vice President -- Fund Business
Management Group, Capital Research and Management Company
Mary C. Cremin, Brea, California
Treasurer of the fund
Senior Vice President -- Fund Business Management Group, Capital Research and
Management Company
Robert P. Simmer, Norfolk, Virginia
Assistant Treasurer of the fund
Vice President -- Fund Business Management Group, Capital Research and
Management Company
OFFICES OF THE FUND AND
OF THE INVESTMENT ADVISER,
CAPITAL RESEARCH AND
MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
TRANSFER AGENT FOR
SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Morrison & Foerster
345 California Street
San Francisco, California 94104-2675
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
[Side Bar]
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR SECURITIES DEALER OR FINANCIAL PLANNER, OR CALL THE FUND'S
TRANSFER AGENT, TOLL-FREE, AT 800/421-0180.
This report is for the information of shareholders of AMCAP Fund, but it may
also be used as sales literature when preceded or accompanied by the current
prospectus, which gives details about charges, expenses, investment objectives
and operating policies of the fund. If used as sales material after December
31, 1995, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
Litho in USA MCS/CG/2729
Lit. No. AMCAP-013-1095
[The American Funds Group (R)]
[End Side Bar]
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