ANNUAL REPORT
for the year ended February 29, 1996
AMCAP FUND
Our largest industry holding and where it's going ...
The American Funds Group(r)
AMCAP FUND(r) seeks long-term growth of capital by investing in growing,
profitable companies.
AMCAP's Total Return Year by Year
For the past 10 fiscal years (ended 2/28 or 2/29)
1987 +30.3%
1988 -3.1
1989 +9.6
1990 +14.0
1991 +16.8
1992 +20.4
1993 +5.9
1994 +11.3
1995 +3.4
1996 +29.3
Total return over entire 10-year period +249.7
Average compound rate of return over the past 10 years +13.3
AMCAP's Lifetime Results
For the period 5/1/67 to 2/29/96 with all distributions reinvested
<TABLE>
<CAPTION>
Total
Return Average
Annual
Compound
Return
<S> <C> <C>
AMCAP 3,195.9% 12.9%
Standard & Poor's 500 Composite Index 1,958.8 11.1
Average Savings Institution* 495.2 6.4
Consumer Price Index (inflation) 368.0 5.5
</TABLE>
*Based upon figures supplied by the U.S. League of Savings Institutions and the
Federal Reserve Board that reflect all kinds of savings deposits, including
longer term certificates. Unlike investments in the fund, such deposits are
insured and, if held to maturity, offer a guaranteed return of principal and
a fixed rate of interest, but no opportunity for capital growth. Maximum
allowable interest rates were imposed by law until 1983.
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 March 31, 1996 (the
most recent calendar quarter), assuming payment of the 5.75% maximum sales
charge at the beginning of the stated periods:
Total Average Annual
Return Compound Return
10 years +210.93% +12.01%
Five years +70.06 +11.20
One year +17.60 -
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.
FELLOW SHAREHOLDERS:
A year ago at this time, we reported that the Federal Reserve's efforts to curb
inflation had resulted in meager gains for the stock market and your fund. This
year our message is an entirely different one. A happy mix of low inflation,
growing corporate earnings and declining interest rates powered stocks to
record highs. AMCAP's portfolio of growth stocks participated in the
exceptional gains.
For the 12 months ended February 29, the value of your investment rose
29.3% if you reinvested dividends totaling 17 cents a share and capital gain
distributions totaling $1.19 a share. It was the strongest year for AMCAP since
fiscal 1987 and the sixth-strongest year in the fund's 29-year history.
AMCAP's results for the year did not keep pace with the 34.7% total return
of the unmanaged Standard & Poor's 500 Composite Index, a broad gauge of the
U.S. stock market. The primary reason was that the fund held an average of
about 16% of its assets in cash and equivalents throughout the year. The index,
of course, is fully invested and has no expenses.
Although cash drags down returns in a high-flying market, it is a comfort
in a period of market volatility and economic uncertainty. It has been well
over five years since U.S. stocks have declined as much as 10%. Over the past
60 years that is the longest such period, with an average time between market
corrections of only 21 months. A sizable cash position provides downside
protection and, more importantly, gives the fund the flexibility to purchase
shares of proven growth companies at lower prices following market declines.
AMCAP's lifetime record illustrates the point that, over the long run, a
carefully selected portfolio of companies with consistent growth of earnings
and cash flow can do better than market indexes. Over its 29-year lifetime
through February 29, AMCAP's 12.9% average annual compound return was well
ahead of the S&P 500's 11.1% return.
In the recent 12 months, health care and financial services stocks
provided many of the fund's strongest price gains. Medtronic, the leading maker
of implantable cardiovascular devices such as pacemakers, gained 91.3%, spurred
by growing sales of new products. United HealthCare, a manager and owner of
health maintenance organizations, increased 51.7%, benefiting from the growing
emphasis on managed medical care and lower costs. Both companies are among
AMCAP's 10 largest holdings.
Declining interest rates helped financial services stocks. The price of
Federal National Mortgage, the federally sponsored mortgage company widely
known as "Fannie Mae," gained 64.0%. Student Loan Marketing, the provider of
student loans known as "Sallie Mae," increased 124.1% in value. Both are
significant AMCAP holdings.
Although the stock market as a whole climbed to new highs in a fairly
smooth ascent, it was a volatile year for technology stocks. They soared at the
beginning of the year and faltered in the second half. Two AMCAP holdings stood
out. Intel, a maker of microprocessors and one of our larger holdings, ended
with a gain of 47.7% after bouncing around considerably. Cisco Systems, a maker
of computer inter-networking systems, rose 183.6%. These stocks benefited from
continued growth in corporate spending on computers and related equipment.
But not all our technology holdings increased. Apple Computer fell 30.4%,
Sequent Computer Systems declined 31.4% and Tandem Computers was off 43.4%.
Earnings and sales disappointments hurt these stocks in the highly competitive
computer industry.
Entertainment and media companies, our largest industry holding, turned in
solid results. Capital Cities/ABC, the broadcasting and publishing concern,
gained 47.5% after agreeing to be acquired by Walt Disney, which itself had a
22.7% increase. Infinity Broadcasting, the largest operator of radio stations
in the U.S., rose 75.5% because of strong earnings growth and increasing market
share in metropolitan radio markets.
Again, not all entertainment and media companies gained equally. Concern
over new competition for cable television and a delay in passage of
telecommunications legislation hurt Comcast (+25.1%), Tele-Communications, TCI
Group (+22.7%) and Time Warner (+10.7%), three concerns with large cable
television operations. Telephone companies and direct satellite television
distributors are stepping up their efforts to gain market share from cable
television operators.
Over the long run, powerful worldwide demographic, political and economic
trends and unique industry characteristics favor these companies and their
products. We invite you to read a special report on entertainment and media
companies and their future, which begins on page 4. This, of course, is only
one example of the kind of dynamic industries in which AMCAP invests.
We seek to buy these growing, profitable businesses when their value is
not widely recognized. Not all of our investments will work out as well as we
might hope, but in-depth research and careful selection raise the odds that we
will achieve the fund's objective.
No matter what the coming year brings, we will continue to monitor
developments that affect your holdings and to search for companies with
consistent records of earnings and cash flow growth. We look forward to
reporting to you in six months.
Cordially,
Walter P. Stern
Chairman of the Board
R. Michael Shanahan
President
April 11, 1996
Charting the Course of an Investment in AMCAP
Here's how a $10,000 investment in AMCAP grew between May 1, 1967 - when the
fund began operations - and February 29, 1996.
As you can see, that $10,000 would have grown to $310,345 with all
distributions reinvested, a gain of 3,003%. Over the same period, $10,000 would
have grown to $205,875 if invested in Standard & Poor's 500 Composite Index.
The chart also records the fund's progress relative to the rate of inflation as
measured by the Consumer Price Index.
The fund's year-by-year results appear in the table under the chart. You can
use this table to estimate how much the value of your own holdings has grown.
Let's say, for example, that you have been reinvesting all your dividends and
capital gain distributions since February 28, 1986. At that time, according to
the table, the value of the investment illustrated here was $88,738. Since
then, it has more than tripled in value to $310,345. Thus, in that same 10-year
period, the value of your investment - regardless of its size - has also more
than tripled.
How a $10,000 Investment Has Grown
Average Annual Compound Returns*
(for periods ended February 29, 1996)
Ten Years +12.67%
Five Years +12.33
One Year +21.84
*Assumes reinvestment of all distributions and payment of the 5.75% maximum
sales charge at the beginning of the stated periods.
$310,345/1/ /2/
AMCAP with dividends reinvested
$205,875
Standard & Poor's 500 Composite Index with dividends reinvested
$46,798/3/
Consumer Price Index (inflation)
$10,000/1/
original investment
Average annual compound return for 28-3/4 years
12.7%/1/
<TABLE>
<CAPTION>
YEAR ENDED 1968* 1969 1970 1971 1972 1973
FEB. 28 OR 29
TOTAL VALUE
<S> <C> <C> <C> <C> <C> <C>
Dividends - $75 190 200 244 228
reinvested
Value at $10,057 12,212 11,835 12,643 14,902 13,978
Year-End/1/
AMCAP 0.6% 21.4 -3.1 6.8 17.9 -6.2
Total Return
YEAR ENDED 1974 1975 1976 1977 1978 1979
FEB. 28 OR 29
TOTAL VALUE
Dividends 196 294 328 208 263 335
reinvested
Value at 11,037 9,903 13,883 14,173 16,612 22,738
Year-End/1/
AMCAP -21.0 -10.3 40.2 2.1 17.2 36.9
Total Return
YEAR ENDED 1980 1981 1982 1983 1984 1985
FEB. 28 OR 29
TOTAL VALUE
Dividends 438 724 2,594 1,231 1,591 1,944
reinvested
Value at 33,541 40,548 42,643 61,456 62,128 72,165
Year-End/1/
AMCAP 47.5 20.9 5.2 44.1 1.1 16.2
Total Return
YEAR ENDED 1986 1987 1988 1989 1990 1991
FEB. 28 OR 29
TOTAL VALUE
Dividends 1,548 1,629 3,017 3,167 3,160 3,293
reinvested
Value at 88,738 115,664 112,037 122,827 140,027 163,492
Year-End/1/
AMCAP 23.0 30.3 -3.1 9.6 14.0 16.8
Total Return
YEAR ENDED 1992 1993 1994 1995 1996
FEB. 28 OR 29
TOTAL VALUE
Dividends 2,156 2,252 1,918 2,399 3,363
reinvested
Value at 196,856 208,557 232,137 240,047 310,345
Year-End/1/
AMCAP 20.4 5.9 11.3 3.4 29.3
Total Return
</TABLE>
/1/These figures, unlike those shown earlier in this report, reflect payment of
the maximum sales charge of 5.75% on the $10,000 investment. Thus, the net
amount invested was $9,425. As outlined in the prospectus, the sales charge is
reduced for larger investments. There is no sales charge on dividends or
capital gain distributions that are reinvested in additional shares. The
maximum initial sales charge was 8.5% prior to July 1, 1988. Results shown do
not take into account income or capital gain taxes.
/2/Includes reinvested dividends of $38,985 and reinvested capital gain
distributions of $136,252.
/3/Computed from data supplied by the U.S. Department of Labor, Bureau of Labor
Statistics.
#For the period May 1, 1967 (when the fund began operations) through February
29, 1968.
The indexes are unmanaged and do not reflect sales charges, commissions or
expenses.
Past results are not predictive of future results.
ENTERTAINMENT
ENTERTAINMENT AND MEDIA COMPANIES: WHY THEY MAKE SENSE FOR AMCAP
If you're a casual observer of the movie business, you might get the idea that
entertainment companies are in deep trouble. Magazine, newspaper and television
reports tell the story of movie companies releasing an ever-increasing number
of new films despite only slightly growing U.S. movie attendance. Production
and marketing costs are rising sharply. The hottest movie stars are demanding -
and getting - bigger and bigger salaries and more lucrative production deals.
Sylvester Stallone recently signed a three-film deal worth $60 million, while
Jim Carrey, Harrison Ford, Mel Gibson and Tom Cruise all command $20 million
per picture. And much-hyped big-budget pictures like Waterworld and Cutthroat
Island have produced disappointing returns at the U.S. box office.
Does this mean that entertainment and media companies - prominent AMCAP
holdings - face a questionable future? The answer might surprise you. There
will always be ups and downs among the entertainment and media stocks that
AMCAP owns, as there are in any industry. Some companies will succeed and
others will falter. Managements are not all equal. But powerful worldwide
economic, political, demographic and technological trends, and unique industry
characteristics make many of these companies potentially outstanding long-term
investments. As for the stars' big salaries: "I've been following the movie
industry for 24 years, and every year the stars have gotten more money and
everybody has wrung their hands about it," says Gordon Crawford, a portfolio
counselor for Capital Research and Management Company (CRMC), the investment
adviser to AMCAP Fund. "No one likes to pay huge salaries, but you could
justify paying the stars even more money. It's a very profitable business, and
they draw people into theaters."
MORE THAN JUST MOVIE COMPANIES
Of course, the major entertainment companies in which AMCAP invests are far
more than just movie companies. Walt Disney, Time Warner and Viacom - three of
the fund's 10 largest holdings - are involved in almost every facet of
delivering information, entertainment and leisure. "They produce a stream of
products and control lucrative brand names that can't be duplicated by other
companies," says Tim Armour, a long-time CRMC research analyst who recently
joined AMCAP as a portfolio counselor.
Time Warner owns such potent print franchises as Time, People and Sports
Illustrated magazines and the Book-of-the-Month Club. It also owns the Home Box
Office cable network, the Warner Bros. movie studio, Looney Tunes, DC Comics
and record labels such as Atlantic, Warner Bros. and Elektra.
Everyone knows Disney for theme parks and movies, but not many realize
that Disney is also a major retailer with its Disney Stores. And with the
acquisition of Capital Cities/ABC, Disney has acquired the ABC Television
Network and majority ownership of the ESPN sports network.
Besides movie theaters and Paramount Pictures, Viacom owns cable channels
such as MTV, Nickelodeon and Showtime, the Blockbuster video store chain, and
the nation's largest book publisher, Simon & Schuster.
The big mistake people make when they forecast gloom and doom for
Hollywood is that they focus only on U.S. box office growth and the rising
costs of making movies. But U.S. box office returns now make up only about 12%
of a movie's ultimate revenues, according to Crawford. Today more revenues come
from movie distribution overseas than in the U.S., and companies are
continually finding ways to wring new profits from old products.
UNIQUE
While U.S. box office receipts gained only 2% in 1995, the foreign box office
rose 16%, according to a survey by Variety, a show business newspaper.
Seventeen American films generated more than $100 million each at theaters in
foreign markets in 1995, while only seven achieved that level of revenue in the
U.S.
Regardless of how well a movie does in theaters, it then moves to the home
videocassette market. In 1995, home video sales in the U.S. increased sharply,
while video rentals held their own. On top of those revenues, if the movie's a
big box office success, there's a bonanza from computer games, toys, clothing,
lunch boxes, theme park rides and other uses.
WHY ENTERTAINMENT COMPANIES ARE UNIQUE
The entertainment industry has unique characteristics that set it apart from
most other businesses.
One thing stands out to portfolio counselor Crawford: "The entertainment
business is one of the few businesses in the world where manufacturers never
actually sell their product. They rent it to theaters who charge us to see it.
They rent it to television networks who package it with advertising for us to
watch. Or they replicate a copy of it on a CD or a videocassette which they
sell to us. All the while, they jealously maintain the ownership of the
underlying copyright - the negative in the case of a film or television show,
or the master in the case of recorded music." No wonder the late movie actor
Dick Powell once quipped: "The most positive thing about the movie business is
the negative."
A successful movie can create a franchise that is renewable and keeps
generating new products virtually forever. Examples of this are easy to find in
AMCAP's portfolio of entertainment companies. Take Time Warner, the fund's
second-largest holding. Time Warner owns DC Comics, which owns the classic
comic character Batman. In 1989, Warner Bros. made a movie called Batman, based
loosely on a comic strip that originated in 1939 and a campy television series
made in the 1960s. Batman was such a success that two more Batman movies were
made. The third, Batman Forever, was the top-grossing U.S. film in 1995. In
all, the three Batman films have generated more than $1 billion in worldwide
box office receipts. On top of that, Time Warner reaps revenues from worldwide
home video sales and rentals, a Batman animated television series, Batman toys
and T-shirts and even "Batman the Ride" at Time Warner's seven U.S. Six Flags
theme parks. A fourth Batman film, Batman and Robin, will be released next year
with new villains. DC Comics also owns Superman and Wonder Woman. These
evergreen trademarks and one-of-a-kind copyrights are an unending source of new
products and revenues.
TECHNOLOGY
TECHNOLOGY IS A FRIEND
In the entertainment industry, technology is a friend. Companies that make
computers or chips or disk drives must constantly invest heavily in research
and development to avoid becoming obsolete. But entertainment companies are
"undiluted beneficiaries of the evolution of technology," Crawford says.
A brief history explains why. Until the turn of the century, there was
little leverage for the human creativity of actors or musicians on the scale of
what the printing press did for writers. In 1888, Thomas Edison began working
on the Kinetoscope and, in 1894, the first Kinetoscope parlor, or nickelodeon,
opened in New York. The motion picture industry was born. An entertainer's work
could then be enjoyed in multiple locations simultaneously. Sound was added in
the late 1920s and color in the 1930s. Then came the invention of radio and,
after World War II, the introduction of television broadcasting. Radio and
television allowed an entertainer's work to be distributed direct to the home,
not to a theater where people had to gather. Color television came in the
1950s, cable television in the 1960s, pay television and the videocassette
recorder in the 1970s and digital satellite delivery in the 1990s.
The same progression can be seen in the music industry - from Thomas
Edison's invention of the phonograph in 1877 through the evolution of 78s,
33-1/3 s, 8-tracks, cassettes and compact discs.
Today, a consumer can watch or listen to what he or she wants, whenever he or
she wants, with an abundance of choice and a quality of audio and visual
fidelity to the original performance undreamed of only a few years ago.
The net result has been a dramatic increase in the amount of entertainment
consumed. "This means both new entertainment and the constant reuse of library
and catalog product, which costs companies very little to reproduce," says CRMC
analyst David Siminoff, who advises AMCAP portfolio counselors. The increase
has come because of vastly improved quality, declining costs and tremendous
ease of use. Every technological development has expanded the market; none has
hurt it.
"Every time a technological breakthrough occurs, Disney sells more copies
of Snow White and the Seven Dwarfs," Crawford says.
UP NEXT: THE DIGITAL VIDEO DISC
Now on the horizon are the digital television, flat-screen television,
high-density television, the digital video disc, surround digital sound,
video-on-demand, and much, much more. The launch of the digital video disc in
the second half of this year should provide a major new opportunity for AMCAP
holdings like Time Warner, Walt Disney and Viacom to exploit their massive film
libraries. Home digital video discs, or DVDs, will be far superior to
videocassettes in both picture and sound quality. The DVD standard, agreed upon
by nine entertainment software and hardware companies in late 1995, is for a
compact disc that can hold up to four hours of video. The DVD is also
compatible with CD-ROM technology and is capable of storing more than 12 times
as much information as today's audio CD or multimedia CD-ROMs.
The first DVD players should be introduced in stores later this year at
prices from $500 to $700. More than 200 movie titles will be available by
Christmas at prices from $20 to $30. The value of entertainment company movie
libraries should be enhanced as home videocassette libraries are replaced by
DVDs, just as records were replaced by CDs during the 1980s.
WORLDWIDE
VAST NEW FOREIGN MARKETS ARE OPENING
A strong worldwide economic and political trend favoring AMCAP's entertainment
and media holdings is the number of vast new markets opening up. There are
currently no significant revenues for American movie companies in China, the
former Soviet Union, Eastern Europe and India. "But these countries have
billions of people," Crawford says. "As trade barriers fall, copyrights are
enforced, and technology enters these markets, more and more film, television
and recorded music will be consumed. The disposable income of people is
increasing and population growth in these markets is high."
A number of other developing nations are already contributing a growing
revenue stream to U.S. entertainment companies. Indonesia, Malaysia, Thailand,
Taiwan, South Korea and the Philippines are well on the way to becoming
significant markets for U.S. products. "More and more television stations in
these countries are being privatized, opening new channels for American
television shows and movies," says Armour. VCRs and cable television have just
begun to make inroads into homes. "These are huge markets to be tapped," he
says.
THE POWER OF THE FOREIGN BOX OFFICE
Top Ten Movies of 1995, Worldwide Box Office Grosses
MOVIE TOTAL
Die Hard with a Vengence $353.7
Batman Forever 333.6
Apollo 13 331.3
Pocahontas 317.1
Casper 277.2
Waterworld 254.6
Goldeneye 219.1
Forrest Gump* 195.2
Dumb and Dumber 187.3
Outbreak 185.9
WHY U.S. ENTERTAINMENT COMPANIES DOMINATE
In many ways, it's odd how thoroughly U.S.-based companies dominate the
entertainment business around the world. You'd think every culture would want
to be entertained in a manner consistent with its humor and emotional makeup.
But for better or worse, the whole world prefers to be entertained by
Hollywood. According to a 1996 survey by Variety, films by the major Hollywood
companies accounted for 99% of the U.S. box office and 87% of the foreign box
office in 1995. It used to be that only American action movies sold well
overseas. That's no longer the case. It now seems that the world can't get
enough of American comedies, dramas and romances, too. In 1995, Pocahontas,
Forrest Gump, Dumb and Dumber, The Bridges of Madison County, and While You
Were Sleeping each made more than $100 million in overseas markets even though
they are American stories.
Siminoff doubts that foreign entertainment companies can compete
successfully with the U.S. "Hollywood evolved over a 100-year period. The
complexity involved in that transformation is enormous. Good luck trying to
develop another society which can create all of that infrastructure on a global
basis with all the financial acumen you need to make the business work and the
literary sensitivity to make good product."
A special breed of entrepreneurial executive has emerged in the U.S.
entertainment and media business, one who blends a wide range of skills. Ted
Turner, who founded Turner Broadcasting System, and Sumner Redstone, chief
executive of Viacom, are just two.
Turner inherited a nearly bankrupt billboard company in South Carolina
from his father 30 years ago. Largely ignored when he bought a UHF television
station in Atlanta, he put it up on a satellite and launched superstation WTBS
in 1976. People laughed when he started an all-news cable channel called CNN in
1981. It was dubbed "The Chicken Noodle Network" by disdainful network news
executives. He was derided when he "overpaid" for the MGM film library in 1986
and launched the TNT network. Many were unimpressed when he bought the
Hanna-Barbera cartoon studio and began The Cartoon Network. But the laughter
died down some time ago, and subsided altogether when Turner sold his company
to Time Warner for $11 billion.
Redstone started with a small, family-owned chain of drive-in theaters in
the Boston area and built it into the most profitable movie theater chain in
the world. Using that company, National Amusements, as a base, he acquired
Viacom in a highly leveraged hostile takeover in 1987. He reached an agreement
to acquire Paramount Pictures in 1993, then became embroiled in a takeover
battle with Barry Diller, another entertainment entrepreneur. He ultimately won
by agreeing to buy Blockbuster Entertainment for $8 billion which helped to
finance the winning Paramount bid. Along the way, he managed to stay alive when
caught in a hotel fire in Boston. As reported in the local press, he hung by
one hand from a windowsill until rescued.
What does all this mean for AMCAP shareholders? A confluence of favorable
worldwide trends, a history of uniqueness and a number of effective
entrepreneurs give the entertainment business strong investment potential. But
even with this bright future, there are risks, Crawford points out. "Can these
companies keep their managements intact? Will they be able to execute their
game plans? Just because there is a good macroeconomic environment doesn't mean
that all companies will succeed - or that they will prosper equally," he says.
Still, there's no denying the big picture. "What has made the entertainment
business so rewarding in the past, and what we believe will continue to make it
so in the future is, simply, that it is an extraordinary business. As the song
goes, $There's no business like show business.'"
Please keep in mind that our views on the companies discussed here, and the
fund's ownership of their stocks, may change at any time depending on market or
economic conditions.
AMCAP Fund Investment Portfolio
February 29, 1996
Largest Industry Holdings
Broadcasting & Publishing 15.10%
Business & Public Services 14.83
Financial Services 6.93
Health & Personal Care 6.92
Electronic Components 6.60
Other Industries 36.36
Cash & Equivalents 13.26
Largest Individual Common Stock Holdings
Medtronic 3.73%
Time Warner 3.72
Federal National Mortagage 3.22
Capital Cities/ABC 3.02
PacifiCare Health Systems 2.55
Comcast 2.51
Philip Morris 2.24
Walt Disney 2.22
United HealthCare 2.21
Viacom 1.97
<TABLE>
<CAPTION>
Number Market Value Percent of
COMMON STOCKS of Shares (000) Net Assets
- ---------------------- -------- ------------ ----------
<S> <C> <C> <C>
BROADCASTING & PUBLISHING - 15.10%
Time Warner Inc. 3,216,000 $137,484 3.72%
Capital Cities/ABC, Inc. 855,000 111,578 3.02
Comcast Corp., Class A special stock 4,475,000 87,822
Comcast Corp., Class A 260,000 5,005 2.51
Viacom Inc., Class B/1/ 1,850,000 72,612 1.97
Tele-Communications, Inc., Series A,
TCI Group/1/ 2,714,000 56,994 1.54
Infinity Broadcasting Corp., Class A/1/ 622,500 25,678 .70
LIN Television Corp./1/ 629,050 21,545 .58
Tele-Communications, Inc., Series A,
Liberty Media Group/1/ 778,500 21,506 .58
A. H. Belo Corp. 500,000 17,500 .48
BUSINESS & PUBLIC SERVICES - 14.83%
PacifiCare Health Systems, Inc., Class B/1/ 855,000 80,370
PacifiCare Health Systems, Inc., Class A/1/ 150,000 13,950 2.55
United HealthCare Corp. 1,250,000 81,563 2.21
Pitney Bowes Inc. 1,375,000 66,344 1.80
Federal Express Corp./1/ 715,000 52,910 1.43
General Motors Corp., Class E 675,000 38,559 1.04
Manpower Inc. 1,150,000 36,081 .98
CUC International Inc./1/ 1,100,000 35,612 .96
Loewen Group Inc. (Canada) 1,200,000 34,200 .93
Avery Dennison Corp. 500,000 26,937 .73
Interpublic Group of Companies, Inc. 550,000 23,169 .63
First Data Corp. 250,000 17,313 .47
Humana Inc./1/ 600,000 14,700 .40
WMX Technologies, Inc. 405,000 11,543 .31#
Value Health, Inc./1/ 200,000 5,175 .14
American Management Systems, Inc./1/ 200,000 4,800 .13
Vivra Inc./1/ 150,000 4,425 .12
FINANCIAL SERVICES - 6.93%
Federal National Mortgage Assn. 3,760,000 118,910 3.22
Student Loan Marketing Assn. 700,000 57,837 1.57
Federal Home Loan Mortgage Corp. 343,600 28,347 .77
Capital One Financial Corp. 960,000 25,680 .69
ADVANTA Corp., Class B 450,000 20,250
ADVANTA Corp., Class A 100,000 4,775 .68
HEALTH & PERSONAL CARE - 6.92%
Medtronic, Inc. 2,400,000 137,700 3.73
Amgen Inc./1/ 800,000 47,800 1.30
Gillette Co. 500,000 27,062 .73
Pfizer Inc. 330,000 21,739 .59
Pyxis Corp./1/ 650,000 15,275 .41
Perrigo Co./1/ 425,000 5,950 .16
ELECTRONIC COMPONENTS - 6.60%
Intel Corp. 1,175,000 69,105 1.87
Seagate Technology/1/ 500,000 32,625 .88
Texas Instruments Inc. 600,000 29,925 .81
Bay Networks, Inc./1/ 425,000 18,966 .51
ADC Telecommunications, Inc./1/ 460,000 18,285 .50
AMP Inc. 400,000 17,050 .46
Analog Devices, Inc./1/ 618,750 16,629 .45
LSI Logic Corp./1/ 500,000 13,812 .38
Motorola, Inc. 200,000 10,850 .29
Linear Technology Corp. 225,000 10,462 .28
AVX Corp. 250,000 6,125 .17
DATA PROCESSING & REPRODUCTION - 5.57%
Solectron Corp./1/ 856,000 41,516 1.13
Sybase, Inc./1/ 1,134,200 35,586 .96
Digital Equipment Corp./1/ 350,000 25,200 .68
International Business Machines Corp. 175,000 21,459 .58
Electronic Arts/1/ 685,000 17,125 .46
Tandem Computers Inc./1/ 1,278,900 12,309 .33
Oracle Corp./1/ 220,000 11,440 .31
Apple Computer, Inc. 390,000 10,725 .29
Cisco Systems, Inc./1/ 200,000 9,500 .26
Informix Corp./1/ 225,000 7,931 .22
Sequent Computer Systems, Inc./1/ 560,000 6,580 .18
Silicon Graphics, Inc./1/ 250,000 6,250 .17
LEISURE & TOURISM - 5.18%
Walt Disney Co. 1,250,000 81,875 2.22
Harrah's Entertainment, Inc./1/ 1,240,000 33,635 .91
Brinker International, Inc./1/ 2,450,000 33,381 .90
Marriott International, Inc. 600,000 29,475 .80
Promus Hotel Corp./1/ 500,000 13,000 .35
BANKING - 4.78%
Norwest Corp. 1,400,000 51,100 1.38
Golden West Financial Corp. 1,000,000 50,625 1.37
Banc One Corp. 1,300,957 46,347 1.26
Northern Trust Corp. 400,000 21,100 .57
SunTrust Banks, Inc. 100,000 7,187 .20
BEVERAGES & TOBACCO - 4.36%
Philip Morris Companies Inc. 835,000 82,665 2.24
PepsiCo, Inc. 600,000 37,950 1.03
UST Inc. 1,050,000 37,275 1.01
Robert Mondavi Corp./1/ 100,000 2,950 .08
TELECOMMUNICATIONS - 4.03%
Telephone and Data Systems, Inc. 1,200,000 55,350 1.50
AirTouch Communications/1/ 1,250,000 38,750 1.05
MCI Communications Corp. 850,000 24,863 .67
Cellular Communications, Inc.,
preference shares/1/ 393,659 20,273 .55
AT&T Corp. 150,000 9,544 .26
CHEMICALS - 1.79%
Loctite Corp. 1,245,900 66,033 1.79
RECREATION & OTHER CONSUMER PRODUCTS - 1.75%
Duracell International Inc. 1,252,900 64,681 1.75
TRANSPORTATION: AIRLINES - 1.26%
Southwest Airlines Co. 550,250 16,920 .46
Delta Air Lines, Inc. 210,000 16,380 .44
AMR Corp./1/ 150,000 13,163 .36
MERCHANDISING - 1.19%
Toys "R" Us, Inc./1/ 800,000 19,100 .52
Wal-Mart Stores, Inc. 700,000 14,875 .40
Circuit City Stores, Inc. 200,000 5,925 .16
Staples, Inc./1/ 150,000 3,881 .11
FOOD & HOUSEHOLD PRODUCTS - 0.95%
Colgate-Palmolive Co. 450,000 35,212 .95
INSURANCE - 0.88%
American International Group, Inc. 337,500 32,611 .88
MACHINERY & ENGINEERING - 0.74%
Thermo Electron Corp./1/ 500,000 27,375 .74
TRANSPORTATION: RAIL - 0.63%
Wisconsin Central Transportation Corp./1/ 315,000 23,389 .63
ENERGY SOURCES - 0.54%
Helmerich & Payne, Inc. 600,000 20,100 .54
AEROSPACE & MILITARY TECHNOLOGY - 0.31%
General Motors Corp., Class H 200,000 11,450 .31
CONSTRUCTION & HOUSING - 0.12%
Jacobs Engineering Group Inc./1/ 150,000 4,275 .12
MISCELLANEOUS
Other common stocks in initial period of
acquisition 84,103 2.28
---------- -------
TOTAL COMMON STOCKS (cost: $1,972,243,000) 3,202,973 86.74
---------- -------
Principal
Amount
SHORT-TERM SECURITIES (000)
- --------------------- -------- ------------ ----------
CORPORATE SHORT-TERM NOTES - 10.17%
Pitney Bowes Credit Corp.
5.11%-5.34% due 3/8-4/10/96 51,900 51,641 1.40
IBM Credit Corp. 5.37% Due 3/13/96 43,730 43,645 1.18
PepsiCo, Inc. 5.18%-5.20% due 3/13-3/28/96 41,700 41,596 1.13
AT&T Corp. 5.29%-5.36% due 3/12-3/14/96 39,500 39,422 1.07
Bell Atlantic Network Funding Corp. 5.20%-5.22%
due 3/8-3/14/96 35,300 35,258 .95
Home Depot, Inc. 5.42% due 3/11/96 30,000 29,950 .81
Xerox Corp. 5.18%-5.34% due 3/18-3/20/96 26,500 26,427 .72
Hershey Foods Corp. 5.18%-5.32% due 3/4-3/29/96 24,000 23,969 .65
H.J. Heinz Co. 5.18% due 3/26-3/27/96 19,000 18,928 .51
Hewlett-Packard Co. 5.34% due 4/4/96 18,000 17,909 .49
Procter & Gamble Co. 5.09%-5.10% due 4/16-4/22/96 18,000 17,873 .48
Schering Corp. 5.18%-5.21% due 3/11-4/3/96 16,000 15,951 .43
Ford Motor Credit Co. 5.37% due 3/22/96 13,000 12,957 .35
FEDERAL AGENCY DISCOUNT NOTES - 4.25%
Federal Home Loan Bank
5.00%-5.33% due 3/1-5/22/96 84,900 84,422 2.29
Federal Home Loan Mortgage Corp.
4.99%-5.35% due 3/6-5/28/96 44,600 44,494 1.20
Federal National Mortgage Assn.
5.00%-5.02% due 5/17-5/24/96 28,400 28,078 .76
-------- -------
TOTAL SHORT-TERM SECURITIES (cost:
$532,528,000) 532,520 14.42
-------- -------
TOTAL INVESTMENT SECURITIES (cost:
$2,504,771,000) 3,735,493 101.16
Excess of payables over cash and receivables 42,663 1.16
------------ ----------
NET ASSETS $3,692,830 100.00%
============ ==========
</TABLE>
/1/ Non-income-producing securities.
See Notes to Financial Statements
Common stocks appearing in the portfolio
since August 31, 1995
- ---------------------------------
American Management Systems
AVX
Bay Networks
A. H. Belo
Brinker International
Circuit City Stores
Federal Home Loan Mortgage
First Data
Gillette
Informix
Linear Technology
Loewen Group
LSI Logic
Manpower
Robert Mondavi
Pfizer
Staples
Value Health
Vivra
Wal-Mart Stores
Wisconsin Central Transportation
Common stocks eliminated from the portfolio
since August 31, 1995
- -----------------------------------
Boston Scientific
Cellular Communications of Puerto Rico
Cincinnati Financial
Dow Jones
Dun & Bradstreet
Hasbro
Lands' End
LIN Broadcasting
Luby's Cafeterias
Nalco Chemical
Novell
PNC Bank
U.S. Healthcare
Upjohn
Worthington Industries
AMCAP FUND Financial Statements (dollars inthousands)
Statement of Assets and Liabilities
at February 29, 1996
<TABLE>
<CAPTION>
<S> <C> <C>
Assets:
Investment securities at market
(COST: $2,504,771) $3,735,493
Cash 126
Receivables for--
Sales of fund's shares $4,210
Dividends 2,327 6,537
-------- -----------
3,742,156
Liabilities:
Payables for--
Purchases of investments 42,467
Repurchases of fund's shares 3,928
Management services 1,161
Accrued expenses 1,770 49,326
-------- -----------
NET ASSETS AT FEBRUARY 29, 1996--
EQUIVALENT TO $14.40 PER SHARE ON
256,366,346 SHARES OF $1 PAR VALUE
capital stock outstanding (authorized
capital stock--300,000,000 shares) $3,692,830
===========
STATEMENT OF OPERATIONS FOR THE
YEAR ENDED FEBRUARY 29, 1996
Investment Income:
Income:
Dividends $ 29,163
Interest 33,329 $ 62,492
--------
Expenses:
Management services fee 13,418
Distribution expenses 6,419
Transfer agent fee 2,680
Reports to shareholders 181
Registration statement and prospectus 101
Postage, stationery and supplies 537
Directors' fees 108
Auditing and legal fees 48
Custodian fee 102
Taxes other than federal income tax 50
Other expenses 14 23,658
-------- -----------
Net investment income 38,834
-----------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 366,352
Net increase in unrealized
appreciation on investments:
Beginning of year 781,966
End of year 1,230,693
--------
Net unrealized appreciation
on investments 448,727
-----------
Net realized gain and unrealized
appreciation on investments 815,079
-----------
Net Increase in Net Assets Resulting
from Operations $ 853,913
===========
Statement of Changes in Net Assets
YEAR ENDED
FEBRUARY 29, 1996 FEBRUARY 28, 1995
Operations: -------- -----------
Net investment income $38,834 $33,784
Net realized gain on investments 366,352 131,656
Net unrealized appreciation (depreciation)
on investments 448,727 (72,698)
-------- -----------
Net increase in net assets resulting
from operations 853,913 92,742
-------- -----------
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (40,721) (30,685)
Distributions from net realized
gain on investments (284,911) (222,989)
-------- -----------
Total dividends and distributions (325,632) (253,674)
-------- -----------
Capital Share Transactions:
Proceeds from shares sold:
36,019,892 AND 35,758,474
shares, respectively 492,283 435,956
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
22,741,455 and 19,996,561 shares,
respectively 305,933 237,314
Cost of shares repurchased:
44,261,999 and 49,806,739
shares, respectively (603,782) (605,581)
-------- -----------
Net increase in net assets
resulting from capital share transactions 194,434 67,689
-------- -----------
Total Increase (Decrease) in Net Assets 722,715 (93,243)
Net Assets
Beginning of year 2,970,115 3,063,358
-------- -----------
End of year (including undistributed
NET INVESTMENT INCOME OF $5,772 AND
$7,659, RESPECTIVELY) $3,692,830 $2,970,115
======== ===========
</TABLE>
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 fund
seeks long-term growth of capital by investing in growing, profitable
companies. 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 $102,000 includes $15,000 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 February 29, 1996, net unrealized appreciation on investments for
book and federal income tax purposes aggregated $1,230,722,000, of which
$1,272,052,000 related to appreciated securities and $41,330,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the year ended February 29, 1996. The cost
of portfolio securities for book and federal income tax purposes was
$2,504,771,000 at February 29, 1996.
3. The fee of $13,418,000 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 year ended February 29, 1996,
distribution expenses under the Plan were $6,419,000. As of February 29, 1996,
accrued and unpaid distribution expenses were $1,586,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $2,680,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $747,000 (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 of the fund 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 February 29, 1996, aggregate amounts deferred and earnings thereon were
$175,000.
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 February 29, 1996, accumulated undistributed net realized gain on
investments was $121,704,000 and additional paid-in capital was $2,078,295,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $977,506,000 and $1,040,969,000, respectively, during
the year ended February 29, 1996.
Independent Auditors' Report
To the Board of Directors and Shareholders of AMCAP Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of
AMCAP Fund, Inc.(the "fund"), including the schedule of portfolio investments,
as of February 29, 1996, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years in
the period then ended, and the per-share data and ratios for each of the five
years in the period then ended. These financial statements and per-share data
and ratios are the responsibility of the fund's management. Our responsibility
is to express an opinion on these financial statements and the per-share data
and ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and the per-share
data and ratios are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures include confirmation of securities owned
at February 29, 1996 by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other procedures. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and per-share data and ratios
referred to above present fairly, in all material respects, the financial
position of AMCAP Fund, Inc. at February 29, 1996, 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 the per-share data and ratios for
each of the five years in the period then ended, in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Los Angeles, California
March 21, 1996
AMCAP FUND
Per-Share Data and Ratios
<TABLE>
<CAPTION>
Year ended February 28 or 29
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Year $12.28 $12.98 $13.52 $13.23 $11.57
- - - - -
Income from Investment
Operations:
Net investment income .16 .14 .12 .13 .17
Net realized and unrealized
gain on investments 3.32 .24 1.28 .63 2.10
- - - - -
Total income from investment
operations 3.48 .38 1.40 .76 2.27
- - - - -
Less Distributions:
Dividends from net investment
income (.17) (.13) (.12) (.15) (.15)
Distributions from net realized
gains (1.19) (.95) (1.82) (.32) (.46)
- - - - -
Total distributions (1.36) (1.08) (1.94) (.47) (.61)
- - - - -
Net Asset Value, End of Year $14.40 $12.28 $12.98 $13.52 $13.23
= = = = =
Total Return* 29.29% 3.41% 11.31% 5.94% 20.41%
Ratios/Supplemental Data:
Net assets, end of year (in
millions) $3,693 $2,970 $3,063 $3,016 $2,796
Ratio of expenses to average
net assets .71% .71% .72% .73% .75%
Ratio of net income to
average net assets 1.16% 1.16% .89% 1.02% 1.37%
Portfolio turnover rate 35.16% 17.92% 22.18% 14.72% 7.74%
</TABLE>
* Calculated without deducting a sales charge. The maximum sales charge is
5.75% of thefund's offering price.
AMCAP FUND
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, Burlington, 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
Senior Partner, The Capital Group Partners L.P.
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 and Management 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. HALL, 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
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 distributions received by shareholders
during such fiscal year.
Corporate shareholders may exclude up to 70% of qualifying dividends
received during the year. For purposes of computing this exclusion, 54% of the
dividends paid by the fund from net investment income represents qualifying
dividends.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans, and 403(b) plans need not be reported as taxable income.
However, many plan retirement trusts may need this information for their annual
information reporting.
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 LLP
345 California Street
San Francisco, California 94104-2675
INDEPENDENT AUDITORS
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017-2472
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
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 June 30,
1996, this report must be accompanied by an American Funds Group Statistical
Update for the most recently completed calendar quarter.
Printed on recycled paper
The American Funds Group(r)
Litho in USA CD/GRS/2930
Lit. No. AMCAP-011-0496
