AMCAP FUND
Semi-Annual Report
for the six months ended August 31, 1997
[Small collage of photos: astronaut, microchip, genetic abstract]
[The American Funds Group(R)]
AMCAP Fund(R) seeks long-term growth of capital by investing in growing,
profitable companies.
AMCAP Fund is one of the 28 funds in The American Funds Group,(R) managed by
Capital Research and Management Company. Since 1931, Capital has invested with
a long-term focus based on thorough research and attention to risk.
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, 1997
(the most recent calendar quarter), assuming payment of the 5.75% maximum sales
charge at the beginning of the stated periods - 10 years: +206.56%, or +11.85%
a year; 5 years: +107.10%, or +15.67% a year; 12 months: +24.50%. Sales charges
are lower for accounts of $50,000 or more.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS AND ARE NOT PREDICTIVE OF
FUTURE 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:
The six months ended August 31 marked a change in stock market leadership from
a relatively small group of the very largest growth companies to a broader mix
of both large and smaller companies.
AMCAP Fund, which invests in a wide range of large, midsize and small
companies, clearly benefited from the shifting market focus. During the first
half of the fund's fiscal year, the value of your investment rose 16.1% if you
reinvested the dividend of 5 cents a share and capital gain distribution of
$1.03 a share paid in May.
Although the fund emphasizes long-term investing, it's worth noting that the
six-month period was one of AMCAP's strongest in the past decade. AMCAP
outpaced the unmanaged Standard & Poor's 500 Composite Index, which had a gain
of 14.8% with dividends reinvested. The S&P 500 is a weighted index of 500 of
the largest U.S. corporations and has outpaced the broader stock market in the
past three years.
STRENGTH IN TECHNOLOGY AND CABLE TELEVISION STOCKS
A strong performance by many of the fund's technology holdings and a comeback
for many cable television and entertainment stocks were key factors in AMCAP's
results. These companies did well in a positive economic climate sometimes
referred to as a "Goldilocks economy" (not too hot and not too cold) that
featured relatively low inflation, increasing productivity and rising corporate
earnings.
Eight of the fund's top 10 gainers were technology stocks. They included Bay
Networks, America Online, Sequent Computer Systems and Oracle, whose price
increases ranged from 45.7% to 86.2%. Many technology stocks have done well
because these companies have proven they can help individuals and businesses to
improve productivity and lower costs.
Cable television stocks, which had suffered declines in the fund's past fiscal
year because of increased competition from direct satellite television as well
as slowing growth, came back in the six-month period. Many cable companies
improved service and added more channels as the market penetration of direct
satellite television slowed dramatically. Gainers included Comcast, one of the
country's fastest growing cable operators (up 31.2%) and
Tele-Communications/TCI, the largest operator of cable TV systems in the United
States (up 47.4%). Time Warner, a diversified entertainment and media concern
with large cable holdings, rose 25.6%.
The first half continued to be difficult for health maintenance organizations
(HMOs). Increased competition, price cuts and higher-than-projected operating
expenses hurt these companies. United HealthCare, one of the nation's largest
managed health care companies, declined 2.5% and PacifiCare, a California-based
HMO, fell 18.2%. As we noted in the annual report, if business fun- damentals
are still in place, we tend to wait out temporary declines in stock prices. We
remain confident that the managed care business has a good future.
CAPITAL GAINS AND THE NEW TAX LAW
This year's new tax law lowered the capital gain tax rate for the sale of
securities held for more than 18 months from 28% to 20%. This change increases
the importance of minimizing short-term gains, which will continue to be taxed
as regular income (at rates as high as 39.6%), in favor of long-term gains.
Since our investment philosophy has always emphasized long-term investing, we
do not anticipate any significant change in how we manage the fund's portfolio.
However, the widening discrepancy between taxes on ordinary income and taxes on
capital gains suggests we now need to be especially confident that taking a
short-term gain makes sense for the fund and its shareholders. Rest assured
that we will monitor the impact of the new law closely.
Though we are pleased to report a strong six-month gain for AMCAP, it's
important to set realistic expectations. Over the fund's 30 1/3-year lifetime,
the fund has produced an average annual compound return of 13.2% a year. That
is well ahead of the 11.8% return of the S&P 500 Index for the same period.
However, for the past two calendar years, the S&P 500 has recorded an annual
average compound gain of 30.1% - almost three times the market's historic
trend. We therefore believe that caution is advised.
We look forward to reporting to you again in the spring.
Cordially,
/s/Walter P. Stern
Walter P. Stern
Chairman of the Board
/s/R. Michael Shanahan
R. Michael Shanahan
President
October 16, 1997
<PAGE>
<TABLE>
AMCAP Fund Investment Portfolio
<S> <C> <C> <C> <C>
Percent
August 31, 1997 of Net
(Unaudited) Assets
- -------------------------------------------------------------------------------------------
Largest Industry Holdings
Data Processing & Reproduction 11.10%
Business & Public Services 10.95
Broadcasting & Publishing 10.83
Financial Services 8.27
Health & Personal Care 7.73
Other Industries 41.18
Cash & Equivalents 9.94
- -------------------------------------------------------------------------------------------
Largest Individual Common Stock Holdings
Time Warner 3.91%
Fannie Mae 3.60
Philip Morris 2.99
Medtronic 2.73
Walt Disney 2.72
Comcast 2.62
SLM Holding 2.24
Oracle 2.13
Gillette 2.06
Norwest 1.90
- -------------------------------------------------------------------------------------------
Number Market ValuePercent of
of (000) Net Assets
Common Stocks Shares
- -------------------------------------------------------------------------------------------
Data Processing & Reproduction - 11.10%
Oracle Corp./1/ 2,362,500 $90,070 2.13 %
Netscape Communications Corp./1/ 1,300,000 51,756 1.22
Solectron Corp./1/ 1,223,600 51,238 1.21
Silicon Graphics, Inc./1/ 1,850,000 50,759 1.20
Lexmark International Group, Inc., Class A/1/ 1,400,000 49,000 1.16
Computer Associates International, Inc. 450,000 30,094 .71
Intuit Inc. /1/ 1,039,700 27,162 .64
Sybase, Inc. /1/ 1,184,200 22,056 .52
International Business Machines Corp. 200,000 20,175 .48
Ascend Communications, Inc. /1/ 475,000 20,158 .47
PeopleSoft, Inc. /1/ 300,000 16,875 .40
Sequent Computer Systems, Inc. /1/ 560,000 15,785 .37
Cisco Systems, Inc./1/ 200,000 15,075 .36
3Com Corp. /1/ 100,000 4,994 .12
Sun Microsystems, Inc. /1/ 94,800 4,551 .11
Business & Public Services - 10.95%
CUC International Inc. /1/ 2,370,000 55,695 1.31
Avery Dennison Corp. 1,100,000 45,169 1.07
Electronic Data Systems Corp. 1,162,800 43,968 1.04
Concord EFS, Inc./1/ 1,498,500 41,583 .98
PacifiCare Health Systems, Inc., Class B /1/ 485,000 33,162
PacifiCare Health Systems, Inc., Class A /1/ 100,000 6,625 .94
United HealthCare Corp. 790,000 38,414 .91
Ceridian Corp./1/ 1,100,000 38,019 .90
Interpublic Group of Companies, Inc. 600,000 29,250 .69
American Management Systems, Inc./1/ 1,150,000 28,750 .68
BDM International, Inc./1/ 866,700 21,884 .52
First Data Corp. 500,000 20,531 .48
Manpower Inc. 470,200 20,072 .47
America Online, Inc./1/ 262,500 16,931 .40
Waste Management, Inc.(formerly WMX Technologies, Inc.) 405,000 12,960 .31
IKON Office Solutions, Inc. 400,000 10,400 .25
Broadcasting & Publishing - 10.83%
Time Warner Inc. 3,216,000 165,624 3.91
Comcast Corp., Class A special stock 4,475,000 104,883
Comcast Corp., Class A 260,000 6,045 2.62
Viacom Inc., Class B/1/ 1,962,200 58,130 1.37
Tele-Communications, Inc., Series A,
Liberty Media Group/1/ 2,087,500 55,058 1.30
Tele-Communications, Inc., Series A,
TCI Group /1/ 2,079,900 36,398 .86
Harte-Hanks Communications, Inc. 1,070,000 32,568 .77
Financial Services - 8.27%
Fannie Mae (formerly Federal National Mortgage Assn.) 3,460,000 152,240 3.60
SLM Holding Corp.(formerly Student Loan Marketing Assn.) 700,000 94,850 2.24
Capital One Financial Corp. 1,245,000 47,932 1.13
Freddie Mac (formerly Federal Home Loan Mortgage Corp.) 1,374,400 44,754 1.06
Associates First Capital Corp., Class A 175,000 10,161 .24
Health & Personal Care - 7.73%
Medtronic, Inc. 1,280,000 115,680 2.73
Gillette Co. 1,052,500 87,160 2.06
Pfizer Inc 800,000 44,300 1.05
Avon Products, Inc. 386,400 24,754 .59
Guidant Corp. 275,000 24,148 .57
Merck & Co., Inc. 200,000 18,363 .43
Thermedics Inc./1/ 700,000 12,862 .30
Merchandising - 5.86%
Viking Office Products, Inc./1/ 2,800,000 59,150 1.40
AutoZone, Inc. /1/ 2,000,000 56,500 1.33
Cardinal Health, Inc., Class A 601,693 39,862 .94
Circuit City Stores, Inc. 1,000,000 35,625 .84
Wal-Mart Stores, Inc. 750,000 26,625 .63
Albertson's, Inc. 500,000 17,188 .41
Intimate Brands, Inc., Class A 600,000 13,200 .31
Electronic Components - 5.49%
Texas Instruments Inc. 594,800 67,584 1.60
Intel Corp. 500,000 46,062 1.09
Bay Networks, Inc./1/ 1,300,000 45,988 1.09
ADC Telecommunications, Inc./1/ 1,020,000 37,868 .89
Analog Devices, Inc./1/ 825,000 27,328 .64
Seagate Technology /1/ 200,000 7,637 .18
Leisure & Tourism - 4.79%
Walt Disney Co. 1,500,000 115,219 2.72
Brinker International, Inc. /1/ 3,250,000 54,438 1.28
Marriott International, Inc. 500,000 33,281 .79
Banking - 4.56%
Norwest Corp. 1,400,000 80,412 1.90
Golden West Financial Corp. 700,000 57,619 1.36
Northern Trust Corp. 800,000 42,500 1.00
SunTrust Banks, Inc. 200,000 12,500 .30
Beverages & Tobacco - 4.41%
Philip Morris Companies Inc. 2,905,000 126,731 2.99
PepsiCo, Inc. 1,200,000 43,200 1.02
Robert Mondavi Corp., Class A /1/ 366,700 16,685 .40
Telecommunications - 2.61%
AirTouch Communications /1/ 1,250,000 42,266 1.00
Telephone and Data Systems, Inc. 1,000,000 39,500 .93
LCI International, Inc./1/ 1,200,000 28,800 .68
Recreation & Other Consumer Products - 1.69%
Harley-Davidson, Inc. 600,000 32,475 .76
Electronic Arts /1/ 700,000 21,569 .51
Broderbund Software, Inc./1/ 600,000 17,700 .42
Chemicals - 1.23%
Airgas, Inc./1/ 1,500,000 27,282 .64
Cambrex Corp. 300,000 14,606 .35
RPM, Inc. 500,000 10,156 .24
Insurance - 1.13%
American International Group, Inc. 506,250 47,777 1.13
Energy Equipment - 1.04%
Camco International, Inc. 640,000 44,080 1.04
Machinery & Engineering - 0.95%
Thermo Electron Corp./1/ 1,000,000 40,250 .95
Transportation: Rail - 0.81%
Wisconsin Central Transportation Corp./1/ 1,108,400 34,360 .81
Industrial Components - 0.79%
Lear Corp./1/ 438,000 20,066 .47
Danaher Corp. 252,000 13,498 .32
Transportation: Airlines - 0.50%
Southwest Airlines Co. 750,250 21,007 .50
Aerospace & Military Technology - 0.45%
General Motors Corp., Class H 300,000 19,069 .45
Construction & Housing - 0.11%
Jacobs Engineering Group Inc. /1/ 150,000 4,800 .11
Miscellaneous
Other common stocks in initial period of
acquisition 201,456 4.76
----------------------
TOTAL COMMON STOCKS (cost: $2,376,120,000) 3,812,990 90.06
----------------------
Principal
Amount
SHORT-TERM SECURITIES (000)
- -------------------------------------------------------------------------------------------
Corporate Short-Term Notes - 6.77%
PepsiCo, Inc. 5.47% due 9/2-10/2/97 $43,480 $43,402 1.02 %
Xerox Corp. 5.48% due 9/10-10/17/97 43,500 43,240 1.02
E.I. du Pont de Nemours and Co. 5.44%-5.47% due 9/4-11/5/97 40,600 40,375 .95
United Parcel Service of America, Inc. 5.49% due 9/24/97 37,200 37,064 .88
AT&T Corp. 5.45%-5.47% due 9/26-11/4/97 33,700 33,457 .79
Weyerhaeuser Co. 5.47% due 9/12/97 25,000 24,954 .59
Lucent Technologies Inc. 5.48%-5.53% due 9/9-9/15/97 24,200 24,163 .57
Shell Oil Co. 5.45% due 9/29/97 20,000 19,911 .47
General Electric Capital Corp. 5.48%-5.62% due 9/2-9/15/97 10,000 9,995 .24
Monsanto Co. 5.50% due 9/18/97 10,000 9,973 .24
Federal Agency Discount Notes - 2.66%
Fannie Mae (formerly Federal National Mortgage Assn.)
5.40% due 11/7-11/10/97 42,700 42,246 1.00
Federal Home Loan Banks 5.40% due 10/31-11/19/97 41,700 41,254 .97
Freddie Mac(formerly Federal Home Loan Mortgage Corp.)
5.40% due 9/30-11/14/97 29,300 29,079 .69
----------------------
TOTAL SHORT-TERM SECURITIES (cost:
$399,136,000) 399,113 9.43
----------------------
TOTAL INVESTMENT SECURITIES (cost:
$2,775,256,000) 4,212,103 99.49
Excess of cash and receivables over payables 21,746 .51
----------------------
NET ASSETS $4,233,849 100.00 %
======================
/1/ Non-income-producing securities.
See Notes to Financial Statements
Common stocks appearing in the portfolio
since February 28, 1997
- -----------------------------------------------------------
Airgas
America Online
Ascend Communications
Avon Products
Cambrex
Camco International
Computer Associates International
Concord EFS
Guidant
Harley-Davidson
Harte-Hanks Communications
IKON Office Solutions
LCI International
Lear
Lexmark International Group
Merck & Co.
Netscape Communications
PeopleSoft
Sun Microsystems
Thermedics
Common stocks eliminated from the portfolio
since February 28, 1997
- -----------------------------------------------------------
ADVANTA
AMR
Applied Materials
AT&T
Banc One
A. H. Belo
Colgate-Palmolive
Federal Express
Harrah's Entertainment
Humana
Linear Technology
Lucent Technologies
MCI Communications
Staples
Value Health
Vivra
Walgreen
</TABLE>
<PAGE>
<TABLE>
AMCAP FUND Financial Statements
- ------------------------------------------- ---------------- ----------------
<S> <C> <C>
Statement of Assets and Liabilities
at August 31, 1997 (dollars in thousands) (unaudited)
- ------------------------------------------- ---------------- ----------------
Assets:
Investment securities at market
(cost: $2,775,256) $4,212,103
Cash 169
Receivables for--
Sales of investments $59,018
Sales of fund's shares 1,267
Dividends 1,976 62,261
-----------------------------------
4,274,533
Liabilities:
Payables for--
Purchases of investments 34,705
Repurchases of fund's shares 2,099
Management services 1,406
Accrued expenses 2,474 40,684
-----------------------------------
Net Assets at August 31, 1997--
Equivalent to $15.77 per share on
268,544,139 shares of $1 par value
capital stock outstanding (authorized
capital stock--300,000,000 shares) $4,233,849
=================
Statement of Operations for the six
months ended August 31, 1997 (dollars in thousands) (unaudited)
-----------------------------------
Investment Income:
Income:
Dividends $ 12,342
Interest 14,422 $ 26,764
------------------
Expenses:
Management services fee 7,813
Distribution expenses 4,267
Transfer agent fee 1,044
Reports to shareholders 137
Registration statement and prospectus 41
Postage, stationery and supplies 212
Directors' fees 55
Auditing and legal fees 39
Custodian fee 55
Taxes other than federal income tax 1
Other expenses 41 13,705
-----------------------------------
Net investment income 13,059
-----------------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 282,616
Net increase in unrealized
appreciation on investments:
Beginning of period 1,136,951
End of period 1,436,847
------------------
Net unrealized
appreciation on investments 299,896
-----------------
Net realized gain and unrealized
appreciation on investments 582,512
-----------------
Net Increase in Net Assets Resulting
from Operations $595,571
=================
See Notes to Financial Statements
Statement of Changes in Net
Assets
- --------------------------------------------------------------------------------
Six months ended Year ended
August 31, 1997* February 28, 1997
Operations: -----------------------------------
Net investment income $ 13,059 $ 29,859
Net realized gain on investments 282,616 476,706
Net unrealized appreciation (depreciation)
on investments 299,896 (93,742)
-----------------------------------
Net increase in net assets
resulting from operations 595,571 412,823
-----------------------------------
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (12,799) (30,602)
Distributions from net realized
gain on investments (263,676) (334,007)
-----------------------------------
Total dividends and distributions (276,475) (364,609)
-----------------------------------
Capital Share Transactions:
Proceeds from shares sold:
10,280,716 and 31,306,396
shares, respectively 153,831 439,313
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
17,989,032 and 23,920,709 shares,
respectively 259,220 342,841
Cost of shares repurchased:
20,460,502 and 50,858,558
shares, respectively (305,116) (716,380)
-----------------------------------
Net increase in net assets
resulting from capital share transactions 107,935 65,774
-----------------------------------
Total Increase in Net Assets 427,031 113,988
Net Assets:
Beginning of period 3,806,818 3,692,830
-----------------------------------
End of period (including undistributed
net investment income of $5,289 and
$5,029, respectively) $4,233,849 $3,806,818
===================================
* Unaudited
See Notes to Financial Statements
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS (unaudited)
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:
Equity securities, including depositary receipts, are valued at 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. In cases where equity
securities are traded on more than one exchange, the securities are valued on
the exchange or market determined by the Investment Adviser to be the broadest
and most representative market, which may be either a securities exchange or
the over-the-counter market. Securities with original maturities of one year
or less having 60 days or less to maturity are amortized to maturity based on
their cost if acquired within 60 days of maturity or, if already held on the
60th day, based on the value determined on the 61st day. Securities and assets
for which representative market quotations are not readily available are valued
at fair value as determined in good faith under policies approved by the fund's
Board.
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. Dividends and distributions paid to shareholders are recorded on
the ex-dividend date.
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, 1997, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $1,436,847,000, of which
$1,542,903,000 related to appreciated securities and $106,056,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the six months ended August 31, 1997. The
cost of portfolio securities for book and federal income tax purposes was
$2,775,256,000 at August 31, 1997.
3. The fee of $7,813,000 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,
1997, distribution expenses under the Plan were $4,267,000. As of August 31,
1997, accrued and unpaid distribution expenses were $2,131,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $1,044,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $294,000 (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,
1997, aggregate amounts deferred and earnings thereon were $323,000.
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, 1997, accumulated undistributed net realized gain on
investments was $283,343,000 and additional paid-in capital was $2,239,826,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $638,750,000 and $599,857,000, respectively, during
the six months ended August 31, 1997.
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 $55,000 includes $13,000 that was paid by these credits
rather than in cash.
<PAGE>
<TABLE>
AMCAP FUND
Per-Share Data and Ratios
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Six months
ended Year endedFebruary 28 or 29
August 31,-----------------------------------------------
1997 /1/ 1997 1996 1995 1994 1993
---------------------------------------------------------
Net Asset Value, Beginning
of Period $14.60 $14.40 $12.28 $12.98 $13.52 $13.23
---------------------------------------------------------
Income from Investment
Operations:
Net investment income .05 .12 .16 .14 .12 .13
Net realized and unrealized
gain on investments 2.20 1.51 3.32 .24 1.28 .63
---------------------------------------------------------
Total income from investment
operations 2.25 1.63 3.48 .38 1.40 .76
---------------------------------------------------------
Less Distributions:
Dividends from net investment
income (.05) (.12) (.17) (.13) (.12) (.15)
Distributions from net realized
gains (1.03) (1.31) (1.19) (.95) (1.82) (.32)
---------------------------------------------------------
Total distributions (1.08) (1.43) (1.36) (1.08) (1.94) (.47)
---------------------------------------------------------
Net Asset Value, End of Period $15.77 $14.60 $14.40 $12.28 $12.98 $13.52
=========================================================
Total Return /2/ 16.11% /1/ 11.74% 29.29% 3.41% 11.31% 5.94%
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $4,234 $3,807 $3,693 $2,970 $3,063 $3,016
Ratio of expenses to average
net assets .35% /1/ .69% .71% .71% .72% .73%
Ratio of net income to
average net assets .33% /1/ .81% 1.16% 1.16% .89% 1.02%
Average commissions paid
per share /4/ 4.69c 5.05c 5.95c 5.95c 6.54c 7.28c
Portfolio turnover rate 17.41% /3/ 24.14% 35.16% 17.92% 22.18% 14.72%
/1/ Unaudited
/2/ 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.
/4/ Brokerage commissions paid on
portfolio transactions increase the cost of
securities purchased or reduce the
proceeds of securities sold, and are not
separately reflected in the fund's statement
of operations. Shares traded on a
principal basis(without commissions), such
as most over-the-counter and fixed-income
transactions, are excluded.
</TABLE>
<PAGE>
BOARD OF DIRECTORS
GUILFORD C. BABCOCK
San Marino, California
Associate Professor of Finance,
Marshall School of Business,
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
San Marino, California
Private investor
GAIL L. NEALE
Burlington, Vermont
President, The Lovejoy Consulting
Group, Inc.; former Executive Vice
President of the Salzburg Seminar;
former Director of Development
and of the Capital Campaign,
Hampshire College
KIRK P. PENDLETON
Southampton, Pennsylvania
Chairman of the Board and Chief
Executive Officer, 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, Keck Graduate School
of Applied Life Sciences
R. MICHAEL SHANAHAN
Los Angeles, California
President of the fund
Chairman of the Board and
Principal Executive Officer,
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
Executive Vice President and
Director, Capital Research and
Management Company
TIMOTHY D. ARMOUR
Los Angeles, California
Vice President of the fund
Chairman of the Board and
Chief Executive Officer,
Capital Research Company
CLAUDIA P. HUNTINGTON
Los Angeles, California
Vice President of the fund
Senior Vice President,
Capital Research and
Management Company
JAMES B. LOVELACE
Los Angeles, California
Vice President of the fund
Vice President, Capital Research
and Management 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
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 92821-5804
Transfer agent for shareholder accounts
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
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
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Paul, Hastings, Janofsky & Walker LLP
555 South Flower Street
Los Angeles, California 90071-2371
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 FINANCIAL ADVISER. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE
COMPANY, TOLL-FREE, AT 800/421-0180 OR VISIT WWW.AMERICANFUNDS.COM ON THE WORLD
WIDE WEB.
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, 1997, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
Litho in USA SM/FS/3525
Lit. No. AMCAP-013-1097
Printed on recycled paper
[The American Funds Group(R)]
