AMCAP FUND
Annual Report for the year ended February 28, 1997
THE YEAR WAS 1967. THE UNITED STATES WAS EMBROILED IN WAR IN VIETNAM. A GALLON
OF GAS SOLD FOR ONLY 30 CENTS - AND AN AMERICAN COMPANY PRODUCED THE FIRST
MICROWAVE OVEN FOR HOME USE. ON MAY 1, AMCAP FUND BEGAN OPERATIONS. TODAY, THE
NATION, THE WORLD AND THE MUTUAL FUND INDUSTRY ARE VASTLY DIFFERENT THAN THEY
WERE 30 YEARS AGO. BUT AMCAP'S OBJECTIVE OF INVESTING IN QUALITY GROWTH
COMPANIES REMAINS THE SAME. THE STORY OF WHERE WE HAVE BEEN AND WHERE WE ARE
GOING IS INSIDE. WE CALL IT "THIRTY YEARS OF GROWTH AND INNOVATION."
1967 - 1997
[Watermark: the number 30]
["AMCAP" is printed vertically]
[Small collage of photos: astronaut, microchip, genetic abstract]
[The American Funds Group(r)]
AMCAP's Total Return Year by Year
For the past 10 fiscal years (ended 2/28 or 2/29)
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
1997 + 11.7
Total return over entire 10-year period + 199.8
Average annual compound return + 11.6
AMCAP FUND(R) SEEKS LONG-TERM GROWTH OF CAPITAL BY INVESTING IN GROWING,
PROFITABLE COMPANIES.
AMCAP'S LIFETIME RESULTS
For the period May 1, 1967 to February 28, 1997 with all distributions
reinvested
<TABLE>
<CAPTION>
Total Average Annual
Return Compound Return
<S> <C> <C>
AMCAP 3,582.8% 12.9%
Standard & Poor's 500 Composite Index 2,493.3 11.5
Consumer Price Index (inflation)* 382.2 5.4
</TABLE>
*Computed from data supplied by the U.S. Department of Labor, Bureau of Labor
Statistics.
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, 1997 (the
most recent calendar quarter), assuming payment of the 5.75% maximum sales
charge at the beginning of the stated periods:
<TABLE>
<CAPTION>
Total Average Annual
Return Compound Return
<S> <C> <C>
TEN YEARS + 170.15% +10.45%
FIVE YEARS + 65.56 + 10.61
ONE YEAR + 2.98 -
</TABLE>
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:
Fiscal 1997 was an excellent year to be invested in larger growth companies.
Strong corporate profits, low inflation, relatively low interest rates and a
favorable competitive position in world markets contributed to the success of
many big U.S. companies. On the other hand, the stocks of smaller companies
considerably lagged their larger counterparts.
AMCAP Fund, which invests in a mix of both larger and smaller growth companies,
had a good year on an absolute basis. For the 12 months ended February 28, the
value of your investment increased 11.7% if you reinvested dividends totaling
12 cents a share and capital gain distributions totaling $1.31 a share.
Like most mutual funds, however, AMCAP did not keep pace with the surging
Standard & Poor's 500 Composite Index, which is a weighted index of 500 of the
largest U.S. corporations. The unmanaged S&P 500 showed a gain of 26.2% with
dividends reinvested.
This substantial gain reflected a strong preference among investors for the
very largest companies. A closer look at the S&P 500 shows that the largest 50
stocks, weighted by market capitalization, accounted for over 50% of its total
return for AMCAP's fiscal 1997. The largest 100 stocks contributed nearly 75%
of the S&P 500's total return for the period.
In the recent 12 months, technology and financial services companies were among
the fund's winners, while many health care and entertainment stocks were
disappointments.
Intel, a designer and maker of microprocessors that is one of our largest
holdings, rose 141.2%. Texas Instruments, a maker of integrated circuits and
consumer electronics, gained 54.6%. Low inflation helped financial services
companies. The stock of Northern Trust, a provider of fiduciary, custody and
cash management services, increased 61.1%.
Two financial companies that are in our top 10 holdings also did well. Student
Loan Marketing, the provider of student loans known as "Sallie Mae," rose 28.1%
and Federal National Mortgage, the federally sponsored mortgage company known
as "Fannie Mae," rose 26.5%.
This was a difficult year for health maintenance organizations (HMOs), where
increased competition seriously affected profit margins. Many companies had to
cut prices to win corporate contracts, but operating expenses were higher than
projected. As a result, earnings of several HMOs were negatively impacted.
United HealthCare, one of the nation's largest managed health care companies,
declined 23.6%. Humana, another large HMO, fell 19.9%. Despite these
difficulties, we remain confident that the managed care business has a good
future. If business fundamentals are still in place, we tend to be long-term
investors and wait out temporary declines in stock prices.
Increased competition also hurt cable television stocks, which are facing a
strong threat from direct satellite television. Tele-Communications/TCI, the
largest operator of cable TV systems in the United States, declined 38.1%.
Comcast, one of the country's fastest growing cable operators, fell 8.9%.
In the media and entertainment area, two stocks that ran into difficulty in the
first six months of the year rallied in the second half. Walt Disney ended the
fiscal year with a 13.4% gain after being off 13.0% in the first six months.
Time Warner fell 4.1% for the fiscal year, but was down 21.9% in the first
half. In both cases, investors reacted negatively to large acquisitions and
heavy investment spending that affected earnings.
Although entertainment and cable stocks experienced a disappointing year, we
believe the industry is strategically well-positioned for the long term.
Worldwide demographic, political and economic trends and the competitive edge
of American entertainment companies favor the industry. However, as we noted in
last year's annual report, a good macroeconomic environment does not mean that
all companies will succeed - or that they will all prosper equally.
[background photo: the number 30]
As we head further into spring, it is important to note that the fund expects
to declare a capital gain distribution in May in the range of 95 cents to $1.05
a share. Many investors have found that reinvesting capital gain distributions
can be an excellent way to build capital growth for the long term.
As investors for the long term, we invite you to read our feature story,
"Thirty Years of Growth and Innovation," beginning on page 6, which looks at
AMCAP's history and how industries and companies go in and out of favor as
economic, social and political conditions change.
The one constant in this changing market environment is AMCAP's commitment to
investing in growing and profitable businesses when their value is not widely
recognized. For the long run, we have found that this approach has produced
above-average results. Over its 30-year lifetime through February 28, AMCAP's
12.9% average annual compound return was well ahead of the S&P 500's 11.5%
return. We will do everything we can to maintain that record and look forward
to reporting to you again in six months.
Cordially,
[/S/ Walter P. Stern]
Walter P. Stern
Chairman of the Board
[/s/ R. Michael Shanahan]
R. Michael Shanahan
President
April 11, 1997
How a $10,000 Investment Has Grown
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 28, 1997. As you can see, that $10,000
would have grown to $346,783 with all distributions reinvested, a gain of
3,368%. Over the same period, $10,000 would have grown to $259,792 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, 1987. At that time, according to
the table, the value of the investment illustrated here was $115,664. Since
then, it has nearly tripled in value to $346,783. Thus, in that same 10-year
period, the value of your investment - regardless of its size - has also nearly
tripled.
[chart]
$346,783 /1/ /2/
AMCAP with dividends reinvested
$259,792
S&P 500 50 with dividends reinvested
$48,218 /3/
Consumer Price Index (inflation)
$10,000 /1/
original investment
Average annual compound return for 29-3/4 years
12.6% /1/
<TABLE>
<CAPTION>
Year ended 2/28 S&P 500 with Consumper Price Index
dividends reinvested (inflation) /3/
<S> <C> <C>
5/1/67 $10,000 $10,000
1968 9,752 10,332
1969 11,047 10,816
1970 10,406 11,480
1971 11,678 12,054
1972 13,274 12,477
1973 14,310 12,961
1974 12,737 14,260
1975 11,297 15,861
1976 14,396 16,858
1977 14,997 17,855
1978 13,720 19,003
1979 15,999 20,876
1980 19,949 23,837
1981 24,234 26,556
1982 21,983 28,580
1983 30,461 29,577
1984 33,768 30,937
1985 40,829 32,024
1986 53,293 33,021
1987 69,042 33,716
1988 67,142 35,045
1989 75,100 36,737
1990 89,250 38,671
1991 102,334 40,725
1992 118,773 41,873
1993 131,422 43,233
1994 142,336 44,320
1995 152,779 45,589
1996 205,875 46,798
1997 259,792 48,218
</TABLE>
[end chart]
<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 1997
FEB. 28 OR 29
TOTAL VALUE
Dividends 2,156 2,252 1,918 2,399 3,363 2,643
reinvested
Value at 196,856 208,557 232,137 240,047 310,345 346,783
Year-End/1/
AMCAP 20.4 5.9 11.3 3.4 29.3 11.7
Total Return
</TABLE>
AVERAGE ANNUAL COMPOUND RETURNS*
(for periods ended February 28, 1997)
TEN YEARS +10.94%
FIVE YEARS +10.67
ONE YEAR + 5.31
*Assumes reinvestment of all distributions and payment of the 5.75% current
maximum sales charge at the beginning of the stated periods.
/1/These figures, unlike those shown elsewhere 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 $41,628 and reinvested capital gain
distributions of $165,159.
/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.
THIRTY YEARS OF GROWTH AND INNOVATION
[1967 - 1997 printed vertically on page]
A LOOK AT WHERE AMCAP HAS BEEN - AND WHERE IT IS GOING. The year was 1967. The
United States was embroiled in war in Vietnam. A gallon of gas sold for only 30
cents. Lyndon Johnson was President - and an American company produced the
first microwave oven for home use. On May 1, AMCAP Fund began operations.
In our first report to shareholders that year, we described our goal as
investing in "well-managed and aggressive companies in expanding industries."
We specified that these companies should produce goods and services with
favorable long-term prospects for increasing demand. Also, we said that we
favored companies that are not necessarily tied to economic or even to general
profit cycles because of the uniqueness of their product or service and the
special nature of their growth.
That description of AMCAP's approach is every bit as true today as it was when
we first made it 30 years ago.
Though AMCAP's objectives remain the same, the mutual fund industry has changed
radically over those three decades. Back in 1967 there were only 200 mutual
funds, and AMCAP was one of only 54 growth funds. Fewer than 8% of U.S.
households owned mutual funds. Today there are more than 7,000 mutual funds,
and AMCAP is one of 820 growth funds. Nearly 37% of households own mutual
funds.
So as we approach our 30th anniversary on May 1, it is a good time to look back
over those years to review where the fund has been - and to consider the
challenges ahead.
A CHANGING PORTFOLIO
Although the fund's philosophy has remained steady over those 30 years, AMCAP's
portfolio reflects the changes in America's quality growth companies. Our first
annual report in 1967 noted the fund had 39 companies in its portfolio. Our
largest investments included: Barnes-Hind Pharmaceuticals, DeLuxe Check
Printers, Thomasville Furniture Industries, Schlitz Brewing and General
Electric. Today none of these companies is currently an AMCAP investment. Three
of the five - Barnes-Hind, Thomasville and Schlitz - have been acquired by
other firms and no longer exist independently.
[Photo: lit candles]
[Watermark: lit candles]
Today there are 86 companies in the fund's portfolio. AMCAP's largest holdings
are Walt Disney, Philip Morris, Medtronic, Federal National Mortgage and Time
Warner. "The names are different, but we still emphasize high-quality growth
companies," says Bill Newton, one of the fund's original portfolio counselors
who remains in that role today.
THREE DECADES OF PROGRESS
AMCAP's progress during the past three decades has been dramatic. The fund has
grown from $6.3 million in assets when it began to $3.8 billion today. The
number of shareholders has increased from 219 in 1967 to 183,512.
Shareholders who began with us in 1967 and stayed the course have been well
rewarded. As you can see in the chart on pages 4 and 5, a $10,000 investment in
AMCAP when the fund began would have grown to $346,783 today, with all
distributions reinvested. Over the same period, $10,000 in the unmanaged
Standard & Poor's 500 Composite Index, a broad measure of the stock market,
would have grown to $259,792 with dividends reinvested.
In the following pages, we review the fund's changing portfolio - and
investment challenges - in 10-year intervals.
[Photo caption]
1969
Apollo 11 lands on the moon [End photo caption]
1967-1977*
VIETNAM, WATERGATE, OIL SHOCK AND A SEVERE BEAR MARKET. The 1967 to 1977 era
was marked by extreme turmoil in American society and in investment markets.
AMCAP began in the "go-go" years on Wall Street when "conglomerates" were
popular investments. Conglomerates are corporations made up of a number of
different companies that operate in diversified fields. The late 1960s also saw
the rise of go-go funds - aggressively managed mutual funds that bought the
stocks of conglomerates along with hot new issues and other speculative
securities.
At first, AMCAP concentrated on investing in small and medium-sized companies.
But as general market speculation picked up during 1968, the fund moved into
stocks of large, well-established companies like BankAmerica, Royal Dutch
Petroleum and General Foods. Stocks like those weren't found in most growth
fund portfolios at the time, but AMCAP portfolio counselors felt they
represented solid values in an overheated market. The move turned out to be a
good one because in 1969 the stock market declined - and many of the so-called
go-go stocks and aggressive mutual funds fell sharply. Small and medium-sized
companies suffered more than larger, established companies.
In 1973 an Arab oil embargo led to a U.S. energy crisis. Oil prices quadrupled,
and by 1974 inflation had risen to double digits. The economy slid into
recession. From January 11, 1973 through October 3, 1974, the S&P 500 fell 48%.
Along with the rest of the market, AMCAP's value fell too. Recalls Mike
Shanahan, then an AMCAP portfolio counselor and now the fund's president:
"Everything got hit hard - overvalued stocks and undervalued stocks. The market
was very emotional."
*May 1, 1967 to April 30, 1977.
[Photo caption]
1967
Buckminster Fuller and the geodesic dome [End photo caption]
[Watermark: flower]
[Photo: flower]
In 1974 President Richard Nixon resigned over Watergate - and by 1975 the
Vietnam War was over. The period ended with economic stagnation, firmly
entrenched inflation and rising interest rates - anathemas for the stock
market.
All in all, the fund's first 10 years was a tough period for stock investing.
AMCAP ended the period with a 4.3% average annual compound return, edging the
S&P 500, which had a 4.1% average annual return. AMCAP's return was higher than
the 2.5% annual return of the average growth fund, as measured by Lipper
Analytical Services.
1977-1987**
INFLATION, RECESSION AND RECOVERY. This was a decade of major contrasts,
starting with severe inflation. Interest rates rose well into double digits
and President Jimmy Carter warned of a malaise in America. In 1978 the dollar
plunged to then record lows against foreign currencies. In 1979 Iran seized
the U.S. Embassy in Tehran and held hostages.
Though it was a volatile time, the late 1970s was one of AMCAP's best periods
for investing. For the most part, the fund was heavily invested in technology
stocks. Recalls one former AMCAP president: "There were dozens of smaller
companies around then, all growing at 30% to 40% a year and all at low
price/earnings ratios. Computer equipment, communications and electronics
companies were taking off. Later on, we got into energy and oil equipment
stocks that did very well for us, but it was those smaller growth companies
involved in new technology that gave us the biggest push."
[Photo caption]
1980
Ronald Reagan is elected President [End photo caption]
**May 1, 1977 to April 30, 1987.
[Photo caption]
1977
Seattle Slew wins the Triple Crown [End photo caption]
From November 28, 1980 to August 12, 1982, the stock market declined 27%. In
1981 President Ronald Reagan was wounded, and Egyptian President Anwar Sadat
was assassinated. Interest rates hit an all-time high.
AMCAP held up better than the market as a whole during that decline because the
fund had started selling many of its technology investments when their stocks
seemed overpriced. The fund also built up a large cash position of almost
one-third of its assets. It was a defensive move, but it proved to be a wise
one.
By the middle of 1982 interest rates headed down, and the stock market began a
long rally that continued through the end of the period. To capitalize on the
trend toward lower interest rates, AMCAP moved some of its investments into
bigger, better known companies, in contrast with the smaller, more leveraged
companies that it held during the inflationary period of the late 1970s.
AMCAP's portfolio counselors believed that in a period of declining inflation
and lower interest rates, established companies with strong finances -
companies that generate a lot of cash - would do particularly well.
AMCAP ended its second decade in an especially strong position. The fund had an
average annual compound return of 23.3% over those 10 years, far outpacing the
S&P 500, which had an average annual return of 16.8%, and the Lipper average of
growth funds, which had an annual return of 19.3%.
[Photo caption]
1984
Computer company unveils new microchip [End photo caption]
[Photo caption]
1989
The Berlin Wall comes down [End photo caption]
1987-1997*
A Stock Crash, Communism's Collapse, Mideast War and a Bull Market. AMCAP's
third decade began with a steep 31% stock market decline in October 1987. But
stock prices recovered fairly quickly and resumed their long climb upward.
In fiscal 1988 (ended February 29), which includes the crash of 1987, AMCAP
suffered a decline of only 3.1%. In 1989 the Berlin Wall came down, ushering in
the beginnings of democratic change throughout Eastern Europe.
The peace was shattered in 1990 when Iraq's tanks and troops invaded Kuwait.
Stock prices fell 20% but recovered after a stunning victory by United States
and allied forces. In 1992 the Soviet Union's political and economic system
collapsed. Free-market systems began gaining favor all over the world.
The decade of the late 1980s and the 1990s was a good one for AMCAP on an
absolute basis. Strong fiscal years were 1996 (+29.3%), 1992 (+20.4%) and 1991
(+16.8%). For the decade as a whole, AMCAP had an average annual return of
11.7% compared with 14.2% for the S&P 500 and 12.6% for the Lipper average of
growth funds. Like many mutual funds, AMCAP had a difficult time keeping pace
with the torrid rise in the S&P 500 during the period. The primary reason was a
sizable cash position held for much of the period as a cushion against a
potential market decline.
[Photo caption]
1987
Stock market crashes [End photo caption]
*May 1, 1987 to February 28, 1997.
[Photo caption]
1994
The Information Superhighway takes off [End photo caption]
OUTSTANDING AMCAP INVESTMENTS
In the past several years, AMCAP has been emphasizing companies of all sizes in
business and public services, broadcasting and publishing, financial services
and health and personal care. Several of our large long-term investments have
been outstanding over the past 10 years. They particularly fit our theme for
this issue: "Thirty Years of Growth and Innovation." To name just two:
MEDTRONIC is the world's leading medical technology company specializing in
implantable and invasive therapies. It has been an AMCAP investment for 19
years and just completed the best year in its history in 1996, when the
company's net income increased 49% on a revenue increase of 24%. We first
invested in Medtronic when it had a single core business - the implantable
battery-powered cardiac pacemaker. Through heavy investment in research and
development the company has expanded into a wide variety of medical businesses
and products. Over the past 11 years, Medtronic has achieved an annual compound
growth rate in net income of 25%. The company's long-term commitment is to
"enhancing lives through medical innovation."
NORWEST is a diversified financial services company with more than 3,000 stores
in all 50 states, Canada, Central America and the Caribbean. At the end of
1996, it had 53,000 employees and assets of $80.2 billion. Its innovative
management has expanded the company from its banking base into investments,
insurance, consumer finance, and mortgage and specialized lending. In 1996
Norwest's net income increased 22%. Over the past 10 years, Norwest has
recorded an annual compound growth rate in net income of 25%.
[Photo caption]
1990
Nelson Mandela is released {End photo caption]
1998 AND BEYOND
[Watermark: man looking through binocular]
WHERE AMCAP GOES FROM HERE. AMCAP begins its 1998 fiscal year with a fresh,
enthusiastic outlook on growth stock investing. Two new portfolio counselors -
Tim Armour and Claudia Huntington - have joined the fund. Both are seasoned
veterans of Capital Research and Management Company, AMCAP's investment
adviser.
Finding rapidly expanding companies like Medtronic and Norwest, whose stock
prices do not fully reflect their fundamental values or prospects, is not easy.
Capital Research and Management Company continues its strong commitment to
research. Analysts and portfolio managers interview hundreds of corporate
executives, suppliers, customers and competitors of companies that are
considered for investments by AMCAP Fund. This emphasis on exclusive in-house
research is an important factor in the fund's success.
Success in growth stock investing also calls for conviction and patience - two
qualities that we believe AMCAP has demonstrated throughout its 30-year
history. In an investment marketplace with more than 7,000 available mutual
fund choices, it should be reassuring to know that the fund's style of
investing and philosophy have stood the test of time.
[Photo caption]
Genetic research offers the potential for medical breakthroughs [End photo
caption]
<TABLE>
<S> <C> <C> <C>
AMCAP Fund Investment Portfolio
February 28, 1997
- -------------------------------------------------------------------------------------------------------
Largest Industry Holdings
Business & Public Services 13.22%
Broadcasting & Publishing 9.09
Financial Services 8.40
Health & Personal Care 6.64
Data Processing & Reproduction 6.00
Other Industries 40.49
Cash & Equivalents 16.16
- -------------------------------------------------------------------------------------------------------
Largest Equity-Type Holdings
Walt Disney 4.12%
Philip Morris 3.67
Medtronic 3.66
Federal National Mortgage 3.64
Time Warner 3.46
Comcast 2.22
PacifiCare Health Systems 2.20
Gillette 2.19
Intel 2.01
Student Loan Marketing 1.95
- -------------------------------------------------------------------------------------------------------
Shares or Market Value Percent of
Principal (000) Net Assets
EQUITY-TYPE SECURITIES Amount
- -------------------------------------------------------------------------------------------------------
Business & Public Services - 13.22%
PacifiCare Health Systems, Inc., Class B/1/ 855000 $71,606
PacifiCare Health Systems, Inc., Class A/1/ 150000 12000 2.20%
United HealthCare Corp. 1290000 64339 1.69
CUC International Inc./1/ 1800000 42975
CUC International Inc., 3.00% convertible debentures 2002/2/ $6,000,000 6060 1.29
Federal Express Corp./1/ 940000 48410 1.27
Electronic Data Systems Corp. 1012800 45703 1.20
Avery Dennison Corp. 1000000 40375 1.06
Manpower Inc. 870200 32850 .86
Ceridian Corp./1/ 830000 32474 .85
American Management Systems, Inc./1/ 1150000 20125 .53
Interpublic Group of Companies, Inc. 400000 20050 .53
First Data Corp. 500000 18312 .48
WMX Technologies, Inc. 405000 12808 .34
Vivra Inc./1/ 400000 11900 .31
Humana Inc./1/ 600000 11775 .31
BDM International, Inc./1/ 200000 8400 .22
Value Health, Inc./1/ 131200 3149 .08
Broadcasting & Publishing - 9.09%
Time Warner Inc. 3216000 131,856 3.46
Comcast Corp., Class A special stock 4475000 79990
Comcast Corp., Class A 260000 4534 2.22
Viacom Inc., Class B/1/ 1962200 69167 1.82
Tele-Communications, Inc., Series A,
TCI Group/1/ 2079900 24699 .65
Tele-Communications, Inc., Series A,
Liberty Media Group/1/ 1167750 24523 .64
A. H. Belo Corp., Class A 300000 11325 .30
Financial Services - 8.40%
Federal National Mortgage Assn. 3460000 138400 3.64
Student Loan Marketing Assn. 700000 74112 1.95
Capital One Financial Corp. 1245000 49489 1.30
Federal Home Loan Mortgage Corp. 1374400 40888 1.07
ADVANTA Corp., Class B 213300 8559 .22
Associates First Capital Corp., Class A 175000 8444 .22
Health & Personal Care - 6.64%
Medtronic, Inc. 2150000 139213 3.66
Gillette Co. 1052500 83279 2.19
Pfizer Inc 330000 30236 .79
Data Processing & Reproduction - 6.00%
Oracle Corp./1/ 1817700 71345 1.87
Silicon Graphics, Inc./1/ 1750000 42219 1.11
Solectron Corp./1/ 630200 33322 .88
Intuit Inc./1/ 1039700 23523 .62
Sybase, Inc./1/ 1184200 19391 .51
International Business Machines Corp. 100000 14375 .38
Cisco Systems, Inc./1/ 200000 11125 .29
Sequent Computer Systems, Inc./1/ 560000 9625 .25
3Com Corp./1/ 100000 3311 .09
Leisure & Tourism - 5.80%
Walt Disney Co. 2112644 156864 4.12
Brinker International, Inc./1/ 2700000 32062 .84
Marriott International, Inc. 500000 26500 .70
Harrah's Entertainment, Inc./1/ 295000 5458 .14
Electronic Components - 5.61%
Intel Corp. 540000 76612 2.01
Texas Instruments Inc. 600000 46275 1.22
ADC Telecommunications, Inc./1/ 920000 24840 .65
Bay Networks, Inc./1/ 1300000 24700 .65
Analog Devices, Inc./1/ 825000 19181 .50
Linear Technology Corp. 275000 12513 .33
Seagate Technology/1/ 200000 9450 .25
Merchandising - 5.58%
AutoZone, Inc./1/ 1800000 44550 1.17
Viking Office Products, Inc./1/ 1850000 43706 1.15
Circuit City Stores, Inc. 1000000 31250 .82
Wal-Mart Stores, Inc. 950000 25056 .66
Cardinal Health, Inc., Class A 396393 24378 .64
Walgreen Co. 350000 14963 .39
Staples, Inc./1/ 625000 13516 .36
Intimate Brands, Inc., Class A 400000 7800 .20
Albertson's, Inc. 200000 7050 .19
Banking - 5.23%
Norwest Corp. 1400000 69650 1.83
Golden West Financial Corp. 900000 60975 1.60
Northern Trust Corp. 800000 34000 .89
Banc One Corp. 550000 24269 .64
SunTrust Banks, Inc. 200000 10275 .27
Beverages & Tobacco - 5.11%
Philip Morris Companies Inc. 1035000 139854 3.67
PepsiCo, Inc. 1200000 39450 1.04
Robert Mondavi Corp., Class A/1/ 366700 15035 .40
Telecommunications - 3.11%
Telephone and Data Systems, Inc. 1200000 48000 1.26
AirTouch Communications/1/ 1250000 34062 .89
MCI Communications Corp. 850000 30388 .80
AT&T Corp. 150000 5981 .16
Insurance - 1.07%
American International Group, Inc. 337500 40837 1.07
Transportation: Rail - 1.03%
Wisconsin Central Transportation Corp./1/ 1091700 39165 1.03
Machinery & Engineering - 0.90%
Thermo Electron Corp./1/ 1000000 34125 .90
Transportation: Airlines - 0.77%
Southwest Airlines Co. 750250 17631 .46
AMR Corp./1/ 150000 11794 .31
Recreation & Other Consumer Products - 0.59%
Broderbund Software, Inc./1/ 500000 14687 .39
Electronic Arts/1/ 250000 7813 .20
Electronic Instruments - 0.53%
Applied Materials, Inc./1/ 400000 20250 .53
Aerospace & Military Technology - 0.46%
General Motors Corp., Class H 300000 17700 .46
Food & Household Products - 0.41%
Colgate-Palmolive Co. 150000 15525 .41
Industrial Components - 0.29%
Danaher Corp. 252000 10899 .29
Chemicals - 0.23%
RPM, Inc. 500000 8812 .23
Construction & Housing - 0.10%
Jacobs Engineering Group Inc./1/ 150000 3862 .10
Electrical & Electronics - 0.07%
Lucent Technologies Inc. 48612 2619 .07
Miscellaneous
Other equity-type securites in initial period of
acquisition 136959 3.60
-------------------------
TOTAL EQUITY-TYPE SECURITIES (cost: $2,054,610,000) 3191602 83.84
Principal
Amount
SHORT-TERM SECURITIES (000)
- -------------------------------------------------------------------------------------------------------
Corporate Short-Term Notes - 13.59%
Lucent Technologies Inc. 5.27%-5.32% due 3/10-5/27/97 $69,000 68541 1.80
Sara Lee Corp. 5.30% due 3/26/97 60000 59769 1.57
Coca-Cola Co. 5.23%-5.28% due 4/2-4/7/97 56,900 56617 1.49
H.J. Heinz Co. 5.24%-5.33 due 3/4-4/3/97 49900 49746 1.31
Weyerhaeuser Co. 5.28%-5.30% due 3/3-4/10/97 45500 45437 1.19
Hershey Foods Corp. 5.28% due 3/13-3/21/97 44000 43911 1.15
National Rural Utilities Cooperative Finance Corp. 5.25%-
5.29% due 3/24-5/14/97 44100 43801 1.15
Warner-Lambert Co. 5.24%-5.30% due 3/5-6/13/97 40600 40263 1.06
Motorola Credit Corp. 5.23%-5.28% due 4/3-4/8/97 30925 30768 .81
IBM Credit Corp. 5.31% due 3/19-4/15/97 28900 28739 .75
BellSouth Telecommunications, Inc. 5.31% due 3/7/97 23,500 23476 .62
Ameritech Corp. 5.25%-5.30% due 3/4-4/18/97 17400 17368 .46
General Electric Capital Corp. 5.30% due 4/1/97 9000 8957 .23
Federal Agency Discount Notes - 2.64%
Federal Home Loan Bank 5.20% due 5/15/97 49000 48456 1.27
Federal National Mortgage Assn. 5.22%-5.34% due
3/13-5/13/97 33200 32918 .87
Federal Home Loan Mortgage Corp. 5.25%-5.26% due
3/12-3/27/97 19134 19065 .50
Certificates of Deposit - 0.42%
Morgan Guaranty Trust Co. of New York 5.40% due 4/28/97 16000 16001 .42
-------------------------
TOTAL SHORT-TERM SECURITIES (cost:
$633,874,000) 633833 16.65
-------------------------
TOTAL INVESTMENT SECURITIES (cost:
$2,688,484,000) 3825435 100.49
Excess of payables over cash and receivables 18617 .49
-------------------------
NET ASSETS $3,806,818 100.00%
======== ========
/1/ Non-income-producing securities.
/2/ Purchased in a private placement transaction; resale to the
public may require registration or sale only to qualified
institutional buyers.
See Notes to Financial Statements
The descriptions of the companies shown in the portfolio,
which were obtained from published reports and other
sources believed to be reliable, are supplemental and are
not covered by the Independent Auditors' Report.
Equity-type securities appearing in the portfolio
since August 31,1996
- -----------------------------------------------------------------
Applied Materials
AutoZone
Intimate Brands
Lucent Technologies
Viking Office Products
Equity-type securities eliminated from the portfolio
since August 31, 1996
- -----------------------------------------------------------------
Amgen
AMP
AVX
Delta Air Lines
Digital Equipment
Duracell International
Informix
LIN Television
Loctite
Loewen Group
LSI Logic
Maxim Integrated Products
Motorola
Pitney Bowes
Promus Hotel
Tandem Computers
UST
</TABLE>
<TABLE>
<S> <C> <C>
AMCAP FUND Financial Statements
- ------------------------------------------- -------- --------
Statement of Assets and Liabilities
at February 28, 1997 (dollars in thousands)
- ------------------------------------------- -------- --------
Assets:
Investment securities at market
(cost: $2,688,484) $3,825,435
Cash 246
Receivables for--
Sales of fund's shares $ 1,916
Dividends and accrued interest 2,059 3,975
-------- --------
3,829,656
Liabilities:
Payables for--
Purchases of investments 16,204
Repurchases of fund's shares 3,321
Management services 1,169
Accrued expenses 2,144 22,838
-------- --------
Net Assets at February 28, 1997--
Equivalent to $14.60 per share on
260,734,893 shares of $1 par value
capital stock outstanding (authorized
capital stock--300,000,000 shares) $3,806,818
==========
Statement of Operations for the year
ended February 28, 1997
-------- --------
Investment Income:
Income:
Dividends $ 29,858
Interest 25,351 $ 55,209
--------
Expenses:
Management services fee 14,491
Distribution expenses 6,849
Transfer agent fee 2,685
Reports to shareholders 179
Registration statement and prospectus 143
Postage, stationery and supplies 561
Directors' fees 111
Auditing and legal fees 58
Custodian fee 104
Taxes other than federal income tax 52
Other expenses 117 25,350
-------- --------
Net investment income 29,859
--------
Realized Gain and Unrealized
Depreciation on Investments:
Net realized gain 476,706
Net change in unrealized
appreciation on investments:
Beginning of year 1,230,693
End of year 1,136,951
--------
Net unrealized depreciation
on investments (93,742)
--------
Net realized gain and unrealized
depreciation on investments 382,964
--------
Net Increase in Net Assets Resulting
from Operations $412,823
==========
See Notes to Financial Statements
Statement of Changes in Net
Assets
- --------------------------------------------- -------- --------
Year ended February 28 or 29
1997 1996
Operations: -------- --------
Net investment income $ 29,859 $ 38,834
Net realized gain on investments 476,706 366,352
Net unrealized appreciation (depreciation)
on investments (93,742) 448,727
-------- --------
Net increase in net assets
resulting from operations 412,823 853,913
-------- --------
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (30,602) (40,721)
Distributions from net realized
gain on investments (334,007) (284,911)
-------- --------
Total dividends and distributions (364,609) (325,632)
-------- --------
Capital Share Transactions:
Proceeds from shares sold:
31,306,396 and 36,019,892
shares, respectively 439,313 492,283
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
23,920,709 and 22,741,455 shares,
respectively 342,841 305,933
Cost of shares repurchased:
50,858,558 and 44,261,999
shares, respectively (716,380) (603,782)
-------- --------
Net increase in net assets
resulting from capital share transactions 65,774 194,434
-------- --------
Total Increase in Net Assets 113,988 722,715
Net Assets:
Beginning of year 3,692,830 2,970,115
-------- --------
End of year (including undistributed
net investment income of $5,029 and
$5,772, respectively) $3,806,818 $3,692,830
========== ==========
See Notes to Financial Statements
</TABLE>
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:
Equity-type securities 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 by the Board of Directors or a committee thereof.
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.
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 $104,000 includes $24,000 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 28, 1997, net unrealized appreciation on investments for
book and federal income tax purposes aggregated $1,136,951,000, of which
$1,265,096,000 related to appreciated securities and $128,145,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the year ended February 28, 1997. The cost
of portfolio securities for book and federal income tax purposes was
$2,688,484,000 at February 28, 1997.
3. The fee of $14,491,000 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 28, 1997,
distribution expenses under the Plan were $6,849,000. As of February 28, 1997,
accrued and unpaid distribution expenses were $1,858,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $2,685,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $638,000 (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 February 28,
1997, aggregate amounts deferred and earnings thereon were $275,000.
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 28, 1997, accumulated undistributed net realized gain on
investments was $264,403,000 and additional paid-in capital was $2,139,700,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $772,063,000 and $1,220,237,000, respectively, during
the year ended February 28, 1997.
<TABLE>
<S> <C> <C> <C> <C> <C>
AMCAP FUND
Per-Share Data and Ratios
- ------------------------------------------- ----- ----- ----- ----- -----
Year ended February 28 or 29
----- ----- ----- ----- -----
1997 1996 1995 1994 1993
----- ----- ----- ----- -----
Net Asset Value, Beginning
of Year $14.40 $12.28 $12.98 $13.52 $13.23
----- ----- ----- ----- -----
Income from Investment
Operations:
Net investment income .12 .16 .14 .12 .13
Net realized and unrealized
gain on investments 1.51 3.32 .24 1.28 .63
----- ----- ----- ----- -----
Total income from investment
operations 1.63 3.48 .38 1.40 .76
----- ----- ----- ----- -----
Less Distributions:
Dividends from net investment
income (.12) (.17) (.13) (.12) (.15)
Distributions from net realized
gains (1.31) (1.19) (.95) (1.82) (.32)
----- ----- ----- ----- -----
Total distributions (1.43) (1.36) (1.08) (1.94) (.47)
----- ----- ----- ----- -----
Net Asset Value, End of Year $14.60 $14.40 $12.28 $12.98 $13.52
======= ======= ======= ======= =======
Total Return/1/ 11.74% 29.29% 3.41% 11.31% 5.94%
Ratios/Supplemental Data:
Net assets, end of year (in
millions) $3,807 $3,693 $2,970 $3,063 $3,016
Ratio of expenses to average `
net assets .69% .71% .71% .72% .73%
Ratio of net income to
average net assets .81% 1.16% 1.16% .89% 1.02%
Average commissions paid
per share/2/ 5.05 cents 5.95 cents 5.95 cents 6.54 cents 7.28 cents
Portfolio turnover rate 24.14% 35.16% 17.92% 22.18% 14.72%
/1/Calculated without deducting a sales charge. The
maximum sales charge is 5.75% of the fund's offering price.
/2/ 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 commission), such as fixed-income transactions, are excluded.
</TABLE>
Independent Auditor's 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 28, 1997, 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
as of February 28, 1997 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. as of February 28, 1997, 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 26, 1997
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, Graduate Institute of Applied
Life Sciences at Claremont
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
Senior Vice President and Director,
Capital Research Company
CLAUDIA P. HUNTINGTON
Los Angeles, California
Vice President of the fund
Senior Vice President,
Capital Research 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
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, 33% of the dividends
paid by the fund from net investment income represent 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 92821-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
(Please write to the address nearest you.)
American Funds Service Company
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
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
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,
1997, this report must be accompanied by an American Funds Group Statistical
Update for the most recently completed calendar quarter.
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.
[The American Funds Group(r)]
Litho in USA SM/FS/3201
Lit. No. AMCAP-011-0497
