[The American Funds Group(R)]
AMCAP Fund
Semi-Annual Report for the six months ended August 31, 1998
[illustrations: ruler, eye, puzzle, road]
AMCAP Fund(R) seeks long-term growth of capital by investing in growing,
profitable companies.
AMCAP Fund is one of the 28 mutual 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, 1998
(the most recent calendar quarter), assuming payment of the 5.75% maximum sales
charge at the beginning of the stated periods - 10 years: +288.78%, or +14.54%
a year; 5 years: +97.63%, or +14.60% a year; 12 months: +4.67%. 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.
PREPARING FOR THE YEAR 2000
The fund's key service providers - Capital Research and Management Company, the
investment adviser, and American Funds Service Company, the transfer agent -
are updating their computer systems to process date-related information
properly following the turn of the century. Both are on track to complete
modifications of significant internal systems by the end of 1998. Testing with
business partners, vendors and other service providers is already under way. We
will continue to keep you up-to-date in our regular publications. If you'd like
more detailed information, call Shareholder Services at 800/421-0180, ext. 21,
or visit our Web site at www.americanfunds.com.
FELLOW SHAREHOLDERS:
The six months ended August 31 were turbulent for stock markets around the
world. What began as a financial and currency crisis in Asia spread to other
regions, including Russia and Latin America. Although the U.S. economy remains
on solid footing, many U.S. investors sold stocks because of these
developments. After reaching a high on July 17, the unmanaged Standard & Poor's
500 Stock Composite Index, a broad measure of large U.S. companies, fell 19.3%
through August 31.
AMCAP Fund, which invests in quality U.S. growth companies, also saw the value
of many of its holdings decline. During the first half of the fund's fiscal
year, the value of your investment declined 7.7% if you reinvested the dividend
of 3 cents a share and the capital gain distribution of 45 cents a share paid
in June. Some of our holdings - particularly technology stocks - declined
because of investors' concern that weakening Asian and Latin American demand
for their products would lower future earnings.
[Pull Quote]
AMCAP's six-month results outpaced the indexes we measure it against.
[End Pull Quote]
While no decline is pleasant, it is worth noting that AMCAP's results were
better than those of the indexes we often measure it against. For example, in
the six months ended August 31, the average growth fund lost 13.1%, according
to Lipper Analytical Services. The S&P 500 fell 8.1%, and Standard & Poor's
Midcap 400 Index, which tracks midsize companies, fell 20.0%. Although AMCAP
currently has few holdings in small companies, it is interesting to note that
the Russell 2000 Index, a gauge of smaller U.S. stocks, declined 26.5%. As we
have previously discussed, we compare the fund with these various unmanaged
indexes because AMCAP invests in a mix of large, midsize and small companies
that have demonstrated proven earnings growth, solid management and a strong
business outlook. There is no one index that mirrors the fund closely.
STRENGTH IN CABLE TELEVISION STOCKS
A strong performance by cable television stocks and a sizable cash holding were
welcome offsets to the market volatility of the past six months.
Cable television stocks did well in the recent period because they were not
perceived to be seriously impacted by the financial crises in Asia, Latin
America and Russia. In addition, U.S. cable television companies are benefiting
from strong demand and improved cash flow. Opportunities for revenue growth are
being driven by new technologies such as cable modems and digital set-top
boxes. Gainers included Tele-Communications Liberty Media Group, which owns a
major stake in a number of cable networks (up 19.1%), and Time Warner, a
diversified entertainment and media concern with large cable holdings (also up
19.1%).
Not all entertainment stocks did well, however. Disney, the fund's
eighth-largest holding, fell 26.5% as a result of investors' worries that its
consumer products and theme park revenues would decline from weakening demand
in Asia and Latin America. We consider the problems to be short-lived and
believe the company remains a solid long-term investment.
MIXED RESULTS IN TECHNOLOGY
Technology companies experienced mixed results. Weaker Asian demand for
technology products hurt Oracle, a developer of business computer software
(-19.0%), and Intel, a leading developer of micro-processors (-20.6%). But some
companies showed positive results because of their market advantages and
heavier concentration in U.S. markets. Lexmark International, a maker of
computer printers, rose 41.7% during the period and Cisco Systems, a supplier
of local area networks, increased 24.3%.
[Begin Pull Quote]
The fund is proceeding cautiously in this volatile market.
[End Pull Quote]
Banks were affected because of concerns about their loans in Asia, Latin
America and Russia. Most large money-center banks, which are active in lending
to these troubled regions, were hit hard. Even regional banks, which have
little exposure to overseas lending, suffered price declines, including Norwest
(-27.3%) and Northern Trust (-26.7%).
Our significant cash position stood us in good stead during the volatile first
half of fiscal 1998. As we noted in our most recent annual report, we have been
concerned for some time by the high valuations in the stock market. Despite
recent declines which have lowered valuations, we are proceeding cautiously
with adding to our positions or buying new stocks. Prior to the August decline,
it had been about eight years since the last correction of 15% or more by the
S&P 500 - the longest such period in the past 60 years. As we said in April,
strong periods like this have often been followed by greater market volatility
and lower returns. We will continue to closely monitor overseas developments
and their effects on our U.S.-based investments.
Whatever happens in the near term, we remain convinced that over the long run,
our approach of buying and holding quality companies should prove successful.
Over the fund's 31-year history, AMCAP has produced an average compound return
of 13.0% a year compared with 11.7% for the S&P 500.
We look forward to reporting to you again in the spring.
Cordially,
/s/ R. Michael Shanahan
R. Michael Shanahan
Chairman of the Board
/s/ Claudia P. Huntington
Claudia P. Huntington
President
October 14, 1998
<PAGE>
<TABLE>
AMCAP Fund
Investment Portfolio August 31, 1998
(unaudited)
Largest Industry Holdings
[pie chart]
Broadcasting & Publishing 12.15%
Health & Personal Care 9.61%
Business & Public Services 8.90%
Data Processing & Reproduction 7.49%
Financial Services 6.06%
Other Industries 34.96%
Cash & Equivalents 20.83%
Largest Equity Holdings
Percent of
Net Assets
Philip Morris 3.96%
Time Warner 3.06
Medtronic 2.95
Comcast 2.67
Fannie Mae 2.61
Tele-Communications, Liberty Media Group 2.29
Viacom 2.18
Walt Disney 2.00
SLM Holding 1.97
Norwest 1.80
- ------------------------------------------------------- ------- ------- -------
<S> <C> <C> <C>
Number Market Value Percent of
of (000) Net Assets
Equity Securities (common stocks) Shares
- ------------------------------------------------------- ------- ------- -------
Broadcasting & Publishing - 12.15%
Time Warner Inc. 1,700,000 $136,638 3.06
Comcast Corp., Class A special stock 2,925,000 109,322
Comcast Corp., Class A 260,000 9,750 2.67
Tele-Communications, Inc., Series A, Liberty Media Group (1) 3,131,250 102,353 2.29
Viacom Inc., Class B(1) 1,962,200 97,374 2.18
Harte-Hanks Communications, Inc. 2,140,000 46,946 1.05
Tele-Communications, Inc., Series A, TCI Group(1) 746,062 24,620 .55
Tele-Communications, Inc., Series A, TCI Ventures Group(1) 945,876 15,725 .35
Health & Personal Care - 9.61%
Medtronic, Inc. 2,560,000 131,520 2.95
Pfizer Inc 500,000 46,500 1.04
Guidant Corp. 750,000 46,312 1.04
Boston Scientific Corp.(1) 648,800 44,929 1.01
Gillette Co. 1,000,000 41,125 .92
Avon Products, Inc. 480,000 30,180 .68
DePuy, Inc. 700,000 24,063 .54
Merck & Co., Inc. 200,000 23,188 .52
Alza Corp.(1) 500,000 18,000 .40
Warner-Lambert Co. 225,000 14,681 .32
Schering-Plough Corp. 100,000 8,600 .19
Business & Public Services - 8.90%
Avery Dennison Corp. 1,200,000 64,425 1.44
Concord EFS, Inc.(1) 2,646,900 52,276 1.17
Cendant Corp.(1) 3,975,000 45,961 1.03
Interpublic Group of Companies, Inc. 600,000 34,200 .77
American Management Systems, Inc.(1) 1,100,000 29,425 .66
FIRST HEALTH Group Corp. (1) 1,400,000 28,262 .63
MSC Industrial Direct Co., Inc., Class A(1) 1,049,000 22,095 .50
ServiceMaster Co. 982,500 20,571 .46
Metamor Worldwide, Inc.(1) 701,200 16,653 .37
First Data Corp. 800,000 16,550 .37
ROMAC International, Inc.(1) 770,517 14,447 .32
Paychex, Inc. 330,000 12,540 .28
Columbia/HCA Healthcare Corp. 500,000 11,281 .25
Electronic Data Systems Corp. 322,800 10,814 .24
TeleTech Holdings, Inc.(1) 800,000 6,700 .15
Universal Health Services, Inc., Class B(1) 150,000 5,813 .13
IKON Office Solutions, Inc. 1,000,000 5,563 .13
Data Processing & Reproduction - 7.49%
Oracle Corp.(1) 3,937,500 78,504 1.76
Solectron Corp.(1) 800,000 33,050 .74
Lexmark International Group, Inc., Class A(1) 500,000 30,281 .68
Cisco Systems, Inc.(1) 300,000 24,563 .55
Intuit Inc.(1) 700,000 23,931 .54
Microsoft Corp.(1) 235,000 22,545 .50
International Business Machines Corp. 200,000 22,525 .50
PeopleSoft, Inc. (1) 800,000 22,500 .50
Silicon Graphics, Inc.(1) 1,850,000 16,766 .38
3Com Corp.(1) 700,000 16,581 .37
HNC Software Inc.(1) 415,000 15,070 .34
Ascend Communications, Inc.(1) 275,000 9,625 .22
Compaq Computer Corp. 200,000 5,588 .13
Computer Associates International, Inc. 200,000 5,400 .12
Sun Microsystems, Inc.(1) 94,800 3,756 .08
Sequent Computer Systems, Inc.(1) 560,000 3,605 .08
Financial Services - 6.06%
Fannie Mae 2,051,000 116,522 2.61
SLM Holding Corp. 2,450,000 87,894 1.97
Capital One Financial Corp. 415,000 36,313 .81
Freddie Mac 760,000 30,020 .67
Banking - 5.04%
Norwest Corp. 2,693,900 80,143 1.80
Golden West Financial Corp. 700,000 53,288 1.19
M&T Bank Corp. 85,923 35,228 .79
Marshall & Ilsley Corp. 590,100 25,964 .58
Northern Trust Corp. 450,000 25,088 .56
Imperial Bancorp(1) 250,000 5,156 .12
Beverages & Tobacco - 4.98%
Philip Morris Companies Inc. 3,900,000 162,094 3.63
PepsiCo, Inc. 1,500,000 41,531 .93
Beringer Wine Estates Holdings, Inc. Class B(1) 365,000 11,132 .25
Robert Mondavi Corp., Class A(1) 366,700 7,655 .17
Merchandising - 4.89%
Cardinal Health, Inc., Class A 721,093 63,096 1.41
Consolidated Stores Corp.(1) 1,245,312 39,227 .88
AutoZone, Inc.(1) 1,500,000 38,906 .87
Wal-Mart Stores, Inc. 450,000 26,438 .59
Albertson's, Inc. 500,000 25,281 .57
Intimate Brands, Inc., Class A 700,000 12,950 .29
Circuit City Stores, Inc. 400,000 12,350 .28
Leisure & Tourism - 3.62%
Walt Disney Co. 3,250,000 89,172 2.00
Brinker International, Inc.(1) 3,250,000 55,656 1.24
McDonald's Corp. 304,100 17,049 .38
Electronic Components - 3.28%
Intel Corp. 700,000 49,831 1.12
Texas Instruments Inc. 700,000 33,381 .74
ADC Telecommunications, Inc.(1) 1,020,000 22,631 .51
Analog Devices, Inc.(1) 825,000 11,602 .26
Littelfuse, Inc.(1) 590,000 9,883 .22
Adaptec, Inc.(1) 806,300 9,272 .21
Sanmina Corp.(1) 200,000 6,175 .14
Seagate Technology(1) 200,000 3,500 .08
Chemicals - 1.89%
Cambrex Corp. 1,060,000 24,247 .54
Airgas, Inc.(1) 1,500,000 17,813 .40
Sigma-Aldrich Corp. 600,000 16,650 .38
Ionics, Inc.(1) 600,000 14,738 .33
Praxair, Inc. 300,000 10,762 .24
Insurance - 1.62%
American International Group, Inc. 587,500 45,421 1.02
MGIC Investment Corp. 650,000 26,975 .60
Telecommunications - 1.57%
AirTouch Communications(1) 1,250,000 70,313 1.57
Machinery & Engineering - 1.17%
IDEX Corp. 900,000 18,900 .42
Millipore Corp. 800,000 17,350 .39
Thermo Electron Corp.(1) 1,000,000 16,250 .36
Recreation & Other Consumer Products - 1.01%
Harley-Davidson, Inc. 1,075,000 33,123 .74
Broderbund Software, Inc.(1) 869,700 12,121 .27
Industrial Components - 0.91%
Tower Automotive, Inc.(1) 1,400,000 25,638 .58
Lear Corp.(1) 365,000 14,805 .33
Electronic Instruments - 0.58%
Applied Materials, Inc.(1) 800,000 19,650 .44
CIENA Corp.(1) 230,000 6,469 .14
Real Estate - 0.53%
Security Capital Group Inc., Class A(1) 23,500 23,500 .53
Textiles & Apparel - 0.27%
Liz Claiborne Inc. 385,000 10,972 .25
Tommy Hilfiger Corp.(1) 18,900 884 .02
Energy Equipment - 0.26%
Camco International, Inc. 232,400 11,678 .26
Transportation: Rail - 0.19%
Wisconsin Central Transportation Corp.(1) 675,000 8,480 .19
Aerospace & Military Technology - 0.17%
Raytheon Co., Class A 112,480 5,041 .12
General Motors Corp., Class H 65,000 2,348 .05
Miscellaneous - 2.98%
Other equity securities in initial period of
acquisition 133,004 2.98
------- -------
TOTAL EQUITY SECURITIES (cost: $2,484,748,000) 3,535,252 79.17
------- -------
Principal Market Value Percent of
Amount (000) Net Assets
SHORT-TERM SECURITIES (000)
- ------------------------------------------------------- ------- ------- -------
Corporate Short-Term Notes - 17.28%
Procter & Gamble Co. 5.45%-5.50% due 9/11-12/14/98 82,700 82,188 1.84
A.I. Credit Corp. 5.48%-5.51% due 9/1-10/15/98 80,900 80,596 1.80
International Lease Finance Corp. 5.49%-5.51% due 9/3-11/17/98 66,700 66,368 1.49
Xerox Corp. 5.50% due 9/1-9/16/98 65,300 65,202 1.46
Lucent Technologies Inc. 5.47%-5.49% due 9/23-10/23/98 64,600 64,278 1.44
General Electric Capital Corp. 5.50% due 10/27-11/23/98 61,500 60,840 1.36
Coca-Cola Co. 5.47%-5.49% due 9/14-10/20/98 54,113 53,770 1.20
National Rural Utilities Cooperative Finance Corp. 51,700 51,198 1.15
5.49%-5.50% due 10/26-11/13/98
Ford Motor Credit Co. 5.51%-5.52% due 9/2-10/21/98 47,250 47,031 1.06
American Express Credit Corp. 5.50% due 10/1/98 44,800 44,588 1.00
Motorola, Inc. 5.46%-5.48% due 11/12-12/17/98 42,100 41,574 .93
H.J. Heinz Co. 5.49%-5.50% due 9/24-9/30/98 41,700 41,532 .93
General Motors Acceptance Corp. 5.51% due 9/9-10/22/98 38,300 38,051 .85
Monsanto Co. 5.50%-5.51% due 11/2/98-1/12/99 35,000 34,554 .77
Federal Agency Discount Notes - 3.19%
Fannie Mae 5.42%-5.45% due 9/25-10/13/98 76,500 76,100 1.71
Freddie Mac 5.41%-5.465% due 9/4-11/5/98 66,500 66,250 1.48
------- -------
TOTAL SHORT-TERM SECURITIES (cost:
$914,129,000) 914,120 20.47
------- -------
TOTAL INVESTMENT SECURITIES (cost:
$3,398,877,000) 4,449,372 99.64
Excess of cash and receivables over payables 15,959 .36
------- -------
NET ASSETS 4,465,331 100.00
======= =======
(1) Non-income-producing securities.
See Notes to Financial Statements
</TABLE>
<TABLE>
AMCAP FUND Financial Statements
- ------------------------------------------------------------------------
<S> <C> <C>
Statement of Assets and Liabilities
at August 31, 1998 (dollars in thousands) (unaudited)
- ------------------------------------------------------------------------
Assets:
Investment securities at market
(cost: $3,398,877) $4,449,372
Cash 139
Receivables for--
Sales of investments $58,234
Sales of fund's shares 3,481
Dividends 2,090 63,805
---------------------------------
4,513,316
Liabilities:
Payables for--
Purchases of investments 35,815
Repurchases of fund's shares 7,563
Management services 1,625
Other expenses 2,982 47,985
---------------------------------
Net Assets at August 31, 1998--
Equivalent to $15.19 per share on
293,968,513 shares of $1 par value
capital stock outstanding (authorized
capital stock--300,000,000 shares) $4,465,331
=================
Statement of Operations for the six
months ended August 31, 1998 (dollars in thousands) (unaudited)
---------------------------------
Investment Income:
Income:
Dividends $ 12,238
Interest 18,182 $ 30,420
------------------
Expenses:
Management services fee 9,746
Distribution expenses 5,392
Transfer agent fee 1,272
Reports to shareholders 142
Registration statement and prospectus 168
Postage, stationery and supplies 338
Directors' fees 46
Auditing and legal fees 45
Custodian fee 46
Taxes other than federal income tax 1
Other expenses 59 17,255
---------------------------------
Net investment income 13,165
-----------------
Realized Gain and Unrealized
Depreciation on Investments:
Net realized gain 508,651
Net decrease in unrealized
appreciation on investments:
Beginning of period 1,945,960
End of period 1,050,495
------------------
Net unrealized depreciation
on investments (895,465)
-----------------
Net realized gain and unrealized
depreciation on investments (386,814)
-----------------
Net Decrease in Net Assets Resulting
From Operations $(373,649)
=================
See Notes to Financial Statements
Statement of Changes in Net
Assets (dollars in thousands)
- -------------------------------------------------------------------------
Six months ended Year ended
August 31, 1998*February 28, 1998
Operations: ---------------------------------
Net investment income $ 13,165 $ 26,218
Net realized gain on investments 508,651 509,966
Net unrealized appreciation (depreciation)
on investments (895,465) 809,009
---------------------------------
Net increase (decrease) in net assets
resulting from operations (373,649) 1,345,193
---------------------------------
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (8,630) (26,109)
Distributions from net realized
gain on investments (129,448) (646,989)
---------------------------------
Total dividends and distributions (138,078) (673,098)
---------------------------------
Capital Share Transactions:
Proceeds from shares sold:
19,327,915 and 23,535,997
shares, respectively 339,662 366,597
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
7,611,520 and 42,604,643 shares,
respectively 129,236 630,147
Cost of shares repurchased:
21,888,154 and 37,958,301
shares, respectively (382,374) (585,123)
---------------------------------
Net increase in net assets
resulting from capital share transact 86,524 411,621
---------------------------------
Total Increase (Decrease) in Net Assets (425,203) 1,083,716
Net Assets:
Beginning of period 4,890,534 3,806,818
---------------------------------
End of period (including undistributed
net investment income of $9,673 and
$5,138, respectively) $4,465,331 $4,890,534
=================================
* Unaudited
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 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 by a committee appointed by 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
and premiums on securities purchased are amortized. 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, 1998, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $1,050,495,000, of which
$1,376,150,000 related to appreciated securities and $325,655,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the six months ended August 31, 1998. The
cost of portfolio securities for book and federal income tax purposes was
$3,398,877,000 at August 31, 1998.
3. The fee of $9,746,000 for management services was incurred 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,
1998, distribution expenses under the Plan were $5,392,000. As of August 31,
1998, accrued and unpaid distribution expenses were $2,497,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $1,272,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $708,000 (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,
1998, aggregate amounts deferred and earnings thereon were $375,000.
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, 1998, accumulated undistributed net realized gain on
investments was $506,583,000 and additional paid-in capital was $2,604,611,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $600,936,000 and $1,062,501,000, respectively, during
the six months ended August 31, 1998.
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 $46,000 includes $12,000 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 Year ended February 28 or 29
ended
August 31,
1998(1) 1998 1997 1996 1995 1994
Net Asset Value, Beginning
of Period $16.93 $14.60 $14.40 $12.28 $12.98 $13.52
Income (Loss) from Investment
Operations:
Net investment income .05 .10 .12 .16 .14 .12
Net realized and unrealized
gain (loss) on investments (1.31) 4.80 1.51 3.32 .24 1.28
Total income (loss) from investment
operations (1.26) 4.90 1.63 3.48 .38 1.40
Less Distributions:
Dividends from net investment
income (.03) (.10) (.12) (.17) (.13) (.12)
Distributions from net realized
gains (.45) (2.47) (1.31) (1.19) (.95) (1.82)
Total distributions (0.48) (2.57) (1.43) (1.36) (1.08) (1.94)
Net Asset Value, End of Period $15.19 $16.93 $14.60 $14.40 $12.28 $12.98
Total Return(2) (7.74%)(3) 36.97% 11.74% 29.29% 3.41% 11.31%
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $4,465 $4,891 $3,807 $3,693 $2,970 $3,063
Ratio of expenses to average
net assets .34% (3) .68% .69% .71% .71% .72%
Ratio of net income to
average net assets 0.26% (3) .62% .81% 1.16% 1.16% .89%
Portfolio turnover rate 13.82% (3) 31.42% 24.14% 35.16% 17.92% 22.18%
(1)Unaudited
(2)Excludes maximum sales charge
of 5.75%.
(3)Based on operations for the
period shown and, accordingly,
not representative of a full
year.
</TABLE>
<PAGE>
[The American Funds Group(R)]
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 92821-5823
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
O'Melveny & Myers LLP
400 South Hope Street
Los Angeles, California 90071-2899
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, 1998, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
Printed on recycled paper
Litho in USA SM/FS/3981
Lit. No. AMCAP-013-1098
45050/15048
