[The American Funds Group(r)]
AMCAP FUND
SEMI-ANNUAL REPORT FOR THE SIX MONTHS ENDED AUGUST 31, 1999
[photographs: plumb bob, remote control, computer mouse, spoonful
of red liquid]
AMCAP FUND(R) SEEKS LONG-TERM GROWTH OF CAPITAL BY INVESTING IN GROWING,
PROFITABLE COMPANIES LOCATED PRIMARILY IN THE U.S.
AMCAP Fund is one of the 29 mutual funds in The American Funds Group,(r) the
nation's third-largest mutual fund family. For more than six decades, Capital
Research and Management Company, the American Funds adviser, has invested with
a long-term focus based on thorough research and attention to risk.
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 -
have updated all computer systems to process date-related information properly
following the turn of the century. Other preparations continue, including
external monitoring and contingency planning. 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.
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, 1999
(the most recent calendar quarter), assuming payment of the 5.75% maximum sales
charge at the beginning of the stated periods - 10 years: +278.93%, or +14.25%
a year; 5 years: +147.51%, or +19.87% a year; 12 months: +21.29%. Sales charges
are lower for accounts of $50,000 or more.
Figures shown are past results and are not predictive of future results. Share
price and return will vary, so you may lose money. Investing for short periods
makes losses more likely. Investments are not FDIC-insured, nor are they
deposits of, or guaranteed by, a bank or any other entity.
FELLOW SHAREHOLDERS:
AMCAP Fund generated a moderate gain in the first six months of the current
fiscal year. The value of your investment rose 5.2% from March 1 through August
31 if you reinvested the dividend of 3 cents a share and the capital gain
distribution of 82 cents paid in June. Technology stocks, the fund's largest
investment position, were particularly strong. Our entertainment and cable
holdings, however, which helped boost AMCAP's total return for fiscal 1999
(ended February 28), were down during the period.
While the fund's long-term results continue to outpace the averages, AMCAP's
six-month return did not quite match the benchmarks we measure it against. The
average growth fund, as measured by Lipper, Inc., returned 7.6%. Standard &
Poor's 500 Stock Composite Index, a measure of large U.S. companies, gained
7.3% and Standard & Poor's Midcap 400 Index, which tracks midsize companies,
increased 10.9%. We use both these unmanaged indexes for comparative purposes,
since AMCAP invests in growth companies of varying sizes.
Over longer, more meaningful periods, AMCAP has compared favorably with similar
funds and indexes, as this table shows:
TOTAL RETURNS*
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Lifetime
Average Annual
6 Months 12 Months Compound Returns
3/1/99 - 8/31/99 9/1/98 - 8/31/99 5/1/67 - 8/31/99
AMCAP Fund 5.2% 38.1% 13.7%
Lipper Growth Funds Average 7.6 40.4 12.1
S&P 500 Composite Index 7.3 39.8 12.5
S&P 400 Midcap Index 10.9 41.6 N/A
</TABLE>
*with dividends reinvested
TECHNOLOGY STOCKS SHOW STRENGTH. Technology stock gains were fueled by
improving markets in communications and computer systems. Among our larger
holdings, Texas Instruments, a maker of digital signal processors used in
cellular phones, modems and other advanced electronic devices, rose 84.0% in
price. Computer Associates, a supplier of computer systems management software,
gained 34.5%.
Entertainment and cable stocks took a breather after very strong gains in the
last fiscal year. Time Warner, the fund's second-largest investment, declined
8.0% after a 91.1% gain in fiscal 1999. Viacom, the owner of Paramount
Pictures, the Blockbuster video chain and cable networks MTV and Nickelodeon,
was off 4.8% for the six months, after rising 84.1% last year. While the
fundamentals of these companies remain strong, their stock prices were affected
by profit-taking.
Merger Trend Affects Portfolio. The portfolio has also been affected by an
increased pace of mergers and acquisitions. AirTouch Communications merged with
Vodafone Group, creating one of the world's largest wireless telephone
companies. AT&T acquired Liberty Media and Tele-Communications, adding cable
television to its product line. Lucent Technologies acquired Ascend
Communications, further building its position in data networking. Royal & Sun
Alliance Insurance Group acquired Orion Capital, extending its specialty
insurance line. Abbott Laboratories agreed to acquire ALZA, a drug company that
specializes in drug delivery systems. After the end of our reporting period,
Viacom agreed to merge with CBS.
MERGERS AND ACQUISITIONS such as these are among the forces that have driven
the stock market to higher and higher returns. While we are delighted to
participate in this rising market, we do not believe that it will continue at
this pace indefinitely. Strong periods like this have often been followed by
greater market volatility and lower returns. Therefore, it is important to take
a long-term perspective on your investments and maintain realistic expectations
for the future.
We look forward to reporting to you again in the first spring of the next
millennium.
Cordially,
/s/R. Michael Shanahan /s/Claudia P. Huntington
R. Michael Shanahan Claudia P. Huntington
Chairman of the Board President
October 14, 1999
<TABLE>
<S> <C> <C> <C>
Amcap Fund, Inc. Percent
Investment Portfolio, August 31, 1999 of Net
(unaudited) Assets
- ---------------------------------------------------------------------
Largest Industry Holdings
Data Processing & Reproduction 11.87%
Business & Public Services 11.28%
Broadcasting & Publishing 9.48%
Electronic Components 8.23%
Health & Personal Care 7.90%
Other Industries 32.90%
Cash & Equivalents 18.34%
Largest Individual Equity Holdings
Medtronic 3.18%
Time Warner 2.73%
Philip Morris 2.61%
Viacom 2.15%
AT&T - Liberty Media Group 2.15%
Fannie Mae 2.02%
Computer Associates 1.93%
Robert Half International 1.82%
Lexmark International 1.72%
SLM Holding 1.72%
Number Market Percent
of Value Of Net
Equity Securitites (common stocks) Shares (000) Assets
- --------------------------------------------------------------------------------------
DATA PROCESSING & REPRODUCTION - 11.87%
Computer Associates International, Inc. 2,150,00 $ 121,47 1.93%
Lexmark International Group, Inc., Class A (1) 1,375,00 108,281 1.72
Oracle Corp. (1) 2,806,25 102,428 1.62
Microsoft Corp. (1) 1,075,00 99,505 1.58
Cisco Systems, Inc.(1) 1,100,00 74,594 1.18
Gateway, Inc. (formerly Gateway 2000, Inc.) (1) 450,000 43,622 .69
HNC Software Inc. (1) 1,030,00 37,466 .59
Cadence Design Systems, Inc. (1) 2,300,00 31,337 .50
International Business Machines Corp. 250,000 31,141 .49
Intuit Inc. (1) 300,000 26,869 .43
Silicon Graphics, Inc. (1) 1,850,00 21,159 .34
3Com Corp. (1) 700,000 17,369 .26
PeopleSoft, Inc. (1) 1,100,00 15,537 .25
Synopsys, Inc. (1) 200,000 11,188 .18
Compaq Computer Corp. 300,000 6,956 .11
BUSINESS & PUBLIC SERVICES - 11.28%
Robert Half International Inc. (1) 4,375,00 114,844 1.82
Concord EFS, Inc. (1) 2,585,10 95,972 1.52
Galileo International, Inc. 1,800,00 87,300 1.38
Interpublic Group of Companies, Inc. 1,200,00 47,550 .75
Young & Rubicam Inc. 1,065,50 47,548 .75
ServiceMaster Co. 2,782,50 45,911 .73
Medicis Pharmaceutical Corp., Class A (1) 1,400,00 38,150 .61
Paychex, Inc. 1,200,00 35,325 .56
Avery Dennison Corp. 600,000 32,925 .52
First Health Group Corp. (1) 1,400,00 30,187 .48
Cendant Corp. (1) 1,297,12 23,267 .37
Metamor Worldwide, Inc. (1) 1,300,00 20,841 .33
MSC Industrial Direct Co., Inc., Class A (1) 1,675,00 16,017 .25
Sabre Group Holdings, Inc., Class A (1) 250,000 14,000 .22
Columbia/HCA Healthcare Corp. 500,000 12,313 .20
IKON Office Solutions, Inc. 1,000,00 11,125 .18
Quintiles Transnational Corp. (1) 300,000 10,744 .17
Universal Health Services, Inc., Class B (1) 250,000 8,344 .13
Equifax Inc. 250,000 7,625 .12
Acxiom Corp. (1) 400,000 7,025 .11
Shared Medical Systems Corp. 75,000 4,214 .07
Triad Hospitals, Inc. (1) 26,315 294 .01
LifePoint Hospitals, Inc. (1) 26,316 181 .00
BROADCASTING & PUBLISHING - 9.48%
Time Warner Inc. 2,900,00 172,006 2.73
Viacom Inc., Class B (1) 3,224,40 135,626 2.15
AT&T Corp. - Liberty Media Group, Class A (1)
(formerly Tele-Communications, Inc., 4,229,69 135,350 2.15
Liberty Media Group)
Clear Channel Communications, Inc. (1) 650,000 45,541 .72
Comcast Corp., Class A, special stock 1,300,00 42,413 .67
Harte-Hanks Communications, Inc. 1,777,00 39,871 .63
Infinity Broadcasting Corp., Class A (1) 1,000,00 27,063 .43
ELECTRONIC COMPONENTS - 8.23%
Intel Corp. 1,200,00 98,625 1.56
Texas Instruments Inc. 1,200,00 98,475 1.56
Solectron Corp. (1) 1,000,00 78,250 1.24
Sanmina Corp. (1) 855,000 64,125 1.02
Analog Devices, Inc. (1) 825,000 42,488 .67
SCI Systems, Inc. (1) 700,000 34,869 .55
ADC Telecommunications, Inc. (1) 800,000 29,650 .47
Molex Inc. 800,000 25,650 .41
Adaptec, Inc. (1) 500,000 19,500 .31
Jabil Circuit, Inc. (1) 350,000 15,684 .25
Littelfuse, Inc. (1) 590,000 11,726 .19
HEALTH & PERSONAL CARE - 7.90%
Medtronic, Inc. 2,560,00 200,320 3.18
Guidant Corp. 1,500,00 88,031 1.39
Avon Products, Inc. 1,160,00 50,895 .81
Pfizer Inc 1,200,00 45,300 .72
Gillette Co. 500,000 23,312 .37
Sybron International Corp. (1) 900,000 23,175 .37
Bergen Brunswig Corp., Class A 1,000,00 15,437 .24
Stryker Corp. 240,000 13,830 .22
Watson Pharmaceuticals, Inc. (1) 300,000 10,763 .17
Schering-Plough Corp. 200,000 10,513 .16
Cardinal Health, Inc. 144,589 9,218 .15
ALZA Corp. (1) 150,000 7,556 .12
FINANCIAL SERVICES - 5.42%
Fannie Mae 2,051,00 127,418 2.02
SLM Holding Corp. 2,450,00 108,259 1.72
Providian Financial Corp. 492,800 38,254 .61
Freddie Mac 630,000 32,445 .51
Capital One Financial Corp. 420,000 15,855 .25
Associates First Capital Corp., Class A 325,000 11,152 .18
MBNA Corp. 332,700 8,213 .13
BEVERAGES & TOBACCO - 3.92%
Philip Morris Companies Inc. 4,400,00 164,725 2.61
PepsiCo, Inc. 1,600,00 54,600 .87
Beringer Wine Estates Holdings, Inc., Class B (1) 365,000 15,193 .24
Robert Mondavi Corp., Class A (1) 366,700 12,674 .20
MERCHANDISING - 3.92%
Kohl's Corp. (1) 950,000 67,687 1.07
Albertson's, Inc. 1,250,00 59,922 .95
Consolidated Stores Corp. (1) 3,145,31 50,718 .80
AutoZone, Inc. (1) 1,900,00 45,244 .72
Lowe's Companies, Inc. 300,000 13,575 .22
Circuit City Stores, Inc. 230,400 9,907 .16
BANKING - 3.45%
Wells Fargo & Co. 2,700,00 107,494 1.71
M&T Bank Corp. 85,923 39,868 .63
Northern Trust Corp. 450,000 38,165 .61
Bank of America Corp. 500,000 30,250 .48
Imperial Bancorp (1) 90,100 1,532 .02
INSURANCE - 1.78%
American International Group, Inc. 734,375 68,068 1.08
Mercury General Corp. 700,000 21,175 .34
MGIC Investment Corp. 380,000 16,506 .26
Progressive Corp. 62,600 6,385 .10
TELECOMMUNICATIONS - 1.76%
Western Wireless Corp., Class A (1) 2,090,00 80,857 1.28
MCI WorldCom, Inc. (1) 400,000 30,300 .48
CHEMICALS - 1.68%
Cambrex Corp. 1,130,00 30,369 .48
RPM, Inc. 2,000,00 26,625 .43
Ionics, Inc. (1) 700,000 20,475 .32
Praxair, Inc. 350,000 16,450 .26
Airgas, Inc. (1) 600,000 7,875 .12
Monsanto Co. 100,000 4,106 .07
MACHINERY & ENGINEERING - 1.53%
Millipore Corp. 1,362,80 51,446 .82
IDEX Corp. 977,000 28,882 .46
Thermo Electron Corp. (1) 1,000,00 15,875 .25
LEISURE & TOURISM - 1.28%
Brinker International, Inc. (1) 2,950,00 70,800 1.12
Papa John's International, Inc. (1) 250,000 9,938 .16
UTILITIES: ELECTRIC & GAS - 0.87%
Citizens Utilities Co., Series B (1) 5,000,00 55,000 .87
INDUSTRIAL COMPONENTS - 0.79%
Tower Automotive, Inc. (1) 1,750,00 35,000 .56
Lear Corp. (1) 365,000 14,668 .23
ELECTRONIC INSTRUMENTS - 0.73%
Applied Materials, Inc. (1) 650,000 46,191 .73
ENERGY EQUIPMENT - 0.66%
Schlumberger Ltd. 624,232 41,668 .66
TEXTILES & APPAREL - 0.59%
NIKE, Inc., Class B 800,000 37,000 .59
WHOLESALE & INTERNATIONAL TRADE - 0.53%
Tech Data Corp. (1) 900,000 33,356 .53
RECREATION & OTHER CONSUMER PRODUCTS - 0.37%
Mattel, Inc. 600,000 12,788 .21
Harley-Davidson, Inc. 190,000 10,355 .16
FOOD & HOUSEHOLD PRODUCTS - 0.34%
Colgate-Palmolive Co. 400,000 21,400 .34
MULTI-INDUSTRY - 0.18%
Dover Corp. 300,000 11,606 .18
TRANSPORTATION: RAIL & ROAD - 0.17%
Wisconsin Central Transportation Corp. (1) 675,000 10,758 .17
BUILDING MATERIALS & COMPONENTS - 0.14%
Elcor Corp. 459,600 8,847 .14
Miscellaneous - 2.79%
OTHER EQUITY SECURITIES IN INITIAL PERIOD OF ACQUSITION 176,186 2.79
------------------
TOTAL EQUITY SECURITIES (COST: $3,296,379,000 ) 5,149,996 81.66
------------------
Principa Market Percent
Amount Value of Net
Short-Term Securities (000) (000) Assets
- --------------------------------------------------------------------------------------
Corporate Short-Term Notes - 13.53%
Ford Motor Credit Co. 5.00%-5.25% due $79,800 $ 79,45 1.26
9/2-11/8/1999
American Express Credit Corp. 5.09%-5.65% 79,000 78,473 1.24
due 9/9/1999-1/24/2000
Associates Corp. of North America 5.12%-5.53% 75,800 75,651 1.21
due 9/1-9/20/1999
National Rural Utilities Cooperative Finance Corp. 73,000 72,408 1.14
5.10%-5.31% due 10/8-11/10/1999
International Lease Finance Corp. 5.10%-5.18% 61,500 60,985 .96
due 10/20-11/2/1999
E.I. Du Pont de Nemours and Co. 5.17%-5.60% 57,400 56,370 .89
due 10/13/1999-2/11/2000
Eastman Kodak Co. 5.12%-5.30% due 10/19-11/3/1999 54,100 53,683 .84
Equilon Enterprises, LLC 5.15%-5.25% 50,000 49,643 .79
due 10/8-10/26/1999
Procter & Gamble Co. 5.10%-5.30% due 10/1-11/30/1999 49,900 49,612 .79
CIT Group Holdings, Inc. 5.12%-5.30% 48,100 47,804 .77
due 9/27-11/10/1999
Lucent Technologies Inc. 5.07%-5.29% 48,000 47,703 .75
due 9/13-11/12/1999
General Motors Acceptance Corp. 5.12%-5.30% 45,100 44,841 .71
due 10/5-10/15/1999
Duke Energy Corp. 5.05%-5.13% due 9/8-10/13/1999 42,800 42,588 .68
H.J. Heinz Co. 5.53% due 2/4/2000 40,700 39,699 .63
Emerson Electric Co. 5.31% due 2/1/2000 30,700 29,962 .48
AIG Funding, Inc. 5.07% due 9/17/1999 24,500 24,441 .39
Federal Agency Discount Notes - 5.17%
Freddie Mac 4.98%-5.405% due 9/10/1999-2/3/2000 131,714 129,959 2.06
Fannie Mae 4.92%-5.24% due 9/7-11/18/1999 115,073 114,586 1.82
Federal Home Loan Banks 4.87%-5.44% 82,300 81,524 1.29
due 9/3/1999-2/25/2000
------------------
TOTAL SHORT-TERM SECURITIES (COST: $1,179,566,000) 1,179,390 18.70
------------------
TOTAL INVESTMENT SECURITIES: (COST: 4,475,945,000) 6,329,386 100.36
Excess of payables over cash and receivables 22,485 .36
------------------
NET ASSETS $6,306,90 100.00%
==================
(1) Non-income producing securities
See Notes to Financial Statements
Equity securities appearing in the portfolio
since February 28, 1999
Acxiom
Associates First Capital
Bank of America
Citizens Utilities
Dover
Elcor
Equifax
Jabil Circuit
Lifepoint Hospitals
Lowe's Companies
MBNA
MCI WorldCom
Medicis Pharmaceutical
Monsanto
Papa John's International
Progressive
Quintiles Transnational
Robert Half International
Sabre Group Holdings
Shared Medical Systems
Stryker
Sybron International
Triad Hospitals
Western Wireless
Equity securities eliminated from the portfolio
since February 28, 1999
AirTouch Communications
Ascend Communications
Cambridge Technology Partners (Massachusetts)
Disney
First Data
Liz Claiborne
Marshall & Ilsley
Merck & Co.
Orion Capital
Raytheon
ROMAC International
Sequent Computer Systems
Sigma-Aldrich
Tele-Communications, TCI Group
Tele-Communicaitons, TCI Ventures Group
TeleTech Holdings
</TABLE>
<TABLE>
AMCAP FUND Financial Statements
<S> <C> <C>
- ------------------------------------------- --------------------------------
Statement of Assets and Liabilities
at August 31, 1999 (dollars in thousands) (unaudited)
- ------------------------------------------- --------------------------------
Assets:
Investment securities at market
(cost: $4,475,945) $6,329,386
Cash 99
Receivables for--
Sales of fund's shares $4,229
Dividends 1,794 6,023
---------------------------------
6,335,508
Liabilities:
Payables for--
Purchases of investments 17,751
Repurchases of fund's shares 5,222
Management services 1,968
Other expenses 3,666 28,607
---------------------------------
Net Assets at August 31, 1999--
Equivalent to $17.94 per share on
351,473,027 shares of $1 par value
capital stock outstanding (authorized
capital stock--500,000,000 shares) $6,306,901
=================
Statement of Operations for the six
months ended August 31, 1999 (dollars in thousands) (unaudited)
---------------------------------
Investment Income:
Income:
Dividends $ 14,294
Interest 26,442 $ 40,736
------------------
Expenses:
Management services fee 11,591
Distribution expenses 7,149
Transfer agent fee 1,804
Reports to shareholders 165
Registration statement and prospectus 283
Postage, stationery and supplies 309
Directors' fees 65
Auditing and legal fees 49
Custodian fee 54
Taxes other than federal income tax 1
Other expenses 62 21,532
---------------------------------
Net investment income 19,204
-----------------
Realized Gain and Unrealized
Depreciation on Investments:
Net realized gain 522,185
Net decrease in unrealized
appreciation on investments:
Beginning of period 2,082,157
End of period 1,853,441
------------------
Net unrealized depreciation
on investments (228,716)
-----------------
Net realized gain and unrealized
depreciation on investments 293,469
-----------------
Net Increase in Net Assets Resulting
From Operations $312,673
=================
See Notes to Financial Statements
Statement of Changes in Net
Assets (dollars in thousands)
- --------------------------------------------- ---------------------------------
Six months ended Year ended
August 31, 1999*February 28, 1999
Operations: ---------------------------------
Net investment income $ 19,204 $ 36,888
Net realized gain on investments 522,185 849,757
Net unrealized appreciation (depreciation)
on investments (228,716) 136,197
---------------------------------
Net increase in net assets
resulting from operations 312,673 1,022,842
---------------------------------
Dividends and Distributions
Paid to Shareholders:
Dividends from net investment income (10,091) (38,213)
Distributions from net realized
gain on investments (275,823) (673,768)
---------------------------------
Total dividends and distributions (285,914) (711,981)
---------------------------------
Capital Share Transactions:
Proceeds from shares sold:
25,993,988 and 46,252,114
shares, respectively 476,385 807,601
Proceeds from shares issued in
reinvestment of net investment income
dividends and distributions of net
realized gain on investments:
14,724,418 and 39,917,389 shares,
respectively 268,849 663,119
Cost of shares repurchased:
22,079,462 and 42,252,652
shares, respectively (404,010) (733,197)
---------------------------------
Net increase in net assets
resulting from capital share transactions 341,224 737,523
---------------------------------
Total Increase in Net Assets 367,983 1,048,384
Net Assets:
Beginning of period 5,938,918 4,890,534
---------------------------------
End of period (including undistributed
net investment income of $12,926 and
$3,813, respectively) $6,306,901 $5,938,918
=================================
* Unaudited
See Notes to Financial Statements
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - 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.
SIGNIFICANT ACCOUNTING POLICIES - The financial statements have been
prepared in conformity with generally accepted accounting principles which
require management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from those estimates. The following is a summary of the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
SECURITY VALUATION - 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. Short-term securities
maturing within 60 days are valued at amortized cost, which approximates market
value. 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.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - Security
transactions are accounted for as of the trade date. Realized gains and losses
from securities transactions are determined based on specific identified cost.
Dividend income is recognized on the ex-dividend date, and interest income is
recognized on an accrual basis. Market discounts, premiums and original issue
discounts on securities purchased are amortized daily over the expected life of
the security.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS - Dividends and distributions
paid to shareholders are recorded on the ex-dividend date.
2. FEDERAL INCOME TAXATION
The fund complies with the requirements of the Internal Revenue Code
applicable to regulated investment companies and intends to distribute all of
its net taxable income and net capital gains for the fiscal year. As a
regulated investment company, the fund is not subject to income taxes if such
distributions are made. Required distributions are determined on a tax basis
and may differ from net investment income and net realized gains for financial
reporting purposes. In addition, the fiscal year in which amounts are
distributed may differ from the year in which the net investment income and net
realized gains are recorded by the fund.
As of August 31, 1999, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $1,853,441,000 of which
$2,188,158,000 related to appreciated securities and $334,717,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the six months ended August 31, 1999.
The cost of portfolio securities for book and federal income tax purposes was
$4,475,945,000 at August 31, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $11,591,000 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.
DISTRIBUTION EXPENSES - 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, 1999, distribution expenses under the Plan were $7,149,000. As
of August 31, 1999, accrued and unpaid distribution expenses were $3,014,000.
American Funds Distributors, Inc. (AFD), the principal underwriter of the
fund's shares, received $1,255,000 (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.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer
agent for the fund, was paid a fee of $1,804,000.
DEFERRED DIRECTOR'S FEES - 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, 1999, aggregate deferred amounts and earnings
thereon since the deferred compensation plan's adoption (1993) net of any
payments to Directors, were $640,000.
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. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities, of $1,051,195,000 and $1,138,254,000, respectively,
during the six months ended August 31, 1999.
As of August 31, 1999, accumulated undistributed net realized gain on
investments was $520,091,000 and additional paid-in capital was $3,568,970,000.
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 $54,000 includes $16,000 that was paid by these credits
rather than in cash.
<TABLE>
AMCAP FUND
Per-Share Data and Ratios
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------
Period
ended Year ended February28 or 29
August 31-------------------------------------------
1999(1) 1999 1998 1997 1996 1995
----------------------------------------------------
Net Asset Value, Beginning
of Period $ 17.84 $ 16.93 $ 14.6 $ 14.4 $ 12.2 $ 12.98
----------------------------------------------------
Income from Investment
Operations:
Net investment income .06 .12 .10 .12 .16 .14
Net gains on securities (both
realized and unrealized) .89 3.21 4.80 1.51 3.3 .24
----------------------------------------------------
Total income from investment
operations .95 3.33 4.90 1.63 3.4 .38
----------------------------------------------------
Less Distributions:
Dividends (from net investment
income) (.03) (.13) (.10) (.12) (.17) (.13)
Distributions (from capital gains) (.82) (2.29) (2.47) (1.31) (1.19) (.95)
----------------------------------------------------
Total distributions (.85) (2.42) (2.57) (1.43) (1.36) (1.08)
----------------------------------------------------
Net Asset Value, End of Period $ 17.94 $ 17.84 $ 16.93 $ 14.60 $ 14.40 $ 12.28
Total Return(2) 5.24% (3) 21.07% 36.97% 11.74% 29.29% 3.41%
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $6,307 $5,939 $4,891 $3,807 $3,693 $2,970
Ratio of expenses to average
net assets .35% (3) .67% .68% .69% .71% .71%
Ratio of net income to
average net assets .31% (3) .70% .62% .81% 1.16% 1.16%
Portfolio turnover rate 20.31% 36.46% 31.42% 24.14% 35.16% 17.92%
(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>
[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 US AT 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, 1999, 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 AGD/AL/4377
Lit. No. AMCAP-013-1099
