The American Funds Group(r)
AMCAP FUND
Building for the Future
[photograph of a girl playing with building blocks]
SEMI-ANNUAL REPORT
for the six months ended August 31, 2000
AMCAP FUND(r) seeks long-term growth of capital by investing in growing,
profitable companies.
AMCAP Fund is one of the 29 American Funds, the nation's third-largest mutual
fund family. For nearly seven 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.
Fund results in this report were calculated for Class A shares at net asset
value (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, 2000 (the most recent calendar quarter),
assuming payment of the 5.75% maximum sales charge at the beginning of the
stated periods:
[begin table]
<TABLE>
<CAPTION>
Total Average Annual
CLASS A SHARES Return Compound Return
reflecting 5.75% maximum sales charge
<S> <C> <C>
Ten Years +465.19% +18.91%
Five Years +144.66% +19.60%
One Year +16.33% -
</TABLE>
[end table]
Sales charges are lower for accounts of $25,000 or more.
There are two ways to invest in AMCAP Fund. Class A shares are subject to a
5.75% maximum up-front sales charge that declines for accounts of $25,000 or
more. Class B shares, which are not available for certain employer-sponsored
retirement plans, have no up-front charge. They are, however, subject to
additional expenses of approximately 0.75% a year over the first eight years of
ownership. If redeemed within six years, they are also subject to a contingent
deferred sales charge (5% maximum) that declines over time.
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 solid return of 9.4% during the six months ended August
31, in what proved to be a turbulent market. AMCAP's consistent emphasis on
investing in proven growth companies helped it to avoid some pitfalls during
the first half of our 2001 fiscal year.
Investing in growing companies always involves some uncertainty, or risk. At
times, there seems to be little risk of negative events threatening investment
expectations and company fundamentals. At other times, more uncertainty enters
into the investing picture. During this recent six-month period, some risks
became more evident, adding to volatility. These risks included: currency
issues as the euro weakened dramatically; rising oil prices; concerns about
electronic parts shortages; and worries about lower growth in corporate
profits. In addition, the coming presidential election added another element of
uncertainty.
[begin table]
<TABLE>
<CAPTION>
Lifetime
TOTAL RETURNS* Average Annual
6 Months 12 Months Compound Returns
3/1/00-8/31/00 9/1/99-8/31/00 5/1/67-8/31/00
<S> <C> <C> <C>
AMCAP Fund 9.4% 27.1% 14.1%
Lipper Multi-Cap 8.6 24.5 12.0
Core Fund Index
S&P 500 Composite 11.7 16.3 12.6
Index
S&P 400 Midcap 18.3 39.8 N/A
Index
</TABLE>
*All returns include the reinvestment of dividends. The Lipper Index does not
include the effects of sales charges. The S&P Indexes are unmanaged and don't
include any expenses.
[end table]
TECHNOLOGY STOCKS WERE VOLATILE
Technology stocks' volatility provided a good example of how the market reacted
to the increased level of uncertainty. Concerns about high valuations of
Internet companies without earnings - or prospects of earnings in the
foreseeable future - caused the technology-heavy Nasdaq to fall 37.3% from its
high on March 10 until it reached a low on May 23. The Morgan Stanley Internet
Index tumbled 50.0%. During this same period, AMCAP declined only 2.3%.
Although AMCAP has significant exposure to technology companies, it focuses on
those with a strong record as well as a promising future. This more cautious
approach - and a generous cash holding - helped the fund on the downside.
FUND COMPARED FAVORABLY WITH PEERS
The fund compared favorably with its peers over the past six months. The Lipper
Multi-Cap Core Fund Index, its new benchmark, rose 8.6%. This index is a
measure of mutual funds, which, like AMCAP, invest in a wide variety of
companies of different sizes. Standard & Poor's 500 Stock Composite Index,
which tracks mainly large U.S. companies, increased 11.7%. The S&P 500 was
again led by a small group of 25 companies - only 5% of the 500 - which
contributed 40% of its gain. Without these 25 companies, the index would have
increased only 7.0%. The fund trailed the S&P 400 Midcap Index for the period,
as investors moved to mid-sized and smaller companies, due in part to more
reasonable valuations.
Since AMCAP focuses on long-term investing, we do not consider stock price
moves over a six-month period that significant. However, it's worth noting some
general trends in our portfolio. Of AMCAP's largest holdings, the strongest
gainers were companies involved in business services or technology. Overall,
returns from our investments in technology and media and entertainment
companies were mixed over the recent six months, but these holdings have been
good long-term investments.
In December, the fund expects to pay a capital gain distribution between 6% and
8% of the current share price. We are always mindful of the taxes that our
shareholders pay on capital gain distributions. The fund's basic philosophy of
buying undervalued securities and holding them for the long term helps keep
turnover low, thereby limiting the amount of gains realized in any period.
However, careful portfolio management means that securities will be sold when
it is appropriate to
do so for investment reasons.
THE VALUE OF A LONG-TERM PERSPECTIVE
While we can't predict what will happen in the future, we believe our approach
of investing in quality growth companies will continue to be rewarding over the
long term. The fund's analysts and portfolio counselors seek to invest in
companies with such attributes as strong management, effective customer
service, a sustainable competitive edge, participation in a growing market and
a history of above-average earnings and revenue increases. With that in mind,
we recommend, as always, that shareholders look beyond near-term volatility and
focus on the long-term potential of our portfolio.
We look forward to reporting to you again next spring.
Cordially,
/s/ R. Michael Shanahan
R. Michael Shanahan
Chairman of the Board
/s/ Claudia P. Huntington
Claudia P. Huntington
President
October 13, 2000
Amcap Fund, Inc.
Investment Portfolio, August 31, 2000 (Unaudited)
[begin pie chart]
<TABLE>
<S> <C>
Percent
of Net
Assets
Largest Industry Holdings
Business Services 11.20%
Broadcasting & Publishing 9.25%
Data Processing & Reproduction 8.20%
Electronic Components 8.18%
Health & Personal Care 7.63%
Other Industries 35.67%
Cash & Equivalents 19.87%
</TABLE>
[end pie chart]
[begin table]
Largest Equity Holdings
<TABLE>
<S> <C>
Viacom 2.78%
Time Warner 2.74%
Medtronic 2.54%
Robert Half International 2.04%
Concord EFS 1.97%
Guidant 1.78%
Sanmina 1.78%
Interpublic Group 1.62%
Western Wireless 1.55%
CenturyTel 1.55%
</TABLE>
[end table]
[begin table]
<TABLE>
<S> <C> <C> <C> <C>
Number of Market Percent
Shares Value of Net
Equity Securitites (common stocks) (000) Assets
-------------------------------------------- -------- -------- --------
BUSINESS SERVICES - 11.20%
Robert Half International Inc. (1) 5,000,000 159,062 2.04 %
Concord EFS, Inc. (1) 4,776,750 153,453 1.97
Interpublic Group of Companies, Inc. 3,308,100 126,535 1.62
Paychex, Inc. 1,800,000 80,325 1.03
Snyder Communications, Inc. (1) 2,143,400 58,676
Snyder Communications, Inc.-Circle.com (1) 450,000 1,519 .77
Sabre Holdings Corp., Class A (1) 1,750,000 48,781 .63
ServiceMaster Co. 3,980,000 38,556 .49
Pitney Bowes Inc. 975,000 35,648 .46
Young & Rubicam Inc. 600,000 35,100 .45
Avery Dennison Corp. 600,000 32,438 .42
Galileo International, Inc. 1,550,000 28,869 .37
IMS Health Inc. 1,400,000 26,425 .34
Ventiv Health, Inc. (1) 1,000,000 13,375 .17
Profit Recovery Group International, Inc. (1) 1,200,000 10,838 .14
Cendant Corp. (1) 800,000 10,550 .13
MSC Industrial Direct Co., Inc., Class A (1) 444,800 7,228 .09
Equifax Inc. 250,000 6,359 .08
---------- ----------
873,737 11.20
---------- ----------
BROADCASTING & PUBLISHING - 9.25%
Viacom Inc., Class B (1) 3,224,400 217,043 2.78
Time Warner Inc. 2,500,000 213,750 2.74
AT&T Corp. Liberty Media Group, Class A (1) 4,600,000 98,325 1.26
Infinity Broadcasting Corp., Class A (1) 1,900,000 71,963 .93
Clear Channel Communications, Inc. (1) 950,000 68,756 .88
Harte-Hanks, Inc. 2,051,200 51,536 .66
---------- ----------
721,373 9.25
---------- ----------
DATA PROCESSING & REPRODUCTION - 8.20%
Microsoft Corp. (1) 1,110,000 77,492 .99
Lexmark International, Inc., Class A (1) 1,050,000 71,203 .91
HNC Software Inc. (1) 1,056,000 57,453 .74
Computer Associates International, Inc. 1,750,000 55,562 .71
PeopleSoft, Inc. (1) 1,500,000 48,375 .62
Intuit Inc. (1) 791,600 47,397 .61
National Instruments Corp. (1) 1,025,000 44,267 .57 %
Palm, Inc. (spinoff of 3Com Corp.) (1) 933,828 41,088 .53
International Business Machines Corp. 250,000 33,000 .42
Oracle Corp. (1) 350,000 31,828 .41
Gateway, Inc. (1) 365,200 24,870 .32
Dell Computer Corp. (1) 475,000 20,722 .27
Hewlett-Packard Co. 150,000 18,113 .23
Electronics for Imaging, Inc. (1) 475,000 12,350 .16
Cadence Design Systems, Inc. (1) 500,000 10,625 .14
3Com Corp. (1) 629,600 10,467 .13
Compaq Computer Corp. 300,000 10,219 .13
MICROS Systems, Inc. (1) 500,000 8,781 .11
Silicon Graphics, Inc. (1) 1,850,000 8,672 .11
Synopsys, Inc. (1) 200,000 7,413 .09
---------- ----------
639,897 8.20
---------- ----------
ELECTRONIC COMPONENTS - 8.18%
Sanmina Corp. (1) 1,175,000 138,650 1.78
Texas Instruments Inc. 1,600,000 107,100 1.37
Linear Technology Corp. 1,082,200 77,851 1.00
SCI Systems, Inc. (1) 1,075,000 66,381 .85
Analog Devices, Inc. (1) 650,000 65,325 .84
Intel Corp. 700,000 52,413 .67
Dallas Semiconductor Corp. 950,000 39,306 .50
Solectron Corp. (1) 600,000 27,188 .35
CTS Corp. 450,000 23,091 .29
Jabil Circuit, Inc. (1) 350,000 22,334 .29
MIPS Technologies, Inc., Class B (1) 256,373 13,267 .17
Power Integrations, Inc. (1) 314,900 5,353 .07
---------- ----------
638,259 8.18
---------- ----------
HEALTH & PERSONAL CARE - 7.63%
Medtronic, Inc. 3,860,000 197,825 2.54
Guidant Corp. (1) 2,065,000 139,001 1.78
Pfizer Inc 1,200,000 51,900 .66
Avon Products, Inc. 1,210,000 47,417 .61
Cardinal Health, Inc. 369,589 30,237 .39
Becton, Dickinson and Co. 800,000 24,100 .31
Stryker Corp. 480,000 21,510 .28
Watson Pharmaceuticals, Inc. (1) 300,000 18,506 .24
Genentech, Inc. (1) 90,400 17,221 .22
Gillette Co. 500,000 15,000 .19
Sybron International Corp. (1) 525,000 11,944 .15
ALZA Corp. (1) 125,000 9,453 .12
Pharmacia Corp. (formerly Monsanto Co.) 100,000 5,856 .07
Bergen Brunswig Corp., Class A 600,000 5,625 .07
---------- ----------
595,595 7.63
---------- ----------
MERCHANDISING - 5.55%
Dollar General Corp. 5,088,500 104,632 1.34
Albertson's, Inc. 2,550,000 54,825 .70
Lowe's Companies, Inc. 1,095,000 49,070 .63
Kohl's Corp. (1) 850,000 47,600 .61
AutoZone, Inc. (1) 2,000,000 45,000 .58
Consolidated Stores Corp. (1) 3,145,312 42,855 .55
Gap, Inc. 1,880,000 42,182 .54 %
Walgreen Co. 1,000,000 32,875 .42
Staples, Inc. (1) 900,000 13,838 .18
---------- ----------
432,877 5.55
---------- ----------
FINANCIAL SERVICES - 4.46%
Fannie Mae 2,051,000 110,241 1.41
USA Education Inc. (formerly SLM Holding Corp.) 2,110,000 82,686 1.06
Providian Financial Corp. 542,800 62,388 .80
Capital One Financial Corp. 750,000 45,234 .58
Freddie Mac 800,000 33,700 .43
Associates First Capital Corp., Class A 500,000 14,063 .18
---------- ----------
348,312 4.46
---------- ----------
BANKING - 3.13%
Northern Trust Corp. 900,000 75,881 .97
Wells Fargo & Co. 1,700,000 73,419 .94
Bank of America Corp. 1,000,000 53,562 .69
M&T Bank Corp. 85,923 41,646 .53
---------- ----------
244,508 3.13
---------- ----------
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.86%
CenturyTel, Inc. 4,197,950 120,953 1.55
WorldCom, Inc. (formerly MCI WorldCom, Inc.) (1) 2,100,000 76,650 .98
Qwest Communications International Inc. (1) 500,000 25,813 .33
---------- ----------
223,416 2.86
---------- ----------
INSURANCE - 2.51%
American International Group, Inc. 1,101,562 98,177 1.26
Mutual Risk Management Ltd. 2,000,000 42,500 .54
Reinsurance Group of America, Inc. 1,272,600 36,269 .46
Mercury General Corp. 700,000 19,206 .25
---------- ----------
196,152 2.51
---------- ----------
LEISURE & TOURISM - 2.36%
Brinker International, Inc. (1) 2,950,000 93,663 1.20
Walt Disney Co. 1,500,000 58,406 .75
Carnival Corp. 957,500 19,090 .25
Papa John's International, Inc. (1) 560,000 12,670 .16
---------- ----------
183,829 2.36
---------- ----------
BEVERAGES & TOBACCO - 1.84%
Philip Morris Companies Inc. 2,500,000 74,062 .95
PepsiCo, Inc. 800,000 34,100 .44
Beringer Wine Estates Holdings, Inc., 365,000 20,189 .26
Class B (1)
Robert Mondavi Corp., Class A (1) 366,700 15,035 .19
---------- ----------
143,386 1.84
---------- ----------
HEALTH CARE PROVIDERS & SERVICES - 1.83%
Medicis Pharmaceutical Corp., Class A (1) 1,150,000 74,103 .95
Quintiles Transnational Corp. (1) 1,634,000 22,774 .29
Universal Health Services, Inc., Class B (1) 250,000 17,687 .22
Cintas Corp. 375,000 15,586 .20
Stewart Enterprises, Inc., Class A 4,100,000 13,069 .17
---------- ----------
143,219 1.83
---------- ----------
WIRELESS TELECOMMUNICATION SERVICES - 1.55%
Western Wireless Corp., Class A (1) 2,367,900 121,059 1.55
---------- ----------
121,059 1.55
---------- ----------
ELECTRICAL & ELECTRONICS - 1.44%
Cisco Systems, Inc. (1) 1,450,000 99,506 1.28 %
Lucent Technologies Inc. 300,000 12,544 .16
---------- ----------
112,050 1.44
---------- ----------
CHEMICALS - 1.38%
Cambrex Corp. 1,130,000 53,039 .68
RPM, Inc. 3,500,000 33,469 .43
Ionics, Inc. (1) 700,000 20,869 .27
---------- ----------
107,377 1.38
---------- ----------
IT CONSULTING & SERVICES - 0.74%
Affiliated Computer Services, Inc., Class A (1) 800,000 37,250 .48
Ceridian Corp. (1) 856,800 20,724 .26
---------- ----------
57,974 .74
---------- ----------
ENERGY EQUIPMENT - 0.68%
Schlumberger Ltd. 624,232 53,255 .68
---------- ----------
53,255 .68
---------- ----------
TEXTILES & APPAREL - 0.61%
NIKE, Inc., Class B 1,211,900 47,946 .61
---------- ----------
47,946 .61
---------- ----------
ELECTRONIC INSTRUMENTS - 0.61%
Applied Materials, Inc. (1) 550,000 47,472 .61
---------- ----------
47,472 .61
---------- ----------
TRANSPORTATION: AIRLINES - 0.52%
Southwest Airlines Co. 1,790,000 40,499 .52
---------- ----------
40,499 .52
---------- ----------
INDUSTRIAL COMPONENTS - 0.51%
Tower Automotive, Inc. (1) 1,750,000 19,906 .26
Illinois Tool Works Inc. 350,000 19,622 .25
---------- ----------
39,528 .51
---------- ----------
MACHINERY & ENGINEERING - 0.49%
Millipore Corp. 400,000 24,350 .31
IDEX Corp. 455,500 13,836 .18
---------- ----------
38,186 .49
---------- ----------
WHOLESALE & INTERNATIONAL TRADE - 0.28%
Tech Data Corp. (1) 425,000 21,941 .28
---------- ----------
21,941 .28
---------- ----------
BUILDING MATERIALS & COMPONENTS - 0.20%
Elcor Corp. 975,000 16,026 .20
---------- ----------
16,026 .20
---------- ----------
MULTI-INDUSTRY - 0.19%
Dover Corp. 300,000 14,662 .19
TRANSPORTATION: RAIL & ROAD - 0.12%
Wisconsin Central Transportation Corp. (1) 675,000 9,028 .12
RECREATION & OTHER CONSUMER PRODUCTS - 0.08%
Mattel, Inc. 600,000 5,925 .08
---------- ----------
5,925 .08
---------- ----------
MISCELLANEOUS - 1.73%
Other equity securities in initial period 3,172,700 134,711 1.73
of acquisition
---------- ----------
TOTAL EQUITY SECURITIES (cost: $3,910,074,000) 6,252,199 80.13
---------- ----------
Principal Market Percent
Amount Value of Net
Short-Term Securities (000) (000) Assets
-------------------------------------------- -------- -------- --------
CORPORATE SHORT-TERM NOTES - 16.93%
General Electric Capital Corp. 6.48%-6.65% $105,880 $105,539 1.35 %
due 9/1-10/10/2000
Alcoa Inc. 6.47%-6.50% due 9/14-11/10/2000 97,300 96,622 1.24
Ciesco LP 6.48%-6.52% due 9/20-10/6/2000 90,000 89,597 1.15
AT&T Corp. 6.46%-6.51% due 9/20-10/25/2000 88,500 87,792 1.12
Lucent Technologies Inc. 6.46%-6.48% 72,800 72,465 .93
due 9/13-10/13/2000
Coca-Cola Co. 6.47%-6.48% due 10/2-10/24/2000 65,800 65,240 .84
Ford Motor Credit Co. 6.45%-6.52% 60,975 60,587 .78
due 9/1-10/20/2000
Motorola, Inc. 6.50%-6.58% due 9/11-10/20/2000 60,120 59,772 .77
Procter & Gamble Co. 6.47%-6.49% 55,000 54,605 .70
due 9/29-10/19/2000
Hewlett-Packard Co. 6.45% due 9/1/2000 50,000 49,991 .64
Household Finance Corp. 6.48%-6.52% 49,100 48,818 .63
due 9/22-10/10/2000
Campbell Soup Co. 6.49%-6.55% 48,180 47,960 .61
due 9/6-10/16/2000
International Lease Finance Corp. 6.51% 45,600 45,302 .58
due 10/6/2000
Motiva Enterprises LLC 6.50%-6.63% 43,500 43,449 .56
due 9/1-9/11/2000
Eastman Kodak Co. 6.49%-6.58% 42,500 42,262 .54
due 9/11-10/19/2000
Associates First Capital Corp. 6.50%-6.51% 41,400 41,260 .53
due 9/18-9/19/2000
Duke Energy Corp. 6.47%-6.56% 40,000 39,716 .51
due 9/15-11/2/2000
Hershey Foods Corp. 6.47%-6.50% 38,700 38,431 .49
due 10/3-10/17/2000
Equilon Enterprises, LLC 6.50%-6.51% 33,500 33,409 .43
due 9/6-10/12/2000
American Express Credit Corp. 6.51% 30,000 29,934 .38
due 9/12/2000
A.I. Credit Corp. 6.50% due 10/30/2000 30,000 29,675 .38
H.J. Heinz Co. 6.48%-6.50% due 9/7-10/23/2000 28,785 28,666 .37
Verizon Communications 6.48% due 11/7/2000 28,900 28,544 .37
Bell Atlantic Financial Services, Inc. 27,100 26,953 .34
6.52%-6.55% due 9/8-10/5/2000
Bell Atlantic Network Funding Corp. 6.50% 25,500 25,412 .33
due 9/19/2000
Archer Daniels Midland Co. 6.50% due 10/16/2000 15,900 15,768 .20 %
USAA Capital Corp. 6.43% due 9/1/2000 12,820 12,818 .16
FEDERAL AGENCY DISCOUNT NOTES - 3.14%
Fannie Mae 6.42%-6.50% due 9/21-10/26/2000 143,800 142,928 1.83
Freddie Mac 6.40%-6.43% due 9/19-11/2/2000 56,600 56,241 0.72
Federal Home Loan Banks 6.46% 46,415 46,270 0.59
due 9/15-9/22/2000
---------- ----------
TOTAL SHORT-TERM SECURITIES 1,566,026 20.07
(cost: $1,566,020,000)
---------- ----------
TOTAL INVESTMENT SECURITIES 7,818,225 100.20
(cost: $5,476,094,000)
Excess of payables over cash and receivables 16,034 .20
---------- ----------
NET ASSETS $7,802,191 100.00 %
---------- ----------
---------- ----------
</TABLE>
(1) Non-income-producing securities.
See Notes to Financial Statements
[end table]
AMCAP Fund
Investment Portfolio, August 31, 2000
Equity securities appearing in the portfolio
since February 29, 2000
--------------------------------------------------------------
Affiliated Computer Services
Carnival
Ceridian
CTS
Electronics for Imaging
IMS Health
MICROS Systems
MIPS Technologies
Mutual Risk Management
National Instruments
Palm
Pitney Bowes
Profit Recovery Group International
Qwest Communications International
Reinsurance Group of America
Staples
Walgreen
Walt Disney
Equity securities eliminated from the portfolio
since February 29, 2000
--------------------------------------------------------------
Acxiom
Adaptec
Airgas
Citizens Utilities
Colgate-Palmolive
Columbia/HCA Healthcare
Comcast
First Health Group
IKON Office Solutions
LifePoint Hospitals
MBNA
MediaOne Group
Metamor Worldwide
Praxair
Shared Medical Systems
Thermo Electron
Triad Hospitals
AMCAP Fund Financial Statements
<TABLE>
<S> <C> <C>
Statement of Assets and Liabilities
at August 31, 2000 (dollars in thousands) (unaudited)
--------------------------------------
Assets:
Investment securities at market
(cost: $5,476,094) $7,818,225
Cash 73
Receivables for--
Sales of investments $146,149
Sales of fund's shares 6,617
Dividends 3,527 156,293
7,974,591
Liabilities:
Payables for--
Purchases of investments 36,740
Repurchases of fund's shares 128,282
Management services 2,357
Other expenses 5,021 172,400
Net Assets at August 31, 2000-- $7,802,191
Total authorized capital stock--
500,000,000 shares
Class A shares, $1.00 par value
Net Assets $7,786,996
Shares outstanding 395,911,572
Net asset value per share $19.67
Class B shares, $1.00 par value
Net Assets $15,195
Shares outstanding 775,528
Net asset value per share $19.59
Statement of Operations for the six
months ended August 31, 2000 (dollars (unaudited)
in thousands)
Investment Income:
Income:
Dividends $ 20,407
Interest 44,177 $ 64,584
Expenses:
Management services fee 13,681
Distribution expenses - Class A 8,288
Distribution expenses - Class B 31
Transfer agent fee - Class A 2,749
Transfer agent fee - Class B 3
Reports to shareholders 151
Registration statement and prospectus 377
Postage, stationery and supplies 353
Directors' fees 66
Auditing and legal fees 66
Custodian fee 62
Taxes other than federal income tax 1
Other expenses 40 25,868
Net investment income 38,716
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 660,868
Net decrease in unrealized
appreciation on investments:
Beginning of period 2,364,169
End of period 2,342,131
Net change in unrealized
Appreciation on investments (22,038)
Net realized gain and unrealized
appreciation on investments 638,830
Net Increase in Net Assets Resulting
from Operations $677,546
See Notes to Financial Statements
Statement of Changes in Net
Assets (dollars in thousands)
------------------------------ ------------- -------------
Six months Year ended
ended August February
31, 2000* 29, 2000
------------- ------------
Operations:
Net investment income $ 38,716 $ 46,834
Net realized gain on investments 660,868 999,592
Net unrealized appreciation
(depreciation) on investments (22,038.00) 282,012.00
Net increase in net assets
resulting from operations 677,546.00 1,328,438.00
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income:
Class A - (34,644.00)
Class B - -
Distributions from net realized gains
on investments
Class A (398,766.00) (856,319.00)
Class B (409.00) -
Total Dividends and Distributions (399,175.00) (890,963.00)
Capital Share Transactions:
Proceeds from shares sold 452,275 894,848
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions of
net realized gain on investments 375,683 836,603
Cost of shares repurchased (573,754) (838,228)
Net increase in net assets resulting from 254,204 893,223
capital share transactions
Total Increase in Net Assets 532,575 1,330,698
Net Assets:
Beginning of period 7,269,616 5,938,918
End of period (including undistributed
net investment income and distributions
in excess of net investment income of
$37,909 and $(807), respectively $7,802,191 $7,269,616
* 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.
The Fund offers Class A and Class B shares. Class A shares are sold with an
initial sales charge of up to 5.75%. Class B shares are sold without an
initial sales charge but are subject to a contingent deferred sales charge paid
upon redemption. This charge declines from 5% to zero over a period of six
years. Class B shares have higher distribution expenses and transfer agent
fees than Class A shares. Class B shares are automatically converted to Class
A shares eight years after the date of purchase. Holders of both classes of
shares have equal pro rata rights to assets and identical voting, dividend,
liquidation and other rights, except that each class bears different
distribution and transfer agent expenses, and each class shall have exclusive
rights to vote on matters affecting only their class.
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 fixed-income 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.
ALLOCATIONS - Income, expenses (other than class-specific expenses) and
realized and unrealized gains and losses are allocated daily between the share
classes based on their relative net asset values. Distribution expenses,
transfer agent fees and any other class-specific expenses are accrued daily and
charged to the applicable share class.
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, 2000, net unrealized appreciation on investments for book and
federal income tax purposes aggregated $2,342,131,000; $2,868,114,000 related
to appreciated securities and $525,983,000 related to depreciated securities.
There was no difference between book and tax realized gains on securities
transactions for the six months ended August 31, 2000. The cost of portfolio
securities for book and federal income tax purposes was $5,460,060,000 at
August 31, 2000.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $13,681,000 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 the following rates and net asset levels:
<TABLE>
<CAPTION>
Net Asset Level (in billions)
Rate In Excess of Up to
<S> <C> <C>
0.485% $0 $1
0.385 $1 $2
0.355 $2 $3
0.335 $3 $5
0.320 $5 $8
0.310 $8
</TABLE>
DISTRIBUTION EXPENSES - Pursuant to a Plan of Distribution for Class A shares,
the fund may expend up to 0.25% of Class A daily 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 in advance
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. Pursuant
to a Plan of Distribution for Class B shares, the fund may expend up to 1.00%
of Class B daily net assets annually to compensate dealers for their selling
and servicing efforts. During the six months ended August 31, 2000,
distribution expenses under the Plans of Distribution for Class A and Class B
shares were $8,288,000 and $31,000, respectively. As of August 31, 2000,
accrued and unpaid distribution expenses for Class A and Class B were
$3,809,000 and $11,000, respectively. American Funds Distributors, Inc. (AFD),
the principal underwriter of the fund's shares, received $1,075,000 (after
allowances to dealers) during the six months ended August 31, 2000, as its
portion of the sales charges paid by purchasers of the fund's Class A 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 - The fee of $2,751,000 for transfer agent services was
incurred pursuant to an agreement with American Funds Service Company (AFS) for
the six months ended August 31, 2000.
DEFERRED DIRECTORS' 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, 2000, aggregate deferred amounts and earnings thereon
since the deferred compensation plan's adoption (1993), net of any payments to
Directors, were $xxx,000.
AFFILIATED DIRECTORS' AND OFFICERS - 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 $1,028,237,000 and $1,503,222,000, respectively,
during the six months ended August 31, 2000.
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 $62,000 includes $9,000 that was paid by these credits
rather than in cash.
As of August 31, 2000, net assets consisted of the following:
[begin table]
<TABLE>
<CAPTION>
<S> <C>
Amount
(000)
Capital paid in on shares of beneficial interest $4,761,326
Undistributed net investment income 37,909
Accumulated net realized gain 660,825
Net unrealized appreciation 2,342,131
Net Assets $7,802,191
</TABLE>
[end table]
Capital share transactions in the fund were as follows:
[begin table]
<TABLE>
<CAPTION>
Six months ended Year ended
August 31, 2000 February 29, 2000
Amount Shares Amount Shares
(000) (000)
<S> <C> <C> <C> <C>
CLASS A SHARES:
Sold $437,550 22,494,283 $894,848 48,563,421
Reinvestment of 375,279 20,197,316 836,603 46,748,655
dividends and
distributions
Repurchased 573,618 29,432,257 838,228 45,493,929
Net increase 239,211 13,259,342 893,223 49,818,147
in Class A
CLASS B SHARES:*
Sold 14,725 760,803 - -
Reinvestment of 404 21,798 - -
dividends and
distributions
Repurchased 136 7,073 - -
Net increase 14,993 775,528 - -
in Class B
TOTAL NET $254,204 14,034,870 $893,223 49,818,147
INCREASE IN FUND
*Class B shares were not offered before March 15, 2000.
</TABLE>
PER-SHARE DATA AND RATIOS
[begin table]
<TABLE>
<S> <C> <C> <C> <C> <C>
Net
Net asset gains
value, Net on securities Total from
beginning investment (both realized investment
Period ended (1) of period income and unrealized) operations
Class A:
8/31/2000 $19.00 0.10 (2) 1.62(2) $1.72
2000 17.84 .13 3.61 3.74
1999 16.93 .12 3.21 3.33
1998 14.60 .10 4.80 4.90
1997 14.40 .12 1.51 1.63
1996 12.28 .16 3.32 3.48
Class B:
8/31/2000 19.06 0.03(2) 1.55(2) 1.58
Dividends
(from net Distributions Net asset
investment (from capital Total value, end
Period ended (1) income) gains) distributions of period
Class A:
8/31/2000 $ - $(1.05) $(1.05) $19.67
2000 (.10) (2.48) (2.58) 19.00
1999 (.13) (2.29) (2.42) 17.84
1998 (.10) (2.47) (2.57) 16.93
1997 (.12) (1.31) (1.43) 14.60
1996 (.17) (1.19) (1.36) 14.40
Class B:
8/31/2000 - (1.05) (1.05) 19.59
Ratio of Ratio of
Net assets, expenses net income Portfolio
Total end of period to average to average turnover
Period ended (1) return (in millions) net assets net assets rate
Class A:
8/31/2000 9.35% $7,787 0.68%(3) 1.03%(3) 16.67%(4)
2000 22.30 7,270 .68 .72 34.36
1999 21.07 5,939 .67 .70 36.46
1998 36.97 4,891 .68 .62 31.42
1997 11.74 3,807 .69 .81 24.14
1996 29.29 3,693 .71 1.16 35.16
Class B:
8/31/2000 8.58 15 1.47(3) 0.24(3) 16.67(4)
</TABLE>
(1) The periods 1996 through 2000 represent fiscal years ended February 28 or
29. The periods ended August 31, 2000 represent, for Class A shares, the
six month period ended August 31, 2000 (unaudited), and, for Class B
shares, the 169-day period ended August 31, 2000. Class B shares were not
offered before March 15, 2000. Total returns for such periods are based on
activity during the period and thus are not representative of a full year.
Total returns exclude all sales charges, including contingent deferred
sales charges.
(2) Based on average shares outstanding.
(3) Annualized.
(4) Represents portfolio turnover rate (equivalent for all share classes) for
the six months ended August 31, 2000.
[end 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, ANY OF THE FUND'S SERVICES, OR FOR A
PROSPECTUS FOR ANY OF THE AMERICAN FUNDS, 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. PLEASE READ
THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
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, 2000, 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/L/4817
Lit. No. AMCAP-013-1000
