|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: GROW GROUP INC, SC 14D9/A, 1995-05-09 |
Next: GTI CORP, 10-Q, 1995-05-09 |
The Growth Fund of America
Semi-Annual Report
for the Six Months Ended
February 28, 1995
[The American Funds Group(R)]
THE GROWTH FUND OF AMERICA(R)
invests in a wide range of companies that appear to offer superior
opportunities for growth of capital.
ON OUR COVER:
In less than two decades, today's toddlers will be college students. In three
or four decades, people who are now joining the workforce will be retiring.
These are just two examples of the need for making your assets grow over time -
and the watering can is a reminder that regular nurturing plays a major role in
making things grow.
RESULTS AT A GLANCE
(through 2/28/95)
<TABLE>
<CAPTION>
<S> <C> <C>
THE GROWTH FUND STANDARD & POOR'S
OF AMERICA 500 COMPOSITE INDEX
6 months (since 9/1/94) +2.3% +4.0%
12 months (since 3/1/94) +3.9% +7.3%
Lifetime average annual +16.2% +12.5%
compound return*
</TABLE>
All figures assume reinvested distributions. Indexes cited in this report are
unmanaged.
*Since Capital Research and Management Company became the fund's investment
adviser on 12/1/73.
Fund results in this report were computed without a sales charge, unless
otherwise indicated. Here are the average annual compound returns for periods
ended March 31, 1995 (the most recent calendar quarter) on an investment at the
5.75% maximum sales charge with all distributions reinvested:
10 years: + 13.85%
5 years: + 10.77
1 year: + 5.37
Sales charges are lower for accounts of $50,000 or more. Fund results through
August 1988 do not reflect service and distribution expenses now paid under its
Plan of Distribution. Such expenses may not exceed 0.25% of the fund's average
net assets per year and currently amount to approximately 0.24%.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY HAVE A GAIN OR LOSS OF PRINCIPAL WHEN YOU SELL YOUR SHARES.
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.
All investments are subject to certain risks. For example, those which include
common stocks are affected by fluctuating stock prices. Accordingly, investors
should maintain a long-term perspective.
FELLOW SHAREHOLDERS:
The six months through February 28 brought a modest stock market advance in a
challenging environment.
The Federal Reserve raised interest rates twice, bringing the total number of
increases since the beginning of 1994 to seven. The U.S. dollar lost ground to
most other major world currencies, and a number of markets outside the U.S.
demonstrated their considerable potential for volatility. However, the concerns
these conditions created in the U.S. stock market were largely offset by strong
corporate earnings reports. Increased confidence that economic growth will
continue and inflation will be kept at bay also helped to propel stock prices.
For the six months, your investment in The Growth Fund of America grew 2.3% if
you reinvested the dividend of 17 cents a share and the capital gain
distribution of $1.04 a share, both paid in December.
The fund's gain outpaced the 0.7% average increase for growth funds, as
measured by the Lipper Growth Fund Index. The broad stock market did somewhat
better: It rose 4.0%, according to Standard & Poor's 500 Composite Index.
Despite the market's advance, many observers remain cautious. We are solidly
among them and have maintained the fund's invested position - the percentage of
assets in stocks - at a relatively low level (approximately 80% as of February
28). As we have noted in the past, this creates a reserve of cash and cash
equivalents which can provide a cushion against market downturns and can be
used to take advantage of attractive stock-buying opportunities as they arise.
For many years, electronic technology and media/entertainment have been
prominent themes among our holdings. This emphasis continued to
[Chart Caption]
The stock market is represented by Standard & Poor's 500 Composite Index.
Inflation is represented by the Consumer Price Index, computed from data
supplied by the U.S. Department of Labor, Bureau of Labor Statistics.
[End Chart Caption]
[Side Bar]
Our emphasis on electronic technology and media/entertainment companies has
continued to serve the fund well.
[End Side Bar]
serve the fund well during the first half of fiscal 1995, with many leading
technology companies benefiting from the global economic recovery. Of our 10
largest individual holdings as of February 28, seven were electronic technology
or media/entertainment companies. The stocks of six of those seven gained
ground during this period, and all seven have been significant contributors
over time.
Not every stock we own will do well every year, but over time we believe each
of our holdings will make a positive contribution to the fund's results. Time
and again we have seen one year's out-of-favor stocks become the next year's
winners. Our investment style is to buy stocks based on intensive research into
each company's long-term prospects and then to hold those stocks for long-term
appreciation. Since 1984, our portfolio turnover rate has typically been 25% or
less each year. A number of the fund's largest holdings have been part of the
portfolio for more than a decade, including Time Warner, Tele-Communications,
Intel, Federal National Mortgage Association ("Fannie Mae") and National
Semiconductor.
A list of the companies whose ownership you share through your investment in
The Growth Fund of America appears on the following pages. We hope you will
take a minute to look it over. Our annual report, which will be mailed to you
in six months, will include a brief description of each company. We look
forward to reporting to you then.
Cordially,
Walter P. Stern
Chairman of the Board
James F. Rothenberg
President
April 10, 1995
THE GROWTH FUND OF AMERICA
INVESTMENT PORTFOLIO,
UNAUDITED
February 28, 1995
<TABLE>
<CAPTION>
Largest Industry Holdings Assets
<S> <C>
- ------------------------------- -----
Broadcasting & Publishing 15.17%
Electronic Components 11.82%
Business & Public Services 10.14%
Data Processing & Reproduction 9.83%
Telecommunications 6.68%
Other Industries 26.68%
Cash & Equivalents 19.68%
Percent
of Net
Largest Individual Holdings Assets
- ------------------------------- -----
Time Warner 3.55%
Tele-Communications 3.20
Intel 3.10
Federal National Mortgage 2.80
Walt Disney 2.55
News Corp. 2.45
Advanced Micro Devices 2.25
Silicon Graphics 2.23
Columbia/HCA Healthcare 1.63
National Semiconductor 1.62
</TABLE>
THE GROWTH FUND OF AMERICA
<TABLE>
<CAPTION>
Market Percent
EQUITY-TYPE SECURITIES Value of Net
(common and preferred stocks) Shares (000) Assets
- ------------------------------------- -------- -------- ------
<S> <C> <C> <C>
Broadcasting & Publishing- 15.17%
Time Warner Inc. 5,252,000 $202,859 3.55%
Tele-Communications, Inc., Class A/1/ 8,039,300 182,894 3.20
News Corp. Ltd. (American Depositary
Receipts)(Australia) 5,350,000 96,969
News Corp. Ltd., preferred (American Depositary Receipts) 2,675,000 43,134 2.45
Comcast Corp., Class A 1,680,000 26,460
Comcast Corp., Class A Special Stock 4,210,000 65,781 1.61
Capital Cities/ABC, Inc. 950,000 84,075 1.47
Turner Broadcasting System, Inc., Class B 3,405,300 64,275 1.12
E.W. Scripps Co., Class A 1,350,000 39,319 .69
CBS Inc. 326,480 21,058 .37
LIN Television Corp./1/ 545,850 15,830 .28
New York Times Co., Class A 550,000 11,825 .21
Century Communications Corp., Class A/1/ 1,002,550 8,396 .14
BHC Communications, Inc., Class A/1/ 62,840 4,666 .08
Electronic Components- 11.82%
Intel Corp. 2,229,500 177,524 3.10
Advanced Micro Devices, Inc./1/ 4,238,000 128,729 2.25
National Semiconductor Corp./1/ 5,497,930 92,778 1.62
Texas Instruments Inc. 855,000 67,331 1.18
LSI Logic Corp./1/ 1,200,000 65,400 1.15
Micron Technology, Inc. 850,000 52,700 .92
Newbridge Networks Corp./1/ 1,100,000 37,263 .65
Seagate Technology/1/ 1,050,000 25,200 .44
AMP Inc. 200,000 15,000 .26
Quantum Corp./1/ 669,400 9,790 .17
Cyrix Corp./1/ 200,000 4,600 .08
Business & Public Services- 10.14%
Columbia/HCA Healthcare Corp. 2,252,500 93,197 1.63
United HealthCare Corp. 1,810,000 77,830 1.36
Federal Express Corp./1/ 930,000 60,566 1.06
CUC International Inc./1/ 1,700,000 59,925 1.05
Bay Networks, Inc./1/ 1,590,000 49,688 .87
WMX Technologies, Inc. 1,665,000 43,914 .77
Pitney Bowes Inc. 1,075,000 38,163 .67
General Motors Corp., Class E 900,000 34,538 .60
U.S. Healthcare, Inc. 800,000 34,200 .60
ADT Ltd/1/ 2,680,000 30,820 .54
Coram Healthcare Corp./1/ 400,000 9,400 .16
Oxford Health Plans, Inc./1/ 89,900 8,113 .14
Value Health, Inc./1/ 200,000 7,450 .13
FHP International Corp./1/ 275,000 7,356 .13
Dun & Bradstreet Corp. 140,000 7,228 .13
Humana Inc./1/ 300,000 7,125 .12
Ecolab Inc. 250,000 5,781 .10
Policy Management Systems Corp./1/ 100,000 4,513 .08
Data Processing & Reproduction- 9.83%
Silicon Graphics, Inc./1/ 3,690,000 127,766 2.23
Microsoft Corp./1/ 1,070,000 67,276 1.18
Adobe Systems Inc. 1,725,000 61,238 1.07
International Business Machines Corp. 720,000 54,180 .95
Compaq Computer Corp./1/ 1,400,000 48,300 .84
Dell Computer Corp./1/ 725,000 29,997 .52
Tandem Computers Inc./1/ 1,540,000 26,180 .46
Lotus Development Corp./1/ 600,000 24,900 .44
Hewlett-Packard Co. 200,000 23,000 .40
Electronic Arts/1/ 950,000 20,425 .36
Digital Equipment Corp./1/ 600,000 20,100 .35
Acclaim Entertainment, Inc./1/ 1,280,000 18,240 .32
Apple Computer, Inc. 436,000 17,222 .30
Oracle Systems Corp./1/ 495,000 15,469 .27
Mentor Graphics Corp./1/ 615,000 7,995 .14
Telecommunications- 6.68%
Cellular Communications, Inc./1/ 1,755,000 87,750 1.53
Vodafone Group PLC (American Depositary Receipts)
(United Kingdom) 2,550,000 77,775 1.36
MCI Communications Corp. 3,275,000 65,500 1.15
LIN Broadcasting Corp./1/ 381,600 49,131 .86
AirTouch Communications/1/ 1,459,475 39,771 .70
AT&T Corp. 500,000 25,875 .45
Sprint Corp. 450,000 13,163 .23
Cellular Communications of Puerto Rico, Inc./1/ 374,998 12,656 .22
Telefonos de Mexico, SA de CV, Class L (American
Depositary Receipts) (Mexico) 380,000 10,498 .18
Leisure & Tourism- 4.67%
Walt Disney Co. 2,735,000 145,981 2.55
Promus Companies Inc./1/ 1,400,000 50,050 .88
Mirage Resorts, Inc./1/ 2,000,000 47,750 .84
International Game Technology 1,350,000 18,900 .33
Shoney's, Inc./1/ 375,000 4,125 .07
Financial Services- 3.18%
Federal National Mortgage Assn. 2,075,000 160,034 2.80
Student Loan Marketing Assn. 600,000 22,125 .38
Transportation: Airlines- 2.61%
AMR Corp./1/ 985,000 60,208 1.05
Southwest Airlines Co. 2,548,450 44,916 .79
Delta Air Lines, Inc. 760,000 44,080 .77
Health & Personal Care- 2.42%
Forest Laboratories, Inc./1/ 600,000 30,450 .53
Centocor, Inc./1/ 1,600,000 30,400 .53
Cordis Corp./1/ 300,000 19,500 .34
Puritan-Bennett Corp. 552,000 12,420 .22
Genentech, Inc./1/ 200,000 10,050 .18
Tambrands Inc. 200,000 8,650 .15
Upjohn Co. 200,000 7,050 .12
Scios Nova Inc./1/ 850,000 6,906 .12
Pyxis Corp./1/ 200,000 4,525 .08
Gensia Pharmaceuticals, Inc./1/ 1,325,000 4,306 .08
MedImmune, Inc./1/ 575,000 3,881 .07
Banking- 2.12%
Citicorp 800,000 36,000 .63
BankAmerica Corp. 470,000 22,619 .39
PNC Bank Corp. 600,000 15,300 .27
Commerce Bancshares, Inc. 446,250 13,499 .23
Signet Banking Corp. 350,000 12,731 .22
First Security Corp. 362,500 9,063 .16
H.F. Ahmanson & Co. 335,000 6,156 .11
Northern Trust Corp. 180,000 6,120 .11
Machinery & Engineering- 1.57%
Thermo Electron Corp./1/ 850,000 40,269 .70
Caterpillar Inc. 680,000 35,105 .61
CBI Industries, Inc. 603,700 14,640 .26
Recreation & Consumer Products- 1.55%
WMS Industries Inc./1/ 550,000 11,963 .21
Hasbro, Inc. 265,000 8,348 .14
Insurance- 1.48%
EXEL Ltd. (United Kingdom) 1,140,000 48,593 .85
TIG Holdings, Inc. 675,000 14,006 .25
NAC Re Corp. 350,000 11,375 .20
AMBAC Inc. 250,000 10,156 .18
Chemicals- 1.39%
A. Schulman, Inc. 1,522,500 42,630 .75
Great Lakes Chemical Corp. 410,000 24,651 .43
Loctite Corp. 150,000 6,900 .12
Raychem Corp. 125,000 5,047 .09
Merchandising- 0.75%
Toys 'R' Us, Inc./1/ 925,000 25,784 .45
Home Shopping Network, Inc./1/ 1,850,000 16,419 .28
Gap, Inc. 30,000 975 .02
Energy Equipment- 0.60%
Schlumberger Ltd. (Netherlands Antilles) 575,000 32,703 .57
Western Atlas Inc./1/ 40,000 1,650 .03
Electrical & Electronic Instruments- 0.55%
Telefonaktiebolaget LM Ericsson, Class B
(American Depositary Receipts) (Sweden) 560,000 31,710 .55
Beverages & Tobacco- 0.54%
Philip Morris Companies Inc. 375,000 22,781 .40
PepsiCo, Inc. 200,000 7,825 .14
Transportation: Rail- 0.46%
Southern Pacific Rail Corp./1/ 900,000 16,088 .28
Conrail, Inc. 180,000 9,945 .18
Aerospace & Military Technology- 0.27%
Coltec Industries Inc/1/ 800,000 13,700 .24
Litton Industries, Inc./1/ 40,000 1,460 .03
Electronic Instruments- 0.24%
Applied Materials, Inc./1/ 300,000 13,800 .24
Textiles & Apparel - 0.11%
Delta Woodside Industries, Inc. 600,000 6,524 .11
Food & Household Products- 0.08%
Archer Daniels Midland Co. 242,100 4,600 .08
Transportation: Shipping - 0.08%
Overseas Shipholding Group, Inc. 200,000 4,624 .08
Multi-Industry- 0.06%
Textron Inc. 40,000 2,190 .04
Tenneco Inc. 30,000 1,364 .02
Forest Products & Paper - 0.05%
Jefferson Smurfit Corp./1/ 130,000 2,550 .04
Rayonier Inc. 12,500 375 .01
-------- --------
Other equity-type securities in initial period of 108,509 1.90
acquisition -------- ------
TOTAL EQUITY-TYPE SECURITIES (cost: $3,091,538,000) 4,593,717 80.32
-------- ------
Principal
Amount
(000)
-------- -------- ------
SHORT-TERM SECURITIES
- -------------------------------------
Corporate Short-Term Notes- 17.95%
H.J. Heinz Co. 5.90%-6.05% due 3/2-4/12/95 $106,400 105,862 1.85
Ford Motor Credit Co. 5.83%-6.00% due 3/17-3/30/95 76,400 76,110 1.33
Xerox Corp. 5.95%-6.07% due 4/4-5/1/95 74,800 74,225 1.30
J.C. Penney Funding Corp. 5.85%-5.98% due 3/7-3/23/95 73,500 73,352 1.28
American Express Credit Corp. 5.98%-6.07% due 3/10-4/17/95 66,500 66,171 1.16
U S WEST Communications, Inc. 5.82%-6.02% due 3/13-5/16/95 61,934 61,425 1.07
Eli Lilly and Co. 5.95%-6.10% due 3/7-5/12/95 55,000 54,604 .95
Beneficial Corp. 6.04%-6.08% due 3/2-4/11/95 45,800 45,667 .80
American Telephone and Telegraph Co. 6.00%-6.05%
due 3/6-4/3/95 37,010 36,893 .65
CPC International Inc. 5.97%-6.02% due 3/21-5/16/95 36,500 36,191 .63
National Rural Utilities Cooperative Finance Corp.
6.00% due 4/12-4/17/95 35,400 35,131 .61
Texaco Inc. 6.04% due 4/3/95 35,000 34,804 .61
Central and South West Corp. 5.97%-6.03% due 3/23-4/10/95 29,400 29,256 .51
Commercial Credit Co. 5.95%-6.00% due 3/27-5/4/95 26,900 26,667 .47
John Deere Capital Corp. 5.99%-6.00% due 4/19-5/15/95 26,900 26,615 .47
Procter & Gamble Co. 6.03% due 3/29/95 26,129 26,002 .46
Abbott Laboratories 5.95% due 3/8/95 24,000 23,968 .42
Intel Corp. 5.93% due 3/31/95 21,400 21,289 .37
PACCAR Financial Corp. 5.92%-6.00% due 3/14-5/23/95 21,000 20,834 .36
PepsiCo, Inc. 5.98% due 3/1/95 20,600 20,597 .36
AI Credit Corp. 5.97% due 3/20/95 20,000 19,934 .35
Chevron Oil Financial Corp. 6.02% due 4/18/95 19,400 19,241 .34
Coca-Cola Finance 5.99% due 4/17/95 18,800 18,650 .33
Campbell Soup 6.02% due 3/27/95 18,000 17,919 .31
Chevron Transport Corp. 5.98%-6.03% due 3/3-3/22/95 15,700 15,674 .27
Pitney Bowes Credit Corp. 5.98% due 3/10/95 15,000 14,975 .26
Union Pacific Corp. 6.05% due 5/8/95 15,000 14,825 .26
U.S. Central Credit Union 6.02% due 5/16/95 10,000 9,870 .17
-------- ------
1,026,751 17.95
-------- ------
Federal Agency Short-Term Obligations- 1.72%
Federal Home Loan Mortgage Corp. 5.90%-6.00%
due 3/2-4/5/95 54,220 54,130 .95
Federal National Mortgage Assn. 5.85%-5.88%
due 3/13-3/27/95 25,160 25,063 .44
Federal Home Loan Bank 5.90%-6.00% due 3/7-3/13/95 19,150 19,115 .33
-------- ------
98,308 1.72
-------- ------
TOTAL SHORT-TERM SECURITIES (cost: $1,125,069,000) 1,125,059 19.67
-------- ------
TOTAL INVESTMENT SECURITIES (cost: $4,216,607,000) 5,718,776 99.99
-------- ------
Excess of cash and receivables over payables 731 .01
------ ------
NET ASSETS $5,719,507 100.00%
========== =======
/1/Non-income-producing securities.
</TABLE>
See Notes to Financial Statements
<TABLE>
<CAPTION>
Equity-type securities Equity-type securities
appearing in the portfolio eliminated from the portfolio
since August 31, 1994 since August 31, 1994
<S> <C>
- ---------------------- ----------------------
Bay Networks Acuson
Citicorp Adaptec
Coram Healthcare Caesars World
Cordis Contel Cellular
Dell Computer Duracell International
Delta Woodside Industries Informix
FHP International ITT
Gap Legent
Great Lakes Chemical QVC Network
Home Shopping Network Sun Microsystems
Humana Synergen
International Game Technology SynOptics Communications
LIN Television Tellabs
Micron Technology TJX
Newbridge Networks U.S. Bancorp
Northern Trust Unisys
Oracle Systems VLSI Technology
PepsiCo
Policy Management Systems
Promus
Shoney's
Southern Pacific Rail
Value Health
WMS Industries
</TABLE>
The Growth Fund of America
<TABLE>
<CAPTION>
Financial Statements Unaudited
- --------------------------------------------- ------------- --------------
<S> <C> <C>
Statement of Assets and Liabilities (dollars in
at February 28, 1995 thousands)
- --------------------------------------------- ------------- --------------
Assets:
Investment securities at market
(cost: $4,216,607) $5,718,776
Cash 437
Receivables for-
Sales of investments $10,657
Sales of fund's shares 20,233
Dividends and accrued interest 3,227 34,117
------------- --------------
5,753,330
Liabilities:
Payables for-
Purchases of investments 21,438
Repurchases of fund's shares 8,050
Management services 1,670
Accrued expenses 2,665 33,823
------------- --------------
Net Assets at February 28, 1995-
Equivalent to $26.97 per share on
212,044,599 shares of $0.10 par value
capital stock outstanding (authorized
capital stock--400,000,000 shares) $5,719,507
==============
- --------------------------------------------- ------------- --------------
Unaudited
Statement of Operations (dollars in
for the six months ended February 28, 1995 thousands)
- --------------------------------------------- ------------- --------------
Investment Income:
Income:
Dividends $ 17,582
Interest 26,808 $ 44,390
-------------
Expenses:
Management services fee 10,337
Distribution expenses 6,153
Transfer agent fee 2,582
Reports to shareholders 338
Registration statement and prospectus 267
Postage, stationery and supplies 450
Directors' fees 61
Auditing and legal fees 44
Custodian fee 69
Other expenses 42 20,343
------------- --------------
Net investment income 24,047
--------------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 66,036
Net unrealized appreciation:
Beginning of period 1,461,272
End of period 1,502,169 40,897
------------- --------------
Net realized gain and unrealized appreciation
on investments 106,933
--------------
Net Increase in Net Assets Resulting
from Operations $130,980
==============
See Notes to Financial Statements
- --------------------------------------------- ------------- --------------
Statement of Changes in Net Assets Six months Year ended
ended
February 28, August 31,
(dollars in thousands) 1995* 1994
- --------------------------------------------- ------------- --------------
Operations:
Net investment income $ 24,047 $ 25,072
Net realized gain on investments 66,036 195,013
Net unrealized appreciation
on investments 40,897 77,980
------------- --------------
Net increase in net assets
resulting from operations 130,980 298,065
------------- --------------
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (33,653) (21,621)
Distributions from net realized gain on
investments (205,865) (174,698)
------------- --------------
Total dividends and distributions (239,518) (196,319)
------------- --------------
Capital Share Transactions:
Proceeds from shares sold: 30,265,663
and 59,945,125 shares, respectively 803,096 1,603,821
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 9,099,784 and 7,025,780 shares,
respectively 229,196 183,152
Cost of shares repurchased: 23,851,429
and 55,276,208 shares, respectively (631,725) (1,479,149)
------------- --------------
Net increase in net assets resulting from
capital share transactions 400,567 307,824
------------- --------------
Total Increase in Net Assets 292,029 409,570
Net Assets:
Beginning of period 5,427,478 5,017,908
------------- --------------
End of period (including undistributed
net investment income: $9,428
and $19,034, respectively) $5,719,507 $5,427,478
============= ==============
</TABLE>
* Unaudited
See Notes to Financial Statements
Notes to Financial Statements Unaudited
1. The Growth Fund of America, Inc.(the "fund")is registered under the
Investment Company Act of 1940 as an open-end, diversified management
investment company. The following paragraphs summarize the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
Equity-type securities are stated at market value based upon closing sales
prices reported on recognized securities exchanges on the last business day of
the period or, for listed securities having no sales reported and for unlisted
securities, upon last-reported bid prices on that date.
Short-term securities with original or remaining maturities of in excess of 60
days are valued at the mean of their quoted bid and asked prices. Short-term
securities with 60 days or less to maturity are valued at amortized cost, which
approximates market value. Securities for which market quotations are not
readily available are valued at fair value as determined in good faith by the
Valuation Committee of 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 on securities purchased are amortized over the life of the respective
securities. Dividends and distributions paid to shareholders are recorded on
the ex-dividend date.
Pursuant to the custodian agreement, the fund receives credits against its
custodian fee for imputed interest on certain balances with the custodian bank.
The custodian fee of $69,000 includes $8,000 that was paid by these credits
rather than in cash.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of February 28, 1995, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $1,502,169,000, of which
$1,667,343,000 related to appreciated securities and $165,174,000 related to
depreciated securities. There was no difference between book and tax realized
gains on securities transactions for the six months ended February 28, 1995.
The cost of portfolio securities for book and federal income tax purposes was
$4,216,607,000 at February 28, 1995.
3. The fee of $10,337,000 for management services was paid pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Directors of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.50% of the first $1 billion of net assets; 0.40% of such
assets in excess of $1 billion but not exceeding $2 billion; 0.37% of such
assets in excess of $2 billion but not exceeding $3 billion; 0.35% of such
assets in excess of $3 billion but not exceeding $5 billion; 0.335% of such
assets in excess of $5 billion but not exceeding $8 billion; and 0.325% 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 February 28,
1995, distribution expenses under the Plan were $6,153,000. As of February 28,
1995, accrued and unpaid distribution expenses were $2,554,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $2,582,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $1,535,000 (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 of the fund who are unaffiliated with CRMC may elect to defer part
or all of the fees earned for services as members of the board. Amounts
deferred are not funded and are general unsecured liabilities of the fund. As
of February 28, 1995, aggregate amounts deferred were $76,000.
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/or AFD. No such
persons received any remuneration directly from the fund.
4. As of February 28, 1995, accumulated undistributed net realized gain on
investments was $38,496,000 and additional paid-in capital was $4,148,210,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $484,594,000 and $466,176,000, respectively, during
the six months ended February 28, 1995.
THE GROWTH FUND OF AMERICA
<TABLE>
<CAPTION>
Per-Share Data and Ratios Six months
ended
February 28, Year ended August 31
1995/1/ 1994 1993 1992 1991 1990
------- ------- --------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $27.62 $27.15 $22.04 $22.42 $18.43 $23.06
------- ------- --------- ------- ------- -------
Income from Investment Operations:
Net investment income .12 .13 .13 .23 .43 .56
Net realized and unrealized gain
(loss) on investments .44 1.43 5.26 .81 4.86 (2.59)
------- ------- --------- ------- ------- -------
Total income (loss) from
investment operations .56 1.56 5.39 1.04 5.29 (2.03)
------- ------- --------- ------- ------- -------
Less Distributions:
Dividends from net investment
income (.17) (.12) (.19) (.35) (.48) (.61)
Distributions from net realized
gains (1.04) (.97) (.09) (1.07) (.82) (1.99)
------- ------- --------- ------- ------- -------
Total distributions (1.21) (1.09) (.28) (1.42) (1.30) (2.60)
------- ------- --------- ------- -------- -------
Net Asset Value, End of Period $26.97 $27.62 $27.15 $22.04 $22.42 $18.43
======= ======= ========= ======= ======== ========
Total Return/2/ 2.34%/3/ 5.98% 24.64% 4.91% 30.55% (9.76)%
Ratios/Supplemental Data:
Net assets, end of period (in
millions) $5,720 $5,427 $5,018 $3,700 $2,903 $1,912
Ratio of expenses to average net
assets .38%/3/ .78% .77% .79% .83% .79%
Ratio of net income to average net
assets .45%/3/ .49% .56% 1.11% 2.13% 2.67%
Portfolio turnover rate 10.62%/3/ 24.77% 25.23% 10.64% 18.92% 17.69%
/1/Unaudited
/2/This was calculated without
deducting a sales charge. The
maximum sales charge is 5.75% of
the fund's offering price.
/3/Based on operations for six months,
and, accordingly, not representative
of a full year's operations.
</TABLE>
The Growth Fund of America
BOARD OF DIRECTORS
ROBERT A. FOX
Livingston, California
President and Chief Executive Officer,
Foster Farms Inc.
ROBERTA L. HAZARD
McLean, Virginia
Rear Admiral, U.S. Navy (Retired)
E.T. HINSHAW, JR.
Newport Beach, California
Private investor; former Yachting Commissioner,
Los Angeles Olympic Organizing Committee
RICHARD H.M. HOLMES
Hillsborough, California
Retired; former Vice President,
Capital Research and Management Company
LEONADE D. JONES
Washington, D.C.
Treasurer,
The Washington Post Company
JOHN G. MCDONALD
Stanford, California
The IBJ Professor of Finance,
Graduate School of Business,
Stanford University
THEODORE D. NIERENBERG
Armonk, New York
Private investor; former President,
Dansk International Designs, Ltd.
JAMES W. RATZLAFF
San Francisco, California
Vice Chairman of the Board,
Capital Research and
Management Company
HENRY E. RIGGS
Claremont, California
President and Professor of
Engineering,
Harvey Mudd College
WALTER P. STERN
New York, New York
Chairman of the Board of the fund
Chairman of the Board, Capital
Group International, Inc.
PATRICIA K. WOOLF
Princeton, New Jersey
Private investor; lecturer, Department
of Molecular Biology, Princeton
University
OTHER OFFICERS
JAMES F. ROTHENBERG
Los Angeles, California
President of the fund
President and Director,
Capital Research and Management Company
JAMES E. DRASDO
Los Angeles, California
Senior Vice President of the fund
Senior Vice President and Director,
Capital Research and Management Company
PAUL G. HAAGA, JR.
Los Angeles, California
Senior Vice President of the fund
Senior Vice President and Director,
Capital Research and Management Company
RICHARD M. BELESON
San Francisco, California
Vice President of the fund
Senior Vice President,
Capital Research Company
CLAUDIA P. HUNTINGTON
Los Angeles, California
Vice President of the fund
Senior Vice President,
Capital Research Company
STEVEN N. KEARSLEY
Los Angeles, California
Vice President of the fund
Vice President,
Capital Research and Management Company
THE GROWTH FUND OF AMERICA
OTHER OFFICERS (CONTINUED)
PATRICK F. QUAN
San Francisco, California
Secretary of the fund
Vice President-Fund Business
Management Group,
Capital Research and
Management Company
MARY C. CREMIN
Los Angeles, California
Treasurer of the fund
Senior Vice President-Fund Business
Management Group,
Capital Research and
Management Company
R. MARCIA GOULD
Los Angeles, California
Assistant Treasurer of the fund
Vice President-Fund Business
Management Group,
Capital Research and
Management Company
OFFICE OF THE FUND
Four Embarcadero Center, Suite 1800
Mailing Address: P.O. Box 7650
San Francisco, California 94120-7650
INVESTMENT ADVISER
Capital Research and
Management Company
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
AMERICAN FUNDS SERVICE COMPANY
P.O. Box 2205
Brea, California 92622-2205
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, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Morrison & Foerster
345 California Street
San Francisco, California 94104-2675
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
This report is for the information of shareholders of The Growth Fund of
America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the fund. If used as
sales material after June 30, 1995, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
THE AMERICAN FUNDS GROUP(R)
A PORTFOLIO FOR EVERY INVESTOR
The Growth Fund of America is a member of The American Funds Group - 28 funds
with a wide range of investment objectives and assets totaling more than $90
billion. These funds serve more than 7 million shareholders throughout the
world, including hundreds of leading corporations and institutions.
GROWTH FUNDS
AMCAP Fund
EuroPacific Growth Fund
The Growth Fund of America
The New Economy Fund
New Perspective Fund
SMALLCAP World Fund
GROWTH AND INCOME FUNDS
American Mutual Fund
Capital World Growth and Income Fund
Fundamental Investors
The Investment Company of America
Washington Mutual Investors Fund
EQUITY-INCOME FUNDS
Capital Income Builder
The Income Fund of America
BALANCED FUND
American Balanced Fund
INCOME FUNDS
American High-Income Trust
The Bond Fund of America
Capital World Bond Fund
Intermediate Bond Fund of America
U.S. Government Securities Fund
TAX-EXEMPT INCOME FUNDS
American High-Income Municipal Bond Fund*
Limited Term Tax-Exempt Bond Fund of America
The Tax-Exempt Bond Fund of America
The Tax-Exempt Fund of California
The Tax-Exempt Fund of Maryland
The Tax-Exempt Fund of Virginia
MONEY MARKET FUNDS
The Cash Management Trust of America
The Tax-Exempt Money Fund of America
The U.S. Treasury Money Fund of America
* May invest up to 100% of its assets in bonds subject to the alternative
minimum tax.
Investments in the funds are neither insured nor guaranteed by the U.S.
government or any other entity. There can be no assurance that the money market
funds will maintain a constant net asset value of $1.00 per share.
FOR MORE COMPLETE INFORMATION ABOUT ANY OF THE FUNDS, INCLUDING CHARGES AND
EXPENSES, PLEASE OBTAIN A PROSPECTUS FROM YOUR SECURITIES DEALER OR FINANCIAL
PLANNER, OR PHONE THE FUND'S TRANSFER AGENT, AMERICAN FUNDS SERVICE COMPANY, AT
800/421-0180. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
Remember, as a shareholder of The Growth Fund of America, whenever your
objectives change you can transfer some or all of your holdings to another fund
in The American Funds Group free of charge. Exchange privileges are subject to
change or termination.
Litho in USA CD/GRS
Lit. No. GFA-013-0495
Printed on recycled paper
[The American Funds Group (R)]
|
|