SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 63 (X)
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 22 (X)
THE GROWTH FUND OF AMERICA, INC.
(Exact name of registrant as specified in charter)
P.O. Box 7650, Four Embarcadero Center, San Francisco, California 94120
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (415) 421-9360
Patrick F. Quan, Secretary
The Growth Fund of America, Inc.
P.O. Box 7650, Four Embarcadero Center
San Francisco, California 94120
(Name and address of agent for service)
Copy to:
Cary I. Klafter, Esq.
Morrison & Foerster
345 California Street, 30th Floor
San Francisco, California 94104
The Registrant has filed a declaration
pursuant to Rule 24f-2. On
October 18, 1995, it filed its 24f-2
Notice for fiscal 1995.
Approximate date of proposed public offering:
[X] It is proposed that this filing will
become effective on November 1, 1995
pursuant to paragraph (b) of Rule 485.
<PAGE>
THE GROWTH FUND OF AMERICA, INC.
Cross Reference Sheet
<TABLE>
<CAPTION>
Item Number Captions in
of Part "A" Prospectus
of Form N-1A (Part "A")
<S> <C> <C> <C>
1. Cover Page Cover Page
2. Synopsis Summary of Expenses
3. Condensed Financial Information Financial Highlights;
Investment Results
4. General Description of Registrant Fund Organization
and Management;
Investment Objective and
Policies; Certain Securities
and Investment Techniques
5. Management of the Fund Financial Highlights;
Fund Organization and
Management
6. Capital Stock and Other Securities Investment Objective
and Policies; Fund
Organization and
Management; Dividends,
Distributions and Taxes;
Retirement Plans
7. Purchase of Securities Being Offered Purchasing Shares;
Fund Organization and
Management; Shareholder
Services
8. Redemption or Repurchase Redeeming Shares
9. Legal Proceedings N/A
</TABLE>
<TABLE>
<CAPTION>
Captions in Statement
Item Number of Additional
of Part "B" Information
of Form N-1A (Part "B")
<S> <C> <C> <C>
10. Cover Page Cover
11. Table of Contents Table of Contents
12. General Information and History None
13. Investment Objectives and Policies Description of Certain
Securities; Fundamental
Policies and Investment
Restrictions
14. Management of the Fund Fund Officers and
Directors
15. Control Persons and Principal Fund Officers and
Holders of Securities Directors; Fund
Organization and
Management (Part A)
16. Investment Advisory and Other Services Fund Officers and
Directors; Fund
Organization and
Management (Part "A");
General Information;
Management
17. Brokerage Allocation and Other Practices Execution of Portfolio
Transactions; Fund
Organization and
Management (Part "A")
18. Capital Stock and Other Securities None
19. Purchase, Redemption and Pricing Purchase of Shares;
of Securities Being Offered Shareholder Account
Services and Privileges;
Purchasing Shares (Part
"A"); General Information
20. Tax Status Dividends,
Distributions and Federal
Taxes
21. Underwriter Management; Fund
Organization and
Management (Part "A")
22. Calculation of Performance Data Investment Results
23. Financial Statements Financial Statements
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Item in
Part "C"
24. Financial Statements and Exhibits
25. Persons Controlled by or Under Common Control
with Registrant
26. Number of Holders of Securities
27. Indemnification
28. Business and Other Connections of Investment Adviser
29. Principal Underwriter
30. Location of Accounts and Records
31. Management Services
32. Undertakings
</TABLE>
Signature Page
<PAGE>
Prospectus
THE GROWTH FUND OF AMERICA(R)
AN OPPORTUNITY FOR GROWTH OF
CAPITAL THROUGH A DIVERSIFIED
PORTFOLIO OF COMMON STOCKS
[LOGO OF THE AMERICAN FUNDS GROUP(R)]
November 1, 1995
THE GROWTH FUND OF AMERICA, INC.
Four Embarcadero Center
Suite 1800
San Francisco, CA 94111
The investment objective of the fund is growth of capital. The realization of
current income will not be a consideration. The fund strives to accomplish
this objective by investing primarily in common stocks.
This prospectus presents information you should know before investing in the
fund. It should be retained for future reference.
You may obtain the statement of additional information for the fund dated
November 1, 1995, which contains the fund's financial statements, without
charge by writing to the Secretary of the fund at the above address or
telephoning 800/421-0180. These requests will be honored within three business
days of receipt.
SHARES OF THE FUND 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. THE
PURCHASE OF FUND SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS
OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
05-010-1195
<PAGE>
TABLE OF CONTENTS
Summary of Expenses....................................... 3
Financial Highlights...................................... 4
Investment Objective and Policies......................... 4
Certain Securities and Investment Techniques.............. 5
Investment Results........................................ 7
Dividends, Distributions and Taxes........................ 8
Fund Organization and Management.......................... 9
The American Funds Shareholder Guide...................... 12-20
Purchasing Shares........................................ 12
Reducing Your Sales Charge............................... 15
Shareholder Services..................................... 16
Redeeming Shares......................................... 18
Retirement Plans......................................... 20
IMPORTANT PHONE NUMBERS
Shareholder Services................ 800/421-0180 ext. 1
Dealer Services..................... 800/421-9900 ext. 11
American FundsLine(R)............... 800/325-3590
(24-hour information)
<PAGE>
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SUMMARY OF EXPENSES
Average annual expenses
paid over a 10-year
period would be
approximately $15 per
year, assuming a $1,000
investment and a 5%
annual return.
This table is designed to help you understand costs of investing in the fund.
These are historical expenses; your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
<TABLE>
<S> <C>
Maximum sales charge on purchases
(as a percentage of offering price)................................... 5.75%/1/
</TABLE>
The fund has no sales charge on reinvested dividends, deferred sales
charge,/2/ redemption fees or exchange fees.
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
<TABLE>
<S> <C>
Management fees....................................................... 0.38%
12b-1 expenses........................................................ 0.24%/3/
Other expenses (including audit, legal, shareholder services, transfer
agent and custodian expenses)........................................ 0.13%
Total fund operating expenses......................................... 0.75%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following cumulative ex-
penses on a $1,000 investment, assuming a 5%
annual return./4/ $65 $80 $97 $145
</TABLE>
/1/ Sales charges are reduced for certain large purchases. (See "The American
Funds Shareholder Guide: Purchasing Shares--Sales Charges.")
/2/ Any employer-sponsored 403(b) plan or defined contribution plan qualified
under Section 401(a) of the Internal Revenue Code including a "401(k)" plan
with 200 or more eligible employees or any other purchaser investing at
least $1 million in shares of the fund (or in combination with shares of
other funds in The American Funds Group other than the money market funds)
may purchase shares at net asset value; however, a contingent deferred sales
charge of 1% applies on certain redemptions within 12 months following such
purchases. (See "The American Funds Shareholder Guide: Redeeming Shares--
Contingent Deferred Sales Charge.")
/3/ These expenses may not exceed 0.25% of the fund's average net assets
annually. (See "Fund Organization and Management--Plan of Distribution.")
Due to these distribution expenses, long-term shareholders may pay more than
the economic equivalent of the maximum front-end sales charge permitted by
the National Association of Securities Dealers.
/4/ Use of this assumed 5% return is required by the Securities and Exchange
Commission; it is not an illustration of past or future investment results.
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES; ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
3
<PAGE>
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FINANCIAL The following information for the ten years ended
HIGHLIGHTS August 31, 1995 has been derived from financial
(For a share statements which have been audited by Deloitte & Touche
outstanding LLP, independent accountants. This information should
throughout the be read in conjunction with the financial statements
fiscal year) and related notes, which are included in the statement
of additional information.
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31
---------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Year........... $27.62 $27.15 $22.04 $22.42 $18.43 $23.06 $17.42 $21.21 $17.15 $14.49
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income... 0.25 0.13 0.13 0.23 0.43 0.56 0.53 0.27 0.27 0.29
Net realized and
unrealized gain (loss)
on investments......... 6.43 1.43 5.26 0.81 4.86 (2.59) 6.01 (2.67) 4.86 3.46
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
Total income from in-
vestment operations.. 6.68 1.56 5.39 1.04 5.29 (2.03) 6.54 (2.40) 5.13 3.75
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
LESS DISTRIBUTIONS:
Distributions from net
investment income...... (0.17) (0.12) (0.19) (0.35) (0.48) (0.61) (0.31) (0.29) (0.28) (0.22)
Distributions from net
realized gains......... (1.04) (0.97) (0.09) (1.07) (0.82) (1.99) (0.59) (1.10) (0.79) (0.87)
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
Total distributions... (1.21) (1.09) (0.28) (1.42) (1.30) (2.60) (0.90) (1.39) (1.07) (1.09)
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
Net Asset Value, End of
Year................... $33.09 $27.62 $27.15 $22.04 $22.42 $18.43 $23.06 $17.42 $21.21 $17.15
====== ====== ====== ====== ====== ====== ====== ======= ====== ======
Total Return/1/......... 25.56% 5.98% 24.64% 4.91% 30.55% (9.76)% 39.35% (10.73)% 32.27% 28.64%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets, end of year
(in millions)......... $7,525 $5,427 $5,018 $3,700 $2,903 $1,912 $1,686 $ 1,038 $1,237 $ 822
Ratio of expenses to
average net assets.... .75% .78% .77% .79% .83% .79% .78% .71% .66% .66%
Ratio of net income to
average net assets.... .90% .49% .56% 1.11% 2.13% 2.67% 2.82% 1.56% 1.50% 1.84%
Portfolio turnover
rate.................. 26.90% 24.77% 25.23% 10.64% 18.92% 17.69% 30.28% 18.33% 19.61% 24.35%
</TABLE>
--------
/1/ This was calculated without deducting a sales charge. The maximum sales
charge is 5.75% of the fund's offering price.
INVESTMENT The fund's investment objective is growth of capital.
OBJECTIVE The realization of current income will not be a
AND POLICIES consideration. The fund seeks to achieve its objective
by investing in a diversified portfolio consisting
The fund aims to primarily of common stocks. However, assets may also be
provide you with held in securities convertible into common stocks, cash
growth of capital. or cash equivalents, straight debt securities
(including U.S. Government securities), or
nonconvertible preferred stocks. (See the statement of
additional information for a description of cash
equivalents.) The fund will maintain at least 65% of
the value of its total assets in growth-type securities
under normal market conditions.
Up to 10% of the fund's assets may be invested in
"high-yield, high-risk" straight debt securities
(commonly referred to as "junk bonds") which are rated
BB or below by Standard & Poor's Corporation and Ba or
below by Moody's Investors Service, Inc. or in unrated
securities that are determined to be of equivalent
quality, provided the fund's investment adviser,
Capital Research and Management Company, determines
that these securities have characteristics similar to
the equity securities eligible for purchase by the
fund. "High-yield, high-risk" securities carry a higher
degree of investment risk than higher rated bonds and
are considered speculative.
4
<PAGE>
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The fund may invest up to 10% in the securities of
issuers domiciled outside the U.S. and may purchase or
sell various currencies on a spot basis in connection
with such investments.
The fund will attempt to take prompt advantage of
market conditions and as a result may at times have a
high rate of portfolio turnover relative to many other
mutual funds. The fund may dispose of any security at
any time, and it is the fund's intention to take either
short- or long-term profits or losses consistent with
its objective and sound investment practice, and when
such action would not impair the fund's tax status.
The growth-oriented, equity-type securities generally
purchased by the fund may involve greater risk than is
customarily associated with investing in stocks of
larger, more established companies and may be subject
to greater price swings.
The fund's investment restrictions (which are described
in the statement of additional information) and
objective cannot be changed without shareholder
approval. All other investment practices may be changed
by the fund's board.
ACHIEVEMENT OF THE FUND'S INVESTMENT OBJECTIVE CANNOT,
OF COURSE, BE ASSURED DUE TO THE RISK OF CAPITAL LOSS
FROM FLUCTUATING PRICES INHERENT IN ANY INVESTMENT IN
SECURITIES.
CERTAIN SECURITIES RISKS OF INVESTING Because the fund invests in common
AND INVESTMENT stocks or securities convertible into common stocks,
TECHNIQUES the fund is subject to stock market risks. For example,
the fund is subject to the possibility that stock
Investing in prices in general will decline over short or even
stocks and bonds extended periods.
involves certain
risks. The fund may also invest in high-yield, high-risk
securities provided that Capital Research and
Management Company determines that these securities
have characteristics similar to the equity securities
eligible for purchase by the fund. The values of these
securities may be subject to fluctuations that tend to
reflect short-term corporate and market developments
and investor perceptions of the issuers. It may be more
difficult to dispose of, or determine the value of
these high-yield, high-risk securities. See the
statement of additional information for a description
of the ratings and for more information about the risks
of high-yield, high-risk securities. High-yield, high-
risk securities rated CC or Ca generally are described
by the rating agencies as "speculative in a high
degree; often in default or [having] other marked
shortcomings."
RISKS OF INVESTING IN VARIOUS COUNTRIES The fund may
invest in the securities of non-U.S. companies. These
companies may not be subject to uniform accounting,
auditing and financial reporting standards and
practices or regulatory requirements comparable to
those applicable to U.S. companies. There may also be
less public information available
5
<PAGE>
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about non-U.S. companies. Additionally, specific local
political and economic factors must be evaluated in
making these investments including trade balances and
imbalances, and related economic policies;
expropriation or confiscatory taxation; limitations on
the removal of funds or other assets; political or
social instability; the diverse structure and liquidity
of the various securities markets; and nationalization
policies of governments around the world. However,
investing outside the U.S. can also reduce certain of
these risks due to greater diversification
opportunities.
PRIVATE PLACEMENTS Private placements may be either
purchased from another institutional investor that
originally acquired the securities in a private
placement or directly from the issuers of the
securities. Generally, securities acquired in private
placements are subject to contractual restrictions on
resale and may not be resold except pursuant to a
registration statement under the Securities Act of 1933
or in reliance upon an exemption from the registration
requirements under the Act, for example, private
placements sold pursuant to Rule 144A. Accordingly, any
such obligation will be deemed illiquid unless it has
been specifically determined to be liquid under
procedures adopted by the fund's board of directors.
In determining whether these securities are liquid,
factors such as the frequency and volume of trading and
the commitment of dealers to make markets will be
considered. Additionally, the liquidity of any
particular security will depend on such factors as the
availability of "qualified" institutional investors and
the extent of investor interest in the security, which
can change from time to time.
MULTIPLE PORTFOLIO COUNSELOR SYSTEM The basic
investment philosophy of Capital Research and
Management Company is to seek fundamental values at
reasonable prices, using a system of multiple portfolio
counselors in managing mutual fund assets. Under this
system the portfolio of the fund is divided into
segments which are managed by individual counselors.
Each counselor decides how their segment will be
invested (within the limits provided by the fund's
objective and policies and by Capital Research and
Management Company's investment committee). In
addition, Capital Research and Management Company's
research professionals make investment decisions with
respect to a portion of the fund's portfolio. The
primary individual portfolio counselors for the fund
are listed on the next page.
6
<PAGE>
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<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
YEARS OF EXPERIENCE AS YEARS OF EXPERIENCE AS
PORTFOLIO COUNSELOR INVESTMENT
PORTFOLIO COUNSELORS (AND RESEARCH PROFESSIONAL
FOR PROFESSIONAL, IF (APPROXIMATE)
THE GROWTH FUND PRIMARY TITLE(S) APPLICABLE) FOR THE
OF AMERICA, INC. GROWTH FUND OF WITH CAPITAL
AMERICA, INC. RESEARCH AND
(APPROXIMATE) MANAGEMENT
COMPANY OR TOTAL
ITS AFFILIATES YEARS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gordon Crawford Vice President of the 4 years (in addition 24 years 24 years
fund. Senior Vice to 16 years as a
President and Director, research professional
Capital Research Company* prior to becoming a
portfolio counselor
for the fund)
- ------------------------------------------------------------------------------------------------
James E. Drasdo Senior Vice President of 10 years (in addition 18 years 24 years
the fund. to 7 years as a
Senior Vice President and research professional
Director, Capital Re- prior to becoming a
search and Management portfolio counselor
Company for the fund)
- ------------------------------------------------------------------------------------------------
Claudia P. Vice President of the 3 years (in addition 18 years 20 years
Huntington fund. Senior Vice Presi- to 10 years as a
dent, Capital Research research professional
Company* prior to becoming a
portfolio counselor
for the fund)
- ------------------------------------------------------------------------------------------------
William C. Newton Senior Partner, The Capi- 22 years** 36 years 42 years
tal Group Partners L.P.*
- ------------------------------------------------------------------------------------------------
James F. President of the fund. 7 years (in addition 25 years 25 years
Rothenberg President and Director, to 3 years
Capital Research and as a research
Management Company professional prior to
becoming a portfolio
counselor for the
fund)
- ------------------------------------------------------------------------------------------------
R. Michael Chairman, Capital Re- 10 years 31 years 31 years
Shanahan search and
Management Company
- ------------------------------------------------------------------------------------------------
* Company affiliated with Capital Research and Management Company.
** Since Capital Research and Management Company took over management of
the fund in 1973.
- ------------------------------------------------------------------------------------------------
</TABLE>
INVESTMENT The fund may from time to time compare its investment
RESULTS results to various unmanaged indices or other mutual
funds in reports to shareholders, sales literature and
The fund has advertisements. The results may be calculated on a
averaged a total yield, total return and/or distribution rate basis for
return of +16.50% various periods, with or without sales charges. Results
a year (assuming calculated without a sales charge will be higher. Total
the maximum sales returns assume the reinvestment of all dividends and
charge was paid) capital gain distributions. The fund's distribution
under Capital rate is calculated by dividing the dividends paid by
Research and the fund over the last 12 months by the sum of the
Management month-end price and the capital gains paid over the
Company's last 12 months. The SEC yield reflects income earned by
management. the fund, while the distribution rate reflects divi-
dends paid by the fund. Among the elements used to cal-
(December 1, 1973 culate the SEC yield are the dividend and interest in-
through September come earned and expenses paid by the fund, whereas the
30, 1995) income paid to shareholders is used to calculate the
distribution rate.
As of September 30, 1995, the fund's total return over
the past 12 months and average annual total returns
over the past five- and ten-year periods were +21.89%,
+17.83% and +15.84%, respectively. These
7
<PAGE>
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results were calculated in accordance with Securities
and Exchange Commission rules which require that the
maximum sales charge be deducted. Of course, past
results are not an indication of future results.
Further information regarding the fund's investment
results is contained in the fund's annual report which
may be obtained without charge by writing to the
Secretary of the fund at the address indicated on the
cover of this prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS in December. Capital gains, if any, are also usually
AND TAXES distributed in December. When a dividend or capital
gain is distributed, the net asset value per share is
Income reduced by the amount of the payment.
distributions are
usually made in FEDERAL TAXES The fund intends to operate as a
December. "regulated investment company" under the Internal
Revenue Code. In any fiscal year in which the fund so
qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved of federal income tax.
All dividends and capital gains are taxable whether
they are reinvested or received in cash--unless you are
exempt from taxation or entitled to tax deferral. Early
each year, you will be notified as to the amount and
federal tax status of all dividends and capital gains
paid during the prior year. Such dividends and capital
gains may also be subject to state or local taxes.
IF YOU HAVE NOT FURNISHED A CERTIFIED CORRECT TAXPAYER
IDENTIFICATION NUMBER (GENERALLY YOUR SOCIAL SECURITY
NUMBER) AND HAVE NOT CERTIFIED THAT WITHHOLDING DOES
NOT APPLY, OR IF THE INTERNAL REVENUE SERVICE HAS
NOTIFIED THE FUND THAT THE TAXPAYER IDENTIFICATION
NUMBER LISTED ON YOUR ACCOUNT IS INCORRECT ACCORDING TO
THEIR RECORDS OR THAT YOU ARE SUBJECT TO BACKUP
WITHHOLDING, FEDERAL LAW GENERALLY REQUIRES THE FUND TO
WITHHOLD 31% FROM ANY DIVIDENDS AND/OR REDEMPTIONS
(INCLUDING EXCHANGE REDEMPTIONS). Amounts withheld are
applied to your federal tax liability; a refund may be
obtained from the Service if withholding results in
overpayment of taxes. Federal law also requires the
fund to withhold 30% or the applicable tax treaty rate
from dividends paid to certain nonresident alien, non-
U.S. partnership and non-U.S. corporation shareholder
accounts.
This is a brief summary of some of the tax laws that
affect your investment in the fund. Please see the
statement of additional information and your tax
adviser for further information.
8
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FUND FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
ORGANIZATION end, diversified management investment company, was
AND organized as a Delaware corporation in 1958 and
MANAGEMENT reorganized as a Maryland corporation in 1983. The
fund's board supervises fund operations and performs
The fund is a duties required by applicable state and federal law.
member of The Members of the board who are not employed by Capital
American Funds Research and Management Company or its affiliates are
Group, which is paid certain fees for services rendered to the fund as
managed by one of described in the statement of additional information.
the largest and They may elect to defer all or a portion of these fees
most experienced through a deferred compensation plan in effect for the
investment fund. Shareholders have one vote per share owned and,
advisers. at the request of the holders of at least 10% of the
shares, the fund will hold a meeting at which any
member of the board could be removed by a majority
vote. There will not usually be a shareholder meeting
in any year, except, for example, when the election of
the board is required to be acted upon by shareholders
under the Investment Company Act of 1940.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071, and at 135 South State College
Boulevard, Brea, CA 92621. (See "The American Funds
Shareholder Guide: Purchasing Shares--Investment
Minimums and Fund Numbers" for a listing of funds in
The American Funds Group.) Capital Research and
Management Company manages the investment portfolio and
business affairs of the fund and receives a fee at the
annual rates of 0.50% on the first $1 billion of the
fund's net assets, 0.40% on net assets in excess of $1
billion but not exceeding $2 billion, 0.37% on net assets
in excess of $2 billion but not exceeding $3 billion,
0.35% on net assets in excess of $3 billion but not
exceeding $5 billion, 0.335% on net assets in excess of
$5 billion but not exceeding $8 billion, and 0.325% on
net assets in excess of $8 billion.
Capital Research and Management Company is a wholly
owned subsidiary of The Capital Group Companies, Inc.
(formerly "The Capital Group, Inc."), which is located
at 333 South Hope Street, Los Angeles, CA 90071. The
research activities of Capital Research and Management
Company are conducted by affiliated companies which
have offices in Los Angeles, San Francisco, New York,
Washington, D.C., London, Geneva, Singapore, Hong Kong
and Tokyo.
9
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Capital Research and Management Company and its
affiliated companies have adopted a personal investing
policy that is consistent with the recommendations
contained in the report dated May 9, 1994 issued by the
Investment Company Institute's Advisory Group on
Personal Investing. (See the statement of additional
information.)
PORTFOLIO TRANSACTIONS Orders for the fund's portfolio
securities transactions are placed by Capital Research
and Management Company, which strives to obtain the
best available prices, taking into account the costs
and quality of executions. In the over-the-counter
market, purchases and sales are transacted directly
with principal market-makers except in those
circumstances where it appears better prices and
executions are available elsewhere.
Subject to the above policy, when two or more brokers
are in a position to offer comparable prices and
executions, preference may be given to brokers that
have sold shares of the fund or have provided
investment research, statistical, and other related
services for the benefit of the fund and/or of other
funds served by Capital Research and Management
Company.
PRINCIPAL UNDERWRITER American Funds Distributors,
Inc., a wholly owned subsidiary of Capital Research and
Management Company, is the principal underwriter of the
fund's shares. American Funds Distributors, Inc. is
located at 333 South Hope Street, Los Angeles, CA
90071, 135 South State College Boulevard, Brea, CA
92621, 8000 IH-10 West, San Antonio, TX 78230, 8332
Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513. Telephone
conversations with American Funds Distributors may be
recorded or monitored for verification, recordkeeping
and quality assurance purposes.
PLAN OF DISTRIBUTION The fund has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
the categories of expenses are approved in advance by
the board and the expenses paid under the plan were
incurred within the last 12 months and accrued while
the plan was in effect. Expenditures by the fund under
the plan may not exceed 0.25% of its average net assets
annually (all of which may be for service fees). See
"The American Funds Shareholder Guide: Purchasing
Shares--Sales Charges" below.
10
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TRANSFER AGENT American Funds Service Company, a wholly
owned subsidiary of Capital Research and Management
Company, is the transfer agent and performs shareholder
service functions. It was paid a fee of $5,731,000 for
the fiscal year ended August 31, 1995. Telephone
conversations with American Funds Service Company may
be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
SERVICE ADDRESS AREAS SERVED
AREA
------------------------------------------------------------
WEST P.O. Box 2205 AK, AZ, CA, HI, ID,
Brea, CA 92622-2205 MT, NV, OR, UT, WA
Fax: 714/671-7080 and outside the U.S.
------------------------------------------------------------
CENTRAL- P.O. Box 659522 AR, CO, IA, KS, LA,
WEST San Antonio, TX 78265-9522 MN, MO, ND, NE, NM,
Fax: 210/530-4050 OK, SD, TX and WY
------------------------------------------------------------
CENTRAL- P.O. Box 6007 AL, IL, IN, KY, MI,
EAST Indianapolis, IN 46206-6007 MS, OH, TNand WI
Fax: 317/735-6620
------------------------------------------------------------
EAST P.O. Box 2280 CT, DE, FL, GA, MA,
Norfolk, VA 23501-2280 MD, ME, NC, NH, NJ,
Fax: 804/670-4773 NY, PA, RI, SC, VA,
VT, WV and
Washington, D.C.
------------------------------------------------------------
ALL SHAREHOLDERS MAY CALL AMERICAN FUNDS SERVICE
COMPANY AT 800/421-0180 FOR SERVICE.
------------------------------------------------------------
[MAP OF THE UNITED STATES OF AMERICA]
------------------------------------------------------------
West (light grey); Central-West (white); Central-East
(dark grey); East (red)
11
<PAGE>
THE AMERICAN FUNDS SHAREHOLDER GUIDE
---------------------------------------------------------
PURCHASING SHARES METHOD INITIAL INVESTMENT ADDITIONAL INVESTMENTS
---------------------------------------------------------
Your investment See "Investment $50 minimum (except
dealer can help Minimums and Fund where a lower
you establish your Numbers" for minimum is noted
account--and help initial under "Investment
you add to it investment Minimums and Fund
whenever you like. minimums. Numbers").
---------------------------------------------------------
By Visit any Mail directly to
contacting investment dealer your investment
your who is registered dealer's address
investment in the state printed on your
dealer where the account statement.
purchase is made
and who has a
sales agreement
with American
Funds
Distributors.
---------------------------------------------------------
By mail Make your check Fill out the account
payable to the additions form at the
fund and mail to bottom of a recent
the address account statement,
indicated on the make your check
account payable to the fund,
application. write your account
Please indicate number on your check,
an investment and mail the check
dealer on the and form in the
account envelope provided
application. with your account
statement.
---------------------------------------------------------
By wire Call 800/421-0180 Your bank should wire
to obtain your your additional
account investments in the
number(s), if same manner as
necessary. Please described under
indicate an "Initial Investment."
investment dealer
on the account.
Instruct your
bank to wire
funds to:
Wells Fargo Bank
155 Fifth Street
Sixth Floor
San Francisco,
CA 94106
(ABA #121000248)
For credit to the
account of:
American Funds
Service Company
a/c #4600-076178
(fund name)
(your fund acct.
no.)
---------------------------------------------------------
THE FUNDS AND AMERICAN FUNDS DISTRIBUTORS RESERVE
THE RIGHT TO REJECT ANY PURCHASE ORDER.
SHARE PRICE Shares are purchased at the next offering
price after the order is received by the fund or
American Funds Service Company. In the case of orders
sent directly to the fund or American Funds Service
Company, an investment dealer MUST be indicated. This
price is the net asset value plus a sales charge, if
applicable. Dealers are responsible for promptly
transmitting orders. (See the statement of additional
information under "Purchase of Shares--Price of
Shares.")
The net asset value per share is determined as of the
close of trading (currently 4:00 p.m., New York time) on
each day the New York Stock Exchange is open. The
current value of the fund's total assets, less all
liabilities, is divided by the total number of shares
outstanding and the result, rounded to the nearer cent,
is the net asset value per share. The net asset value
per share of the money market funds normally will remain
constant at $1.00 based on the funds' current practice
of valuing their shares using the penny-rounding method
in accordance with rules of the Securities and Exchange
Commission.
SHARE CERTIFICATES Shares are credited to your account
and certificates are not issued unless specifically
requested. This eliminates the costly problem of lost or
destroyed certificates.
12
<PAGE>
================================================================================
If you would like certificates issued, please request
them by writing to American Funds Service Company.
There is usually no charge for issuing certificates in
reasonable denominations. CERTIFICATES ARE NOT AVAIL-
ABLE FOR THE MONEY MARKET FUNDS.
INVESTMENT MINIMUMS AND FUND NUMBERS Here are the
minimum initial investments required by the funds in
The American Funds Group along with fund numbers for
use with our automated phone line, American
FundsLine(R) (see description below):
<TABLE>
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
- ---- ---------- ------
<S> <C> <C>
STOCK AND STOCK/BOND FUNDS
AMCAP Fund(R)...................................... $1,000 02
American Balanced Fund(R).......................... 500 11
American Mutual Fund(R)............................ 250 03
Capital Income Builder(R).......................... 1,000 12
Capital World Growth and Income Fund(SM)........... 1,000 33
EuroPacific Growth Fund(R)......................... 250 16
Fundamental Investors(SM).......................... 250 10
The Growth Fund of America(R)...................... 1,000 05
The Income Fund of America(R)...................... 1,000 06
The Investment Company of America(R)............... 250 04
The New Economy Fund(R)............................ 1,000 14
New Perspective Fund(R)............................ 250 07
SMALLCAP World Fund(SM)............................ 1,000 35
Washington Mutual Investors Fund(SM)............... 250 01
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
- ---- ---------- ------
<S> <C> <C>
BOND FUNDS
American High-Income Municipal Bond Fund(SM)....... $1,000 40
American High-Income Trust(R)...................... 1,000 21
The Bond Fund of America(SM)....................... 1,000 08
Capital World Bond Fund(R)......................... 1,000 31
Intermediate Bond Fund of America(R)............... 1,000 23
Limited Term Tax-Exempt Bond Fund of America(SM)... 1,000 43
The Tax-Exempt Bond Fund of America(SM)............ 1,000 19
The Tax-Exempt Fund of California(R)*.............. 1,000 20
The Tax-Exempt Fund of Maryland(R)*................ 1,000 24
The Tax-Exempt Fund of Virginia(R)*................ 1,000 25
U.S. Government Securities Fund(SM)................ 1,000 22
MONEY MARKET FUNDS
The Cash Management Trust of America(R)............ 2,500 09
The Tax-Exempt Money Fund of America(SM)........... 2,500 39
The U.S. Treasury Money Fund of America(SM)........ 2,500 49
</TABLE>
- --------
* Available only in certain states.
For retirement plan investments, the minimum is $250,
except that the money market funds have a minimum of
$1,000 for individual retirement accounts (IRAs). Mini-
mums are reduced to $50 for purchases through "Auto-
matic Investment Plans" (except for the money market
funds) or to $25 for purchases by retirement plans
through payroll deductions and may be reduced or waived
for shareholders of other funds in The American Funds
Group. TAX-EXEMPT FUNDS SHOULD NOT SERVE AS RETIREMENT
PLAN INVESTMENTS. The minimum is $50 for additional in-
vestments (except as noted above).
SALES CHARGES The sales charges you pay when purchasing
the stock, stock/bond, and bond funds of The American
Funds Group are set forth below. The money market funds
of The American Funds Group are offered at net asset
value. (See "Investment Minimums and Fund Numbers" for
a listing of the funds.)
13
<PAGE>
================================================================================
<TABLE>
<CAPTION>
DEALER
SALES CHARGE AS CONCESSION
PERCENTAGE OF THE: AS PERCENTAGE
------------------ OF THE
AMOUNT OF PURCHASE NET AMOUNT OFFERING OFFERING
AT THE OFFERING PRICE INVESTED PRICE PRICE
--------------------- ---------- -------- -------------
<S> <C> <C> <C>
STOCK AND STOCK/BOND FUNDS
Less than $50,000................. 6.10% 5.75% 5.00%
$50,000 but less than $100,000.... 4.71 4.50 3.75
BOND FUNDS
Less than $25,000................. 4.99 4.75 4.00
$25,000 but less than $50,000..... 4.71 4.50 3.75
$50,000 but less than $100,000.... 4.17 4.00 3.25
STOCK, STOCK/BOND, AND BOND FUNDS
$100,000 but less than $250,000... 3.63 3.50 2.75
$250,000 but less than $500,000... 2.56 2.50 2.00
$500,000 but less than $1,000,000. 2.04 2.00 1.60
$1,000,000 or more................ none none (see below)
</TABLE>
Commissions of up to 1% will be paid to dealers who
initiate and are responsible for purchases of $1 mil-
lion or more, for purchases by any employer-sponsored
403(b) plan or defined contribution plan qualified un-
der Section 401(a) of the Internal Revenue Code includ-
ing a "401(k)" plan with 200 or more eligible employees
(paid pursuant to the fund's plan of distribution), and
for purchases made at net asset value by certain re-
tirement plans of organizations with collective retire-
ment plan assets of $100 million or more as set forth
in the statement of additional information (paid by
American Funds Distributors).
American Funds Distributors, at its expense (from a
designated percentage of its income), will, during cal-
endar year 1996, provide additional promotional incen-
tives to dealers. Currently these incentives are lim-
ited to the top one hundred dealers who have sold
shares of the fund or other funds in The American Funds
Group. These incentive payments will be based on a pro
rata share of a qualifying dealer's sales. American
Funds Distributors will, on an annual basis, determine
the advisability of continuing these promotional incen-
tives.
Any employer-sponsored 403(b) plan or defined contribu-
tion plan qualified under Section 401(a) of the Inter-
nal Revenue Code including a "401(k)" plan with 200 or
more eligible employees or any other purchaser invest-
ing at least $1 million in shares of the fund (or in
combination with shares of other funds in The American
Funds Group other than the money market funds) may pur-
chase shares at net asset value; however, a contingent
deferred sales charge of 1% is imposed on certain re-
demptions within one year of the purchase. (See "Re-
deeming Shares--Contingent Deferred Sales Charge.")
Qualified dealers currently are paid a continuing serv-
ice fee not to exceed 0.25% of average net assets
(0.15% in the case of the money market funds) annually
in order to promote selling efforts and to
14
<PAGE>
================================================================================
compensate them for providing certain services. (See
"Fund Organization and Management--Plan of Distribu-
tion.") These services include processing purchase and
redemption transactions, establishing shareholder ac-
counts and providing certain information and assistance
with respect to the fund.
NET ASSET VALUE PURCHASES The stock, stock/bond and
bond funds may sell shares at net asset value to: (1)
current or retired directors, trustees, officers and
advisory board members of the funds managed by Capital
Research and Management Company, employees of Washing-
ton Management Corporation, employees and partners of
The Capital Group Companies, Inc. and its affiliated
companies, certain family members of the above persons,
and trusts or plans primarily for such persons;
(2) current registered representatives, retired regis-
tered representatives with respect to accounts estab-
lished while active, or full-time employees (and their
spouses, parents, and children) of dealers who have
sales agreements with American Funds Distributors (or
who clear transactions through such dealers) and plans
for such persons or the dealer; (3) companies exchang-
ing securities with the fund through a merger, acquisi-
tion or exchange offer; (4) trustees or other fiducia-
ries purchasing shares for certain retirement plans of
organizations with retirement plan assets of $100 mil-
lion or more; (5) insurance company separate accounts;
(6) accounts managed by subsidiaries of The Capital
Group Companies, Inc.; and (7) The Capital Group Compa-
nies, Inc., its affiliated companies and Washington
Management Corporation. Shares are offered at net asset
value to these persons and organizations due to
anticipated economies in sales effort and expense.
REDUCING AGGREGATION Sales charge discounts are available for
YOUR SALES certain aggregated investments. Qualifying investments
CHARGE include those by you, your spouse and your children
under the age of 21, if all parties are purchasing
You and your shares for their own account(s), which may include
immediate family purchases through employee benefit plan(s) such as an
may combine IRA, individual-type 403(b) plan or single-participant
investments to Keogh-type plan or by a business solely controlled by
reduce your costs. these individuals (for example, the individuals own the
entire business) or by a trust (or other fiduciary
arrangement) solely for the benefit of these
individuals. Individual purchases by a trustee(s) or
other fiduciary(ies) may also be aggregated if the
investments are (1) for a single trust estate or
fiduciary account, including an employee benefit plan
other than those described above or (2) made for two or
more employee benefit plans of a single employer or of
affiliated employers as defined in the Investment
Company Act of 1940, again excluding employee benefit
plans described above, or (3) for a diversified common
trust fund or other diversified pooled account not
specifically formed for the purpose of accumulating
fund shares. Purchases made for nominee or street name
accounts (securities held in the name of an investment
dealer or another nominee such as a bank trust
department instead of the customer) may not be
aggregated with those made for other accounts and may
not be aggregated with other nominee or street name
accounts unless otherwise qualified as described above.
15
<PAGE>
================================================================================
CONCURRENT PURCHASES To qualify for a reduced sales
charge, you may combine concurrent purchases of two or
more funds in The American Funds Group, except direct
purchases of the money market funds. (Shares of the
money market funds purchased through an exchange,
reinvestment or cross-reinvestment from a fund having a
sales charge do qualify.) For example, if you
concurrently invest $25,000 in one fund and $25,000 in
another, the sales charge would be reduced to reflect a
$50,000 purchase.
RIGHT OF ACCUMULATION The sales charge for your invest-
ment may also be reduced by taking into account the
current value of your existing holdings in The American
Funds Group. Direct purchases of the money market funds
are excluded. (See account application.)
STATEMENT OF INTENTION You may reduce sales charges on
all investments by meeting the terms of a statement of
intention, a non-binding commitment to invest a certain
amount in fund shares subject to a commission within a
13-month period. Five percent of the statement amount
will be held in escrow to cover additional sales
charges which may be due if your total investments over
the statement period are insufficient to qualify for a
sales charge reduction. (See account application and
the statement of additional information under "Purchase
of Shares--Statement of Intention.")
YOU MUST LET YOUR INVESTMENT DEALER OR AMERICAN FUNDS
SERVICE COMPANY KNOW IF YOU QUALIFY FOR A REDUCTION IN
YOUR SALES CHARGE USING ONE OR ANY COMBINATION OF THE
METHODS DESCRIBED ABOVE.
SHAREHOLDER AUTOMATIC INVESTMENT PLAN You may make regular monthly
SERVICES or quarterly investments through automatic charges to
your bank account. Once a plan is established, your ac-
The fund offers count will normally be charged by the 10th day of the
you a valuable month during which an investment is made (or by the
array of services 15th day of the month in the case of any retirement
designed to plan for which Capital Guardian Trust Company--another
increase the affiliate of The Capital Group Companies, Inc.--acts as
convenience and trustee or custodian).
flexibility of
your investment-- AUTOMATIC REINVESTMENT Dividends and capital gain dis-
services you can tributions are reinvested in additional shares at no
use to alter your sales charge unless you indicate otherwise on the
investment program account application. You also may elect to have divi-
as your needs and dends and/or capital gain distributions paid in cash by
circumstances informing the fund, American Funds Service Company or
change. your investment dealer.
CROSS-REINVESTMENT You may cross-reinvest dividends or
dividends and capital gain distributions paid by one
fund into another fund in The American Funds Group,
subject to conditions outlined in the statement of ad-
ditional information. Generally, to use this service
the value of your account in the paying fund must equal
at least $5,000.
EXCHANGE PRIVILEGE You may exchange shares into other
funds in The American Funds Group. Exchange purchases
are subject to the minimum investment requirements of
the fund purchased and no sales
16
<PAGE>
================================================================================
charge generally applies. However, exchanges of shares
from the money market funds are subject to applicable
sales charges on the fund being purchased, unless the
money market fund shares were acquired by an exchange
from a fund having a sales charge, or by reinvestment
or cross-reinvestment of dividends or capital gain dis-
tributions.
You may exchange shares by writing to American Funds
Service Company (see "Redeeming Shares"), or by con-
tacting your investment dealer, by using American
FundsLine(R) (see "Shareholder Services--American
FundsLine(R)" below), or by telephoning 800/421-0180
toll-free, faxing (see "Transfer Agent" above for the
appropriate fax numbers) or telegraphing American Funds
Service Company. (See "Telephone Redemptions and Ex-
changes" below.) Shares held in corporate-type retire-
ment plans for which Capital Guardian Trust Company
serves as trustee may not be exchanged by telephone,
fax or telegraph. Exchange redemptions and purchases
are processed simultaneously at the share prices next
determined after the exchange order is received. (See
"Purchasing Shares--Share Price.") THESE TRANSACTIONS
HAVE THE SAME TAX CONSEQUENCES AS ORDINARY SALES AND
PURCHASES.
AUTOMATIC EXCHANGES You may automatically exchange
shares (in amounts of $50 or more) among any of the
funds in The American Funds Group on any day (or pre-
ceding business day if the day falls on a non-business
day) of each month you designate. You must either meet
the minimum initial investment requirement for the re-
ceiving fund OR the originating fund's balance must be
at least $5,000 and the receiving fund's minimum must
be met within one year.
AUTOMATIC WITHDRAWALS You may make automatic
withdrawals of $50 or more as follows: five or more
times per year if you have an account of $10,000 or
more, or four or fewer times per year if you have an
account of $5,000 or more. Withdrawals are made on or
about the 15th day of each month you designate, and
checks will be sent within seven days. (See "Other
Important Things to Remember.") Additional investments
in a withdrawal account must not be less than one
year's scheduled withdrawals or $1,200, whichever is
greater. However, additional investments in a
withdrawal account may be inadvisable due to sales
charges and tax liabilities.
THESE SERVICES ARE AVAILABLE ONLY IN STATES WHERE THE
FUND TO BE PURCHASED MAY BE LEGALLY OFFERED AND MAY BE
TERMINATED OR MODIFIED AT ANY TIME UPON 60 DAYS'
WRITTEN NOTICE.
ACCOUNT STATEMENTS Your account is opened in accordance
with your registration instructions. Transactions in
the account, such as additional investments and
dividend reinvestments, will be reflected on regular
confirmation statements from American Funds Service
Company.
17
<PAGE>
================================================================================
AMERICAN FUNDSLINE(R) You may check your share balance,
the price of your shares, or your most recent account
transaction, redeem shares (up to $10,000 per fund, per
account each day), or exchange shares around the clock
with American FundsLine(R). To use this service, call
800/325-3590 from a TouchTone(TM) telephone.
Redemptions and exchanges through American FundsLine(R)
are subject to the conditions noted above and in
"Redeeming Shares--Telephone Redemptions and Exchanges"
below. You will need your fund number (see the list of
funds in The American Funds Group under "Purchasing
Shares--Investment Minimums and Fund Numbers"),
personal identification number (the last four digits of
your Social Security number or other tax identification
number associated with your account) and account
number.
---------------------------------------------------------
REDEEMING SHARES By writing to Send a letter of instruction
American specifying the name of the fund, the
You may take money Funds Service number of shares or dollar amount to
out of your Company (at be sold, your name and account
account whenever the number. You should also enclose any
you please. appropriate share certificates you wish to
address redeem. For redemptions over $50,000
indicated and for certain redemptions of
under "Fund $50,000 or less (see below), your
Organization signature must be guaranteed by a
and bank, savings association, credit
Management-- union, or member firm of a domestic
Transfer stock exchange or the National
Agent") Association of Securities Dealers,
Inc., that is an eligible guarantor
institution. You should verify with
the institution that it is an
eligible guarantor prior to signing.
Additional documentation may be
required for redemption of shares
held in corporate, partnership or
fiduciary accounts. Notarization by a
Notary Public is not an acceptable
signature guarantee.
---------------------------------------------------------
By contacting If you redeem shares through your
your investment dealer, you may be charged
investment for this service. SHARES HELD FOR YOU
dealer IN YOUR INVESTMENT DEALER'S STREET
NAME MUST BE REDEEMED THROUGH THE
DEALER.
---------------------------------------------------------
You may have You may use this option, provided the
a redemption account is registered in the name of
check sent to an individual(s), a UGMA/UTMA
you by using custodian, or a non-retirement plan
American trust. These redemptions may not
FundsLine(R) exceed $10,000 per day, per fund
or by account and the check must be made
telephoning, payable to the shareholder(s) of
faxing, or record and be sent to the address of
telegraphing record provided the address has been
American used with the account for at least 10
Funds Service days. See "Transfer Agent" and
Company "Exchange Privilege" above for the
(subject to appropriate telephone or fax number.
the
conditions
noted in this
section and
in "Telephone
Redemptions
and
Exchanges"
below)
---------------------------------------------------------
In the case Upon request (use the account
of the money application for the money market
market funds, funds) you may establish telephone
you may have redemption privileges (which will
redemptions enable you to have a redemption sent
wired to your to your bank account) and/or check
bank by writing privileges. If you request
telephoning check writing privileges, you will be
American provided with checks that you may use
Funds Service to draw against your account. These
Company checks may be made payable to anyone
($1,000 or you designate and must be signed by
more) or by the authorized number of registered
writing a shareholders exactly as indicated on
check ($250 your checking account signature card.
or more)
---------------------------------------------------------
A SIGNATURE GUARANTEE IS NOT CURRENTLY REQUIRED FOR ANY
REDEMPTION OF $50,000 OR LESS PROVIDED THE REDEMPTION
CHECK IS MADE PAYABLE TO THE REGISTERED SHAREHOLDER(S)
AND IS MAILED TO THE ADDRESS OF RECORD, PROVIDED THE
ADDRESS HAS BEEN USED WITH THE ACCOUNT FOR AT LEAST 10
DAYS.
18
<PAGE>
================================================================================
THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND
ALL REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
TELEPHONE REDEMPTIONS AND EXCHANGES By using the
telephone (including American FundsLine(R)), fax or
telegraph redemption and/or exchange options, you agree
to hold the fund, American Funds Service Company, any
of its affiliates or mutual funds managed by such
affiliates, and each of their respective directors,
trustees, officers, employees and agents harmless from
any losses, expenses, costs or liability (including
attorney fees) which may be incurred in connection with
the exercise of these privileges. Generally, all
shareholders are automatically eligible to use these
options. However, you may elect to opt out of these
options by writing American Funds Service Company (you
may reinstate them at any time also by writing American
Funds Service Company). If American Funds Service
Company does not employ reasonable procedures to
confirm that the instructions received from any person
with appropriate account information are genuine, the
fund may be liable for losses due to unauthorized or
fraudulent instructions. In the event that shareholders
are unable to reach the fund by telephone because of
technical difficulties, market conditions, or a natural
disaster, redemption and exchange requests may be made
in writing only.
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions
within the first year on investments of $1 million or
more and on any investment made with no initial sales
charge by any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees. The charge is 1% of the
lesser of the value of the shares redeemed (exclusive
of reinvested dividends and capital gain distributions)
or the total cost of such shares. Shares held for the
longest period are assumed to be redeemed first for
purposes of calculating this charge. The charge is
waived for exchanges (except if shares acquired by
exchange were then redeemed within 12 months of the
initial purchase); for distributions from qualified
retirement plans and other employee benefit plans; for
redemptions resulting from participant-directed
switches among investment options within a participant-
directed employer-sponsored retirement plan; for
distributions from 403(b) plans or IRAs due to death,
disability or attainment of age 59 1/2; for tax-free
returns of excess contributions to IRAs; for
redemptions through certain automatic withdrawals not
exceeding 10% of the amount that would otherwise be
subject to the charge; and for redemptions in
connection with loans made by qualified retirement
plans.
REINSTATEMENT PRIVILEGE You may reinvest proceeds from
a redemption or a dividend or capital gain distribution
without sales charge (any contingent deferred sales
charge paid will be credited to your
19
<PAGE>
================================================================================
account) in any fund in The American Funds Group. Send
a written request and a check to American Funds Service
Company within 90 days after the date of the redemption
or distribution. Reinvestment will be at the next
calculated net asset value after receipt. The tax
status of a gain realized on a redemption will not be
affected by exercise of the reinstatement privilege,
but a loss may be nullified if you reinvest in the same
fund within 30 days. If you redeem your shares within
90 days after purchase and the sales charge on the
purchase of other shares is waived under the
reinstatement privilege, the sales charge you
previously paid for the shares may not be taken into
account when you calculate your gain or loss on that
redemption.
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because each stock,
stock/bond and bond fund's net asset value fluctuates,
reflecting the market value of the fund's portfolio,
the amount a shareholder receives for shares redeemed
may be more or less than the amount paid for them.
Redemption proceeds will not be mailed until sufficient
time has passed to provide reasonable assurance that
checks or drafts (including certified or cashier's
checks) for shares purchased have cleared (which may
take up to 15 calendar days from the purchase date).
Except for delays relating to clearance of checks for
share purchases or in extraordinary circumstances (and
as permissible under the Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
A fund may, with 60 days' written notice, close your
account if, due to a redemption, the account has a
value of less than the minimum required initial
investment. (For example, a fund may close an account
if a redemption is made shortly after a minimum initial
investment is made.)
RETIREMENT You may invest in the funds through various retirement
PLANS plans including the following plans for which Capital
Guardian Trust Company acts as trustee or custodian:
IRAs, Simplified Employee Pension plans, 403(b) plans
and Keogh- and corporate-type business retirement
plans. For further information about any of the plans,
agreements, applications and annual fees, contact
American Funds Distributors or your investment dealer.
To determine which retirement plan is appropriate for
you, please consult your tax adviser. TAX-EXEMPT FUNDS
SHOULD NOT SERVE AS INVESTMENTS FOR RETIREMENT PLANS.
FOR MORE INFORMATION, PLEASE REFER TO THE ACCOUNT
APPLICATION OR THE STATEMENT OF ADDITIONAL INFORMATION.
IF YOU HAVE ANY QUESTIONS ABOUT ANY OF THE SHAREHOLDER
SERVICES DESCRIBED HEREIN OR YOUR ACCOUNT, PLEASE
CONTACT YOUR INVESTMENT DEALER OR AMERICAN FUNDS
SERVICE COMPANY.
[RECYCLE LOGO] This prospectus has been printed on
recycled paper that meets the
guidelines of the United States
Environmental Protection Agency
20
<PAGE>
Prospectus
for Eligible Retirement Plans
THE GROWTH FUND OF AMERICA
AN OPPORTUNITY FOR GROWTH OF CAPITAL THROUGH
A DIVERSIFIED PORTFOLIO OF COMMON STOCKS
[LOGO OF THE AMERICAN FUNDS GROUP(R)]
November 1, 1995
THE GROWTH FUND OF AMERICA, INC.
Four Embarcadero Center
Suite 1800
San Francisco, CA 94111
The investment objective of the fund is growth of capital. The realization of
current income will not be a consideration. The fund strives to accomplish
this objective by investing primarily in common stocks.
THIS PROSPECTUS RELATES ONLY TO SHARES OF THE FUND OFFERED WITHOUT A SALES
CHARGE TO ELIGIBLE RETIREMENT PLANS. FOR A PROSPECTUS REGARDING SHARES OF THE
FUND TO BE ACQUIRED OTHERWISE, CONTACT THE SECRETARY OF THE FUND AT THE
ADDRESS INDICATED ABOVE.
This prospectus presents information you should know before investing in the
fund. It should be retained for future reference.
You may obtain the statement of additional information for the fund dated
November 1, 1995, which contains the fund's financial statements, without
charge by writing to the Secretary of the fund at the above address or
telephoning 800/421-0180. These requests will be honored within three business
days of receipt.
SHARES OF THE FUND 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. THE
PURCHASE OF FUND SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS
OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
RP 05-010-1195
<PAGE>
================================================================================
SUMMARY OF EXPENSES
Average annual expenses
paid over a 10-year
period would be
approximately $9 per
year, assuming a $1,000
investment and a 5%
annual return.
TABLE OF CONTENTS
<TABLE>
<S> <C>
Summary of Expenses................................ 2
Financial Highlights............................... 3
Investment Objective and Policies.................. 3
Certain Securities and Investment Techniques....... 4
Investment Results................................. 6
Dividends, Distributions and Taxes................. 7
Fund Organization and Management................... 7
Purchasing Shares.................................. 9
Shareholder Services............................... 11
Redeeming Shares................................... 11
</TABLE>
This table is designed to help you understand costs of investing in the fund.
These are historical expenses; your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
Certain retirement plans may purchase shares of the fund with no sales
charge./1/ The fund also has no sales charge on reinvested dividends, deferred
sales charge, redemption fees or exchange fees.
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
<TABLE>
<S> <C>
Management fees....................................................... 0.38%
12b-1 expenses........................................................ 0.24%/2/
Other expenses (including audit, legal, shareholder services, transfer
agent and custodian expenses)........................................ 0.13%
Total fund operating expenses......................................... 0.75%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following cumulative ex-
penses on a $1,000 investment, assuming a 5%
annual return./3/ $8 $24 $42 $93
</TABLE>
/1/ Retirement plans of organizations with $100 million or more in collective
retirement plan assets may purchase shares of the fund with no sales charge.
In addition, any employer-sponsored 403(b) plan or defined contribution plan
qualified under Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees or any other plan that
invests at least $1 million in shares of the fund (or in combination with
shares of other funds in The American Funds Group other than the money
market funds) may purchase shares at net asset value; however, a contingent
deferred sales charge of 1% applies on certain redemptions within 12 months
following such purchases. (See "Redeeming Shares--Contingent Deferred Sales
Charge.")
/2/ These expenses may not exceed 0.25% of the fund's average net assets
annually. (See "Fund Organization and Management--Plan of Distribution.")
Due to these distribution expenses, long-term shareholders may pay more than
the economic equivalent of the maximum front-end sales charge permitted by
the National Association of Securities Dealers.
/3/ Use of this assumed 5% return is required by the Securities and Exchange
Commission; it is not an illustration of past or future investment results.
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES; ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
2
<PAGE>
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FINANCIAL The following information for the ten years ended
HIGHLIGHTS August 31, 1995 has been derived from financial
(For a share statements which have been audited by Deloitte & Touche
outstanding LLP, independent accountants. This information should
throughout the be read in conjunction with the financial statements
fiscal year) and related notes, which are included in the statement
of additional information.
<TABLE>
<CAPTION>
YEAR ENDED AUGUST 31
--------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Year........... $27.62 $27.15 $22.04 $22.42 $18.43 $23.06 $17.42 $21.21 $17.15 $14.49
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income... 0.25 0.13 0.13 0.23 0.43 0.56 0.53 0.27 0.27 0.29
Net realized and
unrealized gain (loss)
on investments......... 6.43 1.43 5.26 0.81 4.86 (2.59) 6.01 (2.67) 4.86 3.46
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
Total income from in-
vestment operations.. 6.68 1.56 5.39 1.04 5.29 (2.03) 6.54 (2.40) 5.13 3.75
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
LESS DISTRIBUTIONS:
Distributions from net
investment income...... (0.17) (0.12) (0.19) (0.35) (0.48) (0.61) (0.31) (0.29) (0.28) (0.22)
Distributions from net
realized gains......... (1.04) (0.97) (0.09) (1.07) (0.82) (1.99) (0.59) (1.10) (0.79) (0.87)
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
Total distributions... (1.21) (1.09) (0.28) (1.42) (1.30) (2.60) (0.90) (1.39) (1.07) (1.09)
------ ------ ------ ------ ------ ------ ------ ------- ------ ------
Net Asset Value, End of
Year................... $33.09 $27.62 $27.15 $22.04 $22.42 $18.43 $23.06 $17.42 $21.21 $17.15
====== ====== ====== ====== ====== ====== ====== ======= ====== ======
Total Return/1/......... 25.56% 5.98% 24.64% 4.91% 30.55% (9.76)% 39.35% (10.73)% 32.27% 28.64%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets, end of year
(in millions)......... $7,525 $5,427 $5,018 $3,700 $2,903 $1,912 $1,686 $ 1,038 $1,237 $ 822
Ratio of expenses to
average net assets.... .75% .78% .77% .79% .83% .79% .78% .71% .66% .66%
Ratio of net income to
average net assets.... .90% .49% .56% 1.11% 2.13% 2.67% 2.82% 1.56% 1.50% 1.84%
Portfolio turnover
rate.................. 26.90% 24.77% 25.23% 10.64% 18.92% 17.69% 30.28% 18.33% 19.61% 24.35%
</TABLE>
--------
/1/ Calculated with no sales charge.
INVESTMENT The fund's investment objective is growth of capital.
OBJECTIVE The realization of current income will not be a
AND POLICIES consideration. The fund seeks to achieve its objective
by investing in a diversified portfolio consisting
The fund aims to primarily of common stocks. However, assets may also be
provide you with held in securities convertible into common stocks, cash
growth of capital. or cash equivalents, straight debt securities
(including U.S. Government securities), or
nonconvertible preferred stocks. (See the statement of
additional information for a description of cash
equivalents.) The fund will maintain at least 65% of
the value of its total assets in growth-type securities
under normal market conditions.
Up to 10% of the fund's assets may be invested in
"high-yield, high-risk" straight debt securities
(commonly referred to as "junk bonds") which are rated
BB or below by Standard & Poor's Corporation and Ba or
below by Moody's Investors Service, Inc. or in unrated
securities that are determined to be of equivalent
quality, provided the fund's investment adviser,
Capital Research and Management Company, determines
that these securities have characteristics similar to
the equity securities eligible for purchase by the
fund. "High-yield, high-risk" securities carry a higher
degree of investment risk than higher rated bonds and
are considered speculative.
3
<PAGE>
================================================================================
The fund may invest up to 10% in the securities of
issuers domiciled outside the U.S. and may purchase or
sell various currencies on a spot basis in connection
with such investments.
The fund will attempt to take prompt advantage of
market conditions and as a result may at times have a
high rate of portfolio turnover relative to many other
mutual funds. The fund may dispose of any security at
any time, and it is the fund's intention to take either
short- or long-term profits or losses consistent with
its objective and sound investment practice, and when
such action would not impair the fund's tax status.
The growth-oriented, equity-type securities generally
purchased by the fund may involve greater risk than is
customarily associated with investing in stocks of
larger, more established companies and may be subject
to greater price swings.
The fund's investment restrictions (which are described
in the statement of additional information) and
objective cannot be changed without shareholder
approval. All other investment practices may be changed
by the fund's board.
Achievement of the fund's investment objective cannot,
of course, be assured due to the risk of capital loss
from fluctuating prices inherent in any investment in
securities.
CERTAIN RISKS OF INVESTING Because the fund invests in common
SECURITIES AND stocks or securities convertible into common stocks,
INVESTMENT the fund is subject to stock market risks. For example,
TECHNIQUES the fund is subject to the possibility that stock
prices in general will decline over short or even
Investing in extended periods.
stocks and bonds
involves certain The fund may also invest in high-yield, high-risk
risks. securities provided that Capital Research and
Management Company determines that these securities
have characteristics similar to the equity securities
eligible for purchase by the fund. The values of these
securities may be subject to fluctuations that tend to
reflect short-term corporate and market developments
and investor perceptions of the issuers. It may be more
difficult to dispose of, or determine the value of
these high-yield, high-risk securities. See the
statement of additional information for a description
of the ratings and for more information about the risks
of high-yield, high-risk securities. High-yield, high-
risk securities rated CC or Ca generally are described
by the rating agencies as "speculative in a high
degree; often in default or [having] other marked
shortcomings."
RISKS OF INVESTING IN VARIOUS COUNTRIES The fund may
invest in the securities of non-U.S. companies. These
companies may not be subject to uniform accounting,
auditing and financial reporting standards and
practices or regulatory requirements comparable to
those applicable
4
<PAGE>
================================================================================
to U.S. companies. There may also be less public
information available about non-U.S. companies.
Additionally, specific local political and economic
factors must be evaluated in making these investments
including trade balances and imbalances, and related
economic policies; expropriation or confiscatory
taxation; limitations on the removal of funds or other
assets; political or social instability; the diverse
structure and liquidity of the various securities
markets; and nationalization policies of governments
around the world. However, investing outside the U.S.
can also reduce certain of these risks due to greater
diversification opportunities.
PRIVATE PLACEMENTS Private placements may be either
purchased from another institutional investor that
originally acquired the securities in a private
placement or directly from the issuers of the
securities. Generally, securities acquired in private
placements are subject to contractual restrictions on
resale and may not be resold except pursuant to a
registration statement under the Securities Act of 1933
or in reliance upon an exemption from the registration
requirements under the Act, for example, private
placements sold pursuant to Rule 144A. Accordingly, any
such obligation will be deemed illiquid unless it has
been specifically determined to be liquid under
procedures adopted by the fund's board of directors.
In determining whether these securities are liquid,
factors such as the frequency and volume of trading and
the commitment of dealers to make markets will be
considered. Additionally, the liquidity of any
particular security will depend on such factors as the
availability of "qualified" institutional investors and
the extent of investor interest in the security, which
can change from time to time.
MULTIPLE PORTFOLIO COUNSELOR SYSTEM The basic
investment philosophy of Capital Research and
Management Company is to seek fundamental values at
reasonable prices, using a system of multiple portfolio
counselors in managing mutual fund assets. Under this
system the portfolio of the fund is divided into
segments which are managed by individual counselors.
Each counselor decides how their segment will be
invested (within the limits provided by the fund's
objective and policies and by Capital Research and
Management Company's investment committee). In
addition, Capital Research and Management Company's
research professionals make investment decisions with
respect to a portion of the fund's portfolio. The
primary individual portfolio counselors for the fund
are listed on the next page.
5
<PAGE>
================================================================================
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
YEARS OF EXPERIENCE AS YEARS OF EXPERIENCE AS
PORTFOLIO COUNSELOR INVESTMENT
(AND RESEARCH PROFESSIONAL
PORTFOLIO COUNSELORS PROFESSIONAL, IF (APPROXIMATE)
FOR APPLICABLE) FOR THE
THE GROWTH FUND PRIMARY TITLE(S) GROWTH FUND OF WITH CAPITAL
OF AMERICA, INC. AMERICA, INC. RESEARCH AND
(APPROXIMATE) MANAGEMENT
COMPANY OR
ITS TOTAL
AFFILIATES YEARS
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gordon Crawford Vice President of the 4 years (in addition 24 years 24 years
fund. Senior Vice Presi- to 16 years as a re-
dent and Director, search professional
Capital Research Company* prior to becoming a
portfolio counselor
for the fund)
- ------------------------------------------------------------------------------------------------
James E. Drasdo Senior Vice President of 10 years (in addition 18 years 24 years
the fund. to 7 years as a
Senior Vice President and research professional
Director, prior to becoming a
Capital Research and Man- portfolio counselor
agement Company for the fund)
- ------------------------------------------------------------------------------------------------
Claudia P. Vice President of the 3 years (in addition 18 years 20 years
Huntington fund. to 10 years as a
Senior Vice President, research professional
Capital Research Company* prior to becoming a
portfolio counselor
for the fund)
- ------------------------------------------------------------------------------------------------
William C. Newton Senior Partner, The Capi- 22 years** 36 years 42 years
tal Group
Partners L.P.*
- ------------------------------------------------------------------------------------------------
James F. President of the fund. 7 years (in addition 25 years 25 years
Rothenberg President and Director, to 3 years as a
Capital Research and research professional
Management Company prior to becoming a
portfolio counselor
for the fund)
- ------------------------------------------------------------------------------------------------
R. Michael Chairman, Capital Re- 10 years 31 years 31 years
Shanahan search and
Management Company
- ------------------------------------------------------------------------------------------------
* Company affiliated with Capital Research and Management Company.
** Since Capital Research and Management Company took over management of
the fund in 1973.
- ------------------------------------------------------------------------------------------------
</TABLE>
INVESTMENT The fund may from time to time compare its investment
RESULTS results to various unmanaged indices or other mutual
funds in reports to shareholders, sales literature and
The fund has advertisements. The results may be calculated on a
averaged a total yield, total return and/or distribution rate basis for
return (at no various periods, with or without sales charges. Results
sales charge) of + calculated without a sales charge will be higher. Total
16.82% a year returns assume the reinvestment of all dividends and
under Capital capital gain distributions. The fund's distribution
Research and rate is calculated by dividing the dividends paid by
Management the fund over the last 12 months by the sum of the
Company's month-end price and the capital gains paid over the
management. last 12 months. The SEC yield reflects income earned by
the fund, while the distribution rate reflects
(December 1, 1973 dividends paid by the fund. Among the elements used to
through September calculate the SEC yield are the dividend and interest
30, 1995) income earned and expenses paid by the fund, whereas
the income paid to shareholders is used to calculate
the distribution rate.
As of September 30, 1995, the fund's total return over
the past 12 months and average annual total returns
over the past five- and ten-year periods were +29.32%,
+19.23% and +16.52%, respectively. These
6
<PAGE>
================================================================================
results were calculated in accordance with Securities
and Exchange Commission requirements at no sales
charge. Of course, past results are not an indication
of future results. Further information regarding the
fund's investment results is contained in the fund's
annual report which may be obtained without charge by
writing to the Secretary of the fund at the address
indicated on the cover of this prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS in December. Capital gains, if any, are also usually
AND TAXES distributed in December. When a dividend or capital
gain is distributed, the net asset value per share is
Income reduced by the amount of the payment.
distributions are
usually made in The terms of your plan will govern how your plan may
December. receive distributions from the fund. Generally,
periodic distributions from the fund to your plan are
reinvested in additional fund shares, although your
plan may permit fund distributions from net investment
income to be received by you in cash while reinvesting
capital gain distributions in additional shares or all
fund distributions to be received in cash. Unless you
select another option, all distributions will be
reinvested in additional fund shares.
FEDERAL TAXES The fund intends to operate as a
"regulated investment company" under the Internal
Revenue Code. In any fiscal year in which the fund so
qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved
of federal income tax. The tax treatment of redemptions
from a retirement plan may differ from redemptions from
an ordinary shareholder account.
PLEASE SEE THE STATEMENT OF ADDITIONAL INFORMATION AND
YOUR TAX ADVISER FOR FURTHER INFORMATION.
FUND FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
ORGANIZATION end, diversified management investment company, was
AND organized as a Delaware corporation in 1958 and
MANAGEMENT reorganized as a Maryland corporation in 1983. The
fund's board supervises fund operations and performs
The fund is a duties required by applicable state and federal law.
member of The Members of the board who are not employed by Capital
American Funds Research and Management Company or its affiliates are
Group, which is paid certain fees for services rendered to the fund as
managed by one of described in the statement of additional information.
the largest and They may elect to defer all or a portion of these fees
most experienced through a deferred compensation plan in effect for the
investment fund. Shareholders have one vote per share owned and,
advisers. at the request of the holders of at least 10% of the
shares, the fund will hold a meeting at which any
member of the board could be removed by a majority
vote. There will not usually be a shareholder meeting
in any year, except, for example, when the election of
the board is required to be acted upon by shareholders
under the Investment Company Act of 1940.
7
<PAGE>
================================================================================
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071, and at 135 South State College
Boulevard, Brea, CA 92621. Capital Research and
Management Company manages the investment portfolio and
business affairs of the fund and receives a fee at the
annual rates of 0.50% on the first $1 billion of the
fund's net assets, 0.40% on net assets in excess of $1
billion but not exceeding $2 billion, 0.37% on net
assets in excess of $2 billion but not exceeding $3
billion, 0.35% on net assets in excess of $3 billion
but not exceeding $5 billion, 0.335% on net assets in
excess of $5 billion but not exceeding $8 billion, and
0.325% on net assets in excess of $8 billion.
Capital Research and Management Company is a wholly
owned subsidiary of The Capital Group Companies, Inc.
(formerly "The Capital Group, Inc."), which is located
at 333 South Hope Street, Los Angeles, CA 90071. The
research activities of Capital Research and Management
Company are conducted by affiliated companies which
have offices in Los Angeles, San Francisco, New York,
Washington, D.C., London, Geneva, Singapore, Hong Kong
and Tokyo.
Capital Research and Management Company and its
affiliated companies have adopted a personal investing
policy that is consistent with the recommendations
contained in the report dated May 9, 1994 issued by the
Investment Company Institute's Advisory Group on
Personal Investing. (See the statement of additional
information.)
PORTFOLIO TRANSACTIONS Orders for the fund's portfolio
securities transactions are placed by Capital Research
and Management Company, which strives to obtain the
best available prices, taking into account the costs
and quality of executions. In the over-the-counter
market, purchases and sales are transacted directly
with principal market-makers except in those
circumstances where it appears better prices and
executions are available elsewhere.
Subject to the above policy, when two or more brokers
are in a position to offer comparable prices and
executions, preference may be given to brokers that
have sold shares of the fund or have provided
investment research, statistical, and other related
services for the benefit of the fund and/or of other
funds served by Capital Research and Management
Company.
8
<PAGE>
================================================================================
PRINCIPAL UNDERWRITER American Funds Distributors,
Inc., a wholly owned subsidiary of Capital Research and
Management Company, is the principal underwriter of the
fund's shares. American Funds Distributors, Inc. is
located at 333 South Hope Street, Los Angeles, CA
90071, 135 South State College Boulevard, Brea, CA
92621, 8000 IH-10 West, San Antonio, TX 78230, 8332
Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513. Telephone
conversations with American Funds Distributors may be
recorded or monitored for verification, recordkeeping
and quality assurance purposes.
PLAN OF DISTRIBUTION The fund has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
the categories of expenses are approved in advance by
the board and the expenses paid under the plan were
incurred within the last 12 months and accrued while
the plan was in effect. Expenditures by the fund under
the plan may not exceed 0.25% of its average net assets
annually (all of which may be for service fees).
TRANSFER AGENT American Funds Service Company, 800/421-
0180, a wholly owned subsidiary of Capital Research and
Management Company, is the transfer agent and performs
shareholder service functions. American Funds Service
Company is located at 333 South Hope Street, Los
Angeles, CA 90071, 135 South State College Boulevard,
Brea, CA 92621, 8000 IH-10 West, San Antonio, TX 78230,
8332 Woodfield Crossing Boulevard, Indianapolis, IN
46240 and 5300 Robin Hood Road, Norfolk, VA 23513. It
was paid a fee of $5,731,000 for the fiscal year ended
August 31, 1995. Telephone conversations with American
Funds Service Company may be recorded or monitored for
verification, recordkeeping and quality assurance
purposes.
PURCHASING SHARES ALL ORDERS TO PURCHASE SHARES MUST BE MADE THROUGH YOUR
RETIREMENT PLAN. FOR MORE INFORMATION ABOUT HOW TO
PURCHASE SHARES OF THE FUND THROUGH YOUR PLAN OR
LIMITATIONS ON THE AMOUNT THAT MAY BE PURCHASED, PLEASE
CONSULT WITH YOUR EMPLOYER. Shares are sold to eligible
retirement plans at the net asset value per share next
determined after receipt of an order by the fund or
American Funds Service Company. Orders must be received
before the close of regular trading on the New York
Stock Exchange in order to receive that day's net asset
value. Plans of organizations with collective
retirement plan assets of $100 million or more may
purchase shares at net asset value. In addition, any
employer-sponsored 403(b) plan or defined contribution
plan qualified under Section 401(a) of the Internal
Revenue Code including a "401(k)" plan with 200 or more
eligible employees or any other plan that invests at
least $1 million in shares of the fund (or in
combination with shares of other funds in The American
Funds Group
9
<PAGE>
================================================================================
other than money market funds) may purchase shares at
net asset value; however, a contingent deferred sales
charge of 1% is imposed on certain redemptions within
one year of such purchase. (See "Redeeming Shares--
Contingent Deferred Sales Charge.") Plans may also
qualify to purchase shares at net asset value by
completing a statement of intention to purchase $1
million in fund shares subject to commission over a
maximum of 13 consecutive months. Certain redemptions
of such shares may also be subject to a contingent
deferred sales charge as described above. (See the
statement of additional information.)
The minimum initial investment is $250, except that the
money market funds have a minimum of $1,000 for
individual retirement accounts (IRAs). Minimums are
reduced to $50 for purchases through "Automatic
Investment Plans" (except for the money market funds)
or to $25 for purchases by retirement plans through
payroll deductions and may be reduced or waived for
shareholders of other funds in The American Funds
Group.
American Funds Distributors, at its expense (from a
designated percentage of its income), will, during
calendar year 1996, provide additional promotional
incentives to dealers. Currently, these incentives are
limited to the top hundred dealers who have sold shares
of the fund or other funds in The American Funds Group.
The incentive payments will be based on a pro rata
share of a qualifying dealer's sales. American Funds
Distributors will, on an annual basis, determine the
advisability of continuing these promotional
incentives.
Qualified dealers currently are paid a continuing
service fee not to exceed 0.25% of average net assets
annually in order to promote selling efforts and to
compensate them for providing certain services. (See
"Fund Organization and Management--Plan of
Distribution.") These services include processing
purchase and redemption transactions, establishing
shareholder accounts and providing certain information
and assistance with respect to the fund.
Shares of the fund are offered to other shareholders
pursuant to another prospectus at public offering
prices that may include an initial sales charge.
SHARE PRICE Shares are offered to eligible retirement
plans at the net asset value after the order is
received by the fund or American Funds Service Company.
In the case of orders sent directly to the fund or
American Funds Service Company, an investment dealer
must be indicated. Dealers are responsible for promptly
transmitting orders. (See the statement of additional
information under "Purchase of Shares--Price of
Shares.")
10
<PAGE>
================================================================================
The fund's net asset value per share is determined as
of the close of trading (currently 4:00 p.m., New York
time) on each day the New York Stock Exchange is open.
The current value of the fund's total assets, less all
liabilities, is divided by the total number of shares
outstanding and the result, rounded to the nearer cent,
is the net asset value per share.
SHAREHOLDER Subject to any restrictions contained in your plan, you
SERVICES can exchange your shares for shares of other funds in
The American Funds Group which are offered through the
plan at net asset value. In addition, again depending
on your plan, you may be able to exchange shares
automatically or cross-reinvest dividends in shares of
other funds. Contact your plan administrator/trustee
regarding how to use these services. Also, see the
fund's statement of additional information for a
description of these and other services that may be
available through your plan. These services are
available only in states where the fund to be purchased
may be legally offered and may be terminated or
modified at any time upon 60 days' written notice.
REDEEMING SHARES Subject to any restrictions imposed by your plan, you
can sell your shares through the plan any day the New
York Stock Exchange is open. For more information about
how to sell shares of the fund through your retirement
plan, including any charges that may be imposed by the
plan, please consult with your employer.
---------------------------------------------------------
By Your plan administrator/trustee must
contacting send a letter of instruction
your plan specifying the name of the fund, the
administrator/ number of shares or dollar amount to
trustee be sold, and, if applicable, your
name and account number. For your
protection, if you redeem more than
$50,000, the signatures of the
registered owners (i.e., trustees or
their legal representatives) must be
guaranteed by a bank, savings
association, credit union, or member
firm of a domestic stock exchange or
the National Association of
Securities Dealers, Inc., that is an
eligible guarantor institution. Your
plan administrator/trustee should
verify with the institution that it
is an eligible guarantor prior to
signing. Additional documentation may
be required to redeem shares from
certain accounts. Notarization by a
Notary Public is not an acceptable
signature guarantee.
---------------------------------------------------------
By Shares may also be redeemed through
contacting an investment dealer; however, you or
an your plan may be charged for this
investment service. SHARES HELD FOR YOU IN AN
dealer INVESTMENT DEALER'S STREET NAME MUST
BE REDEEMED THROUGH THE DEALER.
---------------------------------------------------------
THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND
ALL REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
11
<PAGE>
================================================================================
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions
within the first year on investments of $1 million or
more and on any investment made with no initial sales
charge by any employer-sponsored 403 (b) plan or
defined contribution plan qualified under Section
401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees. The
charge is 1% of the lesser of the value of the shares
redeemed (exclusive of reinvested dividends and capital
gain distributions) or the total cost of such shares.
Shares held for the longest period are assumed to be
redeemed first for purposes of calculating this charge.
The charge is waived for exchanges (except if shares
acquired by exchange were then redeemed within 12
months of the initial purchase); for distributions from
qualified retirement plans and other employee benefit
plans; for redemptions resulting from participant-
directed switches among investment options within a
participant-directed employer-sponsored retirement
plan; and for redemptions in connection with loans made
by qualified retirement plans.
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because the fund's
net asset value fluctuates, reflecting the market value
of the portfolio, the amount you receive for shares
redeemed may be more or less than the amount paid for
them.
Redemption proceeds will not be mailed until sufficient
time has passed to provide reasonable assurance that
checks or drafts (including certified or cashier's
checks) for shares purchased have cleared (which may
take up to 15 calendar days from the purchase date).
Except for delays relating to clearance of checks for
share purchases or in extraordinary circumstances (and
as permissible under the Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
[RECYCLE LOGO] This prospectus has been printed on
recycled paper that meets the
guidelines of the United States
Environmental Protection Agency
---------------------------------------------------------
THIS PROSPECTUS RELATES ONLY TO SHARES OF THE FUND
OFFERED WITHOUT A SALES CHARGE TO ELIGIBLE RETIREMENT
PLANS. FOR A PROSPECTUS REGARDING SHARES OF THE FUND
TO BE ACQUIRED OTHERWISE, CONTACT THE SECRETARY OF
THE FUND AT THE ADDRESS INDICATED ON THE FRONT.
---------------------------------------------------------
12
<PAGE>
THE GROWTH FUND OF AMERICA, INC.
Part B
Statement of Additional Information
NOVEMBER 1, 1995
This document is not a prospectus but should be read in conjunction with the
current Prospectus of The Growth Fund of America, Inc. (the fund or GFA) dated
November 1, 1995. The Prospectus may be obtained from your investment dealer
or financial planner or by writing to the fund at the following address:
THE GROWTH FUND OF AMERICA, INC.
ATTENTION: SECRETARY
FOUR EMBARCADERO CENTER
P.O. BOX 7650
SAN FRANCISCO, CA 94120
TELEPHONE: (415) 421-9360
The fund has two forms of prospectuses. Each reference to the prospectus in
this Statement of Additional Information includes both of the fund's
Prospectuses. Shareholders who purchase shares at net asset value through
eligible retirement plans should note that not all of the services or features
described below may be available to them, and they should contact their
employer for details.
Table of Contents
Item
- -----
DESCRIPTION OF CERTAIN SECURITIES
CERTAIN RISK FACTORS RELATING TO BELOW INVESTMENT GRADE BONDS
FUNDAMENTAL POLICIES AND INVESTMENT RESTRICTIONS
FUND OFFICERS AND DIRECTORS
MANAGEMENT
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES
PURCHASE OF SHARES
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
EXECUTION OF PORTFOLIO TRANSACTIONS
GENERAL INFORMATION
INVESTMENT RESULTS
DESCRIPTION OF BOND RATINGS
FINANCIAL STATEMENTS
DESCRIPTION OF CERTAIN SECURITIES
U.S. GOVERNMENT SECURITIES - Securities guaranteed by the U.S. Government
include: (1) direct obligations of the U.S. Treasury (such as Treasury bills,
notes and bonds) and (2) federal agency obligations guaranteed as to principal
and interest by the U.S. Treasury. For these securities, the payment of
principal and interest is unconditionally guaranteed by the U.S. Government,
and thus they are of the highest possible credit quality. Such securities are
subject to variations in market value due to fluctuations in interest rates,
but, if held to maturity, will be paid in full.
Securities issued by U.S. Government instrumentalities and certain federal
agencies are neither direct obligations of, nor guaranteed by, the Treasury.
However, they generally involve federal sponsorship in one way or another; some
are backed by specific types of collateral; some are supported by the issuer's
right to borrow from the Treasury; some are supported by the discretionary
authority of the Treasury to purchase certain obligations of the issuer; others
are supported only by the credit of the issuing government agency or
instrumentality. These agencies and instrumentalities include, but are not
limited to, Federal Land Banks, Farmers Home Administration, Central Bank for
Cooperatives, and Federal Intermediate Credit Banks.
CASH EQUIVALENTS - These securities include (1) commercial paper (short-term
notes up to 9 months in maturity issued by corporations or governmental
bodies), (2) commercial bank obligations (E.G., certificates of deposit,
bankers' acceptances (time drafts on a commercial bank where the bank accepts
an irrevocable obligation to pay at maturity) and documented discount notes
(corporate promissory discount notes accompanied by a commercial bank guarantee
to pay at maturity)), (3) savings association and savings bank obligations
(E.G., certificates of deposit issued by savings banks or savings
associations), (4) securities of the U.S. Government, its agencies or
instrumentalities that mature, or may be redeemed, in one year or less, and (5)
corporate bonds and notes that mature, or that may be redeemed, in one year or
less.
CURRENCY TRANSACTIONS - The fund has the ability to hold a portion of its
assets in U.S. dollars and other currencies and to enter into certain currency
contracts in connection with investing in non-U.S. dollar denominated
securities. A forward currency contract is an obligation to purchase or sell a
specific currency at a future date, which may be any fixed number of days from
the date of the contract agreed upon by the parties, at a price set at the time
of the contract. For example, the fund might purchase a particular currency or
enter into a foreign exchange contract to preserve the U.S. dollar price of
securities it intends or has contracted to purchase. The fund does not
currently intend to engage in any forward currency transactions other than
purchasing and selling currencies and foreign exchange contracts which will be
used to facilitate settlement of trades.
CERTAIN RISK FACTORS RELATING TO BELOW INVESTMENT GRADE BONDS
Certain risk factors relating to investing in below investment grade
securities ("high-yield, high-risk bonds") are discussed below.
SENSITIVITY TO INTEREST RATE AND ECONOMIC CHANGES - High-yield, high-risk bonds
are very sensitive to adverse economic changes and corporate developments.
During an economic downturn or substantial period of rising interest rates,
highly leveraged issuers may experience financial stress that would adversely
affect their ability to service their principal and interest payment
obligations, to meet projected business goals, and to obtain additional
financing. If the issuer of a bond defaulted on its obligations to pay
interest or principal or entered into bankruptcy proceedings, the fund may
incur losses or expenses in seeking recovery of amounts owed to it. In
addition, periods of economic uncertainty and changes can be expected to result
in increased volatility of market prices of high-yield, high-risk bonds.
PAYMENT EXPECTATIONS - High-yield, high-risk bonds, like other bonds, may
contain redemption or call provisions. If an issuer exercised these provisions
in a declining interest rate market, the fund would have to replace the
security with a lower yielding security, resulting in a decreased return for
investors. Conversely, a high-yield, high-risk bond's value is likely to
decrease in a rising interest rate market, as is generally true with all bonds.
LIQUIDITY AND VALUATION - There may be little trading in the secondary market
for particular bonds, which may affect adversely the fund's ability to value
accurately or dispose of such bonds. Adverse publicity and investor
perceptions, whether or not based on fundamental analysis, may decrease the
values and liquidity of high-yield, high-risk bonds, especially in a thin
market.
SPECIAL RISKS - The market values of fixed-income securities tend to vary
inversely with the level of interest rates--when interest rates rise, their
values will tend to decline; when interest rates decline, their values
generally will rise. The values of high-yield, high-risk securities are
subject to greater fluctuations in value than are higher rated securities
because the values of high-yield, high-risk securities tend to reflect
short-term corporate and market developments and investor perceptions of the
issuer's credit quality to a greater extent. It may be more difficult to
dispose of, or determine the value of, high-yield, high-risk securities.
High-yield, high-risk securities rated CC or Ca generally are described by the
rating agencies as "speculative in a high degree; often in default or [having]
other marked shortcomings."
During the previous fiscal year, the fund held none of its net assets in
fixed-income and convertible investments.
The fund's investment adviser, Capital Research and Management Company,
attempts to reduce the fund's risks through diversification of the portfolio by
credit analysis of each issuer as well as by monitoring broad economic trends
and corporate developments, but there can be no assurance that it will be
successful in doing so.
FUNDAMENTAL POLICIES AND INVESTMENT RESTRICTIONS
The fund has adopted certain fundamental policies and investment restrictions
which cannot be changed without shareholder approval. Approval requires the
affirmative vote of 67% or more of the voting securities present at a meeting
of shareholders, provided more than 50% of such securities are represented at
the meeting, or the vote of more than 50% of the outstanding voting securities,
whichever is less.
The fund may not:
1. Purchase the securities of any issuer, except the U.S. Government or any
subdivision thereof, if upon such purchase more than 5% of the value of its
total assets would consist of securities of such issuer.
2. Purchase the securities of companies in a particular industry (other than
securities issued or guaranteed by the U.S. government or its agencies or
instrumentalities) if thereafter 25% or more of the value of its total assets
would consist of securities issued by companies in that industry.
3. Purchase more than 10% of the voting or non-voting securities of any one
issuer.
4. Invest more than 15% of the value of its assets in securities that are
illiquid.
5. Purchase securities on margin.
6. Purchase any real estate unless necessary for office space for the fund or
for the protection of investments already made.
7. Make loans to anyone (the purchase of a portion of an issue of bonds,
debentures or other securities, whether or not on the original issue of such
securities, is not to be considered the making of a loan).
8. Sell securities or property short or permit any of its officers, directors
or any of its affiliated persons to take short positions on shares of the fund.
9. Purchase the securities of a company which has an officer or director who
is an officer or director of the fund, or an officer or director of its
investment adviser, if, to the knowledge of the fund, one or more of such
persons own beneficially more than 1/2 of 1% of the shares of the company and
in the aggregate more than 5% of the outstanding securities of such company.
10. Borrow more than an amount equal to 5% of the value of its total assets,
determined immediately after the time of the borrowing, and then only from
banks, as a temporary measure for extraordinary or emergency purposes.
11. Invest in the securities of other managed investment companies.
12. Invest in the securities of any issuer for the purpose of exercising
control or management.
13. Deal in commodities or commodity contracts.
14. Act as underwriter of securities issued by other persons.
Although not fundamental policies, the fund has further agreed that it will
not invest any part of its total assets in real estate or interests therein
(excluding readily marketable securities) or invest in oil, gas or other
mineral leases. The fund has also agreed that it will not purchase any
warrants if immediately after and as a result of such purchase more than 5% of
the market value of the total assets of the fund would be invested in such
warrants, with no more than 2% being unlisted on the New York or American Stock
Exchanges.
Notwithstanding Investment Restriction #11, the fund may invest in securities
of other managed investment companies if deemed advisable by its officers in
connection with the administration of a deferred compensation plan adopted by
Directors pursuant to an exemptive order granted by the Securities and Exchange
Commission. Furthermore, Investment Restriction #13 does not prevent the fund
from engaging in transactions involving forward currency contracts.
FUND OFFICERS AND DIRECTORS
DIRECTORS AND DIRECTOR COMPENSATION
<TABLE>
<CAPTION>
NAME, ADDRESS AND AGE POSITION PRINCIPAL OCCUPATION(S) DURING PAST AGGREGATE COMPENSATION TOTAL COMPENSATION FROM
TOTAL NUMBER
WITH 5 YEARS (POSITIONS WITHIN THE (INCLUDING VOLUNTARILY ALL FUNDS MANAGED BY OF FUND
BOARDS
REGISTRANT ORGANIZATIONS LISTED MAY HAVE DEFERRED COMPENSATION/1/) CAPITAL RESEARCH AND ON WHICH
CHANGED DURING THIS PERIOD) FROM THE COMPANY MANAGEMENT COMPANY/2/ FOR THE YEAR
ENDED 8/31/95 DIRECTOR SERVES
DURING FISCAL YEAR ENDED
8/31/95
<S> <C> <C> <C> <C> <C>
Robert A. Fox Director President and Chief Executive Officer, $14,900 $76,900 5
P.O. Box 457 Foster Farms; former President,
1000 Davis Street Revlon International, Chairman and
Livingston, CA 95334 Chief Executive Officer, Clarke
Age: 58 Hooper America (advertising),
President, Continental Can Company,
Inc.
Roberta L. Hazard Director Rear Admiral, United States Navy $15,032 $40,100 3
1419 Audmar Drive (Retired)
McLean, VA 22101
Age: 60
++ Ernest T. Hinshaw, Jr. Director Private investor; former Yachting $14,600 $31,200 2
729 Via Lido Soud Commissioner, Los Angeles Olympic
Newport Beach, CA 92663 Organizing Committee, and Director,
Age: 67 Capital Research and Management
Company (retired 1983)
++ Richard H. M. Holmes Director Retired; former Vice President, $13,050 $55,100 4
580 Laurent Road Capital Research and Management
Hillsborough, CA 94010 Company (retired 1986)
Age: 69
Leonade D. Jones Director Treasurer, The Washington Post $14,132 $50,967 5
1150-15th Street, N.W. Company
Washington, D.C. 20071
Age: 47
John G. McDonald Director The IBJ Professor of Finance, $14,567 $128,400 7
Graduate School of Business Graduate School of Business, Stanford
Stanford University University
Stanford, CA 94305
Age: 58
Theodore D. Nierenberg Director Private investor; former President, $14,432 $38,900 3
15 Middle Patent Road Dansk International Designs, Ltd.
Armonk, NY 10504
Age: 72
+ James W. Ratzlaff Director Senior Partner, The Capital Group None None 8
P.O. Box 7650 Partners L.P.
San Francisco, CA 94120
Age: 59
Henry E. Riggs Director President and Professor of $14,900 $63,700 5
Kingston Hall 201 Engineering, Harvey Mudd College
Harvey Mudd College
Claremont, CA 91711
Age: 60
+ Walter P. Stern Chairman of Chairman, Capital Group None None 8
630 Fifth Avenue the Board International, Inc.; Vice Chairman,
New York, NY 10111 Capital Research International;
Age: 67 Director, The Capital Group
Companies, Inc.; Chairman, Capital
International, Inc.; Director, Temple-
Inland Inc. (forest products)
Patricia K. Woolf Director Private investor; Lecturer, Department $14,000 $63,000 5
506 Quaker Road of Molecular Biology, Princeton
Princeton, NJ 08540 University
Age: 61
</TABLE>
+ "Interested persons" within the meaning of the Investment Company Act of
1940 (the 1940 Act) on the basis of their affiliation with the Investment
Adviser or the parent company of the Investment Adviser, The Capital Group
Companies, Inc.
++ Not considered an "interested person" within the meaning of the 1940 Act;
but he does not participate on the Contracts Committee due to his former
affiliation with the Investment Adviser.
/1/ Amounts may be deferred by eligible directors under a non-qualified
deferred compensation plan adopted by the fund in 1993. Deferred amounts
accumulate at an earnings rate determined by the total return of one or more of
the funds in the American Funds Group as designated by the director.
/2/ Capital Research and Management Company manages The American Funds Group
consisting of 28 funds: AMCAP Fund, American Balanced Fund, Inc., American
High-Income Municipal Bond Fund, Inc., American High-Income Trust, American
Mutual Fund, Inc., The Bond Fund of America, Inc., The Cash Management Trust of
America, Capital Income Builder, Inc., Capital World Growth and Income Fund,
Inc., Capital World Bond Fund, Inc., EuroPacific Growth Fund, Fundamental
Investors, Inc., The Growth Fund of America, Inc., The Income Fund of America.
Inc., Intermediate Bond Fund of America, The Investment Company of America,
Limited Term Tax-Exempt Bond Fund of America, The New Economy Fund, New
Perspective Fund, Inc., SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of
America, Inc., The Tax-Exempt Fund of California, The Tax-Exempt Fund of
Maryland, The Tax-Exempt Fund of Virginia, The Tax-Exempt Money Fund of
America, The U.S. Treasury Money Fund of America, U.S. Government Securities
Fund and Washington Mutual Investors Fund, Inc. Capital Research and
Management Company also manages American Variable Insurance Series and Anchor
Pathway Fund which serve as the underlying investment vehicles for certain
variable insurance contracts.
/3/ Since the plan's adoption, the total amounts of deferred compensation
accrued by the fund (plus earnings thereon) for participating Directors are as
follows: Robert A. Fox ($65,219), Leonade D. Jones ($8,696), John G. McDonald
($23,976) and Henry E. Riggs ($29,859). Amounts deferred and accumulated
earnings thereon are not funded and are general unsecured liabilities of the
fund until paid to the Director.
/4/ James W. Ratzlaff and Walter P. Stern are affiliated with the Investment
Adviser and, accordingly, receive no compensation from the fund.
OFFICERS
(with their principal occupations for the past five years)#
Walter P. Stern, Chairman of the Board.
Fund officers whose other positions are not described above are:
James F. Rothenberg, President /1/; President and Director, Capital Research
and Management Company.
James E. Drasdo, Senior Vice President /1/; Senior Vice President and Director,
Capital
Research and Management Company.
Paul G. Haaga, Jr., Senior Vice President /1/; Senior Vice President and
Director, Capital
Research and Management Company; Director, American Funds Service Company.
Richard M. Beleson, Vice President /3/; Senior Vice President, Capital Research
Company.
Claudia Huntington, Vice President /1/; Senior Vice President, Capital Research
Company.
Steven N. Kearsley, Vice President /2/; Vice President and Treasurer, Capital
Research and Management Company; Director, American Funds Service Company.
Donald D. O'Neal, Vice President /3/, Vice President, Capital Research and
Management Company.
Patrick F. Quan, Secretary /3/; Vice President - Fund Business Management
Group, Capital
Research and Management Company.
Mary C. Cremin, Treasurer /2/; Senior Vice President - Fund Business Management
Group,
Capital Research and Management Company.
R. Marcia Gould, Assistant Treasurer /2/; Vice President - Fund Business
Management Group, Capital
Research and Management Company.
/1/ Address is 333 South Hope Street, Los Angeles, CA 90071.
/2/ Address is 135 South State College Boulevard, Brea, CA 92621.
/3/ Address is P.O. Box 7650, San Francisco, CA 94120.
# The principal occupation shown reflects the principal employment of each
individual during the past five years. Corporate positions may, in some
instances, have changed during this period.
All of the directors and officers are also officers and/or directors and/or
trustees of one or more of the other funds for which Capital Research and
Management Company serves as Investment Adviser. No compensation is paid by
the fund to any officer or director who is a director, officer or employee of
the Investment Adviser or affiliated companies. The fund pays fees of $10,000
per annum to directors who are not affiliated with the Investment Adviser, plus
$700 for each Board of Directors meeting attended, plus $300 for each meeting
attended as a member of a committee of the Board of Directors. The directors
may elect, on a voluntary basis, to defer all or a portion of these fees
through a deferred compensation plan in effect for the fund. The fund also
reimburses certain expenses of the unaffiliated directors. As of August 31,
1995 the officers and directors of the fund and their families, as a group,
owned beneficially or of record less than 1% of the outstanding shares.
MANAGEMENT
INVESTMENT ADVISER - The Investment Adviser, founded in 1931, maintains
research facilities in the U.S. and abroad, with a staff of professionals, many
of whom have a number of years of investment experience. The Investment
Adviser's research professionals travel several million miles a year, making
more than 5,000 research visits in more than 50 countries around the world.
The Investment Adviser believes that it is able to attract and retain quality
personnel.
An affiliate of the Investment Adviser compiles indices for major stock
markets around the world and compiles and edits the Morgan Stanley Capital
International Perspective, providing financial and market information about
more than 2,400 companies around the world.
The Investment Adviser is responsible for more than $100 billion of stocks,
bonds and money market instruments and serves over five million investors of
all types. These investors include privately owned businesses and large
corporations as well as schools, colleges, foundations and other non-profit and
tax-exempt organizations.
INVESTMENT ADVISORY AND SERVICE AGREEMENT - The Investment Advisory and
Service Agreement (the Agreement) between the fund and the Investment Adviser,
dated January 1, 1994, and approved by the shareholders on December 14, 1993,
shall be in effect until the close of business on November 30, 1995 and may be
renewed from year to year thereafter, provided that any such renewal has been
specifically approved at least annually by (i) the Board of Directors of the
fund, or by the vote of a majority (as defined in the 1940 Act) of the
outstanding voting securities of the fund, and (ii) the vote of a majority of
directors who are not parties to the Agreement or interested persons (as
defined in said Act) of any such party, cast in person, at a meeting called for
the purpose of voting on such approval. The Agreement also provides that
either party has the right to terminate it without penalty, upon 60 days'
written notice to the other party, and that the Agreement automatically
terminates in the event of its assignment (as defined in said Act).
The Investment Adviser, in addition to providing investment advisory services,
furnishes the services and pays the compensation and travel expenses of persons
to perform the executive, administrative, clerical and bookkeeping functions of
the fund, and provides suitable office space, necessary small office equipment
and utilities, as well as general purpose accounting forms, supplies, and
postage to be used at the offices of the fund relating to the services
furnished by the Investment Adviser. The fund pays all expenses not
specifically assumed by the Investment Adviser, including, but not limited to,
custodian, stock transfer and dividend disbursing fees and expenses; costs of
designing, printing and mailing reports, prospectuses, proxy statements, and
notices to shareholders; taxes; expenses for the issuance and redemption of
shares of the fund (including stock certificates, registration and
qualification fees and expenses); expenses pursuant to the fund's Plan of
Distribution (described below); legal and auditing expenses; compensation,
fees, and expenses paid to directors unaffiliated with the Investment Adviser;
association dues; costs of stationery and forms prepared exclusively for the
fund; and costs of assembling and storing shareholder account data.
The Agreement provides that the Investment Adviser shall reduce the fee
payable by the fund the amount, if any, by which the total expenses of the fund
for any fiscal year (excluding interest, taxes and extraordinary expenses)
exceed 1.5% of the first $30 million of average net assets of the fund for such
fiscal year, plus 1% of such average net assets in excess thereof. Expenses
which are not subject to this limitation are interest, taxes, and extraordinary
expenses. Expenditures, including costs incurred in connection with the
purchase or sale of portfolio securities, which are capitalized in accordance
with generally accepted accounting principles applicable to investment
companies, are accounted for as capital items and not as expenses.
For the fiscal years ended August 31, 1995, 1994, and 1993, the Investment
Adviser received advisory fees of $22,942,000, $19,861,000, and $17,469,000,
respectively.
PRINCIPAL UNDERWRITER - American Funds Distributors, Inc. (the Principal
Underwriter) is the principal underwriter of the fund's shares. The fund has
adopted a Plan of Distribution (the Plan), pursuant to rule 12b-1, (see
"Principal Underwriter" in the Prospectus). The Principal Underwriter receives
amounts payable pursuant to the Plan (see below) and commissions consisting of
that portion of the sales charge remaining after the discounts which it allows
to investment dealers. Commissions retained by the Principal Underwriter on
sales of fund shares during the fiscal year ended August 31, 1995 amounted to
$4,384,000 after allowance of $22,595,000 to dealers. During the fiscal years
ended 1994 and 1993, the Principal Underwriter received $3,323,000 and
$4,139,000, after allowance of $17,123,000 and $21,832,000 to dealers,
respectively.
As required by rule 12b-1, the Plan (together with the Principal Underwriting
Agreement) has been approved by the full Board of Directors, and separately by
a majority of the directors who are not interested persons of the fund and who
have no direct or indirect financial interest in the operation of the Plan or
the Principal Underwriting Agreement, and the Plan has been approved by the
vote of a majority of the outstanding voting securities of the fund. The
officers and directors who are "interested" persons of the fund may be
considered to have a direct or indirect financial interest in the operation of
the Plan due to present or past affiliations with the Investment Adviser and
related companies. Potential benefits of the Plan to the fund include improved
shareholder services, savings to the fund in transfer agency costs, savings to
the fund in advisory fees and other expenses, benefits to the investment
process from growth or stability of assets and maintenance of a financially
healthy management organization. The selection and nomination of directors who
are not "interested persons" of the fund are committed to the discretion of the
directors who are not interested persons during the existence of the Plan. The
Plan is reviewed quarterly and must be renewed annually by the Board of
Directors.
Under the Plan the fund may expend up to 0.25% of its net assets annually to
finance any activity which is primarily intended to result in the sale of fund
shares, provided the fund's Board of Directors has approved the category of
expenses for which payment is being made. These include service fees for
qualified dealers and dealer commissions and wholesaler compensation on sales
of shares exceeding $1 million (including purchases by any employer-sponsored
403(b) plan or by any defined contribution plan qualified under Section 401(a)
of the Internal Revenue Code including a "401(k)" plan with 200 or more
eligible employees). Only expenses incurred during the preceding 12 months and
accrued while the Plan is in effect may be paid by the fund. During the fiscal
year ended August 31, 1995, the fund paid or accrued $14,418,000 for
compensation to dealers under the Plan.
The Glass-Steagall Act and other applicable laws, among other things,
generally prohibit commercial banks from engaging in the business of
underwriting, selling or distributing securities, but permit banks to make
shares of mutual funds available to their customers and to perform
administrative and shareholder servicing functions. However, judicial or
administrative decisions or interpretations of such laws, as well as changes in
either federal or state statutes or regulations relating to the permissible
activities of banks or their subsidiaries of affiliates, could prevent a bank
from continuing to perform all or a part of its servicing activities. If a
bank were prohibited from so acting, shareholder clients of such bank would be
permitted to remain shareholders of the fund and alternate means for continuing
the servicing of such shareholders would be sought. In such event, changes in
the operation of the fund might occur and shareholders serviced by such bank
might no longer be able to avail themselves of any automatic investment or
other services then being provided by such bank. It is not expected that
shareholders would suffer with adverse financial consequences as a result of
any of these occurrences.
In addition, state securities laws on this issue may differ from the
interpretations of federal law expressed herein and certain banks and financial
institutions may be required to be registered as dealers pursuant to state law.
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES
The fund intends to meet all the requirements, and has elected the tax status
of a "regulated investment company," under the provisions of Subchapter M of
the Internal Revenue Code of 1986 (the Code). Under Subchapter M, if the fund
distributes within specified times at least 90% of its investment company
taxable income, it will be taxed only on that portion of such investment
company taxable income that it retains.
To qualify, the fund must (a) derive at least 90% of its gross income from
dividends, interest, certain payments with respect to securities loans, and
gains from the sale or other disposition of stock, securities, currencies or
other income derived with respect to its business of investing in such stock,
securities or currencies; (b) derive less than 30% of its gross income from the
gains or sale or other disposition of stock or securities held less than three
months; and (c) diversify its holdings so that, at the end of each fiscal
quarter, (i) at least 50% of the market value of the fund's assets is
represented by cash, cash items, U.S. Government securities, securities of
other regulated investment companies, and other securities which must be
limited, in respect of any one issuer, to an amount not greater than 5% of the
fund's assets and 10% of the outstanding voting securities of such issuer, and
(ii) not more than 25% of the value of its assets is invested in the securities
of any one issuer (other than U.S. Government securities or the securities of
other regulated investment companies), or in two or more issuers which the fund
controls and which are engaged in the same or similar trades or businesses or
related trades or businesses.
Under the Code, a nondeductible excise tax of 4% is imposed on the excess of a
regulated investment company's "required distribution" for the calendar year
ending within the regulated investment company's taxable year over the
"distributed amount" for such calendar year. The term "required distribution"
means the sum of (i) 98% of ordinary income (generally net investment income)
for the calendar year, (ii) 98% of capital gains (both long-term and
short-term) for the one-year period ending on October 31 (as though the
one-year period ending on October 31 were the regulated investment company's
taxable year), and (iii) the sum of any untaxed, undistributed net investment
income and net capital gains of the regulated investment company for prior
periods. The term "distributed amount" generally means the sum of (i) amounts
actually distributed by the fund from its current year's ordinary income and
capital gain net income and (ii) any amount on which the fund pays income tax
for the year. The fund intends to distribute net investment income and net
capital gains so as to minimize or avoid excise tax liability.
The amount of any realized gain or loss on closing out a futures contract such
as a forward commitment for the purchase or sale of foreign currency will
generally result in a realized capital gain or loss for tax purposes. Futures
contracts held by the fund at the end of each fiscal year will be required to
be "marked to market" for federal income tax purposes, that is, deemed to have
been sold at market value. Sixty percent (60%) of any net gain or loss
recognized on these deemed sales and sixty percent (60%) of any net realized
gain or loss from any actual sales will be treated as long-term capital gain or
loss, and the remainder will be treated as short-term capital gain or loss.
Currency transactions that are not subject to Section 1256 of the Code may be
subject to Section 988 of the Code, in which case the 60%/40%
long-term/short-term capital gain or loss rule of Section 1256 would not apply.
Rather, each Section 988 foreign currency gain or loss would generally be
computed separately and treated as ordinary income or loss. The fund will
attempt to monitor Section 988 transactions to avoid an adverse tax impact.
If the fund purchases shares in certain foreign investment entities, called
"passive foreign investment companies" (PFIC), the fund may be subject to U.S.
federal income tax on a portion of any "excess distribution" or gain from the
disposition of such shares even if such income is distributed as a taxable
dividend by the fund to its shareholders. Additional charges in the nature of
interest may be imposed on either the fund or its shareholders in respect of
deferred taxes arising from such distributions or gains. If the fund were to
invest in a PFIC and elected to treat the PFIC as a "qualified electing fund"
under the Code, in lieu of the foregoing requirements, the fund might be
required to include in income each year a portion of the ordinary earnings and
net capital gains of the qualified electing fund, even if not distributed to
the fund, and such amounts would be subject to the 90% and calendar year
distribution requirements described above.
The fund also intends to continue distributing to shareholders all of the
excess of net long-term capital gain over net short-term capital loss on sales
of securities. If the net asset value of shares of the fund should, by reason
of a distribution of realized capital gains, be reduced below a shareholder's
cost, such distribution would to that extent be a return of capital to that
shareholder even though taxable to the shareholder, and a sale of shares by a
shareholder at net asset value at that time would establish a capital loss for
federal tax purposes.
Dividends generally are taxable to shareholders at the time they are paid.
However, dividends declared in October, November and December and made payable
to shareholders of record in such a month are treated as paid and are thereby
taxable as of December 31, provided that the fund pays the dividend no later
than the end of January of the following year.
Corporate shareholders of the fund may be eligible for the dividends-received
deduction on the dividends (excluding the net capital gains dividends) paid by
the fund to the extent that the fund's income is derived from dividends (which,
if received directly, would qualify for such deduction) received from domestic
corporations. In order to qualify for the dividends-received deduction, a
corporate shareholder must hold the fund shares paying the dividends upon which
the deduction is based for at least 46 days.
If a shareholder exchanges or otherwise disposes of shares of the fund within
90 days of having acquired such shares, and if, as a result of having acquired
those shares, the shareholder subsequently pays a reduced sales charge for
shares of the fund, or of a different fund, the sales charge previously
incurred in acquiring the fund's shares shall not be taken into account (to the
extent such previous sales charges do not exceed the reduction in sales
charges) for the purpose of determining the amount of gain or loss on the
exchange, but will be treated as having been incurred in the acquisition of
such other shares. Also, any loss realized on a redemption or exchange of
shares of a fund will be disallowed to the extent substantially identical
shares are reacquired within the 61-day period beginning 30 days before and
ending 30 days after the shares are disposed of.
The fund may be required to pay withholding and other taxes imposed by foreign
countries generally at rates from 10% to 40% which would reduce the fund's
investment income. Tax conventions between certain countries and the U.S. may
reduce or eliminate such taxes. Not more than 50% of the total assets of the
fund are expected to consist of securities of foreign issuers. Therefore, the
fund will not be eligible to elect to "pass through" foreign tax credits to
shareholders and, to the extent the fund does pay foreign withholding or other
foreign taxes on investments in foreign securities, shareholders will not be
able to deduct their pro rata share of such taxes in computing their taxable
income and will not be able to take their share of such taxes as a credit
against their U.S. income taxes.
Under the Code, distributions of net investment income by the fund to a
shareholder who, as to the U.S., is a nonresident alien individual, nonresident
alien fiduciary of a trust or estate, foreign corporation or foreign
partnership (a foreign shareholder) will be subject to U.S. withholding tax (at
a rate of 30% or lower treaty rate). Withholding will not apply if a dividend
paid by the fund to a foreign shareholder is "effectively connected" with a
U.S. trade or business, in which case the reporting and withholding
requirements applicable to U.S. citizens, U.S. residents or domestic
corporations will apply. Distributions of net long-term capital gains are not
subject to tax withholding, but in the case of a foreign shareholder who is a
nonresident alien individual, such distributions ordinarily will be subject to
U.S. income tax at a rate of 30% if the individual is physically present in the
U.S. for more than 182 days during the taxable year.
As of the date of this statement of additional information, the maximum
federal individual stated tax rate applicable to ordinary income is 39.6%
(effective tax rates may be higher for some individuals due to phase out of
exemptions and elimination of deductions); the maximum individual tax rate
applicable to net capital gains is 28%; and the maximum corporate tax
applicable to ordinary income and net capital gains is 35%. However, to
eliminate the benefit of lower marginal corporate income tax rates,
corporations which have taxable income in excess of $100,000 for a taxable year
will be required to pay an additional amount of tax of up to $11,750 and
corporations which have taxable income in excess of $15,000,000 for a taxable
year will be required to pay an additional amount of tax of up to $100,000.
Naturally, the amount of tax payable by a shareholder with respect to either
distributions from the fund or disposition of fund shares will be affected by a
combination of tax law rules covering, E.G., deductions, credits, deferrals,
exemptions, sources of income and other matters. Under the Code, an individual
is entitled to establish an IRA each year (prior to the tax return filing
deadline for the year) whereby earnings on investments are tax-deferred. In
addition, in some cases, the IRA contribution itself may be deductible.
The foregoing is limited to a summary of federal taxation and should not be
viewed as a comprehensive discussion of all provisions of the Code relevant to
investors. Dividends and capital gain distributions may also be subject to
state or local taxes. Investors are urged to consult their tax advisers with
specific reference to their own tax situations.
PURCHASE OF SHARES
PRICE OF SHARES - Purchases of shares are made at the offering price next
determined after the purchase order is received by the fund or American Funds
Service Company; this offering price is effective for orders received prior to
the time of determination of the net asset value and, in the case of orders
placed with dealers, accepted by the Principal Underwriter prior to its close
of business. The dealer is responsible for promptly transmitting purchase
orders to the Principal Underwriter. Orders received by the investment dealer,
the Transfer Agent, or the fund after the time of the determination of the net
asset value will be entered at the next calculated offering price. Prices
which appear in the newspaper are not always indicative of prices at which you
will be purchasing and redeeming shares of the fund, since such prices
generally reflect the previous day's closing price whereas purchases and
redemptions are made at the next calculated price.
The price you pay for shares, the offering price, is based on the net asset
value per share which is calculated once daily at the close of trading
(currently 4:00 p.m., New York time) each day the New York Stock Exchange is
open. The New York Stock Exchange is currently closed on weekends and on the
following holidays: New Year's Day, Presidents' Day, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving and Christmas Day. The net
asset value per share is determined as follows:
1. Stocks, convertible bonds and debentures, traded on a national securities
exchange (or reported on the NASDAQ national market) and securities traded in
the over-the-counter market are stated at the last reported sales price on the
day of valuation; other securities and securities for which no sales was
reported on that date are stated at the last quoted bid price. Non-convertible
bonds and debentures, and other long-term debt securities normally are valued
at prices obtained for the day of valuation from a bond pricing service when
such prices are available; however, in circumstances where the Investment
Adviser deems it appropriate to do so, an over-the-counter or exchange
quotation may be used. U.S. Treasury bills, and other short-term obligations
issued or guaranteed by the U.S. Government, its agencies or instrumentalities,
certificates of deposit issued by banks, corporate short-term notes and other
short-term investments with original or remaining maturities in excess of 60
days are valued at the mean of representative quoted bid and asked prices for
such securities or, if such prices are not available, for securities of
comparable maturity, quality and type. Short-term securities with 60 days or
less to maturity are amortized to maturity based on their cost to the fund if
acquired within 60 days of maturity or, if already held by the fund on the 60th
day, based on the value determined on the 61st day. Other securities are
valued on the basis of last sale or bid prices in what is, in the opinion of
the Investment Adviser, the broadest and most representative market, which may
be either a securities exchange or the over-the-counter market. Where
quotations are not readily available, securities are valued at fair value as
determined in good faith by the Board of Directors. The fair value of all
other assets is added to the value of securities to arrive at the fund's total
assets;
2. There are deducted from the total assets, thus determined, the liabilities,
including proper accruals of taxes and other expense items; and
3. The value of the net assets so obtained is then divided by the total number
of shares outstanding, and the result, rounded to the nearer cent, is the net
asset value per share.
Any purchase order may be rejected by the Principal Underwriter or the fund.
The Principal Underwriter will not knowingly sell shares of the fund directly
or indirectly to any person or entity, where, after the sale, such person or
entity would own beneficially directly or indirectly more than 4.5% of the
outstanding shares of the fund without the consent of a majority of the fund's
directors.
STATEMENT OF INTENTION - The reduced sales charges and offering prices set
forth in the Prospectus apply to purchases of $50,000 or more made within a
13-month period subject to the following statement of intention (the Statement)
terms. The Statement is not a binding obligation to purchase the indicated
amount. When a shareholder elects to utilize the Statement in order to qualify
for a reduced sales charge, shares equal to 5% of the dollar amount specified
in the Statement will be held in escrow in the shareholder's account out of the
initial purchase (or subsequent purchases, if necessary) by the Transfer Agent.
All dividends and any capital gain distributions on shares held in escrow will
be credited to the shareholder's account in shares (or paid in cash, if
requested). If the intended investment is not completed within the specified
13-month period, the purchaser will remit to the Principal Underwriter the
difference between the sales charge actually paid and the sales charge which
would have been paid if the total of such purchases had been made at a single
time. If the difference is not paid within 45 days after written request by
the Principal Underwriter or the investment dealer, the appropriate number of
shares held in escrow will be redeemed to pay such difference. If the proceeds
from this redemption are inadequate, the purchaser will be liable to the
Principal Underwriter for the balance still outstanding. The Statement may be
revised upward at any time during the 13-month period, and such a revision will
be treated as a new Statement, except that the 13-month period during which the
purchase must be made will remain unchanged and there will be no retroactive
reduction of the sales charges paid on prior purchases. Existing holding
eligible for rights of accumulation (see the prospectus and account
application) may be credited toward satisfying the statement. During the
statement period reinvested dividends and capital gain distributions,
investments in money market funds, and investments made under a right of
reinstatement will not be credited toward satisfying the Statement.
In the case of purchase orders by the trustees of certain retirement plans by
payroll deduction, the sales charge for the investments made during the
13-month period will be handled as follows: The regular monthly payroll
deduction investment will be multiplied by 13 and then multiplied by 1.5. The
current value of existing American Funds investments (other than money market
fund investments) and any rollovers or transfers reasonably anticipated to be
invested in non-money market American Funds during the 13-month period are
added to the figure determined above. The sum is the Statement amount and
applicable breakpoint level. On the first investment and all other investments
made pursuant to the statement of intention, a sales charge will be assessed
according to the sales charge breakpoint thus determined. There will be no
retroactive adjustments in sales charges on investments previously made during
the 13-month period.
Shareholders purchasing shares at a reduced sales charge under a Statement
indicate their acceptance of these terms with their first purchase.
DEALER COMMISSIONS - The following commissions will be paid to dealers who
initiate and are responsible for purchases of $1 million or more, for purchases
by any employer-sponsored 403(b) plan or purchases by any defined contribution
plan qualified under Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees, and for purchases made at
net asset value by certain retirement plans of organizations with collective
retirement plan assets of $100 million or more: 1.00% on amounts of $1 million
to $2 million, 0.80% on amounts over $2 million to $3 million, 0.50% on amounts
over $3 million to $50 million, 0.25% on amounts over $50 million to $100
million, and 0.15% on amounts over $100 million. The level of dealer
commissions will be determined based on sales made over a 12-month period
commencing from the date of the first sale at net asset value. See "The
American Funds Shareholder Guide" in the fund's prospectus for more
information.
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
AUTOMATIC INVESTMENT PLAN - The automatic investment plan enables shareholders
to make regular monthly or quarterly investments in shares through automatic
charges to their bank accounts. With shareholder authorization and bank
approval, the Transfer Agent will automatically charge the bank account for the
amount specified ($50 minimum), which will be automatically invested in shares
at the offering price on or about the 10th day of the month (or on or about the
15th day of the month in the case of accounts for retirement plans where CGTC
serves as custodian or trustee). Bank accounts will be charged on the day or a
few days before investments are credited, depending on the bank's capabilities,
and shareholders will receive a confirmation statement showing the current
transaction. Participation in the plan will begin within 30 days after receipt
of the account application. If the shareholder's bank account cannot be
charged due to insufficient funds, a stop-payment order or the closing of the
account, the plan may be terminated and the related investment reversed. The
shareholder may change the amount of the investment or discontinue the plan at
any time by writing to the Transfer Agent.
AUTOMATIC WITHDRAWALS - Withdrawal payments are not to be considered as
dividends, yield or income. Automatic investments may not be made into a
shareholder account from which there are automatic withdrawals. Withdrawals of
amounts exceeding reinvested dividends and distributions and increases in share
value would reduce the aggregate value of the shareholder's account. The
Transfer Agent arranges for the redemption by the fund of sufficient shares,
deposited by the shareholder with the Transfer Agent, to provide the withdrawal
payment specified.
CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS - A shareholder in one fund
may elect to cross-reinvest dividends or dividends and capital gain
distributions paid by that fund (the paying fund) into any other fund in The
American Funds Group (the receiving fund) subject to the following conditions:
(I) the aggregate value of the shareholder's account(s) in the paying fund(s)
must equal or exceed $5,000 (this condition is waived if the value of the
account in the receiving fund equals or exceeds that fund's minimum initial
investment requirement), (ii) as long as the value of the account in the
receiving fund is below that fund's minimum initial investment requirement,
dividends and capital gain distributions paid by the receiving fund must be
automatically reinvested in the receiving fund, and (iii) if this privilege is
discontinued with respect to a particular receiving fund, the value of the
account in that fund must equal or exceed the fund's minimum initial investment
requirement or the fund shall have the right, if the shareholder fails to
increase the value of the account to such minimum within 90 days after being
notified of the deficiency, to automatically redeem the account and send the
proceeds to the shareholder. These cross-reinvestments of dividends and
capital gain distributions will be at net asset value (without sales
charge).
EXECUTION OF PORTFOLIO TRANSACTIONS
There are occasions on which portfolio transactions for the fund may be
executed as part of concurrent authorizations to purchase or sell the same
security for other funds served by the Investment Adviser, or for trusts or
other accounts served by affiliated companies of the Investment Adviser.
Although such concurrent authorizations potentially could be either
advantageous or disadvantageous to the fund, they are effected only when the
Investment Adviser believes that to do so is in the interest of the fund. When
such concurrent authorizations occur, the objective is to allocate the
executions in an equitable manner. The fund will not pay a mark-up for
research in principal transactions.
The fund is required to disclose information regarding investments in the
securities of broker-dealers which have certain relationships with the fund.
During the last fiscal year, American Express Credit Corp. and Ford Motor
Credit Co. were among the top 10 dealers that acted as principals in portfolio
transactions. The fund held debt securities of Ford Motor Credit Co. and
American Express Credit Corp. in the amounts of $73,956,000 and $58,701,000,
respectively, as of the close of its most recent fiscal year.
Brokerage commissions paid on portfolio transactions, including dealer
concessions on underwritings, during the fiscal years ended August 31, 1995,
1994 and 1993, amounted to $3,593,000, $3,499,000, and $4,958,000,
respectively.
GENERAL INFORMATION
CUSTODIAN OF ASSETS - Securities and cash owned by the fund, including
proceeds from the sale of shares of the fund and of securities in the fund's
portfolio, are held by The Chase Manhattan Bank, N.A., One Chase Manhattan
Plaza, New York, NY 10081, as Custodian.
TRANSFER AGENT - American Funds Service Company, a wholly owned subsidiary of
the Investment Adviser, maintains the record of each shareholder's account,
processes purchases and redemptions of the fund's shares, acts as dividend and
capital gain distribution disbursing agent, and performs other related
shareholder service functions. When fund shares are purchased by an insurance
company separate account to serve as the underlying investment vehicle for
variable insurance contracts, the fund may pay a fee to the insurance company
or another party for performing certain transfer agent services with respect to
contract owners having interests in the fund.
INDEPENDENT ACCOUNTANTS - Deloitte & Touche LLP located at 1000 Wilshire
Boulevard, Los Angeles, CA 90017, serves as the fund's independent accountants
providing audit services, preparation of tax returns and review of certain
documents of the fund to be filed with the Securities and Exchange Commission.
The financial statements incorporated in this Statement of Additional
Information have been so included in reliance on the report of Deloitte &
Touche LLP given on the authority of said firm as experts in accounting and
auditing.
REPORTS TO SHAREHOLDERS - The fund's fiscal year ends on August 31.
Shareholders are provided at least semi-annually with reports showing the
investment portfolio, financial statements and other information. The annual
financial statements are audited annually by the fund's independent
accountants, Deloitte & Touche LLP, whose selection is determined annually by
the Board of Directors.
PERSONAL INVESTING POLICY - Capital Research and Management Company and its
affiliated companies have adopted a personal investing policy consistent with
Investment Company Institute guidelines. This policy includes: a ban on
acquisitions of securities pursuant to an initial public offering; restrictions
on acquisitions of private placement securities; pre-clearance and reporting
requirements; review of duplicate confirmation statements; annual
recertification of compliance with codes of ethics; disclosure of personal
holdings by certain investment personnel prior to recommendation for purchase
for the fund; blackout periods on personal investing for certain investment
personnel; ban on short-term trading profits for investment personnel;
limitations on service as a director of publicly traded companies; and
disclosure of personal securities transactions.
The financial statements including the investment portfolio and the report of
Independent Auditors contained in the Annual Report are included in this
Statement of Additional Information. The following information is not included
in the Annual Report:
DETERMINATION OF NET ASSET VALUE,
REDEMPTION PRICE AND
MAXIMUM OFFERING PRICE PER SHARE--AUGUST 31, 1995
<TABLE>
<CAPTION>
<S> <C>
Net asset value and redemption price per share
(Net assets divided by shares outstanding) $33.09
Maximum offering price per share
(100/94.25 of net asset value per share
which takes into account the fund's current
maximum sales charge) $35.11
</TABLE>
REMOVAL OF DIRECTORS BY SHAREHOLDERS - At any meeting of shareholders, duly
called and at which a quorum is present, the shareholders may, by the
affirmative vote of the holders of a majority of the votes entitled to be cast
thereon, remove any director or directors from office and may elect a successor
or successors to fill any resulting vacancies for the unexpired terms of
removed directors. The fund has made an undertaking, at the request of the
staff of the Securities and Exchange Commission, to apply the provisions of
section 16(c) of the 1940 Act with respect to the removal of directors as
though the fund were a common-law trust. Accordingly, the directors of the
fund shall promptly call a meeting of shareholders for the purpose of voting
upon the question of removal of any director when requested in writing to do so
by the record holders of not less than 10% of the outstanding shares.
INVESTMENT RESULTS
The fund's yield is 0.88% based on a 30-day (or one month) period ended August
31, 1995, computed by dividing the net investment income per share earned
during the period by the maximum offering price per share on the last day of
the period, according to the following formula:
YIELD = 2[(a-b/cd+1)/6/-1]
Where: a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the period that
were entitled to receive dividends.
d = the maximum offering price per share on the last day of the period.
The fund's average annual total return for the one, five and ten-year periods
ended on August 31, 1995 were +18.32%, +16.45% and +15.13%, respectively. The
average annual total return (T) is computed by using the value at the end of
the period (ERV) of a hypothetical initial investment of $1,000 (P) over a
period of years (n) according to the following formula as required by the
Securities and Exchange Commission: P(1+T)/n/ = ERV.
To calculate total return, an initial investment is divided by the offering
price (which includes the sales charge) as of the first day of the period in
order to determine the initial number of shares purchased. Subsequent
dividends and capital gain distributions are then reinvested at net asset value
on the reinvestment date determined by the Board of Directors. The sum of the
initial shares purchased and shares acquired through reinvestment is multiplied
by the net asset value per share as of the end of the period in order to
determine ending value. The difference between the ending value and the
initial investment divided by the initial investment converted to a percentage
equals total return. The resulting percentage indicates the positive or
negative investment results that an investor would have experienced from
reinvested dividends and capital gain distributions and changes in share price
during the period. Total return may be calculated for one year, five years,
ten years and for other periods of years. The average annual total return over
periods greater than one year also may be computed by utilizing ending values
as determined above.
The following assumptions will be reflected in computations made in accordance
with the formula stated above: (1) deduction of the maximum sales load of
5.75% from the $1,000 initial investment; (2) reinvestment of dividends and
distributions at net asset value on the reinvestment date determined by the
Board; and (3) a complete redemption at the end of any period illustrated.
The fund may also calculate a distribution rate on a taxable and tax
equivalent basis. The distribution rate is computed by dividing the dividends
paid by the fund over the last 12 months by the sum of the month-end net asset
value or maximum offering price and the capital gains paid over the last 12
months. The distribution rate may differ from the yield.
The fund may include information on its investment results and/or comparisons
of its investment results to various unmanaged indices (such as The Dow Jones
Average of 30 Industrial Stocks and The Standard and Poor's 500 Stock Composite
Index) or results of other mutual funds or investment or savings vehicles in
advertisements or in reports furnished to present or prospective shareholders.
The fund may refer to results compiled by organizations such as CDA Investment
Technologies, Ibbotson Associates, Lipper Analytical Services, Morningstar,
Inc. and Wiesenberger Investment Companies Services and by the U.S. Department
of Commerce. Additionally, the fund may, from time to time, refer to results
published in various newspapers or periodicals, including Barrons, Forbes,
Fortune, Institutional Investor, Kiplinger's Personal Finance Magazine, Money,
U.S. News and World Report and The Wall Street Journal.
The fund may, from time to time, illustrate the benefits of tax-deferral by
comparing taxable investments to investments made through tax-deferred
retirement plans.
The fund may, from time to time, compare its investment results with the
Consumer Price Index, which is a measure of the average change in prices over
time in a fixed market basket of goods and services (E.G. food, clothing, and
fuels, transportation, and other goods and services that people buy for
day-to-day living).
GFA vs. Various Unmanaged Indices
<TABLE>
<CAPTION>
10-Year Average
Periods Savings
9/1 - 8/31 GFA DJIA/1/ S&P 500/2/ Account/3/
<S> <C> <C> <C> <C>
1985 - 1995
+309% +386% +311% +73%
1984 - 1994
+270 +359 +300 + 83
1983 - 1993
+251 +340 +303 + 94
1982 - 1992
+312 +441 +405 +105
1981 - 1991
+328 +435 +382 +117
1980 - 1990
+269 +344 +300 +124
1979 - 1989
+445 +400 +398 +125
1978 - 1988
+358 +283 +299 +125
1977 - 1987
+735 +422 +447 +125
1976 - 1986
+600 +234 +299 +124
1975 - 1985
+521 +173 +253 +121
1974 - 1984
+579 +211 +277 +116
1973#- 1983
+464 +151 +175 +106
</TABLE>
_________________
# From December 1, 1973
/1/ The Dow Jones Average of 30 Industrial Stocks is comprised of 30 industrial
companies such as General Motors and General Electric.
/2/ The Standard and Poor's 500 Stock Composite Index is comprised of
industrial, transportation, public utilities and financial stocks and
represents a large portion of the value of issues traded on the New York Stock
Exchange. Selected issues traded on the American Stock Exchange are also
included.
/3/ Based on figures supplied by the U.S. League of Savings Institutions and
the Federal Reserve Board which reflect all kinds of savings deposits,
including longer-term certificates. Savings accounts offer a guaranteed return
of principal, but no opportunity for capital growth. During a portion of the
period, the maximum rates paid on some savings deposits were fixed by law.
<TABLE>
<CAPTION>
If you are considering GFA for an
Individual Retirement Account. . .
Here's how much you would have if you had invested $2,000 a year on September 1
of each year in GFA over the past 3, 5 and 10 years:
<S> <C> <C>
3 years 5 years 10 years
(9/1/92-8/31/95) (9/1/90-8/31/95) (9/1/85-8/31/95)
$8,002 $15,564 $44,098
</TABLE>
SEE THE DIFFERENCE TIME CAN MAKE IN AN INVESTMENT PROGRAM
<TABLE>
<CAPTION>
<S> <C> <C>
. . . and had taken
all dividends and
capital gain
distributions
in shares, your
If you had investment would
invested $10,000 have been worth
in GFA this many this much at
years ago . . . 8/31/95
| |
Number Periods
of Years 9/1 - 8/31 Value
1 1994 - 1995 $11,832
2 1993 - 1995 12,541
3 1992 - 1995 15,635
4 1991 - 1995 16,398
5 1990 - 1995 21,414
6 1989 - 1995 19,317
7 1988 - 1995 26,925
8 1987 - 1995 24,038
9 1986 - 1995 31,782
10 1985 - 1995 40,902
11 1984 - 1995 46,441
12 1983 - 1995 46,767
13 1982 - 1995 68,349
14 1981 - 1995 74,551
15 1980 - 1995 83,727
16 1979 - 1995 111,793
17 1978 - 1995 130,962
18 1977 - 1995 213,031
19 1976 - 1995 236,196
20 1975 - 1995 269,554
21 1974 - 1995 334,523
22 1973#- 1995 279,811
</TABLE>
__________________
#From December 1, 1973
Illustration of a $10,000 investment in GFA with
dividends reinvested and capital gain distributions taken in shares
(for the period December 1, 1973 through August 31, 1995)
<TABLE>
<CAPTION>
COST OF SHARES
VALUE OF SHARES
Year Annual Dividends Total From Initial From From Total
Ended Dividends (cumulative) Investment Investment Capital Gains Dividends Value
August 31 Cost Reinvested Reinvested
<S> <C> <C> <C> <C> <C> <C> <C>
1974# - - $10,000 $ 7,874 - - $ 7,874
1975 $ 362 $ 362 10,362 9,322 - $ 470 9,792
1976 283 645 10,645 10,327 - 838 11,165
1977 - 645 10,645 11,449 - 928 12,377
1978 254 899 10,899 18,364 - 1,772 20,136
1979 - 899 10,899 21,519 - 2,076 23,595
1980 307 1,206 11,206 28,318 - 3,178 31,496
1981 546 1,752 11,752 31,304 - 4,079 35,383
1982 1,673 3,425 13,425 32,507 - 6,088 38,595
1983 2,290 5,715 15,715 44,886 - 11,496 56,382
1984 1,643 7,358 17,358 43,120 $ 1,064 12,621 56,805
1985 1,249 8,607 18,607 47,370 1,744 15,379 64,493
1986 979 9,586 19,586 56,066 7,355 19,541 82,962
1987 1,354 10,940 20,940 69,339 14,360 26,031 109,730
1988 1,502 12,442 22,442 56,949 18,289 22,724 97,962
1989 1,743 14,185 24,185 75,387 28,688 32,432 136,507
1990 3,611 17,796 27,796 60,251 33,708 29,225 123,184
1991 3,208 21,004 31,004 73,295 47,920 39,600 160,815
1992 2,510 23,514 33,514 72,052 55,106 41,545 168,703
1993 1,454 24,968 34,968 88,758 68,670 52,840 210,268
1994 929 25,897 35,897 90,294 77,818 54,740 222,852
1995 1,372 27,269 37,269 108,176 104,252 67,383 279,811
</TABLE>
The dollar amount of capital gain distributions during the period was $59,884.
#From December 1, 1973
EXPERIENCE OF INVESTMENT ADVISER - Capital Research and Management Company
manages nine common stock funds that are at least 10 years old. In the rolling
10-year periods since 1964 (115 in all), those funds have had better total
returns than the Standard and Poor's 500 Composite Stock Index in 94 of the 115
periods.
Note that past results are not an indication of future investment results.
Also, the fund has different investment policies than the funds mentioned
above. These results are included solely for the purpose of informing
investors about the experience and history of Capital Research and Management
Company.
DESCRIPTION OF BOND RATINGS
Corporate Debt Securities
MOODY'S INVESTORS SERVICE, INC. rates the long-term debt securities issued by
various entities from "Aaa" to "C" according to quality.
"AAA -- Best quality. These securities carry the smallest degree of investment
risk and are generally referred to as 'gilt edge.' Interest payments are
protected by a large, or by an exceptionally stable margin and principal is
secure. While the various protective elements are likely to change, such
changes as can be visualized are most unlikely to impair the fundamentally
strong position of such issues."
"AA -- High quality by all standards. They are rated lower than the best bond
because margins of protection may not be as large as in Aaa securities,
fluctuation of protective elements may be of greater amplitude, or there may be
other elements present which make the long-term risks appear somewhat greater."
"A -- Upper medium grade obligations. These bonds possess many favorable
investment attributes. Factors giving security to principal and interest are
considered adequate, but elements may be present which suggest a susceptibility
to impairment sometime in the future."
"BAA -- Medium grade obligations. Interest payments and principal security
appear adequate for the present but certain protective elements may be lacking
or may be characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and, in fact, have
speculative characteristics as well."
"BA -- Have speculative elements; future cannot be considered as well assured.
The protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the future.
Bonds in this class are characterized by uncertainty of position."
"B -- Generally lack characteristics of the desirable investment; assurance of
interest and principal payments or of maintenance of other terms of the
contract over any long period of time may be small."
"CAA -- Of poor standing. Issues may be in default or there may be present
elements of danger with respect to principal or interest."
"CA -- Speculative in a high degree; often in default or have other marked
shortcomings."
"C -- Lowest rated class of bonds; can be regarded as having extremely poor
prospects of ever attaining any real investment standing."
STANDARD & POOR'S CORPORATION rates the long-term securities debt of various
entities in categories ranging from "AAA" to "D" according to quality.
"AAA -- Highest rating. Capacity to pay interest and repay principal is
extremely strong."
"AA -- High grade. Very strong capacity to pay interest and repay principal.
Generally, these bonds differ from AAA issues only in a small degree."
"A -- Have a strong capacity to pay interest and repay principal, although they
are somewhat more susceptible to the adverse effects of change in circumstances
and economic conditions, than debt in higher rated categories."
"BBB -- Regarded as having adequate capacity to pay interest and repay
principal. These bonds normally exhibit adequate protection parameters, but
adverse economic conditions or changing circumstances are more likely to lead
to a weakened capacity to pay interest and repay principal than for debt in
higher rated categories."
"BB, B, CCC, CC, C -- Regarded, on balance, as predominantly speculative with
respect to capacity to pay interest and repay principal in accordance with the
terms of the obligation. BB indicates the lowest degree of speculation and C
the highest degree of speculation. While such debt will likely have some
quality and protective characteristics, these are outweighed by large
uncertainties or major risk exposures to adverse conditions."
"C1 -- Reserved for income bonds on which no interest is being paid."
"D -- In default and payment of interest and/or repayment of principal is in
arrears."
Subsequent to its purchase by the fund, the rating of an issue of bonds may be
changed from the rating required for its purchase, or in the case of an unrated
issue of bonds, its credit quality may become equivalent to an issue of bonds
ineligible for purchase by the fund. Neither event requires the elimination of
such an obligation from the fund's portfolio, but Capital Research and
Management Company (the Investment Adviser) will consider such an event in
determining whether the fund should continue to hold such an obligation in its
portfolio.
<PAGE>
GROWTH FUND OF AMERICA
INVESTMENT PORTFOLIO,
August 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- ---------------------------- ----- ----------------------------- -----
Percent Percent
of Net of Net
Largest Industry Holdings Assets Largest Individual Holdings Assets
- ----------------------------- ----- ------------------------------- -----
Broadcasting & Publishing 16.57% Intel 3.21%
Electronic Components 13.17% Time Warner 3.00
Data Processing & 2.69
Reproduction
Business & Public Services 8.00% Federal National Mortgage Assn. 2.63
Telecommunications 6.11% Viacom 2.52
Other Industries 28.78% News Corp. 2.34
Cash & Equivalents 19.14% Silicon Graphics 2.07
Walt Disney 2.04
Advanced Micro Devices 1.90
National Semiconductor 1.88
- ----------------------------- ----- ------------------------------- -----
Equity-type securities Equity-type securities
appearing in the portfolio eliminated from the portfolio
since February 28, 1995 since February 28, 1995
- ----------------------------- -------------------------------
ADC Telecommunications H.F. Ahmanson
Analog Devices Archer Daniels Midland
Bausch & Lomb Bay Networks
Biogen CBI Industries
Capital One Financial Centocor
Cisco Systems Cordis
Duracell International Dell Computer
Federal Home Loan Mortgage Genentech
Fruit of the Loom Humana
H.B. Fuller International Game Technology
Maybelline Jefferson Smurfit
MGM Grand Lotus Development
Nintendo Microsoft
Noble Affiliates Policy Management Systems
Nokia Scios Nova
Perrigo Shoney's
Sybase Signet Banking
Tellabs
U.S. Industries
Viacom
Wal-Mart Stores
</TABLE>
THE GROWTH FUND OF AMERICA
INVESTMENT PORTFOLIO, August 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EQUITY-TYPE SECURITIES Value of Net
(Common & Preferred Stocks) Shares (000) Assets
- ------------------------------------- -------- -------- ------
Broadcasting & Publishing- 16.57%
Time Warner Inc. 5,352,000 $225,453 3.00%
TELE-COMMUNICATIONS, INC., SERIES A, TCI GROUP 1 8,039,300 148,727
TELE-COMMUNICATIONS, INC., SERIES A, LIBERTY MEDIA GROUP 1 2,009,825 53,386 2.69
VIACOM INC., CLASS B 1 3,900,000 189,637 2.52
News Corp. Ltd. (American Depositary
Receipts)(Australia) 5,350,000 121,712
News Corp. Ltd., preferred
(American Depositary Receipts) 2,675,000 54,169 2.34
Comcast Corp., Class A 1,680,000 35,700
Comcast Corp., Class A Special Stock 4,210,000 89,989 1.67
Turner Broadcasting System, Inc., Class B 3,625,000 111,469 1.48
Capital Cities/ABC, Inc. 965,000 110,975 1.47
E.W. Scripps Co., Class A 1,400,000 47,075 .63
CBS Inc. 326,480 26,037 .35
Century Communications Corp., Class A 1 1,002,550 9,900 .13
New York Times Co., Class A 350,000 8,706 .12
LIN Television Corp. 1 220,800 8,059 .10
BHC Communications, Inc., Class A 1 62,840 5,703 .07
Electronic Components- 13.17%
Intel Corp. 3,939,000 241,756 3.21
Advanced Micro Devices,Inc. 1 4,238,000 143,033 1.90
National Semiconductor Corp. 1 4,997,930 141,191 1.88
Texas Instruments Inc. 1,710,000 128,036 1.69
LSI Logic Corp. 1 2,400,000 118,200 1.57
Seagate Technology 1 2,000,000 88,500 1.18
Micron Technology, Inc. 500,000 38,437 .51
ANALOG DEVICES, INC. 1 750,000 25,969 .35
AMP Inc. 400,000 16,250 .22
Quantum Corp. 1 669,400 16,066 .21
TELLABS, INC. 235,000 10,986 .15
Newbridge Networks Corp. (Canada) 1 300,000 8,663 .12
ADC TELECOMMUNICATIONS, INC. 1 178,000 6,898 .09
Cyrix Corp. 1 200,000 6,875 .09
Data Processing & Reproduction- 8.23%
Silicon Graphics, Inc. 1 3,690,000 155,902 2.07
Adobe Systems Inc. 1,725,000 87,975 1.17
International Business Machines Corp. 680,000 70,295 .93
Digital Equipment Corp. 1 1,600,000 66,800 .89
Electronic Arts 1 900,000 34,200 .45
Acclaim Entertainment, Inc. 1 1,280,000 32,320 .43
Hewlett-Packard Co. 400,000 32,000 .43
Compaq Computer Corp. 1 600,000 28,650 .38
SYBASE, INC. 1 884,000 28,398 .38
Oracle Corp. 1 (Formerly Oracle Systems Corp.) 597,500 23,975 .32
Tandem Computers Inc. 1 1,540,000 18,865 .26
Mentor Graphics Corp. 1 715,000 13,764 .18
Cisco Systems, Inc. 1 200,000 13,125 .17
Apple Computer, Inc. 300,000 12,900 .17
Business & Public Services- 8.00%
Columbia/HCA Healthcare Corp. 2,352,500 110,568 1.47
United HealthCare Corp. 2,555,000 107,949 1.43
CUC International Inc. 1 2,325,000 79,341 1.05
Federal Express Corp. 1 930,000 66,727 .89
WMX Technologies, Inc. 1,680,000 49,350 .65
Pitney Bowes Inc. 1,075,000 43,672 .58
ADT Ltd. 1 3,280,000 42,640 .57
General Motors Corp., Class E 900,000 41,962 .56
U.S. Healthcare, Inc. 500,000 16,000 .21
Value Health, Inc. 1 370,000 12,811 .17
FHP International Corp. 1 385,000 9,529 .13
Dun & Bradstreet Corp. 140,000 8,102 .11
Ecolab Inc. 250,000 6,844 .09
Oxford Health Plans, Inc. 1 79,800 3,910 .05
Coram Healthcare Corp. 1 650,000 3,169 .04
Telecommunications- 6.11%
Vodafone Group PLC (American Depositary Receipts)
(United Kingdom) 2,350,000 98,406 1.31
Cellular Communications, Inc. 1 1,755,000 95,647 1.27
MCI Communications Corp. 3,275,000 78,805 1.05
AirTouch Communications 1 2,165,000 70,363 .94
LIN Broadcasting Corp. 1 381,600 49,036 .65
AT&T Corp. 500,000 28,250 .38
Sprint Corp. 450,000 15,975 .21
Cellular Communications of Puerto Rico, Inc. 1 374,998 11,531 .15
Telefonos de Mexico, SA de CV, Class L (American
Depositary Receipts) (Mexico) 350,000 11,462 .15
Leisure & Tourism- 4.53%
Walt Disney Co. 2,735,000 153,502 2.04
Mirage Resorts, Inc. 1 2,050,000 70,469 .94
HARRAH'S ENTERTAINMENT, INC. 1 2,200,000 70,125 .93
MGM GRAND, INC. 1 1,275,000 31,875 .42
Promus Hotel Corp. 1 735,800 15,176 .20
Financial Services- 3.43%
Federal National Mortgage Assn. 2,075,000 197,903 2.63
CAPITAL ONE FINANCIAL CORP. 1,105,000 28,730 .38
Student Loan Marketing Assn. 450,000 24,356 .32
FEDERAL HOME LOAN MORTGAGE CORP. 113,200 7,273 .10
Transportation: Airlines- 2.20%
Southwest Airlines Co. 2,573,450 66,588 .88
AMR Corp. 1 860,000 60,630 .81
Delta Air Lines, Inc. 515,000 38,303 .51
Recreation & Consumer Products- 2.06%
Mattel, Inc. 3,377,200 97,939 1.30
DURACELL INTERNATIONAL INC. 500,000 22,313 .30
NINTENDO CO., LTD. (JAPAN) 215,000 13,495 .18
WMS Industries Inc. 1 550,000 12,512 .17
Hasbro, Inc. 265,000 8,579 .11
Banking- 1.63%
Citicorp 800,000 53,100 .71
BankAmerica Corp. 320,000 18,080 .24
Commerce Bancshares, Inc. 446,250 16,009 .21
PNC Bank Corp. 600,000 15,750 .21
First Security Corp. 362,500 11,419 .15
Northern Trust Corp. 180,000 8,100 .11
Health & Personal Care- 1.55%
Forest Laboratories, Inc. 1 600,000 26,850 .36
NELLCOR PURITAN BENNETT INC. 1 485,760 25,259 .34
BIOGEN, INC. 1 280,000 15,330 .20
Tambrands Inc. 200,000 8,975 .12
MedImmune, Inc. 1 704,100 8,713 .12
Upjohn Co. 200,000 8,475 .10
Gensia Pharmaceuticals, Inc. 1 1,325,000 7,453 .10
MAYBELLINE, INC. 200,000 5,050 .07
Pyxis Corp. 1 200,000 4,525 .06
BAUSCH & LOMB INC. 100,000 3,975 .05
PERRIGO CO. 1 175,000 2,363 .03
Beverages & Tobacco- 1.48%
Philip Morris Companies Inc. 1,375,000 102,609 1.36
PepsiCo, Inc. 200,000 9,050 .12
Insurance- 1.37%
EXEL Ltd. (United Kingdom) 1,140,000 62,700 .83
TIG Holdings, Inc. 675,000 17,297 .23
NAC Re Corp. 350,000 12,775 .17
AMBAC Inc. 250,000 10,562 .14
Machinery & Engineering- 1.34%
Thermo Electron Corp. 1 1,275,000 54,984 .73
Caterpillar Inc. 680,000 45,645 .61
Electrical & Electronic Instruments- 1.33%
Telefonaktiebolaget LM Ericsson, Class B
(American Depositary Receipts) (Sweden) 2,725,000 58,247 .77
NOKIA CORP.
(AMERICAN DEPOSITARY RECEIPTS) (FINLAND) 600,000 41,625 .56
Chemicals- 1.25%
A. Schulman, Inc. 1,522,500 40,346 .54
Great Lakes Chemical Corp. 420,000 27,772 .37
H.B. FULLER CO. 383,700 13,142 .17
Loctite Corp. 150,000 7,200 .10
Raychem Corp. 125,000 5,484 .07
Merchandising- 1.18%
WAL-MART STORES, INC. 1,000,000 24,625 .34
Home Shopping Network, Inc. 1 2,300,000 24,150 .32
Toys 'R' Us, Inc. 1 925,000 24,050 .32
Gap, Inc. 476,500 15,308 .20
Energy Equipment- 0.51%
Schlumberger Ltd. (Netherlands Antilles) 575,000 37,088 .49
Western Atlas Inc. 1 40,000 1,815 .02
Textiles & Apparel- 0.48%
FRUIT OF THE LOOM, INC. 1 1,300,000 30,550 .41
Delta Woodside Industries, Inc. 600,000 5,025 .07
Transportation: Rail- 0.41%
Southern Pacific Rail Corp. 1 750,000 18,375 .25
Conrail, Inc. 180,000 12,105 .16
Multi-Industry- 0.30%
U.S. INDUSTRIES, INC. 1 1,175,000 18,359 .24
Textron Inc. 40,000 2,740 .04
Tenneco Inc. 30,000 1,455 .02
Aerospace & Military Technology- 0.18%
Coltec Industries Inc 1 800,000 12,000 .16
Litton Industries, Inc. 1 40,000 1,550 .02
Energy Sources- 0.14%
NOBLE AFFILIATES, INC. 377,600 10,431 .14
Electronic Instruments- 0.14%
Applied Materials, Inc. 1 100,000 10,400 .14
Transportation: Shipping- 0.06%
Overseas Shipholding Group, Inc. 200,000 4,175 .06
Forest Products & Paper- 0.01%
Rayonier Inc. 12,500 480 .01
-------- --------
Other equity-type securities in initial period of 242,420 3.20
acquisition -------- ------
TOTAL EQUITY-TYPE SECURITIES (cost: $3,568,327,000) 6,084,508 80.86
-------- ------
Principal
Amount
SHORT-TERM SECURITIES (000)
- ------------------------------------- --------
Corporate Short-Term Notes- 18.58%
AMERICAN TELEPHONE AND TELEGRAPH CO. 5.64%-5.68%
DUE 10/4-10/13/95 $102,000 101,376 1.35
COCA-COLA FINANCE CO. 5.65%-5.82% DUE 9/8-10/19/95 98,750 98,381 1.31
E.I. DU PONT DE NEMOURS AND CO. 5.66%-5.71%
DUE 9/22-10/6/95 96,220 95,807 1.27
PFIZER INC 5.68%-5.71% DUE 9/5-9/25/95 92,700 92,449 1.23
GENERAL ELECTRIC CAPITAL CORP. 5.65%-5.72% DUE 9/8-10/19/95 84,700 84,319 1.12
J.C. PENNEY FUNDING CORP. 5.72%-5.74% DUE 9/14-10/12/95 83,600 83,361 1.10
WAL-MART STORES, INC. 5.70% DUE 10/24-10/25/95 80,000 79,308 1.06
FORD MOTOR CREDIT CO. 5.70%-5.73% DUE 9/20-11/2/95 74,500 73,956 .99
CENTRAL AND SOUTH WEST CORP. 5.73%-5.77% DUE 9/12-10/20/95 72,300 71,908 .96
ELI LILLY AND CO. 5.65%-5.70% DUE 9/18-10/24/95 70,000 69,599 .92
U S WEST COMMUNICATIONS 5.63%-5.70% DUE 9/13-9/20/95 68,500 68,310 .90
NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP.
5.70%-5.85% DUE 9/7-10/11/95 66,700 66,400 .88
EMERSON ELECTRIC CO. 5.69%-5.70% DUE 9/1-10/10/95 65,400 65,270 .87
AMERICAN EXPRESS CREDIT CORP. 5.65%-5.73%
DUE 9/11-10/19/95 58,900 58,701 .78
PROCTER & GAMBLE CO. 5.68%-5.70% DUE 9/21-10/26/95 57,000 56,640 .76
HEWLETT-PACKARD CO. 5.62%-5.67% DUE 10/24-11/28/95 56,500 55,796 .74
XEROX CORP. 5.70%-5.75% DUE 9/26-9/28/95 56,000 55,758 .73
CHEVRON OIL FINANCIAL CORP. 5.73% DUE 9/8/95 40,000 39,949 .53
SARA LEE CORP. 5.62%-5.70% DUE 9/14-9/27/95 40,500 40,347 .53
HERSHEY FOODS CORP. 5.68% DUE 10/17/95 21,000 20,842 .28
BALTIMORE GAS AND ELECTRIC CO. 5.73% DUE 9/6/95 20,000 19,981 .27
-------- ------
1,398,458 18.58
-------- ------
Federal Agency Short-Term Obligations- 0.65%
Federal National Mortgage Assn. 5.64%
due 9/12/95 49,000 48,910 .65
-------- ------
TOTAL SHORT-TERM SECURITIES (cost: $1,447,408,000) 1,447,368 19.23
-------- ------
TOTAL INVESTMENT SECURITIES (cost: $5,015,735,000) 7,531,876 100.09
Excess of payables over cash and receivables 6,986 .09
-------- ------
NET ASSETS $7,524,890 100.00%
========== =======
</TABLE>
1 Non-income-producing securities
See Notes to Financial Statements
<PAGE>
The Growth Fund of America
Financial Statements
<TABLE>
<CAPTION>
- --------------------------------------------- ---------------- ----------------
- -
Statement of Assets and Liabilities (dollars in
at August 31, 1995 thousands)
- --------------------------------------------- ---------------- ----------------
- -
<S> <C> <C>
Assets:
Investment securities at market
(cost: $5,015,735) $7,531,876
Cash 526
Receivables for-
Sales of investments $12,336
Sales of fund's shares 25,830
Dividends and accrued interest 3,199 41,365
---------------- ----------------
7,573,767
Liabilities:
Payables for-
Purchases of investments 38,374
Repurchases of fund's shares 4,671
Management services 2,358
Accrued expenses 3,474 48,877
---------------- ----------------
Net Assets at August 31, 1995-
Equivalent to $33.09 per share on
227,394,684 shares of $0.10 par value
capital stock outstanding (authorized
capital stock--400,000,000 shares) $7,524,890
================
- --------------------------------------------- ---------------- ----------------
- -
Statement of Operations (dollars in
for the year ended August 31, 1995 thousands)
- --------------------------------------------- ---------------- ----------------
- -
Investment Income:
Income:
Dividends $ 38,080
Interest 61,312 $ 99,392
----------------
Expenses:
Management services fee 22,942
Distribution expenses 14,418
Transfer agent fee 5,731
Reports to shareholders 535
Registration statement and prospectus 436
Postage, stationery and supplies 854
Directors' fees 130
Auditing and legal fees 47
Custodian fee 152
Other expenses 57 45,302
---------------- ----------------
Net investment income 54,090
----------------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 353,525
Net unrealized appreciation:
Beginning of year 1,461,272
End of year 2,516,141 1,054,869
---------------- ----------------
Net realized gain and unrealized
appreciation
on investments 1,408,394
----------------
Net Increase in Net Assets Resulting
from Operations $1,462,484
================
- --------------------------------------------- ---------------- ----------------
- -
Statement of Changes in Net Assets Year ended
August 31
(dollars in thousands) 1995 1994
- --------------------------------------------- ---------------- ----------------
- -
Operations:
Net investment income $ 54,090 $ 25,072
Net realized gain on investments 353,525 195,013
Net unrealized appreciation
on investments 1,054,869 77,980
---------------- ----------------
Net increase in net assets
resulting from operations 1,462,484 298,065
---------------- ----------------
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: 69,486,188
and 59,945,125 shares, respectively 1,994,344 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: 47,721,869
and 55,276,208 shares, respectively (1,349,094) (1,479,149)
---------------- ----------------
Net increase in net assets resulting from
capital share transactions 874,446 307,824
---------------- ----------------
Total Increase in Net Assets 2,097,412 409,570
Net Assets:
Beginning of year 5,427,478 5,017,908
---------------- ----------------
End of year (including undistributed
net investment income: $39,471
and $19,034, respectively) $7,524,890 $5,427,478
================ ================
</TABLE>
See Notes to Financial Statements
<PAGE>
Notes to Financial Statements
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 traded on a national securities exchange (or
reported on the NASDAQ national market) and securities traded in the
over-the-counter market are stated at the last reported sales price on the day
of valuation; other securities and securities for which no sale was reported on
that date are stated at the last quoted bid price.
Short-term securities with original or remaining maturities 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.
Investment securities and other assets and liabilities denominated in
non-U.S. currencies are recorded in the financial statements after translation
into U.S. dollars utilizing rates of exchange on the last business day of the
year. Purchases and sales of investment securities, income, and expenses are
calculated using the prevailing exchange rate as accrued. The fund does not
identify the portion of each amount shown in the fund's statement of operations
under the caption "Realized Gain and Unrealized Appreciation on Investments"
that arises from changes in non-U.S. currency exchange rates.
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 $152,000 includes $61,000 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 August 31, 1995, net unrealized appreciation on investments for book
and federal income tax purposes aggregated $2,516,141,000, of which
$2,630,540,000 related to appreciated securities and $114,399,000 related to
depreciated securities. During the year ended August 31, 1995, the fund
realized, on a tax basis, a net capital gain of $353,524,000 on securities
transactions. The cost of portfolio securities for book and federal income tax
purposes was $5,015,735,000 at August 31, 1995.
3. The fee of $22,942,000 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 year ended August 31, 1995,
distribution expenses under the Plan were $14,418,000. As of August 31, 1995,
accrued and unpaid distribution expenses were $3,336,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $5,731,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $4,384,000 (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 August 31, 1995, aggregate amounts deferred were $107,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Directors and officers of the fund
are or may be considered to be affiliated with CRMC, AFS, and AFD. No such
persons received any remuneration directly from the fund.
4. As of August 31, 1995, accumulated undistributed net realized gain on
investments was $325,984,000 and additional paid-in capital was $4,620,554,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $1,531,889,000 and $1,324,192,000, respectively,
during the year ended August 31, 1995.
Net realized currency gains on dividends were $1,000 for the year ended
August 31, 1995.
Tax Information (unaudited)
We are required to advise you within 60 days of the fund's fiscal year end
regarding the federal tax status of distributions received by shareholders
during such fiscal year. Accordingly, the distributions made during the fiscal
year by the fund were earned from the following sources:
Dividends and Distributions
per Share
-----------------------------------------------
Dividends from From Net From Net
To Shareholders Net Investment Realized Short- Realized Long-
of Record Payment Date Income Term Gains Term Gains
- -----------------------------------------------------------------------------
December 21, December 22, $0.17 --- $1.04
1994 1994
Corporate shareholders may deduct up to 70% of qualifying dividends received
during the year. For purposes of computing this exclusion, 24% of the
dividends paid by the fund from net investment income represents qualifying
dividends.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans, and 403(b) plans need not be reported as taxable income.
However, many plan retirement trusts may need this information for their annual
information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099 DIV OR OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 1996 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR RESPECTIVE 1995 TAX RETURNS. SHAREHOLDERS
SHOULD CONSULT THEIR TAX ADVISERS.
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Per-Share Data and Ratios Year
ended
August 31
1995 1994 1993 1992 1991
------- ------- --------- ------- -------
Net Asset Value, Beginning of $27.62 $27.15 $22.04 $22.42 $18.43
Year
------- ------- --------- ------- -------
Income from Investment
Operations:
Net investment income .25 .13 .13 .23 .43
Net realized and unrealized
gain
on investments 6.43 1.43 5.26 .81 4.86
------- ------- --------- ------- -------
Total income from
investment operations 6.68 1.56 5.39 1.04 5.29
------- ------- --------- ------- -------
Less Distributions:
Dividends from net
investment
income (.17) (.12) (.19) (.35) (.48)
Distributions from net
realized
gains (1.04) (.97) (.09) (1.07) (.82)
------- ------- --------- ------- -------
Total distributions (1.21) (1.09) (.28) (1.42) (1.30)
------- ------- --------- ------- --------
Net Asset Value, End of Year $33.09 $27.62 $27.15 $22.04 $22.42
======= ======= ========= ======== ========
Total Return* 25.56% 5.98% 24.64% 4.91% 30.55%
Ratios/Supplemental Data:
Net assets, end of year (in
millions) $7,525 $5,427 $5,018 $3,700 $2,903
Ratio of expenses to
average net
assets .75% .78% .77% .79% .83%
Ratio of net income to
average net
assets .90% .49% .56% 1.11% 2.13%
Portfolio turnover rate 26.90% 24.77% 25.23% 10.64% 18.92%
</TABLE>
*This was calculated without
deducting a sales charge. The
maximum sales charge is 5.75% of
the fund's offering price.
<PAGE>
Independent Auditors' Report
To the Board of Directors and Shareholders of
The Growth Fund of America, Inc.:
We have audited the accompanying statement of assets and liabilities of The
Growth Fund of America, Inc., including the schedule of portfolio investments
as of August 31, 1995, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years in
the period then ended, and the per-share data and ratios for each of the five
years in the period then ended. These financial statements and the per-share
data and ratios are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and the
per-share data and ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
per-share data and ratios are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned at August 31, 1995 by correspondence with the custodian and brokers;
where replies were not received from brokers, we performed other procedures.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and per-share data and ratios
referred to above present fairly, in all material respects, the financial
position of The Growth Fund of America, Inc. at August 31, 1995, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the per-share data and ratios
for each of the five years in the period then ended, in conformity with
generally accepted accounting principles.
/s/Deloitte & Touche LLP
Los Angeles, California
September 22, 1995
<PAGE>
OTHER INFORMATION
Item 24. Financial Statements and Exhibits.
Included in Prospectus - Part A
Financial Highlights
Included in Statement of Additional Information - Part B
Investment Portfolio
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Selected Per-Share Data and Ratios
Independent Auditors' Report
(b) Exhibits.
1. On file (see SEC file nos. 811-862 and 2-14728)
2. On file (see SEC file nos. 811-862 and 2-14728)
3. None
4. On file (see SEC file nos. 811-862 and 2-14728)
5. On file (see SEC file nos. 811-862 and 2-14728)
6. On file (see SEC file nos. 811-862 and 2-14728)
7. None
8. On file (see SEC file nos. 811-862 and 2-14728)
9. On file (see SEC file nos. 811-862 and 2-14728)
10. Not applicable to this filing
11. Consent of Independent Auditors
12. None
13. None
14. On file (see SEC file nos. 811-862 and 2-14728)
15. On file (see SEC file nos. 811-862 and 2-14728)
16. Updates to previously filed schedule for computation of each performance
quotation provided in the Registration Statement in response to Item 22 (see
SEC files nos. 811-862 and 2-14728)
17. EX-27 Financial Data Schedule
Item 25. Persons Controlled by or under Common Control with Registrant.
None.
Item 26. Number of Holders of Securities.
As of September 30, 1995
<TABLE>
<CAPTION>
<S> <C>
Title of Class Number of Record-Holders
Common Stock 438,159
($0.10 Par Value)
</TABLE>
Item 27. Indemnification.
Registrant is a joint-insured under an Investment Advisor/Mutual Fund Errors
and Omissions Policy written by American International Surplus Lines Insurance
Company, Chubb Custom Insurance Company, and ICI Mutual which insures its
officers and directors against certain liabilities. However, in no event will
Registrant maintain insurance to indemnify any such person for any act for
which the Registrant itself is not permitted to indemnify the individual.
The Articles of Incorporation state:
The Corporation shall indemnify (a) its directors to the full extent provided
by the general laws of the State of Maryland now or hereafter in force,
including the advance of expenses under the procedures provided by such laws;
(b) its officers to the same extent it shall indemnify its directors; and (c)
its officers who are not directors to such further extent as shall be
authorized by the Board of Directors and be consistent with law. The foregoing
shall not limit the authority of the Corporation to indemnify other employees
and agents consistent with law.
The By-Laws of the Corporation state:
Section 5.01. Any person who was or is a party or is threatened to
be made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative, by reason
of the fact that he is or was a director, officer, employee or agent of the
Corporation, or is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, may be indemnified by the Corporation
against expenses (including attorneys' fees), judgments, fines and amounts paid
in settlement actually and reasonably incurred by him in connection with such
action, suit or proceeding in the manner and on the terms provided by, and to
the fullest extent authorized by, applicable state law, and shall be
indemnified by the Corporation against such expenses, judgments, fines, and
amounts in the manner and to the fullest extent required by applicable state
law. However, no indemnification may be made under this section in the absence
of a judicial or administrative determination absolving the prospective
indemnitee of liability to the Corporation or its security holders unless,
based upon a review of all material facts, (1) a majority of a quorum of
directors who are neither interested persons of the Corporation nor parties to
the proceeding, or (2) independent legal counsel in a written opinion,
concludes that such person was not guilty of willful misfeasance, bad faith,
gross negligence, or reckless disregard of the duties initiated in the conduct
of his office.
Section 5.02. No expenses incurred by a director, officer,
employee, or agent of the Corporation in defending a civil or criminal action,
suit, or proceeding to which he is a party may be paid or reimbursed by the
Corporation in advance of the final disposition of such action, suit, or
proceeding unless:
(1) One of the following determines, on the basis of the facts then known to
it, that there is reason to believe that indemnification would be permissible:
(a) a majority of a quorum of disinterested non-party directors, or, if such
a quorum cannot be obtained, a majority of a committee of two or more
disinterested non-party directors duly designated to act in the matter by a
majority vote of the full board;
(b) special legal counsel selected by such a committee or such a quorum of
disinterested non-party directors; or
(c) the stockholders; and
(2) the Corporation receives the following from the prospective recipient of
the advance:
(a) a written affirmation of his good faith belief that he met the standard
of conduct necessary for indemnification; and
(b) an undertaking to repay the advance if it is ultimately determined that
he is not entitled to indemnification under this Article.
Section 5.03. The Corporation is authorized to purchase and
maintain insurance on behalf of any person who is or was a director, officer,
employee or agent of the Corporation, or is or was serving at the request of
the Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise against any
liability asserted against him and incurred by him in any such capacity, or
arising out of his status as such, whether or not the Corporation would have
the power to indemnify him against such liability under the provisions of this
Article. Anything in this Article V to the contrary notwithstanding, however,
the Corporation shall not pay for insurance which protects any director or
officer against liabilities arising from action involving willful misfeasance,
bad faith, gross negligence, or reckless disregard of the duties involved in
the conduct of his office; provided, that any such insurance may cover any of
such categories if it provides only for payment to the Corporation and/or third
parties of any damages caused by a director or officer, and also provides that
the insurance company would be subrogated to the rights of the Corporation to
recover from the director or officer.
Item 28. Business and Other Connections of Investment Adviser.
None.
Item 29. Principal Underwriters.
(a) American Funds Distributors, Inc. is also the Principal Underwriter of
shares of: AMCAP Fund, Inc., American Balanced Fund, Inc., The American Funds
Income Series, The American Funds Tax-Exempt Series I, The American Funds
Tax-Exempt Series II, American High-Income Municipal Bond Fund, Inc., American
High-Income Trust, American Mutual Fund, Inc., The Bond Fund of America, Inc.,
Capital Income Builder, Inc., Capital World Bond Fund, Inc., Capital World
Growth and Income Fund, Inc., The Cash Management Trust of America, EuroPacific
Growth Fund, Fundamental Investors, Inc., The Income Fund of America, Inc.,
Intermediate Bond Fund of America, The Investment Company of America, Limited
Term Tax-Exempt Bond Fund of America, The New Economy Fund, New Perspective
Fund, Inc., SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of America,
Inc., The Tax-Exempt Money Fund of America, The U.S. Treasury Money Fund of
America and Washington Mutual Investors Fund, Inc.
<TABLE>
<CAPTION>
(b) (1) (2) (3)
NAME AND PRINCIPAL POSITIONS AND OFFICES POSITIONS AND OFFICES
BUSINESS ADDRESS WITH UNDERWRITER WITH REGISTRANT
<S> <C> <C> <C>
# David L. Abzug Assistant Vice President None
John A. Agar Regional Vice President None
1501 N. University Drive
Little Rock, AR 72207
Robert B. Aprison Regional Vice President None
2983 Brynwood Drive
Madison, WI 53711
& Richard L. Armstrong Assistant Vice President None
* William W. Bagnard Vice President None
Steven L. Barnes Vice President None
8000 Town Line Avenue So.
Suite 204
Minneapolis, MN 55438
Michelle A. Bergeron Regional Vice President None
1190 Rockmart Circle
Kennesaw, GA 30144
Joseph T. Blair Vice President None
27 Drumlin Road
West Simsbury, CT 06092
Ian B. Bodell Vice President None
3100 West End Avenue, Suite 870
Nashville, TN 37215
Mick L. Brethower Vice President None
108 Hagen Court
Georgetown, TX 78628
C. Alan Brown Regional Vice President None
4619 McPherson Avenue
St. Louis, MO 63108
* Daniel C. Brown Senior Vice President, Director None
@ J. Peter Burns Vice President None
Brian C. Casey Regional Vice President None
9508 Cable Drive
Kensington, MD 20895
Victor C. Cassato Vice President None
999 Green Oaks Drive
Littleton, CO 80121
Christopher J. Cassin Regional Vice President None
231 Burlington
Clarendon Hills, IL 60514
Denise M. Cassin Regional Vice President None
1425 Vallejo, #203
San Francisco, CA 94109
* Larry P. Clemmensen Treasurer, Director None
* Kevin G. Clifford Senior Vice President None
Ruth M. Collier Vice President None
145 W. 67th Street #12K
New York, NY 10023
Thomas E. Cournoyer Vice President None
2333 Granada Blvd.
Coral Gables, FL 33134
Douglas A. Critchell Vice President None
1101 Vermont Avenue. Suite 100
Washington, D.C. 20005
* Carl D. Cutting Vice President None
Michael A. Dilella Vice President None
P.O. Box 661
Ramsey, NJ 07446
G. Michael Dill Senior Vice President None
3622 East 87th Street
Tulsa, OK 74137
Kirk D. Dodge Vice President None
2617 Salisbury Road
Ann Arbor, MI 48103
Peter J. Doran Senior Vice President None
1205 Franklin Avenue
Garden City, NY 11530
* Michael J. Downer Secretary None
Robert W. Durbin Vice President None
74 Sunny Lane
Tiffin, OH 44883
+ Lloyd G. Edwards Vice President None
@ Richard A. Eychner Vice President None
* Paul H. Fieberg Senior Vice President None
John R. Fodor Regional Vice President None
5 Marlborough Street
Suite 51
Boston, MA 02116
* Mark P. Freeman, Jr. President, Director None
Clyde E. Gardner Vice President None
Rt. 2, Box 3162
Osage Beach, MO 65065
# Evelyn K. Glassford Vice President None
Jeffrey J. Greiner Regional Vice President None
5898 Heather Glen Court
Dublin, OH 43017
* Paul G. Haaga, Jr. Director Senior Vice
President
David E. Harper Vice President None
R.D. 1, Box 210, Rte. 519
Frenchtown, NJ 08825
Ronald R. Hulsey Regional Vice President None
6744 Avalon
Dallas, TX 75214
* Robert L. Johansen Vice President, Controller None
Victor J. Kriss, Jr. Senior Vice President None
P.O. Box 274
Surfside, CA 90743
Arthur J. Levine Vice President None
12558 Highlands Place
Fishers, IN 46038
# Karl A. Lewis Assistant Vice President None
T. Blake Liberty Regional Vice President None
12585-E
East Tennessee Circle
Aurora, CO 80012
* Heather A. Maier Assistant Vice President, None
Institutional Investment Service
Division
Stephen A. Malbasa Regional Vice President None
13405 Lake Shore Blvd.
Cleveland, OH 44110
Steven M. Markel Senior Vice President None
5241 S. Race Street
Littleton, CO 80121
* John C. Massar Senior Vice President None
* E. Lee McClennahan Senior Vice President None
Laurie B. McCurdy Regional Vice President None
6008 E. Anderson Drive
Scottsdale, AZ 85255
& John V. McLaughlin Senior Vice President None
Terry W. McNabb Vice President None
2002 Barrett Station Rd.
St. Louis, MO 63131
* R. William Melinat Vice President, Institutional None
Investment Services Division
David R. Murray Regional Vice President None
25701 S.E. 32nd Place
Issaquah, WA 98027
Stephen S. Nelson Vice President None
7215 Trevor Court
Charlotte, NC 28226
* Barbara G. Nicolich Assistant Vice President, None
Institutional Investment Services
Division
William E. Noe Regional Vice President None
304 River Oaks Road
Brentwood, TN 37027
Peter A. Nyhus Regional Vice President None
3084 Wilds Ridge Court
Prior Lake, MN 55372
Eric P. Olson Regional Vice President None
62 Park Drive
Glenview, IL 60025
Fredric Phillips Regional Vice President None
32 Ridge Avenue
Newton Centre, MA 02161
# Candance D. Pilgram Assistant Vice President None
Carl S. Platou Regional Vice President None
4021 96th Avenue, SE
Mercer Island, WA 98040
* John O. Post, Jr. Vice President None
Steven J. Reitman Vice President None
212 The Lane
Hinsdale, IL 60521
Brian A. Roberts Regional Vice President None
12025 Delmahoy Drive
Charlotte, NC 28277
* George L. Romine, Jr. Vice President, Institutional None
Investment Services Division
George S. Ross Vice President None
55 Madison Avenue
Morristown, NJ 07960
* Julie D. Roth Vice President None
Douglas F. Rowe Regional Vice President None
104 River Road
Georgetown, TX 78628
Christopher S. Rowey Regional Vice President None
9417 Beverlywood Street
Los Angeles, CA 90034
Dean B. Rydquist Vice President None
1080 Bay Pointe Crossing
Alpharetta, GA 30202
Richard R. Samson Vice President None
4604 Glencoe Avenue, #4
Marina del Rey, CA 90292
Joe D. Scarpitti Regional Vice President None
25760 Kensington Drive
Westlake, OH 44145
* R. Michael Shanahan Chairman None
David W. Short Senior Vice President None
1000 RIDC Plaza, Ste. 212
Pittsburgh, PA 15238
* Victor S. Sidhu Vice President, None
Institutional Investment Services
Division
William P. Simon, Jr. Vice President None
554 Canterbury Lane
Berwyn, PA 19312
* John C. Smith Assistant Vice President, None
Institutional Investment Services
Division
* Mark S. Smith Senior Vice President, None
Director
* Mary E. Smith Assistant Vice President, None
Institutional Investment Services
Division
Rodney G. Smith Regional Vice President None
2350 Lakeside Blvd., #850
Richardson, TX 75082
Nicholas D. Spadaccini Regional Vice President None
855 Markley Woods Way
Cincinnati, OH 45230
Daniel S. Spradling Senior Vice President None
4 West 4th Avenue, Suite 406
San Mateo, CA 94402
Craig R. Strauser Regional Vice President None
17040 Summer Place
Lake Oswego, OR 97035
Francis N. Strazzeri Regional Vice President None
31641 Saddletree Drive
Westlake Village, CA 91361
& James P. Toomey Assistant Vice President None
+ Christopher E. Trede Assistant Vice President None
George F. Truesdail Vice President None
400 Abbotsford Court
Charlotte, NC 28270
Scott W. Ursin-Smith Regional Vice President None
606 Glenwood Avenue
Mill Valley, CA 94941
@ Andrew J. Ward Vice President None
* David M. Ward Assistant Vice President, None
Institutional Investment Services
Division
Thomas E. Warren Regional Vice President None
4001 Crockers Lake Blvd., #1012
Sarasota, FL 34238
# J. Kelly Webb Senior Vice President None
Gregory J. Weimer Regional Vice President None
125 Surrey Drive
Canonsburg, PA 15317
# Timothy W. Weiss Director None
N. Dexter Williams Vice President None
Four Embarcadero Center
San Francisco, CA 94111
Timothy J. Wilson Regional Vice President None
113 Farmview Place
Venetia, PA 15367
* Marshall D. Wingo Senior Vice President None
* Robert L. Winston Senior Vice President, None
Director
William R. Yost Regional Vice President None
9320 Overlook Trail
Eden Prairie, MN 55347
Janet Young Regional Vice President None
1616 Vermont
Houston, TX 77006
</TABLE>
* Business Address, 333 South Hope Street, Los Angeles, CA 90071
# Business Address, 135 South State College Blvd., Brea, CA 92621
& Business Address, 8000 IH-10, Suite 1400, San Antonio, TX 78230
@ Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
+ Business Address, 8332 Woodfield Crossing Boulevard, Indianapolis, IN 46240
(c) None.
Item 30. Location of Accounts and Records.
Accounts, books and other records required by Rules 31a-1 and 31a-2 under the
Investment Company Act of 1940, are maintained and held in the offices of its
investment adviser, Capital Research and Management Company, 333 South Hope
Street, Los Angeles, California 90071, and/or 135 South State College
Boulevard, Brea, California 92621, and/or the offices of the Registrant, Four
Embarcadero Center (Suite 1800), San Francisco, California 94111.
Registrant's records covering shareholder accounts are maintained and kept by
the fund's transfer agent, American Funds Service Company, 135 South State
College Boulevard, Brea, California 92621, 8332 Woodfield Crossing Boulevard,
Indianapolis, IN 46240, 8000 IH-10, Suite 1400, San Antonio, Texas 78230 and
5300 Robin Hood Road, Norfolk, VA 23513.
Registrant's records covering portfolio transactions are maintained and kept
by the fund's custodian, The Chase Manhattan Bank, N.A., One Chase Manhattan
Plaza, New York, New York 10081.
Item 31. Management Services.
None.
Item 32. Undertakings.
As reflected in the prospectus, the fund undertakes to provide each person to
whom a prospectus is delivered with a copy of the fund's latest annual report
to shareholders, upon request and without charge.
SIGNATURE OF REGISTRANT
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 the Registrant certifies that it meets all of the
requirements for effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City and County of San Francisco, and State of California on
the 31st day of October, 1995.
THE GROWTH FUND OF AMERICA, INC.
By
Patrick F. Quan, Secretary
ATTEST:
Barbara A. Preddy
Pursuant to the requirements of the Securities Act of 1933, this amendment to
its registration statement has been signed below on October 31, 1995 by the
following persons in the capacities indicated.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Signature Title
(1) Principal Executive Officer: President
(James F. Rothenberg)
(2) Principal Financial Officer and Treasurer
Principal Accounting Officer:
(Mary C. Cremin)
(3) Directors:
Robert A. Fox* Director
Roberta L. Hazard* Director
Ernest T. Hinshaw, Jr.* Director
Richard H. M. Holmes* Director
Leonade D. Jones* Director
John G. McDonald* Director
Theodore D. Nierenberg* Director
Director
(James W. Ratzlaff)
Henry E. Riggs* Director
Walter P. Stern* Chairman
Patricia K. Woolf* Director
</TABLE>
*By
Patrick F. Quan, Attorney-in-Fact
Counsel reports that the amendment does not contain disclosures that would
make the amendment ineligible for effectiveness under the provisions of Rule
485(b).
/s/ Michael J. Downer, Counsel
INDEPENDENT AUDITORS' CONSENT
We consent to (a) the use in this Post-Effective Amendment No.63 to
Registration Statement
No. 2-14728 of Growth Fund of America, Inc. on Form N-1A of our report dated
September 22, 1995 appearing in the Financial Statements, which are included in
Part B, the Statement of Additional Information of such Registration Statement,
(b) the reference to us under the heading "General Information" in such
Statement of Additional Information, and (c) the reference to us under the
heading "Financial Highlights" in the Prospectus, which is a part of such
Registration Statement.
/s/DELOITTE & TOUCHE LLP
Los Angeles, California
October 20, 1995
EXHIBIT 16
SCHEDULE FOR COMPUTATION OF EACH PERFORMANCE QUOTATION
PROVIDED IN THE REGISTRATION STATEMENT
(1) ENDING REDEMPTION VALUE AND TOTAL RETURN
Value of an initial investment at the end of a period and total return for the
period are computed as set forth below.
(A) INITIAL INVESTMENT divided by
PUBLIC OFFERING PRICE FOR ONE SHARE AT
BEGINNING OF PERIOD equals
NUMBER OF SHARES INITIALLY PURCHASED
(B) NUMBER OF SHARES INITIALLY PURCHASED plus
NUMBER OF SHARES ACQUIRED AT NET ASSET
VALUE THROUGH REINVESTMENT OF DIVIDENDS
AND CAPITAL GAIN DISTRIBUTIONS DURING
PERIOD equals
NUMBER OF SHARES PURCHASED DURING PERIOD
(C) NUMBER OF SHARES PURCHASED DURING PERIOD multiplied by
NET ASSET VALUE OF ONE SHARE AS OF THE LAST
DAY OF THE PERIOD equals
VALUE OF INVESTMENT AT END OF PERIOD
(D) VALUE OF INVESTMENT AT END OF PERIOD divided by
INITIAL INVESTMENT minus one
and then
multiplied by
100 equals
TOTAL RETURN FOR THE PERIOD EXPRESSED AS A
PERCENTAGE
(2) AVERAGE ANNUAL TOTAL RETURN
Average annual total return quotations for the 1-, 5-, and 10-year periods
ended on the date of the most recent balance sheet are computed according to
the formula set forth below.
P(1+T)/n/ = ERV
WHERE: P = a hypothetical initial investment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value of a hypothetical $1,000 investment as of the
end of 1-, 5-, and 10-year periods (computed in accordance with the formula
shown in (1), above)
THUS:
AVG. ANNUAL TOTAL RETURN AT PUBLIC OFFERING PRICE:
1 Year Total Return 1,000(1+T)/1/ = 1,183.17
T = +18.32%
5 Year Avg. Annual Total Return 1,000(1+T)/5/ = 2,141.35
T = +16.45%
10 Year Avg. Annual Total Return 1,000(1+T)/10/ = 4,090.16
T = +15.13%
Hypothetical illustrations based on $1,000 and $10,000 initial investments used
to obtain ending values over various time periods are attached. Illustrations
of $2,000 per year which show the benefits of systematic investing are also
included.
(3) YIELD
Yield is computed as set forth below.
(A) DIVIDENDS AND INTEREST EARNED DURING
THE PERIOD minus
EXPENSES ACCRUED FOR THE PERIOD equals
NET INVESTMENT INCOME
(B) NET INVESTMENT INCOME divided by
AVERAGE DAILY NUMBER OF SHARES OUTSTANDING
DURING THE PERIOD THAT WERE ENTITLED
TO RECEIVE DIVIDENDS equals
NET INVESTMENT INCOME PER SHARE EARNED
DURING THE PERIOD
(C) NET INVESTMENT INCOME PER SHARE EARNED
DURING THE PERIOD divided by
MAXIMUM OFFERING PRICE PER SHARE ON
LAST DAY OF THE PERIOD equals
CURRENT MONTH'S YIELD
(D) CURRENT MONTH'S YIELD plus one, raised
to the sixth
power equals
SEMIANNUAL COMPOUNDED YIELD
(E) SEMIANNUAL COMPOUNDED YIELD minus one,
multiplied by
two equals
ANNUALIZED RATE
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/94 1000.00 26.89 0.00 % 37.189 26.890 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/95 1000 6 6 1006 39 1234 51 1285 8 1293.22 38.976
TOTAL $ 39
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/90 1000.00 17.42 0.00 % 57.405 17.420 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/91 1000 28 28 1028 47 1281 59 1340 34 1374.39 61.604
9/30/92 1000 22 50 1050 66 1285 129 1414 57 1471.92 65.740
9/30/93 1000 12 62 1062 6 1562 164 1726 83 1809.87 66.515
9/30/94 1000 8 70 1070 65 1544 228 1772 91 1863.37 69.296
9/30/95 1000 12 82 1082 72 1905 377 2282 127 2409.70 72.625
TOTAL $ 256
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/85 1000.00 13.66 0.00 % 73.206 13.660 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/86 1000 16 16 1016 64 1173 81 1254 20 1274.63 79.565
9/30/87 1000 43 59 1059 63 1515 189 1704 78 1782.22 86.139
9/30/88 1000 3 62 1062 95 1331 278 1609 72 1681.56 92.495
9/30/89 1000 29 91 1091 55 1713 433 2146 132 2278.36 97.366
9/30/90 1000 59 150 1150 194 1275 490 1765 150 1915.09 109.936
9/30/91 1000 53 203 1203 90 1633 740 2373 259 2632.11 117.979
9/30/92 1000 41 244 1244 126 1639 876 2515 303 2818.90 125.900
9/30/93 1000 24 268 1268 11 1992 1078 3070 396 3466.15 127.385
9/30/94 1000 15 283 1283 124 1969 1193 3162 406 3568.60 132.711
9/30/95 1000 23 306 1306 138 2429 1654 4083 531 4614.87 139.086
TOTAL $ 960
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/94 1000.00 28.53 5.75 % 35.051 26.890 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/95 1000 6 6 1006 36 1163 48 1211 7 1218.87 36.735
TOTAL $ 36
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/90 1000.00 18.48 5.75 % 54.113 17.420 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/91 1000 26 26 1026 44 1207 56 1263 32 1295.56 58.071
9/30/92 1000 20 46 1046 62 1212 122 1334 53 1387.51 61.970
9/30/93 1000 12 58 1058 6 1472 154 1626 80 1706.09 62.701
9/30/94 1000 8 66 1066 61 1455 215 1670 86 1756.51 65.322
9/30/95 1000 11 77 1077 68 1795 355 2150 121 2271.50 68.460
TOTAL $ 241
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
10/01/85 1000.00 14.49 5.75 % 69.013 13.660 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/86 1000 15 15 1015 60 1106 77 1183 18 1201.61 75.007
9/30/87 1000 41 56 1056 59 1428 179 1607 73 1680.11 81.204
9/30/88 1000 3 59 1059 89 1255 262 1517 68 1585.21 87.195
9/30/89 1000 27 86 1086 51 1615 408 2023 124 2147.84 91.788
9/30/90 1000 56 142 1142 183 1202 462 1664 141 1805.37 103.638
9/30/91 1000 50 192 1192 85 1540 698 2238 243 2481.32 111.220
9/30/92 1000 39 231 1231 119 1545 826 2371 286 2657.42 118.688
9/30/93 1000 23 254 1254 11 1878 1016 2894 373 3267.59 120.088
9/30/94 1000 14 268 1268 116 1856 1125 2981 383 3364.18 125.109
9/30/95 1000 21 289 1289 130 2290 1559 3849 501 4350.50 131.118
TOTAL $ 903
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
12/01/73 1000.00 4.03 0.00 % 248.139 4.030 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/74 1000 0 0 1000 0 787 0 787 0 786.60 248.139
9/30/75 1000 38 38 1038 0 958 0 958 48 1006.02 260.626
9/30/76 1000 30 68 1068 0 1087 0 1087 87 1174.98 268.260
9/30/77 1000 0 68 1068 0 1251 0 1251 101 1352.03 268.260
9/30/78 1000 27 95 1095 0 1908 0 1908 184 2092.27 272.077
9/30/79 1000 0 95 1095 0 2305 0 2305 222 2527.60 272.077
9/30/80 1000 33 128 1128 0 3162 0 3162 348 3510.62 275.992
9/30/81 1000 58 186 1186 0 3244 0 3244 399 3643.03 370.226
9/30/82 1000 178 364 1364 0 3554 0 3554 665 4219.49 388.893
9/30/83 1000 243 607 1607 0 4965 0 4965 1271 6236.47 436.117
9/30/84 1000 174 781 1781 118 4382 108 4490 1282 5772.19 457.384
9/30/85 1000 133 914 1914 50 4743 175 4918 1539 6457.00 472.694
9/30/86 1000 104 1018 2018 411 5562 730 6292 1938 8230.24 513.748
9/30/87 1000 281 1299 2299 406 7183 1488 8671 2836 11507.65 556.194
9/30/88 1000 22 1321 2321 612 6312 2027 8339 2518 10857.70 597.233
9/30/89 1000 185 1506 2506 352 8124 3092 11216 3495 14711.21 628.684
9/30/90 1000 384 1890 2890 1251 6048 3384 9432 2933 12365.50 709.845
9/30/91 1000 341 2231 3231 582 7746 5064 12810 4185 16995.20 761.775
9/30/92 1000 267 2498 3498 815 7774 5945 13719 4482 18201.28 812.920
9/30/93 1000 154 2652 3652 73 9447 7309 16756 5624 22380.44 822.508
9/30/94 1000 99 2751 3751 798 9336 8046 17382 5659 23041.96 856.897
9/30/95 1000 146 2897 3897 891 11520 11102 22622 7175 29797.56 898.058
TOTAL $ 6359
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
12/01/73 1000.00 4.28 5.75 % 233.645 4.030 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
9/30/74 1000 0 0 1000 0 741 0 741 0 740.65 233.645
9/30/75 1000 36 36 1036 0 902 0 902 45 947.25 245.401
9/30/76 1000 29 65 1065 0 1023 0 1023 83 1106.35 252.591
9/30/77 1000 0 65 1065 0 1178 0 1178 95 1273.06 252.591
9/30/78 1000 26 91 1091 0 1797 0 1797 173 1970.06 256.185
9/30/79 1000 0 91 1091 0 2171 0 2171 208 2379.96 256.185
9/30/80 1000 31 122 1122 0 2978 0 2978 327 3305.56 259.871
9/30/81 1000 55 177 1177 0 3054 0 3054 375 3430.23 348.600
9/30/82 1000 167 344 1344 0 3346 0 3346 627 3973.02 366.177
9/30/83 1000 229 573 1573 0 4675 0 4675 1197 5872.19 410.643
9/30/84 1000 164 737 1737 111 4126 102 4228 1207 5435.02 430.667
9/30/85 1000 125 862 1862 47 4466 164 4630 1449 6079.82 445.082
9/30/86 1000 98 960 1960 387 5237 687 5924 1825 7749.48 483.738
9/30/87 1000 264 1224 2224 382 6764 1401 8165 2670 10835.44 523.704
9/30/88 1000 21 1245 2245 576 5943 1909 7852 2371 10223.45 562.346
9/30/89 1000 174 1419 2419 332 7650 2911 10561 3290 13851.89 591.961
9/30/90 1000 361 1780 2780 1178 5695 3186 8881 2762 11643.20 668.381
9/30/91 1000 321 2101 3101 548 7293 4768 12061 3941 16002.45 717.277
9/30/92 1000 251 2352 3352 767 7320 5598 12918 4220 17138.09 765.435
9/30/93 1000 145 2497 3497 69 8895 6882 15777 5296 21073.14 774.463
9/30/94 1000 93 2590 3590 751 8791 7576 16367 5329 21696.04 806.844
9/30/95 1000 137 2727 3727 839 10847 10453 21300 6757 28057.04 845.601
TOTAL $ 5987
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/94 1000.00 29.31 5.75 % 34.118 27.620 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/95 1000 6 6 1006 35 1129 47 1176 7 1183.17 35.756
TOTAL $ 35
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/90 1000.00 19.55 5.75 % 51.151 18.430 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/91 1000 25 25 1025 42 1147 53 1200 30 1230.70 54.893
8/31/92 1000 19 44 1044 59 1127 113 1240 51 1291.06 58.578
8/31/93 1000 11 55 1055 5 1389 145 1534 75 1609.15 59.269
8/31/94 1000 7 62 1062 57 1413 209 1622 83 1705.45 61.747
8/31/95 1000 11 73 1073 64 1693 335 2028 113 2141.35 64.713
TOTAL $ 227
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/85 1000.00 15.37 5.75 % 65.062 14.490 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/86 1000 14 14 1014 57 1116 77 1193 19 1212.71 70.712
8/31/87 1000 20 34 1034 56 1380 173 1553 51 1604.01 75.625
8/31/88 1000 22 56 1056 84 1133 237 1370 61 1431.96 82.202
8/31/89 1000 25 81 1081 49 1500 379 1879 116 1995.40 86.531
8/31/90 1000 53 134 1134 172 1199 460 1659 141 1800.65 97.702
8/31/91 1000 47 181 1181 80 1459 661 2120 230 2350.74 104.850
8/31/92 1000 37 218 1218 112 1434 767 2201 265 2466.03 111.889
8/31/93 1000 21 239 1239 10 1766 956 2722 351 3073.62 113.209
8/31/94 1000 14 253 1253 110 1797 1089 2886 371 3257.56 117.942
8/31/95 1000 20 273 1273 123 2153 1466 3619 471 4090.16 123.607
TOTAL $ 853
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/85 10000.00 15.37 5.75 % 650.618 14.490 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/86 10000 143 143 10143 566 11158 774 11932 195 12127.23 707.127
8/31/87 10000 198 341 10341 559 13800 1726 15526 514 16040.25 756.259
8/31/88 10000 220 561 10561 842 11334 2367 13701 618 14319.87 822.036
8/31/89 10000 255 816 10816 485 15003 3788 18791 1163 19954.42 865.326
8/31/90 10000 528 1344 11344 1722 11991 4603 16594 1412 18006.77 977.036
8/31/91 10000 469 1813 11813 801 14587 6611 21198 2309 23507.68 1048.514
8/31/92 10000 367 2180 12180 1122 14340 7668 22008 2652 24660.78 1118.910
8/31/93 10000 213 2393 12393 101 17664 9560 27224 3512 30736.71 1132.107
8/31/94 10000 136 2529 12529 1098 17970 10889 28859 3717 32576.16 1179.441
8/31/95 10000 201 2730 12730 1227 21529 14657 36186 4716 40902.42 1236.096
TOTAL $ 8523
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DOW JONES INDUSTRIAL AVERAGE
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/85 10000.00 1334.01 0.00 % 7.496 1334.010 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/86 10000 498 498 10498 0 14230 0 14230 599 14829.83 7.812
8/31/87 10000 549 1047 11047 0 19962 0 19962 1543 21505.98 8.076
8/31/88 10000 605 1652 11652 0 15229 0 15229 1759 16988.66 8.362
8/31/89 10000 783 2435 12435 0 20519 0 20519 3333 23852.57 8.714
8/31/90 10000 926 3361 13361 0 19598 0 19598 4067 23665.19 9.052
8/31/91 10000 912 4273 14273 0 22815 0 22815 5746 28561.14 9.384
8/31/92 10000 907 5180 15180 0 24417 0 24417 7088 31505.09 9.672
8/31/93 10000 997 6177 16177 0 27370 0 27370 9025 36395.66 9.968
8/31/94 10000 1041 7218 17218 0 29335 0 29335 10765 40100.81 10.247
8/31/95 10000 1148 8366 18366 0 34561 0 34561 14002 48563.03 10.533
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD & POOR'S 500 COMPOSITE INDEX
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/85 10000.00 188.63 0.00 % 53.014 188.630 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/86 10000 437 437 10437 0 13409 0 13409 513 13922.78 55.046
8/31/87 10000 474 911 10911 0 17484 0 17484 1253 18737.26 56.814
8/31/88 10000 531 1442 11442 0 13864 0 13864 1512 15376.33 58.796
8/31/89 10000 615 2057 12057 0 18632 0 18632 2786 21418.77 60.944
8/31/90 10000 721 2778 12778 0 17100 0 17100 3226 20326.12 63.015
8/31/91 10000 776 3554 13554 0 20963 0 20963 4836 25799.04 65.243
8/31/92 10000 813 4367 14367 0 21949 0 21949 5906 27855.94 67.280
8/31/93 10000 851 5218 15218 0 24575 0 24575 7522 32097.36 69.241
8/31/94 10000 898 6116 16116 0 25208 0 25208 8640 33848.23 71.186
8/31/95 10000 962 7078 17078 0 29787 0 29787 11321 41108.26 73.162
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/85 10000.00 10.00 0.00 % 1000.000 10.000 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/86 10000 751 751 10751 0 10000 0 10000 751 10751.25 1075.125
8/31/87 10000 703 1454 11454 0 10000 0 10000 1455 11455.44 1145.544
8/31/88 10000 730 2184 12184 0 10000 0 10000 2184 12184.16 1218.416
8/31/89 10000 857 3041 13041 0 10000 0 10000 3039 13039.78 1303.978
8/31/90 10000 958 3999 13999 0 10000 0 10000 3997 13997.42 1399.742
8/31/91 10000 930 4929 14929 0 10000 0 10000 4927 14927.42 1492.742
8/31/92 10000 763 5692 15692 0 10000 0 10000 5690 15690.83 1569.083
8/31/93 10000 574 6266 16266 0 10000 0 10000 6264 16264.13 1626.413
8/31/94 10000 518 6784 16784 0 10000 0 10000 6780 16780.87 1678.087
8/31/95 10000 530 7314 17314 0 10000 0 10000 7310 17310.59 1731.059
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/92 2000.00 23.38 5.75 % 85.543 22.040 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/93 2000 16 16 2016 8 2322 9 2331 18 2349.86 86.551
8/31/94 4000 19 35 4035 151 4280 169 4449 39 4488.03 162.492
8/31/95 6000 39 74 6074 240 7386 518 7904 97 8001.53 241.811
TOTAL $ 399
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/90 2000.00 19.55 5.75 % 102.302 18.430 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/91 2000 49 49 2049 84 2294 106 2400 61 2461.40 109.786
8/31/92 4000 68 117 4117 207 4108 320 4428 131 4559.41 206.870
8/31/93 6000 56 173 6173 26 7382 425 7807 225 8032.65 295.862
8/31/94 8000 44 217 8217 354 9428 807 10235 275 10510.90 380.554
8/31/95 10000 76 293 10293 467 13553 1580 15133 430 15563.82 470.348
TOTAL $ 1138
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/85 2000.00 15.37 5.75 % 130.124 14.490 1885
ANNUAL INVESTMENTS OF $ 2000.00 -- SAME DAY AS INITIAL INVESTMENT
DIVIDENDS AND CAPITAL GAINS REINVESTED
RIGHT OF ACCUMULATION DISCOUNT REFLECTED WHERE APPLICABLE IN THIS ILLUSTRATION
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/86 2000 29 29 2029 113 2232 155 2387 38 2425.46 141.426
8/31/87 4000 70 99 4099 199 5091 465 5556 144 5700.76 268.777
8/31/88 6000 81 180 6180 397 5729 829 6558 194 6752.04 387.603
8/31/89 8000 154 334 8334 293 10080 1493 11573 462 12035.94 521.940
8/31/90 10000 368 702 10702 1201 9563 2292 11855 706 12561.98 681.605
8/31/91 12000 376 1078 13078 643 13926 3600 17526 1334 18860.94 841.255
8/31/92 14000 324 1402 15402 990 15543 4570 20113 1650 21763.40 987.450
8/31/93 16000 204 1606 17606 97 21470 5740 27210 2265 29475.37 1085.649
8/31/94 18000 139 1745 19745 1120 23759 7027 30786 2450 33236.89 1203.363
8/31/95 20000 216 1961 21961 1322 30722 10156 40878 3220 44098.38 1332.680
TOTAL $ 6375
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
12/01/73 10000.00 4.28 5.75 % 2336.449 4.030 9416
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/74 10000 0 0 10000 0 7874 0 7874 0 7873.83 2336.449
8/31/75 10000 362 362 10362 0 9322 0 9322 469 9791.58 2454.030
8/31/76 10000 283 645 10645 0 10327 0 10327 837 11164.56 2525.918
8/31/77 10000 0 645 10645 0 11449 0 11449 928 12377.00 2525.918
8/31/78 10000 254 899 10899 0 18364 0 18364 1772 20136.20 2561.858
8/31/79 10000 0 899 10899 0 21519 0 21519 2075 23594.71 2561.858
8/31/80 10000 307 1206 11206 0 28318 0 28318 3178 31496.47 2598.719
8/31/81 10000 546 1752 11752 0 31304 0 31304 4079 35383.11 2905.017
8/31/82 10000 1673 3425 13425 0 32507 0 32507 6088 38595.22 3661.786
8/31/83 10000 2290 5715 15715 0 44886 0 44886 11495 56381.59 4106.452
8/31/84 10000 1643 7358 17358 1109 43120 1064 44184 12621 56805.28 4306.693
8/31/85 10000 1249 8607 18607 474 47370 1744 49114 15378 64492.83 4450.851
8/31/86 10000 979 9586 19586 3872 56066 7355 63421 19540 82961.74 4837.419
8/31/87 10000 1354 10940 20940 3822 69339 14360 83699 26031 109730.47 5173.525
8/31/88 10000 1502 12442 22442 5761 56949 18289 75238 22723 97961.51 5623.508
8/31/89 10000 1743 14185 24185 3318 75387 28688 104075 32432 136507.24 5919.655
8/31/90 10000 3611 17796 27796 11780 60251 33708 93959 29224 123183.54 6683.860
8/31/91 10000 3208 21004 31004 5481 73295 47920 121215 39599 160814.87 7172.831
8/31/92 10000 2510 23514 33514 7675 72052 55106 127158 41545 168703.22 7654.411
8/31/93 10000 1454 24968 34968 689 88758 68670 157428 52840 210268.36 7744.691
8/31/94 10000 929 25897 35897 7512 90294 77818 168112 54740 222852.00 8068.501
8/31/95 10000 1372 27269 37269 8391 108176 104252 212428 67383 279811.39 8456.071
TOTAL $ 59884
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/74 10000.00 3.58 5.75 % 2793.296 3.370 9413
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/75 10000 433 433 10433 0 11145 0 11145 561 11706.13 2933.867
8/31/76 10000 338 771 10771 0 12346 0 12346 1001 13347.57 3019.813
8/31/77 10000 0 771 10771 0 13687 0 13687 1110 14797.08 3019.813
8/31/78 10000 304 1075 11075 0 21955 0 21955 2118 24073.44 3062.779
8/31/79 10000 0 1075 11075 0 25726 0 25726 2482 28208.19 3062.779
8/31/80 10000 368 1443 11443 0 33855 0 33855 3799 37654.99 3106.847
8/31/81 10000 652 2095 12095 0 37425 0 37425 4876 42301.58 3473.036
8/31/82 10000 2000 4095 14095 0 38863 0 38863 7278 46141.76 4377.776
8/31/83 10000 2738 6833 16833 0 53662 0 53662 13743 67405.88 4909.387
8/31/84 10000 1964 8797 18797 1326 51552 1272 52824 15088 67912.42 5148.781
8/31/85 10000 1493 10290 20290 566 56632 2085 58717 18386 77103.12 5321.126
8/31/86 10000 1171 11461 21461 4629 67029 8794 75823 23360 99183.25 5783.280
8/31/87 10000 1619 13080 23080 4569 82897 17168 100065 31121 131186.10 6185.106
8/31/88 10000 1796 14876 24876 6887 68084 21865 89949 27166 117115.93 6723.073
8/31/89 10000 2084 16960 26960 3967 90127 34297 124424 38774 163198.50 7077.125
8/31/90 10000 4317 21277 31277 14083 72031 40298 112329 34940 147269.63 7990.756
8/31/91 10000 3836 25113 35113 6552 87626 57290 144916 47343 192259.03 8575.336
8/31/92 10000 3001 28114 38114 9176 86141 65881 152022 49667 201689.80 9151.080
8/31/93 10000 1739 29853 39853 824 106113 82097 188210 63172 251382.20 9259.013
8/31/94 10000 1111 30964 40964 8981 107949 93033 200982 65444 266426.30 9646.137
8/31/95 10000 1640 32604 42604 10032 129328 124636 253964 80558 334522.96 10109.488
TOTAL $ 71592
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/75 10000.00 4.23 5.75 % 2364.066 3.990 9433
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/76 10000 272 272 10272 0 10449 0 10449 306 10755.27 2433.319
8/31/77 10000 0 272 10272 0 11584 0 11584 339 11923.26 2433.319
8/31/78 10000 244 516 10516 0 18582 0 18582 816 19398.02 2467.941
8/31/79 10000 0 516 10516 0 21773 0 21773 956 22729.74 2467.941
8/31/80 10000 296 812 10812 0 28652 0 28652 1689 30341.83 2503.451
8/31/81 10000 526 1338 11338 0 31674 0 31674 2411 34085.99 2798.521
8/31/82 10000 1612 2950 12950 0 32891 0 32891 4289 37180.35 3527.547
8/31/83 10000 2206 5156 15156 0 45416 0 45416 8898 54314.66 3955.911
8/31/84 10000 1582 6738 16738 1068 43630 1025 44655 10067 54722.83 4148.812
8/31/85 10000 1203 7941 17941 456 47930 1680 49610 12518 62128.56 4287.685
8/31/86 10000 943 8884 18884 3730 56729 7086 63815 16105 79920.41 4660.082
8/31/87 10000 1305 10189 20189 3681 70158 13834 83992 21715 105707.82 4983.867
8/31/88 10000 1448 11637 21637 5550 57622 17619 75241 19129 94370.27 5417.352
8/31/89 10000 1679 13316 23316 3196 76278 27636 103914 27588 131502.95 5702.643
8/31/90 10000 3479 16795 26795 11348 60963 32472 93435 25232 118667.69 6438.833
8/31/91 10000 3091 19886 29886 5280 74161 46163 120324 34595 154919.49 6909.879
8/31/92 10000 2418 22304 32304 7394 72904 53086 125990 36528 162518.66 7373.805
8/31/93 10000 1401 23705 33705 664 89807 66153 155960 46600 202560.04 7460.775
8/31/94 10000 895 24600 34600 7237 91361 74965 166326 48356 214682.36 7772.714
8/31/95 10000 1321 25921 35921 8084 109455 100430 209885 59668 269553.65 8146.076
TOTAL $ 57688
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/76 10000.00 4.69 5.75 % 2132.196 4.420 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/77 10000 0 0 10000 0 10448 0 10448 0 10447.76 2132.196
8/31/78 10000 214 214 10214 0 16759 0 16759 238 16997.52 2162.534
8/31/79 10000 0 214 10214 0 19638 0 19638 278 19916.94 2162.534
8/31/80 10000 260 474 10474 0 25842 0 25842 745 26587.03 2193.649
8/31/81 10000 461 935 10935 0 28567 0 28567 1300 29867.84 2452.204
8/31/82 10000 1412 2347 12347 0 29665 0 29665 2914 32579.28 3091.013
8/31/83 10000 1933 4280 14280 0 40962 0 40962 6631 47593.22 3466.367
8/31/84 10000 1387 5667 15667 936 39351 898 40249 7701 47950.87 3635.396
8/31/85 10000 1054 6721 16721 400 43229 1472 44701 9739 54440.13 3757.083
8/31/86 10000 827 7548 17548 3269 51165 6209 57374 12656 70030.22 4083.395
8/31/87 10000 1143 8691 18691 3226 63277 12122 75399 17227 92626.45 4367.112
8/31/88 10000 1269 9960 19960 4863 51970 15438 67408 15283 82691.94 4746.954
8/31/89 10000 1472 11432 21432 2801 68796 24216 93012 22217 115229.41 4996.939
8/31/90 10000 3048 14480 24480 9944 54983 28454 83437 20545 103982.52 5642.025
8/31/91 10000 2708 17188 27188 4626 66887 40451 107338 28410 135748.12 6054.778
8/31/92 10000 2119 19307 29307 6479 65753 46516 112269 30137 142406.88 6461.292
8/31/93 10000 1228 20535 30535 582 80998 57966 138964 38529 177493.10 6537.499
8/31/94 10000 785 21320 31320 6341 82401 65688 148089 40026 188115.26 6810.835
8/31/95 10000 1158 22478 32478 7083 98720 88002 186722 49474 236196.19 7137.993
TOTAL $ 50550
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/77 10000.00 5.20 5.75 % 1923.077 4.900 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/78 10000 193 193 10193 0 15115 0 15115 215 15330.45 1950.439
8/31/79 10000 0 193 10193 0 17712 0 17712 251 17963.54 1950.439
8/31/80 10000 234 427 10427 0 23308 0 23308 671 23979.46 1978.503
8/31/81 10000 415 842 10842 0 25765 0 25765 1173 26938.51 2211.700
8/31/82 10000 1274 2116 12116 0 26755 0 26755 2629 29384.01 2787.857
8/31/83 10000 1744 3860 13860 0 36944 0 36944 5981 42925.44 3126.398
8/31/84 10000 1251 5111 15111 844 35491 810 36301 6947 43248.03 3278.850
8/31/85 10000 951 6062 16062 361 38989 1328 40317 8783 49100.86 3388.603
8/31/86 10000 745 6807 16807 2948 46147 5600 51747 11414 63161.94 3682.912
8/31/87 10000 1031 7838 17838 2910 57071 10933 68004 15538 83542.01 3938.803
8/31/88 10000 1144 8982 18982 4386 46873 13924 60797 13784 74581.85 4281.392
8/31/89 10000 1327 10309 20309 2526 62049 21841 83890 20038 103928.19 4506.860
8/31/90 10000 2749 13058 23058 8969 49591 25663 75254 18530 93784.34 5088.678
8/31/91 10000 2443 15501 25501 4173 60327 36483 96810 25624 122434.52 5460.951
8/31/92 10000 1911 17412 27412 5843 59305 41954 101259 27181 128440.22 5827.596
8/31/93 10000 1107 18519 28519 524 73054 52281 125335 34750 160085.33 5896.329
8/31/94 10000 708 19227 29227 5719 74319 59246 133565 36100 169665.74 6142.858
8/31/95 10000 1044 20271 30271 6389 89038 79371 168409 44622 213031.10 6437.930
TOTAL $ 45592
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/78 10000.00 8.34 5.75 % 1199.041 7.860 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/79 10000 0 0 10000 0 11043 0 11043 0 11043.17 1199.041
8/31/80 10000 144 144 10144 0 14532 0 14532 209 14741.47 1216.293
8/31/81 10000 255 399 10399 0 16065 0 16065 495 16560.55 1359.651
8/31/82 10000 783 1182 11182 0 16682 0 16682 1381 18063.94 1713.846
8/31/83 10000 1072 2254 12254 0 23035 0 23035 3353 26388.58 1921.965
8/31/84 10000 769 3023 13023 519 22129 498 22627 3959 26586.90 2015.686
8/31/85 10000 585 3608 13608 222 24310 816 25126 5058 30184.94 2083.157
8/31/86 10000 458 4066 14066 1812 28773 3443 32216 6613 38829.04 2264.084
8/31/87 10000 634 4700 14700 1789 35584 6721 42305 9052 51357.77 2421.394
8/31/88 10000 703 5403 15403 2696 29225 8560 37785 8064 45849.47 2632.002
8/31/89 10000 816 6219 16219 1553 38688 13427 52115 11775 63890.27 2770.610
8/31/90 10000 1690 7909 17909 5514 30920 15776 46696 10958 57654.29 3128.285
8/31/91 10000 1502 9411 19411 2565 37614 22428 60042 15225 75267.10 3357.141
8/31/92 10000 1175 10586 20586 3592 36976 25791 62767 16192 78959.14 3582.538
8/31/93 10000 681 11267 21267 322 45549 32140 77689 20724 98413.10 3624.792
8/31/94 10000 435 11702 21702 3516 46338 36422 82760 21542 104302.70 3776.347
8/31/95 10000 642 12344 22344 3927 55515 48794 104309 26652 130961.75 3957.744
TOTAL $ 28027
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/79 10000.00 9.77 5.75 % 1023.541 9.210 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/80 10000 123 123 10123 0 12405 0 12405 178 12583.81 1038.268
8/31/81 10000 218 341 10341 0 13713 0 13713 423 14136.64 1160.644
8/31/82 10000 669 1010 11010 0 14240 0 14240 1179 15419.98 1462.996
8/31/83 10000 915 1925 11925 0 19663 0 19663 2863 22526.17 1640.653
8/31/84 10000 656 2581 12581 443 18890 425 19315 3380 22695.45 1720.656
8/31/85 10000 499 3080 13080 189 20752 697 21449 4317 25766.84 1778.250
8/31/86 10000 391 3471 13471 1547 24561 2939 27500 5645 33145.74 1932.696
8/31/87 10000 541 4012 14012 1527 30376 5737 36113 7727 43840.67 2066.981
8/31/88 10000 601 4613 14613 2302 24948 7307 32255 6883 39138.61 2246.763
8/31/89 10000 697 5310 15310 1326 33025 11462 44487 10051 54538.81 2365.083
8/31/90 10000 1443 6753 16753 4707 26394 13467 39861 9354 49215.60 2670.407
8/31/91 10000 1282 8035 18035 2190 32109 19146 51255 12995 64250.47 2865.766
8/31/92 10000 1003 9038 19038 3066 31564 22016 53580 13822 67402.11 3058.172
8/31/93 10000 581 9619 19619 275 38883 27436 66319 17689 84008.67 3094.242
8/31/94 10000 371 9990 19990 3001 39556 31091 70647 18389 89036.22 3223.614
8/31/95 10000 548 10538 20538 3353 47389 41652 89041 22752 111793.24 3378.460
TOTAL $ 23926
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/80 10000.00 12.86 5.75 % 777.605 12.120 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/81 10000 163 163 10163 0 10418 0 10418 169 10587.56 869.258
8/31/82 10000 501 664 10664 0 10819 0 10819 729 11548.70 1095.702
8/31/83 10000 685 1349 11349 0 14939 0 14939 1931 16870.83 1228.757
8/31/84 10000 492 1841 11841 332 14351 318 14669 2328 16997.61 1288.674
8/31/85 10000 374 2215 12215 142 15765 522 16287 3010 19297.93 1331.810
8/31/86 10000 293 2508 12508 1159 18660 2201 20861 3963 24824.30 1447.481
8/31/87 10000 405 2913 12913 1144 23077 4297 27374 5460 32834.20 1548.053
8/31/88 10000 450 3363 13363 1724 18953 5473 24426 4886 29312.63 1682.700
8/31/89 10000 522 3885 13885 993 25090 8584 33674 7172 40846.52 1771.315
8/31/90 10000 1081 4966 14966 3525 20052 10086 30138 6721 36859.72 1999.985
8/31/91 10000 960 5926 15926 1640 24394 14339 38733 9387 48120.00 2146.298
8/31/92 10000 751 6677 16677 2297 23980 16489 40469 10011 50480.39 2290.399
8/31/93 10000 435 7112 17112 206 29540 20548 50088 12829 62917.76 2317.413
8/31/94 10000 278 7390 17390 2248 30051 23285 53336 13347 66683.10 2414.305
8/31/95 10000 410 7800 17800 2511 36003 31195 67198 16528 83726.83 2530.276
TOTAL $ 17921
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/81 10000.00 12.92 5.75 % 773.994 12.180 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/82 10000 446 446 10446 0 9789 0 9789 494 10283.06 975.622
8/31/83 10000 610 1056 11056 0 13517 0 13517 1504 15021.92 1094.095
8/31/84 10000 438 1494 11494 295 12986 284 13270 1864 15134.83 1147.447
8/31/85 10000 333 1827 11827 126 14266 465 14731 2452 17183.04 1185.855
8/31/86 10000 261 2088 12088 1032 16885 1960 18845 3258 22103.76 1288.849
8/31/87 10000 361 2449 12449 1018 20882 3826 24708 4527 29235.84 1378.399
8/31/88 10000 401 2850 12850 1535 17150 4873 22023 4077 26100.19 1498.289
8/31/89 10000 464 3314 13314 884 22703 7643 30346 6024 36370.07 1577.193
8/31/90 10000 962 4276 14276 3139 18145 8981 27126 5694 32820.20 1780.803
8/31/91 10000 855 5131 15131 1460 22073 12768 34841 8005 42846.46 1911.082
8/31/92 10000 669 5800 15800 2045 21699 14682 36381 8567 44948.20 2039.392
8/31/93 10000 387 6187 16187 184 26730 18296 45026 10996 56022.56 2063.446
8/31/94 10000 248 6435 16435 2002 27192 20733 47925 11450 59375.27 2149.720
8/31/95 10000 365 6800 16800 2236 32578 27776 60354 14197 74551.17 2252.982
TOTAL $ 15956
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/82 10000.00 11.18 5.75 % 894.454 10.540 9428
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/83 10000 559 559 10559 0 13018 0 13018 754 13772.16 1003.071
8/31/84 10000 401 960 10960 271 12506 260 12766 1109 13875.67 1051.984
8/31/85 10000 305 1265 11265 116 13738 426 14164 1589 15753.50 1087.198
8/31/86 10000 239 1504 11504 946 16260 1797 18057 2207 20264.83 1181.623
8/31/87 10000 331 1835 11835 933 20110 3508 23618 3185 26803.56 1263.723
8/31/88 10000 367 2202 12202 1407 16516 4467 20983 2945 23928.79 1373.639
8/31/89 10000 426 2628 12628 810 21864 7007 28871 4473 33344.25 1445.978
8/31/90 10000 882 3510 13510 2878 17474 8234 25708 4381 30089.72 1632.649
8/31/91 10000 784 4294 14294 1339 21257 11705 32962 6319 39281.84 1752.089
8/31/92 10000 613 4907 14907 1875 20897 13461 34358 6850 41208.69 1869.723
8/31/93 10000 355 5262 15262 168 25741 16774 42515 8846 51361.69 1891.775
8/31/94 10000 227 5489 15489 1835 26187 19008 45195 9240 54435.46 1970.871
8/31/95 10000 335 5824 15824 2050 31373 25465 56838 11510 68348.78 2065.542
TOTAL $ 14628
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/83 10000.00 14.57 5.75 % 686.342 13.730 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/84 10000 275 275 10275 185 9053 178 9231 263 9494.29 719.810
8/31/85 10000 209 484 10484 79 9945 291 10236 543 10779.17 743.904
8/31/86 10000 164 648 10648 647 11771 1229 13000 866 13866.03 808.515
8/31/87 10000 226 874 10874 639 14557 2400 16957 1383 18340.10 864.691
8/31/88 10000 251 1125 11125 963 11956 3057 15013 1360 16373.06 939.900
8/31/89 10000 291 1416 11416 555 15827 4795 20622 2193 22815.49 989.397
8/31/90 10000 604 2020 12020 1969 12649 5634 18283 2305 20588.61 1117.125
8/31/91 10000 536 2556 12556 916 15388 8009 23397 3481 26878.24 1198.851
8/31/92 10000 420 2976 12976 1283 15127 9210 24337 3859 28196.68 1279.341
8/31/93 10000 243 3219 13219 115 18634 11477 30111 5032 35143.77 1294.430
8/31/94 10000 155 3374 13374 1256 18957 13006 31963 5283 37246.98 1348.551
8/31/95 10000 229 3603 13603 1402 22711 17424 40135 6632 46767.02 1413.328
TOTAL $ 10009
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/84 10000.00 13.99 5.75 % 714.796 13.190 9428
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/85 10000 207 207 10207 79 10357 95 10452 252 10704.08 738.722
8/31/86 10000 163 370 10370 643 12259 991 13250 519 13769.43 802.882
8/31/87 10000 225 595 10595 634 15161 2099 17260 952 18212.33 858.667
8/31/88 10000 250 845 10845 956 12452 2802 15254 1004 16258.99 933.352
8/31/89 10000 289 1134 11134 551 16483 4453 20936 1720 22656.54 982.504
8/31/90 10000 599 1733 11733 1955 13174 5348 18522 1923 20445.15 1109.341
8/31/91 10000 532 2265 12265 910 16026 7653 23679 3011 26690.94 1190.497
8/31/92 10000 417 2682 12682 1274 15754 8851 24605 3395 28000.19 1270.426
8/31/93 10000 241 2923 12923 114 19407 11034 30441 4457 34898.88 1285.410
8/31/94 10000 154 3077 13077 1247 19743 12546 32289 4698 36987.43 1339.154
8/31/95 10000 228 3305 13305 1393 23653 16860 40513 5928 46441.19 1403.481
TOTAL $ 9756
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/85 10000.00 15.37 5.75 % 650.618 14.490 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/86 10000 143 143 10143 566 11158 774 11932 195 12127.23 707.127
8/31/87 10000 198 341 10341 559 13800 1726 15526 514 16040.25 756.259
8/31/88 10000 220 561 10561 842 11334 2367 13701 618 14319.87 822.036
8/31/89 10000 255 816 10816 485 15003 3788 18791 1163 19954.42 865.326
8/31/90 10000 528 1344 11344 1722 11991 4603 16594 1412 18006.77 977.036
8/31/91 10000 469 1813 11813 801 14587 6611 21198 2309 23507.68 1048.514
8/31/92 10000 367 2180 12180 1122 14340 7668 22008 2652 24660.78 1118.910
8/31/93 10000 213 2393 12393 101 17664 9560 27224 3512 30736.71 1132.107
8/31/94 10000 136 2529 12529 1098 17970 10889 28859 3717 32576.16 1179.441
8/31/95 10000 201 2730 12730 1227 21529 14657 36186 4716 40902.42 1236.096
TOTAL $ 8523
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/86 10000.00 18.20 5.75 % 549.451 17.150 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/87 10000 154 154 10154 434 11654 598 12252 211 12463.57 587.627
8/31/88 10000 171 325 10325 654 9571 1229 10800 326 11126.80 638.737
8/31/89 10000 198 523 10523 377 12670 2135 14805 699 15504.94 672.374
8/31/90 10000 410 933 10933 1338 10126 2931 13057 934 13991.60 759.175
8/31/91 10000 364 1297 11297 623 12319 4351 16670 1595 18265.87 814.713
8/31/92 10000 285 1582 11582 872 12110 5185 17295 1866 19161.84 869.412
8/31/93 10000 165 1747 11747 78 14918 6477 21395 2487 23882.93 879.666
8/31/94 10000 106 1853 11853 853 15176 7493 22669 2643 25312.21 916.445
8/31/95 10000 156 2009 12009 953 18181 10229 28410 3371 31781.82 960.466
TOTAL $ 6182
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/87 10000.00 22.50 5.75 % 444.444 21.210 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/88 10000 129 129 10129 495 7742 558 8300 115 8415.62 483.101
8/31/89 10000 150 279 10279 285 10249 1123 11372 354 11726.98 508.542
8/31/90 10000 310 589 10589 1012 8191 1824 10015 567 10582.38 574.193
8/31/91 10000 276 865 10865 471 9964 2813 12777 1038 13815.18 616.199
8/31/92 10000 216 1081 11081 659 9796 3452 13248 1244 14492.84 657.570
8/31/93 10000 125 1206 11206 59 12067 4320 16387 1676 18063.60 665.326
8/31/94 10000 80 1286 11286 645 12276 5079 17355 1789 19144.64 693.144
8/31/95 10000 118 1404 11404 721 14707 7031 21738 2299 24037.87 726.439
TOTAL $ 4347
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/88 10000.00 18.48 5.75 % 541.126 17.420 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/89 10000 168 168 10168 319 12478 431 12909 226 13135.51 569.623
8/31/90 10000 347 515 10515 1134 9973 1382 11355 498 11853.44 643.160
8/31/91 10000 309 824 10824 527 12132 2346 14478 996 15474.55 690.212
8/31/92 10000 242 1066 11066 739 11926 3076 15002 1231 16233.63 736.553
8/31/93 10000 140 1206 11206 66 14692 3865 18557 1676 20233.27 745.240
8/31/94 10000 89 1295 11295 723 14946 4698 19644 1800 21444.11 776.398
8/31/95 10000 132 1427 11427 807 17906 6689 24595 2330 26925.07 813.692
TOTAL $ 4315
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/89 10000.00 24.47 5.75 % 408.664 23.060 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/90 10000 249 249 10249 813 7532 744 8276 227 8503.99 461.421
8/31/91 10000 221 470 10470 378 9162 1383 10545 556 11101.89 495.178
8/31/92 10000 173 643 10643 530 9007 1911 10918 728 11646.46 528.424
8/31/93 10000 100 743 10743 48 11095 2409 13504 1011 14515.91 534.656
8/31/94 10000 64 807 10807 519 11287 3000 14287 1097 15384.62 557.010
8/31/95 10000 95 902 10902 579 13523 4355 17878 1438 19316.82 583.766
TOTAL $ 2867
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/90 10000.00 19.55 5.75 % 511.509 18.430 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/91 10000 246 246 10246 419 11468 529 11997 310 12307.01 548.930
8/31/92 10000 192 438 10438 587 11274 1132 12406 504 12910.70 585.785
8/31/93 10000 111 549 10549 53 13887 1455 15342 749 16091.64 592.694
8/31/94 10000 71 620 10620 575 14128 2089 16217 837 17054.66 617.475
8/31/95 10000 105 725 10725 642 16926 3347 20273 1140 21413.70 647.135
TOTAL $ 2276
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/91 10000.00 23.79 5.75 % 420.345 22.420 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/92 10000 147 147 10147 450 9264 469 9733 153 9886.42 448.567
8/31/93 10000 85 232 10232 40 11412 624 12036 286 12322.24 453.858
8/31/94 10000 54 286 10286 440 11610 1101 12711 348 13059.68 472.834
8/31/95 10000 80 366 10366 492 13909 1965 15874 523 16397.65 495.547
TOTAL $ 1422
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/92 10000.00 23.38 5.75 % 427.716 22.040 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/93 10000 81 81 10081 38 11612 44 11656 93 11749.43 432.760
8/31/94 10000 52 133 10133 420 11814 490 12304 148 12452.59 450.854
8/31/95 10000 77 210 10210 469 14153 1202 15355 280 15635.39 472.511
TOTAL $ 927
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/93 10000.00 28.81 5.75 % 347.102 27.150 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/94 10000 42 42 10042 337 9587 357 9944 43 9987.81 361.615
8/31/95 10000 61 103 10103 376 11486 921 12407 133 12540.61 378.985
TOTAL $ 713
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/94 10000.00 29.31 5.75 % 341.180 27.620 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/95 10000 58 58 10058 355 11290 466 11756 75 11831.96 357.569
TOTAL $ 355
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE GROWTH FUND OF AMERICA, INC.
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
9/01/95 10000.00 35.11 5.75 % 284.819 33.090 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOME INVM'T CAP GAIN FROM CAP GAINS SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'D TOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/31/95 10000 0 0 10000 0 9425 0 9425 0 9424.66 284.819
TOTAL $ 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-START> SEP-1-1994
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 5,015,735
<INVESTMENTS-AT-VALUE> 7,531,876
<RECEIVABLES> 41,365
<ASSETS-OTHER> 526
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,573,767
<PAYABLE-FOR-SECURITIES> 38,374
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10,503
<TOTAL-LIABILITIES> 48,877
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,620,554
<SHARES-COMMON-STOCK> 227,394,684
<SHARES-COMMON-PRIOR> 196,530,581
<ACCUMULATED-NII-CURRENT> 39,471
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 325,984
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,516,141
<NET-ASSETS> 7,524,890
<DIVIDEND-INCOME> 38,080
<INTEREST-INCOME> 61,312
<OTHER-INCOME> 0
<EXPENSES-NET> 45,302
<NET-INVESTMENT-INCOME> 54,090
<REALIZED-GAINS-CURRENT> 353,525
<APPREC-INCREASE-CURRENT> 1,054,869
<NET-CHANGE-FROM-OPS> 1,462,484
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 33,653
<DISTRIBUTIONS-OF-GAINS> 205,865
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 69,486,188
<NUMBER-OF-SHARES-REDEEMED> 47,721,869
<SHARES-REINVESTED> 9,099,784
<NET-CHANGE-IN-ASSETS> 2,097,412
<ACCUMULATED-NII-PRIOR> 19,034
<ACCUMULATED-GAINS-PRIOR> 178,325
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 22,942
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 45,302
<AVERAGE-NET-ASSETS> 6,004,777
<PER-SHARE-NAV-BEGIN> 27.62
<PER-SHARE-NII> .25
<PER-SHARE-GAIN-APPREC> 6.43
<PER-SHARE-DIVIDEND> .17
<PER-SHARE-DISTRIBUTIONS> 1.04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 33.09
<EXPENSE-RATIO> .008
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
