<PAGE> PAGE 1
000 A000000 06/30/95
000 C000000 0000004568
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 AMERICAN BALANCED FUND, INC.
001 B000000 811-66
001 C000000 4154219360
002 A000000 FOUR EMBARCADERO CENTER
002 B000000 SAN FRANCISCO
002 C000000 CA
002 D010000 94111
002 D020000 4125
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 CAPITAL RESEARCH AND MANAGEMENT COMPANY
008 B000001 A
008 C000001 801-8055
008 D010001 LOS ANGELES
008 D020001 CA
008 D030001 90071
008 D040001 1402
011 A000001 AMERICAN FUNDS DISTRIBUTORS, INC.
011 B000001 8-17168
011 C010001 LOS ANGELES
011 C020001 CA
011 C030001 90071
011 C040001 1402
012 A000001 AMERICAN FUNDS SERVICE COMPANY
012 B000001 84-00316
012 C010001 BREA
012 C020001 CA
012 C030001 92622
<PAGE> PAGE 2
012 C040001 2205
013 A000001 DELOITTE & TOUCHE LLP
013 B010001 LOS ANGELES
013 B020001 CA
013 B030001 90017
013 B040001 1532
015 A000001 CHASE MANHATTAN BANK
015 B000001 C
015 C010001 NEW YORK
015 C020001 NY
015 C030001 10081
015 E010001 X
015 A000002 CEDEL S.A.
015 B000002 S
015 C010002 LUXEMBOURG
015 D010002 LUXEMBOURG
015 E040002 X
018 000000 Y
019 A000000 Y
019 B000000 37
019 C000000 CRMCFNDGRP
020 A000001 LEHMAN BROTHERS INC.
020 B000001 13-2518466
020 C000001 86
020 A000002 MORGAN STANLEY & CO. INC.
020 B000002 13-2655998
020 C000002 67
020 A000003 CS FIRST BOSTON CORP.
020 B000003 13-5659485
020 C000003 64
020 A000004 PRUDENTIAL SECURITIES INC.
020 B000004 22-2347336
020 C000004 61
020 A000005 EDWARDS (A.G.) & SONS, INC.
020 B000005 43-0895447
020 C000005 54
020 A000006 PAINEWEBBER INC.
020 B000006 13-2638166
020 C000006 52
020 A000007 BERNSTEIN (SANFORD C.)& CO., INC.
020 B000007 13-2625874
020 C000007 44
020 A000008 MERRILL LYNCH, PIERCE,FENNER & SMITH INC.
020 B000008 13-5674085
020 C000008 34
020 A000009 GOLDMAN, SACHS & CO.
020 B000009 13-5108880
020 C000009 34
020 A000010 JONES (EDWARD D.) & CO.
020 B000010 43-0345811
020 C000010 33
<PAGE> PAGE 3
021 000000 966
022 A000001 ASSOCIATES CORP. OF NORTH AMERICA
022 B000001 74-1494554
022 C000001 445158
022 D000001 0
022 A000002 GOLDMAN, SACHS & CO.
022 B000002 13-5108880
022 C000002 326812
022 D000002 20051
022 A000003 LEHMAN COMMERCIAL PAPER INC.
022 B000003 13-2501865
022 C000003 286044
022 D000003 48389
022 A000004 CS FIRST BOSTON CORP.
022 B000004 13-5659485
022 C000004 207761
022 D000004 23893
022 A000005 GENERAL ELECTRIC CAPITAL SERVICES, INC.
022 B000005 06-1109503
022 C000005 202324
022 D000005 0
022 A000006 FIRST NATIONAL BANK OF CHICAGO
022 B000006 36-0899825
022 C000006 134176
022 D000006 0
022 A000007 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000007 13-5674085
022 C000007 114567
022 D000007 4390
022 A000008 MORGAN (J.P.) SECURITIES INC.
022 B000008 13-3224016
022 C000008 108490
022 D000008 9815
022 A000009 FORD MOTOR CREDIT CO.
022 B000009 38-1612444
022 C000009 114582
022 D000009 0
022 A000010 MORGAN STANLEY & CO. INC.
022 B000010 13-2655998
022 C000010 82229
022 D000010 10306
023 C000000 2510418
023 D000000 176009
024 000000 Y
025 A000001 DELETE
025 D000001 0
025 A000002 BANKAMERICA CORP.
025 B000002 94-1681731
025 C000002 E
025 D000002 21050
025 A000003 MORGAN (J.P.) SECURITIES INC.
<PAGE> PAGE 4
025 B000003 13-3224016
025 C000003 E
025 D000003 8415
025 A000004 BENEFICIAL CORP.
025 B000004 51-0003820
025 C000004 E
025 D000004 3960
025 A000005 BENEFICIAL CORP.
025 B000005 51-0003820
025 C000005 D
025 D000005 1820
025 A000006 DELETE
025 D000006 0
025 A000007 DELETE
025 D000007 0
025 A000008 DELETE
025 D000008 0
026 A000000 Y
026 B000000 Y
026 C000000 N
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
028 A010000 56633
028 A020000 0
028 A030000 0
028 A040000 42405
028 B010000 72579
028 B020000 22536
028 B030000 0
028 B040000 38396
028 C010000 63792
028 C020000 0
028 C030000 0
028 C040000 44968
028 D010000 64410
028 D020000 0
028 D030000 0
028 D040000 58885
028 E010000 61469
028 E020000 23386
028 E030000 0
028 E040000 32368
028 F010000 75896
028 F020000 0
028 F030000 0
028 F040000 67803
<PAGE> PAGE 5
028 G010000 394779
028 G020000 45922
028 G030000 0
028 G040000 284825
028 H000000 130084
029 000000 Y
030 A000000 4966
030 B000000 5.75
030 C000000 0.00
031 A000000 842
031 B000000 0
032 000000 4124
033 000000 0
034 000000 Y
035 000000 10
036 A000000 Y
036 B000000 0
037 000000 N
038 000000 0
039 000000 N
040 000000 Y
041 000000 Y
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 100
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 2650
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.000
048 A010000 500000
048 A020000 0.420
048 B010000 500000
048 B020000 0.324
048 C010000 500000
048 C020000 0.300
048 D010000 1000000
048 D020000 0.282
048 E010000 1500000
048 E020000 0.270
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
<PAGE> PAGE 6
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 4000000
048 K020000 0.264
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 Y
054 M000000 Y
054 N000000 N
054 O000000 Y
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 500
062 A000000 N
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
<PAGE> PAGE 7
062 P000000 0.0
062 Q000000 0.0
062 R000000 0.0
063 A000000 0
063 B000000 0.0
066 A000000 Y
066 B000000 N
066 C000000 N
066 D000000 N
066 E000000 N
066 F000000 N
066 G000000 Y
067 000000 Y
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 N
070 A020000 N
070 B010000 N
070 B020000 N
070 C010000 N
070 C020000 N
070 D010000 N
070 D020000 N
070 E010000 N
070 E020000 N
070 F010000 N
070 F020000 N
070 G010000 N
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 N
070 M010000 N
070 M020000 N
070 N010000 N
070 N020000 N
070 O010000 Y
070 O020000 N
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 N
<PAGE> PAGE 8
070 R020000 N
071 A000000 553549
071 B000000 384556
071 C000000 1895876
071 D000000 20
072 A000000 6
072 B000000 36930
072 C000000 23259
072 D000000 0
072 E000000 0
072 F000000 3699
072 G000000 0
072 H000000 0
072 I000000 958
072 J000000 40
072 K000000 213
072 L000000 100
072 M000000 31
072 N000000 189
072 O000000 2
072 P000000 0
072 Q000000 0
072 R000000 30
072 S000000 6
072 T000000 2650
072 U000000 0
072 V000000 0
072 W000000 29
072 X000000 7947
072 Y000000 0
072 Z000000 52242
072AA000000 43100
072BB000000 0
072CC010000 198577
072CC020000 0
072DD010000 50376
072DD020000 0
072EE000000 0
073 A010000 0.2800
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 56
074 B000000 0
074 C000000 462836
074 D000000 652402
074 E000000 0
074 F000000 1342216
074 G000000 0
074 H000000 0
074 I000000 0
<PAGE> PAGE 9
074 J000000 12568
074 K000000 0
074 L000000 27576
074 M000000 0
074 N000000 2497654
074 O000000 13783
074 P000000 656
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 1910
074 S000000 0
074 T000000 2481305
074 U010000 185884
074 U020000 0
074 V010000 13.35
074 V020000 0.00
074 W000000 0.0000
074 X000000 116080
074 Y000000 0
075 A000000 0
075 B000000 2293973
076 000000 0.00
077 A000000 Y
077 Q010000 Y
078 000000 N
080 A000000 NATIONAL UNION FIRE INSURANCE COMPANY
080 B000000 1)CHUBB CUSTOM INS. 2)ICI MUTUAL INS.
080 C000000 65000
081 A000000 Y
081 B000000 50
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
<PAGE> PAGE 10
086 F020000 0
SIGNATURE PATRICK F. QUAN
TITLE SECRETARY
SHAREHOLDER SERVICES AGREEMENT
1. The parties to this Agreement, which is effective as of
January 1, 1995, are American Balanced Fund, Inc. (hereinafter called
"the Fund") and American Funds Service Company, a California
corporation (hereinafter called "AFS"). AFS is a wholly owned
subsidiary of Capital Research and Management Company (hereinafter
called "CRMC"). This Agreement will continue in effect until amended
or terminated in accordance with its terms.
2. The Fund hereby employs AFS, and AFS hereby accepts such
employment by the Fund, as its transfer agent. In such capacity AFS
will provide the services of stock transfer agent, dividend disbursing
agent, redemption agent, and such additional related services as the
Fund may from time to time require, all of which services are
sometimes referred to herein as "shareholder services."
3. AFS has entered into substantially identical agreements with
other investment companies for which CRMC serves as investment
adviser. (For the purposes of this Agreement, such investment
companies, including the Fund, are called "participating investment
companies.")
4. AFS has entered into an agreement with DST Systems, Inc.
(hereinafter called "DST"), to provide AFS with electronic data
processing services sufficient for the performance of the shareholder
services referred to in paragraph 2.
5. The Fund, together with the other participating companies,
will maintain a Review and Advisory Committee, which Committee will
review and may make recommendations to the boards of the participating
investment companies regarding all fees and charges provided for in
this Agreement, as well as review the level and quality of the
shareholder services rendered to the participating investment
companies and their shareholders. Each participating investment
company may select one director or trustee who is not affiliated with
CRMC, or any of its affiliated companies, or with Washington
Management Corporation or any of its affiliated companies, to serve
on the Review and Advisory Committee.
6. AFS will provide to the participating investment companies
the shareholder services referred to herein in return for the
following fees:
Annual account maintenance fee (paid monthly):
$.67 per month for each open account on AFS books or in
Level 2 or 4 Networking ($8.04 per year)
$.09 per month for each open account maintained in Street
Name or Level 1 or 3 Networking ($1.08 per year)
No annual fee will be charged for a participant account
underlying a 401(k)
or other defined contribution plan where the plan
maintains a single account on AFS books and responds
to all participant inquiries
Transaction fees:
$2.00 per non-automated transaction
$0.50 per automated transaction
For this purpose, "transactions" shall include all types of
transactions included in an "activity index" as reported to the Review
and Advisory Committee at least annually. AFS will bill the Fund
monthly, on or shortly after the first of each calendar month, and the
Fund will pay to AFS within five business days of such billing.
Any revision of the schedule of charges set forth herein shall
require the affirmative vote of a majority of the members of the board
of directors/trustees of the Fund.
7. All fund-specific charges from third parties -- including
DST charges, payments described in the next sentence, postage, NSCC
transaction charges and similar out-of-pocket expenses -- will be
passed through directly to the Fund or other participating investment
companies, as applicable. AFS, subject to approval of its board of
directors, is authorized in its discretion to negotiate payments to
third parties for account maintenance and/or transaction processing
services provided such payments do not exceed the anticipated savings
to the Fund, either in fees payable to AFS hereunder or in other
direct Fund expenses, that AFS reasonably anticipates would be
realized by the Fund from using the services of such third party
rather than maintaining the accounts directly on AFS' books and/or
processing non-automated transactions.
8. It is understood that AFS may have income in excess of its
expenses and may accumulate capital and surplus. AFS is not, however,
permitted to distribute any net income or accumulated surplus to its
parent, CRMC, in the form of a dividend without the affirmative vote
of a majority of the members of the boards of directors/trustees of
the Fund and all participating investment companies.
9. This Agreement may be amended at any time by mutual
agreement of the parties, with agreement of the Fund to be evidenced
by affirmative vote of a majority of the members of the board of
directors/trustees of the Fund.
10. This Agreement may be terminated on 180 days' written notice
by either party. In the event of a termination of this Agreement, AFS
and the Fund will each extend full cooperation in effecting a
conversion to whatever successor shareholder service provider(s) the
Fund may select, it being understood that all records relating to the
Fund and its shareholders are property of the Fund.
11. In the event of a termination of this Agreement by the Fund,
the Fund will pay to AFS as a termination fee the Fund's proportionate
share of any costs of conversion of the Fund's shareholder service
from AFS to a successor. In the event of termination of this
Agreement and all corresponding agreements with all the participating
investment companies, all assets of AFS will be sold or otherwise
converted to cash, with a view to the liquidation of AFS when it
ceases to provide shareholder services for the participating
investment companies. To the extent any such assets are sold by AFS
to CRMC and/or any of its affiliates, such sales shall be at fair
market value at the time of sale as agreed upon by AFS, the purchasing
company or companies, and the Review and Advisory Committee. After
all assets of AFS have been converted to cash and all liabilities of
AFS have been paid or discharged, an amount equal to any capital or
paid-in surplus of AFS that shall have been contributed by CRMC or its
affiliates shall be set aside in cash for distribution to CRMC upon
liquidation of AFS. Any other capital or surplus and any assets of
AFS remaining after the foregoing provisions for liabilities and
return of capital or paid-in surplus to CRMC shall be distributed to
the participating investment companies in such proportions as may be
determined by the Review and Advisory Committee.
12. In the event of disagreement between the Fund and AFS, or
between the Fund and other participating investment companies as to
any matter arising under this Agreement, which the parties to the
disagreement are unable to resolve, the question shall be referred to
the Review and Advisory Committee for resolution. If the Review and
Advisory Committee is unable to resolve the question to the
satisfaction of both parties, either party may elect to submit the
question to arbitration; one arbitrator to be named by each party to
the disagreement and a third arbitrator to be selected by the two
arbitrators named by the original parties. The decision of a majority
of the arbitrators shall be final and binding on all parties to the
arbitration. The expenses of such arbitration shall be paid by the
party electing to submit the question to arbitration.
13. The obligations of the Fund under this Agreement are not
binding upon any of the directors, trustees, officers, employees,
agents or shareholders of the Fund individually, but bind only the
Fund itself. AFS agrees to look solely to the assets of the Fund for
the satisfaction of any liability of the Fund in respect to this
Agreement and will not seek recourse against such directors, trustees,
officers, employees, agents or shareholders, or any of them or their
personal assets for such satisfaction.
AMERICAN FUNDS SERVICE COMPANY
By /s/ Don R. Conlan
- ------------------------------
Don R. Conlan, Chairman
By /s/ Kenneth R. Gorvetzian
- ------------------------------
Kenneth R. Gorvetzian, Secretary
AMERICAN BALANCED FUND, INC.
By /s/ Walter P. Stern
- ------------------------------
Walter P. Stern, Chairman
By /s/ Patrick F. Quan
- ------------------------------
Patrick F. Quan, Secretary
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<INVESTMENTS-AT-COST> 2220265
<INVESTMENTS-AT-VALUE> 2457454
<RECEIVABLES> 40144
<ASSETS-OTHER> 56
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 2497654
<PAYABLE-FOR-SECURITIES> 15312
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1037
<TOTAL-LIABILITIES> 16349
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2007636
<SHARES-COMMON-STOCK> 185884311
<SHARES-COMMON-PRIOR> 173543068
<ACCUMULATED-NII-CURRENT> 7556
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 43040
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 237189
<NET-ASSETS> 2481305
<DIVIDEND-INCOME> 23259
<INTEREST-INCOME> 36930
<OTHER-INCOME> 0
<EXPENSES-NET> 7947
<NET-INVESTMENT-INCOME> 52242
<REALIZED-GAINS-CURRENT> 43100
<APPREC-INCREASE-CURRENT> 198577
<NET-CHANGE-FROM-OPS> 293919
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 50367
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 31002813
<NUMBER-OF-SHARES-REDEEMED> 22298636
<SHARES-REINVESTED> 3637066
<NET-CHANGE-IN-ASSETS> 399419
<ACCUMULATED-NII-PRIOR> 5690
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (60)
<GROSS-ADVISORY-FEES> 3699
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 7947
<AVERAGE-NET-ASSETS> 2293973
<PER-SHARE-NAV-BEGIN> 12.00
<PER-SHARE-NII> .29
<PER-SHARE-GAIN-APPREC> 1.34
<PER-SHARE-DIVIDEND> .28
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.35
<EXPENSE-RATIO> .004
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
