SEC File Nos. 2-10811
811-116
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
Registration Statement
Under
the Securities Act of 1933
Post-Effective Amendment No. 98
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 22
THE INVESTMENT COMPANY OF AMERICA
(Exact Name of Registrant as specified in charter)
333 South Hope Street
Los Angeles, California 90071
(Address of principal executive offices)
Registrant's telephone number, including area code:
(213) 486-9200
VINCENT P. CORTI
CAPITAL RESEARCH AND MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071
(name and address of agent for service)
Copies to:
JOHN B. POWER, ESQ.
O'MELVENY & MYERS
400 South Hope Street
Los Angeles, California 90071
(Counsel for the Registrant)
The Registrant has filed a declaration pursuant to rule 24f-2
registering an indefinite number of shares under the Securities Act of 1933.
On February 18, 1995, it filed its 24f-2 notice for fiscal 1994.
Approximate date of proposed public offering:
It is proposed that this filing become effective on February 28, 1995,
pursuant to paragraph (b) of rule 485.
THE INVESTMENT COMPANY OF AMERICA
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
ITEM NUMBER OF CAPTIONS IN PROSPECTUS (PART "A")
PART "A" OF FORM N-1A
<S> <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 Company Organization and Management;
Investment Objectives and Policies;
Investment Techniques
5. Management of the Fund Financial Highlights; Company Organization and Management; Investment
Techniques
6. Capital Stock and Other Securities Investment Objectives and Policies; Investment Techniques;
Company Organization and Management;
Dividends, Distributions and Taxes
7. Purchase of Securities Being Offered Purchasing Shares; Company Organization and Management; Shareholder
Services
8. Redemption or Repurchase Redeeming Shares
9. Legal Proceedings N/A
</TABLE>
<TABLE>
<CAPTION>
ITEM NUMBER OF CAPTIONS IN STATEMENT OF
PART "B" OF FORM N-1A ADDITIONAL INFORMATION (PART "B")
<S> <C> <C>
10. Cover Page Cover
11. Table of Contents Table of Contents
12. General Information and History Company Organization and Management (Part "A")
13. Investment Objectives and Policies Investment Policies; Description of Certain Securities;
Investment Restrictions.
14. Management of the Registrant Company Directors and Officers; Management
15. Control Persons and Principal Company Directors and Officers
Holders of Securities
16. Investment Advisory and Management
Other Services
17. Brokerage Allocation and Execution of Portfolio Transactions
Other Practices
18. Capital Stock and Other Securities None
19. Purchase, Redemption and Pricing of Purchase of Shares; Shareholder Account
Securities Being Offered Services and Privileges; Redemption of Shares
20. Tax Status Dividends, Distributions and Federal Taxes
21. Underwriter Management -- Principal Underwriter
22. Calculation of Performance Data Investment Results
23. Financial Statements Financial Statements
</TABLE>
<TABLE>
<CAPTION>
ITEM IN PART "C"
<S> <C> <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 Underwriters
30. Location of Accounts and Records
31. Management Services
32. Undertakings
Signature Page
</TABLE>
<PAGE>
PROSPECTUS
THE INVESTMENT
COMPANY OF AMERICA(R)
AN OPPORTUNITY FOR LONG-TERM
GROWTH OF CAPITAL AND INCOME
[LOGO OF THE AMERICAN FUNDS GROUP(R)]
February 28, 1995
THE INVESTMENT COMPANY OF AMERICA
333 South Hope Street
Los Angeles, CA 90071
The company's investment objectives are long-term growth of capital and
income. The company strives to accomplish these objectives through constant
supervision, careful selection and broad diversification of a portfolio which
ordinarily consists principally of common stocks.
This prospectus presents information you should know before investing in the
company. It should be retained for future reference.
You may obtain the statement of additional information dated February 28,
1995, which contains the company's financial statements, without charge, by
writing to the Secretary of the company at the above address or telephoning
800/421-0180. These requests will be honored within three business days of
receipt.
SHARES OF THE COMPANY ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED,
GUARANTEED, OR ENDORSED BY, THE U.S. GOVERNMENT, ANY BANK, THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, OR ANY OTHER AGENCY, ENTITY
OR PERSON. THE PURCHASE OF COMPANY 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.
04-010-0295
<PAGE>
- -------------------------------------------------------------------------------
SUMMARY
OF EXPENSES
Average annual
expenses paid over a
10-year period would
be approximately
$13 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
Investment Techniques........................ 5
Investment Results........................... 7
Dividends, Distributions and Taxes........... 7
Company Organization and Management.......... 8
The American Funds Shareholder Guide......... 11-20
Purchasing Shares......................... 11
Reducing Your Sales Charge................ 14
Shareholder Services...................... 16
Redeeming Shares.......................... 18
Retirement Plans.......................... 20
</TABLE>
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)
This table is designed to help you understand costs of
investing in the company. These are historical ex-
penses; 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 company has no sales charge on reinvested dividends, deferred sales
charge,/2/ redemption fees or exchange fees.
ANNUAL COMPANY OPERATING EXPENSES (as a percentage of average net assets)
<TABLE>
<S> <C>
Management fees......................................... 0.26%
12b-1 expenses.......................................... 0.20%/3/
Other expenses (including audit, legal, shareholder
services, transfer agent and custodian expenses)...... 0.14%
Total company operating expenses........................ 0.60%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following
cumulative expenses on a $1,000
investment, assuming
a 5% annual return./4/ $63 $76 $89 $128
</TABLE>
/1/ Sales charges are reduced for certain large
purchases. (See "The American Funds Shareholder
Guide: Purchasing Shares--Sales Charges.")
/2/ 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 or
any other purchaser investing at least $1 million in
shares of the company (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 company's
average net assets annually. (See "Company
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.
2
<PAGE>
- -------------------------------------------------------------------------------
FINANCIAL The following information has been audited by Price
HIGHLIGHTS Waterhouse LLP, independent accountants, whose unquali-
fied report relating to the most recent five years is
(For a share included in the statement of additional information.
outstanding This information should be read in conjunction with the
throughout the financial statements and accompanying notes which are
fiscal year) also included in the statement of additional informa-
tion.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
----------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 18.72 $ 17.89 $ 17.48 $ 14.52 $15.24 $12.94 $12.61 $13.19 $13.51 $11.00
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income... .51 .54 .49 .51 .57 .61 .51 .46 .45 .45
Net realized and
unrealized gain (loss)
on investments......... (.48) 1.51 .71 3.27 (.48) 3.13 1.14 .23 2.12 2.99
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
Total from Investment
Operations........... .03 2.05 1.20 3.78 .09 3.74 1.65 .69 2.57 3.44
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net
investment income..... (.48) (.47) (.47) (.44) (.59) (.59) (.56) (.52) (.44) (.44)
Distributions from net
realized gains........ (.60) (.75) (.32) (.38) (.22) (.85) (.76) (.75) (2.45) (.49)
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
Total Distributions... (1.08) (1.22) (.79) (.82) (.81) (1.44) (1.32) (1.27) (2.89) (.93)
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
Net Asset Value, End
of Year.............. $ 17.67 $ 18.72 $ 17.89 $ 17.48 $14.52 $15.24 $12.94 $12.61 $13.19 $13.51
======= ======= ======= ======= ====== ====== ====== ====== ====== ======
Total Return/1/........ .16% 11.62% 6.99% 26.54% .68% 29.41% 13.34% 5.44% 21.74% 33.39%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets, End of Year
(in millions)......... $19,280 $19,005 $15,428 $10,526 $5,923 $5,376 $4,119 $3,889 $3,730 $3,073
Ratios of Expenses to
Average Net Assets.... .60% .59% .58% .59% .55% .52% .48% .42% .41% .43%
Ratio of Net Income to
Average Net Assets.... 2.83% 3.03% 3.06% 3.29% 3.95% 4.11% 3.78% 3.14% 3.47% 3.80%
Portfolio Turnover Rate
--common stocks...... 17.94% 19.57% 7.23% 5.79% 7.48% 14.47% 10.39% 10.76% 10.80% 17.15%
--investment
securities......... 31.08% 17.57% 9.73% 6.21% 10.94% 18.22% 16.41% 11.47% 10.31% 17.51%
</TABLE>
--------
/1/ This was calculated without deducting a sales charge. The maximum sales
charge is 5.75% of the company's offering price.
INVESTMENT The company's investment objectives are long-term
OBJECTIVES growth of capital and income. The company strives to
AND POLICIES accomplish these objectives through constant supervi-
sion, careful selection and broad diversification. In
the selection of securities for investment, the possi-
The company aims bilities of appreciation and potential dividends are
to provide you given more weight than current yield. The company ordi-
with long-term narily invests principally in common stocks. However,
growth of capital assets may also be held in securities convertible into
and income. common stocks, straight debt securities (rated in the
top three quality categories by Standard & Poor's Cor-
poration or Moody's Investors Service, Inc. or deter-
mined to be of equivalent quality by Capital Research
and Management Company), cash or cash equivalents, U.S.
Government securities, or nonconvertible preferred
stocks. (See the statement of additional information
for a description of cash equivalents.)
3
<PAGE>
- -------------------------------------------------------------------------------
Additionally, the company may from time to time invest
in common stocks and other securities of issuers domi-
ciled outside the U.S. (See "Investment Techniques--
Risks of Investing in Various Countries.")
The company's investments are limited to securities in-
cluded on its eligible list, which consists of securi-
ties deemed suitable investment media in light of the
company's investment objectives and policies. Securi-
ties are added to, or deleted from, the eligible list
by the board of directors, reviewing and acting upon
the recommendations of Capital Research and Management
Company.
The company's investment restrictions (which are de-
scribed in the statement of additional information) and
objectives cannot be changed without shareholder ap-
proval. All other investment practices may be changed
by the company's board.
ACHIEVEMENT OF THE COMPANY'S INVESTMENT OBJECTIVES CAN-
NOT, OF COURSE, BE ASSURED DUE TO THE RISK OF CAPITAL
LOSS FROM FLUCTUATING PRICES INHERENT IN ANY INVESTMENT
IN SECURITIES.
4
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT RISKS OF INVESTING Because the company invests in
TECHNIQUES stocks, the company is subject to market risks includ-
ing, for example, the possibility that stock prices in
Investing in general may decline over short or even extended periods.
stocks involves The company may also invest in fixed-income securities,
certain risks. including bonds, which have market values which tend to
vary inversely with the level of interest rates--when
interest rates rise, their values will tend to decline
and vice versa. Although under normal market conditions
longer term securities yield more than shorter term se-
curities of similar quality, they are subject to greater
price fluctuations. These fluctuations in the value of
the investments will be reflected in the company's net
asset value per share.
RISKS OF INVESTING IN VARIOUS COUNTRIES Generally, the
company will invest no more than approximately 10% of
its assets in securities of issuers which are not
included in the Standard & Poor's 500 Composite Index (a
broad measure of the U.S. stock market) and which are
domiciled outside the U.S. Of course, investing
internationally involves special risks caused by, among
other things: fluctuating currency values; different
accounting, auditing, and financial reporting
regulations and practices in some countries; changing
local and regional economic, political, and social
conditions; differing securities market structures; and
occasional administrative difficulties such as delays in
clearing and settling portfolio transactions or in
receiving payment of dividends.
However, in the opinion of Capital Research and
Management Company, global investing also can reduce
certain portfolio risks due to greater diversification
opportunities.
Additional costs could be incurred in connection with
the company's investment activities outside the U.S.
Brokerage commissions are generally higher outside the
U.S., and the company will bear certain expenses in
connection with its currency transactions. The company
may enter into currency exchange contracts for the
purpose of fixing the dollar cost or proceeds for a
transaction. Furthermore, increased custodian costs may
be associated with the maintenance of assets in certain
jurisdictions.
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 company is divided into segments which are managed
by individual counselors. Each counselor decides how the
segment will be invested (within the limits provided by
the company's objectives 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 company's portfolio. The
primary individual portfolio counselors for the company
are listed on the next page.
5
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
YEARS OF EXPERIENCE
YEARS OF EXPERIENCE AS INVESTMENT
AS PORTFOLIO PROFESSIONAL
COUNSELOR (AND (APPROXIMATE)
RESEARCH
PROFESSIONAL IF WITH CAPITAL
PORTFOLIO APPLICABLE) FOR RESEARCH AND
COUNSELORS FOR THE THE INVESTMENT MANAGEMENT
INVESTMENT COMPANY COMPANY OF AMERICA COMPANY OR ITS TOTAL
OF AMERICA PRIMARY TITLE(S) (APPROXIMATE) AFFILIATES YEARS
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jon B. Lovelace, Jr. Chairman of the Board of 37 years (plus 5 years as 43 years 43 years
the Company. Vice Chairman of research professional prior
the Board of Directors and to becoming a portfolio
Chairman of the Executive counselor for the company)
Committee, Capital Research and
Management Company
William C. Newton President and Director of the 33 years 36 years 42 years
Company. Senior Partner, The
Capital Group Partners L.P.*
William R. Grimsley Senior Vice President of the 23 years 25 years 32 years
Company. Senior Vice President
and Director, Capital Research
and Management Company
R. Michael Shanahan Senior Vice President of the 4 years (plus 7 years as 30 years 30 years
Company. Chairman of the research professional prior
Board and Principal to becoming a portfolio
Executive Officer, Capital counselor for the company)
Research and Management
Company
Gregg E. Ireland Vice President of the Company. 3 years (plus 10 years as 22 years 22 years
Vice President, Capital Research research professional prior
and Management Company to becoming a portfolio
counselor for the company)
James B. Lovelace Vice President of the Company. 3 years (plus 4 years as 13 years 13 years
Vice President, Capital Research research professional; prior
and Management Company to becoming a portfolio
counselor for the company)
Donald D. O'Neal Vice President of the Company. 3 years (plus 4 years as 10 years 10 years
Vice President, Capital Research research professional prior
and Management Company to becoming a portfolio
counselor for the company)
George A. Miller Senior Vice President and 4 years (plus 15 years as 20 years 34 years
Director, Capital Research and research professional prior
Management Company to becoming a portfolio
counselor for the company)
</TABLE>
* Company affiliated with Capital Research and Management Company
6
<PAGE>
- -------------------------------------------------------------------------------
INVESTMENT RESULTS The company may from time to time compare its invest-
ment results to various unmanaged indices or other mu-
The company has tual funds in reports to shareholders, sales literature
averaged a total and advertisements. The results may be calculated on a
return of 12.83% a yield and/or total return basis for various periods,
year (assuming the with or without sales charges. Results calculated with-
maximum sales out a sales charge will be higher. Total returns assume
charge was paid) the reinvestment of all dividends and capital gain dis-
over its lifetime tributions.
(January 1, 1934
through December The company's yield and the average annual total
31, 1994). returns are calculated in accordance with Securities
and Exchange Commission rules which require that the
maximum sales charge be deducted. The company's yield
for the 30-day period ended December 31, 1994 was
3.13%. The company's total return over the past year
and average annual total returns over the past five-
and ten-year periods, as of December 31, 1994, were
-5.60%, 7.51%, and 13.69%, respectively. Of course, past
results are not an indication of future results.
Further information regarding the company's investment
results is contained in the company's annual report
which may be obtained without charge by writing to the
Secretary of the company at the address indicated on
the cover of this prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS AND in March, June, September and December. Capital gains,
TAXES if any, are usually distributed in December. When a
dividend or capital gain is distributed, the net asset
Income value per share is reduced by the amount of the pay-
distributions are ment.
usually made in
March, June, FEDERAL TAXES The company intends to operate as a
September and "regulated investment company" under the Internal
December. Revenue Code. In any fiscal year in which the company
so qualifies and distributes to shareholders all of its
net investment income and net capital gains, the
company 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 COMPANY 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 COMPANY
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
7
<PAGE>
- -------------------------------------------------------------------------------
company 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 company. Please see the
statement of additional information and your tax ad-
viser for further information.
COMPANY COMPANY ORGANIZATION AND VOTING RIGHTS The company, an
ORGANIZATION open-end, diversified management investment company,
AND was organized as a Delaware corporation in 1933. The
MANAGEMENT company's board supervises company operations and per-
forms duties required by applicable state and federal
The company is a law. Members of the board who are not employed by Capi-
member of The tal Research and Management Company or its affiliates
American Funds are paid certain fees for services rendered to the com-
Group, which is pany as described in the statement of additional infor-
managed by one of mation. They may elect to defer all or a portion of
the largest and these fees through a deferred compensation plan in ef-
most experienced fect for the company. All shareholders have one vote
investment per share owned and, at the request of the holders of
advisers. at least 10% of the shares, the company will hold a
meeting at which any member of the board could be re-
moved by a majority vote.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the company 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 company and receives a fee at
the annual rate of 0.39% on the first $1.0 billion of
the company's net assets, plus 0.336% on net assets
over $1.0 billion to $2.0 billion, plus 0.30% on net
assets over $2.0 billion to $3.0 billion, plus 0.276%
on net assets over $3.0 billion to $5.0 billion, plus
0.258% on net assets over $5 billion to $8 billion,
plus 0.246% on net assets over $8 billion to $13
billion, plus 0.24% on net assets in excess of $13
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.
8
<PAGE>
- -------------------------------------------------------------------------------
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 company's portfo-
lio securities transactions are placed by Capital Re-
search 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 di-
rectly with principal market-makers except in those
circumstances where it appears better prices and execu-
tions 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 company or have provided
investment research, statistical, and other related
services for the benefit of the company 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
company'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 company 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 is in effect. Expenditures by the company
under the plan may not exceed 0.25% of its average net
assets annually (all of which may be for service fees).
(See "Purchasing Shares--Sales Charges" below.)
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 $16,006,000 for
the year ended December 31, 1994. Telephone
conversations with American Funds Service Company may
be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
9
<PAGE>
- --------------------------------------------------------------------------------
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, TN and 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]
-----------------------------------------------------------
West (light grey); Central-West (white); Central-East
(dark grey), East (orange)
10
<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 number(s), investments in the
if necessary. same manner as
Please indicate described under
an investment "Initial 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 company or
American Funds Service Company. In the case of orders
sent directly to the company 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 company'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 on the basis of the penny-rounding method in
accordance with rules of the Securities and Exchange
Commission.
11
<PAGE>
- -------------------------------------------------------------------------------
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.
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
AVAILABLE 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
</TABLE>
<TABLE>
<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).
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. TAX-EXEMPT FUNDS SHOULD NOT SERVE AS
RETIREMENT PLAN INVESTMENTS. The minimum is $50 for
additional investments (except as noted above).
12
<PAGE>
- -------------------------------------------------------------------------------
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.)
<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
million or more, for 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 (paid pursuant to the
company's plan of distribution), and for purchases made
at net asset value by certain retirement plans of
organizations with collective retirement 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 provide
additional promotional incentives to dealers. Currently
these incentives are limited to the top one hundred
dealers who have sold shares of the company 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.
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 or
any other purchaser investing at least $1 million in
shares of the company (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
13
<PAGE>
- -------------------------------------------------------------------------------
charge of 1% is imposed on certain redemptions within
one year of the purchase. (See "Redeeming Shares--
Contingent Deferred Sales Charge.")
Qualified dealers currently are paid a continuing
service 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 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 company.
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
Washington 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 or retired registered
representatives or full-time employees and their
spouses and minor children of dealers having sales
agreements with American Funds Distributors and plans
for such persons; (3) companies exchanging securities
with the company through a merger, acquisition or
exchange offer; (4) trustees or other fiduciaries
purchasing shares for certain retirement plans of
organizations with retirement plan assets of $100
million or more; (5) insurance company separate
accounts; (6) accounts managed by subsidiaries of The
Capital Group Companies, Inc.; and (7) The Capital
Group Companies, 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
14
<PAGE>
- -------------------------------------------------------------------------------
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.
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.)
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.
15
<PAGE>
- -------------------------------------------------------------------------------
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 company 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 company, American Funds Service Company
change. or 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 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
distributions.
You may exchange shares by writing to American Funds
Service Company (see "Redeeming Shares"), by contacting
your investment dealer, by using American FundsLine(R)
(see "Shareholder Services--American FundsLine(R)" be-
low), or by telephoning 800/421-0180 toll-free, faxing
(see "Transfer Agent" above for the appropriate fax
numbers) or telegraphing American Funds Service Compa-
ny. (See "Redeeming Shares--Telephone Redemptions and
Exchanges" below.) Shares held in corporate-type re-
tirement 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
16
<PAGE>
- -------------------------------------------------------------------------------
minimum initial investment requirement for the receiv-
ing 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 withdraw-
als 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.
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.
17
<PAGE>
- -------------------------------------------------------------------------------
REDEEMING By writing to Send a letter of instruction
SHARES American specifying the name of the company,
Funds Service the number of shares or dollar amount
You may take money Company (at to be sold, your name and account
out of your the number. You should also enclose any
account whenever appropriate certificate shares you wish to
you please. address redeem. For redemptions over $50,000
indicated and for certain redemptions of
under $50,000 or less (see below), your
"Company signature must be guaranteed by a
Organization bank, savings association, credit
and union, or member firm of a domestic
Management-- stock exchange or the National
Transfer Association of Securities Dealers,
Agent") 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.
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 COMPANY
OR AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
TELEPHONE REDEMPTIONS AND EXCHANGES By using the
telephone (including American FundsLine(R)), telex, fax
or telegraph redemption and/or exchange options, you
agree to hold the company, American Funds Service
Company, any of its affiliates or mutual funds managed
by such affiliates, and each of their respective
directors, trustees,
18
<PAGE>
- -------------------------------------------------------------------------------
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
company may be liable for losses due to unauthorized or
fraudulent instructions. In the event that shareholders
are unable to reach the company 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 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 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 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
19
<PAGE>
- -------------------------------------------------------------------------------
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 company through various
PLANS retirement 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 INVESTMENT
COMPANY OF AMERICA(R)
AN OPPORTUNITY FOR LONG-TERM
GROWTH OF CAPITAL AND INCOME
[LOGO OF THE AMERICAN FUNDS GROUP(R)]
February 28, 1995
THE INVESTMENT COMPANY OF AMERICA
333 South Hope Street
Los Angeles, CA 90071
The company's investment objectives are long-term growth of capital and
income. The company strives to accomplish these objectives through constant
supervision, careful selection and broad diversification of a portfolio which
ordinarily consists principally of common stocks.
This prospectus relates only to shares of the company offered without a sales
charge through eligible retirement plans. For a prospectus regarding shares of
the company to be acquired otherwise, contact the Secretary of the company at
the address indicated above.
This prospectus presents information you should know before investing in the
company. It should be retained for future reference.
You may obtain the statement of additional information for the company dated
February 28, 1995, which contains the company's financial statements, without
charge, by writing to the Secretary of the company at the above address or
telephoning 800/421-0180. These requests will be honored within three business
days of receipt.
SHARES OF THE COMPANY ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED,
GUARANTEED, OR ENDORSED BY THE U.S. GOVERNMENT, ANY BANK, THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, 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.
04-010-0295
<PAGE>
- -------------------------------------------------------------------------------
SUMMARY
OF EXPENSES
Average annual
expenses paid over a
10-year period would
be approximately
$8 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 Objectives and
Policies................... 3
Investment Techniques........ 4
Investment Results........... 7
Dividends, Distributions
and Taxes.................. 7
Company Organization and
Management................. 8
Purchasing Shares............ 9
Shareholder Services......... 11
Redeeming Shares............. 11
</TABLE>
This table is designed to help you understand costs of
investing in the company. These are historical ex-
penses; your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
Certain retirement plans may purchase shares of the
company with no sales charge./1/ The company also has
no sales charge on reinvested dividends, redemption
fees or exchange fees.
ANNUAL COMPANY OPERATING EXPENSES (as a percentage of
average net assets)
<TABLE>
<S> <C>
Management fees......................................... 0.26%
12b-1 expenses.......................................... 0.20%/2/
Other expenses (including audit, legal, shareholder
services, transfer agent and custodian expenses)...... 0.14%
Total company operating expenses........................ 0.60%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following
cumulative expenses on a $1,000
investment, assuming
a 5% annual return./3/ $6 $19 $33 $75
</TABLE>
/1/ Retirement plans of organizations with $100 million
or more in collective retirement plan assets may
purchase shares of the company with no sales charge.
In addition, 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 or any other plan that invests at least $1
million in shares of the company (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 company's
average net assets annually. (See "Company
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>
- -------------------------------------------------------------------------------
FINANCIAL The following information has been audited by Price
HIGHLIGHTS Waterhouse LLP, independent accountants, whose unquali-
fied report relating to the most recent five years is
(For a share included in the statement of additional information.
outstanding This information should be read in conjunction with the
throughout the financial statements and accompanying notes which are
fiscal year) also included in the statement of additional informa-
tion.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
----------------------------------------------------------------------------------
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 18.72 $ 17.89 $ 17.48 $ 14.52 $15.24 $12.94 $12.61 $13.19 $13.51 $11.00
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income... .51 .54 .49 .51 .57 .61 .51 .46 .45 .45
Net realized and
unrealized gain (loss)
on investments......... (.48) 1.51 .71 3.27 (.48) 3.13 1.14 .23 2.12 2.99
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
Total from Investment
Operations........... .03 2.05 1.20 3.78 .09 3.74 1.65 .69 2.57 3.44
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net in-
vestment income....... (.48) (.47) (.47) (.44) (.59) (.59) (.56) (.52) (.44) (.44)
Distributions from net
realized gains........ (.60) (.75) (.32) (.38) (.22) (.85) (.76) (.75) (2.45) (.49)
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
Total Distributions... (1.08) (1.22) (.79) (.82) (.81) (1.44) (1.32) (1.27) (2.89) (.93)
------- ------- ------- ------- ------ ------ ------ ------ ------ ------
Net Asset Value, End
of Year.............. $ 17.67 $ 18.72 $ 17.89 $ 17.48 $14.52 $15.24 $12.94 $12.61 $13.19 $13.51
======= ======= ======= ======= ====== ====== ====== ====== ====== ======
Total Return/1/........ .16% 11.62% 6.99% 26.54% .68% 29.41% 13.34% 5.44% 21.74% 33.39%
RATIOS/SUPPLEMENTAL
DATA:
Net Assets, End of Year
(in millions)......... $19,280 $19,005 $15,428 $10,526 $5,923 $5,376 $4,119 $3,889 $3,730 $3,073
Ratios of Expenses to
Average Net Assets.... .60% .59% .58% .59% .55% .52% .48% .42% .41% .43%
Ratio of Net Income to
Average Net Assets.... 2.83% 3.03% 3.06% 3.29% 3.95% 4.11% 3.78% 3.14% 3.47% 3.80%
Portfolio Turnover Rate
--common stocks...... 17.94% 19.57% 7.23% 5.79% 7.48% 14.47% 10.39% 10.76% 10.80% 17.15%
--investment securi-
ties............... 31.08% 17.57% 9.73% 6.21% 10.94% 18.22% 16.41% 11.47% 10.31% 17.51%
</TABLE>
--------
/1/ Calculated with no sales charge.
INVESTMENT The company's investment objectives are long-term
OBJECTIVES growth of capital and income. The company strives to
AND POLICIES accomplish these objectives through constant supervi-
sion, careful selection and broad diversification. In
The company aims the selection of securities for investment, the possi-
to provide you bilities of appreciation and potential dividends are
with long-term given more weight than current yield. The company ordi-
growth of capital narily invests principally in common stocks. However,
and income. assets may also be held in securities convertible into
common stocks, straight debt securities (rated in the
top three quality categories by Standard & Poor's Cor-
poration or Moody's Investors Service, Inc. or deter-
mined to be of equivalent quality by Capital Research
and Management Company), cash or cash equivalents, U.S.
Government securities, or nonconvertible preferred
stocks. (See the statement of additional information
for a description of cash equivalents.)
3
<PAGE>
- -------------------------------------------------------------------------------
Additionally, the company may from time to time invest
in common stocks and other securities of issuers domi-
ciled outside the U.S. (See "Investment Techniques--
Risks of Investing in Various Countries.")
The company's investments are limited to securities in-
cluded on its eligible list, which consists of securi-
ties deemed suitable investment media in light of the
company's investment objectives and policies. Securi-
ties are added to, or deleted from, the eligible list
by the board of directors, reviewing and acting upon
the recommendations of Capital Research and Management
Company.
The company's investment restrictions (which are de-
scribed in the statement of additional information) and
objectives cannot be changed without shareholder ap-
proval. All other investment practices may be changed
by the company's board.
ACHIEVEMENT OF THE COMPANY'S INVESTMENT OBJECTIVES CAN-
NOT, OF COURSE, BE ASSURED DUE TO THE RISK OF CAPITAL
LOSS FROM FLUCTUATING PRICES INHERENT IN ANY INVESTMENT
IN SECURITIES.
INVESTMENT RISKS OF INVESTING Because the company invests in
TECHNIQUES stocks, the company is subject to market risks, includ-
ing, for example, the possibility that stock prices in
Investing in general may decline over short or even extended peri-
stocks involves ods. The company may also invest in fixed-income secu-
certain risks. rities, including bonds, which have market values which
tend to vary inversely with the level of interest
rates--when interest rates rise, their values will tend
to decline and vice versa. Although under normal market
conditions longer term securities yield more than
shorter term securities of similar quality, they are
subject to greater price fluctuations. These fluctua-
tions in the value of the investments will be reflected
in the company's net asset value per share.
4
<PAGE>
- -------------------------------------------------------------------------------
RISKS OF INVESTING IN VARIOUS COUNTRIES Generally, the
company will invest no more than approximately 10% of
its assets in securities of issuers which are not
included in the Standard & Poor's 500 Composite Index
(a broad measure of the U.S. stock market) and which
are domiciled outside the U.S. Of course, investing
internationally involves special risks caused by, among
other things: fluctuating currency values; different
accounting, auditing, and financial reporting
regulations and practices in some countries; changing
local and regional economic, political, and social
conditions; differing securities market structures; and
occasional administrative difficulties such as delays
in clearing and settling portfolio transactions or in
receiving payment of dividends.
However, in the opinion of Capital Research and
Management Company, global investing also can reduce
certain portfolio risks due to greater diversification
opportunities.
Additional costs could be incurred in connection with
the company's investment activities outside the U.S.
Brokerage commissions are generally higher outside the
U.S., and the company will bear certain expenses in
connection with its currency transactions. The company
may enter into currency exchange contracts for the
purpose of fixing the dollar cost or proceeds for a
transaction. Furthermore, increased custodian costs may
be associated with the maintenance of assets in certain
jurisdictions.
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 company is divided into
segments which are managed by individual counselors.
Each counselor decides how the segment will be invested
(within the limits provided by the company's objectives
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 company's portfolio. The primary
individual portfolio counselors for the company are
listed on the next page.
5
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
YEARS OF EXPERIENCE
YEARS OF EXPERIENCE AS INVESTMENT
AS PORTFOLIO PROFESSIONAL
COUNSELOR (AND (APPROXIMATE)
RESEARCH
PROFESSIONAL IF WITH CAPITAL
PORTFOLIO APPLICABLE) FOR RESEARCH AND
COUNSELORS FOR THE THE INVESTMENT MANAGEMENT
INVESTMENT COMPANY COMPANY OF AMERICA COMPANY OR ITS TOTAL
OF AMERICA PRIMARY TITLE(S) (APPROXIMATE) AFFILIATES YEARS
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jon B. Lovelace, Jr. Chairman of the Board of 37 years (plus 5 years as 43 years 43 years
the Company. Vice Chairman of research professional prior
the Board of Directors and to becoming a portfolio
Chairman of the Executive counselor for the company)
Committee, Capital Research and
Management Company
William C. Newton President and Director of the 33 years 36 years 42 years
Company. Senior Partner, The
Capital Group Partners L.P.*
William R. Grimsley Senior Vice President of the 23 years 25 years 32 years
Company. Senior Vice President
and Director, Capital Research
and Management Company
R. Michael Shanahan Senior Vice President of the 4 years (plus 7 years as 30 years 30 years
Company. Chairman of the research professional prior
Board and Principal to becoming a portfolio
Executive Officer, Capital counselor for the company)
Research and Management
Company
Gregg E. Ireland Vice President of the Company. 3 years (plus 10 years as 22 years 22 years
Vice President, Capital Research research professional prior
and Management Company to becoming a portfolio
counselor for the company)
James B. Lovelace Vice President of the Company. 3 years (plus 4 years as 13 years 13 years
Vice President, Capital Research research professional; prior
and Management Company to becoming a portfolio
counselor for the company)
Donald D. O'Neal Vice President of the Company. 3 years (plus 4 years as 10 years 10 years
Vice President, Capital Research research professional prior
and Management Company to becoming a portfolio
counselor for the company)
George A. Miller Senior Vice President and 4 years (plus 15 years as 20 years 34 years
Director, Capital Research and research professional prior
Management Company to becoming a portfolio
counselor for the company)
</TABLE>
* Company affiliated with Capital Research and Management Company
6
<PAGE>
- -------------------------------------------------------------------------------
INVESTMENT RESULTS The company may from time to time compare its invest-
ment results to various unmanaged indices or other mu-
The company has tual funds in reports to shareholders, sales literature
averaged a total and advertisements. The results may be calculated on a
return (at no total return and/or yield basis for various periods,
sales charge) of with or without sales charges. Results calculated with-
12.94% a year over out a sales charge will be higher. Total returns assume
its lifetime the reinvestment of all dividends and capital gain dis-
(January 1, 1934 tributions.
through December
31, 1994). The company's yield and the average annual total
returns are calculated in accordance with Securities
and Exchange Commission requirements with no sales
charge. The company's yield for the 30-day period ended
December 31, 1994 was 3.32%. The company's total return
over the past 12 months and average annual total
returns over the past five-year and ten-year periods,
as of December 31, 1994, were 0.16%, 8.79%, and 14.36%,
respectively. Of course, past results are not an
indication of future results. Further information
regarding the company's investment results is contained
in the company's annual report which may be obtained
without charge by writing to the Secretary of the
company at the address indicated on the cover of this
prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS AND in March, June, September and December. Capital gains,
TAXES if any, are usually distributed in December. When a
dividend or capital gain is distributed, the net asset
Income value per share is reduced by the amount of the pay-
distributions are ment.
usually made in
March, June, The terms of your plan will govern how your plan may
September and receive distributions from the company. Generally, pe-
December. riodic distributions from the company to your plan are
reinvested in additional company shares, although your
plan may permit company distributions from net invest-
ment income to be received by you in cash while rein-
vesting capital gains distributions in additional
shares or all company distributions to be received in
cash. Unless you select another option, all distribu-
tion will be reinvested in additional company shares.
FEDERAL TAXES The company intends to operate as a
"regulated investment company" under the Internal
Revenue Code. In any fiscal year in which the company
so qualifies and distributes to shareholders all of its
net investment income and net capital gains, the
company 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.
7
<PAGE>
- -------------------------------------------------------------------------------
COMPANY COMPANY ORGANIZATION AND VOTING RIGHTS The company, an
ORGANIZATION open-end, diversified management investment company,
AND was organized as a Delaware corporation in 1933. The
MANAGEMENT company's board supervises company operations and per-
forms duties required by applicable state and federal
The company is a law. Members of the board who are not employed by Capi-
member of The tal Research and Management Company or its affiliates
American Funds are paid certain fees for services rendered to the com-
Group, which is pany as described in the statement of additional infor-
managed by one of mation. They may elect to defer all or a portion of
the largest and these fees through a deferred compensation plan in ef-
most experienced fect for the company. All shareholders have one vote
investment per share owned and, at the request of the holders of
advisers. at least 10% of the shares, the company will hold a
meeting at which any member of the board could be re-
moved by a majority vote.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the company 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 company and receives a fee at
the annual rate of 0.39% on the first $1.0 billion of
the company's net assets, plus 0.336% on net assets
over $1 billion to $2 billion, plus 0.30% on net assets
over $2 billion to $3 billion, plus 0.276% on net
assets over $3 billion to $5 billion, plus 0.258% on
net assets over $5 billion to $8 billion, plus 0.246%
on net assets over $8 billion to $13 billion, plus
0.24% on net assets in excess of $13 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 company'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
8
<PAGE>
- -------------------------------------------------------------------------------
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 company or have provided
investment research, statistical, and other related
services for the benefit of the company 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
company'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 company has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
these 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 is in
effect. Expenditures by the company 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 $16,006,000 for the fiscal year ended
December 31, 1994. 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 PUR-
CHASE SHARES OF THE COMPANY THROUGH YOUR EMPLOYER'S
PLAN OR LIMITATIONS ON THE AMOUNT THAT MAY BE PUR-
CHASED, PLEASE CONSULT WITH YOUR EMPLOYER. Shares are
sold to eligible retirement plans at the net asset
value per share next determined
9
<PAGE>
- -------------------------------------------------------------------------------
after receipt of an order by the company or American
Funds Service Company. Orders must be received before
the close of regular trading on the New York Stock Ex-
change 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 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 company (or in combi-
nation 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 de-
ferred sales charge of 1% is imposed on certain redemp-
tions 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 mil-
lion in fund shares subject to a commission over a max-
imum of 13 consecutive months. Certain redemptions of
such shares may also be subject to a contingent de-
ferred sales charge as described above. (See the state-
ment of additional information.)
American Funds Distributors, at its expense (from a
designated percentage of its income), will provide ad-
ditional promotional incentives to dealers. Currently
these incentives are limited to the top one hundred
dealers who have sold shares of the company or other
funds in The American Funds Group. These incentive pay-
ments will be based on a pro rata share of a qualifying
dealer's sales.
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 compensate
them for providing certain services. (See "Fund Organi-
zation and Management--Plan of Distribution.") These
services include processing purchase and redemption
transactions, establishing shareholder accounts and
providing certain information and assistance with re-
spect to the company.
Shares of the company 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 company or American Funds Service
Company. In the case of orders sent directly to the
company 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.")
The company'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 company'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.
10
<PAGE>
- -------------------------------------------------------------------------------
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 any restrictions in 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 company'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 Subject to any restrictions imposed by your plan, you
SHARES can sell your shares through the plan to the company
any day the New York Stock Exchange is open. For more
information about how to sell shares of the company
through your retirement plan, including any charges
that may be imposed by the plan, please consult with
your employer.
--------------------------------------------------------
By contacting Your plan administrator/trustee must
your plan send a letter of instruction
administrator/ specifying the name of the company,
trustee the number of shares or dollar amount
to 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 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 contacting Shares may also be redeemed through
your an investment dealer; however you or
investment your plan may be charged for this
dealer service. SHARES HELD FOR YOU IN AN
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 COMPANY
OR AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
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 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
11
<PAGE>
- -------------------------------------------------------------------------------
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; 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 company's
net asset value fluctuates, reflecting the market value
of the company's 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 COMPANY
OFFERED WITHOUT A SALES CHARGE TO ELIGIBLE RETIREMENT
PLANS. FOR A PROSPECTUS REGARDING SHARES OF THE
COMPANY TO BE ACQUIRED OTHERWISE, CONTACT THE
SECRETARY OF THE COMPANY AT THE ADDRESS INDICATED ON
THE FRONT.
12
THE INVESTMENT COMPANY OF AMERICA
PART B
STATEMENT OF ADDITIONAL INFORMATION
FEBRUARY 28, 1995
This document is not a prospectus but should be read in conjunction with the
current Prospectus of The Investment Company of America (the company or ICA)
dated February 28, 1995. The Prospectus may be obtained from your investment
dealer or financial planner or by writing to the company at the following
address:
THE INVESTMENT COMPANY OF AMERICA
ATTENTION: SECRETARY
333 SOUTH HOPE STREET
LOS ANGELES, CA 90071
(213) 486-9200
The fund has two forms of prospectuses. Each reference to the prospectus in
this Statement of Additional Information includes both of the company'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>
<CAPTION>
TABLE OF CONTENTS
ITEM PAGE NO.
<S> <C>
INVESTMENT POLICIES 1
DESCRIPTION OF CERTAIN SECURITIES 2
INVESTMENT RESTRICTIONS 4
COMPANY DIRECTORS AND OFFICERS 6
ADVISORY BOARD 12
MANAGEMENT 16
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES 18
PURCHASE OF SHARES 21
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES 23
REDEMPTION OF SHARES 24
EXECUTION OF PORTFOLIO TRANSACTIONS 24
GENERAL INFORMATION 25
INVESTMENT RESULTS 27
FINANCIAL STATEMENTS 35
</TABLE>
INVESTMENT POLICIES
FIXED-INCOME SECURITIES -- The company may invest in intermediate- and
long-term debt securities. If market interest rates increase, such
fixed-income securities generally decline in value and vice versa. If the
currency in which the security is denominated declines against the U.S. dollar,
the dollar value of the security will decline and vice versa.
DESCRIPTION OF CERTAIN SECURITIES
BOND RATINGS - The company may invest in debt securities which are rated in the
top three quality categories by Standard & Poor's Corporation or Moody's
Investors Service, Inc. or determined to be equivalent by Capital Research and
Management Company (the Investment Adviser). The top three rating categories
for Standard & Poor's and Moody's are described below:
STANDARD & POOR'S CORPORATION:
"Debt rated 'AAA' has the highest rating assigned by Standard & Poor's.
Capacity to pay interest and repay principal is extremely strong."
"Debt rated 'AA' has a very strong capacity to pay interest and repay
principal and differs from the higher rated issues only in small degree."
"Debt rated 'A' has 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 categories."
MOODY'S INVESTORS SERVICE, INC.:
"Bonds rated Aaa are judged to be of the best quality. They 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."
"Bonds rated Aa are judged to be of high quality by all standards. Together
with the Aaa group, they comprise what are generally known as high-grade bonds.
They are rated lower than the best bonds because margins of protection may not
be as large as in Aaa securities, or fluctuation of protective elements may be
of greater amplitude, or there may be other elements present which make the
long-term risks appear somewhat larger than the Aaa securities."
"Bonds rated A are judged to be of 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."
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. In 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.
Certain 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; and 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 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 (interest-bearing time deposits), 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 and loan
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 -- For the purpose of hedging currency exchange rate
risks, the company may enter into forward currency contracts. The company does
not have any current intention of entering into forward currency contracts
other than currency exchange contracts which will be entered into only during
the period between the trade date and the settlement date of a security
transaction to fix the dollar cost or proceeds for the transaction.
A forward currency contract involves 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. These contracts are traded in the interbank market conducted
directly between currency traders (usually large commercial banks). At the
maturity of a forward contract, the company may either accept or make delivery
of the currency specified in the contract or, prior to maturity, enter into a
closing transaction involving the purchase or sale of an offsetting contract.
Closing transactions with respect to forward contracts are usually effected
with the currency trader who is a party to the original contract.
INVESTMENT RESTRICTIONS
The company has adopted certain investment restrictions, which are fundamental
policies and cannot be changed without a majority vote of its outstanding
shares. Such majority is defined within the Investment Company Act of 1940
(the 1940 Act) as the vote of the lesser of (i) 67% or more of the outstanding
voting securities present at a meeting, if the holders of more than 50% of the
outstanding voting securities are present in person or by proxy, or (ii) more
than 50% of the outstanding voting securities.
These restrictions (which do not apply to the purchase of securities issued
or guaranteed by the U.S. Government) provide that the company shall make no
investment:
Which involves promotion or business management by the company;
In any security about which reliable information is not available with respect
to the history, management, assets, earnings, and income of the issuer;
If the investment would cause more than 5% of the value of the total assets of
the company, as they exist at the time of investment, to be invested in the
securities of any one issuer;
If the investment would cause more than 20% of the value of the total assets of
the company to be invested in the securities in any one industry;
If the investment would cause the company to own more than 10% of the
outstanding voting securities of any one issuer, provided that this restriction
shall apply as to 75% of the company's total assets; or
In any security which has not been placed on the company's Eligible List. (See
the Prospectus)
The company is not permitted to buy securities on margin, sell securities
short, borrow money, or to invest in real estate. (Although it has not been the
practice of the company to make such investments (and it has no current
intention of doing so at least for the next 12 months), the company may invest
in the securities of real estate investment trusts.)
The company has also adopted other fundamental policies which require the
company not to:
Concentrate its investment in any particular industry or group of industries.
Some degree of concentration may occur from time to time (within the 20%
limitation of the Certificate of Incorporation) as certain industries appear to
present desirable fields for investment.
Engage generally in the making of loans. Although the company has reserved the
right to make loans to unaffiliated persons subject to certain restrictions,
including requirements concerning collateral and amount of any loan, no loans
have been made since adoption of this fundamental policy more than 50 years
ago.
Act as underwriter of securities issued by others, engage in distribution of
securities for others, engage in the purchase and sale of commodities or
commodity contracts, borrow money, invest in real estate, or make investments
in other companies for the purpose of exercising control or management.
Pledge, encumber or assign all or any part of its property and assets as
security for a debt.
Invest in the securities of other investment companies.
Notwithstanding the restriction on investing in the securities of other
investment companies, the company may invest in securities of other 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.
Additional investment restrictions adopted by the company and which may be
changed by the Board of Directors without shareholder approval, provide that
the company may not:
Purchase and sell securities for short-term profits; however, securities will
be sold without regard to the time that they have been held whenever investment
judgement makes such action seem advisable.
Purchase or retain the securities of any issuer if those officers and directors
of the company or the Investment Adviser who own beneficially more than one
half of 1% of such issuer together own more than 5% of the securities of such
issuer.
Invest in securities of companies which, with their predecessors, have a record
of less than three years' continuous operations.
Invest in puts, calls, straddles, spreads or any combination thereof.
Purchase partnership interests in oil, gas or mineral exploration, drilling or
mining ventures.
Invest in excess of 10% of the market value of its total assets in securities
which may require registration under the Securities Act of 1933 prior to sale
by the company (restricted securities), or other securities that are not
readily marketable.
COMPANY DIRECTORS AND OFFICERS
Directors and Director Compensation
(with their principal occupations during the past five years)#
<TABLE>
<CAPTION>
Aggregate
Compensation Total Total
(including Compensation Number
Voluntarily Deferred from All Funds of Fund
Principal Occupation(s) during Compensation/1/) from managed by Capital Boards on
Past 5 Years (positions within the the company during Researcn and which
Position with organization listed may have Fiscal Year ended Management Director
Mame, Address and Age Registrant changed during this period 12/31/94 Company/2/ serves
<S> <C> <C> <C> <C> <C>
Charles H. Black Director Private investor and consultant; $54,200 $102,300 4
525 Alma Real Drive KaiserSteel Corporation, former
Pacific Palisades, CA Executive Vice President and
90272 Director
Age: 68
John F. Bookout Director Royal Dutch Petroleum, former $49,600 $49,600 1
One Shell Plaza Supervisory Director; Shell Oil
P.O. Box 2463 Company, former President and
Houston, TX 77252 Chief Executive Officer
Age: 72
Ann S. Bowers Director Enterprise 2000, Human resources $51,600 $51,600 1
1570 Emerson consultant
Palo Alto, CA 94301
Age: 57
Malcolm R. Currie Director Hughes Aircraft Company, $47,800 $47,800 1
Bldg. C-1 Chairman Emeritus
Mail Station A-100
P.O. Box 80028
Los Angeles, CA
90080-0028
Age: 68
+ Jon B. Lovelace, Jr. Chairman of Capital Research and Management None/3/ None/3/ 4
333 South Hope Street the Board and Company, Vice Chairman of the
Los Angeles, CA Director Board and Chairman of the
90071-1443 Executive Committee
Age: 68
John G. McDonald Director The IBJ Professor of Finance, $55,400/4/ $124,600 6
Graduate School of Graduate School of Business,
Finance Stanford University
Stanford University
Stanford, CA 94305
Age: 57
Bailey U. Morris Director THE INDEPENDENT OF LONDON, $47,800 $47,800 1
International Economic Consultant
Insights, Editor
Institute for International
Economics
11 Dupont Circle NW
Suite 620
Washington, D.C.
20036-1207
Senior Fellow
Age: 50
+ William C. Newton President The Capital Group Partners, L.P., None/3/ None/3/ 1
333 South Hope Street and Director Senior Partner
Los Angeles, CA
90071-1443
Age: 64
+ James W. Ratzlaff Executive Capital Research and Management None/3/ None/3/ 8
P.O. Box 7650 Vice Presi- Company, Vice Chairman of the
San Francisco, CA dent and Board; American Funds Service
94120-7650 Director Company, Director; The Capital
Age: 58 Group Partners, L.P., Senior Partner
Olin C. Robison Director President of the Salzburg Seminar; $49,000 $72,400 2
The Painter House Middlebury College, Professor and
Middlebury College former President
Middlebury, VT 05753
Age: 58
</TABLE>
# Positions within the organizations may have changed during this
period.
+ Directors who are considered "interested persons as defined in the
Investment Company Act of 1940, as amended (the "1940 Act"), on the basis of
their affiliation with the fund's Investment Adviser, Capital Research and
Management Company.
++ May be deemed an "interested person" of the fund due to membership on the
board of directors of the parent company of a registered broker-dealer .
/1/ Amounts may be deferred by eligible directors under a non-qualified
deferred compensation plan adopted by the company in 1993. Deferred amounts
accumulate at an earnings rate determined by the total return of one or more
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. American Variable Insurance
Series is another fund managed by Capital Research and Management Company that
serves as the underling investment vehicle for certain variable insurance
contracts.
/3/ Jon B. Lovelace, Jr., William C. Newton, and James W. Ratzlaff are
affiliated with the Investment Adviser and, accordingly, receive no
compensation from the company.
/4/ Since the plan's adoption, the total amount of deferred compensation
accrued by the company (plus earnings thereon) for participating Directors is
as follows: John B. McDonald ($57,184). Amounts deferred and accumulated
earnings thereon are not funded and are general unsecured liabilities of the
company until paid to the Director.
Each unaffiliated Director is paid a director's fee of $32,000 per annum,
plus $2,000 for each Board of Directors meeting attended, plus $600 for each
meeting attended as a member of a committee of the Board of Directors. No
pension or retirement benefits are accrued as part of company expenses. The
Directors and Advisory Board members may elect, on a voluntary basis, to defer
all or a portion of their fees through a deferred compensation plan in effect
for the company. All of the officers listed are officers of the Investment
Adviser and officers and/or directors/trustees of some of the other mutual
funds served by the Investment Adviser. No compensation is paid by the company
to any officer or director who is a director or officer of the Investment
Adviser or affiliated companies. As of January 31, 1995 the officers and
Directors and their families as a group, owned beneficially or of record less
than 1% of the outstanding shares of the company.
OFFICERS
JON B. LOVELACE, JR., Chairman of the Board
WILLIAM C. NEWTON, President
JAMES W. RATZLAFF, Executive Vice President
Company officers whose other positions are not described above are:
WILLIAM R. GRIMSLEY***, Senior Vice President. Capital Research and Management
Company, Senior Vice President and Director
R. MICHAEL SHANAHAN*, Senior Vice President. Capital Research and Management
Company, Chairman of the Board and Principal Executive Officer
GREGG E. IRELAND****, Vice President. Capital Research and Management Company,
Vice President
ANNE M. LLEWELLYN*, Vice President. Capital Research and Management Company,
Associate
JAMES B. LOVELACE****, Vice President. Capital Research and Management
Company,
Vice President
DONALD D. O'NEAL***, Vice President. Capital Research and Management Company,
Vice President
VINCENT P. CORTI*, Secretary. Capital Research and Management Company, Vice
President,
Fund Business Management Group
STEVEN N. KEARSLEY**, Treasurer. Capital Research and Management Company,
Vice President and Treasurer; American Funds Service Company, Director
JULIE F. WILLIAMS*, Assistant Secretary. Capital Research and Management
Company,
Vice President, Fund Business Management Group
MARY C. CREMIN**, Assistant Treasurer. Capital Research and Management
Company,
Senior Vice President, Fund Business Management Group
R. MARCIA GOULD**, Assistant Treasurer. Capital Research and Management
Company,
Vice President, Fund Business Management Group
# Positions within the organizations may have changed during this period.
+ Considered "interested persons" of the company as defined in the 1940 Act, on
the basis of their affiliation with the Investment Adviser.
* Address is 333 South Hope Street, Los Angeles, CA 90071.
** Address is 135 South State College Boulevard, Brea, CA 92621.
*** Address is Four Embarcadero Center, Suite 1800, San Francisco, CA 94111
**** Address is 11100 Santa Monica Boulevard, Los Angeles, CA 90025
ADVISORY BOARD
The Board of Directors has established an Advisory Board whose members are,
in the judgement of the Directors, highly knowledgeable about political and
economic matters. In addition to holding meetings with the Board of Directors,
members of the Advisory Board, while not participating in specific investment
decisions, consult from time to time with the Investment Adviser, primarily
with respect to trade and business conditions. Members of the Advisory Board,
however, possess no authority or responsibility with respect to the Company's
investments or management. The members of the Advisory Board and their current
or former principal occupations are listed on the next page:
ADVISORY BOARD MEMBERS
Advisory Board Member Compensation
(with their principal occupations during the past five years)#
<TABLE>
<CAPTION>
Compensation Total Total
(including Compensation Number
Voluntarily Deferred from All Funds of Fund
Principal Occupation(s) during Compensation/1/) from managed by Capital Boards on
Past 5 Years (positions within the the company during Researcn and which
Position with organization listed may have Fiscal Year ended Management Director
Mame, Address and Age Registrant changed during this period 12/31/94 Company/2/ serves
<S> <C> <C> <C> <C> <C>
Malcolm Fraser Advisory Former Prime Minister of Australia $5,500 $5,500 1
44th Floor Board member
ANZ Tower
55 Collins Street
Melbourne, Victoria 3000
Australia
Age: 64
Allan E. Gotlieb Advisory Former Canadian Ambassador to $5,500 $5,500 1
P.O. Box 85 Board member the United States
Toronto, Ontario
M5L 1B9
Age: 67
William H. Kling Advisory Minnesota Public Radio, President; $7,500/3/ $59,333 5
45 East Seventh Street Board member Greenspring Co., President;
St. Paul, MN 55101 American Public Radio (now Public
Age: 52 Radio International), former
President
Herbert L. Lucas, Jr. Advisory Private investor $7,500 $7,500 1
12011 San Vincente Blvd Board member
Suite 708
Los Angeles, CA 90049
Age: 68
Robert J. O'Neill Advisory Chichele Professor of the History $7,500 $35,000 3
St. Mary's Close Board member of War and Fellow of All Souls
27 Church Green College
Whitney, OXON
OX8 6AZ
Age: 58
Norman R. Weldon Advisory Corvita Corporation, President and $6,500 $29,133 3
8210 N.W. 27th Street Board member Director; Cordis Corporation,
Miami, FL 33122 former President and Director
Age: 60
</TABLE>
# Positions within the organizations may have changed during this
period.
/1/ Amounts may be deferred by eligible directors under a non-qualified
deferred compensation plan adopted by the company in 1993. Deferred amounts
accumulate at an earnings rate determined by the total return of one or more
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. American Variable Insurance
Series is another fund managed by Capital Research and Management Company that
serves as the underling investment vehicle for certain variable insurance
contracts.
/3/ Since the plan's adoption, the total amount of deferred compensation
accrued by the company (plus earnings thereon) for participating Directors is
as follows: William H. Kling ($6,699). Amounts deferred and accumulated
earnings thereon are not funded and are general unsecured liabilities of the
company until paid to the Director.
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 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 business 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 company and the Investment Adviser will
continue until April 30, 1995, unless sooner terminated, 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, or by
the vote of a majority (as defined in the 1940 Act) of the outstanding voting
securities, and (ii) the vote of a majority of directors who are not parties to
the Agreement or interested persons (as defined in the Act) of any such party,
cast in person at a meeting called for the purpose of voting on such approval.
The Agreement provides that the Investment Adviser has no liability to the
company for its acts or omissions in performance of its obligations to the
company not involving willful misconduct, bad faith, gross negligence or
reckless disregard of its obligations under the Agreement. 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 the 1940 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 executive, administrative, clerical and bookkeeping functions of the
company; provides suitable office space and utilities; necessary small office
equipment and general purpose accounting forms, supplies, and postage used at
the offices of the company. The company will pay all expenses not expressly
assumed by the Investment Adviser, including, but not limited to, custodian,
transfer and dividend disbursing agency fees and expenses; costs of the
designing, printing and mailing of reports, proxy statements, and notices to
its shareholders; taxes; expenses of the issuance and redemption of shares
(including registration and qualification expenses); expenses pursuant to the
company's Plan of Distribution (described below); legal and auditing expenses;
compensation, fees and expenses paid to Directors and members of the Advisory
Board who are not affiliated with the Investment Adviser; association dues; and
costs of stationery and forms prepared exclusively for the company.
As compensation for its services, the Investment Adviser receives a monthly
fee which is accrued daily, calculated at the annual rate of 0.39% on the first
$1.0 billion of net assets, plus 0.336% on net assets over $1 billion to $2.0
billion, plus 0.30% on net assets over $2.0 billion to $3.0 billion, plus
0.276% on net assets over $3 billion to $5.0 billion, plus 0.258% on net assets
over $5.0 billion to $8.0 billion, plus 0.246% on net assets over $8.0 billion
to $13.0 billion, plus 0.24% on net assets over $13.0 billion. The Agreement
provides that the Investment Adviser shall pay the company amount by which
normal operating expenses, with the exception of interest, taxes, brokerage
costs, distribution expenses pursuant to the Plan of Distribution, and
extraordinary expenses, if any, as may be incurred in connection with any
merger, reorganization, or recapitalization, exceed the lesser of (i) 1-1/2% of
the average value of the company's net assets for the fiscal year up to $30
million, plus 1% of the average value of the company's net assets for the
fiscal year in excess of $30 million, or (ii) 25% of the gross investment
income of the company. Only one state (California) continues to impose expense
limitations on funds registered for sale therein. The California provision
currently limits annual expenses to the sum of 2-1/2% of the first $30 million
of average net assets, 2% of the next $70 million and 1-1/2% of the remaining
average net assets. Rule 12b-1 distribution plan expenses would be excluded
from this limit. Other expenses which are not subject to this limitation are
interest, taxes, and extraordinary items such as litigation. 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.
During the years ended December 31, 1994, 1993, and 1992, Investment
Adviser's total fees amounted to $50,698,000, $47,340,000, and $35,742,000,
respectively.
PRINCIPAL UNDERWRITER - American Funds Distributors, Inc. (the Principal
Underwriter) is the principal underwriter of the company's shares. The company
has adopted a Plan of Distribution (the Plan), pursuant to rule 12b-1 under the
1940 Act (see "Company Organization and Management - 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 company shares
during the year ended December 31, 1994 amounted to $13,495,000 after allowance
of $73,910,000 to dealers. During the years ended December 31, 1993 and 1992
the Principal Underwriter retained $21,581,000 and $31,074,000,
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 company 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 company. The
officers and directors who are "interested persons" of the company 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 company are improved
shareholder services, savings to the company in transfer agency costs, savings
to the company 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 company is 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 approved annually by the
Board of Directors.
Under the Plan the company may expend up to 0.25% of its average net assets
annually to finance any activity which is primarily intended to result in the
sale of company shares, provided the company'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 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 company. During the year ended December
31, 1994, the company paid or accrued $38,084,000 under the Plan as
compensation to dealers.
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 or 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 company and alternate means for
continuing the servicing of such shareholders would be sought. In such event,
changes in the operation of the company 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 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 company 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
company 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 which it retains.
To qualify, the company 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
sale or other disposition of stock or securities held for 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 company's assets is
represented by cash, cash items, U.S. Government securities and other
securities, but such other securities must be limited, in respect of any one
issuer to an amount not greater than 5% of the company'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 company 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 company from its current year's ordinary income and
net capital gain income and (ii) any amount on which the company pays income
tax during the periods described above. The company intends, to the extent
practicable, to meet these distribution requirements to minimize or avoid the
excise tax liability.
The company 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 company 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 Company pays the dividend no later
than the end of January of the following year.
If a shareholder exchanges or otherwise disposes of shares of the company
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 company, or of a different fund, the sales charge previously
incurred in acquiring the company'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 shares are reacquired within
the 61-day period beginning 30 days before and ending 30 days after the shares
are disposed of.
Under the Code, distributions of net investment income by the company 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 Company 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 or domestic corporations will apply.
Distributions of net long-term capital gains not effectively connected with a
U.S. trade or business 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 gain is 28%; and the maximum corporate tax applicable
to ordinary income and net capital gain is 35% (except that 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
company or disposition of company 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 and contribute to an IRA each year (prior to the tax return filing
deadline for that 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 distributions may also be subject to state or local
taxes. Shareholders should consult their own tax advisers for additional
details as to their particular tax status.
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 company or American
Funds Service Company (the Transfer Agent); 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 company 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 company 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, and convertible bonds and debentures, traded on the New York Stock
Exchange are valued at the last sale price on such exchange on the day of
valuation, or if there is no sale on the day of valuation, at the last-reported
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 company if acquired within 60 days of
maturity or, if already held by the company 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 Advisor, 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 total assets;
2. There are deducted from the total assets, thus determined, the liabilities,
including accruals of taxes and other expense items; and
3. The net assets so obtained are then divided by the total number of shares
outstanding (excluding treasury shares), 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 by the
company. The Principal Underwriter will not knowingly sell shares of the
company directly or indirectly to any person or entity, where, after the sale,
such person, or entity would own beneficially directly or indirectly more than
3% of the outstanding shares of the company without the consent of a majority
of the company'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 pursuant to the terms of a written Statement of Intention (the
Statement) in the form provided by the Principal Underwriter and signed by the
purchaser. The Statement is not a binding obligation to purchase the indicated
amount. When a shareholder signs a 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 be required to 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 purchases had been made at a
single time. If the difference is not paid within 20 days after written
request by the Principal Underwriter or the securities dealer, the appropriate
number of shares 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.
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 investment made the first
month of the 13-month period will be multiplied by 13 and then multiplied by
1.5. On the first investment and all other investments made pursuant to the
Statement, 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.
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 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 company'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 for which
Capital Guardian Trust Company serves as trustee or custodian.) 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 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 company 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, automatically to redeem the
account and send the proceeds to the shareholder. The cross-reinvestment of
dividends and capital gain distributions will be at net asset value (without
sales charge).
REDEMPTION OF SHARES
REDEMPTIONS - The company's Certificate of Incorporation permits the company to
direct the Transfer Agent to redeem the Common shares owned by any holder of
capital stock of the company if the value of such shares in the account of such
holder is less than the required minimum initial investment amount applicable
to that account as set forth in the company's current registration statement
under the 1940 Act, and subject to such further terms and conditions as the
Board of Directors of the company may from time to time adopt. Prior notice of
at least 60 days will be given to a shareholder before the involuntary
redemption provision is made effective with respect to the shareholder's
account. The shareholder will have not less than 30 days from the date of such
notice within which to bring the account up to the minimum determined as set
forth above.
EXECUTION OF PORTFOLIO TRANSACTIONS
There are occasions on which portfolio transactions for the company 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 company, they are effected only when the
Investment Adviser believes that to do so is in the interest of the company.
When such concurrent authorizations occur, the objective is to allocate the
executions in an equitable manner. The company will not pay a mark-up for
research in principal transactions.
As of the end of the company's most recent fiscal year, amounts held in
certain equity and debt securities of some of its regular brokers and dealers
were as follows: American Express Co., $73,145,000 (equity); General Electric
Co., $113,858,000 (equity); and J.P. Morgan & Co. Inc., $106,400,000 (equity).
Brokerage commissions paid on portfolio transactions, including dealer
concessions on underwritings, for the years ended December 31, 1994, 1993, and
1992 amounted to $8,999,000, $11,089,000, and $9,347,000, respectively.
GENERAL INFORMATION
CUSTODIAN OF ASSETS - Securities and cash owned by the company, including
proceeds from the sale of shares of the company and of securities in the
company's portfolio, are held by The Chase Manhattan Bank, N.A., One Chase
Manhattan Plaza, New York, NY 10081, as Custodian. Non-U.S. securities may be
held by the Custodian, pursuant to sub-custodial arrangements, in non-U.S.
banks or non-U.S. branches of U.S. banks.
INDEPENDENT ACCOUNTANT - Price Waterhouse LLP, 400 South Hope Street, Los
Angeles, CA 90071, has served as the company's independent accountant since
its inception, providing audit services, preparation of tax returns and review
of certain documents to be filed with the Securities and Exchange Commission.
The financial statements included in this Statement of Additional Information
have been so included in reliance on the report of the independent accountants
given on the authority of said firm as experts in auditing and accounting. The
selection of the company's independent accountant is reviewed and determined
annually by the Board of Directors.
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 company 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 company were a common-law trust. Accordingly, the Directors of the
company 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.
REPORTS TO SHAREHOLDERS - The company's fiscal year ends on December 31.
Shareholders are provided at least semi-annually with reports showing the
investment portfolio and financial statements audited annually by the company's
independent accountants, Price Waterhouse LLP.
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 WARRANTS OF THE COMPANY - On December 31, 1994, there were outstanding
38,378 option warrants, unlimited in time, to purchase shares of the company.
As originally issued in 1933 in exchange for shares of a predecessor trust,
each warrant permitted the purchase of one share of the company at $115 per
share. By reason of adjustments for stock dividends and stock splits, each
outstanding warrant now represents an option to purchase approximately 21.940
shares at approximately $5.242 per share, and, if all warrants were exercised,
approximately 842,013 shares would be issued. Whenever the offering price of
the company's shares exceeds the price at which shares may be purchased by the
exercise of warrants, the holders of such warrants may, by exercising their
options, purchase shares at a price lower than the offering price of shares.
No warrants are currently owned by officers or directors of the company.
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:
<TABLE>
<CAPTION>
DETERMINATION OF NET ASSET VALUE, REDEMPTION PRICE AND
MAXIMUM OFFERING PRICE PER SHARE -- DECEMBER 31, 1994
<S> <C>
Net asset value and redemption price per share $17.67
(Net assets divided by shares outstanding)
Maximum offering price per share $18.75
(100/94.25 of net asset value per share, which
takes into account the company's current maximum
sales charge)
</TABLE>
INVESTMENT RESULTS
The company's yield is 3.13% based on a 30-day (or one month) period ended
December 31, 1994, 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 company's total return over the past year and average annual total
returns for the five- and ten-year periods ending on December 31, 1994 were
- -5.60%, 7.51% and 13.69%, respectively. The average annual total return (T) is
computed by equating the value at the end of the period (ERV) with 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 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
periods. Total return may be calculated for the one-, five-, ten-year and for
other periods. The average annual total return over periods greater than one
year may also be computed by utilizing ending values as determined above.
The company may also, at times, calculate total return based on net asset
value per share (rather than the offering price), in which case the figure
would not reflect the effect of any sales charges which would have been paid if
shares were purchased during the period reflected in the computation.
Consequently, total return calculated in this manner will be higher. Total
return for the unmanaged indices will be calculated assuming reinvestment of
dividends and interest, but will not reflect any deductions for advisory fees,
brokerage costs or administrative expenses.
The following assumptions will be reflected in computations made in accordance
with the formulas 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. In
addition, the company will provide lifetime average total return figures.
The company 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 & 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 company may also refer to results compiled by organizations such as CDA
Investment Technologies, Ibbotson Associates, Lipper Analytical Services,
Morningstar, Inc., Wiesenberger Investment Companies Services and the U.S.
Department of Commerce. Additionally, the company may, from time to time,
refer to results published in various newspapers or periodicals, including
BARRON'S, FORBES, FORTUNE, INSTITUTIONAL INVESTOR, KIPLINGER'S PERSONAL FINANCE
MAGAZINE, MONEY, U.S. NEWS AND WORLD REPORT and THE WALL STREET JOURNAL.
The company may from time to time compare its investment results with the
following:
(1) Average of Savings Institution deposits, which is a measure of all kinds
of savings deposits, including longer-term certificates (based on figures
supplied by the U.S. League of Savings Institutions). Savings deposits offer a
guaranteed rate of return on principal, but no opportunity for capital growth.
The period shown may include periods during which the maximum rates paid on
some savings deposits were fixed by law.
(2) 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, shelter, and fuels, transportation fares, charges for doctors' and
dentists' services, prescription medicines, and other goods and services that
people buy for day-to-day living).
The company may also from time to time illustrate the benefits of tax-deferral
by comparing taxable investments to investments made through tax-deferred
retirement plans.
EXPERIENCE OF THE 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 & Poor's 500 Composite Stock Index in 94
of the 115 periods.
Of the more than 1,000 investment accounts monitored by CDA Investment
Technologies, over the last 15 rolling 10-year periods beginning in 1969 and
ending in 1993, AMCAP Fund., American Mutual Fund, Fundamental Investors, The
Growth Fund of America, The Investment Company of America, New Economy Fund,
New Perspective Fund and Washington Mutual Investors Fund ranked in the top 10%
of all accounts 26% of the time, in the top 20% of all accounts 63% of the time
and in the top 30% of all accounts 88% of the time.
Note that past results are not an indication of future investment results.
Also, the company has different investment policies than some of 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.
The investment results set forth below were calculated as described in the
company's prospectus. The company's results will vary from time to time
depending upon market conditions, the composition of the company's portfolio
and operating expenses of the company, so that any investment results reported
by the company should not be considered representative of what an investment in
the company may earn in any future period. These factors and possible
differences in calculation methods should be considered when comparing the
company's investment results with those published for other mutual funds, other
investment vehicles and unmanaged indices. The company's results also should
be considered relative to the risks associated with the company's investment
objective and policies.
SELECTED SIGNIFICANT EVENTS DURING THE COMPANY'S LIFETIME - The company has
compiled the investment results that follow notwithstanding the numerous
economic, political and/or historical events that have occurred throughout the
company's existence, including the depression, the 1935 civil war in Spain, a
struggling economy in 1936, a recession in 1937, indications of war in 1938, a
war in Europe in 1939, the fall of France in 1940, the attack on Pearl Harbor
in 1941, wartime price controls in 1942, industry mobilizing in 1943, consumer
goods shortages in 1944, the prediction of a post-war depression in 1945, the
Dow Jones Average exceeding 200 in 1946, the beginning of the Cold War in 1947,
the Berlin blockade in 1948, Russia exploding an atomic bomb in 1949, the
Korean War in 1950, excess profits tax in 1951, the U.S. seizure of steel mills
in 1952, Russia exploding a hydrogen bomb in 1953, the Dow Jones Average
exceeding 300 in 1954, President Eisenhower's illness in 1955, the Suez crisis
in 1956, Russia launching Sputnik in 1957, a recession in 1958, Castro seizing
power in Cuba in 1959, Russia shooting down a U-2 plane in 1960, the building
of the Berlin Wall in 1961, the Cuban missile crisis in 1962, President
Kennedy's assassination in 1963, the Gulf of Tonkin in 1964, civil rights
marches in 1965, escalation of the Vietnam war in 1966, Newark race riots in
1967, seizure of the USS Pueblo in 1968, a substantial market decline in 1969,
invasion of Cambodia in 1970, wage-price freezes in 1971, the largest U.S.
trade deficit in history in 1972, an energy crisis in 1973, the steepest market
drop in 40 years in 1974, clouded economic prospects in 1975, slowing economic
recovery in 1976, a market slump in 1977, escalation of interest rates in 1978,
steep oil price increases in 1979, interest rates reaching all-time highs in
1980, the beginning of a steep recession in 1981, the worst recession in 40
years in 1982, the stock market reaching new highs in 1983, a record federal
deficit in 1984, economic growth slowing in 1985, the Dow Jones Average nearing
2000 in 1986, a record-setting stock market decline in 1987, the fear of
recession in 1988, the "junk" bond debacle in 1989, the Middle East Crisis in
1990 and a recession in 1991.
The investment results set forth below were calculated as described in the
company's prospectus.
ICA VS. VARIOUS UNMANAGED INDICES
<TABLE>
<CAPTION>
10-Year ICA DJIA/1/ S&P 500/2/ Average
Periods Savings
1/1 -12/31 Account/3/
<S> <C> <C> <C> <C>
1985 - 1994 +261% +349% +282% + 77%
1984 - 1993 +284 +333 +301 + 88
1983 - 1992 +314 +367 +346 + 99
1982 - 1991 +417 +452 +404 +112
1981 - 1990 +312 +328 +267 +122
1980 - 1989 +396 +426 +402 +125
1979 - 1988 +357 +340 +352 +125
1978 - 1987 +362 +289 +313 +125
1977 - 1986 +327 +221 +264 +125
1976 - 1985 +355 +211 +281 +123
1975 - 1984 +362 +237 +297 +119
1974 - 1983 +255 +154 +175 +113
1973 - 1982 +146 + 75 + 91 +106
1972 - 1981 +113 + 63 + 87 + 95
1971 - 1980 +147 + 86 +125 + 85
1970 - 1979 +109 + 66 + 77 + 79
1969 - 1978 + 57 + 32 + 36 + 75
1968 - 1977 + 60 + 39 + 42 + 72
1967 - 1976 +111 + 90 + 90 + 69
1966 - 1975 + 65 + 30 + 38 + 67
1965 - 1974 + 55 + 3 + 13 + 63
1964 - 1973 +119 + 60 + 79 + 60
1963 - 1972 +223 +123 +158 + 57
1962 - 1971 +142 + 74 + 98 + 55
1961 - 1970 +155 + 94 +119 + 52
1960 - 1969 +160 + 67 +112 + 50
</TABLE>
/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 & 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.
THE BENEFITS OF SYSTEMATIC INVESTING IN ICA..........
<TABLE>
<CAPTION>
An initial investment of $1,000 in ICA on January 1 would have grown to these
amaounts over the past 10, 20, 30, and 40 years:
<S> <C> <C> <C>
10 years 20 years 30 years 40 years
(1/1/85 - (1/1/75 - (1/1/65 - (1/1/55 -
12/31/94) 12/31/94) 12/31/94) 12/31/94)
$ 3,607 $ 17,678 $ 28,973 $ 93,448
</TABLE>
<TABLE>
<CAPTION>
$1,000 invested in ICA followed by annual $500 investments (all investments made
on January 1) would have grown to these amounts over the past 10, 20, 30, 40 years:
<S> <C> <C> <C>
10 years 20 years 30 years 40 years
(1/1/85 - (1/1/75 - (1/1/65 - (1/1/55 -
12/31/94) 12/31/94) 12/31/94) 12/31/94)
$ 11,046 $ 62,399 $ 158,444 $ 473,895
</TABLE>
<TABLE>
<CAPTION>
$2,000 invested in ICA on January 1 of each year would have grown to these amounts
over the past 5, 10, 20 and 30 years:
<S> <C> <C> <C>
5 years 10 years 20 years 30 years
(1/1/90 - (1/1/85 - (1/1/75 - (1/1/65 -
12/31/94) 12/31/94) 12/31/94) 12/31/94)
$ 11,974 $ 36,969 $ 214,715 $ 577,599
</TABLE>
SEE THE DIFFERENCE TIME CAN MAKE IN AN INVESTMENT PROGRAM...
<TABLE>
<CAPTION>
If you had invested Periods ... and taken all
$10,000 in ICA 1/1-12/31 distributions in shares,
this many years ago... your investment would
Number have been worth this
of Years much at December 31, 1994
Value
<S> <C> <C>
1 1994 $ 9,441
2 1993 - 1994 10,537
3 1992 - 1994 11,270
4 1991 - 1994 14,261
5 1990 - 1994 14,361
6 1989 - 1994 18,584
7 1988 - 1994 21,062
8 1987 - 1994 22,216
9 1986 - 1994 27,044
10 1985 - 1994 36,067
11 1984 - 1994 38,459
12 1983 - 1994 46,234
13 1982 - 1994 61,819
14 1981 - 1994 62,374
15 1980 - 1994 75,615
16 1979 - 1994 90,147
17 1978 - 1994 103,337
18 1977 - 1994 100,683
19 1976 - 1994 130,478
20 1975 - 1994 176,785
21 1974 - 1994 145,008
22 1973 - 1994 120,639
23 1972 - 1994 139,759
24 1971 - 1994 163,575
25 1970 - 1994 167,759
26 1969 - 1994 149,884
27 1968 - 1994 175,303
28 1967 - 1994 225,947
29 1966 - 1994 228,194
30 1965 - 1994 289,725
</TABLE>
Results of a $10,000 investment in ICA/a/
with capital gain distributions taken in shares
(For the lifetime of the company January 1, 1934 through December 31, 1994)
<TABLE>
<CAPTION>
TOTAL VALUE ASSUMING CAPITAL VALUE ASSUMING
DIVIDENDS REINVESTED DIVIDENDS IN CASH
Year Dividends Value of Dividends Value of
Ended Reinvested Investment Taken in Investment
12/31 During Year at Year-End Cash at Year-End
<S> <C> <C> <C> <C>
1934 --- $11,822 --- $11,822
1935 --- 21,643 --- 21,643
1936 $398 31,560 $398 31,042
1937 1,006 19,424 976 18,339
1938 181 24,776 170 23,174
1939 536 24,986 498 22,860
1940 891 24,384 806 21,460
1941 1,262 22,590 1,089 18,816
1942 1,186 26,376 969 20,893
1943 1,101 35,019 861 26,861
1944 1,242 43,193 942 32,130
1945 1,191 59,091 878 42,948
1946 1,775 57,692 1,277 40,686
1947 2,409 58,217 1,672 39,332
1948 2,685 58,430 1,785 37,714
1949 2,661 63,941 1,689 39,436
1950 3,152 76,618 1,911 45,185
1951 3,391 90,274 1,970 51,159
1952 3,535 101,293 1,974 55,305
1953 3,927 101,747 2,113 53,362
1954 4,104 158,859 2,127 80,780
1955 5,124 199,215 2,579 98,530
1956 5,608 220,648 2,748 106,303
1957 6,228 194,432 2,969 90,911
1958 6,546 281,479 3,028 128,040
1959 7,013 321,419 3,161 142,882
1960 8,139 335,998 3,582 145,597
1961 8,383 413,552 3,603 175,370
1962 9,122 358,800 3,831 148,178
1963 9,620 440,900 3,936 177,833
1964 10,708 512,591 4,285 202,346
1965 12,112 650,689 4,742 251,553
1966 15,516 657,093 5,946 248,034
1967 18,359 846,941 6,869 312,473
1968 22,628 990,640 8,270 356,572
1969 25,318 884,824 9,024 309,611
1970 27,305 908,018 9,438 307,421
1971 28,565 1,062,651 9,569 349,727
1972 29,917 1,231,087 9,750 394,701
1973 33,353 1,024,067 10,569 317,911
1974 52,187 840,310 15,908 245,526
1975 49,800 1,137,660 14,318 317,655
1976 46,441 1,474,369 12,804 398,099
1977 49,838 1,436,402 13,279 374,307
</TABLE>
Results of a $10,000 investment in ICA (cont.)
<TABLE>
<CAPTION>
TOTAL VALUE ASSUMING CAPITAL VALUE ASSUMING
DIVIDENDS REINVESTED DIVIDENDS IN CASH
Year Dividends Value of Dividends Value of
Ended Reinvested Investment Taken in Investment
12/31 During Year at Year-End Cash at Year-End
<S> <C> <C> <C> <C>
1978 55,969 1,647,483 14,386 414,421
1979 69,960 1,963,310 17,347 475,669
1980 91,302 2,380,187 21,746 552,242
1981 115,901 2,401,091 26,420 530,864
1982 146,105 3,211,997 31,589 670,590
1983 147,156 3,859,712 30,264 774,518
1984 160,449 4,117,187 31,680 791,971
1985 174,890 5,491,890 33,152 1,017,904
1986 203,830 6,685,657 37,328 1,200,518
1987 267,489 7,049,178 47,452 1,220,928
1988 318,747 7,989,285 54,382 1,327,375
1989 370,835 10,338,589 60,741 1,652,751
1990 406,318 10,409,027 64,056 1,598,821
1991 320,422 13,171,892 48,721 1,969,876
1992 357,779 14,092,236 52,965 2,052,162
1993 374,395 15,729,365 54,005 2,234,153
1994 407,211 15,753,834/b/ 57,286 2,180,610/c/
</TABLE>
/a/ Results reflect payment of a sales charge of 5.75% on the $10,000
investment. Thus, the net amount invested was $9,425. There is no sales
charge on dividends reinvested or capital gain distributions taken in shares.
Results do not take into account income and capital gain taxes.
/b/ The total "cost" of this investment ($10,000 plus $4,513,221 in
reinvested dividends) was $4,523,221. Total value includes reinvested
dividends and capital gain distributions totaling $5,715,772 taken in shares in
the years 1936-1994.
/c/ Capital Value includes capital gain distributions taken in shares (total
$1,117,858) but does not include the amount of dividends received in cash
($871,833).
INVESTMENT COMPANY OF AMERICA
INVESTMENT PORTFOLIO-December 31, 1994
<TABLE>
<CAPTION>
- ------------------------------------------ ----------
Percent of
LARGEST INVESTMENT CATEGORIES Net Assets
<S> <C>
- ------------------------------------------ ----------
Services 19.88%
Capital Equipment 15.06
Finance 13.81
LARGEST INDUSTRY HOLDINGS
- ------------------------------------------ ----------
Banking 7.83%
Telecommunications 7.07
Energy Sources 5.97
Data Processing & Reproduction 5.3
Broadcasting & Publishing 5.28
LARGEST INDIVIDUAL HOLDINGS
- ------------------------------------------ ----------
Federal National Mortgage 2.14%
Royal Dutch Petroleum 2.11
Philip Morris 2.09
International Business Machines 1.77
Caterpillar 1.71
Time Warner 1.65
Tele-Communications 1.38
BankAmerica 1.2
DuPont 1.2
WMX Technologies 1.12
</TABLE>
INVESTMENT COMPANY OF AMERICA
December 31, 1994
<TABLE>
<CAPTION>
- ----------------------------- ----- ------------------------------- -----
<S> <C> <C> <C>
COMPANIES WHOSE EQUITY-TYPE
SECURITIES WERE ADDED TO OR
ELIMINATED FROM THE PORTFOLIO
Companies Companies
appearing in the portfolio eliminated from the portfolio
since June 30, 1994 since June 30, 1994
- ----------------------------- ----- ------------------------------- -----
Alcan Aluminium Alcatel Alsthom
Apple Computer American Cyanamid
Archer Daniels Midland Anheuser-Busch Companies
Canadian Pacific Broken Hill Proprietary
Chemical Banking Commonwealth Edison
Comerica Dow Chemical
CS Holding Group ITT
Dana Kimberly-Clark
Georgia Pacific Loews
Ingersoll-Rand Nissan Motor
Limited Rohm and Haas
National City Siemens
Norfolk Southern Sun Microsystems
Northrop Grumman Tektronix
Parker Hannifin Woolworth
Rockwell International
Societe Nationale Elf
Aquitaine
Unicom
United HealthCare
Wachovia
INVESTMENT COMPANY OF AMERICA
INVESTMENT PORTFOLIO, December 31, 1994
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------ --------- --------- ------
Market Percent
Number of Value of Net
Equity-Type Securities Shares (millions) Assets
<S> <C> <C> <C>
- ------------------------------------------ --------- --------- ------
Energy
- ------------------------------------------ --------- --------- ------
Energy Sources-5.97%
Amoco Corp. 2,955,000 174.714 0.91
Atlantic Richfield Co. 175,000 17.806 0.09
British Petroleum Co. PLC (American Depositary
Receipts) 250,000 19.969 0.1
Chevron Corp. 900,000 40.163 0.21
Mobil Corp. 400,000 33.7 0.17
Murphy Oil Corp. 750,000 31.875 0.17
Phillips Petroleum Co. 5,073,700 166.164 0.86
Royal Dutch Petroleum Co.
(New York Registered Shares) 3,780,000 406.35 2.11
Societe Nationale Elf Aquitaine (American
Depositary Receipts) 464,265 16.365 0.08
Texaco Inc. 1,180,000 70.652 0.37
TOTAL, Class B 1,200,000 69.76 0.36
Unocal Corp. 600,000 16.35 0.19
Unocal Corp., $3.50 convertible preferred/1/ 415,000 20.335
USX-Marathon Group 4,100,000 67.138 0.35
Utilities: Electric & Gas-1.76%
Entergy Corp. 5,500,000 120.312 0.62
Houston Industries Inc. 1,100,000 39.188 0.2
Long Island Lighting Co. 5,240,000 80.565 0.42
Pacific Gas and Electric Co. 1,339,100 32.641 0.17
Texas Utilities Co. 283,692 9.078 0.05
Unicom Corp. 2,395,000 57.48 0.3
--------- ------
1490.605 7.73
--------- ------
- ------------------------------------------ --------- --------- ------
Materials
- ------------------------------------------ --------- --------- ------
Chemicals-1.45%
E.I. du Pont de Nemours and Co. 4,100,000 230.625 1.2
Eastman Chemical Co. 400,000 20.2 0.1
Imperial Chemical Industries PLC
(American Depositary Receipts) 100,000 4.65 0.02
Monsanto Co. 354,300 24.978 0.13
Forest Products & Paper-0.51%
Georgia Pacific 950,000 67.925 0.35
International Paper Co. 400,000 30.15 0.16
Metals: Nonferrous-1.50%
Alcan Aluminium Ltd. 1,000,000 25.375 0.13
Aluminum Co. of America 1,620,000 140.332 0.73
Inco Ltd. 1,964,300 56.228 0.29
Phelps Dodge Corp. 600,000 37.125 0.19
Western Mining Corp. Holdings Ltd. 5,205,894 30.11 0.16
Metals: Steel-0.74%
Bethlehem Steel Corp./2/ 4,000,000 72 0.37
USX-U.S. Steel Group 2,000,000 71 0.37
Miscellaneous Materials-0.21%
Freeport-McMoRan Inc. 1,000,000 17.75
Freeport-McMoRan Inc., $4.375 convertible 0.21
exchangeable preferred stock/1/ 500,000 23.5
--------- ------
851.948 4.41
--------- ------
- ------------------------------------------ --------- --------- ------
Capital Equipment
- ------------------------------------------ --------- --------- ------
Aerospace & Military Technology-1.79%
Boeing Co. 2,100,000 98.175 0.51
Litton Industries, Inc./2/ 1,333,000 49.321 0.25
Northrop Grumman Corp. 900,000 37.8 0.2
Raytheon Co. 1,200,000 76.65 0.4
United Technologies Corp. 1,318,800 82.919 0.43
Data Processing & Reproduction-5.30%
Apple Computer, Inc. 500,000 19.375 0.1
Compaq Computer Corp./2/ 5,250,000 207.375 1.07
Hewlett-Packard Co. 1,298,000 129.638 0.67
International Business Machines Corp. 4,645,000 341.408 1.77
Microsoft Corp./2/ 1,975,000 120.722 0.63
Novell, Inc./2/ 900,000 15.3 0.08
Tandem Computers Inc./2/ 1,225,000 20.978 0.11
Unisys Corp., $3.75 convertible preferred,
Series A 350,000 11.112 0.06
Xerox Corp. 1,570,000 155.43 0.81
Electrical & Electronic-1.09%
General Electric Co. 2,232,500 113.858 0.59
Honeywell Inc. 3,034,800 95.596 0.5
Electronic Components-1.89%
Intel Corp. 1,850,000 117.706 0.61
Motorola, Inc. 1,600,000 92.6 0.48
Texas Instruments Inc. 2,050,000 153.494 0.8
Energy Equipment-1.10%
Schlumberger Ltd. 3,350,000 168.756 0.88
Western Atlas Inc./2/ 1,133,000 42.629 0.22
Industrial Components-0.35%
Dana Corp. 1,352,200 31.608 0.16
Rockwell International Corp. 1,000,000 35.75 0.19
Machinery & Engineering-3.54%
Caterpillar Inc. 5,980,000 329.648 1.71
Cummins Engine Co., Inc. 1,041,800 47.141 0.25
Deere & Co. 1,500,000 99.375 0.52
Ingersoll-Rand Co. 500,000 15.75 0.08
Mannesmann AG 420,000 114.511 0.59
Parker Hannifin Corp. 400,000 18.2 0.09
Sundstrand Corp. 1,275,000 58.012 0.3
--------- ------
2900.837 15.06
--------- ------
- ------------------------------------------ --------- --------- ------
Consumer Goods
- ------------------------------------------ --------- --------- ------
Automobiles-1.95%
Chrysler Corp., $4.625 convertible
preferred, Series A/1/ 100,000 13.687 0.07
Daimler-Benz AG 110,000 54.154 0.37
Daimler-Benz AG (American Depositary Receipts) 330,000 16.253
Ford Motor Co., Class A 2,090,000 58.52
Ford Motor Co., $4.20 cumulative convertible 0.73
preferred, Series A 900,000 82.8
General Motors Corp. 2,700,000 114.075 0.59
Toyota Motor Corp. 1,760,000 37.071 0.19
Beverages & Tobacco-2.87%
American Brands, Inc. 488,500 18.319 0.09
PepsiCo, Inc. 2,450,000 88.813 0.46
Philip Morris Companies Inc. 7,000,000 402.5 2.09
RJR Nabisco Holdings Corp./2/ 8,000,000 44 0.23
Food & Household Products-1.45%
Archer Daniels Midland Co. 2,317,500 47.798 0.25
ConAgra, Inc. 1,400,000 43.75 0.23
CPC International Inc. 980,000 52.185 0.27
Nestle SA 90,000 85.803 0.44
Procter & Gamble Co. 800,000 49.6 0.26
Health & Personal Care-5.27%
Abbott Laboratories 1,750,000 57.094 0.3
American Home Products Corp. 1,175,000 73.731 0.38
Bausch & Lomb Inc. 117,800 3.99 0.02
Baxter International Inc. 900,000 25.425 0.13
Bristol-Myers Squibb Co. 1,755,000 101.571 0.53
Johnson & Johnson 1,040,000 56.94 0.29
Eli Lilly & Co. 1,680,000 110.25 0.57
Merck & Co., Inc. 5,600,000 213.5 1.11
Pfizer Inc. 1,545,000 119.351 0.62
Schering-Plough Corp. 923,000 68.302 0.35
Upjohn Co. 1,550,000 47.663 0.25
Warner-Lambert Co. 1,800,000 138.6 0.72
Recreation & Other Consumer Products-0.45%
Duracell International Inc. 1,554,300 67.418 0.35
Eastman Kodak Co. 400,000 19.1 0.1
Textiles & Apparel-0.13%
VF Corp. 500,000 24.312 0.13
--------- ------
2336.575 12.12
--------- ------
- ------------------------------------------ --------- --------- ------
Services
- ------------------------------------------ --------- --------- ------
Broadcasting & Publishing-5.28%
Capital Cities/ABC, Inc. 1,400,000 119.35 0.62
CBS Inc. 1,145,000 63.404 0.33
Gannett Co., Inc. 1,155,200 61.514 0.32
New York Times Co., Class A 3,350,000 74.119 0.38
Tele-Communications, Inc., Class A/2/ 12,240,900 266.24 1.38
Time Warner Inc. 9,081,000 318.97 1.65
Times Mirror Co., Series A 1,500,000 47.063 0.24
Tribune Co. 1,250,000 68.437 0.36
Business & Public Services-3.20%
Browning-Ferris Industries, Inc. 500,000 14.188 0.08
Dun & Bradstreet Corp. 1,350,000 74.25 0.39
Federal Express Corp./2/ 1,250,000 75.312 0.39
Interpublic Group of Companies, Inc. 2,546,500 81.806 0.42
Pitney Bowes Inc. 2,020,000 64.135 0.33
United HealthCare Corp. 2,000,000 90.25 0.47
WMX Technologies, Inc. 8,250,000 216.563 1.12
Leisure & Tourism-1.28%
Walt Disney Co. 4,254,600 196.243 1.02
McDonald's Corp. 1,700,000 49.725 0.26
Merchandising-1.22%
American Stores Co. 2,100,000 56.438 0.29
Limited Inc. 1,400,000 25.375 0.13
May Department Stores Co. 900,000 30.375 0.16
Melville Corp. 1,400,000 43.225 0.22
Tandy Corp., $2.14 preferred equity redemption
cumulative stock, Series C 1,100,000 41.525 0.22
Toys 'R' Us, Inc./2/ 1,250,000 38.125 0.2
Telecommunications-7.07%
AirTouch Communications/2/ 2,250,000 65.531 0.34
Ameritech Corp. 1,900,000 76.712 0.4
AT&T Corp. 3,895,000 195.724 1.01
GTE Corp. 5,325,000 161.747 0.84
Hong Kong Telecommunications Ltd. (American
Depositary Receipts) 1,500,000 28.688 0.15
LIN Broadcasting Corp./2/ 1,409,600 188.182 0.98
MCI Communications Corp. 9,225,000 169.509 0.88
Pacific Telesis Group 2,424,220 69.09 0.36
Southwestern Bell Corp. 300,000 12.113 0.06
Sprint Corp. 250,000 6.906 0.04
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts) 3,457,400 141.753 0.74
U S WEST, Inc. 1,750,000 62.344 0.32
Vodafone Group PLC (American Depositary 5,472,000 183.996 0.95
Receipts)
Transportation: Airlines-0.65%
AMR Corp./2/ 1,275,000 67.894 0.35
Delta Air Lines, Inc. 895,000 45.198
Delta Air Lines, Inc., $3.50 convertible 0.3
preferred, Class C 300,000 13.125
Transportation: Rail & Road-1.18%
Burlington Northern Inc. 650,000 31.281 0.16
Conrail, Inc. 750,000 37.875 0.2
CSX Corp. 850,000 59.181 0.31
Norfolk Southern Corp. 300,000 18.188 0.09
Union Pacific Corp. 1,775,000 80.984 0.42
--------- ------
3832.653 19.88
--------- ------
- ------------------------------------------ --------- --------- ------
Finance
- ------------------------------------------ --------- --------- ------
Banking-7.83%
H.F. Ahmanson & Co. 3,000,000 48.375 0.25
Banc One Corp. 8,272,500 209.915 1.09
BankAmerica Corp. 5,850,000 231.075 1.2
Bankers Trust New York Corp. 1,385,000 76.694 0.4
Chemical Banking Corp. 1,000,000 35.875 0.18
Citicorp 1,200,000 49.65
Citicorp, $5.375 convertible preferred, 0.51
Series 13 420,000 47.985
Comerica Inc. 1,000,000 24.375 0.13
CS Holding Group 60,000 25.688 0.13
Deutsche Bank AG 49,765 23.15 0.12
First Chicago Corp. 1,300,000 62.075 0.32
First Fidelity Bancorporation 700,000 31.412 0.16
First Interstate Bancorp 2,175,000 147.084 0.76
First Union Corp. 2,150,000 88.956 0.46
Great Western Financial Corp. 3,701,500 59.224 0.31
J.P. Morgan & Co. Inc. 1,900,000 106.4 0.55
National City Corp. 800,000 20.7 0.11
NBD Bancorp, Inc. 1,802,800 49.352 0.25
PNC Bank Corp. 4,592,000 97.006 0.5
SunTrust Banks, Inc. 800,000 38.2 0.2
U.S. Bancorp 400,000 8.95 0.05
Wachovia Corp. 882,700 28.467 0.15
Financial Services-2.93%
American Express Co. 2,479,500 73.145 0.38
Federal National Mortgage Assn. 5,660,000 412.473 2.14
Student Loan Marketing Assn. 2,450,000 79.625 0.41
Insurance-3.05%
Allstate Corp. 2,583,000 61.023 0.32
American General Corp. 1,210,000 34.183 0.18
American International Group, Inc. 1,215,000 119.07 0.62
CIGNA Corp. 200,000 12.65 0.07
CKAG Colonia Konzern AG 34,000 27.898 0.15
CKAG Colonia Konzern AG, preferred shares 3,627 1.851
General Re Corp. 950,000 117.562 0.61
Lincoln National Corp. 1,050,000 36.75 0.19
SAFECO Corp. 1,340,000 69.68 0.36
St. Paul Companies, Inc. 2,390,000 106.953 0.55
--------- ------
2663.471 13.81
--------- ------
- ------------------------------------------ --------- --------- ------
Multi-Industry, Gold Mines & Miscellaneous
- ------------------------------------------ --------- --------- ------
Multi-Industry-2.19%
Canadian Pacific Ltd. 1,000,000 15 0.08
Hanson PLC 3,500,000 12.661 0.71
Hanson PLC (American Depositary Receipts) 6,850,000 123.3
Minnesota Mining and Manufacturing Co. 2,745,000 146.514 0.76
Tenneco Inc. 1,825,000 77.563 0.4
Textron Inc. 925,000 46.597 0.24
Gold Mines -0.32%
Newmont Mining Corp. 1,700,000 61.2 0.32
Miscellaneous-1.75%
Equity-type securities in initial period of
acquisition 337.568 1.75
--------- ------
820.403 4.26
--------- ------
- ------------------------------------------- --------- --------- ------
TOTAL EQUITY-TYPE SECURITIES (cost: $11,586.700
million) 14896.492 77.27
--------- --------- ------
Principal
- ------------------------------------------ Amount
Bonds & Notes (millions)
- ------------------------------------------ --------- --------- ------
U.S. Treasuries-12.48%
7.50% January 1996 25 25.047 0.13
4.375% August 1996 400 380.564 1.97
4.375% November 1996 400 377.248 1.96
8.00% January 1997 175 175.903 0.91
6.875% April 1997 170 166.865 0.87
6.375% June 1997 230 222.921 1.16
5.75% October 1997 300 284.391 1.48
8.875% November 1997 25 25.66 0.13
4.75% August 1998 300 270.843 1.4
5.125% November 1998 300 272.907 1.42
8.875% November 1998 25 25.836 0.13
11.625% November 2004 30 37.575 0.19
7.125% February 2023 151.5 137.865 0.72
- ------------------------------------------ --------- ------
TOTAL BONDS & NOTES (cost: $2,532.848 million) 2403.625 12.47
- ------------------------------------------ --------- ------
TOTAL INVESTMENT SECURITIES (cost: $14,119.548
million) 17300.117 89.74
--------- ------
- ------------------------------------------
Short-Term Securities
- ------------------------------------------ --------- --------- ------
U.S. Treasury Short-Term Securities-9.73%
4.25%-8.50% due 2/9-8/15/95 1,907.65 1877.73 9.73
--------- ------
TOTAL SHORT-TERM SECURITIES
(cost: $1,884.691 million) 1877.73 9.73
Excess of cash and receivables over payables 101.746 0.53
--------- ------
TOTAL SHORT-TERM SECURITIES, CASH AND 1979.476 10.26
RECEIVABLES,
NET OF PAYABLES
--------- ------
NET ASSETS 19279.593 100
========= ======
- ------------------------------------------ --------- --------- ------
</TABLE>
Investment Company of America
<TABLE>
<CAPTION>
- ----------------------------------------- ------------- -------------
Statement of Assets and Liabilities (dollars in
at December 31, 1994 millions)
<S> <C> <C>
- ---------------------------------------- ------------- -------------
Assets:
Investment securities at market
(cost: $14,119.548) $17,300.117
Short-term securities at market
(cost: $1,884.691) 1,877.73
Cash 5.306
Receivables for-
Sales of investments $36.065
Sales of fund's shares 51.84
Dividends and accrued interest 90.444 178.349
------------- -------------
19,361.502
Liabilities:
Payables for-
Purchases of investments 54.95
Repurchases of fund's shares 19.33
Management services 4.241
Accrued expenses 3.388 81.909
------------- -------------
Net Assets at December 31, 1994-
Equivalent to $17.67 per share on
1,090,856,938 shares of $1 par value
capital stock outstanding (authorized
capital stock--2,000,000,000 shares) $19,279.593
=============
Statement of Operations (dollars in
for the year ended December 31, 1994 millions)
- ----------------------------------------- ------------- -------------
Investment Income:
Income:
Dividends $425.346
Interest 232.625 $657.971
-------------
Expenses:
Management services fee 50.698
Distribution expenses 38.084
Transfer agent fee 16.006
Reports to shareholders 2.074
Registration statement and
prospectus 1.4
Postage, stationery and supplies 5.024
Directors' fees 0.408
Auditing and legal fees 0.098
Custodian fee 0.771
Taxes (other than federal income tax) 0.296
Other expenses 0.225 115.084
------------- -------------
Net investment income 542.887
-------------
Realized Gain and Change in Unrealized
Appreciation on Investments:
Net realized gain 628.471
Net change in unrealized
appreciation on investments:
Beginning of year 4,314.584
End of year ........ 3,173.701 (1,140.883)
------------- -------------
Net realized gain and change in
unrealized appreciation on investments (512.412)
-------------
Net Increase in Net Assets Resulting
from Operations $30.475
=============
- ---------------------------------------- ------------- -------------
Statement of Changes in Net Assets (dollars in
millions)
Year ended
December 31
1994 1993
- ----------------------------------------- ------------- -------------
Operations:
Net investment income $542.887 $531.116
Net realized gain on investments 628.471 692.804
Net change in unrealized appreciation
on investments (1,140.883) 718.467
------------- -------------
Net increase in net assets
resulting from operations 30.475 1,942.387
------------- -------------
Dividends and Distributions Paid
to Shareholders:
Dividends from net investment income (496.411) (445.535)
Distributions from net realized
gain on investments (628.912) (726.078)
------------- -------------
Total dividends and distributions (1,125.323) (1,171.613)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold: 149,158,039
and 212,849,472 shares, respectively 2,761.027 3,926.672
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 56,628,397 and 55,417,050
shares, respectively 1,014.931 1,030.191
Cost of shares repurchased: 130,005,029
and 115,511,426 shares, respectively (2,406.547) (2,151.043)
------------- -------------
Net increase in net assets resulting from
capital share transactions 1,369.411 2,805.82
------------- -------------
Total Increase in Net Assets 274.563 3,576.594
Net Assets:
Beginning of year 19,005.03 15,428.436
------------- -------------
End of year (including undistributed
net investment income: $227.698
and $181.222, respectively) $19,279.593 $19,005.03
============= =============
See Notes to Financial Statements
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. The Investment Company of America (the "fund") is registered under the
Investment Company Act of 1940 as an open-end, diversified management
investment company. The following paragraphs summarize the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
Equity-type securities are stated at market value based upon closing sales
prices reported on recognized securities exchanges on the last business day of
the year or, for listed securities having no sales reported and for unlisted
securities, upon last-reported bid prices on that date.
Non-convertible bonds and other long-term debt securities are valued at prices
obtained from a bond-pricing service provided by a major dealer in bonds, when
such prices are available; however, in circumstances where the investment
adviser deems it appropriate to do so, such securities will be valued at the
mean of their representative quoted bid and asked prices or, if such prices are
not available, at the mean of such prices for securities of comparable
maturity, quality and type.
Short-term securities with original or remaining maturities 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. The fund does not amortize premiums on securities purchased.
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 Change in 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 $771,000 includes $128,000 that was paid by these credits
rather than 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 December 31, 1994, net unrealized appreciation on investments for
federal income tax purposes aggregated $3,190,524,000, of which $3,874,702,000
related to appreciated securities and $684,178,000 related to depreciated
securities. During the year ended December 31, 1994, the fund realized, on a
tax basis, a net capital gain of $628,399,000 on securities transactions. The
cost of portfolio securities for federal income tax purposes was
$15,987,323,000 at December 31, 1994.
3. The fee of $50,698,000 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 0.39% of the first $1 billion of average net assets;
0.336% of such assets in excess of $1 billion but not exceeding $2 billion;
0.30% of such assets in excess of $2 billion but not exceeding $3 billion;
0.276% of such assets in excess of $3 billion but not exceeding $5 billion;
0.258% of such assets in excess of $5 billion but not exceeding $8 billion;
0.246% of such assets in excess of $8 billion but not exceeding $13 billion;
and 0.24% of such assets in excess of $13 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 December 31, 1994,
distribution expenses under the Plan were $38,084,000. As of December 31,
1994, accrued and unpaid distribution expenses were $3,206,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $16,006,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $13,495,000 (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 and Advisory Board members 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 December 31, 1994, aggregate amounts deferred
were $61,900.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both wholly
owned subsidiaries of CRMC. Certain Directors and officers of the fund are or
may be considered to be affiliated with CRMC, AFS and/or AFD. No affiliated
officers, directors or employees of CRMC, AFS or AFD received any remuneration
directly from the fund.
4. Option warrants are outstanding, which may be exercised at any time for the
purchase of 842,013 shares of the fund at approximately $5.242 per share. If
all warrants had been exercised on December 31, 1994, the net assets of the
fund would have been $19,284,006,000; the shares outstanding would have been
1,091,699,000; and the net asset value would have been equivalent to $17.66 per
share. During the year ended December 31, 1994, 150 warrants were exercised for
the purchase of 3,291 shares.
5. As of December 31, 1994, accumulated undistributed net realized gain on
investments was $28,000 and additional paid-in capital was $14,787,309,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $5,652,350,000 and $5,991,308,000, respectively,
during the year ended December 31, 1994.
Dividend income is recorded net of foreign taxes paid. For the year ended
December 31, 1994, such foreign taxes amounted to $5,479,000. Net realized
currency gains on dividends, interest, and withholding taxes reclaimable were
$72,000 for the year ended December 31, 1994.
INVESTMENT COMPANY OF AMERICA
December 31, 1994
<TABLE>
<CAPTION>
Per-Share Data and Ratios Year
ended
December
31
1994 1993 1992 1991 1990
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Year $18.72 $17.89 $17.48 $14.52 $15.24
------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income 0.51 0.54 0.49 0.51 0.57
Net realized and unrealized
gain (loss) on investments -0.48 1.51 0.71 3.27 -0.48
------- ------- ------- ------- -------
Total income from
investment operations 0.03 2.05 1.2 3.78 0.09
------- ------- ------- ------- -------
Less Distributions:
Dividends from net investment
income -0.48 -0.47 -0.47 -0.44 -0.59
Distributions from net
realized gains -0.6 -0.75 -0.32 -0.38 -0.22
------- ------- ------- ------- -------
Total distributions -1.08 -1.22 -0.79 -0.82 -0.81
------- ------- ------- ------- -------
Net Asset Value, End of Year $17.67 $18.72 $17.89 $17.48 $14.52
======= ======= ======= ======= =======
Total Return* 0.0016 11.62% 6.99% 26.54% 0.0068
Ratios/Supplemental Data:
Net assets, end of year (in
millions) $19,280 $19,005 $15,428 $10,526 $5,923
Ratio of expenses to average
net assets 0.006 0.0059 0.0058 0.0059 0.0055
Ratio of net income to average
net assets 0.0283 0.0303 0.0306 0.0329 0.0395
Portfolio turnover - common stocks 17.94% 19.57% 7.23% 5.79% 7.48%
Portfolio turnover - investment securities 31.08% 17.57% 9.73% 6.21% 10.94%
*This was calculated without deducting
a sales charge. The maximum sales charge
is 5.75% of the fund's offering price.
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of The Investment Company of
America, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the investment portfolio, and the related statements of operations and of
changes in net assets and the per-share data and ratios present fairly, in all
material respects, the financial position of The Investment Company of America
(the "Fund") at December 31, 1994, the results of its operations and the
changes in its net assets and the per-share data and ratios for the periods
indicated in conformity with generally accepted accounting principles. These
financial statements and per-share data and ratios (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in
accordance with generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1994, by correspondence with the
custodian and brokers and the application of alternative auditing procedures
where confirmations from brokers were not received, provide a reasonable basis
for the opinion expressed above.
/s/ Price Waterhouse LLP
Los Angeles, California
January 31, 1995
TAX INFORMATION (UNAUDITED)
During the fiscal year ended December 31, 1994, 69% of the dividends paid by
the fund from investment income earned qualified for the corporate
dividends-received deduction. Of those dividends, 32% was derived from
interest on direct U.S. Treasury obligations.
This information is given to meet certain requirements of the Internal Revenue
Code.
OFFICES OF THE FUND AND OF THE INVESTMENT ADVISER,
CAPITAL RESEARCH AND MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
P.O. Box 659522
San Antonio, TX 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
O'Melveny & Myers
400 South Hope Street
Los Angeles, California 90071-2899
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
400 South Hope Street
Los Angeles, California 90071-2889
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION about your account or any of the fund's services, please
contact your securities dealer or financial planner, or call the fund's
transfer agent, toll free, at 800/421-0180.
This report is for the information of shareholders of The Investment Company of
America, but it may also be used as sales literature when preceded or
accompanied by the current prospectus, which gives details about charges,
expenses, investment objectives and operating policies of the fund. If used as
sales material after March 31, 1995, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Litho in USA BDA/GRS
Lit. No. ICA-011-0295
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements:
Included in Prospectus - Part A
Financial Highlights
Included in Statement of Additional Information - Part B
Investment Portfolio Notes to Financial Statements
Statement of Assets and Liabilities Per-Share Data and Ratios
Statement of Operations Report of Independent Accountants
Statement of Changes in Net Assets
(b) Exhibits:
1. On file (see SEC files nos. 811-116 and 2-10811)
2. On file (see SEC files nos. 811-116 and 2-10811)
3. None.
4. On file (see SEC files nos. 811-116 and 2-10811)
5. On file (see SEC files nos. 811-116 and 2-10811)
6. On file (see SEC files nos. 811-116 and 2-10811)
7. None.
8. On file (see SEC files nos. 811-116 and 2-10811)
9. On file (see SEC files nos. 811-116 and 2-10811)
10. Not applicable to this filing.
11. Consent of Independent Accountants
12. None.
13. None.
14. On file (see SEC files nos. 811-116 and 2-10811)
15. On file (see SEC files nos. 811-116 and 2-10811)
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. 811-116 and 2-10811)
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
As of December 31, 1994.
<TABLE>
<CAPTION>
Title of Class Number of Record-Holders
<S> <C>
Common Stock 1,520,155
($1.00 par value)
</TABLE>
ITEM 27. INDEMNIFICATION.
Registrant is a joint-insured under an Investment Advisor/Mutual Fund Errors
and Omissions Policy. The carrier of the primary policy in the amount of $15
million is American International Surplus Lines Insurance Company, and the
policy has a $250,000 deductible. The carrier of the secondary policy in the
amount of $10 million is Chubb Custom Insurance Company. The carrier of the
excess policy in the amount of $20 million is ICI Mutual Insurance Company.
The following are certain provisions of the Delaware Corporation Law
applicable to the Registrant:
Subsection (a) of Section 145 of the Delaware Corporation Law empowers a
corporation to indemnify 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 (other than
an action by or in the right of the corporation) 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, 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 if he acted in good faith and
in a manner he reasonably believed to be in or not opposed to the best
interests of the corporation, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was unlawful.
Subsection (b) of Section 145 empowers a corporation to indemnify any person
who was or is a party or is threatened to be made a party to any threatened,
pending or completed action or suit by or in the right of the corporation to
procure a judgment in its favor by reason of the fact that such person acted in
any of the capacities set forth above, against expenses (including attorneys'
fees) actually and reasonably incurred by him in connection with the defense or
settlement of such action or suit if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
corporation and except that no indemnification shall be made in respect of any
claim, issue or matter as to which such person shall have been adjudged to be
liable to the corporation unless and only to the extent that a court of equity
or the court in which such action or suit was brought shall determine upon
application that despite the adjudication of liability but in view of all the
circumstances of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which the court shall deem proper.
Section 145 further provides that to the extent a director or officer of a
corporation has been successful on the merits or otherwise in the defense of
any action, suit or proceeding referred to in subsections (a) and (b) or in the
defense of any claim, issue or matter therein, he shall be indemnified against
expenses (including attorneys' fees) actually and reasonably incurred by him in
connection therewith; that indemnification provided for by Section 145 shall
not be deemed exclusive of any other rights to which the indemnified party may
be entitled; that the scope of indemnification extends to directors, officers,
employees or agents of a constituent corporation absorbed in a consolidation or
merger and persons serving in that capacity at the request of the constituent
corporation for another; and empowers the corporation to purchase and maintain
insurance on behalf of a director or officer of the corporation against any
liability asserted against him or 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 liabilities under Section 145.
The By-Laws of the Registrant state:
37A. The corporation shall indemnify its directors and officers, and may
indemnify its employees and agents to the full extent permitted by the law of
the State of Delaware; provided, however, that the corporation shall not
indemnify any of its directors or officers against any liability to the
corporation or to its stockholders to which he or she would otherwise be
subject by reason of willful misfeasance, bad faith, gross negligence or
reckless disregard of the duties involved in the conduct of his or her office
as described in Section 17(h) of the Investment Company Act of 1940 ("disabling
conduct"). The corporation shall indemnify any of its directors or officers
against any liability to the corporation or to its stockholders if:
(1) a court or other body before whom a proceeding relating to liability was
brought renders a final decision on the merits finding such director or officer
not liable by reason of disabling conduct or
(2) in the absence of such a decision either:
(a) a majority of a quorum of directors, who are neither interested persons
of the corporation as defined in Section 2(a)(19) of the Investment Company Act
of 1940 nor parties to the proceeding, or
(b) independent legal counsel in a written opinion makes a reasonable
determination, based on a review of the facts, that such director or officers
is not liable by reason of disabling conduct.
The corporation may advance funds to cover expenses, including attorneys'
fees, incurred by any director or officer in connection with the defense of any
such proceeding, provided that such director or officer undertakes to repay any
advance unless a determination is made pursuant to the procedures set forth
herein that such indemnification is proper. As a condition to such an advance
(i) the director or officer shall provide security for his undertaking; (ii)
the corporation shall be insured against losses arising by reason of any lawful
advance; or (iii) a majority of a quorum of the directors, who are neither
'Interested persons' of the corporation as defined in Section 2(a)(19) of the
Investment Company Act of 1940 nor parties to the proceeding, or independent
legal counsel in a written opinion, shall determine, based on a review of
readily available facts, that there is reason to believe that such director or
officer will be found entitled to indemnification.
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 Growth Fund of America, Inc., The
Income Fund of America, Inc., The 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.
ITEM 29. PRINCIPAL UNDERWRITERS (CONT.)
(b)
<TABLE>
<CAPTION>
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address with Underwriter with Registrant
<S> <C> <C> <C>
* David A. Abzug Assistant Vice President None
Robert B. Aprison Regional Vice President None
2983 Bryn Wood Drive
Madison, WI 53711
% Richard 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 Regional Vice President None
5900 Robert E. Lee Court
Nashville, TN 37215
Michael 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 Director and None
Senior Vice President
@ J. Peter Burns Vice President None
Brian C. Casey Regional Vice President None
9508 Cable Drive
Kensington, MO 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
* Larry P. Clemmensen Director and Treasurer None
* Kevin G. Clifford Senior Vice President None
Ruth M. Collier Vice President None
145 West 67th Street, Suite 12K
New York, NY 10023
* Don R. Conlan Director None
Thomas E. Cournoyer Vice President None
2333 Granada Blvd.
Coral Gables, FL 33134
Douglas A. Critchell Vice President None
1230 31st St., N.W.
Washington, D.C. 20007
% Carl D. Cutting Vice President None
Michael A. Dilella Vice President None
P.O. Box 661
Ramsey, NJ 07446
G. Michael Dill Vice President None
3622 E. 87th Street
Tulsa, OK 74137
Kirk D. Dodge Regional 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 Fodor Regional Vice President None
5 Marloborough, Suite 51
Boston, MA 02116
Steven S. Fogerty Regional Vice President None
535 Spring Club Drive
Altamonte Springs, FL 32714
* Mark P. Freeman, Jr. President and Director None
Clyde E. Gardner Vice President None
Route 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 None
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 and None
Controller
* V. John Kriss Senior Vice President None
Arthur J. Levine Vice President None
12558 Highlands Place
Fishers, IN 46038
# Karl A. Lewis Assistant Vice President None
Blake Liberty Regional Vice President None
12585-E East Tennessee Circle
Aurora, CA 80012
Heather A. Maier Assistant Vice President - None
Institutional Investment
Services
Division
Stephen A. Malbasa Regional Vice President None
13405 Lake Shore Blvd.
Cleveland, OH 44110
Steven M. Markel Vice President None
5241 South Race Street
Littleton, CO 80121
* John C. Massar Vice President None
E. Lee McClennahan Vice President None
4445 N. Highway AIA
Suite 232
Vero Beach, FL 32963
% John V. McLaughlin Senior Vice President None
Terry W. McNabb Vice President None
2002 Barrett Station Road
St. Louis, MO 63131
* R. William Melinat Vice President - Institutional None
Investment Services Division
Patrick J. Miller Vice President None
5304 Clipper Cove Road
Midlothian, VA 23112
David R. Murray Regional Vice President None
25701 S.E. 32nd Place
Issaquah, WA 98027
Stephen S. Nelson Vice President None
7215 Trevor Road
Charlotte, NC 28270
* Barbara G. Nicholich Assistant Vice President- None
Institutional Investment
Services Division
Frederic Phillips Regional Vice President None
32 Ridge Avenue
Newton Centre, MA 02159
# Candance D. Pilgrim Assistant 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 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
* Christopher Rowey Regional Vice President None
Dean B. Rydquist Vice President None
155 Willow Brook Drive
Roswell, GA 30076
Richard R. Samson Vice President None
4604 Glencoe, Ave., No. 4
Marina del Rey, CA 90292
* R. Michael Shanahan Chairman of the Board Senior Vice President
David W. Short Vice President None
Suite 212
1000 RIDC Plaza
Pittsburgh, PA 15238-2941
* 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 Vice President - None
Institutional Investment
Services Division
# Mark S. Smith Director and None
Senior Vice President
Rodney G. Smith Regional Vice President None
2350 Lakeside Blvd., #850
Richardson, TX 75082
Daniel S. Spradling Senior Vice President None
#4 West Fourth Ave., Suite 406
San Mateo, CA 94402
Craig R. Strauser Regional Vice President None
308 S. Eagle Nest Lane
Danville, CA 94506
% 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
1231 Starboard Lane
Sarasota, FL 34242
@ J. Kelly Webb Senior Vice President None
Gregory J. Weimer Regional Vice President None
125 Surrey Drive
Danonsburg, PA 15317
# Timothy W. Weiss Director None
** N. Dexter Williams Vice President None
Timothy J. Wilson Regional Vice President None
113 Farmview Place
Venetia, PA 15367
* Marshall D. Wingo Senior Vice President None
* Robert L. Winston Director and None
Senior Vice President
Janet M. Young Regional Vice President None
1616 Vermont
Houston, TX 77006
</TABLE>
* Business Address, 333 South Hope Street, Los Angeles, CA 90071
** Business Address, Four Embarcadero, Suite 1800, San Francisco, CA 94111
# 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 Blvd., Indianapolis, IN 46240
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 the
company and its investment adviser, Capital Research and Management Company,
333 South Hope Street, Los Angeles, CA 90071. Certain accounting records are
maintained and kept in the offices of the company's accounting department, 135
South State College Blvd., Brea, CA 92621.
Records covering shareholder accounts are maintained and kept by the Transfer
Agent, American Funds Service Company, 135 South State College Blvd., Brea, CA
92621, 8000 IH-10, Suite 1400, San Antonio, TX 78230, 8332 Woodfield Crossing
Boulevard, Indianapolis, IN 46240, and 5300 Robin Hood Road, Norfolk, VA
23513.
Records covering portfolio transactions are also maintained and kept by the
Custodian, The Chase Manhattan Bank, N.A., One Chase Manhattan Plaza, New York,
New York, 10081.
ITEM 31. MANAGEMENT SERVICES.
None.
ITEM 32. UNDERTAKINGS.
(c) As reflected in the prospectus, the company undertakes to provide each
person to whom a prospectus is delivered with a copy of the company'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) and has duly caused this Post-Effective Amendment to its Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Los Angeles, and State of California, on the
24th day of February, 1995.
THE INVESTMENT COMPANY OF AMERICA
By
(Jon B. Lovelace, Jr., Chairman of the Board)
Pursuant to the requirements of the Securities Act of 1933, this amendment to
Registration Statement has been signed below on February 24, 1995, by the
following persons in the capacities indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE
<S> <C> <C>
(1) Principal Executive Officer:
William C. Newton*
(William C. Newton) President and Director
(2) Principal Financial Officer and
Principal Accounting Officer:
_______________________________
(Steven N. Kearsley) Treasurer
(3) Directors:
Charles H. Black* Director
John F. Bookout.* Director
Ann S. Bowers* Director
Malcolm R. Currie* Director
____________________________
(Jon B. Lovelace, Jr.) Chairman of the Board
John G. McDonald* Director
Bailey U. Morris* Director
William C. Newton* President and Director
James W. Ratzlaff* Executive Vice President and Director
Olin C. Robison* Director
</TABLE>
*By
(Vincent P. Corti, Attorney-in-Fact)
(continued...)
Counsel reports that the amendment does not contain disclosures that would
make the amendment ineligible for effectiveness under the provisions of rule
485(b).
____________________________
(Michele Y. Yang)
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 98 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
January 31, 1995, relating to the financial statements and per share data and
ratios of The Investment Company of America, which appears in such Statement of
Additional Information, and to the incorporation by reference of our report
into the Prospectus which constitutes part of this Registration Statement. We
also consent to the references to us under the headings "General Information -
Independent Accountants" and "General Information - Reports to Shareholders" in
such Statement of Additional Information and to the reference to us under the
heading "Financial Highlights" in such Prospectus.
PRICE WATERHOUSE LLP
Los Angeles, California
February 22, 1995
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/ = $ 1,115.12
T = + 11.51%
5 Year Avg. Annual Total Return 1,000(1+T)/5/ = $ 1,816.15
T = + 12.68%
10 Year Avg. Annual Total Return 1,000(1+T)/10/ = $ 3,775.99
T = + 14.21%
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 investments in an Individual Retirement Account 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 income investment 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 months 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 INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/34 1000.00 23.00 5.75 % 43.478 21.680 943
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>
12/31/34 1000 0 0 1000 0 1182 0 1182 0 1182.17 43.478
12/31/35 1000 0 0 1000 0 2164 0 2164 0 2164.33 43.478
12/31/36 1000 40 40 1040 401 2603 501 3104 51 3155.93 52.713
12/31/37 1000 101 141 1141 28 1525 309 1834 108 1942.39 55.386
12/31/38 1000 18 159 1159 101 1833 492 2325 152 2477.57 117.532
12/31/39 1000 54 213 1213 67 1750 548 2298 200 2498.58 124.122
12/31/40 1000 89 302 1302 37 1617 544 2161 277 2438.34 131.164
12/31/41 1000 126 428 1428 8 1412 483 1895 363 2258.97 139.099
12/31/42 1000 118 546 1546 24 1551 558 2109 528 2637.57 147.846
12/31/43 1000 109 655 1655 40 1970 750 2720 781 3501.83 154.538
12/31/44 1000 125 780 1780 152 2270 1020 3290 1029 4319.22 165.424
12/31/45 1000 120 900 1900 405 2823 1678 4501 1407 5908.99 182.039
12/31/46 1000 177 1077 2077 379 2499 1857 4356 1413 5769.07 200.733
12/31/47 1000 241 1318 2318 272 2302 1980 4282 1539 5821.63 219.933
12/31/48 1000 270 1588 2588 181 2137 2020 4157 1685 5842.96 237.712
12/31/49 1000 266 1854 2854 221 2157 2259 4416 1978 6394.06 644.562
12/31/50 1000 316 2170 3170 225 2396 2739 5135 2526 7661.67 695.251
12/31/51 1000 339 2509 3509 386 2593 3355 5948 3079 9027.25 756.685
12/31/52 1000 355 2864 3864 444 2678 3914 6592 3537 10129.12 822.169
12/31/53 1000 392 3256 4256 279 2513 3949 6462 3712 10174.55 880.151
12/31/54 1000 411 3667 4667 740 3622 6447 10069 5816 15885.66 1907.042
12/31/55 1000 512 4179 5179 1378 4096 8720 12816 7105 19921.25 2114.782
12/31/56 1000 561 4740 5740 1584 4100 10304 14404 7660 22064.48 2339.818
12/31/57 1000 623 5363 6363 1200 3296 9433 12729 6713 19442.97 2565.036
12/31/58 1000 655 6018 7018 972 4465 13836 18301 9846 28147.47 2740.747
12/31/59 1000 701 6719 7719 2110 4648 16540 21188 10953 32141.44 3006.683
12/31/60 1000 814 7533 8533 1810 4465 17775 22240 11359 33599.38 3271.605
12/31/61 1000 839 8372 9372 2143 5091 22448 27539 13815 41354.71 3531.572
12/31/62 1000 913 9285 10285 1609 4126 19628 23754 12125 35879.53 3780.772
12/31/63 1000 962 10247 11247 1816 4739 24418 29157 14932 44089.41 4044.900
12/31/64 1000 1071 11318 12318 2936 5078 29123 34201 17057 51258.49 4388.569
12/31/65 1000 1211 12529 13529 3912 5917 37973 43890 21178 65068.12 4780.905
12/31/66 1000 1553 14082 15082 4990 5409 39421 44830 20878 65708.43 5282.028
12/31/67 1000 1836 15918 16918 3999 6478 51339 57817 26876 84693.05 5684.097
12/31/68 1000 2263 18181 19181 3581 7057 60314 67371 31691 99062.71 6103.679
CONTINUED ON NEXT PAGE
THE INVESTMENT COMPANY OF AMERICA
============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>
12/31/69 1000 2532 20713 21713 5982 5743 54478 60221 28260 88481.28 6698.053
12/31/70 1000 2731 23444 24444 3885 5448 55602 61050 29750 90800.71 7246.665
12/31/71 1000 2857 26301 27301 1923 6083 64036 70119 36144 106263.80 7595.697
12/31/72 1000 2992 29293 30293 3639 6657 73787 80444 42663 123107.17 8040.965
12/31/73 1000 3335 32628 33628 2711 5213 60591 65804 36601 102405.49 8540.908
12/31/74 1000 5219 37847 38847 0 4026 46795 50821 33208 84029.95 9074.509
12/31/75 1000 4980 42827 43827 652 5178 60841 66019 47745 113764.63 9552.026
12/31/76 1000 4644 47471 48471 2253 6387 77356 83743 63692 147435.10 10036.426
12/31/77 1000 4983 52454 53454 2885 5883 74153 80036 63602 143638.40 10616.290
12/31/78 1000 5597 58051 59051 0 6513 82100 88613 76133 164746.25 10997.747
12/31/79 1000 6995 65046 66046 1980 7391 95304 102695 93633 196328.53 23097.474
12/31/80 1000 9131 74177 75177 4619 8391 113241 121632 116383 238015.72 24664.841
12/31/81 1000 11590 85767 86767 16279 7513 117086 124599 115507 240106.12 27790.060
12/31/82 1000 14611 100378 101378 15285 8861 158214 167075 154120 321195.65 31520.672
12/31/83 1000 14714 115092 116092 14184 9791 190879 200670 185296 385966.33 34277.649
12/31/84 1000 16045 131137 132137 17482 9565 204081 213646 198067 411713.46 37428.496
12/31/85 1000 17489 148626 149626 18340 11748 274156 285904 263278 549182.05 40650.041
12/31/86 1000 20383 169009 170009 105638 11470 380264 391734 276823 668557.27 50686.677
12/31/87 1000 26749 195758 196758 38879 10965 405119 416084 288824 704908.90 55900.785
12/31/88 1000 31874 227632 228632 43629 11252 459739 470991 327927 798918.38 61740.215
12/31/89 1000 37083 264715 265715 53799 13252 596406 609658 424187 1033845.86 67837.655
12/31/90 1000 40631 305346 306346 15248 12626 583647 596273 444616 1040889.58 71686.610
12/31/91 1000 32042 337388 338388 27761 15200 732413 747613 569559 1317172.56 75353.121
12/31/92 1000 35777 373165 374165 24574 15556 774180 789736 619469 1409205.84 78770.589
12/31/93 1000 37439 410604 411604 60203 16278 870697 886975 685941 1572916.70 84023.328
12/31/94 1000 40722 451326 452326 51310 15365 873286 888651 686712 1575363.53 89154.699
TOTAL $ 571570
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/94 1000.00 19.86 5.75 % 50.352 18.720 943
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>
12/31/94 1000 26 26 1026 31 890 31 921 23 944.04 53.426
TOTAL $ 31
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/90 1000.00 16.17 5.75 % 61.843 15.240 942
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>
12/31/90 1000 37 37 1037 14 898 14 912 36 948.90 65.351
12/31/91 1000 28 65 1065 25 1081 44 1125 75 1200.77 68.694
12/31/92 1000 34 99 1099 22 1106 68 1174 110 1284.66 71.809
12/31/93 1000 34 133 1133 55 1158 126 1284 149 1433.91 76.598
12/31/94 1000 37 170 1170 47 1093 166 1259 177 1436.15 81.276
TOTAL $ 163
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/85 1000.00 11.67 5.75 % 85.690 11.000 943
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>
12/31/85 1000 40 40 1040 42 1158 54 1212 45 1257.31 93.065
12/31/86 1000 48 88 1088 242 1130 310 1440 90 1530.61 116.043
12/31/87 1000 62 150 1150 89 1081 392 1473 140 1613.82 127.979
12/31/88 1000 72 222 1222 100 1109 503 1612 217 1829.04 141.348
12/31/89 1000 86 308 1308 123 1306 718 2024 342 2366.88 155.307
12/31/90 1000 92 400 1400 35 1244 720 1964 418 2382.99 164.118
12/31/91 1000 73 473 1473 64 1498 934 2432 583 3015.51 172.512
12/31/92 1000 82 555 1555 56 1533 1013 2546 680 3226.21 180.336
12/31/93 1000 86 641 1641 138 1604 1198 2802 799 3601.02 192.362
12/31/94 1000 92 733 1733 117 1514 1249 2763 843 3606.62 204.110
TOTAL $ 1006
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/34 1000.00 21.68 0.00 % 46.125 21.680 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>
12/31/34 1000 0 0 1000 0 1254 0 1254 0 1254.14 46.125
12/31/35 1000 0 0 1000 0 2296 0 2296 0 2296.10 46.125
12/31/36 1000 42 42 1042 425 2762 532 3294 54 3348.11 55.923
12/31/37 1000 106 148 1148 30 1618 328 1946 114 2060.64 58.758
12/31/38 1000 19 167 1167 107 1945 522 2467 161 2628.44 124.689
12/31/39 1000 58 225 1225 71 1857 581 2438 212 2650.74 131.681
12/31/40 1000 94 319 1319 40 1715 577 2292 294 2586.80 139.150
12/31/41 1000 133 452 1452 8 1498 513 2011 385 2396.52 147.569
12/31/42 1000 127 579 1579 25 1646 592 2238 560 2798.19 156.849
12/31/43 1000 116 695 1695 43 2090 795 2885 830 3715.06 163.948
12/31/44 1000 132 827 1827 161 2409 1082 3491 1091 4582.23 175.497
12/31/45 1000 127 954 1954 430 2994 1780 4774 1494 6268.81 193.124
12/31/46 1000 188 1142 2142 402 2651 1970 4621 1499 6120.38 212.957
12/31/47 1000 256 1398 2398 289 2442 2101 4543 1633 6176.11 233.325
12/31/48 1000 285 1683 2683 192 2268 2143 4411 1787 6198.73 252.186
12/31/49 1000 282 1965 2965 234 2288 2397 4685 2098 6783.37 683.807
12/31/50 1000 335 2300 3300 239 2542 2906 5448 2680 8128.15 737.582
12/31/51 1000 359 2659 3659 410 2751 3560 6311 3265 9576.90 802.758
12/31/52 1000 374 3033 4033 471 2841 4152 6993 3752 10745.90 872.232
12/31/53 1000 417 3450 4450 296 2666 4189 6855 3939 10794.08 933.744
12/31/54 1000 435 3885 4885 785 3842 6839 10681 6171 16852.94 2023.162
12/31/55 1000 544 4429 5429 1461 4345 9251 13596 7538 21134.25 2243.551
12/31/56 1000 595 5024 6024 1680 4350 10931 15281 8126 23407.96 2482.286
12/31/57 1000 660 5684 6684 1273 3496 10007 13503 7123 20626.82 2721.216
12/31/58 1000 695 6379 7379 1032 4737 14679 19416 10445 29861.31 2907.625
12/31/59 1000 744 7123 8123 2239 4931 17547 22478 11620 34098.45 3189.752
12/31/60 1000 862 7985 8985 1920 4737 18857 23594 12051 35645.15 3470.803
12/31/61 1000 889 8874 9874 2274 5401 23815 29216 14656 43872.66 3746.598
12/31/62 1000 969 9843 10843 1707 4377 20823 25200 12864 38064.12 4010.972
12/31/63 1000 1021 10864 11864 1927 5028 25905 30933 15840 46773.87 4291.181
12/31/64 1000 1135 11999 12999 3114 5387 30896 36283 18096 54379.43 4655.773
12/31/65 1000 1285 13284 14284 4150 6278 40285 46563 22466 69029.91 5071.999
12/31/66 1000 1646 14930 15930 5294 5738 41821 47559 22150 69709.19 5603.633
12/31/67 1000 1947 16877 17877 4242 6873 54464 61337 28512 89849.68 6030.180
12/31/68 1000 2400 19277 20277 3799 7486 63986 71472 33622 105094.23 6475.307
CONTINUED ON NEXT PAGE
THE INVESTMENT COMPANY OF AMERICA
============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>
12/31/69 1000 2686 21963 22963 6346 6093 57794 63887 29981 93868.53 7105.869
12/31/70 1000 2897 24860 25860 4121 5780 58987 64767 31562 96329.19 7687.884
12/31/71 1000 3030 27890 28890 2040 6453 67935 74388 38345 112733.76 8058.167
12/31/72 1000 3173 31063 32063 3860 7062 78280 85342 45260 130602.66 8530.546
12/31/73 1000 3539 34602 35602 2876 5530 64280 69810 38830 108640.54 9060.929
12/31/74 1000 5536 40138 41138 0 4271 49644 53915 35231 89146.21 9627.020
12/31/75 1000 5283 45421 46421 691 5494 64546 70040 50651 120691.32 10133.612
12/31/76 1000 4927 50348 51348 2390 6776 82066 88842 67569 156411.83 10647.504
12/31/77 1000 5288 55636 56636 3060 6241 78668 84909 67474 152383.98 11262.674
12/31/78 1000 5938 61574 62574 0 6910 87099 94009 80767 174776.99 11667.356
12/31/79 1000 7422 68996 69996 2100 7841 101107 108948 99334 208282.17 24503.785
12/31/80 1000 9687 78683 79683 4901 8902 120135 129037 123470 252507.54 26166.584
12/31/81 1000 12295 90978 91978 17270 7970 124215 132185 122540 254725.21 29482.085
12/31/82 1000 15501 106479 107479 16215 9400 167847 177247 163504 340751.99 33439.842
12/31/83 1000 15612 122091 123091 15048 10387 202500 212887 196579 409466.31 36364.681
12/31/84 1000 17022 139113 140113 18546 10148 216506 226654 210127 436781.09 39707.372
12/31/85 1000 18554 157667 158667 19457 12463 290848 303311 279308 582619.61 43125.064
12/31/86 1000 21624 179291 180291 112070 12168 403416 415584 293679 709263.13 53772.792
12/31/87 1000 28377 207668 208668 41246 11633 429785 441418 306410 747828.08 59304.368
12/31/88 1000 33814 241482 242482 46286 11937 487730 499667 347894 847561.45 65499.339
12/31/89 1000 39341 280823 281823 57074 14059 632719 646778 450014 1096792.73 71968.027
12/31/90 1000 43105 323928 324928 16177 13395 619183 632578 471687 1104265.31 76051.330
12/31/91 1000 33993 357921 358921 29452 16125 777006 793131 604239 1397370.10 79941.081
12/31/92 1000 37956 395877 396877 26071 16504 821316 837820 657186 1495006.92 83566.625
12/31/93 1000 39718 435595 436595 63869 17269 923710 940979 727706 1668685.52 89139.184
12/31/94 1000 43200 478795 479795 54434 16301 926457 942758 728523 1671281.33 94582.984
TOTAL $ 606370
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/94 1000.00 18.72 0.00 % 53.419 18.720 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>
12/31/94 1000 26 26 1026 33 944 33 977 24 1001.59 56.683
TOTAL $ 33
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/90 1000.00 15.24 0.00 % 65.617 15.240 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>
12/31/90 1000 38 38 1038 15 953 15 968 38 1006.82 69.340
12/31/91 1000 32 70 1070 27 1147 47 1194 80 1274.06 72.887
12/31/92 1000 34 104 1104 24 1174 72 1246 117 1363.09 76.193
12/31/93 1000 36 140 1140 58 1228 134 1362 159 1521.41 81.272
12/31/94 1000 39 179 1179 50 1159 176 1335 188 1523.79 86.236
TOTAL $ 174
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/85 1000.00 11.00 0.00 % 90.909 11.000 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>
12/31/85 1000 43 43 1043 45 1228 57 1285 48 1333.88 98.733
12/31/86 1000 49 92 1092 257 1199 329 1528 95 1623.82 123.110
12/31/87 1000 66 158 1158 94 1146 416 1562 150 1712.11 135.774
12/31/88 1000 77 235 1235 106 1176 534 1710 230 1940.43 149.956
12/31/89 1000 91 326 1326 131 1385 762 2147 364 2511.03 164.766
12/31/90 1000 98 424 1424 37 1320 763 2083 445 2528.15 174.115
12/31/91 1000 78 502 1502 67 1589 991 2580 619 3199.21 183.021
12/31/92 1000 86 588 1588 60 1626 1074 2700 722 3422.73 191.321
12/31/93 1000 90 678 1678 146 1702 1271 2973 847 3820.36 204.079
12/31/94 1000 99 777 1777 125 1606 1325 2931 895 3826.30 216.542
TOTAL $ 1068
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/85 10000.00 11.67 5.75 % 856.898 11.000 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>
12/31/85 10000 402 402 10402 420 11577 538 12115 458 12573.12 930.653
12/31/86 10000 466 868 10868 2419 11302 3103 14405 901 15306.14 1160.435
12/31/87 10000 613 1481 11481 890 10805 3919 14724 1414 16138.38 1279.808
12/31/88 10000 730 2211 12211 999 11088 5029 16117 2173 18290.69 1413.500
12/31/89 10000 848 3059 13059 1232 13059 7181 20240 3429 23669.18 1553.096
12/31/90 10000 930 3989 13989 349 12442 7195 19637 4193 23830.43 1641.214
12/31/91 10000 734 4723 14723 636 14979 9343 24322 5833 30155.73 1725.156
12/31/92 10000 819 5542 15542 563 15330 10125 25455 6807 32262.75 1803.396
12/31/93 10000 857 6399 16399 1378 16041 11983 28024 7986 36010.80 1923.654
12/31/94 10000 933 7332 17332 1175 15141 12488 27629 8437 36066.82 2041.133
TOTAL $ 10061
</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
1/01/85 10000.00 1211.57 0.00 % 8.254 1211.570 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>
12/31/85 10000 522 522 10522 0 12766 0 12766 597 13363.23 8.640
12/31/86 10000 588 1110 11110 0 15649 0 15649 1334 16983.92 8.958
12/31/87 10000 646 1756 11756 0 16003 0 16003 1929 17932.24 9.249
12/31/88 10000 747 2503 12503 0 17899 0 17899 2943 20842.13 9.611
12/31/89 10000 1006 3509 13509 0 22724 0 22724 4824 27548.52 10.006
12/31/90 10000 1053 4562 14562 0 21737 0 21737 5655 27392.70 10.401
12/31/91 10000 1002 5564 15564 0 26155 0 26155 7878 34033.23 10.740
12/31/92 10000 1095 6659 16659 0 27246 0 27246 9300 36546.59 11.071
12/31/93 10000 1116 7775 17775 0 30985 0 30985 11751 42736.56 11.384
12/31/94 10000 1238 9013 19013 0 31648 0 31648 13249 44897.46 11.709
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
1/01/85 10000.00 167.24 0.00 % 59.794 167.240 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>
12/31/85 10000 480 480 10480 0 12633 0 12633 533 13166.34 62.317
12/31/86 10000 524 1004 11004 0 14480 0 14480 1130 15610.52 64.461
12/31/87 10000 575 1579 11579 0 14774 0 14774 1662 16436.01 66.521
12/31/88 10000 657 2236 12236 0 16606 0 16606 2552 19158.79 68.986
12/31/89 10000 772 3008 13008 0 21131 0 21131 4085 25216.50 71.354
12/31/90 10000 876 3884 13884 0 19745 0 19745 4682 24427.36 73.973
12/31/91 10000 912 4796 14796 0 24940 0 24940 6910 31850.24 76.363
12/31/92 10000 956 5752 15752 0 26053 0 26053 8215 34268.16 78.649
12/31/93 10000 1000 6752 16752 0 27891 0 27891 9820 37711.55 80.848
12/31/94 10000 1078 7830 17830 0 27462 0 27462 10737 38199.32 83.174
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
1/01/85 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>
12/31/85 10000 812 812 10812 0 10000 0 10000 810 10810.53 1081.053
12/31/86 10000 747 1559 11559 0 10000 0 10000 1557 11557.79 1155.779
12/31/87 10000 715 2274 12274 0 10000 0 10000 2271 12271.85 1227.185
12/31/88 10000 803 3077 13077 0 10000 0 10000 3075 13075.01 1307.501
12/31/89 10000 981 4058 14058 0 10000 0 10000 4055 14055.93 1405.593
12/31/90 10000 1012 5070 15070 0 10000 0 10000 5067 15067.46 1506.746
12/31/91 10000 919 5989 15989 0 10000 0 10000 5985 15985.76 1598.576
12/31/92 10000 661 6650 16650 0 10000 0 10000 6646 16646.38 1664.638
12/31/93 10000 530 7180 17180 0 10000 0 10000 7175 17175.26 1717.526
12/31/94 10000 546 7726 17726 0 10000 0 10000 7720 17720.95 1772.095
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
1/01/84 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>
12/31/84 10000 956 956 10956 0 10000 0 10000 956 10956.52 1095.652
12/31/85 10000 889 1845 11845 0 10000 0 10000 1844 11844.59 1184.459
12/31/86 10000 819 2664 12664 0 10000 0 10000 2663 12663.31 1266.331
12/31/87 10000 782 3446 13446 0 10000 0 10000 3445 13445.67 1344.567
12/31/88 10000 880 4326 14326 0 10000 0 10000 4325 14325.65 1432.565
12/31/89 10000 1074 5400 15400 0 10000 0 10000 5400 15400.39 1540.039
12/31/90 10000 1108 6508 16508 0 10000 0 10000 6508 16508.66 1650.866
12/31/91 10000 1006 7514 17514 0 10000 0 10000 7514 17514.78 1751.478
12/31/92 10000 724 8238 18238 0 10000 0 10000 8238 18238.59 1823.859
12/31/93 10000 579 8817 18817 0 10000 0 10000 8818 18818.06 1881.806
TOTAL $ 0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/75 1000.00 9.82 5.75 % 101.833 9.260 943
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>
12/31/75 1000 55 55 1055 7 1213 7 1220 56 1276.66 107.192
12/31/76 1000 52 107 1107 25 1496 35 1531 123 1654.49 112.627
12/31/77 1000 57 164 1164 32 1378 65 1443 168 1611.88 119.134
12/31/78 1000 63 227 1227 0 1525 72 1597 251 1848.74 123.414
12/31/79 1000 79 306 1306 22 1731 105 1836 367 2203.13 259.192
12/31/80 1000 101 407 1407 52 1965 176 2141 529 2670.93 276.780
12/31/81 1000 130 537 1537 183 1760 334 2094 600 2694.37 311.848
12/31/82 1000 164 701 1701 172 2075 620 2695 909 3604.32 353.711
12/31/83 1000 165 866 1866 159 2293 865 3158 1173 4331.14 384.648
12/31/84 1000 180 1046 2046 196 2240 1043 3283 1337 4620.06 420.005
12/31/85 1000 196 1242 2242 206 2752 1544 4296 1866 6162.68 456.157
12/31/86 1000 229 1471 2471 1185 2686 2771 5457 2045 7502.25 568.783
12/31/87 1000 301 1772 2772 436 2568 3116 5684 2226 7910.18 627.294
12/31/88 1000 357 2129 3129 490 2635 3691 6326 2639 8965.12 692.822
12/31/89 1000 416 2545 3545 604 3104 4964 8068 3533 11601.37 761.245
12/31/90 1000 456 3001 4001 171 2957 4903 7860 3820 11680.40 804.435
12/31/91 1000 359 3360 4360 312 3560 6236 9796 4984 14780.70 845.578
12/31/92 1000 402 3762 4762 276 3644 6658 10302 5511 15813.47 883.928
12/31/93 1000 420 4182 5182 676 3813 7647 11460 6190 17650.56 942.872
12/31/94 1000 457 4639 5639 576 3599 7796 11395 6283 17678.00 1000.453
TOTAL $ 5780
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/65 1000.00 12.39 5.75 % 80.710 11.680 943
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>
12/31/65 1000 23 23 1023 72 1098 74 1172 24 1196.65 87.924
12/31/66 1000 28 51 1051 92 1004 155 1159 49 1208.42 97.140
12/31/67 1000 34 85 1085 74 1203 261 1464 93 1557.56 104.534
12/31/68 1000 42 127 1127 66 1310 365 1675 146 1821.83 112.251
12/31/69 1000 47 174 1174 110 1066 396 1462 165 1627.25 123.183
12/31/70 1000 50 224 1224 71 1011 448 1459 210 1669.91 133.273
12/31/71 1000 53 277 1277 35 1129 536 1665 289 1954.29 139.692
12/31/72 1000 55 332 1332 67 1236 655 1891 373 2264.06 147.881
12/31/73 1000 62 394 1394 50 968 565 1533 350 1883.37 157.078
12/31/74 1000 95 489 1489 0 747 436 1183 362 1545.42 166.892
12/31/75 1000 91 580 1580 12 961 573 1534 558 2092.28 175.674
12/31/76 1000 85 665 1665 41 1186 749 1935 776 2711.52 184.583
12/31/77 1000 92 757 1757 53 1092 743 1835 806 2641.69 195.247
12/31/78 1000 103 860 1860 0 1209 823 2032 997 3029.88 202.262
12/31/79 1000 129 989 1989 36 1372 973 2345 1265 3610.72 424.790
12/31/80 1000 168 1157 2157 85 1558 1198 2756 1621 4377.38 453.615
12/31/81 1000 213 1370 2370 299 1395 1361 2756 1659 4415.83 511.092
12/31/82 1000 269 1639 2639 281 1645 1975 3620 2287 5907.14 579.700
12/31/83 1000 270 1909 2909 261 1818 2478 4296 2802 7098.36 630.405
12/31/84 1000 295 2204 3204 322 1776 2744 4520 3051 7571.87 688.352
12/31/85 1000 322 2526 3526 337 2181 3803 5984 4116 10100.09 747.601
12/31/86 1000 375 2901 3901 1943 2129 5784 7913 4382 12295.52 932.185
12/31/87 1000 492 3393 4393 715 2036 6294 8330 4634 12964.08 1028.079
12/31/88 1000 585 3978 4978 802 2089 7268 9357 5336 14693.01 1135.472
12/31/89 1000 681 4659 5659 989 2460 9571 12031 6982 19013.58 1247.610
12/31/90 1000 746 5405 6405 280 2344 9402 11746 7397 19143.12 1318.397
12/31/91 1000 589 5994 6994 511 2822 11867 14689 9535 24224.29 1385.829
12/31/92 1000 657 6651 7651 452 2888 12597 15485 10431 25916.90 1448.681
12/31/93 1000 689 7340 8340 1107 3022 14296 17318 11609 28927.74 1545.285
12/31/94 1000 749 8089 9089 944 2852 14440 17292 11680 28972.72 1639.656
TOTAL $ 10107
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/55 1000.00 8.84 5.75 % 113.122 8.330 942
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>
12/31/55 1000 31 31 1031 82 1066 85 1151 30 1181.68 125.444
12/31/56 1000 34 65 1065 94 1067 178 1245 63 1308.82 138.793
12/31/57 1000 38 103 1103 71 857 212 1069 84 1153.33 152.155
12/31/58 1000 38 141 1141 58 1162 349 1511 158 1669.68 162.578
12/31/59 1000 42 183 1183 125 1209 490 1699 207 1906.57 178.351
12/31/60 1000 48 231 1231 107 1162 583 1745 248 1993.05 194.065
12/31/61 1000 50 281 1281 127 1325 794 2119 334 2453.08 209.486
12/31/62 1000 54 335 1335 95 1074 729 1803 325 2128.30 224.268
12/31/63 1000 57 392 1392 108 1233 948 2181 434 2615.29 239.935
12/31/64 1000 64 456 1456 174 1321 1191 2512 528 3040.54 260.320
12/31/65 1000 72 528 1528 232 1540 1628 3168 691 3859.70 283.593
12/31/66 1000 92 620 1620 296 1407 1767 3174 723 3897.68 313.318
12/31/67 1000 109 729 1729 237 1686 2361 4047 976 5023.80 337.168
12/31/68 1000 134 863 1863 212 1836 2833 4669 1207 5876.20 362.058
12/31/69 1000 150 1013 2013 355 1494 2625 4119 1129 5248.53 397.315
12/31/70 1000 163 1176 2176 230 1417 2723 4140 1246 5386.12 429.858
12/31/71 1000 170 1346 2346 114 1583 3156 4739 1564 6303.35 450.561
12/31/72 1000 178 1524 2524 216 1732 3674 5406 1896 7302.47 476.974
12/31/73 1000 198 1722 2722 161 1356 3044 4400 1674 6074.51 506.631
12/31/74 1000 309 2031 3031 0 1048 2351 3399 1585 4984.51 538.284
12/31/75 1000 296 2327 3327 39 1347 3062 4409 2339 6748.31 566.609
12/31/76 1000 276 2603 3603 134 1662 3914 5576 3169 8745.59 595.343
12/31/77 1000 295 2898 3898 171 1531 3777 5308 3212 8520.37 629.739
12/31/78 1000 332 3230 4230 0 1695 4182 5877 3895 9772.46 652.367
12/31/79 1000 415 3645 4645 117 1923 4873 6796 4849 11645.88 1370.104
12/31/80 1000 542 4187 5187 274 2183 5831 8014 6104 14118.71 1463.079
12/31/81 1000 687 4874 5874 966 1955 6152 8107 6135 14242.71 1648.462
12/31/82 1000 867 5741 6741 907 2305 8449 10754 8298 19052.82 1869.757
12/31/83 1000 874 6615 7615 841 2548 10289 12837 10057 22894.92 2033.297
12/31/84 1000 952 7567 8567 1037 2489 11096 13585 10837 24422.22 2220.202
12/31/85 1000 1038 8605 9605 1088 3057 15022 18079 14497 32576.65 2411.299
12/31/86 1000 1209 9814 10814 6266 2984 21346 24330 15327 39657.79 3006.656
12/31/87 1000 1587 11401 12401 2306 2853 22873 25726 16088 41814.10 3315.948
12/31/88 1000 1891 13292 14292 2588 2928 26083 29011 18379 47390.60 3662.334
12/31/89 1000 2200 15492 16492 3191 3448 33979 37427 23899 61326.16 4024.026
CONTINUED ON NEXT PAGE
THE INVESTMENT COMPANY OF AMERICA
============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>
12/31/90 1000 2411 17903 18903 905 3285 33288 36573 25170 61743.96 4252.339
12/31/91 1000 1901 19804 20804 1647 3955 41840 45795 32337 78132.61 4469.829
12/31/92 1000 2123 21927 22927 1458 4048 44280 48328 35263 83591.88 4672.548
12/31/93 1000 2220 24147 25147 3571 4235 49929 54164 39138 93302.97 4984.133
12/31/94 1000 2416 26563 27563 3044 3998 50179 54177 39271 93448.10 5288.517
TOTAL $ 33644
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/85 1000.00 11.67 5.75 % 85.690 11.000 943
ANNUAL INVESTMENTS OF $ 500.00 -- 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>
12/31/85 1000 40 40 1040 42 1158 54 1212 45 1257.31 93.065
12/31/86 1500 64 104 1604 333 1590 407 1997 107 2104.46 159.550
12/31/87 2000 103 207 2207 150 1971 549 2520 195 2715.93 215.379
12/31/88 2500 144 351 2851 197 2506 763 3269 343 3612.19 279.149
12/31/89 3000 189 540 3540 275 3507 1179 4686 598 5284.18 346.731
12/31/90 3500 227 767 4267 85 3790 1209 4999 795 5794.64 399.080
12/31/91 4000 192 959 4959 167 5130 1635 6765 1163 7928.88 453.597
12/31/92 4500 229 1188 5688 157 5732 1830 7562 1424 8986.95 502.345
12/31/93 5000 252 1440 6440 404 6492 2322 8814 1743 10557.05 563.945
12/31/94 5500 286 1726 7226 360 6572 2552 9124 1921 11045.50 625.099
TOTAL $ 2170
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/75 1000.00 9.82 5.75 % 101.833 9.260 943
ANNUAL INVESTMENTS OF $ 500.00 -- 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>
12/31/75 1000 55 55 1055 7 1213 7 1220 56 1276.66 107.192
12/31/76 1500 72 127 1627 35 2077 45 2122 143 2265.05 154.190
12/31/77 2000 93 220 2220 54 2347 95 2442 223 2665.72 197.023
12/31/78 2500 122 342 2842 0 3120 105 3225 372 3597.78 240.172
12/31/79 3000 173 515 3515 49 4076 172 4248 601 4849.19 570.493
12/31/80 3500 248 763 4263 125 5162 332 5494 956 6450.07 668.401
12/31/81 4000 338 1101 5101 473 5044 754 5798 1184 6982.04 808.107
12/31/82 4500 454 1555 6055 474 6504 1514 8018 1952 9970.25 978.435
12/31/83 5000 478 2033 7033 461 7708 2194 9902 2645 12547.15 1114.312
12/31/84 5500 541 2574 8074 590 7990 2738 10728 3158 13886.72 1262.429
12/31/85 6000 610 3184 9184 640 10392 4182 14574 4578 19152.07 1417.622
12/31/86 6500 728 3912 10412 3775 10606 8106 18712 5176 23888.99 1811.144
12/31/87 7000 974 4886 11886 1417 10591 9265 19856 5828 25684.94 2036.871
12/31/88 7500 1183 6069 13569 1619 11351 11141 22492 7152 29644.48 2290.918
12/31/89 8000 1397 7466 15466 2028 13924 15192 29116 9855 38971.47 2557.183
12/31/90 8500 1550 9016 17516 582 13715 15063 28778 10933 39711.42 2734.946
12/31/91 9000 1237 10253 19253 1072 17078 19283 36361 14487 50848.17 2908.934
12/31/92 9500 1394 11647 21147 958 17967 20694 38661 16251 54912.00 3069.424
12/31/93 10000 1471 13118 23118 2366 19301 24036 43337 18487 61824.30 3302.580
12/31/94 10500 1612 14730 25230 2032 18669 24724 43393 19005 62398.78 3531.340
TOTAL $ 18757
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/65 1000.00 12.39 5.75 % 80.710 11.680 943
ANNUAL INVESTMENTS OF $ 500.00 -- 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>
12/31/65 1000 23 23 1023 72 1098 74 1172 24 1196.65 87.924
12/31/66 1500 40 63 1563 128 1435 189 1624 60 1684.31 135.395
12/31/67 2000 60 123 2123 131 2283 361 2644 134 2778.30 186.463
12/31/68 2500 86 209 2709 137 3000 562 3562 238 3800.86 234.187
12/31/69 3000 110 319 3319 258 2825 690 3515 300 3815.79 288.856
12/31/70 3500 132 451 3951 188 3127 845 3972 427 4399.27 351.099
12/31/71 4000 154 605 4605 103 4017 1048 5065 635 5700.14 407.444
12/31/72 4500 174 779 5279 211 4912 1362 6274 875 7149.74 466.998
12/31/73 5000 206 985 5985 168 4216 1240 5456 883 6339.54 528.736
12/31/74 5500 347 1332 6832 0 3620 958 4578 1010 5588.72 603.533
12/31/75 6000 360 1692 7692 47 5263 1279 6542 1662 8204.66 688.888
12/31/76 6500 354 2046 8546 172 7072 1754 8826 2417 11243.51 765.385
12/31/77 7000 396 2442 9442 229 6948 1847 8795 2617 11412.97 843.531
12/31/78 7500 462 2904 10404 0 8214 2045 10259 3371 13630.45 909.910
12/31/79 8000 599 3503 11503 169 9856 2503 12359 4446 16805.16 1977.078
12/31/80 8500 803 4306 12806 407 11725 3285 15010 5934 20944.68 2170.433
12/31/81 9000 1042 5348 14348 1465 10919 4354 15273 6330 21603.94 2500.456
12/31/82 9500 1344 6692 16192 1405 13434 6985 20419 9111 29530.32 2897.971
12/31/83 10000 1375 8067 18067 1325 15365 9218 24583 11468 36051.61 3201.742
12/31/84 10500 1518 9585 20085 1654 15471 10671 26142 12817 38959.12 3541.738
12/31/85 11000 1676 11261 22261 1756 19580 15357 34937 17659 52596.00 3893.116
12/31/86 11500 1970 13231 24731 10209 19582 25876 45458 19151 64609.90 4898.400
12/31/87 12000 2604 15835 27835 3785 19178 28785 47963 20663 68626.50 5442.228
12/31/88 12500 3125 18960 31460 4277 20170 33854 54024 24296 78320.15 6052.562
12/31/89 13000 3657 22617 35617 5306 24317 45291 69608 32360 101968.63 6690.855
12/31/90 13500 4026 26643 40143 1511 23628 44679 68307 34842 103149.24 7103.942
12/31/91 14000 3190 29833 43833 2764 29025 56753 85778 45360 131138.53 7502.204
12/31/92 14500 3575 33408 47908 2456 30200 60541 90741 50076 140817.74 7871.310
12/31/93 15000 3754 37162 52162 6037 32106 69426 101532 56183 157715.42 8424.969
12/31/94 15500 4096 41258 56758 5161 30761 70704 101465 56978 158443.99 8966.836
TOTAL $ 51531
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/55 1000.00 8.84 5.75 % 113.122 8.330 942
ANNUAL INVESTMENTS OF $ 500.00 -- 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>
12/31/55 1000 31 31 1031 82 1066 85 1151 30 1181.68 125.444
12/31/56 1500 47 78 1578 131 1539 216 1755 75 1830.99 194.167
12/31/57 2000 65 143 2143 125 1615 293 1908 120 2028.52 267.615
12/31/58 2500 84 227 2727 125 2827 533 3360 259 3619.12 352.397
12/31/59 3000 102 329 3329 307 3433 866 4299 371 4670.59 436.912
12/31/60 3500 130 459 3959 289 3751 1133 4884 491 5375.16 523.385
12/31/61 4000 145 604 4604 373 4815 1671 6486 709 7195.69 614.491
12/31/62 4500 169 773 5273 298 4284 1621 5905 747 6652.02 700.950
12/31/63 5000 191 964 5964 361 5462 2234 7696 1057 8753.15 803.041
12/31/64 5500 225 1189 6689 614 6358 3012 9370 1354 10724.55 918.198
12/31/65 6000 265 1454 7454 854 7957 4392 12349 1863 14212.19 1044.246
12/31/66 6500 351 1805 8305 1126 7704 5078 12782 2045 14827.95 1191.957
12/31/67 7000 427 2232 9232 931 9792 7042 16834 2885 19719.41 1323.450
12/31/68 7500 539 2771 10271 854 11179 8717 19896 3720 23616.32 1455.103
12/31/69 8000 616 3387 11387 1454 9483 8405 17888 3626 21514.64 1628.663
12/31/70 8500 679 4066 12566 965 9441 8949 18390 4172 22562.07 1800.644
12/31/71 9000 724 4790 13790 488 11068 10487 21555 5400 26955.99 1926.804
12/31/72 9500 772 5562 15062 939 12628 12434 25062 6712 31774.73 2075.423
12/31/73 10000 874 6436 16436 710 10259 10472 20731 6092 26823.60 2237.164
12/31/74 10500 1391 7827 18327 0 8287 8088 16375 6022 22397.14 2418.698
12/31/75 11000 1355 9182 20182 177 11265 10581 21846 9114 30960.87 2599.569
12/31/76 11500 1283 10465 21965 623 14475 13689 28164 12570 40734.78 2772.960
12/31/77 12000 1393 11858 23858 806 13766 13421 27187 12957 40144.80 2967.095
12/31/78 12500 1582 13440 25940 0 15763 14859 30622 15962 46584.47 3109.778
12/31/79 13000 1998 15438 28438 565 18424 17472 35896 20180 56076.55 6597.241
12/31/80 13500 2630 18068 31568 1331 21458 21288 42746 25816 68562.43 7104.915
12/31/81 14000 3362 21430 35430 4722 19640 23613 43253 26393 69646.51 8060.939
12/31/82 14500 4267 25697 40197 4464 23726 33726 57452 36354 93806.36 9205.727
12/31/83 15000 4319 30016 45016 4164 26745 41980 68725 44571 113296.66 10061.870
12/31/84 15500 4729 34745 50245 5153 26599 46202 72801 48568 121369.09 11033.554
12/31/85 16000 5176 39921 55921 5428 33261 63701 96962 65575 162537.04 12030.869
12/31/86 16500 6051 45972 62472 31358 32944 95617 128561 69893 198454.95 15045.864
CONTINUED ON NEXT PAGE
THE INVESTMENT COMPANY OF AMERICA
============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>
12/31/87 17000 7959 53931 70931 11569 31957 103784 135741 74013 209754.26 16633.962
12/31/88 17500 9506 63437 80937 13012 33288 119628 152916 85358 238274.66 18413.807
12/31/89 18000 11082 74519 92519 16078 39773 157314 197087 111878 308965.35 20273.317
12/31/90 18500 12163 86682 105182 4564 38359 154496 192855 118706 311561.22 21457.384
12/31/91 19000 9606 96288 115288 8323 46766 194921 241687 153188 394875.82 22590.150
12/31/92 19500 10739 107027 126527 7376 48361 206873 255234 167754 422988.01 23643.824
12/31/93 20000 11251 118278 138278 18091 51115 234682 285797 186874 472671.65 25249.554
12/31/94 20500 12249 130527 151027 15435 48708 236988 285696 188199 473895.23 26819.198
TOTAL $ 164265
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/90 2000.00 16.17 5.75 % 123.686 15.240 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>
12/31/90 2000 75 75 2075 28 1796 28 1824 73 1897.79 130.702
12/31/91 4000 116 191 4191 101 4431 142 4573 213 4786.23 273.812
12/31/92 6000 181 372 6372 124 6463 270 6733 403 7136.98 398.937
12/31/93 8000 239 611 8611 385 8736 670 9406 664 10070.24 537.940
12/31/94 10000 310 921 10921 390 10025 1024 11049 925 11974.04 677.648
TOTAL $ 1028
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/85 2000.00 11.67 5.75 % 171.380 11.000 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>
12/31/85 2000 80 80 2080 84 2315 108 2423 91 2514.64 186.132
12/31/86 4000 163 243 4243 846 4101 1007 5108 248 5356.67 406.116
12/31/87 6000 289 532 6532 421 5724 1413 7137 499 7636.07 605.557
12/31/88 8000 431 963 8963 589 7808 2045 9853 937 10790.74 833.906
12/31/89 10000 589 1552 11552 854 11416 3280 14696 1707 16403.01 1076.313
12/31/90 12000 718 2270 14270 270 12672 3398 16070 2342 18412.57 1268.083
12/31/91 14000 625 2895 16895 541 17524 4671 22195 3489 25684.50 1469.365
12/31/92 16000 749 3644 19644 514 19864 5296 25160 4335 29495.48 1648.713
12/31/93 18000 835 4479 22479 1341 22758 6891 29649 5377 35026.17 1871.056
12/31/94 20000 955 5434 25434 1204 23261 7711 30972 5996 36968.77 2092.177
TOTAL $ 6664
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/75 2000.00 9.82 5.75 % 203.666 9.260 1886
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>
12/31/75 2000 112 112 2112 15 2426 15 2441 112 2553.31 214.384
12/31/76 4000 181 293 4293 88 5316 108 5424 327 5751.27 391.509
12/31/77 6000 257 550 6550 149 6632 250 6882 557 7439.19 549.829
12/31/78 8000 363 913 8913 0 9429 277 9706 987 10693.70 713.865
12/31/79 10000 534 1447 11447 151 12840 477 13317 1673 14990.62 1763.602
12/31/80 12000 784 2231 14231 397 16717 975 17692 2766 20458.52 2120.054
12/31/81 14000 1088 3319 17319 1528 16655 2347 19002 3537 22539.51 2608.740
12/31/82 16000 1486 4805 20805 1555 21866 4815 26681 5991 32672.46 3206.326
12/31/83 18000 1583 6388 24388 1526 26245 7047 33292 8234 41526.50 3687.966
12/31/84 20000 1805 8193 28193 1966 27480 8865 36345 9961 46306.89 4209.717
12/31/85 22000 2046 10239 32239 2147 36066 13640 49706 14577 64283.12 4758.188
12/31/86 24000 2458 12697 36697 12733 37076 26889 63965 16615 80580.92 6109.243
12/31/87 26000 3300 15997 41997 4797 37272 30836 68108 18868 86976.43 6897.417
12/31/88 28000 4019 20016 48016 5502 40208 37194 77402 23339 100741.37 7785.268
12/31/89 30000 4766 24782 54782 6914 49627 50867 100494 32368 132862.44 8718.008
12/31/90 32000 5298 30080 62080 1988 49122 50474 99596 36115 135711.12 9346.496
12/31/91 34000 4238 34318 68318 3671 61458 64702 126160 48014 174174.60 9964.222
12/31/92 36000 4782 39100 75100 3286 64876 69507 134383 54026 188409.81 10531.571
12/31/93 38000 5056 44156 82156 8132 69905 80916 150821 61630 212451.89 11348.926
12/31/94 40000 5550 49706 89706 6993 67806 83387 151193 63522 214715.29 12151.403
TOTAL $ 63538
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/65 2000.00 12.39 5.75 % 161.421 11.680 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>
12/31/65 2000 45 45 2045 144 2197 149 2346 47 2393.35 175.852
12/31/66 4000 102 147 4147 328 3731 446 4177 143 4320.46 347.304
12/31/67 6000 174 321 6321 378 6726 923 7649 349 7998.16 536.789
12/31/68 8000 264 585 8585 418 9380 1518 10898 661 11559.87 712.253
12/31/69 10000 343 928 10928 812 9169 1967 11136 872 12008.74 909.064
12/31/70 12000 429 1357 13357 610 10484 2482 12966 1291 14257.37 1137.859
12/31/71 14000 509 1866 15866 342 13811 3119 16930 1962 18892.10 1350.400
12/31/72 16000 585 2451 18451 711 17178 4139 21317 2753 24070.92 1572.235
12/31/73 18000 703 3154 21154 572 14929 3832 18761 2830 21591.59 1800.800
12/31/74 20000 1196 4350 24350 0 12986 2960 15946 3318 19264.16 2080.363
12/31/75 22000 1253 5603 27603 164 19128 3972 23100 5534 28634.22 2404.217
12/31/76 24000 1245 6848 30848 604 25917 5519 31436 8115 39551.22 2692.391
12/31/77 26000 1399 8247 34247 811 25606 5900 31506 8862 40368.70 2983.644
12/31/78 28000 1646 9893 37893 0 30437 6532 36969 11493 48462.28 3235.132
12/31/79 30000 2138 12031 42031 605 36708 8065 44773 15255 60028.17 7062.138
12/31/80 32000 2880 14911 46911 1457 43843 10748 54591 20498 75089.87 7781.334
12/31/81 34000 3750 18661 52661 5266 40965 14701 55666 22011 77677.04 8990.398
12/31/82 36000 4843 23504 59504 5066 50566 24008 74574 31890 106464.66 10447.955
12/31/83 38000 4966 28470 66470 4787 58009 31946 89955 40297 130252.90 11567.753
12/31/84 40000 5496 33966 73966 5987 58554 37239 95793 45207 141000.30 12818.209
12/31/85 42000 6072 40038 82038 6367 74286 53898 128184 62469 190653.63 14112.038
12/31/86 44000 7148 47186 91186 37044 74410 92107 166517 67928 234445.35 17774.477
12/31/87 46000 9457 56643 102643 13746 72983 102757 175740 73487 249227.62 19764.284
12/31/88 48000 11358 68001 116001 15546 76895 121131 198026 86650 284676.26 21999.711
12/31/89 50000 13304 81305 131305 19301 92859 162376 255235 115676 370911.04 24337.995
12/31/90 52000 14653 95958 147958 5499 90330 160265 250595 124806 375401.47 25854.096
12/31/91 54000 11617 107575 161575 10064 111092 203734 314826 162686 477512.10 27317.626
12/31/92 56000 13024 120599 176599 8945 115694 217463 333157 179805 512962.80 28673.158
12/31/93 58000 13680 134279 192279 21998 123112 249695 372807 201935 574742.04 30702.032
12/31/94 60000 14930 149209 209209 18813 118057 254545 372602 204997 577599.36 32688.136
TOTAL $ 186385
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/65 10000.00 12.39 5.75 % 807.103 11.680 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>
12/31/65 10000 223 223 10223 719 10985 743 11728 238 11966.70 879.258
12/31/66 10000 286 509 10509 918 10040 1545 11585 499 12084.45 971.419
12/31/67 10000 338 847 10847 735 12026 2609 14635 940 15575.92 1045.364
12/31/68 10000 417 1264 11264 659 13099 3650 16749 1469 18218.65 1122.529
12/31/69 10000 466 1730 11730 1100 10662 3961 14623 1649 16272.59 1231.839
12/31/70 10000 502 2232 12232 714 10113 4480 14593 2106 16699.17 1332.735
12/31/71 10000 526 2758 12758 354 11291 5362 16653 2889 19542.98 1396.925
12/31/72 10000 551 3309 13309 669 12357 6550 18907 3733 22640.64 1478.814
12/31/73 10000 612 3921 13921 499 9677 5645 15322 3511 18833.39 1570.758
12/31/74 10000 960 4881 14881 0 7474 4360 11834 3619 15453.94 1668.892
12/31/75 10000 916 5797 15797 120 9613 5728 15341 5581 20922.46 1756.714
12/31/76 10000 854 6651 16651 414 11856 7490 19346 7768 27114.80 1845.800
12/31/77 10000 916 7567 17567 530 10920 7433 18353 8063 26416.55 1952.443
12/31/78 10000 1028 8595 18595 0 12090 8230 20320 9978 30298.47 2022.595
12/31/79 10000 1287 9882 19882 364 13721 9732 23453 12653 36106.77 4247.855
12/31/80 10000 1680 11562 21562 850 15577 11976 27553 16220 43773.45 4536.109
12/31/81 10000 2132 13694 23694 2994 13947 13609 27556 16601 44157.91 5110.869
12/31/82 10000 2686 16380 26380 2811 16449 19752 36201 22870 59071.09 5796.967
12/31/83 10000 2706 19086 29086 2609 18176 24778 42954 28029 70983.07 6304.003
12/31/84 10000 2951 22037 32037 3215 17756 27444 45200 30518 75718.24 6883.476
12/31/85 10000 3216 25253 35253 3373 21808 38030 59838 41162 101000.07 7475.949
12/31/86 10000 3748 29001 39001 19428 21291 57837 79128 43826 122954.36 9321.786
12/31/87 10000 4919 33920 43920 7150 20355 62940 83295 46344 129639.79 10280.713
12/31/88 10000 5862 39782 49782 8024 20888 72683 93571 53358 146929.08 11354.643
12/31/89 10000 6820 46602 56602 9894 24600 95708 120308 69826 190134.59 12476.023
12/31/90 10000 7472 54074 64074 2804 23438 94022 117460 73970 191430.00 13183.884
12/31/91 10000 5893 59967 69967 5106 28216 118667 146883 95358 242241.18 13858.191
12/31/92 10000 6579 66546 76546 4519 28878 125972 154850 104317 259167.01 14486.697
12/31/93 10000 6886 73432 83432 11072 30218 142961 173179 116096 289275.09 15452.729
12/31/94 10000 7489 80921 90921 9436 28523 144400 172923 116802 289725.08 16396.439
TOTAL $ 101080
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/66 10000.00 14.44 5.75 % 692.521 13.610 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>
12/31/66 10000 224 224 10224 723 8615 683 9298 219 9517.97 765.110
12/31/67 10000 266 490 10490 579 10319 1415 11734 533 12267.92 823.350
12/31/68 10000 328 818 10818 519 11240 2177 13417 932 14349.38 884.127
12/31/69 10000 367 1185 11185 866 9148 2552 11700 1116 12816.63 970.222
12/31/70 10000 395 1580 11580 563 8677 2990 11667 1485 13152.60 1049.689
12/31/71 10000 414 1994 11994 279 9688 3622 13310 2082 15392.46 1100.247
12/31/72 10000 433 2427 12427 527 10602 4501 15103 2729 17832.25 1164.745
12/31/73 10000 484 2911 12911 393 8303 3931 12234 2599 14833.58 1237.163
12/31/74 10000 755 3666 13666 0 6413 3036 9449 2722 12171.87 1314.457
12/31/75 10000 722 4388 14388 94 8248 4000 12248 4230 16478.97 1383.625
12/31/76 10000 672 5060 15060 326 10173 5268 15441 5915 21356.20 1453.792
12/31/77 10000 721 5781 15781 418 9370 5273 14643 6163 20806.27 1537.788
12/31/78 10000 811 6592 16592 0 10374 5838 16212 7651 23863.78 1593.043
12/31/79 10000 1012 7604 17604 287 11773 6934 18707 9731 28438.54 3345.711
12/31/80 10000 1323 8927 18927 669 13366 8603 21969 12508 34477.00 3572.746
12/31/81 10000 1680 10607 20607 2358 11967 9976 21943 12836 34779.79 4025.439
12/31/82 10000 2116 12723 22723 2214 14114 14681 28795 17730 46525.76 4565.825
12/31/83 10000 2132 14855 24855 2055 15596 18548 34144 21763 55907.88 4965.176
12/31/84 10000 2324 17179 27179 2532 15235 20670 35905 23732 59637.40 5421.582
12/31/85 10000 2532 19711 29711 2657 18712 28792 47504 32045 79549.97 5888.229
12/31/86 10000 2952 22663 32663 15302 18269 44420 62689 34152 96841.68 7342.053
12/31/87 10000 3875 26538 36538 5632 17465 48489 65954 36153 102107.27 8097.325
12/31/88 10000 4617 31155 41155 6320 17922 56134 74056 41668 115724.71 8943.177
12/31/89 10000 5371 36526 46526 7793 21108 74072 95180 54574 149754.37 9826.402
12/31/90 10000 5886 42412 52412 2209 20111 72806 92917 57857 150774.68 10383.931
12/31/91 10000 4641 47053 57053 4021 24211 91962 116173 74621 190794.74 10915.031
12/31/92 10000 5182 52235 62235 3560 24778 97681 122459 81666 204125.94 11410.058
12/31/93 10000 5423 57658 67658 8721 25928 110990 136918 90921 227839.73 12170.926
12/31/94 10000 5899 63557 73557 7432 24474 112214 136688 91506 228194.18 12914.215
TOTAL $ 79049
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/67 10000.00 13.20 5.75 % 757.576 12.440 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>
12/31/67 10000 263 263 10263 574 11288 591 11879 268 12147.14 815.244
12/31/68 10000 325 588 10588 514 12295 1274 13569 639 14208.12 875.423
12/31/69 10000 363 951 10951 858 10008 1809 11817 873 12690.45 960.670
12/31/70 10000 391 1342 11342 557 9492 2280 11772 1251 13023.12 1039.355
12/31/71 10000 410 1752 11752 276 10598 2826 13424 1816 15240.90 1089.414
12/31/72 10000 429 2181 12181 522 11598 3625 15223 2433 17656.66 1153.276
12/31/73 10000 478 2659 12659 389 9083 3241 12324 2363 14687.52 1224.981
12/31/74 10000 748 3407 13407 0 7015 2503 9518 2534 12052.00 1301.512
12/31/75 10000 713 4120 14120 93 9023 3313 12336 3980 16316.71 1370.001
12/31/76 10000 666 4786 14786 323 11129 4418 15547 5598 21145.90 1439.476
12/31/77 10000 715 5501 15501 414 10250 4486 14736 5865 20601.37 1522.644
12/31/78 10000 803 6304 16304 0 11348 4967 16315 7313 23628.78 1577.355
12/31/79 10000 1003 7307 17307 284 12879 5942 18821 9337 28158.49 3312.763
12/31/80 10000 1310 8617 18617 663 14621 7470 22091 12046 34137.49 3537.564
12/31/81 10000 1663 10280 20280 2335 13091 8939 22030 12407 34437.29 3985.797
12/31/82 10000 2096 12376 22376 2192 15439 13429 28868 17199 46067.59 4520.863
12/31/83 10000 2111 14487 24487 2034 17061 17141 34202 21155 55357.36 4916.284
12/31/84 10000 2301 16788 26788 2507 16667 19271 35938 23112 59050.13 5368.194
12/31/85 10000 2508 19296 29296 2630 20470 27040 47510 31256 78766.60 5830.244
12/31/86 10000 2924 22220 32220 15151 19985 42550 62535 33353 95888.03 7269.752
12/31/87 10000 3837 26057 36057 5576 19106 46642 65748 35353 101101.75 8017.585
12/31/88 10000 4571 30628 40628 6258 19606 54176 73782 40803 114585.10 8855.108
12/31/89 10000 5319 35947 45947 7716 23091 71687 94778 53501 148279.62 9729.634
12/31/90 10000 5827 41774 51774 2187 22000 70511 92511 56778 149289.85 10281.670
12/31/91 10000 4596 46370 56370 3982 26485 89157 115642 73273 188915.82 10807.541
12/31/92 10000 5131 51501 61501 3525 27106 94775 121881 80234 202115.71 11297.692
12/31/93 10000 5369 56870 66870 8635 28364 107863 136227 89369 225596.01 12051.069
12/31/94 10000 5841 62711 72711 7359 26773 109189 135962 89984 225946.96 12787.038
TOTAL $ 77554
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/68 10000.00 15.81 5.75 % 632.511 14.900 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>
12/31/68 10000 252 252 10252 398 10266 489 10755 268 11023.43 679.201
12/31/69 10000 282 534 10534 666 8355 997 9352 493 9845.95 745.341
12/31/70 10000 303 837 10837 432 7925 1383 9308 796 10104.05 806.389
12/31/71 10000 318 1155 11155 214 8849 1762 10611 1213 11824.77 845.230
12/31/72 10000 333 1488 11488 405 9684 2341 12025 1674 13699.07 894.779
12/31/73 10000 371 1859 11859 302 7584 2145 9729 1666 11395.44 950.412
12/31/74 10000 580 2439 12439 0 5857 1657 7514 1836 9350.66 1009.790
12/31/75 10000 555 2994 12994 73 7533 2204 9737 2922 12659.46 1062.927
12/31/76 10000 518 3512 13512 251 9292 2976 12268 4138 16406.25 1116.831
12/31/77 10000 554 4066 14066 321 8558 3064 11622 4361 15983.76 1181.357
12/31/78 10000 623 4689 14689 0 9475 3392 12867 5465 18332.58 1223.804
12/31/79 10000 779 5468 15468 220 10753 4087 14840 7006 21846.99 2570.234
12/31/80 10000 1015 6483 16483 514 12207 5201 17408 9077 26485.84 2744.647
12/31/81 10000 1290 7773 17773 1811 10930 6404 17334 9384 26718.47 3092.415
12/31/82 10000 1625 9398 19398 1701 12891 9792 22683 13058 35741.91 3507.548
12/31/83 10000 1637 11035 21035 1578 14244 12606 26850 16099 42949.45 3814.338
12/31/84 10000 1785 12820 22820 1945 13915 14275 28190 17624 45814.52 4164.956
12/31/85 10000 1946 14766 24766 2041 17090 20148 37238 23873 61111.69 4523.441
12/31/86 10000 2268 17034 27034 11755 16686 32200 48886 25509 74395.49 5640.295
12/31/87 10000 2976 20010 30010 4326 15952 35411 51363 27077 78440.62 6220.509
12/31/88 10000 3546 23556 33556 4855 16369 41236 57605 31296 88901.77 6870.307
12/31/89 10000 4127 27683 37683 5987 19279 54680 73959 41084 115043.94 7548.815
12/31/90 10000 4522 32205 42205 1697 18368 53813 72181 43646 115827.77 7977.119
12/31/91 10000 3565 35770 45770 3089 22113 68097 90210 56361 146571.90 8385.120
12/31/92 10000 3980 39750 49750 2735 22631 72430 95061 61752 156813.17 8765.409
12/31/93 10000 4166 43916 53916 6699 23681 82534 106215 68815 175030.52 9349.921
12/31/94 10000 4531 48447 58447 5710 22353 83627 105980 69322 175302.80 9920.928
TOTAL $ 59725
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/69 10000.00 17.22 5.75 % 580.720 16.230 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>
12/31/69 10000 241 241 10241 569 7671 512 8183 235 8418.32 637.269
12/31/70 10000 259 500 10500 370 7276 860 8136 503 8639.00 689.465
12/31/71 10000 272 772 10772 183 8124 1146 9270 840 10110.18 722.672
12/31/72 10000 285 1057 11057 346 8891 1607 10498 1214 11712.70 765.036
12/31/73 10000 318 1375 11375 258 6963 1525 8488 1255 9743.10 812.602
12/31/74 10000 497 1872 11872 0 5377 1178 6555 1439 7994.81 863.370
12/31/75 10000 475 2347 12347 62 6916 1578 8494 2329 10823.83 908.802
12/31/76 10000 442 2789 12789 214 8531 2166 10697 3330 14027.32 954.889
12/31/77 10000 475 3264 13264 274 7857 2271 10128 3538 13666.10 1010.059
12/31/78 10000 532 3796 13796 0 8699 2515 11214 4460 15674.35 1046.352
12/31/79 10000 666 4462 14462 188 9872 3057 12929 5750 18679.18 2197.550
12/31/80 10000 869 5331 15331 440 11208 3950 15158 7487 22645.38 2346.671
12/31/81 10000 1103 6434 16434 1549 10035 5030 15065 7779 22844.26 2644.011
12/31/82 10000 1391 7825 17825 1454 11835 7847 19682 10877 30559.30 2998.950
12/31/83 10000 1400 9225 19225 1350 13078 10198 23276 13445 36721.74 3261.256
12/31/84 10000 1527 10752 20752 1663 12776 11638 24414 14757 39171.39 3561.035
12/31/85 10000 1664 12416 22416 1745 15691 16530 32221 20029 52250.47 3867.540
12/31/86 10000 1940 14356 24356 10051 15319 26852 42171 21437 63608.12 4822.450
12/31/87 10000 2545 16901 26901 3699 14646 29627 44273 22793 67066.69 5318.532
12/31/88 10000 3033 19934 29934 4151 15029 34590 49619 26391 76010.98 5874.110
12/31/89 10000 3528 23462 33462 5119 17700 45967 63667 34695 98362.57 6454.237
12/31/90 10000 3865 27327 37327 1451 16864 45262 62126 36906 99032.73 6820.436
12/31/91 10000 3048 30375 40375 2641 20302 57323 77625 47693 125318.96 7169.277
12/31/92 10000 3405 33780 43780 2338 20778 61006 81784 52291 134075.21 7494.422
12/31/93 10000 3561 37341 47341 5728 21742 69602 91344 58307 149651.07 7994.181
12/31/94 10000 3874 41215 51215 4882 20523 70591 91114 58769 149883.87 8482.392
TOTAL $ 50725
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/70 10000.00 14.02 5.75 % 713.267 13.210 9422
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>
12/31/70 10000 291 291 10291 414 8937 418 9355 314 9669.24 771.687
12/31/71 10000 305 596 10596 205 9979 675 10654 661 11315.88 808.855
12/31/72 10000 319 915 10915 387 10920 1134 12054 1055 13109.51 856.271
12/31/73 10000 356 1271 11271 289 8552 1187 9739 1166 10905.01 909.509
12/31/74 10000 556 1827 11827 0 6605 917 7522 1426 8948.24 966.333
12/31/75 10000 531 2358 12358 69 8495 1249 9744 2370 12114.66 1017.184
12/31/76 10000 494 2852 12852 240 10478 1786 12264 3436 15700.19 1068.767
12/31/77 10000 530 3382 13382 307 9650 1955 11605 3690 15295.88 1130.516
12/31/78 10000 596 3978 13978 0 10685 2164 12849 4694 17543.63 1171.137
12/31/79 10000 745 4723 14723 211 12126 2683 14809 6097 20906.80 2459.623
12/31/80 10000 972 5695 15695 492 13766 3583 17349 7997 25346.00 2626.529
12/31/81 10000 1234 6929 16929 1734 12325 4880 17205 8363 25568.59 2959.328
12/31/82 10000 1556 8485 18485 1628 14536 7898 22434 11769 34203.71 3356.596
12/31/83 10000 1567 10052 20052 1510 16063 10437 26500 14601 41101.06 3650.183
12/31/84 10000 1709 11761 21761 1862 15692 12071 27763 16079 43842.84 3985.713
12/31/85 10000 1862 13623 23623 1953 19272 17329 36601 21880 58481.71 4328.772
12/31/86 10000 2170 15793 25793 11249 18816 28909 47725 23468 71193.82 5397.560
12/31/87 10000 2849 18642 28642 4140 17989 32065 50054 25010 75064.86 5952.804
12/31/88 10000 3395 22037 32037 4646 18459 37592 56051 29024 85075.80 6574.637
12/31/89 10000 3949 25986 35986 5729 21740 50125 71865 38227 110092.97 7223.948
12/31/90 10000 4327 30313 40313 1624 20713 49399 70112 40731 110843.02 7633.817
12/31/91 10000 3412 33725 43725 2956 24936 62641 87577 52687 140264.06 8024.260
12/31/92 10000 3810 37535 47535 2617 25521 66729 92250 57814 150064.58 8388.182
12/31/93 10000 3987 41522 51522 6411 26705 76278 102983 64514 167497.95 8947.540
12/31/94 10000 4336 45858 55858 5464 25207 77475 102682 65076 167758.52 9493.974
TOTAL $ 56137
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/71 10000.00 13.29 5.75 % 752.445 12.530 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>
12/31/71 10000 296 296 10296 200 10527 203 10730 303 11033.72 788.686
12/31/72 10000 311 607 10607 378 11520 607 12127 655 12782.61 834.919
12/31/73 10000 346 953 10953 281 9022 767 9789 844 10633.09 886.830
12/31/74 10000 542 1495 11495 0 6968 592 7560 1165 8725.10 942.235
12/31/75 10000 517 2012 12012 68 8962 830 9792 2020 11812.55 991.818
12/31/76 10000 482 2494 12494 234 11053 1264 12317 2991 15308.65 1042.114
12/31/77 10000 517 3011 13011 300 10181 1465 11646 3268 14914.43 1102.323
12/31/78 10000 581 3592 13592 0 11272 1623 12895 4211 17106.13 1141.931
12/31/79 10000 726 4318 14318 206 12792 2063 14855 5530 20385.41 2398.283
12/31/80 10000 947 5265 15265 480 14522 2865 17387 7326 24713.92 2561.028
12/31/81 10000 1204 6469 16469 1690 13002 4195 17197 7733 24930.98 2885.530
12/31/82 10000 1516 7985 17985 1587 15335 7038 22373 10977 33350.77 3272.892
12/31/83 10000 1529 9514 19514 1473 16945 9443 26388 13688 40076.10 3559.156
12/31/84 10000 1666 11180 21180 1815 16554 11054 27608 15141 42749.49 3886.317
12/31/85 10000 1815 12995 22995 1904 20331 16017 36348 20675 57023.28 4220.820
12/31/86 10000 2116 15111 25111 10969 19850 27329 47179 22239 69418.36 5262.954
12/31/87 10000 2777 17888 27888 4037 18977 30444 49421 23771 73192.88 5804.352
12/31/88 10000 3309 21197 31197 4530 19473 35812 55285 27669 82954.20 6410.680
12/31/89 10000 3850 25047 35047 5586 22935 47883 70818 36529 107347.42 7043.794
12/31/90 10000 4219 29266 39266 1583 21851 47221 69072 39006 108078.81 7443.444
12/31/91 10000 3327 32593 42593 2883 26305 59940 86245 50521 136766.12 7824.149
12/31/92 10000 3715 36308 46308 2552 26922 63899 90821 55501 146322.24 8178.996
12/31/93 10000 3888 40196 50196 6251 28172 73156 101328 61992 163320.84 8724.404
12/31/94 10000 4228 44424 54424 5328 26591 74393 100984 62590 163574.90 9257.210
TOTAL $ 54335
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/72 10000.00 14.84 5.75 % 673.854 13.990 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>
12/31/72 10000 266 266 10266 323 10317 329 10646 275 10921.47 713.355
12/31/73 10000 297 563 10563 241 8080 506 8586 498 9084.92 757.708
12/31/74 10000 463 1026 11026 0 6240 391 6631 823 7454.74 805.048
12/31/75 10000 442 1468 11468 58 8026 561 8587 1505 10092.67 847.411
12/31/76 10000 412 1880 11880 200 9899 897 10796 2283 13079.76 890.385
12/31/77 10000 443 2323 12323 256 9117 1084 10201 2541 12742.95 941.829
12/31/78 10000 496 2819 12819 0 10094 1201 11295 3320 14615.55 975.671
12/31/79 10000 621 3440 13440 176 11456 1552 13008 4409 17417.38 2049.104
12/31/80 10000 810 4250 14250 410 13005 2209 15214 5901 21115.69 2188.154
12/31/81 10000 1028 5278 15278 1444 11644 3370 15014 6287 21301.14 2465.410
12/31/82 10000 1296 6574 16574 1356 13733 5760 19493 9002 28495.04 2796.373
12/31/83 10000 1305 7879 17879 1258 15175 7789 22964 11277 34241.21 3040.960
12/31/84 10000 1424 9303 19303 1551 14825 9171 23996 12529 36525.39 3320.490
12/31/85 10000 1551 10854 20854 1627 18208 13350 31558 17162 48720.98 3606.290
12/31/86 10000 1809 12663 22663 9372 17776 23023 40799 18512 59311.41 4496.695
12/31/87 10000 2373 15036 25036 3449 16995 25699 42694 19842 62536.37 4959.268
12/31/88 10000 2829 17865 27865 3871 17439 30277 47716 23160 70876.48 5477.317
12/31/89 10000 3291 21156 31156 4773 20539 40533 61072 30646 91718.19 6018.254
12/31/90 10000 3605 24761 34761 1353 19569 39986 59555 32788 92343.09 6359.717
12/31/91 10000 2843 27604 37604 2463 23558 50780 74338 42515 116853.70 6684.994
12/31/92 10000 3174 30778 40778 2180 24111 54152 78263 46755 125018.47 6988.176
12/31/93 10000 3322 34100 44100 5341 25229 62041 87270 52272 139542.19 7454.177
12/31/94 10000 3613 37713 47713 4552 23814 63123 86937 52822 139759.26 7909.409
TOTAL $ 46254
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/73 10000.00 16.24 5.75 % 615.764 15.310 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>
12/31/73 10000 256 256 10256 208 7383 215 7598 244 7842.04 654.048
12/31/74 10000 399 655 10655 0 5702 166 5868 566 6434.88 694.911
12/31/75 10000 381 1036 11036 50 7334 263 7597 1114 8711.90 731.478
12/31/76 10000 356 1392 11392 173 9046 502 9548 1742 11290.34 768.573
12/31/77 10000 382 1774 11774 221 8331 685 9016 1983 10999.62 812.980
12/31/78 10000 428 2202 12202 0 9224 758 9982 2634 12616.04 842.192
12/31/79 10000 535 2737 12737 152 10468 1024 11492 3542 15034.55 1768.771
12/31/80 10000 699 3436 13436 354 11884 1549 13433 4793 18226.88 1888.796
12/31/81 10000 888 4324 14324 1247 10640 2589 13229 5157 18386.97 2128.121
12/31/82 10000 1118 5442 15442 1170 12549 4594 17143 7453 24596.69 2413.807
12/31/83 10000 1127 6569 16569 1086 13867 6306 20173 9383 29556.75 2624.933
12/31/84 10000 1228 7797 17797 1339 13547 7509 21056 10472 31528.42 2866.220
12/31/85 10000 1339 9136 19136 1404 16638 11022 27660 14395 42055.56 3112.921
12/31/86 10000 1562 10698 20698 8090 16244 19384 35628 15569 51197.13 3881.511
12/31/87 10000 2048 12746 22746 2977 15530 21715 37245 16735 53980.88 4280.799
12/31/88 10000 2441 15187 25187 3341 15936 25655 41591 19588 61179.98 4727.974
12/31/89 10000 2841 18028 28028 4120 18768 34423 53191 25979 79170.38 5194.907
12/31/90 10000 3112 21140 31140 1168 17882 33977 51859 27850 79709.76 5489.653
12/31/91 10000 2454 23594 33594 2126 21527 43184 64711 36156 100867.12 5770.430
12/31/92 10000 2740 26334 36334 1882 22032 46080 68112 39802 107914.91 6032.136
12/31/93 10000 2867 29201 39201 4610 23054 52859 75913 44538 120451.67 6434.384
12/31/94 10000 3118 32319 42319 3929 21761 53832 75593 45046 120639.04 6827.337
TOTAL $ 39647
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/74 10000.00 12.72 5.75 % 786.164 11.990 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>
12/31/74 10000 480 480 10480 0 7280 0 7280 454 7734.69 835.280
12/31/75 10000 459 939 10939 60 9363 60 9423 1048 10471.68 879.234
12/31/76 10000 427 1366 11366 207 11549 287 11836 1734 13570.95 923.822
12/31/77 10000 459 1825 11825 266 10637 532 11169 2052 13221.48 977.197
12/31/78 10000 514 2339 12339 0 11777 589 12366 2798 15164.39 1012.309
12/31/79 10000 644 2983 12983 182 13365 865 14230 3841 18071.44 2126.052
12/31/80 10000 841 3824 13824 425 15173 1446 16619 5289 21908.62 2270.323
12/31/81 10000 1067 4891 14891 1498 13585 2740 16325 5776 22101.02 2557.989
12/31/82 10000 1344 6235 16235 1407 16022 5083 21105 8460 29565.07 2901.381
12/31/83 10000 1355 7590 17590 1306 17704 7095 24799 10728 35527.03 3155.154
12/31/84 10000 1476 9066 19066 1609 17296 8552 25848 12049 37897.00 3445.182
12/31/85 10000 1610 10676 20676 1688 21242 12667 33909 16641 50550.58 3741.716
12/31/86 10000 1876 12552 22552 9724 20739 22731 43470 18068 61538.70 4665.557
12/31/87 10000 2462 15014 25014 3579 19827 25559 45386 19498 64884.77 5145.501
12/31/88 10000 2935 17949 27949 4016 20346 30279 50625 22913 73538.06 5683.003
12/31/89 10000 3414 21363 31363 4952 23962 40720 64682 30480 95162.45 6244.255
12/31/90 10000 3740 25103 35103 1404 22830 40215 63045 32765 95810.80 6598.540
12/31/91 10000 2949 28052 38052 2555 27484 51155 78639 42602 121241.82 6936.031
12/31/92 10000 3294 31346 41346 2262 28129 54618 82747 46966 129713.22 7250.599
12/31/93 10000 3447 34793 44793 5542 29434 62730 92164 52618 144782.30 7734.097
12/31/94 10000 3749 38542 48542 4723 27783 63945 91728 53279 145007.51 8206.424
TOTAL $ 47405
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/75 10000.00 9.82 5.75 % 1018.330 9.260 9430
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>
12/31/75 10000 559 559 10559 73 12128 73 12201 565 12766.51 1071.915
12/31/76 10000 522 1081 11081 253 14959 350 15309 1235 16544.97 1126.274
12/31/77 10000 558 1639 11639 324 13778 649 14427 1691 16118.90 1191.345
12/31/78 10000 627 2266 12266 0 15255 718 15973 2514 18487.58 1234.151
12/31/79 10000 785 3051 13051 222 17312 1054 18366 3665 22031.70 2591.965
12/31/80 10000 1024 4075 14075 518 19654 1763 21417 5292 26709.78 2767.853
12/31/81 10000 1300 5375 15375 1827 17597 3340 20937 6007 26944.36 3118.560
12/31/82 10000 1639 7014 17014 1715 20754 6197 26951 9093 36044.10 3537.203
12/31/83 10000 1652 8666 18666 1592 22933 8649 31582 11730 43312.56 3846.586
12/31/84 10000 1801 10467 20467 1962 22403 10426 32829 13372 46201.87 4200.170
12/31/85 10000 1963 12430 22430 2058 27515 15443 42958 18670 61628.38 4561.686
12/31/86 10000 2288 14718 24718 11855 26864 27713 54577 20447 75024.50 5687.983
12/31/87 10000 3002 17720 27720 4363 25682 31160 56842 22261 79103.83 6273.103
12/31/88 10000 3576 21296 31296 4896 26354 36915 63269 26384 89653.44 6928.396
12/31/89 10000 4161 25457 35457 6037 31039 49643 80682 35334 116016.63 7612.640
12/31/90 10000 4560 30017 40017 1711 29572 49028 78600 38207 116807.08 8044.565
12/31/91 10000 3597 33614 43614 3115 35601 62365 97966 49845 147811.16 8456.016
12/31/92 10000 4014 37628 47628 2758 36436 66587 103023 55115 158138.99 8839.519
12/31/93 10000 4200 41828 51828 6756 38126 76476 114602 61908 176510.39 9428.974
12/31/94 10000 4569 46397 56397 5758 35988 77958 113946 62838 176784.96 10004.808
TOTAL $ 57793
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/76 10000.00 12.64 5.75 % 791.139 11.910 9422
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>
12/31/76 10000 385 385 10385 187 11622 192 11814 397 12211.18 831.258
12/31/77 10000 413 798 10798 239 10704 417 11121 775 11896.73 879.285
12/31/78 10000 463 1261 11261 0 11851 462 12313 1331 13644.97 910.879
12/31/79 10000 579 1840 11840 164 13449 701 14150 2110 16260.72 1913.026
12/31/80 10000 757 2597 12597 383 15269 1213 16482 3231 19713.43 2042.842
12/31/81 10000 960 3557 13557 1348 13671 2386 16057 3829 19886.57 2301.686
12/31/82 10000 1210 4767 14767 1266 16123 4481 20604 5998 26602.73 2610.670
12/31/83 10000 1218 5985 15985 1175 17816 6281 24097 7870 31967.30 2839.014
12/31/84 10000 1329 7314 17314 1448 17405 7595 25000 9099 34099.79 3099.981
12/31/85 10000 1448 8762 18762 1519 21377 11275 32652 12833 45485.51 3366.803
12/31/86 10000 1688 10450 20450 8749 20870 20334 41204 14168 55372.65 4198.078
12/31/87 10000 2216 12666 22666 3220 19953 22883 42836 15547 58383.44 4629.932
12/31/88 10000 2640 15306 25306 3614 20475 27128 47603 18566 66169.71 5113.579
12/31/89 10000 3072 18378 28378 4456 24114 36501 60615 25012 85627.36 5618.593
12/31/90 10000 3366 21744 31744 1263 22975 36053 59028 27182 86210.74 5937.379
12/31/91 10000 2653 24397 34397 2299 27658 45870 73528 35565 109093.62 6241.054
12/31/92 10000 2963 27360 37360 2035 28307 48982 77289 39427 116716.22 6524.104
12/31/93 10000 3102 30462 40462 4986 29620 56274 85894 44381 130275.40 6959.156
12/31/94 10000 3373 33835 43835 4250 27959 57377 85336 45142 130478.07 7384.158
TOTAL $ 42601
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/77 10000.00 15.59 5.75 % 641.437 14.690 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>
12/31/77 10000 319 319 10319 184 8679 186 8865 315 9180.06 678.497
12/31/78 10000 357 676 10676 0 9609 206 9815 714 10529.11 702.878
12/31/79 10000 446 1122 11122 127 10904 370 11274 1273 12547.59 1476.187
12/31/80 10000 584 1706 11706 295 12380 742 13122 2089 15211.87 1576.360
12/31/81 10000 741 2447 12447 1040 11084 1668 12752 2593 15345.48 1776.097
12/31/82 10000 933 3380 13380 977 13072 3253 16325 4203 20528.00 2014.524
12/31/83 10000 940 4320 14320 907 14445 4620 19065 5602 24667.57 2190.726
12/31/84 10000 1025 5345 15345 1117 14112 5639 19751 6562 26313.09 2392.099
12/31/85 10000 1117 6462 16462 1172 17332 8428 25760 9338 35098.84 2597.990
12/31/86 10000 1303 7765 17765 6751 16921 15425 32346 10382 42728.27 3239.444
12/31/87 10000 1709 9474 19474 2485 16177 17404 33581 11470 45051.55 3572.684
12/31/88 10000 2037 11511 21511 2788 16600 20673 37273 13786 51059.80 3945.889
12/31/89 10000 2371 13882 23882 3438 19551 27859 47410 18664 66074.28 4335.583
12/31/90 10000 2597 16479 26479 975 18627 27528 46155 20369 66524.45 4581.574
12/31/91 10000 2048 18527 28527 1774 22425 35044 57469 26713 84182.02 4815.905
12/31/92 10000 2287 20814 30814 1571 22951 37437 60388 29675 90063.98 5034.320
12/31/93 10000 2393 23207 33207 3848 24015 43047 67062 33464 100526.91 5370.027
12/31/94 10000 2603 25810 35810 3279 22668 43919 66587 34096 100683.25 5697.977
TOTAL $ 32728
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/78 10000.00 14.36 5.75 % 696.379 13.530 9422
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>
12/31/78 10000 367 367 10367 0 10432 0 10432 374 10806.60 721.402
12/31/79 10000 459 826 10826 130 11838 140 11978 900 12878.25 1515.088
12/31/80 10000 598 1424 11424 303 13440 490 13930 1682 15612.73 1617.899
12/31/81 10000 761 2185 12185 1068 12033 1468 13501 2248 15749.86 1822.900
12/31/82 10000 958 3143 13143 1003 14192 3051 17243 3825 21068.97 2067.612
12/31/83 10000 966 4109 14109 930 15682 4425 20107 5210 25317.63 2248.457
12/31/84 10000 1053 5162 15162 1147 15320 5478 20798 6208 27006.51 2455.137
12/31/85 10000 1147 6309 16309 1203 18816 8270 27086 8937 36023.82 2666.456
12/31/86 10000 1337 7646 17646 6929 18370 15460 33830 10024 43854.28 3324.813
12/31/87 10000 1755 9401 19401 2550 17563 17507 35070 11168 46238.79 3666.835
12/31/88 10000 2091 11492 21492 2862 18022 20853 38875 13530 52405.37 4049.874
12/31/89 10000 2431 13923 23923 3529 21226 28164 49390 18425 67815.53 4449.838
12/31/90 10000 2665 16588 26588 1000 20223 27845 48068 20209 68277.57 4702.312
12/31/91 10000 2102 18690 28690 1821 24345 35475 59820 26580 86400.42 4942.816
12/31/92 10000 2347 21037 31037 1612 24916 37920 62836 29601 92437.36 5166.985
12/31/93 10000 2455 23492 33492 3949 26072 43654 69726 33450 103176.03 5511.540
12/31/94 10000 2671 26163 36163 3366 24610 44579 69189 34147 103336.55 5848.135
TOTAL $ 33402
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/79 10000.00 15.89 5.75 % 629.327 14.980 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>
12/31/79 10000 401 401 10401 113 10699 122 10821 413 11234.56 1321.713
12/31/80 10000 522 923 10923 264 12146 427 12573 1047 13620.04 1411.403
12/31/81 10000 664 1587 11587 932 10875 1281 12156 1583 13739.65 1590.237
12/31/82 10000 837 2424 12424 875 12826 2662 15488 2891 18379.85 1803.714
12/31/83 10000 842 3266 13266 812 14172 3860 18032 4054 22086.24 1961.478
12/31/84 10000 918 4184 14184 1000 13845 4778 18623 4936 23559.57 2141.779
12/31/85 10000 1001 5185 15185 1049 17004 7214 24218 7207 31425.98 2326.127
12/31/86 10000 1166 6351 16351 6045 16602 13487 30089 8168 38257.00 2900.455
12/31/87 10000 1531 7882 17882 2225 15872 15273 31145 9192 40337.16 3198.823
12/31/88 10000 1824 9706 19706 2497 16287 18191 34478 11238 45716.68 3532.974
12/31/89 10000 2122 11828 21828 3079 19182 24569 43751 15408 59159.99 3881.889
12/31/90 10000 2325 14153 24153 873 18276 24291 42567 16996 59563.06 4102.139
12/31/91 10000 1834 15987 25987 1589 22001 30947 52948 22424 75372.87 4311.949
12/31/92 10000 2046 18033 28033 1406 22517 33080 55597 25042 80639.32 4507.508
12/31/93 10000 2143 20176 30176 3445 23562 38082 61644 28363 90007.39 4808.087
12/31/94 10000 2330 22506 32506 2936 22240 38889 61129 29018 90147.39 5101.720
TOTAL $ 29140
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/80 10000.00 9.02 5.75 % 1108.647 8.500 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>
12/31/80 10000 439 439 10439 222 10698 242 10940 484 11424.43 1183.879
12/31/81 10000 556 995 10995 781 9579 970 10549 975 11524.77 1333.885
12/31/82 10000 701 1696 11696 734 11297 2110 13407 2009 15416.96 1512.950
12/31/83 10000 706 2402 12402 681 12483 3102 15585 2940 18525.85 1645.280
12/31/84 10000 770 3172 13172 839 12195 3876 16071 3690 19761.69 1796.517
12/31/85 10000 840 4012 14012 880 14978 5888 20866 5493 26359.98 1951.146
12/31/86 10000 980 4992 14992 5070 14623 11154 25777 6312 32089.83 2432.891
12/31/87 10000 1284 6276 16276 1866 13980 12659 26639 7195 33834.66 2683.161
12/31/88 10000 1530 7806 17806 2094 14346 15103 29449 8898 38347.00 2963.447
12/31/89 10000 1780 9586 19586 2582 16896 20425 37321 12302 49623.21 3256.116
12/31/90 10000 1950 11536 21536 732 16098 20200 36298 13663 49961.30 3440.861
12/31/91 10000 1538 13074 23074 1333 19379 25748 45127 18095 63222.50 3616.848
12/31/92 10000 1717 14791 24791 1180 19834 27532 47366 20274 67640.00 3780.883
12/31/93 10000 1797 16588 26588 2890 20754 31718 52472 23025 75497.91 4033.008
12/31/94 10000 1955 18543 28543 2463 19590 32407 51997 23618 75615.34 4279.306
TOTAL $ 24347
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/81 10000.00 10.24 5.75 % 976.563 9.650 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>
12/31/81 10000 459 459 10459 645 8438 622 9060 446 9506.58 1100.299
12/31/82 10000 579 1038 11038 605 9951 1530 11481 1236 12717.17 1248.005
12/31/83 10000 583 1621 11621 562 10996 2326 13322 1959 15281.63 1357.161
12/31/84 10000 635 2256 12256 692 10742 2969 13711 2590 16301.03 1481.912
12/31/85 10000 693 2949 12949 726 13193 4578 17771 3972 21743.86 1609.464
12/31/86 10000 807 3756 13756 4183 12881 8928 21809 4661 26470.30 2006.846
12/31/87 10000 1060 4816 14816 1539 12314 10181 22495 5414 27909.56 2213.288
12/31/88 10000 1261 6077 16077 1727 12637 12190 24827 6804 31631.69 2444.489
12/31/89 10000 1468 7545 17545 2130 14883 16533 31416 9517 40933.21 2685.906
12/31/90 10000 1608 9153 19153 604 14180 16362 30542 10670 41212.10 2838.299
12/31/91 10000 1269 10422 20422 1099 17070 20877 37947 14204 52151.00 2983.467
12/31/92 10000 1416 11838 21838 973 17471 22340 39811 15983 55794.90 3118.776
12/31/93 10000 1482 13320 23320 2384 18281 25776 44057 18219 62276.72 3326.748
12/31/94 10000 1612 14932 24932 2032 17256 26366 43622 18751 62373.60 3529.915
TOTAL $ 19901
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/82 10000.00 9.17 5.75 % 1090.513 8.640 9422
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>
12/31/82 10000 573 573 10573 600 11112 790 11902 702 12604.07 1236.906
12/31/83 10000 577 1150 11150 557 12279 1502 13781 1364 15145.75 1345.093
12/31/84 10000 630 1780 11780 686 11996 2159 14155 2001 16156.11 1468.737
12/31/85 10000 686 2466 12466 720 14733 3574 18307 3243 21550.53 1595.154
12/31/86 10000 800 3266 13266 4145 14384 7908 22292 3942 26234.95 1989.003
12/31/87 10000 1050 4316 14316 1526 13751 9192 22943 4718 27661.42 2193.610
12/31/88 10000 1250 5566 15566 1712 14111 11159 25270 6080 31350.46 2422.756
12/31/89 10000 1456 7022 17022 2111 16619 15299 31918 8651 40569.28 2662.026
12/31/90 10000 1595 8617 18617 598 15834 15182 31016 9829 40845.67 2813.063
12/31/91 10000 1257 9874 19874 1089 19062 19445 38507 13180 51687.35 2956.942
12/31/92 10000 1403 11277 21277 964 19509 20866 40375 14923 55298.85 3091.048
12/31/93 10000 1469 12746 22746 2362 20414 24212 44626 17097 61723.02 3297.170
12/31/94 10000 1598 14344 24344 2013 19269 24872 44141 17678 61819.03 3498.530
TOTAL $ 19083
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/83 10000.00 10.81 5.75 % 925.069 10.190 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>
12/31/83 10000 432 432 10432 416 10416 471 10887 440 11327.35 1005.981
12/31/84 10000 471 903 10903 513 10176 977 11153 929 12082.97 1098.452
12/31/85 10000 513 1416 11416 538 12498 1890 14388 1729 16117.40 1192.998
12/31/86 10000 598 2014 12014 3100 12202 5150 17352 2268 19620.84 1487.554
12/31/87 10000 786 2800 12800 1141 11665 6143 17808 2879 20687.69 1640.578
12/31/88 10000 935 3735 13735 1280 11970 7596 19566 3880 23446.66 1811.952
12/31/89 10000 1088 4823 14823 1579 14098 10559 24657 5684 30341.30 1990.899
12/31/90 10000 1193 6016 16016 448 13432 10513 23945 6603 30548.02 2103.858
12/31/91 10000 940 6956 16956 815 16170 13530 29700 8956 38656.37 2211.463
12/31/92 10000 1050 8006 18006 721 16549 14569 31118 10239 41357.37 2311.759
12/31/93 10000 1098 9104 19104 1767 17317 17023 34340 11821 46161.95 2465.916
12/31/94 10000 1194 10298 20298 1506 16346 17578 33924 12309 46233.75 2616.511
TOTAL $ 13824
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/84 10000.00 11.95 5.75 % 836.820 11.260 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>
12/31/84 10000 390 390 10390 427 9205 430 9635 416 10051.15 913.741
12/31/85 10000 426 816 10816 448 11305 1102 12407 1000 13407.16 992.388
12/31/86 10000 498 1314 11314 2579 11038 3825 14863 1458 16321.45 1237.411
12/31/87 10000 654 1968 11968 949 10552 4672 15224 1984 17208.92 1364.704
12/31/88 10000 778 2746 12746 1065 10828 5868 16696 2807 19503.98 1507.263
12/31/89 10000 905 3651 13651 1313 12753 8253 21006 4233 25239.27 1656.120
12/31/90 10000 992 4643 14643 372 12151 8240 20391 5020 25411.23 1750.085
12/31/91 10000 783 5426 15426 678 14628 10646 25274 6882 32156.12 1839.595
12/31/92 10000 873 6299 16299 600 14971 11496 26467 7935 34402.94 1923.026
12/31/93 10000 915 7214 17214 1470 15665 13509 29174 9225 38399.61 2051.261
12/31/94 10000 994 8208 18208 1253 14787 14007 28794 9665 38459.34 2176.533
TOTAL $ 11154
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/85 10000.00 11.67 5.75 % 856.898 11.000 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>
12/31/85 10000 402 402 10402 420 11577 538 12115 458 12573.12 930.653
12/31/86 10000 466 868 10868 2419 11302 3103 14405 901 15306.14 1160.435
12/31/87 10000 613 1481 11481 890 10805 3919 14724 1414 16138.38 1279.808
12/31/88 10000 730 2211 12211 999 11088 5029 16117 2173 18290.69 1413.500
12/31/89 10000 848 3059 13059 1232 13059 7181 20240 3429 23669.18 1553.096
12/31/90 10000 930 3989 13989 349 12442 7195 19637 4193 23830.43 1641.214
12/31/91 10000 734 4723 14723 636 14979 9343 24322 5833 30155.73 1725.156
12/31/92 10000 819 5542 15542 563 15330 10125 25455 6807 32262.75 1803.396
12/31/93 10000 857 6399 16399 1378 16041 11983 28024 7986 36010.80 1923.654
12/31/94 10000 933 7332 17332 1175 15141 12488 27629 8437 36066.82 2041.133
TOTAL $ 10061
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/86 10000.00 14.33 5.75 % 697.837 13.510 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>
12/31/86 10000 350 350 10350 1813 9204 1933 11137 340 11477.08 870.135
12/31/87 10000 459 809 10809 667 8800 2562 11362 739 12101.14 959.646
12/31/88 10000 548 1357 11357 749 9030 3384 12414 1300 13714.98 1059.890
12/31/89 10000 637 1994 11994 924 10635 4929 15564 2183 17747.97 1164.565
12/31/90 10000 697 2691 12691 262 10133 4961 15094 2774 17868.86 1230.638
12/31/91 10000 549 3240 13240 477 12198 6484 18682 3929 22611.80 1293.581
12/31/92 10000 614 3854 13854 422 12484 7058 19542 4649 24191.75 1352.250
12/31/93 10000 643 4497 14497 1034 13064 8426 21490 5512 27002.18 1442.424
12/31/94 10000 700 5197 15197 881 12331 8836 21167 5877 27044.20 1530.515
TOTAL $ 7229
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/87 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>
12/31/87 10000 377 377 10377 548 9014 586 9600 340 9940.80 788.327
12/31/88 10000 450 827 10827 615 9249 1222 10471 795 11266.56 870.677
12/31/89 10000 524 1351 11351 759 10893 2215 13108 1471 14579.56 956.664
12/31/90 10000 573 1924 11924 215 10379 2327 12706 1972 14678.86 1010.941
12/31/91 10000 452 2376 12376 392 12495 3222 15717 2858 18575.09 1062.648
12/31/92 10000 505 2881 12881 347 12788 3644 16432 3440 19872.96 1110.842
12/31/93 10000 528 3409 13409 849 13381 4668 18049 4132 22181.63 1184.916
12/31/94 10000 574 3983 13983 724 12630 5131 17761 4455 22216.14 1257.280
TOTAL $ 4449
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/88 10000.00 13.38 5.75 % 747.384 12.610 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>
12/31/88 10000 426 426 10426 583 9671 589 10260 421 10681.41 825.457
12/31/89 10000 496 922 10922 719 11390 1428 12818 1004 13822.34 906.978
12/31/90 10000 543 1465 11465 204 10852 1566 12418 1498 13916.53 958.439
12/31/91 10000 428 1893 11893 371 13064 2284 15348 2262 17610.37 1007.458
12/31/92 10000 479 2372 12372 329 13371 2666 16037 2803 18840.82 1053.148
12/31/93 10000 501 2873 12873 805 13991 3600 17591 3438 21029.62 1123.377
12/31/94 10000 545 3418 13418 686 13206 4086 17292 3770 21062.36 1191.984
TOTAL $ 3697
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/89 10000.00 13.73 5.75 % 728.332 12.940 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>
12/31/89 10000 437 437 10437 635 11100 648 11748 448 12196.01 800.263
12/31/90 10000 479 916 10916 180 10575 800 11375 904 12279.10 845.668
12/31/91 10000 378 1294 11294 327 12731 1314 14045 1493 15538.34 888.921
12/31/92 10000 422 1716 11716 290 13030 1635 14665 1959 16624.03 929.236
12/31/93 10000 442 2158 12158 710 13634 2425 16059 2496 18555.28 991.201
12/31/94 10000 480 2638 12638 605 12870 2896 15766 2818 18584.14 1051.734
TOTAL $ 2747
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/90 10000.00 16.17 5.75 % 618.429 15.240 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>
12/31/90 10000 371 371 10371 139 8980 141 9121 368 9489.04 653.515
12/31/91 10000 292 663 10663 253 10810 441 11251 756 12007.71 686.940
12/31/92 10000 327 990 10990 224 11064 675 11739 1107 12846.72 718.095
12/31/93 10000 342 1332 11332 549 11577 1259 12836 1503 14339.15 765.980
12/31/94 10000 371 1703 11703 468 10928 1657 12585 1776 14361.45 812.759
TOTAL $ 1633
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/91 10000.00 15.41 5.75 % 648.929 14.520 9422
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>
12/31/91 10000 289 289 10289 251 11343 270 11613 310 11923.46 682.120
12/31/92 10000 324 613 10613 222 11609 499 12108 648 12756.59 713.057
12/31/93 10000 339 952 10952 545 12148 1070 13218 1020 14238.54 760.606
12/31/94 10000 369 1321 11321 464 11467 1476 12943 1317 14260.68 807.056
TOTAL $ 1482
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/92 10000.00 18.55 5.75 % 539.084 17.480 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>
12/31/92 10000 256 256 10256 176 9644 176 9820 261 10081.62 563.534
12/31/93 10000 268 524 10524 431 10092 618 10710 542 11252.82 601.112
12/31/94 10000 292 816 10816 367 9526 951 10477 793 11270.31 637.822
TOTAL $ 974
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/93 10000.00 18.98 5.75 % 526.870 17.890 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>
12/31/93 10000 250 250 10250 403 9863 405 10268 252 10520.71 562.004
12/31/94 10000 273 523 10523 343 9310 727 10037 500 10537.12 596.328
TOTAL $ 746
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/94 10000.00 19.86 5.75 % 503.525 18.720 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>
12/31/94 10000 244 244 10244 307 8897 308 9205 235 9440.66 534.276
TOTAL $ 307
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/34 10000.00 23.00 5.75 % 434.783 21.680 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>
12/31/34 10000 0 0 10000 0 11822 0 11822 0 11821.75 434.783
12/31/35 10000 0 0 10000 0 21643 0 21643 0 21643.50 434.783
12/31/36 10000 398 398 10398 4009 26030 5011 31041 518 31559.81 527.139
12/31/37 10000 1006 1404 11404 280 15248 3094 18342 1082 19424.15 553.868
12/31/38 10000 181 1585 11585 1011 18330 4918 23248 1528 24776.08 1175.336
12/31/39 10000 536 2121 12121 665 17504 5478 22982 2004 24986.32 1241.248
12/31/40 10000 891 3012 13012 375 16165 5441 21606 2777 24383.85 1311.665
12/31/41 10000 1262 4274 14274 79 14122 4831 18953 3637 22590.26 1391.026
12/31/42 10000 1186 5460 15460 239 15513 5577 21090 5286 26376.48 1478.502
12/31/43 10000 1101 6561 16561 403 19704 7495 27199 7820 35019.10 1545.415
12/31/44 10000 1242 7803 17803 1521 22704 10199 32903 10290 43193.15 1654.276
12/31/45 10000 1191 8994 18994 4050 28226 16783 45009 14082 59091.06 1820.427
12/31/46 10000 1775 10769 20769 3790 24991 18568 43559 14132 57691.90 2007.373
12/31/47 10000 2409 13178 23178 2722 23017 19803 42820 15397 58217.06 2199.360
12/31/48 10000 2685 15863 25863 1808 21374 20198 41572 16858 58430.45 2377.154
12/31/49 10000 2661 18524 28524 2209 21565 22594 44159 19782 63941.28 6445.694
12/31/50 10000 3152 21676 31676 2252 23957 27388 51345 25272 76617.61 6952.596
12/31/51 10000 3391 25067 35067 3861 25935 33553 59488 30785 90273.75 7566.953
12/31/52 10000 3535 28602 38602 4438 26783 39134 65917 35375 101292.75 8221.814
12/31/53 10000 3927 32529 42529 2795 25130 39486 64616 37130 101746.92 8801.637
12/31/54 10000 4104 36633 46633 7399 36217 64470 100687 58171 158858.91 19070.697
12/31/55 10000 5124 41757 51757 13776 40957 87202 128159 71056 199215.38 21148.130
12/31/56 10000 5608 47365 57365 15840 41000 103036 144036 76611 220647.90 23398.505
12/31/57 10000 6228 53593 63593 12003 32957 94330 127287 67145 194432.38 25650.710
12/31/58 10000 6546 60139 70139 9725 44652 138362 183014 98464 281478.61 27407.849
12/31/59 10000 7013 67152 77152 21105 46478 165400 211878 109540 321418.78 30067.239
12/31/60 10000 8139 75291 85291 18096 44652 177750 222402 113596 335998.27 32716.482
12/31/61 10000 8383 83674 93674 21434 50913 224482 275395 138157 413552.40 35316.174
12/31/62 10000 9122 92796 102796 16089 41261 196281 237542 121257 358799.99 37808.218
12/31/63 10000 9620 102416 112416 18165 47391 244185 291576 149323 440899.79 40449.522
12/31/64 10000 10708 113124 123124 29357 50783 291232 342015 170576 512591.33 43886.244
12/31/65 10000 12112 125236 135236 39117 59174 379736 438910 211779 650689.50 47809.662
12/31/66 10000 15516 140752 150752 49899 54087 394216 448303 208789 657092.64 52820.952
12/31/67 10000 18359 159111 169111 39988 64783 513391 578174 268767 846941.03 56841.680
12/31/68 10000 22628 181739 191739 35810 70565 603148 673713 316926 990639.52 61037.555
CONTINUED ON NEXT PAGE
THE INVESTMENT COMPANY OF AMERICA
============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>
12/31/69 10000 25318 207057 217057 59817 57435 544781 602216 282607 884823.74 66981.358
12/31/70 10000 27305 234362 244362 38849 54478 556026 610504 297514 908018.36 72467.547
12/31/71 10000 28565 262927 272927 19232 60826 640367 701193 361458 1062651.12 75957.907
12/31/72 10000 29917 292844 302844 36388 66565 737878 804443 426643 1231086.88 80410.639
12/31/73 10000 33353 326197 336197 27109 52130 605913 658043 366024 1024067.48 85410.132
12/31/74 10000 52187 378384 388384 0 40261 467953 508214 332095 840309.93 90746.213
12/31/75 10000 49800 428184 438184 6516 51783 608419 660202 477458 1137660.45 95521.448
12/31/76 10000 46441 474625 484625 22533 63870 773566 837436 636933 1474369.34 100365.510
12/31/77 10000 49838 524463 534463 28845 58826 741542 800368 636033 1436401.94 106164.223
12/31/78 10000 55969 580432 590432 0 65130 821012 886142 761341 1647483.16 109978.849
12/31/79 10000 69960 650392 660392 19796 73913 953049 1026962 936347 1963309.96 230977.642
12/31/80 10000 91302 741694 751694 46196 83913 1132420 1216333 1163854 2380187.12 246651.515
12/31/81 10000 115901 857595 867595 162790 75130 1170873 1246003 1155088 2401091.37 277904.094
12/31/82 10000 146105 1003700 1013700 152847 88609 1582155 1670764 1541232 3211996.96 315210.693
12/31/83 10000 147156 1150856 1160856 141845 97913 1908808 2006721 1852990 3859711.97 342780.814
12/31/84 10000 160449 1311305 1321305 174818 95652 2040832 2136484 1980702 4117186.57 374289.688
12/31/85 10000 174890 1486195 1496195 183402 117478 2741594 2859072 2632817 5491889.85 406505.540
12/31/86 10000 203830 1690025 1700025 1056395 114696 3802682 3917378 2768278 6685656.94 506873.157
12/31/87 10000 267489 1957514 1967514 388793 109652 4051233 4160885 2888292 7049177.79 559014.892
12/31/88 10000 318747 2276261 2286261 436300 112522 4597443 4709965 3279319 7989284.68 617409.944
12/31/89 10000 370835 2647096 2657096 537996 132522 5964134 6096656 4241933 10338589.06 678385.109
12/31/90 10000 406318 3053414 3063414 152486 126261 5836538 5962799 4446228 10409027.09 716875.144
12/31/91 10000 320422 3373836 3383836 277618 152000 7324213 7476213 5695678 13171891.66 753540.713
12/31/92 10000 357779 3731615 3741615 245747 155565 7741890 7897455 6194781 14092236.07 787715.823
12/31/93 10000 374395 4106010 4116010 602037 162783 8707073 8869856 6859509 15729365.34 840243.875
12/31/94 10000 407211 4513221 4523221 513107 153652 8732967 8886619 6867214 15753833.85 891558.226
TOTAL $ 5715772
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSET INITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
1/01/34 10000.00 23.00 5.75 % 434.783 21.680 9426
DIVIDENDS TAKEN IN CASH -- 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>
12/31/34 10000 0 0 10000 0 11822 0 11822 0 11821.75 434.783
12/31/35 10000 0 0 10000 0 21643 0 21643 0 21643.50 434.783
12/31/36 10000 398 398 10000 4009 26030 5011 31041 0 31041.64 518.484
12/31/37 10000 976 1374 10000 275 15248 3091 18339 0 18339.23 522.932
12/31/38 10000 170 1544 10000 950 18330 4843 23173 0 23173.52 1099.313
12/31/39 10000 498 2042 10000 622 17504 5355 22859 0 22859.99 1135.618
12/31/40 10000 806 2848 10000 342 16165 5295 21460 0 21460.13 1154.391
12/31/41 10000 1089 3937 10000 69 14122 4693 18815 0 18815.94 1158.617
12/31/42 10000 969 4906 10000 198 15513 5380 20893 0 20893.32 1171.150
12/31/43 10000 861 5767 10000 317 19704 7157 26861 0 26861.39 1185.410
12/31/44 10000 942 6709 10000 1147 22704 9426 32130 0 32130.42 1230.579
12/31/45 10000 878 7587 10000 2964 28226 14722 42948 0 42948.41 1323.118
12/31/46 10000 1277 8864 10000 2719 24991 15695 40686 0 40686.44 1415.673
12/31/47 10000 1672 10536 10000 1873 23017 16314 39331 0 39331.75 1485.899
12/31/48 10000 1785 12321 10000 1190 21374 16339 37713 0 37713.63 1534.322
12/31/49 10000 1689 14010 10000 1381 21565 17871 39436 0 39436.27 3975.430
12/31/50 10000 1911 15921 10000 1354 23957 21228 45185 0 45185.04 4100.276
12/31/51 10000 1970 17891 10000 2218 25935 25224 51159 0 51159.01 4288.266
12/31/52 10000 1974 19865 10000 2448 26783 28522 55305 0 55305.28 4489.065
12/31/53 10000 2113 21978 10000 1484 25130 28232 53362 0 53362.16 4616.104
12/31/54 10000 2127 24105 10000 3791 36217 44562 80779 0 80779.80 9697.455
12/31/55 10000 2579 26684 10000 6916 40957 57573 98530 0 98530.16 10459.677
12/31/56 10000 2748 29432 10000 7717 41000 65302 106302 0 106302.84 11272.836
12/31/57 10000 2969 32401 10000 5702 32957 57954 90911 0 90911.41 11993.590
12/31/58 10000 3028 35429 10000 4478 44652 83387 128039 0 128039.89 12467.370
12/31/59 10000 3161 38590 10000 9482 46478 96404 142882 0 142882.27 13365.975
12/31/60 10000 3582 42172 10000 7994 44652 100945 145597 0 145597.01 14176.924
12/31/61 10000 3603 45775 10000 9195 50913 124456 175369 0 175369.70 14976.063
12/31/62 10000 3831 49606 10000 6790 41261 106916 148177 0 148177.94 15614.114
12/31/63 10000 3936 53542 10000 7402 47391 130442 177833 0 177833.17 16314.970
12/31/64 10000 4285 57827 10000 11701 50783 151563 202346 0 202346.33 17324.172
12/31/65 10000 4742 62569 10000 15274 59174 192379 251553 0 251553.39 18482.982
12/31/66 10000 5946 68515 10000 19177 54087 193946 248033 0 248033.56 19938.389
12/31/67 10000 6869 75384 10000 14928 64783 247689 312472 0 312472.76 20971.326
12/31/68 10000 8270 83654 10000 13212 70565 286007 356572 0 356572.47 21969.961
CONTINUED ON NEXT PAGE
THE INVESTMENT COMPANY OF AMERICA
============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>
12/31/69 10000 9024 92678 10000 21531 57435 252175 309610 0 309610.96 23437.620
12/31/70 10000 9438 102116 10000 13594 54478 252942 307420 0 307420.81 24534.781
12/31/71 10000 9569 111685 10000 6379 60826 288901 349727 0 349727.25 24998.374
12/31/72 10000 9750 121435 10000 11749 66565 328136 394701 0 394701.20 25780.614
12/31/73 10000 10569 132004 10000 8508 52130 265780 317910 0 317910.79 26514.661
12/31/74 10000 15908 147912 10000 0 40261 205264 245525 0 245525.76 26514.661
12/31/75 10000 14318 162230 10000 1856 51783 265872 317655 0 317655.04 26671.288
12/31/76 10000 12804 175034 10000 6134 63870 334228 398098 0 398098.52 27099.967
12/31/77 10000 13279 188313 10000 7588 58826 315481 374307 0 374307.04 27664.970
12/31/78 10000 14386 202699 10000 0 65130 349291 414421 0 414421.25 27664.970
12/31/79 10000 17347 220046 10000 4980 73913 401756 475669 0 475669.18 55961.080
12/31/80 10000 21746 241792 10000 11192 83913 468329 552242 0 552242.17 57227.168
12/31/81 10000 26420 268212 10000 37770 75130 455733 530863 0 530863.74 61442.562
12/31/82 10000 31589 299801 10000 33793 88609 581981 670590 0 670590.00 65808.636
12/31/83 10000 30264 330065 10000 29614 97913 676605 774518 0 774518.04 68784.906
12/31/84 10000 31680 361745 10000 35080 95652 696319 791971 0 791971.27 71997.388
12/31/85 10000 33152 394897 10000 35279 117478 900426 1017904 0 1017904.40 75344.515
12/31/86 10000 37328 432225 10000 193800 114696 1085821 1200517 0 1200517.70 91017.263
12/31/87 10000 47452 479677 10000 68472 109652 1111275 1220927 0 1220927.88 96822.195
12/31/88 10000 54382 534059 10000 73842 112522 1214852 1327374 0 1327374.69 102579.188
12/31/89 10000 60741 594800 10000 87553 132522 1520229 1652751 0 1652751.28 108448.247
12/31/90 10000 64056 658856 10000 23888 126261 1472559 1598820 0 1598820.62 110111.613
12/31/91 10000 48721 707577 10000 42056 152000 1817876 1969876 0 1969876.26 112693.150
12/31/92 10000 52965 760542 10000 36062 155565 1896597 2052162 0 2052162.44 114710.030
12/31/93 10000 54005 814547 10000 86212 162783 2071369 2234152 0 2234152.74 119345.766
12/31/94 10000 57286 871833 10000 71607 153652 2026957 2180609 0 2180609.61 123407.448
TOTAL $ 1117858
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> DEC-31-1994
<INVESTMENTS-AT-COST> 16,004,239
<INVESTMENTS-AT-VALUE> 19,177,847
<RECEIVABLES> 178,349
<ASSETS-OTHER> 5,306
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 19,361,502
<PAYABLE-FOR-SECURITIES> 54,950
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 26,959
<TOTAL-LIABILITIES> 81,909
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 14,787,309
<SHARES-COMMON-STOCK> 1,090,856,938
<SHARES-COMMON-PRIOR> 1,015,075,531
<ACCUMULATED-NII-CURRENT> 227,698
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 28
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,173,701
<NET-ASSETS> 19,279,593
<DIVIDEND-INCOME> 425,346
<INTEREST-INCOME> 232,625
<OTHER-INCOME> 0
<EXPENSES-NET> 115,084
<NET-INVESTMENT-INCOME> 542,887
<REALIZED-GAINS-CURRENT> 628,471
<APPREC-INCREASE-CURRENT> (1,140,883)
<NET-CHANGE-FROM-OPS> 30,475
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 496,411
<DISTRIBUTIONS-OF-GAINS> 628,912
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 149,158,039
<NUMBER-OF-SHARES-REDEEMED> 130,005,029
<SHARES-REINVESTED> 56,628,397
<NET-CHANGE-IN-ASSETS> 274,563
<ACCUMULATED-NII-PRIOR> 181,222
<ACCUMULATED-GAINS-PRIOR> 469
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 50,698
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 115,084
<AVERAGE-NET-ASSETS> 19,184,278
<PER-SHARE-NAV-BEGIN> 18.72
<PER-SHARE-NII> .51
<PER-SHARE-GAIN-APPREC> (.48)
<PER-SHARE-DIVIDEND> .48
<PER-SHARE-DISTRIBUTIONS> .60
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.67
<EXPENSE-RATIO> .006
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
