ICA
The Investment Company
of America
Quarterly Report
For the
three months ended
March 31, 1995
[The American Funds Group(R)]
Fellow Shareholders:
WE ARE PLEASED TO REPORT THAT IN THE THREE MONTHS ENDED MARCH 31 THE VALUE OF
YOUR INVESTMENT IN THE INVESTMENT COMPANY OF AMERICA(R) ROSE 6.9% if, like most
shareholders, you reinvested the income dividend paid on March 6. If you took
that dividend in cash, the value of your investment increased 6.2%.
Reflecting the growing dividends paid by many of the common stocks owned by
ICA, the fund's Board of Directors declared a first-quarter dividend in March
of 12 cents a share, up from 11 cents. The second-quarter dividend - detailed
in the enclosed account statement - is also 12 cents a share.
Buoyed by strong corporate earnings and increased optimism about the
possibility of a "soft landing" for the U.S. economy, U.S. stock prices have
moved upward this year from the narrow trading range that characterized 1994.
In the process, however, stock prices have risen to a historically high level
relative to dividend income, with the yield of the unmanaged Standard and
Poor's 500 Index at 2.6% as of March 31.
We look forward to reporting to you again three months from now in the fund's
semi-annual report.
Cordially,
Jon B. Lovelace, Jr.
Chairman of the Board
William C. Newton
President
May 17, 1995
PORTFOLIO SUMMARY - MARCH 31, 1995
<TABLE>
<CAPTION>
INVESTMENT MIX Percent of
Net Assets
<S> <C>
Stocks 78.51%
Bonds and U.S. Treasury notes 11.83
Cash and Equivalents 9.66
-------
Total 100.00%
=======
</TABLE>
- ---------
<TABLE>
<CAPTION>
FIVE LARGEST INDUSTRY Number of Percent of
HOLDINGS IN EQUITIES Companies Net Assets
<S> <C> <C>
Banking 22 8.53%
Energy Sources 13 6.60
Telecommunications 13 6.35
Health & Personal Care 12 5.46
Broadcasting & Publishing 10 4.98
</TABLE>
- ----------
<TABLE>
<CAPTION>
TEN LARGEST STOCKS Percent of
Net Assets
<S> <C>
Philip Morris 2.31%
Federal National Mortgage Assn. 2.23
Royal Dutch Petroleum 2.20
Time Warner 1.66
Caterpillar 1.62
IBM 1.60
Intel 1.50
Tele-Communications 1.24
AT&T 1.23
Banc One 1.21
</TABLE>
ICA(SM) IS ONE OF THE NATION'S OLDEST AND LARGEST MUTUAL FUNDS. IT SEEKS
LONG-TERM GROWTH OF CAPITAL AND INCOME, PLACING GREATER EMPHASIS ON FUTURE
DIVIDENDS THAN ON CURRENT INCOME.
Fund results in this report were computed without a sales charge unless
otherwise indicated. Fund results through August 1988 do not reflect service
and distribution expenses now paid under its Plan of Distribution. Such
expenses may not exceed 0.25% of the fund's average net assets per year and
currently amount to approximately 0.21%.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY HAVE A GAIN OR LOSS OF PRINCIPAL WHEN YOU SELL YOUR SHARES.
FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY,
THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON. All investments are subject
to certain risks. For example, those which include common stocks are affected
by fluctuating stock prices. Accordingly, investors should maintain a long-term
perspective.
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 June 30, 1995, this report must be accompanied by an
American Funds Group Statistical Update for the most recently completed
calendar quarter.
Litho in USA BDA/GAC/2641
(c)1995 American Funds Distributors, Inc.
Lit. No. ICA-012-0595
Printed on recycled paper
