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. 99
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 23
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 23, 1996 it filed its 24f-2 notice for fiscal 1995.
Approximate date of proposed public offering:
It is proposed that this filing become effective on February 28, 1996,
pursuant to paragraph (b) of rule 485.
THE INVESTMENT COMPANY OF AMERICA
CROSS REFERENCE SHEET
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<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 Other Management
Services
17. Brokerage Allocation and Other Execution of Portfolio Transactions
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"
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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
February 28, 1996
[LOGO OF THE AMERICAN FUNDS GROUP(R)]
THE INVESTMENT COMPANY OF AMERICA
333 South Hope Street
Los Angeles, CA 90071
The fund's investment objectives are long-term growth of capital and income.
The fund 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
fund. It should be retained for future reference.
You may obtain the statement of additional information for the fund, dated
February 28, 1996, which contains the fund's financial statements, without
charge, by writing to the Secretary of the fund at the above address or
telephoning 800/421-0180. These requests will be honored within three business
days of receipt.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR
GUARANTEED BY, THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER AGENCY, ENTITY OR PERSON. THE
PURCHASE OF FUND SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS
OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
04-010-0296
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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 with the
maximum sales charge.
This table is designed to help you understand costs of investing in the fund.
These are historical expenses; your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
Maximum sales charge on purchases
(as a percentage of offering price)..................................5.75%/1/
The fund has no sales charge on reinvested dividends, deferred sales charge,/2/
redemption fees or exchange fees.
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
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Management fees........................................................ 0.26%
12b-1 expenses......................................................... 0.21%/3/
Other expenses (including audit, legal, shareholder
services, transfer agent and custodian expenses)..................... 0.13%
Total fund 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 employer-sponsored 403(b) plan or defined contribution plan qualified
under Section 401(a) of the Internal Revenue Code including a "401(k)" plan
with 200 or more eligible employees or any other purchaser investing at
least $1 million in shares of the fund (or in combination with shares of
other funds in The American Funds Group other than the money market funds)
may purchase shares at net asset value; however, a contingent deferred sales
charge of 1% applies on certain redemptions made within 12 months following
such purchases. (See "The American Funds Shareholder Guide: Redeeming
Shares--Contingent Deferred Sales Charge.")
/3/ These expenses may not exceed 0.25% of the fund's average net assets
annually. (See "Fund Organization and Management--Plan of Distribution.")
Due to these distribution expenses, long-term shareholders may pay more than
the economic equivalent of the maximum front-end sales charge permitted by
the National Association of Securities Dealers.
/4/ Use of this assumed 5% return is required by the Securities and Exchange
Commission; it is not an illustration of past or future investment results.
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES; ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
TABLE OF CONTENTS
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Summary of Expenses............. 2
Financial Highlights............ 3
Investment Objectives and
Policies....................... 3
Investment Techniques........... 4
Investment Results.............. 7
Dividends, Distributions and
Taxes.......................... 7
Fund Organization
and Management................. 8
The American Funds
Shareholder Guide.............. 11-19
Purchasing Shares.............. 11
Reducing Your Sales
Charge....................... 14
Shareholder Services........... 15
Redeeming Shares............... 17
Retirement Plans............... 19
</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)
2
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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.
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<CAPTION>
YEAR ENDED DECEMBER 31
-----------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year.. $ 17.67 $ 18.72 $ 17.89 $ 17.48 $ 14.52 $15.24 $12.94 $12.61 $13.19 $13.51
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income............... .52 .51 .54 .49 .51 .57 .61 .51 .46 .45
Net realized and unrealized gain
(loss) on investments.............. 4.83 (.48) 1.51 .71 3.27 (.48) 3.13 1.14 .23 2.12
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
Total from Investment Operations.. 5.35 .03 2.05 1.20 3.78 .09 3.74 1.65 .69 2.57
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net investment
income............................ (.50) (.48) (.47) (.47) (.44) (.59) (.59) (.56) (.52) (.44)
Distributions from net realized
gains............................. (.91) (.60) (.75) (.32) (.38) (.22) (.85) (.76) (.75) (2.45)
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
Total Distributions............... (1.41) (1.08) (1.22) (.79) (.82) (.81) (1.44) (1.32) (1.27) (2.89)
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
Net Asset Value, End of Year...... $ 21.61 $ 17.67 $ 18.72 $ 17.89 $ 17.48 $14.52 $15.24 $12.94 $12.61 $13.19
======= ======= ======= ======= ======= ====== ====== ====== ====== ======
Total Return/1/.................... 30.63% .16% 11.62% 6.99% 26.54% .68% 29.41% 13.34% 5.44% 21.74%
RATIOS/SUPPLEMENTAL DATA:
Net Assets, End of Year
(in millions)..................... $25,678 $19,280 $19,005 $15,428 $10,526 $5,923 $5,376 $4,119 $3,889 $3,730
Ratios of Expenses to Average Net
Assets............................ .60% .60% .59% .58% .59% .55% .52% .48% .42% .41%
Ratio of Net Income to Average Net
Assets............................ 2.70% 2.83% 3.03% 3.06% 3.29% 3.95% 4.11% 3.78% 3.14% 3.47%
Portfolio Turnover Rate
--common stocks.................. 20.91% 17.94% 19.57% 7.23% 5.79% 7.48% 14.47% 10.39% 10.76% 10.80%
--investment securities.......... 20.37% 31.08% 17.57% 9.73% 6.21% 10.94% 18.22% 16.41% 11.47% 10.31%
</TABLE>
--------
/1/ This was calculated without deducting a sales charge. The maximum sales
charge is 5.75% of the fund's offering price.
INVESTMENT The fund's investment objectives are long-term growth
OBJECTIVES of capital and income. The fund strives to accomplish
AND POLICIES these objectives through constant supervision, careful
selection and broad diversification. In the selection
The fund aims to of securities for investment, the possibilities of
provide you with appreciation and potential dividends are given more
long-term growth weight than current yield. The fund ordinarily invests
of capital and principally in common stocks. However, assets may also
income. be held in securities convertible into common stocks,
straight debt securities (rated in the top three
quality categories by Standard & Poor's Corporation or
Moody's Investors Service, Inc. or determined to be of
equivalent quality by Capital Research and Management
Company), cash or cash equivalents, U.S. Government
securities, or nonconvertible
3
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preferred stocks. (See the statement of additional
information for a description of cash equivalents.)
Additionally, the fund may from time to time invest in
common stocks and other securities of issuers domiciled
outside the U.S. (See "Investment Techniques--Investing
in Various Countries.")
The fund's investments are limited to securities
included on its eligible list, which consists of
securities deemed suitable investment media in light of
the fund's investment objectives and policies.
Securities 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 fund's investment restrictions (which are described
in the statement of additional information) and
objectives cannot be changed without shareholder
approval. All other investment practices may be changed
by the fund's board.
ACHIEVEMENT OF THE FUND'S INVESTMENT OBJECTIVES CANNOT,
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 fund invests in stocks,
TECHNIQUES it is subject to market risks including, for example,
the possibility that stock prices in general may decline
Investing in over short or even extended periods. The fund may also
stocks involves invest in fixed-income securities, including bonds,
certain risks. 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 se-
curities yield more than shorter term securities of sim-
ilar quality, they are subject to greater price fluctua-
tions. These fluctuations in the value of the invest-
ments will be reflected in the fund's net asset value
per share.
INVESTING IN VARIOUS COUNTRIES Generally, the fund will
invest no more than approximately 10% of its assets in
securities of issuers that are not included in the
Standard & Poor's 500 Composite Index (a broad measure
of the U.S. stock market) and that 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.
4
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Additional costs could be incurred in connection with
the fund's investment activities outside the U.S.
Brokerage commissions are generally higher outside the
U.S., and the fund will bear certain expenses in
connection with its currency transactions. The fund 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 fund is divided into
segments which are managed by individual counselors.
Each counselor decides how their segment will be
invested (within the limits provided by the fund's
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 fund's portfolio. The
primary individual portfolio counselors for the fund
are listed on the next page.
5
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YEARS OF EXPERIENCE YEARS OF EXPERIENCE
AS PORTFOLIO AS INVESTMENT 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 38 years (plus 5 years as a 44 years 44 years
the Fund. Vice Chairman of research professional prior
the Board of Directors and to becoming a portfolio
Chairman of the Executive counselor for the fund)
Committee, Capital Research
and Management Company
- -----------------------------------------------------------------------------------------------------------------------------
William C. Newton President and Director of 34 years 37 years 43 years
the Fund. Senior Partner,
The Capital Group Partners
L.P.*
- -----------------------------------------------------------------------------------------------------------------------------
William R. Grimsley Senior Vice President of 24 years 26 years 33 years
the Fund. Senior Vice
President and Director,
Capital Research and
Management Company
- -----------------------------------------------------------------------------------------------------------------------------
R. Michael Shanahan Senior Vice President of 5 years (plus 13 years as an 31 years 31 years
the Fund. Chairman of the investment professional prior
Board and Principal to becoming a portfolio counselor
Executive Officer, Capital for the fund)
Research and Management
Company
- -----------------------------------------------------------------------------------------------------------------------------
Gregg E. Ireland Vice President of the Fund. 4 years (plus 10 years as a 23 years 23 years
Vice President, Capital research professional prior
Research and Management to becoming a portfolio counselor
Company for the fund)
- -----------------------------------------------------------------------------------------------------------------------------
James B. Lovelace Vice President of the Fund. 4 years (plus 4 years as a 14 years 14 years
Vice President, Capital research professional prior
Research and Management to becoming a portfolio counselor
Company for the fund)
- -----------------------------------------------------------------------------------------------------------------------------
Donald D. O'Neal Vice President of the Fund. 4 years (plus 4 years as a 11 years 11 years
Vice President, Capital research professional prior
Research and Management to becoming a portfolio counselor
Company for the fund)
- -----------------------------------------------------------------------------------------------------------------------------
Dina N. Perry Vice President, Capital 2 years (plus 2 years as a 4 years 29 years
Research and Management research professional prior
Company to becoming a portfolio counselor
for the fund)
- -----------------------------------------------------------------------------------------------------------------------------
* Company affiliated with Capital Research and Management Company
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
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INVESTMENT RESULTS The fund may from time to time compare its investment
results to various unmanaged indices or other mutual
The fund has funds in reports to shareholders, sales literature and
averaged a total advertisements. The results may be calculated on a to-
return of 13.09% a tal return, yield and/or distribution rate basis for
year (assuming the various periods, with or without sales charges. Results
maximum sales calculated without a sales charge will be higher. Total
charge was paid) returns assume the reinvestment of all dividends and
over its lifetime capital gain distributions.
(January 1, 1934
through December The fund's yield and the average annual total returns
31, 1995). are calculated in accordance with Securities and
Exchange Commission rules which require that the
maximum sales charge be reflected. The fund's
distribution rate is calculated by dividing the
dividends paid by the fund over the last 12 months by
the sum of the month-end price and the capital gains
paid over the last 12 months. For the 30-day period
ended December 31, 1995, the fund's SEC yield was 2.34%
and the distribution rate was 2.10% at maximum offering
price. The SEC yield reflects income earned by the
fund, while the distribution rate reflects dividends
paid by the fund. The fund's total return over the past
12 months and average annual total returns over the
past five- and ten-year periods, as of December 31,
1995, were 23.10%, 13.25%, and 13.45%, respectively. Of
course, past results are not an indication of future
results. Further information regarding the fund's
investment results is contained in the fund's annual
report which may be obtained without charge by writing
to the Secretary of the fund at the address indicated
on the cover of this prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS 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 fund intends to operate as a
September and "regulated investment company" under the Internal
December. Revenue Code. In any fiscal year in which the fund so
qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved of federal income tax.
All dividends and capital gains are taxable whether
they are reinvested or received in cash--unless you are
exempt from taxation or entitled to tax deferral. Early
each year, you will be notified as to the amount and
federal tax status of all dividends and capital gains
paid during the prior year. Such dividends and capital
gains may also be subject to state or local taxes.
IF YOU HAVE NOT FURNISHED A CERTIFIED CORRECT TAXPAYER
IDENTIFICATION NUMBER (GENERALLY YOUR SOCIAL SECURITY
NUMBER) AND HAVE NOT CERTIFIED THAT WITHHOLDING DOES
NOT APPLY, OR IF THE INTERNAL REVENUE
7
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SERVICE HAS NOTIFIED THE FUND THAT THE TAXPAYER
IDENTIFICATION NUMBER LISTED ON YOUR ACCOUNT IS
INCORRECT ACCORDING TO THEIR RECORDS OR THAT YOU ARE
SUBJECT TO BACKUP WITHHOLDING, FEDERAL LAW GENERALLY
REQUIRES THE FUND TO WITHHOLD 31% FROM ANY DIVIDENDS
AND/OR REDEMPTIONS (INCLUDING EXCHANGE REDEMPTIONS).
Amounts withheld are applied to your federal tax
liability; a refund may be obtained from the Service if
withholding results in overpayment of taxes. Federal
law also requires the fund to withhold 30% or the
applicable tax treaty rate from dividends paid to
certain nonresident alien, non-U.S. partnership and
non-U.S. corporation shareholder accounts.
The fund may be required to pay withholding and other
taxes imposed by various countries in connection with
its investments outside the U.S. generally at rates
from 10% to 40%, which would reduce the fund's
investment income.
This is a brief summary of some of the tax laws that
affect your investment in the fund. Please see the
statement of additional information and your tax ad-
viser for further information.
FUND FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
ORGANIZATION end, diversified management investment company, was or-
AND ganized as a Delaware corporation in 1933. The fund's
MANAGEMENT board supervises fund operations and performs duties
required by applicable state and federal law. Members
The fund is a of the board who are not employed by Capital Research
member of The and Management Company or its affiliates are paid cer-
American Funds tain fees for services rendered to the fund as de-
Group, which is scribed in the statement of additional information.
managed by one of They may elect to defer all or a portion of these fees
the largest and through a deferred compensation plan in effect for the
most experienced fund. All shareholders have one vote per share owned
investment and, at the request of the holders of at least 10% of
advisers. the shares, the fund will hold a meeting at which any
member of the board could be removed 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 fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071 and at 135 South State College
Boulevard, Brea, CA 92621. (See "The American Funds
Shareholder Guide: Purchasing Shares--Investment
Minimums and Fund Numbers" for a listing of funds in
The American Funds Group.) Capital Research and
Management Company manages the investment portfolio and
business affairs of the fund and receives a fee at the
annual rate of 0.39% on the first $1.0 billion of the
fund'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%
8
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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 over $13 billion to $21
billion, plus 0.235% on net assets over $21 billion to
$34 billion, plus 0.231% on net assets in excess of $34
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.) This policy has also been incorporated
into the fund's "code of ethics" which is available
from the fund's secretary upon request.
PORTFOLIO TRANSACTIONS Orders for the fund's portfolio
securities transactions are placed by Capital Research
and Management Company, which strives to obtain the
best available prices, taking into account the costs
and quality of executions. In the over-the-counter mar-
ket, purchases and sales are transacted directly with
principal market-makers except in those circumstances
where it appears better prices and executions are
available elsewhere.
Subject to the above policy, when two or more brokers
are in a position to offer comparable prices and
executions, preference may be given to brokers that
have sold shares of the fund or have provided
investment research, statistical, and other related
services for the benefit of the fund and/or of other
funds served by Capital Research and Management
Company.
PRINCIPAL UNDERWRITER American Funds Distributors,
Inc., a wholly owned subsidiary of Capital Research and
Management Company, is the principal underwriter of the
fund's shares. American Funds Distributors, Inc. is
located at 333 South Hope Street, Los Angeles, CA
90071, 135 South State College Boulevard, Brea, CA
92621, 8000 IH-10 West, San Antonio, TX 78230, 8332
Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513. Telephone
conversations with American Funds Distributors may be
recorded or monitored for verification, recordkeeping
and quality assurance purposes.
PLAN OF DISTRIBUTION The fund has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
the categories of expenses are approved in advance by
9
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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 fund under the
plan may not exceed 0.25% of its average net assets
annually (all of which may be for service fees). (See
"The American Funds Shareholder Guide: Purchasing
Shares--Sales Charges" below.)
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 $19,172,000 for
the year ended December 31, 1995. Telephone
conversations with American Funds Service Company may be
recorded or monitored for verification, recordkeeping
and quality assurance purposes.
AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
SERVICE
AREA ADDRESS AREAS SERVED
---------------------------------------------------------
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, MN, MO, ND, NE, NM,
TX 78265-9522 OK, SD, TX and WY
Fax: 210/530-4050
---------------------------------------------------------
CENTRAL- P.O. Box 6007 AL, IL, IN, KY, MI,
EAST Indianapolis, MS, OH, TN and WI
IN 46206-6007
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.
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ALL SHAREHOLDERS MAY CALL AMERICAN FUNDS SERVICE
COMPANY AT 800/421-0180 FOR SERVICE.
[LOGO]
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West (light grey); Central-West (white); Central-East
(dark grey), East (orange)
10
<PAGE>
THE AMERICAN FUNDS SHAREHOLDER GUIDE
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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 investment under "Investment
you add to it minimums. Minimums and Fund
whenever you like. Numbers").
---------------------------------------------------------
By Visit any Mail directly to
contacting investment dealer your investment
your who is registered dealer's address
investment in the state where printed on your
dealer the purchase is account statement.
made and who has a
sales agreement
with American
Funds Distributors.
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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 an described under
investment dealer "Initial Investment."
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.)
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THE FUNDS AND AMERICAN FUNDS DISTRIBUTORS RESERVE
THE RIGHT TO REJECT ANY PURCHASE ORDER.
SHARE PRICE Shares are purchased at the offering price
next determined after the order is received by the fund
or American Funds Service Company. In the case of orders
sent directly to the fund or American Funds Service
Company, an investment dealer MUST be indicated. This
price is the net asset value plus a sales charge, if
applicable. Dealers are responsible for promptly
transmitting orders. (See the statement of additional
information under "Purchase of Shares--Price of
Shares.")
The net asset value per share is determined as of the
close of trading (currently 4:00 p.m., New York time) on
each day the New York Stock Exchange is open. The
current value of the fund's total assets, less all
liabilities, is divided by the total number of shares
outstanding and the result, rounded to the nearer cent,
is the net asset value per share. The net asset value
per share of the money market funds normally will remain
constant at $1.00 based on the funds' current practice
of valuing their shares using the penny-rounding method
in accordance with rules of the Securities and Exchange
Commission.
SHARE CERTIFICATES Shares are credited to your account
and certificates are not issued unless specifically
requested. This eliminates the costly problem of lost or
destroyed certificates.
11
<PAGE>
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If you would like certificates issued, please request
them by writing to American Funds Service Company.
There is usually no charge for issuing certificates in
reasonable denominations. CERTIFICATES ARE NOT AVAIL-
ABLE FOR THE MONEY MARKET FUNDS.
INVESTMENT MINIMUMS AND FUND NUMBERS Here are the
minimum initial investments required by the funds in
The American Funds Group along with fund numbers for
use with our automated phone line, American
FundsLine(R) (see description below):
<TABLE>
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
---- ---------- ------
<S> <C> <C>
STOCK AND STOCK/BOND FUNDS
AMCAP Fund(R)......... $1,000 02
American Balanced
Fund(R).............. 500 11
American Mutual
Fund(R).............. 250 03
Capital Income
Builder(R)........... 1,000 12
Capital World Growth
and Income Fund(SM).. 1,000 33
EuroPacific Growth
Fund(R).............. 250 16
Fundamental
Investors(SM)........ 250 10
The Growth Fund of
America(R)........... 1,000 05
The Income Fund of
America(R)........... 1,000 06
The Investment Company
of America(R)........ 250 04
The New Economy
Fund(R).............. 1,000 14
New Perspective
Fund(R).............. 250 07
SMALLCAP World
Fund(SM)............. 1,000 35
Washington Mutual
Investors Fund(SM)... 250 01
<CAPTION>
MINIMUM
INITIAL FUND
FUND INVESTMENT NUMBER
- ---- ---------- ------
<S> <C> <C>
BOND FUNDS
American High-Income Mu-
nicipal 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 Securi-
ties Fund(SM).......... 1,000 22
MONEY MARKET FUNDS
The Cash Management
Trust of America(R).... 2,500 09
The Tax-Exempt Money
Fund of America(SM).... 2,500 39
The U.S. Treasury Money
Fund of America(SM).... 2,500 49
</TABLE>
--------
*Available only in certain states.
For retirement plan investments, the minimum is $250,
except that the money market funds have a minimum of
$1,000 for individual retirement accounts (IRAs). Mini-
mums are reduced to $50 for purchases through "Auto-
matic Investment Plans" (except for the money market
funds) or to $25 for purchases by retirement plans
through payroll deductions and may be reduced or waived
for shareholders of other funds in The American Funds
Group. TAX-EXEMPT FUNDS SHOULD NOT SERVE AS RETIREMENT
PLAN INVESTMENTS. The minimum is $50 for additional in-
vestments (except as noted above).
SALES CHARGES The sales charges you pay when purchasing
the stock, stock/bond, and bond funds of The American
Funds Group are set forth below. The money market funds
of The American Funds Group are offered at net asset
value. (See "Investment Minimums and Fund Numbers" for
a listing of the funds.)
12
<PAGE>
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<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 employer-
sponsored 403(b) plan or defined contribution plan
qualified under Section 401(a) of the Internal Revenue
Code including a "401(k)" plan with 200 or more
eligible employees (paid pursuant to the fund'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, during
calendar year 1996, provide additional compensation to
dealers. Currently these payments are limited to the
top one hundred dealers who have sold shares of the
fund or other funds in The American Funds Group. These
payments will be based on a pro rata share of a
qualifying dealer's sales. American Funds Distributors
will, on an annual basis, determine the advisability of
continuing these payments.
Any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees or any other purchaser
investing at least $1 million in shares of the fund (or
in combination with shares of other funds in The
American Funds Group other than the money market funds)
may purchase shares at net asset value; however, a
contingent deferred sales charge of 1% is imposed on
certain redemptions made within twelve months 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
13
<PAGE>
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compensate them for providing certain services. (See
"Fund Organization and Management--Plan of
Distribution.") These services include processing
purchase and redemption transactions, establishing
shareholder accounts and providing certain information
and assistance with respect to the fund.
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 registered representatives,
retired registered representatives with respect to
accounts established while active, or full-time
employees (and their spouses, parents, and children) of
dealers who have sales agreements with American Funds
Distributors (or who clear transactions through such
dealers) and plans for such persons or the dealers; (3)
companies exchanging securities with the fund 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
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
14
<PAGE>
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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 and
the statement of additional information under "Purchase
of Shares--Statement of Intention.")
YOU MUST LET YOUR INVESTMENT DEALER OR AMERICAN FUNDS
SERVICE COMPANY KNOW IF YOU QUALIFY FOR A REDUCTION IN
YOUR SALES CHARGE USING ONE OR ANY COMBINATION OF THE
METHODS DESCRIBED ABOVE.
SHAREHOLDER AUTOMATIC INVESTMENT PLAN You may make regular monthly
SERVICES or quarterly investments through automatic charges to
your bank account. Once a plan is established, your ac-
The fund offers count will normally be charged by the 10th day of the
you a valuable month during which an investment is made (or by the
array of services 15th day of the month in the case of any retirement
designed to plan for which Capital Guardian Trust Company--another
increase the affiliate of The Capital Group Companies, Inc.--acts as
convenience and trustee or custodian).
flexibility of
your investment-- AUTOMATIC REINVESTMENT Dividends and capital gain dis-
services you can tributions are reinvested in additional shares at no
use to alter your sales charge unless you indicate otherwise on the
investment program account application. You also may elect to have divi-
as your needs and dends and/or capital gain distributions paid in cash by
circumstances informing the fund, American Funds Service Company or
change. your investment dealer.
CROSS-REINVESTMENT You may cross-reinvest dividends or
dividends and capital gain distributions paid by one
fund into another fund in The American Funds Group,
subject to conditions outlined in the statement of ad-
ditional information. Generally, to use this service
the value of your account in the paying fund must equal
at least $5,000.
15
<PAGE>
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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 "Telephone Redemptions and Exchanges" below.)
Shares held in corporate-type retirement 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 simul-
taneously at the share prices next determined after the
exchange order is received. (See "Purchasing Shares--
Share Price.") THESE TRANSACTIONS HAVE THE SAME TAX
CONSEQUENCES AS ORDINARY SALES AND PURCHASES.
AUTOMATIC EXCHANGES You may automatically exchange
shares (in amounts of $50 or more) among any of the
funds in The American Funds Group on any day (or pre-
ceding business day if the day falls on a non-business
day) of each month you designate. You must either meet
the minimum initial investment requirement for the re-
ceiving fund OR the originating fund's balance must be
at least $5,000 and the receiving fund's minimum must
be met within one year.
AUTOMATIC WITHDRAWALS You may make automatic
withdrawals of $50 or more as follows: five or more
times per year if you have an account of $10,000 or
more, or four or fewer times per year if you have an
account of $5,000 or more. Withdrawals are made on or
about the 15th day of each month you designate, and
checks will be sent within seven days. (See "Other
Important Things to Remember.") Additional investments
in a withdrawal account must not be less than one
year's scheduled withdrawals or $1,200, whichever is
greater. However, additional investments in a
withdrawal account may be inadvisable due to sales
charges and tax liabilities.
THESE SERVICES ARE AVAILABLE ONLY IN STATES WHERE THE
FUND TO BE PURCHASED MAY BE LEGALLY OFFERED AND MAY BE
TERMINATED OR MODIFIED AT ANY TIME UPON 60 DAYS'
WRITTEN NOTICE.
ACCOUNT STATEMENTS Your account is opened in accordance
with your registration instructions. Transactions in
the account, such as additional investments and
dividend reinvestments, will be reflected on regular
confirmation statements from American Funds Service
Company. Purchases through automatic investment plans
will be confirmed at least quarterly.
16
<PAGE>
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AMERICAN FUNDSLINE(R) You may check your share balance,
the price of your shares, or your most recent account
transaction, redeem shares (up to $10,000 per fund, per
account each day), or exchange shares around the clock
with American FundsLine(R). To use this service, call
800/325-3590 from a TouchTone(TM) telephone.
Redemptions and exchanges through American FundsLine(R)
are subject to the conditions noted above and in
"Redeeming Shares--Telephone Redemptions and Exchanges"
below. You will need your fund number (see the list of
funds in The American Funds Group under "Purchasing
Shares--Investment Minimums and Fund Numbers"),
personal identification number (the last four digits of
your Social Security number or other tax identification
number associated with your account) and account
number.
--------------------------------------------------------
REDEEMING By writing to Send a letter of instruction
SHARES American Funds specifying the name of the fund, the
Service Com- number of shares or dollar amount to
You may take money pany (at the be sold, your name and account
out of your appropriate number. You should also enclose any
account whenever address indi- share certificates you wish to
you please. cated under redeem. For redemptions over $50,000
"Fund Organi- and for certain redemptions of
zation and $50,000 or less (see below), your
Management-- signature must be guaranteed by a
Transfer bank, savings association, credit
Agent") union, or member firm of a domestic
stock exchange or the National
Association of Securities Dealers,
Inc., that is an eligible guarantor
institution. You should verify with
the institution that it is an
eligible guarantor prior to signing.
Additional documentation may be
required for redemption of shares
held in corporate, partnership or
fiduciary accounts. Notarization by a
Notary Public is not an acceptable
signature guarantee.
-------------------------------------------------------
By contacting If you redeem shares through your
your invest- investment dealer, you may be charged
ment dealer for this service. SHARES HELD FOR YOU
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 tele- account and the check must be made
phoning, fax- payable to the shareholder(s) of
ing, 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 (sub- "Exchange Privilege" above for the
ject to the appropriate telephone or fax number.
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.
17
<PAGE>
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THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND
ALL REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
TELEPHONE REDEMPTIONS AND EXCHANGES By using the
telephone (including American FundsLine(R)), fax or
telegraph redemption and/or exchange options, you agree
to hold the fund, American Funds Service Company, any
of its affiliates or mutual funds managed by such
affiliates, and each of their respective directors,
trustees, officers, employees and agents harmless from
any losses, expenses, costs or liability (including
attorney fees) which may be incurred in connection with
the exercise of these privileges. Generally, all
shareholders are automatically eligible to use these
options. However, you may elect to opt out of these
options by writing American Funds Service Company (you
may reinstate them at any time also by writing American
Funds Service Company). If American Funds Service
Company does not employ reasonable procedures to
confirm that the instructions received from any person
with appropriate account information are genuine, the
fund may be liable for losses due to unauthorized or
fraudulent instructions. In the event that shareholders
are unable to reach the fund by telephone because of
technical difficulties, market conditions, or a natural
disaster, redemption and exchange requests may be made
in writing only.
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions made
within twelve months of purchase on investments of $1
million or more and on any investment made with no
initial sales charge by any employer-sponsored 403(b)
plan or defined contribution plan qualified under
Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees. The
charge is 1% of the lesser of the value of the shares
redeemed (exclusive of reinvested dividends and capital
gain distributions) or the total cost of such shares.
Shares held for the longest period are assumed to be
redeemed first for purposes of calculating this charge.
The charge is waived for exchanges (except if shares
acquired by exchange were then redeemed within 12
months of the initial purchase); for distributions from
qualified retirement plans and other employee benefit
plans; for redemptions resulting from participant-
directed switches among investment options within a
participant-directed employer-sponsored retirement
plan; for distributions from 403(b) plans or IRAs due
to death, disability or attainment of age 59 1/2; for
tax-free returns of excess contributions to IRAs; for
redemptions through certain automatic withdrawals not
exceeding 10% of the amount that would otherwise be
subject to the charge; and for redemptions in
connection with loans made by qualified retirement
plans.
REINSTATEMENT PRIVILEGE You may reinvest proceeds from
a redemption or a dividend or capital gain distribution
without a sales charge (any contingent deferred sales
charge paid will be credited to your
18
<PAGE>
- -------------------------------------------------------------------------------
account) in any fund in The American Funds Group. Send
a written request and a check to American Funds Service
Company within 90 days after the date of the redemption
or distribution. Reinvestment will be at the next
calculated net asset value after receipt. The tax
status of a gain realized on a redemption will not be
affected by exercise of the reinstatement privilege,
but a loss may be nullified if you reinvest in the same
fund within 30 days. If you redeem your shares within
90 days after purchase and the sales charge on the
purchase of other shares is waived under the
reinstatement privilege, the sales charge you
previously paid for the shares may not be taken into
account when you calculate your gain or loss on that
redemption.
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because each stock,
stock/bond and bond fund's net asset value fluctuates,
reflecting the market value of the fund's portfolio,
the amount a shareholder receives for shares redeemed
may be more or less than the amount paid for them.
Redemption proceeds will not be mailed until sufficient
time has passed to provide reasonable assurance that
checks or drafts (including certified or cashier's
checks) for shares purchased have cleared (which may
take up to 15 calendar days from the purchase date).
Except for delays relating to clearance of checks for
share purchases or in extraordinary circumstances (and
as permissible under the Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
A fund may, with 60 days' written notice, close your
account if, due to a redemption, the account has a
value of less than the minimum required initial
investment. (For example, a fund may close an account
if a redemption is made shortly after a minimum initial
investment is made.)
RETIREMENT You may invest in the funds through various retirement
PLANS plans including the following plans for which Capital
Guardian Trust Company acts as trustee or custodian:
IRAs, Simplified Employee Pension plans, 403(b) plans
and Keogh- and corporate-type business retirement
plans. For further information about any of the plans,
agreements, applications and annual fees, contact
American Funds Distributors or your investment dealer.
To determine which retirement plan is appropriate for
you, please consult your tax adviser. TAX-EXEMPT FUNDS
SHOULD NOT SERVE AS INVESTMENTS FOR RETIREMENT PLANS.
FOR MORE INFORMATION, PLEASE REFER TO THE ACCOUNT
APPLICATION OR THE STATEMENT OF ADDITIONAL INFORMATION.
IF YOU HAVE ANY QUESTIONS ABOUT ANY OF THE SHAREHOLDER
SERVICES DESCRIBED HEREIN OR YOUR ACCOUNT, PLEASE
CONTACT YOUR INVESTMENT DEALER OR AMERICAN FUNDS
SERVICE COMPANY.
[RECYCLE LOGO] This prospectus has been printed on
recycled paper that meets the
guidelines of the United States
Environmental Protection Agency
19
<PAGE>
PROSPECTUS
for Eligible Retirement Plans
LOGO OF 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, 1996
THE INVESTMENT COMPANY OF AMERICA
333 South Hope Street
Los Angeles, CA 90071
The fund's investment objectives are long-term growth of capital and income.
The fund 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 fund offered without a sales
charge through eligible retirement plans. For a prospectus regarding shares of
the fund to be acquired otherwise, contact the Secretary of the fund at the
address indicated above.
This prospectus presents information you should know before investing in the
fund. It should be retained for future reference.
You may obtain the statement of additional information for the fund, dated
February 28, 1996, which contains the fund's financial statements, without
charge, by writing to the Secretary of the fund at the above address or
telephoning 800/421-0180. These requests will be honored within three business
days of receipt.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR
GUARANTEED BY, THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER AGENCY, ENTITY OR PERSON. THE
PURCHASE OF FUND SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS
OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
04-010-0296
<PAGE>
- -------------------------------------------------------------------------------
SUMMARY This table is designed to help you understand costs of
OF EXPENSES investing in the fund. These are historical expenses;
your actual expenses may vary.
Average annual SHAREHOLDER TRANSACTION EXPENSES
expenses paid over Certain retirement plans may purchase shares of the
a 10-year period fund with no sales charge./1/ The fund also has no
would be sales charge on reinvested dividends, redemption fees
approximately $8 or exchange fees.
per year, assuming
a $1,000 ANNUAL FUND OPERATING EXPENSES (as a percentage of
investment and a average net assets)
5% annual return
with no sales
charge.
<TABLE>
<S> <C>
Management fees......................................... 0.26%
12b-1 expenses.......................................... 0.21%/2/
Other expenses (including audit, legal, shareholder
services, transfer agent and custodian expenses)....... 0.13%
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 $6 $19 $33 $75
a 5% annual return./3/
</TABLE>
/1/ Retirement plans of organizations with $100 million or more in
collective retirement plan assets may purchase shares of the
fund with no sales charge. In addition, any employer-sponsored
403(b) plan or defined contribution plan qualified under
Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees or any other
plan that invests at least $1 million in shares of the fund
(or in combination with shares of other funds in The American
Funds Group other than the money market funds) may purchase
shares at net asset value; however, a contingent deferred
sales charge of 1% applies on certain redemptions made 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 "Fund Organization and Management--
Plan of Distribution.") Due to these distribution expenses,
long-term shareholders may pay more than the economic
equivalent of the maximum front-end sales charge permitted by
the National Association of Securities Dealers.
/3/ Use of this assumed 5% return is required by the Securities
and Exchange Commission; it is not an illustration of past or
future investment results. THIS EXAMPLE SHOULD NOT BE
CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES; ACTUAL
EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
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
Fund Organization and Management.......... 8
Purchasing Shares......................... 9
Shareholder Services...................... 11
Redeeming Shares.......................... 11
</TABLE>
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
-----------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Year...... $ 17.67 $ 18.72 $ 17.89 $ 17.48 $ 14.52 $15.24 $12.94 $12.61 $13.19 $13.51
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS:
Net investment income... .52 .51 .54 .49 .51 .57 .61 .51 .46 .45
Net realized and
unrealized gain (loss)
on investments......... 4.83 (.48) 1.51 .71 3.27 (.48) 3.13 1.14 .23 2.12
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
Total from Investment
Operations........... 5.35 .03 2.05 1.20 3.78 .09 3.74 1.65 .69 2.57
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
LESS DISTRIBUTIONS:
Dividends from net in-
vestment
income................ (.50) (.48) (.47) (.47) (.44) (.59) (.59) (.56) (.52) (.44)
Distributions from net
realized gains........ (.91) (.60) (.75) (.32) (.38) (.22) (.85) (.76) (.75) (2.45)
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
Total Distributions... (1.41) (1.08) (1.22) (.79) (.82) (.81) (1.44) (1.32) (1.27) (2.89)
------- ------- ------- ------- ------- ------ ------ ------ ------ ------
Net Asset Value, End
of Year.............. $ 21.61 $ 17.67 $ 18.72 $ 17.89 $ 17.48 $14.52 $15.24 $12.94 $12.61 $13.19
======= ======= ======= ======= ======= ====== ====== ====== ====== ======
Total Return/1/........ 30.63% .16% 11.62% 6.99% 26.54% .68% 29.41% 13.34% 5.44% 21.74%
RATIOS/SUPPLEMENTAL DA-
TA:
Net Assets, End of Year
(in millions)......... $25,678 $19,280 $19,005 $15,428 $10,526 $5,923 $5,376 $4,119 $3,889 $3,730
Ratios of Expenses to
Average Net
Assets................ .60% .60% .59% .58% .59% .55% .52% .48% .42% .41%
Ratio of Net Income to
Average Net Assets.... 2.70% 2.83% 3.03% 3.06% 3.29% 3.95% 4.11% 3.78% 3.14% 3.47%
Portfolio Turnover Rate
--common stocks...... 20.91% 17.94% 19.57% 7.23% 5.79% 7.48% 14.47% 10.39% 10.76% 10.80%
--investment securi-
ties.................. 20.37% 31.08% 17.57% 9.73% 6.21% 10.94% 18.22% 16.41% 11.47% 10.31%
</TABLE>
--------
/1/ Calculated with no sales charge.
INVESTMENT The fund's investment objectives are long-term growth
OBJECTIVES of capital and income. The fund strives to accomplish
AND POLICIES these objectives through constant supervision, careful
selection and broad diversification. In the selection
The fund aims to of securities for investment, the possibilities of
provide you with appreciation and potential dividends are given more
long-term growth weight than current yield. The fund ordinarily invests
of capital and principally in common stocks. However, assets may also
income. be held in securities convertible into common stocks,
straight debt securities (rated in the top three
quality categories by Standard & Poor's Corporation or
Moody's Investors Service, Inc. or determined to be of
equivalent quality by Capital Research and Management
Company), cash
3
<PAGE>
- -------------------------------------------------------------------------------
or cash equivalents, U.S. Government securities, or
nonconvertible preferred stocks. (See the statement of
additional information for a description of cash
equivalents.)
Additionally, the fund may from time to time invest in
common stocks and other securities of issuers domiciled
outside the U.S. (See "Investment Techniques--Investing
in Various Countries.")
The fund'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
fund's investment objectives and policies. Securities
are added to, or deleted from, the eligible list by the
board of directors, reviewing and acting upon the rec-
ommendations of Capital Research and Management Compa-
ny.
The fund's investment restrictions (which are described
in the statement of additional information) and objec-
tives cannot be changed without shareholder approval.
All other investment practices may be changed by the
fund's board.
ACHIEVEMENT OF THE FUND'S INVESTMENT OBJECTIVES CANNOT,
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 fund invests in stocks,
TECHNIQUES it is subject to market risks, including, for example,
the possibility that stock prices in general may de-
Investing in cline over short or even extended periods. The fund may
stocks involves also invest in fixed-income securities, including
certain risks. bonds, which have market values which tend to vary in-
versely 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 fluctuations in the value of the
investments will be reflected in the fund's net asset
value per share.
INVESTING IN VARIOUS COUNTRIES Generally, the fund will
invest no more than approximately 10% of its assets in
securities of issuers that are not included in the
Standard & Poor's 500 Composite Index (a broad measure
of the U.S. stock market) and that 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.
4
<PAGE>
- -------------------------------------------------------------------------------
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 fund's investment activities outside the U.S.
Brokerage commissions are generally higher outside the
U.S., and the fund will bear certain expenses in
connection with its currency transactions. The fund 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 fund is divided into
segments which are managed by individual counselors.
Each counselor decides how their segment will be
invested (within the limits provided by the fund's
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 fund's portfolio. The
primary individual portfolio counselors for the fund
are listed on the next page.
5
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------
YEARS OF EXPERIENCE
AS INVESTMENT
PROFESSIONAL
(APPROXIMATE)
YEARS OF EXPERIENCE
AS PORTFOLIO
PORTFOLIO COUNSELOR (AND
COUNSELORS FOR THE RESEARCH
INVESTMENT COMPANY PRIMARY TITLE(S) PROFESSIONAL IF WITH CAPITAL
OF AMERICA APPLICABLE) FOR RESEARCH AND
THE INVESTMENT MANAGEMENT
COMPANY OF AMERICA COMPANY OR ITS TOTAL
(APPROXIMATE) AFFILIATES YEARS
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Jon B. Lovelace, Chairman of the Board of 38 years (plus 5 44 years 44 years
Jr. the Fund. Vice Chairman years as a research
of the Board of Directors professional prior
and Chairman of the to becoming
Executive Committee, portfolio counselor
Capital Research and for the fund)
Management Company
William C. Newton President and Director of 34 years 37 years 43 years
the Fund. Senior Partner,
The Capital Group
Partners L.P.*
William R. Grimsley Senior Vice President of 24 years 26 years 33 years
the Fund. Senior Vice
President and Director,
Capital Research and
Management Company
R. Michael Shanahan Senior Vice President of 5 years (plus 13 31 years 31 years
the Fund. Chairman years as an
of the Board and investment
Principal Executive professional prior
Officer, Capital to becoming a
Research and Management portfolio counselor
Company for the fund)
Gregg E. Ireland Vice President of the 4 years (plus 10 23 years 23 years
Fund. Vice President, years as a research
Capital Research and professional prior
Management Company to becoming a
portfolio counselor
for the fund)
James B. Lovelace Vice President of the 4 years (plus 4 14 years 14 years
Fund. Vice President, years as a research
Capital Research and professional prior
Management Company to becoming a
portfolio counselor
for the fund)
Donald D. O'Neal Vice President of the 4 years (plus 4 11 years 11
Fund. Vice President, years as a research years
Capital Research and professional prior
Management Company to becoming a
portfolio counselor
for the fund)
Dina N. Perry Vice President, Capital 2 years (plus 2 4 years 29
Research and Management years as a research years
Company professional prior
to becoming a
portfolio counselor
for the fund)
- ---------------------------------------------------------------------------------------------
* Company affiliated with Capital Research and Management Company
- ---------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
- -------------------------------------------------------------------------------
INVESTMENT RESULTS The fund may from time to time compare its investment
results to various unmanaged indices or other mutual
The fund has funds in reports to shareholders, sales literature and
averaged a total advertisements. The results may be calculated on a to-
return (at no tal return, yield and/or distribution rate basis for
sales charge) of various periods, with or without sales charges. Results
13.20% a year over calculated without a sales charge will be higher. Total
its lifetime returns assume the reinvestment of all dividends and
(January 1, 1934 capital gain distributions.
through December
31, 1995). The fund's yield and the average annual total returns
are calculated with no sales charge in accordance with
Securities and Exchange Commission requirements. The
fund's distribution rate is calculated by dividing the
dividends paid by the fund over the last 12 months by
the sum of the month-end price and the capital gains
paid over the last 12 months. For the 30-day period
ended December 31, 1995, the fund's SEC yield was 2.49%
and the distribution rate was 2.22% with no sales
charge. The SEC yield reflects income earned by the
fund, while the distribution rate reflects dividends
paid by the fund. The fund'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,
1995, were 30.63%, 14.60%, and 14.12%, respectively. Of
course, past results are not an indication of future
results. Further information regarding the fund's
investment results is contained in the fund's annual
report which may be obtained without charge by writing
to the Secretary of the fund at the address indicated
on the cover of this prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS 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 fund. Generally, peri-
December. odic distributions from the fund to your plan are rein-
vested in additional fund shares, although your plan
may permit fund distributions from net investment in-
come to be received by you in cash while reinvesting
capital gains distributions in additional shares or all
fund distributions to be received in cash. Unless you
select another option, all distributions will be rein-
vested in additional fund shares.
FEDERAL TAXES The fund intends to operate as a
"regulated investment company" under the Internal
Revenue Code. In any fiscal year in which the fund so
qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved of federal income tax. The tax
treatment of redemptions from a retirement plan may
differ from redemptions from an ordinary shareholder
account.
Please see the statement of additional information and
your tax adviser for further information.
7
<PAGE>
- -------------------------------------------------------------------------------
FUND FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
ORGANIZATION end, diversified management investment company, was or-
AND ganized as a Delaware corporation in 1933. The fund's
MANAGEMENT board supervises fund operations and performs duties
required by applicable state and federal law. Members
The fund is a of the board who are not employed by Capital Research
member of The and Management Company or its affiliates are paid cer-
American Funds tain fees for services rendered to the fund as de-
Group, which is scribed in the statement of additional information.
managed by one of They may elect to defer all or a portion of these fees
the largest and through a deferred compensation plan in effect for the
most experienced fund. All shareholders have one vote per share owned
investment and, at the request of the holders of at least 10% of
advisers. the shares, the fund will hold a meeting at which any
member of the board could be removed 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 fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071 and at 135 South State College
Boulevard, Brea, CA 92621. Capital Research and
Management Company manages the investment portfolio and
business affairs of the fund and receives a fee at the
annual rate of 0.39% on the first $1.0 billion of the
fund'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 over $13 billion to $21 billion, plus
0.235% on net assets over $21 billion to $34 billion,
plus 0.231% on net assets in excess of $34 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.) This policy has also been incorporated
into the fund's "code of ethics" which is available
from the fund's Secretary upon request.
8
<PAGE>
- -------------------------------------------------------------------------------
PORTFOLIO TRANSACTIONS Orders for the fund's portfolio
securities transactions are placed by Capital Research
and Management Company, which strives to obtain the
best available prices, taking into account the costs
and quality of executions. In the over-the-counter
market, purchases and sales are transacted directly
with principal market-makers except in those
circumstances where it appears better prices and
executions are available elsewhere.
Subject to the above policy, when two or more brokers
are in a position to offer comparable prices and
executions, preference may be given to brokers that
have sold shares of the fund or have provided
investment research, statistical, and other related
services for the benefit of the fund and/or of other
funds served by Capital Research and Management
Company.
PRINCIPAL UNDERWRITER American Funds Distributors,
Inc., a wholly owned subsidiary of Capital Research and
Management Company, is the principal underwriter of the
fund's shares. American Funds Distributors, Inc. is
located at 333 South Hope Street, Los Angeles, CA
90071, 135 South State College Boulevard, Brea, CA
92621, 8000 IH-10 West, San Antonio, TX 78230, 8332
Woodfield Crossing Boulevard, Indianapolis, IN 46240,
and 5300 Robin Hood Road, Norfolk, VA 23513. Telephone
conversations with American Funds Distributors may be
recorded or monitored for verification, recordkeeping
and quality assurance purposes.
PLAN OF DISTRIBUTION The fund has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
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 fund under the plan may not
exceed 0.25% of its average net assets annually (all of
which may be for service fees).
TRANSFER AGENT American Funds Service Company, 800/421-
0180, a wholly owned subsidiary of Capital Research and
Management Company, is the transfer agent and performs
shareholder service functions. American Funds Service
Company is located at 333 South Hope Street, Los
Angeles, CA 90071, 135 South State College Boulevard,
Brea, CA 92621, 8000 IH-10 West, San Antonio, TX 78230,
8332 Woodfield Crossing Boulevard, Indianapolis, IN
46240, and 5300 Robin Hood Road, Norfolk, VA 23513. It
was paid a fee of $19,172,000 for the fiscal year ended
December 31, 1995. Telephone conversations with
American Funds Service Company may be recorded or
monitored for verification, recordkeeping and quality
assurance purposes.
PURCHASING ALL ORDERS TO PURCHASE SHARES MUST BE MADE THROUGH YOUR
SHARES RETIREMENT PLAN. FOR MORE INFORMATION ABOUT HOW TO PUR-
CHASE SHARES OF THE FUND THROUGH YOUR EMPLOYER'S PLAN
OR LIMITATIONS ON THE AMOUNT THAT MAY BE PURCHASED,
PLEASE CONSULT WITH YOUR EMPLOYER. Shares are
9
<PAGE>
- -------------------------------------------------------------------------------
sold to eligible retirement plans at the net asset
value per share next determined after receipt of an or-
der by the fund or American Funds Service Company. Or-
ders must be received before the close of regular trad-
ing on the New York Stock Exchange in order to receive
that day's net asset value. Plans of organizations with
collective retirement plan assets of $100 million or
more may purchase shares at net asset value. In addi-
tion, any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees or any other plan that
invests at least $1 million in shares of the fund (or
in combination with shares of other funds in The Ameri-
can Funds Group other than the money market funds) may
purchase shares at net asset value; however, a contin-
gent deferred sales charge of 1% is imposed on certain
redemptions made within twelve months of such purchase.
(See "Redeeming Shares--Contingent Deferred Sales
Charge.") Plans may also qualify to purchase shares at
net asset value by completing a statement of intention
to purchase $1 million in fund shares subject to a com-
mission over a maximum of 13 consecutive months. Cer-
tain redemptions of such shares may also be subject to
a contingent deferred sales charge as described above.
(See the statement of additional information.)
The minimum initial investment is $250, except that the
money market funds have a minimum of $1,000 for indi-
vidual 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 de-
ductions and may be reduced or waived for shareholders
of other funds in The American Funds Group.
American Funds Distributors, at its expense (from a
designated percentage of its income), will, during cal-
endar year 1996, provide additional promotional incen-
tives to dealers. Currently these incentives are lim-
ited to the top one hundred dealers who have sold
shares of the fund or other funds in The American Funds
Group. Such incentive payments will be based on a pro
rata share of a qualifying dealer's sales. American
Funds Distributors will, on an annual basis, determine
the advisability of continuing these payments.
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 fund.
Shares of the fund are offered to other shareholders
pursuant to another prospectus at public offering
prices that may include an initial sales charge.
10
<PAGE>
- -------------------------------------------------------------------------------
SHARE PRICE Shares are offered to eligible retirement
plans at the net asset value next determined after the
order is received by the fund or American Funds Service
Company. In the case of orders sent directly to the
fund or American Funds Service Company, an investment
dealer MUST be indicated. Dealers are responsible for
promptly transmitting orders. (See the statement of
additional information under "Purchase of Shares--Price
of Shares.")
The fund's net asset value per share is determined as
of the close of trading (currently 4:00 p.m., New York
time) on each day the New York Stock Exchange is open.
The current value of the fund's total assets, less all
liabilities, is divided by the total number of shares
outstanding and the result, rounded to the nearer cent,
is the net asset value per share.
SHAREHOLDER Subject to any restrictions contained in your plan, you
SERVICES can exchange your shares for shares of other funds in
The American Funds Group which are offered through the
plan at net asset value. In addition, again depending
on 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 fund's statement of additional
information for a description of these and other
services that may be available through your plan. These
services are available only in states where the fund to
be purchased may be legally offered and may be
terminated or modified at any time upon 60 days'
written notice.
REDEEMING Subject to any restrictions imposed by your plan, you
SHARES can sell your shares through the plan any day the New
York Stock Exchange is open. For more information about
how to sell shares of the fund through your retirement
plan, including any charges that may be imposed by the
plan, please consult with your employer.
By contacting Your plan administrator/trustee must
your plan send a letter of instruction
administrator/ specifying the name of the fund, the
trustee 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
11
<PAGE>
- -------------------------------------------------------------------------------
RECEIVED BY THE FUND 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 made
within 12 months of purchase on investments of $1
million or more and on any investment made with no
initial sales charge by any employer-sponsored 403(b)
plan or defined contribution plan qualified under
Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees. The
charge is 1% of the lesser of the value of the shares
redeemed (exclusive of reinvested dividends and capital
gain distributions) or the total cost of such shares.
Shares held for the longest period are assumed to be
redeemed first for purposes of calculating this charge.
The charge is waived for exchanges (except if shares
acquired by exchange were then redeemed within 12
months of the initial purchase); for distributions from
qualified retirement plans and other employee benefit
plans; for redemptions resulting from participant-
directed switches among investment options within a
participant-directed employer-sponsored retirement
plan; and for redemptions in connection with loans made
by qualified retirement plans.
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because the fund's
net asset value fluctuates, reflecting the market value
of the portfolio, the amount you receive for shares
redeemed may be more or less than the amount paid for
them.
Redemption proceeds will not be mailed until sufficient
time has passed to provide reasonable assurance that
checks or drafts (including certified or cashier's
checks) for shares purchased have cleared (which may
take up to 15 calendar days from the purchase date).
Except for delays relating to clearance of checks for
share purchases or in extraordinary circumstances (and
as permissible under the Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
[RECYCLE LOGO] This prospectus has been printed on
recycled paper that meets the
guidelines of the United States
Environmental Protection Agency.
THIS PROSPECTUS RELATES ONLY TO SHARES OF THE FUND
OFFERED WITHOUT A SALES CHARGE TO ELIGIBLE RETIREMENT
PLANS. FOR A PROSPECTUS REGARDING SHARES OF THE FUND
TO BE ACQUIRED OTHERWISE, CONTACT THE SECRETARY OF
THE FUND AT THE ADDRESS INDICATED ON THE FRONT.
12
THE INVESTMENT
COMPANY OF
AMERICA (r)
February 28, 1996
THE INVESTMENT COMPANY OF AMERICA(R)
Profile
333 South Hope Street February 28, 1996
Los Angeles, CA 90071
1. Goal
The fund strives for long-term growth of capital and income through constant
supervision, careful selection and broad diversification.
2. Investment Strategies
The fund's assets are normally invested primarily in common stocks. However,
the fund may also hold other types of securities, such as bonds, when
appropriate.
3. Risks
Stock and bond prices rise and fall. Stocks are subject to certain market
risks. Bonds are subject to credit risk (the possibility that the bond issuer
will default on its obligation) and market risk (when interest rates rise, bond
prices fall and vice versa). Lower rated bonds are subject to greater price
fluctuations and risk of loss than higher rated bonds.
You can lose money by investing in the fund; your investment is not guaranteed.
The likelihood of loss is greater if you intend to invest for a shorter period
of time.
4. Appropriateness
If you are not a long-term investor seeking growth of capital and income, this
fund may not be appropriate for you. Please consult your investment dealer.
5. Fees and Expenses
Shareholder transaction expenses are charges you pay when you buy or sell
shares of a fund. Annual fund operating expenses are paid out of the fund's
assets. The fund's expenses are factored into its share price and
distributions and are not charged directly to shareholder accounts.
Shareholder Transaction Expenses
<TABLE>
<CAPTION>
<S> <C>
Maximum sales charge
on purchases
(as a percentage of offering price) 5.75%
</TABLE>
SALES CHARGES ARE REDUCED OR ELIMINATED FOR LARGER PURCHASES. The fund has no
sales charge on reinvested dividends, and no deferred sales charge or
redemption or exchange fees. A contingent deferred sales charge of 1% applies
on certain redemptions within 12 months following purchases without a sales
charge.
Annual Fund Operating Expenses
(as a percentage of average net assets)
<TABLE>
<CAPTION>
<S> <C>
Management fees 0.26%
12b-1 expenses 0.21%
Other expenses 0.13%
Total fund operating expenses 0.60%
</TABLE>
Example
You would pay the following cumulative expenses on a $1,000 investment,
assuming a 5% annual return. This example should not be considered a
representation of past or future expenses.
<TABLE>
<CAPTION>
<S> <C>
One year $63
Three years 76
Five years 89
Ten years 128
</TABLE>
6. Past Results
Here are the fund's annual total returns for each of the 10 calendar years:
[CHART]
<TABLE>
<CAPTION>
<S> <C>
1986 21.74%
1987 5.44%
1988 13.34%
1989 29.41%
1990 .68%
1991 26.54%
1992 6.99%
1993 11.62%
1994 .16%
1995 30.63%
</TABLE>
[END CHART]
Sales charges have not been deducted from results shown above.
The fund's average annual total return* is 13.09% over its lifetime (January 1,
1934 through December 31, 1995). PAST RESULTS ARE NOT A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
<S> <C>
Average Annual
Total Returns*
One year 23.10%
Five years 13.25%
Ten years 13.45%
30-Day Yield*
2.34%
</TABLE>
* These results were calculated for periods ended December 31, 1995 in
accordance with Securities and Exchange Commission rules which require that the
maximum sales charge be deducted.
7. Investment Adviser
Capital Research and Management Company, one of the world's largest and most
experienced investment advisers, manages the fund, which is a member of The
American Funds Group. Capital Research and Management Company manages this
diversified mutual fund using the multiple portfolio counselor system. Under
this system, the fund's assets are divided into several portions. Each portion
is independently managed by a portfolio counselor or a group of research
professionals, subject to oversight by the investment adviser's investment
committee.
8. Purchases
The fund's shares are sold through investment dealers. Your investment dealer
can help you with your account, or you may call American Funds Service Company
at 800/421-0180 with questions about your account. Generally, the minimum
initial investment is $250.
9. Redemptions
You may redeem shares at no cost at any time through your investment dealer or
by calling American FundsLineR at 800/325-3590. (You will need the fund's
number - 04 - if you use this service.) Transactions will be processed as of
the next close of the New York Stock Exchange.
10. Distributions
Dividends and capital gain distributions are automatically reinvested unless
you notify American Funds Service Company that you would like to invest them in
another of the American Funds or receive payment in cash. Income distributions
are usually made in March, June, September and December. Capital gains, if
any, are usually distributed in December.
11. Other Services
You may exchange your shares for any of the other American Funds or obtain
information about your investment any time by calling American FundsLineR. If
you purchase shares at net asset value through a retirement plan, some or all
of the services or features described may not be available. Contact your
employer for details.
THIS PROFILE CONTAINS KEY INFORMATION ABOUT THE FUND. MORE DETAILS APPEAR IN
THE FUND'S ACCOMPANYING PROSPECTUS.
This profile has been printed on recycled
paper that meets the guidelines of the United
States Environmental Protection Agency.
THE INVESTMENT COMPANY OF AMERICA
PART B
STATEMENT OF ADDITIONAL INFORMATION
FEBRUARY 28, 1996
This document is not a prospectus but should be read in conjunction
with the current Prospectus of The Investment Company of America (the fund or
ICA) dated February 28, 1996. The Prospectus may be obtained from your
investment dealer or financial planner or by writing to the fund 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 fund's
prospectuses. Shareholders who purchase shares at net asset value through
eligible retirement plans should note that not all of the services or features
described below may be available to them, and they should contact their
employer for details.
<TABLE>
<CAPTION>
TABLE OF CONTENTS
ITEM PAGE NO.
<S> <C>
INVESTMENT POLICIES 1
DESCRIPTION OF CERTAIN SECURITIES 2
INVESTMENT RESTRICTIONS 3
FUND DIRECTORS AND OFFICERS 6
ADVISORY BOARD 11
MANAGEMENT 15
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES 17
PURCHASE OF SHARES 19
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES 22
REDEMPTION OF SHARES 22
EXECUTION OF PORTFOLIO TRANSACTIONS 23
GENERAL INFORMATION 23
INVESTMENT RESULTS 25
FINANCIAL STATEMENTS 33
</TABLE>
INVESTMENT POLICIES
FIXED-INCOME SECURITIES -- The fund 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 fund 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 --The fund has the ability to purchase and sell
currencies to facilitate securities transactions and to enter into forward
currency contracts to hedge against changes in currency exchange rates. The
fund purchases or sells currency in connection with settling transactions
involving securities denominated in currencies other than the U.S. dollar.
A forward currency contract is an obligation to purchase or sell a
specific currency at a future date and price, both of which are set at the time
of the contract. For example, the fund might sell a currency on a forward
basis to hedge an anticipated decline in the currency in which a portfolio
security is denominated. Although this strategy could minimize the risk of
loss due to a decline in the value of the hedged currency, it could also limit
any potential gain which might result from an increase in the value of the
currency. The fund does not currently intend to enter into such forward
currency contracts.
INVESTMENT RESTRICTIONS
The fund 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 fund shall make
no investment:
Which involves promotion or business management by the fund;
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 fund, 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 fund to be invested in the securities in any one industry;
If the investment would cause the fund 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 fund's total assets; or
In any security which has not been placed on the fund's Eligible List.
(See the Prospectus)
The fund 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 fund to make such investments (and it has no current intention
of doing so at least for the next 12 months), the fund may invest in the
securities of real estate investment trusts.)
The fund has also adopted other fundamental policies which cannot be
changed. These policies require the fund 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 fund 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 fund 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 fund and which may
be changed by the Board of Directors without shareholder approval, provide that
the fund 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 fund 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 fund (restricted securities), or other securities that are
not readily marketable.
FUND DIRECTORS AND OFFICERS
Directors and Director Compensation
(with their principal occupations during the past five years)#
<TABLE>
<CAPTION>
NAME, ADDRESS AND AGE POSITION WITH PRINCIPAL OCCUPATION(S) DURING AGGREGATE TOTAL COMPENSATION TOTAL NUMBER
REGISTRANT PAST 5 YEARS (POSITIONS WITHIN THE COMPENSATION FROM ALL FUNDS OF FUND
ORGANIZATIONS LISTED MAY HAVE (INCLUDING MANAGED BY CAPITAL BOARDS ON
CHANGED DURING THIS PERIOD) VOLUNTARILY DEFERRED RESEARCH AND WHICH
COMPENSATION/1/) FROM MANAGEMENT COMPANY/2/ DIRECTOR
THE FUND DURING SERVES
FISCAL YEAR ENDED
12/31/95
<S> <C> <C> <C> <C> <C>
Charles H. Black Director Private investor and consultant; $56,050 $102,300 4
525 Alma Real Drive KaiserSteel Corporation, former
Pacific Palisades, CA 90272 Executive Vice President and
Age: 69 Director
John F. Bookout Director Royal Dutch Petroleum, former $45,400 $45,400 1
One Shell Plaza Supervisory Director; Shell Oil
P.O. Box 2463 Company, former President and
Houston, TX 77252 Chief Executive Officer
Age: 73
Ann S. Bowers Director Enterprise 2000, Human resources $52,200 $52,200 1
314 Lytton Avenue, Suite 200 consultant
Palo Alto, CA 94301
Age: 58
Malcolm R. Currie Director Hughes Aircraft Company, $48,200 $48,200 1
28780 Wagon Road Chairman Emeritus
Agoura, CA 91301
Age: 68
+ Jon B. Lovelace, Jr. Chairman of the Board and Director Capital Research and Management None/3/ None/3/
4
333 South Hope Street Company, Vice Chairman of the
Los Angeles, CA 90071-1443 Board and Chairman of the
Age: 69 Executive Committee
John G. McDonald Director The IBJ Professor of Finance, $57,165/4/ $136,300 6
Graduate School of Business Graduate School of Business,
Stanford University Stanford University
Stanford, CA 94305
Age: 58
Bailey Morris-Eck Director Special Advisor, Inter-American Affairs; INTERNATIONAL ECONOMIC INSIGHTS, Editor;
Institute for International Economics, Senior Fellow; THE INDEPENDENT OF LONDON, $48,800 $48,800 1
ARA/SCO Room 3250 Consultant
U.S. Department of State
Washington, D.C. 20520
Age: 51
+ William C. Newton President and Director The Capital Group Partners, L.P., None/3/ None/3/ 1
333 South Hope Street Senior Partner
Los Angeles, CA 90071-1443
Age: 65
+ James W. Ratzlaff Executive Vice President and Director Capital Research and Management None/3/ None/3/
8
P.O. Box 7650 Company, Vice Chairman of the
San Francisco, CA 94120-7650 Board; American Funds Service
Age: 59 Company, Director; The Capital
Group Partners, L.P., Senior Partner
Olin C. Robison Director President of the Salzburg Seminar; $49,500 $72,800 2
The Marble Works Middlebury College, Professor and
2 Maple Street former President
Middlebury, VT 05753
Age: 59
</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 fund 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 and the Anchor Pathway Fund are two other funds managed by Capital
Research and Management Company that serve as underlying investment vehicles
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 fund.
/4/ Since the plan's adoption, the total amount of deferred compensation
accrued by the fund (plus earnings thereon) for participating Directors is as
follows: John B. McDonald ($120,289). Amounts deferred and accumulated
earnings thereon are not funded and are general unsecured liabilities of the
fund 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 fund 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 fund. 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 fund to
any officer or director who is a director or officer of the Investment Adviser
or affiliated companies. As of January 31, 1996 the officers and Directors and
their families as a group, owned beneficially or of record less than 1% of the
outstanding shares of the fund.
OFFICERS
JON B. LOVELACE, JR., Chairman of the Board
WILLIAM C. NEWTON, President
JAMES W. RATZLAFF, Executive Vice President
Fund 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
PATRICIA L. VAUGHN*, Vice President. Capital Research and Management
Company, Vice President - Investment Management Group.
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 fund 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 judgment 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 fund'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>
NAME, ADDRESS AND AGE POSITION WITH PRINCIPAL OCCUPATION(S) DURING AGGREGATE TOTAL COMPENSATION TOTAL NUMBER
REGISTRANT PAST 5 YEARS (POSITIONS WITHIN THE COMPENSATION FROM ALL FUNDS OF FUND
ORGANIZATIONS LISTED MAY HAVE (INCLUDING MANAGED BY CAPITAL BOARDS ON
CHANGED DURING THIS PERIOD) VOLUNTARILY DEFERRED RESEARCH AND WHICH
COMPENSATION/1/) FROM MANAGEMENT COMPANY/2/ ADVISORY BOARD
MEMBER
THE FUND DURING SERVES
FISCAL YEAR ENDED
12/31/95
<S> <C> <C> <C> <C> <C>
Thomas M. Crosby, Jr. Advisory Board member Partner, Faegre & Benson $6,500 $6,500 1
2200 Norwest Center
90 South Seventh Minneapolis, MN
55402
Age: 57
Malcolm Fraser Advisory Former Prime Minister of Australia $6,500 $6,500 1
44th Floor Board member
ANZ Tower
55 Collins Street
Melbourne, Victoria 3000
Australia
Age: 65
Allan E. Gotlieb Advisory Board member Former Canadian Ambassador to $7,500 $7,500 1
P.O. Box 85 the United States
Toronto, Ontario
M5L 1B9
Canada
Age: 68
William H. Kling Advisory Board member Minnesota Public Radio, President; $7,500 $68,400 5
45 East Seventh Street Greenspring Co., President;
St. Paul, MN 55101 American Public Radio (now Public
Age: 53 Radio International), former
President
Robert J. O'Neill Advisory Board member Chichele Professor of the History of $7,500 $39,400
3
St. Mary's Close War and Fellow of All Souls
27 Church Green College
Witney, OXON
OX8 6AZ
United Kingdom
Age: 59
Norman R. Weldon Advisory Board member Corvita Corporation, President and $7,500 $31,700 3
8210 N.W. 27th Street Director; Cordis Corporation,
Miami, FL 33122 former President and Director
Age: 61
</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 fund 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 Advisory Board
member.
/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 and the Anchor Pathway Fund are two other funds managed by Capital
Research and Management Company that serve as underlying investment vehicles
for certain variable insurance contracts.
/3/ Since the plan's adoption, the total amount of deferred compensation
accrued by the fund (plus earnings thereon) for participating Advisory Board
members is as follows: William H. Kling ($17,592). Amounts deferred and
accumulated earnings thereon are not funded and are general unsecured
liabilities of the fund until paid to the Advisory Board member.
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 fund and the Investment Adviser
will continue until April 30, 1997, 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 fund
for its acts or omissions in performance of its obligations to the fund 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 fund. The fund 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 fund'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 fund.
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 to $21
billion, plus 0.235% on net assets over $21 billion to $34 billion, plus 0.231%
on net assets in excess of $34 billion. The Agreement provides that the
Investment Adviser shall pay the fund an 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
fund's net assets for the fiscal year up to $30 million, plus 1% of the average
value of the fund's net assets for the fiscal year in excess of $30 million, or
(ii) 25% of the gross investment income of the fund. 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, 1995, 1994, and 1993, Investment
Adviser's total fees amounted to $58,981,000, $50,698,000, and $47,340,000,
respectively.
PRINCIPAL UNDERWRITER - American Funds Distributors, Inc. (the Principal
Underwriter) is the principal underwriter of the fund's shares. The fund has
adopted a Plan of Distribution (the Plan), pursuant to rule 12b-1 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 fund shares
during the year ended December 31, 1995 amounted to $14,773,000 after allowance
of $80,935,000 to dealers. During the years ended December 31, 1994 and 1993
the Principal Underwriter retained $13,495,000 and $21,580,000,
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
fund and who have no direct or indirect financial interest in the operation of
the Plan or the Principal Underwriting Agreement, and the Plan has been
approved by the vote of a majority of the outstanding voting securities of the
fund. The officers and directors who are "interested persons" of the fund may
be considered to have a direct or indirect financial interest in the operation
of the Plan due to present or past affiliations with the investment adviser and
related companies. Potential benefits of the Plan to the fund are improved
shareholder services, savings to the fund in transfer agency costs, savings to
the fund in advisory fees and other expenses, benefits to the investment
process from growth or stability of assets and maintenance of a financially
healthy management organization. The selection and nomination of Directors who
are not "interested persons" of the fund 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 fund 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 fund shares, provided the fund's Board of Directors has approved
the category of expenses for which payment is being made. These include
service fees for qualified dealers and dealer commissions and wholesaler
compensation on sales of shares exceeding $1 million (including purchases by
any defined contribution plan qualified under Section 401(a) of the Internal
Revenue Code including a "401(k) plan with 200 or more eligible employees).
Only expenses incurred during the preceding 12 months and accrued while the
Plan is in effect may be paid by the fund. During the year ended December 31,
1995, the fund paid or accrued $46,876,000 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 fund and alternate means for continuing
the servicing of such shareholders would be sought. In such event, changes in
the operation of the fund might occur and shareholders serviced by such bank
might no longer be able to avail themselves of any automatic investment or
other services then being provided by such bank. It is not expected that
shareholders would suffer adverse financial consequences as a result of any of
these occurrences.
In addition, state securities laws on this issue may differ from the
interpretations of federal law expressed herein and certain banks and financial
institutions may be required to be registered as dealers pursuant to state law.
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES
The fund intends to meet all the requirements and has elected the tax
status of a "regulated investment company" under the provisions of Subchapter M
of the Internal Revenue Code of 1986 (the Code). Under Subchapter M, if the
fund distributes within specified times at least 90% of its investment company
taxable income, it will be taxed only on that portion of such investment
company taxable income which it retains.
To qualify, the fund must (a) derive at least 90% of its gross income
from dividends, interest, certain payments with respect to securities loans and
gains from the sale or other disposition of stock, securities, currencies or
other income derived with respect to its business of investing in such stock,
securities or currencies; (b) derive less than 30% of its gross income from the
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 fund'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 fund's assets and 10% of the
outstanding voting securities of such issuer, and (ii) not more than 25% of the
value of its assets is invested in the securities of any one issuer (other than
U.S. Government securities or the securities of other regulated investment
companies), or in two or more issuers which the fund controls and which are
engaged in the same or similar trades or businesses or related trades or
businesses.
Under the Code, a nondeductible excise tax of 4% is imposed on the
excess of a regulated investment company's "required distribution" for the
calendar year ending within the regulated investment company's taxable year
over the "distributed amount" for such calendar year. The term "required
distribution" means the sum of (i) 98% of ordinary income (generally net
investment income) for the calendar year, (ii) 98% of capital gains (both
long-term and short-term) for the one-year period ending on October 31 (as
though the one-year period ending on October 31 were the regulated investment
company's taxable year), and (iii) the sum of any untaxed, undistributed net
investment income and net capital gains of the regulated investment company for
prior periods. The term "distributed amount" generally means the sum of (i)
amounts actually distributed by the fund from its current year's ordinary
income and net capital gain income and (ii) any amount on which the fund pays
income tax during the periods described above. The fund intends, to the extent
practicable, to meet these distribution requirements to minimize or avoid the
excise tax liability. Distributions or investment company taxable income,
including short-term capital gains, generally are taxable to the shareholders
as ordinary income, regardless of whether such distributions are paid in cash
or invested in additional shares of the fund's stock.
The fund also intends to continue distributing to shareholders all of
the excess of net long-term capital gain over net short-term capital loss on
sales of securities. A capital gain distribution, whether paid in cash or
re-invested in shares, is taxable to shareholders as long-term capital gains,
regardless of the length a shareholder has held his shares or whether such gain
was realized by the fund before the shareholder acquired such shares and was
reflected in the price paid for the shares. If the net asset value of shares of
the fund should, by reason of a distribution of realized capital gains, be
reduced below a shareholder's cost, such distribution would be a taxable
dividend to the shareholder, even though the distribution is economically a
return of capital.
Dividends generally are taxable to shareholders at the time they are
paid. However, dividends declared in October, November and December and made
payable to shareholders of record in such a month are treated as paid and are
thereby taxable as of December 31, provided that the fund pays the dividend no
later than the end of January of the following year.
If a shareholder exchanges or otherwise disposes of shares of the fund
within 90 days of having acquired such shares, and if, as a result of having
acquired those shares, the shareholder subsequently pays a reduced sales charge
for shares of the fund, or of a different fund, the sales charge previously
incurred in acquiring the fund's shares shall not be taken into account (to the
extent such previous sales charges do not exceed the reduction in sales
charges) for the purpose of determining the amount of gain or loss on the
exchange, but will be treated as having been incurred in the acquisition of
such other shares. Also, any loss realized on a redemption or exchange of
shares of a fund will be disallowed to the extent substantially identical
shares are reacquired within the 61-day period beginning 30 days before and
ending 30 days after the shares are disposed of.
Under the Code, distributions of net investment income by the fund to
a shareholder who, as to the U.S., is a nonresident alien individual,
nonresident alien fiduciary of a trust or estate, foreign corporation or
foreign partnership (a foreign shareholder) will be subject to U.S. withholding
tax (at a rate of 30% or lower treaty rate). Withholding will not apply if a
dividend paid by the fund to a foreign shareholder is "effectively connected"
with a U.S. trade or business, in which case the reporting and withholding
requirements applicable to U.S. citizens, U.S. residents or domestic
corporations will apply. Distributions of net long-term capital gains 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%. However, to eliminate the
benefit of lower marginal corporate income tax rates, corporations which have
taxable income in excess of $100,000 for a taxable year will be required to pay
an additional amount of tax of up to $11,750 and corporations which have
taxable income in excess of $15,000,000 for a taxable year will be required to
pay an additional amount of tax of up to $100,000. Naturally, the amount of
tax payable by a shareholder with respect to either distributions from the
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 fund 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 fund after the
time of the determination of the net asset value will be entered at the next
calculated offering price. Prices which appear in the newspaper are not always
indicative of prices at which you will be purchasing and redeeming shares of
the fund since such prices generally reflect the previous day's closing price
whereas purchases and redemptions are made at the next calculated price.
The price you pay for shares, the offering price, is based on the net
asset value per share which is calculated once daily at the close of trading
(currently 4:00 p.m., New York Time) each day the New York Stock Exchange is
open. The New York Stock Exchange is currently closed on weekends and on the
following holidays: New Year's Day, Presidents' Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving and Christmas Day. The net asset
value per share is determined as follows:
1. Stocks, and convertible bonds and debentures, traded on a national
securities exchange (or reported on the NASDAQ national market) and securities
traded in the over-the- counter market are stated at the last reported sales
price on the day of valuation; other securities and securities for which no
sale was reported on that date, are stated at the last quoted bid price.
Non-convertible bonds and debentures, and other long-term debt
securities normally are valued at prices obtained 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.
U.S. Treasury bills, and other short-term obligations issued or
guaranteed by the U.S. Government, its agencies or instrumentalities,
certificates of deposit issued by banks, corporate short-term notes and other
short-term investments with original or remaining maturities in excess of 60
days are valued at the mean of representative quoted bid and asked prices for
such securities or, if such prices are not available, for securities of
comparable maturity, quality and type. Short-term securities with 60 days or
less to maturity are amortized to maturity based on their cost to the fund if
acquired within 60 days of maturity or, if already held by the fund on the 60th
day, based on the value determined on the 61st day. Other securities are
valued on the basis of last sale or bid prices in what is, in the opinion of
the Investment 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 Valuation Committee of 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 fund. The Principal Underwriter will not knowingly sell shares of the fund
directly or indirectly to any person or entity, where, after the sale, such
person, or entity would own beneficially directly or indirectly more than 3% of
the outstanding shares of the fund without the consent of a majority of the
fund's Directors.
STATEMENT OF INTENTION - The reduced sales charges and offering prices set
forth in the Prospectus apply to purchases of $50,000 or more made within a
13-month period subject to the following statement of intention (the Statement)
terms. The Statement is not a binding obligation to purchase the indicated
amount. When a shareholder elects to utilize 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 45 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. Existing holdings
eligible for rights of accumulation (see the Prospectus and account
application) may be credited toward satisfying the Statement. During the
Statement period reinvested dividends and capital gains distributions,
investments in money market funds, and investments made under a right of
reinstatement will not be credited toward satisfying the Statement.
In the case of purchase orders by the trustees of certain retirement
plans by payroll deduction, the sales charge for the investments made during
the 13-month period will be handled as follows: The regular monthly payroll
deduction investment will be multiplied by 13 and then multiplied by 1.5. The
current value of existing American Funds investments (other than money market
fund investments) and any rollovers or transfers reasonably anticipated to be
invested in non-money market American Funds during the 13-month period are
added to the figure determined above. The sum is that statement amount and
applicable breakpoint level. 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.
Shareholders purchasing shares at a reduced sales charge under a
Statement indicate their acceptance of these terms with their first
purchase.
DEALER COMMISSIONS - The following commissions will be paid to dealers who
initiate and are responsible for purchases of $1 million or more, for purchases
by any employer-sponsored 403(b) plan or defined contribution plan qualified
under Section 401(a) of the Internal Revenue Code including a "401(k) plan with
200 or more eligible employees, and for purchases made at net asset value by
certain retirement plans of organizations with collective retirement plan
assets of $100 million or more: 1.00% on amounts of $1 million to $2 million,
0.80% on amounts over $2 million to $3 million, 0.50% on amounts over $3
million to $50 million, 0.25% on amounts over $50 million to $100 million, and
0.15% on amounts over $100 million. The level of dealer commissions will be
determined based on sales made over a 12-month period commencing from the date
of the first sale at net asset value. See "The American Funds Shareholder
Guide" in the fund's Prospectus for more information.
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
AUTOMATIC INVESTMENT PLAN - The automatic investment plan enables
shareholders to make regular monthly or quarterly investments in shares through
automatic charges to their bank accounts. With shareholder authorization and
bank approval, the Transfer Agent will automatically charge the bank account
for the amount specified ($50 minimum), which will be automatically invested in
shares at the offering price on or about the 10th day of the month (or on or
about the 15th day of the month in the case of accounts for retirement plans
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 at least quarterly. 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 fund's Certificate of Incorporation permits the fund to
direct the Transfer Agent to redeem the Common shares owned by any holder of
capital stock of the fund 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 fund's current registration statement under
the 1940 Act, and subject to such further terms and conditions as the Board of
Directors of the fund 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 fund may
be executed as part of concurrent authorizations to purchase or sell the same
security for other funds served by the Investment Adviser, or for trusts or
other accounts served by affiliated companies of the Investment Adviser.
Although such concurrent authorizations potentially could be either
advantageous or disadvantageous to the fund, they are effected only when the
Investment Adviser believes that to do so is in the interest of the fund. When
such concurrent authorizations occur, the objective is to allocate the
executions in an equitable manner. The fund will not pay a mark-up for
research in principal transactions.
As of the end of the fund'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., $15,722,000 (equity); Bankers Trust New
York Corp., $69,825 (equity); General Electric Co., $96,876,000 (equity); J.P.
Morgan & Co. Inc., $160,500,000 (equity); American Express Credit Corp.,
$67,813 (debt); and General Electric Capital Corp., $122,830.
Brokerage commissions paid on portfolio transactions, including dealer
concessions on underwritings, for the years ended December 31, 1995, 1994, and
1993 amounted to $13,534,000, $8,999,000 and $11,089,000, respectively.
GENERAL INFORMATION
CUSTODIAN OF ASSETS - Securities and cash owned by the fund, including
proceeds from the sale of shares of the fund and of securities in the fund's
portfolio, are held by The Chase Manhattan Bank, N.A., One Chase Manhattan
Plaza, New York, NY 10081, as Custodian. 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 fund'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 fund'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 fund has made an undertaking, at the request of the
staff of the Securities and Exchange Commission, to apply the provisions of
section 16(c) of the 1940 Act with respect to the removal of directors as
though the fund were a common-law trust. Accordingly, the Directors of the
fund shall promptly call a meeting of shareholders for the purpose of voting
upon the question of removal of any director when requested in writing to do so
by the record holders of not less than 10% of the outstanding shares.
REPORTS TO SHAREHOLDERS - The fund'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 fund'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 FUND - On December 31, 1995, there were outstanding
38,378 option warrants, unlimited in time, to purchase shares of the fund. As
originally issued in 1933 in exchange for shares of a predecessor trust, each
warrant permitted the purchase of one share of the fund 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 fund'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 fund.
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, 1995
<S> <C>
Net asset value and redemption price per share $21.61
(Net assets divided by shares outstanding)
Maximum offering price per share $22.93
(100/94.25 of net asset value per share, which
takes into account the fund's current maximum
sales charge)
</TABLE>
INVESTMENT RESULTS
The fund's yield is 2.34% based on a 30-day (or one month) period
ended December 31, 1995, computed by dividing the net investment income per
share earned during the period by the maximum offering price per share on the
last day of the period, according to the following formula:
YIELD = 2[( a-b/cd + 1)/6/ -1]
Where: a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the period that
were entitled to receive dividends.
d = the maximum offering price per share on the last day of the period.
The fund's total return over the past year and average annual total
returns for the five- and ten-year periods ending on December 31, 1995 were
23.10%, 13.25% and 13.45%, 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 fund 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 fund may also calculate a distribution rate on a taxable and tax
equivalent basis. The distribution rate is computed by dividing the dividends
paid by the fund over the last 12 months by the sum of the month-end net asset
value or maximum offering price and the capital gains paid over the last 12
months. The distribution rate may differ from the yield.
The fund may include information on its investment results and/or
comparisons of its investment results to various unmanaged indices (such as The
Dow Jones Average of 30 Industrial Stocks and The Standard & Poor's 500 Stock
Composite Index) or results of other mutual funds or investment or savings
vehicles in advertisements or in reports furnished to present or prospective
shareholders.
The fund may 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 fund 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 January 1, 1966 (121 in all), those funds
have had better total returns than the Standard & Poor's 500 Composite Stock
Index in 94 of the 115 periods.
Note that past results are not an indication of future investment results.
Also, the 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 fund's Prospectus. The fund's results will vary from time to time
depending upon market conditions, the composition of the fund's portfolio and
operating expenses of the fund, so that any investment results reported by the
fund should not be considered representative of what an investment in the fund
may earn in any future period. These factors and possible differences in
calculation methods should be considered when comparing the fund's investment
results with those published for other mutual funds, other investment vehicles
and unmanaged indices. The fund's results also should be considered relative
to the risks associated with the fund's investment objectives and
policies.
The investment results set forth below were calculated as described in the
fund'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>
1986 - 1995 +253% +360% +299% + 69%
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
amounts over the past 10, 20, 30, and 40 years:
<S> <C> <C> <C>
10 years 20 years 30 years 40 years
(1/1/86 - (1/1/76 - (1/1/66 - (1/1/56 -
12/31/95) 12/31/95) 12/31/95) 12/31/95)
$ 3,533 $ 17,044 $ 29,809 $ 97,402
</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
(1/1/86 - (1/1/76 - (1/1/66 - (1/1/56 -
12/31/95) 12/31/95) 12/31/95) 12/31/95)
$ 12,099 $ 67,543 $ 184,617 $ 546,242
</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
(1/1/91 - (1/1/86 - (1/1/76 - (1/1/66 -
12/31/95) 12/31/95) 12/31/95) 12/31/95)
$ 14,351 $ 41,331 $ 236,759 $ 680,867
</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, 1995
Value
<S> <C> <C>
1 1995 $ 12,310
2 1994 - 1995 12,332
3 1993 - 1995 13,764
4 1992 - 1995 14,722
5 1991 - 1995 18,628
6 1990 - 1995 18,760
7 1989 - 1995 24,276
8 1988 - 1995 27,513
9 1987 - 1995 29,020
10 1986 - 1995 35,327
11 1985 - 1995 47,113
12 1984 - 1995 50,238
13 1983 - 1995 60,394
14 1982 - 1995 80,752
15 1981 - 1995 81,476
16 1980 - 1995 98,774
17 1979 - 1995 117,756
18 1978 - 1995 134,985
19 1977 - 1995 131,519
20 1976 - 1995 170,439
21 1975 - 1995 230,928
22 1974 - 1995 189,418
23 1973 - 1995 157,587
24 1972 - 1995 182,563
25 1971 - 1995 213,672
26 1970 - 1995 219,137
27 1969 - 1995 195,788
28 1968 - 1995 228,992
29 1967 - 1995 295,147
30 1966 - 1995 298,082
</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, 1995)
<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
</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>
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
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 57,286 2,180,610
1995 450,124 20,578,696/b/ 61,704 2,779,658/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 $4,963,345 in
reinvested dividends) was $4,973,345. Total value includes reinvested
dividends and capital gain distributions totaling $6,542,011 taken in shares in
the years 1936-1995.
/c/ Capital Value includes capital gain distributions taken in shares (total
$1,230,159) but does not include the amount of dividends received in cash
($933,537).
THE INVESTMENT COMPANY OF AMERICA
INVESTMENT PORTFOLIO, December 31,1995
<TABLE>
<CAPTION>
<S> <C> <C> <C>
EQUITY-TYPE SECURITIES Market Percent
- ------------------------------------------ Number of Value of Net
ENERGY Shares (millions) Assets
- ------------------------------------------ --------- --------- ------
Energy Sources-6.78%
Amoco Corp. 3,050,000 $219.219 .85
Atlantic Richfield Co. 375,000 41.531 .16
British Petroleum Co. PLC (American Depositary
Receipts) 500,000 51.063 .20
Chevron Corp. 1,850,000 97.125 .38
Mobil Corp. 400,000 44.800 .17
Murphy Oil Corp. 2,075,000 86.113 .34
Phillips Petroleum Co. 6,000,000 204.750 .80
Royal Dutch Petroleum Co.
(New York Registered Shares) 3,655,000 515.811 2.01
Societe Nationale Elf Aquitaine (American
Depositary Receipts) 514,741 18.917 .07
Texaco Inc. 1,050,000 82.425 .32
TOTAL, Class B 1,329,458 89.570
TOTAL, Class B (American Depositary Receipts) 1,350,000 45.900 .53
Unocal Corp. 4,400,000 128.150
Unocal Corp., $3.50 convertible preferred 415,000 22.721 .59
USX-Marathon Group 4,700,000 91.650 .36
Utilities: Electric & Gas-0.98%
American Electric Power Company, Inc. 600,000 24.300 .09
Entergy Corp. 3,400,000 99.450 .39
Houston Industries Inc. 1,500,000 36.375 .14
Long Island Lighting Co. 5,240,000 85.805 .33
Pacific Gas and Electric Co. 239,100 6.784 .03
--------- ---------
1,992.459 7.76
--------- ---------
- ------------------------------------------
MATERIALS
- ------------------------------------------
Chemicals-1.93%
E.I. du Pont de Nemours and Co. 5,250,000 366.844 1.43
Eastman Chemical Co. 400,000 25.050 .10
Great Lakes Chemical Corp. 250,000 18.000 .07
Imperial Chemical Industries PLC
(American Depositary Receipts) 100,000 4.675 .02
Monsanto Co. 658,800 80.703 .31
Forest Products & Paper-1.31%
Georgia-Pacific Corp. 1,650,000 113.231 .44
International Paper Co. 800,000 30.300 .12
Louisiana-Pacific Corp. 2,500,000 60.625 .24
Weyerhaeuser Co. 3,050,000 131.913 .51
Metals: Nonferrous-1.54%
Alcan Aluminium Ltd. 1,000,000 31.125 .12
Aluminum Co. of America 3,233,500 170.971 .67
Freeport-McMoRan Copper & Gold Inc., Class B 1,200,000 33.750 .13
Inco Ltd. 2,046,000 68.030 .26
Phelps Dodge Corp. 600,000 37.350 .15
Western Mining Corp. Holdings Ltd. 8,305,894 53.262 .21
Metals: Steel-0.56%
Bethlehem Steel Corp./1/ 4,100,000 57.400 .22
USX-U.S. Steel Group 2,900,000 89.175 .34
--------- ------
1,372.404 5.34
--------- ------
- ------------------------------------------
CAPITAL EQUIPMENT
- ------------------------------------------
Aerospace & Military Technology-2.43%
Boeing Co. 1,950,000 152.831 .60
General Motors Corp., Class H 3,354,200 164.775 .64
Litton Industries, Inc./1/ 650,000 28.925 .11
Northrop Grumman Corp. 1,000,000 64.000 .25
Raytheon Co. 1,900,000 89.775 .35
Sundstrand Corp. 875,000 61.578 .24
United Technologies Corp. 660,000 62.618 .24
Data Processing & Reproduction-2.78%
Apple Computer, Inc. 600,000 19.125 .07
Cisco Systems, Inc./1/ 600,000 44.775 .17
Hewlett-Packard Co. 1,896,000 158.790 .62
International Business Machines Corp. 2,175,000 199.556 .78
Oracle Corp./1/ 2,250,000 95.344 .37
Tandem Computers Inc./1/ 1,225,000 13.016 .05
Unisys Corp., $3.75 convertible preferred,
Series A 350,000 9.406 .04
Xerox Corp. 1,270,000 173.990 .68
Electrical & Electronic-0.38%
General Electric Co. 1,345,500 96.876 .38
Electronic Components-1.13%
Intel Corp. 2,000,000 113.500 .44
Motorola, Inc. 500,000 28.500 .11
Texas Instruments Inc. 2,870,000 148.522 .58
Energy Equipment-1.09%
Schlumberger Ltd. 3,450,000 238.913 .93
Western Atlas Inc./1/ 800,000 40.400 .16
Industrial Components-0.51%
Dana Corp. 1,421,500 41.579 .16
Goodyear Tire & Rubber Co. 830,000 37.661 .15
Rockwell International Corp. 1,000,000 52.875 .20
Machinery & Engineering-3.54%
Caterpillar Inc. 6,540,000 384.225 1.50
Cummins Engine Co., Inc. 1,041,800 38.547 .15
Deere & Co. 8,250,000 290.812 1.13
Ingersoll-Rand Co. 700,000 24.587 .10
Mannesmann AG 420,000 133.529 .52
Parker Hannifin Corp. 1,100,000 37.675 .14
--------- ------
3,046.705 11.86
--------- ------
- ------------------------------------------
CONSUMER GOODS
- ------------------------------------------
Automobiles-2.13%
Chrysler Corp. 1,000,000 55.375 .22
Daimler-Benz AG 110,000 55.287 .22
Ford Motor Co., Class A 8,243,316 239.056 .93
General Motors Corp. 3,025,000 159.947 .62
Toyota Motor Corp. 1,760,000 37.284 .14
Beverages & Tobacco-5.22%
Anheuser-Busch Companies, Inc. 1,031,500 68.981 .27
PepsiCo, Inc. 2,450,000 136.894 .53
Philip Morris Companies Inc. 9,200,000 832.600 3.24
RJR Nabisco Holdings Corp. 4,600,000 142.025 .55
Seagram Co. Ltd. 4,600,000 159.275 .63
Food & Household Products-1.80%
Archer Daniels Midland Co. 2,900,000 52.200 .20
ConAgra, Inc. 1,900,000 78.375 .31
CPC International Inc. 980,000 67.252 .26
General Mills, Inc. 500,000 28.875 .11
H.J. Heinz Co. 750,000 24.844 .10
Nestle SA 140,000 154.667 .60
Procter & Gamble Co. 550,000 45.650 .18
Ralston Purina Co. 152,800 9.531 .04
Health & Personal Care-6.75%
Abbott Laboratories 1,750,000 73.063 .28
American Home Products Corp. 1,350,000 130.950 .51
Avon Products, Inc. 950,000 71.606 .28
Bristol-Myers Squibb Co. 1,655,000 142.123 .55
Johnson & Johnson 1,140,000 97.613 .38
Kimberly-Clark Corp. 604,100 49.989 .19
Eli Lilly and Co. 2,900,000 163.125 .64
Merck & Co., Inc. 5,335,000 350.776 1.37
Pharmacia & Upjohn Inc. 2,247,500 87.091 .34
Pfizer Inc. 4,600,000 289.800 1.13
Schering-Plough Corp. 1,846,000 101.068 .39
Warner-Lambert Co. 1,800,000 174.825 .69
Recreation & Other Consumer Products-0.47%
Duracell International Inc. 1,800,000 93.150 .36
Eastman Kodak Co. 400,000 26.800 .11
Textiles & Apparel-0.05%
VF Corp. 300,000 15.825 .05
--------- ------
4,215.922 16.42
--------- ------
- ------------------------------------------
SERVICES
- ------------------------------------------
Broadcasting & Publishing-4.99%
Capital Cities/ABC, Inc. 1,615,000 199.251 .78
Gannett Co., Inc. 480,200 29.472 .11
New York Times Co., Class A 2,250,000 66.656 .26
Tele-Communications, Inc., Series A,
Liberty Media Group/1/ 3,060,225 82.243 .32
Tele-Communications, Inc., Series A,
TCI Group/1/ 12,240,900 243.288 .95
Time Warner Inc. 9,081,000 343.943 1.34
Times Mirror Co., Series A 700,000 23.713
Times Mirror Co., $1.374 preferred equity
redemption cumulative stock, Series B 50,863 1.303 .10
Tribune Co. 350,000 21.394 .08
U S WEST Media Group/1/ 2,600,000 49.400 .19
Viacom Inc., Class B1 4,690,000 222.189 .86
Business & Public Services-3.59%
Browning-Ferris Industries, Inc. 500,000 14.750 .06
Columbia/HCA Healthcare Corp. 1,000,000 50.750 .20
Dun & Bradstreet Corp. 1,350,000 87.413 .34
Federal Express Corp./1/ 1,250,000 92.344 .36
Interpublic Group of Companies, Inc. 2,950,000 127.956 .50
Pitney Bowes Inc. 2,020,000 94.940 .37
United HealthCare Corp. 3,000,000 196.500 .77
WMX Technologies, Inc. 8,550,000 255.431 .99
Leisure & Tourism-1.46%
Darden Restaurants, Inc. 1,000,000 11.875 .05
Walt Disney Co. 4,304,600 253.971 .99
McDonald's Corp. 2,400,000 108.300 .42
Merchandising-2.48%
Gap, Inc. 1,954,200 82.076 .32
May Department Stores Co. 600,000 25.350 .10
Melville Corp. 200,000 6.150 .02
J.C. Penney Co., Inc. 500,000 23.812 .09
Tandy Corp. 416,532 17.286 .07
Toys 'R' Us, Inc./1/ 3,450,000 75.038 .29
Wal-Mart Stores, Inc. 18,232,000 407.941 1.59
Telecommunications-5.44%
AirTouch Communications1 3,650,000 103.112 .40
Ameritech Corp. 1,900,000 112.100 .44
AT&T Corp. 4,895,000 316.951 1.23
GTE Corp. 1,250,000 55.000 .21
MCI Communications Corp. 9,325,000 243.616 .95
Pacific Telesis Group 3,900,000 131.137 .51
SBC Communications Inc. 300,000 17.250 .07
Sprint Corp. 425,000 16.947 .07
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts) 3,057,400 97.455 .38
U S WEST Communications Group 2,700,000 96.525 .38
Vodafone Group PLC (American Depositary Receipts) 5,848,000 206.142 .80
Transportation: Airlines-0.40%
AMR Corp./1/ 900,000 66.825 .26
Delta Air Lines, Inc. 395,000 29.181 .11
Delta Air Lines, Inc., $3.50 convertible
preferred, Class C 100,000 5.937 .03
Transportation: Rail & Road-1.44%
Burlington Northern Santa Fe Corp. 250,000 19.500 .08
Conrail, Inc. 950,000 66.500 .26
CSX Corp. 2,500,000 114.063 .44
Norfolk Southern Corp. 300,000 23.812 .09
Union Pacific Corp. 2,225,000 146.850 .57
--------- ------
5,083.638 19.80
--------- ------
- ------------------------------------------
FINANCE
- ------------------------------------------
Banking-8.80%
H.F. Ahmanson & Co. 2,500,000 66.250 .26
Banc One Corp. 8,772,500 331.162 1.29
BankAmerica Corp. 3,850,000 249.288 .97
Bankers Trust New York Corp. 1,050,000 69.825 .27
Chase Manhattan Corp. 1,250,000 75.781 .30
Chemical Banking Corp. 2,500,000 146.875 .57
Citicorp 1,100,000 73.975 .29
Citicorp, $5.375 convertible preferred,
Series 13 300,000 54.675 .21
Comerica Inc. 1,800,000 72.225 .28
Deutsche Bank AG 497,650 23.547 .09
First Chicago NBD Corp. 2,353,000 92.943 .36
First Fidelity Bancorporation 1,350,000 101.756 .40
First Interstate Bancorp 1,375,000 187.687 .73
First Union Corp. 2,150,000 119.594 .47
Fleet Financial Group, Inc. 970,000 39.528 .15
Great Western Financial Corp. 2,500,000 63.750 .25
J.P. Morgan & Co. Inc. 2,000,000 160.500 .63
National City Corp. 1,000,000 33.125 .13
NationsBank Corp. 1,200,000 83.550 .33
PNC Bank Corp. 3,642,000 117.455 .46
SunTrust Banks, Inc. 600,000 41.100 .16
U.S. Bancorp 400,000 13.450 .05
Wachovia Corp. 900,000 41.175 .15
Financial Services-4.12%
American Express Co. 380,000 15.722 .06
Federal Home Loan Mortgage Corp. 2,000,000 167.000 .65
Federal National Mortgage Assn. 5,760,000 714.960 2.78
Student Loan Marketing Assn. 2,450,000 161.394 .63
Insurance-3.03%
Aetna Life and Casualty Co. 400,000 27.700 .11
Allstate Corp. 3,091,110 127.122 .50
American General Corp. 910,000 31.736 .12
American International Group, Inc. 1,822,500 168.581 .66
CIGNA Corp. 550,000 56.788 .22
General Re Corp. 567,800 88.009 .34
Lincoln National Corp. 1,050,000 56.437 .22
SAFECO Corp. 2,850,000 98.325 .38
St. Paul Companies, Inc. 2,240,000 124.600 .48
--------- ------
4,097.590 15.95
--------- ------
- ------------------------------------------
OTHER
- ------------------------------------------
Multi-Industry-2.46%
AlliedSignal Inc. 300,000 14.250 .06
Canadian Pacific Ltd. 1,500,000 27.188 .11
Hanson PLC 3,525,477 10.539
Hanson PLC (American Depositary Receipts) 9,000,000 137.250 .57
Minnesota Mining and Manufacturing Co. 3,570,000 236.512 .92
Tenneco Inc. 2,925,000 145.153 .57
Textron Inc. 891,700 60.190 .23
Gold Mines -0.56%
Barrick Gold Corp. 2,000,000 52.750 .21
Newmont Mining Corp. 2,000,000 90.500 .35
Miscellaneous-1.77%
Equity-type securities in initial period of
acquisition 453.054 1.77
--------- ------
1,227.386 4.79
--------- ------
Total Equity-Type Securities (cost: $13,558.170
million) 21,036.104 81.92
--------- ------
Principal
- ------------------------------------------ Amount
BONDS & NOTES (millions)
- ------------------------------------------ ---------
U.S. Treasuries-6.44%
8.00% January 1997 $175.000 179.785 .70
6.875% April 1997 170.000 173.505 .68
6.375% June 1997 230.000 233.809 .91
5.75% October 1997 300.000 302.907 1.18
8.875% November 1997 25.000 26.609 .10
4.75% August 1998 300.000 296.484 1.15
5.125% November 1998 300.000 299.016 1.16
8.875% November 1998 25.000 27.371 .11
11.625% November 2004 30.000 42.459 .17
7.125% February 2023 62.000 70.893 .28
--------- ------
Total Bonds & Notes (cost: $1,633.233 million) 1,652.838 6.44
--------- ------
Total Investment Securities (cost: $15,191.403
million) 22,688.942 88.36
--------- ------
- ------------------------------------------
SHORT-TERM SECURITIES
- ------------------------------------------
U.S. Treasury Short-Term Securities-3.19%
4.375%-7.50% due 1/31-11/15/96 825.000 819.983 3.19
--------- ------
Corporate Short-Term Notes-6.67%
American Express Credit Corp. 5.47%-5.55%
due 2/8-3/18/96 68.500 67.813 .26
Anheuser-Busch Companies, Inc. 5.55%-5.66%
due 1/5-1/26/96 54.700 54.561 .21
AT&T Corp. 5.40%-5.75% due 1/8-4/4/96 137.100 136.179 .53
BellSouth Telecommunications, Inc. 5.50%-5.70%
due 1/11-2/13/96 40.000 39.833 .16
Chevron Oil Finance Co. 5.63%-5.77%
due 1/30-2/12/96 125.200 124.457 .48
Coca-Cola Co. 5.52%-5.67% due 1/19-2/2/96 81.300 80.971 .32
E.I. du Pont De Nemours and Co. 5.64%-5.73%
due 1/3-1/26/96 96.600 96.299 .38
Emerson Electric Co. 5.66% due 1/25-1/30/96 56.000 55.767 .22
Ford Motor Credit Corp. 5.62%-5.72% due 1/3-2/16/96 154.400 153.761 .60
General Electric Capital Corp. 5.50%-5.80%
due 1/2-2/26/96 123.400 122.830 .48
H.J. Heinz Co. 5.70%-5.75% due 1/4-1/31/96 89.500 89.205 .35
Hewlett-Packard Co. 5.42%-5.62% due 2/13-3/14/96 101.800 100.885 .39
Eli Lilly and Co. 5.50%-5.67% due 1/25-2/27/96 45.000 44.672 .17
Motorola, Inc. 5.57%-5.67% due 1/10-2/6/96 114.178 113.711 .44
J.C. Penney Funding Corp. 5.65%-5.68%
due 1/19-2/23/96 114.400 113.820 .44
PepsiCo, Inc. 5.52%-5.75% due 1/12-2/9/96 103.100 102.638 .40
Procter & Gamble Co. 5.42%-5.66% due 1/9-3/8/96 112.900 112.305 .44
Xerox Corp. 5.67%-5.68% due 1/8-1/19/96 103.700 103.485 .40
Federal Agency Discounts Notes-1.39%
Federal Farm Credit Bank 5.62% due 1/4/96 23.300 23.285 .09
Federal Home Loan Bank 5.54%-5.62%
due 1/22-2/28/96 130.455 129.677 .51
Federal Home Loan Mortgage Corp. 5.53%-5.66%
due 1/16-2/20/96 116.800 116.197 .45
Federal National Mortgage Assn. 5.52%-5.67%
due 1/9-2/14/96 87.250 86.872 .34
Total Short-Term Securities
(cost: $2,892.879 million) 2,889.206 11.25
Excess of cash and receivables over payables 100.170 .39
--------- ------
Total Short-Term Securities, Cash and Receivables,
Net of Payables 2,989.376 11.64
---------- ---------
Net Assets $25,678.318 100.00%
========== =========
</TABLE>
/1/ Non-income-producing securities
See Notes to Financial Statements
Companies appearing in the portfolio
since June 30, 1995
- ------------------------------------------
Aetna Life and Casualty
AlliedSignal
American Electric Power
Anheuser-Busch
Barrick Gold
Chase Manhattan
Federal Home Loan Mortgage
Gap
Great Lakes Chemical
Louisiana-Pacific
NationsBank
J.C. Penney
Seagram
Viacom
- ------------------------------------------
Companies eliminated from the portfolio
since June 30, 1995
- ------------------------------------------
Baxter International
CBS
Hong Kong Telecommunications
Limited
LIN Broadcasting
Microsoft
Texas Utilities
The Investment Company of America
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES (dollars in
at December 31, 1995 millions)
<S> <C> <C>
- ---------------------------------------- ------------- -------------
Assets:
Investment securities at market
(cost: $15,191.403) $22,688.942
Short-term securities at market
(cost: $2,892.879) 2,889.206
Cash .313
Receivables for-
Sales of investments $37.161
Sales of fund's shares 36.879
Dividends and accrued interest 85.600 159.640
------------- -------------
25,738.101
Liabilities:
Payables for-
Purchases of investments 24.023
Repurchases of fund's shares 26.103
Management services 5.501
Accrued expenses 4.156 59.783
------------- -------------
Net Assets at December 31, 1995-
Equivalent to $21.61 per share on
1,188,009,031 shares of $1 par value
capital stock outstanding (authorized
capital stock--2,000,000,000 shares) $25,678.318
=============
STATEMENT OF OPERATIONS (dollars in
for the year ended December 31, 1995 millions)
- ----------------------------------------- ------------- -------------
Investment Income:
Income:
Dividends $480.127
Interest 260.461 $ 740.588
-------------
Expenses:
Management services fee 58.981
Distribution expenses 46.876
Transfer agent fee 19.172
Reports to shareholders 1.628
Registration statement and
prospectus .877
Postage, stationery and supplies 5.293
Directors' fees .410
Auditing and legal fees .124
Custodian fee .642
Taxes (other than federal income tax) .293
Other expenses .197 134.493
------------- -------------
Net investment income 606.095
-------------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 1,026.204
Net increase in unrealized
appreciation on investments 4,320.176
-------------
Net realized gain and increase in
unrealized appreciation on investments 5,346.380
-------------
Net Increase in Net Assets Resulting
from Operations $5,952.475
=============
- ---------------------------------------- ------------- -------------
STATEMENT OF CHANGES IN NET ASSETS (dollars in
millions)
Year ended
December 31
1995 1994
- ----------------------------------------- ------------- -------------
Operations:
Net investment income $ 606.095 $ 542.887
Net realized gain on investments 1,026.204 628.471
Net increase (decrease) in unrealized
appreciation on investments 4,320.176 (1,140.883)
------------- -------------
Net increase in net assets
resulting from operations 5,952.475 30.475
------------- -------------
Dividends and Distributions Paid
to Shareholders:
Dividends from net investment income (556.505) (496.411)
Distributions from net realized
gain on investments (1,033.686) (628.912)
------------- -------------
Total dividends and distributions (1,590.191) (1,125.323)
------------- -------------
Capital Share Transactions:
Proceeds from shares sold: 155,130,380
and 149,158,039 shares, respectively 3,118.719 2,761.027
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 69,096,019 and 56,628,397
shares, respectively 1,453.606 1,014.931
Cost of shares repurchased: 127,074,306
and 130,005,029 shares, respectively (2,535.884) (2,406.547)
------------- -------------
Net increase in net assets resulting from
capital share transactions 2,036.441 1,369.411
------------- -------------
Total Increase in Net Assets 6,398.725 274.563
Net Assets:
Beginning of year 19,279.593 19,005.030
------------- -------------
End of year (including undistributed
net investment income: $277.425
and $227.698, respectively) $25,678.318 $19,279.593
============= =============
</TABLE>
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. The Investment Company of America, Inc. (the "fund") is registered under the
Investment Company Act of 1940 as an open-end, diversified management
investment company. The fund seeks long-term growth of capital and income,
placing greater emphasis on future dividends than on current income. The
following paragraphs summarize the significant accounting policies consistently
followed by the fund in the preparation of its financial statements:
Equity-type securities traded on a national securities exchange (or
reported on the NASDAQ national market) and securities traded in the
over-the-counter market are stated at the last reported sales price on the day
of valuation; other securities, and securities for which no sale was reported
on that date, are stated at the last quoted bid price.
Nonconvertible 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 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 $642,000 includes $250,000 that was paid by these credits
rather than in cash.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision is
required.
As of December 31, 1995, net unrealized appreciation on investments for
federal income tax purposes aggregated $7,503,442,000, of which $7,769,282,000
related to appreciated securities and $265,840,000 related to depreciated
securities. During the year ended December 31, 1995, the fund realized, on a
tax basis, a net capital gain of $1,033,386,000 on securities transactions. The
cost of portfolio securities for federal income tax purposes was
$18,074,706,000 at December 31, 1995.
3. The fee of $58,981,000 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;
0.24% of such assets in excess of $13 billion but not exceeding $21 billion;
0.235% of such assets in excess of $21 billion but not exceeding $34 billion;
and 0.231% of such assets in excess of $34 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, 1995,
distribution expenses under the Plan were $46,876,000. As of December 31, 1995,
accrued and unpaid distribution expenses were $3,912,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $19,172,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $14,773,000 (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, 1995, aggregate amounts deferred
were $138,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Directors and officers of the fund
are or may be considered to be affiliated with CRMC, AFS, and AFD. No such
persons received any remuneration directly from the fund.
4. 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, 1995, the net assets of the
fund would have been $25,682,731,000; the shares outstanding would have been
1,188,851,000; and the net asset value would have been equivalent to $21.60 per
share. During the year ended December 31, 1995, no warrants were exercised for
the purchase of fund shares.
5. As of December 31, 1995, accumulated excess distributions of net realized
gain on investments were $345,000 and additional paid-in capital was
$16,719,194,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $4,730,918,000 and $4,192,276,000, respectively,
during the year ended December 31, 1995.
Dividend and interest income is recorded net of non-U.S. taxes paid. For
the year ended December 31, 1995, such non-U.S. taxes were $7,046,000. Net
realized currency losses on dividends, interest, withholding taxes reclaimable,
and sales of non-U.S. bonds and notes were $59,000 for the year ended December
31, 1995.
The fund reclassified $137,000 to undistributed net investment income from
undistributed net realized gains for the year ended December 31, 1995 and
$7,109,000 to undistributed net realized capital gain from paid in surplus.
PER-SHARE DATA AND RATIOS
<TABLE>
<CAPTION>
Year
ended
December
31
1995 1994 1993 1992 1991
--------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of
Year $17.67 $18.72 $17.89 $17.48 $14.52
--------- ------- ------- ------- -------
Income from Investment
Operations:
Net investment income .52 .51 .54 .49 .51
Net realized and unrealized
gain (loss) on investments 4.83 (.48) 1.51 .71 3.27
--------- ------- ------- ------- -------
Total income from
investment operations 5.35 .03 2.05 1.20 3.78
--------- ------- ------- ------- -------
Less Distributions:
Dividends from net investment
income (.50) (.48) (.47) (.47) (.44)
Distributions from net
realized gains (.91) (.60) (.75) (.32) (.38)
--------- ------- ------- ------- -------
Total distributions (1.41) (1.08) (1.22) (.79) (.82)
--------- ------- ------- ------- -------
Net Asset Value, End of Year $21.61 $17.67 $18.72 $17.89 $17.48
========= ======= ======= ======= =======
Total Return* 30.63% .16% 11.62% 6.99% 26.54%
Ratios/Supplemental Data:
Net assets, end of year (in
millions) $25,678 $19,280 $19,005 $15,428 $10,526
Ratio of expenses to average
net assets .60% .60% .59% .58% .59%
Ratio of net income to average
net assets 2.70% 2.83% 3.03% 3.06% 3.29%
Portfolio turnover -
common stocks 20.91% 17.94% 19.57% 7.23% 5.79%
Portfolio turnover -
investment securities 20.37% 31.08% 17.57% 9.73% 6.21%
</TABLE>
*This was calculated without deducting a sales charge. The maximum sales charge
is 5.75% of the fund's offering price.
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,
Inc. (the "Fund") at December 31, 1995, the results of its operations, 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, 1995 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.
PRICE WATERHOUSE LLP
Los Angeles, California
January 31, 1996
1995 Tax Information (Unaudited)
We are required to advise you within 60 days of the fund's fiscal year-end
regarding the federal tax status of distributions received by shareholders
during such fiscal year. The distributions made during the fiscal year by the
fund were earned from the following sources:
Dividends and Distributions per Share
<TABLE>
<CAPTION>
To Payment Date From Net From Net From Net
Shareholders Investment Realized Realized
of Record Income Short-term Long-term
Gains Gains
<S> <C> <C> <C> <C>
March 3, 1995 March 6, 1995 $0.12 - -
June 2, 1995 June 5, 1995 0.12 - -
September 1, 1995 September 5, 1995 0.12 - -
December 15, 1995 December 18, 1994 0.14 $0.054 $0.856
</TABLE>
Corporate shareholders may exclude up to 70% of qualifying dividends received
during the year. For purposes of computing this exclusion, 64% of the
dividends paid by the fund from net investment income represent qualifying
dividends.
Certain states may exempt from income taxation that portion of the dividends
paid from net investment income that was derived from direct U.S. Treasury
obligations. For purposes of computing this exclusion, 24% of the dividends
paid by the fund from net investment income were derived from interest on
direct U.S. Treasury obligations.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans, and 403(b) plans need not be reported as taxable income.
However, many plan retirement trusts may need this information for their annual
information reporting.
SHAREHOLDERS SHOULD CONSULT THEIR TAX ADVISERS.
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. Form of Shareholder Service Agreement between Registrant and American
Funds Service Company, as amended 1/1/95
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)
17. Financial data schedule (EDGAR)
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
As of December 31, 1995.
<TABLE>
<CAPTION>
Title of Class Number of Record-Holders
<S> <C>
Common Stock 1,664,460
($1.00 par value)
</TABLE>
ITEM 27. INDEMNIFICATION.
Registrant is a joint-insured under Investment Advisor/Mutual Fund
Errors and Omissions Policies written by American International Surplus Lines
Insurance Company, Chubb Custom Insurance Company, and ICI Mutual Insurance
Company which insures its officers and directors against certain liabilities.
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.
(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
John A. Agar Regional Vice President None
1501 N. University Drive
Little Rock, AR 72207
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
South
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
John A. Blanchard Regional Vice President None
6421 Aberdeen Road
Mission Hills, KS 66208
Ian B. Bodell Vice President None
3100 West End Avenue, Suite
870
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
Denise M. Cassin Regional Vice President None
1425 Vallejo, #203
San Francisco, CA 94109
* 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
Thomas E. Cournoyer Vice President None
2333 Granada Blvd.
Coral Gables, FL 33134
Douglas A. Critchell Vice President None
4116 Woodbine St.
Chevy Chase, MD 20815
* Carl D. Cutting Vice President None
Michael A. Dilella Vice President None
P.O. Box 661
Ramsey, NJ 07446
G. Michael Dill Senior Vice President None
3622 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
* Paul H. Fieberg Senior Vice President None
John Fodor Regional Vice President None
15 Latisquama Road
Southborough, MA 01772
* 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
Michael J. Johnston Chairman of the Board None
630 Fifth Avenue, 36th
Floor
New York, NY
10111-0121
V. John Kriss Senior Vice President None
P.O. Box 274
Surfside, CA 90743
Arthur J. Levine Vice President None
12558 Highlands Place
Fishers, IN 46038
# Karl A. Lewis Assistant Vice President None
T. Blake Liberty Regional Vice President None
12585-E East Tennessee
Circle
Aurora, CO 80012
* Susan G. Lindgren Vice President - Institutional None
Investment Services Division
Stephen A. Malbasa Regional Vice President None
13405 Lake Shore Blvd.
Cleveland, OH 44110
Steven M. Markel Senior Vice President None
5241 South Race Street
Littleton, CO 80121
* John C. Massar Senior Vice President None
* E. Lee McClennahan Senior Vice President None
Laurie B. McCurdy Regional Vice President None
6008 E. Anderson Drive
Scottsdale, AZ 85255
% John V. McLaughlin Senior Vice President None
Terry W. McNabb Vice President None
2002 Barrett Station Road
St. Louis, MO 63131
* R. William Melinat Vice President - Institutional None
Investment Services Division
David R. Murray Regional Vice President None
25701 S.E. 32nd Place
Issaquah, WA 98027
Stephen S. Nelson Vice President None
7215 Trevor Road
Charlotte, NC 28226
* Barbara G. Nicholich Assistant Vice President- None
Institutional Investment
Services Division
William E. Noe Regional Vice President None
304 River Oaks Road
Brentwood, TN 37027
Peter A. Nyhhus Regional Vice President None
3084 Wilds Ridge Court
Prior Lake, MN 55372
Eric P. Olson Regional Vice President None
62 Park Drive
Glenview, IL 60025
Frederic Phillips Regional Vice President None
32 Ridge Avenue
Newton Centre, MA 02159
# Candance D. Pilgrim Assistant Vice President None
Carl S. Platou Regional Vice President None
4021 96th Avenue, SE
Mercer Island, WA 98040
* John. O. Post, Jr. Vice President None
Steven J. Reitman Vice President None
212 The Lane
Hinsdale, IL 60521
Brian A. Roberts Regional Vice President None
12025 Delmahoy Drive
Charlotte, NC 28277
George S. Ross Vice President None
55 Madison Avenue
Morristown, NJ 07960
* Julie D. Roth Vice President None
* James F. Rothenberg Director None
Douglas F. Rowe Regional Vice President None
30309 Oak Tree Drive
Georgetown, TX 78628
Christopher Rowey Regional Vice President None
9417 Beverlywood Street
Los Angeles, CA 90034
Dean B. Rydquist Vice President None
1080 Bay Pointe Crossing
Alpharetta, GA 30202
Richard R. Samson Vice President None
4604 Glencoe, Ave., No. 4
Marina del Rey, CA 90292
Joe D. Scarpitti Regional Vice President None
25760 Kensington Drive
Westlake, OH 44145
* R. Michael Shanahan Director Senior Vice President
David W. Short Senior 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
* Mary E. Smith Assistant Vice President - None
Institutional Investment
Services Division
Rodney G. Smith Regional Vice President None
2350 Lakeside Blvd., #850
Richardson, TX 75082
Nicholas D. Spadaccini Regional Vice President None
855 Markley Woods Way
Cincinnati, OH 45230
Daniel S. Spradling Senior Vice President None
#4 West Fourth Ave.,
Suite 406
San Mateo, CA 94402
Thomas A. Stout Regional Vice President None
2603 Kresson Place
Bowie, MD 20715
Craig R. Strauser Regional Vice President None
17040 Summer Place
Lake Oswego, OR 97035
Francis N. Strazzeri Regional Vice President None
31641 Saddletree Drive
Westlake Village, CA
91361
# James P. Toomey Assistant Vice President None
& Christopher E. Trede Assistant Vice President None
George F. Truesdail Vice President None
400 Abbotsford Court
Charlotte, NC 28270
Scott W. Ursin-Smith Regional Vice President None
606 Glenwood Avenue
Mill Valley, CA 94941
@ Andrew J. Ward Vice President None
* David M. Ward Assistant Vice President - None
Institutional Investment
Services Division
Thomas E. Warren Regional Vice President None
4001 Crockers Lake Blvd.,
#1012
Sarasota, FL 34238
# J. Kelly Webb Senior Vice President None
Gregory J. Weimer Regional Vice President None
125 Surrey Drive
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
William R. Yost Regional Vice President None
9320 Overlook Trail
Eden Prairie, MN 55437
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 fund'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 fund undertakes to provide each
person to whom a prospectus is delivered with a copy of the fund's latest
annual report to shareholders, upon request and without charge.
SIGNATURE OF REGISTRANT
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) 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
26th day of February, 1996.
THE INVESTMENT COMPANY OF AMERICA
By /s/ Jon B. Lovelace, Jr.
(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 26, 1996, by the
following persons in the capacities indicated.
SIGNATURE TITLE
(1) Principal Executive Officer:
William C. Newton*
(William C. Newton) President and Director
(2) Principal Financial Officer and
Principal Accounting Officer:
/s/ Steven N. Kearsley
(Steven N. Kearsley) Treasurer
(3) Directors:
Charles H. Black* Director
John F. Bookout.* Director
Ann S. Bowers* Director
Malcolm R. Currie* Director
/s/ Jon B. Lovelace, Jr.
(Jon B. Lovelace, Jr.) Chairman of the Board
John G. McDonald* Director
Bailey Morris-Eck* Director
William C. Newton* President and Director
James W. Ratzlaff* Executive Vice President and
Director
Olin C. Robison* Director
*By /s/ Vincent P. Corti
(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).
/s/ Michele Y. Yang
(Michele Y. Yang)
SHAREHOLDER SERVICES AGREEMENT
1. The parties to this Agreement, which is effective as of January 1, 1995,
are The Investment Company of America (hereinafter called "the Company") and
American Funds Service Company, a California corporation (hereinafter called
"AFS"). AFS is a wholly owned subsidiary of Capital Research and Management
Company (hereinafter called "CRMC"). This Agreement will continue in effect
until amended or terminated in accordance with its terms.
2. The Company hereby employs AFS, and AFS hereby accepts such employment by
the Company, as its transfer agent. In such capacity AFS will provide the
services of stock transfer agent, dividend disbursing agent, redemption agent,
and such additional related services as the Company may from time to time
require, all of which services are sometimes referred to herein as "shareholder
services."
3. AFS has entered into substantially identical agreements with other
investment companies for which CRMC serves as investment adviser. (For the
purposes of this Agreement, such investment companies, including the Company,
are called "participating investment companies.")
4. AFS has entered into an agreement with DST Systems, Inc. (hereinafter
called "DST"), to provide AFS with electronic data processing services
sufficient for the performance of the shareholder services referred to in
paragraph 2.
5. The Company, together with the other participating companies, will maintain
a Review and Advisory Committee, which Committee will review and may make
recommendations to the boards of the participating investment companies
regarding all fees and charges provided for in this Agreement, as well as
review the level and quality of the shareholder services rendered to the
participating investment companies and their shareholders. Each participating
investment company may select one director or trustee who is not affiliated
with CRMC, or any of its affiliated companies, or with Washington Management
Corporation or any of its affiliated companies, to serve on the Review and
Advisory Committee.
6. AFS will provide to the participating investment companies the shareholder
services referred to herein in return for the following fees:
ANNUAL ACCOUNT MAINTENANCE FEE (PAID MONTHLY):
$.67 per month for each open account on AFS books or in Level 2 or 4
Networking ($8.04 per year)
$.09 per month for each open account maintained in Street Name or Level 1 or
3 Networking ($1.08 per year)
No annual fee will be charged for a participant account underlying a 401(k)
or other defined contribution plan where the plan maintains a single account
on AFS books and responds to all participant inquiries
TRANSACTION FEES:
$2.00 per non-automated transaction
$0.50 per automated transaction
For this purpose, "transactions" shall include all types of transactions
included in an "activity index" as reported to the Review and Advisory
Committee at least annually. AFS will bill the Company monthly, on or shortly
after the first of each calendar month, and the Company will pay to AFS within
five business days of such billing.
Any revision of the schedule of charges set forth herein shall require the
affirmative vote of a majority of the members of the board of
directors/trustees of the Company.
7. All fund-specific charges from third parties -- including DST charges,
payments described in the next sentence, postage, NSCC transaction charges and
similar out-of-pocket expenses -- will be passed through directly to the
Company or other participating investment companies, as applicable. AFS,
subject to approval of its board of directors, is authorized in its discretion
to negotiate payments to third parties for account maintenance and/or
transaction processing services provided such payments do not exceed the
anticipated savings to the Company, either in fees payable to AFS hereunder or
in other direct Company expenses, that AFS reasonably anticipates would be
realized by the Company from using the services of such third party rather than
maintaining the accounts directly on AFS' books and/or processing non-automated
transactions.
8. It is understood that AFS may have income in excess of its expenses and may
accumulate capital and surplus. AFS is not, however, permitted to distribute
any net income or accumulated surplus to its parent, CRMC, in the form of a
dividend without the affirmative vote of a majority of the members of the
boards of directors/trustees of the Company and all participating investment
companies.
9. This Agreement may be amended at any time by mutual agreement of the
parties, with agreement of the Company to be evidenced by affirmative vote of a
majority of the members of the board of directors/trustees of the Company.
10. This Agreement may be terminated on 180 days' written notice by either
party. In the event of a termination of this Agreement, AFS and the Company
will each extend full cooperation in effecting a conversion to whatever
successor shareholder service provider(s) the Company may select, it being
understood that all records relating to the Company and its shareholders are
property of the Company.
11. In the event of a termination of this Agreement by the Company, the
Company will pay to AFS as a termination fee the Company's proportionate share
of any costs of conversion of the Company's shareholder service from AFS to a
successor. In the event of termination of this Agreement and all corresponding
agreements with all the participating investment companies, all assets of AFS
will be sold or otherwise converted to cash, with a view to the liquidation of
AFS when it ceases to provide shareholder services for the participating
investment companies. To the extent any such assets are sold by AFS to CRMC
and/or any of its affiliates, such sales shall be at fair market value at the
time of sale as agreed upon by AFS, the purchasing company or companies, and
the Review and Advisory Committee. After all assets of AFS have been converted
to cash and all liabilities of AFS have been paid or discharged, an amount
equal to any capital or paid-in surplus of AFS that shall have been contributed
by CRMC or its affiliates shall be set aside in cash for distribution to CRMC
upon liquidation of AFS. Any other capital or surplus and any assets of AFS
remaining after the foregoing provisions for liabilities and return of capital
or paid-in surplus to CRMC shall be distributed to the participating investment
companies in such proportions as may be determined by the Review and Advisory
Committee.
12. In the event of disagreement between the Company and AFS, or between the
Company and other participating investment companies as to any matter arising
under this Agreement, which the parties to the disagreement are unable to
resolve, the question shall be referred to the Review and Advisory Committee
for resolution. If the Review and Advisory Committee is unable to resolve the
question to the satisfaction of both parties, either party may elect to submit
the question to arbitration; one arbitrator to be named by each party to the
disagreement and a third arbitrator to be selected by the two arbitrators named
by the original parties. The decision of a majority of the arbitrators shall
be final and binding on all parties to the arbitration. The expenses of such
arbitration shall be paid by the party electing to submit the question to
arbitration.
13. The obligations of the Company under this Agreement are not binding upon
any of the directors, trustees, officers, employees, agents or shareholders of
the Company individually, but bind only the Company itself. AFS agrees to look
solely to the assets of the Company for the satisfaction of any liability of
the Company in respect to this Agreement and will not seek recourse against
such directors, trustees, officers, employees, agents or shareholders, or any
of them or their personal assets for such satisfaction.
AMERICAN FUNDS SERVICE COMPANY THE INVESTMENT COMPANY OF AMERICA
By /s/ Don R. Conlan By /s/ Jon B. Lovelace, Jr.
Don R. Conlan, Chairman Jon B. Lovelace, Jr., Chairman
By /s/ Kenneth R. Gorvetzian By /s/ Vincent P. Corti
Kenneth R. Gorvetzian, Secretary Vincent P. Corti, Secretary
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-Effective Amendment No. 99 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
January 31, 1996, relating to the financial statements and per share data and
ratios of The Investment Company of America, Inc., 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 heading "General
Information" in the Statement of Additional Information and under the heading
"Financial Highlights" in the Prospectus.
PRICE WATERHOUSE LLP
Los Angeles, California
February 26, 1996
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
Exhibit 16
(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/ = $1,230.99
T = + 23.10%
5 Year Avg. Annual Total Return 1,000(1+T)/5/ = $ 1,862.87
T = + 13.25%
10 Year Avg. Annual Total Return 1,000(1+T)/10/ = $ 3,532.76
T = + 13.45%
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 ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 18.75 5.75 % 53.333 17.67 942
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/95 1000 26 26 1026 49 1153 50 1203 27 1230.99 56.964
TOTAL $49
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 15.41 5.75 % 64.893 14.52 942
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/91 1000 28 28 1028 25 1134 27 1161 31 1192.35 68.212
12/31/92 1000 34 62 1062 22 1161 50 1211 64 1275.65 71.305
12/31/93 1000 34 96 1096 55 1215 107 1322 101 1423.86 76.061
12/31/94 1000 36 132 1132 46 1147 148 1295 131 1426.11 80.708
12/31/95 1000 42 174 1174 75 1402 256 1658 204 1862.87 86.204
TOTAL $223
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 14.33 5.75 % 69.784 13.51 943
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/86 1000 36 36 1036 181 920 193 1113 34 1147.71 87.014
12/31/87 1000 47 83 1083 67 880 256 1136 74 1210.12 95.965
12/31/88 1000 56 139 1139 75 903 338 1241 130 1371.52 105.991
12/31/89 1000 64 203 1203 92 1064 493 1557 217 1774.84 116.459
12/31/90 1000 70 273 1273 26 1013 496 1509 277 1786.93 123.067
12/31/91 1000 56 329 1329 48 1220 648 1868 393 2261.23 129.361
12/31/92 1000 60 389 1389 42 1248 706 1954 465 2419.23 135.228
12/31/93 1000 64 453 1453 103 1306 843 2149 551 2700.29 144.246
12/31/94 1000 70 523 1523 88 1233 884 2117 587 2704.48 153.055
12/31/95 1000 77 600 1600 142 1508 1223 2731 801 3532.76 163.478
TOTAL $864
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 23 5.75 % 43.478 21.68 943
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 4044.9
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 INCOMEINVM'T CAP GAIN FROM CAP GAIN 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 106263.8 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 147435.1 10036.426
12/31/77 1000 4983 52454 53454 2885 5883 74153 80036 63602 143638.4 10616.29
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 27790.06
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 704908.9 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 71686.61
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 1572916.7 84023.328
12/31/94 1000 40722 451326 452326 51310 15365 873286 888651 686712 1575363.53 89154.699
12/31/95 1000 45013 496339 497339 82623 18791 1151016 1169807 888036 2057843.69 95226.455
TOTAL $654,193
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 17.67 0.00 % 56.593 17.67 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/95 1000 29 29 1029 52 1223 53 1276 30 1306.26 60.447
TOTAL $52
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 14.52 0.00 % 68.871 14.52 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/91 1000 32 32 1032 27 1204 29 1233 32 1265.45 72.394
12/31/92 1000 34 66 1066 24 1232 53 1285 68 1353.86 75.677
12/31/93 1000 35 101 1101 58 1289 114 1403 108 1511.13 80.723
12/31/94 1000 39 140 1140 49 1217 157 1374 139 1513.47 85.652
12/31/95 1000 42 182 1182 79 1488 271 1759 218 1977.01 91.486
TOTAL $237
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 13.51 0.00 % 74.019 13.51 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/86 1000 36 36 1036 192 976 205 1181 36 1217.36 92.294
12/31/87 1000 48 84 1084 71 933 272 1205 78 1283.53 101.787
12/31/88 1000 57 141 1141 79 958 359 1317 137 1454.73 112.421
12/31/89 1000 68 209 1209 98 1128 523 1651 231 1882.48 123.522
12/31/90 1000 75 284 1284 28 1075 526 1601 294 1895.3 130.53
12/31/91 1000 59 343 1343 51 1294 688 1982 416 2398.38 137.207
12/31/92 1000 65 408 1408 45 1324 749 2073 492 2565.98 143.431
12/31/93 1000 68 476 1476 110 1386 894 2280 584 2864.07 152.995
12/31/94 1000 74 550 1550 93 1308 937 2245 623 2868.51 162.338
12/31/95 1000 82 632 1632 150 1600 1297 2897 850 3747.04 173.394
TOTAL $917
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 21.68 0.00 % 46.125 21.68 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 2296.1 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 2586.8 139.15
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 9576.9 802.758
12/31/52 1000 374 3033 4033 471 2841 4152 6993 3752 10745.9 872.232
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 6030.18
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 INCOMEINVM'T CAP GAIN FROM CAP GAIN 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 9627.02
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 76051.33
12/31/91 1000 33993 357921 358921 29452 16125 777006 793131 604239 1397370.1 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
12/31/95 1000 47752 526547 527547 87653 19935 1221096 1241031 942106 2183137.85 101024.426
TOTAL $694,023
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 14.33 5.75 % 697.837 13.51 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 1059.89
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 22611.8 1293.581
12/31/92 10000 614 3854 13854 422 12484 7058 19542 4649 24191.75 1352.25
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 27044.2 1530.515
12/31/95 10000 773 5970 15970 1418 15080 12231 27311 8015 35326.93 1634.749
TOTAL $8,647
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DOW JONES INDUSTRIAL AVERAGE
SALES NET ASSETINITIAL
INITIAL OFFERING CHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASED PER SHARE VALUE
******** 10000 1546.67 0 % 6.466 1546.67 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 GAINSUB- 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 441 441 10441 0 12258 0 12258 450 12708.55 6.703
12/31/87 10000 482 923 10923 0 12536 0 12536 880 13416.7 6.92
12/31/88 10000 559 1482 11482 0 14021 0 14021 1571 15592.02 7.19
12/31/89 10000 752 2234 12234 0 17801 0 17801 2806 20607.7 7.485
12/31/90 10000 787 3021 13021 0 17028 0 17028 3464 20492.51 7.781
12/31/91 10000 749 3770 13770 0 20488 0 20488 4967 25455.21 8.033
12/31/92 10000 818 4588 14588 0 21343 0 21343 5993 27336.49 8.281
12/31/93 10000 834 5422 15422 0 24272 0 24272 7694 31966.08 8.515
12/31/94 10000 927 6349 16349 0 24792 0 24792 8790 33582.03 8.758
12/31/95 10000 1031 7380 17380 0 33085 0 33085 12892 45977.32 8.985
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD & POOR'S 500 COMPOSITE INDEX
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 211.28 0.00 % 47.331 211.28 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/86 10000 397 397 10397 0 11462 0 11462 394 11856.64 48.96
12/31/87 10000 436 833 10833 0 11694 0 11694 789 12483.47 50.524
12/31/88 10000 499 1332 11332 0 13145 0 13145 1406 14551.69 52.397
12/31/89 10000 587 1919 11919 0 16727 0 16727 2425 19152.51 54.195
12/31/90 10000 664 2583 12583 0 15629 0 15629 2924 18553.41 56.185
12/31/91 10000 694 3277 13277 0 19741 0 19741 4450 24191.64 58.001
12/31/92 10000 726 4003 14003 0 20622 0 20622 5406 26028.44 59.738
12/31/93 10000 759 4762 14762 0 22077 0 22077 6566 28643.76 61.408
12/31/94 10000 818 5580 15580 0 21737 0 21737 7277 29014.84 63.176
12/31/95 10000 880 6460 16460 0 29152 0 29152 10753 39905.49 64.789
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/86 10000 692 692 10692 0 10000 0 10000 692 10692.28 1069.228
12/31/87 10000 660 1352 11352 0 10000 0 10000 1352 11352.87 1135.287
12/31/88 10000 742 2094 12094 0 10000 0 10000 2095 12095.88 1209.588
12/31/89 10000 908 3002 13002 0 10000 0 10000 3003 13003.35 1300.335
12/31/90 10000 936 3938 13938 0 10000 0 10000 3937 13937.76 1393.776
12/31/91 10000 850 4788 14788 0 10000 0 10000 4788 14788.67 1478.867
12/31/92 10000 611 5399 15399 0 10000 0 10000 5399 15399.81 1539.981
12/31/93 10000 490 5889 15889 0 10000 0 10000 5889 15889.09 1588.909
12/31/94 10000 506 6395 16395 0 10000 0 10000 6393 16393.92 1639.392
12/31/95 10000 514 6909 16909 0 10000 0 10000 6908 16908.07 1690.807
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 749 1561 11561 0 10000 0 10000 1558 11558.93 1155.893
12/31/87 10000 715 2276 12276 0 10000 0 10000 2273 12273.07 1227.307
12/31/88 10000 803 3079 13079 0 10000 0 10000 3076 13076.31 1307.631
12/31/89 10000 981 4060 14060 0 10000 0 10000 4057 14057.33 1405.733
12/31/90 10000 1010 5070 15070 0 10000 0 10000 5067 15067.48 1506.748
12/31/91 10000 920 5990 15990 0 10000 0 10000 5987 15987.34 1598.734
12/31/92 10000 661 6651 16651 0 10000 0 10000 6648 16648.03 1664.803
12/31/93 10000 530 7181 17181 0 10000 0 10000 7176 17176.97 1717.697
12/31/94 10000 546 7727 17727 0 10000 0 10000 7722 17722.71 1772.271
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 820 2665 12665 0 10000 0 10000 2664 12664.57 1266.457
12/31/87 10000 782 3447 13447 0 10000 0 10000 3447 13447.01 1344.701
12/31/88 10000 880 4327 14327 0 10000 0 10000 4327 14327.09 1432.709
12/31/89 10000 1074 5401 15401 0 10000 0 10000 5401 15401.95 1540.195
12/31/90 10000 1107 6508 16508 0 10000 0 10000 6508 16508.71 1650.871
12/31/91 10000 1008 7516 17516 0 10000 0 10000 7516 17516.56 1751.656
12/31/92 10000 724 8240 18240 0 10000 0 10000 8240 18240.44 1824.044
12/31/93 10000 579 8819 18819 0 10000 0 10000 8819 18819.97 1881.997
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/83 10000 918 918 10918 0 10000 0 10000 918 10918.02 1091.802
12/31/84 10000 1044 1962 11962 0 10000 0 10000 1962 11962.34 1196.234
12/31/85 10000 970 2932 12932 0 10000 0 10000 2931 12931.93 1293.193
12/31/86 10000 895 3827 13827 0 10000 0 10000 3827 13827.18 1382.718
12/31/87 10000 854 4681 14681 0 10000 0 10000 4681 14681.44 1468.144
12/31/88 10000 961 5642 15642 0 10000 0 10000 5642 15642.31 1564.231
12/31/89 10000 1173 6815 16815 0 10000 0 10000 6815 16815.84 1681.584
12/31/90 10000 1208 8023 18023 0 10000 0 10000 8024 18024.22 1802.422
12/31/91 10000 1100 9123 19123 0 10000 0 10000 9124 19124.6 1912.46
12/31/92 10000 792 9915 19915 0 10000 0 10000 9914 19914.92 1991.492
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/82 10000 1086 1086 11086 0 10000 0 10000 1085 11085.58 1108.558
12/31/83 10000 1018 2104 12104 0 10000 0 10000 2103 12103.25 1210.325
12/31/84 10000 1158 3262 13262 0 10000 0 10000 3260 13260.94 1326.094
12/31/85 10000 1075 4337 14337 0 10000 0 10000 4335 14335.78 1433.578
12/31/86 10000 992 5329 15329 0 10000 0 10000 5328 15328.22 1532.822
12/31/87 10000 947 6276 16276 0 10000 0 10000 6275 16275.23 1627.523
12/31/88 10000 1065 7341 17341 0 10000 0 10000 7340 17340.41 1734.041
12/31/89 10000 1300 8641 18641 0 10000 0 10000 8641 18641.34 1864.134
12/31/90 10000 1340 9981 19981 0 10000 0 10000 9980 19980.88 1998.088
12/31/91 10000 1220 11201 21201 0 10000 0 10000 11200 21200.71 2120.071
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/81 10000 1098 1098 11098 0 10000 0 10000 1098 11098.56 1109.856
12/31/82 10000 1205 2303 12303 0 10000 0 10000 2303 12303.4 1230.34
12/31/83 10000 1129 3432 13432 0 10000 0 10000 3432 13432.87 1343.287
12/31/84 10000 1284 4716 14716 0 10000 0 10000 4717 14717.74 1471.774
12/31/85 10000 1193 5909 15909 0 10000 0 10000 5910 15910.66 1591.066
12/31/86 10000 1101 7010 17010 0 10000 0 10000 7012 17012.12 1701.212
12/31/87 10000 1052 8062 18062 0 10000 0 10000 8063 18063.16 1806.316
12/31/88 10000 1183 9245 19245 0 10000 0 10000 9245 19245.35 1924.535
12/31/89 10000 1444 10689 20689 0 10000 0 10000 10689 20689.19 2068.919
12/31/90 10000 1486 12175 22175 0 10000 0 10000 12175 22175.89 2217.589
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/80 10000 891 891 10891 0 10000 0 10000 891 10891.33 1089.133
12/31/81 10000 1197 2088 12088 0 10000 0 10000 2087 12087.8 1208.78
12/31/82 10000 1312 3400 13400 0 10000 0 10000 3400 13400.05 1340.005
12/31/83 10000 1230 4630 14630 0 10000 0 10000 4630 14630.2 1463.02
12/31/84 10000 1400 6030 16030 0 10000 0 10000 6029 16029.59 1602.959
12/31/85 10000 1299 7329 17329 0 10000 0 10000 7328 17328.84 1732.884
12/31/86 10000 1198 8527 18527 0 10000 0 10000 8528 18528.48 1852.848
12/31/87 10000 1145 9672 19672 0 10000 0 10000 9673 19673.2 1967.32
12/31/88 10000 1287 10959 20959 0 10000 0 10000 10960 20960.76 2096.076
12/31/89 10000 1574 12533 22533 0 10000 0 10000 12533 22533.29 2253.329
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/79 10000 743 743 10743 0 10000 0 10000 742 10742.84 1074.284
12/31/80 10000 958 1701 11701 0 10000 0 10000 1700 11700.39 1170.039
12/31/81 10000 1285 2986 12986 0 10000 0 10000 2985 12985.74 1298.574
12/31/82 10000 1410 4396 14396 0 10000 0 10000 4395 14395.45 1439.545
12/31/83 10000 1322 5718 15718 0 10000 0 10000 5716 15716.97 1571.697
12/31/84 10000 1503 7221 17221 0 10000 0 10000 7220 17220.32 1722.032
12/31/85 10000 1395 8616 18616 0 10000 0 10000 8616 18616.08 1861.608
12/31/86 10000 1288 9904 19904 0 10000 0 10000 9904 19904.84 1990.484
12/31/87 10000 1230 11134 21134 0 10000 0 10000 11134 21134.6 2113.46
12/31/88 10000 1384 12518 22518 0 10000 0 10000 12517 22517.82 2251.782
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/78 10000 642 642 10642 0 10000 0 10000 641 10641.9 1064.19
12/31/79 10000 790 1432 11432 0 10000 0 10000 1432 11432.42 1143.242
12/31/80 10000 1019 2451 12451 0 10000 0 10000 2451 12451.43 1245.143
12/31/81 10000 1367 3818 13818 0 10000 0 10000 3819 13819.3 1381.93
12/31/82 10000 1501 5319 15319 0 10000 0 10000 5319 15319.51 1531.951
12/31/83 10000 1406 6725 16725 0 10000 0 10000 6725 16725.85 1672.585
12/31/84 10000 1599 8324 18324 0 10000 0 10000 8325 18325.7 1832.57
12/31/85 10000 1486 9810 19810 0 10000 0 10000 9811 19811.06 1981.106
12/31/86 10000 1372 11182 21182 0 10000 0 10000 11182 21182.53 2118.253
12/31/87 10000 1310 12492 22492 0 10000 0 10000 12491 22491.24 2249.124
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AVERAGE FIXED INCOME ACCOUNT
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10 0.00 % 1000 10 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/77 10000 613 613 10613 0 10000 0 10000 612 10612.59 1061.259
12/31/78 10000 681 1294 11294 0 10000 0 10000 1293 11293.81 1129.381
12/31/79 10000 839 2133 12133 0 10000 0 10000 2132 12132.77 1213.277
12/31/80 10000 1081 3214 13214 0 10000 0 10000 3214 13214.2 1321.42
12/31/81 10000 1452 4666 14666 0 10000 0 10000 4665 14665.85 1466.585
12/31/82 10000 1593 6259 16259 0 10000 0 10000 6257 16257.96 1625.796
12/31/83 10000 1493 7752 17752 0 10000 0 10000 7750 17750.46 1775.046
12/31/84 10000 1698 9450 19450 0 10000 0 10000 9448 19448.32 1944.832
12/31/85 10000 1577 11027 21027 0 10000 0 10000 11024 21024.67 2102.467
12/31/86 10000 1456 12483 22483 0 10000 0 10000 12480 22480.17 2248.017
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 12.64 5.75 % 79.114 11.91 942
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/76 1000 39 39 1039 19 1162 19 1181 40 1221.14 83.127
12/31/77 1000 41 80 1080 24 1070 42 1112 77 1189.69 87.93
12/31/78 1000 47 127 1127 0 1185 46 1231 133 1364.53 91.09
12/31/79 1000 58 185 1185 16 1345 70 1415 211 1626.12 191.308
12/31/80 1000 76 261 1261 38 1527 121 1648 323 1971.39 204.289
12/31/81 1000 95 356 1356 135 1367 239 1606 382 1988.69 230.173
12/31/82 1000 121 477 1477 127 1612 448 2060 600 2660.35 261.075
12/31/83 1000 122 599 1599 117 1782 628 2410 786 3196.83 283.91
12/31/84 1000 133 732 1732 145 1741 759 2500 910 3410.08 310.007
12/31/85 1000 145 877 1877 152 2138 1127 3265 1283 4548.67 336.689
12/31/86 1000 169 1046 2046 875 2087 2033 4120 1417 5537.41 419.819
12/31/87 1000 222 1268 2268 322 1995 2288 4283 1555 5838.52 463.007
12/31/88 1000 265 1533 2533 361 2047 2713 4760 1857 6617.15 511.372
12/31/89 1000 307 1840 2840 446 2411 3650 6061 2501 8562.96 561.874
12/31/90 1000 337 2177 3177 126 2297 3605 5902 2719 8621.31 593.754
12/31/91 1000 265 2442 3442 230 2766 4587 7353 3556 10909.67 624.123
12/31/92 1000 297 2739 3739 204 2831 4898 7729 3942 11671.94 652.428
12/31/93 1000 310 3049 4049 499 2962 5628 8590 4437 13027.88 695.934
12/31/94 1000 337 3386 4386 425 2796 5738 8534 4514 13048.16 738.436
12/31/95 1000 373 3759 4759 684 3419 7705 11124 5920 17044.37 788.726
TOTAL $4,945
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 14.44 5.75 % 69.252 13.61 943
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/66 1000 22 22 1022 72 861 68 929 22 951.8 76.511
12/31/67 1000 26 48 1048 58 1032 141 1173 53 1226.81 82.336
12/31/68 1000 33 81 1081 52 1124 218 1342 92 1434.96 88.414
12/31/69 1000 37 118 1118 87 915 255 1170 111 1281.69 97.024
12/31/70 1000 39 157 1157 56 868 299 1167 148 1315.29 104.971
12/31/71 1000 42 199 1199 28 969 362 1331 208 1539.29 110.028
12/31/72 1000 43 242 1242 53 1060 450 1510 273 1783.26 116.477
12/31/73 1000 47 289 1289 39 830 393 1223 260 1483.39 123.719
12/31/74 1000 75 364 1364 0 641 304 945 272 1217.21 131.448
12/31/75 1000 72 436 1436 9 825 400 1225 422 1647.93 138.365
12/31/76 1000 68 504 1504 33 1017 527 1544 591 2135.66 145.382
12/31/77 1000 72 576 1576 42 937 527 1464 616 2080.67 153.782
12/31/78 1000 81 657 1657 0 1037 584 1621 765 2386.42 159.307
12/31/79 1000 102 759 1759 29 1177 693 1870 973 2843.91 334.578
12/31/80 1000 132 891 1891 67 1337 860 2197 1250 3447.76 357.281
12/31/81 1000 168 1059 2059 236 1197 998 2195 1283 3478.06 402.553
12/31/82 1000 212 1271 2271 221 1411 1468 2879 1773 4652.69 456.594
12/31/83 1000 213 1484 2484 205 1560 1855 3415 2175 5590.93 496.53
12/31/84 1000 232 1716 2716 253 1524 2067 3591 2372 5963.9 542.173
12/31/85 1000 253 1969 2969 266 1871 2879 4750 3205 7955.2 588.838
12/31/86 1000 296 2265 3265 1530 1827 4442 6269 3415 9684.41 734.224
12/31/87 1000 388 2653 3653 563 1747 4849 6596 3614 10210.99 809.753
12/31/88 1000 462 3115 4115 632 1792 5614 7406 4166 11572.77 894.341
12/31/89 1000 537 3652 4652 779 2111 7407 9518 5457 14975.85 982.667
12/31/90 1000 589 4241 5241 221 2011 7281 9292 5785 15077.9 1038.423
12/31/91 1000 464 4705 5705 402 2421 9197 11618 7462 19080.01 1091.534
12/31/92 1000 519 5224 6224 356 2478 9768 12246 8167 20413.17 1141.038
12/31/93 1000 543 5767 6767 872 2593 11099 13692 9092 22784.62 1217.127
12/31/94 1000 590 6357 7357 743 2447 11222 13669 9151 22820.05 1291.457
12/31/95 1000 652 7009 8009 1197 2993 14926 17919 11890 29809.03 1379.409
TOTAL $9,101
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 9.99 5.75 % 100.1 9.42 943
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/56 1000 26 26 1026 75 944 75 1019 25 1044.39 110.752
12/31/57 1000 30 56 1056 57 759 114 873 47 920.3 121.412
12/31/58 1000 30 86 1086 46 1028 205 1233 99 1332.32 129.729
12/31/59 1000 33 119 1119 100 1070 314 1384 137 1521.36 142.316
12/31/60 1000 39 158 1158 86 1028 391 1419 171 1590.37 154.856
12/31/61 1000 40 198 1198 101 1172 549 1721 236 1957.46 167.161
12/31/62 1000 42 240 1240 76 950 513 1463 235 1698.27 178.954
12/31/63 1000 46 286 1286 86 1091 678 1769 317 2086.85 191.454
12/31/64 1000 51 337 1337 139 1169 867 2036 390 2426.17 207.72
12/31/65 1000 57 394 1394 185 1362 1201 2563 516 3079.79 226.289
12/31/66 1000 74 468 1468 236 1245 1321 2566 544 3110.1 250.008
12/31/67 1000 87 555 1555 189 1491 1777 3268 740 4008.67 269.038
12/31/68 1000 108 663 1663 169 1625 2144 3769 919 4688.8 288.897
12/31/69 1000 120 783 1783 283 1322 2000 3322 865 4187.95 317.029
12/31/70 1000 129 912 1912 184 1254 2083 3337 960 4297.73 342.995
12/31/71 1000 136 1048 2048 91 1400 2418 3818 1211 5029.64 359.517
12/31/72 1000 141 1189 2189 172 1533 2822 4355 1471 5826.89 380.594
12/31/73 1000 159 1348 2348 128 1200 2343 3543 1304 4847.04 404.257
12/31/74 1000 248 1596 2596 0 927 1809 2736 1241 3977.29 429.513
12/31/75 1000 236 1832 2832 31 1192 2358 3550 1834 5384.69 452.115
12/31/76 1000 220 2052 3052 107 1470 3018 4488 2490 6978.37 475.042
12/31/77 1000 236 2288 3288 137 1354 2917 4271 2527 6798.68 502.489
12/31/78 1000 264 2552 3552 0 1499 3230 4729 3068 7797.76 520.545
12/31/79 1000 330 2882 3882 94 1702 3766 5468 3824 9292.63 1093.25
12/31/80 1000 432 3314 4314 219 1932 4514 6446 4819 11265.76 1167.436
12/31/81 1000 548 3862 4862 771 1730 4785 6515 4849 11364.69 1315.358
12/31/82 1000 692 4554 5554 723 2040 6596 8636 6566 15202.82 1491.935
12/31/83 1000 696 5250 6250 671 2254 8048 10302 7966 18268.54 1622.428
12/31/84 1000 760 6010 7010 827 2202 8696 10898 8589 19487.2 1771.564
12/31/85 1000 828 6838 7838 868 2705 11792 14497 11496 25993.86 1924.046
12/31/86 1000 964 7802 8802 5000 2641 16843 19484 12160 31644.13 2399.1
12/31/87 1000 1267 9069 10069 1840 2525 18070 20595 12769 33364.74 2645.895
12/31/88 1000 1509 10578 11578 2065 2591 20626 23217 14597 37814.39 2922.287
12/31/89 1000 1755 12333 13333 2546 3051 26894 29945 18988 48933.98 3210.891
12/31/90 1000 1923 14256 15256 722 2907 26353 29260 20007 49267.39 3393.071
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/91 1000 1517 15773 16773 1314 3499 33135 36634 25710 62344.43 3566.615
12/31/92 1000 1693 17466 18466 1163 3582 35076 38658 28042 66700.56 3728.371
12/31/93 1000 1772 19238 20238 2850 3748 39571 43319 31130 74449.31 3976.993
12/31/94 1000 1927 21165 22165 2429 3538 39786 43324 31241 74565.12 4219.871
12/31/95 1000 2131 23296 24296 3911 4326 52586 56912 40489 97401.89 4507.26
TOTAL $30,691
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 14.33 5.75 % 69.784 13.51 943
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/86 1000 36 36 1036 181 920 193 1113 34 1147.71 87.014
12/31/87 1500 66 102 1602 94 1331 286 1617 90 1707.17 135.382
12/31/88 2000 98 200 2200 135 1849 429 2278 190 2468.89 190.795
12/31/89 2500 136 336 2836 198 2733 707 3440 364 3804.67 249.65
12/31/90 3000 168 504 3504 63 3053 738 3791 514 4305.05 296.491
12/31/91 3500 147 651 4151 127 4242 1025 5267 776 6043.9 345.761
12/31/92 4000 177 828 4828 122 4824 1171 5995 975 6970.27 389.618
12/31/93 4500 197 1025 5525 318 5541 1545 7086 1220 8306.08 443.701
12/31/94 5000 228 1253 6253 286 5675 1745 7420 1371 8791.04 497.512
12/31/95 5500 265 1518 7018 486 7516 2622 10138 1960 12098.96 559.878
TOTAL $2,010
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 12.64 5.75 % 79.114 11.91 942
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/76 1000 39 39 1039 19 1162 19 1181 40 1221.14 83.127
12/31/77 1500 57 96 1596 33 1504 51 1555 93 1648.67 121.853
12/31/78 2000 83 179 2179 0 2187 56 2243 188 2431.25 162.3
12/31/79 2500 123 302 2802 35 3017 102 3119 340 3459.04 406.946
12/31/80 3000 182 484 3484 92 3960 216 4176 588 4764.76 493.757
12/31/81 3500 255 739 4239 358 3968 539 4507 774 5281.95 611.337
12/31/82 4000 350 1089 5089 366 5235 1118 6353 1342 7695.98 755.248
12/31/83 4500 374 1463 5963 361 6305 1643 7948 1866 9814.26 871.604
12/31/84 5000 428 1891 6891 466 6620 2075 8695 2276 10971.51 997.41
12/31/85 5500 486 2377 7877 510 8709 3202 11911 3352 15263.49 1129.792
12/31/86 6000 584 2961 8961 3027 8963 6352 15315 3840 19155.14 1452.247
12/31/87 6500 786 3747 10247 1141 9020 7293 16313 4380 20693.7 1641.055
12/31/88 7000 957 4704 11704 1310 9740 8806 18546 5441 23987.58 1853.754
12/31/89 7500 1136 5840 13340 1647 12026 12053 24079 7572 31651.1 2076.844
12/31/90 8000 1263 7103 15103 474 11906 11963 23869 8472 32341.19 2227.355
12/31/91 8500 1011 8114 16614 875 14901 15340 30241 11280 41521.68 2375.382
12/31/92 9000 1141 9255 18255 783 15733 16484 32217 12709 44926.98 2511.29
12/31/93 9500 1205 10460 19960 1939 16956 19201 36157 14515 50672.29 2706.853
12/31/94 10000 1324 11784 21784 1669 16455 19796 36251 14978 51229.41 2899.231
12/31/95 10500 1477 13261 23761 2712 20709 26935 47644 19899 67543.05 3125.546
TOTAL $17,817
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 14.44 5.75 % 69.252 13.61 943
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/66 1000 22 22 1022 72 861 68 929 22 951.8 76.511
12/31/67 1500 39 61 1561 87 1596 171 1767 67 1834.15 123.097
12/31/68 2000 61 122 2122 97 2252 306 2558 138 2696.52 166.144
12/31/69 2500 82 204 2704 191 2217 421 2638 191 2829.4 214.186
12/31/70 3000 101 305 3305 145 2549 546 3095 292 3387.03 270.314
12/31/71 3500 122 427 3927 82 3373 693 4066 449 4515.51 322.767
12/31/72 4000 141 568 4568 171 4207 932 5139 638 5777.34 377.357
12/31/73 4500 169 737 5237 138 3664 872 4536 661 5197.93 433.522
12/31/74 5000 289 1026 6026 0 3193 674 3867 784 4651.95 502.37
12/31/75 5500 303 1329 6829 40 4714 907 5621 1315 6936.4 582.401
12/31/76 6000 303 1632 7632 147 6395 1269 7664 1935 9599.89 653.498
12/31/77 6500 340 1972 8472 197 6324 1367 7691 2120 9811.67 725.179
12/31/78 7000 401 2373 9373 0 7523 1514 9037 2756 11793.83 787.305
12/31/79 7500 521 2894 10394 147 9073 1876 10949 3667 14616.45 1719.582
12/31/80 8000 702 3596 11596 355 10835 2518 13353 4938 18291.23 1895.464
12/31/81 8500 914 4510 13010 1283 10123 3492 13615 5312 18927.2 2190.648
12/31/82 9000 1180 5690 14690 1235 12495 5744 18239 7710 25949.6 2546.575
12/31/83 9500 1210 6900 16400 1167 14328 7667 21995 9753 31748.81 2819.61
12/31/84 10000 1339 8239 18239 1459 14457 8960 23417 10952 34369.26 3124.478
12/31/85 10500 1480 9719 20219 1552 18335 12994 31329 15144 46473.6 3439.941
12/31/86 11000 1742 11461 22461 9030 18361 22312 40673 16476 57149.38 4332.781
12/31/87 11500 2306 13767 25267 3351 18010 24914 42924 17836 60760.3 4818.422
12/31/88 12000 2769 16536 28536 3790 18971 29390 48361 21043 69404.91 5363.594
12/31/89 12500 3244 19780 32280 4706 22906 39421 62327 28104 90431.81 5933.846
12/31/90 13000 3573 23353 36353 1341 22278 38914 61192 30336 91528.62 6303.624
12/31/91 13500 2832 26185 39685 2454 27395 49480 76875 39552 116427.43 6660.608
12/31/92 14000 3175 29360 43360 2181 28531 52823 81354 43724 125078.78 6991.547
12/31/93 14500 3335 32695 47195 5364 30360 60673 91033 49115 140148.01 7486.539
12/31/94 15000 3640 36335 51335 4588 29113 61868 90981 49868 140849.25 7971.095
12/31/95 15500 4038 40373 55873 7412 36194 83110 119304 65312 184616.87 8543.122
TOTAL $52,782
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 1000 9.99 5.75 % 100.1 9.42 943
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/56 1000 26 26 1026 75 944 75 1019 25 1044.39 110.752
12/31/57 1500 43 69 1569 82 1137 139 1276 59 1335.37 176.17
12/31/58 2000 61 130 2130 90 2180 286 2466 149 2615.65 254.688
12/31/59 2500 77 207 2707 231 2759 532 3291 233 3524.74 329.723
12/31/60 3000 101 308 3308 225 3104 746 3850 327 4177.34 406.752
12/31/61 3500 116 424 3924 297 4076 1152 5228 493 5721.39 488.59
12/31/62 4000 137 561 4561 241 3685 1149 4834 538 5372.92 566.166
12/31/63 4500 157 718 5218 296 4774 1625 6399 782 7181.35 658.839
12/31/64 5000 186 904 5904 510 5621 2254 7875 1022 8897.16 761.743
12/31/65 5500 221 1125 6625 715 7099 3365 10464 1428 11892.5 873.806
12/31/66 6000 295 1420 7420 948 6919 3971 10890 1595 12485.43 1003.652
12/31/67 6500 362 1782 8282 789 8852 5569 14421 2279 16700.1 1120.812
12/31/68 7000 459 2241 9241 726 10156 6957 17113 2971 20084.75 1237.508
12/31/69 7500 525 2766 10266 1241 8649 6780 15429 2931 18360.3 1389.879
12/31/70 8000 580 3346 11346 827 8651 7267 15918 3407 19325.06 1542.303
12/31/71 8500 623 3969 12469 419 10185 8540 18725 4442 23167.75 1656.022
12/31/72 9000 665 4634 13634 809 11662 10171 21833 5553 27386.04 1788.768
12/31/73 9500 755 5389 14889 613 9502 8600 18102 5070 23172.91 1932.686
12/31/74 10000 1205 6594 16594 0 7703 6642 14345 5056 19401.53 2095.198
12/31/75 10500 1178 7772 18272 154 10514 8698 19212 7693 26905.23 2259.045
12/31/76 11000 1118 8890 19890 542 13549 11284 24833 10645 35478.83 2415.169
12/31/77 11500 1216 10106 21606 703 12913 11102 24015 11009 35024.19 2588.632
12/31/78 12000 1383 11489 23489 0 14818 12292 27110 13601 40711.36 2717.714
12/31/79 12500 1749 13238 25738 495 17351 14482 31833 17244 49077.53 5773.827
12/31/80 13000 2304 15542 28542 1166 20234 17714 37948 22121 60069.55 6224.824
12/31/81 13500 2949 18491 31991 4141 18544 19853 38397 22682 61079.04 7069.333
12/31/82 14000 3746 22237 36237 3919 22433 28574 51007 31338 82345.46 8081.007
12/31/83 14500 3794 26031 40531 3658 25317 35713 61030 38494 99524.63 8838.777
12/31/84 15000 4158 30189 45189 4530 25203 39452 64655 42023 106678.36 9698.033
12/31/85 15500 4551 34740 50240 4774 31547 54572 86119 56822 142941.16 10580.397
12/31/86 16000 5324 40064 56064 27588 31271 82687 113958 60641 174599.55 13237.267
12/31/87 16500 7004 47068 63568 10182 30357 89939 120296 64305 184601.75 14639.314
CONTINUED ON NEXT PAGE
THE INVESTMENT COMPANY OF AMERICA
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOMEINVM'T CAP GAIN FROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/88 17000 8369 55437 72437 11456 31646 103850 135496 74271 209767.73 16210.798
12/31/89 17500 9759 65196 82696 14158 37840 136770 174610 97465 272075.74 17852.739
12/31/90 18000 10712 75908 93908 4020 36516 134373 170889 103531 274420.26 18899.467
12/31/91 18500 8463 84371 102871 7332 44547 169633 214180 133696 347876.58 19901.406
12/31/92 19000 9461 93832 112832 6499 46091 180114 226205 146499 372704.86 20833.139
12/31/93 19500 9915 103747 123247 15943 48740 204519 253259 163287 416546.98 22251.441
12/31/94 20000 10797 114544 134544 13604 46466 206682 253148 164535 417683.21 23637.986
12/31/95 20500 11948 126492 146992 21932 57423 274802 332225 214017 546242.24 25277.29
TOTAL $165,930
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 2000 15.41 5.75 % 129.786 14.52 1884
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/91 2000 58 58 2058 50 2269 54 2323 61 2384.71 136.425
12/31/92 4000 116 174 4174 80 4251 135 4386 181 4567.66 255.319
12/31/93 6000 172 346 6346 276 6421 419 6840 362 7202.41 384.744
12/31/94 8000 235 581 8581 296 7840 692 8532 569 9101.75 515.096
12/31/95 10000 315 896 10896 576 11893 1426 13319 1032 14351.33 664.106
TOTAL $1,278
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 2000 14.33 5.75 % 139.567 13.51 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/86 2000 70 70 2070 363 1841 387 2228 67 2295.44 174.029
12/31/87 4000 167 237 4237 243 3563 630 4193 215 4408.42 349.597
12/31/88 6000 285 522 6522 390 5590 1039 6629 503 7132.63 551.208
12/31/89 8000 419 941 8941 607 8804 1844 10648 1021 11669.22 765.697
12/31/90 10000 533 1474 11474 200 10184 1959 12143 1503 13646.53 939.844
12/31/91 12000 478 1952 13952 414 14528 2803 17331 2322 19653.45 1124.339
12/31/92 14000 585 2537 16537 402 16798 3271 20069 2973 23042.98 1288.037
12/31/93 16000 662 3199 19199 1065 19550 4494 24044 3780 27824.1 1486.33
12/31/94 18000 770 3969 21969 969 20233 5214 25447 4308 29755.52 1683.957
12/31/95 20000 904 4873 24873 1659 27049 8043 35092 6238 41330.68 1912.572
TOTAL $6,312
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 2000 12.64 5.75 % 158.228 11.91 1884
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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/76 2000 76 76 2076 37 2324 38 2362 80 2442.23 166.251
12/31/77 4000 146 222 4222 85 3877 121 3998 217 4215.34 311.555
12/31/78 6000 238 460 6460 0 6378 133 6511 485 6996.11 467.03
12/31/79 8000 377 837 8837 107 9378 266 9644 940 10584.19 1245.199
12/31/80 10000 580 1417 11417 293 12787 623 13410 1706 15116.45 1566.471
12/31/81 12000 827 2244 14244 1163 13136 1679 14815 2335 17150.55 1985.017
12/31/82 14000 1159 3403 17403 1212 17715 3575 21290 4173 25463.53 2498.874
12/31/83 16000 1253 4656 20656 1208 21658 5318 26976 5887 32863.85 2918.637
12/31/84 18000 1444 6100 24100 1574 22999 6780 29779 7287 37066.37 3369.67
12/31/85 20000 1656 7756 27756 1735 30563 10551 41114 10843 51957.22 3845.834
12/31/86 22000 2000 9756 31756 10362 31703 21346 53049 12526 65575.72 4971.624
12/31/87 24000 2701 12457 36457 3925 32135 24604 56739 14416 71155.38 5642.774
12/31/88 26000 3303 15760 41760 4522 34937 29811 64748 18062 82810.37 6399.565
12/31/89 28000 3932 19692 47692 5705 43396 40936 84332 25300 109632.92 7193.761
12/31/90 30000 4384 24076 54076 1645 43185 40666 83851 28472 112323.37 7735.769
12/31/91 32000 3518 27594 59594 3047 54311 52226 106537 38042 144579.04 8271.112
12/31/92 34000 3980 31574 65574 2733 57561 56186 113747 42999 156746.33 8761.673
12/31/93 36000 4217 35791 71791 6779 62251 65616 127867 49243 177110.01 9461.005
12/31/94 38000 4635 40426 78426 5840 60581 67789 128370 50948 179318.43 10148.185
12/31/95 40000 5178 45604 85604 9506 76449 92455 168904 67854 236758.79 10955.983
TOTAL $61,478
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 2000 14.44 5.75 % 138.504 13.61 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 INCOMEINVM'T CAP GAIN FROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/66 2000 45 45 2045 145 1723 137 1860 43 1903.59 153.022
12/31/67 4000 105 150 4150 231 4321 401 4722 161 4883.01 327.719
12/31/68 6000 180 330 6330 286 6760 788 7548 368 7916.18 487.75
12/31/69 8000 250 580 8580 592 7037 1174 8211 543 8754.28 662.701
12/31/70 10000 329 909 10909 467 8462 1586 10048 869 10917.63 871.319
12/31/71 12000 403 1312 13312 271 11553 2047 13600 1383 14983.63 1071.024
12/31/72 14000 475 1787 15787 578 14706 2829 17535 2007 19542.92 1276.481
12/31/73 16000 581 2368 18368 472 12994 2703 15697 2128 17825.01 1486.656
12/31/74 18000 1004 3372 21372 0 11491 2088 13579 2594 16173.45 1746.593
12/31/75 20000 1070 4442 24442 140 17206 2826 20032 4417 24449.86 2052.885
12/31/76 22000 1075 5517 27517 522 23546 4021 27567 6561 34128.44 2323.243
12/31/77 24000 1217 6734 30734 705 23422 4414 27836 7249 35085.59 2593.17
12/31/78 26000 1441 8175 34175 0 28019 4887 32906 9496 42402.79 2830.627
12/31/79 28000 1881 10056 38056 532 33937 6119 40056 12722 52778.43 6209.227
12/31/80 30000 2543 12599 42599 1287 40697 8351 49048 17252 66300.76 6870.545
12/31/81 32000 3321 15920 47920 4665 38148 11976 50124 18686 68810.73 7964.205
12/31/82 34000 4303 20223 54223 4502 47244 20051 67295 27308 94603.99 9284.003
12/31/83 36000 4422 24645 60645 4262 54315 26980 81295 34681 115976.54 10299.87
12/31/84 38000 4902 29547 67547 5340 54946 31736 86682 39089 125771.58 11433.78
12/31/85 40000 5425 34972 74972 5689 69854 46270 116124 54216 170340.13 12608.448
12/31/86 42000 6394 41366 83366 33137 70084 80495 150579 59137 209716.33 15899.646
12/31/87 44000 8468 49834 93834 12308 68847 90117 158964 64189 223153.97 17696.588
12/31/88 46000 10177 60011 106011 13931 72629 106531 179160 75941 255101.64 19714.192
12/31/89 48000 11932 71943 119943 17310 87835 143147 230982 101657 332639.81 21826.759
12/31/90 50000 13151 85094 135094 4935 85543 141374 226917 109952 336869.5 23200.379
12/31/91 52000 10430 95524 147524 9037 105330 179889 285219 143533 428752.64 24528.183
12/31/92 54000 11699 107223 161223 8036 109796 192148 301944 158852 460796.43 25757.207
12/31/93 56000 12294 119517 175517 19769 116930 220962 337892 178612 516504.66 27591.061
12/31/94 58000 13423 132940 190940 16913 112222 225520 337742 181529 519271.38 29387.175
12/31/95 60000 14893 147833 207833 27337 139642 303270 442912 237954 680866.88 31507.028
TOTAL $193,399
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 14.44 5.75 % 692.521 13.61 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/66 10000 224 224 10224 723 8615 683 9298 219 9517.97 765.11
12/31/67 10000 266 490 10490 579 10319 1415 11734 533 12267.92 823.35
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 13152.6 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 21356.2 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 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 59637.4 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
12/31/95 10000 6520 70077 80077 11968 29931 149259 179190 118892 298082.29 13793.72
TOTAL $91,017
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 13.2 5.75 % 757.576 12.44 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 12690.45 960.67
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 15240.9 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 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 21145.9 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 78766.6 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 114585.1 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 10281.67
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
12/31/95 10000 6455 69166 79166 11850 32742 145441 178183 116963 295146.81 13657.881
TOTAL $89,404
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 15.81 5.75 % 632.511 14.9 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 11824.77 845.23
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 1009.79
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 146571.9 8385.12
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 175302.8 9920.928
12/31/95 10000 5009 53456 63456 9194 27337 111511 138848 90144 228992.07 10596.579
TOTAL $68,919
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 17.22 5.75 % 580.72 16.23 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 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 11712.7 765.036
12/31/73 10000 318 1375 11375 258 6963 1525 8488 1255 9743.1 812.602
12/31/74 10000 497 1872 11872 0 5377 1178 6555 1439 7994.81 863.37
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 13666.1 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 2197.55
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 30559.3 2998.95
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 3867.54
12/31/86 10000 1940 14356 24356 10051 15319 26852 42171 21437 63608.12 4822.45
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 5874.11
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
12/31/95 10000 4283 45498 55498 7861 25099 94229 119328 76460 195788.18 9060.073
TOTAL $58,586
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 14.02 5.75 % 713.267 13.21 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 20906.8 2459.623
12/31/80 10000 972 5695 15695 492 13766 3583 17349 7997 25346 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 5397.56
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 85075.8 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 8024.26
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 8947.54
12/31/94 10000 4336 45858 55858 5464 25207 77475 102682 65076 167758.52 9493.974
12/31/95 10000 4794 50652 60652 8798 30827 103590 134417 84720 219137.24 10140.548
TOTAL $64,935
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 13.29 5.75 % 752.445 12.53 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 10633.09 886.83
12/31/74 10000 542 1495 11495 0 6968 592 7560 1165 8725.1 942.235
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 2885.53
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 40076.1 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 4220.82
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 82954.2 6410.68
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 163574.9 9257.21
12/31/95 10000 4674 49098 59098 8579 32521 99599 132120 81552 213672.31 9887.659
TOTAL $62,914
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 14.84 5.75 % 673.854 13.99 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 2465.41
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 3040.96
12/31/84 10000 1424 9303 19303 1551 14825 9171 23996 12529 36525.39 3320.49
12/31/85 10000 1551 10854 20854 1627 18208 13350 31558 17162 48720.98 3606.29
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 116853.7 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
12/31/95 10000 3993 41706 51706 7330 29124 84562 113686 68876 182562.73 8448.067
TOTAL $53,584
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 16.24 5.75 % 615.764 15.31 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 8711.9 731.478
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 10999.62 812.98
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 2866.22
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 5770.43
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
12/31/95 10000 3447 35766 45766 6327 26613 72192 98805 58781 157586.67 7292.303
TOTAL $45,974
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 12.72 5.75 % 786.164 11.99 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/74 10000 480 480 10480 0 7280 0 7280 454 7734.69 835.28
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 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 61538.7 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 95810.8 6598.54
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 144782.3 7734.097
12/31/94 10000 3749 38542 48542 4723 27783 63945 91728 53279 145007.51 8206.424
12/31/95 10000 4143 42685 52685 7605 33978 85844 119822 69596 189418.35 8765.31
TOTAL $55,010
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 9.82 5.75 % 1018.33 9.26 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 16118.9 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 22031.7 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 3118.56
12/31/82 10000 1639 7014 17014 1715 20754 6197 26951 9093 36044.1 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 4200.17
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 75024.5 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 7612.64
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
12/31/95 10000 5051 51448 61448 9272 44012 104656 148668 82260 230928.18 10686.172
TOTAL $67,065
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 12.64 5.75 % 791.139 11.91 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 2610.67
12/31/83 10000 1218 5985 15985 1175 17816 6281 24097 7870 31967.3 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 130275.4 6959.156
12/31/94 10000 3373 33835 43835 4250 27959 57377 85336 45142 130478.07 7384.158
12/31/95 10000 3728 37563 47563 6843 34193 77045 111238 59201 170439.09 7887.047
TOTAL $49,444
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 15.59 5.75 % 641.437 14.69 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 1576.36
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 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 2597.99
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 51059.8 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 5034.32
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
12/31/95 10000 2876 28686 38686 5281 27723 59017 86740 44779 131519.09 6086.029
TOTAL $38,009
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 14.36 5.75 % 696.379 13.53 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/78 10000 367 367 10367 0 10432 0 10432 374 10806.6 721.402
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 1822.9
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 5511.54
12/31/94 10000 2671 26163 36163 3366 24610 44579 69189 34147 103336.55 5848.135
12/31/95 10000 2953 29116 39116 5420 30097 59963 90060 44925 134985.01 6246.414
TOTAL $38,822
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 15.89 5.75 % 629.327 14.98 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 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 5101.72
12/31/95 10000 2575 25081 35081 4728 27199 52310 79509 38247 117756.46 5449.165
TOTAL $33,868
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 9.02 5.75 %1108.647 8.5 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 1512.95
12/31/83 10000 706 2402 12402 681 12483 3102 15585 2940 18525.85 1645.28
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 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 49961.3 3440.861
12/31/91 10000 1538 13074 23074 1333 19379 25748 45127 18095 63222.5 3616.848
12/31/92 10000 1717 14791 24791 1180 19834 27532 47366 20274 67640 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
12/31/95 10000 2161 20704 30704 3966 23958 43617 67575 31198 98773.73 4570.742
TOTAL $28,313
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10.24 5.75 % 976.563 9.65 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 26470.3 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 41212.1 2838.299
12/31/91 10000 1269 10422 20422 1099 17070 20877 37947 14204 52151 2983.467
12/31/92 10000 1416 11838 21838 973 17471 22340 39811 15983 55794.9 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 62373.6 3529.915
12/31/95 10000 1782 16714 26714 3271 21104 35532 56636 24840 81476.49 3770.314
TOTAL $23,172
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 9.17 5.75 %1090.513 8.64 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 2193.61
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 3297.17
12/31/94 10000 1598 14344 24344 2013 19269 24872 44141 17678 61819.03 3498.53
12/31/95 10000 1767 16111 26111 3242 23566 33675 57241 23511 80752.05 3736.791
TOTAL $22,325
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 10.81 5.75 % 925.069 10.19 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 16117.4 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 30341.3 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
12/31/95 10000 1321 11619 21619 2425 19991 23933 43924 16469 60393.53 2794.703
TOTAL $16,249
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 11.95 5.75 % 836.82 11.26 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 1656.12
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
12/31/95 10000 1098 9306 19306 2017 18084 19156 37240 12998 50238.13 2324.763
TOTAL $13,171
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 11.67 5.75 % 856.898 11 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 1413.5
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 36010.8 1923.654
12/31/94 10000 933 7332 17332 1175 15141 12488 27629 8437 36066.82 2041.133
12/31/95 10000 1031 8363 18363 1892 18518 17173 35691 11421 47112.87 2180.142
TOTAL $11,953
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 14.33 5.75 % 697.837 13.51 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 1059.89
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 22611.8 1293.581
12/31/92 10000 614 3854 13854 422 12484 7058 19542 4649 24191.75 1352.25
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 27044.2 1530.515
12/31/95 10000 773 5970 15970 1418 15080 12231 27311 8015 35326.93 1634.749
TOTAL $8,647
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 13.99 5.75 % 714.796 13.19 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/87 10000 377 377 10377 548 9014 586 9600 340 9940.8 788.327
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 1257.28
12/31/95 10000 635 4618 14618 1165 15447 7446 22893 6127 29020.2 1342.906
TOTAL $5,614
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 13.38 5.75 % 747.384 12.61 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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
12/31/95 10000 602 4020 14020 1105 16151 6107 22258 5255 27513.03 1273.162
TOTAL $4,802
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 13.73 5.75 % 728.332 12.94 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 12279.1 845.668
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
12/31/95 10000 531 3169 13169 975 15739 4521 20260 4015 24275.81 1123.36
TOTAL $3,722
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 16.17 5.75 % 618.429 15.24 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 12007.71 686.94
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 14339.15 765.98
12/31/94 10000 371 1703 11703 468 10928 1657 12585 1776 14361.45 812.759
12/31/95 10000 411 2114 12114 753 13364 2783 16147 2612 18759.88 868.111
TOTAL $2,386
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 15.41 5.75 % 648.929 14.52 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/91 10000 289 289 10289 251 11343 270 11613 310 11923.46 682.12
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
12/31/95 10000 407 1728 11728 748 14023 2556 16579 2049 18628.25 862.02
TOTAL $2,230
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 18.55 5.75 % 539.084 17.48 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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
12/31/95 10000 323 1139 11139 591 11650 1757 13407 1315 14722.03 681.26
TOTAL $1,565
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 18.98 5.75 % 526.87 17.89 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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
12/31/95 10000 301 824 10824 553 11386 1444 12830 934 13764.3 636.941
TOTAL $1,299
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 19.86 5.75 % 503.525 18.72 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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
12/31/95 10000 270 514 10514 495 10881 874 11755 577 12332.01 570.662
TOTAL $802
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 18.75 5.75 % 533.333 17.67 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/95 10000 269 269 10269 494 11525 497 12022 288 12310.27 569.656
TOTAL $494
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIAL OFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 23 5.75 % 434.783 21.68 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 GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 21643.5 434.783
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 1171.15
12/31/43 10000 861 5767 10000 317 19704 7157 26861 0 26861.39 1185.41
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 3975.43
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 80779.8 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 11993.59
12/31/58 10000 3028 35429 10000 4478 44652 83387 128039 0 128039.89 12467.37
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 175369.7 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 16314.97
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 INCOMEINVM'T CAP GAIN FROM CAP GAIN 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 23437.62
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 394701.2 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 27664.97
12/31/78 10000 14386 202699 10000 0 65130 349291 414421 0 414421.25 27664.97
12/31/79 10000 17347 220046 10000 4980 73913 401756 475669 0 475669.18 55961.08
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 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 1017904.4 75344.515
12/31/86 10000 37328 432225 10000 193800 114696 1085821 1200517 0 1200517.7 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 112693.15
12/31/92 10000 52965 760542 10000 36062 155565 1896597 2052162 0 2052162.44 114710.03
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
12/31/95 10000 61704 933537 10000 112301 187913 2591744 2779657 0 2779657.82 128628.312
TOTAL **********
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
THE INVESTMENT COMPANY OF AMERICA
SALES NET ASSETINITIAL
INITIALOFFERINGCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPER SHARE VALUE
******** 10000 23 5.75 % 434.783 21.68 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES============= ================VALUE OF SHARES=====================
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOME INCOMEINVM'T CAP GAIN FROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV'DTOTAL REINV'D VALUE HELD
<S> <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 21643.5 434.783
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 35019.1 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 57691.9 2007.373
12/31/47 10000 2409 13178 23178 2722 23017 19803 42820 15397 58217.06 2199.36
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 21148.13
12/31/56 10000 5608 47365 57365 15840 41000 103036 144036 76611 220647.9 23398.505
12/31/57 10000 6228 53593 63593 12003 32957 94330 127287 67145 194432.38 25650.71
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 413552.4 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 650689.5 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 56841.68
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 INCOMINVM'T CAP GAIN FROM CAP GAI SUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'T REINV' 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 100365.51
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 *******1013700 152847 88609 1582155 1670764 1541232 3211996.96 315210.693
12/31/83 10000 147156 *******1160856 141845 97913 1908808 2006721 1852990 3859711.97 342780.814
12/31/84 10000 160449 *******1321305 174818 95652 2040832 2136484 1980702 4117186.57 374289.688
12/31/85 10000 174890 *******1496195 183402 117478 2741594 2859072 2632817 5491889.85 406505.54
12/31/86 10000 203830 *******1700025 1056395 114696 3802682 3917378 2768278 6685656.94 506873.157
12/31/87 10000 267489 *******1967514 388793 109652 4051233 4160885 2888292 7049177.79 559014.892
12/31/88 10000 318747 *******2286261 436300 112522 4597443 4709965 3279319 7989284.68 617409.944
12/31/89 10000 370835 *******2657096 537996 132522 5964134 6096656 4241933 10338589.1 678385.109
12/31/90 10000 406318 *******3063414 152486 126261 5836538 5962799 4446228 10409027.1 716875.144
12/31/91 10000 320422 *******3383836 277618 152000 7324213 7476213 5695678 13171891.7 753540.713
12/31/92 10000 357779 *******3741615 245747 155565 7741890 7897455 6194781 14092236.1 787715.823
12/31/93 10000 374395 *******4116010 602037 162783 8707073 8869856 6859509 15729365.3 840243.875
12/31/94 10000 407211 *******4523221 513107 153652 8732967 8886619 6867214 15753833.9 891558.226
12/31/95 10000 450124 *******4973345 826239 187913 ********11698209 8880487 20578696.3 952276.55
TOTAL **********
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-1-1995
<PERIOD-END> DEC-31-1995
<INVESTMENTS-AT-COST> 18,084,282
<INVESTMENTS-AT-VALUE> 25,578,148
<RECEIVABLES> 159,640
<ASSETS-OTHER> 313
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 25,738,101
<PAYABLE-FOR-SECURITIES> 24,023
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 35,760
<TOTAL-LIABILITIES> 59,783
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 16,719,194
<SHARES-COMMON-STOCK> 1,188,009,031
<SHARES-COMMON-PRIOR> 1,090,856,938
<ACCUMULATED-NII-CURRENT> 277,425
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 345
<ACCUM-APPREC-OR-DEPREC> 4,320,176
<NET-ASSETS> 25,678,318
<DIVIDEND-INCOME> 480,127
<INTEREST-INCOME> 260,461
<OTHER-INCOME> 0
<EXPENSES-NET> 134,493
<NET-INVESTMENT-INCOME> 606,095
<REALIZED-GAINS-CURRENT> 1,026,204
<APPREC-INCREASE-CURRENT> 5,346,380
<NET-CHANGE-FROM-OPS> 5,952,475
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 556,505
<DISTRIBUTIONS-OF-GAINS> 1,033,686
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 155,130,380
<NUMBER-OF-SHARES-REDEEMED> 127,074,306
<SHARES-REINVESTED> 69,096,019
<NET-CHANGE-IN-ASSETS> 6,398,725
<ACCUMULATED-NII-PRIOR> 227,698
<ACCUMULATED-GAINS-PRIOR> 28
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 58,981
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 134,493
<AVERAGE-NET-ASSETS> 22,424,179
<PER-SHARE-NAV-BEGIN> 17.67
<PER-SHARE-NII> .52
<PER-SHARE-GAIN-APPREC> 4.83
<PER-SHARE-DIVIDEND> .50
<PER-SHARE-DISTRIBUTIONS> .91
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 21.61
<EXPENSE-RATIO> .006
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
