SEC. File Nos. 2-47749
811-2333
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
Registration Statement
Under
the Securities Act of 1933
Post-Effective Amendment No. 45
and
Registration Statement
Under
The Investment Company Act of 1940
Amendment No. 28
NEW PERSPECTIVE FUND, INC.
(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:
MICHAEL J. FAIRCLOUGH, 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 November 16, 1995, it filed its 24f-2 notice for fiscal 1995.
Approximate date of proposed public offering:
It is proposed that this filing become effective on December 1, 1995, pursuant
to paragraph (b) of rule 485.
NEW PERSPECTIVE FUND, INC.
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
ITEM NUMBER OF PART "A" OF FORM N-1A CAPTIONS IN PROSPECTUS (PART "A")
<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 Investment Objective and Policies; Certain Securities and
Investment Techniques; Multiple Portfolio Counselor System;
Fund Organization and Management
5. Management of the Fund Fund Organization and Management; Certain Securities and
Investment Techniques; Multiple Portfolio Counselor System
6. Capital Stock and Other Securities Investment Objective and Policies; Certain Securities and Investment
Techniques; Fund Organization and Management; Dividends,
Distributions and Taxes
7. Purchase of Securities Being Offered Purchasing Shares; Fund Organization and Management
8. Redemption or Repurchase Redeeming Shares
9. Legal Proceedings N/A
</TABLE>
<TABLE>
<CAPTION>
ITEM NUMBER OF PART "B" OF FORM N-1A CAPTIONS IN STATEMENT OF ADDITIONAL
INFORMATION (PART "B")
<S> <C> <C>
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and History Fund Organization and Management (Part "A")
13. Investment Objectives and Policies Investment Policies; Description of Certain Securities; Investment
Restrictions
14. Management of the Registrant Fund Directors and Officers; Management
15. Control Persons and Principal Holder of Securities Fund Directors and Officers
16. Investment Advisory and Other Services Management
17. Brokerage Allocation and Other Practices Execution of Portfolio Transactions
18. Capital Stock and Other Securities Part "A"
19. Purchase, Redemption and Pricing of Purchase of Shares; Shareholder Account Services and Privileges; Redemption
Securities Being Offered of Shares
20. Tax Status Dividends, Distributions and Federal Taxes
21. Underwriter Management -- Principal Underwriter
22. Calculation of Performance Data Investment Results
23. Financial Statements Financial Statements
</TABLE>
<TABLE>
<CAPTION>
ITEM IN PART "C"
<S> <C>
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>
Prospectus
NEW
PERSPECTIVE
FUND(R)
AN OPPORTUNITY FOR LONG-TERM
GROWTH OF CAPITAL PRIMARILY
THROUGH INVESTMENTS IN STOCKS
OF COMPANIES BASED AROUND
THE WORLD
[LOGO OF THE AMERICAN FUNDS GROUP(R)]
December 1, 1995
NEW PERSPECTIVE FUND, INC.
333 South Hope Street
Los Angeles, California 90071
The primary investment objective of the fund is long-term growth of capital.
Future income is a secondary objective. In seeking to meet these investment
objectives, the fund normally invests on a global basis in a diversified
portfolio consisting primarily 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
December 1, 1995, which contains the fund's financial statements, without charge
by writing to the Secretary of the fund at the above address or telephoning
800/421-0180. These requests will be honored within three business days of
receipt.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED, OR GUARANTEED
BY, THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT
INSURANCE CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON. THE PURCHASE OF
FUND SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
07-010-1295
<PAGE>
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SUMMARY
OF EXPENSES
Average annual
expenses paid over
a 10-year period
would be
approximately $15
per year, assuming
a $1,000
investment and a
5% annual return
with a maximum
sales charge.
TABLE OF CONTENTS
<TABLE>
<S> <C>
Summary of Expenses..................... 2
Financial Highlights.................... 3
Investment Objectives and Policies...... 3
Investing Around the World.............. 4
Multiple Portfolio Counselor System..... 5
Investment Results...................... 6
Dividends, Distributions and Taxes...... 6
Fund Organization and Management........ 7
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)
This table is designed to help you understand the costs of investing in the
fund. These are historical expenses; your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
<TABLE>
<S> <C>
Maximum sales charge on purchases
(as a percentage of offering price).............................. 5.75%/1/
</TABLE>
The fund has no sales charge on reinvested dividends, deferred sales charge,/2/
redemption fees or exchange fees.
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
<TABLE>
<S> <C>
Management fees................................................... 0.44%
12b-1 expenses.................................................... 0.21%/3/
Other expenses (including audit, legal, shareholder
services, transfer agent and custodian expenses)................. 0.18%
Total fund operating expenses..................................... 0.83%
</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 $65 $82 $101 $154
a 5% annual return./4/
</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.
2
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FINANCIAL The following information has been audited by Price
HIGHLIGHTS Waterhouse LLP, independent accountants, whose
(For a share unqualified report covering each of the most recent
outstanding five years is included in the statement of additional
throughout the information. This information should be read in
fiscal year) conjunction with the financial statements and
accompanying notes which are also included in the
statement of additional information.
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30
--------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, begin-
ning of year............. $15.40 $14.21 $12.25 $11.77 $10.16 $11.96 $10.25 $13.73 $10.58 $ 8.48
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. .31 .22 .17 .21 .29 .27 .29 .26 .24 .24
Net realized and
unrealized gain (loss)
on investments........ 2.35 1.54 2.04 .71 2.05 (.77) 2.37 (2.35) 4.38 2.75
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total income (loss)
from Investment Oper-
ations............... 2.66 1.76 2.21 .92 2.34 (.50) 2.66 (2.09) 4.62 2.99
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net in-
vestment income....... (.237) (.173) (.178) (.24) (.30) (.29) (.32) (.25) (.22) (.21)
Dividends from net
realized non-U.S.
currency gains/1/..... (.003) (.027) (.022) -- -- -- -- -- -- --
Distributions from net
realized gains........ (.840) (.370) (.050) (.20) (.43) (1.01) (.63) (1.14) (1.25) (.68)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Distributions... ($1.08) ($.57) ($.25) ($.44) ($.73) ($1.30) ($.95) ($1.39) ($1.47) ($.89)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, end of
year..................... $16.98 $15.40 $14.21 $12.25 $11.77 $10.16 $11.96 $10.25 $13.73 $10.58
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return/2/........... 18.63% 12.61% 18.34% 8.04% 23.86% (4.88)% 27.99% (14.25)% 49.71% 38.82%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year
(in millions)......... $8,817 $6,279 $4,417 $3,082 $2,213 $1,421 $1,230 $972 $1,242 $869
Ratios of expenses to
average net assets.... .83% .84% .87% .85% .86% .82% .76% .69% .64% .66%
Ratio of net income to
average net assets.... 2.12% 1.48% 1.40% 1.82% 2.80% 2.55% 2.69% 2.47% 2.06% 2.40%
Portfolio turnover
rate.................. 22.40% 25.33% 15.02% 6.43% 8.16% 14.04% 29.21% 20.58% 17.29% 16.99%
</TABLE>
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/1/ Realized non-U.S. currency gains are treated as ordinary income for
federal income tax purposes.
/2/ 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 primary investment objective is long-term
OBJECTIVES growth of capital. Future income is a secondary
AND POLICIES objective.
The fund invests The fund's assets are invested on a global basis to
globally and aims take advantage of investment opportunities generated by
primarily to make changes in international trade patterns and economic
your capital grow and political relationships. International investing
over time. presents risks and opportunities which you should
consider. (See "Investing Around the World.") The
fund's success depends largely upon the ability of its
investment adviser, Capital Research and Management
Company, to foresee and respond to rapid, complex, and
often subtle changes in these patterns and
relationships. Capital Research and Management company
closely follows companies, industries, governments, and
securities and currency exchange markets worldwide.
The fund normally invests in a diversified portfolio
consisting primarily of common stocks. Assets may also
be invested in securities convertible into common
stocks and straight debt securities (generally rated in
the top three quality categories by Standard & Poor's
Corporation or
3
<PAGE>
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Moody's Investors Service, Inc. or determined to be of
equivalent quality by Capital Research and Management
Company). The fund may also hold cash or cash
equivalents, government securities, or nonconvertible
preferred stocks. These securities may be issued by
U.S. or non-U.S. entities and may be denominated in
U.S. dollars or other currencies. (See the statement of
additional information for a description of cash
equivalents.)
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 board of directors.
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 AND THE SPECIAL RISKS ASSOCIATED WITH GLOBAL
INVESTING DESCRIBED HEREIN.
INVESTING OPPORTUNITIES, RISKS AND COSTS The fund's assets are
AROUND THE invested globally which, in the opinion of Capital
WORLD Research and Management Company, enhances the fund's
ability to meet its primary objective--long-term growth
Global investing of capital.
involves expanded
opportunities, Of course, investing globally involves special risks,
special risks and particularly in certain developing countries, caused
increased costs. by, among other things: fluctuating currency values;
less stringent 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 various 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 market 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. Furthermore,
increased custodian costs may be associated with the
maintenance of assets in certain jurisdictions.
CURRENCY TRANSACTIONS In connection with its non-U.S.
investments, the fund has the ability to hold
currencies other than the U.S. dollar and to enter into
forward currency contracts to facilitate settlements
and to protect against changes in exchange rates.
However, there is no assurance that such strategies
will be successful. Moreover, due to the expenses
involved, the fund will not generally attempt to
protect against all potential changes in exchange
rates.
4
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MULTIPLE The basic investment philosophy of Capital Research and
PORTFOLIO Management Company is to seek fundamental values at
COUNSELOR reasonable prices, using a system of multiple portfolio
SYSTEM counselors in managing mutual fund assets. Under this
system the portfolio of the fund is divided into seg-
Capital Research ments which are managed by individual counselors. Each
and Management counselor decides how his segment will be invested
Company, the (within the limits provided by the fund's objectives
fund's investment and policies and by Capital Research and Management
adviser, uses a Company's investment committee). In addition, Capital
system of multiple Research and Management Company's research profession-
portfolio als make investment decisions with respect to a portion
counselors to of the fund's portfolio. The primary individual portfo-
manage fund lio counselors for the fund are listed below.
assets.
<TABLE>
<CAPTION>
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YEARS OF EXPERIENCE
AS INVESTMENT PROFESSIONAL
YEARS OF EXPERIENCE AS (APPROXIMATE)
PORTFOLIO COUNSELORS PORTFOLIO COUNSELOR
FOR (AND RESEARCH WITH CAPITAL
NEW PERSPECTIVE PRIMARY TITLE(S) PROFESSIONAL, IF RESEARCH AND
FUND, INC. APPLICABLE) FOR MANAGEMENT
NEW PERSPECTIVE COMPANY OR TOTAL
FUND, INC. ITS AFFILIATES YEARS
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mark E. Denning Senior Vice President, 3 years (in addition 13 years 13 years
Capital Research to 4 years as a research
Company* professional prior to
becoming a portfolio
counselor for the fund)
- --------------------------------------------------------------------------------------------------------
William R. Grimsley Senior Vice President Since the fund began 26 years 33 years
of the fund. operations
Senior Vice President
and Director, Capital
Research and
Management Company
- --------------------------------------------------------------------------------------------------------
Gregg E. Ireland Vice President of the 3 years (in addition 23 years 23 years
fund. Vice President, to 7 years as a research
Capital Research and professional prior to
Management Company becoming a portfolio
counselor for the fund)
- --------------------------------------------------------------------------------------------------------
William C. Newton Senior Partner, The Since the fund began 36 years 43 years
Capital Group Partners operations
L.P.*
- --------------------------------------------------------------------------------------------------------
Thierry Vandeventer Senior Vice President 17 years (in addition to 32 years 32 years
of the fund. Chairman 5 years as a research
of the Board and Chief professional prior to
Executive Officer, becoming a portfolio
Capital Research counselor for the fund)
Company*
- --------------------------------------------------------------------------------------------------------
The fund began operations on March 13, 1973.
* Company affiliated with Capital Research and Management Company.
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</TABLE>
5
<PAGE>
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INVESTMENT The fund may from time to time compare its investment
RESULTS results to various unmanaged indices or other mutual
funds in reports to shareholders, sales literature and
The fund has advertisements. The results may be calculated on a to-
averaged a total tal return, yield and/or distribution rate basis for
return of 14.44% a various periods, with or without sales charges. Results
year (assuming the calculated without a sales charge will be higher. Total
maximum sales returns assume the reinvestment of all dividends and
charge was paid) capital gain distributions. The fund's distribution
over its lifetime rate is calculated by dividing the dividends paid by
(March 13, 1973 the fund over the last 12 months by the sum of the
through month-end price and the capital gains paid over the
September 30, last 12 months. The SEC yield reflects income earned by
1995). the fund, while the distribution rate reflects divi-
dends paid by the fund. Among the elements used to cal-
culate the SEC yield are the dividend and interest in-
come earned and expenses paid by the fund, whereas the
income paid to shareholders is used to calculate the
distribution rate.
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 September 30, 1995, were
11.81%, 14.80% and 15.77%, respectively. These results
were calculated in accordance with Securities and
Exchange Commission rules which require that the
maximum sales charge be deducted. Of course, past
results are not an indication of future results.
Further information regarding the fund's investment
results is contained in the fund's annual report which
may be obtained without charge by writing to the
Secretary of the fund at the address indicated on the
cover of this prospectus.
DIVIDENDS, DIVIDENDS AND DISTRIBUTIONS Dividends are usually paid
DISTRIBUTIONS in June and December. Capital gains, if any, are
AND TAXES usually distributed in December. When a dividend or
capital gain is distributed, the net asset value per
Income share is reduced by the amount of the payment.
distributions are
usually made in FEDERAL TAXES The fund intends to operate as a
June and December. "regulated investment company" under the Internal
Revenue Code. In any fiscal year in which the fund so
qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved of federal income tax.
All dividends and capital gains are taxable whether
they are reinvested or received in cash--unless you are
exempt from taxation or entitled to tax deferral. Early
each year, you will be notified as to the amount and
federal tax status of all dividends and capital gains
paid during the prior year. Such dividends and capital
gains may also be subject to state or local taxes.
6
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IF YOU HAVE NOT FURNISHED A CERTIFIED CORRECT TAXPAYER
IDENTIFICATION NUMBER (GENERALLY YOUR SOCIAL SECURITY
NUMBER) AND HAVE NOT CERTIFIED THAT WITHHOLDING DOES
NOT APPLY, OR IF THE INTERNAL REVENUE SERVICE HAS
NOTIFIED THE FUND THAT THE TAXPAYER IDENTIFICATION
NUMBER LISTED ON YOUR ACCOUNT IS INCORRECT ACCORDING TO
THEIR RECORDS OR THAT YOU ARE SUBJECT TO BACKUP
WITHHOLDING, FEDERAL LAW GENERALLY REQUIRES THE FUND TO
WITHHOLD 31% FROM ANY DIVIDENDS AND/OR REDEMPTIONS
(INCLUDING EXCHANGE REDEMPTIONS). Amounts withheld are
applied to your federal tax liability; a refund may be
obtained from the Service if withholding results in
overpayment of taxes. Federal law also requires the
fund to withhold 30% or the applicable tax treaty rate
from dividends paid to certain nonresident alien, non-
U.S. partnership and non-U.S. corporation shareholder
accounts.
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
adviser for further information.
FUND FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
ORGANIZATION end, diversified management investment company, was
AND organized as a Maryland corporation in 1972. 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
American Funds certain fees for services rendered to the fund as
Group, which is described 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. Shareholders have one vote per share owned and,
investment at the request of the holders of at least 10% of the
advisers. shares, the fund will hold a meeting at which any
member of the board could be removed by a majority
vote. There will not usually be a shareholder meeting
in any year except, for example, when the election of
directors is required to be acted upon by shareholders
under the Investment Company Act of 1940.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071 and at 135 South State College
Boulevard, Brea, CA 92621. (See "The American Funds
Shareholder Guide: Purchasing Shares--
7
<PAGE>
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Investment Minimums and Fund Numbers" for a listing of
funds in The American Funds Group.) Capital Research
and Management Company manages the investment portfolio
and business affairs of the fund and receives a fee at
the annual rates of 0.60% on the first $500 million of
the fund's net assets, 0.50% on net assets in excess of
$500 million but not exceeding $1 billion, 0.46% on net
assets in excess of $1 billion but not exceeding $1.5
billion, 0.43% on net assets in excess of $1.5 billion
but not exceeding $2.5 billion, 0.41% on net assets in
excess of $2.5 billion but not exceeding $4 billion,
0.40% on net assets in excess of $4 billion but not
exceeding $6.5 billion, and 0.395% on net assets in
excess of $6.5 billion.
Capital Research and Management Company is a wholly
owned subsidiary of The Capital Group Companies, Inc.
(formerly "The Capital Group, Inc."), which is located
at 333 South Hope Street, Los Angeles, CA 90071. The
research activities of Capital Research and Management
Company are conducted by affiliated companies which
have offices in Los Angeles, San Francisco, New York,
Washington, D.C., London, Geneva, Singapore, Hong Kong
and Tokyo.
Capital Research and Management Company and its
affiliated companies have adopted a personal investing
policy that is consistent with the recommendations
contained in the report dated May 9, 1994 issued by the
Investment Company Institute's Advisory Group on
Personal Investing. (See the statement of additional
information.)
PORTFOLIO TRANSACTIONS Orders for the fund's portfolio
securities transactions are placed by Capital Research
and Management Company, which strives to obtain the
best available prices, taking into account the costs
and quality of executions. In the over-the-counter
market, purchases and sales are transacted directly
with principal market-makers except in those
circumstances where it appears better prices and
executions are available elsewhere.
Subject to the above policy, when two or more brokers
are in a position to offer comparable prices and
executions, preference may be given to brokers that
have sold shares of the fund or have provided
investment research, statistical, and other related
services for the benefit of the fund and/or other funds
served by Capital Research and Management Company.
8
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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 is located
at 333 South Hope Street, Los Angeles, CA 90071, 135
South State College Boulevard, Brea, CA 92621, 8000 IH-
10 West, San Antonio, TX 78230, 8332 Woodfield Crossing
Boulevard, Indianapolis, IN 46240, and 5300 Robin Hood
Road, Norfolk, VA 23513. Telephone conversations with
American Funds Distributors may be recorded or
monitored for verification, recordkeeping and quality
assurance purposes.
PLAN OF DISTRIBUTION The fund has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
the categories of expenses are approved in advance by
the board and the expenses paid under the plan were
incurred within the last 12 months and accrued while
the plan 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 $7,497,000 for
the fiscal year ended September 30, 1995. Telephone
conversations with American Funds Service Company may
be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
9
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AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
SERVICE ADDRESS AREAS SERVED
AREA
- --------------------------------------------------------------------
WEST P.O. Box 2205 AK, AZ, CA, HI, ID,
Brea, CA 92622-2205 MT, NV, OR, UT, WA
Fax: 714/671-7080 and outside the U.S.
- --------------------------------------------------------------------
CENTRAL- P.O. Box 659522 AR, CO, IA, KS, LA,
WEST San Antonio, TX 78265-9522 MN, MO, ND, NE, NM,
Fax: 210/530-4050 OK, SD, TX, and WY
- --------------------------------------------------------------------
CENTRAL- P.O. Box 6007 AL, IL, IN, KY, MI,
EAST Indianapolis, IN 46206-6007 MS, OH, TN and WI
Fax: 317/735-6620
- --------------------------------------------------------------------
EAST P.O. Box 2280 CT, DE, FL, GA, MA,
Norfolk, VA 23501-2280 MD, ME, NC, NH,
Fax: 804/670-4773 NJ, NY, PA, RI, SC, VA,
VT, WV and Washington, D.C.
- --------------------------------------------------------------------
ALL SHAREHOLDERS MAY CALL AMERICAN FUNDS SERVICE
COMPANY AT 800/421-0180 FOR SERVICE.
- --------------------------------------------------------------------
[MAP OF UNITED STATES]
- --------------------------------------------------------------------
West (light grey); Central-West (white); Central-East (dark grey);
East (red)
10
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THE AMERICAN FUNDS SHAREHOLDER GUIDE
---------------------------------------------------------
PURCHASING SHARES METHOD INITIAL INVESTMENT ADDITIONAL INVESTMENTS
---------------------------------------------------------
---------------------------------------------------------
Your investment See "Investment $50 minimum (except
dealer can help Minimums and Fund where a lower
you establish your Numbers" for minimum is noted
account--and help initial under "Investment
you add to it investment Minimums and Fund
whenever you like. minimums. Numbers").
---------------------------------------------------------
By Visit any Mail directly to
contacting investment dealer your investment
your who is registered dealer's address
investment in the state printed on your
dealer where the account statement.
purchase is made
and who has a
sales agreement
with American
Funds
Distributors.
---------------------------------------------------------
By mail Make your check Fill out the account
payable to the additions form at the
fund and mail to bottom of a recent
the address account statement,
indicated on the make your check
account payable to the fund,
application. write your account
Please indicate number on your check,
an investment and mail the check
dealer on the and form in the
account envelope provided
application. with your account
statement.
---------------------------------------------------------
By wire Call 800/421-0180 Your bank should wire
to obtain your your additional
account investments in the
number(s), if same manner as
necessary. Please described under
indicate an "Initial Investment."
investment dealer
on the account.
Instruct your
bank to wire
funds to:
Wells Fargo Bank
155 Fifth Street
Sixth Floor
San Francisco,
CA 94106
(ABA #121000248)
For credit to the
account of:
American Funds
Service Company
a/c #4600-076178
(fund name) (your
fund acct. no.)
---------------------------------------------------------
THE FUNDS AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE
RIGHT TO REJECT ANY PURCHASE ORDER.
SHARE PRICE Shares are purchased at the 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 Municipal Bond Fund(SM)....... $1,000 40
American High-Income Trust(R)...................... 1,000 21
The Bond Fund of America(SM)....................... 1,000 08
Capital World Bond Fund(R)......................... 1,000 31
Intermediate Bond Fund of America(R)............... 1,000 23
Limited Term Tax-Exempt Bond Fund of America(SM)... 1,000 43
The Tax-Exempt Bond Fund of America(SM)............ 1,000 19
The Tax-Exempt Fund of California(R)*.............. 1,000 20
The Tax-Exempt Fund of Maryland(R)*................ 1,000 24
The Tax-Exempt Fund of Virginia(R)*................ 1,000 25
U.S. Government Securities Fund(SM)................ 1,000 22
MONEY MARKET FUNDS
The Cash Management Trust of America(R)............ 2,500 09
The Tax-Exempt Money Fund of America(SM)........... 2,500 39
The U.S. Treasury Money Fund of America(SM)........ 2,500 49
</TABLE>
--------
*Available only in certain states.
For retirement plan investments, the minimum is $250,
except that the money market funds have a minimum of
$1,000 for individual retirement accounts (IRAs). Mini-
mums are reduced to $50 for purchases through "Auto-
matic Investment Plans" (except for the money market
funds) or to $25 for purchases by retirement plans
through payroll deductions and may be reduced or waived
for shareholders of other funds in The American Funds
Group. TAX-EXEMPT FUNDS SHOULD NOT SERVE AS RETIREMENT
PLAN INVESTMENTS. The minimum is $50 for additional in-
vestments (except as noted above).
SALES CHARGES The sales charges you pay when purchasing
the stock, stock/bond, and bond funds of The American
Funds Group are set forth below. The money market funds
of The American Funds Group are offered at net asset
value. (See "Investment Minimums and Fund Numbers" for
a listing of the funds.)
12
<PAGE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DEALER
SALES CHARGE AS CONCESSION
PERCENTAGE OF THE: AS PERCENTAGE
------------------ OF THE
AMOUNT OF PURCHASE NET AMOUNT OFFERING OFFERING
AT THE OFFERING PRICE INVESTED PRICE PRICE
- --------------------- ---------- -------- -------------
<S> <C> <C> <C>
STOCK AND STOCK/BOND FUNDS
Less than $50,000.................... 6.10% 5.75% 5.00%
$50,000 but less than $100,000....... 4.71 4.50 3.75
BOND FUNDS
Less than $25,000.................... 4.99 4.75 4.00
$25,000 but less than $50,000........ 4.71 4.50 3.75
$50,000 but less than $100,000....... 4.17 4.00 3.25
STOCK, STOCK/BOND, AND BOND FUNDS
$100,000 but less than $250,000...... 3.63 3.50 2.75
$250,000 but less than $500,000...... 2.56 2.50 2.00
$500,000 but less than $1,000,000.... 2.04 2.00 1.60
$1,000,000 or more................... none none (see below)
</TABLE>
Commissions of up to 1% will be paid to dealers who
initiate and are responsible for purchases of $1
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 promotional
incentives to dealers. Currently these incentives are
limited to the top one hundred dealers who have sold
shares of the fund or other funds in The American Funds
Group. These incentive payments will be based on a pro
rata share of a qualifying dealer's sales. American
Funds Distributors will, on an annual basis, determine
the advisability of continuing these promotional
incentives.
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 one year of the
purchase. (See "Redeeming Shares--Contingent Deferred
Sales Charge.")
Qualified dealers currently are paid a continuing
service fee not to exceed 0.25% of average net assets
(0.15% in the case of the money market funds) annually
in order to promote selling efforts and to
13
<PAGE>
- -------------------------------------------------------------------------------
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>
- -------------------------------------------------------------------------------
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>
- -------------------------------------------------------------------------------
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>
- -------------------------------------------------------------------------------
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 specifying the name of the fund, the
Funds Service number of shares or dollar amount to
You may take money Company (at be sold, your name and account
out of your the number. You should also enclose any
account whenever appropriate share certificates you wish to
you please. address redeem. For redemptions over $50,000
indicated and for certain redemptions of
under "Fund $50,000 or less (see below), your
Organization signature must be guaranteed by a
and bank, savings association, credit
Management-- union, or member firm of a domestic
Transfer stock exchange or the National
Agent") Association of Securities Dealers,
Inc., that is an eligible guarantor
institution. You should verify with
the institution that it is an
eligible guarantor prior to signing.
Additional documentation may be
required for redemption of shares
held in corporate, partnership or
fiduciary accounts. Notarization by a
Notary Public is not an acceptable
signature guarantee.
--------------------------------------------------------
By contacting If you redeem shares through your
your investment dealer, you may be charged
investment for this service. SHARES HELD FOR YOU
dealer IN YOUR INVESTMENT DEALER'S STREET
NAME MUST BE REDEEMED THROUGH THE
DEALER.
--------------------------------------------------------
You may have You may use this option, provided the
a redemption account is registered in the name of
check sent to an individual(s), a UGMA/UTMA
you by using custodian, or a non-retirement plan
American trust. These redemptions may not
FundsLine(R) exceed $10,000 per day, per fund
or by account and the check must be made
telephoning, payable to the shareholder(s) of
faxing, or record and be sent to the address of
telegraphing record provided the address has been
American used with the account for at least 10
Funds Service days. See "Transfer Agent" and
Company "Exchange Privilege" above for the
(subject to appropriate telephone or fax number.
the
conditions
noted in this
section and
in "Telephone
Redemptions
and
Exchanges"
below)
--------------------------------------------------------
In the case Upon request (use the account
of the money application for the money market
market funds, funds) you may establish telephone
you may have redemption privileges (which will
redemptions enable you to have a redemption sent
wired to your to your bank account) and/or check
bank by writing privileges. If you request
telephoning check writing privileges, you will be
American provided with checks that you may use
Funds Service to draw against your account. These
Company checks may be made payable to anyone
($1,000 or you designate and must be signed by
more) or by the authorized number of registered
writing a shareholders exactly as indicated on
check ($250 your checking account signature card.
or more)
--------------------------------------------------------
A SIGNATURE GUARANTEE IS NOT CURRENTLY REQUIRED FOR ANY
REDEMPTION OF $50,000 OR LESS PROVIDED THE REDEMPTION
CHECK IS MADE PAYABLE TO THE REGISTERED SHAREHOLDER(S)
AND IS MAILED TO THE ADDRESS OF RECORD, PROVIDED THE
ADDRESS HAS BEEN USED WITH THE ACCOUNT FOR AT LEAST 10
DAYS.
17
<PAGE>
- -------------------------------------------------------------------------------
THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND
ALL REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
TELEPHONE REDEMPTIONS AND EXCHANGES By using the
telephone (including American FundsLine(R)), fax or
telegraph redemption and/or exchange options, you agree
to hold the fund, American Funds Service Company, any
of its affiliates or mutual funds managed by such
affiliates, and each of their respective directors,
trustees, officers, employees and agents harmless from
any losses, expenses, costs or liability (including
attorney fees) which may be incurred in connection with
the exercise of these privileges. Generally, all
shareholders are automatically eligible to use these
options. However, you may elect to opt out of these
options by writing American Funds Service Company (you
may reinstate them at any time also by writing American
Funds Service Company). If American Funds Service
Company does not employ reasonable procedures to
confirm that the instructions received from any person
with appropriate account information are genuine, the
fund may be liable for losses due to unauthorized or
fraudulent instructions. In the event that shareholders
are unable to reach the fund by telephone because of
technical difficulties, market conditions, or a natural
disaster, redemption and exchange requests may be made
in writing only.
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions
within the first year on investments of $1 million or
more and on any investment made with no initial sales
charge by any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees. The charge is 1% of the
lesser of the value of the shares redeemed (exclusive
of reinvested dividends and capital gain distributions)
or the total cost of such shares. Shares held for the
longest period are assumed to be redeemed first for
purposes of calculating this charge. The charge is
waived for exchanges (except if shares acquired by
exchange were then redeemed within 12 months of the
initial purchase); for distributions from qualified
retirement plans and other employee benefit plans; for
redemptions resulting from participant-directed
switches among investment options within a participant-
directed employer-sponsored retirement plan; for
distributions from 403(b) plans or IRAs due to death,
disability or attainment of age 59 1/2; for tax-free
returns of excess contributions to IRAs; for
redemptions through certain automatic withdrawals not
exceeding 10% of the amount that would otherwise be
subject to the charge; and for redemptions in
connection with loans made by qualified retirement
plans.
REINSTATEMENT PRIVILEGE You may reinvest proceeds from
a redemption or a dividend or capital gain distribution
without 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
Prospectus
for Eligible Retirement Plans
NEW
PERSPECTIVE
FUND(R)
AN OPPORTUNITY FOR LONG-TEM GROWTH OF
CAPITAL PRIMARILY THROUGH INVESTMENTS IN
STOCKS OF COMPANIES BASED AROUND THE WORLD
December 1, 1995
[LOGO OF THE AMERICAN FUNDS GROUP(R)]
NEW PERSPECTIVE FUND, INC.
333 South Hope Street
Los Angeles, California 90071
The primary investment objective of the fund is long-term growth of capital.
Future income is a secondary objective. In seeking to meet these investment
objectives, the fund normally invests on a global basis in a diversified
portfolio consisting primarily of common stocks.
This prospectus relates only to shares of the fund offered without a sales
charge to eligible retirement plans. For a prospectus regarding shares of the
fund to be acquired otherwise, contact the Secretary of the fund at the
address indicated above.
This prospectus presents information you should know before investing in the
fund. It should be retained for future reference.
You may obtain the statement of additional information for the fund dated
December 1, 1995, which contains the fund's financial statements, without
charge by writing to the Secretary of the fund at the above address or
telephoning 800/421-0180. These requests will be honored within three business
days of receipt.
SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED, OR
GUARANTEED BY, THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL
DEPOSIT INSURANCE CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON. THE
PURCHASE OF FUND SHARES INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS
OF PRINCIPAL.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
RP 07-010-1295
<PAGE>
- -------------------------------------------------------------------------------
SUMMARY OF
EXPENSES
Average annual expenses
paid over a 10-year
period would be
approximately $10 per
year, assuming a $1,000
investment and a 5%
annual return with no
sales charge.
TABLE OF CONTENTS
<TABLE>
<S> <C>
Summary of Expenses......... 2
Financial Highlights........ 3
Investment Objectives and
Policies................... 3
Investing Around the World.. 4
Multiple Portfolio
Counselor System........... 5
Investment Results.......... 6
Dividends, Distributions
and Taxes.................. 6
Fund Organization and
Management................. 7
Purchasing Shares........... 9
Shareholder Services........ 10
Redeeming Shares............ 10
</TABLE>
This table is designed to help you understand the costs of investing in the
fund. These are historical expenses; your actual expenses may vary.
SHAREHOLDER TRANSACTION EXPENSES
Certain retirement plans may purchase shares of the fund with no sales
charge./1/ The fund also has no sales charge on reinvested dividends, deferred
sales charge, redemption fees or exchange fees.
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
<TABLE>
<S> <C>
Management fees........................................................ 0.44%
12b-1 expenses......................................................... 0.21%/2/
Other expenses (including audit, legal, shareholder services,
transfer agent and custodian expenses)................................ 0.18%
Total fund operating expenses.......................................... 0.83%
</TABLE>
<TABLE>
<CAPTION>
EXAMPLE 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following cumulative
expenses on a $1,000 investment,
assuming a 5% annual return./3/ $8 $26 $46 $103
</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 fund's average net assets
annually. (See "Fund Organization and Management--Plan of Distribution.")
Due to these distribution expenses, long-term shareholders may pay more than
the economic equivalent of the maximum front-end sales charge permitted by
the National Association of Securities Dealers.
/3/ Use of this assumed 5% return is required by the Securities and Exchange
Commission; it is not an illustration of past or future investment results.
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES; ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
2
<PAGE>
- -------------------------------------------------------------------------------
FINANCIAL The following information has been audited by Price
HIGHLIGHTS Waterhouse LLP, independent accountants, whose
unqualified report covering each of the most recent
(For a share five years is included in the statement of additional
outstanding information. This information should be read in
throughout the conjunction with the financial statements and
fiscal year) accompanying notes which are also included in the
statement of additional information.
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30
--------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, begin-
ning of year........... $15.40 $14.21 $12.25 $11.77 $10.16 $11.96 $10.25 $13.73 $10.58 $ 8.48
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net Investment Income.. .31 .22 .17 .21 .29 .27 .29 .26 .24 .24
Net realized and
unrealized gain (loss)
on investments........ 2.35 1.54 2.04 .71 2.05 (.77) 2.37 (2.35) 4.38 2.75
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total income (loss)
from Investment Oper-
ations............... 2.66 1.76 2.21 .92 2.34 (.50) 2.66 (2.09) 4.62 2.99
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS
Dividends from net in-
vestment income....... (.237) (.173) (.178) (.24) (.30) (.29) (.32) (.25) (.22) (.21)
Dividends from net
realized non-U.S.
currency gains/1/..... (.003) (.027) (.022) -- -- -- -- -- -- --
Distributions from net
realized gains........ (.840) (.370) (.050) (.20) (.43) (1.01) (.63) (1.14) (1.25) (.68)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total Distributions... ($1.08) ($.57) ($.25) ($.44) ($.73) ($1.30) ($.95) ($1.39) ($1.47) ($.89)
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net Asset Value, end of
year................... $16.98 $15.40 $14.21 $12.25 $11.77 $10.16 $11.96 $10.25 $13.73 $10.58
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total Return/2/......... 18.63% 12.61% 18.34% 8.04% 23.86% (4.88)% 27.99% (14.25)% 49.71% 38.82%
RATIOS/SUPPLEMENTAL DATA
Net Assets, end of year
(in millions)......... $8,817 $6,279 $4,417 $3,082 $2,213 $1,421 $1,230 $ 972 $1,242 $ 869
Ratios of expenses to
average net assets.... .83% .84% .87% .85% .86% .82% .76% .69% .64% .66%
Ratio of net income to
average net assets.... 2.12% 1.48% 1.40% 1.82% 2.80% 2.55% 2.69% 2.47% 2.06% 2.40%
Portfolio turnover
rate.................. 22.40% 25.33% 15.02% 6.43% 8.16% 14.04% 29.21% 20.58% 17.29% 16.99%
</TABLE>
-----------------
/1/ Realized non-U.S. currency gains are treated as ordinary income for
federal income tax purposes.
/2/ 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 primary investment objective is long-term
OBJECTIVES growth of capital. Future income is a secondary objec-
AND POLICIES tive.
The fund invests The fund's assets are invested on a global basis to
globally and aims take advantage of investment opportunities generated by
primarily to make changes in international trade patterns and economic
your capital grow and political relationships. International investing
over time. presents risks and opportunities which you should con-
sider. (See "Investing Around the World.") The fund's
success depends largely upon the ability of its invest-
ment adviser, Capital Research and Management Company,
to foresee and respond to rapid, complex, and often
subtle changes in these patterns and relationships.
Capital Research and Management Company closely follows
companies, industries, governments, and securities and
currency exchange markets worldwide.
The fund normally invests in a diversified portfolio
consisting primarily of common stocks. Assets may also
be invested in securities convertible into common
stocks and straight debt securities (generally rated in
the top three quality categories by Standard & Poor's
Corporation or
3
<PAGE>
- -------------------------------------------------------------------------------
Moody's Investors Service, Inc. or determined to be of
equivalent quality by Capital Research and Management
Company). The fund may also hold cash or cash equiva-
lents, government securities, or nonconvertible pre-
ferred stocks. These securities may be issued by U.S.
or non-U.S. entities and may be denominated in U.S.
dollars or other currencies. (See the statement of ad-
ditional information for a description of cash equiva-
lents.)
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
board of directors.
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 AND THE SPECIAL RISKS ASSOCIATED WITH GLOBAL
INVESTING DESCRIBED HEREIN.
INVESTING OPPORTUNITIES, RISKS AND COSTS The fund's assets are
AROUND invested globally which, in the opinion of Capital
THE WORLD Research and Management Company, enhances the fund's
ability to meet its primary objective--long-term growth
Global investing of capital.
involves expanded
opportunities, Of course, investing globally involves special risks,
special risks and particularly in certain developing countries, caused
increased costs. by, among other things: fluctuating currency values;
less stringent 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 various 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 Manage-
ment Company, global investing also can reduce certain
portfolio market 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. Furthermore,
increased custodian costs may be associated with the
maintenance of assets in certain jurisdictions.
CURRENCY TRANSACTIONS In connection with its non-U.S.
investments, the fund has the ability to hold
currencies other than the U.S. dollar and to enter into
forward currency contracts to facilitate settlements
and to protect against changes in exchange rates.
However, there is no assurance that such strategies
will be successful. Moreover, due to the expenses
involved, the fund will not generally attempt to
protect against all potential changes in exchange
rates.
4
<PAGE>
- -------------------------------------------------------------------------------
MULTIPLE The basic investment philosophy of Capital Research and
PORTFOLIO Management Company is to seek fundamental values at
COUNSELOR reasonable prices, using a system of multiple portfolio
SYSTEM counselors in managing mutual fund assets. Under this
system the portfolio of the fund is divided into seg-
Capital Research ments which are managed by individual counselors. Each
and Management counselor decides how his segment will be invested
Company, the (within the limits provided by the fund's objectives
fund's investment and policies and by Capital Research and Management
adviser, uses a Company's investment committee). In addition, Capital
system of multiple Research and Management Company's research profession-
portfolio als make investment decisions with respect to a portion
counselors to of the fund's portfolio. The primary individual portfo-
manage fund lio counselors for the fund are listed below.
assets.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
YEARS OF EXPERIENCE
AS INVESTMENT PROFESSIONAL
YEARS OF EXPERIENCE AS (APPROXIMATE)
PORTFOLIO COUNSELORS PORTFOLIO COUNSELOR
FOR (AND RESEARCH WITH CAPITAL
NEW PERSPECTIVE PRIMARY TITLE(S) PROFESSIONAL, IF RESEARCH AND
FUND, INC. APPLICABLE) FOR MANAGEMENT
NEW PERSPECTIVE COMPANY OR TOTAL
FUND, INC. ITS AFFILIATES YEARS
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mark E. Denning Senior Vice President, 3 years (in addition 13 years 13 years
Capital Research to 4 years as a
Company* research professional
prior to becoming a
portfolio counselor
for the fund)
- --------------------------------------------------------------------------------------------------------
William R. Grimsley Senior Vice President Since the fund began 26 years 33 years
of the fund. Senior operations
Vice President and
Director, Capital
Research and Management
Company
- --------------------------------------------------------------------------------------------------------
Gregg E. Ireland Vice President of the 3 years (in addition 23 years 23 years
fund. Vice President, to 7 years as a
Capital Research research professional
and Management Company prior to becoming a
portfolio counselor
for the fund)
- --------------------------------------------------------------------------------------------------------
William C. Newton Senior Partner, The Since the fund began 36 years 43 years
Capital Group Partners operations
L.P.*
- --------------------------------------------------------------------------------------------------------
Thierry Vandeventer Senior Vice President 17 years (in addition 32 years 32 years
of the fund. to 5 years as a
Chairman of the Board research professional
and Chief Executive prior to becoming a
Officer, Capital portfolio counselor
Research Company* for the fund)
- --------------------------------------------------------------------------------------------------------
The fund began operations on March 13, 1973.
* Company affiliated with Capital Research and Management Company.
- --------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
- -------------------------------------------------------------------------------
INVESTMENT The fund may from time to time compare its investment
RESULTS results to various unmanaged indices or other mutual
funds in reports to shareholders, sales literature and
The fund has advertisements. The results may be calculated on a to-
averaged a total tal return, yield and/or distribution rate basis for
return (at no various periods, with or without sales charges. Results
sales charge) of calculated without a sales charge will be higher. Total
14.74% a year over returns assume the reinvestment of all dividends and
its lifetime capital gain distributions. The fund's distribution
rate is calculated by dividing the dividends paid by
(March 13, 1973 the fund over the last 12 months by the sum of the
through month-end price and the capital gains paid over the
September 30, last 12 months. The SEC yield reflects income earned by
1995). the fund, while the distribution rate reflects divi-
dends paid by the fund. Among the elements used to cal-
culate the SEC yield are the dividend and interest in-
come earned and expenses paid by the fund, whereas the
income paid to shareholders is used to calculate the
distribution rate.
The fund's total return over the past 12 months and av-
erage annual total returns over the past five-year and
ten-year periods, as of September 30, 1995, were
18.63%, 16.17% and 16.46%, respectively. These results
were calculated with no sales charge in accordance with
Securities and Exchange Commission requirements. Of
course, past results are not an indication of future
results. Further information regarding the fund's in-
vestment results is contained in the fund's annual re-
port 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 AND DISTRIBUTIONS Dividends are usually paid
DIVIDENDS, in June and December. Capital gains, if any, are
DISTRIBUTIONS usually distributed in December. When a dividend or
AND TAXES capital gain is distributed, the net asset value per
share is reduced by the amount of the payment.
Income
distributions are The terms of your plan will govern how your plan may
usually made in receive distributions from the fund. Generally, peri-
June and 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 gain distributions in additional shares or may
permit all fund distributions to be received in cash.
Unless you select another option, all distributions
will be reinvested in additional fund shares.
FEDERAL TAXES The fund intends to operate as a
"regulated investment company" under the Internal
Revenue Code. In any fiscal year in which the fund so
qualifies and distributes to shareholders all of its
net investment income and net capital gains, the fund
itself is relieved of federal income tax. The tax
treatment of redemptions from a retirement plan may
differ from redemptions from an ordinary shareholder
account.
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 invest-
ment income.
6
<PAGE>
- -------------------------------------------------------------------------------
PLEASE SEE THE STATEMENT OF ADDITIONAL INFORMATION AND
YOUR TAX ADVISER FOR FURTHER INFORMATION.
FUND FUND ORGANIZATION AND VOTING RIGHTS The fund, an open-
ORGANIZATION end, diversified management investment company, was
AND organized as a Maryland corporation in 1972. 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
American Funds certain fees for services rendered to the fund as
Group, which is described 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. Shareholders have one vote per share owned and,
investment at the request of the holders of at least 10% of the
advisers. shares, the fund will hold a meeting at which any
member of the board could be removed by a majority
vote. There will not usually be a shareholder meeting
in any year except, for example, when the election of
the board is required to be acted upon by shareholders
under the Investment Company Act of 1940.
THE INVESTMENT ADVISER Capital Research and Management
Company, a large and experienced investment management
organization founded in 1931, is the investment adviser
to the fund and other funds, including those in The
American Funds Group. Capital Research and Management
Company is located at 333 South Hope Street, Los
Angeles, CA 90071 and at 135 South State College
Boulevard, Brea, CA 92621. Capital Research and
Management Company manages the investment portfolio and
business affairs of the fund and receives a fee at the
annual rates of 0.60% on the first $500 million of the
fund's net assets, 0.50% on net assets in excess of
$500 million but not exceeding $1 billion, 0.46% on net
assets in excess of $1 billion but not exceeding $1.5
billion, 0.43% on net assets in excess of $1.5 billion
but not exceeding $2.5 billion, 0.41% on net assets in
excess of $2.5 billion but not exceeding $4 billion,
0.40% on net assets in excess of $4 billion but not
exceeding $6.5 billion, and 0.395% on net assets in
excess of $6.5 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.)
7
<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 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 is located
at 333 South Hope Street, Los Angeles, CA 90071, 135
South State College Boulevard, Brea, CA 92621, 8000 IH-
10 West, San Antonio, TX 78230, 8332 Woodfield Crossing
Boulevard, Indianapolis, IN 46240, and 5300 Robin Hood
Road, Norfolk, VA 23513. Telephone conversations with
American Funds Distributors may be recorded or
monitored for verification, recordkeeping and quality
assurance purposes.
PLAN OF DISTRIBUTION The fund has a plan of
distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided
the categories of expenses are approved in advance by
the board and the expenses paid under the plan were
incurred within the last 12 months and accrued while
the plan 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 1H-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 $7,497,000 for the fiscal year ended
September 30, 1995. Telephone conversations with
American Funds Service Company may be recorded or
monitored for verification, recordkeeping and quality
assurance purposes.
8
<PAGE>
- -------------------------------------------------------------------------------
PURCHASING SHARES ALL ORDERS TO PURCHASE SHARES MUST BE MADE THROUGH YOUR
RETIREMENT PLAN. FOR MORE INFORMATION ABOUT HOW TO
PURCHASE SHARES OF THE FUND THROUGH YOUR PLAN OR
LIMITATIONS ON THE AMOUNT THAT MAY BE PURCHASED, PLEASE
CONSULT WITH YOUR EMPLOYER. Shares are sold to eligible
retirement plans at the net asset value per share next
determined after receipt of an order by the fund or
American Funds Service Company. Orders must be received
before the close of regular trading on the New York
Stock Exchange in order to receive that day's net asset
value.
Plans of organizations with collective retirement plan
assets of $100 million or more may purchase shares at
net asset value. In addition, any employer-sponsored
403(b) plan or defined contribution plan qualified un-
der Section 401(a) of the Internal Revenue Code includ-
ing 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% is imposed on certain redemptions made within one
year of such purchase. (See "Redeeming Shares--Contin-
gent 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 commission over a maximum of 13
consecutive months. Certain redemptions of such shares
may also be subject to a contingent deferred sales
charge as described above. (See the statement of addi-
tional information.)
The minimum initial investment is $250, except that the
money market funds have a minimum of $1,000 for
individual retirement accounts (IRAs). Minimums are
reduced to $50 for purchases through "Automatic
Investment Plans" (except for the money market funds)
or to $25 for purchases by retirement plans through
payroll deductions and may be reduced or waived for
shareholders of other funds in The American Funds
Group.
American Funds Distributors, at its expense (from a
designated percentage of its income), will, during the
1996 calendar year, provide additional promotional
incentives to dealers. Currently these incentives are
limited 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 promotional
incentives.
Qualified dealers currently are paid a continuing
service fee not to exceed 0.25% of average net assets
(0.15% in the case of the money market funds) annually
in order to promote selling efforts and to compensate
them for providing certain services. (See "Fund
Organization and Management--Plan of Distribution.")
These services include processing purchase and
redemption transactions, establishing shareholder
accounts and providing certain information and
assistance with respect to the fund.
9
<PAGE>
- --------------------------------------------------------------------------------
Shares of the fund are offered to other shareholders
pursuant to another prospectus at public offering prices
that may include an initial sales charge.
SHARE PRICE Shares are offered to eligible retirement
plans at the net asset value 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
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
an investment an investment dealer; however, you
dealer or your plan may be charged for this
service. SHARES HELD FOR YOU IN AN
INVESTMENT DEALER'S STREET NAME MUST
BE REDEEMED THROUGH THE DEALER.
10
<PAGE>
- -------------------------------------------------------------------------------
THE PRICE YOU RECEIVE FOR THE SHARES YOU REDEEM IS THE
NET ASSET VALUE NEXT DETERMINED AFTER YOUR ORDER AND
ALL REQUIRED DOCUMENTATION ARE RECEIVED BY THE FUND OR
AMERICAN FUNDS SERVICE COMPANY. (SEE "PURCHASING
SHARES--SHARE PRICE.")
CONTINGENT DEFERRED SALES CHARGE A contingent deferred
sales charge of 1% applies to certain redemptions
within the first year on investments of $1 million or
more and, on any investment made with no initial sales
charge by any employer-sponsored 403(b) plan or defined
contribution plan qualified under Section 401(a) of the
Internal Revenue Code including a "401(k)" plan with
200 or more eligible employees. The charge is 1% of the
lesser of the value of the shares redeemed (exclusive
of reinvested dividends and capital gain distributions)
or the total cost of such shares. Shares held for the
longest period are assumed to be redeemed first for
purposes of calculating this charge. The charge is
waived for exchanges (except if shares acquired by
exchange were then redeemed within 12 months of the
initial purchase); for distributions from qualified
retirement plans and other employee benefit plans; for
redemptions resulting from participant-directed
switches among investment options within a participant-
directed employer-sponsored retirement plan; and for
redemptions in connection with loans made by qualified
retirement plans.
OTHER IMPORTANT THINGS TO REMEMBER The net asset value
for redemptions is determined as indicated under
"Purchasing Shares--Share Price." Because the fund's
net asset value fluctuates, reflecting the market value
of the portfolio, the amount you receive for shares
redeemed may be more or less than the amount paid for
them.
Redemption proceeds will not be mailed until sufficient
time has passed to provide reasonable assurance that
checks or drafts (including certified or cashier's
checks) for shares purchased have cleared (which may
take up to 15 calendar days from the purchase date).
Except for delays relating to clearance of checks for
share purchases or in extraordinary circumstances (and
as permissible under the Investment Company Act of
1940), redemption proceeds will be paid on or before
the seventh day following receipt of a proper
redemption request.
[RECYCLE LOGO] This prospectus has been printed on
recycled paper that meets the
guidelines of the United States
Environmental Protection Agency
11
<PAGE>
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.
New
Perspective
Fund(R)
December 1, 1995
NEW PERSPECTIVE FUND(R)
Profile
333 South Hope Street December 1, 1995
Los Angeles, CA 90071
1. Goal
The fund primarily seeks to make your money grow over time through investments
in stock of companies around the world. Future income is a secondary
objective.
2. Investment Strategies
The fund's assets are normally invested primarily in common stocks on a global
basis to take advantage of investment opportunities generated by changes in
international trade patterns and economic and political relationships. The
fund may also hold other types of securities, such as bonds, when appropriate.
3. Risks
Stock prices rise and fall. Investing outside the U.S. involves special risks,
such as currency fluctuations.
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 capital growth through global
diversification, 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 0.44%
12b-1 expenses 0.21%
Other expenses 0.18%
Total fund operating expenses 0.83%
</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 $ 65
Three years 82
Five years 101
Ten years 154
</TABLE>
6. Past Results
Here are the fund's annual total returns for each of the 10 calendar years:
[CHART]
<TABLE>
<CAPTION>
<S> <C>
1985 26.59%
1986 19.48%
1987 6.97%
1988 4.07%
1989 18.64%
1990 -7.70%
1991 15.64%
1992 -2.03%
1993 19.68%
1994 -2.98%
</TABLE>
[END CHART]
Sales charges have not been deducted from results shown above.
The fund's average annual total return* is +14.44% over its lifetime (March 13,
1973 through September 30, 1995). PAST RESULTS ARE NOT A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
<S> <C>
Average Annual
Total Returns*
One year + 11.81%
Five years + 14.80%
Ten years + 15.77%
</TABLE>
* These results were calculated for periods ended September 30, 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 - 07 - 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 June 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.
<PAGE>
New
Perspective
Fund(R)
December 1, 1995
NEW PERSPECTIVE FUND(R)
Profile for Eligible Retirement Plans
333 South Hope StreetDecember 1, 1995
Los Angeles, CA 90071
1. Goal
The fund primarily seeks to make your money grow over time through investments
in stock of companies around the world. Future income is a secondary
objective.
2. Investment Strategies
The fund's assets are normally invested primarily in common stocks on a global
basis to take advantage of investment opportunities generated by changes in
international trade patterns and economic and political relationships. The
fund may also hold other types of securities, such as bonds, when appropriate.
3. Risks
Stock prices rise and fall. Investing outside the U.S. involves special risks,
such as currency fluctuations.
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 capital growth through global
diversification, this fund may not be appropriate for you. For more
information, consult your investment dealer or employer.
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
Shares of the fund are sold to eligible retirement plans of companies with
collective retirement plan assets of $100 million or more or plans purchasing
$1 million or more or having 200 or more eligible employees with no sales
charge. However, a 1% contingent deferred sales charge is imposed on certain
redemptions within one year of the purchase from eligible plans other than
those with collective assets of $100 million or more. The fund has no sales
charge on reinvested dividends and no deferred sales charge for redemptions or
exchanges.
Annual Fund Operating Expenses
(as a percentage of average net assets)
<TABLE>
<CAPTION>
<S> <C>
Management fees 0.44%
12b-1 expenses 0.21%
Other expenses 0.18%
Total fund operating expenses 0.83%
</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 $ 8
Three years 26
Five years 46
Ten years 103
</TABLE>
6. Past Results
Here are the fund's annual total returns for each of the 10 calendar years:
[CHART]
<TABLE>
<CAPTION>
<S> <C>
1985 34.29%
1986 26.83%
1987 13.50%
1988 10.39%
1989 25.91%
1990 -2.08%
1991 22.64%
1992 3.98%
1993 26.98%
1994 2.97%
</TABLE>
[END CHART]
The fund's average annual total return* is +14.74% over its lifetime (March 13,
1973 through September 30, 1995). PAST RESULTS ARE NOT A GUARANTEE OF FUTURE
RESULTS.
<TABLE>
<CAPTION>
<S> <C>
Average Annual
Total Returns*
One year + 18.63%
Five years + 16.17%
Ten years + 16.46%
</TABLE>
* These results were calculated for periods ended September 30, 1995 in
accordance with Securities and Exchange Commission rules.
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
All orders to purchase shares must be made through your retirement plan. For
more information about how to purchase shares of the fund through your plan or
limitations on the amount that may be purchased, please consult with your
employer.
9. Redemptions
Subject to any restrictions imposed by your plan, you may 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.
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 June 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 RELATES ONLY TO SHARES OF THE FUND OFFERED WITHOUT SALES CHARGE TO
ELIGIBLE RETIREMENT PLANS. TO RECEIVE A FULL PROSPECTUS, CONTACT YOUR EMPLOYER
OR THE SECRETARY OF THE FUND AT THE ABOVE ADDRESS.
This profile has been printed on recycled
paper that meets the guidelines of the United
States Environmental Protection Agency.
<PAGE>
NEW PERSPECTIVE FUND, INC.
PART B
STATEMENT OF ADDITIONAL INFORMATION
DECEMBER 1, 1995
This document is not a prospectus but should be read in conjunction
with the current Prospectus of New Perspective Fund, Inc. (the fund or NPF)
dated December 1, 1995. The Prospectus may be obtained from your investment
dealer or financial planner or by writing to the fund at the following
address:
NEW PERSPECTIVE FUND, INC.
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 OF CONTENTS
<TABLE>
<CAPTION>
Item Page No.
<S> <C>
Investment Policies 1
Description of Certain Securities and Investment Techniques 2
Investment Restrictions 3
Fund Directors and Officers 6
Advisory Board 11
Management 12
Dividends, Distributions and Federal Taxes 14
Purchase of Shares 17
Shareholder Account Services and Privileges 19
Redemption of Shares 20
Execution of Portfolio Transactions 20
General Information 20
Investment Results 21
Appendix - Description of Bond Ratings 26
Financial Statements Attached
</TABLE>
INVESTMENT POLICIES
The fund's investment policies are intended to provide the flexibility to
take advantage of opportunities while accepting what seems to be a reasonable
risk. The fund is not intended to constitute a balanced investment program and
is not designed for investors who primarily seek income.
DESCRIPTION OF CERTAIN SECURITIES AND INVESTMENT TECHNIQUES
Cash Equivalents - These securities include (1) commercial paper (short-term
notes up to 9 months in maturity issued by corporations or governmental
bodies), (2) commercial bank obligations (E.G., certificates of deposit,
bankers' acceptances (time drafts on a commercial bank where the bank accepts
an irrevocable obligation to pay at maturity) and documented discount notes
(corporate promissory discount notes accompanied by a commercial bank guarantee
to pay at maturity)), (3) savings association and saving bank obligations
(E.G., certificates of deposit issued by savings banks or savings
associations), (4) securities of the U.S. Government, its agencies or
instrumentalities that mature, or may be redeemed, in one year or less, and (5)
corporate bonds and notes that mature, or that may be redeemed, in one year or
less.
CURRENCY TRANSACTIONS - The fund has the ability to hold a portion of its
assets in U.S. dollars and other currencies and to enter into certain currency
contracts (on either a spot or forward basis) in connection with investing in
non-U.S. dollar denominated securities including foreign currency exchange and
forward currency contracts. A foreign exchange contract is used to facilitate
settlement of trades. For example, the fund might purchase a currency or enter
into a foreign exchange contract to preserve the U.S. dollar price of
securities it has contracted to purchase. A forward currency contract is an
obligation to purchase or sell a specific currency at a future date, which may
be any fixed number of days from the date of the contract agreed upon by the
parties, at a price set at the time of the contract. For example, the fund
might enter into a forward currency contract to protect against an anticipated
decline in value of a foreign currency against the U.S. dollar when it holds
securities denominated in that foreign currency. To avoid having an amount
greater than its net assets subject to market risk in connection with currency
contract transactions, the fund will segregate cash, cash equivalents, or high
quality debt instruments to the extent required by the Securities and Exchange
Commission.
At the maturity of a forward contract, the fund may either accept or
make delivery of the currency specified in the contract or, prior to maturity,
enter into a closing transaction involving the purchase or sale of an
offsetting contract. Closing transactions with respect to forward contracts
are usually effected with the currency trader who is a party to the original
contract. The fund will only enter into such a forward contract if it is
expected that the fund will be able readily to close out such contract. There
can, however, be no assurance that it will be able in any particular case to do
so, in which case the fund may suffer a loss.
Certain provisions of the Internal Revenue Code may limit the extent
to which the fund may enter into forward contracts. Such transactions may also
affect, for U.S. federal income tax purposes, the character and timing of
income, gain or loss recognized by the fund.
INVESTMENTS IN LOWER RATED BONDS - Although the fund has no current
intention of doing so (at least for the next 12 months), up to 5% of the fund's
assets may be invested in lower rated straight debt securities (securities
rated Baa or below by Moody's Investors Service, Inc. or BBB or below by
Standard & Poor's Corporation), including securities rated Ba and BB or below
(commonly referred to as "junk bonds" or "high-yield, high-risk bonds") or in
unrated securities that are determined to be of equivalent quality. High-yield,
high-risk bonds carry a higher degree of investment risk and are considered
speculative. This quality restriction does not apply to securities convertible
into common stocks.
High-yield, high-risk bonds are very sensitive to adverse economic changes
and corporate developments. During an economic downturn or substantial period
of rising interest rates, highly leveraged issuers may experience financial
stress that would adversely affect their ability to service their principal and
interest payment obligations, to meet projected business goals, and to obtain
additional financing. If the issuer of a bond defaulted on its obligations to
pay interest or principal or entered into bankruptcy proceedings, the fund may
incur losses or expenses in seeking recovery of amounts owed to it. In
addition, periods of economic uncertainty and changes can be expected to result
in increased volatility of market prices of high-yield, high-risk bonds.
High-yield, high-risk bonds, like other bonds, may contain redemption or
call provisions. If an issuer exercised these provisions in a declining
interest rate market, the fund would have to replace the security with a lower
yielding security, resulting in a decreased return for investors. Conversely,
a high-yield, high-risk bond's value is likely to decrease in a rising interest
rate market, as is generally true with all bonds.
There may be little trading in the secondary market for particular bonds,
which may affect adversely the fund's ability to value accurately or dispose of
such bonds. Adverse publicity and investor perceptions, whether or not based
on fundamental analysis, may decrease the values and liquidity of high-yield,
high-risk bonds, especially in a thin market.
INVESTMENT RESTRICTIONS
The fund has adopted the following fundamental policies and investment
restrictions which may not be changed without a majority vote of its
outstanding shares. Such majority is defined by 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. All percentage
limitations expressed in the following investment restrictions are measured
immediately after and giving effect to the relevant transactions. These
restrictions provide that the fund may not:
1. Invest in securities of another issuer (other than the U.S. or its agencies
or instrumentalities), if immediately after and as a result of such investment
more than 5% of the value of the total assets of the fund would be invested in
the securities of such other issuer, or more than 10% of the outstanding voting
securities of such issuer would be owned by the fund;
2. Invest in companies for the purpose of exercising control or management;
3. Invest more than 25% of the value of its total assets in the securities of
companies primarily engaged in any one industry;
4. Purchase securities of other investment companies, except in connection with
a merger, consolidation, acquisition or reorganization, or by purchase in the
open market of securities of closed-end investment companies where no
underwriter or dealer's commission or profit, other than customary broker's
commissions, is involved, and only if immediately thereafter no more than 10%
of the value of the fund's total assets would be invested in such securities;
5. Buy or sell real estate in the ordinary course of its business; however, the
fund may invest in securities secured by real estate or interests therein or
issued by companies, including real estate investment trusts, which invest in
real estate or interests therein;
6. Buy or sell commodities or commodity contracts in the ordinary course of its
business provided, however, that this restriction shall not prohibit the fund
from purchasing, selling or holding foreign currencies or entering into forward
foreign currency contracts;
7. Make any investment under circumstances requiring direct payment by the fund
of the Federal Interest Equalization Tax if, immediately thereafter and as a
result of such investment, the total of the Federal Interest Equalization Tax
directly paid or owing by the fund during the fiscal year in which such
investment is made would amount to more than 1-1/2% of the fund's average
month-end net assets during such fiscal year to the date of such investment;
8. Acquire securities subject to restrictions on disposition imposed by the
Securities Act of 1933, if, immediately after and as a result of such
acquisition, the value of all such restricted securities held by the fund would
exceed 2% of the value of its total assets; in any event, the fund will not
invest more than 5% of the value of its total assets in securities which are
not readily marketable;
9. Engage in the business of underwriting of securities of other issuers,
except to the extent that the disposal of an investment position may
technically constitute the fund an underwriter as that term is defined under
the Securities Act of 1933;
10. Lend any of its assets; provided, however, that investment in government
obligations, short-term commercial paper, certificates of deposit and banker's
acceptances and publicly traded bonds, debentures, or other debt securities
shall not be deemed to be the making of a loan;
11. Sell securities short, except to the extent that the fund contemporaneously
owns or has the right to acquire at no additional cost securities identical to
those sold short;
12. Purchase securities on margin;
13. Borrow amounts in excess of 5% of the value of its total assets; in any
event, the fund may borrow only as a temporary measure for extraordinary or
emergency purposes and not for investment in securities; nor
14. Mortgage, pledge or hypothecate its assets to any extent.
For purposes of Investment Restriction #3, the fund will not invest 25% or
more of the value of its total assets in the securities of companies primarily
engaged in any one industry. Although the fund may sell securities short, to
the extent that the fund contemporaneously owns or has the right to acquire at
no additional cost securities identical to those sold short, the fund does not
anticipate doing so during the next twelve months.
Notwithstanding Investment Restriction #4, 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, provide that the fund may not;
1. Purchase or retain the securities of any issuer, if those individual
officers and directors of the fund, its investment adviser or principal
underwriter, each owning beneficially more than 1/2 of 1% of the securities of
such issuer, together own more than 5% of the securities of such issuer;
2. Invest more than 5% of the value of its total assets in securities of
companies having, together with their predecessors, a record of less than three
years of continuous operation;
3. Invest in puts, calls, straddles or spreads, or combinations thereof; or
4. Purchase partnership interests in oil, gas, or mineral exploration, drilling
or mining ventures.
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 PAST AGGREGATE TOTAL COMPENSATION TOTAL NUMBER
REGISTRANT 5 YEARS (POSITIONS WITHIN THE COMPENSATION FROM ALL FUNDS OF FUND BOARDS
ORGANIZATIONS LISTED MAY HAVE (INCLUDING MANAGED BY ON WHICH
CHANGED DURING THIS PERIOD) VOLUNTARILY CAPITAL RESEARCH DIRECTOR SERVES
DEFERRED AND MANAGEMENT
COMPENSATION/1/) COMPANY/2/
FROM THE FUND
DURING FISCAL YEAR
ENDED
9/30/95
<S> <C> <C> <C> <C> <C>
Elisabeth Allison Director Administrative Director, ANZI, Ltd. $ 21,900 $ 42,900 2
62 West 62nd Street (financial publishing and consulting)
New York, NY 10023 Former Senior Vice President,
Age: 49 Planning and Development,
McGraw Hill, Inc.
+ David I. Fisher Director Chairman of the Board, None None 2
333 South Hope Street The Capital Group Companies, Inc.
Los Angeles, CA 90072
Age: 56
Robert A. Fox Director President and Chief Executive Officer, $ 20,800 $ 80,400 5
P.O Box 457 Foster Farms, Inc.; Former President,
Livingston, CA 95334 Revlon International; former
Age: 58 Chairman and Chief Executive
Officer, Clarke Hooper America
(advertising)
Alan Greenway Director President, Greenway Associates, Inc. $ 21,650 $ 68,500 4
7413 Fairway Road (management consulting services)
La Jolla, CA 92037
Age: 68
Koichi Itoh Director Managing Partner, $ 22,300 $ 42,500 2
7-14-11-104 Minami Aoyama VENCA Management
Minato-ku, Tokyo, Japan (venture capital)
Age: 54
William H. Kling Director President, Minnesota Public Radio; $ 20,850 $ 73,200 4
45 East Seventh Street President, Greenspring Co.; former
St. Paul, MN 55101 President, American Public Radio
Age: 53 (now Public Radio International)
+ Jon B. Lovelace Vice Chairman of Vice Chairman of the Board and None None 4
333 South Hope Street the Board Chairman of the Executive Committee,
Los Angeles, CA 90071 Capital Research and Management
Age: 68 Company
John G. McDonald Director The IBJ Professor of Finance, $ 21,167 $ 132,900 7
Graduate School of Business Graduate School of Business,
Stanford University Stanford University
Stanford, CA 94305
Age: 58
William I. Miller Director Chairman of the Board, $ 21,800 $ 41,500 2
500 Washington Street Irwin Financial Corporation
Box 929
Columbus, IN 47202
Age: 39
Donald E. Petersen Director Former Chairman of the Board and $ 10,000 $ 47,250 4
255 East Brown, Suite 460 Chief Executive Officer, Ford Motor
Birmingham, MI 48009 Company
Age: 69
+ James W. Ratzlaff Director Vice Chairman of the Board, Capital None None 6
P.O. Box 7650 Research and Management Company;
San Francisco, CA 94120 Senior Partner, The Capital Group
Age: 59 Partners, L.P.
+ Walter P. Stern Chairman of Chairman, Capital Group International, None None 7
630 Fifth Avenue the Board Inc.; Vice Chairman, Capital Research
New York, NY 10111 International; Director, The Capital
Age: 67 Group Companies, Inc.; Chairman,
Capital International, Inc.; Director,
Temple-Inland Inc. (forest products)
</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.
/1/ Amounts may be deferred by eligible directors under a non-qualified
deferred compensation plan adopted by the fund in 1993. Deferred amounts
accumulate at an earnings rate determined by the total return of one or more of
the funds in The American Funds Group as designated by the director.
/2/ Capital Research and Management Company manages The American Funds
Group consisting of 28 funds: AMCAP Fund, American Balanced Fund, Inc.,
American High-Income Municipal Bond Fund, Inc., American High-Income Trust,
American Mutual Fund, Inc., The Bond Fund of America, Inc., The Cash Management
Trust of America, Capital Income Builder, Inc., Capital World Growth and Income
Fund, Inc., Capital World Bond Fund, Inc., EuroPacific Growth Fund, Fundamental
Investors, Inc., The Growth Fund of America, Inc., The Income Fund of America.
Inc., Intermediate Bond Fund of America, The Investment Company of America,
Limited Term Tax-Exempt Bond Fund of America, The New Economy Fund, New
Perspective Fund, Inc., SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of
America, Inc., The Tax-Exempt Fund of California, The Tax-Exempt Fund of
Maryland, The Tax-Exempt Fund of Virginia, The Tax-Exempt Money Fund of
America, The U.S. Treasury Money Fund of America, U.S. Government Securities
Fund and Washington Mutual Investors Fund, Inc. Capital Research and
Management Company also manages American Variable Insurance Series and Anchor
Pathway Fund which serve as the underlying investment vehicles for certain
variable insurance contracts, and Endowments, Inc. and Bond Portfolio for
Endowments, Inc.
OFFICERS
WALTER P. STERN, Chairman of the Board (see above).
JON B. LOVELACE, Vice Chairman of the Board (see above).
GINA H. DESPRES, President and Principal Executive Officer. 1230 31st
Street, N.W., Washington, DC 20007. Vice President, Capital Research and
Management Company; formerly counsel to U.S. Senator Bill Bradley (NJ).
WILLIAM R. GRIMSLEY, Senior Vice President. P.O. Box 7650, San Francisco, CA
94120. Senior Vice President and Director, Capital Research and
Management Company.
THIERRY VANDEVENTER, Senior Vice President. 3 Place des Bergues, 1201 Geneva,
Switzerland. Chairman of the Board and Chief Executive Officer,
Capital Research Company.
GREGG E. IRELAND, Vice President. 1230 31st Street, N.W., Washington, DC
20007. Vice President, Capital Research and Management Company.
* CATHERINE M. WARD, Vice President. Vice President and Director, Capital
Research and Management Company.
** STEVEN N. KEARSLEY, Treasurer. Vice President and Treasurer, Capital
Research and Management Company.
* VINCENT P. CORTI, Secretary. Vice President - Fund Business Management
Group, Capital Research and Management Company.
** MARY C. CREMIN, Assistant Treasurer. Senior Vice President - Fund Business
Management Group, Capital Research and Management Company.
** R. MARCIA GOULD, Assistant Treasurer. Vice President - Fund Business
Management Group, Capital Research and Management Company.
_________________________
# Positions within the organizations listed may have changed during this
period.
* Address is 333 South Hope Street, Los Angeles, CA 90071.
** Address is 135 South State College Boulevard, Brea, CA 92621.
ADVISORY BOARD
The Board of Directors has established an Advisory Board whose members
are, in the judgment of the Directors, highly knowledgeable about world
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, will consult from time to time with the
Investment Adviser, primarily with respect to world trade and business
conditions abroad. The members of the Advisory Board and their principal
occupations during the past five years are:
YOICHI FUNABASHI, PH.D., Washington, D.C. Washington, D.C. Bureau Chief and
Dipolmatic Correspondent of the ASAHI SHIMBUN
JEAN GANDOIS, Paris, France. Chairman of the Board, Cockerill-Sambre; former
Chairman and Chief Executive Officer, Pechiney; former Chairman,
Pechiney International.
CLAUDIO X. GONZALEZ LAPORTE, Mexico DF, Mexico. Chairman of the Board and
Managing Director, Kimberly Clark de Mexico.
JUNICHI HATTORI, Tokyo, Japan. Senior Managing Director - Information Devices
and Systems Division, Seiko Instruments, Inc.
PETER C. HOBBINS, Zug, Switzerland. Counsellor and former Member Executive
Group, Corange Ltd.
SIR PETER F. HOLMES, London, England. Director and former Chairman of the
Board and Managing Director, The Royal Dutch/Shell Group of Companies.
BARON GUALTHERUS KRAIJENHOFF, Nijmegen, Netherlands. Chairman of the
Supervisory Council, AKZO N.V.
JOHN L. NICHOL, Vancouver, British Columbia. President, Springfield Investment
Company Ltd.; former President of Canada's National Liberal Party.
BRIAN NICHOLSON, London, England. Chairman of the Board, Advertising Standards
Board of Finance Ltd.; former Head of Public Affairs, Lloyd's of London;
former Executive Chairman, Marlar International Ltd.; former Joint Managing
Director, THE OBSERVER.
DONALD E. PETERSEN, Birmingham, Michigan. Retired; former Chairman of the
Board and Chief Executive Officer, Ford Motor Company.
ALLEN E. PUCKETT, Los Angeles, California. Chairman Emeritus, Hughes Aircraft
Company.
ROZANNE L. RIDGWAY, Washington, DC. President, Atlantic Council of the United
States.
HAROLD M. WILLIAMS, Los Angeles, California. President and Chief Executive
Officer, The J. Paul Getty Trust; former Chairman, U.S. Securities and
Exchange Commission.
__________________________
All of the Directors and Officers are also directors and/or trustees and/or
officers of one or more of the other funds for which Capital Research and
Management Company serves as Investment Adviser. No compensation is paid by
the fund to any Director or Officer who is a director, officer or employee of
the Investment Adviser or affiliated companies. The fund pays fees of $10,000
per annum to directors who are not affiliated with the Investment Adviser, plus
$1,000 for each Board of Directors meeting attended ($2,500 for each meeting
attended in conjunction with meetings with the Advisory Board), plus $400 for
each meeting attended as a member of a committee of the Board of Directors.
The Directors may elect, on a voluntary basis, to defer all or a portion of
these fees through a deferred compensation plan in effect for the fund. Each
Advisory Board member is paid a fee of $3,000 per annum, plus $4,000 for each
meeting attended in conjunction with meetings with the Board of Directors. As
of November 1, 1995 the officers, Directors and members of the Advisory Board
and their families, as a group, owned beneficially or of record less than 1% of
the outstanding shares of the fund.
MANAGEMENT
INVESTMENT ADVISER - The Investment Adviser, founded in 1931, maintains
research facilities in the U.S. and abroad, with a staff of professionals, many
of whom have a number of years of investment experience. The Investment
Adviser's research professionals travel several million miles a year, making
more than 5,000 research visits in more than 50 countries around the world.
The Investment Adviser believes that it is able to attract and retain quality
personnel.
An affiliate of the Investment Adviser compiles indices for major stock
markets around the world and compiles and edits the Morgan Stanley Capital
International Perspective, providing financial and market information about
more than 2,400 companies around the world.
The Investment Adviser is responsible for more than $100 billion of
stocks, bonds and money market instruments and serves over five million
investors of all types. These investors include privately owned businesses and
large corporations as well as schools, colleges, foundations and other
non-profit and tax-exempt organizations.
INVESTMENT ADVISORY AND SERVICE AGREEMENT - The Investment Advisory and
Service Agreement (the Agreement) between the fund and the Investment Adviser,
was approved by shareholders and is dated May 18, 1993. The Agreement will
continue in effect until March 31, 1996 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 of the
fund, or by the vote of a majority (as defined in the 1940 Act) of the
outstanding voting securities of the fund, and (ii) the vote of a majority of
Directors who are not parties to the Agreement or interested persons (as
defined in the 1940 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
the 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 the executive, administrative, clerical and bookkeeping
functions of the fund, provides suitable office space and utilities, necessary
office equipment and general purpose forms and supplies used at the office of
the fund, and will pay the travel expenses of Directors and members of the
Advisory Board incurred in connection with attendance at meetings of those
Boards. The fund will pay all expenses not expressly assumed by the Investment
Adviser, including, but not limited to, fees and expenses of the transfer
agent, dividend disbursing agent, legal counsel and independent public
accountants and custodian, including charges of such custodian for the
preparation and maintenance of the books of account and records of the fund,
cost of designing, printing and mailing reports, prospectuses, proxy statements
and notices to shareholders; fees and expenses of registration, qualification
and issuance of fund shares; expenses pursuant to the fund's Plan of
Distribution (described below); association dues; interest; taxes; and
compensation of Advisory Board members and of Directors who are not affiliated
persons of the Investment Adviser.
The Investment Adviser has agreed that in the event the expenses of the
fund (with the exclusion of interest, taxes, brokerage costs, distribution
expenses pursuant to a plan under Rule 12b-1 and extraordinary expenses such as
litigation and acquisitions) for any fiscal year ending on a date on which the
Agreement is in effect, exceed the expense limitations, if any, applicable to
the fund pursuant to state securities laws or any regulations thereunder, it
will reduce its fee by the extent of such excess and, if required pursuant to
any such laws or regulations, will reimburse the fund in the amount of such
excess.
As compensation for its services, the Investment Adviser receives a
monthly fee which is accrued daily, calculated at the annual rate of 0.60% on
the first $500 million of the fund's net assets, 0.50% on net assets between
$500 million and $1 billion, 0.46% on net assets between $1 billion and $1.5
billion, 0.43% on net assets between $1.5 billion and $2.5 billion, 0.41% on
net assets between $2.5 billion and $4 billion, 0.40% on net assets between $4
billion and $6.5 billion, and 0.395% on net assets in excess of $6.5 billion.
For the fiscal years ended September 30, 1995, 1994 and 1993, the Investment
Adviser received advisory fees of $32,015,000, $24,390,000 and $17,045,000,
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 "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 for the fiscal year ended
September 30, 1995 amounted to $8,330,000 after allowance of $44,248,000 to
dealers. During the fiscal years ended September 30, 1994 and 1993 the
Principal Underwriter received $6,903,000 and $4,995,000, after allowance of
$36,636,000 and $26,377,000, 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 include improved
shareholder services, savings to the fund in transfer agency costs, savings to
the fund in advisory fees and other expenses, benefits to the investment
process from growth or stability of assets and maintenance of a financially
healthy management organization. The selection and nomination of Directors who
are not interested persons of the fund are committed to the discretion of the
Directors who are not interested persons during the existence of the Plan. The
Plan is reviewed quarterly and must be renewed annually by the Board of
Directors.
Under the Plan, the fund may expend up to 0.25% of its net assets
annually to finance any activity which is primarily intended to result in the
sale of fund shares, provided the fund's Board of Directors has approved the
category of expenses for which payment is made. These include service fees for
qualified dealers and dealer commissions and wholesaler compensation on sales
of shares exceeding $1 million (including purchases by any employer-sponsored
403(b) plan or any defined contribution plan qualified under Section 401(a) of
the Internal Revenue Code including a "401(k)" plan with 200 or more eligible
employees). Only expenses incurred during the preceding 12 months and accrued
while the Plan is in effect may be paid by the fund. During the fiscal year
ended September 30, 1995, the fund paid or accrued $15,602,000 in compensation
to dealers under the Plan.
The Glass-Steagall Act and other applicable laws, among other things,
generally prohibit commercial banks from engaging in the business of
underwriting, selling or distributing securities, but permit banks to make
shares of mutual funds available to their customers and to perform
administrative and shareholder servicing functions. However, judicial or
administrative decisions or interpretations of such laws, as well as changes in
either federal or state statutes or regulations relating to the permissible
activities of banks or their subsidiaries of affiliates, could prevent a bank
from continuing to perform all or a part of its servicing activities. If a
bank were prohibited from so acting, shareholder clients of such bank would be
permitted to remain shareholders of the fund and alternate means for continuing
the servicing of such shareholders would be sought. In such event, changes in
the operation of the fund might occur and shareholders serviced by such bank
might no longer be able to avail themselves of any automatic investment or
other services then being provided by such bank. It is not expected that
shareholders would suffer adverse financial consequences as a result of any of
these occurrences.
In addition, state securities laws on this issue may differ from the
interpretations of federal law expressed herein and certain banks and financial
institutions may be required to be registered as dealers pursuant to state law.
DIVIDENDS, DISTRIBUTIONS AND FEDERAL TAXES
The fund intends to meet all the requirements, and has elected the tax
status of a "regulated investment company," under the provisions of Subchapter
M of the Internal Revenue Code of 1986 (the Code). Under Subchapter M, if the
fund distributes within specified times at least 90% of its investment company
taxable income, it will be taxed only on that portion of such investment
company taxable income that it retains.
To qualify, the fund must (a) derive at least 90% of its gross income from
dividends, interest, certain payments with respect to securities loans, and
gains from the sale or other disposition of stock, securities, currencies or
other income derived with respect to its business of investing in such stock,
securities or currencies; (b) derive less than 30% of its gross income from the
gains or sale or other disposition of stock or securities held less than three
months; and (c) diversify its holdings so that, at the end of each fiscal
quarter, (i) at least 50% of the market value of the fund's assets is
represented by cash, cash items, U.S. Government securities, securities of
other regulated investment companies, and other securities (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
capital gain net income and (ii) any amount on which the fund pays income tax
for the year. The fund intends to distribute net investment income and net
capital gains so as to minimize or avoid the excise tax liability.
The amount of any realized gain or loss on closing out a futures contract
such as a forward commitment for the purchase or sale of foreign currency will
generally result in a realized capital gain or loss for tax purposes. Futures
contracts held by the fund at the end of each fiscal year will be required to
be "marked to market" for federal income tax purposes, that is, deemed to have
been sold at market value. Sixty percent (60%) of any net gain or loss
recognized on these deemed sales and sixty percent (60%) of any net realized
gain or loss from any actual sales will be treated as long-term capital gain or
loss, and the remainder will be treated as short-term capital gain or loss.
Currency transactions that are not subject to Section 1256 of the Code may be
subject to Section 988 of the Code, in which case the 60%/40%
long-term/short-term capital gain or loss rule of Section 1256 would not apply.
Rather, each Section 988 foreign currency gain or loss would generally be
computed separately and treated as ordinary income or loss. The fund will
attempt to monitor Section 988 transactions to avoid an adverse tax impact.
The fund also intends to continue distributing to shareholders all of the
excess of net long-term capital gain over net short-term capital loss on sales
of securities. If the net asset value of shares of the fund should, by reason
of a distribution of realized capital gains, be reduced below a shareholder's
cost, such distribution would to that extent be a return of capital to that
shareholder even though taxable to the shareholder, and a sale of shares by a
shareholder at net asset value at that time would establish a capital loss for
federal tax purposes.
Dividends generally are taxable to shareholders at the time they are paid.
However, dividends declared in October, November and December and made payable
to shareholders of record in such a month are treated as paid and are thereby
taxable as of December 31, provided that the fund pays the dividend no later
than the end of January of the following year.
If a shareholder exchanges or otherwise disposes of shares of the fund
within 90 days of having acquired such shares, and if, as a result of having
acquired those shares, the shareholder subsequently pays a reduced sales charge
for shares of the fund, or of a different fund, the sales charge previously
incurred in acquiring the fund's shares shall not be taken into account (to the
extent such previous sales charges do not exceed the reduction in sales
charges) for the purpose of determining the amount of gain or loss on the
exchange, but will be treated as having been incurred in the acquisition of
such other shares. Also, any loss realized on a redemption or exchange of
shares of a fund will be disallowed to the extent substantially identical
shares are reacquired within the 61-day period beginning 30 days before and
ending 30 days after the shares are disposed of.
The fund may be required to pay withholding and other taxes imposed by
foreign countries generally at rates from 10% to 40% which would reduce the
fund's investment income. Tax conventions between certain countries and the
U.S. may reduce or eliminate such taxes. If more than 50% in value of the
fund's total assets at the close of its taxable year consists of securities of
foreign issuers, the fund will be eligible to file elections with the Internal
Revenue Service pursuant to which shareholders of the fund will be required to
include their respective pro rata portions of such withholding taxes in their
federal income tax returns as gross income, treat such amounts as foreign taxes
paid by them, and deduct such amounts in computing their taxable incomes or,
alternatively, use them as foreign tax credits against their federal income
taxes. In any year the fund makes such an election, shareholders will be
notified as to the amount of foreign withholding and other taxes paid by the
fund.
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, non-U.S. corporation, or
non-U.S. partnership (a non-U.S. 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 non-U.S. 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. However, if the distribution is effectively
connected with the conduct of the non-U.S. shareholder's trade or business
within the U.S., the distribution would be included in the net income of the
shareholder and subject to U.S. income tax at the applicable marginal rate.
Distributions of net long-term capital gains are not subject to tax
withholding, but in the case of a non-U.S. shareholder who is a nonresident
alien individual, such distributions ordinarily will be subject to U.S. income
tax at a rate of 30% if the individual is physically present in the U.S. for
more than 182 days during the taxable year.
As of the date of this statement of additional information, the
maximum federal individual stated tax rate applicable to ordinary income is
39.6% (effective tax rates may be higher for some individuals due to phase out
of exemptions and elimination of deductions); the maximum individual tax rate
applicable to net capital gains is 28%; and the maximum corporate tax
applicable to ordinary income and net capital gains is 35%. However, to
eliminate the benefit of lower marginal corporate income tax rates,
corporations which have taxable income in excess of $100,000 for a taxable
year will be required to pay an additional amount of tax liability of up to
$11,750 and corporations which have taxable income in excess of $15,000,000 for
a taxable year will be required to pay an additional amount of tax of up to
$100,000. Naturally, the amount of tax payable by a shareholder with respect
to either distributions from the fund or disposition of fund shares will be
affected by a combination of tax law rules covering, e.g., deductions, credits,
deferrals, exemptions, sources of income and other matters. Under the Code, an
individual is entitled to establish an IRA each year (prior to the tax return
filing deadline for 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 capital gain distributions may also be subject to
state or local taxes. Investors should consult their own tax advisers with
specific reference to their own tax situations.
PURCHASE OF SHARES
PRICE OF SHARES - Purchases of shares are made at the offering price next
determined after the purchase order is received by the fund or American Funds
Service Company; this offering price is effective for orders received prior to
the time of determination of the net asset value and, in the case of orders
placed with dealers, accepted by the Principal Underwriter prior to its close
of business. The dealer is responsible for promptly transmitting purchase
orders to the Principal Underwriter. Orders received by the investment dealer,
the Transfer Agent, or the fund after the time of the determination of the net
asset value will be entered at the next calculated offering price. Prices
which appear in the newspaper are not always indicative of prices at which you
will be purchasing and redeeming shares of the fund, since such prices
generally reflect the previous day's closing price whereas purchases and
redemptions are made at the next calculated price.
The price you pay for shares, the offering price, is based on the net
asset value per share which is calculated once daily at the close of trading
(currently 4:00 p.m., New York time) each day the New York Stock Exchange is
open as set forth below. The New York Stock Exchange is currently closed on
weekends and on the following holidays: New Year's Day, Presidents' Day, Good
Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas
Day. The net asset value per share is determined as follows:
1. Stocks, and convertible bonds and debentures, traded on the New York Stock
Exchange are valued at the last sale price on such exchange on the day of
valuation, or if there is no sale on the day of valuation, at the last-reported
bid price. Non-convertible bonds and debentures, and other long-term debt
securities normally are valued at prices obtained for the day of valuation from
a bond pricing service, when such prices are available; however, in
circumstances where the Investment Adviser deems it appropriate to do so, an
over-the-counter or exchange quotation may be used. Securities traded
primarily on securities exchanges outside the U.S. are valued at the last sale
price on such exchanges on the day of valuation, or if there is no sale on the
day of valuation, at the last-reported bid price. U.S. Treasury bills,
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 on the 60th day, based
on the value determined on the 61st day. Other securities are valued on the
basis of last sale or bid prices in what is, in the opinion of the Investment
Adviser, the broadest and most representative market, which may be either a
securities exchange or the over-the-counter market. Where quotations are not
readily available, securities are valued at fair value as determined in good
faith by the Board of Directors. The fair value of all other assets is added
to the value of securities to arrive at the total assets;
2. There are deducted from the total assets, thus determined, the liabilities,
including proper accruals of taxes and other expense items; and
3. The value of the net assets so obtained are then divided by the total
number of shares outstanding, and the result, rounded to the nearer cent, is
the net asset value per share.
Any purchase order may be rejected by the Principal Underwriter or the
fund. The fund will not knowingly sell shares (other than for the reinvestment
of dividends or capital gain distributions) directly or indirectly, or through
a unit investment trust to any other investment company, person or entity,
where, after the sale, such investment company, person, or entity would own
beneficially directly, indirectly, or through an investment trust 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 the Statement in order to qualify
for a reduced sales charge, shares equal to 5% of the dollar amount specified
in the Statement will be held in escrow in the shareholder's account out of the
initial purchase (or subsequent purchases, if necessary) by the Transfer Agent.
All dividends and any capital gain distributions on shares held in escrow will
be credited to the shareholder's account in shares (or paid in cash, if
requested). If the intended investment is not completed within the specified
13-month period, the purchaser will remit to the Principal Underwriter the
difference between the sales charge actually paid and the sales charge which
would have been paid if the total purchases had been made at a single time. If
the difference is not paid within 45 days after written request by the
Principal Underwriter or the investment dealer, the appropriate number of
shares 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 gain distributions,
investments in the money market funds, and investments made under a right of
reinstatement will not be credited toward satisfying the Statement.
In the case of purchase orders by the trustees of certain retirement
plans by payroll deduction, the sales charge for the investments made during
the 13-month period will be handled as follows: The regular monthly payroll
deduction investment will be multiplied by 13 and then multiplied by 1.5. The
current value of existing American Funds investments (other than money market
fund investments) and any rollovers or transfers reasonably anticipated to be
invested in non-money market American Funds during the 13-month period are
added to the figure determined above. The sum is the Statement amount and
applicable breakpoint level. On the first investment and all other investments
made pursuant to the statement of intention, a sales charge will be assessed
according to the sales charge breakpoint thus determined. There will be no
retroactive adjustments in sales charges on investments previously made during
the 13-month period.
Shareholders purchasing shares at a reduced sales charge under a
Statement indicate their acceptance of these terms with their first
purchase.
DEALER COMMISSIONS -- The following commissions will be paid to dealers who
initiate and are responsible for purchases of $1 million or more, for purchases
by any employer-sponsored 403(b) plan or purchases by any defined contribution
plan qualified under Section 401(a) of the Internal Revenue Code including a
"401(k)" plan with 200 or more eligible employees, and for purchases made at
net asset value by certain retirement plans of organizations with collective
retirement plan assets of $100 million or more: 1.00% on amounts to $2
million, 0.80% on amounts over $2 million to $3 million, 0.50% on amounts over
$3 million to $50 million, 0.25% on amounts over $50 million to $100 million,
and 0.15% on amounts over $100 million. The level of dealer commissions will
be determined based on sales made over a 12-month period commencing from the
date of the first sale at net asset value. See "The American Funds Shareholder
Guide" in the fund's prospectus for more information.
SHAREHOLDER ACCOUNT SERVICES AND PRIVILEGES
AUTOMATIC INVESTMENT PLAN - The automatic investment plan enables shareholders
to make regular monthly or quarterly investments in shares through automatic
charges to their bank accounts. With shareholder authorization and bank
approval, the Transfer Agent will automatically charge the bank account for the
amount specified ($50 minimum), which will be automatically invested in shares
at the offering price on or about the 10th day of the month (or on or about the
15th day of the month in the case of accounts for retirement plans where
Capital Guardian Trust Company serves as custodian or trustee). Bank accounts
will be charged on the day or a few days before investments are credited,
depending on the bank's capabilities, and shareholders will receive a
confirmation statement 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 the closing of the account, the plan may be terminated
and the related investment reversed. The shareholder may change the amount of
the investment or discontinue the plan at any time by writing to the Transfer
Agent.
AUTOMATIC WITHDRAWALS - Withdrawal payments are not to be considered as
dividends, yield or income. Automatic investments may not be made into a
shareholder account from which there are automatic withdrawals. Withdrawals of
amounts exceeding reinvested dividends and distributions and increases in share
value would reduce the aggregate value of the shareholder's account. The
Transfer Agent arranges for the redemption by the fund of sufficient shares,
deposited by the shareholder with the Transfer Agent, to provide the withdrawal
payment specified.
CROSS-REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS - A shareholder in one fund
may elect to cross-reinvest dividends or dividends and capital gain
distributions paid by that fund (the paying fund) into any other fund in The
American Funds Group (the receiving fund) subject to the following conditions:
(i) the aggregate value of the shareholder's account(s) in the paying fund(s)
must equal or exceed $5,000 (this condition is waived if the value of the
account in the receiving fund equals or exceeds that fund's minimum initial
investment requirement), (ii) as long as the value of the account in the
receiving fund is below that fund's minimum initial investment requirement,
dividends and capital gain distributions paid by the receiving fund must be
automatically reinvested in the receiving fund, and (iii) if this privilege is
discontinued with respect to a particular receiving fund, the value of the
account in that fund must equal or exceed the fund's minimum initial investment
requirement or the fund shall have the right, if the shareholder fails to
increase the value of the account to such minimum within 90 days after being
notified of the deficiency, automatically to redeem the account and send the
proceeds to the shareholder. These cross-reinvestments of dividends and
capital gain distributions will be at net asset value (without sales charge).
REDEMPTION OF SHARES
REDEMPTIONS - The fund's Articles of Incorporation permit the fund to direct
the Transfer Agent to redeem the shares of any shareholder if (a) the shares
owned by such shareholder have a value (determined, for the purpose of this
sentence only, as the greater of the shareholder's cost or the then net asset
value of the shares, including the reinvestment of income dividends and capital
gain distributions, if any) of less than $150, or (b) such shareholder owns
less than ten (10) shares of capital stock of the fund. 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.
Brokerage commissions paid on portfolio transactions, including dealer
concessions on underwritings, for the fiscal years ended September 30, 1995,
1994 and 1993 amounted to $7,790,000, $6,346,000, and $4,084,000,
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 subcustodial arrangements in non-U.S. banks or foreign
branches of U.S. banks.
INDEPENDENT ACCOUNTANTS - Price Waterhouse LLP, 400 South Hope Street, Los
Angeles, CA 90071, has served as the fund's independent accountants since the
fund's 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 from the Annual Report have been so included in reliance on the
report of Price Waterhouse LLP given on the authority of said firm as experts
in accounting and auditing.
REPORTS TO SHAREHOLDERS - The fund's fiscal year ends on September 30.
Shareholders are provided at least semi-annually with reports showing the
investment portfolio, financial statements and other information. The fund's
annual financial statements are audited by the fund's independent accountants,
Price Waterhouse LLP, whose selection is determined annually by the Board of
Directors.
PERSONAL INVESTING POLICY -- Capital Research and Management Company and its
affiliated companies have adopted a personal investing policy consistent with
Investment Company Institute guidelines. This policy includes: a ban on
acquisitions of securities pursuant to an initial public offering; restrictions
on acquisitions of private placement securities; pre-clearance and reporting
requirements; review of duplicate confirmation statements; annual
recertification of compliance with codes of ethics; disclosure of personal
holdings by certain investment personnel prior to recommendation for purchase
for the fund; blackout periods on personal investing for certain investment
personnel; ban on short-term trading profits for investment personnel;
limitations on service as a director of publicly traded companies; and
disclosure of personal securities transactions.
The financial statements including the investment portfolio and the report
of Independent Accountants contained in the Annual Report are included in this
Statement of Additional Information. The following information is not included
in the Annual Report:
DETERMINATION OF NET ASSET VALUE,
REDEMPTION PRICE ANDMAXIMUM OFFERING PRICE PER SHARE -- SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
Net asset value and redemption price per share
<S> <C>
(Net assets divided by shares outstanding) $16.98
Maximum offering price per share (100/94.25 of
net asset value per share, which takes into
account the fund's current maximum sales charge) $18.02
</TABLE>
REMOVAL OF DIRECTORS BY SHAREHOLDERS - At any meeting of shareholders, duly
called and at which a quorum is present, the shareholders may, by the
affirmative vote of the holders of a majority of the votes entitled to be cast
thereon, remove any director or directors from office and may elect a successor
or successors to fill any resulting vacancies for the unexpired terms of
removed directors. The fund has made an undertaking, at the request of the
staff of the Securities and Exchange Commission, to apply the provisions of
section 16(c) of the 1940 Act with respect to the removal of directors as
though the fund were a common-law trust. Accordingly, the Directors of the
fund shall promptly call a meeting of shareholders for the purpose of voting
upon the question of removal of any director when requested in writing to do so
by the record holders of not less than 10% of the outstanding shares.
INVESTMENT RESULTS
The fund's yield is 1.73% based on a 30-day (or one month) period ended
September 30, 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 one-year total return and average annual total returns for
the five- and ten-year periods ended on September 30, 1995 was 11.81%, 14.80%
and 15.77%, respectively. The average annual total return (T) is computed by
using the value at the end of the period (ERV) of a hypothetical initial
investment of $1,000 (P) over a period of years (n) according to the following
formula as required by the Securities and Exchange Commission: P(1+T)/n/ =
ERV.
To calculate total return, an initial investment is divided by the
offering price (which includes the sales charge) as of the first day of the
period in order to determine the initial number of shares purchased. Subsequent
dividends and capital gain distributions are then reinvested at net asset value
on the reinvestment date determined by the Board of Directors. The sum of the
initial shares purchased and shares acquired through reinvestment is multiplied
by the net asset value per share as of the end of the period in order to
determine ending value. The difference between the ending value and the
initial investment divided by the initial investment converted to a percentage
equals total return. The resulting percentage indicates the positive or
negative investment results that an investor would have experienced from
reinvested dividends and capital gain distributions and changes in share price
during the period. Total return may be calculated for one year, five years,
ten years and for other periods of years. The average annual total return over
periods greater than one year may also be computed by utilizing ending values
as determined above.
The following assumptions will be reflected in computations made in
accordance with the formula stated above: (1) deduction of the maximum sales
load of 5.75% from the $1,000 initial investment; (2) reinvestment of dividends
and distributions at net asset value on the reinvestment date determined by the
Board; and (3) a complete redemption at the end of any period illustrated.
The fund may also calculate a distribution rate on a taxable and tax
equivalent basis. The distribution rate is computed by dividing the dividends
paid by the fund over the last 12 months by the sum of the month-end net asset
value or maximum offering price and the capital gains paid over the last 12
months. The distribution rate may differ from the yield.
The fund may include information on its investment results and/or
comparisons of its investment results to various unmanaged indices (such as The
Dow Jones Average of 30 Industrial Stocks and The Standard and Poor's 500
Composite Stock Index) or results of other mutual funds or investment or
savings vehicles in advertisements or in reports furnished to present or
prospective shareholders.
The fund may refer to results compiled by organizations such as CDA
Investment Technologies, Ibbottson Associates, Lipper Analytical Services,
Morningstar, Inc. and Wiesenberger Investment Companies Services and by the
U.S. Department of Commerce. Additionally, the fund may, from time to time,
refer to results published in various newspapers or periodicals, including
BARRONS, FORBES, FORTUNE, INSTITUTIONAL INVESTOR, KIPLINGER'S PERSONAL FINANCE
MAGAZINE, MONEY, U.S. NEWS AND WORLD REPORT and THE WALL STREET JOURNAL.
The fund may, from time to time, illustrate the benefits of tax-deferral
by comparing taxable investments to investments made through tax-deferred
retirement plans.
The fund may from time to time compare its investment results with the
Consumer Price Index, which is a measure of the average change in prices over
time in a fixed market basket of goods and services (e.g. food, clothing,
fuels, transportation, and other goods and services that people buy for
day-to-day living).
EXPERIENCE OF THE INVESTMENT ADVISER - Capital Research and Management
Company manages nine common stock funds that are at least 10 years old. In
the rolling 10-year periods since 1964 (115 in all) those funds have had
better total returns than the Standard and Poor's 500 Composite Stock Index in
94 of the 115 periods.
Note that past results are not an indication of future investment
results and that the fund has different investment policies from other funds
managed by Capital Research and Management Company. Reference to the other
common stock funds is made 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.
NPF VS. VARIOUS UNMANAGED INDEXES
Total Return
<TABLE>
<CAPTION>
Periods MSCI Indices Capital
Appreciation
10/1 - 9/30 NPF DJIA/1/ S&P 500/2/ World/3/ U.S./4/ NPF NYSE/6/
<S> <C> <C> <C> <C> <C> <C> <C>
1973# - 1995 +1,992% +1,223% +1,165% +1,051% +1,072% +1,001% +411%
1985 - 1995 +332 +404 +341 +302 +342 +250 +198
1984 - 1994 +321 +355 +289 +338 +289 +236 +167
1983 - 1993 +278 +321 +293 +328 +291 +196 +165
1982 - 1992 +360 +443 +402 +400 +393 +244 +232
1981 - 1991 +356 +446 +397 +416 +392 +246 +218
1980 - 1990 +275 +314 +269 +285 +266 +166 +132
1979 - 1989 +387 +395 +392 +483 +372 +245 +212
1978 - 1988 +342 +302 +317 +420 +291 +214 +166
1977 - 1987 +584 +415 +432 +580 +397 +386 +241
1976 - 1986 +369 +205 +256 +389 +235 +232 +137
1975 - 1985 +299 +187 +253 +274 +233 +181 +136
1974 - 1984 +403 +241 +326 +288 +297 +248 +186
1973# - 1983 +271 +124 +149 +128 +129 +156 + 64
</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 and Poor's 500 Composite Stock 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/ The Morgan Stanley Capital International World Index is an arithmetical
average, weighted by market value, of the performance of more than 1,400
securities listed on the stock exchanges of Europe, Australia, the Far East,
Canada, New Zealand and the U.S.
/4/ The Morgan Stanley Capital International U.S. Index is an arithmetical
average, weighted by market value, of the performance of more than 300
securities listed on stock exchanges in the U.S.
/5/ The New York Stock Exchange Composite Index is a capitalization weighted
index of all common stocks listed on the exchange.
# From March 13, 1973, the date the fund commenced operations.
IF YOU ARE CONSIDERING NPF FOR RETIREMENT . . .
Here's how much you would have if you had invested $2,000 on
October 1 of each year in NPF over the past 5 and 10 years:
<TABLE>
<CAPTION>
<S> <C>
5 Years 10 Years
(10/1/90 - 9/30/95) (10/1/85 - 9/30/95)
$14,939 $42,626
</TABLE>
SEE THE DIFFERENCE TIME CAN MAKE IN AN INVESTMENT PROGRAM . . .
<TABLE>
<CAPTION>
If you had invested Periods ...and taken all
$10,000 in NPF 10/1 - 9/30 distributions in shares,
this many years ago... your investment would
Number of Years have been worth this
much at September 30, 1995
Value
<S> <C> <C>
1 1994 - 1995 $11,181
2 1993 - 1995 12,588
3 1992 - 1995 14,896
4 1991 - 1995 16,094
5 1990 - 1995 19,937
6 1989 - 1995 18,964
7 1988 - 1995 24,262
8 1987 - 1995 20,811
9 1986 - 1995 31,150
10 1985 - 1995 43,247
11 1984 - 1995 49,943
12 1983 - 1995 50,441
13 1982 - 1995 72,660
14 1981 - 1995 77,868
15 1980 - 1995 79,327
16 1979 - 1995 98,085
17 1978 - 1995 113,725
18 1977 - 1995 151,076
19 1976 - 1995 155,047
20 1975 - 1995 183,143
21 1974 - 1995 266,290
22 1973 - 1995 198,433
Lifetime 1973# - 1995 209,200
</TABLE>
APPENDIX
DESCRIPTION OF BOND RATINGS
Corporate Debt Securities
MOODY'S INVESTORS SERVICE, INC. rates the long-term debt securities issued by
various entities in categories ranging from "Aaa" to "C" according to quality.
"AAA -- Best quality. These securities carry the smallest degree of investment
risk and are generally referred to as 'gilt edge.' Interest payments are
protected by a large or by an exceptionally stable margin, and principal is
secure. While the various protective elements are likely to change, such
changes as can be visualized are most unlikely to impair the fundamentally
strong position of such issues."
"AA -- High quality by all standards. They are rated lower than the best bonds
because margins of protection may not be as large as in Aaa securities,
fluctuation of protective elements may be of greater amplitude, or there may be
other elements present which make the long-term risks appear somewhat greater."
"A -- Upper medium grade obligations. These bonds possess many favorable
investment attributes. Factors giving security to principal and interest are
considered adequate, but elements may be present which suggest a susceptibility
to impairment sometime in the future."
"BAA -- Medium grade obligations. Interest payments and principal security
appear adequate for the present but certain protective elements may be lacking
or may be characteristically unreliable over any great length of time. Such
bonds lack outstanding investment characteristics and , in fact, have
speculative characteristics as well."
"BA -- Have speculative elements; future cannot be considered as well assured.
The protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the future.
Bonds in this class are characterized by uncertainty of position."
"B -- Generally lack characteristics of the desirable investment; assurance of
interest and principal payments or of maintenance of other terms of the
contract over any long period of time may be small."
"CAA -- Of poor standing. Issues may be in default or there may be present
elements of danger with respect to principal or interest."
"CA -- Speculative in a high degree; often in default or have other marked
shortcomings."
"C -- Lowest rated class of bonds; can be regarded as having extremely poor
prospects of ever attaining any real investment standing."
STANDARD & POOR'S CORPORATION rates the long-term securities debt of various
entities in categories ranging from "AAA" to "D" according to quality.
"AAA -- Highest rating. Capacity to pay interest and repay principal is
extremely strong."
"AA -- High grade. Very strong capacity to pay interest and repay principal
and differs from the higher rated issues only in small degree."
"A - Have a strong capacity to pay interest and repay principal, although they
are somewhat more susceptible to the adverse effects of change in circumstances
and economic conditions, than debt in higher rated categories."
"BBB -- Regarded as having adequate capacity to pay interest and repay
principal. These bonds normally exhibit adequate protection parameters, but
adverse economic conditions or changing circumstances are more likely to lead
to a weakened capacity to pay interest and repay principal than for debt in
higher rated categories."
"BB, B, CCC, CC, C -- Regarded, on balance, as predominantly speculative with
respect to capacity to pay interest and repay principal in accordance with the
terms of the obligation. BB indicates the lowest degree of speculation and C
the highest degree of speculation. While such debt will likely have some
quality and protective characteristics, these are outweighed by large
uncertainties or major risk exposures to adverse conditions."
"C-1 -- Reserved for income bonds on which no interest is being paid."
"D -- In default and payment of interest and/or repayment of principal is in
arrears."
NEW PERSPECTIVE FUND
Investment Portfolio, September 30, 1995
LARGEST INDUSTRY HOLDINGS
Telecommunications 7.63%
Health & Personal Care 6.51%
Broadcasting & Publishing 6.50%
Electrical & Electronics 5.13%
Energy Sources 4.92%
Other Industries 52.61%
Bonds & Cash Equivalents 16.70%
<TABLE>
<CAPTION>
Shares or Market Percent
Principal Value of Net
Equity-Type Securities Amount (Millions) Assets
- ----------------------------------------- ---------- ---------- ------
<S> <C> <C> <C>
TELECOMMUNICATIONS-7.63%
Telecom Corp. of New Zealand Ltd.
(New Zealand) 17,400,000 $67.863 1.05%
Telecom Corp. of New Zealand Ltd. /1/ 6,220,000 24.259
AirTouch Communications (USA) /2/ 2,732,000 83.667 .95
Vodafone Group PLC (American Depositary
Receipts)(United Kingdom) 1,980,000 81.180 .92
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts) (Mexico) 2,434,530 77.296 .88
Tele Danmark AS, Class B (Denmark) 375,000 19.388
Tele Danmark AS, Class B (American .58
Depositary Receipts) 1,233,700 31.922
AT&T Corp.(USA) 735,000 48.326 .55
Cable and Wireless PLC (United Kingdom) 6,302,730 41.529
Cable and Wireless PLC (American .51
Depositary Receipts) 200,000 3.925
STET-Societa Finanziaria Telefonica p.a.,
ordinary shares (Italy) 5,890,000 17.955 .38
STET-Societa Finanziaria Telefonica p.a.,
nonconvertible savings shares 7,000,000 16.283
MCI Communications Corp. (USA) 1,225,000 31.927 .36
Telefonica de Argentina SA, Class B
(American Depositary Receipts) (Argentina) 1,332,000 31.802 .36
Koninklijke PTT Nederlanden NV
(Netherlands) 869,500 30.729 .35
Telecomunicacoes Brasileiras SA, preferred
nominative (Brazil) 556,439,000 26.540 .30
Telefonica de Espana, SA (Spain) 1,500,000 20.661
Telefonica de Espana, SA (American .27
Depositary Receipts) 76,000 3.145
Hong Kong Telecommunications Ltd. (Hong
Kong) 4,000,000 7.270
Hong Kong Telecommunications Ltd. .17
(American Depositary Receipts) 420,000 7.665
HEALTH & PERSONAL CARE- 6.51%
AB Astra, Class A (Sweden) 2,000,000 71.688
AB Astra, Class A (American Depositary
Receipts) 155,000 5.556 1.99
AB Astra, Class B 2,800,000 98.546
Teva Pharmaceutical Industries Ltd.
(American Depositary Receipts)(Israel) 1,940,000 70.083 .79
Merck & Co., Inc. (USA) 1,030,000 57.680 .65
Pfizer Inc (USA) 1,000,000 53.375 .61
Sandoz Ltd. (Switzerland) 49,515 37.742 .43
Glaxo Holdings PLC (United Kingdom) 563,264 6.892
Glaxo Holdings PLC (American Depositary .42
Receipts) 1,254,000 30.253
Johnson & Johnson (USA) 400,000 29.650 .34
AVON PRODUCTS, INC. (USA) 408,000 29.274 .33
Genentech, Inc. (USA) /2/ 600,000 29.175 .33
Abbott Laboratories (USA) 400,000 17.050 .19
Roberts Pharmaceutical Corp. (USA) /2/ 450,000 10.575 .12
Bristol-Myers Squibb Co. (USA) 140,000 10.202 .12
Bausch & Lomb Inc. (USA) 225,000 9.309 .11
BioChem Pharma Inc. (Canada) /2/ 123,000 3.905 .04
Chiron Corp. (USA) /2/ 37,049 3.353 .04
BROADCASTING & PUBLISHING- 6.50%
News Corp. Ltd. (Australia) 3,910,001 21.771
News Corp. Ltd. (American Depositary
Receipts) 3,991,600 87.815 1.81
News Corp. Ltd., preferred shares 1,963,771 9.733
News Corp. Ltd., preferred shares
(American Depositary Receipts) 1,995,800 39.666
Turner Broadcasting System, Inc., Class
B (USA) 3,512,300 96.588 1.10
Time Warner Inc. (USA) 1,772,000 70.437 .80
Viacom Inc., Class B (USA) /2/ 1,340,000 66.665 .76
Elsevier NV (Netherlands) 3,050,000 39.110 .44
Carlton Communications PLC (United
Kingdom) 1,956,000 32.045 .36
CANAL+ (France) 185,560 31.621 .36
Dow Jones & Co., Inc. (USA) 780,000 28.762 .33
Grupo Televisa, SA, Class L (American
Depositary Receipts) (Mexico) 825,000 16.500 .19
Pearson PLC (United Kingdom) 1,700,000 15.927 .18
Wolters Kluwer NV (Netherlands) 162,516 14.933 .17
ELECTRICAL & ELECTRONICS- 5.13%
ASEA AB, Class A (Sweden) 115,000 11.529
ASEA AB, Class B 760,000 75.421
ASEA AB, Class B (American Depositary
Receipts) 450,000 44.944 2.13
BBC Brown Boveri Ltd, Class A
(Switzerland) 47,957 55.621
Nokia Corp., Class A (Finland) 480,000 33.713
Nokia Corp., Class A (American Depositary
Receipts) 968,000 67.518 1.52
Nokia Corp., Class K 460,000 32.309
Telefonaktiebolaget LM Ericsson, Class B
(Sweden) 2,519,600 62.147
Telefonaktiebolaget LM Ericsson, Class B,
rights, expire 10/27/95 /2/ 2,519,600 2.944
Telefonaktiebolaget LM Ericsson, Class B 1.08
(American Depositary Receipts) 1,200,000 29.400
Telefonaktiebolaget LM Ericsson, Class B
(American Depositary Receipts), rights,
expire 10/26/95 /2/ 1,200,000 1.382
Makita Corp. (Japan) 814,000 12.870 .15
General Electric Co. (USA) 200,000 12.750 .14
Hitachi, Ltd. (Japan) 900,000 9.788 .11
ENERGY SOURCES- 4.92%
Royal Dutch Petroleum Co. (New York
Registered Shares) (Netherlands) 613,000 75.246 .85
Anadarko Petroleum Corp. (USA) 1,555,000 73.668 .84
TOTAL, Class B (France) 128,196 7.759
TOTAL, Class B (American Depositary .75
Receipts) 1,925,798 58.015
Unocal Corp. (USA) 1,550,000 44.175 .50
Repsol SA (Spain) 1,400,000 44.069 .50
Phillips Petroleum Co. (USA) 1,225,000 39.813 .45
NOVA Corp. of Alberta (Canada) 4,500,000 35.633 .40
YPF SA, Class D (American Depositary
Receipts) (Argentina) 1,200,000 21.600 .24
Broken Hill Proprietary Co. Ltd.
(Australia) 1,219,014 16.780 .19
British Petroleum Co. PLC (American
Depositary Receipts) (United Kingdom) 155,940 14.015 .16
Petrofina SA (Belgium) 12,600 3.907 .04
BEVERAGES & TOBACCO- 4.92%
Philip Morris Companies Inc. (USA) 1,835,000 153.222 1.74
Seagram Co. Ltd. (Canada) 2,500,000 89.688 1.02
Heineken NV (Netherlands) 364,257 58.784 .67
LVMH MOET HENNESSY LOUIS VUITTON (FRANCE) 220,000 41.511 .47
Guinness PLC (United Kingdom) 3,700,000 30.191 .34
PepsiCo, Inc. (USA) 500,000 25.500 .29
Lion Nathan Ltd. (New Zealand) 10,450,000 21.856 .25
American Brands, Inc. (USA) 300,000 12.675 .14
BANKING- 4.17%
Westpac Banking Corp. (Australia) 16,326,389 66.113 .75
Citicorp (USA) 850,000 60.137 .68
BankAmerica Corp. (USA) 675,000 40.416 .46
Banco de Santander, SA (Spain) 450,000 18.887
Banco de Santander, SA (American .45
Depositary Receipts) 500,000 20.812
Deutsche Bank AG (Germany) 751,410 35.785 .41
Svenska Handelsbanken Group (Sweden) 1,400,000 24.233 .27
Republic New York Corp. (USA) 370,000 21.645 .25
Sumitomo Bank, Ltd. (Japan) 895,000 17.305
Sumitomo Bank, Ltd., 3.125% convertible .24
debentures 2004 $4,700,000 3.924
ABN AMRO Holding NV (Netherlands) 418,240 17.319 .20
J.P. Morgan & Co. Inc. (USA) 142,100 10.995 .12
Istituto Mobiliare Italiano SpA
(American Depositary Receipts) (Italy) 520,000 9.490 .11
Chase Manhattan Bank, NA (USA) 150,000 9.169 .10
Asahi Bank Ltd. (Japan) 670,000 7.287 .08
Bank of Montreal (Canada) 210,000 4.617 .05
CHEMICALS- 3.55%
Praxair, Inc. (USA) 2,579,300 68.996 .78
Georgia Gulf Corp. (USA) 1,975,000 68.138 .77
Ciba-Geigy Ltd. (Switzerland) 69,000 55.344 .63
Sherwin-Williams Co. (USA) 775,000 27.125 .31
Valspar Corp. (USA) 554,100 21.194 .24
E.I. du Pont de Nemours and Co. (USA) 240,000 16.500 .19
L'Air Liquide (France) 89,489 14.250 .16
Engelhard Corp. (USA) 413,100 10.482 .12
Solvay SA (Belgium) 16,600 8.839 .10
Sumitomo Chemical Co., Ltd. (Japan) 1,730,000 7.544 .09
Bayer AG (Germany) 25,000 6.370 .07
BASF AG (Germany) 20,000 4.375 .05
Rhone-Poulenc SA (American Depositary
Receipts) (France) 153,400 3.106 .04
MACHINERY & ENGINEERING- 3.40%
Mannesmann AG (Germany) 487,375 160.013 1.81
Caterpillar Inc. (USA) 1,960,000 111.475 1.26
Deere & Co. (USA) 260,000 21.158 .24
Parker Hannifin Corp. (USA) 200,000 7.600 .09
MULTI-INDUSTRY- 3.37%
Hutchison Whampoa Ltd. (Hong Kong) 11,281,000 61.144 .69
Lend Lease Corp. Ltd. (Australia) 3,889,796 54.837 .62
LTV Corp. (USA) /2/ 3,000,000 42.000 .48
Hanson PLC (United Kingdom) 4,000,000 12.732
Hanson PLC (American Depositary .46
Receipts) 1,730,000 28.113
Groupe Bruxelles Lambert SA (Belgium) 182,000 24.188 .27
B.A.T Industries PLC (United Kingdom) 2,711,122 22.556 .26
Swire Pacific Ltd., Class A (Hong Kong) 1,930,000 15.292 .17
Incentive AB, Class A (Sweden) 80,000 3.820
Incentive AB, Class B 165,000 7.925 .13
CITIC Pacific Ltd. (Hong Kong) 3,600,000 10.874 .12
Canadian Pacific Ltd. (Canada) 625,000 10.000 .11
Pacific Dunlop Ltd. (Australia) 2,000,000 4.986 .06
ELECTRONIC COMPONENTS- 3.34%
Advanced Micro Devices, Inc. (USA) /2/ 2,325,000 67.716 .77
Micron Technology, Inc. (USA) 605,000 48.098 .55
Intel Corp. (USA) 785,000 47.198 .54
Motorola, Inc. (USA) 600,000 45.825 .52
Analog Devices, Inc. (USA) /2/ 855,000 29.604 .34
SGS-THOMSON MICROELECTRONICS NV (NEW
YORK REGISTERED SHARES) NETHERLANDS /2/ 565,000 27.473 .31
Seagate Technology (USA) /2/ 650,000 27.381 .31
AUTOMOBILES- 2.98%
Ford Motor Co., Class A (USA) 2,700,000 84.038 .95
Toyota Motor Corp. (Japan) 2,705,000 51.485 .58
Renault V.I. SA (France) 1,597,700 47.053 .53
Bayerische Motoren Werke AG (Germany) 70,909 38.867
Bayerische Motoren Werke AG, preferred .53
shares 20,318 7.865
Daimler-Benz AG (Germany) 19,800 9.758
Daimler-Benz AG (American Depositary .17
Receipts) 110,000 5.459
General Motors Corp. (USA) 230,000 10.781 .12
Suzuki Motor Corp. (Japan) 800,000 8.620 .10
RECREATION & OTHER CONSUMER PRODUCTS-
2.79%
THORN EMI PLC (United Kingdom) 3,311,553 77.140 .87
PolyGram NV (New York Registered Shares)
(Netherlands) 1,109,800 72.414 .82
Duracell International Inc. (USA) 925,000 41.509 .47
Mattel, Inc. (USA) 1,200,000 35.250 .40
Eastman Kodak Co. (USA) 175,000 10.369 .12
Hasbro, Inc. (USA) 301,800 9.394 .11
FOOD & HOUSEHOLD PRODUCTS- 2.64%
Reckitt & Colman PLC (United Kingdom) 6,975,000 72.542 .82
Nestle SA (Switzerland) 68,782 70.480 .80
GROUPE DANONE (FRANCE) 250,000 40.418 .46
Colgate-Palmolive Co. (USA) 400,000 26.650 .30
Unilever NV (Netherlands) 175,000 22.768 .26
INSURANCE- 1.74%
Internationale Nederlanden Groep NV
(Netherlands) 1,268,486 73.711 .84
American International Group, Inc. (USA) 516,562 43.908 .50
Munchener Ruckversicherungs-Gesellschaft
(Germany) 6,213 12.657
Munchener Ruckversicherungs-Gesellschaft, .20
registered shares 3,000 5.422
CKAG Colonia Konzern (Germany) 19,400 15.889
CKAG Colonia Konzern, preferred shares 1,385 .824 .19
Yasuda Fire and Marine Insurance Co.,
Ltd. (Japan) 200,000 1.289 .01
MERCHANDISING- 1.64%
Wal-Mart Stores, Inc. (USA) 2,300,000 57.212 .65
Ito-Yokado Co., Ltd. (Japan) 610,000 33.664 .38
Toys 'R' Us, Inc. (USA) /2/ 1,100,000 29.700 .34
WHSmith Group PLC, Class A (United
Kingdom) 1,827,500 10.641 .12
Coles Myer Ltd. (Australia) 3,098,250 9.948 .11
Cifra, SA de CV, Class C (Mexico) 2,854,800 3.314 .04
.
DATA PROCESSING & REPRODUCTION- 1.50%
Sybase, Inc. (USA) /2/ 1,613,800 51.843 .59
International Business Machines Corp.
(USA) 277,000 26.142 .30
Oracle Corp. (USA)/2/
(formerly Oracle Systems Corp.) 540,000 20.723 .24
Adobe Systems Inc. (USA) 175,000 9.056 .10
Apple Computer, Inc. (USA) 226,850 8.450 .10
Cisco Systems, Inc. (USA) /2/ 100,000 6.900 .08
Tandem Computers Inc. (USA) /2/ 340,000 4.165 .05
Novell, Inc. (USA) /2/ 200,000 3.650 .04
LEISURE & TOURISM- 1.41%
Carnival Cruise Lines, Inc. (USA) 2,000,000 48.000 .54
Walt Disney Co. (USA) 670,000 38.441 .44
Forte PLC (United Kingdom) 3,465,700 13.517 .15
Euro Disney SCA (France) 3,870,000 12.459
Euro Disney SCA, warrants, expire 2004 /2/ 1,028,142 0.457 .15
McDonald's Corp. (USA) 300,000 11.475 .13
INDUSTRIAL COMPONENTS- 1.33%
Compagnie Generale des Etablissements
Michelin, Class B (France) 1,100,000 48.236 .55
Goodyear Tire & Rubber Co. (USA) 1,120,000 44.100 .50
AB SKF, Class B (Sweden) 550,000 12.138 .14
Rockwell International Corp. (USA) 170,000 8.033 .09
Orbital Engine Corp. Ltd. (American
Depositary Receipts) (Australia) /2/ 466,133 4.020 .05
FOREST PRODUCTS & PAPER- 1.30%
Kymmene Corp. (Finland) 995,000 30.749 .35
LOUISIANA-PACIFIC CORP. (USA) 900,000 21.713 .25
Jefferson Smurfit Corp. (USA) /2/ 1,255,700 19.149 .22
Weyerhaeuser Co. (USA) 300,000 13.688 .16
ITT Rayonier Inc. (USA) 325,000 12.716 .14
International Paper Co. (USA) 200,000 8.400 .10
Carter Holt Harvey Ltd. (New Zealand) 3,100,000 7.218 .08
AEROSPACE & MILITARY TECHNOLOGY- 1.09%
Bombardier Inc., Class B (Canada) 5,400,000 63.385 .72
Boeing Co. (USA) 250,000 17.063 .19
United Technologies Corp. (USA) 160,000 14.140 .16
Litton Industries, Inc. (USA) /2/ 40,000 1.740 .02
METALS: NONFERROUS- 0.98%
Western Mining Corp. Holdings Ltd.
(Australia) 6,037,151 39.499 .45
Alcan Aluminium Ltd. (Canada) 700,000 22.663 .26
Alumax Inc. (USA) /2/ 426,000 14.378 .16
Teck Corp., Class B (Canada) 479,000 9.549 .11
METALS: STEEL- 0.87%
Companhia Vale do Rio Doce, ordinary
nominative (Brazil) 4,800,000 1.169
Companhia Vale do Rio Doce, preferred .24
nominative 123,780,000 20.719
Armco Inc. (USA) /2/ 3,000,000 19.500
Armco Inc., convertible preferred 20,000 1.035 .23
USINOR SACILOR (FRANCE) /2/ 1,000,000 17.782 .20
Ugine SA (France) 130,502 8.402 .10
Thyssen AG (Germany) /2/ 25,000 4.839 .05
Koninklijke Nederlandsche Hoogovens en
Staalfabrieken NV (Netherlands) 100,000 3.991 .05
ENERGY EQUIPMENT- 0.85%
Schlumberger Ltd. (Netherlands Antilles) 1,000,000 65.250 .74
Western Atlas Inc. (USA) /2/ 200,000 9.475 .11
TRANSPORTATION: SHIPPING- 0.84%
NIPPON YUSEN KK (JAPAN) 6,600,000 39.015 .44
Bergesen d.y.AS, Class A (Norway) 500,000 11.069
Bergesen d.y.AS, Class B 795,000 17.726 .33
Overseas Shipholding Group, Inc. (USA) 300,000 5.962 .07
TRANSPORTATION: AIRLINES- 0.77%
Singapore Airlines Ltd. (Singapore) 3,841,000 35.630 .40
British Airways PLC (United Kingdom) 1,545,000 11.062
British Airways PLC (American Depositary .37
Receipts) 305,500 21.805
GOLD MINES- 0.77%
Placer Dome Inc. (Canada) 1,600,000 42.000 .48
BARRICK GOLD CORP. (CANADA) 1,000,000 25.875 .29
MISCELLANEOUS MATERIALS & COMMODITIES-
0.76%
English China Clays PLC (United Kingdom) 3,200,000 18.379 .21
Compagnie de Saint-Gobain (France) 119,511 14.564 .16
Potash Corp. of Saskatchewan Inc.
(Canada) 200,000 12.450 .14
TRINOVA Corp. (USA) 250,000 8.438 .10
Cleveland-Cliffs Inc. (USA) 180,000 7.403 .08
Pilkington PLC (United Kingdom) 2,000,000 6.275 .07
BUSINESS & PUBLIC SERVICES- 0.71%
WMX Technologies, Inc. (USA) 600,000 17.100 .19
Havas SA (France) 194,048 14.519 .16
Eurotunnel SA, units, comprised of one
share of Eurotunnel SA ordinary and one
share of Eurotunnel PLC ordinary
(France) /2/ 9,222,700 13.300 .15
Reuters Holdings PLC (American Depositary
Receipts) (United Kingdom) 200,000 10.575 .12
Federal Express Corp. (USA) /2/ 100,000 8.300 .09
APPLIANCES & HOUSEHOLD DURABLES- 0.69%
Sony Corp. (Japan) 480,000 24.846 .28
AB Electrolux, Class B (Sweden) 441,600 21.116 .24
Philips Electronics NV (Netherlands) 300,000 14.637 .17
TRANSPORTATION: RAIL & ROAD-0.48%
CSX Corp. (USA) 500,000 42.062 .48
UTILITIES: ELECTRIC & GAS- 0.39%
Hongkong Electric Holdings Ltd.
(Hong Kong) 5,213,500 17.433 .20
VEBA AG (Germany) 340,450 13.516 .15
Hong Kong and China Gas Co. Ltd. (Hong
Kong) 2,401,800 3.868 .04
REAL ESTATE- 0.35%
Cheung Kong (Holdings) Ltd. (Hong Kong) 3,500,000 19.061 .22
Sun Hung Kai Properties Ltd. (Hong Kong) 840,000 6.818 .08
Hysan Development Co. Ltd. (Hong Kong) 1,960,000 4.703 .05
ELECTRONIC INSTRUMENTS- 0.18%
Scitex Corp. Ltd. (Israel) 835,000 15.761 .18
BUILDING MATERIALS & COMPONENTS- 0.02%
CEMEX, SA, Class A (Mexico) 400,125 1.535 .02
MISCELLANEOUS- 0.00%
Other equity-type securities in initial
period of acquisition 244.893 2.78
---------- ------
TOTAL EQUITY-TYPE SECURITIES
(cost:$5,236.241 million) 7,344.813 83.30
---------- ------
Principal
Amount
Bonds (Millions)
- --------------------------------------- ----------
FRENCH GOVERNMENT- 0.04%
France O.A.T. 9.50% June 1998 FF17.000 3.712 .04
---------- ------
TOTAL BONDS (cost: $2.657 million) 3.712 .04
---------- ------
TOTAL INVESTMENT SECURITIES (cost:
$5,238.898 million) 7,348.525 83.34
---------- ------
Short-Term Securities
- ------------------------------------------
CORPORATE SHORT-TERM NOTES- 13.32%
General Electric Capital Corp.
5.64%-5.71% due 11/2-12/4/95 $87.060 86.498 .98
Glaxo Wellcome plc 5.71%-5.74%
due 10/17-11/13/95 79.000 78.701 .89
J.C. Penney Funding Corp. 5.69%-5.72%
due 10/6-11/9/95 77.500 77.226 .88
Commerzbank U.S. Finance Inc. 5.69%-5.72%
due 10/16-11/15/95 70.300 70.035 .79
AT&T Corp. 5.64%-5.69% due 10/2-10/27/95 69.150 68.965 .78
Ford Credit Europe PLC 5.69%-5.72%
due 10/12-11/16/95 68.700 68.439 .78
Eli Lilly and Co. 5.70%-6.50%
due 10/2-12/7/95 64.650 64.351 .73
National Australia Funding (Delaware)
Inc. 5.64%-5.73% due 10/18-11/29/95 63.300 62.860 .71
American Express Credit Corp. 5.70%-5.73%
due 10/19-11/9/95 60.500 60.169 .68
PepsiCo, Inc. 5.70% due 10/13-10/30/95 49.500 49.343 .56
E.I. du Pont de Nemours and Co. 5.69%-5.70%
due 10/17-10/24/95 48.000 47.846 .54
Central and South West Corp. 5.72%-5.73%
due 10/10-11/8/95 47.900 47.678 .54
Commonwealth Bank of Australia 5.63%-5.65%
due 11/21-11/30/95 45.000 44.585 .51
Daimler-Benz North America Corp.
5.71%-5.73% due 10/4-10/19/95 41.800 41.733 .47
Chevron Oil Finance Co. 5.70%-5.74%
due 10/12-11/7/95 39.200 39.050 .44
Mobil Australia Finance Co., Inc.
5.68%-5.69% due 10/3-10/26/95 34.710 34.639 .39
Siemens Corp. 5.65%-5.72%
due 10/18-11/21/95 30.600 30.409 .35
Toyota Motor Credit Corp. 5.64%-5.67%
due 10/5-11/17/95 28.500 28.378 .32
ABN AMRO North America Finance Inc.
5.65%-5.72% due 10/2-11/14/95 26.000 25.891 .29
Exxon Imperial U.S. Inc. 5.70% due 10/23/95 24.600 24.510 .28
Canada Bills 5.55%-5.62% due 11/1-12/6/95 23.900 23.671 .27
Coca-Cola Co. 5.62%-5.70%
due 10/12-11/17/95 23.500 23.372 .27
Halifax Building Society 5.68% due 10/31/95 22.700 22.588 .26
Ford Motor Credit Co. 5.70% due 10/19/95 20.000 19.939 .23
Abbey National North America 5.67%
due 11/9/95 18.500 18.382 .21
Barclays Bank of Canada 5.70%
due 10/10/95 15.000 14.976 .17
CERTIFICATES OF DEPOSIT-2.04%
Canadian Imperial Bank of Commerce
5.73%-5.78% due 10/24-11/27/95 65,000 64.998 .74
ABN AMRO Bank NV 5.75%-5.78%
due 10/23-11/1/95 45,000 45.000 .51
Societe Generale 5.74% due 11/15-12/5/95 45,000 44.996 .51
Abbey National Treasury Services PLC
Eurocertificate 5.75% due 10/25/95 15,000 14.999 .17
ABN-AMRO Bank NV Eurocertificate 5.76%
due 10/25/95 10,000 10.000 .11
FEDERAL AGENCY DISCOUNT NOTES- 1.17%
Federal Home Loan Mortgage Corp.
5.61%-5.62% due 11/6-11/10/95 88.479 87.930 1.00
Federal National Mortgage Assn.
5.61% due 11/3/95 15.000 14.922 .17
---------- ------
NON-U.S. GOVERNMENT SHORT-TERM NOTES- 0.17%
Netherlands 6.50% 4/15/96 NLG23.000 14.560 .17
---------- ------
TOTAL SHORT-TERM SECURITIES
(cost: $1,467.468 million) 1,471.639 16.70
Excess of payables over cash and
receivables 3.164 .04
---------- ------
TOTAL SHORT-TERM SECURITIES AND NET CASH 1,468.475 16.66
---------- ------
NET ASSETS $8,817.000 100.00%
========== ======
</TABLE>
/1/ Purchased in a private placement transaction; resale to the public may
require registration or may extend only to qualified institutional buyers.
/2/ Non-income-producing securities
See Notes to Financial Statements
EQUITY-TYPE SECURITIES
APPEARING IN THE PORTFOLIO
SINCE MARCH 31, 1995
Alumax
Avon Products
Barrick Gold
Bergesen d.y.
Carnival Cruise Lines
Carter Holt Harvey
Chase Manhattan Bank
Cisco Systems
Colgate-Palmolive
Dow Jones & Co.
Duracell International
Georgia Gulf
Groupe Danone
Hitachi
Johnson & Johnson
Kymmene
Louisiana-Pacific
LTV
LVMH Moet Hennessy Louis Vuitton
Mattel
Nippon Yusen
Petrofina
SGS-THOMSON Microelectronics
Sybase
Telecommunicacoes Brasileiras
Telefonica de Argentina
Toys "R" Us
TRINOVA
Unocal
Usinor Sacilor
Viacom
Wal-Mart Stores
Weyerhaeuser
YPF
EQUITY-TYPE SECURITIES
ELIMINATED FROM THE PORTFOLIO
SINCE MARCH 31, 1995
Amoco
AMR
Banco Bilbao Vizcaya
BCE
China Light & Power
Fletcher Challenge
Imperial Oil
Lotus Development
Microsoft
Swiss Bank Corp.
Timken
Tokio Marine and Fire Insurance
TransCanada PipeLines
Volkswagen
Whirlpool
New Perspective Fund
Financial Statements
<TABLE>
<CAPTION>
Statement of Assets and Liabilities (dollars in
at September 30, 1995 millions)
- ------------------------------------- ---------- -----------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $5,238.898) $7,348.525
Short-term securities
(cost: $1,467.468) 1,471.639
Cash 1.408
Receivables for-
Sales of investments $5.872
Sales of fund's shares 22.013
Forward currency contracts 2.551
Dividends and accrued interest 17.507 47.943
---------- -----------
8,869.515
Liabilities:
Payables for-
Purchases of investments 43.383
Repurchases of fund's shares 3.984
Management services 3.117
Accrued expenses 2.031 52.515
---------- -----------
Net Assets at September 30, 1995-
Equivalent to $16.98 per share on
519,110,229 shares of $1 par value
capital stock outstanding (authorized
capital stock--600,000,000 shares) $8,817.000
===========
Statement of Operations (dollars in
for the year ended September 30, 1995 millions)
- ------------------------------------- ---------- -----------
Investment Income:
Income:
Dividends $ 128.996
Interest 87.691 $ 216.687
----------
Expenses:
Management services fee 32.015
Distribution expenses 15.602
Transfer agent fee 7.497
Reports to shareholders .801
Registration statement and prospectus .778
Postage, stationery and supplies 1.211
Directors' and Advisory Board fees .281
Auditing and legal fees .073
Custodian fee 2.384
Taxes other than federal
income tax .103
Other expenses .042 60.787
---------- -----------
Net investment income 155.900
-----------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 308.729
Net increase in unrealized
appreciation on investments 840.974
Net unrealized appreciation on
open forward currency contracts 2.551 843.525
---------- -----------
Net realized gain and unrealized appreciation
on investments 1,152.254
-----------
Net Increase in Net Assets Resulting
from Operations $1,308.154
===========
- ------------------------------------- ---------- -----------
Statement of Changes in Net Assets (dollars in
millions)
Year ended
September 30
1995 1994
- ------------------------------------- ---------- -----------
Operations:
Net investment income $155.900 $80.563
Net realized gain on investments 308.729 329.640
Net unrealized appreciation
on investments 843.525 178.640
---------- -----------
Net increase in net assets
resulting from operations 1,308.154 588.843
---------- -----------
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (105.752) (59.900)
Distributions from net realized gain on
investments (355.971) (128.427)
---------- -----------
Total dividends and distributions (461.723) (188.327)
---------- -----------
Capital Share Transactions:
Proceeds from shares sold: 136,794,997
and 119,000,193 shares, respectively 2,129.286 1,798.198
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 30,235,980 and 11,574,470 shares,
respectively 432.534 169.717
Cost of shares repurchased: 55,659,438
and 33,593,016 shares, respectively (869.751) (506.668)
---------- -----------
Net increase in net assets resulting from
capital share transactions 1,692.069 1,461.247
---------- -----------
Total Increase in Net Assets 2,538.500 1,861.763
Net Assets:
Beginning of year 6,278.500 4,416.737
---------- -----------
End of year (including undistributed
net investment income: $96.071
and $45.923, respectively) $8,817.000 $6,278.500
========== ===========
</TABLE>
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. New Perspective Fund, Inc. (the "fund") is registered under the Investment
Company Act of 1940 as an open-end, diversified management investment company.
The following paragraphs summarize the significant accounting policies
consistently followed by the fund in the preparation of its financial
statements:
Equity-type securities traded on a national securities exchange (or
reported on the NASDAQ national market) and securities traded in the
over-the-counter market are stated at the last reported sales price on the day
of valuation; other securities, and securities for which no sale was reported
on that date, are stated at the last quoted bid price.
Long-term and short-term securities with original or remaining maturities
in excess of 60 days, including forward currency contracts, 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, including forward
currency contracts, 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 $2,384,000 includes $205,000 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 September 30, 1995, net unrealized appreciation on investments,
excluding forward currency contracts, for federal income tax purposes
aggregated $2,114,787,000, of which $2,280,553,000 related to appreciated
securities and $165,766,000 related to depreciated securities. During the
year ended September 30, 1995, the fund realized, on a tax basis, a net capital
gain of $306,883,000 on securities transactions. Net gains related to non-U.S.
currency transactions of $4,685,000 were treated as ordinary income for federal
income tax purposes. The capital gain distribution paid in December 1994
includes $1,267,000 of realized non-U.S. currency gains. The cost of portfolio
securities, excluding forward currency contracts, for federal income tax
purposes was $6,705,378,000 at September 30, 1995.
3. The fee of $32,015,000 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 0.60% of the first $500 million of net assets; 0.50% of
such assets in excess of $500 million but not exceeding $1 billion; 0.46% of
such assets in excess of $1 billion but not exceeding $1.5 billion; 0.43% of
such assets in excess of $1.5 billion but not exceeding $2.5 billion; 0.41% of
such assets in excess of $2.5 billion but not exceeding $4 billion; 0.40% of
such assets in excess of $4 billion but not exceeding $6.5 billion; and 0.395%
of such assets in excess of $6.5 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 September 30, 1995,
distribution expenses under the Plan were $15,602,000. As of September 30,
1995, accrued and unpaid distribution expenses were $1,442,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $7,497,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $8,330,000 (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 September 30, 1995, aggregate amounts deferred
were $150,000.
CRMC is owned by The Capital Group Companies, Inc. AFS and AFD are both
wholly owned subsidiaries of CRMC. Certain Directors and officers of the fund
are or may be considered to be affiliated with CRMC, AFS, and AFD. No such
persons received any remuneration directly from the fund.
4. As of September 30, 1995, accumulated undistributed net realized gain on
investments was $272,771,000 and paid-in capital was $5,809,281,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $2,511,035,000 and $1,322,647,000, respectively,
during the year ended September 30, 1995.
Dividend and interest income is recorded net of non-U.S. taxes paid. For
the year ended September 30, 1995, such non-U.S. taxes were $13,148,000. Net
realized currency gains on dividends, interest, withholding taxes reclaimable,
and sales of non-U.S. bonds and notes were $2,154,000 for the year ended
September 30, 1995.
The fund purchases forward currency contracts in anticipation of, or to
protect itself against, fluctuations in exchange rates. The fund's use of
forward currency contracts involves, to varying degrees, elements of market
risk in excess of the amount recognized in the statement of assets and
liabilities. The contracts are recorded at market value and reflect the extent
of the fund's involvement in these financial instruments. Risks may arise upon
entering these contracts from the potential inability of counterparties to meet
the terms of their contracts and from the possible movements in non-U.S.
exchange rates and securities values underlying these instruments. At
September 30, 1995, the fund had outstanding forward currency contracts to sell
non-U.S. currencies as follows:
Non-U.S. Currency Sale Contracts
<TABLE>
<CAPTION>
Contract Amount U.S. Valuation at 9/30/95
Unrealized
Non-U.S. U.S. Amount Appreciation
Japanese Yen
<S> <C> <C> <C> <C>
expiring 1/22/96 Yen 1,900,000,000 $22,023,879 $19,472,612 $2,551,267
</TABLE>
- --------
Per-Share Data and Ratios
<TABLE>
<CAPTION>
Year ended
September
30
1995 1994 1993 1992 1991
------ ------ ------ ------- -------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Year $15.40 $14.21 $12.25 $11.77 $10.16
------ ------ ------ ------- -------
Income from Investment Operations:
Net investment income .31 .22 .17 .21 .29
Net realized and unrealized gain
on investments 2.35 1.54 2.04 .71 2.05
------ ------ ------ ------- -------
Total income from
investment operations 2.66 1.76 2.21 .92 2.34
------ ------ ------ ------- -------
Less Distributions:
Dividends from net
investment income (.237) (.173) (.178) (.24) (.30)
Dividends from net realized
non-U.S. currency gains (1) (.003) (.027) (.022) - -
Distributions from net
realized gains (.840) (.370) (.050) (.20) (.43)
------ ------ ------ ------- -------
Total distributions (1.08) (.57) (.25) (.44) (.73)
------ ------ ------ ------- -------
Net Asset Value, End of Year $16.98 $15.40 $14.21 $12.25 $11.77
====== ====== ======= =======
Total Return(2) 18.63% 12.61% 18.34% 8.04% 23.86%
Ratios/Supplemental Data:
Net assets, end of
year (in millions) $8,817 $6,279 $4,417 $3,082 $2,213
Ratio of expenses to average
net assets .83% .84% .87% .85% .86%
Ratio of net income to
average net assets 2.12% 1.48% 1.40% 1.82% 2.80%
Portfolio turnover rate 22.40% 25.33% 15.02% 6.43% 8.16%
</TABLE>
(1) Realized non-U.S. currency gains are treated as ordinary income for federal
income tax purposes.
(2) This was calculated without deducting a sales charge. The maximum sales
charge is 5.75% of the fund's offering price.
To the Board of Directors and Shareholders
of New Perspective Fund, 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 New Perspective Fund, Inc. (the
"Fund") at September 30, 1995, the results of its operations, the changes in
its net assets and the per-share data and ratios for the years 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 September 30, 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
October 27, 1995
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>
Dividends and Distributions per Share
To Shareholders Payment Date Dividends from From Net Realized From Net Realized
of Record Net Investment Short-Term Gains Long-Term Gains
Income
<S> <C> <C> <C> <C>
December 16, 1994 December 19, 1994 $0.16 - $0.84
June 2, 1995 June 5, 1995 $0.08 - -
</TABLE>
The fund makes an election under the Internal Revenue Code Section 853 to pass
through non-U.S. taxes paid by the fund to its shareholders. The amount of
non-U.S. taxes for the fiscal year ended September 30, 1995 is $0.02936 on a
per share basis. Shareholders are entitled to a foreign tax credit or an
itemized deduction, at their option. Generally, it is more advantageous to
claim a credit rather than to take a deduction.
Corporate shareholders may exclude up to 70% of qualifying dividends received
during the year. For purposes of computing this exclusion, 15% of the
dividends paid by the fund from net investment income represents qualifying
dividends.
Dividends and distributions received by retirement plans such as IRAs,
Keogh-type plans, and 403(b) plans need not be reported as taxable income.
However, many plan retirement trusts may need this information for their annual
information reporting.
SINCE THE AMOUNTS ABOVE ARE REPORTED FOR THE FUND'S FISCAL YEAR AND NOT THE
CALENDAR YEAR, SHAREHOLDERS SHOULD REFER TO THEIR FORM 1099-DIV AND OTHER TAX
INFORMATION WHICH WILL BE MAILED IN JANUARY 1996 TO DETERMINE THE CALENDAR YEAR
AMOUNTS TO BE INCLUDED ON THEIR RESPECTIVE 1995 TAX RETURNS. SHAREHOLDERS
SHOULD CONSULT THEIR TAX ADVISERS.
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
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
Per Share Data and Ratios
Report of Independent Accountants
(b) Exhibits:
1. On file (see SEC file nos. 811-2333 and 2-47749).
2. On file (see SEC file nos. 811-2333 and 2-47749).
3. None.
4. On file (see SEC file nos. 811-2333 and 2-47749).
5. On file (see SEC file nos. 811-2333 and 2-47749).
6. On file (see SEC file nos. 811-2333 and 2-47749).
7. None.
8. On file (see SEC file nos. 811-2333 and 2-47749).
9. On file (see SEC file nos. 811-2333 and 2-47749).
10. Not applicable to this filing.
11. Consent of Independent Accountants.
12. None.
13. None.
14. On file (see SEC file nos. 811-2333 and 2-47749).
15. On file (see SEC file nos. 811-2333 and 2-47749).
16. Updates to previously filed schedule for computation of each performance
quotation provided in the Registration Statement in response to Item 22.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
As of October 31, 1995:
<TABLE>
<CAPTION>
<S> <C>
Title of Class Number of Record-Holders
Capital Stock 728,218
($1.00 par value)
</TABLE>
ITEM 27. INDEMNIFICATION.
Registrant is a joint-insured under Investment Advisor/Mutual Fund
Errors and Omissions Policy 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.
However, in no event will Registrant maintain insurance to indemnify any such
person for any act for which Registrant itself is not permitted to indemnify
the individual.
Subsection (b) of Section 2-418 of the General Corporation Law of Maryland
empowers a corporation to indemnify any person who was or is 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 or enterprise,
against reasonable expenses (including attorneys' fees), judgments, penalties,
fines and amounts paid in settlement actually incurred by him in connection
with such action, suit or proceeding unless it is established that: (i) the
act or omission of the person was material to the matter giving rise to the
proceeding and was committed in bad faith or was the result of active and
deliberate dishonesty; (ii) the person actually received an improper personal
benefit of money, property or services; or (iii) with respect to any criminal
action or proceeding, the person had reasonable cause to believe his act or
omission was unlawful.
Indemnification under subsection (b) of Section 2-418 may not be made by a
corporation unless authorized for a specific proceeding after a determination
has been made that indemnification is permissible in the circumstances because
the party to be indemnified has met the standard of conduct set forth in
subsection (b). This determination shall be made (i) by the Board of Directors
by a majority vote of a quorum consisting of directors not, at the time,
parties to the proceeding, or, if such quorum cannot be obtained, then by a
majority vote of a committee of the Board consisting solely of two or more
directors not, at the time, parties to such proceeding and who were duly
designated to act in the matter by a majority vote of the full Board in which
the designated directors who are parties may participate; (ii) by special legal
counsel selected by the Board of Directors of a committee of the Board by vote
as set forth in subparagraph (i), or, if the requisite quorum of the full Board
cannot be obtained therefor and the committee cannot be established, by a
majority vote of the full Board in which any director who is a party may
participate; or (iii) by the stockholders (except that shares held by any party
to the specific proceeding may not be voted). A court of appropriate
jurisdiction may also order indemnification if the court determines that a
person seeking indemnification is entitled to reimbursement under subsection
(b).
Section 2-418 further provides that indemnification provided for by
Section 2-418 shall not be deemed exclusive of any 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,
officer, employee or agent of the corporation against any liability asserted
against or incurred by such person in any such capacity or arising out of such
person's status as such whether or not the corporation would have the power to
indemnify such person against such liabilities under Section 2-418.
Article VI of the Articles of Incorporation of the fund provides that
the fund shall indemnify directors or officers of the fund against certain
actions, including expenses incurred except that "[N]othing ......... shall be
deemed to protect any director or officer of the Corporation against any
liability to the Corporation or to its security holders to which he would
otherwise be subject by reason of willful malfeasance, bad faith, gross
negligence, or reckless disregard of the duties involved in the conduct of his
office."
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, SMALLCAP World Fund, Inc., The Tax-Exempt Bond Fund of
America, Inc., The Tax-Exempt Money Fund of America, The U.S. Treasury Money
Fund of America and Washington Mutual Investors Fund, Inc.
ITEM 29. PRINCIPAL UNDERWRITERS (CONT.)
(B)
<TABLE>
<CAPTION>
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address with Underwriter with Registrant
<S> <C> <C> <C>
# David A. Abzug Assistant Vice President None
John A. Agar Regional Vice President None
1501 N. University Drive
Little Rock, AR 72207
Robert B. Aprison Regional Vice President None
2983 Brynwood Drive
Madison, WI 53711
# Richard 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
Ian B. Bodell Vice President None
3100 West End Avenue, Suite 870
Nashville, TN 37215
Michael L. Brethower Vice President None
108 Hagan Court
Georgetown, TX 78628
C. Alan Brown Regional Vice President None
4619 McPherson Avenue
St. Louis, MO 63108
* Daniel C. Brown Senior Vice President None
and Director
@ J. Peter Burns Vice President None
Brian C. Casey Regional Vice President None
9508 Cable Drive
Kensington, MD 20895
Victor C. Cassato Vice President None
999 Green Oaks Drive
Littleton, CO 80121
Christopher J. Cassin Regional Vice President None
231 Burlington
Clarendon Hills, IL 60514
Denise M. Cassin Regional Vice President None
1425 Vallejo, #203
San Francisco, CA 94109
* Larry P. Clemmensen Treasurer and Director 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 Boulevard
Coral Gables, FL 33134
Douglas A. Critchell Vice President None
1101 Vermont Avenue, Suite 100
Washington, DC 20005
% Carl D. Cutting Vice President None
Michael A. Dilella Vice President None
P.O. Box 661
Ramsey, NJ 07446
G. Michael Dill Senior Vice President None
3622 E. 87th Street
Tulsa, OK 74137
Kirk D. Dodge Vice President None
2617 Salisbury Road
Ann Arbor, MI 48103
Peter J. Doran Senior Vice President None
1205 Franklin Avenue
Garden City, NY 11530
* Michael J. Downer Secretary None
Robert W. Durbin Vice President None
74 Sunny Lane
Tiffin, OH 44883
& Lloyd G. Edwards Vice President None
@ Richard A. Eychner Vice President None
* Paul H. Fieberg Senior Vice President None
John 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
Rt. 2, Box 3162
Osage Beach, MO 65065
# Evelyn K. Glassford Vice President None
Jeffrey J. Greiner Regional Vice President None
5898 Heather Glen Court
Dublin, OH 43017
* Paul G. Haaga, Jr. Director None
David E. Harper Vice President None
R.D 1, Box 210, Rte. 519
Baptistown, NJ 08825
Ronald R. Hulsey Regional Vice President None
6744 Avalon
Dallas, TX 75214
* Robert L. Johansen Vice President and Controller None
* Victor J. Kriss, Jr. Senior Vice President None
Arthur J. Levine Vice President None
12558 Highlands Place
Fishers, IN 46038
# Karl A. Lewis Assistant Vice President None
T. Blake Liberty Regional Vice President None
12585-E East Tennessee Circle
Aurora, CO 80012
# Heather A. Maier Assitant Vice President - None
Institutional Investment
Services Divison
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. Nyhus Regional Vice President None
3084 Wilds Ridge Court
Prior Lake, MN 55372
Eric P. Olson Regional Vice President None
62 Park Drive
Glenview, IL 60025
Fredric Phillips Regional Vice President None
32 Ridge Avenue
Newton Centre, MA 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
Charlotte, NC 28277
* George L. Romine Vice President - Institutional None
Investment Services Division
George S. Ross Vice President None
55 Madison Avenue
Morristown, NJ 07962
* Julie D. Roth Vice President None
Douglas F. Rowe Regional Vice President None
30309 Oak Tree Drive
Georgetown, TX 78628
* Christopher Rowey Regional Vice President None
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 Chairman of the Board None
David W. Short Senior Vice President None
1000 RIDC Plaza, Suite 212
Pittsburgh, PA 15238
* Victor S. Sidhu Vice President - Institutional None
Investment Services Division
William P. Simon, Jr. Vice President None
554 Canterbury Lane
Berwyn, PA 19312
* John C. Smith Assistant Vice President, None
Institutional Investment
Services Division
# Mark S. Smith Senior Vice President None
and Director
* Mary E. Smith Assistant Vice President, None
Institutional Investment Services
Division
Rodney G. Smith Regional Vice President None
2350 Lakeside Blvd., #850
Richardson, TX 75082
Nicholas D. Spadaccini Regional Vice President None
855 Markley Woods Way
Cincinnati, OH 45230
Daniel S. Spradling Senior Vice President None
4 West Fourth Avenue, Suite 406
San Mateo, CA 94402
Craig R. Strauser Regional Vice President None
17040 Summer Place
Lake Oswego, OR 97035
Francis N. Strazzeri Regional Vice President None
31641 Saddletree Drive
Westlake Village, CA 91361
# James P. Toomey Assistant Vice President None
& Christopher E. Trede Assistant Vice President None
George F. Truesdail Vice President None
400 Abbotsford Court
Charlotte, NC 28270
Scott W. Ursin-Smith Regional Vice President None
606 Glenwood Avenue
Mill Valley, CA 94941
@ Andrew J. Ward Vice President None
* David M. Ward Assistant Vice President - None
Institutional Investment
Services Division
Thomas E. Warren Regional Vice President None
4001 Crockers Lake Blvd., #1012
Sarasota, FL 34238
# J. Kelly Webb Senior Vice President None
Gregory J.Weimer Regional Vice President None
125 Surrey Drive
Canonsburg, PA 15317
# Timothy W. Weiss Director None
** N. Dexter Williams Vice President None
Timothy J. Wilson Regional Vice President None
113 Farmview Place
Venetia, PA 15367
* Marshall D. Wingo Senior Vice President None
* Robert L. Winston Senior Vice President and None
Director
William R. Yost Regional Vice President None
9320 Overlook Trail
Eden Prairie, MN 55347
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 Center, Suite 1000, 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, 8332 Woodfield Crossing Blvd., Indianapolis, IN 46240
@ Business Address, 5300 Robin Hood Road, Norfolk, VA 23513
(C) None.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS.
Accounts, books and other records required by Rules 31a-1 and 31a-2 under
the Investment Company Act of 1940, are maintained and kept in the offices of
the fund 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
fund's 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 Blvd., 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
27th day of November, 1995.
NEW PERSPECTIVE FUND, INC.
By /s/ Walter P. Stern
(Walter P. Stern, Chairman of the Board)
Pursuant to the requirements of the Securities Act of 1933, this amendment to
Registration Statement has been signed below on November 27, 1995, by the
following persons in the capacities indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE
<S> <C> <C>
(1) Principal Executive Officer:
/s/ Gina H. Despres President
(Gina H. Despres)
(2) Principal Financial Officer and
Principal Accounting Officer:
/s/ Steven N. Kearsley Treasurer
(Steven N. Kearsley)
(3) Directors:
Elisabeth Allison* Director
David I. Fisher* Director
Robert A. Fox* Director
Alan Greenway* Director
Koichi Itoh* Director
William H. Kling* Director
Jon B. Lovelace Vice Chairman and Director
John G. McDonald* Director
William I. Miller* Director
Donald E. Petersen* Director
James W. Ratzlaff Director
/s/ Walter P. Stern
(Walter P. Stern) Chairman of the Board
</TABLE>
*By /s/ Vincent P. Corti
(Vincent P. Corti, Attorney-in-Fact)
Counsel reports that the amendment does not contain disclosures that would
make the amendment ineligible for effectiveness under the provisions of rule
485(b).
/s/ Michael J. Downer
(Michael J. Downer)
SHAREHOLDER SERVICES AGREEMENT
1. The parties to this Agreement, which is effective as of January 1, 1995,
are New Perspective Fund, Inc. (hereinafter called "the Fund") and American
Funds Service Company, a California corporation (hereinafter called "AFS").
AFS is a wholly owned subsidiary of Capital Research and Management Company
(hereinafter called "CRMC"). This Agreement will continue in effect until
amended or terminated in accordance with its terms.
2. The Fund hereby employs AFS, and AFS hereby accepts such employment by the
Fund, as its transfer agent. In such capacity AFS will provide the services of
stock transfer agent, dividend disbursing agent, redemption agent, and such
additional related services as the Fund may from time to time require, all of
which services are sometimes referred to herein as "shareholder services."
3. AFS has entered into substantially identical agreements with other
investment companies for which CRMC serves as investment adviser. (For the
purposes of this Agreement, such investment companies, including the Fund, are
called "participating investment companies.")
4. AFS has entered into an agreement with DST Systems, Inc. (hereinafter
called "DST"), to provide AFS with electronic data processing services
sufficient for the performance of the shareholder services referred to in
paragraph 2.
5. The Fund, together with the other participating companies, will maintain a
Review and Advisory Committee, which Committee will review and may make
recommendations to the boards of the participating investment companies
regarding all fees and charges provided for in this Agreement, as well as
review the level and quality of the shareholder services rendered to the
participating investment companies and their shareholders. Each participating
investment company may select one director or trustee who is not affiliated
with CRMC, or any of its affiliated companies, or with Washington Management
Corporation or any of its affiliated companies, to serve on the Review and
Advisory Committee.
6. AFS will provide to the participating investment companies the shareholder
services referred to herein in return for the following fees:
ANNUAL ACCOUNT MAINTENANCE FEE (PAID MONTHLY):
$.67 per month for each open account on AFS books or in Level 2 or 4
Networking ($8.04 per year)
$.09 per month for each open account maintained in Street Name or
Level 1 or 3 Networking ($1.08 per year)
No annual fee will be charged for a participant account underlying a
401(k) or other defined contribution plan where the plan maintains
a single account on AFS books and responds to all participant inquiries
TRANSACTION FEES:
$2.00 per non-automated transaction
$0.50 per automated transaction
For this purpose, "transactions" shall include all types of transactions
included in an "activity index" as reported to the Review and Advisory
Committee at least annually. AFS will bill the Fund monthly, on or shortly
after the first of each calendar month, and the Fund will pay to AFS within
five business days of such billing.
Any revision of the schedule of charges set forth herein shall require the
affirmative vote of a majority of the members of the board of
directors/trustees of the Fund.
7. All fund-specific charges from third parties -- including DST charges,
payments described in the next sentence, postage, NSCC transaction charges and
similar out-of-pocket expenses -- will be passed through directly to the Fund
or other participating investment companies, as applicable. AFS, subject to
approval of its board of directors, is authorized in its discretion to
negotiate payments to third parties for account maintenance and/or transaction
processing services provided such payments do not exceed the anticipated
savings to the Fund, either in fees payable to AFS hereunder or in other direct
Fund expenses, that AFS reasonably anticipates would be realized by the Fund
from using the services of such third party rather than maintaining the
accounts directly on AFS' books and/or processing non-automated transactions.
8. It is understood that AFS may have income in excess of its expenses and may
accumulate capital and surplus. AFS is not, however, permitted to distribute
any net income or accumulated surplus to its parent, CRMC, in the form of a
dividend without the affirmative vote of a majority of the members of the
boards of directors/trustees of the Fund and all participating investment
companies.
9. This Agreement may be amended at any time by mutual agreement of the
parties, with agreement of the Fund to be evidenced by affirmative vote of a
majority of the members of the board of directors/trustees of the Fund.
10. This Agreement may be terminated on 180 days' written notice by either
party. In the event of a termination of this Agreement, AFS and the Fund will
each extend full cooperation in effecting a conversion to whatever successor
shareholder service provider(s) the Fund may select, it being understood that
all records relating to the Fund and its shareholders are property of the Fund.
11. In the event of a termination of this Agreement by the Fund, the Fund will
pay to AFS as a termination fee the Fund's proportionate share of any costs of
conversion of the Fund's shareholder service from AFS to a successor. In the
event of termination of this Agreement and all corresponding agreements with
all the participating investment companies, all assets of AFS will be sold or
otherwise converted to cash, with a view to the liquidation of AFS when it
ceases to provide shareholder services for the participating investment
companies. To the extent any such assets are sold by AFS to CRMC and/or any of
its affiliates, such sales shall be at fair market value at the time of sale as
agreed upon by AFS, the purchasing company or companies, and the Review and
Advisory Committee. After all assets of AFS have been converted to cash and
all liabilities of AFS have been paid or discharged, an amount equal to any
capital or paid-in surplus of AFS that shall have been contributed by CRMC or
its affiliates shall be set aside in cash for distribution to CRMC upon
liquidation of AFS. Any other capital or surplus and any assets of AFS
remaining after the foregoing provisions for liabilities and return of capital
or paid-in surplus to CRMC shall be distributed to the participating investment
companies in such proportions as may be determined by the Review and Advisory
Committee.
12. In the event of disagreement between the Fund and AFS, or between the Fund
and other participating investment companies as to any matter arising under
this Agreement, which the parties to the disagreement are unable to resolve,
the question shall be referred to the Review and Advisory Committee for
resolution. If the Review and Advisory Committee is unable to resolve the
question to the satisfaction of both parties, either party may elect to submit
the question to arbitration; one arbitrator to be named by each party to the
disagreement and a third arbitrator to be selected by the two arbitrators named
by the original parties. The decision of a majority of the arbitrators shall
be final and binding on all parties to the arbitration. The expenses of such
arbitration shall be paid by the party electing to submit the question to
arbitration.
13. The obligations of the Fund under this Agreement are not binding upon any
of the directors, trustees, officers, employees, agents or shareholders of the
Fund individually, but bind only the Fund itself. AFS agrees to look solely to
the assets of the Fund for the satisfaction of any liability of the Fund in
respect to this Agreement and will not seek recourse against such directors,
trustees, officers, employees, agents or shareholders, or any of them or their
personal assets for such satisfaction.
AMERICAN FUNDS SERVICE COMPANY NEW PERSPECTIVE FUND, INC.
By /s/ Don R. Conlan By /s/ Walter P., Stern
Don R. Conlan, Chairman Walter P. Stern, 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. 45 to the registration
statement on Form N-1A (the "Registration Statement") of our report dated
October 27, 1995, relating to the financial statements and per share data and
ratios of New Perspective Fund, 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 reference to us under the heading "General Information" in
such Statement of Additional Information and to the reference to us under the
heading "Financial Highlights" in the Prospectus.
PRICE WATERHOUSE LLP
Los Angeles, California
November 27, 1995
SCHEDULE FOR COMPUTATION OF EACH PERFORMANCE QUOTATION
PROVIDED IN THE REGISTRATION STATEMENT
(1) ENDING REDEMPTION VALUE AND TOTAL RETURN
Value of an initial investment at the end of a period and total return for the
period are computed as set forth below.
(A) INITIAL INVESTMENT DIVIDED BY
PUBLIC OFFERING PRICE FOR ONE SHARE AT BEGINNING
OF PERIOD EQUALS
NUMBER OF SHARES INITIALLY PURCHASED
(B) NUMBER OF SHARES INITIALLY PURCHASED PLUS
NUMBER OF SHARES ACQUIRED AT NET ASSET VALUE
THROUGH REINVESTMENT OF DIVIDENDS AND CAPITAL
GAIN DISTRIBUTIONS DURING PERIOD EQUALS
NUMBER OF SHARES PURCHASED DURING PERIOD
(C) NUMBER OF SHARES PURCHASED DURING PERIOD MULTIPLIED BY
NET ASSET VALUE OF ONE SHARE AS OF THE LAST DAY
OF THE PERIOD EQUALS
VALUE OF INVESTMENT AT END OF PERIOD
(D) VALUE OF INVESTMENT AT END OF PERIOD DIVIDED BY
INITIAL INVESTMENT
MINUS ONE AND THEN MULTIPLIED BY 100 EQUALS
TOTAL RETURN FOR THE PERIOD EXPRESSED AS A
PERCENTAGE
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/ = $ 1,118.07
T = + 11.81%
5 Year Avg. Annual Total Return 1,000(1+T)/5/ = $ 1,993.66
T = + 14.80%
10 Year Avg. Annual Total Return 1,000(1+T)/10/ = $ 4,324.76
T = + 15.77%
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>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/94 1000 16.34 5.75 % 61.2 15.4 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/95 1000 15 15 1015 51 1039 62 1101 17 1118.07 65.846
TOTAL $51
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/90 1000 10.78 5.75 % 92.764 10.16 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 1000 29 29 1029 40 1092 45 1137 30 1167.35 99.18
09/30/92 1000 24 53 1053 20 1136 68 1204 57 1261.16 102.952
09/30/93 1000 20 73 1073 5 1318 85 1403 89 1492.42 105.026
09/30/94 1000 22 95 1095 39 1429 133 1562 118 1680.54 109.126
09/30/95 1000 26 121 1121 92 1575 256 1831 162 1993.66 117.412
TOTAL $196
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/85 1000 9 5.75 % 111.111 8.48 942
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 1000 24 24 1024 76 1176 103 1279 29 1308.03 123.632
09/30/87 1000 29 53 1053 155 1526 356 1882 76 1958.27 142.627
09/30/88 1000 37 90 1090 163 1139 444 1583 96 1679.31 163.835
09/30/89 1000 54 144 1144 103 1329 644 1973 176 2149.3 179.707
09/30/90 1000 54 198 1198 182 1129 717 1846 198 2044.45 201.225
09/30/91 1000 61 259 1259 87 1308 927 2235 297 2532.26 215.145
09/30/92 1000 52 311 1311 43 1361 1011 2372 363 2735.77 223.328
09/30/93 1000 45 356 1356 11 1579 1186 2765 472 3237.45 227.829
09/30/94 1000 46 402 1402 84 1711 1374 3085 560 3645.57 236.725
09/30/95 1000 58 460 1460 199 1887 1753 3640 684 4324.76 254.697
TOTAL $1,103
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
03/13/73 1000 14.56 5.75 % 68.681 13.725 943
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/73 1000 0 0 1000 0 994 0 994 0 993.81 68.681
09/30/74 1000 33 33 1033 0 716 0 716 24 740.19 70.967
09/30/75 1000 40 73 1073 0 995 0 995 81 1076.88 74.319
09/30/76 1000 33 106 1106 0 1142 0 1142 130 1272.03 76.49
09/30/77 1000 28 134 1134 23 1124 24 1148 156 1304.99 79.767
09/30/78 1000 32 166 1166 57 1391 108 1499 235 1734.19 256.917
09/30/79 1000 45 211 1211 62 1516 187 1703 306 2009.96 273.093
09/30/80 1000 50 261 1261 5 1823 232 2055 431 2486.65 289.482
09/30/81 1000 93 354 1354 0 1791 227 2018 513 2531.48 330.049
09/30/82 1000 167 521 1521 244 1622 456 2078 637 2715.09 390.661
09/30/83 1000 184 705 1705 109 2108 738 2846 1063 3909.31 432.925
09/30/84 1000 121 826 1826 260 1926 932 2858 1091 3949.46 478.722
09/30/85 1000 120 946 1946 311 1980 1320 3300 1257 4557.84 537.481
09/30/86 1000 118 1064 2064 365 2470 2144 4614 1713 6327.32 598.045
09/30/87 1000 140 1204 2204 748 3205 3860 7065 2407 9472.78 689.933
09/30/88 1000 182 1386 2386 787 2393 3743 6136 1987 8123.38 792.525
09/30/89 1000 260 1646 2646 499 2792 4977 7769 2627 10396.86 869.303
09/30/90 1000 262 1908 2908 878 2372 5048 7420 2469 9889.71 973.397
09/30/91 1000 298 2206 3206 419 2748 6318 9066 3183 12249.39 1040.73
09/30/92 1000 253 2459 3459 208 2860 6799 9659 3574 13233.81 1080.311
09/30/93 1000 218 2677 3677 54 3317 7950 11267 4393 15660.57 1102.081
09/30/94 1000 223 2900 3900 408 3595 9046 12641 4993 17634.74 1145.113
09/30/95 1000 281 3181 4181 962 3964 11125 15089 5831 20920.23 1232.051
TOTAL $6,399
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/94 1000 15.4 0 % 64.935 15.4 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/95 1000 16 16 1016 55 1103 65 1168 18 1186.32 69.866
TOTAL $55
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/90 1000 10.16 0 % 98.425 10.16 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 1000 30 30 1030 42 1158 47 1205 33 1238.59 105.233
09/30/92 1000 26 56 1056 21 1206 72 1278 60 1338.13 109.235
09/30/93 1000 22 78 1078 5 1399 90 1489 94 1583.51 111.436
09/30/94 1000 22 100 1100 41 1516 141 1657 126 1783.14 115.788
09/30/95 1000 29 129 1129 97 1671 272 1943 172 2115.35 124.579
TOTAL $206
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/85 1000 8.48 0 % 117.925 8.48 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 1000 26 26 1026 80 1248 109 1357 31 1388.22 131.212
09/30/87 1000 31 57 1057 164 1619 378 1997 81 2078.35 151.373
09/30/88 1000 40 97 1097 173 1209 471 1680 102 1782.29 173.882
09/30/89 1000 57 154 1154 110 1410 684 2094 187 2281.09 190.727
09/30/90 1000 57 211 1211 193 1198 761 1959 210 2169.83 213.566
09/30/91 1000 66 277 1277 92 1388 984 2372 315 2687.54 228.338
09/30/92 1000 56 333 1333 46 1445 1073 2518 385 2903.51 237.021
09/30/93 1000 47 380 1380 12 1676 1259 2935 500 3435.94 241.797
09/30/94 1000 49 429 1429 89 1816 1459 3275 594 3869.05 251.237
09/30/95 1000 62 491 1491 211 2002 1861 3863 726 4589.9 270.312
TOTAL $1,170
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
03/13/73 1000 13.73 0 % 72.86 13.725 1000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/73 1000 0 0 1000 0 1054 0 1054 0 1054.28 72.86
09/30/74 1000 35 35 1035 0 760 0 760 25 785.22 75.285
09/30/75 1000 43 78 1078 0 1056 0 1056 86 1142.39 78.84
09/30/76 1000 36 114 1114 0 1212 0 1212 137 1349.39 81.142
09/30/77 1000 30 144 1144 24 1192 26 1218 166 1384.35 84.618
09/30/78 1000 34 178 1178 61 1475 114 1589 250 1839.67 272.544
09/30/79 1000 47 225 1225 65 1609 198 1807 325 2132.21 289.703
09/30/80 1000 53 278 1278 6 1934 246 2180 457 2637.9 307.09
09/30/81 1000 99 377 1377 0 1899 241 2140 545 2685.45 350.124
09/30/82 1000 177 554 1554 259 1721 483 2204 676 2880.23 414.421
09/30/83 1000 194 748 1748 116 2236 783 3019 1128 4147.07 459.255
09/30/84 1000 128 876 1876 276 2043 989 3032 1157 4189.64 507.835
09/30/85 1000 127 1003 2003 330 2100 1401 3501 1334 4835.03 570.169
09/30/86 1000 125 1128 2128 388 2620 2274 4894 1818 6712.1 634.414
09/30/87 1000 147 1275 2275 793 3400 4095 7495 2553 10048.84 731.889
09/30/88 1000 193 1468 2468 834 2538 3970 6508 2109 8617.38 840.72
09/30/89 1000 276 1744 2744 530 2962 5280 8242 2787 11029.11 922.166
09/30/90 1000 277 2021 3021 931 2516 5355 7871 2620 10491.11 1032.59
09/30/91 1000 316 2337 3337 444 2915 6702 9617 3377 12994.27 1104.016
09/30/92 1000 268 2605 3605 221 3034 7212 10246 3792 14038.54 1146.003
09/30/93 1000 231 2836 3836 57 3519 8433 11952 4660 16612.85 1169.096
09/30/94 1000 237 3073 4073 433 3814 9596 13410 5297 18707.07 1214.745
09/30/95 1000 298 3371 4371 1020 4205 11802 16007 6185 22192.37 1306.971
TOTAL $6,788
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
03/13/73 10000 14.56 5.75 % 686.813 13.725 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/73 10000 0 0 10000 0 9938 0 9938 0 9938.18 686.813
09/30/74 10000 325 325 10325 0 7163 0 7163 238 7401.87 709.671
09/30/75 10000 401 726 10726 0 9952 0 9952 816 10768.75 743.185
09/30/76 10000 337 1063 11063 0 11422 0 11422 1298 12720.15 764.892
09/30/77 10000 280 1343 11343 229 11236 244 11480 1569 13049.67 797.657
09/30/78 10000 318 1661 11661 574 13908 1079 14987 2354 17341.84 2569.161
09/30/79 10000 444 2105 12105 617 15165 1868 17033 3066 20099.51 2730.912
09/30/80 10000 501 2606 12606 55 18230 2315 20545 4321 24866.48 2894.817
09/30/81 10000 931 3537 13537 0 17905 2274 20179 5135 25314.68 3300.48
09/30/82 10000 1667 5204 15204 2442 16225 4557 20782 6368 27150.79 3906.588
09/30/83 10000 1830 7034 17034 1094 21080 7382 28462 10630 39092.87 4329.221
09/30/84 10000 1205 8239 18239 2598 19259 9323 28582 10912 39494.17 4787.172
09/30/85 10000 1196 9435 19435 3112 19796 13202 32998 12580 45578.06 5374.771
09/30/86 10000 1178 10613 20613 3655 24699 21436 46135 17137 63272.63 5980.4
09/30/87 10000 1393 12006 22006 7476 32052 38599 70651 24075 94726.95 6899.268
09/30/88 10000 1820 13826 23826 7865 23928 37429 61357 19876 81233.07 7925.178
09/30/89 10000 2605 16431 26431 4993 27920 49773 77693 26274 103967.65 8692.947
09/30/90 10000 2617 19048 29048 8780 23718 50481 74199 24697 98896.12 9733.87
09/30/91 10000 2979 22027 32027 4186 27477 63176 90653 31839 122492.52 10407.181
09/30/92 10000 2524 24551 34551 2081 28597 67989 96586 35750 132336.52 10802.981
09/30/93 10000 2172 26723 36723 540 33173 79499 112672 43931 156603.78 11020.674
09/30/94 10000 2231 28954 38954 4078 35951 90455 126406 49939 176345.26 11450.991
09/30/95 10000 2813 31767 41767 9619 39639 111254 150893 58306 209199.88 12320.37
TOTAL $63,994
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DOW JONES INDUSTRIAL AVERAGE
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
03/13/73 10000 976.07 0 % 10.245 976.07 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/73 10000 171 171 10171 0 9703 0 9703 180 9883.94 10.436
09/30/74 10000 403 574 10574 0 6228 0 6228 427 6655.57 10.949
09/30/75 10000 427 1001 11001 0 8133 0 8133 1018 9151.85 11.528
09/30/76 10000 456 1457 11457 0 10145 0 10145 1748 11893.17 12.011
09/30/77 10000 547 2004 12004 0 8679 0 8679 2004 10683.75 12.612
09/30/78 10000 611 2615 12615 0 8870 0 8870 2695 11565.62 13.358
09/30/79 10000 704 3319 13319 0 9001 0 9001 3482 12483.74 14.209
09/30/80 10000 784 4103 14103 0 9553 0 9553 4539 14092.6 15.114
09/30/81 10000 869 4972 14972 0 8708 0 8708 4908 13616.68 16.02
09/30/82 10000 912 5884 15884 0 9182 0 9182 6129 15311.54 17.084
09/30/83 10000 951 6835 16835 0 12634 0 12634 9461 22095.22 17.918
09/30/84 10000 1067 7902 17902 0 12363 0 12363 10343 22706.66 18.817
09/30/85 10000 1186 9088 19088 0 13612 0 13612 12623 26235.13 19.746
09/30/86 10000 1347 10435 20435 0 18109 0 18109 18177 36286.65 20.529
09/30/87 10000 1469 11904 21904 0 26599 0 26599 28395 54994.4 21.182
09/30/88 10000 1641 13545 23545 0 21647 0 21647 24849 46496.7 22.006
09/30/89 10000 2245 15790 25790 0 27588 0 27588 34179 61767.91 22.938
09/30/90 10000 2359 18149 28149 0 25126 0 25126 33270 58396 23.811
09/30/91 10000 2355 20504 30504 0 30907 0 30907 43408 74315.11 24.634
09/30/92 10000 2442 22946 32946 0 33518 0 33518 49572 83090.35 25.397
09/30/93 10000 2584 25530 35530 0 36423 0 36423 56522 92945.06 26.144
09/30/94 10000 2786 28316 38316 0 39374 0 39374 63923 103297.26 26.878
09/30/95 10000 3089 31405 41405 0 49065 0 49065 83185 132250.44 27.615
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD & POOR'S 500 COMPOSITE INDEX
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
03/13/73 10000 114.48 0 % 87.352 114.48 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/73 10000 146 146 10146 0 9472 0 9472 150 9622.51 88.744
09/30/74 10000 322 468 10468 0 5550 0 5550 326 5876.31 92.482
09/30/75 10000 349 817 10817 0 7326 0 7326 789 8115.76 96.766
09/30/76 10000 379 1196 11196 0 9193 0 9193 1394 10587.88 100.607
09/30/77 10000 461 1657 11657 0 8432 0 8432 1730 10162.49 105.278
09/30/78 10000 539 2196 12196 0 8957 0 8957 2417 11374.56 110.928
09/30/79 10000 624 2820 12820 0 9549 0 9549 3261 12810.88 117.187
09/30/80 10000 726 3546 13546 0 10959 0 10959 4548 15507.11 123.602
09/30/81 10000 819 4365 14365 0 10148 0 10148 4938 15086.21 129.852
09/30/82 10000 909 5274 15274 0 10519 0 10519 6050 16569.31 137.596
09/30/83 10000 980 6254 16254 0 14506 0 14506 9409 23915.24 144.007
09/30/84 10000 1081 7335 17335 0 14509 0 14509 10534 25043.73 150.775
09/30/85 10000 1201 8536 18536 0 15905 0 15905 12762 28667.22 157.443
09/30/86 10000 1314 9850 19850 0 20206 0 20206 17529 37735.23 163.13
09/30/87 10000 1429 11279 21279 0 28112 0 28112 25993 54105.74 168.119
09/30/88 10000 1614 12893 22893 0 23752 0 23752 23680 47432.52 174.442
09/30/89 10000 1888 14781 24781 0 30499 0 30499 32547 63046.71 180.572
09/30/90 10000 2165 16946 26946 0 26734 0 26734 30478 57212.68 186.939
09/30/91 10000 2326 19272 29272 0 33880 0 33880 41086 74966.74 193.283
09/30/92 10000 2424 21696 31696 0 36495 0 36495 46765 83260.02 199.282
09/30/93 10000 2522 24218 34218 0 40088 0 40088 53956 94044.39 204.921
09/30/94 10000 2677 26895 36895 0 40417 0 40417 57061 97478.6 210.678
09/30/95 10000 2892 29787 39787 0 51049 0 51049 75403 126452.88 216.377
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
03/13/73 10000 14.56 5.75 % 686.813 13.725 9427
DIVIDENDS TAKEN IN CASH -- CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/73 10000 0 0 10000 0 9938 0 9938 0 9938.18 686.813
09/30/74 10000 322 322 10000 0 7163 0 7163 0 7163.46 686.813
09/30/75 10000 385 707 10000 0 9952 0 9952 0 9951.92 686.813
09/30/76 10000 309 1016 10000 0 11422 0 11422 0 11421.7 686.813
09/30/77 10000 249 1265 10000 206 11236 219 11455 0 11455.29 700.201
09/30/78 10000 278 1543 10000 504 13908 953 14861 0 14861.48 2201.7
09/30/79 10000 378 1921 10000 528 15165 1631 16796 0 16796.46 2282.128
09/30/80 10000 416 2337 10000 46 18230 2020 20250 0 20250.19 2357.414
09/30/81 10000 752 3089 10000 0 17905 1984 19889 0 19889.5 2593.155
09/30/82 10000 1296 4385 10000 1919 16225 3758 19983 0 19983.69 2875.351
09/30/83 10000 1334 5719 10000 805 21080 5959 27039 0 27039.87 2994.449
09/30/84 10000 828 6547 10000 1797 19259 7228 26487 0 26487.9 3210.655
09/30/85 10000 797 7344 10000 2087 19796 9857 29653 0 29653.95 3496.928
09/30/86 10000 762 8106 10000 2378 24699 15528 40227 0 40227.06 3802.18
09/30/87 10000 881 8987 10000 4753 32052 27006 59058 0 59058.44 4301.416
09/30/88 10000 1128 10115 10000 4904 23928 25531 49459 0 49459.39 4825.306
09/30/89 10000 1576 11691 10000 3040 27920 33504 61424 0 61424.42 5135.821
09/30/90 10000 1537 13228 10000 5187 23718 33305 57023 0 57023.85 5612.584
09/30/91 10000 1707 14935 10000 2413 27477 41291 68768 0 68768.01 5842.652
09/30/92 10000 1411 16346 10000 1169 28597 44231 72828 0 72828.15 5945.155
09/30/93 10000 1191 17537 10000 297 33173 51655 84828 0 84828.31 5969.621
09/30/94 10000 1204 18741 10000 2209 35951 58309 94260 0 94260.35 6120.802
09/30/95 10000 1498 20239 10000 5141 39639 70448 110087 0 110087.93 6483.388
TOTAL $39,383
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/73 10000 15.35 5.75 % 651.466 14.47 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/74 10000 309 309 10309 0 6795 0 6795 225 7020.93 673.148
09/30/75 10000 381 690 10690 0 9440 0 9440 774 10214.54 704.937
09/30/76 10000 319 1009 11009 0 10834 0 10834 1231 12065.51 725.527
09/30/77 10000 264 1273 11273 218 10658 231 10889 1489 12378.07 756.606
09/30/78 10000 303 1576 11576 545 13192 1024 14216 2233 16449.34 2436.939
09/30/79 10000 421 1997 11997 585 14384 1771 16155 2910 19065.09 2590.365
09/30/80 10000 475 2472 12472 52 17292 2196 19488 4098 23586.74 2745.837
09/30/81 10000 883 3355 13355 0 16984 2157 19141 4870 24011.88 3130.623
09/30/82 10000 1581 4936 14936 2317 15390 4322 19712 6041 25753.48 3705.537
09/30/83 10000 1737 6673 16673 1038 19995 7002 26997 10083 37080.98 4106.421
09/30/84 10000 1143 7816 17816 2464 18268 8843 27111 10350 37461.63 4540.804
09/30/85 10000 1135 8951 18951 2952 18778 12523 31301 11931 43232.4 5098.16
09/30/86 10000 1118 10069 20069 3467 23428 20332 43760 16256 60016.32 5672.62
09/30/87 10000 1322 11391 21391 7091 30403 36613 67016 22835 89851.85 6544.199
09/30/88 10000 1727 13118 23118 7460 22697 35503 58200 18852 77052.43 7517.31
09/30/89 10000 2471 15589 25589 4736 26483 47211 73694 24922 98616.97 8245.566
09/30/90 10000 2483 18072 28072 8328 22498 47883 70381 23425 93806.45 9232.918
09/30/91 10000 2826 20898 30898 3970 26063 59925 85988 30200 116188.45 9871.576
09/30/92 10000 2394 23292 33292 1974 27126 64490 91616 33909 125525.81 10247.005
09/30/93 10000 2061 25353 35353 512 31466 75408 106874 41670 148544.15 10453.494
09/30/94 10000 2116 27469 37469 3868 34101 85800 119901 47368 167269.63 10861.664
09/30/95 10000 2668 30137 40137 9124 37599 105528 143127 55306 198433.37 11686.3
TOTAL $60,701
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/74 10000 11.07 5.75 % 903.342 10.43 9422
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/75 10000 510 510 10510 0 13089 0 13089 618 13707.55 946.001
09/30/76 10000 429 939 10939 0 15023 0 15023 1168 16191.5 973.632
09/30/77 10000 355 1294 11294 292 14779 310 15089 1521 16610.93 1015.338
09/30/78 10000 406 1700 11700 731 18293 1374 19667 2407 22074.4 3270.282
09/30/79 10000 564 2264 12264 785 19946 2377 22323 3261 25584.64 3476.174
09/30/80 10000 637 2901 12901 70 23978 2947 26925 4727 31652.51 3684.809
09/30/81 10000 1185 4086 14086 0 23550 2895 26445 5778 32223.03 4201.177
09/30/82 10000 2121 6207 16207 3109 21340 5800 27140 7420 34560.2 4972.69
09/30/83 10000 2331 8538 18538 1392 27726 9396 37122 12639 49761.27 5510.661
09/30/84 10000 1535 10073 20073 3306 25331 11867 37198 13074 50272.09 6093.587
09/30/85 10000 1523 11596 21596 3961 26038 16805 42843 15173 58016.26 6841.54
09/30/86 10000 1500 13096 23096 4652 32485 27285 59770 20769 80539.66 7612.444
09/30/87 10000 1774 14870 24870 9516 42157 49133 91290 29287 120577.83 8782.071
09/30/88 10000 2316 17186 27186 10012 31472 47643 79115 24286 103401.49 10087.95
09/30/89 10000 3315 20501 30501 6355 36723 63355 100078 32262 132340.31 11065.243
09/30/90 10000 3331 23832 33832 11176 31196 64257 95453 30431 125884.78 12390.234
09/30/91 10000 3791 27623 37623 5328 36139 80417 116556 39364 155920.64 13247.293
09/30/92 10000 3213 30836 40836 2649 37613 86543 124156 44295 168451.05 13751.106
09/30/93 10000 2765 33601 43601 688 43631 101195 144826 54514 199340.82 14028.207
09/30/94 10000 2840 36441 46441 5190 47285 115140 162425 62044 224469.72 14575.956
09/30/95 10000 3580 40021 50021 12244 52136 141615 193751 72539 266290.34 15682.588
TOTAL $81,456
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/75 10000 15.37 5.75 % 650.618 14.49 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/76 10000 295 295 10295 0 10820 0 10820 315 11135.81 669.622
09/30/77 10000 245 540 10540 201 10644 214 10858 566 11424.29 698.306
09/30/78 10000 279 819 10819 503 13175 945 14120 1061 15181.85 2249.163
09/30/79 10000 389 1208 11208 540 14366 1635 16001 1595 17596.05 2390.767
09/30/80 10000 439 1647 11647 48 17269 2027 19296 2473 21769.28 2534.258
09/30/81 10000 815 2462 12462 0 16962 1991 18953 3208 22161.66 2889.395
09/30/82 10000 1460 3922 13922 2138 15370 3989 19359 4410 23769.07 3420.01
09/30/83 10000 1602 5524 15524 958 19969 6462 26431 7792 34223.72 3790.002
09/30/84 10000 1055 6579 16579 2274 18244 8162 26406 8169 34575.04 4190.914
09/30/85 10000 1048 7627 17627 2724 18753 11558 30311 9590 39901.14 4705.323
09/30/86 10000 1032 8659 18659 3200 23397 18766 42163 13228 55391.79 5235.519
09/30/87 10000 1221 9880 19880 6544 30363 33791 64154 18774 82928.36 6039.939
09/30/88 10000 1593 11473 21473 6886 22667 32767 55434 15681 71115.21 6938.069
09/30/89 10000 2280 13753 23753 4371 26449 43573 70022 20996 91018.11 7610.21
09/30/90 10000 2291 16044 26044 7686 22468 44193 66661 19917 86578.26 8521.482
09/30/91 10000 2607 18651 28651 3664 26029 55307 81336 25899 107235.66 9110.931
09/30/92 10000 2210 20861 30861 1822 27090 59521 86611 29242 115853.54 9457.432
09/30/93 10000 1902 22763 32763 473 31425 69597 101022 36076 137098.22 9648.01
09/30/94 10000 1952 24715 34715 3570 34056 79188 113244 41136 154380.83 10024.729
09/30/95 10000 2463 27178 37178 8421 37550 97397 134947 48196 183143.27 10785.823
TOTAL $56,023
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/76 10000 17.64 5.75 % 566.893 16.63 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/77 10000 207 207 10207 170 9274 181 9455 216 9671.66 591.177
09/30/78 10000 236 443 10443 426 11480 800 12280 572 12852.78 1904.115
09/30/79 10000 328 771 10771 457 12517 1384 13901 995 14896.6 2023.995
09/30/80 10000 372 1143 11143 40 15047 1716 16763 1666 18429.6 2145.472
09/30/81 10000 690 1833 11833 0 14779 1685 16464 2297 18761.78 2446.125
09/30/82 10000 1235 3068 13068 1810 13392 3377 16769 3353 20122.59 2895.337
09/30/83 10000 1357 4425 14425 811 17400 5471 22871 6102 28973.37 3208.568
09/30/84 10000 894 5319 15319 1925 15897 6910 22807 6463 29270.79 3547.974
09/30/85 10000 886 6205 16205 2306 16340 9785 26125 7654 33779.8 3983.467
09/30/86 10000 873 7078 17078 2709 20386 15887 36273 10621 46894 4432.325
09/30/87 10000 1033 8111 18111 5540 26456 28607 55063 15143 70206.1 5113.336
09/30/88 10000 1349 9460 19460 5829 19750 27740 47490 12715 60205.22 5873.68
09/30/89 10000 1930 11390 21390 3700 23045 36889 59934 17120 77054.78 6442.707
09/30/90 10000 1939 13329 23329 6507 19577 37413 56990 16306 73296.05 7214.178
09/30/91 10000 2208 15537 25537 3102 22679 46823 69502 21282 90784.34 7713.198
09/30/92 10000 1871 17408 27408 1543 23604 50390 73994 24086 98080.13 8006.541
09/30/93 10000 1610 19018 29018 400 27381 58920 86301 29764 116065.62 8167.883
09/30/94 10000 1653 20671 30671 3022 29674 67040 96714 33982 130696.86 8486.809
09/30/95 10000 2085 22756 32756 7129 32718 82455 115173 39873 155046.81 9131.143
TOTAL $47,426
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/77 10000 17.36 5.75 % 576.037 16.36 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/78 10000 230 230 10230 415 11665 561 12226 297 12523.59 1855.347
09/30/79 10000 321 551 10551 445 12719 1111 13830 685 14515.07 1972.156
09/30/80 10000 362 913 10913 39 15290 1386 16676 1281 17957.58 2090.522
09/30/81 10000 672 1585 11585 0 15017 1361 16378 1903 18281.25 2383.475
09/30/82 10000 1203 2788 12788 1764 13608 3036 16644 2963 19607.21 2821.182
09/30/83 10000 1322 4110 14110 790 17680 5000 22680 5551 28231.31 3126.391
09/30/84 10000 871 4981 14981 1876 16153 6431 22584 5937 28521.12 3457.106
09/30/85 10000 864 5845 15845 2247 16603 9224 25827 7087 32914.65 3881.445
09/30/86 10000 851 6696 16696 2639 20715 15093 35808 9884 45692.96 4318.805
09/30/87 10000 1006 7702 17702 5399 26883 27372 54255 14153 68408 4982.374
09/30/88 10000 1314 9016 19016 5680 20069 26654 46723 11940 58663.26 5723.245
09/30/89 10000 1881 10897 20897 3606 23417 35506 58923 16158 75081.24 6277.696
09/30/90 10000 1890 12787 22787 6340 19893 36083 55976 15442 71418.8 7029.409
09/30/91 10000 2151 14938 24938 3023 23045 45193 68238 20221 88459.18 7515.648
09/30/92 10000 1823 16761 26761 1503 23985 48651 72636 22932 95568.11 7801.478
09/30/93 10000 1569 18330 28330 390 27822 56891 84713 28379 113092.94 7958.687
09/30/94 10000 1611 19941 29941 2945 30152 64759 94911 32438 127349.44 8269.444
09/30/95 10000 2031 21972 31972 6946 33246 79721 112967 38108 151075.71 8897.274
TOTAL $46,047
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/78 10000 7.16 5.75 %1396.648 6.75 9427
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/79 10000 242 242 10242 335 10279 376 10655 271 10926.51 1484.58
09/30/80 10000 272 514 10514 30 12357 490 12847 670 13517.93 1573.682
09/30/81 10000 506 1020 11020 0 12137 481 12618 1143 13761.58 1794.209
09/30/82 10000 907 1927 11927 1328 10998 1793 12791 1968 14759.72 2123.7
09/30/83 10000 996 2923 12923 595 14289 3123 17412 3839 21251.67 2353.452
09/30/84 10000 656 3579 13579 1412 13055 4256 17311 4158 21469.82 2602.403
09/30/85 10000 650 4229 14229 1692 13419 6342 19761 5016 24777.14 2921.832
09/30/86 10000 641 4870 14870 1987 16742 10611 27353 7043 34396.26 3251.064
09/30/87 10000 758 5628 15628 4064 21726 19631 41357 10138 51495.45 3750.579
09/30/88 10000 990 6618 16618 4276 16220 19338 35558 8601 44159.91 4308.284
09/30/89 10000 1416 8034 18034 2714 18926 25879 44805 11713 56518.87 4725.658
09/30/90 10000 1423 9457 19457 4773 16077 26442 42519 11242 53761.89 5291.525
09/30/91 10000 1619 11076 21076 2275 18625 33185 51810 14779 66589.39 5657.552
09/30/92 10000 1372 12448 22448 1132 19384 35754 55138 16802 71940.77 5872.716
09/30/93 10000 1181 13629 23629 294 22486 41818 64304 20828 85132.93 5991.058
09/30/94 10000 1213 14842 24842 2217 24369 47656 72025 23839 95864.8 6224.987
09/30/95 10000 1529 16371 26371 5229 26869 58807 85676 28049 113725.23 6697.599
TOTAL $34,353
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/79 10000 7.81 5.75 % 1280.41 7.36 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/80 10000 235 235 10235 26 11329 33 11362 296 11658.86 1357.26
09/30/81 10000 437 672 10672 0 11127 32 11159 710 11869.01 1547.459
09/30/82 10000 782 1454 11454 1145 10082 1200 11282 1447 12729.88 1831.637
09/30/83 10000 859 2313 12313 513 13100 2244 15344 2985 18329.04 2029.794
09/30/84 10000 565 2878 12878 1218 11968 3259 15227 3290 18517.19 2244.508
09/30/85 10000 561 3439 13439 1459 12302 5047 17349 4020 21369.68 2520.009
09/30/86 10000 552 3991 13991 1714 15348 8624 23972 5693 29665.94 2803.964
09/30/87 10000 654 4645 14645 3505 19918 16247 36165 8248 44413.6 3234.785
09/30/88 10000 853 5498 15498 3688 14870 16167 31037 7049 38086.87 3715.792
09/30/89 10000 1221 6719 16719 2341 17350 21724 39074 9672 48746.17 4075.767
09/30/90 10000 1227 7946 17946 4117 14739 22299 37038 9330 46368.34 4563.813
09/30/91 10000 1397 9343 19343 1962 17075 28034 45109 12322 57431.72 4879.5
09/30/92 10000 1184 10527 20527 976 17771 30226 47997 14050 62047.16 5065.074
09/30/93 10000 1019 11546 21546 253 20615 35359 55974 17451 73425.09 5167.142
09/30/94 10000 1046 12592 22592 1912 22341 40335 62676 20005 82681.04 5368.899
09/30/95 10000 1319 13911 23911 4510 24633 49873 74506 23579 98085.22 5776.515
TOTAL $29,339
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/80 10000 9.11 5.75 %1097.695 8.59 9429
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/81 10000 352 352 10352 0 9261 0 9261 338 9599.15 1251.519
09/30/82 10000 633 985 10985 926 8392 947 9339 956 10295.38 1481.35
09/30/83 10000 694 1679 11679 415 10903 1784 12687 2136 14823.74 1641.61
09/30/84 10000 457 2136 12136 985 9962 2608 12570 2405 14975.9 1815.261
09/30/85 10000 453 2589 12589 1180 10239 4053 14292 2990 17282.87 2038.074
09/30/86 10000 447 3036 13036 1386 12775 6939 19714 4278 23992.51 2267.723
09/30/87 10000 529 3565 13565 2835 16578 13093 29671 6248 35919.73 2616.149
09/30/88 10000 690 4255 14255 2982 12377 13040 25417 5385 30802.95 3005.166
09/30/89 10000 988 5243 15243 1893 14441 17529 31970 7453 39423.72 3296.298
09/30/90 10000 992 6235 16235 3329 12268 18000 30268 7232 37500.64 3691.008
09/30/91 10000 1129 7364 17364 1587 14212 22633 36845 9603 46448.21 3946.322
09/30/92 10000 957 8321 18321 789 14791 24404 39195 10985 50180.97 4096.406
09/30/93 10000 824 9145 19145 205 17158 28548 45706 13676 59382.94 4178.954
09/30/94 10000 846 9991 19991 1546 18595 32569 51164 15704 66868.74 4342.126
09/30/95 10000 1067 11058 21058 3647 20503 40278 60781 18545 79326.96 4671.788
TOTAL $23,705
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/81 10000 8.14 5.75 %1228.501 7.67 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/82 10000 620 620 10620 909 8538 929 9467 639 10106.04 1454.106
09/30/83 10000 681 1301 11301 407 11093 1751 12844 1707 14551.1 1611.418
09/30/84 10000 449 1750 11750 967 10135 2560 12695 2005 14700.49 1781.877
09/30/85 10000 445 2195 12195 1158 10418 3978 14396 2569 16965.02 2000.592
09/30/86 10000 439 2634 12634 1360 12998 6811 19809 3742 23551.27 2226.018
09/30/87 10000 518 3152 13152 2783 16867 12852 29719 5540 35259.16 2568.038
09/30/88 10000 677 3829 13829 2928 12592 12801 25393 4843 30236.5 2949.902
09/30/89 10000 970 4799 14799 1858 14693 17206 31899 6799 38698.73 3235.68
09/30/90 10000 974 5773 15773 3268 12482 17669 30151 6660 36811.02 3623.132
09/30/91 10000 1109 6882 16882 1558 14459 22217 36676 8918 45594.06 3873.752
09/30/92 10000 940 7822 17822 775 15049 23955 39004 10254 49258.18 4021.076
09/30/93 10000 809 8631 18631 201 17457 28023 45480 12810 58290.91 4102.105
09/30/94 10000 830 9461 19461 1518 18919 31970 50889 14750 65639.05 4262.276
09/30/95 10000 1047 10508 20508 3580 20860 39537 60397 17471 77868.16 4585.875
TOTAL $23,270
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/82 10000 7.37 5.75 %1356.852 6.95 9430
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/83 10000 636 636 10636 380 12252 507 12759 818 13577.9 1503.643
09/30/84 10000 419 1055 11055 902 11194 1359 12553 1164 13717.28 1662.701
09/30/85 10000 415 1470 11470 1081 11506 2654 14160 1670 15830.36 1866.788
09/30/86 10000 409 1879 11879 1269 14355 5036 19391 2585 21976.11 2077.137
09/30/87 10000 484 2363 12363 2596 18630 10280 28910 3990 32900.94 2396.281
09/30/88 10000 632 2995 12995 2732 13908 10666 24574 3640 28214.19 2752.604
09/30/89 10000 905 3900 13900 1734 16228 14564 30792 5318 36110.45 3019.268
09/30/90 10000 909 4809 14809 3049 13786 15219 29005 5343 34348.98 3380.805
09/30/91 10000 1034 5843 15843 1454 15970 19262 35232 7312 42544.57 3614.662
09/30/92 10000 876 6719 16719 723 16621 20825 37446 8517 45963.62 3752.132
09/30/93 10000 754 7473 17473 188 19281 24376 43657 10735 54392.21 3827.742
09/30/94 10000 775 8248 18248 1416 20896 27910 48806 12442 61248.91 3977.202
09/30/95 10000 977 9225 19225 3341 23039 34774 57813 14847 72660.1 4279.158
TOTAL $20,865
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/83 10000 9.58 5.75 %1043.841 9.03 9426
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/84 10000 291 291 10291 626 8612 622 9234 288 9522.64 1154.259
09/30/85 10000 288 579 10579 750 8852 1512 10364 625 10989.55 1295.937
09/30/86 10000 285 864 10864 881 11044 3083 14127 1128 15255.98 1441.964
09/30/87 10000 336 1200 11200 1802 14332 6601 20933 1907 22840.1 1663.518
09/30/88 10000 439 1639 11639 1896 10699 7004 17703 1883 19586.53 1910.881
09/30/89 10000 628 2267 12267 1204 12484 9644 22128 2940 25068.18 2096.002
09/30/90 10000 631 2898 12898 2117 10605 10169 20774 3071 23845.37 2346.985
09/30/91 10000 718 3616 13616 1009 12286 12913 25199 4335 29534.81 2509.33
09/30/92 10000 608 4224 14224 502 12787 13979 26766 5142 31908.36 2604.764
09/30/93 10000 524 4748 14748 130 14833 16368 31201 6558 37759.57 2657.253
09/30/94 10000 537 5285 15285 983 16075 18775 34850 7669 42519.52 2761.008
09/30/95 10000 678 5963 15963 2319 17724 23478 41202 9239 50441.28 2970.629
TOTAL $14,219
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/84 10000 8.75 5.75 %1142.857 8.25 9429
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/85 10000 285 285 10285 743 9691 864 10555 325 10880.99 1283.136
09/30/86 10000 281 566 10566 873 12091 2263 14354 751 15105.27 1427.719
09/30/87 10000 333 899 10899 1785 15691 5511 21202 1412 22614.45 1647.083
09/30/88 10000 434 1333 11333 1878 11714 6170 17884 1509 19393.01 1892.001
09/30/89 10000 622 1955 11955 1192 13669 8656 22325 2495 24820.5 2075.293
09/30/90 10000 624 2579 12579 2096 11611 9310 20921 2688 23609.78 2323.797
09/30/91 10000 711 3290 13290 999 13451 11907 25358 3885 29243.01 2484.538
09/30/92 10000 603 3893 13893 497 14000 12927 26927 4666 31593.11 2579.029
09/30/93 10000 518 4411 14411 129 16240 15146 31386 6000 37386.5 2630.999
09/30/94 10000 532 4943 14943 973 17600 17440 35040 7059 42099.44 2733.73
09/30/95 10000 671 5614 15614 2296 19406 21979 41385 8557 49942.92 2941.279
TOTAL $13,461
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/85 10000 9 5.75 %1111.111 8.48 9422
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 10000 243 243 10243 756 11756 1026 12782 298 13080.18 1236.312
09/30/87 10000 288 531 10531 1545 15256 3560 18816 766 19582.65 1426.267
09/30/88 10000 376 907 10907 1626 11389 4439 15828 965 16793.09 1638.35
09/30/89 10000 538 1445 11445 1032 13289 6440 19729 1763 21492.95 1797.069
09/30/90 10000 541 1986 11986 1815 11289 7166 18455 1989 20444.52 2012.256
09/30/91 10000 615 2601 12601 865 13078 9272 22350 2972 25322.53 2151.447
09/30/92 10000 522 3123 13123 430 13611 10113 23724 3633 27357.56 2233.27
09/30/93 10000 449 3572 13572 112 15789 11861 27650 4724 32374.26 2278.273
09/30/94 10000 461 4033 14033 843 17111 13743 30854 5601 36455.36 2367.231
09/30/95 10000 582 4615 14615 1988 18867 17534 36401 6846 43247.3 2546.955
TOTAL $11,012
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/86 10000 11.23 5.75 % 890.472 10.58 9421
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/87 10000 208 208 10208 1113 12226 1605 13831 273 14104.69 1027.29
09/30/88 10000 271 479 10479 1171 9127 2481 11608 487 12095.48 1180.047
09/30/89 10000 388 867 10867 743 10650 3803 14453 1027 15480.63 1294.367
09/30/90 10000 390 1257 11257 1307 9047 4451 13498 1227 14725.49 1449.359
09/30/91 10000 444 1701 11701 623 10481 5856 16337 1901 18238.96 1549.614
09/30/92 10000 376 2077 12077 310 10908 6428 17336 2368 19704.7 1608.547
09/30/93 10000 323 2400 12400 80 12654 7551 20205 3113 23318.06 1640.961
09/30/94 10000 332 2732 12732 607 13713 8823 22536 3721 26257.54 1705.035
09/30/95 10000 419 3151 13151 1432 15120 11443 26563 4586 31149.56 1834.485
TOTAL $7,386
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/87 10000 14.57 5.75 % 686.342 13.73 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/88 10000 181 181 10181 782 7035 857 7892 189 8081.1 788.4
09/30/89 10000 259 440 10440 497 8209 1607 9816 526 10342.74 864.778
09/30/90 10000 260 700 10700 873 6973 2180 9153 685 9838.23 968.33
09/30/91 10000 297 997 10997 416 8078 2993 11071 1114 12185.61 1035.311
09/30/92 10000 251 1248 11248 207 8408 3338 11746 1418 13164.89 1074.685
09/30/93 10000 216 1464 11464 54 9753 3935 13688 1891 15579.01 1096.341
09/30/94 10000 222 1686 11686 406 10570 4692 15262 2280 17542.89 1139.149
09/30/95 10000 280 1966 11966 957 11654 6319 17973 2838 20811.28 1225.635
TOTAL $4,192
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/88 10000 10.88 5.75 % 919.118 10.25 9421
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/89 10000 302 302 10302 579 10993 707 11700 357 12057.59 1008.16
09/30/90 10000 304 606 10606 1018 9338 1552 10890 579 11469.43 1128.881
09/30/91 10000 346 952 10952 485 10818 2342 13160 1046 14206.03 1206.969
09/30/92 10000 293 1245 11245 241 11259 2697 13956 1391 15347.68 1252.872
09/30/93 10000 252 1497 11497 63 13061 3202 16263 1899 18162.07 1278.119
09/30/94 10000 259 1756 11756 473 14154 3969 18123 2328 20451.59 1328.025
09/30/95 10000 326 2082 12082 1116 15607 5712 21319 2942 24261.87 1428.85
TOTAL $3,975
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/89 10000 12.69 5.75 % 788.022 11.96 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/90 10000 237 237 10237 796 8006 743 8749 216 8965 882.382
09/30/91 10000 270 507 10507 379 9275 1287 10562 542 11104.04 943.419
09/30/92 10000 229 736 10736 189 9653 1542 11195 801 11996.41 979.299
09/30/93 10000 197 933 10933 49 11198 1846 13044 1152 14196.26 999.033
09/30/94 10000 202 1135 11135 370 12136 2390 14526 1459 15985.83 1038.041
09/30/95 10000 255 1390 11390 872 13381 3679 17060 1904 18964.13 1116.851
TOTAL $2,655
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/90 10000 10.78 5.75 % 927.644 10.16 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 10000 284 284 10284 399 10918 448 11366 307 11673.63 991.812
09/30/92 10000 241 525 10525 198 11364 679 12043 568 12611.77 1029.532
09/30/93 10000 208 733 10733 51 13182 848 14030 894 14924.45 1050.278
09/30/94 10000 213 946 10946 389 14286 1328 15614 1191 16805.84 1091.288
09/30/95 10000 268 1214 11214 917 15751 2562 18313 1623 19936.91 1174.141
TOTAL $1,954
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/91 10000 12.49 5.75 % 800.641 11.77 9424
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/92 10000 194 194 10194 160 9808 172 9980 200 10180.85 831.09
09/30/93 10000 167 361 10361 42 11377 248 11625 422 12047.76 847.837
09/30/94 10000 171 532 10532 314 12330 600 12930 636 13566.51 880.942
09/30/95 10000 216 748 10748 740 13595 1547 15142 952 16094.05 947.824
TOTAL $1,256
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/92 10000 13 5.75 % 769.231 12.25 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/93 10000 154 154 10154 38 10931 45 10976 175 11151.04 784.732
09/30/94 10000 159 313 10313 290 11846 355 12201 355 12556.74 815.373
09/30/95 10000 200 513 10513 685 13062 1211 14273 623 14896.16 877.277
TOTAL $1,013
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/93 10000 15.08 5.75 % 663.13 14.21 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/94 10000 134 134 10134 245 10212 259 10471 139 10610.97 689.024
09/30/95 10000 169 303 10303 579 11260 978 12238 349 12587.89 741.336
TOTAL $824
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/94 10000 16.34 5.75 % 611.995 15.4 9425
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/95 10000 150 150 10150 514 10392 616 11008 172 11180.65 658.46
TOTAL $514
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/95 10000 18.02 5.75 % 554.939 16.98 9423
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/95 10000 0 0 10000 0 9423 0 9423 0 9422.86 554.939
TOTAL $0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/85 10000 9 5.75 %1111.111 8.48 9422
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 10000 243 243 10243 756 11756 1026 12782 298 13080.18 1236.312
09/30/87 10000 288 531 10531 1545 15256 3560 18816 766 19582.65 1426.267
09/30/88 10000 376 907 10907 1626 11389 4439 15828 965 16793.09 1638.35
09/30/89 10000 538 1445 11445 1032 13289 6440 19729 1763 21492.95 1797.069
09/30/90 10000 541 1986 11986 1815 11289 7166 18455 1989 20444.52 2012.256
09/30/91 10000 615 2601 12601 865 13078 9272 22350 2972 25322.53 2151.447
09/30/92 10000 522 3123 13123 430 13611 10113 23724 3633 27357.56 2233.27
09/30/93 10000 449 3572 13572 112 15789 11861 27650 4724 32374.26 2278.273
09/30/94 10000 461 4033 14033 843 17111 13743 30854 5601 36455.36 2367.231
09/30/95 10000 582 4615 14615 1988 18867 17534 36401 6846 43247.3 2546.955
$11,012
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DOW JONES INDUSTRIAL AVERAGE
SALES NET ASSEINITIAL
INITIAL OFFERINCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICEINCLUDED PURCHASED PER SHAVALUE
10/01/85 10000 1328.6 0 % 7.52713210000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 10000 513 513 10513 0 13304 0 13304 527 13831.31 7.825
09/30/87 10000 560 1073 11073 0 19541 0 19541 1421 20962.36 8.074
09/30/88 10000 627 1700 11700 0 15903 0 15903 1822 17725.2 8.389
09/30/89 10000 855 2555 12555 0 20268 0 20268 3278 23546.02 8.744
09/30/90 10000 899 3454 13454 0 18459 0 18459 3799 22258.71 9.076
09/30/91 10000 898 4352 14352 0 22706 0 22706 5618 28324.45 9.389
09/30/92 10000 931 5283 15283 0 24624 0 24624 7048 31672.94 9.681
09/30/93 10000 985 6268 16268 0 26758 0 26758 8672 35430.33 9.966
09/30/94 10000 1062 7330 17330 0 28926 0 28926 10447 39373.48 10.245
09/30/95 10000 1178 8508 18508 0 36045 0 36045 14364 50409.86 10.526
$0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STANDARD & POOR'S 500 COMPOSITE INDEX
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/85 10000 182.08 0 % 54.921 182.08 10000
DIVIDENDS AND CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 10000 458 458 10458 0 12704 0 12704 459 13163.26 56.905
09/30/87 10000 499 957 10957 0 17675 0 17675 1198 18873.72 58.645
09/30/88 10000 563 1520 11520 0 14934 0 14934 1611 16545.72 60.85
09/30/89 10000 659 2179 12179 0 19176 0 19176 2816 21992.26 62.988
09/30/90 10000 756 2935 12935 0 16809 0 16809 3148 19957.21 65.209
09/30/91 10000 811 3746 13746 0 21302 0 21302 4847 26149.52 67.42
09/30/92 10000 846 4592 14592 0 22946 0 22946 6096 29042.11 69.512
09/30/93 10000 880 5472 15472 0 25205 0 25205 7598 32803.4 71.478
09/30/94 10000 934 6406 16406 0 25411 0 25411 8590 34001.24 73.486
09/30/95 10000 1008 7414 17414 0 32096 0 32096 12011 44107.76 75.474
$0
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSEINITIAL
INITIAL OFFERINSHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDED PURCHASEDPERSHARE VALUE
10/01/85 10000 9 5.75 %1111.111 8.48 9422
DIVIDENDS TAKEN IN CASH -- CAPITAL GAINS REINVESTED
============COST OF SHARES==========================VALUE OF SHARES===============
CURRENT CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAINFROM CAP GAINSUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'N INV'M'REINV'DTOTAL REINV'D VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 10000 242 242 10000 756 11756 1025 12781 0 12781.72 1208.102
09/30/87 10000 280 522 10000 1510 15256 3509 18765 0 18765.19 1366.729
09/30/88 10000 358 880 10000 1558 11389 4326 15715 0 15715.19 1533.189
09/30/89 10000 500 1380 10000 966 13289 6227 19516 0 19516.95 1631.852
09/30/90 10000 488 1868 10000 1648 11289 6829 18118 0 18118.71 1783.338
09/30/91 10000 543 2411 10000 767 13078 8772 21850 0 21850.3 1856.44
09/30/92 10000 448 2859 10000 371 13611 9529 23140 0 23140.36 1889.009
09/30/93 10000 379 3238 10000 94 15789 11164 26953 0 26953.29 1896.783
09/30/94 10000 383 3621 10000 702 17111 12839 29950 0 29950.21 1944.819
09/30/95 10000 476 4097 10000 1634 18867 16112 34979 0 34979.26 2060.027
TOTAL $10,006
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSINITIAL
INITIAL OFFERINCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDEDPURCHAPER SHARE VALUE
10/01/90 2000 10.78 5.75185.5 10.16 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 ILLUSTR
============COST OF SHARES==========================VALUE OF SHARES===============
CURREN CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAIN FROMCAP GAISUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'INV'M' REINV'TOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/91 2000 57 57 2057 80 2184 90 2274 60 2334.73 198.363
09/30/92 4000 87 144 4144 72 4234 170 4404 154 4558.53 372.125
09/30/93 6000 106 250 6250 26 7098 228 7326 298 7624.67 536.571
09/30/94 8000 135 385 8385 248 9735 508 10243 465 10708.04 695.327
09/30/95 10000 201 586 10586 687 12812 1383 14195 744 14939.17 879.81
TOTAL $1,113
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NEW PERSPECTIVE FUND, INC.
SALES NET ASSINITIAL
INITIAL OFFERINCHARGE SHARES VALUE NET ASSET
DATE INVESTMENT PRICE INCLUDEDPURCHAPER SHARE VALUE
10/01/85 2000 9 5.75222.2 8.48 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 ILLUSTR
============COST OF SHARES==========================VALUE OF SHARES===============
CURREN CUM. TOTAL CURRENT FROM FROM
CUM INCOMEINCOMEINVM'T CAP GAIN FROMCAP GAISUB- DIVS TOTAL SHARES
DATE INV'M'T DIVS DIVS COST DISTRIB'INV'M' REINV'TOTAL REINV'VALUE HELD
<S> <C> <C> <C> <C> <C> <C> <C> <C>
09/30/86 2000 49 49 2049 151 2351 205 2556 60 2616.03 247.262
09/30/87 4000 99 148 4148 532 5496 1033 6529 208 6737.48 490.712
09/30/88 6000 165 313 6313 716 5510 1555 7065 328 7393.94 721.36
09/30/89 8000 297 610 8610 570 8628 2511 11139 735 11874.8 992.876
09/30/90 10000 347 957 10957 1162 8931 3219 12150 938 13088.54 1288.242
09/30/91 12000 451 1408 13408 634 12530 4440 16970 1576 18546.15 1575.714
09/30/92 14000 421 1829 15829 347 15002 4994 19996 2076 22072.76 1801.858
09/30/93 16000 394 2223 18223 98 19589 5907 25496 2854 28350.57 1995.114
09/30/94 18000 431 2654 20654 787 23272 7232 30504 3542 34046.63 2210.82
09/30/95 20000 573 3227 23227 1960 27738 10320 38058 4567 42625.93 2510.361
TOTAL $6,957
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-START> OCT-1-1994
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 6,706,366
<INVESTMENTS-AT-VALUE> 8,820,164
<RECEIVABLES> 47,943
<ASSETS-OTHER> 1,408
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,869,515
<PAYABLE-FOR-SECURITIES> 43,383
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 9,132
<TOTAL-LIABILITIES> 52,515
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 5,809,281
<SHARES-COMMON-STOCK> 519,110,229
<SHARES-COMMON-PRIOR> 407,738,690
<ACCUMULATED-NII-CURRENT> 96,071
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 272,771
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,113,798
<NET-ASSETS> 8,817,000
<DIVIDEND-INCOME> 128,996
<INTEREST-INCOME> 87,691
<OTHER-INCOME> 0
<EXPENSES-NET> 60,787
<NET-INVESTMENT-INCOME> 155,900
<REALIZED-GAINS-CURRENT> 308,729
<APPREC-INCREASE-CURRENT> 843,525
<NET-CHANGE-FROM-OPS> 1,308,154
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 105,752
<DISTRIBUTIONS-OF-GAINS> 355,971
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 136,794,997
<NUMBER-OF-SHARES-REDEEMED> 55,659,438
<SHARES-REINVESTED> 30,235,980
<NET-CHANGE-IN-ASSETS> 2,538,500
<ACCUMULATED-NII-PRIOR> 45,923
<ACCUMULATED-GAINS-PRIOR> 312,145
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 32,015
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 60,787
<AVERAGE-NET-ASSETS> 7,363,441
<PER-SHARE-NAV-BEGIN> 15.40
<PER-SHARE-NII> .31
<PER-SHARE-GAIN-APPREC> 2.35
<PER-SHARE-DIVIDEND> .24
<PER-SHARE-DISTRIBUTIONS> .84
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 16.98
<EXPENSE-RATIO> .008
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
