NEW PERSPECTIVE FUND
ANNUAL REPORT
for the year ended September 30
1995
[The American Funds Group(R)]
New Perspective Fund(R) seeks long-term growth of capital through investments
all over the world, including the United States.
About our cover: The world, as depicted by a 17th-century Dutch cartographer.
Library of Congress Collection.
RESULTS AT A GLANCE
<TABLE>
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FISCAL 1995
for the year ended
September 30, 1995 Change in value with Change in value
income reinvested excluding income
New Perspective Fund +18.6% +16.4%
Morgan Stanley Capital
International Indexes:
World Index +15.0% +12.5%
U.S. Index +30.8% +27.4%
Lifetime of the Fund
from March 13, 1973 Average annual compound
through September 30, 1995 Change in value with Change in value return with
income reinvested excluding income income reinvested
New Perspective Fund +2,119.3% +1,059.8% +14.7%
Morgan Stanley Capital
International Indexes:
World Index +1,051.0% +425.3% +11.4%
U.S. Index +1,072.3% +365.1% +11.5%
</TABLE>
FUND RESULTS IN THIS REPORT WERE COMPUTED WITHOUT A SALES CHARGE UNLESS
OTHERWISE INDICATED. THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE
PRICE AND RETURN WILL VARY, SO YOU MAY LOSE MONEY BY INVESTING IN THE FUND.
THE SHORTER THE TIME PERIOD OF YOUR INVESTMENT, THE GREATER THE POSSIBILITY OF
LOSS. FUND SHARES ARE NOT DEPOSITS OR OBLIGAIONS 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.
FELLOW SHAREHOLDERS:
New Perspective Fund enjoyed a rewarding year in fiscal 1995. The value of your
holdings increased 18.6% during the year ended September 30 if, like most
shareholders, you reinvested the dividend payments totaling 24 cents a share --
one of 16 cents a share in December 1994 and another of 8 cents a share in June
1995 -- as well as the capital gain distribution of 84 cents a share paid last
December.
By comparison, the unmanaged Morgan Stanley Capital International (MSCI) World
Index, which measures 22 major markets including the U.S., rose 15.0% with
dividends reinvested. The average global stock fund gained 9.4% on a reinvested
basis during the same period, according to Lipper Analytical Services, a firm
which tracks mutual fund results.
HOLDINGS IN COUNTRIES WITH STRONG RESULTS
Although New Perspective Fund invests company by company -- not country by
country -- this year's results were boosted by concentrations in stock markets
that did well. The fund's greatest area of concentration, the United States,
had the third-best return of the world's major equity markets. It rose 27.4% as
measured by the MSCI U.S. Index.* The fund's next three areas of concentration
- -- the United Kingdom, Sweden and the Netherlands -- had gains of 15.1%, 42.9%
and 21.9%, respectively.
On balance, the fund benefited from strength in European currencies against the
U.S. dollar. Elsewhere in the world, fluctuations in currency values had a
relatively minor effect on returns. (For more on the effects of currency
fluctuations on the fund's portfolio, please see the feature beginning on page
8.)
The fund had a relatively small position in Japan, with only 3.2% of its assets
invested there. (Since Japan represents nearly one-quarter of the world's stock
market capitalization, a portfolio structured to reflect the size of each
country's stock market would have about one-quarter of its assets in Japanese
securities.) This was advantageous because the Japanese market declined 6.1% as
government officials, businessmen and financial institutions continued to
wrestle with a stubborn recession and a burgeoning banking crisis.
* Investment results for individual countries are in U.S. dollars and exclude
dividends.
As you may recall, the Japanese market rose to unprecedented heights in the
late 1980s, but over the past six years in local currency it has declined more
than 45% -- to a level last seen in 1986. Throughout this long decline, New
Perspective has limited its exposure to Japanese investments because of our
ongoing concern about stock valuations, both on an absolute basis and relative
to opportunities elsewhere in the world. More recently, as the dollar has shown
signs of strengthening against the yen, we have added selectively to our
Japanese holdings.
NEW PERSPECTIVE VERSUS THE MAJOR WORLD MARKET INDEXES
(excluding dividends)
<TABLE>
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Latest Fiscal Year Lifetime of the Fund
World's Major Stock Markets/1/ (10/1/94-9/30/95) (3/13/73-9/30/95)
(listed in order of size of market Local Adjusted to Local Adjusted to
capitalization as of 9/30/95) currency U.S. $/2/ currency U.S. $/2/
United States
NYSE Composite Index 22.6% 410.9%
MSCI U.S. Index 27.4% 365.1%
Japan -6.4% -6.1% 299.9% 950.1%
United Kingdom 14.7% 15.1% 814.3% 485.9%
Germany 7.0% 16.7% 241.4% 572.6%
France -2.2% 5.4% 409.7% 364.8%
Switzerland 17.3% 31.4% 245.4% 874.6%
Canada 6.5% 6.0% 238.5% 151.1%
Netherlands 11.7% 21.9% 405.7% 801.4%
Hong Kong -2.2% -2.3% 477.4% 280.6%
Australia 5.6% 7.7% 495.5% 217.8%
Italy -5.9% -8.9% 642.2% 160.2%
Sweden 32.3% 42.9% 2,165.1% 1,341.7%
Spain 4.8% 9.4% 67.0% -22.4%
Singapore -8.3% -4.3% 147.5% 335.4%
Belgium 7.1% 17.0% 237.6% 341.5%
MSCI World Index/3/ 12.5% 425.3%
New Perspective Fund/4/ 16.4% 1,059.8%
</TABLE>
/1/ United States markets represented by both the New York Stock Exchange
Composite Index and the U.S. component of MSCI World Index; all other markets
computed by Capital International Perspective S.A. and included in MSCI World
Index. All indexes are unmanaged.
/2/ Figures adjusted to reflect foreign exchange fluctuations relative to the
U.S. dollar.
/3/ Includes the major stock markets throughout the world, weighted by size
and adjusted to reflect foreign exchange fluctuation relative to the U.S.
dollar. U.S. companies currently represent approximately 40% of the total
index.
/4/ Change in net asset value per share after deducting undistributed net
income at the beginning and end of periods.
[PULL QUOTE]
The fund had a relatively small position in Japan, with only 3.2% of its assets
invested there.
[END PULL QUOTE]
WHERE NPF'S ASSETS WERE INVESTED
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<CAPTION>
<S> <C> <C>
9/30/95 9/30/94
Asia/Pacific Rim 11.0% 12.6%
Australia 4.3 4.3
Hong Kong 1.7 2.4
Japan 3.2 3.6
New Zealand 1.4 1.7
Singapore .4 .6
Europe 32.4% 34.2%
Belgium .4 .5
Denmark .6 .1
Finland 1.9 1.0
France 4.3 4.8
Germany 3.6 6.6
Italy .5 .7
Netherlands 4.8 5.2
Norway .3 --
Spain 1.2 .7
Sweden 5.7 4.3
Switzerland 2.5 3.1
United Kingdom 6.6 7.2
North America 36.6% 30.7%
Canada 4.0 3.0
Mexico 1.1 2.8
United States 31.5 24.9
Other stocks 3.3% 2.5%
Cash and equivalents 16.7% 20.0%
100.0% 100.0%
</TABLE>
TECHNOLOGY STOCKS GAIN
Industry concentrations in New Perspective, like country concentrations, are a
result of judgments on the outlook for individual companies. Nonetheless, some
industries are always stronger than others and this year the fund's large
technology holdings were an area of particular strength. In fact, five of our
10 holdings which appreciated the most in price over the past year were
computer- related firms: Micron Technology, Cisco Systems, Intel, Seagate
Technology and Adobe Systems. The earnings of each of these companies benefited
from strong worldwide consumer and business demand for technological advances
that streamline operations, enhance access to information and increase
productivity. All five, incidentally, are U.S.-based.
New Perspective Fund's 10 largest stock holdings at fiscal year-end and their
investment results over the 12-month period are shown below. Again this year,
the fund benefited from strong showings by its largest holdings: All
appreciated and most recorded significant gains.
The largest position is actually two companies, one Swedish and the other
Swiss, which together own as their sole operating entity ABB Asea Brown Boveri
Ltd, a power-generating and engineering business. As such, it seems appropriate
to combine them. The second largest is Astra, the Swedish pharmaceutical
manufacturer. The biggest gainer among the top 10 this year, as it was the year
before, was Nokia, a diversified Finnish company that has become one of the
world's foremost makers of cellular telephones.
A LONG-TERM APPROACH
Our 10 largest holdings illustrate another aspect of NPF's approach to global
investing, namely, a long-term focus. The fund has held seven of these stocks
for more than five years and three of them for more than 10 years. You will
find brief descriptions of each of the portfolio holdings, large and small,
beginning on page 15.
NEW PERSPECTIVE'S 10 LARGEST STOCK HOLDINGS AT FISCAL
YEAR-END
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Listed in order of percent of NPF's net assets % price change
for 12 months
Company Country ended 9/30/95
1. ASEA* Sweden +41.0%
BBC Brown Boveri* Switzerland +34.5
2. Astra Sweden +49.4
3. Mannesmann Germany +30.7
4. News Corp. Australia +22.0
5. Philip Morris U.S. +36.6
6. Nokia Finland +140.6
7. Caterpillar U.S. +5.1
8. Turner Broadcasting System U.S. +37.5
9. Telefonaktiebolaget LM Ericsson Sweden +84.7
10. Telecom Corp. of New Zealand New Zealand +22.9
</TABLE>
* These two companies each own 50% of the same corporation, so it seems
appropriate to combine them as a single position.
[PULL QUOTE]
Again this year, New Perspective benefited from strong showings by its largest
holdings.
[END PULL QUOTE]
All in all, of the 197 stocks owned throughout the fiscal year, 150 rose in
price, 46 declined and one was unchanged. The broad strength throughout the
portfolio was helped by careful stock selection on the part of our investment
adviser, Capital Research and Management Company. That is reflected by the fact
that the fund managed to outpace the MSCI World Index and most other global
funds in fiscal 1995 while maintaining a sizable cash reserve. This reserve,
which amounted to about 17% of net assets on September 30, should cushion any
market decline and enable the fund to take advantage of new buying
opportunities as they emerge.
Stock selection has also played an important role over longer, more meaningful
time periods. As you can see from the table on page 2, over the fund's lifetime
New Perspective has outpaced all of the world's major stock markets except for
Sweden. And it has far outpaced the U.S. market and the world's major markets
as measured by the MSCI World Index, both with dividends reinvested and with
dividends in cash.
Shareholders should keep in mind that the fund's gains by no means came in a
straight-line fashion. There have been numerous times when the value of an
investment in the fund declined, sometimes significantly. While periodic bouts
of volatility are to be expected, we feel that the long-term case for global
investing remains strong.
We will continue our efforts to make your experience in New Perspective a
rewarding one.
Cordially,
Walter P. Stern Gina H. Despres
Chairman of the Board President
November 10, 1995
Here's how a $10,000 investment in the fund grew between March 13, 1973 -- when
the fund was introduced -- and September 30, 1995, the end of the fund's latest
fiscal year. Unlike figures presented earlier in the report, the fund's results
in this chart reflect payment of the maximum sales charge of 5.75%, so the net
amount invested was $9,425 versus $10,000 in the indexes shown. The indexes are
unmanaged and do not have sales charges, commissions or expenses. As you can
see, the investment in New Perspective would have grown to $209,200 versus
$115,102 in the Morgan Stanley Capital International (MSCI) World Index, which
reflects results in 22 major markets, and $117,232 in the MSCI U.S. Index.
New Perspective's year-by-year results appear in the table under the chart. The
table shows that NPF recorded positive results in 19 of these 23 periods, and
the boxed figure at the bottom right of the table shows that over the entire
22-1/2 years the investment grew at an average compound rate of 14.4% a year.
You can use this table to estimate how much the value of your own holdings has
grown. Let's say, for example, that you have been reinvesting all your
dividends and capital gain distributions and want to know how your investment
has done since September 30, 1985. At that time, according to the table, the
value of the investment illustrated here was $45,578. Since then, it has more
than quadrupled to $209,200. Thus, in that same period, the value of your
investment -- regardless of size -- also has more than quadrupled.
HOW A $10,000 INVESTMENT HAS GROWN
$209,200 /1,2/
New Perspective Fund with dividends reinvested
$117,232
MSCI U.S. Index with dividends reinvested
$115,102
MSCI World Index with dividends reinvested
$10,000 /1/
original investment
Average annual compound return for 221/2 years 14.4% /1/
Average Annual Compound Returns*
(for periods ended September 30, 1995)
<TABLE>
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10 Years +15.77%
5 Years +14.80%
1 Year +11.81%
</TABLE>
* Assumes reinvestment of all distributions and payment of 5.75% sales charge
at the beginning of the stated periods.
/#/ For the period March 13, 1973 (commencement of operations) through
September 30, 1973.
/1/ Results reflect payment of the maximum sales charge of 5.75% on the
$10,000 investment. Thus, the net amount invested was $9,425. As outlined in
the prospectus, the sales charge is reduced for larger investments. There is
no sales charge on dividends or capital gain distributions that are reinvested
in additional shares.
No adjustment has been made for income or capital gain taxes.
/2/ Includes reinvested dividends of $31,767 and reinvested capital gain
distributions of $63,994.
Past results are not predictive of future results.
NPF'S RETURN VERSUS OTHER GLOBAL EQUITY FUNDS
(with distributions reinvested for periods ended 9/30/95)
New Perspective Fund has done significantly better than most other similar
mutual funds. Over its lifetime, the fund ranked second among the five global
equity funds in existence over this 22-1/2-year span, according to Lipper
Analytical Services. Here is how the fund ranks over other time periods:
- - 10 years: 2nd out of 10 global equity funds (top 20%)
- - 5 years: 5th out of 30 global equity funds (top 17%)
- - 1 year: 11th out of 115 global equity funds (top 10%)
Lipper rankings are based on total return and do not reflect the effect of
sales charges.
THE MULTIFACETED EFFECTS OF CURRENCY FLUCTUATIONS
Shareholders often ask how foreign currencies and changes in exchange rates
affect an investment in New Perspective Fund. Understanding currency
fluctuations can enhance your understanding of the fund -- and the long-term
nature of your investment.
The effects of currency fluctuations can be quite complex. When it comes to
describing those effects on global companies, there are few rules -- and
exceptions to each one. One thing that can be said with some certainty,
however, is that when a foreign currency strengthens against the U.S. dollar,
stocks denominated in that currency become worth more to a U.S. investor. If
you own a French stock and the franc gains 10% relative to the dollar, as a
U.S. investor you have a 10% gain if that stock's price is unchanged. Of
course, the opposite is true as well. When a foreign currency weakens against
the U.S. dollar, stocks denominated in that currency lose value. Markets and
currencies can go in the same direction or in opposite directions, with varying
consequences for global investors.
At any given time, certain currencies may be strengthening against the dollar
while others weaken. During NPF's latest fiscal year many of the world's major
currencies appreciated against the dollar, in effect enhancing the returns for
shareholders in the fund.
The direct and immediate impact of currency translation, however, is only the
beginning of the story. There is also the impact that currency fluctuations can
have on companies themselves -- and their prospects, both short- and long-term.
[PULL QUOTE]
Currency: The word by its very nature denotes the present. But when it
comes to evaluating changes in currency exchange rates, it is important for
shareholders in New Perspective Fund to maintain a long-term perspective.
[END PULL QUOTE]
Many U.S. corporations in New Perspective's portfolio have, in recent years,
benefited from strong foreign currencies (or, to put it another way, a weak
U.S.
dollar). A weaker dollar made U.S. exports more competitive overseas, because
it cost fewer French francs or German marks or Japanese yen to buy them. It
also gave U.S. corporations a leg up at home because it made imported goods
more expensive. And it enhanced the overseas earnings of U.S.-based
multinational corporations when those earnings were translated back into U.S.
dollars. Indeed, the combined effects of a weaker U.S. dollar are among the
reasons the profits of many U.S. companies have lately been so strong.
The other side of the coin is that a stronger U.S. dollar would offer these
same benefits to many non-U.S. companies. It would make their exports cheaper
and hence more competitive in the United States and also give them a boost at
home because imported U.S. goods would become more expensive. And it would
enhance the U.S. earnings of non-U.S. multinationals once those earnings were
converted back into their local currencies.
A weaker U.S. dollar has created a challenging environment for many foreign
companies. This is reflected in their stock prices. Over the past five years,
non-U.S. stocks as a group have lagged their U.S. counterparts. U.S. stocks, as
measured by Standard & Poor's 500 Composite Index, gained 121%, including
dividends, over this period. Non-U.S. stocks, measured in their local
currencies, went up 46% including dividends, according to the Morgan Stanley
Capital International EAFE(R) (Europe, Australasia, Far East) Index, which
follows equity prices in all major stock markets outside North America. In
U.S. dollar terms, the EAFE Index gained 69%.
[CAPTION]
Currency markets and equity markets can go in the same direction or opposite
directions. Over the past six years, the Japanese yen has risen in value
against the U.S. dollar while the Japanese stock markets declined. While New
Perspective has had relatively few investments in Japan, the rise in the yen
has, for U.S. investors, helped offset the decline in Japanese stock prices.
[END CAPTION]
This means that over this five-year period about a third of the return for U.S.
investors has come from currency gains. Without the drag on many foreign firms'
business operations created by a weaker U.S. dollar, the stocks of quite a few
of these companies probably would have gone up more.
Over New Perspective's 22-1/2-year lifetime, currency changes have played a
less prominent role. Indeed, the vast majority of the fund's gain has come from
rising stock prices, not currencies. There have, of course, been periods when
the U.S. dollar was strong, and periods when it was weak. But many of the
effects of currency fluctuations, when viewed in terms of their overall impact
on a portfolio of world-class companies, have had a tendency to cancel each
other out over time. Still, this is not to say that currency fluctuations can't
have a significant impact -- either positive or negative -- on investment
results over the long term as well as the short term. They can. The table on
page 2 of this report shows a country-by-country breakdown of the investment
results for 14 major non-U.S. markets, both in their local currency and
adjusted to U.S. dollars. Over NPF's lifetime, gains in some markets, such as
Germany or Japan, are helped when they are adjusted to the U.S. dollar; in
other markets, such as Italy and Australia, they're hurt. In the interim, those
currencies fluctuated widely. Interestingly, over the full 22-1/2-year period,
the average gain for all 14 markets together, treating each equally, works out
to 492% in local currency -- and 490% in U.S. dollars (those returns exclude
dividends). New Perspective Fund's gain, meanwhile, was +1,060% excluding
dividends. Including dividends, it was +2,119%.
In selecting investments for NPF, the fund's adviser, Capital Research and
Management Company, searches for stocks of well-managed companies with growing
earnings at reasonable prices.
[SIDE BAR]
Currency fluctuations affect the flow of goods and services around the world.
In recent years, a weaker U.S. dollar has made U.S. exports more competitive in
many markets overseas because it made it cheaper for consumers there to buy
them. And it has enhanced the overseas earnings of U.S. multinationals once
those earnings are translated back into U.S. dollars. That is one of the
reasons the profits of many U.S. companies have been so strong.
[END SIDE BAR]
Capital Research and Management Company goes to great lengths to determine the
difference between the underlying value of a security and its price in the
marketplace. It takes a long, hard look at each potential investment from many
angles -- its management, its financial strength, its resources and products
and services. Before deciding to purchase or sell a security, it also takes
into account current exchange rates and the likely effects of currency changes
on that company's profitability and prospects. This involves a close
examination of the geographic mix of its revenues and costs, the currency mix
of its assets and liabilities, and many other factors. This is one of the main
reasons that successful global investing requires in-depth research.
A strong currency can create short-term pain for a business while at the same
time laying the groundwork for long-term gains. Strong currencies often have a
way of forcing companies to become more productive in order to compete in world
markets. Again, many U.S. corporations are a case in point. A strong dollar in
the first half of the 1980s compelled many U.S. manufacturers to produce goods
more efficiently in order to compete. To be sure, the stronger dollar created
dislocations and difficulties for many U.S. companies and their employees. But
it led to a virtual renaissance in U.S. manufacturing -- to the point where
U.S. companies today are among the most productive in the world. Moreover, once
the dollar came back down, as it did in the second half of the 1980s, many U.S.
companies reaped further gains.
[SIDE BAR]
The other side of the coin is that a stronger U.S. dollar would make the
products of many non-U.S. companies cheaper and hence more competitive in the
United States. It would also give them a leg up at home because imported U.S.
goods would be more expensive.
[END SIDE BAR]
A strong currency can also help a company expand abroad. While a strong yen or
mark can make the products and services of companies in Japan and Germany less
competitive in world markets, it can also make it less expensive for them to
buy or build plants in countries with relatively weak currencies. Japanese car
manufacturers, for example, have taken advantage of the strong yen to build and
increase their manufacturing capacity in Tennessee and in Taiwan.
By building plants and facilities abroad, companies can dampen the effects of
currency fluctuations on their businesses. Indeed, this is one of the reasons
companies become multinational. After all, if a U.S. manufacturer builds a
factory in France to produce and sell its products there, it insulates itself
to some extent from the risk that changes in the value of the U.S. dollar
vis-a-vis the franc will impair its ability to compete in that country.
Likewise, if a French manufacturer builds a factory in the United States to
produce and sell its product to Americans, it insulates itself to some extent
from the risk that changes in the value of the franc will impair its ability to
compete in the United States.
In this way, many multinational corporations attempt to gain a "natural" hedge
against changes in currency exchange rates. New Perspective Fund's portfolio
is filled with companies that maintain subsidiaries and operations all over the
world.
Some companies go a step further and hedge by, say, entering into forward
currency contracts or purchasing put and call options, to protect themselves
against changes in currency exchange rates. New Perspective Fund, for its part,
can also use certain hedging techniques, but it seldom does so. One reason is
that hedging entails costs that can impair returns. A more fundamental reason,
however, has to do with the kinds of companies NPF invests in and where and how
they do business. Because New Perspective Fund holds multinational corporations
from all over the world, any change in currency exchange rates stands a good
chance of helping some companies and hindering others. But a broadly
diversified portfolio tends to reduce the effects of currency fluctuations over
time.
[SIDE BAR]
A strong currency often forces companies to become more productive in
order to compete in world markets.
[END SIDE BAR]
Finally, currency fluctuations can also influence interest rates and stock
valuations in general. While it is true that a strong currency often tends to
depress the earnings of companies in those countries -- particularly exporters
and multinationals based there -- it also tends to allow the central banks in
those countries to lower interest rates. And lower interest rates tend to
stimulate both economic growth and stock prices.
What is the bottom line for NPF shareholders? It is simply this: Changes in
currency exchange rates have multifaceted effects. Those effects make it
particularly important for investors not to be overly concerned with short-term
currency swings and, instead, maintain a long-term perspective.
[SIDE BAR]
One way companies get better control over the effect of fluctuations in
currency values on their business is by building plants and facilities abroad.
PepsiCo, by producing and selling its products in countries around the world,
insulates itself to some extent from the risk that changes in currency exchange
rates will impair its ability to compete in those countries.
[END SIDE BAR]
Photos courtesy Pepsi-Cola International (c) 1994.
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.
Board of Directors
ELISABETH ALLISON, Cambridge, Massachusetts
Administrative Director, ANZI, Ltd.
(financial publishing and consulting);
former Senior Vice President,
Planning and Development, McGraw-Hill, Inc.
DAVID I. FISHER, Los Angeles, California
Chairman of the Board,
The Capital Group Companies, Inc.
ROBERT A. FOX, Livingston, California
President and Chief Executive Officer,
Foster Farms Inc.
ALAN GREENWAY, La Jolla, California
President, Greenway Associates, Inc.
(management consulting services);
former Chairman, Australian Tourist Commission
KOICHI ITOH, Tokyo, Japan
Managing Partner, VENCA Management
(venture capital)
WILLIAM H. KLING, St. Paul, Minnesota
President, Minnesota Public Radio;
President, Greenspring Co.;
former President, American Public Radio
(now Public Radio International)
JON B. LOVELACE, Los Angeles, California
Vice Chairman of the Board of the fund
Vice Chairman of the Board and
Chairman of the Executive Committee,
Capital Research and Management Company
JOHN G. McDONALD, Stanford, California
The IBJ Professor of Finance,
Graduate School of Business, Stanford University
WILLIAM I. MILLER, Columbus, Indiana
Chairman of the Board,
Irwin Financial Corporation
DONALD E. PETERSEN, Birmingham, Michigan
Retired; former Chairman of the Board and
Chief Executive Officer, Ford Motor Company
JAMES W. RATZLAFF, San Francisco, California
Senior Partner,
The Capital Group Partners L.P.
WALTER P. STERN, New York, New York
Chairman of the Board of the fund
Chairman of the Board,
Capital Group International, Inc.
Other Officers
GINA H. DESPRES, Washington, D.C.
President of the fund
Vice President,
Capital Research and Management Company
WILLIAM R. GRIMSLEY, San Francisco, California
Senior Vice President of the fund
Senior Vice President and Director,
Capital Research and Management Company
THIERRY VANDEVENTER, Geneva, Switzerland
Senior Vice President of the fund
Chairman of the Board, Capital Research Company
GREGG E. IRELAND, Washington, D.C.
Vice President of the fund
Vice President,
Capital Research and Management Company
CATHERINE M. WARD, Los Angeles, California
Vice President of the fund
Vice President and Director,
Capital Research and Management Company
VINCENT P. CORTI, Los Angeles, California
Secretary of the fund
Vice President -- Fund Business
Management Group,
Capital Research and Management Company
STEVEN N. KEARSLEY, Brea, California
Treasurer of the fund
Vice President and Treasurer,
Capital Research and Management Company
MARY C. CREMIN, Brea, California
Assistant Treasurer of the fund
Senior Vice President -- Fund Business
Management Group,
Capital Research and Management Company
R. MARCIA GOULD, Brea, California
Assistant Treasurer of the fund
Vice President -- Fund Business
Management Group,
Capital Research and Management Company
Members of the Advisory Board
YOICHI FUNABASHI, PH.D.,
Washington, D.C.
Washington, D.C. Bureau Chief and Diplomatic Correspondent of the Asahi Shimbun
JEAN GANDOIS, Paris, France
President, Conseil National du Patronat Francais;
former Chairman of the Board of
Cockerill-Sambre; former Chairman and
Chief Executive Officer, Pechiney, and former Chairman, Pechiney International
CLAUDIO X. GONZALEZ LAPORTE,
Mexico, DF, Mexico
Chairman of the Board and Chief Executive Officer, Kimberly-Clark de Mexico, SA
de CV
JUNICHI HATTORI, Tokyo, Japan
Senior Managing Director -- Information Devices & Systems Division, Seiko
Instruments, Inc.
PETER C. HOBBINS, Zug, Switzerland
Counselor 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 NV
THE HONOURABLE JOHN L. NICHOL,
Vancouver, Canada
President, Springfield Investment Co., Ltd.;
former President of Canada's Liberal Party
BRIAN NICHOLSON, London, England
Chairman of the Board, Advertising Standards Board of Finance Ltd.; former
Executive Chairman,
Marlar International Ltd.; former Joint Managing Director, The Observer
ALLEN E. PUCKETT, Los Angeles, California
Chairman Emeritus, Hughes Aircraft Company
ROZANNE L. RIDGWAY, Washington, D.C.
President, Atlantic Council of the United States
HAROLD M. WILLIAMS, Los Angeles, California
President and Chief Executive Officer, J. Paul Getty Trust; former Chairman,
U.S. Securities and Exchange Commission
[SIDE BAR]
We note with sadness the death on April 23 of Carl A. Gerstacker, a colleague
and friend who served as a member of the Advisory Board of New Perspective Fund
since 1979. His wise counsel will be greatly missed.
Charles P. Neidig retired from the Board of Directors effective March 31, 1995.
He had been a member of the Board since September 1977. The Directors thank him
for his valuable contributions to the fund.
Donald E. Petersen, a member of the Advisory Board since 1990, was elected a
Director effective April 1, 1995.
Yoichi Funabashi, Ph.D., was elected to the Advisory Board effective October 1,
1995.
[END SIDE BAR]
Offices of the fund and of the
investment adviser, Capital Research
and Management Company
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
Transfer agent for shareholder accounts
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
Custodian of assets
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
Counsel
O'Melveny & Myers
400 South Hope Street
Los Angeles, California 90071-2899
Independent accountants
Price Waterhouse LLP
400 South Hope Street
Los Angeles, California 90071-2889
Principal underwriter
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR SECURITIES DEALER OR FINANCIAL PLANNER, OR CALL THE FUND'S
TRANSFER AGENT, TOLL-FREE, AT 800/421-0180.
This report is for the information of shareholders of New Perspective Fund, but
it may also be used as sales literature when preceded or accompanied by the
current prospectus, which gives details about charges, expenses, investment
objectives and operating policies of the fund. If used as sales material after
December 31, 1995, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
Litho in USA AGD/L/2750
Lit. No. NPF-011-1195
[The American Funds Group(R)]
