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NEW PERSPECTIVE FUND
SEMI-ANNUAL REPORT
for the six months ended March 31, 1996
[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.
Fund results in this report were computed without a sales charge unless
otherwise indicated. Here are the total returns and average annual compound
returns with all distributions reinvested for periods ended March 31, 1996,
assuming payment of the maximum 5.75% sales charge at the beginning of the
stated periods (sales charges are lower for accounts of $50,000 or more): 10
years: +248.60% or +13.30% a year; 5 years: +79.55% or +12.42% a year; 12
months: +14.23%.
FUND RESULTS 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 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.
FELLOW SHAREHOLDERS:
New Perspective Fund continued to gain ground in the first half of fiscal 1996.
For the six months ended March 31, the value of your investment rose 6.4% if,
like most shareholders, you reinvested the income dividend of 23 cents a share
and the 60-cents-a-share capital gain distribution, both of which were paid in
December.
By comparison, the unmanaged Morgan Stanley Capital International (MSCI)
World Index - which measures the world's major stock markets, including the
U.S. - rose 9.3% with dividends reinvested. Over the past 12 months, New
Perspective was up 21.2% on a reinvested basis versus 20.6% for the MSCI World
Index.
During the six-month period, virtually all of the world's major markets
had positive results. The United States, the fund's largest area of
concentration, gained 12.1% with dividends reinvested as measured by the MSCI
USA Index. Other markets, including Germany, Japan, France, Switzerland, Hong
Kong and the Netherlands, also posted double-digit returns in local currency,
although a strengthening U.S. dollar trimmed returns for U.S. investors.
Markets in developing countries such as Mexico and Argentina, where the fund
holds a few select investments, showed signs of resurgence after experiencing
significant declines.
Of the 232 stocks held over the course of the period, 155 advanced in
price, 75 declined and two were unchanged. Most of the fund's health and
personal care stocks, which now comprise NPF's largest industry holding,
continued to make solid contributions to results. Pharmaceutical manufacturers
such as Ciba-Geigy (Switzerland), Astra (Sweden), and Pfizer (U.S.) all
appreciated sharply. Banking-related issues, including Citicorp and Australia's
Westpac Banking, were also an area of strength, as were chemical manufacturers
such as Praxair (U.S.) and energy-related issues such as Repsol (Spain). Many
companies throughout the portfolio continued to benefit from steps their
managements have taken to enhance competitiveness, often through restructurings
and mergers.
On the other side of the ledger, a number of holdings that until recently
had done extremely well experienced sharp pullbacks. For instance, Nokia, the
Finnish company that is a leading manufacturer of cellular communications
equipment and consumer electronics, declined 50.6% after advancing 140.6% in
fiscal 1995 and 163.8% in fiscal 1994. A slowdown in the rate of growth in the
mobile phone market in the United States, and aggressive price cutting in
cellular handsets and color televisions, were major factors behind the decline.
Technology holdings such as Advanced Micro Devices (U.S.) and Scitex (Israel)
demonstrated their characteristic volatility, only this time on the downside.
Although the fund sold a number of its high-tech holdings before a broad-based
selloff in the fourth quarter of calendar 1995, the declines here, as well as
in the cellular area, were significant enough to affect the fund's relative and
absolute results.
While New Perspective Fund trailed the MSCI World Index during the
six-month period, it outpaced the index in fiscal 1995 (+18.6% versus +15.0%)
and in fiscal 1994 (+12.6% versus +8.1%). Since New Perspective began
operations in March 1973, it has achieved a total return of +2,260.4%, compared
with +1,157.8% for the MSCI World Index. The fund's lifetime gain works out to
an average compound return of 14.7% a year.
Despite the crosscurrents which swept over many of the fund's holdings
during the fiscal period, we believe the companies held by the fund have
attractive long-term prospects. And we continue to find promising
opportunities, particularly in markets abroad where stock valuations frequently
compare favorably to those in the United States. Of course, stock prices do not
always track the progress of individual companies. That is why successful
long-term investing entails ongoing research, perseverance and patience. We
encourage shareholders to maintain a long-term perspective toward their
investment in New Perspective Fund as well.
We look forward to reporting to you again in six months.
Cordially,
Walter P. Stern Gina H. Despres
Chairman of the Board President
May 9, 1996
WHERE NPF'S ASSETS
WERE INVESTED
<TABLE>
<CAPTION>
3/31/96 9/30/95
<S> <C> <C>
Asia/Pacific Rim 11.3% 11.0%
Australia 3.8 4.3
Hong Kong 2.0 1.7
Japan 4.1 3.2
New Zealand 1.3 1.4
Singapore .1 .4
Europe 36.2% 32.4%
Belgium .2 .4
Denmark .5 .6
Finland 1.0 1.9
France 6.7 4.3
Germany 4.0 3.6
Italy .6 .5
Luxembourg .2 -
Netherlands 4.1 4.8
Norway .4 .3
Spain 2.1 1.2
Sweden 6.4 5.7
Switzerland 2.8 2.5
United Kingdom 7.2 6.6
North America 36.2% 36.6%
Canada 5.5 4.0
Mexico 1.1 1.1
United States 29.6 31.5
Other stocks 3.4% 3.3%
Cash equivalents 12.9% 16.7%
100.0% 100.0%
</TABLE>
- -------
PORTFOLIO SUMMARY
March 31, 1996
<TABLE>
<CAPTION>
Percent of
Ten Largest Industry Holdings Net Assets
- ---------------------------- -----------
<S> <C> <C>
Health & Personal Care 8.50%
Telecommunications 7.30%
Banking 6.21%
Broadcasting & Publishing 5.82%
Electrical & Electronics 4.62%
Energy Sources 4.49%
Beverages & Tobacco 4.31%
Automobiles 4.30%
Chemicals 4.19%
Food & Household Products 3.61%
Other Industries 33.34%
Bonds & Cash Equivalents 13.31%
- ----------------------------
Where NPF's Assets
Were Invested 3/31/96 9/30/95
- ---------------------------- ------------- -------------
Asia/Pacific Rim 11.3% 11.0%
Australia 3.8 4.3
Hong Kong 2.0 1.7
Japan 4.1 3.2
New Zealand 1.3 1.4
Singapore .1 .4
- ---------------------------- ------------- -------------
Europe 36.2% 32.4%
Belgium .2 .4
Denmark .5 .6
Finland 1.0 1.9
France 6.7 4.3
Germany 4.0 3.6
Italy .6 .5
Luxembourg .2 -
Netherlands 4.1 4.8
Norway .4 .3
Spain 2.1 1.2
Sweden 6.4 5.7
Switzerland 2.8 2.5
United Kingdom 7.2 6.6
- ---------------------------- ------------- -------------
North America 36.2% 36.6%
Canada 5.5 4.0
Mexico 1.1 1.1
United States 29.6 31.5
- ---------------------------- ------------- -------------
Other stocks 3.4% 3.3%
- ---------------------------- ------------- -------------
Cash and equivalents 12.9% 16.7%
------------- -------------
100.0% 100.0%
</TABLE>
- ------------
NEW PERSPECTIVE FUND
Investment Portfolio, March 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Unaudited
Shares or Market Percent
Principal Value of Net
Equity-Type Securities Amount (Millions) Assets
- ----------------------------------------- --------- --------- -------
Health & Personal Care- 8.50%
AB Astra, Class A (Sweden) 2,000,000 $92.824
AB Astra, Class A (American Depositary
Receipts) 155,000 7.194 2.20%
AB Astra, Class B 2,800,000 129.114
Pfizer Inc (USA) 1,300,000 87.100 .84
Ciba-Geigy Ltd. (Switzerland) 69,000 86.337 .83
Teva Pharmaceutical Industries Ltd.
(American Depositary Receipts)(Israel) 1,940,000 74.690 .72
Sandoz Ltd. (Switzerland) 49,515 58.045 .56
Merck & Co., Inc. (USA) 880,000 54.780 .53
SmithKline Beecham PLC (American
Depositary Receipts) (United Kingdom) 1,000,000 51.500 .50
Avon Products, Inc. (USA) 500,000 42.875 .41
Glaxo Wellcome PLC (United Kingdom) 563,264 7.057
Glaxo Wellcome PLC (American Depositary .37
Receipts) 1,254,000 31.507
Johnson & Johnson (USA) 400,000 36.900 .35
Genentech, Inc. (USA) /1/ 600,000 31.575 .30
Kimberly-Clark Corp. (USA) 300,000 22.350 .21
BioChem Pharma Inc. (Canada) /1/ 500,000 20.500 .20
Abbott Laboratories (USA) 400,000 16.300 .16
Bristol-Myers Squibb Co. (USA) 140,000 11.988 .12
Roberts Pharmaceutical Corp. (USA) /1/ 450,000 8.494 .08
Bausch & Lomb Inc. (USA) 225,000 8.325 .08
Chiron Corp. (USA) /1/ 37,049 3.640 .04
Telecommunications- 7.30%
Telecom Corp. of New Zealand Ltd.
(New Zealand) 15,600,000 70.105 .92
Telecom Corp. of New Zealand Ltd. /2/ 5,780,000 25.975
Telefonica de Espana, SA (Spain) 5,461,200 86.693
Telefonica de Espana, SA (American .87
Depositary Receipts) 76,000 3.610
AirTouch Communications (USA) /1/ 2,882,000 89.702 .86
Telefonos de Mexico, SA de CV, Class L
(American Depositary Receipts) (Mexico) 2,434,530 80.035 .77
Vodafone Group PLC (American Depositary
Receipts)(United Kingdom) 2,080,000 78.000 .75
Tele Danmark AS, Class B (Denmark) 375,000 19.541
Tele Danmark AS, Class B (American .50
Depositary Receipts) 1,233,700 31.922
AT&T Corp.(USA) 735,000 45.019 .43
Hong Kong Telecommunications Ltd. (Hong
Kong) 16,068,463 32.100
Hong Kong Telecommunications Ltd. .39
(American Depositary Receipts) 429,584 8.592
MCI Communications Corp. (USA) 1,225,000 37.056 .36
Koninklijke PTT Nederland NV
(Netherlands) 869,500 34.215 .33
Telefonica de Argentina SA, Class B
(American Depositary Receipts) (Argentina) 1,200,000 30.750 .30
STET-Societa Finanziaria Telefonica p.a.,
ordinary shares (Italy) 5,890,000 16.369
STET-Societa Finanziaria Telefonica p.a., .29
nonconvertible savings shares 7,000,000 14.036
Telecomunicacoes Brasileiras SA, preferred
nominative (Brazil) 556,439 27.683 .27
Nippon Telegraph and Telephone Corp. (Japan) 3,000 21.919 .21
Cable and Wireless PLC (United Kingdom) 605,254 4.909 .05
Banking- 6.21%
Westpac Banking Corp. (Australia) 17,326,389 81.493 .78
Citicorp (USA) 850,000 68.000 .66
Barclays PLC (United Kingdom) 5,800,000 64.345 .62
Banco de Santander, SA (Spain) 742,000 35.336
Banco de Santander, SA (American .57
Depositary Receipts) 500,000 23.625
BankAmerica Corp. (USA) 675,000 52.312 .50
Royal Bank of Canada (Canada) 2,000,000 46.772 .45
Compagnie Financiere de Paribas, Class A (France) 700,000 42.568 .41
Compagnie de Suez (France) 1,000,000 38.851 .37
Sumitomo Bank, Ltd. (Japan) 1,695,000 34.207
Sumitomo Bank, Ltd., 3.125% convertible .37
debentures 2004 $4,700,000 4.054
Deutsche Bank AG (Germany) 710,000 35.755 .34
Banque Nationale de Paris (France) 900,000 35.234 .34
Republic New York Corp. (USA) 370,000 22.015 .21
ABN AMRO Holding NV (Netherlands) 418,240 20.813 .20
Svenska Handelsbanken Group (Sweden) 792,100 15.382 .15
Istituto Mobiliare Italiano SpA
(American Depositary Receipts) (Italy) 600,000 12.450 .12
Asahi Bank, Ltd. (Japan) 1,000,000 11.959 .12
Broadcasting & Publishing- 5.82%
News Corp. Ltd. (Australia) 3,918,754 22.932
News Corp. Ltd. (American Depositary
Receipts) 3,991,600 91.807 1.59
News Corp. Ltd., preferred shares 1,976,106 10.036
News Corp. Ltd., preferred shares
(American Depositary Receipts) 1,995,800 40.415
Turner Broadcasting System, Inc., Class
B (USA) 3,512,300 95.271 .91
Viacom Inc., Class B (USA) /1/ 2,140,000 90.147 .87
Time Warner Inc. (USA) 1,772,000 72.431 .70
CANAL+ (France) 185,560 43.440 .42
Carlton Communications PLC (United
Kingdom) 4,890,000 33.803 .32
Elsevier NV (Netherlands) 1,700,000 26.038 .25
Dow Jones & Co., Inc. (USA) 600,000 23.100 .22
Grupo Televisa, SA, Class L (American
Depositary Receipts) (Mexico) /1/ 825,000 20.522 .20
Wolters Kluwer NV (Netherlands) 162,516 17.887 .17
Pearson PLC (United Kingdom) 1,700,000 17.355 .17
Electrical & Electronics- 4.62%
ASEA AB, Class A (Sweden) 115,000 11.951
ASEA AB, Class B 760,000 78.410
ASEA AB, Class B (American Depositary 1.88
Receipts) 450,000 46.463
BBC Brown Boveri Ltd, Class A
(Switzerland) 47,957 58.314
Telefonaktiebolaget LM Ericsson, Class B
(Sweden) 2,771,560 61.096
Telefonaktiebolaget LM Ericsson, Class B .83
(American Depositary Receipts) 1,200,000 25.650
Nokia Corp., Class A (Finland) 480,000 16.789
Nokia Corp., Class A (American Depositary
Receipts) 968,000 33.154 .63
Nokia Corp., Class K 460,000 15.990
Northern Telecom Ltd. (Canada) 1,050,000 50.137 .48
General Instrument Corp. (USA) /1/ 1,805,200 49.417 .48
Siemens AG (Germany) 22,500 12.386 .12
Makita Corp. (Japan) 814,000 12.245 .12
Hitachi, Ltd. (Japan) 900,000 8.745 .08
Energy Sources- 4.49%
TOTAL, Class B (France) 128,196 8.662
TOTAL, Class B (American Depositary 1.05
Receipts) 2,952,443 100.383
Repsol SA (Spain) 1,830,000 69.012 .66
Royal Dutch Petroleum Co. (New York
Registered Shares) (Netherlands) 463,000 65.399 .63
Unocal Corp. (USA) 1,720,000 57.405 .55
Phillips Petroleum Co. (USA) 1,225,000 48.387 .47
NOVA Corp. of Alberta (Canada) 4,500,000 42.507 .41
Anadarko Petroleum Corp. (USA) 550,000 30.525 .29
YPF SA, Class D (American Depositary
Receipts) (Argentina) 1,200,000 24.150 .23
Broken Hill Proprietary Co. Ltd.
(Australia) 1,436,783 20.453 .20
Beverages & Tobacco- 4.31%
Philip Morris Companies Inc. (USA) 2,235,000 196.121 1.89
Seagram Co. Ltd. (Canada) 2,500,000 80.937 .78
LVMH Moet Hennessy Louis Vuitton (France) 264,700 67.227 .65
Lion Nathan Ltd. (New Zealand) 12,950,000 31.920 .31
PepsiCo, Inc. (USA) 500,000 31.625 .30
Guinness PLC (United Kingdom) 3,700,000 26.876 .26
American Brands, Inc. (USA) 300,000 12.713 .12
Automobiles- 4.30%
Volvo AB, Class B (Sweden) 4,170,000 97.239 .94
Ford Motor Co., Class A (USA) 2,700,000 92.812 .89
Regie Nationale des Usines Renault, SA (France) 2,573,800 74.677 .72
Toyota Motor Corp. (Japan) 2,705,000 59.645 .57
Daimler-Benz AG (Germany) 89,800 48.855
Daimler-Benz AG (American Depositary .53
Receipts) 110,000 5.954
Bayerische Motoren Werke AG (Germany) 70,909 37.064
Bayerische Motoren Werke AG, preferred .43
shares 20,318 7.544
General Motors Corp. (USA) 250,000 13.313 .13
Suzuki Motor Corp. (Japan) 800,000 9.866 .09
Chemicals- 4.19%
Praxair, Inc. (USA) 2,579,300 102.850 .99
Georgia Gulf Corp. (USA) 1,975,000 74.062 .71
E.I. du Pont de Nemours and Co. (USA) 675,000 56.025 .54
Sherwin-Williams Co. (USA) 981,000 43.532 .42
Methanex Corp. (Canada) 6,250,000 42.416 .41
Valspar Corp. (USA) 580,000 26.318 .25
Hoechst AG (Germany) 70,000 24.804 .24
Bayer AG (Germany) 60,000 20.443 .20
L'Air Liquide (France) 99,489 18.130 .17
Sumitomo Chemical Co., Ltd. (Japan) 3,395,000 17.446 .17
Engelhard Corp. (USA) 413,100 9.656 .09
Food & Household Products- 3.61%
Cadbury Schweppes PLC (United Kingdom) 11,000,000 84.098 .81
Nestle SA (Switzerland) 68,782 77.568 .75
Reckitt & Colman PLC (United Kingdom) 6,975,000 70.835 .68
Groupe Danone (France) 435,000 66.737 .64
Unilever NV (Netherlands) 325,000 44.958 .43
Colgate-Palmolive Co. (USA) 400,000 31.150 .30
Machinery & Engineering- 3.45%
Mannesmann AG (Germany) 510,775 186.177 1.79
Caterpillar Inc. (USA) 1,952,900 132.797 1.28
Deere & Co. (USA) 780,000 32.565 .31
Parker Hannifin Corp. (USA) 200,000 7.500 .07
Multi-Industry- 3.14%
Hutchison Whampoa Ltd. (Hong Kong) 15,781,000 99.575 .96
Lend Lease Corp. Ltd. (Australia) 3,977,310 57.550 .55
LTV Corp. (USA) /1/ 3,100,000 40.300 .39
Hanson PLC (United Kingdom) 4,000,000 11.720
Hanson PLC (American Depositary .31
Receipts) 1,330,000 19.950
Groupe Bruxelles Lambert SA (Belgium) 182,000 23.463 .23
B.A.T Industries PLC (United Kingdom) 2,126,250 15.688 .15
Incentive AB, Class A (Sweden) 116,600 5.910
Incentive AB, Class B 193,400 9.803 .15
Canadian Pacific Ltd. (Canada) 750,000 15.000 .14
CITIC Pacific Ltd. (Hong Kong) 3,600,000 13.964 .13
Swire Pacific Ltd., Class A (Hong Kong) 1,530,000 13.452 .13
Recreation & Other Consumer Products-
2.89%
THORN EMI PLC (United Kingdom) 3,181,653 81.737 .79
Fuji Photo Film Co., Ltd. (Japan) 1,600,000 45.744 .44
Mattel, Inc. (USA) 1,500,000 40.687 .39
Nintendo Co., Ltd. (Japan) 500,000 31.954 .31
Hasbro, Inc. (USA) 801,800 29.667 .28
PolyGram NV (New York Registered Shares)
(Netherlands) 490,300 29.541 .28
Duracell International Inc. (USA) 550,000 27.294 .26
Eastman Kodak Co. (USA) 200,000 14.200 .14
Insurance- 1.87%
Internationale Nederlanden Groep NV
(Netherlands) 1,668,486 121.212 1.17
American International Group, Inc. (USA) 516,562 48.363 .46
Munchener Ruckversicherungs-Gesellschaft
(Germany) 3,000 5.285
Munchener Ruckversicherungs-Gesellschaft, .13
registered shares 3,713 7.735
CKAG Colonia Konzern AG (Germany) 12,400 9.325
CKAG Colonia Konzern AG, preferred shares 1,385 .840 .10
Yasuda Fire and Marine Insurance Co.,
Ltd. (Japan) 200,000 1.489 .01
Electronic Components- 1.76%
Intel Corp. (USA) 785,000 44.647 .43
Advanced Micro Devices, Inc. (USA) /1/ 2,325,000 40.106 .39
Analog Devices, Inc. (USA) /1/ 1,282,500 35.910 .34
Seagate Technology (USA) /1/ 650,000 35.587 .34
SGS-THOMSON Microelectronics NV (New
York Registered Shares) (Netherlands) /1/ 510,000 18.488 .18
Micron Technology, Inc. (USA) 175,000 5.491 .05
Motorola, Inc. (USA) 50,000 2.650 .03
Forest Products & Paper- 1.52%
Kymmene Corp. (Finland) 1,395,000 39.028 .38
Champion International Corp. (USA) 700,000 31.675 .31
Louisiana-Pacific Corp. (USA) 900,000 21.937 .21
Jefferson Smurfit Corp. (USA) /1/ 1,255,700 13.970 .13
Weyerhaeuser Co. (USA) 300,000 13.838 .13
International Paper Co. (USA) 350,000 13.781 .13
Carter Holt Harvey Ltd. (New Zealand) 5,500,000 12.134 .12
Rayonier Inc. (USA) 325,000 11.781 .11
Merchandising- 1.51%
Wal-Mart Stores, Inc. (USA) 3,650,000 84.406 .81
Toys 'R' Us, Inc. (USA) /1/ 1,300,000 35.100 .34
Home Depot, Inc. (USA) 290,000 13.884 .13
Ito-Yokado Co., Ltd. (Japan) 185,000 10.976 .11
Cifra, SA de CV, Class A (Mexico) 2,500,000 3.375
Cifra, SA de CV, Class B 1,204,000 1.600 .09
Cifra, SA de CV, Class C 3,384,800 4.452
WHSmith Group PLC, Class A (United
Kingdom) 500,000 3.395 .03
Gold Mines- 1.38%
Placer Dome Inc. (Canada) 2,800,000 80.850 .78
Barrick Gold Corp. (Canada) 1,500,000 45.562 .44
Newmont Mining Corp. (USA) 300,000 16.988 .16
Appliances & Household Durables- 1.18%
Philips Electronics NV (Netherlands) 1,050,000 38.204
Philips Electronics NV, warrants, expire 1998 /1/ 500,000 8.339 .57
Philips Electronics NV (New York Registered Shares) 360,000 13.095
AB Electrolux, Class B (Sweden) 707,600 34.645 .33
Sony Corp. (Japan) 480,000 28.657 .28
Leisure & Tourism- 1.10%
Carnival Cruise Lines, Inc. (USA) 2,200,000 60.500 .58
Walt Disney Co. (USA) 670,000 42.796 .41
Euro Disney SCA (France) /1/ 3,870,000 10.844
Euro Disney SCA, warrants, expire 2004 /1/ 760,000 .276 .11
Energy Equipment- 1.07%
Schlumberger Ltd. (Netherlands Antilles) 1,223,300 96.794 .93
Western Atlas Inc. (USA) /1/ 240,000 14.400 .14
Industrial Components- 0.91%
Goodyear Tire & Rubber Co. (USA) 1,120,000 57.120 .55
Compagnie Generale des Etablissements
Michelin, Class B (France) 550,000 26.232 .25
Rockwell International Corp. (USA) 200,000 11.775 .11
Utilities: Electric & Gas- 0.89%
National Power PLC (United Kingdom) 6,000,000 42.758 .41
Hongkong Electric Holdings Ltd.
(Hong Kong) 5,213,500 16.954 .16
VEBA AG (Germany) 340,450 16.550 .16
Enersis SA (American Depositary Receipts)
(Chile) 420,000 11.865 .11
Hong Kong and China Gas Co. Ltd. (Hong
Kong) 2,401,800 4.736 .05
Metals: Nonferrous- 0.87%
Western Mining Corp. Holdings Ltd.
(Australia) 6,037,151 39.904 .38
Alcan Aluminium Ltd. (Canada) 700,000 22.575 .22
Alumax Inc. (USA) /1/ 426,000 15.070 .14
Teck Corp., Class B (Canada) 596,000 13.009 .13
Business & Public Services- 0.87%
Compagnie Generale des Eaux (France) 320,000 32.750 .32
WMX Technologies, Inc. (USA) 600,000 19.050 .18
Reuters Holdings PLC (American Depositary
Receipts) (United Kingdom) 200,000 13.025 .13
Havas SA (France) 140,000 11.877 .11
Federal Express Corp. (USA) /1/ 100,000 6.988 .07
Eurotunnel SA, units, comprised of one
share of Eurotunnel SA ordinary and one
share of Eurotunnel PLC ordinary
(France) /1/ 5,946,900 5.862 .06
Transportation: Shipping- 0.77%
Nippon Yusen KK (Japan) 6,700,000 38.123 .37
Bergesen d.y.AS, Class A (Norway) 1,300,000 22.617
Bergesen d.y.AS, Class B 795,000 13.397 .35
Overseas Shipholding Group, Inc. (USA) 300,000 5.475 .05
Aerospace & Military Technology- 0.75%
Bombardier Inc., Class B (Canada) 3,500,000 51.678 .50
Rolls-Royce PLC (United Kingdom) 6,000,000 19.731 .19
Boeing Co. (USA) 50,000 4.331 .04
Litton Industries, Inc. (USA) /1/ 40,000 1.840 .02
Metals: Steel- 0.74%
Usinor Sacilor (France) 2,200,000 36.003 .35
Companhia Vale do Rio Doce, ordinary
nominative (Brazil) 4,800,000 1.118
Companhia Vale do Rio Doce, preferred .19
nominative (American Depositary Receipts) 495,120 19.310
Armco Inc. (USA) /1/ 3,000,000 16.125
Armco Inc., convertible preferred 20,000 1.000 .16
Koninklijke Nederlandsche Hoogovens en
Staalfabrieken NV (Netherlands) 100,000 3.669 .04
Data Processing & Reproduction- 0.61%
Sybase, Inc. (USA) /1/ 1,613,800 37.521 .36
International Business Machines Corp.
(USA) 150,000 16.669 .16
Cisco Systems, Inc. (USA) /1/ 200,000 9.275 .09
Transportation: Airlines- 0.45%
British Airways PLC (United Kingdom) 1,545,000 12.637
British Airways PLC (American Depositary .36
Receipts) 305,500 25.051
Singapore Airlines Ltd. (Singapore) 891,000 9.239 .09
Miscellaneous Materials & Commodities-
0.41%
Compagnie de Saint-Gobain (France) 119,511 15.533 .15
English China Clays PLC (United Kingdom) 3,200,000 14.478 .14
Potash Corp. of Saskatchewan Inc.
(Canada) 200,000 12.500 .12
Transportation: Rail & Road- 0.33%
CSX Corp. (USA) 750,000 34.219 .33
Real Estate- 0.21%
Cheung Kong (Holdings) Ltd. (Hong Kong) 2,000,000 14.094 .14
Sun Hung Kai Properties Ltd. (Hong Kong) 840,000 7.521 .07
Building Materials & Components- 0.20%
Holderbank Financiere Glaris Ltd.
(Switzerland) 16,000 12.074 .12
CEMEX, SA, Class A (Mexico) 2,362,225 8.459 .08
Electronic Instruments- 0.11%
Scitex Corp. Ltd. (Israel) 812,300 11.271 .11
Miscellaneous- 4.35%
Other equity-type securities in initial
period of acquisition 451.695 4.35
--------- -----
TOTAL EQUITY-TYPE SECURITIES
(cost:$6,662.505 million) 9,010.128 86.69
--------- ----
Principal
Amount
Bonds (Millions)
- --------------------------------------- ---------
Canadian Government- 0.45%
Canada 9.00% June 2025 C$58.800 47.152 .45
--------- -------
TOTAL BONDS (cost: $46.090 million) 47.152 .45
--------- -------
TOTAL INVESTMENT SECURITIES (cost:
$6,708.595 million) 9,057.280 87.14
--------- -------
Short-Term Securities
- ------------------------------------------
Corporate Short-Term Notes- 10.42%
General Electric Capital Corp. 5.18%-5.35%
due 4/24-5/16/96 $90.200 89.744 .86
Siemens Corp. 4.12%-5.27% due 4/12-5/23/96 88.600 88.144 .85
Canadian Imperial Holdings Inc. 5.105%-5.235%
due 4/1-5/7/96 81.000 80.735 .78
Bayerische Vereinsbank AG 5.13%-5.26%
due 4/10-5/21/96 79.800 79.474 .77
Daimler-Benz North America Corp. 5.12%-5.16%
due 4/10-6/25/96 80.700 80.442 .77
Toyota Motor Credit Corp. 5.16%-5.33%
due 4/3-5/16/96 75.000 74.783 .72
Xerox Corp. 5.12%-5.20% due 4/8-5/9/96 64.641 64.499 .62
AT&T Corp. 5.21%-5.31% due 4/2-5/24/96 60.000 59.791 .58
American Express Credit Corp. 5.15%-5.18%
due 4/11-4/22/96 59.500 59.371 .57
Canada Bills 5.10%-5.25% due 4/25-6/21/96 55.000 54.514 .52
Ford Credit Europe PLC 5.18%-5.34% due 4/8-5/8/96 52.500 52.332 .50
National Australia Funding (Delaware)
5.20%-5.335% due 4/15-6/10/96 50.000 49.766 .48
Toronto-Dominion Holdings USA Inc.
5.07%-5.36% due 4/3-7/1/96 47.550 47.275 .46
PepsiCo, Inc. 5.18%-5.25% due 4/9-4/26/96 45.600 45.483 .44
John Deere Capital Corp. 5.14%-5.31%
due 4/18-4/24/96 40.000 39.887 .38
Ford Motor Credit Co. 5.17%-5.29% due 4/8-5/28/96 36.900 36.768 .35
Wal-Mart Stores, Inc. 5.22%-5.30% due 4/4-4/19/96 34.300 34.228 .33
Commerzbank U.S. Finance Inc. 5.17% due 4/1/96 25.400 25.396 .24
ABN AMRO North America Finance Inc. 5.06%
due 5/6/96 20.500 20.394 .20
Certificates of Deposit- 1.73%
Bayerische Landesbank Girozentrale 5.43% due 4/4/96 25,000 25.000 .24
Commerzbank AG 5.15%-5.36% due 5/20-5/31/96 41,000 40.992 .39
National Westminster Bank PLC 5.18%-5.33%
due 4/23-5/21/96 64,000 64.001 .62
Societe Generale 5.23%-5.41% due 4/15-5/1/96 50,000 50.007 .48
Federal Agency Discount Notes- 1.44%
Federal Home Loan Mortgage Corp.
5.04%-5.29% due 4/22-6/7/96 85.900 85.124 .82
Federal National Mortgage Assn.
5.00%-5.06% due 4/23-5/30/96 64.700 64.210 .62
--------- -------
TOTAL SHORT-TERM SECURITIES
(cost: $1,412.449 million) 1,412.360 13.59
Excess of payables over cash and
receivables 75.794 .73
--------- -------
TOTAL SHORT-TERM SECURITIES AND NET CASH 1,336.566 12.86
--------- -------
NET ASSETS $10,393.846 100.00%
========= =======
</TABLE>
/1/ Non-income-producing securities
/2/ Purchased in a private placement transaction; resale to the public may
require registration or may extend only to qualified institutional buyers.
See Notes to Financial Statements
New Perspective Fund
Financial Statements
<TABLE>
<CAPTION>
Unaudited
- ---------------------------------------------- ----------- -----------
Statement of Assets and Liabilities (dollars in
at March 31, 1996 millions)
- ---------------------------------------------- ----------- -----------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $6,708.595) $9,057.280
Short-term securities
(cost: $1,412.449) 1,412.360
Cash .562
Receivables for-
Sales of investments $27.466
Sales of fund's shares 35.061
Dividends and accrued interest 19.579 82.106
----------- -----------
10,552.308
Liabilities:
Payables for-
Purchases of investments 147.198
Repurchases of fund's shares 5.521
Management services 3.636
Accrued expenses 2.107 158.462
----------- -----------
Net Assets at March 31, 1996-
Equivalent to $17.18 per share on
605,128,166 shares of $1 par value
capital stock outstanding (authorized
capital stock--1,000,000,000 shares) $10,393.846
===========
Unaudited
Statement of Operations (dollars in
for the six months ended March 31, 1996 millions)
- ---------------------------------------------- ----------- -----------
Investment Income:
Income:
Dividends $56.281
Interest 43.571 $99.852
-----------
Expenses:
Management services fee 20.198
Distribution expenses 10.529
Transfer agent fee 5.075
Reports to shareholders .650
Registration statement and prospectus .945
Postage, stationery and supplies .712
Directors' and Advisory Board fees .112
Auditing and legal fees .071
Custodian fee 1.421
Taxes other than federal
income tax .138
Other expenses .015 39.866
----------- -----------
Net investment income 59.986
-----------
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 299.646
Net unrealized appreciation:
Beginning of period 2,116.350
End of period 2,348.570 232.220
----------- -----------
Net realized gain and unrealized appreciation
on investments 531.866
-----------
Net Increase in Net Assets Resulting
from Operations $591.852
===========
See Notes to Financial Statements
- ---------------------------------------------- ----------- -----------
Statement of Changes in Net Assets (dollars in
millions)
Six months ended Year ended
March 31, September 30,
1996* 1995
- ---------------------------------------------- ----------- -----------
Operations:
Net investment income $59.986 $155.900
Net realized gain on investments 299.646 308.729
Net unrealized appreciation
on investments 232.220 843.525
----------- -----------
Net increase in net assets
resulting from operations 591.852 1,308.154
----------- -----------
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (118.584) (105.752)
Distributions from net realized gain on
investments (326.785) (355.971)
----------- -----------
Total dividends and distributions (445.369) (461.723)
----------- -----------
Capital Share Transactions:
Proceeds from shares sold: 86,434,215
and 136,794,997 shares, respectively 1,452.934 2,129.286
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 25,894,858 and 30,235,980 shares,
respectively 419.460 432.534
Cost of shares repurchased: 26,311,136
and 55,659,438 shares, respectively (442.031) (869.751)
----------- -----------
Net increase in net assets resulting from
capital share transactions 1,430.363 1,692.069
----------- -----------
Total Increase in Net Assets 1,576.846 2,538.500
Net Assets:
Beginning of period 8,817.000 6,278.500
----------- -----------
End of period (including undistributed
net investment income: $37,473
and $96,071, respectively) $10,393.846 $8,817.000
=========== ===========
</TABLE>
*Unaudited
See 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 fund seeks long-term growth of capital through investments all over the
world, including the United States. 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 are valued at the mean of their quoted bid and asked
prices. Short-term securities with 60 days or less to maturity are valued at
amortized cost, which approximates market value. Securities for which market
quotations are not readily available are valued at fair value as determined in
good faith by the Valuation Committee of the Board of Directors.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Dividend and interest income is reported on the accrual basis. Discounts
on securities purchased are amortized over the life of the respective
securities. The fund does not amortize premiums on securities purchased.
Dividends and distributions paid to shareholders are recorded on the
ex-dividend date.
Investment securities and other assets and liabilities denominated in
non-U.S. currencies are recorded in the financial statements after translation
into U.S. dollars utilizing rates of exchange on the last business day of the
period. 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 $1,421,000 includes $90,000 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 March 31, 1996, net unrealized appreciation on investments for
federal income tax purposes aggregated $2,349,584,000, of which $2,574,314,000
related to appreciated securities and $224,730,000 related to depreciated
securities. During the six months ended March 31, 1996, the fund realized, on
a tax basis, a net capital gain of $291,712,000 on securities transactions. Net
gains related to non-U.S. currency transactions of $7,934,000 were treated as
ordinary income for federal income tax purposes. The capital gain distribution
paid in December 1995 includes $4,830,000 of realized non-U.S. currency gains.
The cost of portfolio securities for federal income tax purposes was
$8,120,056,000 at March 31, 1996.
3. The fee of $20,198,000 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; 0.395% of
such assets in excess of $6.5 billion but not exceeding $10.5 billion; and
0.391% of such assets in excess of $10.5 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 six months ended March 31,
1996, distribution expenses under the Plan were $10,529,000. As of March 31,
1996, accrued and unpaid distribution expenses were $1,458,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $5,075,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $6,537,822 (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 Boards. Amounts deferred are not funded and are general unsecured
liabilities of the fund. As of March 31, 1996, aggregate amounts deferred and
earnings thereon were $209,000.
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 March 31, 1996, accumulated undistributed net realized gain on
investments was $237,986,000 and paid-in capital was $7,153,625,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $2,052,622,000 and $889,266,000, respectively, during
the six months ended March 31, 1996.
Dividend and interest income is recorded net of non-U.S. taxes paid. For
the six months ended March 31, 1996, such non-U.S. taxes were $4,414,000. Net
realized currency gains on dividends, interest, withholding taxes reclaimable,
and sales of non-U.S. bonds and notes were $4,115,000 for the six months ended
March 31, 1996.
Per-Share Data and Ratios
<TABLE>
<CAPTION>
Six Year ended
months September
ended 30
3/31/96(1) 1995 1994 1993 1992 1991
--------- -------- ------- ----- ------- -----
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of $16.98 $15.40 $14.21 $12.25 $11.77 $10.16
Period
--------- -------- ------- ----- ------- -----
Income from Investment Operations:
Net investment income .10 .31 .22 .17 .21 .29
Net realized and unrealized gain
on investments .93 2.35 1.54 2.04 .71 2.05
--------- -------- ------- ----- ------- -----
Total income from
investment operations 1.03 2.66 1.76 2.21 .92 2.34
--------- -------- ------- ----- ------- -----
Less Distributions:
Dividends from net
investment income (.221) (.237) (.173) (.178) (.24) (.30)
Dividends from net realized
non-U.S. currency gains (2) (.009) (.003) (.027) (.022) - -
Distributions from net
realized gains (.600) (.840) (.370) (.050) (.20) (.43)
--------- -------- ------- ----- ------- -----
Total distributions (.83) (1.08) (.57) (.25) (.44) (.73)
--------- -------- ------- ----- ------- -----
Net Asset Value, End of Period $17.18 $16.98 $15.40 $14.21 $12.25 $11.77
========= ======== ======= ===== ======= =====
Total Return(3) 6.36%(4) 18.63% 12.61% 18.34% 8.04% 23.86%
Ratios/Supplemental Data:
Net assets, end of
period (in millions) $10,394 $8,817 $6,279 $4,417 $3,082 $2,213
Ratio of expenses to average
net assets .42%(4) .83% .84% .87% .85% .86%
Ratio of net income to
average net assets .63%(4) 2.12% 1.48% 1.40% 1.82% 2.80%
Average commissions paid (5) 4.15cents .72cents(1) 1.05cents(1) 1.74cents(1) 3.02cents(1) 4.04cents(1)
Portfolio turnover rate 11.06%(4) 22.40% 25.33% 15.02% 6.43% 8.16%
</TABLE>
(1) Unaudited
(2) Realized non-U.S. currency gains are treated as ordinary income for federal
income tax purposes.
(3)Calculated without deducting a sales charge. The maximum sales charge is
5.75% of the fund's offering price.
(4)Based on operations for six months and, accordingly, not representative of a
full year's operations.
(5)Brokerage commissions paid on portfolio transactions increase the cost of
securities purchased or reduce the proceeds of securities sold, and are not
reflected in the fund's statement of operations. Shares traded on a principal
basis are excluded. Generally, non-U.S. commissions are lower than U.S.
commissions when expressed as cents per share but higher when expressed as a
percentage of transactions because of the lower per-share prices of many
non-U.S. securities.
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
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
June 30, 1996, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
Litho in USA AGD/GRS/2978
Lit. No. NPF-013-0596
[The American Funds Group(r)]
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