THE FUND PROVIDES SPANISH TRANSLATIONS IN CONNECTION WITH THE PUBLIC OFFERING
AND SALE OF ITS SHARES. THE FOLLOWING IS A FAIR AND ACCURATE ENGLISH
TRANSLATION OF A SPANISH LANGUAGE PROSPECTUS FOR THE FUND.
/s/ Vincent P. Corti
Vincent P. Corti
Secretary
<PAGE>
- --------------------------------------------------------------------------------
NEW PERSPECTIVE FUND(r)
PROSPECTUS
DECEMBER 1, 1998
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED OF THESE
SECURITIES. FURTHER, IT HAS NOT DETERMINED THAT THIS PROSPECTUS IS TRUTHFUL OR
COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
NEW PERSPECTIVE FUND, INC.
333 South Hope Street
Los Angeles, CA 90071
TICKER SYMBOL: ANWPX NEWSPAPER ABBREV.: N Per FUND NO.: 07
- -------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<S> <C>
Risk/Return Summary 2
........................................................................
Fees and Expenses of the Fund 5
........................................................................
Investment Objectives, Strategies and Risks 6
........................................................................
Important Recent Developments 8
........................................................................
Management and Organization 9
........................................................................
Shareholder Information 11
........................................................................
Purchase and Exchange of Shares 12
........................................................................
Distribution Arrangements 16
........................................................................
Financial Highlights 17
</TABLE>
- -------------------------------------------------------------------
07-010-1298/MC NEW PERSPECTIVE FUND / PROSPECTUS 1
<PAGE>
- --------------------------------------------------------------------------------
RISK/RETURN SUMMARY
The fund seeks to make your investment grow over time by investing in stocks of
companies located around the world. Providing you with future income is a
secondary objective.
The fund is designed for investors seeking capital appreciation through stocks.
Investors in the fund should have a long-term perspective and be able to
tolerate potentially wide price fluctuations. An investment in the fund is
subject to risks, including the possibility that the fund may decline in value
in response to certain events, such as changes in markets or economies. In
addition, the prices of equity securities held by the fund may be affected by
events specifically involving the issuers of these securities.
Although all securities in the fund's portfolio, including U.S. securities, may
be adversely affected by currency fluctuations or world political, social and
economic instability, investments outside the U.S. may be affected to a greater
extent.
You may lose money by investing in the fund. The likelihood of loss is greater
if you invest for a shorter period of time. Your investment in the fund is not a
bank deposit and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency, entity or person.
2 NEW PERSPECTIVE FUND / PROSPECTUS
<PAGE>
INVESTMENT RESULTS
The following information illustrates how the fund's results may vary:
Here are the fund's results calculated without a sales charge on a CALENDAR
YEAR basis. (If a sales charge were included, results would be lower.)
<TABLE>
<S> <C>
88 10.39%
89 25.91%
90 -2.08%
91 22.64%
92 3.98%
93 26.98%
94 2.97%
95 20.43%
96 17.28%
97 14.98%
</TABLE>
THE FUND'S YEAR-TO-DATE RETURN FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
WAS 6.45%.
The fund's highest/lowest QUARTERLY results during this time period were:
X HIGHEST 11.96% (quarter ended June 30, 1997)
X LOWEST -14.04% (quarter ended September 30, 1990)
NEW PERSPECTIVE FUND / PROSPECTUS 3
<PAGE>
For periods ended December 31, 1997:
<TABLE>
<CAPTION>
THE FUND WITH
MAXIMUM MSCI MSCI
AVERAGE ANNUAL SALES CHARGE WORLD USA
TOTAL RETURN DEDUCTED(1) INDEX(2) INDEX(3)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------
One Year 8.36% 16.23% 34.09%
..................................................................................
Five Years 14.88% 15.88% 20.88%
..................................................................................
Ten Years 13.26% 11.14% 18.42%
..................................................................................
Lifetime(4) 14.48% 11.83% 12.99%
</TABLE>
(1) THESE FUND RESULTS WERE CALCULATED ACCORDING TO A FORMULA WHICH REQUIRES
THAT THE MAXIMUM SALES CHARGE OF 5.75% BE DEDUCTED. RESULTS WOULD BE HIGHER
IF THEY WERE CALCULATED AT NET ASSET VALUE.
(2) MORGAN STANLEY CAPITAL INTERNATIONAL WORLD INDEX MEASURES 23 MAJOR STOCK
MARKETS THROUGHOUT THE WORLD, INCLUDING THE U.S. THIS INDEX IS UNMANAGED AND
DOES NOT REFLECT SALES CHARGES, COMMISSIONS OR EXPENSES.
(3) MORGAN STANLEY CAPITAL INTERNATIONAL USA INDEX MEASURES THE U.S. PORTION OF
THE WORLD MARKET. THIS INDEX IS UNMANAGED AND DOES NOT REFLECT SALES
CHARGES, COMMISSIONS OR EXPENSES.
(4) THE FUND BEGAN INVESTMENT OPERATIONS ON MARCH 13, 1973.
These results illustrate the potential fluctuations in the fund's results over
shorter periods of time. In addition, past results are not an indication of
future results.
4 NEW PERSPECTIVE FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------
FEES AND EXPENSES OF THE FUND
THE FOLLOWING DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY IF YOU BUY AND
HOLD SHARES OF THE FUND.
SHAREHOLDER FEES
(FEES PAID DIRECTLY FROM YOUR INVESTMENT)
<TABLE>
<S> <C>
- -------------------------------------------------
Maximum sales charge imposed on
purchases
(AS A PERCENTAGE OF OFFERING PRICE) 5.75%(1)
................................................
Maximum sales charge imposed on
reinvested dividends 0%
................................................
Maximum deferred sales charge (20%)
................................................
Redemption or exchange fees 0%
</TABLE>
(1) SALES CHARGES ARE REDUCED OR ELIMINATED FOR LARGER PURCHASES.
(2) A CONTINGENT DEFERRED SALES CHARGE OF 1% APPLIES ON CERTAIN REDEMPTIONS MADE
WITHIN 12 MONTHS FOLLOWING ANY PURCHASES YOU MADE WITHOUT A SALES CHARGE.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
<TABLE>
<S> <C>
- ---------------------------------------------
Management Fees 0.41%
............................................
Service (12b-1) Fees 0.23%*
............................................
Other Expenses 0.13%
............................................
Total Annual Fund Operating Expenses 0.77%
</TABLE>
*12b-1 EXPENSES MAY NOT EXCEED 0.25% OF THE FUND'S AVERAGE NET ASSETS ANNUALLY.
EXAMPLE
This Example is intended to help you compare the costs of investing in the fund
with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
<TABLE>
<S> <C>
- -----------------------------------------------
One year $649
..............................................
Three years $807
..............................................
Five years $978
..............................................
Ten years $1,474
</TABLE>
NEW PERSPECTIVE FUND / PROSPECTUS 5
<PAGE>
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVES, STRATEGIES AND RISKS
The fund's primary investment objective is to provide you with long-term growth
of capital. Future income is a secondary objective. It invests primarily in
common stocks, including growth-oriented stocks, on a global basis to take
advantage of investment opportunities generated by changes in international
trade patterns and economic and political relationships.
The prices of equity securities held by the fund may decline in response to
certain events including those directly involving issuers of these securities,
adverse conditions affecting the general economy, or overall market declines.
The growth-oriented, equity-type securities generally purchased by the fund may
involve large price swings and potential for loss. In addition, the value of
non-U.S. securities can decline in response to various factors including
currency fluctuations, political, social and economic instability, differing
securities regulations, and administrative difficulties such as delays in
clearing and settling portfolio transactions.
The fund may also invest in cash and cash equivalents, for example, in response
to abnormal market conditions. The extent of the fund's cash position will
depend on market conditions, fund purchases and redemptions, and other factors.
This may detract from achievement of the fund's objectives over the short-term
or it may protect the fund during a market downturn.
The fund relies on the professional judgment of its investment adviser, Capital
Research and Management Company, to make decisions about the fund's portfolio
securities. The basic investment philosophy of Capital Research and Management
Company is to seek undervalued securities that represent good long-term
investment opportunities.
6 NEW PERSPECTIVE FUND / PROSPECTUS
<PAGE>
THE FOLLOWING CHART ILLUSTRATES THE INDUSTRY MIX OF THE FUND'S INVESTMENT
PORTFOLIO AS OF THE END OF THE FUND'S FISCAL YEAR, SEPTEMBER 30, 1998.
[begin pie chart]
LARGEST INDUSTRY HOLDINGS
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<S> <C>
Telecommunications 12.25%
Health & Personal Care 10.92%
Broadcasting & Pub-
lishing 7.11%
Electrical & Electron-
ics 6.00%
Electronic Components 4.15%
Other Industries 43.87%
Cash and Equivalents 15.70%
</TABLE>
[end pie chart]
<TABLE>
<CAPTION>
PERCENT OF
PERCENT INVESTED BY COUNTRY NET ASSETS
<S> <C>
- ------------------------------------------
ASIA/PACIFIC RIM 8.7%
Japan 5.0
Australia 2.6
Hong Kong .7
New Zealand .3
South Korea .1
.........................................
EUROPE 32.5%
United Kingdom 6.7
France 5.8
Germany 5.1
Sweden 3.7
Netherlands 2.9
Switzerland 2.5
Finland 2.2
Spain 1.6
Italy 1.1
Denmark .6
Norway .2
Luxembourg .1
.........................................
NORTH AMERICA 40.3%
United States 34.3
Canada 4.9
Mexico 1.1
.........................................
OTHER 2.8%
.........................................
</TABLE>
<TABLE>
<CAPTION>
TEN LARGEST INDIVIDUAL PERCENT OF
HOLDINGS NET ASSETS
<S> <C>
- ------------------------------------------
Pfizer 2.9%
.........................................
Time Warner 2.6
.........................................
Philip Morris 2.4
.........................................
Astra 2.1
.........................................
Viacom 2.0
.........................................
Nokia 2.0
.........................................
Mannesmann 2.0
.........................................
Novartis 1.8
.........................................
Telefonica 1.5
.........................................
Micron Technology 1.3
.........................................
</TABLE>
BECAUSE THE FUND IS ACTIVELY MANAGED, ITS HOLDINGS WILL CHANGE FROM TIME TO
TIME.
NEW PERSPECTIVE FUND / PROSPECTUS 7
<PAGE>
- -------------------------------------------------------------------
IMPORTANT RECENT DEVELOPMENTS
YEAR 2000
The date-related computer issue known as the "Year 2000 problem" could have an
adverse impact on the quality of services provided to the fund and its
shareholders. However, the fund understands that its key service providers --
including the investment adviser and its affiliates -- are taking steps to
address the issue. In addition, the Year 2000 problem may adversely affect the
issuers in which the fund invests. For example, issuers may incur substantial
costs to address the problem. They may also suffer losses caused by corporate
and governmental data processing errors. The fund and its investment adviser
will continue to monitor developments relating to this issue.
EURO INTRODUCTION
On January 1, 1999, the European Union will introduce a single European
currency, the Euro. The first group of countries that will begin to convert
their currencies to the Euro include Austria, Belgium, Finland, France, Germany,
Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. The expected
introduction of the Euro presents unique uncertainties, including: whether the
payment and operational systems of banks and other financial institutions will
be ready by the scheduled launch date; the legal treatment of certain
outstanding financial contracts after January 1, 1999 that refer to existing
currencies rather than the Euro; and the creation of suitable clearing and
settlement payment systems for the new currency. These or other factors,
including political and economic risks, could cause market disruptions before or
after the introduction of the Euro. The fund understands that the investment
adviser and other key service providers are taking steps to address Euro-related
issues.
8 NEW PERSPECTIVE FUND / PROSPECTUS
<PAGE>
- -------------------------------------------------------------------
MANAGEMENT AND ORGANIZATION
INVESTMENT ADVISER
Capital Research and Management Company, an experienced investment management
organization founded in 1931, serves as investment adviser to the fund and other
funds, including those in The American Funds Group. Capital Research and
Management Company, a wholly owned subsidiary of The Capital Group Companies,
Inc., is headquartered at 333 South Hope Street, Los Angeles, CA 90071. Capital
Research and Management Company manages the investment portfolio and business
affairs of the fund. The total management fee paid by the fund, as a percentage
of average net assets, for the previous fiscal year is indicated earlier under
"Fees and Expenses of the Fund."
Capital Research and Management Company and its affiliated companies have
adopted a personal investing policy that is consistent with the recommendations
contained in the May 9, 1994 report issued by the Investment Company Institute's
Advisory Group on Personal Investing. This policy has also been incorporated
into the fund's code of ethics.
MULTIPLE PORTFOLIO COUNSELOR SYSTEM
Capital Research and Management Company uses a system of multiple portfolio
counselors in managing mutual fund assets. Under this system the portfolio of a
fund is divided into segments which are managed by individual counselors.
Counselors decide how their respective segments will be invested (within the
limits provided by a fund's objective(s) and policies and by Capital Research
and Management Company's investment committee). In addition, Capital Research
and Management Company's research professionals may make investment decisions
with respect to a portion of a fund's portfolio. The primary individual
portfolio counselors for New Perspective Fund are listed on the following page.
NEW PERSPECTIVE FUND / PROSPECTUS 9
<PAGE>
<TABLE>
<CAPTION>
APPROXIMATE YEARS OF
EXPERIENCE AS AN
INVESTMENT PROFESSIONAL
(INCLUDING THE LAST
FIVE YEARS)
WITH CAPITAL
YEARS OF EXPERIENCE AS RESEARCH AND
PORTFOLIO COUNSELOR FOR MANAGEMENT
PORTFOLIO COUNSELORS FOR NEW PERSPECTIVE FUND COMPANY OR
NEW PERSPECTIVE FUND PRIMARY TITLE(S) (APPROXIMATE) AFFILIATES TOTAL YEARS
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
WILLIAM R. GRIMSLEY Senior Vice President of the 26 years (since the fund began 29 years 36 years
fund. Senior Vice President operations)
and Director, Capital Research
and Management Company
- -------------------------------------------------------------------------------------------------------------------------
GREGG E. IRELAND Senior Vice President of the 6 years (plus 7 years as a 26 years 26 years
fund. Senior Vice President, research professional prior to
Capital Research and becoming a portfolio counselor
Management Company for the fund)
- -------------------------------------------------------------------------------------------------------------------------
THIERRY VANDEVENTER Senior Vice President of the 20 years (plus 5 years as a 35 years 35 years
fund. Director, research professional prior to
Capital Research and becoming a portfolio counselor
Management Company for the fund)
- -------------------------------------------------------------------------------------------------------------------------
MARK E. DENNING Director, Capital Research and 6 years (plus 4 years as a 16 years 16 years
Management Company research professional prior to
becoming a portfolio counselor
for the fund)
- -------------------------------------------------------------------------------------------------------------------------
WILLIAM C. NEWTON Senior Partner, 26 years (since the fund began 39 years 46 years
The Capital Group Partners operations)
L.P.*
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
THE FUND BEGAN INVESTMENT OPERATIONS ON MARCH 13, 1973.
* COMPANY AFFILIATED WITH CAPITAL RESEARCH AND MANAGEMENT COMPANY
10 NEW PERSPECTIVE FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------
SHAREHOLDER INFORMATION
SHAREHOLDER SERVICES
American Funds Service Company, the fund's transfer agent, offers you a wide
range of services you can use to alter your investment program should your needs
and circumstances change. These services are available only in states where they
may be legally offered and may be terminated or modified at any time upon 60
days' written notice. For your convenience, American Funds Service Company has
four service centers across the country.
AMERICAN FUNDS SERVICE COMPANY SERVICE AREAS
CALL TOLL-FREE FROM ANYWHERE IN THE U.S.
(8 A.M. TO 8 P.M. ET):
800/421-0180
[MAP]
<TABLE>
<S> <C> <C> <C>
WESTERN SERVICE WESTERN CENTRAL EASTERN CENTRAL EASTERN SERVICE
CENTER SERVICE CENTER SERVICE CENTER CENTER
American Funds American Funds American Funds American Funds
Service Company Service Company Service Company Service Company
P.O. Box 2205 P.O. Box 659522 P.O. Box 6007 P.O. Box 2280
Brea, California San Antonio, Texas Indianapolis, Norfolk, Virginia
92822-2205 78265-9522 Indiana 23501-2280
Fax: 714/671-7080 Fax: 210/474-4050 46206-6007 Fax: 757/670-4773
Fax: 317/735-6620
</TABLE>
A COMPLETE DESCRIPTION OF THE SERVICES WE OFFER IS DESCRIBED IN THE FUND'S
STATEMENT OF ADDITIONAL INFORMATION. In addition, an easy-to-read guide to
owning a fund in The American Funds Group titled "Welcome to the Family" is sent
to new shareholders and is available by writing or calling American Funds
Service Company.
YOU MAY INVEST IN THE FUND THROUGH VARIOUS RETIREMENT PLANS. However, some
retirement plans or accounts held by investment dealers may not offer certain
services. If you have any questions, please contact your plan
administrator/trustee or dealer.
NEW PERSPECTIVE FUND / PROSPECTUS 11
<PAGE>
- --------------------------------------------------------------------------------
PURCHASE AND EXCHANGE OF SHARES
PURCHASE
Generally, you may open an account by contacting any investment dealer
authorized to sell the fund's shares. You may purchase additional shares using
various options described in the statement of additional information and
"Welcome to the Family."
EXCHANGE
You may exchange your shares into other funds in The American Funds Group
generally without a sales charge. Exchanges of shares from the money market
funds initially purchased without a sales charge generally will be subject to
the appropriate sales charge. Exchanges have the same tax consequences as
ordinary sales and purchases. See "Transactions by Telephone..." for information
regarding electronic exchanges.
THE FUND AND AMERICAN FUNDS DISTRIBUTORS, THE FUND'S PRINCIPAL UNDERWRITER,
RESERVE THE RIGHT TO REJECT ANY PURCHASE ORDER FOR ANY REASON. ALTHOUGH THERE IS
CURRENTLY NO SPECIFIC LIMIT ON THE NUMBER OF EXCHANGES YOU CAN MAKE IN A PERIOD
OF TIME, THE FUND AND AMERICAN FUNDS DISTRIBUTORS RESERVE THE RIGHT TO REJECT
ANY PURCHASE ORDER AND MAY TERMINATE THE EXCHANGE PRIVILEGE OF ANY INVESTOR
WHOSE PATTERN OF EXCHANGE ACTIVITY THEY HAVE DETERMINED INVOLVES ACTUAL OR
POTENTIAL HARM TO THE FUND.
INVESTMENT MINIMUMS
<TABLE>
<S> <C>
- ------------------------------------------------------------------
To establish an account $250
For a retirement plan account $250
For a retirement plan account through payroll deduction $ 25
To add to an account $ 50
For a retirement plan account through payroll deduction $ 25
</TABLE>
SHARE PRICE
The fund calculates its share price, also called net asset value, as of 4:00 pm
New York time, which is the normal close of trading on the New York Stock
Exchange, every day the Exchange is open. In calculating net asset value, market
prices are used when available. If a market price for a particular security is
not available, the fund will determine the appropriate price for the security.
12 NEW PERSPECTIVE FUND / PROSPECTUS
<PAGE>
Your shares will be purchased at the offering price, or sold at the net asset
value, next determined after American Funds Service Company receives and accepts
your request. The offering price is the net asset value plus a sales charge, if
applicable.
SALES CHARGE
A sales charge may apply to your purchase. Your sales charge may be reduced for
larger purchases as indicated below.
<TABLE>
<CAPTION>
SALES CHARGE AS A PERCENTAGE OF
.................................
NET DEALER CONCESSION
OFFERING AMOUNT AS % OF
INVESTMENT PRICE INVESTED OFFERING PRICE
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
Less than $50,000 5.75% 6.10% 5.00%
.......................................................................................................
$50,000 but less than $100,000 4.50% 4.71% 3.75%
.......................................................................................................
$100,000 but less than $250,000 3.50% 3.63% 2.75%
.......................................................................................................
$250,000 but less than $500,000 2.50% 2.56% 2.00%
.......................................................................................................
$500,000 but less $1 million 2.00% 2.04% 1.60%
.......................................................................................................
$1 million or more and certain other
investments described below see below see below see below
</TABLE>
PURCHASES NOT SUBJECT TO SALES CHARGE
Investments of $1 million or more and investments made by employer-sponsored
defined contribution-type plans with 100 or more eligible employees are sold
with no initial sales charge. A 1% CONTINGENT DEFERRED SALES CHARGE MAY BE
IMPOSED ON CERTAIN REDEMPTIONS BY ACCOUNTS THAT INVEST WITH NO INITIAL SALES
CHARGE (OTHER THAN EMPLOYER-SPONSORED PLANS), IF REDEMPTIONS ARE MADE WITHIN ONE
YEAR OF PURCHASE. A dealer concession of up to 1% may be paid by the fund under
its Plan of Distribution and/or by American Funds Distributors on investments
made with no initial sales charge.
REDUCING YOUR SALES CHARGE
You and your immediate family may combine investments to reduce your sales
charge. You must let your investment dealer or American Funds Service Company
know if you qualify for a reduction in your sales charge using one or any
combination of the methods described in the statement of additional information
and "Welcome to the Family."
NEW PERSPECTIVE FUND / PROSPECTUS 13
<PAGE>
PLAN OF DISTRIBUTION
The fund has a Plan of Distribution or "12b-1 Plan" under which it may finance
activities primarily intended to sell shares, provided the categories of
expenses are approved in advance by the fund's board of directors. Up to 0.25%
of average net assets is paid annually to qualified dealers for providing
certain services pursuant to the fund's Plan of Distribution. The 12b-1 fee, as
a percentage of average net assets, paid by the fund for the previous fiscal
year is indicated earlier under "Fees and Expenses of the Fund." Since these
fees are paid out of the fund's assets on an ongoing basis, over time they will
increase the cost of an investment and may cost you more than paying higher
initial sales charges.
OTHER COMPENSATION TO DEALERS
American Funds Distributors may provide additional compensation to, or sponsor
informational meetings for, dealers as described in the statement of additional
information.
HOW TO SELL SHARES
Once a sufficient period of time has passed to reasonably assure that checks or
drafts (including certified or cashiers' checks) for shares purchased have
cleared (normally 15 calendar days), you may sell (redeem) those shares in any
of the following ways:
THROUGH YOUR DEALER (CERTAIN CHARGES MAY APPLY)
- SHARES HELD FOR YOU IN YOUR DEALER'S NAME MUST BE SOLD THROUGH THE DEALER.
WRITING TO AMERICAN FUNDS SERVICE COMPANY
- Requests must be signed by the registered shareholder(s)
- A signature guarantee is required if the redemption is:
-- Over $50,000;
-- Made payable to someone other than the registered shareholder(s); or
-- Sent to an address other than the address of record, or an address of
record which has been changed within the last 10 days.
- Additional documentation may be required for sales of shares held in
corporate, partnership or fiduciary accounts.
14 NEW PERSPECTIVE FUND / PROSPECTUS
<PAGE>
TELEPHONING OR FAXING AMERICAN FUNDS SERVICE COMPANY, OR BY USING AMERICAN
FUNDSLINE-REGISTERED TRADEMARK- OR AMERICAN FUNDSLINE
ONLINE-REGISTERED TRADEMARK-:
- Redemptions by telephone or fax (including American FundsLine and American
FundsLine OnLine) are limited to $50,000 per shareholder each day
- Checks must be made payable to the registered shareholder
- Checks must be mailed to an address of record that has been used with the
account for at least 10 days
TRANSACTIONS BY TELEPHONE, FAX, AMERICAN FUNDSLINE, OR AMERICAN FUNDSLINE ONLINE
Generally, you are automatically eligible to use these services for redemptions
and exchanges unless you notify us in writing that you do not want any or all of
these services. You may reinstate these services at any time.
Unless you decide not to have telephone, fax, or computer services on your
account(s), you agree to hold the fund, American Funds Service Company, any of
its affiliates or mutual funds managed by such affiliates, and each of their
respective directors, trustees, officers, employees and agents harmless from any
losses, expenses, costs or liabilities (including attorney fees) which may be
incurred in connection with the exercise of these privileges, provided American
Funds Service Company employs reasonable procedures to confirm that the
instructions received from any person with appropriate account information are
genuine. If reasonable procedures are not employed, the fund may be liable for
losses due to unauthorized or fraudulent instructions.
NEW PERSPECTIVE FUND / PROSPECTUS 15
<PAGE>
- -------------------------------------------------------------------
DISTRIBUTION ARRANGEMENTS
DIVIDENDS AND DISTRIBUTIONS
The fund intends to distribute dividends to you, usually in December. Capital
gains, if any, are usually distributed in December.
You may elect to reinvest dividends and/or capital gain distributions to
purchase additional shares of this fund or any other fund in The American Funds
Group or you may elect to receive them in cash.
TAX CONSEQUENCES
Dividends and capital gains are generally taxable whether they are reinvested or
received in cash -- unless you are exempt from taxation or entitled to tax
deferral. Capital gains may be taxed at different rates depending on the length
of time the fund holds its assets.
You must provide the fund with a certified correct taxpayer identification
number (generally your Social Security Number) and certify that you are not
subject to backup withholding. If you fail to do so, the IRS can require the
fund to withhold 31% of your taxable distributions and redemptions. Federal law
also requires the fund to withhold 30% of the applicable tax treaty rate from
dividends paid to certain non-resident alien, non-U.S. partnership and non-U.S.
corporation shareholder accounts.
Please see the statement of additional information, "Welcome to the Family," and
your tax adviser for further information.
16 NEW PERSPECTIVE FUND / PROSPECTUS
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand the fund's
results for the past five years. Certain information reflects financial results
for a single fund share. The total returns in the table represent the rate that
an investor would have earned or lost on an investment in the fund (assuming
reinvestment of all dividends and distributions). This information has been
audited by PricewaterhouseCoopers LLP, whose report, along with the fund's
financial statements, are included in the statement of additional information,
which is available upon request.
<TABLE>
<CAPTION>
YEARS ENDED SEPTEMBER 30
...............................................
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
-------------------------------------------
Net asset value,
beginning of period $21.86 $17.77 $16.98 $15.40 $14.21
- ------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income .27 .29 .32 .31 .22
...................................................................................
Net gains or losses on securities (both
realized and unrealized) (.11) 4.81 1.40 2.35 1.54
- ------------------------------------------------------------------------------------
Total from investment operations .16 5.10 1.72 2.66 1.76
- ------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Dividends (from net investment income) (.31) (.323) (.321) (.237) (.173)
...................................................................................
Dividends (from net realized non-U.S.
currency gains)(1) -- (.007) (.009) (.003) (.027)
...................................................................................
Distributions (from capital gains) (1.21) (.680) (.600) (.840) (.370)
...................................................................................
Total distributions (1.52) (1.01) (.93) (1.08) (.57)
- ------------------------------------------------------------------------------------
Net asset value, end of period $20.50 $21.86 $17.77 $16.98 $15.40
- ------------------------------------------------------------------------------------
Total return(2) 1.23% 29.97% 10.64% 18.63% 12.61%
- ------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period $17,707 $16,956 $11,688 $8,817 $6,279
...................................................................................
Ratio of expenses to average net assets .77% .79% .82% .83% .84%
...................................................................................
Ratio of net income to average net
assets 1.27% 1.56% 2.00% 2.12% 1.48%
...................................................................................
Portfolio turnover rate 29.71% 25.68% 18.12% 22.40% 25.33%
</TABLE>
1 REALIZED NON-U.S. CURRENCY GAINS ARE TREATED AS ORDINARY INCOME FOR FEDERAL
INCOME TAX PURPOSES.
2 EXCLUDES MAXIMUM SALES CHARGE OF 5.75%.
NEW PERSPECTIVE FUND / PROSPECTUS 17
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NOTES
18 NEW PERSPECTIVE FUND / PROSPECTUS
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NOTES
NEW PERSPECTIVE FUND / PROSPECTUS 19
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NOTES
20 NEW PERSPECTIVE FUND / PROSPECTUS
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NOTES
NEW PERSPECTIVE FUND / PROSPECTUS 21
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FOR SHAREHOLDER FOR RETIREMENT PLAN FOR DEALER
SERVICES SERVICES SERVICES
American Funds Call your employer American Funds
Service Company or plan Distributors
800/421-0180 administrator 800/421-9900 ext.11
FOR 24-HOUR INFORMATION
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American American Funds
FundsLine-Registered Internet Web site
Trademark- http://www.americanfunds.com
800/325-3590
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Telephone conversations may be recorded or monitored for verification,
recordkeeping and quality assurance purposes.
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MULTIPLE TRANSLATIONS
This prospectus may be translated into other languages. In the event of any
inconsistencies or ambiguity as to the meaning of any word or phrase in a
translation, the English text will prevail.
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OTHER FUND INFORMATION
ANNUAL/SEMI-ANNUAL REPORT TO SHAREHOLDERS
Contains additional information about the fund including financial
statements, investment results, portfolio holdings, a statement from
portfolio management discussing market conditions and the fund's investment
strategies, and the independent accountants' report (in the annual report).
STATEMENT OF ADDITIONAL INFORMATION (SAI)
Contains more detailed information on all aspects of the fund, including the
fund's financial statements.
A current SAI has been filed with the Securities and Exchange Commission
("SEC") and is incorporated by reference into this prospectus. The SAI and
other related materials about the fund are available for review or to be
copied at the SEC's Public Reference Room (1-800-SEC-0330) or on the SEC's
Internet Web site at http://www.sec.gov.
CODE OF ETHICS
Includes a description of the fund's personal investing policy.
To request a free copy of any of the documents above:
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Call American Funds or Write to the Secretary of the
Service Company fund
800/421-0180 ext.1 333 South Hope Street
Los Angeles, California 90071
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Investment Company File No. 811-2333 [LOGO] Printed on recycled paper
