[The American Funds Group(r)]
NEW PERSPECTIVE FUND
1998 Semi-Annual Report
for the six months ended March 31
[sketch: one dimensional view of globe]
New Perspective Fund(r) seeks long-term growth of capital through investments
all over the world, including the United States.
New Perspective Fund is one of the 28 mutual funds in The American Funds
Group(r), managed by Capital Research and Management Company. Since 1931,
Capital has invested with a long-term focus based on thorough research and
attention to risk.
About our cover: The Fuller Projection Dymaxion(tm) map
The word "Dymaxion" and the Fuller Projection Dymaxion Map design are
trademarks of the Buckminster Fuller Institute, Santa Barbara, California,
(c)1938, 1967 & 1992. All rights reserved.
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, 1998,
assuming payment of the 5.75% maximum sales charge at the beginning of the
stated periods (sales charges are lower for accounts of $50,000 or more):
<TABLE>
<CAPTION>
Total Average Annual
Return Compound Return
<S> <C> <C>
10 years +285.80% +14.46%
5 years +121.62% +17.25%
12 months + 21.68% -
</TABLE>
The figures in this report reflect past results and are not predictive of
future 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, the Federal Deposit
Insurance Corporation, or any other agency, entity or person. Investing outside
the United States is subject to additional risks, such as currency fluctuations
and political instability, which are detailed in the fund's prospectus.
Fellow Shareholders:
New Perspective Fund posted a solid gain during the first half of its fiscal
year. For the six months ended March 31, the value of your investment rose 9.8%
if, like most shareholders, you reinvested the income dividend of 19 cents a
share and the capital gain distribution of $1.21 a share, both of which were
paid in December.
Over the six months, the 205 global stock funds tracked by Lipper Analytical
Services rose an average of 7.8% with dividends reinvested. On the same basis,
the unmanaged Morgan Stanley Capital International (MSCI) World Index, which
measures 23 major markets including the U.S., gained 11.7%.
The six months provided a study in contrasts. Markets worldwide declined
sharply soon after the period began. By March, however, most had recovered lost
ground, and many had reached record levels. Asia was the glaring exception,
with markets ending the period lower than where they began.
IN THE UNITED STATES, where NPF had the largest concentration of assets, equity
prices rose 18.1%, as measured by the unmanaged MSCI USA Index. The nation's
"Goldilocks" economy - not too hot, not too cold - once again created a
favorable environment for stocks. Productivity and corporate profits continued
to increase, bolstered by benign inflation, low interest rates and steady
economic growth. The Asian crisis has reduced the possibility of rising
inflation in the near future, as the flood of cheap imports from the region has
put pressure on U.S. manufacturers to keep prices low. At the same time,
companies that do significant business in Asia may see profits squeezed as
demand there contracts. Elsewhere in North America, the Canadian market rose
8.8% in U.S. dollars for the six months. Mexico, on the other hand, was hurt by
falling oil prices and lost 9.5% in dollar terms.
IN EUROPE, markets showed broad strength, with most recording double-digit
gains for the six months. The rise in stock prices was fueled by a heady
combination of positive news on corporate earnings, a wave of industry
consolidations and a strong U.S. dollar, which made European manufacturers more
competitive. Interest rates and inflation remained low throughout the
continent, as governments reduced budget deficits to meet the various criteria
for the European Monetary Union next January.
Many markets outpaced even the U.S. market's impressive gain. They included
Spain, where stock prices rose 36.0% in U.S. dollars, Switzerland (+25.9%),
France (+23.3%) and the U.K. (+18.4%). Italy, where stock prices increased an
astonishing 40.9% for the six-month period, was Europe's biggest gainer. With
more than a third of net assets invested in European companies, the fund was
well-positioned to take advantage of the market's strength.
WHERE NPF'S ASSETS
WERE INVESTED
(percent invested by country)
<TABLE>
<CAPTION>
<S> <C> <C>
3/31/98 9/30/97
ASIA/PACIFIC RIM 10.7% 12.0%
Japan 5.2 5.6
Australia 2.8 3.4
Hong Kong 1.2 1.6
Taiwan .6 .5
New Zealand .5 .8
South Korea .4 .1
EUROPE 34.4% 31.9%
United Kingdom 7.3 6.5
France 6.8 5.6
Sweden 3.6 4.2
Germany 3.5 2.4
Netherlands 3.4 3.6
Switzerland 3.1 3.1
Spain 2.3 2.0
Finland 1.8 1.6
Italy 1.5 1.8
Denmark .6 .4
Norway .4 .6
Luxembourg .1 .1
NORTH AMERICA 40.0% 41.1%
United States 33.2 33.8
Canada 5.4 5.8
Mexico 1.4 1.5
OTHER 3.1% 3.6%
CASH & EQUIVALENTS 11.8% 11.4%
100.0% 100.0%
</TABLE>
IN ASIA AND THE PACIFIC RIM, by contrast, markets fared poorly. Japan, still
struggling with a banking crisis, a weakening yen and stubborn economic
problems, was further battered, sliding 18.0% on top of earlier losses. With
about 5% of net assets invested in Japanese companies, the fund was not immune
to the decline, but the drop in stock prices provided buying opportunities for
a number of Japanese holdings that we believe have good prospects over the long
term.
Meanwhile, Southeast Asia's currency turmoil that began last summer sparked a
chain of market routs that left stocks throughout the region considerably
weaker, particularly when measured in U.S. dollars. Most recovered a bit in the
last quarter as investors cautiously returned to the region. With minimal
investments in Southeast Asia, the crisis had little direct impact on the fund.
As always, our primary focus remains on individual companies, regardless of
region or industry. Of the ten largest holdings in the portfolio, many made
significant contributions to the fund's six-month results. They include Pfizer
(+66.0%), the U.S.-based pharmaceuticals company; Mannesmann (+53.1%), a German
provider of wireless phone service; and U.S. cruise-line operator Carnival
(+50.8%). Viacom (+70.0%), the U.S. entertainment company, recovered from its
doldrums of recent years to post impressive gains.
An emphasis on individual companies can sometimes lead to large concentrations
in sectors where our analysts have found particularly attractive values. A case
in point is telecommunications, the fund's second-largest industry
concentration. Many service providers are benefiting from worldwide
deregulation and are forming alliances at a rapid rate as they expand their
borders of operations. Telef<UNDEF>nica de Espa<UNDEF>a (+39.6%) and Telecom
Italia (+30.1%), for example, have been courted by large long-distance
carriers. Both companies also operate highly profitable mobile phone
businesses. A number of NPF's other telecommunications holdings, such as Tele
Danmark (+71.4%) and MCI (+68.5%), also did extremely well.
All in all, the fund is broadly diversified. As you can see by the listing
beginning on page 4, the 231 companies in the portfolio represented 36
industries and were based in 26 countries on six continents. Most are
businesses with a global focus, seeking to serve a world clientele.
New Perspective Fund's latest six-month return brings its 12-month total return
through March 31, 1998 to +29.1% versus +32.5% for the MSCI World Index and
+27.1% for the Lipper average of global funds. Over longer, more meaningful
periods, NPF has continued to outpace the unmanaged index and its category
average:
<TABLE>
<CAPTION>
Average Annual Compound Returns
5 years 10 years Lifetime
4/1/93-3/31/98 4/1/88-3/31/98 3/13/73-3/31/98
<S> <C> <C> <C>
New Perspective
Fund +18.6% +15.1% +15.3%
MSCI World
Index +17.1% +11.4% +12.3%
Global funds
average +15.5% +12.4% +14.4%
</TABLE>
Global funds average calculated at net asset value by Lipper Analytical
Services. Results assume distributions were reinvested.
In a six-month period that saw extreme volatility on the upside as well as the
downside, the value of a long-term perspective becomes increasingly apparent.
As New Perspective Fund marks its 25th anniversary, we believe our long view
has been a primary factor in the fund's success.
We look forward to reviewing the past quarter-century with you six months from
now in the annual report.
Cordially,
[/s/ Walter P. Stern]
Walter P. Stern
Chairman of the Board
[/s/ Gina h. Despres]
Gina H. Despres
President
May 12, 1998
<TABLE>
New Perspective Fund
Investment Portfolio, March 31, 1998
Percent
Largest Industry Holdings Largest Individual of Net
11.41% Health & Personal Care Holdings Assets
11.30% Telecommunications Pfizer 2.58%
6.45% Banking Time Warner 2.45
6.42% Broadcasting & Publishing Astra 2.25
5.13% Electronic Components Novartis 2.03
47.32% Other Industries Mannesmann 1.97
Telefonica de Espana 1.91
11.97% Bonds, Cash and Equivalents Philip Morris 1.65
Viacom 1.61
Nokia 1.56
Carnival 1.26
<S> <C> <C> <C>
Shares or Market Percent
Principal Value of Net
Equity Securities Amount (Millions) Assets
- ----------------------------------------- ------------ -----------------------
Health & Personal Care - 11.41%
Pfizer Inc (USA) 4,870,000 $485.478 2.58%
AB Astra, Class A (Sweden) 11,826,833 243.654
AB Astra, Class A (American Depositary Receipts) 413,333 8.577
AB Astra, Class B 8,590,533 170.545 2.25
Novartis AG (Switzerland) 216,231 382.176 2.03
SmithKline Beecham PLC (American Depositary Receipts)
(United Kingdom) 2,200,000 137.637 .73
Teva Pharmaceutical Industries Ltd. (American Depositary
Receipts) (Israel) 2,635,000 112.646 .60
Merck & Co., Inc. (USA) 690,500 88.643 .47
Zeneca Group PLC (United Kingdom) 1,207,200 51.961
Zeneca Group PLC (American Depositary Receipts) 185,000 24.235 .41
Glaxo Wellcome PLC (United Kingdom) 563,264 15.061
Glaxo Wellcome PLC (American Depositary Receipts) 1,044,000 56.506 .38
Johnson & Johnson (USA) 800,000 58.650 .31
Shiseido Co., Ltd. (Japan) 4,283,000 49.197 .26
Alza Corp. (USA) (1) 1,000,000 44.812 .24
Genentech, Inc., callable putable common stock (USA) (1) 600,000 42.262 .22
Avon Products, Inc. (USA) 500,000 39.000 .21
Bristol-Myers Squibb Co. (USA) 275,000 28.686 .15
Amgen Inc. (USA) (1) 400,000 24.350 .13
Gillette Co. (USA) 203,400 24.141 .13
Pharmacia & Upjohn, Inc. (USA) 500,000 21.875 .12
Guidant Corp. (USA) 250,000 18.344 .10
Medtronic, Inc. (USA) 315,000 16.341 .09
Telecommunications - 11.30%
Mannesmann AG (Germany) 507,500 371.275 1.97
Telefonica de Espana, SA (Spain) 7,906,000 348.291
Telefonica de Espana, SA (American Depositary Receipts) 76,000 10.051 1.91
Telefonos de Mexico, SA de CV, Class L (American
Depositary Receipts) (Mexico) 3,134,530 176.709 .94
AirTouch Communications (USA) (1) 3,525,000 172.505 .92
Vodafone Group PLC (American Depositary Receipts) (United
Kingdom) 1,428,500 148.385 .79
Tele Danmark AS, Class B (Denmark) 672,000 60.945
Tele Danmark AS, Class B (American Depositary Receipts) 1,233,700 56.288 .62
MCI Communications Corp. (USA) 2,325,000 115.087 .61
Telecom Italia SpA, ordinary shares (Italy) 4,187,500 33.004
Telecom Italia SpA, nonconvertible savings shares 12,500,000 76.330 .58
AT&T Corp. (USA) 1,535,000 100.734 .54
Koninklijke PTT Nederland NV (Netherlands) 1,629,500 84.382 .45
France Telecom (France) 1,410,000 74.327 .40
Telecom Corp. of New Zealand Ltd. (New Zealand) 10,671,100 50.794
Telecom Corp. of New Zealand Ltd. (2) 4,917,700 23.408 .39
Deutsche Telekom AG (Germany) 3,412,260 74.023 .39
Sprint Corp. (USA) 883,400 59.795 .32
British Telecommunications PLC (United Kingdom) 3,000,000 32.608 .17
Hong Kong Telecommunications Ltd. (Hong Kong) 7,428,745 15.340
Hong Kong Telecommunications Ltd. (American Depositary
Receipts) 451,479 9.453 .13
DDI Corp. (Japan) 9,074 22.344 .12
Telecomunicacoes Brasileiras SA, preferred nominative
(American Depositary Receipts) (Brazil) 76,439 9.923 .05
Banking - 6.45%
Bank of Nova Scotia (Canada) 6,959,000 188.618 1.00
Royal Bank of Canada (Canada) 2,717,000 161.170 .86
Westpac Banking Corp. (Australia) 17,567,630 117.675
Westpac Banking Corp., warrants, expire 2000 (1) 3,000,000 17.951 .72
BankAmerica Corp. (USA) 1,200,000 99.150 .53
Citicorp (USA) 590,000 83.780 .45
Banque Nationale de Paris (France) 1,021,549 79.341 .42
Banco de Santander, SA (Spain) 1,000,000 49.784
Banco de Santander, SA (American Depositary Receipts) 540,000 26.696 .41
Cie. Financiere de Paribas, Class A (France) 750,000 75.853 .40
Sakura Bank, Ltd. (Japan) 17,700,000 62.854 .33
Chase Manhattan Corp. (USA) 375,000 50.578 .27
Australia and New Zealand Banking Group Ltd. (Australia) 7,371,411 49.279 .26
Fuji Bank, Ltd. (Japan) 7,910,000 47.507 .25
ABN AMRO Bank Holding NV (Netherlands) 1,672,960 38.583 .21
Toronto-Dominion Bank (Canada) 750,000 32.356 .17
Istituto Mobiliare Italiano SpA (Italy) 1,980,000 32.091 .17
Broadcasting & Publishing - 6.42%
Time Warner Inc. (USA) 6,406,225 461.248 2.45
Viacom Inc., Class B (USA) (1) 5,640,000 303.150 1.61
News Corp. Ltd. (Australia) 3,958,997 26.126
News Corp. Ltd. (American Depositary Receipts) 3,991,600 107.524
News Corp. Ltd., preferred shares 2,037,002 11.514
News Corp. Ltd., preferred shares (American Depositary
Receipts) 1,995,800 45.903 1.02
CANAL+ (France) 267,145 50.072 .27
CBS Corp. (formerly Westinghouse Electric Corp.) (USA) 1,045,000 35.465 .19
Grupo Televisa, SA, ordinary participation certificates
(American Depositary Receipts) (Mexico) (1) 825,000 30.216 .16
Elsevier NV (Netherlands) 1,700,000 27.958 .15
Pearson PLC (United Kingdom) 1,700,000 27.575 .15
Wolters Kluwer NV (Netherlands) 162,516 23.221 .12
Dow Jones & Co., Inc. (USA) 434,900 23.023 .12
AUDIOFINA (Luxembourg) 415,300 16.427 .09
Carlton Communications PLC (United Kingdom) 2,015,000 15.988 .09
Electronic Components - 5.13%
Micron Technology, Inc. (USA) (1) 7,500,000 217.969 1.16
Advanced Micro Devices, Inc. (USA) (1) 7,050,000 204.891 1.09
Intel Corp. (USA) 1,650,000 128.803 .69
Bay Networks, Inc. (USA) (1) 3,516,900 95.396 .51
Analog Devices, Inc. (USA) (1) 1,710,000 56.858 .30
Altera Corp. (USA) (1) 1,250,000 47.187 .25
Murata Manufacturing Co., Ltd. (Japan) 1,590,000 43.928 .23
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) 7,900,000 39.018 .21
Seagate Technology (USA) (1) 1,400,000 35.350 .19
Asustek Computer Inc. (Taiwan) (1) 1,200,000 27.293 .15
Hirose Electric Co., Ltd. (Japan) 400,000 19.940 .11
Rohm Co., Ltd. (Japan) 200,000 18.318 .10
Texas Instruments Inc. (USA) 300,000 16.237 .09
Kyocera Corp. (Japan) 176,000 9.249 .05
Electrical & Electronics - 4.11%
Nokia Corp., Class A (Finland) 580,000 62.283
Nokia Corp., Class A (American Depositary Receipts) 1,690,000 182.414
Nokia Corp., Class K 460,000 49.503 1.56
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 2,811,000 133.372
Telefonaktiebolaget LM Ericsson, Class B (American
Depositary Receipts) 800,000 38.050 .91
Alcatel Alsthom (France) 445,000 83.480 .44
Northern Telecom Ltd. (Canada) 914,600 59.106 .31
Siemens AG (Germany) 600,000 40.134 .21
Schneider SA (France) 500,000 38.471 .20
General Electric Co. (USA) 440,000 37.923 .20
York International Corp. (USA) 680,000 30.600 .16
General Instrument Corp. (USA) (1) 1,055,200 22.093 .12
Multi-Industry - 4.00%
Siebe PLC (United Kingdom) 6,770,000 147.510 .78
Williams Holdings PLC (United Kingdom) 12,000,000 95.917 .51
Lend Lease Corp. Ltd. (Australia) 4,058,860 94.567 .50
Hutchison Whampoa Ltd. (Hong Kong) 13,216,000 92.960 .49
Suez Lyonnaise des Eaux (France) 500,000 72.183 .38
FMC Corp. (USA) (1) 754,800 59.252 .32
LTV Corp. (USA) 3,975,000 52.172 .28
Lagardere Groupe SCA (France) 850,000 34.277 .18
Canadian Pacific Ltd. (Canada) 1,000,000 29.500 .16
Investor AB (Sweden) 520,000 27.854 .15
Swire Pacific Ltd., Class A (Hong Kong) 4,350,000 23.018 .12
AlliedSignal Inc. (USA) 400,000 16.800 .09
B.A.T Industries PLC (United Kingdom) 755,559 7.625 .04
Energy Sources - 3.85%
TOTAL, Class B (France) 131,077 15.731
TOTAL, Class B (American Depositary Receipts) 3,109,814 186.783 1.08
Royal Dutch Petroleum Co. (New York Registered
Shares) (Netherlands) 1,952,000 110.898
'Shell' Transport and Trading Co., PLC (United Kingdom) 3,000,000 22.023 .71
ENI SpA (Italy) 11,000,000 74.514 .40
Elf Aquitaine (France) 400,000 52.391
Elf Aquitaine (American Depositary Receipts) 250,000 16.188 .36
Mobil Corp. (USA) 700,000 53.638 .29
Talisman Energy Inc. (Canada) (1) 1,400,000 42.189 .22
YPF SA, Class D (American Depositary Receipts) (Argentina) 1,200,000 40.800 .22
Phillips Petroleum Co. (USA) 700,000 34.956 .19
RAO Gazprom (American Depositary Receipts) (Russia) 1,341,000 28.429 .15
Anadarko Petroleum Corp. (USA) 400,000 27.600 .15
Enterprise Oil PLC (United Kingdom) 1,221,300 11.008 .06
Broken Hill Proprietary Co. Ltd. (Australia) 371,938 3.801 .02
Automobiles - 3.21%
Regie Nationale des Usines Renault, SA (France) 3,800,000 169.175 .90
Honda Motor Co., Ltd. (Japan) 3,200,000 115.315 .61
Bayerische Motoren Werke AG (Germany) 69,500 76.792
Bayerische Motoren Werke AG, preferred shares 20,318 15.095 .49
Chrysler Corp. (USA) 1,500,000 62.344 .33
Ford Motor Co., Class A (USA) 1,229,500 54.175 .29
Suzuki Motor Corp. (Japan) 4,379,000 41.094 .22
Volvo AB, Class B (Sweden) 1,000,000 31.777 .17
Daimler-Benz AG, 4.125% convertible debentures
2003 (Germany) (2) DM28,000,000 25.265 .13
Toyota Motor Corp. (Japan) 500,000 13.326 .07
General Motors Corp. (USA) 12,500 0.843 .00
Chemicals - 3.19%
Praxair, Inc. (USA) 2,781,400 143.068 .76
BOC Group PLC (United Kingdom) 6,058,300 96.647 .51
Sherwin-Williams Co. (USA) 1,962,000 69.651 .37
Methanex Corp. (Canada) (1) 7,250,000 63.628 .34
Georgia Gulf Corp. (USA) (3) 1,975,000 53.572 .28
Valspar Corp. (USA) 1,160,000 45.530 .24
E.I. du Pont de Nemours and Co. (USA) 600,000 40.800 .22
Bayer AG (Germany) 850,000 38.853 .21
L'Air Liquide (France) 110,097 18.647 .10
AGA AB, Class A (Sweden) 800,000 11.687
AGA AB, Class B 300,000 4.083 .08
Engelhard Corp. (USA) 813,100 15.449 .08
.
Food & Household Products - 3.10%
Nestle SA (Switzerland) 100,782 192.321 1.02
Reckitt & Colman PLC (United Kingdom) 6,056,250 112.109 .60
Groupe Danone (France) 443,586 107.042 .57
Unilever NV (Netherlands) 1,340,000 90.335 .48
Cadbury Schweppes PLC (United Kingdom) 3,350,000 45.235 .24
Archer Daniels Midland Co. (USA) 1,050,000 23.034 .12
Colgate-Palmolive Co. (USA) 150,000 12.994 .07
Beverages & Tobacco - 3.05%
Philip Morris Companies Inc. (USA) 7,455,000 310.780 1.65
Seagram Co. Ltd. (Canada) 2,800,000 106.925 .57
Asahi Breweries, Ltd. (Japan) 2,777,000 36.693
Asahi Breweries, Ltd. 1.00% convertible debentures 2003 Y924,000,000 10.405
Asahi Breweries, Ltd. 0.95% convertible debentures 2002 Y410,000,000 4.540
Asahi Breweries, Ltd. 0.90% convertible debentures 2001 Y520,000,000 5.817 .31
PepsiCo, Inc. (USA) 1,000,000 42.688 .23
Cia. Cervejaria Brahma, preferred nominative (Brazil) 39,172,000 30.355
Cia. Cervejaria Brahma, preferred nominative (American
Depositary Receipts) 100,000 1.550 .17
LVMH Moet Hennessy Louis Vuitton (France) 80,000 16.956 .09
Gallaher Group PLC (American Depositary Receipts)
(United Kingdom) 300,000 6.488 .03
Insurance - 2.67%
ING Groep NV (Netherlands) 2,683,278 152.202 .81
Fairfax Financial Holdings Ltd. (Canada) 289,700 99.453
Fairfax Financial Holdings Ltd. (USA) (2) 93,000 31.926 .70
American International Group, Inc. (USA) 819,843 103.249 .55
Assicurazioni Generali SpA (Italy) 1,508,000 46.664 .25
Guardian Royal Exchange PLC (United Kingdom) 4,350,000 31.097 .17
Allianz AG (Germany) 65,000 19.614 .10
Istituto Nazionale delle Assicurazioni SpA (Italy) 5,000,000 16.338 .09
Data Processing & Reproduction - 2.25%
Oracle Corp. (USA) (1) 3,100,000 97.844 .52
Fujitsu Ltd. (Japan) 8,072,000 84.235 .45
Ascend Communications, Inc. (USA) (1) 1,850,000 70.069 .37
Microsoft Corp. (USA) (1) 710,000 63.545 .34
Cisco Systems, Inc. (USA) (1) 500,000 34.187 .18
International Business Machines Corp. (USA) 300,000 31.162 .17
Silicon Graphics, Inc. (USA) (1) 2,100,000 29.269 .16
Computer Associates International, Inc. (USA) 200,000 11.550 .06
Leisure & Tourism - 1.76%
Carnival Corp., Class A (USA) 3,400,000 237.150 1.26
Walt Disney Co. (USA) 600,000 64.050 .34
Accor SA (France) 120,000 30.777 .16
Forest Products & Paper - 1.63%
Champion International Corp. (USA) 2,200,000 119.488 .64
Louisiana-Pacific Corp. (USA) 2,550,000 59.288 .32
UPM-Kymmene Corp. (Finland) 1,953,000 49.776 .26
International Paper Co. (USA) 600,000 28.088 .15
Rayonier Inc. (USA) 600,000 27.412 .15
Jefferson Smurfit Corp. (USA) (1) 1,255,700 21.268 .11
Appliances & Household Durables - 1.40%
Sony Corp. (Japan) 1,177,000 99.851 .53
Philips Electronics NV (Netherlands) 1,108,200 81.298
Philips Electronics NV, warrants, expire 1998 (1) 250,000 14.264 .51
Samsung Electronics Co., Ltd. (South Korea) 986,077 52.011
Samsung Electronics Co., Ltd. (Global Depositary Receipts) 562,500 15.328 .36
Merchandising - 1.36%
Wal-Mart Stores, Inc. (USA) 3,450,000 175.303 .93
Home Depot, Inc. (USA) 722,500 48.723 .26
Cifra, SA de CV, Class C (Mexico) 3,624,400 6.385
Cifra, SA de CV, Class V 10,995,004 20.118 .14
Carrefour SA (France) 9,000 5.299 .03
Gold Mines - 1.34%
Newmont Mining Corp. (USA) 3,100,000 94.744 .50
Placer Dome Inc. (Canada) 5,500,000 72.531 .39
Barrick Gold Corp. (Canada) 3,000,000 64.875 .35
Gold Fields of South Africa Ltd. (South Africa) 1,400,000 19.186 .10
Recreation & Other Consumer Products - 1.07%
Hasbro, Inc. (USA) 1,800,000 63.563 .34
Nintendo Co., Ltd. (Japan) 622,500 53.744 .29
EMI Group PLC (United Kingdom) 3,975,569 33.040 .18
Eastman Kodak Co. (USA) 400,000 25.950 .14
PolyGram NV (New York Registered Shares) (Netherlands) 259,900 12.053 .06
Fuji Photo Film Co., Ltd. (Japan) 300,000 11.171 .06
Machinery & Engineering - 1.05%
Caterpillar Inc. (USA) 2,300,000 126.644 .67
Deere & Co. (USA) 500,000 30.969 .16
Kvaerner AS, Class A (Norway) 659,240 29.706 .16
UNOVA Inc. (USA) (1) 440,000 8.800 .05
Kawasaki Heavy Industries, Ltd. (Japan) 1,243,000 2.491 .01
Utilities: Electric & Gas - 1.05%
National Power PLC (United Kingdom) 9,300,000 95.330 .51
Williams Companies, Inc. (USA) 2,869,125 91.812 .49
Hongkong Electric Holdings Ltd. (Hong Kong) 2,775,100 9.527 .05
Business & Public Services - 0.94%
Reuters Group PLC (United Kingdom) 4,397,900 47.361
Reuters Group PLC (American Depositary Receipts) 208,000 13.429 .32
United Utilities PLC (United Kingdom) 3,017,286 44.678 .24
Cie. Generale des Eaux (France) 203,808 33.072
Cie. Generale des Eaux, warrants, expire 2001 (1) 203,808 0.229 .18
Rentokil Group PLC (United Kingdom) 4,200,000 24.757 .13
Electronic Data Systems Corp. (USA) 300,000 13.762 .07
Metals: Nonferrous - 0.89%
Alumax Inc. (USA) (1) 1,200,000 54.225 .29
WMC Ltd. (Australia) 12,389,336 42.478 .23
Alcan Aluminium Ltd. (Canada) 800,000 25.000 .13
Phelps Dodge Corp. (USA) 300,000 19.369 .10
Pechiney, Class A (France) 366,527 16.850 .09
Teck Corp., Class B (Canada) 700,000 10.116 .05
Energy Equipment - 0.79%
Halliburton Co. (USA) 1,178,300 59.136 .31
Western Atlas Inc. (USA) (1) 591,000 45.729 .24
Schlumberger Ltd. (Netherlands Antilles) 598,300 45.321 .24
Metals: Steel - 0.70%
Allegheny Teledyne Inc. (USA) 2,040,000 56.737 .30
Usinor Sacilor (France) 2,800,000 46.791 .25
Cia. Vale do Rio Doce, ordinary nominative (Brazil) 38,400 .848
Cia. Vale do Rio Doce, preferred nominative (4) 38,400 .000
Cia. Vale do Rio Doce, preferred nominative (American
Depositary Receipts) 1,184,000 28.268 .15
Real Estate - 0.54%
Cheung Kong (Holdings) Ltd. (Hong Kong) 11,320,000 80.354 .43
Security Capital Group Inc., Class A (USA) (1) 13,839 20.759 .11
Electronic Instruments - 0.49%
ADVANTEST CORP. (Japan) 1,100,000 71.434 .38
Applied Materials, Inc. (USA) (1) 400,000 14.125 .08
Tokyo Electron Ltd. (Japan) 173,000 5.832 .03
Transportation: Shipping - 0.46%
Bergesen d.y. AS, Class A (Norway) 1,500,000 31.830
Bergesen d.y. AS, Class B 795,000 16.766 .26
Nippon Yusen KK (Japan) 10,500,000 37.759 .20
Miscellaneous Materials & Commodities - 0.40%
Cie. de Saint-Gobain (France) 320,000 52.650 .28
De Beers/Centenary linked units (South Africa) 1,000,000 21.807 .12
Aerospace & Military Technology - 0.23%
Boeing Co. (USA) 795,000 41.440 .22
Raytheon Co., Class A (USA) 25,508 1.451 .01
Industrial Components - 0.20%
Bridgestone Corp. (Japan) 1,571,000 35.619 .19
Rockwell International Corp. (USA) 42,700 2.450 .01
Building Materials & Components - 0.19%
CEMEX, SA de CV, Class A (Mexico) 2,362,225 10.542
CEMEX, SA de CV CPO 5,540,000 24.593 .19
Financial Services - 0.11%
Associates First Capital Corp., Class A (USA) (1) 259,883 20.531 .11
Transportation: Rail & Road - 0.09%
Union Pacific Corp. (USA) 317,300 17.828 .09
Textiles & Apparel - 0.06%
NIKE, Inc., Class B (USA) 260,000 11.505 .06
Miscellaneous - 1.14%
Other equity securities in initial period of
acquisition 215.007 1.14
-----------------------
TOTAL EQUITY SECURITIES
(cost: $10,447.600 million) 16,551.842 88.03
-----------------------
Principal
Amount
Bonds (Millions)
- --------------------------------------- ------------
New Zealand Government - 0.14%
New Zealand 8.00% November 2006 NZ$44.500 25.993 .14
----------------------
TOTAL BONDS (cost: $29.832 million) 25.993 .14
----------------------
TOTAL INVESTMENT SECURITIES (cost: $10,477.432 million) 16,577.835 88.17
----------------------
Short-Term Securities
- ------------------------------------------
Corporate Short-Term Notes - 8.49%
Svenska Handelsbanken Group 5.35%-5.58% due 4/7-4/13/98 $111.500 111.348 .59
National Australia Funding (Delaware) Inc. 5.44%-5.50%
due 4/9-5/15/98 103.500 103.175 .55
Toronto-Dominion Holdings USA Inc. 5.40%-5.54% due 4/3-
5/8/98 99.227 98.726 .52
Canada Bills 5.40%-5.46% due 4/3-6/19/98 98.850 98.393 .52
Societe Generale NA Inc. 5.40%-5.52% due 4/15-5/18/98 84.700 84.344 .45
Daimler-Benz North America Corp. 5.46%-5.51% due 5/14-
6/8/98 81.500 80.741 .43
Commonwealth Bank of Australia 5.40%-5.52% due 4/3-
4/21/98 80.000 79.882 .42
Lloyds Bank PLC 5.41%-5.45% due 5/11-6/9/98 77.700 77.041 .41
General Electric Capital Corp. 5.48%-5.51% due 4/2-
6/10/98 77.200 76.704 .41
Ford Credit Europe PLC 5.49%-5.51% due 5/21-6/3/98 76.300 75.661 .40
Caisse d'amortissement de la dette sociale 5.44%-5.50%
due 4/20-5/7/98 75.000 74.708 .40
Abbey National North America 5.42%-5.43% due 4/22-
5/6/98 72.000 71.576 .38
Rank Xerox Capital (Europe) PLC 5.43%-5.45% due 4/1-
4/28/98 71.015 70.879 .38
International Lease Finance Corp. 5.36%-5.48% due 4/17-
7/1/98 67.800 67.230 .36
American Express Credit Corp. 5.49%-5.51% due 4/22-
5/26/98 63.900 63.556 .34
Siemens Corp. 5.41%-5.43% due 4/16-4/17/98 63.900 63.742 .34
Canadian Wheat Board 5.40%-5.45% due 5/14-6/12/98 61.500 60.971 .32
Barclays U.S. Funding Corp. 5.415%-5.49% due 4/20-5/8/98 57.300 57.083 .30
ANZ (Delaware) Inc. 5.425% due 4/13/98 50.000 49.901 .27
Export Development Corp. 5.43%-5.44% due 4/8/98 48.900 48.841 .26
France Telecom 5.45%-5.47% due 5/12-6/11/98 47.205 46.801 .25
Repsol International Finance B.V. 5.43% due 5/1-5/5/98 35.000 34.826 .19
Federal Agency Discount Notes - 1.86%
Federal Home Loan Banks 5.34%-5.41% due 4/15-4/24/98 134.100 133.730 .71
Freddie Mac 5.32%-5.42% due 5/29-6/8/98 84.300 83.458 .44
Fannie Mae 5.33%-5.405% due 4/16-6/12/98 93.957 93.311 .50
International Bank for Reconstruction and Development
5.36%-5.40% due 5/15-6/8/98 40.000 39.655 .21
Certificates of Deposit - 1.19%
Canadian Imperial Bank of Commerce 5.55%-5.57%
due 5/5-6/25/98 85.000 84.999 .45
National Westminster Bank PLC 5.595% due 4/15/98 50.000 50.001 .27
ABN-AMRO Bank NV 5.56%-5.62% due 4/6-6/19/98 49.000 48.998 .26
Abbey National PLC 5.52% due 5/7/98 40.000 39.998 .21
U.S. Treasury Obligations - 0.27%
5.295% April 1998 50.000 49.841 .27
----------------------
Non U.S. Currency - 0.05%
New Taiwanese Dollar NT$295.390 9.006 .05
TOTAL SHORT-TERM SECURITIES (cost: $2,230.537 million) 2,229.126 11.86
Excess of cash and receivables over payables (4.293) (0.03)
-----------------------
TOTAL SHORT-TERM SECURITIES AND NET CASH 2,224.833 11.83
-----------------------
NET ASSETS $18,802.668 100.00%
======================
(1) Non-income-producing securities
(2) Purchased in a private placement
transaction; resale to the public may
require registration or sale only
to qualified institutional buyers.
(3) The fund owns 6.14% of the outstanding voting
securities of Georgia Gulf Corp., which represent an
investment in an affiliate as defined in the Investment
Company Act of 1940.
(4) Valued under procedures established by the Board of
Directors.
The descriptions of the companies shown in the portfolio,
which were obtained from published reports and other
sources believed to be reliable, are supplemental and
are not covered by the Report of Independent Accountants.
See Notes to Financial Statements
New Perspective Fund
Equity-Type Securities Appearing in the
Portfolio Since September 30, 1997
ADVANTEST
Allianz Holdings
Amgen
Asustek Computer
Avon Products
Bristol-Myers Squibb
Carrefour
France Telecom
Guardian Royal Exchange
Hasbro
Hirose Electric
Investor AB
Istituto Nazionale delle Assicurazioni
Phelps Dodge
Rohm
Security Capital Group
Taiwan Seimconductor
Texas Instruments
Union Pacific
Williams Companies
Equity-Type Securities Eliminated from the
Portfolio Since September 30, 1997
ABB
Abbott Laboratories
Acer
Aluminum Co. of America
Arrow Electronics
Bank of Tokyo-Mitsubishi
Carter Holt Harvey
CSX
Digital Equipment
Electrocomponents
Enersis
Euro Disney
Fortune Brands
Gucci Group
Holderbank Financiere
HSBC Holdings
Ito-Yokado
Lion Nathan
Mattel
Nan Ya Plastics
NextLevel Systems
Potash
Quintiles Transnational
Sankyo
Societe Centrale (de Assurances Generales)
Sumitomo Bank
Sybase
Thorn
US West Media Group
Waste Management
WHSmith Group
</TABLE>
<TABLE>
New Perspective Fund
Financial Statements Unaudited
- ---------------------------------------------- --------------------------------
Statement of Assets and Liabilities (dollars in
at March 31, 1998 millions)
- ---------------------------------------------- --------------------------------
<S> <C> <C>
Assets:
Investment securities at market
(cost: $10,477.432) $16,577.835
Short-term securities
(cost: $2,230.537) 2,229.126
Cash .732
Receivables for-
Sales of investments $38.837
Sales of fund's shares 26.986
Dividends and accrued interest 38.355 104.178
--------------------------------
18,911.871
Liabilities:
Payables for-
Purchases of investments 78.811
Repurchases of fund's shares 19.772
Management services 6.362
Accrued expenses 4.258 109.203
--------------------------------
Net Assets at March 31, 1998-
Equivalent to $22.36 per share on
840,840,376 shares of $1 par value
capital stock outstanding (authorized
capital stock--1,000,000,000 shares) $18,802.668
================
Statement of Operations
for the six months ended March 31, 1998 Unaudited
(dollars in
millions)
- ---------------------------------------------- --------------------------------
Investment Income:
Income:
Dividends $ 89.236
Interest 63.317 $ 152.553
----------------
Expenses:
Management services fee 34.523
Distribution expenses 19.322
Transfer agent fee 6.689
Reports to shareholders .421
Registration statement and prospectus 1.016
Postage, stationery and supplies 1.651
Directors' and Advisory Board fees .195
Auditing and legal fees .085
Custodian fee 1.895
Taxes other than federal
income tax .222
Other expenses .137 66.156
--------------------------------
Net investment income 86.397
----------------
Realized Gain and Increase in Unrealized
Appreciation on Investments:
Net realized gain 562.385
Net increase in unrealized appreciation on
investments:
Beginning of period 5,073.194
End of period 6,098.387 1,025.193
--------------------------------
Net realized gain and unrealized appreciation
on investments 1,587.578
----------------
Net Increase in Net Assets Resulting
from Operations $ 1,673.975
================
- ---------------------------------------------- --------------------------------
Statement of Changes in Net Assets (dollars in
millions)
Six months ended Year ended
March 31, September 30,
1998* 1997
- ---------------------------------------------- --------------------------------
Operations:
Net investment income $ 86.397 $ 221.926
Net realized gain on investments 562.385 922.766
Net increase in unrealized appreciation
on investments 1,025.193 2,567.733
--------------------------------
Net increase in net assets
resulting from operations 1,673.975 3,712.425
--------------------------------
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (148.242) (224.557)
Distributions from net realized gain on
investments (944.065) (462.037)
--------------------------------
Total dividends and distributions (1,092.307) (686.594)
--------------------------------
Capital Share Transactions:
Proceeds from shares sold: 64,675,717
and 160,556,117 shares, respectively 1,336.251 3,126.904
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 54,693,713 and 36,204,990 shares,
respectively 1,038.033 650.157
Cost of shares repurchased: 54,169,491
and 78,902,097 shares, respectively (1,109.368) (1,534.468)
--------------------------------
Increase in net assets resulting from
capital share transactions 1,264.916 2,242.593
--------------------------------
Total Increase in Net Assets 1,846.584 5,268.424
Net Assets:
Beginning of period 16,956.084 11,687.660
--------------------------------
End of period (including undistributed
net investment income: $53.819
and $115.664, respectively) $18,802.668 $16,956.084
================================
* Unaudited
See Notes to Financial Statements
</TABLE>
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 securities, including depositary receipts, are valued at the last
reported sale price on the exchange or market on which such securities are
traded, as of the close of business on the day the securities are being valued
or, lacking any sales, at the last available bid price. In cases where equity
securities are traded on more than one exchange, the securities are valued on
the exchange or market determined by the investment adviser to be the broadest
and most representative market, which may be either a securities exchange or
the over-the-counter market. Fixed-income securities are valued at prices
obtained from a pricing service, when such prices are available; however, in
circumstances where the investment adviser deems it appropriate to do so, such
securities will be valued at the mean quoted bid and asked prices or at prices
for securities of comparable maturity, quality, and type. Securities with
original maturities of one year or less having 60 days or less to maturity are
amortized to maturity based on their cost if acquired within 60 days of
maturity or, if already held on the 60th day, based on the value determined on
the 61st day. Assets or liabilities initially expressed in terms of foreign
currencies are translated prior to the next determination of the net asset
value of the fund's shares into U.S. dollars at the prevailing market rates at
the end of the reporting period. Purchases and sales of securities and income
and expenses are translated into U.S. dollars at the prevailing market rates on
the dates of such transactions. The effects of changes in foreign currency
exchange rates on investment securities are included with the net realized and
unrealized gain or loss on investment securities. Securities and assets for
which representative market quotations are not readily available are valued at
fair value as determined in good faith by a committee appointed by 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. In the event
the fund purchases securities on a delayed delivery or "when-issued" basis, it
will segregate with its custodian liquid assets in an amount sufficient to meet
its payment obligations in these transactions. 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 and premiums on
securities purchased are amortized. Dividends and distributions paid to
shareholders are recorded on the ex-dividend date.
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, 1998, net unrealized appreciation on invest-
ments for federal income tax purposes aggregated $6,099,980,000 of which
$6,572,956,000 related to appreciated securities and $472,976,000 related to
depreciated securities. During the six months ended March 31, 1998, the fund
realized, on a tax basis, a net capital gain of $563,347,000 on securities
transactions. Net losses related to non-U.S. currency and other transactions of
$962,000 were treated as an adjustment to ordinary income for federal income
tax purposes. The cost of portfolio securities for federal income tax purposes
was $12,706,980,000 at March 31, 1998.
3. The fee of $34,523,000 for management services was incurred 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 average 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; 0.39% of such assets in excess of $10.5 billion but not exceeding $17
billion; and 0.385% of such assets in excess of $17 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,
1998, distribution expenses under the Plan were $19,322,000. As of March 31,
1998, accrued and unpaid distribution expenses were $3,163,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $6,689,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $5,007,000 (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 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 March 31, 1998, aggregate amounts deferred and earnings thereon
were $519,000.
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, 1998, accumulated undistributed net realized gain on
investments and currency was $466,611,000 and additional paid-in capital was
$11,343,011,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $2,054,794,000 and $2,088,067,000, respectively,
during the six months ended March 31, 1998.
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 $1,895,000 includes $61,000 that was paid by these credits
rather than in cash.
Dividend and interest income is recorded net of non-U.S. taxes paid. For the
six months ended March 31, 1998, such non-U.S. taxes were $5,545,000. Net
realized currency losses on dividends, interest and withholding taxes
reclaimable, on a book basis, were $1,590,000 for the six months ended March
31, 1998.
<TABLE>
Six months
ended Year ended
March 31 September 30
1998(1) 1997 1996 1995 1994 1993
----------- ----------- ----------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $21.86 $17.77 $16.98 $15.40 $14.21 $12.25
----------- ----------- ----------- --------------------------------
Income from Investment Operations:
Net investment income .11 .29 .32 .31 .22 .17
Net realized gain and increase in
unrealized appreciation on investment 1.79 4.81 1.40 2.35 1.54 2.04
----------- ----------- ----------- --------------------------------
Total income from
investment operations 1.90 5.10 1.72 2.66 1.76 2.21
----------- ----------- ----------- --------------------------------
Less Distributions:
Dividends from net
investment income (.190) (.323) (.321) (.237) (.173) (.178)
Dividends from net realized
non-U.S. currency gains(2) - (.007) (.009) (.003) (.027) (.022)
Distributions from net
realized gains (1.210) (.680) (.600) (.840) (.370) (.050)
----------- ----------- ----------- --------------------------------
Total distributions (1.40) (1.01) (.93) (1.08) (.57) (.25)
----------- ----------- ----------- --------------------------------
Net Asset Value, End of Period $22.36 $21.86 $17.77 $16.98 $15.40 $14.21
====================================================================
Total Return(3) 9.83% 29.97% 10.64% 18.63% 12.61% 18.34%
Ratios/Supplemental Data:
Net assets, end of
period (in millions) $18,803 $16,956 $11,688 $8,817 $6,279 $4,417
Ratio of expenses to average
net assets .39% .79% .82% .83% .84% .87%
Ratio of net income to
average net assets .51% 1.56% 2.00% 2.12% 1.48% 1.40%
Average commissions paid per share (5) 2.06c .50c 4.30c .72c 1.05c 1.74c
Portfolio turnover rate 13.98% 25.68% 18.12% 22.40% 25.33% 15.02%
(1) Unaudited
(2) Realized non-U.S. currency gains
are treated as ordinary income for
federal income tax purposes.
(3) Excludes maximum sales charge of 5.75%.
(4) Based on operations for the period shown
and, accordingly, not representative of a
full year.
(5) Brokerage commissions paid on
portfolio transactions increase
the cost of securities purchased or
reduce the proceeds of securities
sold, and are not separately reflected
in the fund's statement of operations.
Shares traded on a principal basis
(without commissions), such as most
over-the-counter and fixed-income
transactions, are excluded. Generally,
non-U.S. commissions are lower than
U.S. commissions when expressed as
cents per share but higher when ex-
pressed as a percentage of transaction amount
because of the lower per-share
prices of many non-U.S. securities.
</TABLE>
The American Funds Group(r) Shareholder Services
Services to match your lifestyle
AMERICAN FUNDSLINE(R) AND FUNDSLINE ONLINE(SM) - Use our 24-hour phone line or
visit our Web site to get fund information and handle numerous transactions -
all on your timetable.
AMERICAN FUNDSLINK(SM) - Link your American Funds accounts with your bank
account. You can have fund dividends or automatic fund withdrawals deposited
directly into your bank account. Or you can invest money directly from your
bank account into your fund account on either a systematic or on-demand basis.
OTHER AUTOMATIC TRANSACTIONS - You can reinvest dividends into the same fund or
another fund, make withdrawals, and exchange shares between funds - quarterly,
monthly or during the months you specify.
DIVIDEND AND CAPITAL GAIN OPTIONS - Use your dividend and capital gain
distributions to meet your changing needs. You may:
- - Automatically reinvest distributions back into the fund at no sales charge.
- -Cross-reinvest dividends into another fund at no sales charge. (Certain
restrictions apply.)
- - Have dividends mailed or sent electronically to you or to someone else.
EXCHANGE PRIVILEGES - When it's time to adjust your portfolio to meet your
changing investment goals, you can easily exchange shares from one American
Fund to another - usually without paying a sales charge. Certain restrictions
apply and there generally are tax consequences. Please consult your financial
adviser and read the prospectus before you exchange shares.
QUESTIONS?
For more information about these services or any of the American Funds, please
read a current prospectus, which you may obtain from your financial adviser. To
contact American Funds:
- - Shareholder Services Representative, toll-free, 8 a.m. to 8 p.m. ET -
800/421-0180
- - American FundsLine, toll-free 24-hour voice response unit - 800/325-3590
- - FundsLine Online, Web site - www.americanfunds.com
- - By mail - Write to the service center nearest you. If you live outside the
U.S., please write to the Western Service Center
To talk to a Shareholder Services Representative, call toll-free (8 a.m. to 8
p.m. ET) from anywhere in the U.S.: 800/421-0180. Visit www.americanfunds.com
on the World Wide Web.
[map of the United States]
WESTERN
SERVICE CENTER
American Funds
Service Company
P.O. Box 2205
Brea, California
92822-2205
WEST CENTRAL
SERVICE CENTER
American Funds
Service Company
P.O. Box 659522
San Antonio, Texas
78265-9522
EAST CENTRAL
SERVICE CENTER
American Funds
Service Company
P.O. Box 6007
Indianapolis, Indiana
46206-6007
EASTERN
SERVICE CENTER
American Funds
Service Company
P.O. Box 2280
Norfolk, Virginia
23501-2280
These services are subject to change or termination.
[The American Funds Group(r)]
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 92821-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
(Please write to the address nearest you.)
P.O. Box 2205
Brea, California 92822-2205
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
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
O'Melveny & Myers LLP
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 FINANCIAL ADVISER. YOU MAY ALSO CALL AMERICAN FUNDS SERVICE
COMPANY, TOLL-FREE, AT 800/421-0180 OR VISIT WWW.AMERICANFUNDS.COM ON THE WORLD
WIDE WEB.
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, 1998, this report must be accompanied by an American Funds Group
Quarterly Statistical Update for the most recently completed calendar quarter.
Printed on recycled paper
Litho in USA AGD/GRS/3767
Lit. No. NPF-013-0598
