[THE AMERICAN FUNDS GROUP(R)]
25 YEARS OF GLOBAL INVESTING
NEW PERSPECTIVE FUND
Semi-Annual Report for the six months ended March 31, 1999
[front and back cover: Photographs of New Perspective Fund's annual report
covers from 1973 through 1997]
NEW PERSPECTIVE FUND(R) seeks long-term growth of capital through investments
all over the world, including the United States.
NEW PERSPECTIVE is one of the 29 mutual funds in The American Funds Group,(r)
the nation's third-largest mutual fund family. For more than six decades,
Capital Research and Management Company, the American Funds adviser, has
invested with a long-term focus based on thorough research and attention to
risk.
Results at a Glance
(total return as of March 31, 1999, with all distributions reinvested)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Lifetime (average
annual compound
return since
Six months One year March 13, 1973)
New Perspective +27.9% +17.9% +15.4%
Fund
Morgan Stanley +25.7% +13.1% +12.3%
Capital
International World
Index
Average global fund +21.4% + 3.4% +14.0%
</TABLE>
The World index is unmanaged. Global funds average calculated by Lipper, Inc.
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, 1999,
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>
<S> <C> <C>
Total Average Annual
Return Compound Return
10 years +312.01% +15.21%
5 years +118.44% +16.91%
1 year +11.16% -
</TABLE>
FIGURES SHOWN ARE PAST RESULTS AND ARE NOT PREDICTIVE OF FUTURE RESULTS. SHARE
PRICE AND RETURN WILL VARY, SO YOU MAY LOSE MONEY. INVESTING FOR SHORT PERIODS
MAKES LOSSES MORE LIKELY. INVESTMENTS ARE NOT FDIC-INSURED, NOR ARE THEY
DEPOSITS OF, OR GUARANTEED BY, A BANK OR ANY OTHER ENTITY. 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:
Since we reported to you last, world stock markets have rebounded from their
sharp summer declines to regain all of their lost ground, and more.
The broad market rally helped push the value of your investment in New
Perspective Fund considerably higher. For the six months ended March 31, the
fund returned 27.9% if, like most shareholders, you reinvested the income
dividend of 14 cents a share and the capital gain distribution of $1.57 a share
that were paid in December.
That was well ahead of most other funds in New Perspective's universe. The 246
global stock funds tracked by Lipper, Inc. rose an average of 21.4% for the six
months with dividends reinvested. On the same basis, the unmanaged Morgan
Stanley Capital International (MSCI) World Index, which measures 22 major stock
markets, including the U.S., gained 25.7%.
Over longer, more meaningful periods, the fund has also continued to outpace
both benchmarks, as the table on the left shows.
SHAKING OFF THE DOLDRUMS
These results benefited from the timing of our reporting period. New
Perspective's fiscal year began in October, coinciding roughly with what would
prove to be the low in 1998 for most stock markets. Investor pessimism
evaporated as suddenly as it had materialized, and almost every major world
market rose, most by double-digits.
In the U.S., where New Perspective has the greatest concentration of assets,
the Federal Reserve Board helped jump-start the market advance by cutting
short-term interest rates three times in the fall; stock prices closed the six
months 28.8%/1/ higher. Earlier concerns about flagging profits eased as the
nation's economic expansion entered its eighth year, a peacetime record, and
inflation remained remarkably subdued. Elsewhere in the Americas, Canadian and
Mexican markets also bounced back, to return 23.0% and 42.2%, respectively.
Even Brazil, which was hit hard by the devaluation of its currency in January,
began to shake off its doldrums, rising 6.1%.
/1/Unless otherwise indicated, country returns are based on MSCI indexes and
expressed in U.S. dollars with dividends reinvested.
The rally was equally dramatic in Europe, where a wave of merger activity and
optimism about the introduction of a common currency, the euro, helped push up
stock prices. Among markets that are well-represented in New Perspective's
portfolio, the United Kingdom (+19.3%), France (+19.8%), Sweden (+21.2%) and
Finland (+67.5%) all rose impressively. Germany (+2.1%) was a disappointment,
although Mannesmann (+39.4%), a large German holding, bucked the trend by
participating in the overall rise in telecommunications stocks - supporting our
long-held belief that investors are best off focusing on companies rather than
countries. Although Europe is still struggling with high unemployment rates,
its central bank has begun to take steps to help stimulate growth, and
prospects for the region are promising.
[Begin Sidebar]
WHERE NPF'S ASSETS WERE INVESTED
percent invested by country
<TABLE>
<CAPTION>
<S> <C> <C>
3/31/99 9/30/98
ASIA/PACIFIC RIM 10.6% 8.7%
Japan 6.2 5.0
Australia 2.7 2.6
South Korea .8 .1
Taiwan .6 -
New Zealand .3 .3
Hong Kong - .7
EUROPE 30.0% 32.5%
United Kingdom 6.4 6.7
Germany 4.7 5.1
France 4.6 5.8
Sweden 3.9 3.7
Netherlands 3.1 2.9
Switzerland 2.2 2.5
Italy 2.0 1.1
Finland 1.5 2.2
Spain .8 1.6
Denmark .4 .6
Norway .3 .2
Ireland .1 -
Luxembourg - .1
NORTH AMERICA 42.4% 40.3%
United States 35.8 34.3
Canada 5.1 4.9
Mexico 1.5 1.1
OTHER 5.0% 2.8%
CASH & EQUIVALENTS 12.0% 15.7%
100.0% 100.0%
</TABLE>
Most Asian economies remain weak, but there are early rumblings of a recovery.
In February, the Japanese government cut taxes and loosened monetary policy in
an effort to pull the country out of its worst recession since World War II.
Investors were encouraged, and in a reversal of recent trends, a stronger yen
benefited U.S. investors; the Japanese market rose 42% in dollar terms. Other
Pacific Rim markets that did well over the past six months were South Korea
(+131.9%) and Australia (+23.7%).
A LOOK AT YOUR HOLDINGS
New Perspective was well-positioned to benefit from the rebound in Asian stock
prices. We had been building up our investments there earlier in the year when
stock prices were still quite low. The biggest gainers tended to be
technology-related issues - Samsung Electronics (+184.3%), Matsushita
Communications (+88.4%) and Fujitsu (+85.8%), to name a few - although many
other Asian holdings also appreciated in price.
There was broad strength throughout the portfolio: Of 229 stocks held over the
entire period, 184 rose in price. Nearly all of the fund's 10 largest holdings
posted substantial six-month gains, making strong contributions to overall
returns. Notable among them were media giant Time Warner (+62.3%), cruise line
operator Carnival (+52.7%), and Astra (+35.7%), the Swedish drug concern that
is in the process of merging with U.K.-based Zeneca (+33.2%).
Telecommunications-related issues once again made up the largest industry
concentration, accounting for 15% of net assets. New Perspective holds
investments in 20 phone companies based
in 13 countries; most did quite well during the period. Global Crossing, a new
addition to the portfolio, was the fund's biggest gainer over the six months,
appreciating 343.1% in price. The company operates fiber optic networks for
global Internet transmissions. Other telecom holdings benefited from a trend
toward consolidation; these included Vodafone (+66.5%), which agreed in January
to acquire AirTouch (+69.5%), and British Telecom (+23.1%), which recently
formed an alliance with AT&T (+36.6%).
Health care companies constitute the second-largest industry concentration, at
11% of net assets. We continue to be optimistic about the sector.
Pharmaceutical technology has made tremendous strides in recent years, and in a
business that is heavily dependent on a steady pipeline of new products, the
potential for growth is excellent.
Reflecting our company-by-company approach, New Perspective is broadly
diversified. The companies in the portfolio are based in 26 countries and
represent a broad range of industries. In keeping with the fund's unique
mandate, the majority are businesses with a global focus, seeking to serve a
world clientele.
LOOKING FORWARD
The recent stock market rally points to a remarkable vigor in global equity
markets, but the pace of the advance may suggest caution as we move forward.
Valuations in many cases have gotten ahead of themselves, a situation that can
lead to disappointment later on. While New Perspective's 28% six-month gain is
most welcome, we must also point out that it is close to double the 15% average
annual return earned by the fund over its lifetime, a figure that is itself
high by historic standards. We would therefore urge shareholders to set
realistic expectations for their long-term investment goals and not extrapolate
future returns from these substantial gains.
We look forward to reporting to you again in six months.
Cordially,
/s/Walter P. Stern
Walter P. Stern
Chairman of the Board
/s/Gina H. Despres
Gina H. Despres
President
May 13, 1999
<TABLE>
<S> <C> <C> <C>
New Perspective Fund, Inc.
Investment Portfolio, March 31, 1999
Largest Industry Holdings
15.24% Telecommunications
10.60% Health & Personal Care
7.55% Broadcasting & Publishing
5.49% Electrical & Electronics
5.39% Banking
43.26% Other Industries
.47% Bonds & Notes
12.00% Cash and Equivalents
Shares/Principal Market Percent
Amounts Value Of Net
EQUITY SECURITIES (Millions) Assets
- -------------------------------------------- -------- -------- --------
TELECOMMUNICATIONS - 15.24%
Mannesmann AG (Germany) 3,675,000 469.228 2.03%
AirTouch Communications (USA) (1) 3,641,700 351.879 1.53
Telecom Italia SpA, ordinary shares (Italy) 15,427,500 163.861
Telecom Italia SpA, nonconvertible savings shares 27,935,895 166.103 1.43
Deutsche Telekom AG (Germany) 6,470,500 263.631 1.14
Telefonos de Mexico, SA de CV, Class L (ADR) (Mexico) 3,934,530 257.712 1.12
MCI WorldCom, Inc. (USA) (1) 2,892,067 256.129 1.11
Global Crossing Ltd. (USA) (1) 5,200,000 240.500 1.04
AT&T Corp. (USA) 2,358,800 188.262 .82
Vodafone Group PLC (ADR) (United Kingdom) 977,000 183.432 .79
DDI Corp. (Japan) 34,500 163.107 .71
Telefonica, SA (Spain) 2,809,000 119.117 .52
Swisscom AG (Switzerland) (1) 283,086 110.706 .48
Tele Danmark AS (Denmark) 671,150 66.506
Tele Danmark AS, Class B (ADR) 699,300 34.266 .44
France Telecom, SA (France) 1,190,700 96.256 .42
Sprint FON Group (USA) 883,400 86.684 .38
Telecom Corp. of New Zealand Ltd. (New Zealand) 10,671,100 52.125
Telecom Corp. of New Zealand Ltd. (2) 4,917,700 24.021 .33
Teleglobe Inc. (Canada) 2,200,000 66.985 .29
Koninklijke PTT Nederland NV (Netherlands) 1,649,371 65.599 .28
British Telecommunications PLC (United Kingdom) 3,000,000 49.117 .21
Nippon Telegraph and Telephone Corp. (Japan) 4,000 39.173 .17
HEALTH & PERSONAL CARE - 10.60%
Pfizer Inc (USA) 4,870,000 675.712 2.93
Astra AB, Class A (Sweden) 13,026,833 298.861
Astra AB, Class A (ADR) 413,333 9.481
Astra AB, Class B 8,590,533 194.992 2.19
Novartis AG (Switzerland) 199,231 323.649 1.40
SmithKline Beecham PLC (ADR) (United Kingdom) 2,200,000 157.300 .68
Merck & Co., Inc. (USA) 1,621,000 129.984 .56
Teva Pharmaceutical Industries Ltd. (ADR) (Israel) 2,635,000 124.998 .54
Zeneca Group PLC (United Kingdom) 1,895,000 88.852
Zeneca Group PLC (ADR) 555,000 26.120 .50
Glaxo Wellcome PLC (United Kingdom) 563,264 18.789
Glaxo Wellcome PLC (ADR) 1,044,000 69.883 .39
Genentech, Inc., callable putable common stock (USA) (1) 600,000 53.175 .23
Bristol-Myers Squibb Co. (USA) 800,000 51.450 .22
Alza Corp. (USA) (1) 1,000,000 38.250 .17
Guidant Corp. (USA) 600,000 36.300 .16
Fujisawa Pharmaceutical Co. Ltd. (Japan) 1,950,000 30.703 .13
Medtronic, Inc. (USA) 400,000 28.700 .12
Pharmacia & Upjohn, Inc. (USA) 450,000 28.069 .12
Luxottica Group SpA (ADR) (Italy) 1,812,700 23.338 .10
Avon Products, Inc. (USA) 400,000 18.825 .08
Shiseido Co., Ltd. (Japan) 1,250,000 17.307 .08
BROADCASTING & PUBLISHING - 7.55%
Time Warner Inc. (USA) 9,444,000 671.114 2.91
Viacom Inc., Class A (USA) (1) 500,000 41.656
Viacom Inc., Class B (1) 5,640,000 473.408 2.23
News Corp. Ltd. (Australia) 3,960,898 29.385
News Corp. Ltd. (ADR) 3,991,600 117.752
News Corp. Ltd., preferred 2,039,769 14.054
News Corp. Ltd., preferred (ADR) 2,548,800 70.092 1.00
CANAL + (France) 355,293 104.111 .45
Grupo Televisa, SA, ordinary participation certificates
(ADR) (Mexico) (1) 1,875,400 58.841 .26
CBS Corp. (USA) (1) 1,045,000 42.780 .19
Pearson PLC (United Kingdom) 1,700,000 38.611 .17
Wolters Kluwer NV (Netherlands) 162,516 29.468 .13
Elsevier NV (Netherlands) 1,700,000 25.320 .11
Dow Jones & Co., Inc. (USA) 500,000 23.594 .10
ELECTRICAL & ELECTRONICS - 5.49%
Telefonaktiebolaget LM Ericsson, Class B (Sweden) 11,910,000 289.908
Telefonaktiebolaget LM Ericsson, Class B (ADR) 1,000,000 23.812 1.36
Nokia Corp., Class A (Finland) 870,000 140.004
Nokia Corp., Class A (ADR) 950,000 147.962 1.25
Siemens AG (Germany) 2,650,000 177.043 .77
Northern Telecom Ltd. (Canada) 1,794,600 111.490 .48
Matsushita Communication Industrial Co., Ltd. (Japan) 1,620,000 109.550 .48
Toshiba Corp. (Japan) 13,000,000 88.789 .38
Schneider SA (France) 1,050,000 58.080 .25
General Electric Co. (USA) 480,000 53.100 .23
York International Corp. (USA) 680,000 24.012 .10
Alcatel, SA (France) 200,000 22.989 .10
General Instrument Corp. (USA) (1) 655,200 19.861 .09
BANKING - 5.39%
BankAmerica Corp. (USA) 3,117,400 220.166 .95
Bank of Nova Scotia (Canada) 7,719,000 164.109 .71
Westpac Banking Corp. (Australia) 18,023,011 131.737
Westpac Banking Corp., warrants, expire 2000 (1) 3,000,000 20.632 .66
Royal Bank of Canada (Canada) 2,717,000 127.514 .55
Citigroup Inc. (formerly Citicorp) (USA) 1,575,000 100.603 .44
ABN AMRO Holding NV (Netherlands) 4,557,860 94.942 .41
Banque Nationale de Paris (France) 984,048 85.604 .37
Banco de Santander, SA (Spain) 2,466,000 50.570
Banco de Santander, SA (ADR) 1,101,600 22.170 .32
Australia and New Zealand Banking Group Ltd. (Australia) 6,212,511 45.212 .20
Fuji Bank, Ltd. (Japan) 6,855,000 40.569 .18
Sakura Bank, Ltd. (Japan) 12,700,000 38.491 .17
First Union Corp. (USA) 700,000 37.406 .16
San Paolo-IMI SpA (formerly Istituto Mobiliare Italiano
SpA) (Italy) (1) 2,000,000 32.433 .14
Standard Chartered Bank (United Kingdom) 2,100,000 29.831 .13
ELECTRONIC COMPONENTS - 5.09%
Micron Technology, Inc. (USA) (1) 6,500,000 313.625 1.36
Samsung Electronics Co., Ltd. (South Korea) 2,379,397 184.374
Samsung Electronics Co., Ltd. (GDR) (2) 203,598 8.327 .84
Intel Corp. (USA) 1,100,000 130.763 .57
Advanced Micro Devices, Inc. (USA) (1) 6,391,100 99.062 .43
Murata Manufacturing Co., Ltd. (Japan) 1,545,000 82.174 .36
Altera Corp. (USA) (1) 1,250,000 74.375 .32
Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) (1) 22,884,000 71.858 .31
Analog Devices, Inc. (USA) (1) 1,710,000 50.873 .22
Motorola, Inc. (USA) 600,000 43.950 .19
Seagate Technology (USA) (1) 1,400,000 41.387 .18
Hirose Electric Co., Ltd. (Japan) 400,000 33.432 .15
Rohm Co., Ltd. (Japan) 200,000 23.892 .10
Texas Instruments Inc. (USA) 150,000 14.887 .06
DATA PROCESSING & REPRODUCTION - 3.43%
Fujitsu Ltd. (Japan) 9,623,000 154.520 .67
Microsoft Corp. (USA) (1) 1,600,000 143.400 .62
Computer Associates International, Inc. (USA) 3,550,000 126.247 .55
Oracle Corp. (USA) (1) 2,150,000 56.706 .25
Cisco Systems, Inc. (USA) (1) 500,000 54.781 .24
Ascend Communications, Inc. (USA) (1) 650,000 54.397 .24
International Business Machines Corp. (USA) 300,000 53.175 .23
Compaq Computer Corp. (USA) 1,400,000 44.363 .19
Silicon Graphics, Inc. (USA) (1) 2,100,000 35.044 .15
Gateway 2000, Inc. (USA) (1) 500,000 34.281 .15
PeopleSoft, Inc. (USA) (1) 2,275,000 33.272 .14
BUSINESS & PUBLIC SERVICES - 2.94%
Cendant Corp. (USA) (1) 16,408,000 258.426 1.12
Reuters Group PLC (United Kingdom) 9,670,400 141.659 .61
TNT Post Groep NV (Netherlands) 2,479,500 74.664 .32
Vivendi SA (France) 203,808 50.131
Vivendi SA, warrants, expire 2001 (1) 203,808 .502 .23
Electronic Data Systems Corp. (USA) 800,000 38.950 .17
Interpublic Group of Companies, Inc. (USA) 500,000 38.938 .17
Suez Lyonnaise des Eaux (France) 200,000 36.998 .16
Rentokil Initial PLC (United Kingdom) 4,200,000 25.985 .11
United Utilities PLC (United Kingdom) 567,286 6.864 .03
Brambles Industries Ltd. (Australia) 150,000 3.822 .02
ENERGY SOURCES - 2.80%
TOTAL, Class B (France) 131,077 16.142
TOTAL, Class B (ADR) 2,788,924 170.124 .81
Royal Dutch Petroleum Co. (New York Registered Shares)
(Netherlands) 1,952,000 101.504
"Shell" Transport and Trading Co., PLC (United Kingdom) 3,000,000 20.182 .53
Elf Aquitaine (France) 400,000 54.310
Elf Aquitaine (ADR) 250,000 16.828 .31
Mobil Corp. (USA) 700,000 61.600 .27
Phillips Petroleum Co. (USA) 850,000 40.163 .17
YPF SA, Class D (ADR) (Argentina) 1,200,000 37.875 .16
Unocal Corp. (USA) 980,100 36.080 .16
Talisman Energy Inc. (Canada) (1) 1,400,000 30.415 .13
ENI SpA (Italy) 4,000,000 25.601 .11
Broken Hill Proprietary Co. Ltd. (Australia) 2,427,090 20.749 .09
RAO Gazprom (ADR) (Russia) (2) 1,341,000 13.913 .06
LEISURE & TOURISM - 2.51%
Carnival Corp. (USA) 6,770,000 328.768 1.43
Seagram Co. Ltd. (Canada) 4,460,000 223.000 .97
Starbucks Corp. (USA) (1) 1,000,000 28.063 .11
INSURANCE - 2.43%
American International Group, Inc. (USA) 1,198,437 144.562 .63
ING Groep NV (Netherlands) 2,583,908 142.369 .62
Fairfax Financial Holdings Ltd. (Canada) (1) 352,800 102.973
Fairfax Financial Holdings Ltd. (1,2) 93,000 27.144 .57
Allianz AG (Germany) 168,000 51.133 .22
Assicurazioni Generali SpA (Italy) 1,100,000 44.046 .19
Yasuda Fire and Marine Insurance Co., Ltd (Japan) 7,158,000 36.138 .15
QBE Insurance Group Ltd. (Australia) 2,678,876 11.154 .05
MULTI-INDUSTRY - 2.41%
BTR Siebe PLC (formerly Siebe PLC) (United Kingdom) 34,320,000 153.094 .66
Williams PLC (United Kingdom) 11,076,923 71.392 .32
Lend Lease Corp. Ltd. (Australia) 4,318,283 55.144 .24
TI Group PLC (United Kingdom) 7,203,800 46.720 .20
Investor AB, Class B (Sweden) 1,020,000 44.691 .19
Anglo American Corp. of South Africa Ltd. (South Africa) 1,000,000 34.729 .15
FMC Corp. (USA) (1) 559,800 27.640 .12
Lagardere Groupe SCA (France) 850,000 27.605 .12
Preussag AG (Germany) 47,300 25.372 .11
AlliedSignal Inc. (USA) 500,000 24.594 .11
Canadian Pacific Ltd. (Canada) 1,200,000 23.325 .10
LTV Corp. (USA) 3,975,000 21.365 .09
BEVERAGES & TOBACCO - 2.24%
Philip Morris Companies Inc. (USA) 10,080,000 354.690 1.54
PepsiCo, Inc. (USA) 1,000,000 39.188 .17
Southcorp Ltd. (Australia) 9,603,884 39.134 .17
Cia. Cervejaria Brahma, preferred nominative (ADR) (Brazil) 3,278,600 30.532 .13
Gallaher Group PLC (United Kingdom) 2,905,100 17.054
Gallaher Group PLC (ADR) 300,000 7.050 .11
Asahi Breweries, Ltd. (Japan) 1,056,000 13.818
Asahi Breweries, Ltd. 1.00% convertible debentures 2003 Y413,000,000 4.707
Asahi Breweries, Ltd. 0.90% convertible debentures 2001 Y296,000,000 3.399
Asahi Breweries, Ltd. 0.95% convertible debentures 2002 Y179,000,000 1.969 .10
South African Breweries PLC (United Kingdom) (1) 558,003 4.845 .02
CHEMICALS - 2.06%
Praxair, Inc. (USA) 3,207,850 115.683 .50
BOC Group PLC (United Kingdom) 5,500,000 76.731 .33
Monsanto Co. (USA) 1,661,900 76.344 .33
Sherwin-Williams Co. (USA) 1,962,000 55.181 .24
Valspar Corp. (USA) 1,555,000 49.080 .22
Bayer AG (Germany) 950,000 35.579 .15
Methanex Corp. (Canada) (1) 7,250,000 23.806 .10
Georgia Gulf Corp. (USA) (3) 1,975,000 22.095 .10
L'Air Liquide (France) (1) 125,235 18.653 .08
AGA AB, Class A (Sweden) 162,600 2.038
AGA AB, Class B 10,400 .130 .01
AUTOMOBILES - 1.94%
Renault V.I. SA (France) 3,000,000 105.653 .46
Suzuki Motor Corp. (Japan) 7,938,000 105.282 .46
Bayerische Motoren Werke AG (Germany) 80,350 52.280
Bayerische Motoren Werke AG, preferred 26,412 9.719 .27
Honda Motor Co., Ltd. (Japan) 1,296,000 58.536 .25
Volvo AB, Class B (Sweden) 1,730,000 45.374 .19
Nissan Motor Co., Ltd. (Japan) 9,300,000 36.116 .16
General Motors Corp. (USA) 400,000 34.750 .15
GOLD MINES - 1.55%
Newmont Mining Corp. (USA) 6,100,000 106.750 .46
Placer Dome Inc. (Canada) 9,000,000 100.688 .43
Barrick Gold Corp. (Canada) 5,000,000 85.312 .37
Homestake Mining Co. (USA) 5,500,000 47.437 .21
Gold Fields of South Africa Ltd. (South Africa) 1,741,500 15.600
Gold Fields Ltd. 2,703,939 2.770 .08
APPLIANCES & HOUSEHOLD DURABLES - 1.43%
Sony Corp. (Japan) 2,110,400 195.094 .85
Koninklijke Philips Electronics NV (Netherlands) 1,650,000 134.365 .58
FOREST PRODUCTS & PAPER - 1.33%
Champion International Corp. (USA) 3,200,000 131.400 .57
UPM-Kymmene Corp. (Finland) 1,953,000 53.962 .23
Louisiana-Pacific Corp. (USA) 2,550,000 47.494 .21
International Paper Co. (USA) 600,000 25.312 .11
Smurfit-Stone Container Corp. (formerly Jefferson
Smurfit Corp.) (USA) (1) 1,255,700 24.251 .11
Rayonier Inc. (USA) 600,000 24.037 .10
ENERGY EQUIPMENT - 1.26%
Baker Hughes Inc. (USA) 6,655,600 161.814 .70
Schlumberger Ltd. (Netherlands Antilles) 1,598,300 96.198 .41
Halliburton Co. (USA) 874,900 33.684 .15
FOOD & HOUSEHOLD PRODUCTS - 1.22%
Groupe Danone (France) 350,000 88.055 .38
Nestle SA (Switzerland) 39,000 70.954 .31
Reckitt & Colman PLC (United Kingdom) 6,503,125 70.503 .30
Unilever NV (Netherlands) 300,000 20.836 .09
Archer Daniels Midland Co. (USA) 1,225,000 17.992 .08
Colgate-Palmolive Co. (USA) 150,000 13.800 .06
MERCHANDISING - 1.14%
Wal-Mart Stores, Inc. (USA) 1,300,000 119.844 .53
Home Depot, Inc. (USA) 943,000 58.702 .25
Kingfisher PLC (United Kingdom) 3,000,000 37.872 .16
Koninklijke Ahold NV (Netherlands) 619,000 23.717 .10
Cifra, SA de CV, Class C (Mexico) (1) 3,624,400 5.599
Cifra, SA de CV, Class V (1) 10,995,004 17.264 .10
RECREATION & OTHER CONSUMER PRODUCTS - 1.07%
Hasbro, Inc. (USA) 2,700,000 78.131 .34
Nintendo Co., Ltd. (Japan) 725,000 62.554 .27
Mattel, Inc. (USA) 2,000,000 49.750 .22
EMI Group PLC (United Kingdom) 4,242,369 30.286 .13
Eastman Kodak Co. (USA) 400,000 25.550 .11
UTILITIES: ELECTRIC & GAS - 1.03%
Williams Companies, Inc. (USA) 4,200,000 165.900 .72
National Power PLC (United Kingdom) 9,300,000 71.530 .31
TEXTILES & APPAREL - 0.73%
NIKE, Inc., Class B (USA) 2,928,000 168.909 .73
AEROSPACE & MILITARY TECHNOLOGY - 0.71%
Bombardier Inc., Class B (Canada) 6,495,000 85.523 .37
Boeing Co. (USA) 1,800,000 61.425 .26
Northrop Grumman Corp. (USA) 300,000 17.962 .08
METALS: NONFERROUS - 0.57%
Alcoa Inc. (formerly Aluminum Co. of America) (USA) 1,262,626 52.004 .23
WMC Ltd. (Australia) 12,389,336 39.531 .17
Billiton PLC (United Kingdom) 10,372,416 24.933 .11
Pechiney, Class A (France) 406,909 14.713 .06
OTHER INDUSTRIES - 1.90%
Union Pacific Corp. (USA) 1,375,000 73.476 .32
De Beers Consolidated Mines Ltd. (South Africa) 2,000,000 38.624
De Beers Consolidated Mines Ltd. (ADR) 1,000,000 18.938 .25
Cie. de Saint-Gobain (France) 320,000 50.770 .22
ADVANTEST CORP. (Japan) 660,000 50.426 .22
Bergesen d.y. AS, Class A (Norway) 2,650,000 36.349
Bergesen d.y. AS, Class B 795,000 10.287 .20
Allegheny Teledyne Inc. (USA) 2,040,000 38.633 .17
Usinor Sacilor (France) 2,800,000 36.869 .16
AMR Corp. (USA) (1) 400,000 23.425 .10
Deere & Co. (USA) 600,000 23.175 .10
Cia. Vale do Rio Doce, preferred nominative (Brazil) (1,4) 38,400 0
Cia. Vale do Rio Doce, preferred nominative (ADR) 1,184,000 17.168 .08
Kvaerner AS, Class A (Norway) 659,240 11.729 .05
Bridgestone Corp. (Japan) 286,000 7.292 .03
MISCELLANEOUS - 1.47%
Other equity securities in initial period of acquisition 339.870 1.47
---------- ----------
TOTAL EQUITY SECURITIES (cost: $12,692.104 million) 20,184.977 87.53
---------- ----------
Principal
Amount
BONDS & NOTES (Millions)
- -------------------------------------------- ----------
MULTI-INDUSTRY - 0.01%
Hutchison Whampoa Finance (CI) Ltd., Series D, 6.988%
2037 (1) $1.500 1.420
Hutchison Whampoa, Series C, 7.50% 2027 (1) $1.325 1.140 .01
GOVERNMENTS AND GOVERNMENTAL AUTHORITIES
(excluding U.S. government) - 0.46%
Brazil (Federal Republic of), Bearer 8.00% 2014 $158.390 100.974
Brazil (Federal Republic of), Front-Loaded Interest
Reduction Bond, Series L, 8.00% 2014 $9.421 6.006 .46
---------- ----------
TOTAL BONDS & NOTES (cost: $95.352 million) 109.540 .47
---------- ----------
Principal Market Percent of
Amount Value Net Assets
Short-Term Securitites (Millions) (Millions)
- -------------------------------------------- -------- -------- --------
CORPORATE SHORT-TERM NOTES - 8.83%
Associates First Capital Corp. 4.83%-4.84% due
4/21-4/30/1999 $96.200 95.896 .42
Ciesco L.P. 4.78%-4.80% due 4/8-4/20/1999 93.900 93.753 .41
BMW U.S. Capital Corp. 4.81% due 4/6-5/14/1999 90.000 89.723 .39
Ford Motor Credit Co. 4.79%-4.84% due 4/16-4/29/1999 88.900 88.641 .38
Eastman Kodak Co. 4.79%-4.81% due 4/13-5/20/1999 88.850 88.561 .38
General Electric Capital Corp. 4.80%-4.86% due
4/23-6/2/1999 87.800 87.252 .38
International Lease Finance Corp. 4.79%-4.82% due
4/7-5/20/1999 78.800 78.481 .34
DaimlerChrysler NA Holdings 4.80%-4.81% due 4/16-
4/20/1999 78.655 78.461 .34
Societe Generale 4.78%-4.80% due 4/28-5/3/1999 75.000 74.700 .32
Halifax PLC 4.80%-4.83% due 4/14-6/3/1999 75.000 74.681 .32
International Business Machines Corp. 4.81%-4.83% due
4/30-6/1/1999 75.000 74.569 .32
General Motors Acceptance Corp. 4.82%-4.83% due
4/8-5/24/1999 74.200 73.857 .32
Abbey National North America 4.82%-4.85% due 4/15-
6/4/1999 74.000 73.647 .32
Toyota Motor Credit Corp. 4.75%-4.82% due 4/5-4/6/1999 68.000 67.952 .30
Siemens Capital Corp. 4.74%-4.80% due 4/21-5/26/1999 66.500 66.145 .29
E.I. du Pont de Nemours and Co. 4.80%-4.81% due 4/23-
6/7/1999 65.560 65.047 .28
American Honda Finance Corp. 4.83% due 5/13-5/25/1999 64.800 64.385 .28
Lucent Technologies Inc. 4.75%-4.81% due 4/5-5/28/1999 63.000 62.768 .27
KFW International Finance Inc. 4.75%-4.80% due 4/6-
5/3/1999 61.700 61.468 .27
American Express Credit Corp. 4.77%-4.81% due 4/23-
5/12/1999 60.400 60.098 .26
Lloyds Bank PLC 4.82%-4.83% due 4/1-4/7/1999 59.000 58.972 .26
Barclays U.S. Funding Corp. 4.76%-4.81% due 4/9-
6/8/1999 54.500 54.113 .24
Motiva Enterprises LLC 4.81%-4.88% due 4/9-5/19/1999 50.000 49.764 .22
British Gas Capital Inc. 4.83%-4.84% due 4/12-4/15/1999 48.300 48.213 .21
Repsol International Finance BV 4.76%-4.80% due
4/27-5/10/1999 48.400 48.180 .21
Reseau Ferre de France 4.77% due 5/4/1999 38.000 37.826 .16
Canada Bills 4.78%-4.80% due 4/8-5/14/1999 35.500 35.327 .15
Telstra Corp. Ltd. 4.80%-4.83% due 5/14-6/22/1999 34.800 34.516 .15
Svenska Handelsbanken Group 4.78%-4.89% due 4/28-
5/28/1999 34.200 34.034 .15
France Telecom 4.83%-4.84% due 4/13-5/21/1999 33.450 33.327 .14
BP America Inc. 4.79%-4.80% due 5/13-5/14/1999 31.000 30.820 .13
ABN AMRO North America Finance Inc. 4.80% due 4/8/1999 25.000 24.973 .11
Commonwealth Bank of Australia 4.85% due 4/12/1999 25.000 24.960 .11
FEDERAL AGENCY DISCOUNT NOTES - 2.32%
Freddie Mac 4.73%-4.80% due 4/22-6/10/1999 215.327 214.035 .93
Fannie Mae 4.72%-4.80% due 4/8-5/27/1999 182.200 181.527 .79
Federal Home Loan Banks 4.67%-4.74% due 4/7-5/7/1999 138.986 138.518 .60
CERTIFICATES OF DEPOSIT - 0.65%
National Westminster Bank PLC 4.92% due 5/6/1999 50.000 50.001 .22
Rabobank Nederland NV 4.85% due 5/6/1999 50.000 49.997 .22
Canadian Imperial Bank of Commerce 4.84% due 5/5/1999 50.000 49.996 .21
NON-U.S. CURRENCY - 0.03%
New Taiwanese Dollar NT$262.715 7.932 .03
---------- ----------
TOTAL SHORT-TERM SECURITIES (cost: $2,728.365 million) 2,727.116 11.83
Excess of cash and receivables over payables 39.489 .17
---------- ----------
TOTAL SHORT-TERM SECURITIES AND NET CASH 2,766.605 12.00
---------- ----------
NET ASSETS 23,061.122 100.00%
========== ==========
(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 6.40% of the outstanding voting
securities of Georgia Gulf Corp., and thus is
considered an affiliate as defined in the Investment
Company Act of 1940.
(4) Valued under procedures established by the Board of
Directors.
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
See Notes to Financial Statements
</TABLE>
<TABLE>
<S> <C> <C>
New Perspective Fund
Financial Statements Unaudited
- -------------------------------- ----- -----
Statement of Assets and Liabilities (dollars in
at March 31, 1999 millions)
- -------------------------------- ----- -----
Assets:
Investment securities at market
(cost: $12,787.456) $20,294.517
Short-term securities
(cost: $2,728.365) 2,727.116
Cash 6.295
Receivables for-
Sales of investments $18.941
Sales of fund's shares 36.889
Dividends and accrued interest 58.281 114.111
----- -----
23,142.039
Liabilities:
Payables for-
Purchases of investments 38.201
Repurchases of fund's shares 29.325
Management services 7.758
Accrued expenses 5.633 80.917
----- -----
Net Assets at March 31, 1999-
Equivalent to $24.32 per share on
948,327,244 shares of $1 par value
capital stock outstanding (authorized
capital stock--1,000,000,000 shares) $23,061.122
======
Statement of Operations
for the six months ended March 31, 1999 Unaudited
(dollars in
millions)
- ------------------------------ ----- -----
Investment Income:
Income:
Dividends $ 91.569
Interest 74.205 $ 165.774
-----
Expenses:
Management services fee 40.102
Distribution expenses 25.299
Transfer agent fee 8.553
Reports to shareholders .531
Registration statement and prospectus .955
Postage, stationery and supplies 1.589
Directors' and Advisory Board fees .146
Auditing and legal fees .081
Custodian fee 1.736
Taxes other than federal income tax .264
income tax
Other expenses .190 79.446
----- -----
Net investment income 86.328
-----
Realized Gain and Unrealized
Appreciation on Investments:
Net realized gain 931.998
Net change in unrealized appreciation on:
Investments 3,920.895
Forward currency contracts (1.937) 3,918.958
----- -----
Net realized gain and unrealized appreciation
on investments 4,850.956
-----
Net Increase in Net Assets Resulting
from Operations $ 4,937.284
======
- ------------------------------ ----- -----
Statement of Changes in Net Assets (dollars in
millions)
Six months ended Year ended
March 31, September 30,
1999* 1998
- ------------------------------ ----- -----
Operations:
Net investment income $ 86.328 $ 225.434
Net realized gain on investments 931.998 1,406.817
Net change in unrealized appreciation
on investments 3,918.958 (1,486.638)
----- -----
Net increase in net assets
resulting from operations 4,937.284 145.613
----- -----
Dividends and Distributions Paid to
Shareholders:
Dividends from net investment income (120.638) (250.381)
Distributions from net realized gain on
investments (1,352.867) (944.065)
----- -----
Total dividends and distributions (1,473.505) (1,194.446)
----- -----
Capital Share Transactions:
Proceeds from shares sold: 84,178,479
and 141,823,983 shares, respectively 1,956.661 3,063.856
Proceeds from shares issued in reinvestment
of net investment income dividends and
distributions of net realized gain on
investments: 64,624,374 and 58,921,097 shares,
respectively 1,407.453 1,133.982
Cost of shares repurchased: 64,384,297
and 112,476,829 shares, respectively (1,473.741) (2,398.119)
----- -----
Increase in net assets resulting from
capital share transactions 1,890.373 1,799.719
----- -----
Total Increase in Net Assets 5,354.152 750.886
Net Assets:
Beginning of period 17,706.970 16,956.084
----- -----
End of period (including undistributed
net investment income: $50.947
and $85.257, respectively) $23,061.122 $17,706.970
====== ======
* Unaudited
See Notes to Financial Statements
</TABLE>
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - 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.
SIGNIFICANT ACCOUNTING POLICIES - The following is a summary of the significant
accounting policies consistently followed by the fund in the preparation of its
financial statements:
SECURITY VALUATION - 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. Forward currency contracts are valued at the
mean of their representative quoted bid and asked prices. 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.
NON-U.S. CURRENCY TRANSLATION - Assets or liabilities initially expressed in
terms of non-U.S. currencies are translated 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 non-U.S. currency exchange rates on investment securities are
included with the net realized and unrealized gain or loss on investment
securities.
SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME - 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 TO SHAREHOLDERS - Dividends and distributions paid
to shareholders are recorded on the ex-dividend date.
FORWARD CURRENCY CONTRACTS - The fund may enter into forward currency
contracts, which represent agreements to exchange currencies of different
countries at specified future dates at specified rates. The fund enters into
these contracts to reduce its exposure to fluctuations in foreign exchange
rates arising from investments denominated in non-U.S. currencies. The fund's
use of forward currency contracts involves market risk in excess of the amount
recognized in the statement of assets and liabilities. The contracts are
recorded in the statement of assets and liabilities at their net unrealized
value. The fund records realized gains or losses at the time the forward
contract is closed or offset by a matching contract. The face or contract
amount in U.S. dollars reflects the total exposure the fund has in that
particular contract. Risks may arise upon entering these contracts from the
potential inability of counterparties to meet the terms of their contracts and
from possible movements in non-U.S. exchange rates and securities values
underlying these instruments.
2. FEDERAL INCOME TAXATION
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, 1999, net unrealized appreciation on investments, excluding
forward currency contracts, for federal income tax purposes aggregated
$7,506,800,000, of which $8,256,699,000 related to appreciated securities and
$749,899,000 related to depreciated securities. During the six months ended
March 31, 1999, the fund realized, on a tax basis, a net capital gain of
$936,652,000 on securities transactions. Net losses related to non-U.S.
currency and other transactions of $4,654,000 are treated as an adjustment to
ordinary income for federal income tax purposes. The cost of portfolio
securities, excluding forward currency contracts, for federal income tax
purposes was $15,514,833,000 at March 31, 1999.
3. FEES AND TRANSACTIONS WITH RELATED PARTIES
INVESTMENT ADVISORY FEE - The fee of $40,102,000 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.
DISTRIBUTION EXPENSES - 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,
1999, distribution expenses under the Plan were $25,299,000. As of March 31,
1999, accrued and unpaid distribution expenses were $3,977,000.
American Fund Distributors, Inc. (AFD), the principal underwriter of the fund's
shares, received $6,293,000 (after allowances to dealers) as it's 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.
TRANSFER AGENT FEE - American Funds Service Company (AFS), the transfer agent
for the fund, was paid a fee of $8,553,000.
DIRECTORS' FEES - 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, 1999, aggregate deferred compensation
and earnings thereon since the plan's adoption (1993), net of any payments to
Directors and Advisory Board members were $751,000.
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. INVESTMENT TRANSACTIONS AND OTHER DISCLOSURES
The fund made purchases and sales of investment securities, excluding
short-term securities, of $2,948,187,000 and $2,439,624,000, respectively,
during the six months ended March 31, 1999.
As of March 31, 1999, accumulated undistributed net realized gain on
investments was $895,923,000 and additional paid-in capital was
$13,660,700,000.
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 $1,736,000 includes $28,000 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, 1999, such non-U.S. taxes were $6,535,000. Net
realized currency losses on dividends, interest, withholding taxes reclaimable,
and sales of non-U.S. bonds and notes, on a book basis, were $289,000 for the
six months ended March 31, 1999.
At March 31, 1999, the fund had no outstanding forward currency contracts to
sell non-U.S. currencies.
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Six months Year
Per-Share Data and Ratios ended Ended
March 31, September 30,
1999 (1) 1998 1997 1996 1995 1994
Net Asset Value, Beginning of Period $20.50 $21.86 $17.77 $16.98 $15.40 $14.21
------- ------- ------- ------- ------- -------
Income From Investment Operations:
Net investment income .09 .27 .29 .32 .31 .22
Net gains or losses on securities (both
realized and unrealized) 5.44 (.11) 4.81 1.40 2.35 1.54
------- ------- ------- ------- ------- -------
Total from investment operations 5.53 .16 5.10 1.72 2.66 1.76
------- ------- ------- ------- ------- -------
Less Distributions:
Dividends (from net investment income) (.14) (.31) (.323) (.321) (.237) (.173)
Dividends (from net realized non-U.S. currency gains) (2) - - (.007) (.009) (.003) (.027)
Distributions (from capital gains) (1.57) (1.21) (.680) (.600) (.840) (.370)
------- ------- ------- ------- ------- -------
Total distributions (1.71) (1.52) (1.01) (.93) (1.08) (.57)
------- ------- ------- ------- ------- -------
Net Asset Value, End of Period $24.32 $20.50 $21.86 $17.77 $16.98 $15.40
===== ===== ===== ===== ===== =====
Total Return (3) 27.95% (4) 1.23% 29.97% 10.64% 18.63% 12.61%
Ratios/Supplemental Data:
Net assets, end of period (in millions) $23,061 $17,707 $16,956 $11,688 $8,817 $6,279
Ratio of expenses to average net assets .38% (4) .77% .79% .82% .83% .84%
Ratio of net income to average net assets .41% (4) 1.27% 1.56% 2.00% 2.12% 1.48%
Portfolio turnover rate 13.50% (4) 29.71% 25.68% 18.12% 22.40% 25.33%
(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.
</TABLE>
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 92821-5823
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, 1999, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
PREPARING FOR THE YEAR 2000.
The fund's key service providers - Capital Research and Management Company, the
investment adviser, and American Funds Service Company, the transfer agent -
have updated all significant computer systems to process date-related
information properly following the turn of the century. Testing of these and
other systems with business partners, vendors and other service providers will
continue through much of 1999. We will continue to keep you up to date in our
regular publications. If you'd like more detailed information, call Shareholder
Services at 800/421-0180, ext. 21, or visit our Web site at
www.americanfunds.com.
Printed on recycled paper
Litho in USA AGD/AL/3973
Lit. No. NPF-013-0599
[The American Funds Group(r)]
